Albany Molecular Research, Inc. Posts Growth in Earnings, Revenue in Fourth Quarter of 2002; Organichem Acquisition to be Completed Today.Business Editors ALBANY, N.Y.--(BUSINESS WIRE)--Feb. 11, 2003 Albany Molecular Research, Inc. (Nasdaq: 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 reported financial results for the quarter and year ending December 31, 2002. Total revenue for the fourth quarter of 2002 increased to $31.5 million, a 7.6% increase over the same period in 2001. Total contract revenue for the fourth quarter of 2002 increased to $18.2 million, representing a 7.6% growth compared to contract revenue of $16.9 million during the fourth quarter of 2001. Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. royalties for the fourth quarter of 2002 were $13.3 million, a 7.5% increase over recurring royalties of $12.3 million in the fourth quarter of 2001. AMRI earns royalties 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) (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. ) for 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. Net income for the fourth quarter of 2002 increased to $11.0 million, or $0.33 per share 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, an increase of 18.4% compared to net income for the fourth quarter of 2001 of $9.3 million, or $0.27 per share on a diluted basis. AMRI also announced today that it plans to complete its acquisition of Organichem Corporation ("Organichem") later in the day today. On January 2, 2003 AMRI announced that it had exercised its conversion option with respect to $15.0 million of Organichem Corporation subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before , increasing its ownership in Organichem from 39.2% to 75.0%. At that time, AMRI indicated its intention to acquire the remaining 25.0% ownership in Organichem by the end of the first quarter of 2003. The cash purchase price for the remaining 25.0% ownership is $30.0 million. AMRI financed the acquisition through a new $65.0 million credit facility which replaced the company's previous $25.0 million line of credit. "AMRI delivered another strong performance in a very difficult economic environment," said Chairman, President and Chief Executive Officer Thomas E. D'Ambra, Ph.D. "At a time when many companies in the industry are facing tremendous pressures, AMRI has steadily and consistently posted year-over-year quarterly growth in contract revenue and net income. Much of the credit for our continued success during these challenging times goes to our scientists and employees. Their commitment to the company, our customers and our mission has not wavered. Even during these challenging times, we experienced a healthy 19% increase in contract revenue in 2002 compared to the full year 2001, and an 18% increase in net income over the 2001 level. This is especially significant given that R&D spending by 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. has slowed or declined, and many companies in our industry have been forced to consider restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). or expenditure reductions in order to make up for declining revenues." Dr. D'Ambra also noted that cost-saving initiatives continue at many companies in our customer base and that AMRI has not been immune from the economic downturn. Despite this, the company still experienced strong profitability and growth in 2002. Dr. D'Ambra added, "The spending slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. by our customers will have its largest impact in the first half of 2003. We are already seeing signs of increased activity and believe that this will lead to growth levels picking up in the second half of the year. We continued to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our technology base with the addition of physical characterization A rather long and fancy word for analyzing a system or process and measuring its "characteristics." For example, a Web characterization would yield the number of current sites on the Web, types of sites, annual growth, etc. , drug metabolism Drug Metabolism/Interactions Definition Drug metabolism is the process by which the body breaks down and converts medication into active chemical substances. Precautions Drugs can interact with other drugs, foods, and beverages. screening and metabolite metabolite, organic compound that is a starting material in, an intermediate in, or an end product of metabolism. Starting materials are substances, usually small and of simple structure, absorbed by the organism as food. production technologies. Also, Organichem had strong income growth in both the fourth quarter and the full-year 2002. The full acquisition of Organichem provides vertical integration as AMRI expands its capabilities to include commercial cGMP manufacturing and production of highly potent drug substances. This depth and breadth of technologies provides our customers with one high quality chemistry provider from lead discovery to product launch, and further diversifies our sources of revenue. Going forward, we intend to leverage our ability to provide