CORRECTING and REPLACING E-Z-EM Reports Record Second Quarter Net Sales; Conference Call to Begin at 11:00 a.m. EST, Friday, January 9.Business Editors/Health/Medical Writers CORRECTION...by E-Z-EM, Inc. LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Jan. 8, 2004 In BW5789 issued Jan. 8, 2004: Second graph after bulleted bul·let·ed adj. Printing Highlighted or set off with bullets: a bulleted list. highlights should read: Gross profit increased 10% to $16.5 million compared with $15.1 million in the second quarter of fiscal 2003, for a $1.4 million improvement. As a percentage of net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight , gross profit decreased to 44.8% from 45.8% in the year-ago quarter, principally due to lower gross profit as a percentage of sales in the AngioDynamics segment. The AngioDynamics gross profit in the comparable quarter of the prior year was favorably affected by an inventory valuation adjustment. The AngioDynamics gross profit in the current quarter was affected by sales price erosion and an increased provision for inventory reserves. (sted: Gross profit increased 27% to $6.1 million, compared with $4.8 million last year, for a $1.3 million improvement. As a percentage of net sales, gross profit decreased to 51.4% from 54.7% in the year-ago quarter, which was favorably impacted by an inventory valuation adjustment. The current quarter was impacted by sales price erosion and an increased provision for inventory reserves.) The corrected release reads: E-Z-EM REPORTS RECORD SECOND QUARTER NET SALES; CONFERENCE CALL TO BEGIN AT 11:00 A.M. EST EST electroshock therapy. EST abbr. electroshock therapy , FRIDAY, JANUARY 9 E-Z-EM, Inc. (AMEX AMEX See: American Stock Exchange :EZM) today announced financial results for the three- and six-month periods ended November 29, 2003. Financial highlights of the fiscal second quarter 2004 include the following: -- Net sales up 12% to a record $36.9 million; -- Net earnings up 79% to $1.8 million; -- Earnings per diluted share up 89% to $0.17. Other highlights for the second quarter and recent weeks include: -- The U.S. launch by the Company's AngioDynamics subsidiary of the AquaLiner(TM) hydrophilic hydrophilic /hy·dro·phil·ic/ (-fil´ik) readily absorbing moisture; hygroscopic; having strongly polar groups that readily interact with water. hy·dro·phil·ic adj. Ni-Ti alloy guidewire; -- Announcement by E-Z-EM, Inc. of a study supporting adoption of virtual colonoscopy virtual colonoscopy n. A screening examination of the colon in which x-rays obtained by CAT scan are used to generate computerized three-dimensional images of the colonic mucosa. as a screening modality for colon cancer colon cancer, cancer of any part of the colon (often called the large intestine). Colon cancer is the second most common cancer diagnosed in the United States. presented at the 89th Annual Scientific Assembly of the Radiological Society of North America The Radiological Society of North America (RSNA), founded in 1915, has the purpose to "promote and develop the highest standards of radiology and related sciences through education and research". and published in the New England Journal of Medicine. For the fiscal 2004 second quarter ending November 29, 2003, net sales rose 12% to $36.9 million, compared with $32.9 million in the fiscal 2003 second quarter. These results reflect continued growth in the Company's AngioDynamics subsidiary in the peripheral vascular and other non-coronary diseases sector and strong sales of diagnostic products for the computed tomography Computed tomography (CT scan) X rays are aimed at slices of the body (by rotating equipment) and results are assembled with a computer to give a three-dimensional picture of a structure. (CT) market. Net earnings for the second quarter rose 79% to $1.8 million, compared with $988,000 in the prior-year quarter, and diluted EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. rose 89% to $0.17, compared with $0.09 in the second quarter of fiscal 2003. Fiscal 2004 second quarter net earnings include gains on the sales of securities of $336,000, or $0.03 per diluted share. Gross profit increased 10% to $16.5 million compared with $15.1 million in the second quarter of fiscal 2003, for a $1.4 million improvement. As a percentage of net sales, gross profit decreased to 44.8% from 45.8% in the year-ago quarter, principally due to lower gross profit as a percentage of sales in the AngioDynamics segment. The AngioDynamics gross profit in the comparable quarter of the prior year was favorably affected by an inventory valuation adjustment. The AngioDynamics gross profit in the current quarter was affected by sales price erosion and an increased provision for inventory reserves. Fiscal 2004 second quarter 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. were $14.2 million, up 5% from $13.6 million in the prior-year quarter. Current quarter results include an expense of $628,000 ($0.05 per share) related to the previously announced plan to close later this year the Company's device manufacturing facility in Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. and its heat-sealing operation in Westbury, N.Y. In the prior-year quarter, the Company recorded an expense of $106,000 ($0.01 per share) associated with the recapitalization of its common stock. