Mylan Reports Record EPS, Revenues and Net Earnings for the First Quarter of Fiscal 2004 and Increases Annual Earnings Guidance.Business Editors/Health/Medical Writers PITTSBURGH--(BUSINESS WIRE)--July 23, 2003 Financial Highlights -- Record 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 $0.46 for the first quarter of fiscal 2004, compared to $0.32 for the same prior year period. -- Record net earnings of $83.9 million for the first quarter of fiscal 2004, an increase of 36%. -- Net revenues increased 20% to $331.4 million for the first quarter of fiscal 2004, a first quarter record. -- The favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. settlement of certain lawsuits included in the first quarter results amounted, net of tax, to $0.08 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. -- Mylan increases its fiscal 2004 earnings guidance to $1.67 to $1.77 per diluted share. Mylan Laboratories Inc. (NYSE NYSE See: New York Stock Exchange : MYL MYL Mind Your Language MYL Made You Laugh MYL Miss You Lots MYL Meet You Later MYL Miss You Loads ) today announced financial results for the first quarter ended June June: see month. 30, 2003 and increased its annual earnings guidance due to the impact of the recent 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. settlements. Mylan reported record diluted earnings per share and net earnings driven by strong performances by both the Company's Generic Generic 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. and Brand Segments. Net revenues for the first quarter increased 20% to $331.4 million, also a record, from $275.5 million in the same prior year period. Net earnings for the quarter increased 36% to $83.9 million from $61.8 million in the same prior year period. Diluted earnings per share for the quarter were $0.46 per share compared to $0.32 for the first quarter of fiscal 2003, an increase of 44%. The first quarter results included gains on legal settlements which amounted, net of tax, to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.08 per diluted share. "We are extremely pleased with our first quarter results which demonstrate a continuation of the consistent, strong performance of our business," commented Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. Coury, Vice Chairman and Chief Executive Officer. Net revenues for the Generic Segment were $255.2 million in the quarter compared to $235.6 million in the first quarter of fiscal 2003, an increase of $19.6 million or 8%. The Brand Segment reported a strong quarter with net revenues of $76.2 million compared to $39.8 million in the same prior year period, an increase of $36.4 million or 91%. The Brand Segment was successful in sustaining a market share of approximately 40% for Amnesteem(R), a product launched in late fiscal 2003, despite the entrance of additional competition into the market. During the first quarter of fiscal 2004, Amnesteem contributed net revenues of $28.1 million. The first quarter results include gains of $21.7 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc certain previously announced litigation settlements. In April 2003, Mylan was paid $12.5 million pursuant to a settlement of claims associated with contracts for the marketing and manufacturing of Zagam Zagam® Sparfloxacin, see there (R). The remainder of the gain relates to future payments to Mylan totaling $10.0 million from Mylan's co-defendants in the lorazepam lorazepam /lor·a·ze·pam/ (lor-az´e-pam) a benzodiazepine used as an antianxiety agent, sedative-hypnotic, preanesthetic medication, and anticonvulsant. lor·az·e·pam n. and clorazepate clorazepate /clor·az·e·pate/ (klor-az´e-pat) a benzodiazepine used as the dipotassium salt as an antianxiety agent, anticonvulsant, and aid in the treatment of acute alcohol withdrawal. litigation. These payments represent a partial reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. of the settlement funds paid by Mylan toward the settlement announced in fiscal 2003. These additional payments were agreed to by the co-defendants in fiscal 2004. Segment Information
Three Months Ended
June 30,
---------------------------------
2003 2002 Change
Net Revenues (in millions)
Generic Segment $255.2 $235.6 8%
Brand Segment 76.2 39.8 91%
----------------------
Total $331.4 $275.5 20%
Generic Segment Net revenues for the quarter increased 8% or $19.6 million to $255.2 million from $235.6 million for the same prior year period. New products launched subsequent to June 30, 2002 contributed $32.4 million to Generic Segment net revenues offset in part by changes in the portfolio mix. Gross profit for the quarter increased $14.0 million to $138.5 million from $124.5 million, while earnings from operations increased $11.2 million to $117.5 million from $106.3 million in the same prior year period. The increase in earnings from operations was driven primarily by the higher gross profit, partially offset by increased research and development expense as the Company continues to expand its development platform. Brand Segment For the first quarter, the Brand Segment reported net revenues of $76.2 million, an increase of 91% or $36.4 million from $39.8 million in the same prior year period. Approximately 77% of the increase in Brand Segment net revenues resulted from sales of Amnesteem, a product launched in late fiscal 2003, with the remainder attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to growth in the Company's existing portfolio of products. Gross profit for the first quarter increased $15.9 million or 69% to $39.0 million