Albany Molecular Research, Inc. Posts Record Fourth Quarter Contract Revenue; Net Income Up 24%.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)--Feb. 19, 2002 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 operating results for the quarter and year ended December December: see month. 31, 2001. Total revenue for the fourth quarter 2001 increased by 49% to $28.5 million, compared to $19.2 million for the fourth quarter of 2000. Net contract revenue for the fourth quarter of 2001 increased by 49% to $16.2 million, compared to net contract revenue of $10.8 million during the fourth quarter of 2000. The quarter ended December 31, 2001 is the 20th consecutive quarter in which the company's net contract revenue has increased. 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 Not to be confused with Royal family. Royalties (sometimes, running royalties) are usage-based payments made by one party (the "licensee") to another (the "licensor") for ongoing use of an asset, most typically an intellectual property (IP) right. for the fourth quarter of 2001 were $12.3 million, a 48% increase over recurring royalties of $8.3 million in the fourth quarter of 2000. 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 2001 increased by 24% to $9.3 million, or $0.27 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, compared to net income in the fourth quarter of 2000 of $7.5 million, or $0.22 per share on a diluted basis. Included in net income for the fourth quarter of 2000 was a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. benefit to earnings of $159,500, net of taxes of $97,700, related to AMRI's investment in Organichem. AMRI recognized the one-time benefit in the fourth quarter of 2000 as a result of the retirement of Organichem shares of treasury stock, which increased AMRI's equity ownership in Organichem from 37.5% to 39.2%. AMRI 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. said, "AMRI delivered another solid performance during the fourth quarter and reinforced its place as an industry leader in providing high-quality chemistry research for companies in the pharmaceutical, biotechnology and genomics ge·no·mics n. The study of all of the nucleotide sequences, including structural genes, regulatory sequences, and noncoding DNA segments, in the chromosomes of an organism. industries. We continued to experience steady increases in revenue and income, and are particularly pleased that we were able to continue this growth in the face of a slowing U.S. economy and mounting economic and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. pressures on healthcare companies." D'Ambra continued, "The year 2001 for AMRI was marked by significant acquisition activity and investments in new technologies and R&D projects. During the year, we continued to expand our drug discovery services See service discovery. and broaden our geographic reach. We believe that our emphasis on acquiring and developing value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: discovery technologies should continue to give us leverage in securing opportunities to share in the potential success of our relationships through technology access fees, licensing agreements, and milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. or royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. provisions." In conjunction with today's earnings release, AMRI is also announcing in a separate news release a letter-of-intent with 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 Company providing for the replacement of AMRI's contract with DuPont Dupont, DuPont, Du Pont, or du Pont may refer to: Companies
Earnings Guidance AMRI Chief Financial Officer David P. Waldek provided updated earnings guidance. "Based on the current revenue visibility from our contract business and the continued strong sales of Allegra, we are revising our current earnings guidance for the full year 2002 to a range of $1.19 to $1.23 per diluted share from a range of $1.14 to $1.17 per diluted share," he said. "The signing of our letter-of-intent with Bristol-Myers Squibb has reduced the uncertainty surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the availability of our scientists and the timing for them to work on projects for other customers. Based on current strong demand, we project our contract revenues for 2002 to range from $70 to $72 million. Contract revenue growth in the first quarter will be impacted by the reduction and reassignment of thirty scientists effective January January: see month. 15, 2002 from the renegotiated DuPont Pharmaceuticals contract with Bristol-Myers Squibb. Even with the reduction in scientists from the DuPont Pharmaceuticals contract, we expect contract revenues in the first quarter of 2002 to be at the same level as the fourth quarter of 2001. Based upon guidance provided by 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. during its fourth quarter earnings conference call on February February: see month. 