DRAXIS Health Reports Record First Quarter Results.Business Editors MISSISSAUGA Mississauga (mĭsĭsaw`gə), city (1991 pop. 463,388), S Ont., Canada, 12 mi (20 km) W of Toronto on Lake Ontario. A residential suburb of Toronto and a growing transportation and industrial center, it is one of Canada's fastest-growing , Ontario--(BUSINESS WIRE)--May 16, 2002 Net income of $0.02 per share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the on 18% revenue growth DRAXIS Health 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 :DRAX Drax could refer to:
TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DAX.) reported record revenues and profitability for the first quarter of 2002 ended March 31, 2002. All amounts are expressed in US dollars. Revenues from continuing operations for the quarter increased to $10.0 million, 18% above the $8.4 million generated in the first quarter last year. First quarter operating profitability, or 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 (pre R&D), increased 76% over the first quarter of 2001 to $2.3 million. Quarterly net income from continuing operations was $887,000 or $0.024 per share, nearly double the $0.013 per share reported for the same quarter last year.
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FINANCIAL HIGHLIGHTS
(thousands of U.S. dollars except per share amounts and
in accordance with U.S. GAAP)
(unaudited)
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2002 2001
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Q1 Q4 Q3 Q2 Q1
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From Continuing
Operations (1)
Revenues $ 9,964 $ 8,631 $ 7,868 $ 8,071 $ 8,413
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EBITDA(2) (pre-R&D) 2,282 1,557 815 1,307 1,296
R&D (463) (665) (262) (132) (220)
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EDITDA(2) 1,819 892 553 1,175 1,076
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Net Income (Loss)
From Continuing
Operations
Before Revaluation
of Tax Assets 887 439 244 786 461
Revaluation of
Tax Assets - - - (3,300) -
Discontinued
Operations (104) 174 15 (162) (241)
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$ 783 $ 613 $ 259 $ (2,676) $ 220
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Basic Income (Loss)
Per Share
From Continuing
Operations
Before Revaluation
of Tax Assets $ 0.024 $ 0.012 $ 0.007 $ 0.021 $ 0.013
Revaluation of
Tax Assets - - - (0.090) -
Discontinued
Operations (0.003) 0.005 - (0.004) (0.007)
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$ 0.021 $ 0.017 $ 0.007 $ (0.073) $ 0.006
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(1) Commencing with the fourth quarter of 2001, the Company's Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. sales and marketing business (Draxis Pharmaceutica) has been accounted for as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and comparative periods have been restated accordingly. (2) Earnings from continuing operations before depreciation and amortization, interest, income taxes and minority interest. "Record results for this quarter, particularly in our Radiopharmaceuticals business, are the direct result of our recent string of regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals," said Dr. Martin Barkin, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of DRAXIS. "The strong performance of our Radiopharmaceuticals business was driven primarily by increased product sales into the U.S., which included the fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. of order backlogs in the quarter for our line of lyophilized ly·oph·i·lize tr.v. ly·oph·i·lized, ly·oph·i·liz·ing, ly·oph·i·liz·es To freeze-dry (blood plasma or other biological substances). [lyophil(ic) + -ize. diagnostic imaging products. Manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. recorded increased earnings in the first quarter although we have not yet begun to realize the benefit from new contract business." Operating Highlights Radiopharmaceuticals -- Revenues of $5.1 million, relatively unchanged from the first quarter of 2001. -- EBITDA of $134,000, up from $55,000 in the same quarter last year. -- Initiation of a three year, $12 million capital plan, including a tripling of DPI's existing lyophilization capacity and related financing arrangements including additional participation by DPI's strategic partner, Societe generale de financement du Quebec. -- Continued progress to transfer several established, predominantly sterile, products from GlaxoSmithKline and to bring them into production for multiple international markets under the recently signed long-term manufacturing supply agreement. Manufacturing -- Revenues of $5.1 million, relatively unchanged from the first quarter of 2001. -- EBITDA of $134,000, up from $55,000 in the same quarter last year. -- Initiation of a three year, $12 million capital plan, including a tripling of DPI's existing lyophilization capacity and related financing arrangements including additional participation by DPI's strategic partner, Societe generale de financement du Quebec. -- Continued progress to transfer several