Collagen Corp. Reports Fourth Quarter and Year-End Results; Record worldwide sales of Zyderm/Zyplast.PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif.--(BUSINESS WIRE)--Aug. 15, 1996--Collagen Corporation today reported its fourth quarter and fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. results which included net income for the fiscal year of $26.7 million, or $2.94 per share, on revenues of $70.7 million, compared with net income of $8.8 million, or $.93 per share, on revenues of $72.6 million for the prior year. Revenues for the year include $65.1 million in worldwide product sales from the Company's Aesthetic Technologies Group. These products include the Zyderm and Zyplast facial implants and the Trilucent breast implant breast implant, saline- or silicone-filled prosthesis used after mastectomy as a part of the breast reconstruction process or used cosmetically to augment small breasts. . Included in net income for fiscal 1996 were non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $17.8 million, or $1.96 per share, for purchased in-process research and development related to the transactions involving LipoMatrix, Incorporated, manufacturer of the Trilucent breast implant, and Cohesion Corporation, a majority-owned affiliate company developing products in the fields of tissue adhesives, adhesion preparation, and biosealants. Also included are net pre-tax investment gains of $82 million, primarily from the sale of 1.8 million shares of the Company's holdings of Target Therapeutics, Inc. common stock. For the fiscal year, the Company's return on investment (using total net income and beginning year stockholder's equity Stockholder's equity The residual claims that stockholders have against a firm's assets, calculated by subtracting all current liabilities and debt liabilities from total assets. for the calculation) was over 50%. During fiscal 1996 the Company generated from its operating business and investment gains approximately $70 million in cash, before reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. in R&D. Out of that cash flow, $1.3 million was sent back to stockholders in the form of cash dividends paid and $5.5 million was spent on stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. . Collagen collagen (kŏl`əjən), any of a group of proteins found in skin, ligaments, tendons, bone and cartilage, and other connective tissue. Cells called fibroblasts form the various fibers in connective tissue in the body. also reinvested over $50 million into new products and businesses, including approximately $23 million paid for the acquisition of LipoMatrix and $6.5 million paid for 80% ownership in Cohesion. Selling, general and administrative expenses for the year increased 21% over the prior year period, primarily from the costs of launching the Trilucent implant internationally and from the addition of administrative and goodwill amortization expenses from the acquisition of LipoMatrix, Incorporated. Results for the quarter included net income of $6.3 million, or $.70 per share, on revenues of $18.3 million, compared to $2.7 million, or $.29 per share, on revenues of $20.2 million in the prior year period. Aesthetic Technologies Group For the full fiscal year, the group's revenues were $67.1 million, including $2 million of other revenue, and its 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. was approximately $6 million, for a pre-tax return on sales Return on sales A measurement of operational efficiency equalingnet pre-tax profits divided by net sales expressed as a percentage. return on sales The portion of each dollar of sales that a firm is able to turn into income. of 9%. Worldwide revenues from Zyderm and Zyplast collagen implant products and the Trilucent breast implant (excluding revenues from Contigen implant) increased 14 percent to $58.9 million during fiscal 1996, compared with $51.5 million in the prior-year period. "During fiscal year 1996, we saw continued growth in sales of our Aesthetic Technology products. Worldwide unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. of Zyderm and Zyplast implants were up 16 percent compared to last year. In the U.S., we experienced our strongest year since fiscal 1991, with unit sales of Zyderm and Zyplast implants rising 10 percent. "We attribute much of this increase in the U.S. to our new Patient Satisfaction Program, which strives to provide patients with more collagen material during each treatment session at a more affordable price. Our international business saw unit growth of 21%. Internationally, growth was achieved in virtually every major market, a tribute to our subsidiary staff, our new Spanish joint venture and our distributors," stated Gary Petersmeyer, Collagen Corporation's president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "The launch of the Trilucent breast implant in the United Kingdom and other European countries has been very exciting and exceeded our expectations." Contigen Bard bard, in Wales, term originally used to refer to the order of minstrel-poets