from $23.1 million. Earnings from operations were $9.7 million compared to a loss from operations of $0.4 million in the same prior year period. Brand Segment operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the quarter increased 24% or $5.7 million to $29.2 million from $23.5 million. The increase was primarily attributable to research and development expense due to ongoing clinical studies related to nebivolol Nebivolol is a highly cardioselective vasodilatory beta1 receptor blocker used in treatment of hypertension. In most countries, this medication is available only by prescription. . Corporate/Other General and administrative expenses for the first quarter of fiscal 2004 were $22.0 million, an increase of $10.8 million from the same prior year period. This increase was primarily due to increased legal costs and higher payroll payroll a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. costs as the Company continues to invest in its infrastructure. Fiscal 2004 Earnings Guidance Mylan increases its fiscal 2004 earnings guidance to $1.67 to $1.77 per diluted share from $1.59 to $1.69 per diluted share, to include the impact of the litigation settlements reported in the first quarter. Annual Meeting of Shareholders The Annual Meeting of Shareholders will be held on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , July July: see month. 25, 2003 at 10:00 am ET at the Westin Convention Center, Pittsburgh, Pennsylvania “Pittsburgh” redirects here. For the region, see Pittsburgh Metropolitan Area. Pittsburgh (pronounced IPA: /ˈpɪtsbɚg/) is the second largest city in the Commonwealth of Pennsylvania. . Conference Call and Live Webcast Mylan will host a conference call and live Webcast to discuss its first quarter earnings today at 10:00 am ET. The dial-in number to access the live call is (719) 457-2679. In addition to the live call, a replay will be available from approximately 12:00 pm ET on July 23, through 12:00 pm ET July 30, and can be accessed by dialing (719) 457-0820 with access pass code 420781. To access the live Webcast, go to Mylan's website at www.mylan.com and click on the Webcast icon at least 15 minutes before the call is to begin to register and download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. or install any necessary audio software. If you are unable to listen to the live Webcast, please access www.mylan.com at any time within seven days to listen to a replay of the Webcast. 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. This press release includes statements that constitute "forward-looking statements". These statements are 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. Because such statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: -- the Company's ability to successfully develop, license or otherwise acquire and introduce new products on a timely basis in relation to competing product introductions; -- the Company's ability to obtain required 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. approvals for new products on a timely basis; -- uncertainties regarding continued market acceptance of and demand for the Company's products; -- the Company's periodic dependence on a relatively small group of products as a significant source of its net revenue or net income; -- the effects of vigorous competition on commercial acceptance of the Company's products and their pricing; -- the high cost and uncertainty associated with compliance with extensive regulation of the pharmaceutical industry; -- the significant research and development expenditures the Company makes to develop products, the commercial success of which is uncertain; -- the possible loss of business from the Company's concentrated customer base; -- the potential costs and product introduction delays that may result from use of legal, 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. and legislative strategies by the Company's competitors; -- the Company's dependence on third party suppliers and distributors for the raw materials, particularly the chemical compound(s) which produces the desired therapeutic effect, the active ingredient An active ingredient, also active pharmaceutical ingredient (or API), is the substance in a drug that is pharmaceutically active. Some medications may contain more than one active ingredient. the Company uses to manufacture its products; -- the possible negative effects of any interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. of manufacturing of the Company's generic products at its principal facility; -- the effects of consolidation of the Company's customer base; -- uncertainties regarding patent, intellectual and other proprietary property protections; -- the expending of substantial resources associated with litigation involving patent or other intellectual property protection of competing products; -- possible reductions in reimbursement rates for pharmaceutical products; -- possible negative effect on product pricing of current or future legislative or regulatory programs; -- the Company's exposure to lawsuits and contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. associated with its business; -- uncertainties regarding the Company's performance under indemnification Indemnification Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgements resulting from clauses in certain material agreements; -- the Company's exposure to risks inherent in acquisitions or joint ventures; -- the Company's ability to attract and retain key personnel; -- possible adverse effects resulting from any