Bentley Pharmaceuticals Reports Profitable Fourth Quarter and Improved Results for Year Ended December 31, 1999; Announces Redemption of 12% Convertible Debentures.Business Editors NORTH HAMPTON North Hampton is the name of several places in the United States:
Bentley Pharmaceuticals, Inc. (AMEX AMEX See: American Stock Exchange : BNT BNT Bentley Pharmaceuticals, Inc. (stock symbol) BNT Boston Naming Test (psychology) BNT Bermuda National Trust BNT Bulgarian National TV BNT Broadband Network Termination BNT Binary File Transfer ), a U.S.-based drug delivery company with a commercial presence in Europe where it markets branded and generic products, reported today that it achieved profitability for the fourth quarter ended December 31, 1999, the first profitable quarter in the Company's history. For the fourth quarter, the company reported net income of $97,000, or $.01 per basic and 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. common share on revenues of $5,954,000, versus a net loss of $516,000 or $.06 per basic and diluted common share on revenues of $4,711,000 for the same quarter of 1998. Net loss for 1999 was reduced to $1,090,000 or $.12 per basic and diluted common share from $2,876,000 or $.35 per basic and diluted common share in 1998, and revenues increased to $20,249,000 from $15,243,000. The net loss for 1998 would have been $1,700,000, or $.21 per basic and diluted common share, excluding the effect of a non-recurring charge of $1,176,000, representing the writeoff of abandoned acquisition costs. The weighted average number of common shares outstanding was 9,147,000 in 1999 as compared with 8,431,000 in 1998. James R. Murphy, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Bentley, remarked, "Results for the fourth quarter represent the initial success of our turnaround strategy for Bentley. We anticipate that results for 2000 and beyond will continue to benefit from increased acquisitions and approvals of pharmaceutical products, a strengthened financial foundation and our ambitious plans to realize the commercial potential of our patented and proprietary drug delivery/permeation enhancement technologies. Management has been diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d setting the stage to grow our company and achieve profitability and the results of those efforts are paying off. Income from operations totaled $550,000 for the fourth quarter of 1999 compared to a loss from operations of $440,000 in the same quarter of the prior year," Murphy said. The gain in revenues for the year reflects an increase in revenues of the company's Spanish subsidiary, Laboratorios Belmac S. A., which rose 41 percent in local currency and 33 percent when expressed in U. S. dollars, due to the weak Euro in relation to the Dollar. The Company continues to add additional products to its portfolio for commercialization in Europe and expects revenues to continue to increase in the year 2000. Although Bentley Pharmaceuticals currently operates primarily in Europe, the Company expects to significantly expand its presence in the U.S. through the development of its technologies covering methods to enhance the absorption of drugs delivered to biological tissues by oral, dermal dermal /der·mal/ (der´mal) pertaining to the dermis or to the skin. der·mal or der·mic adj. Of or relating to the skin or dermis. , ocular ocular /oc·u·lar/ (ok´u-lar) 1. of, pertaining to, or affecting the eye. 2. eyepiece. oc·u·lar adj. 1. Of or relating to the eye or the sense of sight. and other routes. The Company also announced that it is calling for redemption (at 105% of par plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. , which equals $1,050 per $1,000 debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. plus accrued interest), of all of the outstanding 12% Convertible Senior Subordinated Debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before due February 13, 2006 (the "Debentures"). The Debentures are convertible into common stock of the Company at any time prior to the redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. at a conversion price of $2.50 per share. Therefore, upon conversion, each $1,000 principal amount of debentures is convertible into 400 shares of the Company's common stock. There is approximately $6,985,000 in principal of Debentures currently outstanding. As long as the market price of the Company's common stock is more than $2.625 per share, holders, upon conversion, will receive common stock having a greater market value than the cash they would receive upon redemption. The conversion/redemption of the Debentures will eliminate essentially all of the Company's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and result in reduction of interest expense of approximately $1 million per year. The paying agent Paying Agent An agent who accepts payments from the issuer of a security and then distributes the payments to the holders of the security. Also known as a "disbursing agent. for the redemption will be American Stock Transfer & Trust Company. The redemption will be effective after the close of trading on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. on April 12, 2000. The Company's Board of Directors has decided not to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. the Company's Class B Warrants at this time, even though the Common Stock is trading at a price which would permit such redemption. The Company reserves the right to revisit re·vis·it tr.v. re·vis·it·ed, re·vis·it·ing, re·vis·its To visit again. n. A second or repeated visit. re this issue in the future, depending on market conditions and the cash requirements of the Company. Mr. Murphy stated, "Given our current performance, we expect the year 2000 to be Bentley's first ever profitable year even without redemption of the Debentures. The elimination of the related interest expense beyond the redemption date will add significantly to our already projected profitability." Bentley Pharmaceuticals, Inc. is a drug delivery company focused on improving the absorption of a wide range of drugs through its drug delivery technologies and manufactures and markets products in Europe for the treatment of cardiovascular, gastrointestinal, neurological neurological, neurologic pertaining to or emanating from the nervous system or from neurology. neurological assessment evaluation of the health status of a patient with a nervous system disorder or dysfunction. and infectious diseases infectious diseases: see communicable diseases. . 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. Statement Safe Harbor Statement under 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: The statements which are not historical facts contained in this press release are 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. that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, the ability to find effective market distribution channels, development of new products, regulatory approval processes, the impact of competitive products or pricing, unpredictability of patent protection, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission. Copies of the Company's press releases and other information may be obtained through Bentley's web site at www.bentleypharm.com.
BENTLEY PHARMACEUTICALS, INC.
Financial Highlights
(In thousands except per share data)
For the Three Months For the Year
Ended Ended
--------------------- ----------------
12/31/99 12/31/98 12/31/99 12/31/98
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(Unaudited)
Sales $5,954 $4,711 $20,249 $15,243
Cost of sales 2,375 2,121 8,445 6,601
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Gross margin 3,579 2,590 11,804 8,642
Recurring operating expenses 3,029 3,030 11,226 9,534
Non-recurring charge --- --- --- 1,176
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Total operating expenses 3,029 3,030 11,226 10,710
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Income (loss) from operations 550 (440) 578 (2,068)
Other income and expense, net 207 160 887 572
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Income (loss) before income taxes 343 (600) (309) (2,640)
Provision (benefit) for income taxes 246 (84) 781 236
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Net income (loss) $97 ($516) ($1,090)($2,876)
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Income (loss) per common share:
Excluding non-recurring charge $0.01 ($0.06) ($0.12) ($0.21)
Non-recurring charge --- --- --- (0.14)
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Basic and diluted net
Income (loss) per common share $0.01 ($0.06) ($0.12) ($0.35)
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Weighted average common shares
outstanding 10,151 8,439 9,147 8,431
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BENTLEY PHARMACEUTICALS, INC.
Condensed Consolidated Balance Sheets
(In thousands)
December 31,
1999 1998
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Assets
Cash, cash equivalents and marketable securities $ 6,315 $ 6,703
Other current assets 5,374 5,758
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Total current assets 11,689 12,461
Non-current assets 10,548 7,857
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Total $ 22,237 $ 20,318
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Liabilities and Stockholders' Equity
Current liabilities $ 5,197 $ 5,626
Non-current liabilities 5,466 5,700
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Total liabilities 10,663 11,326
Redeemable preferred stock --- ---
Stockholders' equity 11,574 8,992
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Total $ 22,237 $ 20,318
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