established, predominantly sterile, products from GlaxoSmithKline and to bring them into production for multiple international markets under the recently signed long-term manufacturing supply agreement. Corporate -- Continuing negotiations with respect to the final terms and definitive documentation for the previously announced sale of the DRAXIS Pharmaceutica division to Elan (Emulated LAN) A virtual LAN in the ATM world. See LANE and virtual LAN. Elan - ["Top-down Programming with Elan", C.H.A. Koster, Ellis Horwood 1987]. . Financial Highlights Revenues from continuing operations of $10.0 million in the first quarter were a record for the Company, representing an 18.4% increase over $8.4 million in the first quarter of 2001. Product sales increased 15.9% while royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. and licensing revenues increased 29.2%. EBITDA (pre R&D) from continuing operations of $2.3 million in the first quarter was also a quarterly record and represented an increase of 76.1% compared to $1.3 million for the first three months of 2001. EBITDA (pre R&D) improved to 22.9% of revenues in the current quarter versus 15.4% in 2001. Net income from continuing operations of $887,000, or $0.024 per share, for the first quarter of 2002 compares with net income of $461,000, or $0.013 per share, for the same period in 2001. Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold in the first quarter of 2002 declined to 73.8% of product sales from continuing operations, which is down from 82.3% for the same period in 2001. Selling, general and administration expenses of $1.9 million in the quarter were $343,000 higher than the same period in 2001, or 23.9% of product sales versus 22.6% last year and included a non-cash charge 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 $156,000 related to stock compensation costs. Research and development expenditures increased to $463,000 in the first quarter of 2002 from $220,000 in 2001 due to increased development activity involving the radiopharmaceutical radiopharmaceutical /ra·dio·phar·ma·ceu·ti·cal/ (-fahr?mah-soo´ti-k'l) a radioactive pharmaceutical, nuclide, or other chemical used for diagnostic or therapeutic purposes. product pipeline. Cash and cash equivalents at March 31, 2002 totalled $3.0 compared with $5.6 as at December December: see month. 31, 2001. Subsequent to the quarter end, $2.1 million was received, under the financing arrangements related to the Company's recently announced capital plan. This release includes by reference the first quarter interim financial report incorporating the full Management Discussion & Analysis (MD&A) as well as financial statements under both U.S. and Canadian GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . The interim report, including the MD&A and financial statements, has been filed with applicable Canadian and U.S. regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities , is accessible on the Company's website at www.draxis.com in the section "Investors - News Releases 2002" and is available upon request by contacting DRAXIS Investor Relations Investor relations The process by which the corporation communicates with its investors. at 1-877-441-1984 or The Investor Relations Group at (212) 825-3210. DRAXIS has scheduled a conference call to discuss first quarter 2002 financial results at 2 p.m. (ET) on May 16, 2002. This call can be accessed by dialing 1-888-673-1862 (no access code required) and will also be webcast live with access through the Company's website at www.draxis.com. The conference call will also be available in archived format on the website for 120 days following the conference call. About DRAXIS Health Inc. DRAXIS Health Inc. is an integrated pharmaceutical company focused in two specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. segments - the development, production, marketing and distribution of radiopharmaceuticals (DRAXIMAGE) and the provision of contract pharmaceutical manufacturing services, specializing in liquid and freeze-dried freeze-dry tr.v. freeze-dried, freeze-dry·ing, freeze-dries To preserve (food, for example) by rapid freezing and drying in a high vacuum. Adj. 1. injectables and other sterile sterile /ster·ile/ (ster´il) 1. unable to produce offspring. 2. aseptic. ster·ile adj. 1. Not producing or incapable of producing offspring. 2. products (DRAXIS Pharma Pharma may be an abbreviation for:
Except for historical information, this news release contains certain 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. that involve risk and uncertainties, which may cause actual results to differ materially from the statements made. Such factors include, but are not limited to, changing market conditions, clinical trial results, the establishment of new corporate alliances, the impact of competitive products and pricing, the timely development, regulatory approval and market acceptance of the Company's products, and other risks detailed from time-to-time in the Company's filings with the U.S. Securities and Exchange Commission and Canadian securities authorities. Financial Tables Attached
DRAXIS HEALTH INC.
