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)
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
income taxes (4,721) 962 2,570 8,614
Net income $(5,665) $ 4,364 $ 5,081 $14,106
Primary $ (.34) $ .26 $ .30 $ .84
Fully diluted $ (.34) $ .24 $ .30 $ .80
Primary 16,918 16,810 16,904 16,788
Fully diluted 21,632 21,455 21,611 21,434
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.
Dec. 31 1991 1990
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
Senior 59,197 39,536
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
/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