Andrx Corporation Reports Andrx Group Earnings For The Three Months and Year Ended December 31, 2000.Business Editors FORT LAUDERDALE Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. , Fla.--(BUSINESS WIRE)--Feb. 21, 2001 ANDRX CORPORATION today announced results for the 2000 fourth quarter and 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 results for the year ended December December: see month. 31, 2000 for Andrx Group ("Andrx") (Nasdaq:ADRX ADRX Andrx Corporation (stock symbol) ), representing the businesses of Andrx Corporation other than Cybear Group. Results of operations for the year ended December 31, 2000 and for the fourth quarter and year ended December 31, 1999 included herein are pro forma, as they exclude the results of Cybear Inc. although the reorganization that enables Cybear Group's results to be excluded from Andrx did not become effective until September Until September is a 1984 romantic drama set in France. It stars Karen Allen as an American tourist in Paris who falls in love with a married Frenchman (Thierry Lhermitte). External links 7, 2000. For the 2000 fourth quarter, Andrx reported net income of $17.7 million or $0.25 per 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. share, as compared to pro forma net income of $23.1 million or $0.35 per diluted share for the 1999 fourth quarter. For the year ended December 31, 2000, Andrx reported pro forma net income of $77.7 million or $1.10 per diluted share, as compared to pro forma net income of $101.9 million or $1.57 per diluted share for the year ended December 31, 1999. The year ended December 31, 1999 includes stipulation An agreement between attorneys that concerns business before a court and is designed to simplify or shorten litigation and save costs. During the course of a civil lawsuit, criminal proceeding, or any other type of litigation, the opposing attorneys may come to an agreement fees of $70.7 million received in connection with the patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. involving Cartia Cartia® Diltiazem HCl Cardiology A generic Cardizem® used for angina and HTN. See Angina, Hypertension. XT(R), Andrx' bioequivalent bi·o·e·quiv·a·lent n. A value indicating the rate at which a substance enters the bloodstream and becomes available to the body. version of Cardizem Car·di·zem A trademark for the drug diltiazem hydrochloride. diltiazem hydrochloride Adizem (UK), Angitil (UK), Apo-Diltiaz (CA), Apo-Diltiazem (CA), Calcicard (UK), Cardizem, Cardizem CD, Cardizem LA, Cartia XT, CD(R), offset by related royalties and corresponding income taxes. For the year ended December 31, 2000, research and development expenses increased by $21.0 million or 81.6% to $46.7 million, as compared to $25.7 million for the year ended December 31, 1999. For the 2000 fourth quarter, sales of distributed products increased by 43.9% to $96.6 million, as compared to $67.1 million for the 1999 fourth quarter. Sales of manufactured products were $42.2 million for the 2000 fourth quarter, as compared to $51.8 million for the 1999 fourth quarter. Sales of manufactured products include Diltia XT(R), Andrx' bioequivalent version of Dilacor Di·la·cor A trademark for the drug diltiazem hydrochloride. XR(R), and Cartia XT(R), which enjoyed 180-days of marketing exclusivity through December 19, 1999. Andrx generated $3.7 million of licensing revenues in the 2000 fourth quarter, as compared to $3.0 million in the 1999 fourth quarter. Gross profit from sales of distributed and manufactured products was $52.4 million, with a gross margin of 37.8% in the quarter ended December 31, 2000, as compared to $55.9 million, with a gross margin of 47.1% in the quarter ended December 31, 1999. The decrease in gross profit and gross margin is a result of a decrease in sales of manufactured products, following the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of the marketing exclusivity period for Cartia XT(R). Selling, general and administrative expenses were $19.9 million or 14.0% of total revenues for the 2000 fourth quarter, as compared to $14.7 million or 12.0% of total revenues for the 1999 fourth quarter. Research and development expenses were $13.3 million in the 2000 fourth quarter, as compared to $9.0 million in the 1999 fourth quarter. The increase in research and development expenses of $4.3 million or 48.0% reflects the progress and expansion of Andrx' development activities in its bioequivalent (ANDA ANDA abbr. abbreviated new drug application ) and brand name (NDA (Non Disclosure Agreement) An agreement signed between two parties that have to disclose confidential information to each other in order to do business. In general, the