Interpharm Announces Revenue and Earnings for the Fiscal Year Ended June 30, 2005.HAUPPAUGE Hauppauge can refer to:
Describes the characteristics and/or experience of the total universe of a coupon of MBS sector type; that is, in contrast to a specific pool or collateral group, as in a specific CMO issue. pharmaceutical drugs, today announced its financial results for the fiscal year ended June June: see month. 30, 2005.
Fiscal Year Ended
----------------------------------------------------------------------
30-Jun-05 30-Jun-04
Revenue Decreased 3% $39,910,970 $41,099,728
Research and Development
Expenses Increased 742% $4,002,974 $538,199
Gross Profit Decreased 7% $9,072,232 $9,794,835
Operating (Loss) Income Decreased 102% ($95,012) $5,060,375
Net (Loss) Income Decreased 105% ($149,432) $3,122,821
The 3% reduction in the Company's revenue is primarily the result of decreased sales of Allopurinol allopurinol /al·lo·pur·i·nol/ (al?o-pur´i-nol) an isomer of hypoxanthine, capable of inhibiting xanthine oxidase and thus of reducing serum and urinary levels of uric acid; used in prophylaxis and treatment of hyperuricemia and uric acid and Atenolol atenolol /aten·o·lol/ (ah-ten´ah-lol) a cardioselective ß used in the treatment of hypertension and chronic angina pectoris and the prophylaxis and treatment of myocardial infarction and cardiac arrhythmias. to United Research Laboratories, Inc. and Mutual Pharmaceutical Company, Inc. ("URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. "), and decreased sales of Naproxen naproxen and naproxen sodium, potent nonsteroidal anti-inflammatory drugs (NSAID) used to alleviate the minor pain of arthritis, menstruation, headaches, and the like, and to reduce fever. , which was partially offset by increased sales of Prednisone prednisone (prĕd`nĭsōn): see corticosteroid drug. to URL and increased sales of Hydrocodone Bitartrate hy·dro·co·done bitartrate n. A narcotic drug related to codeine, used as an analgesic and antitussive. hydrocodone bitartrate Warning - High-alert drug! with Ibuprofen ibuprofen (ī`by  prō'fən), nonsteroidal anti-inflammatory drug (NSAID) that reduces pain, fever, and inflammation. to Watson Pharmaceutical, Inc. The
Company's Operating and Net Loss during the year ended June 30,
2005 is primarily attributable attributableemanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a greater than seven fold increase in Research and Development expenditures that were incurred as we began implementation of our business plan. Over the past few years the Company has averaged approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one Abbreviated New Drug Application abbreviated new drug application Pharmacology An application made in the US by a pharmaceutical company requesting authority to market a 'new' drug for which both its therapeutic indications and formulation were previously approved by the FDA in another similar ("ANDA ANDA abbr. abbreviated new drug application ") filing per year. The Company currently anticipates filing over 25 ANDAs over the next 24 months to grow its product line. The Company's new product pipeline is focused in six areas: female hormone hormone, secretory substance carried from one gland or organ of the body via the bloodstream to more or less specific tissues, where it exerts some influence upon the metabolism of the target tissue. products, scheduled narcotics narcotics n. 1) techinically, drugs which dull the senses. 2) a popular generic term for drugs which cannot be legally possessed, sold, or transported except for medicinal uses for which a physician or dentist's prescription is required. , products requiring special release characteristics, liquid products, softgel products and products coming off patent. The Company has chosen some of these product areas because it possesses existing core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
