ALPHARMA reports full year 1995 results of $.84 per share.FORT LEE, N.J.--(BUSINESS WIRE)--March 4, 1996--ALPHARMA INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (NYSE NYSE See: New York Stock Exchange :ALO) today announced that earnings per share on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis for the full year and fourth quarter ended December December: see month. 31, 1995 were $.84 and $.25 respectively, compared to losses of ($.11) for the full year and ($.59) for the fourth quarter in 1994. 1995 and 1994 full year and fourth quarter results, and their comparability, were impacted by a number of items related to the October October: see month. 1994 combination of the Human Pharmaceutical and Animal Health businesses of Apothekernes Laboratorium ("A.L. Oslo Oslo (äz`lō, äs`–, Nor.  s`l), city (1995 pop. 482,555), capital of Norway, of Akershus co., and of Oslo co. ") with the Company (the "Combination").
Earnings per share on a fully diluted basis from operations, after excluding the impacts of the Combination as described below, were $.84 and $.33 for the full year and fourth quarter in 1995 compared to $.66 and $.23 for the same periods in 1994. On this basis, earnings per share in 1995 increased 27% for the full year and 43% for the fourth quarter compared to 1994. On this same basis, net income in 1995 was $18.8 million for the full year, up 31% from 1994 and $7.4 million for the fourth quarter, up 50% from last year. The Company noted that while full year 1995 results were $.84 per share on a fully diluted basis, the sum of the four quarters in 1995 was $.85. This difference arises because of the dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). of the Company's Warrants on the calculation of fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the full year and the fourth quarter. The full year and fourth quarter of 1994 include costs and charges related to the completion of the Combination transaction and subsequent 1994 management actions related thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. . The impact of these items on the full year and fourth quarter of 1994 was to reduce earnings per share by $.82. The Company does not believe these costs and charges should be considered when evaluating operating results. In addition, while full year results for 1994 have been restated in a manner similar to a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. to include the benefit of the earnings of A.L. Oslo prior to the date of the Combination, the restated results do not reflect the interest expense on both the cash consideration paid and expenses incurred in connection with the Combination. The Company believes this interest, which would have lowered 1994 earnings per share by $.05, should be considered when comparing 1994 and 1995 results. After adjusting 1994 results for both of these items, earnings per share from operations were $.66 for the year and $.23 for the fourth quarter. As previously announced in the third quarter of 1995, the Company took additional post-combination management actions that spanned the third and fourth quarters of 1995. The net result of these actions, as anticipated, was not material to second half or full year 1995 results. However, because of the timing of these actions in the second half of 1995, third quarter results included a net benefit of $.08 per share and fourth quarter results included costs and charges of $.08 per share. After adjusting for these 1995 management actions, 1995 results from operations for the fourth quarter of 1995 were $.33 per share. Full year 1995 earnings per share remain at $.84. The Company also announced additional actions directed at achieving further synergies from the Combination and improving operations within the International Pharmaceuticals Division. Sales and marketing is being reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. during the first quarter of 1996 resulting in the elimination of approximately 30 employees and net termination-related costs in excess of $1 million (pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta ) for the quarter. In addition, a recent preliminary study of production rationalization rationalization, in psychology: see defense mechanism. alternatives between the Division's Copenhagen Copenhagen (kō`pənhā'gən, –hä'gən), Dan. København (kö'bənhoun`), city (1992 pop. 464,566; metropolitan area 1,339,395), capital of Denmark and of Copenhagen co. , Denmark Denmark (dĕn`märk), Dan. Danmark, officially Kingdom of Denmark, kingdom (2005 est. pop. 5,432,000), 16,629 sq mi (43,069 sq km), N Europe. and Lier, Norway Lier is a municipality in the county of Buskerud, Norway. Lier was established as a municipality January 1, 1838 (see formannskapsdistrikt). The area Åssiden was transferred from Lier to Drammen July 1, 1951. manufacturing facilities has identified potentially significant benefits. Based on these findings, a detailed study is being initiated which is expected to be completed sometime in the second quarter of 1996. We expect that this detailed study will result in a formal rationalization proposal which will include estimates of benefits and any associated costs or charges. Any such plan will require approval by the Board of Directors. ALPHARMA is a multinational pharmaceutical company developing, manufacturing and marketing specialty generic and proprietary human pharmaceutical and animal health products. ALPHARMA is the largest manufacturer of generic liquid and topical topical /top·i·cal/ (top´i-k'l) pertaining to a particular area, as a topical antiinfective applied to a certain area of the skin and affecting only the area to which it is applied. top·i·cal adj. pharmaceuticals in the U.S., has an established and growing market position in finished pharmaceuticals in Europe Europe (y r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the Far East, is a basic manufacturer of
important specialty antibiotics Antibiotics DefinitionAntibiotics may be informally defined as the subgroup of anti-infectives that are derived from bacterial sources and are used to treat bacterial infections. , and is recognized worldwide as a leading provider of animal health feed additives for poultry poultry, domesticated fowl kept primarily for meat and eggs; including birds of the order Galliformes, e.g., the chicken, turkey, guinea fowl, pheasant, quail, and peacock; and natatorial (swimming) birds, e.g., the duck and goose. and livestock livestock Farm animals, with the exception of poultry. In Western countries the category encompasses primarily cattle, sheep, pigs, goats, horses, donkeys, and mules; other animals (e.g., buffalo, oxen, or camels) may predominate in other areas. , and vaccines for farmed fish. -0-
ALPHARMA INC.
