A.L. LABORATORIES REPORTS THIRD QUARTER AND NINE MONTH RESULTS
FORT LEE, N.J., Nov. 5 /PRNewswire/ -- A.L. Laboratories, Inc. (NYSE: BMD), a leading manufacturer of specialty pharmaceuticals, today reported that for the third quarter ended Sept. 30, 1991, revenues increased 14.1 percent to $79,983,000 compared to $70,125,000 in the same quarter of 1990. Net income increased to $3,714,000 compared with $3,651,000 for the 1990 period. Fully diluted per share earnings were $.21 in both periods.
For the nine months ended Sept. 30, 1991, revenues increased 8.5 percent to $221,581,000 from $204,279,000 a year ago. Net income increased 10.3 percent to $10,746,000 from $9,742,000 in the same period of 1990. Fully diluted per share earnings increased 8.9 percent to $.61 per share up from $.56 per share a year ago.
The per share earnings for the three and nine month periods are adjusted to reflect the three-for-two stock split paid April 29, 1991.
The increase in revenue for the three month period was due to higher sales by Animal Health, including recently acquired feed additive products; excellent performance from Dumex which continues to emphasize higher margin products and markets; and positive contributions from both Barre-National and NMC, notwithstanding the difficult U.S. pharmaceutical business and regulatory environment.
The company has repeatedly stated its intention to concentrate on higher margin specialty products and, in furthering this strategy, entered into an agreement in the third quarter of 1991 to accelerate the exercise date of an option to sell Dumex' trademarks related to its low- margin Human Nutrition business in the Far East. The newly established exercise date is Sept. 30, 1992. Revenues and operating income for the third quarter 1991 include $2.3 million received by the company as a fee related to this accelerated option date.
Operating income from Animal Health, Dumex and NMC all increased considerably for the third quarter and nine month 1991 periods. More than offsetting these increases, has been the impact of unusually higher costs related to compliance with regulatory and legislative actions affecting the U.S. pharmaceutical industry. Aggressive measures increased during the third quarter to intensify the company's activities related to progressively demanding regulatory requirements and procedures. These higher costs are reflected in both cost of sales and operating expenses, and are expected to continue at high levels through the end of 1991, and probably into early 1992.
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 third quarter results do not reflect the strength of our underlying businesses because it is being masked by the relatively short-term impact of the current U.S. pharmaceutical climate. In this context, we are pleased with the progress of our operations for the third quarter.
"In addition to the advances made by our core businesses during this quarter, our major development projects also moved closer to fruition, the most important being our periodontal project. After more than five years of intensive scientific efforts, registration applications have been filed for our unique, patented gel-matrix product in all the Scandinavian countries, as well as the United Kingdom, Germany, Switzerland and Holland. We anticipate approval in some Scandinavian countries by late 1992, and Dumex' sales/marketing team is tailoring a multi-faceted plan for product launch upon receipt of approval.
"As we have consistently stated, the current, more challenging regulatory and compliance environment is redefining the fundamentals of our industry for the future. It is clear to us that only those few companies who are committed to adapt to the new realities of our industry and have the resources to make the substantial investments required, will participate in the industry's expected explosive growth. We are committed to continue to be a premier company in our industry and the dominant quality manufacturer of specialty human pharmaceuticals and animal health micronutrients.
"Toward this end we are accelerating our efforts, which will increase costs, to further enhance our quality and compliance procedures. Although the costs will continue to impinge on short-term earnings, we consider them investments that must be made to insure our future industry leadership position, and we therefore feel they are in the best long-term interests of our shareholders," 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, Ill.; 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 Nine Months
Sept. 30 1991(A) 1990 1991(B) 1990
Total revenue $79,983 $70,125 $221,581 $204,279
Cost of sales 47,877 40,064 128,463 119,583
Gross profit 32,106 30,061 93,118 84,696
Selling, general & admin.
expenses 23,057 21,513 66,461 59,663
Operating income 9,049 8,548 26,657 25,033
Interest expense (3,170) (3,041) (9,112) (8,385)
Other, net 364 759 492 746
Inc. bef. provision for
income taxes 6,243 6,266 18,037 17,394
Provision for income taxes 2,529 2,615 7,291 7,652
Net income 3,714 3,651 10,746 9,742
Earnings per common share:(C)
Primary .22 .22 .64 .58
Fully diluted .21 .21 .61 .56
Avg. common shares outstdg:(C)
Primary 16,918 16,791 16,886 16,781
Fully diluted 21,517 21,488 21,504 21,478
Dividend per common share(C) .04 .027 .12 .08
(A) -- Includes approximately $2,300 pre-tax income from an option acceleration fee related to the Human Nutrition business.
(B) -- Includes approximately $4,500 pre-tax income from the sale of certain trademarks and an option acceleration fee related to the Human Nutrition business.
(C) -- Adjusted to reflect three-for-two stock split paid April 29, 1991.
A.L. LABORATORIES, INC.
Current assets $151,571 $148,396
Non-current assets 189,990 180,099
Total assets 341,561 328,495
Current liabilities 85,310 95,747
Senior 58,755 39,536
7-3/4 percent subordinated
convertible debentures 61,415 61,850
Deferred taxes and other
liabilities 20,046 20,347
Stockholders' equity 116,035 111,015
Total liabilities and
stockholders' equity 341,561 328,495
/CONTACT: Jeffrey E. Smith, vice president finance or Iris D. Daniels of A.L. Laboratories, 201-947-7774, or June Filingeri of Morgen- Walke Associates, 212-986-5900, for A.L. Laboratories/
(BMD) CO: A.L. Laboratories, Inc. ST: New Jersey IN: MTC SU: ERN KD-PS -- NY008 -- 1059 11/05/91 07:32 EST