Theragenics Corporation Reports Revenue and Earnings for First Quarter, 2003.Business Editors/Health/Medical Writers BUFORD, Ga.--(BUSINESS WIRE)--April 22, 2003 Theragenics Corporation(R) (NYSE NYSE See: New York Stock Exchange : TGX TGX Theragenics Corporation (stock symbol) TGX Trajectory Generator External ), the Georgia-based manufacturer and marketer of the TheraSeed(R) cancer treatment device, today announced revenue and earnings for the first quarter ended March 31, 2003. Revenues for the quarter were $11.1 million compared to $11.6 million in the same period of last year, a 4.6 percent reduction. Compared to the fourth quarter of 2002, revenue increased 19%, primarily due to a 16 percent increase in TheraSeed(R) unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. . Net income in the quarter, before the cumulative effect of a change in accounting principle, was $1.2 million, compared to $2.6 million in the first quarter of 2002, and $222,000 in the fourth quarter of 2002. The cumulative effect of change in accounting principle, an after-tax charge of $222,000 ($0.01 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. common share), represents the company's adoption, on January 1, 2003, of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 143, Accounting for Asset Retirement Obligations Asset Retirement Obligations provide for future disposal of assets as required by SFAS 143 [1]. Firms must recognize the ARO liability in the period it was acquired, generally acquisition. . Including the effect of this change, net earnings per common share amounted to $0.03 per share (diluted). For the quarter ended March 31, 2003, SG&A expenses were $3.4 million, or 10% higher than in the first quarter of 2002, the increase driven primarily by higher D&O insurance costs in the quarter. Research and development costs, at $1.5 million in the quarter, were $0.6 million higher than the same period last year. This increase primarily represented the cost of manufacturing devices for use in our ongoing TheraP clinical trial. Commenting on the results, Ms. M. Christine Jacobs, Chairman, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President, stated, "Although it is still too early to predict future trends based on the increased unit sales we have seen in this quarter, we are pleased to see the change in momentum. We continue to tweak To make minor adjustments in an electronic system or in a software program in order to improve performance. See calibrate. 1. tweak - To change slightly, usually in reference to a value. Also used synonymously with twiddle. our marketing, sales and distribution strategy. Simultaneously, we modified our consumer awareness campaign with new ads. This quarter we added two more brachytherapy brachytherapy /brachy·ther·a·py/ (-ther´ah-pe) treatment with ionizing radiation whose source is applied to the surface of the body or within the body a short distance from the area being treated. specialists to support TheraSeed(R) sales. Our specialist team is making inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ and, as we'd hoped, the addition of I-Seed, our Iodine-based product, appears to have created new opportunities for us in the marketplace. We have successfully integrated the sales and marketing of the I-Seed product into our product line, and sales of I-Seed have been higher than expected. We are continuing preparations to bring production of I-Seed in-house by early next year. "While we are dedicated to increasing sales of our brachytherapy products, we are also making progress in our R & D programs," Ms. Jacobs continued. "The first few patients treated in the TheraP trial, a study of catheter-based Pd-103 devices for the treatment of peripheral artery disease, have received their post-operation evaluations and are all doing very well. "This year, we are also increasing our efforts to demonstrate the capabilities of our Plasma Separation Process technology by forming new alliances. We have engaged a noted Washington D.C.-based group of consultants who are exploring opportunities for the PSP (PlayStation Portable) See PlayStation. , including possible use of the technology for Homeland Security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States applications." Ms. Jacobs concluded her remarks by saying, "We are encouraged and hopeful that our current trend will continue. We will stay the course, increase efforts, and remain vigilant in a turbulent, unpredictable marketplace." Theragenics(TM) will be hosting a conference call today at 11:00 a.m. Eastern Time. To access the call, dial 800-538-9844 or 706-634-7274 and give the Company name. This call is also being broadcast live over the internet, and a recording will be available for the next two weeks on the Company's website: www.theragenics.com. You can also access a replay of the call until Midnight on Friday by dialing 800-642-1687 or 706-645-9291 and giving the conference ID code: 9614082. Theragenics Corporation(R) is committed to being a leading provider of brachytherapy treatment devices for prostate cancer prostate cancer, cancer originating in the prostate gland. Prostate cancer is the leading malignancy in men in the United States and is second only to lung cancer as a cause of cancer death in men. and other degenerative disease A degenerative disease is a disease in which the function or structure of the affected tissues or organs will progressively deteriorate over time, whether due to normal bodily wear or lifestyle choices such as exercise or eating habits. states. The Company is the manufacturer and marketer of TheraSeed(R), a rice-sized device used in the treatment of localized prostate cancer with a one-time, minimally invasive procedure Minimally invasive surgical procedures avoid open invasive surgery in favor of closed or local surgery with less trauma. These procedures involve use of laparoscopic devices and remote-control manipulation of instruments with indirect observation of the surgical field through an . Theragenics(TM) is the world's largest producer of palladium-103 and is involved in research and development utilizing palladium-103 for the treatment of vascular disease, macular degeneration macular degeneration, eye disorder causing loss of central vision. The affected area, the macula, lies at the back of the retina and is the part that produces the sharpest vision. and other diseases and research and development centered around other isotopes An isotope a type of neutral atom but the number of neutrons is different from the number of protons in the nucleus. May be radioactive. Elements 1-15 Hydrogen