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. rose 55% to $2.3 million in the second quarter of fiscal 2004, compared with $1.5 million in the second quarter of fiscal 2003. Other income in the current quarter was $449,000, which includes the gains on sales of securities noted above, compared with other income of $97,000 in the prior-year quarter. Commenting on the quarterly results, Anthony A. Lombardo, E-Z-EM president and chief executive officer, said, "We had an excellent quarter with increased sales in each of our two radiology business segments representing a continuation of trends in peripheral vascular and other non-coronary disease therapeutic applications and in CT imaging, all of which are driving overall market growth. Our AngioDynamics subsidiary performed solidly during the quarter, with sales up 35% over the comparable prior-year quarter. "We continue to make progress in transferring our device manufacturing and heat-sealing operations to a third-party manufacturer. The plan is on time and on budget. As previously announced, we anticipate taking charges of approximately $700,000 related to this initiative in the remaining quarters of this fiscal year, and we expect to begin realizing the related benefits in fiscal year 2005," he added. For the first half of fiscal 2004, net sales increased 11% to a record $70 million, compared with $63.2 million for the first half of fiscal 2003. Net earnings for the first six months of fiscal 2004 were $1.5 million, or $0.14 per diluted share, compared with net earnings of $247,000, or $0.02 per diluted share, for the first six months of fiscal 2003. Operating expenses for the current six-month period were $28.1 million, up 4% from $27.2 million in the comparable prior-year period. The results for the fiscal 2004 six-month period include $1.2 million ($0.10 per share) of expenses related to the previously announced plant closing and operational restructuring. Results for the comparable fiscal 2003 period include $688,000 ($0.07 per share) related to the common stock recapitalization. Operating profit increased sharply to $2.4 million in the first half of fiscal 2004, compared with $390,000 in the comparable fiscal 2003 period. Cash, cash equivalents and short-term marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has at November 29, 2003 were $16.0 million, versus $16.4 million at August 30, 2003 and $18.0 million at May 31, 2003. Conference Call E-Z-EM management will host a conference call to discuss these results on Friday, January 9, 2004 at 11:00 a.m. Eastern Standard Time. To participate, dial (877) 815-7177 from the U.S., or (706) 679-0753 from outside the U.S. A telephone replay of the call will be accessible for 48 hours following completion of the call by dialing (800) 642-1687 or (706) 645-9291, and entering reservation number 4734480. About E-Z-EM, Inc. E-Z-EM is the world's largest manufacturer of contrast agents for gastrointestinal radiology. The Company has developed the only CT injector on the market that can help detect contrast extravasation extravasation /ex·trav·a·sa·tion/ (ek-strav?ah-za´shun) 1. a discharge or escape, as of blood, from a vessel into the tissues; blood or other substance so discharged. 2. the process of being extravasated. , the EmpowerCT(R) with patented EDA (1) (Electronic Design Automation) Using the computer to design, lay out, verify and simulate the performance of electronic circuits on a chip or printed circuit board. (TM) technology; it also offers a complete product set for the virtual colonoscopy practitioner. This product line consists of virtual colonoscopy hardware, software, nutritional prep kits and bowel cleaners, tagging agents and a carbon dioxide carbon dioxide, chemical compound, CO2, a colorless, odorless, tasteless gas that is about one and one-half times as dense as air under ordinary conditions of temperature and pressure. colon insufflation insufflation /in·suf·fla·tion/ (-sah-fla´shun) 1. the act of blowing a powder, vapor, or gas into a body cavity. 2. finely powdered or liquid drugs carried into the respiratory passages by such devices as aerosols. system. E-Z-EM's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , AngioDynamics, manufactures a wide range of products including angiographic, dialysis, PTA PTA or parent-teacher association: see parent education. dilation dilation /di·la·tion/ (di-la´shun) 1. the act of dilating or stretching. 2. dilatation. di·la·tion n. 1. , thrombolytic thrombolytic /throm·bo·lyt·ic/ (throm?bo-lit´ik) dissolving or splitting up a thrombus, or an agent that so acts. thrombolytic 1. dissolving or splitting up a thrombus. 