Akorn Reports Year End and Fourth Quarter Results.BUFFALO GROVE Buffalo Grove A village of northeast Illinois, a suburb of Chicago. Population: 43,300. , Ill.--(BUSINESS WIRE)---Feb. 16, 1999-- Discusses 1999 Outlook; Fourth Quarter Record Sales, Income $0.08 Per Share; Annual Sales Up 34 Percent Akorn, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AKRN) today announced results for the fourth quarter and year ended December 31, 1998. Net income for the fourth quarter ended Dec. 31, 1998 was $1.4 million or $0.08 per diluted share, compared to net income of $802,000 or $0.05 per diluted share reported for the fourth quarter of 1997. Sales for the quarter totaled $15.5 million, a 27 percent increase over sales of $12.2 million reported for the quarter ended December 31, 1997. For the year ended December 31, 1998 net income totaled $3.9 million, or $0.21 per diluted share, compared to net income of $1.8 million or $0.11 per diluted share reported for the year ended December 31, 1997. The 1998 net income includes a $1.3 million pre-tax charge for purchased research and development in connection with the acquisition of certain manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. as well as a $350,000 pre-tax charge for expenses related to a cancelled public equity offering. The 1997 net income includes a $1.5 million pre-tax charge for expenses related to relocation of the Ophthalmic Division and executive offices from Abita Springs, Louisiana Abita Springs is a town in St. Tammany Parish, Louisiana, United States. The population was 1,957 at the 2000 census. Geography Abita Springs is located at (30.476233, -90.035138)GR1. to the Chicago area, as well as a $200,000 pre-tax charge for a change in timing of manufacturing absorption of overhead. Excluding these non-recurring charges, 1998 net income per share would have been $0.26 and 1997 net income per share would have been $0.17, an increase of 53 percent. Sales for the year totaled $56.7 million, a 34 percent increase over the $42.3 million in sales reported for 1997. Akorn attributed the increase in fourth quarter and annual income to a more profitable product mix, including acquired products, and leveraging operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. over a larger sales base. Commenting on these results, Floyd Benjamin, Chief Executive Officer, said, "1998 results reflect the successful implementation of our niche product strategy. Our ongoing growth strategy will continue to focus on adding complementary products to our portfolio through acquisition and internal development. Operationally, we will focus on further leveraging our infrastructure expenses through functional consolidation, creating additional efficiencies." Review of Sales 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 for the quarter ended December 31, 1998 were $15.5 million, up 27 percent over last year's $12.2 million. Gross profit increased 39 percent to $7.9 million from $5.7 million. Gross margins increased to 51 percent from 47 percent in the comparable prior year period, primarily as a result of product acquisitions and a higher-margin product mix. For the year, net sales and gross profit increased 34 percent and 55 percent, respectively, while gross margins increased from 44 percent to 51 percent. Outlook Floyd Benjamin, Chief Executive Officer, stated, "1998 produced double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" sales growth in both the ophthalmic and injectable in·ject·a·ble adj. Capable of being injected. Used of a drug. n. A drug or medicine that can be injected. product lines. We expect to sustain growth through continued acquisitions and through the introduction of internally developed products. We will continue to increase our investment in future growth by expanding our research and development activities. Our business development focus will expand to include the evaluation of potential acquisitions of product lines and entire companies as well as individual products." Akorn, Inc. manufactures and markets sterile specialty pharmaceuticals, and markets and distributes an extensive line of pharmaceuticals and ophthalmic surgical supplies and related products. The information contained in this news release, other than historical information, consists of 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. that involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such statements regarding the timing of acquiring and developing new products, of bringing them on line and of deriving revenues and profits from them, as well as the effects of those revenues and profits on the company's margins and financial position, is uncertain because many of the factors affecting the timing of those items are beyond the company's control. This press release is available on the KCSA KCSA Krannert Center Student Association KCSA Kentucky Crushed Stone Association (Frankfort, KY) KCSA Kyiv City State Administration KCSA Kalamazoo Christian School Association KCSA Kentucky-Canadian Studies Association Worldwide web site at www.kcsa.com.
Akorn, Inc.
Consolidated Statements of Earnings
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
1998 1997 1998 1997
Net sales:
Ophthalmic $ 7,999 $ 6,741 $ 29,205 $ 24,901
Injectable 7,492 5,479 27,462 17,422
-------- -------- -------- --------
Total sales 15,491 12,220 56,667 42,323
Cost of sales 7,562 6,533 27,607 23,547
-------- -------- -------- --------
Gross profit 7,929 5,687 29,060 18,776
Selling, general and
administrative 3,367 3,398 13,317 11,982
Amortization of intangibles 731 91 2,255 305
Relocation charge - - - 1,451
Research and development 867 803 4,010 1,873
Purchased R&D - - 1,298 -
-------- -------- -------- --------
Operating income 2,984 1,395 8,180 3,165
Interest expense (526) (129) (1,451) (497)
Other income (expense), net 10 7 (306) 176
Pretax income 2,448 1,273 6,423 2,844
Income taxes 1,028 471 2,509 1,052
-------- -------- -------- --------
Net income $ 1,420 $ 802 $ 3,914 $1,792
======== ======== ======== ========
Per share:
Net income-basic $ 0.08 $ 0.05 $ 0.22 $ 0.11
======== ======== ======== ========
Net income-diluted $ 0.08 $ 0.05 $ 0.21 $ 0.11
======== ======== ======== ========
Weighted average shares:
Basic 18,074 16,657 17,891 16,614
======== ======== ======== ========
Diluted 18,792 17,358 18,790 16,925
======== ======== ======== ========
CONSOLIDATED BALANCE SHEETS consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (in thousands) Dec. 31, Dec. 31, 1998 1997 (unaudited) Assets Cash and investments $ 736 $ 2,509 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , net 11,165 5,429 Inventory, net 11,004 9,955 Other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. 1,628 1,490 ________ ________ Total current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. 24,533 19,383 Property, plant and equipment, net 16,360 12,395 Intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. 18,827 4,938 _________ ________ Total assets $ 59,720 $ 36,716 ========= ======== Liabilities and shareholders' equity- Current portion of long-term debt Current Portion Of Long-Term Debt A portion of the balance sheet that represents the total amount of long-term debt that must be paid within the next year. The balance sheet has a liability section, which is broken down into long-term and current debt. and capital leases $ 5,928 $ 133 Trade accounts payable 3,458 3,411 Income taxes payable 967 371 Accrued compensation 858 1,086 Other accrued expenses 658 1,719 _________ ________ Total current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. 11,869 6,720 Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and capital leases 22,007 9,055 Other long-term liabilities Other Long-Term Liabilities A balance sheet item that includes obligations that do not currently require interest payments. Notes: This would include items such as remaining leases, future employee benefits and deferred taxes. 297 690 Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. 25,547 20,251 __________ _________ Total liabilities and shareholders' equity $ 59,720 $ 36,716 ========== ========= |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion