DRAXIS Reports Strong Fourth Quarter and Year End Results.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)--Feb. 6, 2004 Earnings per share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of 4 cents for Q4 and 13 cents for 2003 Revenues from continuing operations up 46% for Q4 and 27% for fiscal 2003 DRAXIS Health Inc. (Nasdaq:DRAX Drax could refer to:
TSX Transfer from Stack Pointer to Index TSX True Space Extension :DAX) reported results for the fourth quarter and the year ended December December: see month. 31, 2003. All amounts are expressed in U.S. dollars. Revenues from continuing operations in the fourth quarter of 2003 increased 46% to $14.4 million from $9.8 million in the fourth quarter of 2002. Fiscal 2003 revenues from continuing operations were $49.2 million, up 27% over $38.6 million in 2002. Revenues for the year include the recognition of $1.4 million of deferred revenue in the first quarter related to the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of a BrachySeed(R) distribution agreement. Net income from continuing operations in the fourth quarter of 2003 increased 45% to $1.4 million ($0.04 per share) from $1.0 million ($0.03 per share) in the fourth quarter of 2002. Net income from continuing operations for 2003 increased 55% to $4.7 million ($0.13 per share) from $3.0 million ($0.08 per share) in 2002.
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FINANCIAL HIGHLIGHTS
(thousands of U.S. dollars except per share amounts and in
accordance with U.S. GAAP)
(unaudited)
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2003 2002
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Q4 Q3 Q2 Q1 Q4
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From Continuing Operations(1)
-----------------------------
Revenues $14,385 $12,965 $11,765 $10,078 $9,836
------- ------- ------- ------- ------
EBITDA(2)(pre-R&D) 3,064 3,792 2,411 2,300 1,893
R&D (475) (430) (395) (294) (324)
----- ----- ----- ----- -----
EBITDA(2) 2,589 3,362 2,016 2,006 1,569
----- ----- ----- ----- -----
Net Income (Loss)
-----------------
From Continuing Operations 1,409 1,733 723 806 975
From Discontinued Operations 112 4,112 103 4,204 (266)
--- ----- --- ----- -----
$1,521 $5,845 $826 $5,010 $709
------ ------ ---- ------ ----
Basic Income (Loss) Per Share
-----------------------------
From Continuing Operations $0.038 $0.047 $0.019 $0.022 $0.026
From Discontinued Operations 0.003 0.111 0.003 0.113 (0.007)
----- ----- ----- ----- -------
$0.041 $0.158 $0.022 $0.135 $0.019
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(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 July: see month. 22, 2003 revenues and expenses directly related to Alertec(R) are no longer 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. "We have experienced significant growth in our core businesses throughout the year and this trend continued in the fourth quarter, on track with our plan," 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. "In our manufacturing business, increased production volumes in our 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 department (SPD (Serial Presence Detect) The method used by DIMM memory modules to communicate their capacity and features to the computer. Data such as manufacturer, size, speed, voltage and row and column addresses are stored in an EEPROM chip on the module. ) have begun to positively impact results. We added a shift during the summer of 2003 and continue to 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 production for 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, and introduce new products. In our radiopharmaceuticals business, fourth quarter revenues matched those of the strong third quarter and achieved 72% growth over the fourth quarter of 2002. Sales of Iodine iodine (ī`ədīn, –dĭn) [Gr.,=violet], nonmetallic chemical element; symbol I; at. no. 53; at. wt. 126.9045; m.p. 113.5°C;; b.p. 184.35°C;; sp. gr. 4.93 at 20°C;; valence −1, +1, +3, +5, or +7. I-131 products in the U.S. remain robust and we continue to increase our share of that market". Dr. Barkin also noted that, "Further progress has been made in our pipeline of innovative proprietary products. Fibrimage(R), our unique agent for the diagnostic imaging of Deep Vein Thrombosis A blood clot (thrombos) in a vein deep within the muscle, typically in the thigh or calf. It is caused by disease or the lack of activity such as sitting for hours at a computer screen. , continued to advance through 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 clinical evaluation clinical evaluation Medtalk An evaluation of whether a Pt has symptoms of a disease, is responding to treatment, or is having adverse reactions to therapy toward our objective of filing with regulators for marketing approval in the second half of 2004. In addition, patient enrollment continued in the two Phase II trials evaluating INFECTON(R), our unique imaging agent that promises to fill the unmet un·met adj. Not satisfied or fulfilled: unmet demands. medical need for detecting difficult-to-diagnose infection and differentiate differentiate /dif·fer·en·ti·ate/ (dif?er-en´she-at) 1. to distinguish, on the basis of differences. 