13, 2002, we currently project royalties from sales of Allegra in 2002 to range from $46 to $48 million." Mr. Waldek added, "On a quarterly basis for 2002, we currently project that 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 first quarter will range from $0.25 to $0.26; the second quarter from $0.29 to $0.32; the third quarter from $0.29 to $0.32 and the fourth quarter from $0.30 to $0.33. We also expect continued strong performance in 2002 from Organichem Corporation, an unconsolidated affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. of AMRI. Revenues from Organichem in 2002 are projected to be between $73 and $75 million, an increase from 2001 revenues of $68.2 million. Organichem's 2002 EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). is projected to range from $12 to $14 million compared to an EBIT in 2001 of $10.2 million." 2001 Full Year Earnings Total revenue for the year ended December 31, 2001 increased by 48% to $98.5 million. Net contract revenue for 2001 increased by 52% to $56.8 million, compared to net contract revenue of $37.4 million in 2000. For 2001, recurring royalties increased by 43% to $41.7 million, compared to $29.2 million in 2000. Net income for 2001 was $34.4 million, or $1.01 per share on a diluted basis, representing a 46% increase from 2000. Net income for the year 2000 was $23.6 million, or $0.74 on a diluted basis. Total revenues at Organichem Corporation, an unconsolidated affiliate of AMRI, were $14.7 million in the fourth quarter of 2001 and $68.2 million for the full-year 2001. As a minority shareholder, AMRI does not include these revenues in its total revenues stated above. At December 31, 2001, AMRI had cash, cash equivalents and investments of $135.9 million, compared to $152.0 million at December 31, 2000. The net decrease of $16.1 million in cash, cash equivalents and investments in 2001 was due primarily to the $23.0 million purchase of Seattle-based New Chemical Entities, Inc., the $10.0 million purchase of Great Lakes Great Lakes, group of five freshwater lakes, central North America, creating a natural border between the United States and Canada and forming the largest body of freshwater in the world, with a combined surface area of c.95,000 sq mi (246,050 sq km). Chemical Corporation's Mount Prospect facility, and $21.0 million in purchases of property, plant and equipment, offset by $32.3 million in cash generated from operations and $5.7 million in low-interest Adj. 1. low-interest - (used of loans) charging a relatively small percentage of the amount borrowed high-interest - (used of loans) charging a relatively large percentage of the amount borrowed Industrial Development Agency financing. Total shares outstanding at December 31, 2001 were 33,106,631. Selected Recent Highlights During the fourth quarter of 2001, AMRI added six new customers, renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. or expanded an additional eight contracts, and added a net of ten scientists. For the year 2001, AMRI added 37 new customers and renewed or expanded an additional 35 contracts. During 2001, AMRI added a net of 73 scientists, plus an additional 69 scientists from the acquisitions of New Chemical Entities, Inc. in January 2001 and the Great Lakes Chemical facility in Mt. Prospect Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. in September September: see month. 2001. The total number of AMRI employees at the end of 2001 was 530, including 360 scientists. Other recent highlights include the following: - In January, AMRI acquired New Chemical Entities, Inc. (NCE), a chemistry-focused drug discovery company located near Seattle, Washington. In addition to providing a strong West Coast presence, the NCE acquisition brought AMRI proprietary natural products-based drug discovery libraries, along with complementary technologies in analytical and natural products chemistries, cheminformatics and computer-assisted drug design. - In September, AMRI purchased from Great Lakes Chemical Corporation laboratory facilities and operations in Mount Prospect, Illinois for $10 million in cash. AMRI hired from Great Lakes 49 employees--including 40 scientists--at this location. The site includes 55 fully equipped scientific workstations, a chemical pilot plant and research fermentation facilities. The purchase agreement includes a royalty-free research license allowing AMRI to use patent-protected technology developed at the site, as well as a $3 million research contract for chemistry services over a 15-month period. - Subsequent to completing the Mount Prospect purchase, AMRI announced plans to consolidate its Midwestern operations in 2002 by relocating its Biocatalysis Division from Iowa City to the Mount Prospect facility. - AMRI opened new facilities in both the Syracuse and Albany areas. In Cicero, New York, near Syracuse, AMRI opened a new 25,000 square foot, $7.0 million chemical development facility with 40 scientific workstations. In Albany, AMRI began operations at its new 30 Corporate Circle facilities. Phase one construction at the facility