Andrx Corporation Reports Andrx Group Earnings for the Three Months Ended March 31, 2001.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)--April 30, 2001 Earnings Exceed Analysts' Consensus With Increased R&D Despite Delay in Generic Tiazac Tiazac® Diltiazem, see there Launch Andrx Corporation today announced financial results for the first quarter of 2001 for the Andrx Group ("Andrx") (Nasdaq:ADRX ADRX Andrx Corporation (stock symbol) ), representing the businesses of Andrx Corporation excluding the Cybear Group. For the first quarter of 2001, Andrx reported total revenues of $155.8 million, as compared to $115.2 million for the first quarter of 2000, an increase of 35.2%. Andrx also reported net income of $19.2 million, or $0.27 earnings 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 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 net income of $21.1 million or $0.32 earnings per diluted share for the first quarter of 2000. In the first quarter of 2001, Andrx increased research and development spending by $6.4 million to $14.7 million, as compared to $8.2 million in the first quarter of 2000. (Results of operations for the first quarter of 2000, as reported in this press release, are pro forma, as they exclude the net losses of Cybear Group 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). Commenting on the first quarter's financial results, Alan A`lan´ n. 1. A wolfhound. 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. , Co-Chairman and Chief Executive Officer of Andrx, said: "Despite the delay in the market introduction of our 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 Tiazac(R), Andrx has delivered another solid financial performance. Sales of Cartia Cartia® Diltiazem HCl Cardiology A generic Cardizem® used for angina and HTN. See Angina, Hypertension. XT(R) and Diltia XT(R) continue to be strong, and the strategic acquisitions of CTEX and Armstrong have strengthened our core offerings while research and development spending increased by 78%. As we move forward, we plan to continue investing in R&D to commercialize bioequivalent and branded pharmaceuticals. We believe we have the growth drivers in place to continue to increase our top and bottom lines." For the first quarter of 2001, sales from distributed products increased by 58.3% to $107.0 million, as compared to $67.6 million for the comparable quarter in 2000. In the first quarter of 2001, sales of distributed products include $5.3 million of sales from Andrx' distribution of the 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. Meter Dose Inhaler inhaler /in·hal·er/ (in-hal´er) 1. an apparatus for administering vapor or volatilized medications by inhalation. 2. ventilator (2). in·hal·er 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. ") product manufactured by Armstrong Pharmaceuticals ("Armstrong"). Andrx completed its acquisition of Armstrong on March 30, 2001. Sales of Armstrong's Albuterol MDI product after the acquisition date will be included in Andrx product sales. Sales of Andrx products were $44.8 million for the first quarter of 2001, as compared to $44.1 million for the first quarter of 2000. Sales of Andrx 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), Andrx' bioequivalent 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, (R) CD, and for the first quarter of 2001, also include $5.1 million of sales of products marketed by CTEX Pharmaceuticals, Inc. ("CTEX") which Andrx acquired on January January: see month. 24, 2001. Andrx generated $4.0 million of licensing revenues in the first quarter of 2001, as compared to $3.5 million in the first quarter of 2000. Gross profit from sales of distributed and Andrx products was $57.9 million, with a gross margin of 38.2% in the first quarter of 2001, as compared to $48.7 million, with a gross margin of 43.6% in the first quarter of 2000. The increase in gross profit is a result of an increase in product sales and the decrease in gross margin is a result of an increase in distributed product sales within the product mix. Selling, general and administrative expenses were $22.5 million, or 14.5% of total revenues, for the first quarter of 2001, as compared to $11.5 million, or 10.0% of total revenues, for the first quarter of 2000. The increase in selling, general and administrative expenses in the first quarter of 2001, as compared to the first quarter of 2000 is primarily the result of an increase in product sales, establishment of brand sales and marketing infrastructure, including CTEX, and an increase in legal costs. Research and development expenses were $14.7 million in the first quarter of 2001, as compared to $8.2 million in the first quarter of 2000. The increase in research and development expenses of $6.4 million, or 78.5%, 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. During the first quarter of 2001, Andrx submitted to the 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. its first NDA. Andrx reported investment income, net of $3.3 million in the first quarter of 2001, as compared to $498,000 in the first quarter of 2000. 