Alpharma reports 25 percent increase in earnings per share from operations for six months.FORT LEE, N.J.--(BUSINESS WIRE)--July 30, 1996--Alpharma Inc. (NYSE NYSE See: New York Stock Exchange :ALO) today reported that earnings per share from operations, on a 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. basis for the six months ended June 30, 1996 increased 25% to $.40 compared to $.32 for 1995. Earnings per share from operations on a fully diluted basis for the quarter ended June 30, 1996 were $.14, equal to 1995. Earnings per share from operations do not include charges and expenses incurred in the six months and second quarter of 1996 related to major production rationalization rationalization, in psychology: see defense mechanism. initiatives within the International Pharmaceuticals and U.S. Pharmaceuticals Divisions (six months and second quarter) and the reorganization of sales and marketing within International Pharmaceuticals (six months only). These charges and expenses, which are not considered by the Company as part of operating results, were $.39 per share (approximately $14.0 million pre-tax/$8.7 million after-tax) for six months and $.34 per share (approximately $12.1 million pre- pre- word element [L.], before (in time or space). pre- pref. 1. Earlier; before; prior to: prenatal. 2. tax/$7.5 million after-tax) for the second quarter. Including these charges and expenses, earnings per share for six months were $.01 in 1996 compared to $.32 in 1995 and a loss of ($.20) for the second quarter of 1996 compared to a profit of $.14 in 1995. As previously disclosed, the Company estimates that the total charges and expenses of these actions could be as much as $.45 per share (approximately $16.0 million pre-tax/$10.0 million after-tax). In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with required accounting, the remainder of these expenses of up to $.06 per share (approximately $2.0 million pre-tax/$1.3 million after-tax) if required, will be expensed over the third and fourth quarters of 1996. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the six months and quarter ended June 30, 1996, excluding the charges and expenses related to production rationalization and reorganization of sales and marketing, was up on an overall basis in the Company's Pharmaceutical business and down in the Animal Health business. Commenting on the release, Einar W. Sissener, Chief Executive Officer of Alpharma Inc. said, "The 25 percent improvement in earnings per share excluding the charges and expenses related to manufacturing rationalization and reorganization for the first six months of this year is particularly satisfying considering the difficult conditions in the animal health and generic pharmaceutical markets 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. . "Our Animal Health results were impacted by a steep rise in grain (corn and wheat) prices in the U.S. Grain prices reached all time highs during the second quarter resulting in more intense price competition and a reduction in the use of feed additives in general, including some of our important feed additive additive In foods, any of various chemical substances added to produce desirable effects. Additives include such substances as artificial or natural colourings and flavourings; stabilizers, emulsifiers, and thickeners; preservatives and humectants (moisture-retainers); and products, primarily in the poultry poultry, domesticated fowl kept primarily for meat and eggs; including birds of the order Galliformes, e.g., the chicken, turkey, guinea fowl, pheasant, quail, and peacock; and natatorial (swimming) birds, e.g., the duck and goose. market. While we do not believe grain prices will remain at these high levels permanently, they had a significant negative impact on our Animal Health Division revenues and operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for both the six months and the second quarter. "Our Pharmaceutical business improved on an overall basis both in revenue and operating income, especially in our International Pharmaceuticals Division. However, revenue and operating income were lower than expected in our U.S. Pharmaceuticals Division due to competitive pricing conditions and trade inventory reductions. "Alpharma historically has achieved a higher percentage of its full year earnings in the second half of the year. We expect this pattern to continue in 1996 although market conditions in the generic pharmaceutical industry remain competitive and the impacts of high grain prices will continue at least through the third quarter. Our expectations for the second half are based on many considerations but include the fact that our U.S. Pharmaceuticals and Aquatic Animal Health Divisions are entering their seasonally stronger periods. Additionally, we believe that important contributions can come from sales of new products which were approved in the second half of last year, as well as from