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A. L. LABORATORIES REPORTS 1991 FULL-YEAR AND FOURTH QUARTER EARNINGS

   A. L. LABORATORIES REPORTS 1991 FULL-YEAR AND FOURTH QUARTER EARNINGS
    FORT LEE, N.J., March 9 /PRNewswire/ -- A. L. Laboratories, Inc. (NYSE: BMD) today reported that revenues for the year ended Dec. 31, 1991 reached $295.0 million compared with $275.5 million in 1990.  For the fourth quarter ended Dec. 31, 1991, total revenue was $73.5 million versus $71.2 million in 1990.
    On Nov. 13, 1991, the company announced that fourth quarter 1991 pre-tax results would be impacted by approximately $11 million due to current and committed costs for quality and compliance, as well as other issues including personnel initiatives, resulting primarily from heightened regulatory and legislative requirements in the pharmaceutical industry to assure safe and effective products.  The strength of the company's operations was obscured for the first three quarters while these types of costs were absorbed as part of ongoing operating expenses.  With the recognition of these charges in the fourth quarter, the true strength of the company's operations will be apparent in 1992.
    In actuality, the total effect of these current and committed costs was to reduce fourth quarter pre-tax income by approximately $13 million, resulting in a net loss for the fourth quarter, 1991, of $5.7 million or $0.34 per share compared to a net income of $4.4 million or $0.24 per share on a fully diluted basis in 1990.  As a result, net income for the year ended Dec. 31, 1991 was $5.1 million or $0.30 per share compared with $14.1 million or $0.80 per share in 1990 on a fully diluted basis.
    Commenting on the results, Jeffrey E. Smith, executive vice president and member of the office of the chief executive of A. L. Laboratories, Inc. said, "The substantial charges to pre-tax earnings in the fourth quarter of 1991, in addition to $8 million of similar type charges incurred in the first nine months, represent the most intensive and visible example of our commitment to respond decisively and realistically in continuing to build for our future.  We consider these charges as investments which are absolutely necessary to insure our industry leadership position and, even though they produced our first quarterly loss ever, we are convinced they are in the best long-term interests of our shareholders."
    Smith continued, "In fact, supported by the operating decisions taken in 1991, and fueled by the continued revenue growth of our businesses, we expect the true strength of our continuing operations to be reflected in 1992, beginning with the first quarter ending March 31.
    "The decisive actions we have taken are a further indication of our total dedication to quality and compliance and an ability to adapt in a planned, dynamic and forward-looking manner to the changes occurring in the pharmaceutical industry.  We are able to take such aggressive actions because of the financial strength of our diversified businesses. To the extent that some of these costs become a permanent aspect of operations, we believe that they will ultimately be offset by higher selling prices which will accrue to those companies who have made the investments in quality and compliance, as we are doing.  It is our judgment that the decision to recognize these costs now is an integral part of achieving our goals," Smith concluded.
    A. L. Laboratories is a multinational manufacturer and marketer of specialized value-added, branded pharmaceuticals and animal health micronutrients, with plant sites in Chicago Heights, Illinois; Niagara Falls and Glendale, N.Y.; Baltimore; Bellevue, Wash.; Copenhagen, Denmark; and Jakarta, Indonesia.
                         A. L. LABORATORIES, INC.
                     Consolidated Statements of Income
                   (In thousands, except per share data)
                                (Unaudited)
    Periods ended           Three months            Twelve months
     Dec. 31,            1991(B)       1990       1991(A)(B)   1990
    Total revenue        73,459       71,178      295,040     275,457
    Cost of sales        46,830       41,962      175,293     161,545
    Gross profit         26,629       29,216      119,747     113,912
    S,G&A expenses       33,711       20,586      100,172      80,249
    Operating income     (7,082)       8,630       19,575      33,663
    Interest expense     (2,986)      (3,267)     (12,098)    (11,652)
    Other, net             (318)         (37)         174         709
    Inc. bef. provision
     for inc. taxes      (10,386)      5,326        7,651      22,720
    Provision for
     income taxes         (4,721)        962        2,570       8,614
    Net income           $(5,665)    $ 4,364      $ 5,081     $14,106
    Earnings per
     common share:(C)
     Primary             $ (.34)      $  .26       $  .30      $  .84
     Fully diluted       $ (.34)      $  .24       $  .30      $  .80
    Average common
    shares outstanding(C):
     Primary             16,918       16,810      16,904       16,788
     Fully diluted       21,632       21,455      21,611       21,434
    Dividend per
     common share(C)   $  0.04       $ 0.267      $  0.16     $  0.107
    (A) Includes approximately $4,500 pre-tax income from the sale of certain trademarks and an option acceleration fee related to the Human Nutrition business.
    (B) 1991 results include the impact of current and committed costs for quality and compliance, as well as other issues including personnel initiatives, resulting primarily from heightened regulatory and legislative requirements in the pharmaceutical industry of approximately $13,000 in the quarter and approximately $21,000 for the full year.
    (C)  Adjusted to reflect three-for-two stock split paid April 29, 1991.
                          A. L. LABORATORIES, INC.
                            Financial Position
                              (In thousands)
    Dec. 31                                1991                 1990
                                       (unaudited)           (audited)
    Current assets                       $159,540            $148,396
    Non-current assets                    199,290             180,099
      Total assets                       $358,830            $328,495
    Current liabilities                  $105,720            $ 95,747
    Long-term debt:
     Senior                               59,197               39,536
     7-3/4 percent
      Subordinated convertible
      debentures                          60,197               61,850
    Deferred taxes and other
     liabilities                           19,710              20,347
    Stockholders' equity                  114,006             111,015
      Total liabilities and
       stockholders' equity              $358,830            $328,495
    -0-            3/9/92
    /CONTACT:  Jeffrey Smith of A.L. Laboratories, 201-947-7774, or June Filingeri of Morgen Walke, 212-986-5900, for A.L. Laboratories/
    (BMD) CO:  A.L. Laboratories Inc. ST:  New York IN: SU:  ERN SH -- NY012 -- 6238 03/09/92 09:09 EST
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Date:Mar 9, 1992
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