2. to develop specialized form, character, or function differing from that surrounding it or from the original. infection from inflammation inflammation, reaction of the body to injury or to infectious, allergic, or chemical irritation. The symptoms are redness, swelling, heat, and pain resulting from dilation of the blood vessels in the affected part with loss of plasma and leucocytes (white blood ." In 2003 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 margins for both core businesses and for the Company overall continue to increase as a result of increasing capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. and the introduction of new, higher margin products. EBITDA margins for the year include the recognition in the third quarter of $0.7 million of non-recurring insurance proceeds, which reduced the 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 . Notwithstanding the increased margins for 2003, the strengthening of 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 , combined with the growing volume of business denominated in U.S. dollars, negatively affected gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. compared to 2002. The Company's balance sheet and liquidity position remained strong in the fourth quarter. 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. for the quarter was positive and the cash position increased from $10.2 million at the beginning of the fourth quarter to $11.5 million at the end of the quarter. 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 $14.4 million for the quarter and $49.2 million for 2003 were, respectively, 46.2% and 27.3% ahead of 2002, including $1.4 million in non-recurring deferred revenue in the first quarter related to the termination of agreements for BrachySeed(R). -- Net income from continuing operations was $1.4 million ($0.038 per share) for the fourth quarter and $4.7 million ($0.126 per share) for 2003, compared to $1.0 million ($0.026 per share) and $3.0 million ($0.081 per share), respectively, in 2002. -- Earnings before interest, income taxes, minority interest, depreciation and amortization, ("EBITDA") for the quarter grew 65.0% over the fourth quarter of 2002 to $2.6 million and for fiscal 2003 increased 75.0% over 2002 to $10.0 million ($7.9 million after excluding the positive non-recurring impact of $1.4 million in deferred revenue related to termination of BrachySeed(R) agreements and the recognition of a $0.7 million in insurance proceeds as a reduction of cost of goods sold). -- The EBITDA margin for the quarter grew from 16.0% in 2002 to 18.0% in 2003 and for the year grew from 14.7% in 2002 to 20.3% in 2003 (16.0% excluding the impact of the positive non-recurring items) in 2003. -- Cash flow from continuing operations, before changes in working capital, increased to $1.2 million for the fourth quarter and $1.7 million for fiscal 2003, compared to cash outflows of $0.2 million and $1.8 million, respectively, for the corresponding 2002 periods. -- To further concentrate support for the operating businesses, which are located in Montreal Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. , Alida Gualtieri, former partner in McCarthy Mc·Car·thy , Joseph Raymond 1908-1957. American politician. A U.S. senator from Wisconsin (1947-1957), he presided over the permanent subcommittee on investigations and held public hearings in which he accused army officials, members of the media, Tetrault's Montreal offices, was appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. to the position of Corporate Secretary and General Counsel. -- In November November: see month. 