NDA states why the information is being divulged and stipulates that it cannot be used for any ) drug development programs. Andrx reported investment income, net of $3.9 million in the quarter ended December 31, 2000, as compared to $337,000 in the quarter ended December 31, 1999. The increase in investment income is the result of the increase in cash, cash equivalents and investments available-for-sale primarily attributable to the public offering of Andrx common stock in May 2000, that raised net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $236 million. In the 2000 fourth quarter, Andrx reported income taxes of $9.1 million or 34.0% of income before income taxes, as compared to $12.6 million or 35.2% of income before income taxes for the 1999 fourth quarter. The 2000 fourth quarter tax rate is less than the statutory Federal and state rate due to Andrx' ability to realize certain tax benefits from Cybear Group following the September September: see month. 7, 2000 reorganization. The diluted weighted average shares of common stock outstanding were 71.8 million for the 2000 fourth quarter, as compared to 65.1 million for the 1999 fourth quarter. The increase in the diluted weighted average shares of common stock outstanding in the 2000 quarter, as compared to the 1999 quarter is primarily attributable to the public offering of 5.2 million Andrx common shares in May 2000 and stock option exercises. All shares and related per share calculations for all prior periods have been restated for Andrx' June June: see month. 1999 and April 2000 two-for-one stock splits, each effected in the form of 100% stock dividends. "Throughout the year, Andrx continued to pursue and execute its plan, investing in R&D to create and bring to market generic and brand name drugs utilizing oral controlled-release technologies," said Alan P. Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. , Andrx' Co-Chairman and Chief Executive Officer. "At the same time, we are continuing to evaluate opportunities that we believe will add to our core capabilities." In the reorganization, Andrx Corporation acquired the outstanding shares of common stock of Cybear Inc. that it did not own, Andrx Corporation was reincorporated in Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). , and created two new classes of common stock- Cybear Group Common Stock (Nasdaq:CYBA CYBA Charter Yacht Broker Association CYBA Conejo Youth Basketball Association (Conejo Valley, California) CYBA California Yacht Brokers Association CYBA Cybertron Army CYBA Columbia Yacht Brokers Association ), to track the performance of Cybear Inc., and Andrx (Nasdaq:ADRX), to track the performance of Andrx Corporation other than its ownership of Cybear Inc. In connection with the reorganization, which was effective at the opening of business on September 7, 2000, Andrx Corporation shareholders exchanged each share of Andrx Corporation common stock held for one share of Andrx common stock and .1489 shares of Cybear Group Common Stock. Andrx Corporation is presenting the pro forma consolidated financial information of Andrx in these Andrx unaudited condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge . Andrx common stock is common stock of Andrx Corporation designed to reflect Andrx' performance. Holders of Andrx common stock have no specific rights to the assets of Andrx Corporation, which continues to hold title to all its assets and is responsible for all of its assets and for all of its liabilities, regardless of how it allocates assets and liabilities among the classes of stock for financial statement presentation purposes. Holders of Andrx common stock are therefore subject to the risks of investing in the businesses, assets and liabilities of Andrx Corporation as a whole. For instance, the assets devoted to each class of stock are subject to company-wide claims of creditors, product liability plaintiffs and stockholder litigation. Andrx is engaged in the formulation formulation /for·mu·la·tion/ (for?mu-la´shun) the act or product of formulating. American Law Institute Formulation and commercialization of oral controlled-release pharmaceuticals utilizing its proprietary drug delivery technologies. In its ANDA program, Andrx is developing generic versions of selected high sales volume controlled-release brand name pharmaceuticals. In its NDA program, Andrx is developing its own brand name formulations of certain existing drugs that it believes may be improved by the application of Andrx Corporation's drug delivery technologies. Andrx also markets and distributes pharmaceutical products manufactured by third parties. Andrx Corporation's Cybear Group (Nasdaq:CYBA) intends to use the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the to improve the efficiency of administrative and communications tasks of managing patient care - while addressing the healthcare industry's critical need for secure and reliable transmission of information. Cybear also distributes healthcare products to physicians through the Internet, primarily through the Cybearclub joint venture with Andrx. 