DRAXIS Health Reports Record Revenues for Fourth Quarter and 2000 Full Year Revenues of $52.7 Million Increase 9% Over 1999.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)--Feb. 8, 2001 DRAXIS (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.) DRAXIS Health Inc. (TSE:DAX.)(NASDAQ:DRAX) today reported results for the fourth quarter of 2000. Revenues for the quarter were $15,062,000, an increase of $1,676,000 or 12.5% over the prior year. Fourth quarter 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 of $1,139,000 compares with $534,000 last year while the pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta loss of $1,408,000 compares with a loss of $603,000 in 1999. A net loss of $1,449,000, or $0.04 per share, was recorded in the quarter, prior to a $2,444,000, or $0.07 per share, 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. related to the revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of future income tax assets. In commenting on the fourth quarter results, 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, stated: "Record level revenues were achieved in both the fourth quarter and full year with all divisions contributing to the year-over-year improvement. Full year EBITDA declined due to increased spending in support of product development, new product launches, and continuing third party supply interruptions which affected our ability to meet the demand for our 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. imaging products. DRAXIS remains committed to continued improvements in operations and profitability, while at the same time taking the necessary steps to protect our long term growth potential. During 2000 the Company achieved several important milestones including: the launches of BrachySeed(TM) in the U.S. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and Diastat(R) in Canada, advancement A gift of money or property made by a person while alive to his or her child or other legally recognized heir, the value of which the person intends to be deducted from the child's or heir's eventual share in the estate after the giver's death. of our strategic objective to narrow the Company's focus on prescription pharmaceuticals through the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of our dermatology dermatology (dûrmətŏl`əjē), branch of medicine concerned with diagnosis and treatment of diseases and disorders of the skin. product lines, several advancements in our late stage product pipeline, and near completion of our own lyophilization lyophilization /ly·oph·i·li·za·tion/ (li-of?i-li-za´shun) the creation of a stable preparation of a biological substance by rapid freezing and dehydration of the frozen product under high vacuum. capacity. As we enter 2001 with our infrastructure now largely in place, the Company is poised for continued strong growth."
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FINANCIAL HIGHLIGHTS 1
(thousands of Canadian dollars except
per share amounts and in accordance with Canadian GAAP)
(unaudited)
----------------------------------------------------------------------
2000 1999
----------------------------------------------------------------------
Q4 Q3 Q2 Q1 Q4
----------------------------------------------------------------------
Revenues
Canadian Pharmaceuticals $ 3,181 $ 3,536 $ 4,208 $ 3,518 $ 3,674
Radiopharmaceuticals 1,632 2,171 2,617 2,389 2,324
Companion Animal Health 3,909 1,747 1,679 1,583 1,544
Manufacturing 6,560 4,889 6,497 5,052 5,960
Intercompany (220) (456) (1,081) (685) (116)
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15,062 11,887 13,920 11,857 13,386
----------------------------------------------------------------------
EBITDA 2 (pre-R&D and
restructuring costs) 1,851 1,120 2,114 1,836 1,109
R&D (net) (712) (698) (723) (400) (575)
----------------------------------------------------------------------
EDITDA 2 (pre restructuring
costs) 1,139 422 1,391 1,436 534
----------------------------------------------------------------------
Net Income (Loss) (3,893)3 (1,437) (548) 1,509 (79)
Net Income (Loss)
Per Share $ (0.11)3 $(0.04) $ (0.01) $ 0.04 $(0.00)
Cash and Cash Equivalents $ 6,621 $ 10,099 $ 9,432 $ 9,199 $2,927
Weighted Average Number
of Shares 36,584,730 36,408,792 35,557,366
36,510,051 35,788,318
