Albany Molecular Research, Inc. Announces 58% Second Quarter Profit Increase; Company Declares 2-for-1 Stock Split.Business Editors ALBANY Albany, town, Australia Albany (ăl`bənē), town (1996 pop. 14,590), Western Australia, SW Australia. It is a port on Princess Royal Harbour of King George Sound. The town has woolen mills and fish canneries. , N.Y.--(BUSINESS WIRE)--Aug. 7, 2000 Net Contract Revenue Increases 72%; Royalties Increase 32% Albany Molecular Research, 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 :AMRI AMRI Albany Molecular Research (stock symbol) AMRI Advanced Magnetic Research Institute (Mocksville, NC) AMRI Advanced Materials Research Institute AMRI Adult Movie Review Index ) today announced significant increases in net income and revenue during the second quarter of 2000, as well as a two-for-one stock split of the Company's common stock. Net income for the quarter ending June June: see month. 30, 2000 increased by 58% to $5.9 million, or $0.38 per share (pre-stock split), on a 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, compared to $3.7 million, or $0.25 per share (pre-stock split) on a diluted basis, in the second quarter of 1999. The Company also posted total revenues of $16.6 million, a $5.6 million or 51% increase over the same quarter last year. The revenue increase was driven by a record $8.8 million in net contract revenue, a 72% increase from $5.1 million in the second quarter of 1999. The period ending June 30, 2000 is the 14th consecutive quarter in which the Company's contract revenue has increased. Total second quarter revenues also included $7.7 million in royalties, representing a 32% increase over royalty revenues of $5.8 million during the comparable period of 1999. The Company earns royalty revenues from worldwide sales of the non-sedating antihistamine antihistamine (ăn'tĭhĭs`təmēn), any one of a group of compounds having various chemical structures and characterized by the ability to antagonize the effects of histamine. Allegra Al·leg·ra A trademark for the drug fexofenadine hydrochloride. fexofenadine hydrochloride Allegra, Telfast (UK) Pharmacologic class: Peripherally selective piperidine, selective histamine (R) (sold as Telfast(R) outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ). The royalties result from a 1995 licensing agreement with Aventis Aventis Is a pharmaceutical and lab assay testing company. It was formed in 1999 when Rhône-Poulenc S.A. merged with Hoechst AG. The merged company was based in Strasbourg, France. Sanofi-Aventis was formed in 2004 when Sanofi-Synthélabo purchased Aventis. S.A., the manufacturer of Allegra(R). AMRI holds several patents relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the active ingredient An active ingredient, also active pharmaceutical ingredient (or API), is the substance in a drug that is pharmaceutically active. Some medications may contain more than one active ingredient. in Allegra(R). "The Company turned in a strong performance during this year's second quarter," said Chairman and Chief Executive Officer Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs E. D'Ambra, Ph.D. "We continued to expand our business and strengthen relationships with customers. Revenues from both contracts and royalties are strong, with contract revenue reaching a record level. The Company's growth speaks volumes about the high quality work of our scientists and staff." Dr. D'Ambra also noted that in July 2000, AMRI announced a $650,000 investment in Fluorous Technologies, a new company specializing in the use of fluorous organic chemistry technology for chemical synthesis In chemistry, chemical synthesis is purposeful execution of chemical reactions in order to get a product, or several products. This happens by physical and chemical manipulations usually involving one or more reactions. , isolation and purification purification, in religion, the ceremonial removal of what the religion deems unclean. The usual agents of purification are water (as in baptism), bodily alteration (as in circumcision), and fire. . "We will continue to position ourselves to take advantage of proprietary technology in an effort to expand the scientific tools available to us in our chemistry research and development efforts." Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. For the six-month period ending June 30, 2000, net income and revenue both increased over the comparable period last year. Net income totaled $10.3 million, or $0.66 per share (pre-stock split) on a diluted basis, representing a 63% increase over the same period in 1999. Total revenue for the six-month period was $30.1 million, representing a 52% increase from the same period in 1999. Net contract revenue for the first six months was $16.7 million, representing a 71% increase over net contract revenue of $9.7 million for the comparable period in 1999. Royalty revenue for the first half of 2000 was $13.4 million, a 34% increase over royalties of $10.0 million in the first half of 1999. Total revenues at Organichem Corporation, an unconsolidated affiliate of AMRI, were $15.3 million in the second quarter and $30.5 million for the first six months of 2000. In December 1999, AMRI announced a strategic investment in Organichem Corporation, a new company formed by the management buyout Management buyout (MBO) Leveraged buyout whereby the acquiring group is led by the firm's management. management buyout See going private. of the Rensselaer-based chemical manufacturing facilities formerly owned by Nycomed-Amersham. As a minority shareholder, these revenues are not included in AMRI's total revenues stated above. Other Second Quarter Highlights During the quarter ending June 30, 2000, AMRI added five new customers, renewed or expanded an additional four contracts, and added a net of 28 scientists. "Our growth in contract revenue was supported by strong recruitment efforts," said Dr. D'Ambra. The total number of employees at AMRI's