significant decline in the value of securities that the Company holds or from uninsured losses of funds; -- uncertainties and matters beyond the control of management, which could affect the Company's earnings guidance, as well as the subjectivity sub·jec·tive adj. 1. a. Proceeding from or taking place in a person's mind rather than the external world: a subjective decision. b. inherent in any probability weighted analysis underlying the Company's assumptions and estimates with respect to the future; and -- inherent uncertainties involved in the estimates and judgments used in the preparation of financial statements in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). and related standards. The cautionary statements referred to above should be considered in connection with any subsequent written or oral forward-looking statements that may be made by the Company or by persons acting on its behalf and in conjunction with its periodic SEC filings. In addition, please refer to the cautionary statements and risk factors in Item I of the Company's 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. for the year ended March 31, 2003. The Company undertakes no duty to update its forward-looking statements, even though its situation may change in the future. Mylan Laboratories Inc. is a leading pharmaceutical company that develops, manufactures and markets generic and proprietary prescription products. Mylan has two operating segments that market an extensive line of generic and branded products through four subsidiaries: Mylan Pharmaceuticals Inc., Mylan Technologies Inc., UDL UDL Universal Design for Learning UDL Universitat de Lleida (Spain) UDL Universal Data Link UDL Urban Debate League UDL Uniformly Distributed Load (mechanics, building trade) UDL User Defined Logic Laboratories, Inc. and Bertek Pharmaceuticals Inc. For more information about Mylan, visit www.mylan.com. MYLAN LABORATORIES INC. AND SUBSIDIARIES Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statements of Earnings (unaudited; in thousands, except per share amounts)
Three Months Ended
June 30, 2003 June 30, 2002
-------------------------------------
Net revenues $331,408 $275,473
Cost of sales 153,979 127,871
-------------------------------------
Gross profit 177,429 147,602
Operating expenses:
Research and development 24,739 16,843
Selling and marketing 17,836 16,887
General and administrative 29,608 19,221
Litigation settlements (21,669) -
-------------------------------------
Total operating expenses 50,514 52,951
-------------------------------------
Earnings from operations 126,915 94,651
Other income, net 3,105 1,988
-------------------------------------
Earnings before income taxes 130,020 96,639
Provision for income taxes 46,157 34,790
-------------------------------------
Net earnings $83,863 $61,849
=====================================
Earnings per common share:
Basic $0.47 $0.33
=====================================
Diluted $0.46 $0.32
=====================================
Weighted average common shares:
Basic 180,147 188,928
=====================================
Diluted 184,085 190,432
=====================================
MYLAN LABORATORIES INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (in thousands)
June 30, 2003 March 31, 2003
-----------------------------
(unaudited)
Assets:
Current assets:
Cash and cash equivalents $208,157 $258,902
Marketable securities 435,843 427,904
Accounts receivable, net 165,916 187,587
Inventories 258,166 237,777
Other current assets 111,314 116,041
-----------------------------
Total current assets 1,179,396 1,228,211
Non-current assets 513,345 517,012
-----------------------------
Total assets $1,692,741 $1,745,223
=============================
Liabilities:
Current liabilities $188,939 $265,771
Non-current liabilities 37,941 33,120
-----------------------------
Total liabilities 226,880 298,891
Total shareholders' equity 1,465,861 1,446,332
-----------------------------
Total liabilities and shareholders'
equity $1,692,741 $1,745,223
=============================
MYLAN LABORATORIES INC. AND SUBSIDIARIES Segment Results (unaudited; in thousands)
Three Months Ended
June 30, 2003 June 30, 2002
--------------------------------
Consolidated:
Net revenues $331,408 $275,473
Cost of sales 153,979 127,871
--------------------------------
Gross profit 177,429 147,602
Research and development 24,739 16,843
Selling and marketing 17,836 16,887
General and administrative 29,608 19,221
Litigation settlements (21,669) -
--------------------------------
Earnings from operations $126,915 $94,651
================================
Generic Segment:
Net revenues $255,228 $235,645
Cost of sales 116,773 111,162
--------------------------------
Gross profit 138,455 124,483
Research and development 13,487 10,014
Selling and marketing 2,756 2,748
General and administrative 4,691 5,398
--------------------------------
Earnings from operations $117,521 $106,323
================================
Brand Segment:
Net revenues $76,180 $39,828
Cost of sales 37,206 16,709
--------------------------------
Gross profit 38,974 23,119
Research and development 11,252 6,829
Selling and marketing 15,080 14,139
General and administrative 2,903 2,565
--------------------------------
Earnings (loss) from operations $9,739 $(414)
================================
Corporate/Other:
General and administrative $22,014 $11,258
Litigation settlements (21,669) -
--------------------------------
Loss from operations $(345) $(11,258)
================================
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