LANNETT COMPANY ANNOUNCES EARNINGS FOR FISCAL 1991
PHILADELPHIA, Nov. 21 /PRNewswire/ -- Lannett Company, Inc., (OTC), a manufacturer and distributor of generic pharmaceutical products, announced today sales and earnings for the year ended June 30, 1991.
Net sales for the fiscal year ended June 30, 1991, were $1,282,161, an increase of approximately 22 percent over net sales for the fiscal year ended June 30, 1990, of $1,055,169. However, because cost of sales increased $384,193 during fiscal 1991 to $1,184,629, from $800,629 during fiscal 1990, principally due to an inventory write-down of $119,808, gross profits declined 62 percent, from $254,734 in fiscal 1990 to $97,532 in fiscal 1991.
Operating expenses increased 6 percent during fiscal 1991 over the prior year due, in large part, to a write-off for bad debts of $29,426. This increase, together with the decrease in gross profits, resulted in a 261 percent increase in the company's net operating loss, from $67,268 in fiscal 1990 to $242,880 in fiscal 1991. However, because the company received $75,000 from the sale of a tradename in fiscal 1991, its net after-tax loss was only $160,162 for fiscal 1991, as compared to a loss of $88,985 for fiscal 1990.
LANNETT COMPANY, INC.
Year ended June 30 1991 1990
Net sales $1,282,161 $1,055,169
Cost of sales 1,184,628 800,435
Gross profit 97,533 254,734
Operating expenses 340,414 322,002
Net operating income (loss) (242,881) (67,268)
Other income (expense) 82,719 (21,717)
Net income (loss) (160,162) (88,985)
Income (loss) per share ($.52) ($.29)
Shares outstanding 310,383 310,383
Barry Weisberg, newly elected president of the company, stated that, as previously announced, the company has temporarily suspended manufacturing operations in order to renovate its facility, install new equipment, and dispose of outdated inventory. While operations are suspended, management is also reviewing the company's product line profitability, manufacturing methods, quality control procedures, sales practices, and what remedial action may be necessary to address recently discovered evidence of soil and ground water contamination at the company's facility.
"Until we resume production, the company will incur substantial expenditures without any significant sales activity," Weisberg said. "However, when the renovations are completed, we will have a modern manufacturing and distribution facility which, with our new management team, will carry us into the twenty-first century."
/CONTACT: Barry Weisberg, president of Lannett, 215-333-9000/ CO: Lannett Company, Inc. ST: Pennsylvania IN: MTC SU: ERN MP-LJ -- PH020 -- 5980 11/21/91 14:29 EST