Consolidated Statements of Operations and Deficit
In Accordance with U.S. GAAP
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(in thousands of U.S. dollars except share related data)
(unaudited)
For the Three Month Period
Ended March 31,
--------------------------
2002 2001
----- -----
REVENUES
Product sales $ 7,862 $ 6,786
Royalty and licensing 2,102 1,627
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9,964 8,413
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EXPENSES
Cost of goods sold 5,805 5,583
Selling, general and
administration 1,877 1,534
Research and development 463 220
Depreciation and amortization 672 582
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8,817 7,919
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Operating income 1,147 494
Interest expense, net (51) (37)
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Income before undernoted 1,096 457
Income taxes 259 86
Minority interest 50 90
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Income from continuing
operations 887 461
Loss from discontinued
operations, net of taxes (104) (241)
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Net income $ 783 $ 220
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Basic income (loss) per share
from continuing operations $ 0.024 $ 0.013
from discontinued operations (0.003) (0.007)
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$ 0.021 $ 0.006
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Diluted income (loss) per share
from continuing operations $ 0.024 $ 0.013
from discontinued operations (0.003) (0.007)
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0.021 $ 0.006
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Weighted-average number of
shares outstanding
- basic 36,729,775 36,565,102
- diluted 37,249,490 36,593,592
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Deficit, beginning of
period (Note 4) $ (50,869) $ (49,285)
Net income 783 220
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Deficit, end of period $ (50,086) $ (49,065)
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See the accompanying notes to the Consolidated Financial
Statements.
These interim financial statements should be read in conjunction with
the annual Consolidated Financial Statements.
DRAXIS HEALTH INC.
Consolidated Balance Sheets
In Accordance with U.S. GAAP
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(in thousands of U.S. dollars)
(unaudited)
March 31, December 31,
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2002 2001
----- -----
ASSETS
CURRENT
Cash and cash equivalents $ 3,042 $ 5,602
Accounts receivable 9,738 7,472
Inventories 5,193 5,272
Prepaid expenses 814 570
Deferred income taxes, net 673 2,917
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19,460 21,833
Property, plant and equipment, net 23,092 22,294
Goodwill, net 2,874 3,086
Intangible assets, net 6,722 7,004
Other assets 899 995
Deferred income taxes, net 11,440 9,148
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$ 64,487 $ 64,360
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LIABILITIES
CURRENT
Bank loan $ 1,975 $ 1,666
Accounts payable and
accrued liabilities 6,256 8,125
Current portion of
deferred revenues 6,108 6,476
Current portion of
long-term debt 752 1,446
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15,091 17,713
Deferred revenues 16,872 18,139
Long-term debt 8,985 6,614
Customer deposits 2,028 1,966
Minority interest 3,260 3,050
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$ 46,236 $ 47,482
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SHAREHOLDERS' EQUITY
Common stock, without par value of
unlimited shares authorized,
36,935,434 and 36,613,434 issued
and outstanding at March 31, 2002
and December 31,
2001, respectively $ 60,305 $ 59,781
Additional paid in capital 15,632 15,476
Employee participation
shares; 2,000,000 shares
authorized 166 166
Less: loans receivable (166) (166)
Warrants 74 74
Deficit (50,086) (50,869)
Accumulated other
comprehensive loss (7,674) (7,584)
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18,251 16,878
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$ 64,487 $ 64,360
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See the accompanying notes to the Consolidated Financial
Statements.
These interim financial statements should be read in conjunction with
the annual Consolidated Financial Statements.
DRAXIS HEALTH INC.
Consolidated Statements of Cash Flows
In Accordance with U.S. GAAP
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(in thousands of U.S. dollars)
(unaudited)
For the Three Month Period
Ended March 31,
--------------------------
2002 2001
----- -----
CASH FLOWS (USED IN) FROM
OPERATING ACTIVITIES
Net income from continuing
operations $ 887 $ 461
Adjustments to reconcile
net income from continuing
operations to net cash
(used in) from operating
activities
Amortization of deferred
revenues (1,556) (1,207)
Depreciation and amortization 672 582
Stock compensation 156 -
Deferred income taxes (29) (333)
Minority interest (50) (88)
Other 94 (13)
Changes in operating assets and
operating liabilities
Accounts receivable (1,851) (1,270)
Inventories 65 518
Income taxes (1,298) 400
Prepaid expenses (247) 407
Accounts payable and
accrued liabilities (964) (835)
Current portion of
deferred revenues - 47
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(4,121) (1,331)
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CASH FLOWS (USED IN) FROM
INVESTING ACTIVITIES
Expenditures for property,
plant and equipment (1,286) (979)
Increase in intangible assets - (120)
Increase in deferred revenues - 409
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(1,286) (690)
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CASH FLOWS (USED IN) FROM
FINANCING ACTIVITIES
Proceeds from bank loan 314 -
Proceeds from long-term debt 1,872 -
Repayment of long-term debt (172) (240)
Proceeds from customer deposits 67 -
Exercise of warrants and options 524 -
Issue of common shares by
subsidiary to minority interest 267 -
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2,872 (240)
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Effect of foreign exchange
rate changes on cash and
cash equivalents (79) (99)
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Net cash used in
continuing operations (2,614) (2,360)
Net cash (used in) from
discontinuing operations 54 (46)
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Net decrease in cash and
cash equivalents (2,560) (2,406)
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Cash and cash equivalents,
beginning of period 5,602 4,420
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Cash and cash equivalents,
end of period $ 3,042 $ 2,014
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Additional Information
Interest paid $ 78 $ 168
Income taxes paid $ 1,695 $ 69
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See the accompanying notes to the Consolidated Financial
Statements.
