D&K Healthcare Resources Reports Record Q3 Net Sales, EBITDA and Earnings Per Share.Business Editors ST. LOUIS--(BUSINESS WIRE)--April 23, 2001 Conference Call / Web Cast Notification D&K Healthcare Resources' third quarter conference call will take place today, Monday Monday: see week. , April 23, at 9:30 a.m. CT / 10:30 a.m. ET. A webcast and replay will be available at www.dkwd.com/irevents.htm. D&K Healthcare Resources, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DKWD) today reported record quarterly 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 , EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become and 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 for the three months ended March 31, 2001. D&K achieved net sales of $490.5 million, a 14.8% increase over the $427.2 million a year ago. EBITDA for the quarter increased 32.2% to $9.7 million from $7.3 million in fiscal 2000. Net income rose 23.2% to $3.2 million versus $2.6 million a year ago, and diluted earnings per share increased 18.6% to $0.70 compared to $0.59 last year. "We are extremely pleased with the strong operating performance we achieved across the business, yielding the highest-ever quarterly revenue, EBITDA and net income in our Company's 14-year history," said, J. Hord Armstrong, III, Chairman and Chief Executive Officer. "We are also delighted to have initiated and paid our first quarterly dividend of $0.025 per share." "In addition to a strong team of professionals that executed well during the period, D&K's strategic focus on higher-opportunity, more value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: relationships allowed us to grow our gross margin to 4.19% from 3.62% in the prior year's quarter. The dramatic pace of consolidation we are seeing in our industry has not affected our customers' continuing need for high levels of service and reliability, which plays to D&K's mission, strategy and core strengths. Given this demand for service, and the strong pharmaceutical demand trends underlying our industry, we expect to see our positive business trends continue into the next fiscal year." Sales growth was achieved primarily in the chain and independent pharmacy An independent pharmacy is a retail pharmacy that is not directly affiliated with any chain pharmacy, such as CVS/pharmacy, Walgreens or Eckerd. However, owners of independent pharmacies will often form alliances with other independents and use their power in numbers to bargain for trade classes. Chain sales increased $133.2 million, or 83.2%, over the same period of fiscal 2000, reflecting D&K's specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. capabilities, infrastructure and expertise in this trade class. Sales to independents increased $37.2 million, or 28.1%, over last year, reflecting growing demand in this trade class and D&K's attention to the personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. service it requires. Institutional sales were down 79.8%, due principally to the loss of $112.5 million in sales from two mail order accounts that were not renewed in the fourth quarter of last year. Martin D. Wilson Wilson, city (1990 pop. 36,930), seat of Wilson co., E N.C., in a rich agricultural region; inc. 1849. It is a commercial and industrial center with a large tobacco market. Manufactures include textile goods (especially clothing), metal products, and processed foods. , 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. , said, "We have been successful in deploying the capital previously used in the lower margin mail order business into the chain store and independent pharmacy businesses. This is reflected in both the strong sales growth achieved in these businesses, as well as the significant contribution to our overall operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and EBITDA. Excluding the mail order business, our institutional sales were also up 26.0%." Income from operations increased 35.0% to $8.8 million compared to $6.5 million a year ago. Net interest expense increased 30.2% to $3.3 million driven principally by higher average borrowings, partially offset by lower interest rates. For the nine months ended March 31, 2001, D&K achieved net sales of $1.2 billion, a 10.0% increase over the $1.1 billion recorded a year ago. EBITDA for the nine months increased 22.2% to $22.2 million from $18.2 million in fiscal 2000. Net income for the nine months rose 9.1% to $6.5 million versus $6.0 million for the same period a year ago, and diluted earnings per share increased 9.8% to $1.46 compared to $1.33 for the same period last year. Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs S. Hilton Hil·ton , Conrad Nicholson 1887-1979. American hotel-chain organizer who acquired hotels in many American cities and in 1946 founded the Hilton Hotel Corporation. , Senior Vice President and Chief Financial Officer commented, "With respect to guidance, while the third quarter is certainly our strongest quarter seasonally, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our performance in future quarters. Given our strong financial performance in the first nine months of fiscal 2001, we are raising our sales projection for fiscal 2001 to approximately $1.6 billion from $1.5 billion, with gross margins approximating 4.2% for the full year. Reflecting our net income pacing thus far this year, we are also raising our 12-month earnings per share guidance to at least $1.95 from $1.85." Mr. Hilton added, "Though interest rates during the quarter were down only 20 basis points on average from the same quarter last year, they were 100 basis points lower than our average rate during the first two quarters of fiscal 2001. Every 25 basis point reduction in rates improves our annual 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. by about $0.04 per share. Looking forward, we expect our top line growth to at least meet the mid to high 'teen' industry growth rate, and we expect to generate further leverage on the bottom line due to growing economies of scale as well as reduced interest rates." About D&K Healthcare Resources With fiscal 2000 revenues of $1.46 billion, St. Louis-based D&K Healthcare Resources, Inc., is a full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. regional wholesale drug distributor supplying customers from facilities in Cape Girardeau Cape Girardeau (jĭrär`dō, jērərdō`), city (1990 pop. 61,633), Cape Girardeau co., SE Mo., overlooking the Mississippi River; founded 1793, inc. as a city 1843. , MO; Davie Da·vie A town of southeast Florida southwest of Fort Lauderdale. It is in a citrus-growing area. Population: 79,800. , FL; Lexington Lexington. 1 City (1990 pop. 225,366), seat of Fayette co., N central Ky., in the heart of the bluegrass region; inc. 1832, made coextensive with Fayette co. 1974. , KY; Minneapolis Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. , MN; and, through its subsidiary Jewett Jew·ett , Sarah Orne 1849-1909. American writer noted for novels and stories concerning her native Maine. The Country of the Pointed Firs (1896) is considered her finest work. Drug Co., in Aberdeen Aberdeen, former county, Scotland Aberdeen, former county, Scotland: see Aberdeenshire. Aberdeen, city, Scotland Aberdeen, city (1991 pop. , SD. D&K also develops and markets sophisticated pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. systems software through two wholly owned subsidiaries 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. , Tykon, Inc., and Viking Viking Either of two unmanned U.S. spacecraft launched by NASA in 1975. After nearly yearlong journeys, Vikings 1 and 2 entered orbits around Mars and released landers that touched down on the planet and relayed measurements of properties of its atmosphere and soil, as well Computer Services Data processing (timesharing, batch processing), software development and consulting services. See service bureau, SaaS and ASP. . In addition, D&K owns a 50% equity interest in Pharmaceutical Buyers, Inc., a leading alternate site group purchasing organization A group purchasing organization is an entity that leverages the purchasing power of a group of businesses to obtain discounts from vendors based on the collective buying power of the GPO members. Many GPOs are funded by administrative fees that are actually paid by the vendors. . D&K invites you to visit its Web site at http://www.dkwd.com. 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. Provisions This press release may contain 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. within the meaning of the safe harbor provisions of 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. Such forward-looking statements are inherently subject to risks and uncertainties. D&K's actual results could differ materially from those currently anticipated due to a number of factors, including without limitation, the competitive nature of the wholesale pharmaceutical distribution industry, with many competitors having substantially greater resources than D&K, and D&K's customers generally having the right to terminate Terminate (terminat.exe) was a shareware modem terminal and host program for MS-DOS and compatible operating systems developed from the early to the late 1990s by the Dane Bo Bendtsen. The last release (5. or reduce their purchases on relatively short notice, the changing business and regulatory environment of the healthcare industry in which D&K operates, change in interest rates and other factors set forth in reports and other documents filed by D&K with the Securities and Exchange Commission from time to time. D&K undertakes no obligation to publicly update or revise any forward-looking statements.
D&K Healthcare Resources, Inc.
Condensed Consolidated Balance Sheet
(In thousands)
March 31, 2001 June 30, 2000
(unaudited)
Assets
Cash $ 4,160 $ 3,661
Accounts receivable 65,456 29,923
Inventories 176,765 202,467
Other current assets 1,235 1,443
------------------ -------------
Total current assets 247,616 237,494
------------------ -------------
Property and equipment, net 9,432 8,184
Investment in affiliates 5,175 5,199
Other assets 42,549 43,542
------------------ -------------
Total assets $ 304,772 $ 294,419
================== =============
Liabilities and
stockholders' equity
Accounts payable $ 143,005 $ 134,834
Current portion long-term debt 312 305
Other current liabilities 10,446 8,799
------------------ -------------
Total current liabilities 153,763 143,938
Long-term liabilities 1,046 700
Long-term debt 92,942 99,647
Deferred income taxes 4,869 4,869
Stockholders' equity 52,152 45,265
------------------ -------------
Total liabilities and
stockholders' equity $ 304,772 $ 294,419
================== =============
D&K Healthcare Resources, Inc.
