Biovail Reports Record 2000 First Quarter Financial Results.Business Editors, Health/Medical Writers TORONTO--(BW HealthWire)--April 27, 2000 Biovail Biovail TSX: BVF NYSE: BVF is Canada's largest pharmaceutical company, operating internationally in all aspects of pharmaceutical products. Its major production facility is located in Steinbach, Manitoba. Corporation (NYSE NYSE See: New York Stock Exchange :BVF BVF Biovail Corporation (stock symbol) BVF Berufsverband der Frauenärzte eV (Muenchen, Germany) BVF Bearing Versus Frequency )(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :BVF) today reported record financial results under US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). for the period ended March 31, 2000. Revenue for the first quarter of 2000 increased 70% to $46.9 million, compared with $27.6 million reported for the first quarter of 1999. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter increased to $14.2 million, a 32% improvement over the $10.8 million earned in the first quarter of 1999. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of before extraordinary items increased 27% to $0.19 per share. The Company has historically reported its consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP). Beginning with the period ended March 31, 2000 the Company has begun to report its financial results in accordance with United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. GAAP. Historical consolidated results have been restated to reflect this change. The decision to provide US GAAP financial results was driven by the Company's desire to make it easier for the majority of its shareholders to assess the Company's financial performance by using accounting rules that are more familiar to these shareholders. This presentation is also more consistent with the presentation of financial results of most of the Company's industry customers and competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. . Consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge in accordance with Canadian GAAP (in US dollars) will be made available to all shareholders upon request and will be filed with the Canadian regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities . During the quarter, the Company repurchased all of its outstanding 10 7/8% Senior Notes at a premium resulting in an extraordinary charge of $20.0 million. Income before this extraordinary item for the three months ended March 31, 2000 was $13.1 million, or $0.19 per share on a 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. basis, an increase of 77% over income before extraordinary items of $7.4 million, or $0.15 per share on a diluted basis, in the comparable period of 1999. After deducting the extraordinary item, the net loss for the first quarter of 2000 was $6.9 million, or $0.10 per share on a diluted basis, compared to net income of $7.4 million, or $0.15 per share on a diluted basis, in 1999. Eugene Melnyk Eugene Melnyk (born May 27, 1959 in Toronto, Ontario) is a Canadian businessman of Ukrainian origin who now resides in Barbados. He is the chairman and chief executive officer of Biovail Corporation. , Chairman of the Board, commented, "Biovail's 70% increase in total revenues is primarily due to the launch of several new products including 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. versions of Voltaren Vol·ta·ren A trademark for the drug diclofenac potassium. diclofenac sodium Voltaren, Voltaren XR Pharmacologic class: Cyclooxygenase inhibitor, nonsteroidal anti-inflammatory drug (NSAID) XR and Adalat Ad·a·lat A trademark for the drug nifedipine. CC 30 mg and the first commercial launch of a product utilizing Biovail's flash dose technology. The success of Biovail's recent offerings allowed the Company to retire retire v. 1) to stop working at one's occupation. 2) to pay off a promissory note, and thus "retire" the loan. 3) for a jury to go into the jury room to decide on a verdict after all evidence, argument and jury instructions have been completed. its 10 7/8% Senior Notes and leaves the Company well positioned to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. strategic opportunities." Biovail Corporation is an international full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. pharmaceutical company, engaged in the formulation formulation /for·mu·la·tion/ (for?mu-la´shun) the act or product of formulating. American Law Institute Formulation , clinical testing, registration and manufacture of drug products utilizing advanced drug delivery technologies. "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 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. To the extent any statements made in this release contain information that is not historical, these statements are essentially forward looking and are subject to risks and uncertainties, including the difficulty of predicting 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. and TPD TPD Tons Per Day TPD Therapeutic Products Directorate TPD Total and Permanent Disablement (insurance) TPD Temperature Programmed Desorption TPD Temporary Partial Disability (insurance) approvals, acceptance and demand for new pharmaceutical products, the impact of competitive products and pricing, new product development and launch, reliance on key strategic alliances, availability of raw materials, the regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. -0-
