DRAXIS Health Reports Third Quarter Results; Net Income from Continuing Operations of $0.05 Per Share on 46% Revenue Growth.Business Editors/Health/Medical Writers 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)--Nov. 5, 2003 DRAXIS Health Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :DAX) (Nasdaq:DRAX Drax could refer to:
Revenues 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 in the third quarter 2003 were $13.0 million, 46.1% ahead of the third quarter of 2002, and for the first nine months were $34.8 million, up 20.8% over the same period last year. Net income from continuing operations for the quarter more than tripled over 2002 to $1.7 million ($0.05 per share), and for the first nine months of 2003 was up 59.5% over 2002 to $3.3 million ($0.09 per share). Excluding the positive non-recurring impact of a $0.7 million insurance payment received in July July: see month. 2003, net income was $0.04 per share and $0.08 per share for the three and nine month periods. 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 including insurance proceeds for the third quarter was $3.4 million versus $1.0 million in 2002 and for the first nine months of 2002 was $7.4 million versus $4.1 million the prior year.
FINANCIAL HIGHLIGHTS
(thousands of U.S. dollars except per share amounts and in accordance
with U.S. GAAP)
(unaudited)
2003 2002
Q3 Q2 Q1 Q4 Q3
--------------------------------------------------------------------
From Continuing Operations (1)
Revenues $12,965 $11,765 $10,078 $9,836 $8,872
------- ------- ------- ------ ------
EBITDA (2) (pre-R&D) 3,792 2,411 2,300 1,893 1,818
R&D (430) (395) (294) (324) (805)
------- ------- ------- ------ ------
EBITDA (2) 3,362 2,016 2,006 1,569 1,013
------- ------- ------- ------ ------
Net Income (Loss)
From Continuing Operations 1,733 723 806 975 535
From Discontinued Operations 4,112 103 4,204 (266) (143)
------- ------- ------- ------ ------
$5,845 $826 $5,010 $709 $392
------- ------- ------- ------ ------
Basic Income (Loss) Per Share
From Continuing Operations $0.047 $0.019 $0.022 $0.026 $0.014
From Discontinued Operations 0.111 0.003 0.113 (0.007) (0.004)
------- ------- ------- ------ ------
$0.158 $0.022 $0.135 $0.019 $0.010
------- ------- ------- ------ ------
(1) The results of operations of DRAXIS Pharmaceutica have been reported 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. with the exception of revenues and expenses related to Alertec(R). Effective July 22, 2003 revenues and expenses directly related to Alertec(R) will no longer be included in continuing operations since Alertec(R) was included in 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 DRAXIS Pharmaceutica. (2) Income from continuing operations before interest, income taxes, minority interest and depreciation and amortization. This earnings measure does not have a standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. meaning 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). by U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). and therefore may not be comparable to similar measures used by other companies. DRAXIS uses such terms as measures to assess the operating performance of its on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" businesses and believes that most shareholders and investors prefer such measures, since they are consistent with industry practice for analyzing operating performance. Such measures should not be construed as the equivalent of net cash flows from operating activities. "Revenues for the quarter were up substantially while the growth in earnings from continuing operations was even stronger as a result of increased sales of higher margin products including radiopharmaceuticals for the U.S. and 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 for a growing number of international markets," 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. "Our balance sheet reflects a marked improvement in the financial position of the company following the recent divestiture of our 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. pharmaceutical sales and marketing division. We significantly increased our cash and reduced debt levels during the quarter to gain enhanced flexibility to implement our business strategies. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. , before changes in non-financial working capital, was again positive in this third quarter and significantly greater than that recorded in the immediately preceding second quarter of this year, signaling an encouraging trend for the business going forward." Completion of the divestiture of the Company's Canadian pharmaceutical sales and marketing division in July, 2003 resulted in total estimated proceeds of $19.0 million, made up of $16.1 million in cash from 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]. Corporation plc and Shire Shire or Shiré (both: shē`rā), river, c.250 mi (400 km) long, flowing from the southern end of Lake Nyasa, Malawi, SE Africa, to the Zambezi River in central Mozambique. It is navigable to Nsanje. BioChem Inc. with potential for as much as $2.9 million from market driven milestones over the next several years. Royalties Not to be confused with Royal family. Royalties (sometimes, running royalties) are usage-based payments made by one party (the "licensee") to another (the "licensor") for ongoing use of an asset, most typically an intellectual property (IP) right. related to the sale of products in 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 by Shire BioChem Inc. are an additional source of future revenues and earnings. Highlights from 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 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: Operations -- Revenues of $13.0 million for the quarter and $34.8 million for the first nine months of 2003 represent increases over 2002 of 46.1% and 20.8% respectively, driven by increased product sales in both 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. and contract manufacturing businesses. -- Net income from continuing operations for the third quarter was $1.7 million ($0.047 per share) and for the first nine months was $3.3 million ($0.088 per share), compared to $0.5 million ($0.014 per share) and $2.0 million ($0.055 per share) respectively in 2002. Earnings per share were $0.035 for the quarter and $0.076 for the year to date, excluding the non-recurring impact of $0.7 million ($0.012 per share) of insurance proceeds received during the third quarter for losses in 2001 related to a faulty fault·y adj. fault·i·er, fault·i·est 1. Containing a fault or defect; imperfect or defective. 2. Obsolete Deserving of blame; guilty. pump mechanism. -- Earnings from continuing operations before interest, income taxes, minority interest, depreciation and amortization ("EBITDA") of $3.4 million and $7.4 million, including insurance proceeds, for the third quarter and the first nine months of 2003 represent increases of 231.9% and 78.8% over 2002. Improvements in the third quarter were due to increased product sales and changes in product mix driven by new business, partially offset by lower deferred revenues. -- EBITDA margin grew to 25.9% in the third quarter of 2003 from 11.4% in 2002 and to 21.2% for the first nine months of 2003 as compared to 14.3% in the same period in 2002. -- Cash and cash equivalents at September 30, 2003 totalled $10.2 million, compared with $1.9 million at June June: see month. 30, 2003 and $4.9 million at December December: see month. 31, 2002. The increase was due primarily to proceeds from the divestiture of the Canadian pharmaceutical sales and marketing division but was offset by an increase in non-financial working capital due to higher inventory and 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 related to the ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale in product volumes during the year. The weighted average number of common shares outstanding in the third quarter was 37,074,586. -- Total debt at September 30, 2003 decreased to $10.2 million from $13.8 million at June 30, 2003 and $13.6 million at December 31, 2002. During the third quarter the Company repaid its secured revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility at DRAXIS Pharma Pharma may be an abbreviation for:
eliminated its financial obligation related to the license agreement for Permax Per·max A trademark for the drug pergolide mesylate. (R). Radiopharmaceuticals -- Revenues of $4.0 million for the quarter increased $1.5 million or 58.3% over the $2.5 million in the third quarter of 2002 while nine month revenues of $11.9 million are 54.1% greater than the $7.7 million in the same period in 2002, driven largely by growing sales in the U.S. market. -- EBITDA for the quarter of $1.6 million ($1.1 million excluding the non-recurring impact of insurance proceeds) is an increase of $1.9 million over the third quarter of 2002. -- The EBITDA margin for the quarter was 39.5% (27.2% excluding the non-recurring impact of insurance proceeds) compared to a negative margin for the same period in 2002 when the Company incurred inventory losses on radioactive ra·di·o·ac·tive adj. Of or exhibiting radioactivity. radioactive characterized by radioactivity. radioactive decay palladium palladium, chemical element palladium [Gr. Pallas, goddess of wisdom], metallic chemical element; symbol Pd; at. no. 46; at. wt. 106.42; m.p. 1,554°C;; b.p. 2,970°C;; sp. gr. 12.02 at 20°C;; valence +2, +3, or +4. . -- During the quarter a five year agreement was renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. with Bristol-Myers Squibb Bristol-Myers Squibb (NYSE: BMY), colloquially referred to as BMS, is a pharmaceutical corporation, formed by a 1989 merger between pharmaceutical companies Bristol-Myers Company, founded in 1887 by William McLaren Bristol and John Ripley Myers in Clinton, NY (both were Medical Imaging for the marketing and distribution of radiopharmaceutical products in Canada. DRAXIMAGE technetium-99m Technetium-99m is a metastable nuclear isomer of technetium-99, symbolized as 99mTc. The "m" indicates that this is a metastable nuclear isomer. It is a gamma ray emitting isotope used in radioactive isotope medical tests, for example as a radioactive tracer that medical kits plus Indium-111 and Xenon-133 radioisotopes will be distributed exclusively through Bristol-Myers Squibb and remaining products will be marketed non-exclusively. -- DRAXIMAGE received approval from 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. to start two Phase II clinical trials Noun 1. phase II clinical trial - a clinical trial on more persons than in phase I; intended to evaluate the efficacy of a treatment for the condition it is intended to treat; possible side effects are monitored phase II of INFECTON(R), a novel radiopharmaceutical diagnostic imaging agent for detecting and locating infection in patients with difficult to diagnose diagnose /di·ag·nose/ (di´ag-nos) to identify or recognize a disease. di·ag·nose v. 1. To distinguish or identify a disease by diagnosis. 2. signs and symptoms. Enrollment for the two studies has begun and is expected to continue into early 2004. Manufacturing -- Revenues of $7.1 million for the third quarter were $2.5 million or 55.9% over the third quarter of 2002, due largely to increased production of sterile products for U.S. and other international markets coupled with a significantly shorter shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down during the third quarter of 2003 for regular maintenance. -- EBITDA for the quarter of $0.7 million ($0.5 million excluding the non-recurring impact of insurance proceeds) was an increase of $0.8 million compared to the same quarter in 2002. -- The EBITDA margin for the quarter was 9.6% (6.8% excluding the non-recurring impact of insurance proceeds), compared to a negative margin in 2002. -- The manufacturing segment continues to be positively impacted by the commercial production of Hectorol Hectorol™ Endocrinology An agent for managing 2º hyperparathyroidism linked to ESRD, which may used in predialysis Pts (R) Injection for Bone Care International and the ongoing ramp up of production related to the GlaxoSmithKline GlaxoSmithKline plc (LSE: GSK NYSE: GSK) is a British based pharmaceutical, biological, and healthcare company. GSK is a research-based company with a wide portfolio of pharmaceutical products covering anti-infectives, central nervous system (CNS), respiratory, manufacturing agreement, all of which are manufactured in the sterile products area of the facility. Subsequent to the end of the quarter -- In October October: see month. 2003, the Company announced it had been granted a U.S. patent for a new family of chelating compounds that have significant potential for the development of imaging agents to diagnose diseases, including cancerous tumors or metastases Metastasis (plural, metastases) A tumor growth or deposit that has spread via lymph or blood to an area of the body remote from the primary tumor. Mentioned in: Malignant Melanoma . The new compounds are also potentially useful as therapeutic radiopharmaceuticals for the in-vivo treatment of tumours and metastases when combined with more powerful beta-emitting or alpha-emitting radioisotopes. Interim Financial Report This release includes by reference the third quarter interim financial report incorporating the full Management Discussion & Analysis (MD&A) as well as financial statements under both U.S. and Canadian 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 Investor Relations Investor relations The process by which the corporation communicates with its investors. section under Financial Reports, through SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review and EDGAR Edgar or Eadgar (both: ĕd`gər), 943?–975, king of the English (959–75), son of Edmund, king of Wessex. In 957 the Mercians and Northumbrians rebelled against Edgar's brother Edwy and chose Edgar as their king. databases and is available upon request by contacting DRAXIS Investor Relations at 1-877-441-1984. Conference Call DRAXIS has scheduled a conference call to discuss third quarter 2003 financial results at 10 a.m. (ET) on November November: see month. 5, 2003. This call can be accessed by dialing 1-800-682-5077 (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 90 days following the conference call. About DRAXIS Health Inc. DRAXIS Health Inc. (www.draxis.com) is a 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. pharmaceutical company involved in the development, production, marketing and distribution of therapeutic and diagnostic radiopharmaceuticals through DRAXIMAGE Inc. and in the provision of pharmaceutical contract 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 products through DRAXIS Pharma Inc. DRAXIS Health employs nearly 400 staff and reported sales in 2002 in excess of US$38 million. 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. within the meaning 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 as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , which involve risk and uncertainties that may cause actual results to differ materially from the statements made. Such factors include, but are not limited to, timely 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. approval of the Company's products, the ability to obtain and enforce effective patents, the establishment and maintenance of new corporate alliances, compliance with appropriate governmental regulations, 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. The Company does not undertake to update such forward-looking statements to reflect new information, later events or developments. Financial Tables Attached
DRAXIS HEALTH INC.
