Allergan Reports First Quarter Operating Results; Earnings Per Share Up 32.4 Percent, Excluding One-Time Items.Business Editors & Health/Medical Writers IRVINE, Calif.--(BW HealthWire)--April 22, 2002 Allergan, Inc. (NYSE NYSE See: New York Stock Exchange :AGN AGN Again (Amateur Radio) AGN Active Galactic Nucleus AGN Acute Glomerulonephritis AGN Accountants Global Network AGN Air Gabon (ICAO code) ) today announced operating results for the quarter ended March 29, 2002. Allergan & Advanced Medical Optics Advanced Medical Optics, Inc., (NYSE: EYE) (known as AMO) is a global medical device leader focused on the discovery and delivery of innovative vision technologies that optimize the quality of life for people of all ages. Consolidated Allergan reported worldwide 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 $432.2 million for the quarter ended March 29, 2002. Worldwide net sales increased 9.1 percent, or 12.7 percent at constant currency excluding divested products, over the first quarter of 2001. Excluding the effects of certain non-recurring items totaling $0.15 per share described in detail later in this document, and the unrealized non-cash loss on derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. of $0.01 per share, Allergan's 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 of 2002 were $0.49, an increase of 32.4 percent over the first quarter 2001 comparable earnings per share of $0.37. The 2001 earnings per share amount includes amortization of goodwill amounting to $0.02 per share, which is not included in 2002 as a result of the adoption of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 142. Including the effects of the above-referenced non-recurring items and the unrealized non-cash loss on foreign currency derivative instruments, Allergan reported diluted earnings per share of $0.33 for the first quarter of 2002. "We are extremely pleased with the Company's results and performance in the first quarter. As we said in January when we announced the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of Advanced Medical Optics, we are making these strategic changes from a position of strength. Allergan is poised to deliver mid-to-high teens sales growth and 22-25 percent earnings per share growth in its specialty pharmaceuticals businesses for 2002 as a result of significant 2001 R&D approvals and the recent U.S. 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. approval of Botox(R) Cosmetic," said Allergan 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. , David E.I. Pyott. Allergan Specialty Pharmaceutical Performance At constant currency and excluding divested products, worldwide first quarter sales increased 18.7 percent over last year for Allergan's specialty pharmaceutical businesses, including the eye care pharmaceutical, Botox(R)/neurotoxin and skin care product lines. Net specialty pharmaceutical sales were $318.2 million for the quarter ended March 29, 2002. At the end of the fourth quarter of 2001, Allergan divested some older local products in its Brazilian subsidiary. Sales for these divested products totaled $3.1 million in the first quarter of 2001 and $17.1 million for the full year 2001. The proceeds from the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). were reported as a one-time item in the fourth quarter of 2001. Excluding the effects of certain non-recurring items totaling $0.14 per share described in detail later in this document, and the unrealized non-cash loss on foreign currency derivative instruments of $0.01 per share, carve-out diluted earnings per share for Allergan's specialty pharmaceutical businesses amounted to $0.44 for the quarter ended March 29, 2002. This represented an increase of 18.9 percent over the comparable carve-out diluted earnings per share of $0.37 for the first quarter of 2001. The unaudited estimate of the quarterly pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma adjustments to the reported carve-out numbers in both 2001 and 2002 resulting from disynergies associated with the future spin-off of AMO AMO - America's Multimedia Online would be approximately $0.02 per share. Eye Care Pharmaceutical Product Line At constant currency rates and excluding divested products, first quarter 2002 worldwide eye care pharmaceutical sales increased 13.2 percent over the first quarter of 2001. Including the effects of currency and excluding divested products, first quarter worldwide eye care pharmaceutical sales amounted to $207.6 million, an 11.3 percent increase over last year's $186.6 million. Worldwide net product sales for the Alphagan(R) ophthalmic solutions ophthalmic solution n. A sterile solution that is free from foreign particles and is compounded and dispensed for eyedrops. product line, which includes both Alphagan(R) (Brimonidine Tartrate tartrate /tar·trate/ (tahr´trat) a salt of tartaric acid. tar·trate n. A salt or ester of tartaric acid. tartrate a salt of tartaric acid. Ophthalmic Solution 0.2%) and Alphagan(R) P (Brimonidine Tartrate Ophthalmic Solution 0.15%), preserved with Purite(R), indicated for lowering intraocular pressure intraocular pressure n. The pressure of the intraocular fluid within the eye. intraocular pressure (in´tr (IOP IOP intraocular pressure. IOP Intraocular pressure, see there ) in patients with ocular hypertension Ocular hypertension (OHT) is intraocular pressure higher than normal in the absence of optic nerve damage or visual field loss.