INAMED Reports Third Quarter Results; Company Records a Pre-Tax Charge of $23.4 Million For Revised Breast Implant Settlement Program.
For the first nine months of 1995, the company reported a net loss of $22,118,116, or $2.93 per share, on sales of $64,136,586. This compares with net income of $3,986,660, or $.54 per share, on sales of $59,785,327 in the same period of last year.
The company said third quarter results included a pre-tax charge of $23.4 million for its participation in a Revised Settlement Program related to breast implant litigation. On November 14, the company's McGhan Medical subsidiary and Union Carbide Corp. were added to the list of settling defendants that already included Minnesota Mining and Manufacturing Co., Bristol-Myers Squibb Co. and Baxter International Inc.
INAMED had previously recorded a pre-tax charge of $9.1 million in the fourth quarter of 1993 related to the original $4.2 billion global settlement of breast implant litigation. The current charge of $23.4 million represents the present value (discounted at 8%) of the additional amount that the company expects to contribute to the Revised Settlement Program. Under this Program, INAMED expects to pay a total of up to $50 million to the settlement fund over a 15-year period.
According to INAMED chairman Donald K. McGhan, the $4.3 million increase in sales during the first nine months of 1995 over the first nine months of 1994 can be attributed primarily to increases in international sales, an area in which the company expects continued growth. He said the $2.6 million decline in 1995 third quarter sales from 1994 third quarter sales occurred as a result of certain manufacturing restraints as the company approached maximum capacity in its domestic production facilities.
Mr. McGhan also noted that as part of INAMED's participation in the F.D.A.- required Augmentation and Reconstructive Clinical Studies, the company placed an estimated $1.2 million of otherwise salable product into the control of plastic surgeons for surgery on patients enrolled in these studies. These studies represent a nonrecurring event.
"However," Mr. McGhan concluded, "We currently have a significant backlog for plastic surgery products that are in demand and expect healthier sales in the fourth quarter of this year. One of our high-priority objectives is to expand domestic manufacturing capacity of saline-filled breast implants and other plastic surgery products in 1996."
INAMED Corporation is a medical and surgical device company with 22 operating subsidiaries in the United States and Europe. The company develops, manufactures and markets medical devices for the plastic and reconstructive, bariatric and general surgery markets.
The company reported sales of over $80 million for calendar/fiscal 1994. -0-
Three Months Ended Nine Months Ended 9/30/95 9/30/94 9/30/95 9/30/94
Net Sales $18,279,111 $20,911,167 $64,136,586 $59,785,327
Net Income (Loss) (26,003,060) 1,004,409 (22,118,116) 3,986,660
Net Income (Loss) Per Share ($3.39) $.14 ($2.93) $.54
Weighted Average No. Shares Outstanding 7,662,257 7,390,471 7,559,073 7,417,458
CONTACT: Michael D. Farney, C.E.O., 702/791-3388
Jimmy Caplan, 805/569-0076
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|Date:||Nov 15, 1995|
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