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1. In 2000, the Company changed its policy with respect to the accounting for non-refundable, up-front up-front or up·front Informal adj. 1. Straightforward; frank. 2. Paid or due in advance: up-front cash. adv. payments. This change has been applied retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin and prior periods have been restated. 2. Earnings (loss) before product rights acquired, depreciation and amortization, financial income (expense), other income, income taxes and non-controlling interest. 3. Includes future income tax revaluation of $2,444,000, or $0.07 per share. FINANCIAL REVIEW Fourth quarter revenues increased 12.5% over 1999 levels with manufacturing, companion animal health, and 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. pharmaceuticals (adjusted for the sale of its dermatology line) posting strong gains. Fourth quarter radiopharmaceutical revenues were unusually low due to temporary manufacturing disruptions. Cost of sales decreased to 51.8% of operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. compared with 58.9% last year due primarily to a change in revenue mix, which included proportionately pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. more 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. income in the quarter. Selling, general and administration expenses of $5,416,000 in the fourth quarter increased 23.4% as compared with last year due to non-recurring costs, the bulk of which relate to the wind-down of the Company's U.S. operations in 2000. Income from operations before depreciation and amortization (EBITDA) of $1,139,000 for the fourth quarter compares with $534,000 in the prior year. Net research and development expenditures totaled $712,000 for the current quarter as compared to $575,000 incurred in 1999. Depreciation and amortization of $2,256,000 during the fourth quarter compares with $1,990,000 for 1999. Canadian Federal and Provincial governments have announced their intention to reduce corporate income tax rates, the effect of which will be to lower tax rates applicable to all of the Company's Canadian operations to 31% over the next six years. As a result of this change, a $2,444,000 charge was recorded in the fourth quarter to reflect the reduced value of the Company's future income tax assets. Loss per share for the fourth quarter was $0.04 before the impact of the $0.07 charge associated with the future income tax revaluation. Earnings per share in 1999, at a breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations level, were positively affected by a gain on sale of investments equivalent to $0.05 per share. Cash and cash equivalents at December December: see month. 31 declined to $6,621,000 as compared to September September: see month. balances of $10,099,000 largely due to higher accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Anipryl(R) royalties, capital expenditures, and cash consumed con·sume v. con·sumed, con·sum·ing, con·sumes v.tr. 1. To take in as food; eat or drink up. See Synonyms at eat. 2. a. in operations. In December 2000, the Company received approval from the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. to extend its share buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may program for a further one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants period. In October October: see month. , the Company purchased for cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. 100,000 of its shares through open market transactions on the Toronto Stock Exchange. CHANGE IN GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). AND 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. The Company's financial results have historically 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 Canadian 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) expressed in Canadian dollars 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 . Beginning in the first quarter of 2001 the Company intends to adopt U.S. GAAP and U.S. dollars for reporting purposes. The decision to adopt U.S. GAAP was influenced by the Company's desire to make it easier for shareholders to assess the Company's financial performance by using accounting rules that apply to most of DRAXIS' customers and peer companies. Canadian GAAP financial statements (in U.S. dollars) will be available to shareholders and will be filed with Canadian 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 . Pursuant to U.S. GAAP and prior to the cumulative effect of the change in accounting policy, the net loss for the year ended December 31, 2000 was $675,000, or $0.02 per share, an improvement of $3,692,000, or $0.10 per share as compared to net income under Canadian GAAP. The following table summarizes DRAXIS' results under both U.S. and Canadian GAAP:
----------------------------------------------------------------------
2000 1999
----------------------------------------------------------------------
Q4 Q3 Q2 Q1 Q4
----------------------------------------------------------------------
(thousands of Canadian dollars
except per share amounts -
unaudited)
US GAAP1
Net Income (Loss) $ (637) $ (625) $ 248 $(29,960)1 $ (296)
Net Income (Loss)
Per Share $(0.02) $(0.02) $0.01 $ (0.84)1 $(0.01)
Canadian GAAP1
Net Income (Loss) $ (3,893)$(1,437) $(548) $ 1,509 $ (79)
Net Income (Loss)
Per Share $ (0.11) $(0.04)$(0.01) $ 0.04 $ (0.00)
----------------------------------------------------------------------