2. an agent that dissolves or splits up a thrombus. , image-guided vascular access vascular access Clinical medicine The ability to enter the vascular system; the ease with which the vascular system can be entered for administering therapy or obtaining blood for testing , endovascular laser venous system, as well as abdominal infection drainage products. AngioDynamics' focus is on therapeutic products that enable interventional physicians to treat peripheral vascular diseases Peripheral Vascular Disease Definition Peripheral vascular disease is a narrowing of blood vessels that restricts blood flow. It mostly occurs in the legs, but is sometimes seen in the arms. and other non-coronary diseases. The statements made in this document contain certain forward-looking statements that involve a number of risks and uncertainties. Words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," or variations of such words and similar expressions, are intended to identify such forward-looking statements. Investors are cautioned that actual events or results may differ from the Company's expectations. In addition to the matters described above, the ability of the Company to develop its products, market acceptance of virtual colonoscopy as a new imaging procedure, the impact, if any, of the Pickhardt study published in the New England Journal of Medicine The New England Journal of Medicine (New Engl J Med or NEJM) is an English-language peer-reviewed medical journal published by the Massachusetts Medical Society. It is one of the most popular and widely-read peer-reviewed general medical journals in the world. , market acceptance of the AquaLiner(TM) hydrophilic Ni-Ti alloy guidewire, the size and quantity of orders for RSDL (Reverse Spiral Dual Layer) A technique used with dual-layer DVD discs that allows the end of the first layer to seamlessly connect to the second layer. The first layer is recorded from the inside out, and the second layer is recorded from the outside in. , successful completion of the Company's Manufacture, Streamlining and Reduction program, future actions by 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. or other regulatory agencies, results of pending or future clinical trials, overall economic conditions, general market conditions, market acceptance, foreign currency exchange rate fluctuations, the effects on pricing from Group Purchasing Organizations, competition, including alternative procedures which continue to replace traditional fluoroscopic Fluoroscopic (fluoroscopy) An x-ray procedure that produces immediate images and motion on a screen. The images look like those seen at airport baggage security stations. Mentioned in: Hypotonic Duodenography procedures, as well as the risk factors listed from time to time in the SEC filings of E-Z-EM, Inc., including but not limited to its Form 10-Q Form 10-Q See 10-Q. for the quarter ended August 30, 2003, as well as its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended May 31, 2003, may affect the actual results achieved by the Company.
E-Z-EM, Inc. and Subsidiaries
Consolidated Balance Sheet Highlights
(in thousands)
November 29, May 31,
2003 2003
(unaudited) (1)
Assets
Current Assets
Cash, Cash Equivalents and
Debt and Equity Securities $ 16,038 $ 17,965
Restricted cash 220 798
Accounts Receivable, Net 25,370 23,393
Inventories 30,662 28,467
Other Current Assets 4,723 4,703
Total Current Assets 77,013 75,326
Property, Plant & Equipment -- at Cost, Net 24,322 23,457
Other Non-Current Assets 13,490 11,841
Total Assets $ 114,825 $ 110,624
Liabilities and Stockholders' Equity
Current Liabilities $ 16,201 $ 15,203
Long-Term Liabilities 6,844 6,819
Stockholders' Equity 91,780 88,602
Total Liabilities and Stockholders' Equity $ 114,825 $ 110,624
(1) Information derived from audited financial statements.
E-Z-EM, Inc. and Subsidiaries
Consolidated Income Statement Highlights
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
Nov. 29, Nov. 30, Nov. 29, Nov. 30,
2003 2002 2003 2002
Net Sales
E-Z-EM $ 25,287 $ 24,328 $ 47,929 $ 46,511
AngioDynamics 11,851 8,768 22,481 17,096
Eliminations (200) (196) (415) (427)
36,938 32,900 69,995 63,180
Gross Profit (Loss)
E-Z-EM 10,475 10,235 18,881 18,568
AngioDynamics 6,092 4,793 11,627 8,961
Eliminations (18) 44 10 40
16,549 15,072 30,518 27,569
Gross Profit as a
Percent of Sales 44.8 45.8 43.6 43.6
Operating Expenses
E-Z-EM (1) 9,310 9,564 (2) 18,652 19,572
AngioDynamics 4,905 3,999 9,497 7,607
14,215 13,563 28,149 27,179
Operating Profit (Loss)
E-Z-EM (1) 1,165 671 (2) 229 (1,004)
AngioDynamics 1,187 794 2,130 1,354
Eliminations (18) 44 10 40
2,334 1,509 2,369 390
Other Income (Expense) 449 97 415 414
Earnings Before Income Taxes 2,783 1,606 2,784 804
Income Tax Provision 1,014 618 1,314 557
Net Earnings $ 1,769 $ 988 $ 1,470 $ 247
Earnings per Common Share
Basic $ 0.17 $ 0.10 $ 0.14 $ 0.02
Diluted $ 0.17 $ 0.09 $ 0.14 $ 0.02
Weighted Average Common Shares
Basic 10,272 10,017 10,217 10,005
Diluted 10,545 10,406 10,475 10,403
(1) Current quarter amount includes plant closing and operational
restructuring costs of $628,000; prior quarter amount includes costs
associated with the Company's common stock recapitalization of
$106,000.
(2) Current six-month amount includes plant closing and
operational restructuring costs of $1,200,000; prior six-month amount
includes costs associated with the Company's common stock
recapitalization of $688,000.
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