Consolidated Statements of Operations
In Accordance with U.S. GAAP
--------------------------------------------------------------------
(in thousands of U.S. dollars except share related data)
(unaudited)
For the Three For the Nine
Month Period Month Period
Ended Ended
-------------- --------------
September 30, September 30,
2003 2002 2003 2002
---- ---- ---- ----
REVENUES
$10,987 $6,858 Product sales $28,095 $22,610
1,978 2,014 Royalty and licensing (Note 5)6,713 6,194
---------------------------------------------------------------------
12,965 8,872 34,808 28,804
---------------------------------------------------------------------
EXPENSES
6,811 5,558 Cost of goods sold (Note 4) 19,211 17,452
2,362 1,496 Selling, general and 7,094 5,551
administration
430 805 Research and development 1,119 1,672
809 711 Depreciation and amortization 2,362 2,081
---------------------------------------------------------------------
10,412 8,570 29,786 26,756
---------------------------------------------------------------------
2,553 302 Operating income 5,022 2,048
(172) 128 Interest (expense) income, (1,229) (334)
net
---------------------------------------------------------------------
2,381 430 Income before undernoted 3,793 1,714
644 67 Income taxes 863 (79)
(4) 172 Minority interest 332 252
---------------------------------------------------------------------
1,733 535 Income from continuing 3,262 2,045
operations
4,112 (143) Income (loss) from 8,419 (568)
discontinued operations,
net of taxes (Note 3)
---------------------------------------------------------------------
$5,845 $392 Net income $11,681 $1,477
---------------------------------------------------------------------
---------------------------------------------------------------------
Basic income (loss) per share
-----------------------------
$0.047 $0.014 from continuing operations $0.088 $0.055
0.111 (0.004) from discontinued operations 0.227 (0.015)
---------------------------------------------------------------------
$0.158 $0.010 $0.315 $0.040
---------------------------------------------------------------------
---------------------------------------------------------------------
Diluted income (loss) per share
-------------------------------
$0.047 $0.014 from continuing operations $0.088 $0.055
0.111 (0.004) from discontinued operations 0.227 (0.015)
---------------------------------------------------------------------
$0.158 $0.010 $0.315 $0.040
---------------------------------------------------------------------
---------------------------------------------------------------------
Weighted-average number of shares outstanding
37,074,586 37,081,190 - basic 37,090,383 36,945,476
37,074,586 37,110,924 - diluted 37,090,383 37,420,002
---------------------------------------------------------------------
---------------------------------------------------------------------
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
---------------------------------------------------------------------
(in thousands of U.S. dollars)
(unaudited)
September June March December
30, 30, 31, 31,
2003 2003 2003 2002
---------- ----- ------ -------
ASSETS
CURRENT
Cash and cash equivalents $10,233 $1,904 $5,907 $4,899
Accounts receivable 10,347 8,718 6,177 7,934
Inventories 6,473 8,192 7,252 6,134
Prepaid expenses 823 1,103 507 415
Deferred income taxes, net 1,895 1,545 972 990
29,771 21,462 20,815 20,372
---------------------------------------------------------------------
Property, plant and equipment, net 30,991 30,484 27,777 26,054
Goodwill, net 648 651 596 556
Intangible assets, net 2,400 7,932 7,762 7,724
Other assets 458 540 564 627
Deferred income taxes, net 9,732 12,055 11,656 12,618
---------------------------------------------------------------------
$74,000 $73,124 $69,170 $67,951
---------------------------------------------------------------------
---------------------------------------------------------------------
LIABILITIES
CURRENT
Bank loan $-- $1,537 $534 $884
Accounts payable
and accrued liabilities 7,499 6,899 7,549 9,189
Current portion of deferred revenues 5,412 5,326 5,157 5,142
Current portion of long-term debt 938 1,833 1,678 2,158
Customer deposits 618 1,096 2,124 2,314
---------------------------------------------------------------------
14,467 16,691 17,042 19,687
Deferred revenues 8,891 10,201 11,284 13,852
Long-term debt 9,264 10,388 9,338 10,568
Minority interest 4,096 4,303 3,967 3,617
---------------------------------------------------------------------
$36,718 $41,583 $41,631 $47,724
---------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock, without par value
of unlimited shares
authorized $60,665 $60,582 $60,652 $60,652
Additional paid in capital 15,555 15,555 15,550 15,550
Employee participation shares;
2,000,000 shares authorized 113 140 140 140
Less: loans receivable (113) (140) (140) (140)
Deficit (37,002)(42,847)(43,673)(48,683)
Accumulated other comprehensive loss (1,936) (1,749) (4,990) (7,292)
---------------------------------------------------------------------
37,282 31,541 27,539 20,227
---------------------------------------------------------------------
$74,000 $73,124 $69,170 $67,951
---------------------------------------------------------------------
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 Shareholders' Equity
In Accordance with U.S. GAAP
--------------------------------------------------------------------
(in thousands of U.S. dollars except share related data)
(unaudited)
For the Three Month Period For the Nine Month Period
Ended September 30, Ended September 30,
-------------------------- --------------------------
2003 2002 2003 2002