1 In 2000, the Company changed its policy with respect to the accounting for non-refundable, up-front payments. In accordance with Canadian GAAP, this change has been applied retroactively and prior periods have been restated. In accordance with U.S. GAAP, this change has been applied prospectively commencing in 2000 and a charge of $30,299,000, or $0.85 per share, has been recorded in Q1 2000, representing the cumulative effect to December 31, 1999 of this change in policy. Includes future income tax revaluation of $2,444,000, or $0.07 per share. RADIOPHARMACEUTICALS Fourth quarter revenues from the Company's radiopharmaceutical line of $1,632,000 decreased 29.8% as compared to the same period last year due mainly to lower than anticipated 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. (cold kit) production. Throughout 2000 operations have been negatively affected by insufficient and inconsistent Reciprocally contradictory or repugnant. Things are said to be inconsistent when they are contrary to each other to the extent that one implies the negation of the other. supply of lyophilized products from our outside contracted source. This situation is expected to improve significantly once the Company's own lyophilization capacity comes on line later this year. A segment EBITDA loss of $429,000 was incurred in the quarter, as compared with earnings of $665,000 last year, the reduction being largely caused by lower revenues, and increased spending in support of product development and launches. In December 2000, the Company announced the first clinical uses of its BrachySeed(TM) implant implant /im·plant/ (im-plant´) to insert or to graft (tissue, or inert or radioactive material) into intact tissues or a body cavity. for the treatment of prostate cancer prostate cancer, cancer originating in the prostate gland. Prostate cancer is the leading malignancy in men in the United States and is second only to lung cancer as a cause of cancer death in men. . The full product launch of BrachySeed(TM) in both the U.S. and Canada took place in January January: see month. 2001. The Company continues to be optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the outlook for increasing radiopharmaceutical revenues and earnings from existing lyophilized kits, once the Company's own production comes on line, and new products, including the recently approved BrachySeed(TM). In anticipation of higher production requirements from its radioactive ra·di·o·ac·tive adj. Of or exhibiting radioactivity. radioactive characterized by radioactivity. radioactive decay product line, the Company has commenced a $3 million expansion of its existing production area. CANADIAN PHARMACEUTICALS Excluding the impact of dermatology related revenues, sales of prescription pharmaceuticals in the fourth quarter were slightly below last year, while full year revenues were 23.7% ahead of last year due to both new product introductions and organic growth. Segment EBITDA loss for the fourth quarter of $126,000 compares with earnings of $279,000 last year. At the present time, seven products have been filed and await AWAIT, crim. law. Seems to signify what is now understood by lying in wait, or way-laying. approval from the Canadian Therapeutic Products Programme of Health Canada Health Canada (French: Santé Canada) is the department of the government of Canada with responsibility for national public health. Health Canada's goal is to improve Canadian life by improving Canadian longevity, lifestyle and use of public healthcare. (TPP TPP thiamine pyrophosphate. Thiamine pyrophosphate (TPP) The coenzyme containing thiamine that is essential in converting glucose to energy. Mentioned in: Beriberi TPP 1. total plasma protein. 2. ). MANUFACTURING Fourth quarter manufacturing revenues of $6,560,000 tracked 10.1% ahead of 1999 due mainly to new contract manufacturing volumes. Segment EBITDA of $156,000 for the fourth quarter compares with a loss of $189,000 incurred in the corresponding quarter last year. On a full year basis an EBITDA loss of $291,000 was incurred, representing an improvement of $990,000 year over year. In 2001 and beyond, revenue growth and improving earnings are expected to continue, especially once the lyophilization line commences commercial production. COMPANION ANIMAL HEALTH Revenues derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the Company's collaboration Working together on a project. See collaborative software. agreement with Pfizer Pfizer Incorporated (NYSE: PFE) is a major research-based pharmaceutical company, which ranks number two in sales The company is based in New York City. It produces the number-one selling drug Lipitor (atorvastatin, used to lower blood cholesterol); the oral antifungal with respect to Anipryl(R) included $2.1 million accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. in respect of minimum royalties relating to the three-year period ending December 2000. Excluding this amount, fourth quarter revenues increased 15.2% over the prior year. Segment EBITDA for the fourth quarter of $3,451,000 compares with $1,475,000 for 1999. The Company