2003, the Company and the University of Toronto Research at the University of Toronto has been responsible for the world's first electronic heart pacemaker, artificial larynx, single-lung transplant, nerve transplant, artificial pancreas, chemical laser, G-suit, the first practical electron microscope, the first cloning of T-cells, and the University of Toronto Innovations Foundation mutually agreed to dismiss dismiss v. the ruling by a judge that all or a portion (one or more of the causes of action) of the plaintiff's lawsuit is terminated (thrown out) at that point without further evidence or testimony. , without payment, the lawsuits between them with respect to Anipryl(R). Radiopharmaceuticals -- Fourth quarter revenues increased 71.9% to $4.2 million from $2.4 million in the fourth quarter of 2002 while fiscal 2003 revenues, including $1.4 million of non-recurring revenues, increased 58.4% to $16.1 million from $10.2 million in 2002. Sales growth came from diagnostic imaging kit products and substantial shipments to the U.S. of the new radiotherapeutic ra·di·o·ther·a·peu·tic adj. Relating to radiotherapy or to radiotherapeutics. kit product (Sodium Iodide Noun 1. sodium iodide - a crystalline salt used like potassium iodide iodide - a salt or ester of hydriodic acid I-131) for the treatment of thyroid thyroid /thy·roid/ (thi´roid) 1. the thyroid gland; see under gland. 2. pertaining to the thyroid gland. 3. scutiform. 4. cancer and hyperthyroidism hyperthyroidism: see thyroid gland. , beginning in the second quarter of 2003. -- EBITDA was $1.1 million for the quarter and $5.6 million ($3.7 million excluding the impact of non-recurring items) for the year, substantially greater than the $0.1 million and $0.7 million, respectively, in 2002. -- The EBITDA margin for the fourth quarter increased to 27.3% from 5.0% in 2002 and for the year increased to 34.9% (25.2% excluding non-recurring items) from 7.0% for 2002. The increase reflects a higher-margin product mix in 2003 and the negative impact on margins 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. . -- DRAXIMAGE continued to enroll TO ENROLL. To register; to enter on the rolls of chancery, or other court's; to make a record. patients in both the Phase III clinical trial for Fibrimage(R) and in two Phase II clinical trials for INFECTON(R) 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 . The current trials for both products are expected to continue through the first half of 2004. Manufacturing -- Fourth quarter revenues increased 60.9% to $8.7 million from the fourth quarter of 2002 while fiscal 2003 revenues increased 28.8% over 2002 to $27.0 million. Increases were driven primarily by substantial increases in volumes of sterile products for U.S. and international markets. Increased capacity utilization from an additional shift added during the summer is reflected in fourth quarter revenues. -- EBITDA for the quarter increased 50.6% to $0.6 million and for the year increased 72.9% to $1.1 million compared to the corresponding periods in 2002 as a result of increased product sales and the higher-margin product mix related to new sterile products business. -- The EBITDA margin for the fourth quarter was 6.8% and for the year 2003 was 4.0%, compared to 7.3% and 3.0%, respectively, for 2002. The fourth quarter of 2003 was impacted by reduced production during December 2003 related to scheduled maintenance and capital activities. -- The manufacturing business continues to be impacted by the ramp up in commercial shipments of sterile injectable in·ject·a·ble adj. Capable of being injected. Used of a drug. n. A drug or medicine that can be injected. products. Subsequent to December 31, 2003 -- A tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. settlement to renew the collective agreement covering unionized hourly employees at the Company's contract manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. was announced in January January: see month. , 2004 subject to ratification The confirmation or adoption of an act that has already been performed. A principal can, for example, ratify something that has been done on his or her behalf by another individual who assumed the authority to act in the capacity of an agent. by the unionized employees. Outlook The operational focus for 2004 is to continue to improve near-term near-term adj. Of, for, or involving a short period of time in the near future. financial and operational performance of both operating businesses through increased sales of existing products and services and improved manufacturing efficiency and effectiveness. Longer term growth is expected to be achieved through the development of the product pipeline as well as the identification of new business opportunities that are consistent with the Company's focus and capabilities in radiopharmaceuticals and contract manufacturing. Radiopharmaceuticals The radiopharmaceuticals business is expected to grow in 2004 through increasing sales of existing products in the U.S., the introduction of new products into the U.S. and expansion into Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .
