Catalytica Reports First Quarter Financial Results.Business Editors/Health & Medical Writers MOUNTAIN VIEW, Calif.--(BW HealthWire)--April 24, 2000 Catalytica, Inc. (Nasdaq:CTAL CTAL Confederacion de Trabajadores de America Latina (Confederation of Latin American Workers) CTAL Canadian Tire Acceptance Limited CTAL Computer Technology Application Lab, Inc. CTAL Confidentially Typed Assembly Language ) today reported financial results for the first quarter ended March 31, 2000. The financial results have been restated for all periods presented to reflect the acquisition of Wyckoff Chemical Company, which has been accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. and was completed on September 20, 1999. Total revenues for the first quarter of 2000 rose to $98,694,000 from $95,924,000 reported during the same period last year. Net income before taxes also increased to $10,235,000 during the first quarter compared with $7,483,000 in the first quarter of the previous year. A modest decline in net income after tax was due to an expected increase in Catalytica's tax rate from 15% in the first quarter of 1999, to 39% in the first quarter of 2000. Net income was $6,240,000 compared with net income of $6,372,000 for the first quarter of the prior year. Earnings per share remained unchanged over the same period last year at $0.09 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. A notable increase in research revenues to $11,230,000 for the first quarter ended March 31, 2000, compared with $5,313,000 reported during the same period of the previous year helped to offset a slight decline in product sales. This increase was primarily associated with increased demand for the Company's pharmaceutical development services. Product sales were impacted by an increase in Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 build during the fourth quarter last year which resulted in reduced product In model theory, a branch of mathematical logic, the reduced product is a construction that generalizes both direct product and ultraproduct. demand in the first quarter of 2000. Revenue from new contracts nearly offset the scheduled decline in revenues from the planned step-down of business from an original supply agreement with Glaxo Wellcome that resulted from Catalytica's purchase of Glaxo's Greenville, North Carolina
Greenville, one of the fastest growing cities in North Carolina, is the county seat of Pitt County, and is the principal city of the Greenville, North Carolina Metropolitan Statistical Area. facility. President and Chief Executive Officer, Ricardo B. Levy, commented, "In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite additional pressure on our top line product sales due to Y2K, we were able to grow our revenue as a result of strong demand for our research services. Additionally, our new contract revenue offset the scheduled removal of Glaxo products. Also noteworthy, we grew our pre-tax income by over 36%. This of course does not directly transfer to the bottom line since we have used up our net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. and as a result our tax rate increased from 15% in the first quarter of 1999 to 39% for the quarter reported." Mr. Levy continued, "We also recently announced our intent to conduct an initial public offering of a minority interest in our Catalytica Combustion combustion, rapid chemical reaction of two or more substances with a characteristic liberation of heat and light; it is commonly called burning. The burning of a fuel (e.g., wood, coal, oil, or natural gas) in air is a familiar example of combustion. Systems subsidiary. This offering will provide additional funding to further develop our Xonon Cool Combustion system for gas turbine turbine, rotary engine that uses a continuous stream of fluid (gas or liquid) to turn a shaft that can drive machinery. A water, or hydraulic, turbine is used to drive electric generators in hydroelectric power stations. applications and to explore other important combustion applications. It will also provide an independent valuation of Catalytica Combustion Systems to enable us to offer better recognition of value of our subsidiary businesses for our shareholders. Additionally, we announced last week that we have secured another order for Xonon-equipped gas turbines. We are very pleased that Xonon has been chosen as the best emissions control Emissions control may refer to:
n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. solution for near-zero emissions power production and who view our technology as the most attractive and viable option to meet these needs." Catalytica's first major order for Xonon occurred in December 1999 when Enron North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , a subsidiary of Enron Corp., ordered Xonon-equipped GE 7FA turbines for its Pastoria Project in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . In conjunction with that order, Catalytica agreed to invest $9.90 million to accelerate development of the Xonon-equipped GE gas turbines with 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 that it would recover its investment from Enron in late 2000. Enron and Catalytica recently reached an agreement in principle whereby Enron will refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies ahead of schedule the advances paid to Enron by Catalytica. As a result, Catalytica reversed a charge to research and development that it had incurred in the fourth quarter of 1999. Catalytica, Inc. finds new pathways to improve processes -- reducing time, waste and costs. It operates through three subsidiaries: Catalytica Pharmaceuticals, Catalytica Combustion Systems, and Catalytica Advanced Technologies. Catalytica Pharmaceuticals applies innovative and patented catalytic cat·a·lyt·ic adj. Of, involving, or acting as a catalyst: "Deregulation's