These interim financial statements should be read in conjunction with
the annual Consolidated Financial Statements.
DRAXIS HEALTH INC.
Notes to the Consolidated Financial Statements
In Accordance with U.S. GAAP
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(in thousands of U.S. dollars)
(unaudited)
1. Significant Accounting Policies These consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge have been prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP"). The Company has historically reported its consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results in accordance with Canadian GAAP. Beginning with the period ended March 31, 2001 the Company has begun to report its financial results in accordance with U.S. GAAP. Historical consolidated results have been restated to reflect this change. The functional currency of the Company is the Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents . Effective January January: see month. 1, 2001, the Company adopted the U.S dollar as its reporting currency Reporting Currency The currency used in published reports and financial documents. Notes: All annual and quarterly reports state the currency in which their results are listed. . For the current and prior periods, the financial statements of the Company's operations whose reporting currency is other than the U.S. dollar are translated from such reporting currency to U.S. dollars using the current rate method. Under the current rate method, assets and liabilities are translated at the exchange rates in effect at the balance sheet date. Revenues and expenses, including gains and losses on foreign exchange transactions, are translated at average rates for the period. Where the current rate method is used, the unrealized translation gains and losses on the Company's net investment in these operations, including long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. intercompany advances, are accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. in a separate component of shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. , described in the consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. as accumulated other comprehensive loss. The disclosures contained in these unaudited interim consolidated financial statements do not include all requirements of GAAP for annual financial statements. The unaudited interim consolidated financial statements should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the audited consolidated financial statements for the year ended December 31, 2001. The unaudited interim consolidated financial statements are based upon accounting principles consistent with those used and described in the audited consolidated financial statements for the year ended December 31, 2001, other than as noted herein. The unaudited interim consolidated financial statements reflect all adjustments, consisting only of normal recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. , which are, in the opinion of management, necessary to present fairly the financial position of the Company as of March 31, 2002 and the results of operations and cash flows for the quarter ended March 31, 2002 and 2001. 2. Accounting Change Effective January 1, 2002, the Company adopted the new recommendations of the Statement of Financial Accounting Standards ("SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ") with respect to Statement No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ". Under the new accounting standard, which can only be applied prospectively, goodwill and other intangible assets with indefinite INDEFINITE. That which is undefined; uncertain. INDEFINITE, NUMBER. A number which may be increased or diminished at pleasure. 2. When a corporation is composed of an indefinite number of persons, any number of them consisting of a majority of those lives are no longer amortized, but are tested for impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. upon adoption of the new standard and at least annually thereafter. The Company has assessed its goodwill by applying the prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). method of comparing the fair value of its reporting unit to its carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. and determined that there has been no goodwill impairment. The Company does not have any intangible assets with indefinite lives. Had the new accounting standard been applied to last year's net income, the reported net income from continuing operations for the period ending March 31, 2001 would have increased by $18 and the reported basic 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 by $Nil per common. 3. Discontinued Operations On January 23, 2002, the Company announced that it had entered into a binding agreement to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. of substantially all of the operations, product rights and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. and obligations which together constitute the company's Canadian sales and marketing division ("DRAXIS Pharmaceutica"). DRAXIS Pharmaceutica operations had previously been included in the Canadian Pharmaceutical segment, along with deferred revenue and amortization associated with the Company's collaboration Working together on a project. See collaborative software. agreement involving the SpectroPharm product line. Pursuant to APB Opinion APB opinion A determination by the former Accounting Principles Board regarding the way a certain financial transaction is to be treated for reporting purposes. No. 30, "Reporting the Results of Operations - Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently in·fre·quent adj. 1. Not occurring regularly; occasional or rare: an infrequent guest. 