Sales of BrachySeed(R) implants are expected to increase in 2004
following the implementation of direct marketing, sales and distribution
strategies in 2003.In 2004 the Company expects to substantially increase its investment in research and development activities over 2003 for its radiopharmaceutical radiopharmaceutical /ra·dio·phar·ma·ceu·ti·cal/ (-fahr?mah-soo´ti-k'l) a radioactive pharmaceutical, nuclide, or other chemical used for diagnostic or therapeutic purposes. product pipeline. The Company plans to complete the Phase III clinical trial Noun 1. phase III clinical trial - 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 of Fibrimage(R) and to further support Phase II and Phase III clinical evaluations of INFECTON(R). Radiopharmaceutical revenue for 2004 is expected to grow between 30 and 35%. The EBITDA margin is expected to be between 23 and 28%, including the ramp up of research and development spending in 2004 for late stage clinical trials of both Fibrimage(R) and INFECTON(R). The Company's 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. growth target continues to be to achieve radiopharmaceutical revenues of $30 million to $35 million by 2007 (representing more than three times its 2002 base), together with improving profitability margins. These target ranges do not include any provision for the positive impact that would occur as a result of commercialization of any of the Company's products currently in Phase III or 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 . Manufacturing The long-term objective for the manufacturing business is to leverage existing production capabilities and 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. excellence to increase revenues and capacity utilization while managing costs. Demand for the Company's sterile product capacity, including 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. and non-lyophilized production, continues to grow and create challenges. To meet this challenge the Company plans to increase capacity through additional production shifts, production efficiencies and capital investment. In 2004, the Company will seek to increase capacity utilization of the non-sterile production area by increasing new business activities. Manufacturing revenue for 2004 is expected to grow between 20 and 25% coupled with improving EBITDA margins of 8 to 12% by the end of 2004. The long-term target is to achieve manufacturing revenues from the Montreal facility of $40 million to $50 million by 2007 (representing more than two times its 2002 base), with EBITDA margins of 15 to 20%. In 2004 the Company will complete its three year, $12 million capital plan including the installation of new autoclave autoclave Vessel, usually of steel, able to withstand high temperatures and pressures. The chemical industry uses various types of autoclaves in manufacturing dyes and in other chemical reactions requiring high pressures. capacity and the second lyophilizer, which will triple current capacity in this specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. area. Installation and the rigorous validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. process that is required before commercial production can begin is expected to be completed in the second half of 2004. Significant contribution is not expected before 2005. Consolidated Operations The Company has significantly reduced its debt levels during 2003 and plans to continue to reduce and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. restructure its existing third party debt arrangements in a manner consistent with best serving the future growth of its core businesses. Operating cash flow is expected to be positive in 2004 and is expected to continue to grow over 2003 operating cash flow levels. Interim Financial Report This release includes by reference the fourth quarter interim financial report incorporating the full Management Discussion & Analysis (MD&A) as well as financial statements under both U.S. 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. 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 SEDA SEDA Staff and Educational Development Association SEDA Sustainable Energy Development Authority (Australia) SEDA Social and Economic Data Analysis SEDA Special Ed Assistant SEDA South East Drift Association 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 the fourth quarter and year end 2003 financial results at 10 a.m. (ET) on February February: see month. 6, 2004. This call can be accessed by dialing 1-800-428-5596 (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 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. 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 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 US 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
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(in thousands of U.S. dollars except share related data)
(unaudited)
For the Three
Month Period For the Year
Ended December 31, Ended December 31,
------------------ ------------------
2003 2002 2003 2002
------- ------- ------- -------
REVENUES
$ 12,440 $ 7,728 Product sales $ 40,535 $ 30,338
Royalty and licensing
1,945 2,108 (Note 5) 8,658 8,302
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14,385 9,836 49,193 38,640
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EXPENSES
8,511 5,952 Cost of goods sold (Note 4) 27,722 23,404
Selling, general and
2,810 1,991 administration 9,904 7,542
475 324 Research and development 1,594 1,996
925 723 Depreciation and amortization 3,287 2,804
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12,721 8,990 42,507 35,746
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1,664 846 Operating income 6,686 2,894
Interest (expense) income,
(303) 54 net (1,532) (280)
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1,361 900 Income before undernoted 5,154 2,614
11 (75)Income taxes 874 (154)
59 -- Minority interest 391 252
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Income from continuing
1,409 975 operations 4,671 3,020
Income (loss) from
discontinued operations,
112 (266) net of taxes (Note 3) 8,531 (834)
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$ 1,521 $ 709 Net income $ 13,202 $ 2,186
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Basic income (loss) per share
-----------------------------
$ 0.038 $ 0.026 from continuing operations $ 0.126 $ 0.081
0.003 (0.007) from discontinued operations 0.230 (0.023)
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$ 0.041 $ 0.019 $ 0.356 $ 0.058
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Diluted income (loss) per share
-------------------------------
$ 0.038 $ 0.026 from continuing operations $ 0.126 $ 0.081
0.003 (0.007) from discontinued operations 0.229 (0.023)
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$ 0.041 $ 0.019 $ 0.355 $ 0.058
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Weighted-average number
of shares outstanding
37,186,652 37,090,320 - basic 37,114,648 36,981,985
37,508,037 37,090,320 - diluted 37,194,994 37,337,879
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These interim consolidated financial statements are preliminary and
are subject to change. The Company disclaims any intention or
obligation to update these interim consolidated financial statements
prior to the filing of its audited consolidated financial statements
for the year ended December 31, 2003.