-------------------------- --------------------------
Common Stock
(Number of Shares)
37,048,390 37,081,190 Balance, beginning 37,098,690 36,613,434
of period
50,000 -- Exercise of options 50,000 450,668
-- -- Exercise of employee -- 17,088
participation shares
-- -- Repurchased for (50,300) --
cancellation
--------------------------------------------------------------------
37,098,390 37,081,190 Balance, end of 37,098,390 37,081,190
period
--------------------------------------------------------------------
Common Stock
$ 60,582 $ 60,597 Balance, beginning of $ 60,652 $ 59,781
period
83 27 Exercise of options 83 789
-- -- Exercise of employee -- 54
participation shares
-- -- Repurchased for (70) --
cancellation
--------------------------------------------------------------------
$ 60,665 $ 60,624 Balance, end of $ 60,665 $ 60,624
period
--------------------------------------------------------------------
Additional Paid In Capital
$ 15,555 $ 15,560 Balance, beginning $ 15,550 $ 15,476
of period
-- (84) Stock compensation -- --
-- -- Common shares 5 --
purchased for
cancellation
--------------------------------------------------------------------
$ 15,555 $ 15,476 Balance, end of $ 15,555 $ 15,476
period
--------------------------------------------------------------------
Employee Participation Shares
$ 140 $ 140 Balance, beginning of $ 140 $ 166
period
(27) -- Cancellation of employee (27) --
participation shares
-- -- Exercise of employee -- (26)
participation shares
--------------------------------------------------------------------
$ 113 $ 140 Balance, end of period $ 113 $ 140
--------------------------------------------------------------------
Employee Participation Shares-Loans
Receivable
$ (140) $ (140) Balance, beginning $ (140) $ (166)
of period
27 -- Cancellation of employee 27 --
participation shares
-- -- Exercise of employee -- 26
participation shares
--------------------------------------------------------------------
$ (113) $ (140) Balance, end of period $ (113) $ (140)
--------------------------------------------------------------------
Warrants
$ -- $ 74 Balance, beginning of $ -- $ 74
period
--------------------------------------------------------------------
$ -- $ 74 Balance, end of period $ -- $ 74
--------------------------------------------------------------------
Deficit
$ (42,847) $ (49,784) Balance, beginning $(48,683) $(50,869)
of period
5,845 392 Net income 11,681 1,477
--------------------------------------------------------------------
$ (37,002) $ (49,392) Balance, end of $ (37,002) $ (49,392)
period
--------------------------------------------------------------------
Accumulated Other Comprehensive
Income (Loss)
$ (1,749) $ (6,007) Balance, beginning $ (7,292) $ (7,584)
of period
(187) (1,321) Other comprehensive 5,356 256
income (loss)
--------------------------------------------------------------------
(1,936) (7,328) Balance, end of period (1,936) (7,328)
--------------------------------------------------------------------
$ 37,282 $ 19,454 Total shareholders' $ 37,282 $ 19,454
equity
--------------------------------------------------------------------
--------------------------------------------------------------------
Comprehensive Income
$ (187) $ (1,321) Foreign currency $ 5,356 $ 256
translation adjustments
--------------------------------------------------------------------
(187) (1,321) Other comprehensive 5,356 256
income (loss)
5,845 392 Net income 11,681 1,477
--------------------------------------------------------------------
$ 5,658 $ (929) Total comprehensive $ 17,037 $ 1,733
income (loss)
--------------------------------------------------------------------
--------------------------------------------------------------------
DRAXIS HEALTH INC.
Consolidated Statements of Cash Flows
In Accordance with U.S. GAAP
--------------------------------------------------------------------
(in thousands of U.S. dollars)
(unaudited)
For the Three Month Period For the Nine Month Period
Ended September 30, Ended September 30,
-------------------------- --------------------------
2003 2002 2003 2002
-------------------------- --------------------------
CASH FLOWS (USED IN) FROM
OPERATING ACTIVITIES
$ 1,733 $ 535 Net income from continuing $ 3,262 $ 2,045
operations
Adjustments to reconcile
net income from
continuing operations to
net cash (used in) from
operating activities
(1,296) (1,574) Amortization of deferred (5,327) (4,732)
revenues
809 711 Depreciation and other 2,362 2,081
amortization
-- (57) Stock compensation -- 28
308 (287) Deferred income taxes 105 (836)
4 (172) Minority interest (332) (252)
121 133 Other 467 249
Changes in operating assets
and operating liabilities
(1,703) 958 Accounts receivable (1,263) 413
155 (231) Inventories (749) 6
67 285 Income taxes (729) (1,043)
270 (3) Prepaid expenses (319) (500)
577 878 Accounts payable and (2,272) (349
accrued liabilities)
--------------------------------------------------------------------
1,045 1,176 (4,795) (2,890)
--------------------------------------------------------------------
--------------------------------------------------------------------
CASH FLOWS (USED IN) FROM
INVESTING ACTIVITIES
(1,387) (1,801) Expenditures for property, (2,399) (3,954)
plant and equipment
-- -- Increase in intangible (122) --
assets
69 -- Increase in deferred revenues 165 899
--------------------------------------------------------------------
(1,318) (1,801) (2,356) (3,055)
--------------------------------------------------------------------
--------------------------------------------------------------------
CASH FLOWS (USED IN) FROM
FINANCING ACTIVITIES
