Andrx Corporation Reports Financial Results for 2006 Second Quarter.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. -- Andrx Corporation (Nasdaq:ADRX ADRX Andrx Corporation (stock symbol) ) ("Andrx" or the "Company") today announced its financial results for the three and six months ended June June: see month. 30, 2006 (the "2006 Quarter" and "2006 Period," respectively), which are discussed more extensively in Andrx's Form 10-Q Form 10-Q See 10-Q. for the 2006 Quarter (the "June 2006 10-Q") being filed with the U.S. Securities and Exchange Commission (SEC). Once filed with the SEC, the June 2006 10-Q will be available on the Company's website at http://www.andrx.com (Investor Relations/SEC filings). The following was extracted from our 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 statements of operations included in the June 2006 10-Q (in thousands, except per share amounts).
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
-------- -------- -------- --------
Total revenues $254,751 $261,710 $496,180 $540,093
Income (loss) before income
taxes and cumulative effect
of a change in accounting
principle $ 2,227 $ 12,900 $(16,208) $ (9,107)
Net income (loss) $ 1,437 $ 7,998 $ (9,869) $ 43,335
Earnings (loss) per share
Basic $ 0.02 $ 0.11 $ (0.13) $ 0.59
Diluted $ 0.02 $ 0.11 $ (0.13) $ 0.59
Andrx Chief Executive Officer, Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs P. Rice, said: "In the 2006 Quarter distributed products revenues benefited from the launches of generic Pravachol Prav·a·chol A trademark for the drug pravastatin. pravastatin sodium Lipostat (UK), Pravachol Pharmacologic class: HMG-CoA reductase inhibitor Therapeutic class: Antilipemic (R) and generic Zocor Zo·cor A trademark for the drug simvastatin. simvastatin Simvador (UK), Zocor Pharmacologic class: HMG-CoA reductase inhibitor Therapeutic class: Antihyperlipidemic (R). Although the industry continues to experience price erosion on existing products, the top-line trend in our distribution business is returning to growth as generic versions of high sales volume brand products are launched. In our generic products business, although revenues continue to be affected by no launches, Cartia Cartia® Diltiazem HCl Cardiology A generic Cardizem® used for angina and HTN. See Angina, Hypertension. XT(R) and Taztia XT(R) have not been impacted by additional competitors." "We were pleased to receive stockholder approval for our merger with Watson at our June 28 Special Meeting. On July July: see month. 7, 2006, Watson and Andrx entered into an agreement to amend the merger agreement to extend the outside closing date to November November: see month. 13, 2006. As a direct result of our efforts towards completing the merger, this quarter's results of operations include $3.8 million in merger expenses. We anticipate closing the merger in the third or fourth quarter of 2006, and look forward to the success of the combined organizations." Mr. Rice concluded, "We believe we continue to make considerable progress improving our compliance with current Good Manufacturing Practices Good Manufacturing Practice or GMP (also referred to as 'cGMP' or 'current Good Manufacturing Practice') is a term that is recognized worldwide for the control and management of manufacturing and quality control testing of foods and pharmaceutical products. (cGMP cGMP 3'5' cyclic guanosine monophosphate; essential in regulation of sodium channels of the retina. Decrease in cGMP concentration leads to hyperpolarization of the retinal membrane. ). Accordingly, our work with consultants is ongoing. The quarter's results included $6 million in consulting fees related to improving our pharmaceutical operations. On July 25, 2006, we met with 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. in Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. D.C. to further discuss our responses to our April 2006 Form 483 and other improvements we continue to make at Andrx to our quality and manufacturing systems." Highlights for 2006 Second Quarter Distributed Products On a quarterly sequential basis, distributed products revenue increased 11.5% to $177.4 million in the 2006 Quarter from $159.1 million for the 2006 first quarter. In the 2006 Quarter, gross profit on distributed products was $31.9 million, or a gross margin of 18.0%, compared to gross profit of $32.2 million, or a gross margin of 20.2%, for the 2006 first quarter. In the 2006 Quarter, distributed products revenues increased 5.1% from $168.8 million for the three months ended June 30, 2005 (the "2005 Quarter"). Distributed products revenue growth in the 2006 Quarter is primarily the result of our participation in the distribution of new generic product introductions but also includes $2.6 million in increased sales of certain brand products, partially offset by the overall price declines and competition for market share as is common to generic products. Andrx Products On a quarterly sequential basis, revenues from Andrx generic products were flat