believes there are future entitlements for additional minimum royalties under the Anipryl(R) agreement. The amounts of such future entitlements, however, are not yet determinable Liable to come to an end upon the happening of a certain contingency. Susceptible of being determined, found out, definitely decided upon, or settled. determinable adj. . RESEARCH AND DEVELOPMENT Research and development expenditures increased in the fourth quarter to $712,000 (net), as compared with $575,000 (net) in the corresponding period last year. This reflects increased 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. activity and accelerating development work with respect to Fibrimage(R), the Company's deep venous thrombosis deep venous thrombosis n. Abbr. DVT A condition in which one or more thrombi form in a deep vein, especially in the leg or pelvis, resulting in an increased risk of pulmonary embolism. imaging agent, now in Phase III Noun 1. phase III - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the FDA , and Amiscan(R), about to enter Phase II. On a full year basis, net R&D expenditures were $2,533,000 versus $1,918,000 in 1999 It is the Company's expectation that research and development spending will increase in 2001 over prior year levels. DRAXIS Health Inc. is a diversified diversified (di·verˑ·s specialty pharmaceutical company operating in three niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. : Radiopharmaceuticals (DRAXIMAGE), Companion Animal Health (through its global alliance with Pfizer Inc.), and Canadian sales and marketing (DRAXIS Pharmaceutica). DRAXIS supports its own as well as third party manufacturing requirements through its subsidiary, 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 - FOURTH QUARTER CONFERENCE CALL WILL TAKE PLACE ON THURSDAY Thursday: see week. , FEBRUARY February: see month. 8, 2001 AT 4 PM (EST EST electroshock therapy. EST abbr. electroshock therapy ) TO ACCESS THE CONFERENCE CALL REPLAY DIAL : (800) 558-5253 ACCESS CODE : 17846653 (REPLAY AVAILABLE FROM 6PM (EST) ON FEBRUARY 8 UNTIL MIDNIGHT, FEBRUARY 12, 2001) THE CONFERENCE CALL WILL ALSO BE AVAILABLE VIA AUDIO WEBCAST AND WILL BE ARCHIVED FOR 90 DAYS. THIS CAN BE ACCESSED THROUGH THE COMPANY'S WEBSITE AT WWW WWW or W3: see World Wide Web. (World Wide Web) The common host name for a Web server. The "www-dot" prefix on Web addresses is widely used to provide a recognizable way of identifying a Web site. .DRAXIS.COM (1) (Computer Output Microfilm) Creating microfilm or microfiche from the computer. A COM machine receives print-image output from the computer either online or via tape or disk and creates a film image of each page.
DRAXIS HEALTH INC.
CONSOLIDATED BALANCE SHEETS
(stated in thousands of Canadian dollars and in accordance
with Canadian GAAP)
(unaudited)
December 31,
----------------------------------------------------------------------
2000 1999
----------------------------------------------------------------------
ASSETS
CURRENT
Cash and cash equivalents $ 6,621 $ 2,927
Accounts receivable 10,355 8,306
Inventory 9,390 6,605
Income taxes recoverable 1,113 1,134
Prepaid expenses 3,539 2,105
Future income taxes 1,204 772
----------------------------------------------------------------------
32,222 21,849
Fixed assets 29,228 29,595
Goodwill 6,369 8,211
Patents, licenses and other deferred charges 34,123 39,640
Future income taxes 15,600 15,398
----------------------------------------------------------------------
$ 117,542 $ 114,693
----------------------------------------------------------------------
----------------------------------------------------------------------
Liabilities
CURRENT
Accounts payable and accrued charges $ 7,910 $ 8,100
Bank loan 2,000 3,596
Current portion of deferred revenues 7,341 4,673
Current portion of long term-debt 1,900 6,296
----------------------------------------------------------------------
19,151 22,665
Deferred revenues 32,000 28,036
Long-term debt 13,210 14,723
Non-controlling interest in subsidiary
company 5,291 -
----------------------------------------------------------------------
69,652 65,424
----------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock 74,841 71,333
Employee participation shares 235 498
Less: loans receivable (235) (498)
Warrants 108 628
Contributed surplus 9,701 9,701
Deficit (36,760) (32,393)
----------------------------------------------------------------------
47,890 49,269
----------------------------------------------------------------------
$ 117,542 $ 114,693
----------------------------------------------------------------------
----------------------------------------------------------------------
The comparative 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 reclassified to conform with the current year's presentation In 2000, the Company changed its policy with respect to the accounting for non-refundable, up-front payments. This change has been applied retroactively and prior periods have been restated.