Consolidated Statement of Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
1995(a) 1994(b) 1995(a) 1994(b)
Total revenue $138,610 $133,487 $520,882 $469,263 Cost of sales 77,071 78,762 302,127 275,543 Gross profit 61,539 54,725 218,755 193,720 Selling, general and administrative expenses 47,343 65,560 166,274 177,742 Operating income (loss) 14,196 (10,835) 52,481 15,978 Interest expense (5,129) (4,768) (21,993) (15,355) Other, net (45) 619 (260) 1,113 Income (loss) before provision for income taxes and extraordinary item 9,022 (14,984) 30,228 1,736 Provision (benefit) for income taxes 3,353 (2,918) 11,411 3,439 Income (loss) before extraordinary item 5,669 (12,066) 18,817 (1,703) Extraordinary item, net of tax(c) (683) (683) Net income (loss) $ 5,669 $(12,749) $ 18,817 $ (2,386) Average common shares outstanding: Primary 22,100 21,686 21,754 21,666 Fully diluted 22,430 21,686 22,407 21,666
Earnings per common
share:
Primary
Income (loss) before
extraordinary item $ .26 $ (.56) $ .86 $ (.08)
Net Income (loss) $ .26 $ (.59) $ .86 $ (.11)
Fully diluted
Income (loss) before
extraordinary item $ .25 $ (.56) $ .84 $ (.08)
Net Income (loss) $ .25 $ (.59) $ .84 $ (.11)
Dividend per common
share $ .045 $ .045 $ .18 $ .18
-0
(a) The fourth quarter of 1995 is impacted by $1,776 after tax
($.08) for charges for management actions including severance. The
third quarter of 1995 included net income of $1,754 after tax ($.08)
for management actions including the sale of an equity interest in an
R&D company net of charges for management actions. Therefore, for
the full year 1995, management actions have no impact.
(b) The fourth quarter of 1994 is impacted by $0.82 for transaction
expenses and charges resulting from management actions related to the
combination with A.L. Oslo, [$24,165 pre-tax; $17,025 after tax
($0.79)] plus extraordinary item due to loss on extinguishment of
debt $683 or $(.03).
(c) Loss on extinguishment of debt associated with refinancing in
conjunction with the combination with A.L. Oslo.
-0-
ALPHARMA INC.
Financial Position
(In thousands)
December 31, December 31,
1995 1994
(unaudited) (audited)
Current assets $282,886 $250,499 Non-current assets 351,967 341,819 Total assets $634,853 $592,318 Current liabilities $169,283 $154,650 Long-term debt 219,451 220,036 Deferred taxes and other liabilities 40,929 36,344 Stockholders' equity 205,190 181,288 Total liabilities and stockholders' equity $634,853 $592,318 CONTACT: Iris Daniels Daniels is a surname that may refer to:
ALPHARMA INC. 201/947-7774 or Investor Contact: Donna Stein/Courtney Levi Morgen-Walke Associates, Inc. 212/850-5600 or Press Contact: Michelle Zawrothy Morgen-Walke Associates, Inc. 212/850-5631 |
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