at $68.5 million. Andrx generic products revenues decreased 12.5% in the 2006 Quarter, compared to $78.3 million in the 2005 Quarter. The decline is primarily due to decreased revenues from our generic versions of Glucotrol Glu·co·trol A trademark for the drug glipizide. glipizide Warning - High-alert drug! Glucotrol, Glucotrol XL, Glibenese (UK), Minodiab (UK) XL(R), supplied by Pfizer Pfizer Incorporated (NYSE: PFE) is a major research-based pharmaceutical company, which ranks number two in sales The company is based in New York City. It produces the number-one selling drug Lipitor (atorvastatin, used to lower blood cholesterol); the oral antifungal Inc., Glucophage Glu·co·phage A trademark for the drug metformin. metformin hydrochloride Warning - High-alert drug! (R), OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). generic Claritin-D(R) 24, and Dilacor Di·la·cor A trademark for the drug diltiazem hydrochloride. XR(R), partially offset by increased revenues from our generic versions of Tiazac Tiazac® Diltiazem, see there (R) and 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 Ventolin Ven·to·lin A trademark for the drug albuterol. albuterol (salbutamol) Proventil, Ventolin Pharmacologic class: Sympathomimetic (beta2-adrenergic agonist) (R), supplied by Amphastar Pharmaceuticals, Inc. Our generic business did not launch any significant products during the first half of 2006 or 2005. In the 2006 Quarter, our generic products generated a gross profit of $16.5 million with a gross margin of 24.0%, compared to gross profit of $22.5 million with a gross margin of 28.8% in the 2005 Quarter. Charges directly to cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold in the 2006 Quarter include, among other things, $1.4 million related to production of commercial inventories, $5.8 million related to consulting fees to improve our quality and manufacturing processes, $2.2 million in other inventory related charges, and $1.9 million of accelerated depreciation Accelerated Depreciation Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset. Notes: The straight-line depreciation method spreads the cost evenly over the life of an asset. and amortization of the oral contraceptive oral contraceptive n. A pill, typically containing estrogen or progesterone, that prevents conception or pregnancy. Also called birth control pill. assets in Davie, Florida Davie is a town in Broward County, Florida, United States. In 2006, the U.S. Census Bureau estimated the city's population at 84,350.[3] It is part of the South Florida metropolitan area, which is home to 5,463,857 people. . Licensing, Royalties and Other Revenues In the 2006 Quarter, licensing, royalties and other revenues decreased to $8.8 million, compared to $14.6 million in the 2005 Quarter primarily due to decreased revenues from Sciele Pharma, Inc. (formerly known as First Horizon Pharmaceutical Corporation) related to our former brand products, and 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 revenue generating activities from certain alliances. Our profit participation under our agreements with KUDCo and Ranbaxy ceased in February February: see month. 2006 and June 2005, respectively. On a quarterly sequential basis, licensing, royalties and other revenues decreased by $5.0 million from $13.8 million for the 2006 first quarter mainly due to lower revenues from Sciele Pharma, and no revenues from KUDCo's sales of generic Prilosec Pri·lo·sec A trademark for the drug omeprazole. omeprazole Losec (CA) (UK), Heartburn Relief (UK), Prilosec, Prilosec OTC, Zegerid, Zanprol (UK) Pharmacologic class: Proton pump inhibitor and Mallinckrodt Mallinckrodt Incorporated is a set of pharmaceutical, chemical, imaging, and respiratory equipment suppliers based in the St. Louis, Missouri area, which were recently purchased by Tyco Healthcare (Tyco International) and which have been proposed for further reorganization. , Inc.'s sales of generic Anexsia(R). SG&A Selling, general and administrative expenses (SG&A) were $41.0 million for the 2006 Quarter, or 16.1% of total revenues, compared to $39.1 million, or 14.9% of total revenues for the 2005 Quarter. On a quarterly sequential basis, SG&A expenses decreased by $2.4 million from $43.4 million for the 2006 first quarter, primarily due to the $4.0 million amendment fee to Teva Pharmaceuticals USA, Inc. in the 2006 first quarter associated with the oral contraceptives Oral Contraceptives Definition Oral contraceptives are medicines taken by mouth to help prevent pregnancy. They are also known as the Pill, OCs, or birth control pills. agreement. The 2006 Quarter includes $3.8 million in merger expenses, while the 2006 first quarter included $2.8 million in merger expenses. R&D Research and development expenses (R&D) were $13.0 million in the 2006 Quarter, compared to $12.6 million in the 2005 Quarter. The increase in R&D spending was attributable to an increase in our contract services R&D of $776,000 primarily due to increased costs associated with