DRAXIS HEALTH INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT (stated in
thousands of Canadian dollars except share related
data and in accordance with Canadian GAAP)
(unaudited)
For the Three Month For the Year
Period
Ended December 31, Ended December 31,
----------------------------------------------------------------------
2000 1999 2000 1999
----------------------------------------------------------------------
$ 15,062 $ 13,386 REVENUES $ 52,727 $ 48,421
----------------------------------------------------------------------
EXPENSES
7,795 7,888 Cost of sales 29,802 26,462
Selling, general
5,416 4,389 and administration 16,002 14,383
- - Restructuring charges 792 -
831 655 Research and development 2,883 2,262
Investment tax credits on
(119) (80) research and development (350) (344)
----------------------------------------------------------------------
13,923 12,852 49,129 42,763
----------------------------------------------------------------------
1,139 534 Income before undernoted 3,598 5,658
- - Product rights acquired - (12,452)
Depreciation and
(2,256) (1,990) amortization (8,435) (7,467)
Financial
95 (315) Interest income 550 111
(386) (460) Financing expense (1,759) (1,495)
Other Income
Gain on reduction of
- - ownership in subsidiary 2,000 -
Gain on disposition
- - of product rights 609 -
Gain on disposition
- 1,628 of investment - 2,701
----------------------------------------------------------------------
Loss before income taxes
(1,408) (603) and non-controlling interest(3,437) (12,944)
----------------------------------------------------------------------
Income taxes
1,058 (558) Current 1,485 493
1,511 34 Future (51) (6,177)
----------------------------------------------------------------------
2,569 (524) 1,434 (5,684)
----------------------------------------------------------------------
Net loss before
(3,977) (79) non-controlling interest (4,871) (7,260)
84 - Non-controlling interest 504 -
----------------------------------------------------------------------
(3,893) (79) Net loss (4,367) (7,260)
Deficit, beginning
(32,867) (32,314) of period (32,393) (25,133)
----------------------------------------------------------------------
$ (36,760) $ (32,393) Deficit, end of period $ (36,760) $ (32,393)
----------------------------------------------------------------------
$ (0.11) $ (0.00) Net loss per share $ (0.12) $ (0.21)
----------------------------------------------------------------------
Share information:
Weighted Average
Number of Shares
36,584,730 35,557,366 Outstanding 36,324,199 33,825,654
Number of Shares
36,565,102 35,557,366 Outstanding 36,565,102 35,557,366
----------------------------------------------------------------------
----------------------------------------------------------------------
The comparative consolidated financial statements have been reclassified to conform with the current year's presentation. In 2000, the Company changed its policy with respect to the accounting for non-refundable, up-front payments. This change has been applied retroactively and prior periods have been restated.
DRAXIS HEALTH INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(stated in thousands of Canadian dollars and
in accordance with Canadian GAAP)
(unaudited)
For the Three Month For the Year
Period
Ended December 31, Ended December 31,
----------------------------------------------------------------------
2000 1999 2000 1999
----------------------------------------------------------------------
CASH FLOWS (USED IN)
FROM OPERATING ACTIVITIES
$ (3,893) $ (79) Net loss $ (4,367) $ (7,260)
Adjustments to reconcile
net loss to cash flow
(used in) from operating
activities
Amortization of
(1,817) (1,167) deferred revenues (6,296) (4,673)
367 286 Amortization of goodwill 1,355 1,144
Depreciation and
1,889 1,704 other amortization 7,080 6,323
Gain on reduction of
- - ownership in subsidiary (2,000) -
Gain on disposition
- - of product rights (609) -
Gain on disposition
- (1,628) of investment - (2,701)
1,225 (2,887) Future income taxes (634) (6,177)
(84) - Non-controlling interest (504) -
371 100 Other 877 335
Changes in current assets
and current liabilities
affecting cash flows from
operations
(1,953) (1,666) Accounts receivable (2,049) 18,969
(363) (244) Inventory (2,785) -
644 649 Income taxes 21 (5,535)
(688) (832) Prepaid expenses (1,434) (1,331)
Accounts payable and
1,627 4,063 accrued charges (190) (3,028)