problem-solving, value-added expertise to large-scale cGMP manufacturing projects at Organichem." In January 2003 Organichem passed a preapproval and general systems-based inspection by the U.S. Food and Drug Administration in which no Form 483 observations were issued. "This positive inspection reaffirms the commitment to modern and high level quality systems at Organichem, and is particularly noteworthy given that it comes at a time of heightened 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. scrutiny of pharmaceutical manufacturers," Dr. D'Ambra said. Turning to Allegra royalties, D'Ambra concluded, "Allegra royalties for 2002 surpassed expectations, reaching $51 million despite the continued spotlight on risk factors of this product and the over-the-counter availability of Claritin in early December. Allegra continued to gain market share and has become the largest-selling prescription drug prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, in its class." Additionally, AMRI announced today that its board of directors recently appointed Thomas E. D'Ambra, Ph.D. to the additional title of president of the company. Dr. D'Ambra is now Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . In early January, former AMRI President Donald E. Kuhla, Ph.D. transitioned to part-time employment and assumed the title of executive vice president. Dr. Kuhla remains a member of the company's leadership team and its board of directors. AMRI has initiated a search for a senior-level scientific officer to assume oversight
Oversight may refer to:
Full Year 2002 Total revenue for the year ending December 31, 2002 increased to $122.8 million, an increase of $20.8 million, or 20.4%, compared to total revenue of $102.0 million during the same period in 2001. Total contract revenue for the year 2002 increased 18.8% to $71.7 million, compared to contract revenue of $60.3 million for the comparable period in 2001. Recurring royalty revenue for the year 2002 increased by 22.7% to $51.1 million, compared to recurring royalty revenue of $41.7 million during 2001. Net income for the year ending December 31, 2002 was $40.6 million, or $1.22 per share on a diluted basis, representing a 17.9% increase compared to net income during the year 2001. Net income for 2001 was $34.4 million, or $1.01 per share on a diluted basis. The total number of employees at AMRI's five locations at the end of December 2002 was 607, including 404 scientists. At December 31, 2002, AMRI had cash, cash equivalents and investments of $129.5 million, compared to $121.2 million at September 30, 2002. The net increase of $8.3 million in cash, cash equivalents and investments in the fourth quarter of 2002 was due primarily to cash generated from operations of $14.8 million, offset by the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 117,900 shares of AMRI stock at a cost of $1.8 million and $5.0 million in purchases of property plant and equipment. Total common shares outstanding at December 31, 2002 were 32,327,274. Organichem Total revenue at Organichem Corporation was $23.3 million in the fourth quarter of 2002, a 57.5% increase compared to the fourth quarter of 2001. Total revenue at Organichem for the year ending December 31, 2002 was $86.2 million, a 25.9% increase over the same period in 2001. Net income at Organichem increased by $2.9 million to $3.1 million in the fourth quarter of 2002, and increased 84.2% to $7.6 million for the year ending December 31, 2002. In its status as a minority shareholder during 2002, AMRI did not include Organichem's revenues in its total revenues stated above, but included its proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. share of Organichem's net income in its income statement as equity in income of unconsolidated affiliates Effective January 1, 2003, AMRI began consolidating its financial results with Organichem. For the period January 1, 2003 through February 10, 2003, AMRI's consolidated financial results will reflect 75% ownership of Organichem. Effective February 11, 2003, the date of the Organichem acquisition, AMRI's financial results will reflect 100% ownership of Organichem. Earnings Guidance AMRI Chief Financial Officer David P. Waldek provided earnings guidance for the first quarter and full year 2003. Mr. Waldek said, "We continue to project full year 2003 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 to range from $1.42 to $1.51 per share. Even with the challenging economic environment for our customers, we are still projecting growth in our contract business to range from 10% to 15%, compared to our previous guidance of 15% to 20%. The visibility on our contract revenue for 2003 is approximately 65% of our forecasted contract revenue. We consider our visibility to represent contract revenue from existing customer contracts, including the renewal of existing contracts that come up for renewal during the remainder of 2003. Although we are projecting contract revenue from Organichem in 2003 to remain at the same level compared to 2002, we anticipate that gross margin improvements from product mix and cost