Yaphank is a community in the south part of the Town of Brookhaven. . This move will increase nearly five-fold Adj. 1. five-fold - having five units or components fivefold, quintuple multiple - having or involving or consisting of more than one part or entity or individual; "multiple birth"; "multiple ownership"; "made multiple copies of the speech"; "his multiple , the Company's physical facilities devoted to Research and Development in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . In addition, the Company plans to build a 40,000 square foot facility in Ahmedabad Ahmedabad, India: see Ahmadabad. Ahmedabad or Ahmadabad City (pop., 2001: metro. area, 4,525,013), Gujarat state, west-central India. It is located on the Sabarmati River 275 mi (440 km) north of Mumbai (Bombay). , India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. which will be used primarily for Research and Development when and if completed. The implementation of the expansion plan also required improvements to infrastructure throughout the Company. In addition to the Company's efforts to increase its Research and Development capabilities, the Company added a number of key personnel, which includes the appointment of Cameron Cam·er·on , Mount A peak, 4,342.6 m (14,238 ft) high, in the Rocky Mountains of central Colorado. Reid as Chief Executive Officer, Jeffrey Weiss as an Executive Vice President in charge of sales and marketing, Kenneth Cappel Cappel may refer to:
In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. . These individuals have over 75 years of combined experience in the pharmaceutical industry. The Company also continued to hire qualified supervisors, managers 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. compliance personnel to improve efficiency of operations and ensure regulatory compliance. The Company believes that the addition of such key personnel, as well as its continued commitment to improvements in its infrastructure through capital expenditure on new equipment and upgrading the current manufacturing facility, will allow it to increase capacity at that facility, thereby allowing the Company to pursue new customers for its existing product line. Cameron Reid, Chief Executive Officer of Interpharm Holdings stated, "Our objective is to become a full service generic products provider. We have, over the past year, made tremendous improvements to our infrastructure which has started to improve efficiencies at our current manufacturing facility. I believe that these improvements will result in increased revenue from our base business as well as the revenue to be derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from our two new product launches. Our infrastructure improvements have also allowed Interpharm to accelerate its Product Development efforts. Now that we have fully integrated our business plan into our operations, we will continue to spend on Research and Development at an even more accelerated pace over the next two years." In order to continue its research and development spending and business plan, the Company will need to raise additional capital or increase the amount of its credit lines, the availability of which cannot be assured, to supplement its existing credit lines. About Interpharm Holdings Inc. Interpharm currently develops, manufactures and distributes generic prescription prescription In property law, the effect of the lapse of time in creating and destroying rights. Acquisitive prescription allows an individual, after unequivocal possession for a specific period, to acquire an interest in real property, such as an easement, but not the strength and over-the-counter drugs over-the-counter drug A therapeutic agent that does not require a prescription, which the FDA feels can be safely self-prescribed by non-physicians. Cf Prescription drug, Under-the-counter. . Interpharm will continue to focus on growing organically through internal product development and leveraging its strength in efficient and cost effective manufacturing. In addition, Interpharm will also continue to seek consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of mutually beneficial Adj. 1. mutually beneficial - mutually dependent interdependent, mutualist dependent - relying on or requiring a person or thing for support, supply, or what is needed; "dependent children"; "dependent on moisture" strategic alliances and collaborations. Headquartered on Long Island, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Interpharm presently employs over 400 people. 