American Medical Systems Reports $90.5 Million Dollars in Revenues, up 47 Percent vs Prior Year.Base Business Revenues up 17 Percent, Laserscope Revenues Reported at $18.5 Million Dollars MINNEAPOLIS -- American Medical Systems Holdings, 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 :AMMD AMMD Aerodynamic Mass Median Diameter ) reported revenues of $90.5 million for the third quarter of 2006, a 47 percent increase over revenues of $61.7 million in the comparable quarter of 2005. This includes $18.5 million of revenue from the Laserscope business. The Laserscope contribution for 2006 includes revenue beginning July 21. Excluding Laserscope revenues, AMS AMS - Andrew Message System revenue was $72.0 million, which represents 17 percent growth from the same quarter of 2005. The Company reported a loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the third quarter of 2006 of $57.9 million or $0.83 per share. Excluding costs and 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. associated with the Laserscope acquisition and stock-based compensation expense associated with 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 123(R), non-GAAP AMS base business adjusted net income from continuing operations was $12.7 million, or $0.18 per share, an increase of 20 percent from the third quarter of 2005. On a comparable basis, non-GAAP net income in the third quarter of 2005 was $10.6 million, or $0.15 per share. As previously announced, the Company expects to sell the aesthetics business during the current year, and has therefore reported it as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. . A reconciliation of the loss from continuing operations to non-GAAP AMS base business adjusted net income from continuing operations is presented below. [TABLE OMITTED] As the integration of Laserscope progresses, the Company will no longer report its base business separate from the newly acquired operations. However, the Company will continue to adjust for certain items such as in-process research and development charges and integration costs that affect comparability from period to period. On that basis, third quarter non-GAAP net income from continuing operations, excluding the charge for IPR&D and integration costs from Laserscope and stock-based compensation expense associated with the adoption of SFAS 123(R), was $5.2 million, or $0.07 per share. On a comparable basis, non-GAAP net income in the third quarter of 2005 was $10.6 million, or $0.15 per share. The decrease in earnings from continuing operations, as adjusted, is primarily due to finance and interest charges and amortization expense of $7.1 million after taxes, or $0.10 per share. A reconciliation of the loss from continuing operations to non-GAAP adjusted net income from continuing operations is presented below and in the attached financial tables. [TABLE OMITTED] Revenues for the first nine months of 2006 totaled $242.9 million, including $18.5 million revenue from the Laserscope business. The Laserscope contribution for 2006 includes revenue beginning July 21st. Excluding Laserscope revenue, AMS revenue for the first nine months of 2006 was $224.5 million, up 18 percent from the same period of 2005. Net loss from continuing operations as reported for the nine month period ending September 30, 2006 was $54.6 million, or $0.78 per share. Excluding integration costs and bridge financing Bridge Financing A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations. Notes: These funds are usually supplied by the investment bank underwriting the new issue. commitment fees associated with the Laserscope acquisition, in-process research and development costs from the acquisitions completed in 2005 and 2006, and stock-based compensation expense associated with the adoption of SFAS 123(R), non-GAAP net income from continuing operations was $34.9 million, or $0.48 per share. On a comparable basis, non-GAAP net income for the nine month period of 2005 was $33.9 million, or $0.47 per share. The decrease in earnings from continuing operations, as adjusted, is primarily due to finance and interest charges and amortization expense of $7.3 million or $0.10 per share. A reconciliation of the loss from continuing operations to non-GAAP adjusted net income from continuing operations is presented below and in the attached financial tables. [TABLE OMITTED] Martin J. Emerson, President and Chief Executive Officer, commented, "We are very pleased with the progress of the Laserscope integration activities during the third quarter, as well as the momentum of the key product lines that will be the growth drivers for AMS in the future. Although the third quarter Laserscope revenue contribution was somewhat lower than expected, our experience during the third quarter integration process has only strengthened our confidence in the opportunity for this acquisition to enhance AMS' long term revenue and earnings growth." Emerson continued, "The upcoming quarters will represent some of the most exciting periods in AMS' history as we complete the Laserscope integration and expand the global market reach of those product lines. Laserscope is our opportunity to become the global leader in providing the gold standard for treatment of obstructive obstructive having the characteristic of obstruction. obstructive colic see equine colic. obstructive constipation constipation of sufficient severity as to obstruct the rectum. BPH BPH abbr. benign prostatic hyperplasia BPH Benign prostatic hypertrophy, a very common noncancerous cause of prostatic enlargement in older men. . AMS also is ready to further its leadership position across the field of pelvic health. Significantly, we have already begun enrollment in our Ovion clinical trial and, as well, we are launching two exciting products this quarter; the 700 MS penile prosthesis penile prosthesis An FDA Class 3 medical device composed of silicone polymers designed to allow penile erection. See Erection. Penile prosthesis types Semirigid and AdVance, a product for treating mild male incontinence. It is these types of meaningful marketplace changes with which AMS has been, and will continue to be, identified." Outlook For the year 2006, the Company has updated its expected revenue range to $351 to $357 million including a Laserscope revenue contribution of between approximately $43 and $47 million. Total company revenues are projected for the fourth quarter of 2006 to be in the range from $108 to $114 million, including a base business range of $84 million to $86 million and a Laserscope revenue contribution of between $24 and $28 million. The Laserscope revenue contribution for the second half of 2006 