Able Laboratories Reports 2002 First Quarter Results; Net Sales Increase 32% from Prior Quarter to $9.3 Million with Net Income of $1.7 Million.Business Editors & Health/Medical Writers SOUTH PLAINFIELD South Plainfield, borough (1990 pop. 20,489), Middlesex co., NE N.J.; inc. 1926. It is the seat of several research and consulting firms and has plants that make chemicals, plastics, spices and flavorings, cosmetics, rubber products, pigments, electrical machinery, , N.J.--(BW HealthWire)--May 1, 2002 Able Laboratories, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ABRX) (BSE See Bombay Stock Exchange. BSE See Boston Stock Exchange (BSE). :ABRX) today announced financial results for the three months ended March 31, 2002. For the first quarter of 2002, the Company reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $9.3 million, a 32% increase compared with net sales of $7.1 million reported for the fourth quarter of 2001. The increase in net sales is primarily due to initial market acceptance of the Company's 12 new generic Generic Describes the characteristics and/or experience of the total universe of a coupon of MBS sector type; that is, in contrast to a specific pool or collateral group, as in a specific CMO issue. products, nine of which were approved by the U.S. Food and Drug Administration (FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. ) during the 2001 third and fourth quarters. The first quarter 2002 gross profit was $4.3 million, or 46% of net sales, compared with a 43% gross margin for the 2001 fourth quarter. Cost of sales for the first quarter were $5.0 million, or 54% of net sales, compared with $4.1 million, or 57% of net sales, for the prior quarter. Continued improvements in gross margin have resulted from increased sales of the Company's higher-margin products and from efficiencies realized due to increased manufacturing activities. Research and development expenses increased 25% to $1.0 million from $816,000 for the prior quarter. This increase was primarily due to increased clinical testing and to development of the Company's product portfolio. Selling, general and administrative expenses for the 2002 first quarter declined to $1.5 million, or 17% of net sales, from $1.6 million, or 23% of net sales, in the prior quarter. The decrease is due to cost controls initiated by the Company and to further streamlining of its customer service operations. As a result of the above factors, the Company reported net income for the 2002 first quarter of $1.7 million, or $0.01 per share, compared with a net loss of $2.4 million, or a loss of $0.02 per share, in the prior quarter. The Company had cash and cash equivalents of $4.1 million as of March 31, 2002. "We made significant progress in many areas of our business during the first quarter," commented Jay Wadekar, President of Able Laboratories. "On the product side, we signed our first marketing agreement with IVAX IVAX Industrial Vax (Dec Computer) Pharmaceuticals, Inc. (AMEX AMEX See: American Stock Exchange :IVX). This agreement is an important step in our strategy of selectively partnering with established companies, such as IVAX, to market and sell certain of our larger-market products. On the corporate side, we made several key additions to strengthen our management team. Also, we were notified of the dissolution Act or process of dissolving; termination; winding up. In this sense it is frequently used in the phrase dissolution of a partnership. The dissolution of a contract is its Rescission by the parties themselves or by a court that nullifies its binding force and reinstates each of the consent decree A settlement of a lawsuit or criminal case in which a person or company agrees to take specific actions without admitting fault or guilt for the situation that led to the lawsuit. A consent decree is a settlement that is contained in a court order. the Company had been subject to since 1992, which is recognition of our commitment to maintaining the highest possible quality in our products and operations. We look forward to continuing this momentum throughout 2002," Mr. Wadekar added. Corporate Highlights In January January: see month. , Able announced receipt of an approvable letter from the FDA for the Company's Abbreviated New Drug Application abbreviated new drug application Pharmacology An application made in the US by a pharmaceutical company requesting authority to market a 'new' drug for which both its therapeutic indications and formulation were previously approved by the FDA in another similar (ANDA ANDA abbr. abbreviated new drug application ) for Tramadol Hydrochloride tramadol hydrochloride Warning - High-alert drug! Dromadol (UK), Larapam (UK), Mabron (UK), Tramake (UK), Ultram, Ultram ER, Zamadol (UK), Zydol (UK) Pharmacologic class: Opioid agonist Tablets, 50 mg. Soon after the approval, Able entered into an ANDA Transfer and Marketing Agreement with IVAX Pharmaceuticals, Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of IVAX Corporation IVAX Corporation was a United States public corporation focused on manufacturing and distributing generic pharmaceutical products. Ivax was acquired by the Israeli company Teva Pharmaceutical Industries in January 2006. External links
