ChiRex posts $0.05 per share pro forma first quarter net income.WELLESLEY Wellesley, town (1990 pop. 26,615), Norfolk co., E Mass., a residential suburb SW of Boston; settled 1660, inc. 1881. Its many educational institutions include several private preparatory schools, Babson College, and Wellesley College. , Mass.--(BUSINESS WIRE)--May 9, 1996--ChiRex Inc. (Nasdaq:CHRX) announced today pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. of $0.05 per share for the quarter ended March 31, 1996. Total Revenues for the first quarter were $22.8 million, as compared with $24.2 million in the first quarter of last year. The decline in revenues reflects selected elimination of low-margin customer supply arrangements consistent with management's previously-communicated plan. Gross Profit for the first quarter rose to $3.5 million from $3.0 million, and the Gross Margin improved to 15.4% from 12.2% in the comparable period last year. The improvement in Gross Margin is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to improved pricing in two core products and, to a lesser extent, a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. change in product mix. 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 to $2.1 million from $1.1 million and the Operating Profit Margin Operating profit margin The ratio of operating profit to net sales. rose to 9.3% from 4.5% last year. 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 fell to $0.6 million from $1.0 million and Pro forma Earnings Per Share fell to $0.05 per share from $0.09 per share. The primary difference in earnings per share was $726.2 thousand of Interest Expense and $216.4 thousand in Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends in the first quarter of 1996 compared to $0.0 and $0.0 in the first quarter of 1995. Taken together, these two items account for a difference of ($0.08) per share in the quarter. On March 11, 1996 ChiRex placed 6.675 million common shares in an Initial Public Offering and used the proceeds to, among other things, reduce outstanding debt by $25.4 million and 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 entire issue of $13.5 million 5% Preferred Stock. As a result of the Offering and related transactions, ChiRex recorded one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. non-cash write-offs of $11.2 million and recorded Goodwill of $28.8 million. The effect of these Offering adjustments in the period ended March 31, 1996 is a ($0.99) charge to earnings per share which will result in reported Net Income per share of ($0.94) in the first quarter. Also, future earnings will be impacted by ($0.14) per share of amortization and increased depreciation expense per year. ChiRex Inc. specializes in the development, manufacture and marketing of pharmaceutical fine chemicals and, through its joint venture, InNova Pharmaceuticals, formulated for·mu·late tr.v. for·mu·lat·ed, for·mu·lat·ing, for·mu·lates 1. a. To state as or reduce to a formula. b. To express in systematic terms or concepts. c. 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. . ChiRex currently produces over 50 pharmaceutical chemicals in its world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. cGMP cGMP 3'5' cyclic guanosine monophosphate; essential in regulation of sodium channels of the retina. Decrease in cGMP concentration leads to hyperpolarization of the retinal membrane. manufacturing facilities and has a product development pipeline of more than 15 products using its patented ChiRedox process technologies. CHIREX INC. CONSOLIDATED PRO FORMA INCOME STATEMENT (unaudited) (In thousands of US Dollars except EPS)
1st Qtr 96 1st Qtr 95
Sales 22,488.1 24,108.0 Percent growth on previous Q1 (7.3%) 13.9% License & Royalty 323.0 141 Total Revenues 22,811.0 24,249.1 Cost of Sales (19,301.5) (21,286.0)
Gross Profit 3,509.5 2,963.1
Gross Margin 15.4% 12.2%
Selling, Gen & Admin (797.9) (1,168.0)
R&D (619.6) (717.0)
Operating Profit 2,092.1 1,078.1
% of sales 9.3 % 4.5%
Goodwill (60.0) 0.0
Other income/(Expense) (53.7) 340.1
EBIT 1,978.3 1,418.2
Interest net (726.2) 0.0
Profit (Loss) Before Tax 1,252.2 1,418.2
Tax (431.0) (420.2)
Profit/(Loss) After Tax 821.1 998.0
Preferred Stock dividends (216.4) 0.0
Net income to common Shareholders 604.8 998.0
Pro forma Shares Outstanding 11,245 11,245
Pro forma E.P.S. $0.05 $0.09
EBITDA 3,824.3 $3,540.6
% of income 16.8 % 14.6%
-0- Less Non-recurring charges: Pre-Acquisition ChiRex (Holdings) Ltd losses 149.0 Compensation Related to Stock Options (5,286.0) Purchase of In-Process Development (5,790.0)
Purchase Accounting inventory
cost adjustment (275.0)
Total non-recurring charges (11,202.0)
Net income (loss) to common shareholders adjusted for non-recurring charges (10,597.2) Pro forma E.P.S. $(0.94)
-0-
CHIREX INC.
CONSOLIDATED BALANCE SHEET
(unaudited)
March 31,
1996
(in thousands)
ASSETS
Current Assets: Cash and cash equivalents $ 6,248 Trade and other receivables 11,576 Inventories 19,030 Other current assets 903 Total current assets 37,757 Property, plant and equipment, net 58,199 Intangible assets, net 28,600 Total Assets $124,556 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 7,128 Accrued expenses 3,764 Income taxes payable 731 Deferred Income Taxes 3,104 Current portion of long-term debt 650 Total current liabilities 15,377 Long-term debt 10,825 Deferred Income taxes 4,218 Deferred Income 3,324 Accrued Expenses 6,160 Total liabilities 39,904 Stockholders' equity: Common Stock 107 Preferred Stock 0 Additional paid-in capital 97,624 Retained earnings (13,079) Cumulative transition adjustment 0 Total stockholders' equity 84,652 Total liabilities and stockholders' equity $124,556 CONTACT: ChiRex Inc. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. L. Bratzler, Ph.D. Chairman and Chief Executive Officer or Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. A. Griffith Griffith, town (1990 pop. 17,916), Lake co., extreme NW Ind.; inc. 1904. It is primarily a residential town in the Chicago metropolitan area. Manufactures include metal products, chemicals, and electronic equipment. Vice President and Chief Financial Officer 617/431-2200 |
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