DRAXIS HEALTH INC.
Consolidated Balance Sheets
In Accordance with U.S. GAAP
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(in thousands of U.S. dollars)
(unaudited)
December 31, December 31,
2003 2002
------------ ------------
ASSETS
CURRENT
Cash and cash equivalents $ 10,563 $ 4,899
Restricted cash 976 --
Accounts receivable, net 9,927 7,934
Inventories 6,096 6,134
Prepaid expenses 688 415
Deferred income taxes, net 2,806 990
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31,056 20,372
Property, plant and equipment, net 32,917 26,054
Goodwill, net 677 556
Intangible assets, net 1,974 7,724
Other assets 565 627
Deferred income taxes, net 9,393 12,618
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$ 76,582 $ 67,951
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LIABILITIES
CURRENT
Bank loan $ -- $ 884
Accounts payable and accrued
liabilities 7,026 9,189
Current portion of deferred revenues 5,309 5,142
Current portion of long-term debt 981 2,158
Customer deposits 591 2,314
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13,907 19,687
Deferred revenues 7,593 13,852
Long-term debt 9,485 10,568
Minority interest 4,239 3,617
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$ 35,224 $ 47,724
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SHAREHOLDERS' EQUITY
Common stock, without par value of
unlimited shares authorized $ 61,034 $ 60,652
Additional paid in capital 15,667 15,550
Employee participation shares;
2,000,000 shares authorized 86 140
Less: loans receivable (86) (140)
Deficit (35,481) (48,683)
Accumulated other comprehensive income
(loss) 138 (7,292)
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41,358 20,227
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$ 76,582 $ 67,951
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These interim consolidated financial statements are preliminary and
are subject to change. The Company disclaims any intention or
obligation to update these interim consolidated financial statements
prior to the filing of its audited consolidated financial statements
for the year ended December 31, 2003.
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 Year
Ended December 31, Ended December 31,
------------------ ------------------
2003 2002 2003 2002
------- ------- ------- -------
Common Stock (Number of Shares)
Balance, beginning
37,098,390 37,081,190 of period 37,098,690 36,613,434
190,334 17,500 Exercise of options 240,334 468,168
Exercise of employee
9,093 -- participation shares 9,093 17,088
Repurchased for
-- -- cancellation (50,300) --
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37,297,817 37,098,690 Balance, end of period 37,297,817 37,098,690
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Common Stock
Balance, beginning
$ 60,665 $ 60,624 of period $ 60,652 $ 59,781
339 28 Exercise of options 422 817
Exercise of employee
30 -- participation shares 30 54
Repurchased for
-- -- cancellation (70) --
---------------------------------------------------------------------
$ 61,034 $ 60,652 Balance, end of period $ 61,034 $ 60,652
---------------------------------------------------------------------
Additional Paid In Capital
Balance, beginning
$ 15,555 $ 15,476 of period $ 15,550 $ 15,476
112 -- Stock compensation 112 --
Fair value associated
-- 74 with expired warrants -- 74
Common shares purchased
-- -- for cancellation 5 --
---------------------------------------------------------------------
$ 15,667 $ 15,550 Balance, end of period $ 15,667 $ 15,550
---------------------------------------------------------------------
Employee Participation Shares
$ 113 $ 140 Balance, beginning of period $ 140 $ 166
Cancellation of employee
-- -- participation shares (27) --
Exercise of employee
-- (27) participation shares (27) (26)
---------------------------------------------------------------------
$ 86 $ 140 Balance, end of period $ 86 $ 140
---------------------------------------------------------------------
Employee Participation
Shares-Loans Receivable
$ (113) $ (140) Balance, beginning of period $(140) $ (166)
Cancellation of employee
-- -- participation shares 27 --
Exercise of employee
-- 27 participation shares 27 26
---------------------------------------------------------------------
$ (86) $ (140) Balance, end of period $ (86) $ (140)
---------------------------------------------------------------------
Warrants
$ -- $ 74 Balance, beginning of period $ -- $ 74
-- (74) Expiry of warrants -- (74)
---------------------------------------------------------------------
$ -- $ -- Balance, end of period $ -- $ --
---------------------------------------------------------------- ----
Deficit
Balance, beginning
$ (37,002) $ (49,392) of period $ (48,683) $ (50,869)
1,521 709 Net income 13,202 2,186
---------------------------------------------------------------------
$ (35,481) $ (48,683) Balance, end of period $ (35,481) $ (48,683)
---------------------------------------------------------------------
Accumulated Other Comprehensive
Income (Loss)
Balance, beginning
$ (1,936) $ (7,328) of period $ (7,292) $ (7,584)