[1][2] Current consensus in ophthalmology defines normal introcular pressure (IOP) as that between 10 mmHg and 21 mmHg. and primary open angle 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). , were $74.8 million in the first quarter of 2002, an increase of 12.5 percent, or 13.7 percent at constant currency over the same period last year. Worldwide net product sales of Lumigan(R) (Bimatoprost Ophthalmic Solution 0.03%), indicated for the reduction of elevated intraocular pressure (IOP) in patients with open-angle glaucoma o·pen-an·gle glaucoma n. Primary glaucoma in which the aqueous humor has free access to the trabecular reticulum. Also called simple glaucoma. or ocular hypertension who are intolerant in·tol·er·ant adj. Not tolerant, especially: a. Unwilling to tolerate differences in opinions, practices, or beliefs, especially religious beliefs. b. of other IOP-lowering medications or insufficiently responsive to another IOP-lowering medication, were $21.1 million for the quarter ended March 29, 2002. In March, Allergan was granted marketing authorization for Lumigan(R) by the European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community for the reduction of elevated intraocular pressure in patients with chronic open-angle glaucoma or ocular hypertension as monotherapy monotherapy /mono·ther·a·py/ (-ther´ah-pe) treatment of a condition by means of a single drug. mon·o·ther·a·py n. Treatment of a disorder with a single drug. in patients who are insufficiently responsive, intolerant, or contra-indicated to first-line therapy, and as an adjunctive therapy adjunctive therapy Medtalk A therapeutic maneuver(s) with an ancillary role in treating a disease by ↓ M&M, but not part of the immediate therapy required to stabilize the Pt. Cf Adjuvant therapy. to beta-blockers. Allergan has already launched Lumigan(R) in Germany, the United Kingdom and Italy. Lumigan(R) represents the first drug approved by the centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. procedure in Europe for Allergan. At constant currency, Allergan's sales of glaucoma products, comprising Alphagan(R), Alphagan(R) P, Lumigan(R) and Betagan(R), increased by 30.7 percent in the first quarter over last year's first quarter. During the quarter, Allergan entered into an agreement with EntreMed to co-develop its compound, Panzem(TM) (2-methoxyestradiol (2ME2)), for the treatment of age-related macular degeneration Age-related macular degeneration (ARMD) Degeneration of the macula (the central part of the retina where the rods and cones are most dense) that leads to loss of central vision in people over 60. (ARMD Age-related macular degeneration (ARMD) Degeneration of the macula (the central part of the retina where the rods and cones are most dense) that leads to loss of central vision in people over 60. ), a leading cause of blindness resulting from fluid leakage LEAKAGE. The waste which has taken place in liquids, by their escaping out of the casks or vessels in which they were kept. By the act of March 2, 1799, s. 59, 1 Story's L. U. S, 625, it is provided that there be an allowance of two per cent for leakage, on the quantity which shall appear from ruptured rup·ture n. 1. a. The process or instance of breaking open or bursting. b. The state of being broken open. 2. A break in friendly relations. 3. Pathology a. new blood vessels Blood vessels Tubular channels for blood transport, of which there are three principal types: arteries, capillaries, and veins. Only the larger arteries and veins in the body bear distinct names. that form under the retina. Botox(R)/Neurotoxin Product Line At constant currency rates, Botox(R) (Botulinum Toxin Type A botulinum toxin type A Botox, Botox Cosmetic, Dysport (UK), Vistabel (UK) Pharmacologic class: Neurotoxin Therapeutic class: Neuromuscular blocker Pregnancy risk category C Action) net sales for the first quarter of 2002 increased by 33.4 percent over the first quarter of 2001. Including the effects of currency, sales for Botox(R) were $88.6 million during the first quarter of 2002, a 31.1 percent