provided an additional 29 scientific workstations. The second phase of construction, when completed in April, will add another 38 scientific workstations. - AMRI continued to receive national recognition. AMRI placed seventh on Business Week magazine's list of the "Top 100 Hot Growth Companies" for 2001, marking the second consecutive year that AMRI has been among the top ten companies on the list. - AMRI also placed twelfth on the Forbes magazine list of the "200 Best Small Companies," marking the second consecutive year that AMRI has appeared in the top ten percent of companies on that list. - Additionally, AMRI placed 406th on the 2001 Deloitte & Touche "Technology Fast 500" listing, which recognizes the fastest-growing technology companies in the United States and Canada. - AMRI was awarded two Small Business Innovation Research (SBIR) grants from the National Institute on Drug Abuse (NIDA). Both grant awards fund work using combinatorial biocatalysis technology focused on the development of novel compounds to treat cocaine and other stimulant abuse. - AMRI announced a drug discovery collaboration with Cubist Pharmaceuticals, Inc. in the anti-infective therapeutic area. Under the terms of the agreement, AMRI could have the opportunity to receive success fees from Cubist for the achievement of specific clinical and regulatory milestones, as well as royalties on net sales of any commercial products that may result from the collaboration. Selected Full-Year 2001 Highlights Highlights for the full-year 2001 include the following: - In January, AMRI acquired New Chemical Entities, Inc. (NCE), a chemistry-focused drug discovery company located near Seattle, Washington. In addition to providing a strong West Coast presence, the NCE acquisition brought AMRI proprietary natural products-based drug discovery libraries, along with complementary technologies in analytical and natural products chemistries, cheminformatics and computer-assisted drug design. - In September, AMRI purchased from Great Lakes Chemical Corporation laboratory facilities and operations in Mount Prospect, Illinois for $10 million in cash. AMRI hired from Great Lakes 49 employees--including 40 scientists--at this location. The site includes 55 fully equipped scientific workstations, a chemical pilot plant and research fermentation facilities. The purchase agreement includes a royalty-free research license allowing AMRI to use patent-protected technology developed at the site, as well as a $3 million research contract for chemistry services over a 15-month period. - Subsequent to completing the Mount Prospect purchase, AMRI announced plans to consolidate its Midwestern operations in 2002 by relocating its Biocatalysis Division from Iowa City to the Mount Prospect facility. - AMRI opened new facilities in both the Syracuse and Albany areas. In Cicero, New York, near Syracuse, AMRI opened a new 25,000 square foot, $7.0 million chemical development facility with 40 scientific workstations. In Albany, AMRI began operations at its new 30 Corporate Circle facilities. Phase one construction at the facility provided an additional 29 scientific workstations. The second phase of construction, when completed in April, will add another 38 scientific workstations. - AMRI continued to receive national recognition. AMRI placed seventh on Business Week magazine's list of the "Top 100 Hot Growth Companies" for 2001, marking the second consecutive year that AMRI has been among the top ten companies on the list. - AMRI also placed twelfth on the Forbes magazine list of the "200 Best Small Companies," marking the second consecutive year that AMRI has appeared in the top ten percent of companies on that list. - Additionally, AMRI placed 406th on the 2001 Deloitte & Touche "Technology Fast 500" listing, which recognizes the fastest-growing technology companies in the United States and Canada. - AMRI was awarded two Small Business Innovation Research (SBIR) grants from the National Institute on Drug Abuse (NIDA). Both grant awards fund work using combinatorial biocatalysis technology focused on the development of novel compounds to treat cocaine and other stimulant abuse. - AMRI announced a drug discovery collaboration with Cubist Pharmaceuticals, Inc. in the anti-infective therapeutic area. Under the terms of the agreement, AMRI could have the opportunity to receive success fees from Cubist for the achievement of specific clinical and regulatory milestones, as well as royalties on net sales of any commercial products that may result from the collaboration. Conference Call The company will hold a conference call at 9:00 a.m. Eastern Time on February 19, 2002 to discuss its quarterly and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. financial results and business highlights, as well as its prospects for 2002. Individuals interested in listening to the conference call should dial 800-288-8976 (for domestic calls) or 612-332-1020 (for international calls) and reference the AMRI Fourth Quarter 2001 Earnings Release conference call. Replays of the call will be available for seven days following the call beginning at 2:15 p.m. on February 19, 2002. 