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. Statements made in this news release, contain forward-looking statements concerning Interpharm's business and products involving risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. The actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, and additional competition from existing and new competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , changes in technology, and various other factors beyond Interpharm's control. Other risks inherent in Interpharm's business are set forth in its filings with the SEC, including, but not limited to, its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , filed on September September: see month. 28, 2005. All information in this release is as of September 28, 2005. Interpharm undertakes no duty to update any forward-looking statements to conform the release to actual results or changes in its 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 or expectations after the date of this release. The financial information stated above and in the tables below has been abstracted from the Company's Form 10-K for the fiscal year ended June 30, 2005, filed with the SEC on September 28, 2005, and 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 information provided therein. -- Tables to Follow --
ASSETS
June 30,
-------------------------
2005 2004
-------------------------
CURRENT ASSETS
--------------
Cash and cash equivalents $536,630 $2,884,639
Marketable securities, at fair market value -- 36,791
Accounts receivable, net 7,664,148 6,849,778
Inventories, net 8,940,734 5,530,161
Prepaid expenses and other current assets 1,155,770 453,157
Deferred tax assets 87,000 1,280,000
------------ ------------
Total Current Assets 18,384,282 17,034,526
Land, building and equipment, net 21,871,798 15,007,132
Deferred tax assets 4,326,000 2,902,000
Investment in APR, LLC 1,022,500 --
Deposits 785,080 224,287
------------ ------------
TOTAL ASSETS $46,389,660 $35,167,945
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
June 30,
-------------------------
2005 2004
-------------------------
CURRENT LIABILITIES
-------------------
Current maturities of bank debt $10,340,000 $764,014
Accounts payable, accrued expenses and
other liabilities 6,232,586 4,545,345
------------ ------------
Total Current Liabilities 16,572,586 5,309,359
------------ ------------
OTHER LIABILITIES
-----------------
Bank debt, less current maturities 6,690,833 7,060,833
Other liabilities 15,334 14,968
------------ ------------
Total Other Liabilities 6,706,167 7,075,801
------------ ------------
TOTAL LIABILITIES 23,278,753 12,385,160
------------ ------------
STOCKHOLDERS' EQUITY
--------------------
Preferred stocks, 10,000,000 shares
authorized; issued and outstanding -
6,608,233 and 6,902,963, respectively;
aggregate liquidation preference of
$5,483,095 and $5,494,080, respectively 343,315 348,042
Common stock, $0.01 par value,70,000,000
shares authorized; shares issued
32,338,607 and 25,591,311 respectively 323,386 255,913
Additional paid-in capital 19,104,035 19,184,291
Accumulated other comprehensive loss -- (92)
Retained earnings 3,340,171 3,792,499
Treasury stock at cost, 624,145 shares in
2004 -- (797,868)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 23,110,907 22,782,785
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $46,389,660 $35,167,945
============ ============
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
Year Ended June 30,
-------------------------
2005 2004
-------------------------
SALES, Net $39,910,970 $41,099,728
----------
COST OF SALES (including related party rent
expense of $408,000 for the years ended
June 30, 2005 and 2004, $204,000 for the
six months ended June 30, 2003 and 2002 and
$408,000 for the year ended December 31,
2002) 30,838,738 31,304,893
------------ ------------
GROSS PROFIT 9,072,232 9,794,835
------------ ------------
OPERATING EXPENSES
------------------
Selling, general and administrative 5,092,270 4,124,261
Related party rent 72,000 72,000
Research and development 4,002,974 538,199
------------ ------------
TOTAL OPERATING EXPENSES 9,167,244 4,734,460
------------ ------------
OPERATING (LOSS) INCOME (95,012) 5,060,375
------------ ------------
OTHER INCOME (EXPENSES)
-----------------------
Gain on sale of marketable securities 8,943 --
Related party interest expense -- --
Interest expense (136,035) (21,367)
Interest and other income -- 69,451
------------ ------------
TOTAL OTHER (EXPENSES) INCOME (127,092) 48,084
------------ ------------
(LOSS) INCOME BEFORE INCOME TAXES (222,104) 5,108,459
(BENEFIT FROM) PROVISION FOR INCOME TAXES (72,672) 1,985,638