the development of a combination product comprised of our extended-release extended-release /ex·tend·ed-re·lease/ (ek-stend´ed-re-les´) allowing a twofold or greater reduction in frequency of administration of a drug in comparison with the frequency required by a conventional dosage form. metformin metformin /met·for·min/ (met-for´min) an antihyperglycemic agent that potentiates the action of insulin, used in the treatment of type 2 diabetes mellitus. met·for·min n. product and Takeda Chemical Industries, Ltd.'s Actos Actos® Pioglitazone, see there (R). On a quarterly sequential basis, R&D decreased slightly from $13.6 million for the 2006 first quarter. We submitted three ANDAs to the FDA in the 2006 Quarter. Income Taxes For the 2006 Quarter, we provided for an income tax expense of $790,000, at the expected annual effective federal statutory rate of 35%. The effect of state income taxes was offset by our expected permanent items, which include, among other things, the domestic manufacturing deduction deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. resulting as set forth in the American Jobs Creation Act of 2004. For the 2005 Quarter, we provided for an income tax expense of $4.9 million, which was in excess of the expected annual effective federal statutory rate of 35% primarily due to the effect of state income taxes. Balance Sheet As of June 30, 2006, we had $368 million in total cash, cash equivalents and total investments available for sale, and $594 million of working capital. Deferred revenues were $105 million, primarily related to cash received from our transactions with Takeda and Sciele Pharma. Capital expenditures were $14.8 million in the 2006 Period compared to $13.0 million for the 2005 Period. About Andrx Corporation We are a pharmaceutical company that: --develops and commercializes generic versions of primarily controlled-release pharmaceutical products as well as oral contraceptives, and selective immediate-release products; --distributes pharmaceutical products, primarily generics, which have been commercialized by others, as well as our own, primarily to independent and chain pharmacies This article is a list of major pharmacies (also known as chemists and drugstores) by country. Australia Pharmacies in Australia are mostly independently-owned by pharmacists, often operated as franchises of retail brands offered by the three major and physicians' offices; and --develops and manufactures pharmaceutical products for other pharmaceutical companies, including combination products and controlled-release formulations. 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 herein or which are otherwise made by or on behalf of Andrx 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," "plan," "expect," "believe," "anticipate," "intend," "could," "should," "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, including but not limited to, which sanctions Sanctions is the plural of sanction. Depending on context, a sanction can be either a punishment or a permission. The word is a contronym. Sanctions involving countries: relating to relate prep → bezüglich +gen, mit Bezug auf +acc any failure to comply with cGMP requirements and if and when the "hold" on pharmaceutical product applications will be lifted; whether we will be able to satisfactorily resolve the FDA's April 2006 483 - List of Inspectional Observations; our dependence on a relatively small number of products; the timing and scope of patents issued to our competitors; the timing and outcome of patent, class action, derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. and other 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. and future product launches; the submission and resolution of Citizen Petitions; whether we will be awarded any marketing exclusivity period and, if so, the precise dates thereof; whether we will forfeit To lose to another person or to the state some privilege, right, or property due to the commission of an error, an offense, or a crime, a breach of contract, or a neglect of duty; to subject property to confiscation; or to become liable for the payment of a penalty, as the result of a our, or our partner's, exclusivity or whether that exclusivity will expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. before we enjoy a full 180 days of exclusivity; whether additional charges related to pre-launch inventory will be required; additional facilities 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. charges; government regulation generally; competition; manufacturing capacities; our ability to develop and successfully commercialize new products; Active Pharmaceutical Ingredient (API (Application Programming Interface) A language and message format used by an application program to communicate with the operating system or some other control program such as a database management system (DBMS) or communications protocol. ) issues; the loss of revenues and profits from existing key products; increasing pricing pressures as a