catalytic power . . . is still reshaping the banking, communications, and transportation industries" Ellyn E. technologies and other chemical processes to improve the steps for manufacturing pharmaceuticals and finds better and more efficient ways to produce products in commercial scale quantities. Catalytica Combustion Systems' unique Xonon Cool Combustion technology enables gas turbines to produce essentially pollution-free power. Catalytica Advanced Technologies serves as the incubator incubator, apparatus for the maintenance of controlled conditions in which eggs can be hatched artificially. Incubator houses with double walls of mud, a fireroom, and several compartments each holding about 6,000 hens' eggs were developed in ancient times; the for new catalytic technologies for industrial applications. Catalytica employs over 1600 people and had 1999 revenues of $424 million. Find Catalytica on the World Wide Web at http://www.catalytica-inc.com. This news release contains 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. regarding Catalytica's future performance and Catalytica's competitive position in its markets. Such forward-looking statements include the prospects for our business, the market demand of our products, the benefits from our agreements, obtaining additional XONON orders, securing additional manufacturing business through our research and development associations with our customers, our future ability to obtain new Catalytica Pharmaceuticals' customers, the future performance of the XONON system, and the proposed initial public offering for Catalytica Combustion Systems. Actual results may differ and such differences may be material from those anticipated in such forward-looking statements. These statements involve risks and uncertainties, including without limitation the ability of Catalytica Pharmaceuticals and Catalytica Combustion Systems to perform cost-effectively and in a timely manner, the impact of product development delays at both Catalytica Pharmaceuticals and Catalytica Combustion Systems, the impact of market demand, the ability to continue to increase revenues from new customers and research services and offset declines in revenue from Glaxo Wellcome and Warner Lambert Lambert may refer to
abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. on the pharmaceutical market, the EPA EPA eicosapentaenoic acid. EPA abbr. eicosapentaenoic acid EPA, n.pr See acid, eicosapentaenoic. EPA, n. on the energy market, and other regulations on pharmaceutical and biotech bi·o·tech n. Informal Biotechnology. biotech Noun short for biotechnology Noun 1. manufacturing, as well as the impact of environmental regulations on the demand for ultra-low NOx emissions. Readers are cautioned not to place undo To restore the last editing operation that has taken place. For example, if a segment of text has been deleted or changed, performing an undo will restore the original text. Programs may have several levels of undo, including being able to reconstruct the original data for all edits reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this release or to reflect the incurrence In`cur´rence n. 1. The act of incurring, bringing on, or subjecting one's self to (something troublesome or burdensome); as, the incurrence of guilt, debt, responsibility, etc. s> Noun 1. of unanticipated events. Investors are encouraged to review Catalytica's Form 10K for the year ending December 31, 1999, filed with the Securities and Exchange Commission for additional factors that could affect Catalytica's future performance.
Catalytica, Inc.
Condensed Consolidated Statements of Operations(A)
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
March 31
2000 1999
---- ----
Revenues:
Product sales $ 87,464 $ 90,611
Research and development contracts 11,230 5,313
--------- ---------
Total revenues 98,694 95,924
Costs and expenses:
Cost of goods sold 70,654 72,324
Research and development 10,511 8,442
Selling, general and administrative 5,880 5,744
Total costs and expenses 87,045 86,510
Operating income 11,649 9,414
Interest expense, net (1,414) (1,419)
Loss on joint venture (0) (512)
--------- ---------
Pre-tax income 10,235 7,483
Income taxes (3,995) (1,111)
Net income $ 6,240 $ 6,372
Net income per share:
Basic $ 0.11 $ 0.11
--------- ---------
Diluted $ 0.09 $ 0.09
--------- ---------
Shares used in computing
net income per share:
Basic 57,964 57,470
Diluted 64,508 64,206
(A) Note: The results for all periods presented have been restated to
reflect the acquisition of Wyckoff Chemical Company which has been
accounted for as a pooling of interests and was completed on September
20, 1999.
Catalytica, Inc.
Condensed Consolidated Balance Sheet(B)
(in thousands)
(unaudited)
March 31, 2000 December 31, 1999
Assets:
Cash and short-term investments $ 26,919 $ 40,346
Accounts and notes receivable 40,493 42,320
Inventory 95,783 105,519
Other current assets 16,322 17,011
---------- ----------
Total current assets 179,517 205,196
Property and equipment 295,932 282,903
Accumulated depreciation
and amortization (66,555) (61,772)
Other assets 1,903 2,181
---------- ----------
$ 410,797 $ 428,508
========== ==========
Liabilities and Stockholders' Equity:
Current liabilities $ 49,521 $ 73,751
Current portion of long-term debt 12,748 12,948
---------- ----------
Total current liabilities 62,269 86,699
Long-term debt 51,000 51,000
Other long-term liabilities 23,686 23,982
Minority interest 41,000 41,000
Class A and B common stock 97,079 97,079
Stockholders' equity 135,763 128,748
---------- ----------
$ 410,797 $ 428,508
(B) Note: The results for all periods presented have been restated to reflect the acquisition of Wyckoff Chemical Company which has been accounted for as a pooling of interests and was completed on September 20, 1999. |
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