2. Occurring Events and Transactions" ("APB APB See Accounting Principles Board (APB). 30"), the results of operations of DRAXIS Pharmaceutica have been reported as discontinued operations and the consolidated financial statements and notes thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. for the quarter ended March 31, 2002 and all comparative periods presented have been restated. Interest expense directly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to license obligations included in the transaction has been allocated to the discontinued operations. The results of discontinued operations, presented in the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. Consolidated Statements of Operations, were as follows:
For the Three Month Period
Ended March 31,
--------------------------
2002 2001
----- -----
Revenues $ 1,602 $ 1,453
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Net loss from discontinued
operations $ (104) $ (241)
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4. Shareholders' Equity As at March 31, 2002, the Company had outstanding 36,935,434 common shares, 470,000 Series C employee participation shares, 125,000 warrants and 3,371,444 options to acquire the Company's common shares. During 2001, the Company discovered that the income tax effect of certain capital transactions that occurred between 1991 and 1996 had been recorded as deferred income tax assets rather than being charged to shareholders' equity. Accordingly, the consolidated balance sheets as at December 31, 2001 and prior periods reflect the restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. to reduce non-current deferred income tax assets, additional paid in capital and accumulated other comprehensive loss by $2,954, $2,701 and $1,076, respectively and to increase deficit by $1,329. 5. Segmented Information Industry Segmentation For purposes of operating decision-making decision-making, n the process of coming to a conclusion or making a judgment. decision-making, evidence-based, n a type of informal decision-making that combines clinical expertise, patient concerns, and evidence gathered from and assessing performance, management considers that it operates in three segments: Radiopharmaceuticals, Manufacturing, and Corporate and Other.
For the Three Month Period
Ended March 31,
--------------------------
2002 2001
----- -----
PRODUCT SALES REVENUES
Radiopharmaceuticals $ 2,992 $ 1,635
Manufacturing 5,075 5,189
Corporate and Other (205) (69)
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$ 7,862 $ 6,755
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ROYALTY AND LICENSING REVENUES
Radiopharmaceuticals $ 84 $ 15
Manufacturing - -
Corporate and Other 2,018 1,643
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$ 2,102 $ 1,658
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TOTAL REVENUES
Radiopharmaceuticals $ 3,076 $ 1,650
Manufacturing 5,075 5,189
Corporate and Other 1,813 1,574
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$ 9,964 $ 8,413
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SEGMENT INCOME(1)
Radiopharmaceuticals $ 887 $ 322
Manufacturing 134 55
Corporate and Other 798 699
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$ 1,819 $ 1,076
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DEPRECIATION AND AMORTIZATION
Radiopharmaceuticals $ 168 $ 140
Manufacturing 276 196
Corporate and Other 228 246
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$ 672 $ 582
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OPERATING INCOME (LOSS)(2)
Radiopharmaceuticals $ 719 $ 182
Manufacturing (142) (141)
Corporate and Other 570 453
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$ 1,147 $ 494
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March 31, 2002 December 31, 2001
IDENTIFIABLE ASSETS
Radiopharmaceuticals $ 10,748 $ 13,558
Manufacturing 28,538 24,906
Corporate and Other 25,201 25,896
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$ 64,487 $ 64,360
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(1) Segment income from continuing operations before depreciation and amortization, interest, income taxes and minority interest. (2) Segment income (loss) from continuing operations before interest, income taxes and minority interest. Geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. Segmentation
For the Three Month Period
Ended March 31,
--------------------------
2002 2001
----- -----
REVENUES(3)
Canada $ 5,826 $ 5,599
United States 4,138 2,814
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$ 9,964 $ 8,413
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March 31, December 31,
2002 2001
LONG-LIVED ASSETS(4)
Canada $ 32,688 $ 32,384
United States - -
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$ 32,688 $ 32,384
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(3) Revenues are attributable to countries based upon the location of the customer. (4) Represents property, plant and equipment, goodwill and intangible assets that are identified with each geographic region. 6. Comparative Information The Company has reclassified certain prior period's information to conform with the current presentation format. |
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