Interpharm Announces Revenue and Earnings for the Three and Nine-Month Periods Ended March 31, 2004.Business Editors/Health/Medical Writers COMMACK Commack (kō`măk), uninc. town (1990 pop. 36,124), Suffolk co., SE N.Y., on central Long Island. It is chiefly residential. , N.Y.--(BUSINESS WIRE)--May 17, 2004 Interpharm Holdings, Inc. (Amex: IPA IPA - International Phonetic Alphabet )
Third Quarter Financial Highlights Nine-Month Financial Highlights
-- Revenue increased 57% Revenue increased 51%
-- Gross profit rose 106% Gross profit rose 88%
-- Gross margin percentage Gross margin percentage
increased 5.9% increased 4.5%
-- Operating income Operating income increased
increased 93% 122%
-- Net income rose 105% Net income rose 143%
Interpharm Holdings, Inc. (Amex: IPA), a manufacturer and distributor of generic pharmaceutical drugs, today announced financial results for the three and nine-month periods ended March 31, 2004. For the quarter ended March 31, 2004, the Company generated revenue of $11.3 million, compared to $7.2 million during the same period in 2003. Net income for the fiscal 2004 third quarter was $984,000, versus net income of $481,000, for the quarter ended March 31, 2003. For the nine-months ended March 31 2004, revenue was $29.9 million, compared to $19.8 million for the same period in 2003. Net income for the nine-months ended March 31, 2004 was $2.2 million, compared to net income of $920,000, for the same period in 2003. Basic and 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 data are as follows:
For the For the Nine
Three Months Ended Months Ended
March 31, March 31,
----------------------------------------
2004 2003 2004 2003
----------------------------------------
Basic Earnings per Share $0.05 $0.06 $0.11 $0.11
Diluted Earnings per Share $0.01 $0.01 $0.03 $0.03
Revenue increases for the 2004 fiscal third quarter were primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to sales of 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. , 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 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 totaled approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $4 million during the quarter. During the same period last year Interpharm did not produce Atenolol or Allopurinol, and Naproxen sales were approximately $265,000. Likewise, revenue increases for the nine-months ended March 31, 2004 were primarily attributable to sales of Atenolol, Allopurinol and Naproxen, which totaled approximately $11.4 million. During the same period in 2003, Interpharm did not produce Atenolol or Allopurinol, and Naproxen sales were approximately $750,000. Sales of drugs other than Atenolol, Allopurinol and Naproxen decreased by approximately $500,000 during the nine-month period ended March 31, 2004, due to management's decision to temporarily reassign available manufacturing capacity to higher margin products. The Company's gross profit percentage for the three and nine-month periods ended March 31, 2004 were 24.9% and 23.0%, respectively. This represents an increase of 5.9 and 4.5 percentage points, respectively, from the same periods a year ago. The Company attributes its increasing margins primarily to the diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of its product line and increased manufacturing efficiency. Interpharm Holdings Chief Executive Officer Dr. Maganlal Sutaria stated, "We are very pleased with our results during the third quarter. They clearly demonstrate the success of our continuing commitment to expand our product lines, increase production capacity and develop 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. Our expansion efforts are moving forward on plan with our contract to purchase an additional 100,000 square foot manufacturing facility in Yaphank, New York Yaphank is a hamlet (and census-designated place) in Suffolk County, New York, United States. The population was 5,025 at the 2000 census. Yaphank is a community in the south part of the Town of Brookhaven. . This, combined with our current R&D efforts, well position us to continue to capture greater market share in our existing product line while diversifying into new higher margin drugs." Research and development costs remain on budget with approximately $1.7 million allocated through December December: see month. 