who composed and recited the poems that celebrated the feats of Celtic chieftains and warriors. collagen implant ("Contigen implant") revenues were $6.2 million for the fiscal year, consisting mostly of revenue from sales to physician customers by C.R. Bard ("Bard"), Collagen's Contigen implant marketing partner. As previously disclosed, Collagen shipped very little product to Bard during fiscal 1996 due to excess inventory at Bard. The company expects to resume shipments of treatment product to Bard in the first half of calendar 1997. "The past year was challenging for the Aesthetic Technologies group from an operating income perspective. In fiscal 1995, we shipped $13 millon of treatment product to Bard, while in fiscal 1996 we shipped none due to high inventory levels at Bard. In addition, the inclusion of the LipoMatrix operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. (subsequent to its acquistion in August 1995) resulted in a significant negative effect on operating income. "As a result of expected increased manufacturing volumes at LipoMatrix and the prospect of resumed shipments of Contigen implant, we can foresee an improvement in operating income in fiscal 1997 for this group. "In addition to the anticipated continued growth of the injectable in·ject·a·ble adj. Capable of being injected. Used of a drug. n. A drug or medicine that can be injected. collagen and breast implant business on a worldwide basis, we are now preparing for the launch of Hylaform viscoelastic Adj. 1. viscoelastic - having viscous as well as elastic properties natural philosophy, physics - the science of matter and energy and their interactions; "his favorite subject was physics" gel in Europe and SoftForm facial implants in the 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. during the next twelve months," added Mr. Petersmeyer. Collagen Technologies Group During fiscal 1996, Collagen Technologies spent over $4 million on research and development, excluding aesthetic medicine programs. When revenue from the sale of Collagraft bone graft bone graft Orthopedic surgery Sterilized bony tissue, often of cadaveric origin, used to fill and/or 'sculpt' bone defects Indications Spinal fusion, revision of failed articular prostheses, filling traumatic or malignant bone defects, or periodontal defects. products, administrative expenses, and gains on the sale of investments, primarily Target Therapeutics, are added, Collagen Technologies had pre-tax income over $75 million. Along with the Cohesion ownership, this group's activities include human recombinant collagen activities, several internal orthopedic development programs, research efforts into new biomaterials, and partial ownership interests in: an early stage molecular biology molecular biology, scientific study of the molecular basis of life processes, including cellular respiration, excretion, and reproduction. The term molecular biology was coined in 1938 by Warren Weaver, then director of the natural sciences program at the Rockefeller company, Pharming pharming (fär`mĭng), the use of genetically altered livestock, such as cows, goats, pigs, and chickens, to produce medically useful products. B.V.; a publicly held orthopedics company, Innovasive Devices, Inc.; an early stage ophthalmology ophthalmology (ŏf'thălmŏl`əjē), branch of medicine specializing in the anatomy, function and diseases of the eye. Ophthalmologists specialize in the medical and surgical treatment of eye disorders, vision measurements for company, CollOptics, Inc.; and a vascular stent stent (stent) 1. a device or mold of a suitable material, used to hold a skin graft in place. 2. a slender rodlike or threadlike device used to provide support for tubular structures that are being anastomosed, or and graft company, Prograft Medical, Inc. Fiscal 1996 revenues from sales of Collagraft bone graft products to Collagen's marketing partner Zimmer, Inc. were $3.1 million, compared with revenues of approximately $3 million in the prior year. "Collagen Technologies made a significant investment in Cohesion which is developing exciting new products in tissue adhesives and adhesion prevention. Also, we achieved major milestones in the recombinant human collagen programs, transgenic trans·ge·nic adj. 1. Of, relating to, or being an organism whose genome has been altered by the transfer of a gene or genes from another species or breed: transgenic mice. 2. and yeast, during this past fiscal year," stated Howard Palefsky, Collagen Corporation's Chairman and chief executive officer. "We are very excited about the prospects for expansion of our proprietary position in new biomaterials as well as the opportunities for the application of these materials across broad fields of medicine," Mr. Palefsky added. Corporate During the fiscal fourth quarter, the Company repurchased 125,000 shares of its common stock, bringing the total shares repurchased for the year to 300,000 shares, at an average acquisition price of slightly over $18 per share. In July 1996, the Board authorized the purchase of an additional 