2,074 36 Other comprehensive income 7,430 292
---------------------------------------------------------------------
138 (7,292) Balance, end of period 138 (7,292)
---------------------------------------------------------------------
Total shareholders'
$ 41,358 $ 20,227 equity $ 41,358 $ 20,227
---------------------------------------------------------------------
---------------------------------------------------------------------
Comprehensive Income
Foreign currency
$ 2,074 $ 36 translation adjustments $ 7,430 $ 292
---------------------------------------------------------------------
2,074 36 Other comprehensive income 7,430 292
1,521 709 Net income 13,202 2,186
---------------------------------------------------------------------
$ 3,595 $ 745 Total comprehensive income $ 20,632 $ 2,478
---------------------------------------------------------------------
---------------------------------------------------------------------
These interim consolidated financial statements are preliminary and
are subject to change. The Company disclaims any intention or
obligation to update these interim consolidated financial statements
prior to the filing of its audited consolidated financial statements
for the year ended December 31, 2003.
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 Year
Ended December 31, Ended December 31,
------------------ ------------------
2003 2002 2003 2002
------- ------- ------- -------
CASH FLOWS (USED IN) FROM
OPERATING ACTIVITIES
Net income from continuing
$ 1,409 $ 975 operations $ 4,671 $ 3,020
Adjustments to reconcile
net income from continuing
operations to net cash
(used in) from operating
activities
Amortization of deferred
(1,484) (1,651) revenues (6,811) (6,568)
Depreciation and other
925 723 amortization 3,287 2,804
-- 112 Stock compensation 112 28
(66) (165) Deferred income taxes 39 (1,181)
-- (59) Minority interest (391) (252)
332 (117) Other 799 376
Changes in operating assets
and operating liabilities
949 (814) Accounts receivable (314) (401)
656 (841) Inventories (93) (835)
(74) 808 Income taxes (803) (235)
170 315 Prepaid expenses (149) (185)
(1,007) 1,594 Accounts payable and
accrued liabilities (3,279) 1,245
---------------------------------------------------------------------
1,863 827 (2,932) (2,184)
---------------------------------------------------------------------
---------------------------------------------------------------------
CASH FLOWS (USED IN) FROM
INVESTING ACTIVITIES
Expenditures for property,
(1,137) (1,436) plant and equipment (3,536) (5,390)
Increase in intangible
-- -- assets (122) (60)
Increase in deferred
-- -- revenues 165 899
---------------------------------------------------------------------
(1,137) (1,436) (3,493) (4,551)
---------------------------------------------------------------------
---------------------------------------------------------------------
CASH FLOWS (USED IN) FROM
FINANCING ACTIVITIES
-- -- Proceeds from bank loan 4,942 382
-- (482) Repayment of bank loan (5,927) (1,190)
-- 2,655 Proceeds from long-term debt 947 5,243
Repayment of
-- (241) long-term debt (3,013) (172)
Proceeds from customer
-- 449 deposits 80 709
Repayment of customer
(54) (232) deposits (2,124) (232)
Exercise of warrants
369 28 and options 452 844
Common shares purchased
-- -- for cancellation (65) --
Issue of common shares by
subsidiary to minority
-- 702 interest 365 969
Repurchase of common shares
by subsidiary from minority
-- (177) interest (140) (177)
---------------------------------------------------------------------
74 2,943 (4,483) 6,376
---------------------------------------------------------------------
Effect of foreign exchange
rate changes on cash and
325 22 cash equivalents 449 95
---------------------------------------------------------------------
Net cash (used in) from
1,125 2,356 continuing operations (10,459) (264)
Net cash from (used in)
181 200 discontinued operations 17,099 (439)
---------------------------------------------------------------------
Net increase (decrease) in
1,306 2,556 cash and cash equivalents 6,640 (703)
---------------------------------------------------------------------
Cash and cash equivalents,
10,233 2,343 beginning of period 4,899 5,602
---------------------------------------------------------------------
Cash and cash equivalents,
$ 11,539 $ 4,899 end of period $ 11,539 $ 4,899
---------------------------------------------------------------------
---------------------------------------------------------------------
Additional Information
$ 122 $ 97 Interest paid $ 700 $ 417
$ 276 $ -- Income taxes paid $ 1,882 $ 1,791
---------------------------------------------------------------------
---------------------------------------------------------------------
These interim consolidated financial statements are preliminary and
are subject to change. The Company disclaims any intention or
obligation to update these interim consolidated financial statements
prior to the filing of its audited consolidated financial statements
for the year ended December 31, 2003.