four locations at the end of the quarter was 288, including 189 scientists. An additional 26 scientists have accepted employment offers and are expected to join the Company during the remainder of 2000. The Company also continued two ongoing expansion projects. When completed, the projects will add, respectively, 34 scientific workstations at AMRI's East Campus in Rensselaer, NY and 22 scientific workstations at AMRI's EnzyMed Division in Iowa City Iowa City, city (1990 pop. 59,738), seat of Johnson co., E Iowa, on both sides of the Iowa River; founded 1839 as the capital of Iowa Territory, inc. 1853. Among its manufactures are foam rubber, animal feed, paper, and food products. The city is the seat of the Univ. , IA. Both projects should be completed by the end of the year. Two-for-One Stock Split AMRI's Board of Directors also approved a two-for-one stock split by way of a stock dividend on the Company's outstanding shares of common stock. The stock split entitles each stockholder of record at the close of business on August 8, 2000, to receive a stock dividend of one additional share for each share of Albany Molecular Research, Inc. common stock held on that date. The Company's transfer agent on August 24, 2000 will distribute the additional shares resulting from the stock split. The Company currently has approximately 14.9 million shares outstanding. Upon completion of the split, that number will increase to approximately 29.8 million shares. About Albany Molecular Research, Inc. Albany Molecular Research, Inc. provides comprehensive chemistry research and development services to companies in the pharmaceutical and biotechnology industries. The Company's services span the entire drug development cycle, from lead discovery to commercial manufacturing, allowing customers to more efficiently and cost-effectively develop products than could be done internally or through multiple vendors. The chemistry divisions within pharmaceutical and biotechnology companies Top 100 Biotechnology Companies The following is a list of the top 100 biotechnology companies ranked by revenue. The first nine companies qualify for the list of the top 50 pharmaceutical companies. have traditionally provided most of the services the Company provides. These services include drug discovery, medicinal chemistry Medicinal or pharmaceutical chemistry is a scientific discipline at the intersection of chemistry and pharmacology involved with designing, synthesizing and developing pharmaceutical drugs. , chemical development, analytical chemistry analytical chemistry: see under chemistry. services, small-scale, pilot-plant and commercial manufacturing. The Company also conducts proprietary research to discover new lead compounds or processes with commercial potential. Statements in this press release that are not historical facts 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 that involve risks and uncertainties. The Company's actual results may differ materially from such forward-looking statements. Factors that could cause such differences include, but are not limited to, the Company's ability to attract and retain experienced scientists, trends in pharmaceutical and biotechnology companies outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. chemical research and development, sales of Allegra(R) and the Company's receipt of significant royalties from the Allegra(R) license agreement, the Company's ability to enforce its intellectual property and technology, the Company's ability to take advantage of proprietary technology and expand the scientific tools available to it, the Company's strategic investments to perform as expected, the Company's ability to successfully complete its ongoing expansion projects on schedule, and the Company's ability to effectively manage its growth, as well as those discussed in the Company's 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 31, 1999 as filed with the Securities and Exchange Commission on March 30, 2000 and in the Company's other SEC filings.
Albany Molecular Research, Inc.
Condensed Consolidated Statements of Income
(unaudited)
(Dollars in thousands, except per share)
Three Months Ended Six Months Ended
----------------- -----------------
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
------- ------- ------- -------
Net contract revenue $ 8,834 $ 5,145 $16,667 $ 9,732
Recurring royalties 7,744 5,850 13,425 10,034
------- ------- ------- -------
Total revenue 16,578 10,995 30,092 19,766
Cost of contract revenue 4,938 2,928 9,324 5,529
Technology incentive award 774 578 1,343 993
Research and development 568 476 986 929
Selling, general and
administrative 1,867 1,556 3,769 2,979
------- ------- ------- -------
Total costs and expenses 8,147 5,538 15,422 10,430
------- ------- ------- -------
Income from operations 8,431 5,457 14,670 9,336
Equity in income of
unconsolidated subsidiaries 243 -- 350 --
Other income, net 632 481 1,345 730
------- ------- ------- -------
Income before income tax
expense 9,306 5,938 16,365 10,066
Income tax expense 3,444 2,226 6,086 3,773
------- ------- ------- -------
Net income $ 5,862 $ 3,712 $10,279 $ 6,293
======= ======= ======= =======
Basic earnings per share $ 0.40 $ 0.31 $ 0.69 $ 0.49
======= ======= ======= =======
Diluted earnings per share $ 0.38 $ 0.25 $ 0.66 $ 0.44
======= ======= ======= =======
Selected Consolidated Balance Sheet Information
June 30, December 31,
2000 1999
------------ ------------
(unaudited)
Cash & Investments $ 29,203 $ 24,845
Accounts Receivable, Net 6,207 4,222
Royalty Receivable 7,805 5,382
Total Current Assets 46,007 39,586
Net Property, Plant & Equipment 20,709 15,879
Investment in Unconsolidated Affiliates 15,975 15,033
Subordinated Debenture, Long-Term 15,000 15,000
Total Assets 102,376 88,242
Current Liabilities 6,241 5,154
Stockholders' Equity 96,135 82,920
Total Liabilities & Stockholders' Equity 102,376 88,242
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