31, 2004. R&D objectives are focused on increasing Interpharm's pipeline of drugs in various stages of development. In March 2004, Interpharm obtained 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. approval for an 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 for Hydrocodone Bitartrate and Ibuprofen hydrocodone bitartrate and ibuprofen Vicoprofen Pharmacologic class: Opioid agonist/nonopioid analgesic combination Therapeutic class: Opioid analgesic; allergy, cold, and cough remedy (antitussive) Tablets, 5 mg/200 mg. This product is a new lower strength version of Hydrocodone Bitartrate and Ibuprofen Tablets, 7.5 mg/200 mg, which is the generic equivalent of the branded drug Vicoprofen Vicoprofen® Pain management An opioid/ibuprofen combination for treating acute pain in Pts with physical or psychologic opiate dependence. See Opiate dependence. (R). The Company believes that this new dosage dosage /dos·age/ (do´saj) the determination and regulation of the size, frequency, and number of doses. dos·age n. 1. Administration of a therapeutic agent in prescribed amounts. strength will fill a void in the market for individuals, such as elderly and young patients, who might exhibit a certain level of intolerance intolerance /in·tol·er·ance/ (in-tol´er-ans) inability to withstand or consume; inability to absorb or metabolize nutrients. congenital lysine intolerance to the higher dosage 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! . Interpharm is the first company to have obtained approval to manufacture Hydrocodone Bitartrate and Ibuprofen Tablets in the 5 mg/200 mg dosage. On May 5, 2004 the Company announced that it had obtained a $21 million credit facility. The new credit facility consists of approval for a $7.4 million mortgage, which is subject to customary closing conditions, for the purchase of the Company's second manufacturing plant in Yaphank, New York. In addition, the credit facility consists of $8.6 million of credit lines primarily to acquire new equipment and for renovations, and a $5 million credit line for working capital and general corporate purposes, and replaces an aggregate credit facility of $7 million. The credit lines are terminable ter·mi·na·ble adj. 1. Possible to terminate: terminable activities; terminable employees. 2. Terminating after a designated date: a terminable annuity. by the bank at any time as to undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely amounts. The Company anticipates closing the purchase of the additional manufacturing facility in Yaphank during the current quarter. Upon closing and FDA approval, this facility will approximately double the Company's current available space and provide sufficient additional acreage for potential further expansion of the Company's production facilities in the future. Pending FDA approval, Interpharm may use the new facility for warehousing and other activities, thereby creating additional capacity in the Company's current location. ABOUT INTERPHARM Interpharm develops, manufactures and markets over 20 generic prescription 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 strategic alliances and collaborations. To accommodate Interpharm's anticipated growth, it has entered into a contract to acquire a production facility of approximately 100,000 square feet. This facility is on over thirty-seven acres of land, which will allow Interpharm the opportunity to increase production capacity in the future as the need arises. Interpharm has also significantly increased its research and development budget to accommodate its objective of increasing the number of drugs in development over the next twelve months. 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, may 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, changes in technology, and various other factors beyond Interpharm's control. Other risks inherent in Interpharm's business are described in ATEC ATEC Army Test and Evaluation Command (US Army; formerly OPTEC, Operational Test & Evaluation Command) ATEC Australian Tourism Export Council ATEC Advanced Technologies (Hamburg, Germany) Group, Inc.'s Definitive Proxy Statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. , filed with the Securities and Exchange Commission on May 2, 2003, 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. 29, 2003 Forms 10-Q filed on November November: see month. 14, 2003 and February February: see month. 17, 2004, and the "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 of Financial Condition and Results of Operations" sections contained therein. The acquisition of Interpharm, Inc. is described in the foregoing proxy materials Proxy Materials Documents regulated by the Securities & Exchange Commission in which a public company outlines its methods and procedures. These documents are used to inform shareholders and solicit votes for corporate decisions, such as the election of directors and other , as well as in ATEC's Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , filed with the Securities and Exchange Commission on February 27, 2003, our Form 8-K, filed on June June: see month. 16, 2003 and our 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. Form 8-K, filed on August 11, 2003. All information in this release is as of May 17, 2004. 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.