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 # 626712. Albany Molecular Research, Inc. is a leading chemistry research, drug discovery and development company focusing on applications for the life sciences industries. The company performs comprehensive chemistry research for many of the leading 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. and for its own internal research and development. 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 each quarter of 2002 and earnings guidance for the full year 2002, statements regarding the company's ability to acquire and develop value-added discovery technologies, statements regarding the company's prospects for 2002 and beyond, statements regarding the development of new technology, statements regarding the company's ability to enter into new contracts, statements regarding the company's ability to achieve success fees, statements regarding the expected performance of Organichem Corporation and statements regarding the expansion of the company's facilities. These statements may be identified by forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. 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 (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 (including any deviations in estimates provided by Aventis) and the company's receipt of significant royalties from the Allegra 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 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, 2000 as filed with the Securities and Exchange Commission on April 2, 2001 and in the company's other SEC filings. This press release includes references to EBIT, which is a non-GAAP measure commonly used by investors and analysts to analyze an·a·lyze v. 1. To examine methodically by separating into parts and studying their interrelations. 2. To separate a chemical substance into its constituent elements to determine their nature or proportions. 3. companies on the basis of operating performance, leverage and liquidity. EBIT should not be construed as an alternative to net income as an indicator of the company's operating performance or as an alternative to cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses as a measure of the company's liquidity because it excludes items that are not directly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the ongoing business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets and is subjective subjective /sub·jec·tive/ (sub-jek´tiv) pertaining to or perceived only by the affected individual; not perceptible to the senses of another person. sub·jec·tive adj. 1. in nature as it relies upon management's judgment to determine which items are directly attributable to ongoing business operations of the company. Earnings guidance offered by senior management today represents a point-in-time estimate made early in the year 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 Ended Twelve Months Ended
------------------------- -------------------------
December 31, December 31, December 31, December 31,
2001 2000 2001 2000
------------------------- -------------------------
Net contract
revenue $16,160 $10,820 $56,812 $37,377
Recurring royalties 12,349 8,333 41,675 29,226
------------------------ -------------------------
Total revenue 28,509 19,153 98,487 66,603
Cost of contract
revenue 8,935 6,012 31,424 20,859
Technology incentive
award 1,235 832 4,165 2,921
Research and
development 1,262 935 4,290 2,435
Selling, general and
administrative 3,722 2,272 12,194 7,966
------------------------ -------------------------
Total costs
and expenses 15,154 10,051 52,073 34,181
----------------------- -------------------------
Income from
operations 13,355 9,102 46,414 32,422
Equity in (loss)
income of (112) 174 1,130 552
unconsolidated
affiliates
Other income, net 1,160 2,661 6,557 4,708
----------------------- -------------------------
Income before income
tax expense 14,403 11,937 54,101 37,682
Income tax expense 5,102 4,450 19,707 14,089
----------------------- -------------------------
Net income $9,301 $7,487 $34,394 $23,593
======================= =========================
Basic earnings
per share $0.28 $0.23 $1.04 $0.78
====================== ===========================
Diluted earnings
per share $0.27 $0.22 $1.01 $0.74
====================== ===========================
Albany Molecular Research, Inc.
Selected Consolidated Balance Sheet Data
(Unaudited)
In thousands
December 31, December 31,
2001 2000
Cash, cash equivalents
and investments $135,866 $ 152,024
Accounts receivable, net 9,965 7,952
Royalty receivable 12,361 7,827
Total current assets 167,595 171,162
Net property, plant and equipment 59,756 30,914
Total assets 285,986 238,566
Current liabilities 16,415 9,913
Long term debt 5,937 120
Stockholders' equity 263,633 228,533
Total liabilities and
stockholders' equity 285,986 238,566
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