increase over 2001's first quarter sales of $67.6 million. Allergan benefited from significant press coverage around the Botox(R) Cosmetic indication during the quarter.After the close of the quarter, Botox(R) Cosmetic received approval from the U.S. Food and Drug Administration (FDA) for the temporary improvement in appearance of moderate to severe glabellar lines in adult men and women 65 or younger. The approval specifically applies to the vertical lines between the eyebrows. During the quarter, Botox(R) Cosmetic also received approval in Australia for brow furrow furrow /fur·row/ (fur´o) a groove or sulcus. atrioventricular furrow the transverse groove marking off the atria of the heart from the ventricles. . Skin Care Product Line Sales for Allergan skin care products were $21.8 million for the quarter ended March 29, 2002, an increase of 21.1 percent from the $18.0 million in sales reported in the first quarter of last year. Worldwide net sales for Tazorac(R) and Zorac(R) brands (Tazarotene Gel and Cream 0.05% and 0.1%), indicated for the treatment of acne acne, common inflammatory disease of the hair follicles and sebaceous glands characterized by blackheads, whiteheads, pustules, nodules and, in the more severe forms, by cysts and scarring. The lesions appear on the face, neck, back, chest, and arms. and psoriasis psoriasis (sôrī`əsĭs), occasionally acute but usually chronic and recurrent inflammation of the skin. The exact cause is unknown, but the disease appears to be an inherited, possibly autoimmune disorder that causes the , were $12.2 million in the first quarter of 2002, a 45.2 percent increase, or a 45.6 percent increase at constant currency over the same period last year. For the quarter, Tazorac(R) new prescriptions and total prescriptions in 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. have grown 44.5 percent and 48.6 percent, respectively, over the same period last year, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Scott-Levin data. Outlook for Allergan's Specialty Pharmaceutical Business For the second quarter of 2002, the Company estimates specialty pharmaceutical-only sales in the range of $315 million to $335 million. Consistent with prior guidance, the Company estimates pharmaceutical-only earnings per share on a carve-out basis excluding one-time items of $0.44 for the second quarter of 2002. As a result of exceeding the first quarter earnings per share consensus estimate, the Company is comfortable with increasing full-year 2002 pharmaceutical-only consensus by one cent to $1.88 per share, based on a six-month carve-out and six-month pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. projection excluding one-time items. Additionally, on a full-year pro forma basis diluted earnings per share, excluding one-time items, are expected to be $1.83 per share. The carve-out earnings per share estimates assume that the two businesses, Allergan specialty pharmaceuticals and AMO, are split apart, but not operated as separate stand-alone businesses. The pro forma earnings per share estimates reflect the approximate impact of additional expenses that would be incurred when operating these two businesses as stand-alone companies stand-alone company An independent operating firm. For example, a large diversified firm may consider spinning off a subsidiary because, as a stand-alone company, the subsidiary would command a higher price-earnings ratio than the parent. . Advanced Medical Optics (AMO) Performance In January 2002, Allergan announced a spin-off of its optical medical device business, which is comprised of the ophthalmic ophthalmic /oph·thal·mic/ (of-thal´mik) ocular (1). oph·thal·mic adj. Of or relating to the eye; ocular. Ophthalmic Pertaining to the eye. surgical and the contact lens contact lens, thin plastic lens worn between the eye and eyelid that may be used instead of eyeglasses. Actors, models, and others wear them for appearance, and athletes use them for safety and convenience. care product lines. The new entity, to be called Advanced Medical Optics, Inc. (AMO), will be established as an independent, publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. through a tax-free spin-off to Allergan stockholders. The spin-off is expected to occur at mid-year 2002. For the quarter ended March 29, 2002, AMO worldwide net sales were $114.0 million, which is a 5.6 percent decrease, or a 0.9 percent decrease at constant currency, over the prior-year first quarter. Excluding the effects of a $0.01 per share charge related to duplicate 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. associated with the spin-off of AMO and assuming the Allergan consolidated tax rate of 29 percent and consolidated fully 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. shares