INTERPHARM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For The Three Months For The Nine Months
Ended March 31, Ended March 31,
2004 2003 2004 2003
-----------------------------------------------
SALES, Net $11,307,974 $7,191,002 $29,889,553 $19,759,807
------
COST OF SALES
(including related
party rent expense of
$102,000 and $306,000
for the three months
and nine months ended
March 31, 2004
and 2003,
respectively) 8,492,823 5,824,712 23,024,297 16,110,304
-----------------------------------------------
GROSS PROFIT 2,815,151 1,366,290 6,865,256 3,649,503
-----------------------------------------------
OPERATING EXPENSES
------------------
Selling, general and
administrative
expenses 1,165,945 502,552 3,059,780 1,713,970
Related party rent
expense 18,000 18,000 54,000 54,000
Research and
development 80,535 43,450 269,570 310,218
-----------------------------------------------
TOTAL OPERATING
EXPENSES 1,264,480 564,002 3,383,350 2,078,188
-----------------------------------------------
OPERATING INCOME 1,550,671 802,288 3,481,906 1,571,315
-----------------------------------------------
OTHER INCOME (EXPENSES)
-----------------------
Related party
interest expense -- (40,812) -- (134,874)
Gain on sale of
property and
equipment 2,554 -- 2,554 --
Interest expense (5,483) (28,451) (16,482) (78,012)
Interest income 11,208 -- 16,413 63
-----------------------------------------------
TOTAL OTHER INCOME
(EXPENSES) 8,279 (69,263) 2,485 (212,823)
-----------------------------------------------
INCOME BEFORE
INCOME TAXES 1,558,950 733,025 3,484,391 1,358,492
PROVISION FOR INCOME
TAXES 575,420 252,450 1,249,325 438,300
-----------------------------------------------
NET INCOME $983,530 $480,575 $2,235,066 $920,192
===============================================
EARNINGS PER SHARE
------------------
Basic earnings per
share $0.05 $0.06 $0.11 $0.11
===============================================
Diluted earnings per
share $0.01 $0.01 $0.03 $0.03
===============================================
Basic weighted
average shares
outstanding 18,457,790 6,151,178 17,389,913 6,151,178
===============================================
Diluted weighted
average shares and
equivalent shares
outstanding 69,336,012 35,935,062 68,692,467 35,935,062
===============================================
INTERPHARM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
March 31, June 30,
2004 2003
(Unaudited) (Audited)
CURRENT ASSETS
--------------
Cash and cash equivalents $1,770,650 $2,336,203
Marketable securities, at
fair market value 50,388 48,462
Accounts receivable, net 7,909,313 4,930,109
Notes receivable, current -- 1,000,000
Inventories 6,061,575 4,583,205
Prepaid expenses and other
current assets 401,565 224,149
Deferred tax assets 23,500 23,500
------------------------
Total Current Assets 16,216,991 13,145,628
Property and equipment, net 5,624,113 4,085,302
Notes receivable, long-term -- 524,092
Deferred tax assets 2,537,900 2,537,900
Deposits 1,069,279 45,873
------------------------
TOTAL ASSETS $25,448,283 $20,338,795
========================
INTERPHARM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, June 30,
2004 2003
------------------------
(Unaudited) (Audited)
CURRENT LIABILITIES
-------------------
Lines of credit, bank $424,847 $2,064,793
Current maturities of bank notes payable -- 224,241
Accounts payable, accrued expenses, and
other liabilities 5,497,341 5,314,341
------------------------
Total Current Liabilities 5,922,188 7,603,375
------------------------
OTHER LIABILITIES
-----------------
Bank notes payable, less current
maturities -- 237,521
Other liabilities 29,535 29,535
------------------------
Total Other Liabilities 29,535 267,056
------------------------
TOTAL LIABILITIES 5,951,723 7,870,431
------------------------
COMMITMENTS AND CONTINGENCIES
-----------------------------
STOCKHOLDERS' EQUITY
--------------------
Preferred stocks, 10,000,000 shares
authorized; issued and outstanding
- 7,195,876 and 7,300,876,
respectively; aggregate liquidation
preference of $5,494,080 350,971 352,021
Common stock, $.01 par value, 70,000,000
shares authorized; shares issued
- 19,286,536 and 15,671,649,
respectively 192,865 156,717
Additional paid-in capital 16,832,343 12,076,237
Accumulated other comprehensive income 13,505 11,579
Retained earnings 2,904,744 669,678
Treasury stock at cost, 624,145 shares at
March 31, 2004 and June 30, 2003 (797,868) (797,868)
------------------------
TOTAL STOCKHOLDERS' EQUITY 19,496,560 12,468,364
------------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $25,448,283 $20,338,795
========================
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