First Horizon Pharmaceutical Corporation Announces Fourth Quarter and Year End Revenue of $12.05 M and $36.65 M.Business Editors & Health Writers ROSWELL, Ga.--(BUSINESS WIRE)--March 7, 2001 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of 10 cents for Q4 and 20 cents for the year Fourth Quarter 2000 Highlights include: -- Net revenues increase of 144% over fourth quarter 1999 -- Sales of continuing products increase of 60% over the fourth quarter of 1999 -- Operating Margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 18% -- Net income per share of 10 cents Year ending 2000 Highlights include: -- Net revenues increase of 97% over 1999 net revenue -- Sales of continuing products increase of 34% over same product sales in 1999 -- Operating Margins of 11% -- Net income per share of 20 cents -- Net income increase of 225% over 1999 net income First Horizon Pharmaceutical Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : FHRX), a specialty pharmaceutical company, today announced results for the fourth quarter and year ended December 31, 2000. Net revenues for the fourth quarter were $12.05 million, a 144% increase over the fourth quarter of 1999. Sales of continuing products increased 60% over the fourth quarter of 1999. Operating margins for the fourth quarter were 18% compared to (4%) for the same period of 1999. Net income was $1.41 million for the fourth quarter of 2000, which equated to diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of 10 cents. Net revenues for the year ended December 31, 2000, were $36.65 million compared to $18.62 million for the year ended December 31, 1999, a 97% increase. Sales of continuing products increased 34% over 1999. Sales of newly acquired or in-licensed products were $12.23 million for the year ending December 31, 2000. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $4.12 million or 11% of net revenues for the year ended December 31, 2000 versus $1.66 million or 9% of net revenues for the year ended December 31, 1999. Net income for the year ended December 31, 2000 was $2.51 million or 20 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. compared to $.77 million or nine cents per share for the year ended 1999. Net income for the fourth quarter and year ended December 31, 2000 include charges of $487,000 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the retirement and separation agreement entered into with a retiring executive. Excluding these charges, net income would have been $1.69 million or 12 cents per share for the fourth quarter and $2.79 million or 22 cents per share for the year ended December 31, 2000. "We are very pleased with our results for the fourth quarter and for the year 2000," said Mahendra G. Shah Shah is a Persian term for a monarch (ruler) that has been adopted in many other languages. This term is a Post Islamic Revolution term for monarchs in Iran which is replaced by valie faghih or Supreme Leader. , Ph.D., Chairman 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 First Horizon Pharmaceutical Corporation. "We had significant accomplishments in 2000 which include the acquisition of two products, Ponstel and Cognex, the deployment of a specialty sales force, and the expansion of the retail sales force. Through all of this activity, we increased the sales of continuing products by 34%. With the sales and marketing focus on our four key products, Nitrolingual Pumpspray, Robinul, Tanafed and Ponstel, we forecast continued strong growth in product revenue in 2001. "2000 was a robust year for product development activities. We have completed the Phase 1 study on our migraine migraine (mī`grān), headache characterized by recurrent attacks of severe pain, usually on one side of the head. It may be preceded by flashes or spots before the eyes or a ringing in the ears, and accompanied by double vision, nausea, project, FHPC FHPC Force Health Protection Council (US DoD, health affairs) 01. Also, I am pleased to report that we filed the IND (Investigational New Drug Application) in December 2000, for liquid glycopyrrolate, which will be used for management of drooling drooling the discharge of saliva from the mouth. A normal feature in some breeds of dogs such as St. Bernard, Newfoundland and English bulldog, presumably because of their loose, pendulous lips. associated with cerebral palsy cerebral palsy (sərē`brəl pôl`zē), disability caused by brain damage before or during birth or in the first years, resulting in a loss of voluntary muscular control and coordination. and other neurodevelopmental deficits. We will enter into additional clinical trials for both products after discussions with the 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. . "Building on our performance in 2000, we are comfortable with the current published analyst revenue and earnings per share estimates for 2001. Looking ahead to the remainder of 2001, we continue to evaluate attractive products for acquisition and licensing, and are exploring strategic relationships with pharmaceutical companies with near term product commercialization pipelines." First Horizon Pharmaceutical Corporation will host its fourth quarter and year 2000 conference call on March 7, 2001 at 5:30 P.M. eastern time. You are welcome to listen to the webcast of this call by visiting the company's website at www.firsthorizonpharm.com and entering the Investor Relations Investor relations The process by which the corporation communicates with its investors. page. If you wish to dial in to the conference call, the numbers are 800-633-8493 for domestic callers and 212-346-6469 for international callers. A replay of the conference call will be available by dialing 800-633-8284 for domestic callers and 858-812-6440 for international callers. The reservation number for the replay of the call is 17635086. First Horizon Pharmaceutical Corporation is a specialty pharmaceutical company that markets and sells 13 brand name prescription drugs prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, to high prescribing primary care and select specialty physicians through its nationwide sales and marketing force. The company focuses on the treatment of chronic conditions including, cardiovascular diseases Cardiovascular disease Disease that affects the heart and blood vessels. Mentioned in: Lipoproteins Test cardiovascular disease , and respiratory, gastroenterological and gynecological gynecological /gy·ne·co·log·i·cal/ (-kah-loj´i-k'l) gynecologic. disorders. This press release contains statements, which constitute 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. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements include, but are not limited to statements relating to (i) growth in product revenues in 2001, (ii) commencement of further clinical trials for our products under development, (iii) 2001 revenue and earnings per share estimates, and (iv) opportunities to acquire and license products and to enter into strategic relationships with other companies. Such statements are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to in such statements. These risks include, without limitation, those identified in the Company's registration statement on Form S-1 filed with the Securities and Exchange Commission in the "Risk Factors" section under the following headings" "Our growth will suffer if we do not acquire rights to new products and integrate them successfully", "We depend entirely on third parties to manufacture our products", "We will need to replace our supply source for Ponstel", "We face competition from generic products that could lower prices and unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. ", "Strong competition exists for marketing our products and competitors have introduced new products and therapies that could make our products obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. ", "A small number of customers account for a large portion of our sales and the loss of one of them, or changes in their purchasing patterns, could result in the inability to successfully sell our products", "If our products under development fail in clinical studies or if we fail or encounter difficulties in obtaining regulatory approval for new products or new uses of existing products, we will have expended ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. significant resources for no return", "We or third-parties may violate government regulations and we may incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. significant expenses to comply with such regulations", "If third-party payors do not adequately reimburse re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. patients for our products, doctors may not prescribe pre·scribe v. To give directions, either orally or in writing, for the preparation and administration of a remedy to be used in the treatment of a disease. them", "Product liability claims and product recalls could limit our ability to sell products", "We expect to require additional funding and if we cannot obtain it, our sales, profits, acquisitions and development projects could suffer", "If we do not secure or enforce our patents or other intellectual property rights, we could encounter increased competition that could adversely affect our operating results", "Our products could infringe in·fringe v. in·fringed, in·fring·ing, in·fring·es v.tr. 1. To transgress or exceed the limits of; violate: infringe a contract; infringe a patent. 2. the intellectual property rights of third parties, which could require us to pay license fees or defend litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. that could be expensive or prevent us from selling products", "The regulatory status of some of our products makes these products subject to increased competition and other risks" and " Pohl-Boskamp can terminate our rights to Nitrolingual." We do not undertake to update our forward-looking statements to reflect future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or .
First Horizon Pharmaceutical Corporation
Balance Sheets
December 31,
1999 2000
ASSETS
Current Assets:
Cash and cash equivalents $ 219,688 $ 14,228,067
Accounts receivable, net 2,900,623 6,710,237
Inventories 798,615 2,648,104
Samples and other prepaid expenses 553,614 1,341,126
Deferred tax assets 550,780 1,203,309
----------- ------------
Total current assets 5,023,320 26,130,843
Property and equipment, net 422,096 802,674
Other Assets:
Notes receivable from related party 30,000 -
Intangibles, net 5,602,328 23,150,025
----------- ------------
Total other assets 5,632,328 23,150,025
Total assets $ 11,077,744 $ 50,083,542
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 794,088 $ 1,815,269
Accrued expenses 2,892,727 8,986,168
Borrowings under revolving loan
agreement 800,000 -
Current portion of long-term debt 1,270,389 221,482
----------- ------------
Total current liabilities 5,757,204 11,022,919
Long-Term Liabilities:
Long-term debt, net of current
maturities 1,628,497 -
Deferred tax liabilities 76,479 487,721
----------- ------------
Total liabilities 7,462,180 11,510,640
Stockholders' Equity:
Preferred stock - -
Common stock 8,540 12,973
Additional paid in capital 5,788,220 37,792,147
Deferred compensation (1,284,374) (842,566)
Retained Earnings (896,822) 1,610,348
----------- ------------
Total stockholders' equity 3,615,564 38,572,902
Total liabilities and
stockholders' equity $ 11,077,744 $ 50,083,542
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First Horizon Pharmaceutical Corporation
Statements of Operations
For The For The For The For The
Quarter Ended Quarter Ended Year Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2000 1999 2000 1999
Net revenues $12,053,645 $4,941,456 $36,649,547 $18,624,514
Operating costs
and expenses
Cost of revenues 1,812,360 828,882 5,435,908 3,140,416
Selling, general and
administrative
expenses, excluding
the non-cash
compensation expense 6,922,569 3,736,975 23,446,979 12,400,439
Non-cash compensation
expense 517,576 76,663 769,363 143,986
Depreciation and
amortization 349,768 118,406 1,091,138 424,274
Research and
development expense 270,883 394,700 1,784,144 860,350
---------- ---------- ----------- -----------
Total operating
costs and
expenses 9,873,156 5,155,626 32,527,532 16,969,465
---------- ---------- ----------- -----------
Operating income(loss) 2,180,489 (214,170) 4,122,015 1,655,049
---------- ---------- ----------- -----------
Other income (expense)
Interest expense (8,112) (86,174) (324,226) (356,598)
Interest income 163,443 4,516 348,183 11,950
Other (1,041) 6,273 20,944 8,059
---------- ---------- ----------- -----------
Total other
income (expense) 154,290 (75,385) 44,901 (336,589)
---------- ---------- ----------- -----------
Income (loss) before
provision for income
taxes 2,334,779 (289,555) 4,166,916 1,318,460
Benefit (provision)
for income taxes (921,092) 122,295 (1,659,746) (547,996)
---------- ---------- ----------- -----------
Net income (loss) $1,413,687 $(167,260) $2,507,170 $770,464
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Net income (loss) per
common share:
Basic $0.11 $(0.02) $0.23 $0.10
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Diluted $0.10 $(0.02) $0.20 $0.09
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Weighted average common
shares outstanding:
Basic 12,936,013 8,169,403 11,074,616 8,028,673
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Diluted 14,671,620 8,169,403 12,737,564 8,975,493
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