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. (statements which are not historical facts) in this release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions 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. For this purpose, any statements contained in this report that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality gen·er·al·i·ty n. pl. gen·er·al·i·ties 1. The state or quality of being general. 2. An observation or principle having general application; a generalization. 3. of the foregoing, words such as "may," "will," "to," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. Investors are cautioned that all forward-looking statements involve risk and uncertainties. Andrx Group is a class of common stock of Andrx Corporation, therefore Andrx Corporation shareholders are subject to the risks and uncertainties described in Andrx Corporation's filings with the Securities and Exchange Commission, including Andrx Corporation'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, 1999. This release and additional information about Andrx Group and Andrx Corporation is also available on the Internet at: http://www.andrx.com
ANDRX GROUP
(Representing Andrx Corporation other than its ownership of Cybear
Inc.)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for share and per share amounts)
Three Months Ended Years Ended
December 31, December 31,
2000 1999 2000 1999
---- ---- ---- ----
Proforma Proforma Proforma
Revenues
Distributed products $96,550 $67,086 $324,589 $262,320
Manufactured products 42,219 51,815 175,428 134,796
Stipulation fees - - - 70,733
Licensing fees 3,741 3,037 14,968 7,869
----- ----- ------ -----
Total revenues 142,510 121,938 514,985 475,718
------- ------- ------- -------
Operating expenses
Cost of goods sold 86,345 62,955 297,218 235,268
Selling, general and
administrative 19,933 14,658 61,901 55,266
Research and development 13,329 9,008 46,669 25,697
Reorganization costs - - 2,098 -
------- ------ ------- -------
Total operating expenses 119,607 86,621 407,886 316,231
------- ------ ------- -------
Income from operations 22,903 35,317 107,099 159,487
Investment income, net 3,884 337 10,443 660
------- ------ ------- -------
Income before income taxes 26,787 35,654 117,542 160,147
Income taxes 9,108 12,552 39,870 58,228
------- ------ ------- -------
Net income $17,679 $23,102 $77,672 $101,919
======= ======= ======= ========
Basic net income per share $0.26 $0.37 $1.15 $1.64
======= ======= ======= ========
Diluted net income per share $0.25 $0.35 $1.10 $1.57
======= ======= ======= ========
Basic weighted average
shares of common stock
outstanding 69,261,000 62,948,000 67,756,000 61,980,000
========== ========== ========== ==========
Diluted weighted average
shares of common stock
outstanding 71,840,000 65,108,000 70,456,000 64,953,000
========== ========== ========== ==========
Note: For the year ended December 31, 2000 and for the 1999
periods, statements of income are pro forma as they exclude
the results of operations of Cybear Inc., although the
reorganization that enables Cybear Group's results to be
excluded from Andrx Group did not become effective until
September 7, 2000.
ANDRX GROUP
(Representing Andrx Corporation other than its ownership of Cybear
Inc.)
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Pro Forma
December 31, December 31,
2000 1999
------------ -----------
Assets
Cash, cash equivalents and
investments available-for-sale $320,108 $82,586
Accounts receivable-net, inventories
and other current assets 222,968 176,476
------------ -----------
Total current assets 543,076 259,062
Property, plant and equipment
- net and other assets 85,419 43,045
------------ -----------
Total assets $628,495 $302,107
============ ===========
Liabilities and Shareholders' Equity
Total liabilities $106,250 $120,427
Total shareholders' equity 522,245 181,680
--------------- -----------
Total liabilities and shareholders'
equity $628,495 $302,107
=============== ===========
Note: The December 31, 1999 balance sheet is pro forma as it
excludes the balances of Cybear Inc., although the
reorganization that enables Cybear Group's balances to be
excluded from Andrx Group did not become effective until
September 7, 2000.
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