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 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 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 December 31, 2003 and the results of operations and cash flows for the quarter ended December 31, 2003 and 2002. 2. Accounting Change Effective January 1, 2002, the Company adopted the new recommendations of the Statement of Financial Accounting Standards ("SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ") with respect to Statement No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ". Under the new accounting standard, which can only be applied prospectively, goodwill and other intangible assets with indefinite INDEFINITE. That which is undefined; uncertain. INDEFINITE, NUMBER. A number which may be increased or diminished at pleasure. 2. When a corporation is composed of an indefinite number of persons, any number of them consisting of a majority of those lives are no longer amortized, but are tested for impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. upon adoption of the new standard and at least annually thereafter. The Company has assessed its goodwill by applying the prescribed 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 2001, the Company adopted a formal plan 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 its Canadian sales and marketing division ("DRAXIS Pharmaceutica"). 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 (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]. . On June June: see month. 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 sale, 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 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. ("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 Per·max A trademark for the drug pergolide mesylate. (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 September: see month. 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 that 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 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
Month Period For the
Ended Year Ended
December 31, December 31,
-------------- ---------------
2003 2002 2003 2002
------ ------- ------- -------
$ 188 $ 1,959 Revenues $ 4,301 $ 6,844
---------------------------------------------------------------------
Operating income (loss) from
112 (266) discontinued operations - net of tax 191 (834)
Net gain on disposal of product
- - rights - net of tax 8,340 -
---------------------------------------------------------------------
Net income (loss) from discontinued
$ 112 $ (266) operations - net of tax $ 8,531 $ (834)
---------------------------------------------------------------------
---------------------------------------------------------------------
4. 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 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 were 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 under the agreements. A formal agreement was subsequently reached with the 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 agreements, 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 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 December 31, 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
Month Period For the Year
Ended December 31, Ended December 31,
--------------------- ---------------------
2003 2002 2003 2002
---------- --------- ---------- ---------
Balance, beginning
3,342,776 3,510,776 of period 3,314,109 3,358,444
Increase (decrease)
resulting from:
40,000 47,500 Granted 775,000 750,000
(190,334) (17,500) Exercised (240,334) (468,168)
(75,000) (106,667) Cancelled (255,000) (150,167)
(19,500) (120,000) Expired (495,833) (176,000)
---------------------------------------------------------------------
3,097,942 3,314,109 Balance, end of period 3,097,942 3,314,109
---------------------------------------------------------------------
---------------------------------------------------------------------
(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
Month Period For the Year
Ended December 31, Ended December 31,
------------------- -------------------
2003 2002 2003 2002
-------- -------- -------- --------
$ 1,521 $ 709 Net income as reported $ 13,202 $ 2,186
(175) (196) Pro forma impact (681) (736)
$ 1,346 $ 513 Pro forma net income $ 12,521 $ 1,450
---------------------------------------------------------------------
---------------------------------------------------------------------
Basic net income per
$ 0.041 $ 0.019 share, as reported $ 0.356 $ 0.058
(0.005) (0.005) Pro forma impact per share (0.019) (0.020)
---------------------------------------------------------------------
Pro forma net income
$ 0.036 $ 0.014 per share (Basic) $ 0.337 $ 0.038
Pro forma net income
$ 0.036 $ 0.014 per share (Diluted) $ 0.337 $ 0.038
---------------------------------------------------------------------
---------------------------------------------------------------------
0.0% 0.0% Dividend yield 0.0% 0.0%
61% 62% Expected volatility 60%-62% 62%-64%
4.1% 4.2% Risk-free interest rate 3.8%-4.1% 4.1%-5.6%
5 yrs 5 yrs Expected option life 5-10 yrs 5 yrs
---------------------------------------------------------------------
---------------------------------------------------------------------
7. Segmented Information Industry Segmentation For purposes of operating decision-making decision-making, n the process of coming to a conclusion or making a judgment. decision-making, evidence-based, n a type of informal decision-making that combines clinical expertise, patient concerns, and evidence gathered from and assessing performance, management considers that it operates in three segments: Radiopharmaceuticals, Manufacturing, and Corporate and Other. Executive management assesses the performance of each segment based on segment income before interest, income taxes and minority interest.