4,023 -- Proceeds from bank loan 4,942 314
(5,525) -- Repayment of bank loan (5,927) (708)
-- 690 Proceeds from long-term debt 947 2,588
(230) -- Repayment of long-term (2,772) (172)
debt
25 15 Proceeds from customer 80 260
deposits
(490) -- Repayment of customer (2,070) --
deposits
83 -- Exercise of warrants and 83 816
options
-- -- Common shares purchased for (65) --
cancellation
-- -- Issue of common shares by 365 267
subsidiary to minority
interest
(140) -- Repurchase of common shares (140) --
by subsidiary from minority
interest
--------------------------------------------------------------------
(2,254) 705 (4,557) 3,365
--------------------------------------------------------------------
116 90 Effect of foreign exchange 124 (41)
rate changes on cash and
cash equivalents
--------------------------------------------------------------------
(2,411) 170 Net cash (used in) from (11,584) (2,621)
continuing operations
10,740 26 Net cash from (used in) 16,918 (639)
discontinued operations
--------------------------------------------------------------------
8,329 196 Net increase (decrease) in 5,334 (3,260)
cash and cash equivalents
--------------------------------------------------------------------
1,904 2,146 Cash and cash equivalents, 4,899 5,602
beginning of period
--------------------------------------------------------------------
$ 10,233 $ 2,342 Cash and cash equivalents,$ 10,233 $ 2,342
end of period
--------------------------------------------------------------------
--------------------------------------------------------------------
Additional Information
$ 122 $ 169 Interest paid $ 578 $ 320
$ 588 $ 19 Income taxes paid $ 1,606 $ 1,791
--------------------------------------------------------------------
--------------------------------------------------------------------
DRAXIS HEALTH INC.
Notes to the Consolidated Financial Statements
In Accordance with U.S. GAAP
---------------------------------------------------------------------
(in thousands of U.S. dollars except share related data)
(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 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 however 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. is the U.S. dollar. 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, 2002. 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, 2002, 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 September 30, 2003 and the results of operations and cash flows for the quarter ended September 30, 2003 and 2002. 2. Accounting Change Effective January January: see month. 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 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. 3. Discontinued Operations In January 2002, the Company announced that it had entered into a binding letter of intent (subject to satisfaction of various conditions) to sell DRAXIS Pharmaceutica to Elan. On June 4, 2002, the Company announced that it had modified mod·i·fy v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. the terms of the proposed sales, primarily by the exclusion exclusion /ex·clu·sion/ (eks-kloo´zhun) 1. a shutting out or elimination. 2. surgical isolation of a part, as of a segment of intestine, without removal from the body. of the product rights to Alertec(R). DRAXIS received several non-binding offers related to the possible acquisition of DRAXIS Pharmaceutica following the August 2002 announcement that Elan had decided not to proceed with its planned acquisition of this division. On March 31, 2003, the Company amended its License, Distribution and Supply Agreement with Elan to return the Canadian rights for several of Elan's neurology neurology (n  rŏl`əjē, ny–), study of the morphology, physiology, and pathology of the human nervous system. products in exchange for a cash payment of
$6,500 and realized an after tax gain of $4,286 on this transaction.On July 22, 2003, the Company completed the divestiture of DRAXIS Pharmaceutica with the sale to Shire BioChem Inc. ("Shire"), of substantially all remaining products of the division. The Company has received $9,600 in cash from Shire and could receive up to $2,900 in market driven milestones over the next several years. The Company realized an after tax gain of $4,054, net of transaction and related charges. In addition, the Company will receive 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. payments based on the continuing Canadian sales of the products. The Company also received the value of acquired inventories and Shire is now responsible for all financial provisions of the license agreement related to Permax(R). 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 September 30, 2003 and all comparative periods presented have been restated. In the second quarter of 2002, the Company resolved to retain ownership of the Canadian rights to Alertec(R) and continue to market and sell Alertec(R) in Canada itself. Accordingly, discontinued operations no longer include revenues and expenses directly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to Alertec(R) up until such time the third party approval can be obtained. As a result of the ability to obtain third party approval upon closing with Shire, management decided to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose Alertec(R) through the sale of the Canadian rights to Shire. Interest expense directly attributable 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 For the Nine
Month Period Month Period
Ended Ended
September 30, September 30,
-------------- ---------------
2003 2002 2003 2002
------- ------- ------- ------
$ 493 $ 2,020 Revenues $ 4,113 $ 4,885
