PolyMedica Industries Inc. announces Fiscal 1996 income from continuing operations exceeding analyst estimates.WOBURN, Mass.--(BUSINESS WIRE)--May 30, 1996--PolyMedica Industries Inc. (AMEX AMEX See: American Stock Exchange :PM) today announced record level income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $3.1 million, or $0.41 per common share, for its fiscal year ended March 31, 1996. This performance met or exceeded analyst estimates. PolyMedica recently announced a tax-free structured spin-out distribution of technology-based CardioTech International Inc. (AMEX: CTE (Coefficient of Thermal Expansion) The difference between the way two materials expand when heat is applied. This is very critical when chips are mounted to printed circuit boards, because the silicon chip expands at a different rate than the plastic board. ) to PolyMedica stockholders of record as of June 3, 1996. The impact of CardioTech's discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , consisting of an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. and one-time loss on disposal totaling $2.8 million, resulted in net income of $274,000, or $0.04 per share. In Fiscal 1995, income from continuing operations was $2.4 million, or $0.35 per share. CardioTech's operating loss was $605,000, resulting in net income of $1.8 million, or $0.26 per share. PolyMedica's operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: from continuing operations grew to 19.9 percent, or $4.9 million in Fiscal 1996, an all-time high. This compares to operating margins of 17.1 percent, or $4.6 million, generated in Fiscal 1995. This performance is an important measure of the company's ability to leverage earnings from established infrastructure. With cash balances in excess of $22 million, the company is favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. positioned to pursue acquisitions. Steven J. Lee, president and chief executive officer, stated, "Fiscal 1996 was an active year for PolyMedica, especially with respect to the impending im·pend intr.v. im·pend·ed, im·pend·ing, im·pends 1. To be about to occur: Her retirement is impending. 2. spin-out of CardioTech. CardioTech, which will operate out of Woburn, Mass. and Tarvin, U.K., will use proprietary polyurethane polyurethane Any of a class of very versatile polymers that are made into flexible and rigid foams, fibres, elastomers (elastic polymers), surface coatings, and adhesives. technologies to develop specialized vascular grafts and other high-value medical products and materials. We acknowledge the one-time charge to earnings for the cost of the spin-out. "However, the board of directors of PolyMedica believes that the spin-out is in the best interests of PolyMedica, CardioTech and PolyMedica stockholders because it will (1) provide both companies with greater access to the capital markets by permitting the investment community to evaluate each company more effectively; (2) enable management of each company to adopt strategies and pursue objectives directly focused on its business and products; (3) enhance the ability of each company to attract and motivate existing and potential key employees by providing them with equity compensation tied directly to the results of their efforts; (4) substantially improve the near-term earnings of PM by eliminating from its operations the expenses associated with the development of CardioTech's products; (5) enable the board of directors to avoid conflict in the use of limited capital resources by the two companies; and (6) enhance the ability of the two companies to enter into strategic alliances and joint ventures." We expect trading of shares of CardioTech common stock on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. to commence on June 12, 1996, one day after the June 11, 1996 payable date. Lee further stated, "Revenues decreased in Fiscal 1996 partially due to the result of continued uneven ordering patterns by the company's U.S. wound care distributors, and this reflects ongoing changes in the reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. marketplace. To renew sales growth, the company has developed a comprehensive line of professional wound care products which is targeted to national buying groups. In addition, we have entered the retail wound dressing market by placing products in more than 20,000 drug store locations throughout 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. . To support this effort, an aggressive marketing campaign has begun using national television spots on ESPN ESPN Entertainment and Sports Programming Network and ESPN II and major print media, such as Sports Illustrated Sports Illustrated is the largest weekly American sports magazine owned by media conglomerate Time Warner. It has over 3 million subscribers and is read by 23 million adults each week, including over 18 million men, 19% of the adult males in the country. ." During the past two years, PolyMedica has invested more than $2.5 million from its working capital for state-of-the-art pharmaceutical production equipment and facility improvements. In-house pilot production of URISED and other pharmaceutical products commenced in 1996 at the company's Woburn facility in order to conduct accelerated stability tests on our production runs. The company has also recently introduced CYSTOSPAZ-M, a time release version of CYSTOSPAZ anti-spasmodic, to the marketplace with a marketing partner. The company noted that the above 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. are subject to change, based on various important factors, including without limitation, buying trends by customers and competitive actions. For further information on potential factors, please refer to the company's periodic filings with the Securities and Exchange Commission. -0-
PolyMedica Industries Inc. and Subsidiaries
Consolidated Financial Summary
(In thousands, except per share amounts)
Fiscal year ended March 31
1996 1995
Revenues $24,763 $26,609 Income from continuing operations 3,075 2,394 Discontinued operations: Operating loss of spin-out company (923) (605) Loss on disposal of spin-out company (1,878) -- Loss from discontinued operations (2,801) (605) Net income $274 $1,789 Earnings per share: Income from continuing operations $.41 $.35 Loss from discontinued operations (.37) (.09) Net income $.04 $.26 Weighted average common shares outstanding 7,492 6,790 -0- CONTACT: PolyMedica Industries Inc. Steven J. Lee, 617/933-2020 |
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