Condensed Consolidated Statement of Operations
Unaudited
(In thousands, except per share data)
Three Months Ended
March 31, % of March 31, % of %
2001 Net Sales 2000 Net Sales Change
Net sales $ 490,469 100.00% $ 427,236 100.00% 14.8%
Cost of sales 469,896 95.81% 411,777 96.38% 14.1%
---------- ----------
Gross profit 20,573 4.19% 15,459 3.62% 33.1%
Operating expenses 11,740 2.39% 8,914 2.09% 31.7%
---------- ----------
Income from
operations 8,833 1.80% 6,545 1.53% 35.0%
Other income
(expense):
Interest
expense, net (3,325) -0.68% (2,554) -0.60% 30.2%
Other, net (262) -0.05% 234 0.05% -212.0%
---------- ----------
Pretax earnings 5,246 1.07% 4,225 0.99% 24.2%
Income tax
provision 2,046 0.42% 1,627 0.38% 25.7%
---------- ----------
Net income $ 3,200 0.65% $ 2,598 0.61% 23.2%
========== ==========
EBITDA $ 9,670 1.97% $ 7,316 1.71% 32.2%
Basic earnings
per share $ 0.76 $ 0.63
Diluted earnings
per share $ 0.70 $ 0.59
EBITDA per
diluted share $ 2.10 $ 1.64
Basic common
shares outstanding 4,238 4,163
Diluted common
shares outstanding 4,596 4,470
EPS calculation: Three months ended Three months ended
March 31, 2001 March 31, 2000
Income Shares Per Share Income Shares Per Share
------ ------ --------- ------ ------ ---------
Basic earnings
per share:
Net income
available to
common
shareholders $ 3,200 4,238 $ 0.76 $ 2,598 4,163 $ 0.63
Effect of
diluted
securities:
Options and
warrants - 158 - 107
Convertible
PBI stock 2 200 43 200
----------------- -----------------
Diluted earnings
per share:
Net income
available to
common
shareholders
plus assumed
conversions $ 3,202 4,596 $ 0.70 $ 2,641 4,470 $ 0.59
================= =================
D&K Healthcare Resources, Inc.
Condensed Consolidated Statement of Operations
Unaudited
(In thousands, except per share data)
Nine Months Ended
March 31, % of March 31, % of %
2001 Net Sales 2000 Net Sales Change
Net sales $ 1,196,646 100.00% $ 1,087,699 100.00% 10.0%
Cost of sales 1,146,057 95.77% 1,047,249 96.28% 9.4%
----------- -----------
Gross profit 50,589 4.23% 40,450 3.72% 25.1%
Operating expenses 30,895 2.58% 24,565 2.26% 25.8%
----------- -----------
Income from
operations 19,694 1.65% 15,885 1.46% 24.0%
Other income
(expense):
Interest
expense, net (9,011) -0.75% (6,713) -0.62% 34.2%
Other, net 4 0.00% 549 0.05% -99.3%
----------- -----------
Pretax earnings 10,687 0.89% 9,721 0.89% 9.9%
Income tax
provision 4,168 0.35% 3,743 0.34% 11.4%
----------- -----------
Net income $ 6,519 0.54% $ 5,978 0.55% 9.1%
=========== ===========
EBITDA $ 22,203 1.86% $ 18,162 1.67% 22.2%
Basic earnings
per share $ 1.55 $ 1.42
Diluted earnings
per share $ 1.46 $ 1.33
EBITDA per
diluted share $ 4.92 $ 3.88
Basic common
shares
outstanding 4,216 4,265
Diluted common
shares
outstanding 4,516 4,591
EPS calculation: Nine months ended Nine months ended
March 31, 2001 March 31, 2000
Income Shares Per Share Income Shares Per Share
------ ------ --------- ------ ------ ---------
Basic earnings
per share:
Net income
available to
common
shareholders $ 6,519 4,216 $ 1.55 $ 5,978 4,265 $ 1.42
Effect of
diluted
securities:
Options and
warrants - 100 - 126
Convertible
PBI stock 94 200 105 200
----------------- -----------------
Diluted earnings
per share:
Net income
available to
common
shareholders
plus assumed
conversions $ 6,613 4,516 $ 1.46 $ 6,083 4,591 $ 1.33
================= =================
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion