Andrx Reports Continued Increase in Profits.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 27, 1999-- ANDRX CORPORATION (Nasdaq:ADRX ADRX Andrx Corporation (stock symbol) ) today announced its results for the three months ended March 31, 1999. For the 1999 first quarter, Andrx reported net income of $6,944,000 or $0.43 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 a net loss of $960,000 or $0.06 per diluted share for the 1998 first quarter. Total revenues increased by 53.7% to $77,924,000 for the 1999 first quarter as compared to $50,695,000 for the 1998 first quarter. For the first quarter of 1999, sales from distributed products increased by 31.1% to $63,025,000 as compared to $48,080,000 for the 1998 first quarter. Sales from manufactured products increased to $4,373,000 for the 1999 first quarter as compared to $2,615,000 for the 1998 first quarter. In the 1999 first quarter, Andrx earned $10,000,000 in 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 under its status quo [Latin, The existing state of things at any given date.] Status quo ante bellum means the state of things before the war. The status quo to be preserved by a preliminary injunction is the last actual, peaceable, uncontested status which preceded the pending controversy. stipulation and agreement with Hoechst Marion Roussel Inc. and Carderm Capital L.P. Gross profits from sales of distributed products were $12,456,000 or a gross margin of 19.8% in the 1999 first quarter, as compared to $7,141,000 or a gross margin of 14.9% in the 1998 first quarter. This represents the 27th consecutive quarter (every quarter since inception) with an increase in gross profits from the distribution operation. The gross margin percentage in the 1999 first quarter was higher than historical trends and may not be indicative of the expected gross margin percentage in future periods. Manufacturing costs, which consist of costs of manufactured products as well as idle facility costs, were $2,257,000 for the 1999 first quarter as compared to $998,000 for the 1998 first quarter. Selling, general and administrative expenses were $8,808,000 or 11.3% of total revenues for the quarter ended March 31, 1999, as compared to $6,081,000 or 12.0% of total revenues for the quarter ended March 31, 1998. The increase in selling, general and administrative expenses was primarily due to an increase in the activities necessary to support the increase in sales from distributed and manufactured products. Research and development expenses were $4,405,000 in the 1999 first quarter, as compared to $3,096,000 in the 1998 first quarter. The increase in research and development expenses of $1,309,000 or 42.3% reflects the progress and expansion of the Company's development activities for its 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. (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. The Company's equity share of losses in ANCIRC Pharmaceuticals, its 50/50 joint venture 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. (NYSE NYSE See: New York Stock Exchange :WPI WPI - Worcester Polytechnic Institute ), decreased to $148,000 for the 1999 first quarter, as compared to $298,000 in the 1998 first quarter. This decrease was primarily attributed to the launch of ANCIRC's first product, a bioequivalent version of Trental Tren·tal A trademark for the drug pentoxifylline. pentoxifylline Apo-Pentoxyphylline (CA), Neotren (UK), Nu-Pentoxyphylline SR (CA), Pentoxil, Trental Pharmacologic class: (R) in September 1998. ANCIRC received approval of its second product, a bioequivalent version of Oruvail(R) on March 24, 1999, and commenced selling this product on April 19, 1999. In the 1999 first quarter, the Company incurred $2,744,000 of software development and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. as compared to $490,000 in the 1998 first quarter. The increase in software development and administrative costs primarily relates to progress in software applications and the establishment of the related administrative infrastructure by Cybear, Inc. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :CYBR CYBR Copy Byte Right ), the Company's 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 based communications technology Noun 1. communications technology - the activity of designing and constructing and maintaining communication systems engineering, technology - the practical application of science to commerce or industry subsidiary. In the 1999 first quarter, the Company and a former employee who claimed that he was entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to receive a royalty equal to 1% of gross revenues from the Company's versions of Dilacor XR(R) and Cardizem(R) CD, agreed to settle their claims against each other with a payment from Andrx to such employee of $545,000. In the 1999 first quarter, Andrx recognized a gain of $300,000 on the sale of Cybear, Inc. common stock to Cybear, Inc.'s Chairman pursuant to the previously announced subscription agreement. In the 1999 first quarter, the Company provided $2,016,000 for federal income taxes or 22.5% of income before taxes. The Company was not required to provide for federal income taxes in the 1999 first quarter at the Federal statutory rate of 35.0% due to the utilization of net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. . The diluted weighted average shares of common stock outstanding were 16.2 million in the 1999 first quarter as compared to 14.9 million for the 1998 first quarter. The increase in such diluted weighted average shares of common stock outstanding in the 1999 quarter, as compared to the comparable 1998 quarter resulted primarily from the inclusion of stock equivalents in the profitable 1999 quarter. "The obvious news is that we reported our most profitable quarter ever," commented 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. , co-chairman and chief executive officer of Andrx. "I am particularly pleased that this achievement was not brought about by sacrificing future growth. To the contrary, we set not only an earnings record, but an investment spending record. Investment spending creates exactly the conditions necessary to fuel our growth." 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," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the negative 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 those risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. Contact: Angelo C. Malahias, Vice President and Chief Financial Officer of Andrx Corporation, 4001 S.W. 47th Avenue, Fort Lauderdale, Florida Fort Lauderdale, known as the "Venice of America" due to its expansive and intricate canal system, is a city in Broward County, Florida, United States. The city's population is described as metropolitan, where diverse culture is commonplace. According to 2006 U.S. 33314, 954-584-0300. This release and additional information about Andrx Corporation are also available on the Internet at: http://www.andrx.com. Summary financial highlights are as follows: -0-
ANDRX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except for share and per share amounts)
Three Months Ended
March 31,
------------------------------
1999 1998
------------- -------------
Revenues
Distributed products $ 63,025 $ 48,080
Manufactured products 4,373 2,615
Stipulation fees 10,000 -
Licensing 526 -
------------- -------------
Total revenues 77,924 50,695
------------- -------------
Operating expenses
Cost of distributed products 50,569 40,939
Manufacturing costs 2,257 998
(including idle facility costs)
Selling, general and administrative 8,808 6,081
Research and development 4,405 3,096
Equity in losses of joint venture 148 298
Software development and
administrative 2,744 490
Legal settlement 545 -
------------- -------------
Total operating expenses 69,476 51,902
------------- -------------
Income (loss) from operations 8,448 (1,207)
Other income
Gain on sale of Cybear, Inc. shares 300 -
Interest income, net 212 247
------------- -------------
Income (loss) before income taxes 8,960 (960)
Income taxes 2,016 -
------------- -------------
Net income (loss) $ 6,944 $ (960)
============= =============
Basic net income (loss) per share $ 0.46 $ (0.06)
============= =============
Diluted net income (loss) per share $ 0.43 $ (0.06)
============= =============
Basic weighted average shares
of common stock outstanding 15,218,000 14,888,900
============= =============
Diluted weighted average shares
of common stock outstanding 16,156,300 14,888,900
============= =============
ANDRX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
--------------------------------------
March 31, December 31,
1999 1998
----------------- -----------------
Assets
Cash, cash equivalents and
investments available-for-sale $ 28,499 $ 23,092
Accounts receivable-net,
inventories and other current
assets 98,686 76,868
----------------- -----------------
Total current assets 127,185 99,960
Property, plant and equipment
- net and other assets 25,080 21,238
----------------- -----------------
Total assets $ 152,265 $ 121,198
================= =================
Liabilities and Shareholders'
Equity
Total current liabilities $ 71,169 $ 48,615
Total shareholders' equity 81,096 72,583
----------------- -----------------
Total liabilities and
shareholders' equity $ 152,265 $ 121,198
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