----------------------------------------- ------------ ------------
NET (LOSS) INCOME (149,432) 3,122,821
INCOME ATTRIBUTABLE TO PREFERRED
SHAREHOLDERS 165,569 360,045
-------------------------------- ------------ ------------
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(315,001) $2,762,776
----------------------------------------- ============ ============
(LOSS) EARNINGS PER SHARE ATTRIBUTABLE TO
COMMON STOCKHOLDERS
------------------------------------------
Basic (loss) earnings per share $(0.01) $0.16
============ ============
Diluted (loss) earnings per share $(0.01) $0.04
============ ============
Basic weighted average shares outstanding 25,683,726 17,594,979
============ ============
Diluted weighted average shares and
equivalent shares outstanding 25,683,726 68,637,185
============ ============
Year Ended
Six Months Ended June 30, December 31,
---------------------------------------
2003 2002 2002
---------------------------------------
(Unaudited)
SALES, Net $14,953,438 $11,743,440 $24,312,245
----------
COST OF SALES (including
related party rent expense
of $408,000 for the years
ended June 30, 2005 and
2004, $204,000 for the six
months ended June 30, 2003
and 2002 and $408,000 for
the year ended December 31,
2002) 12,214,822 9,587,344 19,872,936
------------ ------------ -------------
GROSS PROFIT 2,738,616 2,156,096 4,439,309
------------ ------------ -------------
OPERATING EXPENSES
------------------
Selling, general and
administrative 1,274,445 896,276 2,107,694
Related party rent 36,000 36,000 72,000
Research and development 185,601 148,850 415,618
------------ --------------------------
TOTAL OPERATING EXPENSES 1,496,046 1,081,126 2,595,312
------------ --------------------------
OPERATING (LOSS) INCOME 1,242,570 1,074,970 1,843,997
------------ --------------------------
OTHER INCOME (EXPENSES)
-----------------------
Gain on sale of marketable
securities -- -- --
Related party interest
expense (69,125) (94,063) (188,125)
Interest expense (63,299) (52,542) (102,103)
Interest and other income 8,166 -- 63
------------ ------------ -------------
TOTAL OTHER (EXPENSES)
INCOME (124,258) (146,605) (290,165)
------------ ------------ -------------
(LOSS) INCOME BEFORE
INCOME TAXES 1,118,312 928,365 1,553,832
(BENEFIT FROM) PROVISION FOR
INCOME TAXES 394,667 317,563 503,413
----------------------------- ------------ --------------------------
NET (LOSS) INCOME 723,645 610,802 1,050,419
INCOME ATTRIBUTABLE TO
PREFERRED SHAREHOLDERS 99,915 152,701 262,605
----------------------- ------------ --------------------------
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $ 623,730 $458,101 $787,814
------------------------ ============ ==========================
(LOSS) EARNINGS PER SHARE
ATTRIBUTABLE TO COMMON
STOCKHOLDERS
-------------------------
Basic (loss) earnings per
share $0.08 $0.07 $0.13
============ ==========================
Diluted (loss) earnings per
share $0.02 $0.02 $0.03
============ ==========================
Basic weighted average
shares outstanding 7,721,524 6,151,178 6,151,178
============ ==========================
Diluted weighted average
shares and equivalent
shares outstanding 41,664,357 35,935,062 35,935,062
============ ==========================
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
Year Ended June 30,
-------------------------
2005 2004
-------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------
Net (loss) income $(149,432) $3,122,821
------------ ------------
Adjustments to reconcile net (loss) income
to net cash (used in) provided by
operating activities:
Gain on sale of marketable securities (8,943) --
Depreciation and amortization 1,247,823 886,141
Deferred tax (benefit) expense (78,000) 1,998,500
Accrued interest on related party loans -- --
Provision for doubtful accounts -- 40,000
Gain on disposal of equipment -- (2,554)
Changes in operating assets and
liabilities:
Accounts receivable (814,370) (1,959,669)
Inventories (3,410,573) (946,956)
Prepaid expenses and other current assets (702,613) (229,008)
Accounts payable, accrued expenses and
other liabilities 1,563,430 (783,563)
------------ ------------
TOTAL ADJUSTMENTS (2,203,246) (997,109)
------------ ------------
NET CASH (USED IN) PROVIDED BY OPERATING
ACTIVITIES (2,352,678) 2,125,712
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
------------------------------------