result of more competitors, including the launch of authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: generics into an exclusivity period; development and marketing expenses that may not result in commercially successful products; our inability to obtain, or the high cost of obtaining, licenses for third party technologies; our ability to meet the supply and manufacturing requirements of the Sciele Pharma, L. Perrigo Company, Takeda or Teva Pharmaceuticals USA agreements; the fact that our generic products are sold to, among others, major wholesalers, with whom we compete in our distribution operations; the consolidation or loss of customers; certain pricing guaranties to our distribution customers for products which cannot be returned to the manufacturers; our relationship with our suppliers and customers and their views, actions and reactions towards us following the announcement of our Watson transaction; difficulties in integrating, and potentially significant charges associated with, acquisitions of technologies, products and businesses; our inability to obtain sufficient finished goods for distribution, supplies and/or API from key suppliers; the impact of sales allowances; product liability claims; rising costs and limited availability When customers of the PSTN make telephone calls, they commonly make use of a telecommunications network called a switched-circuit network. In a switched-circuit network, devices known as switches are used to connect the caller to the callee. of product liability and other insurance; management changes and the potential loss of key personnel; failure to comply with environmental laws; the absence of certainty regarding the receipt of required regulatory approvals or the timing or terms of such approvals; our ability to commercialize all of our pre-launch inventory; business interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. due to hurricanes or other events outside of our control and the completion of our merger with Watson Pharmaceuticals Watson Pharmaceuticals, Incorporated (NYSE: WPI) is the 5th largest pharmaceutical company in the United States based on number of prescriptions dispensed. Based in Corona, California, Watson's Generics division markets over 150 pharmaceutical product families, including one of the , Inc. Actual results may differ materially from those projected in a forward-looking statement. We are also subject to other risks detailed in our 2005 Annual Report, or, from time to time, in our other SEC filings. Subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. by the cautionary statements set forth in our 2005 Annual Report and in our other SEC filings. Readers are cautioned not to place reliance on these forward-looking statements, which are valid only as of the date they were made. We undertake no obligation to update or revise any forward-looking statements to reflect new information or the occurrence of unanticipated events or otherwise, except as expressly required by law. This release and additional information about Andrx Corporation is also available on 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 at: http://www.andrx.com.
Andrx Corporation and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2006 2005 2006 2005
-------- -------- -------- --------
Revenues:
Distributed products $177,444 $168,821 $336,535 $348,546
Andrx products 68,509 78,335 137,024 170,749
Licensing, royalties and
other 8,798 14,554 22,621 20,798
-------- -------- -------- --------
Total revenues 254,751 261,710 496,180 540,093
Operating expenses:
Cost of goods sold 203,131 199,640 410,593 400,794
Selling, general and
administrative 41,011 39,087 84,412 101,840
Research and development 12,977 12,569 26,547 24,680
Goodwill impairment charge - - - 26,316
-------- -------- -------- --------
Total operating expenses 257,119 251,296 521,552 553,630
-------- -------- -------- --------
Income (loss) from
operations (2,368) 10,414 (25,372) (13,537)
Other income (expense):
Equity in earnings of
unconsolidated joint
ventures 615 715 1,291 1,739
Interest income 3,980 2,355 7,873 3,961
Interest expense - (584) - (1,270)
-------- -------- -------- --------
Income (loss) before
income taxes and
cumulative effect of a
change in accounting
principle 2,227 12,900 (16,208) (9,107)
Provision (benefit) for income
taxes 790 4,902 (5,644) (52,442)
-------- -------- -------- --------
Income (loss) before
cumulative effect of a
change in accounting
principle 1,437 7,998 (10,564) 43,335
Cumulative effect of a change
in accounting principle, net
of income taxes of $408 - - 695 -
-------- -------- -------- --------
Net income (loss) $ 1,437 $ 7,998 $ (9,869) $ 43,335
======== ======== ======== ========
Earnings (loss) before
cumulative effect of a change
in accounting principle per
share:
Basic $ 0.02 $ 0.11 $ (0.14) $ 0.59
======== ======== ======== ========
Diluted $ 0.02 $ 0.11 $ (0.14) $ 0.59
======== ======== ======== ========
Earnings (loss) per share:
Basic $ 0.02 $ 0.11 $ (0.13) $ 0.59