500,000 shares. During the fiscal fourth quarter, the Board of Directors declared a cash dividend of 10 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the six months ending June 30, 1996, representing a 33 percent increase from the 7.5 cents per share paid to stockholders for the six months ended December 31, 1995. The dividend was paid on July 15, 1996 to stockholders of record on June 14, 1996. The Board of Directors expects to review the potential for future dividends semiannually sem·i·an·nu·al adj. Occurring or issued twice a year. sem  i·an .Except for the historical information contained herein, the matters discussed 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. , the accuracy of which is necessarily subject to risks and uncertainties. Collagen's actual results may differ significantly from the results discussed in the forward-looking statements. Actual results may be affected by, among other things, uncertainties regarding timing of regulatory approvals, new product introductions and market acceptance of new products, product development cycles, potential unfavorable publicity regarding Collagen or its products, possible reversals of sales trends and introduction of competitive products, as well as those factors set forth under the heading "Factors That May Affect Future Results of Operations" in Collagen's Form 10-Q Form 10-Q See 10-Q. dated March 31, 1996 (the "Form 10-Q"), and those identified elsewhere under the heading "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" in the Form 10-Q. Collagen Corporation is a technology-based company that develops, manufactures and markets biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. devices for the treatment of defective, diseased, traumatized or aging human tissues. Collagen's press releases can be accessed on the Internet at http://www.businesswire.com/cnn/cgen.htm -0-
Collagen Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
June 30,
1996(a) 1995(a)
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $ 25,367 $ 9,384
Accounts receivable, net 9,508 13,402
Inventories 9,563 5,056
Other current assets 11,496 5,568
Total current assets 55,934 33,410
Property and equipment, net 15,147 16,506
Intangible assets, net 7,231 2,727
Purchased intangibles and
goodwill, net 7,593 --
Investments & other assets,
principally
Target Therapeutics, Inc. 77,102 24,263
------- -------
$ 163,007 $ 76,906
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,824 $ 2,250
Accrued compensation 2,387 2,908
Accrued liabilities 9,482 7,954
Income taxes payable 7,588 5,902
Notes payable 5,079 --
Total current liabilities 28,360 19,014
Long-term liabilities:
Deferred income taxes 27,674 8,478
Other long-term liabilities 3,444 1,494
Total long-term liabilities 31,118 9,972
Minority interest 528 --
Stockholders' equity:
Common stock 64,950 63,961
Retained earnings 41,722 16,669
Unrealized gain on
available-for-sale investments 34,549 --
Treasury stock (38,220) (32,710)
Total stockholders' equity 103,001 47,920
------- -------
$ 163,007 $ 76,906
NOTE (a): Amounts derived from audited financial statements at the dates illustrated.
Collagen Corporation
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
Quarter Ended Year Ended
June 30, June 30,
1996 1995 1996(b) 1995(b)
Revenues:
Product sales $ 18,320 $ 20,226 $ 68,730 $ 71,560
Other -- -- 2,000 1,000
------ ------ ------ ------
18,320 20,226 70,730 72,560
Costs and expenses:
Cost of sales 5,034 4,917 19,312 18,584
Selling, general
& administrative 10,220 9,405 39,040 32,179
Research &
development 3,242 2,672 12,170 9,943
Purchased in-process
research &
development 3,000 -- 17,800 --
----- ------ ------ ------
21,496 16,994 88,322 60,706
Income (loss) from operations (3,176) 3,232 (17,592) 11,854 Other income (expense):
Net gain on
investments,
principally
Target
Therapeutics, Inc. 14,421 1,766 82,093 5,110
Net equity in losses
of affiliates (112) (364) (895) (1,160)
Interest income 403 134 1,145 487
Interest expense (209) (8) (296) (91)
Income before income taxes 11,327 4,760 64,455 16,200 Provision for income taxes 5,176 2,060 37,985 7,440 Minority interest (182) -- (182) -- Net income $ 6,333 $ 2,700 $26,652 $ 8,760 Net income per share $ .70 $ .29 $ 2.94 $ .93 Shares used in calculating per share information 9,043 9,250 9,075 9,460 NOTE (b): Amounts derived from audited financial statements for the periods illustrated. CONTACT: David Foster  This article or section resembles a .Please help [ improve this article] by removing excessive trivia, irrelevant praise and criticism, lists and collections of links that are of . Collagen Corporation 415/856-0200 or Matt Harrington Matt Harrington (born February 1, 1982) is a baseball player who holds the record for the most times being chosen in the Major League Baseball amateur draft. Between 2000 and 2004, Harrington, a top prospect coming out of high school, was chosen in all five drafts, but never signed Edelman Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most 415/433-5381 |
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