synergies Cost Synergy In the context of mergers, cost synergy is the savings in operating costs expected after two companies, who compliment each other's strengths, join. Notes: The savings in operating costs usually come in the form of laying off employees. resulting from the acquisition to improve Organichem's overall profit margin. We continue to project growth in Allegra royalties in the range of 5% to 10% in 2003." Mr. Waldek continued, "For the first quarter of 2003, we are projecting diluted earnings per share for AMRI in the range of $0.23 to $0.24 per share. We are forecasting contract revenues in the first quarter 2003 for AMRI to range from $15.5 to $16.5 million and contract revenues for Organichem to range from $17.0 to $18.0 million. The earnings guidance for the first quarter of 2003 reflects lower projected contract revenues compared to the first quarter 2002 resulting from the difficult economic environment as well as a different skew (1) The misalignment of a document or punch card in the feed tray or hopper that prohibits it from being scanned or read properly. (2) In facsimile, the difference in rectangularity between the received and transmitted page. in the quarterly production plan from Organichem's largest customer." "This earnings guidance does not reflect the impact of any potential future warrants issued to Bristol-Myers Squibb Bristol-Myers Squibb (NYSE: BMY), colloquially referred to as BMS, is a pharmaceutical corporation, formed by a 1989 merger between pharmaceutical companies Bristol-Myers Company, founded in 1887 by William McLaren Bristol and John Ripley Myers in Clinton, NY (both were to purchase additional shares of AMRI common stock," added Mr. Waldek. AMRI issued warrants for the purchase of AMRI common stock to Bristol-Myers Squibb in early 2002 under an agreement whereby Bristol-Myers Squibb transferred intellectual property to AMRI, providing AMRI with ownership of one of Bristol-Myers Squibb's later-stage pre-clinical drug candidates, along with patent applications covering Attention Deficit Hyperactivity Disorder attention deficit hyperactivity disorder (ADHD), formerly called hyperkinesis or minimal brain dysfunction, a chronic, neurologically based syndrome characterized by any or all of three types of behavior: hyperactivity, distractibility, and impulsivity. and central nervous system indications. "We expect a future warrant expense of $2.5 million dollars, which we expect will be completely or partially offset by up-front revenue resulting from licensing the intellectual property to a third party. In addition, the 2003 earnings guidance does not include any purchase accounting adjustments related to the Organichem acquisition. At this time, we estimate that purchase accounting adjustments will range from $2.0 to $3.0 million," said Mr. Waldek. Fourth Quarter 2002 Highlights Other noteworthy items and company announcements during the fourth quarter of 2002 include the following:
-- The authorization of a second stock repurchase program, following the completion of a stock repurchase program approved by the board of directors in September 2001. Under the second program, the company is authorized to repurchase up to $15.0 million of the issued and outstanding shares of its Common Stock in the open market or in private transactions during a 12-month period. Under this repurchase program, AMRI has purchased 117,900 shares of AMRI stock at a cost of $1.8 million. During 2002, AMRI repurchased a total of 1,097,900 shares of its stock at a cost of $23.5 million. Weighted average diluted shares outstanding decreased to 33,309,164 for the full year 2002 from 34,153,925 for the full year 2001 primarily as a result of share repurchases in 2002.
-- The announcement of a renewable, one-year pharmaceutical research and development collaboration with Takeda Chemical Industries, Ltd. of Japan ("Takeda"). AMRI will conduct chemistry research to identify and develop small molecule drug candidates against a proprietary Takeda target. AMRI will receive fees based on the number of scientists working on Takeda projects, and may receive success fees for meeting certain development milestones on new compounds for which an AMRI scientist is listed as an inventor. AMRI may also receive a royalty on net sales of commercial products that result from the collaboration.
-- The opening of two new, state-of-the-art analytical chemistry laboratories and the expansion of AMRI's analytical services to include the physical characterization of pharmaceutical compounds, particularly in the area of polymorph assessment. Since the beginning of 1998, AMRI's analytical chemistry team has grown from five employees to 51.
-- The company ranked 16th on the Forbes list of the 200 Best Small Companies, marking the third consecutive year that AMRI has made the list. AMRI ranked in the top ten percent of companies on the list in 2000, 2001 and 2002. In addition to being recognized by Forbes, AMRI appeared earlier this year on Fortune's 100 Fastest-Growing Companies list, and in both 2000 and 2001 on Business Week's list of Hot Growth Companies.