The process by which the corporation communicates with its investors. Department at (800) 998-8479. The Company's common stock is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol TGX. Additional information can be found on the Company website: www.theragenics.com. This release contains forward looking statements within the meaning 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, the accuracy of which is necessarily subject to risks and uncertainties, including, without limitation, optimism for the direct distribution system and new sales and marketing initiatives foretelling increases in unit sales and return of gross margins, institution of activities and plans that could benefit Theragenics'(TM) goals in its diversification efforts and anticipated positive results in general. Actual results may be affected by among other things, risks and uncertainties related to new product and process development cycles, potential costs and delays associated with preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. and clinical studies, potential costs and delays in production optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. (especially as it relates to the Oak Ridge Oak Ridge, city (1990 pop. 27,310), Anderson and Roane counties, E Tenn., on Black Oak Ridge and the Clinch River; founded by the U.S. government 1942, inc. as an independent city 1959. facility), effectiveness and execution of marketing and sales programs by Theragenics(TM) and its distributors, changes in product pricing by Theragenics(TM) or other brachytherapy seed producers, changes in costs of materials used in production processes (especially as it relates to isotope isotope (ī`sətōp), in chemistry and physics, one of two or more atoms having the same atomic number but differing in atomic weight and mass number. The concept of isotope was introduced by F. production), continued acceptance of the products by the market, continued demand for Pd-103, demand for isotopes or isotopically engineered materials for new or expanded applications, introduction and/or availability of competitive products by others, third-party (including CMS (1) See content management system and color management system. (2) (Conversational Monitor System) Software that provides interactive communications for IBM's VM operating system. ) reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. , physician training, third-party distribution agreements, and other factors set forth from time to time in the Company's Securities and Exchange Commission filings. All forward looking statements and cautionary statements included in this document are made as of the date hereby based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward looking statement or cautionary statement. THERAGENICS CORPORATION(R) 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. STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands except per share data)
Three Months Ended
March 31, March 31,
2003 2002
------------ ----------
Total revenues $ 11,102 $11,633
Cost of sales 4,537 3,655
-------- -------
Gross profit 6,565 7,978
Operating expenses:
Selling, general & administrative 3,391 3,092
Research & development 1,501 933
-------- -------
4,892 4,025
-------- -------
Operating income 1,673 3,953
Other income, net 228 211
-------- -------
Net income before taxes 1,901 4,164
Income tax expense 682 1,537
-------- -------
Net income before cumulative effect of
accounting change $ 1,219 $ 2,627
Cumulative effect of accounting change,
net of tax (222)
-------- ----------
Net income $ 997 $ 2,627
EPS before cumulative effect of accounting
change - Basic $ 0.04 $ 0.09
Cumulative effect of accounting change ( 0.01)
-------- ----------
Net income per common share - Basic $ 0.03 $ 0.09
EPS before cumulative effect of accounting
change - Diluted $ 0.04 $ 0.09
Cumulative effect of accounting change (0.01)
-------- ----------
Net income per common share - Diluted $ 0.03 $ 0.09
Weighted average
Shares outstanding - Basic 29,829 29,715
Shares outstanding - Diluted 29,925 30,097
Key Ratios: Three Months Three Months
Ended Ended
March 31, 2003 March 31, 2002
------------------------------
Gross Margin 59.1% 68.6%
Operating Margin 15.1% 34.0%
Profit Before Tax and Before Accounting
Change Margin 17.1% 35.8%
Profit After Tax Margin and Before
Accounting Change 11.0% 22.6%
Profit After Tax Margin and After
Accounting Change 8.9% 22.6%
ROE 2.8% 7.6%
THERAGENICS CORPORATION(R) CONDENSED BALANCE SHEETS (UNAUDITED) (In thousands)
Assets March 31, December 31,
2003 2002
----------------------
Cash, short-term investments
& marketable securities $ 69,721 $ 68,321
Trade accounts receivable 5,413 4,789
Inventories 2,092 1,960
Other current assets 1,802 2,038
-------- --------
Total current assets 79,028 77,108
Property, plant & equipment, net 72,824 74,050
Other assets 1,589 237
-------- --------
Total assets $153,441 $151,395
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Liabilities & Stockholders' Equity
Accounts payable & accrued expenses $ 2,644 $ 2,384
Deferred income taxes 6,867 6,853
Other liabilities 555 68
-------- --------
Total liabilities 10,066 9,305
Stockholders' equity 143,375 142,090
-------- --------
Total liabilities & stockholders'
equity $153,441 $151,395
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