of 131.9 million, carve-out AMO diluted earnings per share for the first quarter of 2002 were $0.05 per share, compared with $0.00 per share in the prior comparable period. The 2001 earnings per share amount includes amortization of goodwill amounting to approximately $0.02 per share, which is not included in 2002 as a result of the adoption of SFAS No. 142. The unaudited quarterly pro forma estimated adjustments to the reported carve-out numbers in both 2001 and 2002 would have a $0.07 per share reduction due to disynergies, anticipated interest payments on debt, and contract manufacturing costs. Ophthalmic Surgical Product Line At constant currency rates, ophthalmic surgical sales increased 5.3 percent compared to the first quarter of 2001. Including the effects of currency, sales for the ophthalmic surgical business were $57.4 million during the first quarter of 2002, up 1.2 percent over $56.7 million reported for last year's first quarter. Contact Lens Care Product Line At constant currency rates, contact lens care sales decreased 6.2 percent compared to the first quarter of 2001. Including the effects of currency, sales for the contact lens care business were $56.6 million for the first quarter of 2002, a decrease of 11.7 percent from 2001 first quarter sales of $64.1 million. Worldwide net product sales of branded Complete(R), indicated for soft-contact lens care, were $25.0 million in the first quarter of 2002, an increase of 9.6 percent at constant currency rates over the same period last year. Overall, however, sales for the branded and private-label Complete(R) multi-purpose solutions were $26.6 million in the first quarter of 2002, a 15.8 percent decrease or, as measured in constant currency, an 11.5 percent decrease over the same period last year. This decrease was the result of a move by the Company to reduce its exposure to low-margin private-label business and increase focus on branded Complete(R) in the U.S. Outlook for Advanced Medical Optics, Inc. For the full year, the Company estimates AMO will produce $515 million to $535 million in revenue and deliver $0.14 per share on a full-year pro forma basis, without factoring in AMO's anticipated reverse stock split. The pro forma adjustments are consistent with the AMO Form 10 filed with the Securities and Exchange Commission (SEC) on March 1, 2002. In addition, AMO anticipates earnings per share growth to be in the mid-teens over the next couple of years. Allergan & AMO Consolidated Additional Financial Highlights Gross profit for the first quarter of 2002 was $343.0 million, or 79.4 percent of net sales, which represents a 4.5 percentage point increase from the first quarter of 2001. The gross profit percentage increased in the first quarter of 2002 compared to the first quarter of 2001 primarily as a result of shifts in the mix of products sold to higher margin pharmaceutical products, as well as an increase in the gross margin of every product line. Excluding the effects of one-time items, SG&A expenses increased $4.3 million in the first quarter over the same period last year to $193.0 million. SG&A excluding one-time items as a ratio to net sales was 44.7 percent for the first quarter of 2002, which compares with 47.6 percent for the first quarter of 2001. Excluding the effects of one-time items, research and development expenses were $57.0 million and as a ratio to net sales were 13.2 percent for the first quarter of 2002. At March 29, 2002, Allergan's consolidated net worth was $847.7 million. The Company held $679.7 million in cash and cash equivalents at March 29, 2002. Allergan's debt-to-capital percentage was 44.8 percent at March 29, 2002. The Company's days-sales-outstanding was 60 and inventory days-on-hand level was 131, which reflects planned increases in strategic pharmaceutical raw material inventories during the first quarter. Description of Non-Recurring Items During the first quarter of 2002, diluted earnings per share included $0.15 of non-recurring items consisting of: a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $0.07 per share and duplicate operating expenses of $0.05 per share associated with the spin-off of AMO; a $0.04 loss associated with the permanent impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of Allergan's equity investment in ISTA ISTA International Safe Transit Association ISTA Indiana State Teachers Association ISTA International Seed Testing Association ISTA International Sail Training Association ISTA Information, Science, and Technology Agency (British Columbia) Pharmaceuticals, Inc.; and a $0.02 charge associated with research and development milestone payments. This was somewhat offset by a $0.03 per share benefit resulting from the settlement of a collaboration relationship. In the first quarter of 2002, Allergan incurred a $0.01 per share non-cash unrealized loss Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on foreign exchange derivatives. In the first quarter of 2001, diluted earnings per share included an unrealized non-cash gain on foreign currency derivative instruments of $0.02 per share. 