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 first quarter of 2001, Andrx reported income taxes of $8.9 million or 32% of income before income taxes, as compared to $11.9 million or 36% of income before income taxes for the comparable quarter of last year. The first quarter 2001 tax rate is the result of Andrx' ability to realize certain tax benefits from the Cybear Group following the September September: see month. 7, 2000 reorganization. The diluted weighted average shares of common stock outstanding were 71.9 million for the first quarter of 2001, as compared to 65.8 million for the first quarter of 2000. The increase in the diluted weighted average shares of common stock outstanding in the first quarter of 2001, as compared to the first quarter of 2000, is primarily attributable to the public offering of 5.2 million Andrx common shares in May 2000, stock option exercises, and approximately 291,000 shares issued in January 2001 in connection with the acquisition of CTEX. All shares and related per share calculations for all prior periods have been restated for Andrx' April 2000 two-for-one stock split, effected in the form of a 100% stock dividend. On September 7, 2000, Andrx Corporation executed a reorganization whereby 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 two new classes of Andrx Corporation common stock were created - 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 the Cybear Group and Andrx Group Common Stock (Nasdaq: ADRX), to track the performance of Andrx Corporation excluding its ownership of Cybear Inc. In connection with the reorganization, Andrx Corporation shareholders exchanged each share of Andrx common stock held for one share of Andrx Group Common Stock and .1489 shares of Cybear Group Common Stock. Andrx common stock is common stock of Andrx Corporation but is designed to reflect Andrx' performance. Holders of Andrx common stock have no specific rights to the assets of Andrx. Andrx Corporation continues to hold title to all assets of Andrx 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 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. . 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' drug delivery technologies. Andrx also markets and distributes pharmaceutical products manufactured by third parties. Andrx Corporation's Cybear Group 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 clinical, administrative and communications tasks in the healthcare industry -- while addressing the healthcare industry's critical need for secure and reliable transmission of information. 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 Common Stock 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, 2000. 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 and subsidiaries excluding Cybear)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for share and per share amounts)
Three Months Ended
March 31,
-------------------------
2001 2000(a)
----------- -----------
Revenues
Distributed products $ 107,031 $ 67,611
Andrx products 44,754 44,114
Licensing fees 3,974 3,522
----------- -----------
Total revenues 155,759 115,247
----------- -----------
Operating expenses
Cost of goods sold 93,861 62,995
Selling, general and administrative 22,518 11,542
Research and development 14,656 8,211
----------- -----------
Total operating expenses 131,035 82,748
----------- -----------
Income from operations 24,724 32,499
Other income
Investment income, net 3,301 498
----------- -----------
Income before income taxes 28,025 32,997
Income taxes 8,856 11,856
----------- -----------
Net income $ 19,169 $ 21,141
=========== ===========
Basic net income per share $ 0.28 $ 0.33
=========== ===========
Diluted net income per share $ 0.27 $ 0.32
=========== ===========
Basic weighted average shares of
common stock outstanding 69,596,000 63,212,600
=========== ===========
Diluted weighted average shares of
common stock outstanding 71,917,600 65,832,200
=========== ===========
(a) For the 2000 period, the unaudited condensed consolidated
statement of income is pro forma as it excludes the net losses of
Cybear Group, although the reorganization that enables Cybear
Group's results to be excluded from Andrx Group did not become
effective until September 7, 2000. Prior period amounts have been
reclassified to conform to the current period presentation.
ANDRX GROUP
(Representing Andrx Corporation and subsidiaries excluding Cybear)
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2001 2000
-------- --------
Assets
Cash, cash equivalents and
investments available-for-sale $277,904 $320,108
Accounts receivable, net,
inventories and other current assets 248,469 223,551
-------- --------
Total current assets 526,373 543,659
Property, plant and equipment,
net and other assets 135,588 85,394
-------- --------
Total assets $661,961 $629,053
======== ========
Liabilities and Group Equity
Total liabilities $ 96,956 $106,807
Total Group equity 565,005 522,246
-------- --------
Total liabilities and
Group equity $661,961 $629,053
======== ========
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