--------------------------------------------------------------------
58 (143) 79 (568)
Operating income (loss)
from discontinued
operations - net of tax
4,054 - Net gain on disposal of 8,340 -
product rights - net of tax
---------------------------------------------------------------------
$ 4,112 $ (143) Net income (loss) from $ 8,419 $ (568)
discontinued operations -
net of tax
---------------------------------------------------------------------
---------------------------------------------------------------------
4. 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 On July 28, 2003, DRAXIS received insurance proceeds of $730 in settlement of physical damage and business interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. losses related to installation problems of its first lyophilizer unit in 2000. The damage resulted in, amongst other things, delays in the commissioning of the 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. unit and in obtaining FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. approvals for the transfer of production of the DRAXIMAGE 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 to DRAXIS Pharma Inc. FDA approval was ultimately obtained in 2001 and costs incurred related to the incident were charged to the income statement when incurred. No accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. for insurance proceeds had been previously recorded as the claim represented a contingent Fortuitous; dependent upon the possible occurrence of a future event, the existence of which is not assured. The word contingent denotes that there is no present interest or right but only a conditional one which will become effective upon the happening of the gain. The proceeds were recognized as a reduction to cost of goods sold in the third quarter of 2003. 5. Deferred Revenue In January 2003, DRAXIMAGE's agreements with its BrachySeed(R) licensee licensee n. a person given a license by government or under private agreement. (See: license, licensor) LICENSEE. One to whom a license has been given. 1 M. Q. & S. 699 n. in the U.S. was effectively terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: with no further transactions taking place on under the agreement. A formal agreement was subsequently reached with its licensee for terminating both the License and Distribution Agreement and Product Manufacturing and Supply Agreement for BrachySeed(R) implants in the U.S. Under the terms of the original agreement, non-refundable milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. payments received from the licensee were deferred and amortized into income over the contractual period of the agreement to December 31, 2010. As a result of the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of the agreements in January, the unamortized portion of the non-refundable milestone payments of $1,436 was included in income for the nine month period ended September 30, 2003 as royalty and licensing revenue. 6. Shareholders' Equity (a) Stock Option Plan The following is a summary of common shares issuable pursuant to outstanding stock options:
For the Three For the Nine
Month Period Month Period
Ended Ended
September 30, September 30,
-------------- ----------------
2003 2002 2003 2002
------- ------- ---------- ----------
3,407,109 3,244,276 Balance, beginning 3,314,109 3,358,444
of period
Increase (decrease)
resulting from:
445,000 322,500 Granted 735,000 702,500
(50,000) - Exercised (50,000) (450,668)
(175,000) - Cancelled (180,000) (43,500)
(284,333) (56,000) Expired (476,333) (56,000)
---------------------------------------------------------------------
3,342,776 3,510,776 Balance, end of 3,342,776 3,510,776
period
---------------------------------------------------------------------
---------------------------------------------------------------------
(b) Stock-based Compensation Costs
The following outlines the impact and assumptions used if the
compensation cost for the Company's stock options was determined
under the fair value based method of accounting.
For the Three For the Nine
Month Period Month Period
Ended Ended
September 30, September 30,
-------------- ---------------
2003 2002 2003 2002
------- ------- ---------- -------
$ 5,845 $ 392 Net income as reported $ 11,681 $ 1,477
(98) (201) Pro forma impact (506) (540)
---------------------------------------------------------------------
$ 5,747 $ 191 Pro forma net income $ 11,175 $ 937
---------------------------------------------------------------------
---------------------------------------------------------------------
$ 0.158 $ 0.010 Basic net income per $ 0.315 $ 0.040
share, as reported
(0.003) (0.005) Pro forma impact (0.014) (0.015)
per share
---------------------------------------------------------------------
$ 0.155 $ 0.005 Pro forma net income $ 0.301 $ 0.025
per share (Basic)
$ 0.155 $ 0.005 Pro forma net income $ 0.301 $ 0.025
per share (Diluted)
---------------------------------------------------------------------
---------------------------------------------------------------------
0.0% 0.0% Dividend yield 0.0% 0.0%
60%-62% 62%-64 Expected volatility 60%-62% 62%-64%
3.8%-4.0% 4.1%-5.6 Risk-free interest rate 3.8%-4.1% 4.1%-5.6%
5-10 yrs 5 yrs Expected option life 5-10 yrs 5 yrs
---------------------------------------------------------------------
---------------------------------------------------------------------
7. Segmented Information
Industry Segmentation
For purposes of operating decision-making and assessing performance,
management considers that it operates in three segments:
Radiopharmaceuticals, Manufacturing, and Corporate and Other.