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. In this press release, the statements regarding the outlook for Allergan's and AMO's related earnings per share and revenue forecasts, statements from Mr. Pyott and statements regarding the proposed spin-off of AMO, among other statements above, are forward-looking statements. Because forecasts are inherently estimates that cannot be made with precision, the Company's performance at times differs from its estimates and targets, and the Company often does not know what the actual results will be until after a quarter's end. Therefore, the Company will not report or comment on its progress during the quarter. Any statement made by others with respect to progress mid-quarter cannot be attributed to the Company. Any other statements in this press release that refer to Allergan's and AMO's estimated or anticipated future results are forward-looking statements. All forward-looking statements in this press release reflect Allergan's and AMO's current analysis of existing trends and information and represent Allergan's and AMO's judgment only as of the date of this press release. Actual results may differ from current expectations based on a number of factors affecting Allergan's and AMO's businesses, including changing competitive, regulatory and market conditions; the timing and uncertainty of the results of both the research and development and regulatory processes; domestic and foreign health care and cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. reforms; technological advances and patents obtained by competitors; the performance, including the approval, introduction and consumer acceptance of new products and the continuing acceptance of currently marketed products; the effectiveness of advertising and promotional campaigns; the timely and successful implementation of strategic initiatives; the uncertainty associated with the identification of and successful consummation and execution of external corporate development and strategic partnering transactions; Allergan's and AMO's ability to obtain and maintain a sufficient supply of products to meet market demand in a timely and successful manner; the uncertainties associated with effecting a spin off of a separate public company; and the discretion of Allergan's board of directors to delay or cancel the spin-off of AMO prior to its consummation. In addition, matters generally affecting the economy, such as changes in interest and currency exchange rates and the state of the economy worldwide, can affect Allergan's and AMO's results. Therefore, the reader is cautioned not to rely on these forward-looking statements. Allergan and AMO disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any intent or obligation to update these forward-looking statements. Additional information concerning these and other risk factors can be found in press releases issued by Allergan as well as Allergan's public periodic filings with the Securities and Exchange Commission, including the discussion under the heading "Certain Factors and Trends Affecting Allergan and its Businesses" in Allergan's 2001 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. , and the discussion under the heading "Risk Factors"in the Preliminary Information Statement filed as an exhibit to the amended Form 10 filed by AMO with the Securities and Exchange Commission on April 18, 2002. Copies of Allergan press releases and additional information about Allergan is available on the World Wide Web at, www.allergan.com or you can contact the Allergan Investor Relations Investor relations The process by which the corporation communicates with its investors. Department by calling 714/246-4636. Allergan, Inc. Allergan, Inc., headquartered in Irvine, California Irvine is an incorporated city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28 1971, the 69.7 square mile (180.5 km²) city has a population of 202,079 (as of 2007). , is a technology-driven, global health care company providing eye care and specialty pharmaceutical products worldwide. Allergan develops and commercializes products in the eye care pharmaceutical, ophthalmic surgical device, over-the-counter contact lens care, movement disorder List of Movement disorders
pertaining to dermatology; of or affecting the skin. markets that deliver value to our customers, satisfy unmet medical needs and improve patients' lives.
ALLERGAN, INC.