excludes third quarter revenues of approximately $4.3 million that were recorded in July through the July 20th acquisition closing date. The Company expects fourth quarter non-GAAP earnings from continuing operations per share (based on projected GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). earnings from continuing operations per share, excluding the impact of in-process research and development charges and stock-based compensation expenses) to be in the range of $0.12 to $0.15. Based on the same non-GAAP metric, the Company is projecting its earnings from continuing operations per share for the year 2006 to be in a range of $0.60 to $0.63 per share. [TABLE OMITTED] As the Company looks forward to 2007, total Company revenues are anticipated in the range of $505 to $530 million. Excluding the impact of IPR&D charges, non-GAAP earnings from continuing operations per share are preliminarily estimated for the combined Company at $0.76 to $0.81. Non-GAAP cash earnings from continuing operations for 2007 are estimated in the range of $1.10 to $1.16 per share. Non-GAAP cash earnings from continuing operations per share are defined as GAAP earnings from continuing operations plus tax-effected depreciation, amortization, stock-based compensation expenses and IPR&D charges. Over the next five years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Company targets revenue growth in the range of 20 to 24 percent with operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: targeted to grow to 30 percent of sales by 2010. To achieve this, the combined Company's gross margins, inclusive of inclusive of prep. Taking into consideration or account; including. the lower margin capital equipment sales of Laserscope, are targeted to increase to levels above 80 percent in the same period. Earnings Call Information American Medical Systems will host a conference call today at 5:00 p.m. eastern time to discuss its third quarter 2006 results, projected 2006 financial results, the status of the Laserscope integration and preliminary guidance for 2007. Those without internet access See how to access the Internet. may join the call from within the U.S. by dialing 800-886-7217; outside the U.S., dial 706-679-3821. A live webcast of the call will be available through the Company's corporate website at www.AmericanMedicalSystems.com and available for replay three hours after the completion of the call. About American Medical Systems American Medical Systems, headquartered in Minnetonka, Minnesota For other uses, see Minnetonka (disambiguation). Minnetonka is a suburban community located eight miles west of Minneapolis in Hennepin County. Its 2000 population of 51,480 makes it the fourteenth largest city in Minnesota. and including its recently concluded acquisition of Laserscope, is a diversified supplier of medical devices and procedures to cure erectile dysfunction Erectile Dysfunction Definition Erectile dysfunction (ED), formerly known as impotence, is the inability to achieve or maintain an erection long enough to engage in sexual intercourse. , benign prostatic hyperplasia benign prostatic hyperplasia n. Abbr. BPH A nonmalignant enlargement of the prostate gland commonly occurring in men after the age of 50, and sometimes leading to compression of the urethra and obstruction of the flow of urine. , incontinence, menorrhagia menorrhagia /men·or·rha·gia/ (men?ah-ra´jah) hypermenorrhea. men·or·rha·gia n. See hypermenorrhea. , prolapse prolapse Protrusion of an internal organ out of its normal place, usually of the rectum or uterus outside the body when supporting muscles weaken. The membrane lining the rectum can push out through the anus, most often in old people with constipation who strain during and other pelvic disorders in men and women. These disorders can significantly diminish one's quality of life and profoundly affect social relationships. In recent years, the number of people seeking treatment has increased markedly as a result of longer lives, higher quality-of-life expectations and greater awareness of new treatment alternatives. American Medical Systems' products reduce or eliminate the incapacitating in·ca·pac·i·tate tr.v. in·ca·pac·i·tat·ed, in·ca·pac·i·tat·ing, in·ca·pac·i·tates 1. To deprive of strength or ability; disable. 2. To make legally ineligible; disqualify. effects of these diseases, often through minimally invasive therapies. The Company's products were used to provide approximately 170,000 patient cures in 56 countries during 2005. Forward-Looking Statements This press release contains forward-looking statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the market opportunities, future products, sales and financial results of American Medical Systems and Laserscope and the combined business. These statements and other statements contained in this press release that are not purely historical fact are forward-looking statements, 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 are based on management's beliefs, certain assumptions and current expectations. These forward-looking statements are subject to risks and uncertainties such as the timing and success of new product introduction including, but not limited to, the GreenLight HPS See Seer*HPS. ( TM) system; successful integration of Laserscope into AMS' business; physician acceptance, endorsement, and use of AMS and Laserscope products; assumptions made regarding the investments required to integrate and grow the Laserscope business; valuations to be performed of the tangible and intangible assets of Laserscope; estimates regarding the financial performance of Laserscope's aesthetics business; the negotiated proceeds from our intended sale of the Laserscope aesthetics business; factors impacting the stock market and our share price and, thereby, the share dilution of our convertible securities; regulatory matters; competitor activities; changes in and adoption of reimbursement rates; potential product recalls and other risks and uncertainties described in AMS' and Laserscope's Annual Reports 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, 2005 and our other SEC filings. Actual results may differ materially from anticipated results. The forward-looking statements contained in this press release are made as of the date hereof, and AMS undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events. More information about the Company and its products can be found at its website www.AmericanMedicalSystems.com and in the Company's Annual Report on Form 10-K for 2005 and its other SEC filings. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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