-- The company began offering to customers compounds from its fine chemicals collection. The catalog consists of structurally diverse, non-proprietary scaffolds, intermediates and starting materials designed and synthesized by AMRI scientists. The catalog is available on-line at www.albmolecular.com/features /catalog.
Selected Full Year 2002 Highlights During 2002, AMRI made a number of noteworthy announcements, including: -- An agreement with Myriad Genetics Myriad Genetics is a leading biopharmaceutical company focused on understanding the relationship between genes, proteins and human diseases in order to develop the next generation of therapeutic and molecular diagnostic products. , Inc. (Nasdaq: MYGN) to conduct chemistry research and development in important therapeutic areas. -- The addition of two new, multipurpose mul·ti·pur·pose adj. Designed or used for several purposes: a multipurpose room; multipurpose software. multipurpose Adjective cGMP (current Good Manufacturing Practices) manufacturing suites at AMRI's facilities in Albany, New York For other uses, see Albany. Albany is the capital of the State of New York and the county seat of Albany County. Albany lies 136 miles (219 km) north of New York City, and slightly to the south of the juncture of the Mohawk and Hudson Rivers. . The suites are designed for the synthesis of bulk active pharmaceutical ingredients, suitable for administration to humans, after formulation formulation /for·mu·la·tion/ (for?mu-la´shun) the act or product of formulating. American Law Institute Formulation into appropriate dosage forms A dosage form is the physical form of a dose of medication, such as a capsule or injection. The route of administration is dependent on the dosage form of a given drug. . The expansion is in response to growing demand for cGMP synthesis. -- An agreement with Bristol-Myers Squibb Company (NYSE NYSE See: New York Stock Exchange : BMY BMY Bristol Myers Squibb ) to replace AMRI's contract with the former DuPont Pharmaceuticals Company, which was acquired by Bristol-Myers Squibb in October 2001. The new relationship includes a three-year agreement between AMRI and Bristol-Myers Squibb, which continues the drug discovery collaboration first initiated with DuPont Pharmaceuticals, and provides AMRI with ownership of one of Bristol-Myers Squibb's late-stage pre-clinical drug candidates, along with a patent estate in Attention Deficit Hyperactivity Disorder Attention-Deficit/Hyperactivity Disorder (ADHD) Definition Attention-deficit/hyperactivity disorder (ADHD) is a developmental disorder characterized by distractibility, hyperactivity, impulsive behaviors, and the inability to remain focused on tasks or (ADHD Attention-Deficit/Hyperactivity Disorder (ADHD) Definition Attention-deficit/hyperactivity disorder (ADHD) is a developmental disorder characterized by distractibility, hyperactivity, impulsive behaviors, and the inability to remain focused on tasks or ) and central nervous system (CNS See Continuous net settlement. CNS See continuous net settlement (CNS). ) indications related both to this candidate and patented analogs. AMRI is free to develop the candidate on its own or license it to a third party. -- A collaborative research program with Nobex Corporation to develop a comprehensive library of proprietary polymers for use in pharmaceuticals as well as in additional applications in the life sciences, cosmetic cosmetic /cos·met·ic/ (koz-met´ik) 1. pertaining to cosmesis. 2. a beautifying substance or preparation. cos·met·ic n. , food and industrial sectors. -- The funding of postdoctoral post·doc·tor·al also post·doc·tor·ate adj. Of, relating to, or engaged in academic study beyond the level of a doctoral degree. Noun 1. research associate positions at the University at Albany and Rensselaer Polytechnic Institute Rensselaer Polytechnic Institute, at Troy, N.Y.; coeducational; founded and opened 1824 as Rensselaer School; chartered 1826. It was called Rensselaer Institute from 1837 to 1861. . The funds are for research in any area of organic or medicinal medicinal /me·dic·i·nal/ (mi-dis´in-il) having healing qualities; pertaining to a medicine. me·dic·i·nal adj. Of, relating to, or having the properties of medicine. chemistry by scientists with a completed doctoral degree. The awards are intended to recognize support from each institution that the company received during its startup phase. -- The election of Paul S. Anderson, Ph.D., a 38-year veteran of drug discovery, to the company's board of directors. Dr. Anderson recently retired from his position as vice president of drug discovery at Bristol-Myers Squibb Company. During his lengthy career in the pharmaceutical industry, he held senior-level research positions at both Merck & Co, Inc. and DuPont Pharmaceuticals. He has been significantly credited in developing