Minoxidil Minoxidil Definition Minoxidil is a drug available in two forms to treat different conditions. Oral minoxidil is used to treat high blood pressure and the topical solution form is used to treat hair loss and baldness. , which was launched in the second quarter, and from Albuterol albuterol /al·bu·ter·ol/ (al-bu´ter-ol) a ß agonist used as the base or sulfate salt as a bronchodilator. al·bu·ter·ol n. MDI (1) (Multiple Document Interface) A Windows function that allows an application to display and lets the user work with more than one document at the same time. , which we now hope to receive 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 for in the third quarter." Alpharma has approximately 2800 employees worldwide and is a multinational pharmaceutical company developing, manufacturing and marketing specialty generic and proprietary human pharmaceutical and animal health products. Alpharma is the largest manufacturer of generic liquid and topical topical /top·i·cal/ (top´i-k'l) pertaining to a particular area, as a topical antiinfective applied to a certain area of the skin and affecting only the area to which it is applied. top·i·cal adj. pharmaceuticals in the U.S., has an established and growing market position in finished pharmaceuticals in Europe and the Far East, is a basic manufacturer of important specialty antibiotics Antibiotics Definition Antibiotics may be informally defined as the subgroup of anti-infectives that are derived from bacterial sources and are used to treat bacterial infections. , and is recognized worldwide as a leading provider of animal health feed additives for poultry and livestock livestock Farm animals, with the exception of poultry. In Western countries the category encompasses primarily cattle, sheep, pigs, goats, horses, donkeys, and mules; other animals (e.g., buffalo, oxen, or camels) may predominate in other areas. , and vaccines for farmed fish. This press release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve certain risks and uncertainties that could cause actual results to differ from those in the forward looking statements. Information on other significant factors that could potentially affect the Company's financial results may be found in the Company's filings with the Securities and Exchange Commission including its 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, 1995 and subsequent Form 10-Q Form 10-Q See 10-Q. and Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filings. -0-
ALPHARMA INC.
Consolidated Statement of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1996(a) 1995 1996(b) 1995
Total revenue $121,219 $123,817 $249,029 $249,897 Cost of sales 71,462 71,393 144,753 144,804 Gross profit 49,757 52,424 104,276 105,093 Selling, general and administrative expenses 52,180 41,986 94,124 81,870 Operating income (loss) (2,423) 10,438 10,152 23,223 Interest expense (4,964) (5,689) (10,010) (11,259) Other, net 128 221 304 (581) Income (loss) before provision for income taxes (7,259) 4,970 446 11,383 Provision for income taxes (2,757) 1,916 171 4,404 Net income (loss) $ (4,502) $ 3,054 $ 275 $ 6,979 Average common shares outstanding: Primary 22,045 21,746 22,232 21,721 Fully diluted 22,045 21,746 22,232 21,721 Earnings (loss) per common share: Primary $ (.20) $ .14 $ .01 $ .32 Fully diluted $ (.20) $ .14 $ .01 $ .32 Dividends per common share $ .045 $ .045 $ .09 $ .09 (a) 1996 second quarter selling, general and administrative expenses include pre-tax charges and expenses of approximately $12,100 (after tax approximately $7,500 or ($.34) loss per share) related to the production rationalization plans for the International Pharmaceuticals Division and the U.S. Pharmaceuticals Division. (b) 1996 six months selling, general and administrative expenses include pre-tax charges and expenses of approximately $14,000 (after tax $8,700 or ($.39) loss per share) for severance for the International Pharmaceuticals Division selling and marketing reorganization in the first quarter of 1996 and the production rationalization plans for the International Pharmaceuticals Division and U.S. Pharmaceuticals Division in the second quarter of 1996. -0-
ALPHARMA INC.
Financial Position
(In thousands)
June 30, December 31,
1996 1995
(unaudited) (audited)
Current assets $264,244 $282,886 Non-current assets 339,834 351,967
Total assets $604,078 $634,853
Current liabilities $154,849 $169,283 Long-term debt 211,075 219,451 Deferred taxes and other liabilities 38,780 40,929 Stockholders' equity 199,374 205,190
Total liabilities and
stockholders' equity $604,078 $634,853
CONTACT: Company: Jeff Smith Executive VP ALPHARMA, Inc. (201) 947-7774 or Investor Contact: Donna Stein Stein , William Howard 1911-1980. American biochemist. He shared a 1972 Nobel Prize for pioneering studies of ribonuclease. Cindy Hintelmann Press Contact: Michelle Zawrotny Morgen-Walke Associates (212) 850-5600 |
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