BIOVAIL CORPORATION
CONSOLIDATED BALANCE SHEETS
In Accordance with United States Generally Accepted
Accounting Principles
(All dollar amounts are expressed in thousands of U.S. dollars)
(Unaudited)
March 31, December 31,
2000 1999
-------------- --------------
ASSETS
CURRENT
Cash and cash equivalents $ 475,670 $ 178,086
Short-term investments 19,547 65,893
Accounts receivable 75,577 60,571
Inventories 18,130 12,701
Assets held for disposal - 20,000
Deposits and prepaid expenses 1,984 3,172
-------------- --------------
590,908 340,423
LONG-TERM INVESTMENTS 3,190 12
PROPERTY, PLANT AND EQUIPMENT, net 47,193 45,300
OTHER ASSETS, net 89,878 86,478
-------------- --------------
$ 731,169 $ 472,213
-------------- --------------
-------------- --------------
LIABILITIES
CURRENT
Accounts payable $ 26,521 $ 22,685
Accrued liabilities 26,813 31,107
Income taxes payable 3,412 3,585
Customer prepayments 4,473 4,962
Deferred tax liability 336 336
Current portion of long-term debt 1,318 12,016
-------------- --------------
62,873 74,691
DEFERRED TAX LIABILITY 4,614 4,698
CONVERTIBLE SUBORDINATED PREFERRED
EQUIVALENT DEBENTURES 300,000 -
LONG-TERM DEBT - 125,488
-------------- --------------
367,487 204,877
-------------- --------------
SHAREHOLDERS' EQUITY
Share capital 475,470 373,962
Warrants 8,244 8,244
Warrant subscription receivable (1,005) (2,287)
Deficit (120,741) (113,843)
Accumulated other comprehensive
income 1,714 1,260
-------------- --------------
363,682 267,336
-------------- --------------
$ 731,169 $ 472,213
-------------- --------------
-------------- --------------
BIOVAIL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
In Accordance with United States Generally Accepted
Accounting Principles
(All dollar amounts except per share data are expressed
in thousands of U.S. dollars)
(Unaudited)
Three Months Ended
March 31,
----------------------
2000 1999
-------------- --------------
REVENUE
Product sales $ 33,631 $ 12,562
Research and development 10,501 6,077
Royalty and licensing 2,728 8,952
-------------- --------------
46,860 27,591
-------------- --------------
EXPENSES
Cost of goods sold 11,035 5,039
Research and development 11,766 5,324
Selling, general and
administrative 9,839 6,468
-------------- --------------
32,640 16,831
-------------- --------------
OPERATING INCOME 14,220 10,760
INTEREST EXPENSE, net (266) (2,792)
-------------- --------------
INCOME BEFORE INCOME TAXES 13,954 7,968
PROVISION FOR INCOME TAXES 813 533
-------------- --------------
INCOME BEFORE EXTRAORDINARY ITEM 13,141 7,435
EXTRAORDINARY ITEM - Premium paid on
early extinguishment of U.S.
Dollar Senior Notes (20,039) -
-------------- --------------
NET INCOME (LOSS) $ (6,898) $ 7,435
-------------- --------------
-------------- --------------
EARNINGS (LOSS) PER SHARE - Basic
Income before extraordinary item $ 0.21 $ 0.15
Extraordinary item (0.32) -
-------------- --------------
Net income (loss) $ (0.11) $ 0.15
-------------- --------------
-------------- --------------
EARNINGS (LOSS) PER SHARE - Diluted
Income before extraordinary item $ 0.19 $ 0.15
Extraordinary item (0.29) -
-------------- --------------
Net income (loss) $ (0.10) $ 0.15
-------------- --------------
-------------- --------------
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
Basic 62,792,000 49,207,000
-------------- --------------
-------------- --------------
Diluted 70,261,000 50,388,000
-------------- --------------
-------------- --------------
BIOVAIL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Accordance with United States Generally Accepted
Accounting Principles
(All dollar amounts are expressed in thousands of U.S. dollars)
(Unaudited)
Three Months Ended
March 31,
----------------------
2000 1999
-------------- --------------
NET INFLOW (OUTFLOW) OF
CASH RELATED TO THE FOLLOWING
ACTIVITIES
OPERATING
Net income (loss) $ (6,898) $ 7,435
Depreciation and amortization 5,540 1,489
Deferred income tax provision (84) -
Extraordinary item - Premium
paid on early extinguishment
of U.S. Dollar Senior Notes 20,039 -
Compensation cost for employee
stock options - 281
-------------- --------------
18,597 9,205
Change in non-cash operating
items (20,609) 7,152
-------------- --------------
(2,012) 16,357
-------------- --------------
INVESTING
Additions to property, plant
and equipment, net (3,929) (1,611)
Sale of short-term
investments, net 46,346 -
Acquisition of long-term
investments (2,285) -
Proceeds from assets held
for disposal 17,000 -
Decrease in other assets 261 -
Advance of executive stock
purchase plan loans - (52)
-------------- --------------
57,393 (1,663)
-------------- --------------
FINANCING
Issuance of share capital 102,298 1,424
Repurchase of share capital - (14,933)
Issuance of convertible
subordinated preferred
equivalent debentures, net
of financing costs 290,312 -
Repurchase of U.S. Dollar
Senior Notes (141,017) -
Reduction in other long-term debt (10,651) (300)
Collection of warrant
subscription receivable 1,282 640
-------------- --------------
242,224 (13,169)
-------------- --------------
EFFECT OF EXCHANGE RATE CHANGES
ON CASH (21) (548)
-------------- --------------
INCREASE IN CASH AND CASH
EQUIVALENTS 297,584 977
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD 178,086 78,279
-------------- --------------
CASH AND CASH EQUIVALENTS, END OF
PERIOD $ 475,670 $ 79,256
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