Also during January, the Company announced several key appointments that strengthen its management team. Laura Ciardi Ciar·di , John Anthony 1916-1986. American poet and critic noted for his clear, ironic poetry, works of literary criticism, such as How Does a Poem Mean? (1960), and a translation of Dante's Divine Comedy (1954-1970). , previously Director of National Accounts at The Harvard Harvard, town (1990 pop. 12,329), Worcester co., E central Mass.; inc. 1732. A Shaker house and cemetery, a Native American museum, and a Harvard observatory are there. Drug Group, joined as National Accounts Manager. Christopher Butler For the British Conservative politician, see Chris Butler. Abbot, later Bishop, Basil Christopher Butler OSB (May 7, 1902–September 20, 1986), a convert from the Church of England to the Roman Catholic Church at the age of 26, was a Roman Catholic priest, the , who has experience in quality assurance with SkyePharma and Gen-Probe Corporation, joined as Manager of Quality Assurance. William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack Freidland, who has successfully managed projects for companies including Novartis Novartis International AG (NYSE: NVS) is a multinational pharmaceutical company based in Basel, Switzerland that manufactures drugs such as diclofenac (Voltaren), carbamazepine (Tegretol), valsartan (Diovan), imatinib mesylate (Gleevec / Glivec), cyclosporin A (Neoral / and Sidmak Laboratories, joined as Analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. Manager. In addition, Dr. Jayant Jayant was an Indian actor. He is the father of actors Amjad Khan, Inayat Khan and Imtiaz Khan. He is the grandfather of Shadaab Khan, Ahlam Khan and Seemaab Khan and father-in-law of Shaila Khan. He died in the mid 1980s. Jayant was born as Zakaria Khan. Karajgi has joined as Senior Research Scientist. In February February: see month. , Able announced receipt of an additional FDA approval for the Company's ANDA for Indomethacin indomethacin /in·do·meth·a·cin/ (in?do-meth´ah-sin) a nonsteroidal antiinflammatory drug; used in the treatment of various rheumatic and nonrheumatic inflammatory conditions, dysmenorrhea, and vascular headache. Extended Release Capsules USP USP - unique sales point , 75 mg. In March, the Company announced that the consent decree it had been subject to since April 8, 1992 had been dissolved dis·solve v. dis·solved, dis·solv·ing, dis·solves v.tr. 1. To cause to pass into solution: dissolve salt in water. 2. . Able had been operating under the consent decree when it was acquired from its previous owners. In 2002, Able submitted a request for dissolution pursuant to the terms of the decree decree, in law, decision of a suit in a court of equity. It is the counterpart in equity of the judgment in a court of law, although in those jurisdictions where law and equity have merged, judgment is sometimes used to include both. . The FDA did not oppose Able's petition, and the court dissolved the consent decree. Also in March, the Company announced the resignation of C. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Cusick The name Cusick may refer to: People
Conference Call Information Able Laboratories has scheduled a conference call and webcast regarding this announcement to be held today, beginning at 10:30 a.m. Eastern Time (7:30 a.m. Pacific Time). To participate in the live call via telephone, please call 888/803-8276. A telephone replay will be available for 48 hours following the call by dialing 800/642-1687, and entering reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 4002437. Individuals interested in listening to the conference call via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the may do so by visiting the web site www.companyboardroom.com. A replay will be available on the web site for 90 days. Able Laboratories is a developer and manufacturer of generic pharmaceuticals. Since March 2001, Able has received 13 ANDA approvals and one approvable letter from the FDA. The Company has completed its transition to focus its activities primarily on generic drug generic drug, a drug sold or prescribed under the nonproprietary name of its active ingredients or under a generally descriptive name rather than under a brand or trade name. development, manufacturing and sales. Further information on Able may be found on the Company's web site, www.ablelabs.com. Except for historical facts, the statements in this news release, as well as oral statements or other written statements made or to be made by Able Laboratories, Inc., are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and involve risks and uncertainties. For example, statements about the Company's anticipated growth and future operations, the current or expected market size for its products, the success of current or future product offerings, the research and development efforts and the Company's ability to file for and obtain U.S. Food and Drug Administration approvals for future products, are forward-looking statements. Forward-looking statements are merely the Company's current predictions of future events. The statements are inherently uncertain, and actual results could differ materially from the statements made herein. There is no assurance that the Company will achieve the sales levels that will make its operations profitable or that ANDA filings and approvals will be completed and obtained as anticipated. For a description of additional risks, and uncertainties, please refer to the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2001. The Company assumes no obligation to update its forward-looking statements to reflect new information and developments.