FDA-approved drugs to treat a number of illnesses and conditions, including AIDS, high cholesterol Cholesterol, High Definition Cholesterol is a fatty substance found in animal tissue and is an important component to the human body. It is manufactured in the liver and carried throughout the body in the bloodstream. , coronary coronary /cor·o·nary/ (kor´o-nar?e) encircling like a crown; applied to vessels, ligaments, etc., especially to the arteries of the heart, and to pathologic involvement of them. cor·o·nar·y adj. heart disease and glaucoma glaucoma (glôkō`mə), ocular disorder characterized by pressure within the eyeball caused by an excessive amount of aqueous humor (the fluid substance filling the eyeball). . -- A drug discovery collaboration with Genzyme Corp. in which AMRI is providing libraries of natural products extracts to Genzyme for biological screening against a number of therapeutic targets. -- A three-year 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. drug discovery research agreement with Merck & Co., Inc (NYSE: MRK MRK Merck & Company (stock symbol) MRK Mayer-Rokitansky-Kuster (anomaly) MRK Manual Remote Keying ). The fee-for-service agreement provides AMRI with the opportunity to receive success milestone payments for any compound that achieves specific clinical and regulatory benchmarks. Success fees paid to AMRI, if realized, would be paid on compounds for which AMRI scientists are designated as inventors. -- The dedication of AMRI's new 28,000 square foot Syracuse Research Center. Scientists at the facility conduct small-scale custom 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. to support early stage drug discovery and larger, kilogram kilogram, abbr. kg, fundamental unit of mass in the metric system, defined as the mass of the International Prototype Kilogram, a platinum-iridium cylinder kept at Sèvres, France, near Paris. scale chemical development to produce drug candidates and intermediates for use in preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. or clinical studies. -- The introduction of AMRI's new "Semi-Exclusive Subscription Libraries," a series of unique, small molecule, synthetic combinatorial chemistry Combinatorial chemistry involves the rapid synthesis or the computer simulation of a large number of different but structurally related molecules. Introduction Synthesis of molecules in a combinatorial fashion can quickly lead to large numbers of molecules. libraries that are available for drug discovery purposes to a limited number of subscribers. -- The addition of drug metabolism assay and metabolite production capabilities. AMRI's new high throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. metabolic met·a·bol·ic adj. Of, relating to, or resulting from metabolism. Metabolic Refers to the chemical processes of an organ or organism. screening system provides valuable information about metabolic stability and interactions of test drug candidates with human metabolic enzymes. This information can be used to select compounds with optimum metabolic stability and minimize the potential for drug-drug interactions. -- The company was ranked number 59 on Fortune magazine's list of the 100 Fastest-Growing Companies. Additionally, the company was number 317 on the 2002 Deloitte & Touche Technology Fast 500, a listing of the fastest-growing technology companies in the United States and Canada. Fourth Quarter Conference Call The company will hold a conference call at 10:00 a.m. Eastern Time on February 11, 2003 to discuss its quarterly results and business highlights and prospects. During the conference call, the company may discuss information not previously disclosed to the public. Individuals interested in listening to the conference call should dial 800-450-0818 (for domestic calls) or 612-332-0345 (for international calls) at 9:45 a.m. and reference the AMRI Fourth Quarter 2002 Earnings Release conference call. Replays of the call will be available for seven days following the call beginning at 3:15 p.m. on February 11, 2003. To access the replay by telephone, please call 800-475-6701 (for domestic calls) or 320-365-3844 (for international calls) and use access code #673432. Albany Molecular Research, Inc. is a leading research, drug discovery and development company built on a chemistry platform of comprehensive and integrated technologies, resources and capabilities. The company conducts pharmaceutical research and development with many leading pharmaceutical and biotechnology companies and for its own internal discovery programs. 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. These statements include, but are not limited to, statements regarding the company's estimates of earnings in the first quarter of 2003 and earnings guidance for the full year 2003, statements regarding the company's ability to acquire and develop value-added discovery technologies, statements regarding the company's prospects for the remainder of 2003 and beyond, statements regarding the development of new technology, trends in pharmaceutical and biotech bi·o·tech n. Informal Biotechnology. biotech Noun short for biotechnology Noun 1. 