For the Three
Month Period For the Year
Ended December 31, Ended December 31,
-------------------- -------------------
2003 2002 2003 2002
--------- --------- -------- ---------
PRODUCT SALES REVENUES
$ 4,202 $ 2,316 Radiopharmaceuticals $ 14,564 $ 9,704
8,668 5,386 Manufacturing 26,985 20,946
(430) 26 Corporate and Other (1,014) (312)
---------------------------------------------------------------------
$ 12,440 $ 7,728 $ 40,535 $ 30,338
---------------------------------------------------------------------
ROYALTY AND LICENSING REVENUES
$ -- $ 128 Radiopharmaceuticals $ 1,521 $ 451
-- -- Manufacturing -- --
1,945 1,980 Corporate and Other 7,137 7,851
---------------------------------------------------------------------
$ 1,945 $ 2,108 $ 8,658 $ 8,302
---------------------------------------------------------------------
TOTAL REVENUES
$ 4,202 $ 2,444 Radiopharmaceuticals $ 16,085 $ 10,155
8,668 5,386 Manufacturing 26,985 20,946
1,515 2,006 Corporate and Other 6,123 7,539
---------------------------------------------------------------------
$ 14,385 $ 9,836 $ 49,193 $ 38,640
---------------------------------------------------------------------
SEGMENT INCOME(1)
$ 1,146 $ 123 Radiopharmaceuticals $ 5,614 $ 706
592 393 Manufacturing 1,084 627
851 1,053 Corporate and Other 3,275 4,365
---------------------------------------------------------------------
$ 2,589 $ 1,569 $ 9,973 $ 5,698
---------------------------------------------------------------------
DEPRECIATION AND AMORTIZATION
$ 233 $ 186 Radiopharmaceuticals $ 843 $ 716
434 307 Manufacturing 1,448 1,166
258 230 Corporate and Other 996 922
---------------------------------------------------------------------
$ 925 $ 723 $ 3,287 $ 2,804
---------------------------------------------------------------------
OPERATING INCOME (LOSS)(2)
$ 913 $ (63)Radiopharmaceuticals $ 4,771 $ (10)
158 86 Manufacturing (364) (539)
593 823 Corporate and Other 2,279 3,443
---------------------------------------------------------------------
$ 1,664 $ 846 $ 6,686 $ 2,894
---------------------------------------------------------------------
---------------------------------------------------------------------
December 31, December 31,
2003 2002
------------ ------------
IDENTIFIABLE ASSETS
Radiopharmaceuticals $ 11,424 $ 10,823
Manufacturing 40,953 30,701
Corporate and Other 24,205 26,427
---------------------------------------------------------------------
$ 76,582 $ 67,951
---------------------------------------------------------------------
---------------------------------------------------------------------
(1) Segment income from continuing operations before depreciation
and amortization, interest, income taxes and minority interest.
(2) Segment income (loss) from continuing operations before interest,
income taxes and minority interest.
Geographic Segmentation
For the Three
Month Period For the Year
Ended December 31, Ended December 31,
------------------- -------------------
2003 2002 2003 2002
-------- -------- -------- --------
REVENUES(1)
$ 6,829 $ 6,016 Canada $ 22,755 $ 23,205
7,489 3,764 United States 26,031 15,246
67 56 Other 407 189
---------------------------------------------------------------------
$ 14,385 $ 9,836 $ 49,193 $ 38,640
---------------------------------------------------------------------
---------------------------------------------------------------------
December 31, December 31,
2003 2002
------------ ------------
LONG-LIVED ASSETS (2)
Canada $ 35,568 $ 34,334
United States -- --
---------------------------------------------------------------------
$ 35,568 $ 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. |
|
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