ABLE LABORATORIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2002 2001
----------- -----------
Current assets:
Cash and cash equivalents $4,136,038 $1,155,266
Accounts receivable, net
of allowances of $9,685,460
and $8,116,822 1,459,742 4,646,203
Inventory 5,707,933 4,718,909
Prepaid expenses and
other current assets 444,607 783,482
----------- -----------
Total current assets 11,748,320 11,303,860
----------- -----------
Property and equipment, net 5,676,596 4,495,511
----------- -----------
Other assets:
Investment in RxBazaar securities 1,040,000 1,040,000
Debt financing costs, net
of accumulated amortization 179,006 182,606
Cash deposits with bond trustee 564,522 505,095
Deposits and other assets 134,139 110,617
----------- -----------
Total other assets 1,917,667 1,838,318
----------- -----------
$19,342,583 $17,637,689
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and current
portion of long-term debt $234,000 $586,807
Accounts payable and accrued expenses 5,075,222 4,568,443
----------- -----------
Total current liabilities 5,309,222 5,155,250
Long-term debt, less current portion 2,252,000 2,290,500
Deferred gain on sale of subsidiary 1,296,597 1,296,597
----------- -----------
Total liabilities 8,857,819 8,742,347
----------- -----------
Stockholders' equity:
Preferred stock, $0.01 par value,
10,000,000 shares authorized,
61,150 shares of Series Q in 2002
and 67,910 shares of Series L and Q
in 2001 (liquidation value
$6,115,000 and $6,791,000) 612 679
Common stock, $0.01 par value,
225,000,000 shares authorized,
172,121,891 and 169,529,646
shares issued and outstanding 1,721,219 1,695,297
Additional paid-in capital 78,289,640 78,428,795
Accumulated deficit (69,526,707) (71,229,429)
----------- -----------
Total stockholders' equity 10,484,764 8,895,342
----------- -----------
$19,342,583 $17,637,689
=========== ===========
ABLE LABORATORIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
-------------------------
March 31, March 31,
2002 2001
----------- -----------
Sales, net $9,303,991 $3,926,296
Cost of sales 5,014,832 2,631,667
----------- -----------
Gross profit 4,289,159 1,294,629
----------- -----------
Operating expenses:
Selling, general and administrative 1,544,919 1,817,703
Research and development 1,020,063 439,739
----------- -----------
Total operating expenses 2,564,982 2,257,442
----------- -----------
Operating income (loss) 1,724,177 (962,813)
----------- -----------
Other income (expense):
Interest and financing expense (80,307) (486,939)
Loss on investment securities -- (50,000)
Miscellaneous income 58,852 36,257
----------- -----------
Other income (expense), net (21,455) (500,682)
----------- -----------
Net income (loss) 1,702,722 (1,463,495)
Less returns to preferred stockholders:
Beneficial conversion features -- 1,789,999
Dividends paid and accrued 126,870 37,165
----------- -----------
Net income (loss) applicable
to common stock $1,575,852 $(3,290,659)
=========== ===========
Net income (loss) per share:
Basic $0.01 $(0.03)
=========== ===========
Diluted $0.01 $(0.03)
=========== ===========
Weighted average shares outstanding:
Basic 170,952,058 107,181,259
=========== ===========
Diluted 246,208,271 107,181,259
=========== ===========
ABLE LABORATORIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
-------------------------
March 31, March 31,
2002 2001
----------- -----------
Cash flows from operating activities:
Net income (loss) $1,702,722 $(1,463,495)
Adjustments to reconcile
net income (loss) to net cash provided
by (used for) operating activities:
Gain on settlement of warrant
put liability -- (26,472)
Loss on sale of investment
securities -- 50,000
Stock, stock options
and warrants issued for services -- 66,300
Depreciation and amortization 140,876 342,491
(Increase) decrease in operating assets:
Accounts receivable 3,186,461 (624,401)
Inventory (989,024) (609,810)
Prepaid expenses and other
current assets 338,875 174,733
Deposits and other assets (82,949) (235,375)
Increase in operating liabilities:
Accounts payable and accrued expenses 384,479 2,063,948
----------- -----------
Net cash provided by (used for)
operating activities 4,681,440 (262,081)
----------- -----------
Cash flows from investing activities:
Purchase of property and equipment (1,318,361) (152,768)
Proceeds from sale of subsidiaries -- 4,800,000
Proceeds from sale
of investment securities -- 950,000
----------- -----------
Net cash provided by (used for)
investing activities (1,318,361) 5,597,232
----------- -----------
Cash flows from financing activities:
Net proceeds from stock
warrants and options 9,000 400
Net proceeds from equipment loan -- 770,000
Repayment of debt obligations (391,307) (342,364)
Net change in line of credit -- (5,959,405)
----------- -----------
Net cash used for financing
activities (382,307) (5,531,369)
----------- -----------
Net change in cash
and cash equivalents 2,980,772 (196,218)
Cash and cash equivalents
at beginning of period 1,155,266 373,832
----------- -----------
Cash and cash equivalents
at end of period $4,136,038 $177,614
=========== ===========
Supplemental cash flow information:
Interest paid $106,943 $516,491
Conversion of debt and accrued
interest into common stock -- 115,000
Preferred stock issued
for investment securities -- 4,720,000
Conversion of put liability
to notes payable -- 750,000
Preferred stock dividend accrued 122,300 --
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