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. and the positioning of the Company's contract business for 2003, and statements regarding the acquisition and expected performance of Organichem Corporation. These statements may also be identified by forward-looking words such as "may," "could," "should," "would," "will," "intend," "expect," "anticipate," "believe," and "continue" or similar words. Readers should not place undue reliance on our forward-looking statements. The company's actual results may differ materially from such forward-looking statements as a result of numerous factors, some of which the company may not be able to predict and may not be within the company's control. 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 chemical research and development, including continued softness in these markets, sales of Allegra (including any deviations in estimates provided by Aventis) and the company's receipt of significant royalties from the Allegra license agreement, the risk that Allegra may be approved for over-the-counter use, and Claritin's approval for over-the-counter use, the company's ability to enforce its intellectual property and technology, the company's ability to successfully develop novel compounds and lead candidates in its collaborative arrangements, the company's ability to take advantage of proprietary technology and expand the scientific tools available to it, the ability of the company's strategic investments and acquisitions to perform as expected, the company's ability to successfully complete its ongoing expansion projects on schedule and integrate acquired companies, 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, 2001 as filed with the Securities and Exchange Commission on April 1, 2002 and in the company's other SEC filings. Earnings guidance offered by senior management today represents a point-in-time estimate and is based on information as of the date of this press release. Senior management has made numerous assumptions in providing this guidance which, while believed to be reasonable, may not prove to be accurate. In addition, as noted above, there are numerous factors which may cause actual results to differ materially from the guidance provided. The company expressly disclaims any current intention or obligation to update the guidance provided or any other forward-looking statement in this press release to reflect future events or changes in facts assumed for purposes of providing this guidance or otherwise affecting the forward-looking statements contained in this press release.
Albany Molecular Research, Inc.
Consolidated Statements of Income
(unaudited)
(Dollars in thousands, except per share data)
Three Months Twelve Months
Ended Ended
---------------- ------------------
December December December December
31, 31, 31, 31,
2002 2001 2002 2001
------- ------- -------- --------
Contract revenue $18,237 $16,948 $ 71,688 $ 60,336
Recurring royalties 13,278 12,349 51,139 41,674
------- ------- -------- --------
Total revenue 31,515 29,297 122,827 102,010
Cost of contract revenue 10,567 9,722 41,314 34,947
Technology incentive award 1,327 1,235 5,107 4,165
Research and development 1,488 1,262 7,096 4,290
Selling, general and
administrative 3,220 3,724 12,896 12,194
------- ------- -------- --------
Total costs and expenses 16,602 15,943 66,413 55,596
------- ------- -------- --------
Income from operations 14,913 13,354 56,414 46,414
Equity in (loss) income of
unconsolidated affiliates 1,266 (112) 2,795 1,130
Other income, net 809 1,160 4,028 6,557
------- ------- -------- --------
Income before income tax expense 16,988 14,402 63,237 54,101
Income tax expense 5,976 5,101 22,686 19,707
------- ------- -------- --------
Net income $11,012 $ 9,301 $ 40,551 $ 34,394
======= ======= ======== ========
Basic earnings per share $ 0.34 $ 0.28 $ 1.24 $ 1.04
======= ======= ======== ========
Diluted earnings per share $ 0.33 $ 0.27 $ 1.22 $ 1.01
======= ======= ======== ========
Albany Molecular Research, Inc.
Selected Consolidated Balance Sheet Data
(Unaudited)
In thousands
December December
31, 31,
2002 2001
Cash, cash equivalents and investments $129,537 $135,865
Accounts receivable, net 13,260 9,965
Royalty receivable 13,251 12,361
Total current assets 172,455 167,595
Net property, plant and equipment 72,518 59,756
Total assets 301,982 285,986
Current liabilities 12,936 16,415
Long term debt 5,281 5,937
Stockholders' equity 281,939 263,633
Total liabilities and stockholders' equity 301,982 285,986
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