======== ======== ======== ========
Diluted $ 0.02 $ 0.11 $ (0.13) $ 0.59
======== ======== ======== ========
Weighted average shares of
common stock outstanding:
Basic 73,877 73,224 73,770 73,119
======== ======== ======== ========
Diluted 74,476 73,657 73,770 73,624
======== ======== ======== ========
Andrx Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
June 30, December 31,
2006 2005
----------- ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 15,660 $ 34,066
Short-term investments available-for-sale,
at market value 293,457 247,957
Accounts receivable, net of allowance for
doubtful accounts of $4,026 and $3,624 at
June 30, 2006 and December 31, 2005,
respectively 149,712 148,186
Inventories 229,513 235,040
Deferred income tax assets, net 74,142 62,432
Assets held for sale 29,319 29,319
Prepaid and other current assets 14,980 15,152
---------- ----------
Total current assets 806,783 772,152
Long-term investments available-for-sale,
at market value 58,431 123,105
Property, plant and equipment, net 233,450 249,224
Goodwill 7,665 7,665
Other intangible assets, net 3,366 4,590
Other assets 10,554 10,178
---------- ----------
Total assets $1,120,249 $1,166,914
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 118,899 $ 169,664
Accrued expenses and other liabilities 94,123 88,990
---------- ----------
Total current liabilities 213,022 258,654
Deferred income tax liabilities 30,152 31,856
Deferred revenue 105,192 99,494
---------- ----------
Total liabilities 348,366 390,004
---------- ----------
Commitments and contingencies
Stockholders' equity:
Convertible preferred stock; $0.001 par
value, 1,000 shares authorized; none
issued and outstanding - -
Common stock; $0.001 par value, 200,000
shares authorized; 73,881 and 73,567
shares issued and outstanding at
June 30, 2006 and December 31, 2005,
respectively 74 74
Additional paid-in capital 522,477 532,376
Restricted stock units, net - (14,634)
Retained earnings 250,471 260,340
Accumulated other comprehensive loss, net
of income tax benefit (1,139) (1,246)
---------- ----------
Total stockholders' equity 771,883 776,910
---------- ----------
Total liabilities and stockholders'
equity $1,120,249 $1,166,914
========== ==========
Andrx Corporation and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Six Months Ended
June 30,
---------------------
2006 2005
--------- ---------
Cash flows from operating activities:
Net (loss) income $ (9,869) $ 43,335
Adjustments to reconcile net (loss) income to
net cash (used in) provided by operating
activities:
Depreciation and amortization 17,887 17,429
Provision for doubtful accounts 1,214 995
Non-cash impairment charges 16,837 26,865
Non-cash share-based compensation 2,137 1,360
Amortization of deferred revenue (4,302) (1,302)
Equity in earnings of unconsolidated joint
ventures (1,291) (1,739)
Deferred income tax benefit (13,884) (20,264)
Change in liabilities for uncertain tax
positions (38) (32,344)
Excess income tax benefit on share-based awards 200 1,162
Cumulative effect of a change in accounting
principle, net of income taxes of $408 (695) -
Changes in operating assets and liabilities:
Accounts receivable (2,740) 10,122
Inventories 5,527 35,561
Prepaid and other current assets 172 (17,034)
Other assets (146) 109
Accounts payable (50,765) 1,012
Accrued expenses and other liabilities 1,730 (11,581)
Deferred revenue 10,000 10,000
--------- ---------
Net cash (used in) provided by
operating activities (28,026) 63,686
--------- ---------
Cash flows from investing activities:
Purchases of investments available-for-sale (266,837) (342,776)
Maturities and sales of investments available-
for-sale 286,180 206,935
Purchases of property, plant and equipment, net (14,830) (13,049)
Proceeds from the sale and licensing of assets
and rights - 73,333
Distributions from unconsolidated joint ventures 1,061 3,629
Refund of deposit for product rights - 10,000
Payment for product rights - (4,500)
--------- ---------
Net cash provided by (used in)
investing activities 5,574 (66,428)
--------- ---------
Cash flows from financing activities:
Proceeds from issuances of common stock in
connection with exercises of stock options 3,323 3,260
Proceeds from issuances of common stock in
connection with the employee stock purchase
plan 495 643
Principal payments on capital lease obligations - (1,530)
Excess income tax benefit on share-based awards 228 -
--------- ---------
Net cash provided by financing
activities 4,046 2,373
--------- ---------
Net decrease in cash and cash
equivalents (18,406) (369)
Cash and cash equivalents, beginning of period 34,066 42,290
--------- ---------
Cash and cash equivalents, end of period $ 15,660 $ 41,921
========= =========
Andrx Corporation and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended
June 30,
--------------------
2006 2005
-------- --------
Supplemental disclosure of non-cash investing and
financing activities:
Issuance of restricted stock units, net $ - $(11,602)
======== ========
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