Current portion of
7 - deferred revenues 2,668 -
----------------------------------------------------------------------
(2,668) (1,701) (8,867) (3,934)
----------------------------------------------------------------------
CASH FLOWS (USED IN) FROM
INVESTING ACTVITIES
(593) (744) Purchase of fixed assets (1,674) (12,256)
Increase in other
- (54) deferred charges, net - (646)
- - Purchase of product rights - (3,611)
Proceeds from disposition of
- - product rights, net 1,096 -
Increase (decrease) in
(68) - deferred revenues 10,260 -
Proceeds from disposition
- 2,083 of investments - 3,392
----------------------------------------------------------------------
(661) 1,285 9,682 (13,121)
----------------------------------------------------------------------
CASH FLOWS (USED IN) FROM
FINANCING ACTIVITIES
350 - Proceeds from bank loan 2,000 6,000
- (2,373) Repayment of bank loan (3,596) (2,404)
- - Proceeds from long-term debt - 3,786
(183) (286) Repayment of long-term debt(6,308) (1,177)
Exercise of warrants and
81 - options 3,385 10,101
Common shares purchased
(397) - for cancellation (397) -
Issue of common shares by
subsidiary to non-controlling
- - interest 7,795 -
----------------------------------------------------------------------
(149) (2,659) 2,879 16,306
----------------------------------------------------------------------
Net increase (decrease)
in cash and cash
(3,478) (3,075) equivalents 3,694 (749)
Cash and cash equivalents,
10,099 6,002 beginning of period 2,927 3,676
----------------------------------------------------------------------
Cash and cash equivalents,
$ 6,621 $ 2,927 end of period $ 6,621 $ 2,927
----------------------------------------------------------------------
----------------------------------------------------------------------
Cash and cash equivalents comprise of cash, commercial paper and treasury bills. The comparative consolidated financial statements have been reclassified to conform with the current year's presentation. In 2000, the Company changed its policy with respect to the accounting for non-refundable, up-front payments. This change has been applied retroactively and prior periods have been restated.
DRAXIS HEALTH INC.
SEGMENTED INFORMATION
(stated in thousands of Canadian dollars and
in accordance with Canadian GAAP)
(unaudited)
For the Three Month For the Year
Period
Ended December 31, Ended December 31,
----------------------------------------------------------------------
2000 1999 2000 1999
----------------------------------------------------------------------
Revenues
$ 3,181 $ 3,674 Canadian Pharmaceuticals $ 14,443 $ 13,525
1,632 2,324 Radiopharmaceuticals 8,809 8,555
3,909 1,544 Companion Animal Health 8,919 8,070
6,560 5,960 Manufacturing 22,998 19,083
(220) (116) Intercompany (2,442) (812)
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$ 15,062 $ 13,386 $ 52,727 $ 48,421
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Segment Income (Loss)1
$ (126) $ 279 Canadian Pharmaceuticals $ 2,238 $ 2,689
(429) 665 Radiopharmaceuticals 811 2,800
3,451 1,475 Companion Animal Health 7,818 7,416
156 (189) Manufacturing (291) (1,281)
(1,788) (1,640) Corporate (6,570) (5,890)
(125) (56) Intercompany (408) (76)
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$ 1,139 $ 534 $ 3,598 $ 5,658
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Depreciation and Amortization
$ 780 $ 669 Canadian Pharmaceuticals $ 2,911 $ 2,252
368 371 Radiopharmaceuticals 1,444 1,341
712 704 Companion Animal Health 2,841 2,837
401 220 Manufacturing 1,201 923
(5) 26 Corporate 38 114
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$ 2,256 $ 1,990 $ 8,435 $ 7,467
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Identifiable Assets
Canadian Pharmaceuticals $ 35,041 $ 37,680
Radiopharmaceuticals 13,917 14,377
Companion Animal Health 23,069 26,175
Manufacturing 38,521 33,015
Corporate 6,994 3,446
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$ 117,542 $ 114,693
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1 Segment income (loss) before product rights acquired, depreciation and amortization, financial income (expense), other income, income taxes and non-controlling interest. In 2000, the Company changed its policy with respect to the accounting for non-refundable, up-front payments. This change has been applied retroactively and prior periods have been restated. |
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