Proceeds from sale of marketable securities 45,826 --
Payments for deposits (560,793) (178,414)
Purchase of marketable securities -- --
Proceeds from notes receivable -- 1,524,092
Proceeds from sale of equipment -- 19,000
Investment in APR, LLC (1,022,500) --
Purchases of land, building and equipment (8,112,489) (4,424,417)
------------ ------------
NET CASH USED IN INVESTING ACTIVITIES $(9,649,956) $(3,059,739)
------------ ------------
Six Months Ended June Year Ended
30, December 31,
-------------------------------------
2003 2002 2002
-------------------------------------
(Unaudited)
CASH FLOWS FROM OPERATING
ACTIVITIES
-------------------------
Net (loss) income $723,645 $610,802 $1,050,419
------------ ---------- -------------
Adjustments to reconcile net
(loss) income to net cash
(used in) provided by
operating activities:
Gain on sale of marketable
securities -- -- --
Depreciation and amortization 317,034 221,253 494,986
Deferred tax (benefit)
expense 116,100 58,000 79,500
Accrued interest on related
party loans 6,625 94,063 188,125
Provision for doubtful
accounts 40,200 -- 47,165
Gain on disposal of equipment -- -- --
Changes in operating assets and
liabilities:
Accounts receivable (812,167) (417,855) (308,583)
Inventories (1,194,106) (471,685) (1,219,985)
Prepaid expenses and other
current assets (152,671) (42,306) 76,195
Accounts payable, accrued
expenses and other
liabilities 1,155,772 679,806 1,339,713
------------ ---------- -------------
TOTAL ADJUSTMENTS (523,213) 121,276 697,116
------------ ---------- -------------
NET CASH (USED IN) PROVIDED
BY OPERATING ACTIVITIES 200,432 732,078 1,747,535
------------ ---------- -------------
CASH FLOWS FROM
INVESTING ACTIVITIES
---------------------
Proceeds from sale of
marketable securities -- -- --
Payments for deposits -- -- --
Purchase of marketable
securities -- (19,011) (19,011)
Proceeds from notes receivable -- -- --
Proceeds from sale of equipment -- -- --
Investment in APR, LLC -- -- --
Purchases of land, building and
equipment (1,031,403) (730,859) (1,184,210)
------------ ---------- -------------
NET CASH USED IN INVESTING
ACTIVITIES $(1,031,403) $(749,870) $(1,203,221)
------------ ---------- -------------
STATEMENT OF CASH FLOWS CONTINUED
Year Ended June 30,
------------------------
2005 2004
------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
------------------------------------
(Repayments of) proceeds from advised credit
facility - old $(424,847) $(2,101,708)
Borrowings from advised credit facility -
new 9,970,000 --
Repayments of mortgage notes (339,167) --
Due to related parties -- --
Payment of Series A-1 preferred stock
dividend (178,719) --
Redemption of Series A convertible preferred
stock (8) --
Cash received in reverse merger transaction -- 64,029
Proceeds from options and warrants exercised 627,366 3,520,142
----------- ------------
NET CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES 9,654,625 1,482,463
----------- ------------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (2,348,009) 548,436
CASH AND CASH EQUIVALENTS - Beginning 2,884,639 2,336,203
----------- ------------
CASH AND CASH EQUIVALENTS - Ending $536,630 $2,884,639
=========== ============
Year Ended
Six Months Ended June 30, December 31,
----------------------------------------
2003 2002 2002
----------------------------------------
(Unaudited)
CASH FLOWS FROM FINANCING
ACTIVITIES
-------------------------
(Repayments of) proceeds
from advised credit
facility - old $962,625 $(98,454) $(214,662)
Borrowings from advised
credit facility - new -- -- --
Repayments of mortgage notes -- -- --
Due to related parties -- (24,000) (807,721)
Payment of Series A-1
preferred stock dividend -- -- --
Redemption of Series A
convertible preferred stock -- -- --
Cash received in reverse
merger transaction 2,067,510 -- --
Proceeds from options and
warrants exercised 31,250 -- --
------------ ----------- -------------
NET CASH PROVIDED BY
(USED IN) FINANCING
ACTIVITIES 3,061,385 (122,454) (1,022,383)
------------ ----------- -------------
NET (DECREASE) INCREASE
IN CASH AND CASH
EQUIVALENTS 2,230,414 (140,246) (478,069)
CASH AND CASH EQUIVALENTS
- Beginning 105,789 583,858 583,858
------------ ----------- -------------
CASH AND CASH EQUIVALENTS
- Ending $2,336,203 $443,612 $105,789
============ =========== =============
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