Condensed Consolidated Statements of Earnings
(Unaudited)
Three months
in millions, except per share amounts Ended
March 29, March 30,
2002 2001
Product sales
Net sales $ 432.2 $ 396.1
Cost of sales 89.2 99.3
Product gross margin 343.0 296.8
Research services
Research service revenues, (primarily
from related parties in 2001) 9.5 26.9
Cost of research services 8.6 25.6
Research services margin 0.9 1.3
Selling, general and administrative 202.0 189.2
Research and development 61.0 45.7
Technology fees from related party -- (0.5)
Restructuring charge 13.2 --
Operating income 67.7 63.7
Interest income 3.6 11.0
Interest expense (5.0) (5.3)
Unrealized gain/(loss) on derivative
instruments (0.8) 6.0
Loss on equity investments (8.0) --
Other, net 4.2 0.6
(6.0) 12.3
Earnings before income taxes and
minority interest 61.7 76.0
Provision for income taxes 17.9 22.0
Minority interest expense -- 0.1
Earnings before cumulative effect of
change in accounting principle 43.8 53.9
Cumulative effect of change in
accounting principle, net of $0.7
million of tax in 2001 -- 1.8
Net earnings $ 43.8 $ 52.1 (a)
Basic earnings per share:
Before cumulative effect of change
in accounting principle $ 0.34 $ 0.41
Cumulative effect of accounting
change, net -- (0.01)
Net basic earnings per share $ 0.34 $ 0.40 (a)
Diluted earnings per share:
Before cumulative effect of change
in accounting principle $ 0.33 $ 0.40
Cumulative effect of accounting
change, net -- (0.01)
Net diluted earnings per share $ 0.33 $ 0.39 (a)
Weighted average number of common shares
outstanding:
Basic 130.3 131.9
Diluted 131.9 134.1
(a) Includes amortization of goodwill amounting to $3.0 million, or
$0.02 per share in 2001 which is not included in 2002 due to the
adoption of SFAS No. 142.
ALLERGAN, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
in millions March 29, December 31,
2002 2001
Assets
Cash and equivalents $ 679.7 $ 781.9
Trade receivables, net 286.3 279.4
Inventories 127.8 120.2
Other current assets 126.4 143.8
Total current assets 1,220.2 1,325.3
Property, plant and equipment, net 378.8 388.7
Other noncurrent assets 387.3 332.2
Total assets $1,986.3 $2,046.2
Liabilities and stockholders' equity
Notes payable $ 93.7 $ 94.1
Accounts payable 91.8 104.3
Accrued expenses and income taxes 283.8 291.6
Total current liabilities 469.3 490.0
Long-term debt 593.4 520.6
Other liabilities 75.9 58.2
Stockholders' equity 847.7 977.4
Total liabilities and stockholders'
equity $1,986.3 $2,046.2
ALLERGAN, INC.
Net Sales by Product Line
(Unaudited)
Three Months
in millions Ended
March 29, March 30,
2002 2001
Specialty Pharmaceuticals:
Eye Care Pharmaceuticals $ 207.8 $ 189.7
Skin Care 21.8 18.0
Botox(R)/Neuromuscular 88.6 67.6
Total 318.2 275.3
Optical Medical Devices:
Ophthalmic Surgical 57.4 56.7
Contact Lens Care 56.6 64.1
Total 114.0 120.8
TOTAL NET SALES $ 432.2 $ 396.1
Domestic 62% 58%
International 38% 42%
ALLERGAN, INC.
Reconciliation of Non-Recurring Items
(Unaudited)
in millions, except per share amounts Three Months Ended
March 29, March 30,
2002 2001
Net earnings, as reported $ 43.8 $ 52.1 (a)
Pre-tax adjustments for one-time/
special items:
Unrealized (gain)/loss on derivative
instruments 0.8 (3.5)
Partnering deals (1.0) --
Restructuring charge 13.2 --
Duplicate operating expenses 9.0 --
Loss on equity investment 8.0 --
73.8 48.6
Tax effect for one-time/special items (8.7) 1.0
Net earnings, adjusted $ 65.1 $ 49.6 (a)
Diluted earnings per share, as reported $ 0.33 $ 0.39 (a)
Non-recurring adjustments:
Unrealized (gain)/loss on derivative
instruments 0.01 (0.02)
Partnering deals (0.01) --
Restructuring charge 0.07 --
Duplicate operating expenses 0.05 --
Loss on equity investment 0.04 --
Adjusted earnings per share $ 0.49 $ 0.37 (a)
Adjusted year over year change 32%
(a) Includes amortization of goodwill amounting to $3.0 million, or
$0.02 per share in 2001 which is not included in 2002 due to the
adoption of SFAS No. 142.
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