For the Three For the Nine
Month Period Month Period
Ended Ended
September 30, September 30,
-------------- ---------------
2003 2002 2003 2002
------- ------- ---------- -------
PRODUCT SALES REVENUES
$ 4,012 $ 2,407 Radiopharmaceuticals $ 10,362 $ 7,388
7,079 4,542 Manufacturing 18,317 15,560
(104) (91) Corporate and Other (584) (338)
---------------------------------------------------------------------
$ 10,987 $ 6,858 $ 28,095 $ 22,610
---------------------------------------------------------------------
ROYALTY AND LICENSING
REVENUES
$ -- $ 128 Radiopharmaceuticals $ 1,521 $ 323
-- -- Manufacturing -- --
1,978 1,886 Corporate and Other 5,192 5,871
---------------------------------------------------------------------
$ 1,978 $ 2,014 $ 6,713 $ 6,194
---------------------------------------------------------------------
TOTAL REVENUES
$ 4,012 $ 2,535 Radiopharmaceuticals $ 11,883 $ 7,711
7,079 4,542 Manufacturing 18,317 15,560
1,874 1,795 Corporate and Other 4,608 5,533
---------------------------------------------------------------------
$ 12,965 $ 8,872 $ 34,808 $ 28,804
---------------------------------------------------------------------
SEGMENT INCOME (LOSS)1
$ 1,585 $ (305) Radiopharmaceuticals $ 4,468 $ 583
681 (94) Manufacturing 492 234
1,096 1,412 Corporate and Other 2,424 3,312
---------------------------------------------------------------------
$ 3,362 $ 1,013 $ 7,384 $ 4,129
---------------------------------------------------------------------
---------------------------------------------------------------------
DEPRECIATION AND
AMORTIZATION
$ 215 $ 185 Radiopharmaceuticals $ 610 $ 530
354 295 Manufacturing 1,014 859
240 231 Corporate and Other 738 692
---------------------------------------------------------------------
$ 809 $ 711 $ 2,362 $ 2,081
---------------------------------------------------------------------
---------------------------------------------------------------------
OPERATING INCOME (LOSS)2
$ 1,370 $ (490) Radiopharmaceuticals $ 3,858 $ 53
327 (389) Manufacturing (522) (625)
856 1,181 Corporate and Other 1,686 2,620
---------------------------------------------------------------------
$ 2,553 $ 302 $ 5,022 $ 2,048
---------------------------------------------------------------------
---------------------------------------------------------------------
September 30, June 30, March 31, December 31,
2003 2003 2003 2002
--------------- ---------- ----------- -------------
IDENTIFIABLE
ASSETS
Radiopharmaceuticals $ 11,498 $ 11,979 $ 10,618 $ 10,823
Manufacturing 39,658 37,391 32,536 30,701
Corporate and Other 22,844 23,754 26,016 26,427
---------------------------------------------------------------------
$ 74,000 $ 73,124 $ 69,170 $ 67,951
---------------------------------------------------------------------
---------------------------------------------------------------------
1 Segment income (loss) 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 Segmentation
For the Three For the Nine
Month Period Month Period
Ended Ended
September 30, September 30,
-------------- ---------------
2003 2002 2003 2002
------- ------- ---------- -------
REVENUES(1)
$ 5,193 $ 4,955 Canada $ 15,926 $ 17,189
7,564 3,902 United States 18,542 11,482
208 15 Other 340 133
--------------------------------------------------------------------
$ 12,965 $ 8,872 $ 34,808 $ 28,804
--------------------------------------------------------------------
--------------------------------------------------------------------
September 30, June 30, March 31, December 31,
2003 2003 2003 2002
--------------- ---------- ----------- -------------
LONG-LIVED
ASSETS(2)
Canada $ 34,039 $ 39,067 $ 36,135 $ 34,334
United States -- -- -- --
--------------------------------------------------------------------
$ 34,039 $ 39,067 $ 36,135 $ 34,334
--------------------------------------------------------------------
--------------------------------------------------------------------
(1) Revenues are attributable to countries based upon the location of
the customer.
(2) Represents property, plant and equipment, goodwill and intangible
assets that are identified with each geographic region.
8. Comparative Information
The Company has reclassified certain prior period's information to
conform with the current presentation format.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion