Andrx Reports Earnings For Three and Six Months Ended June 30, 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)--July 27, 2000 ANDRX CORPORATION (Nasdaq:ADRX ADRX Andrx Corporation (stock symbol) ) today announced its results for the three and six month periods ended June June: see month. 30, 2000. For the 2000 second quarter, Andrx reported net income of $16.7 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 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 $17.7 million or $0.27 per diluted share for the 1999 second quarter. For the six months ended June 30, 2000, Andrx reported net income of $33.1 million or $0.49 per diluted share, as compared to pro forma net income of $24.6 million or $0.38 per diluted share for the six months ended June 30, 1999. The 1999 periods are pro forma since they exclude the effect of the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a 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 payment of $50.7 million received in connection with the June 1999 resolution of 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), the Company's 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, (R) CD, the related royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. of $1.7 million paid to the Company's Co-Chairman and Chief Scientific Officer included within selling, general and administrative expenses, as well as the corresponding income tax effect of $17.9 million. Including those amounts, the Company's net income was $48.9 million or $0.75 per diluted share for the 1999 second quarter and $55.8 million or $0.87 per diluted share for the six months ended June 30, 1999. For the 2000 second quarter, sales from distributed products increased by 19.2% to $78.8 million, as compared to $66.1 million for the 1999 second quarter. Sales from manufactured products increased by 26.0% to $46.0 million for the 2000 second quarter, as compared to $36.5 million for the 1999 second quarter. Sales from manufactured products include Diltia XT(R), the Company's bioequivalent version of Dilacor Di·la·cor A trademark for the drug diltiazem hydrochloride. XR(R) for the 2000 and 1999 quarters and, Cartia XT(R) commencing June 23, 1999. In the 1999 second quarter, Andrx received $10.0 million in interim Stipulation fees. The Company generated $3.8 million of licensing and other revenues in the 2000 second quarter, as compared to $1.2 million in the 1999 second quarter. Gross profit from sales of distributed and manufactured products was $51.7 million, with a gross margin of 41.5% in the 2000 second quarter, as compared to $43.0 million, with a gross margin of 41.9% in the 1999 second quarter. The increase in gross profit is primarily the result of the increase in sales of manufactured products. Selling, general and administrative expenses were $14.3 million or 11.2% of total revenues for the quarter ended June 30, 2000, as compared to the pro forma $15.0 million or 13.2% of total revenues for the quarter ended June 30, 1999. Research and development expenses were $10.5 million in the 2000 second quarter, as compared to $6.2 million in the 1999 second quarter. The increase in research and development expenses of $4.2 million or 67.9% reflects the progress and expansion of the Company's development activities for 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. Through Cybear, Inc. (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 ) Andrx' majority owned e-healthcare connectivity A generic term for connecting devices to each other in order to transfer data back and forth. It often refers to network connections, which embraces bridges, routers, switches and gateways as well as backbone networks. , applications and portal provider subsidiary, the Company incurred $5.8 million of 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 operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the 2000 second quarter, as compared to $3.9 million in the 1999 second quarter. The increase in Internet operating expenses primarily relates to the continuing development of Internet applications and the establishment and expansion of the operational and administrative infrastructure of Cybear and also includes approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $900,000 in other non-recurring charges primarily consisting of costs incurred to resolve a dispute over performance under an agreement and termination of such agreement. The diluted weighted average shares of common stock outstanding were 68.2 million in the 2000 second quarter, as compared to 64.9 million for the 1999 second quarter. The increase in such diluted weighted average shares of common stock outstanding in the 2000 quarter, as compared to the comparable 1999 quarter resulted primarily from the Company's May 2000 public equity offering of 5.2 million shares. All shares and related per share calculations for all prior periods have been restated for the Company's April 2000 two-for-one stock split effected in the form of a 100% stock dividend. 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. , Andrx Co-Chairman and Chief Executive Officer stated, "Although we are pleased with this quarter's results, what's really exciting is what lies ahead. We now have nine generic Generic Describes the characteristics and/or experience of the total universe of a coupon of MBS sector type; that is, in contrast to a specific pool or collateral group, as in a specific CMO issue. products at 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. waiting to be approved and launched, and over 30 additional brand and generic drugs generic drug, a drug sold or prescribed under the nonproprietary name of its active ingredients or under a generally descriptive name rather than under a brand or trade name. in our R&D pipeline, and a state-of-the-art manufacturing facility. The Andrx team continues to methodically me·thod·i·cal also me·thod·ic adj. 1. Arranged or proceeding in regular, systematic order. 2. Characterized by ordered and systematic habits or behavior. See Synonyms at orderly. execute its business plan." 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, the Company is developing generic versions of selected high sales volume controlled-release brand name pharmaceuticals. In its NDA program, the Company is developing its own brand name formulations of certain existing drugs that it believes may be improved by the application of the Company's drug delivery technologies. The Company also markets and distributes pharmaceutical products manufactured by third parties and, through its Cybear subsidiary is developing Internet-based software and applications for the healthcare industry. 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.
ANDRX CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for share and per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999(1) 2000 1999(1)
------ ------ ------ ------
Pro forma Pro forma
Revenues
Distributed products $78,808 $66,108 $146,634 $129,133
Manufactured products 45,994 36,516 90,108 40,889
Stipulation fees - 10,000 - 20,000
Licensing and other 3,779 1,203 7,317 1,729
------ ------- ------ -------
Total revenues 128,581 113,827 244,059 191,751
------ ------- ------- -------
Operating expenses
Cost of goods sold 73,056 59,620 136,260 112,446
Selling, general and
administrative 14,338 15,029 25,880 24,620
Research and development 10,483 6,245 18,694 10,560
Cybear, Inc. Internet
operating expenses 5,826 3,945 12,997 6,740
------ ------- -------- -------
Total operating expenses 103,703 84,839 193,831 154,366
------ ------- -------- -------
Income from operations 24,878 28,988 50,228 37,385
Other income
Minority interest in
Cybear, Inc. 1,425 763 3,245 814
Investment income, net 2,563 54 3,620 566
------- ------- -------- -------
Income before income taxes 28,866 29,805 57,093 38,765
Income taxes 12,124 12,101 23,980 14,117
------- ------- -------- -------
Net income $16,742 $17,704 $33,113 $24,648
======= ======= ======== =======
Basic net income per share $0.26 $0.29 $0.51 $0.40
======= ======= ======== =======
Diluted net income per
share $0.25 $0.27 $0.49 $0.38
======= ======= ======== =======
Basic weighted average
shares of common stock
outstanding 65,485,200 61,227,900 64,348,900 61,050,700
========== ========== ========== ==========
Diluted weighted average
shares of common
stock outstanding 68,171,400 64,921,800 67,013,100 64,522,300
========== ========== ========== ==========
(1) The 1999 unaudited pro forma condensed consolidated statements of
income exclude the effects of the following (in thousands):
- The one-time retroactive Stipulation payment of $50,733
in connection with the resolution of the patent infringement
litigation involving Cartia XT(R).
- Selling, general and administrative expenses of approximately
$1,700 representing the royalty paid to the Company's
Co-Chairman and Chief Scientific Officer relating to the
one-time retroactive Stipulation payment.
- Income taxes of $17,857 resulting from the exclusion of the
Stipulation payment and the related royalty payment.
The 1999 unaudited pro forma condensed consolidated statements of
income reflect the Company's April 2000 two-for-one stock split
effected in the form of a 100% stock dividend. In addition, certain
prior year amounts have been reclassified to conform to the current
year presentation.
ANDRX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for share and per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999(1) 2000 1999(1)
------ ------ ------ ------
Revenues
Distributed products $78,808 $66,108 $146,634 $129,133
Manufactured products 45,994 36,516 90,108 40,889
Stipulation fees - 60,733 - 70,733
Licensing and other 3,779 1,203 7,317 1,729
------ ------- ------- -------
Total revenues 128,581 164,560 244,059 242,484
------ ------- ------- -------
Operating expenses
Cost of goods sold 73,056 59,620 136,260 112,446
Selling, general and
administrative 14,338 16,729 25,880 26,320
Research and development 10,483 6,245 18,694 10,560
Cybear, Inc. Internet
operating expenses 5,826 3,945 12,997 6,740
------ ------- ------- -------
Total operating expenses 103,703 86,539 193,831 156,066
------ ------- ------- -------
Income from operations 24,878 78,021 50,228 86,418
Other income
Minority interest in
Cybear, Inc. 1,425 763 3,245 814
Investment income, net 2,563 54 3,620 566
------- -------- -------- -------
Income before income taxes 28,866 78,838 57,093 87,798
Income taxes 12,124 29,958 23,980 31,974
------- -------- -------- -------
Net income $16,742 $48,880 $33,113 $55,824
======= ======== ======== =======
Basic net income per share $0.26 $0.80 $0.51 $0.91
======= ======== ======== =======
Diluted net income per share $0.25 $0.75 $0.49 $0.87
======= ======== ======== =======
Basic weighted average shares
of common stock
outstanding 65,485,200 61,227,900 64,348,900 61,050,700
========== ========== ========== ==========
Diluted weighted average
shares of common stock
outstanding 68,171,400 64,921,800 67,013,100 64,522,300
========== ========== ========== ==========
(1) Reflects the Company's April 2000 two-for-one stock split
effected in the form of a 100% stock dividend. Certain amounts
have been reclassified to conform to the current year
presentation.
ANDRX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2000 1999
--------- ------------
Assets
Cash, cash equivalents and
investments available-for-sale $347,083 $123,418
Accounts receivable-net,
inventories and other current
assets 185,223 180,903
---------- -------------
Total current assets 532,306 304,321
Property, plant and equipment
- net and other assets 79,868 53,633
---------- --------------
Total assets $612,174 $357,954
========== ==============
Liabilities and Shareholders' Equity
Total liabilities and
minority interest $118,084 $136,982
Total shareholders' equity 494,090 220,972
---------- --------------
Total liabilities and
shareholders' equity $612,174 $357,954
========== ==============
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