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ELAN ANNOUNCES SECOND QUARTER NET INCOME UP 101 PERCENT BEFORE ONE-TIME CHARGES

 ATHLONE, Ireland, Nov. 8 /PRNewswire/ -- Elan Corporation, plc (AMEX: ELN) today announced net income before one-time charges for the second quarter ended Sept. 30, 1993 of 8,064,000 Irish pounds (US$11,540,000) and earnings per share of 0.23 Irish pounds (US$0.33) compared with net income of 4,006,000 Irish pounds and earnings per share of 0.13 Irish pounds in the three months ended Sept. 30, 1992 representing increases of 101 percent and 77 percent, respectively. Net income for the six months ended Sept. 30, 1993 (before one-time charges) was 15,280,000 pounds ($21,886,000) and earnings per share was 0.45 pounds ($0.65) compared with 8,280,000 pounds and 0.26 pounds in the six months ended Sept. 30, 1992 representing increases of 85 percent and 73 percent, respectively.
 Revenue for the second quarter was 25,405,000 pounds ($36,354,000) compared to 21,878,000 pounds in the second quarter in the previous year, an increase of 16 percent, analyzed as follows:
 Quarter ending Sept. 30
 1992 1993 1993
 Irish pounds 000 US$000
 Manufacturing and Distribution 15,403 16,357 23,406
 Contract Development 3,616 1,152 1,649
 Royalties 2,626 4,796 6,863
 License and Option Fees 233 3,100 4,436
 Total 21,878 25,405 36,354
 Revenues for the six months ended Sept. 30, 1993 were 50,686,000 pounds ($72,531,000) compared with 41,587,000 pounds in the first half of 1992, an increase of 22 percent, analyzed as follows:
 Six Months ending Sept. 30
 1992 1993 1993
 Irish pounds 000 US$000
 Manufacturing and Distribution 28,230 29,184 41,761
 Contract Development 5,619 7,022 10,049
 Royalties 5,119 10,111 14,469
 License and Option Fees 2,619 4,369 6,252
 Total 41,587 50,686 72,531
 Manufacturing and distribution revenues increased by 6 percent in the second quarter of fiscal 1994 compared with the comparable quarter last year. A decrease in shipments of Prostep(R) in the second quarter '94 vs. second quarter '93 to the company's U.S. licensee was offset by new market introductions of the Nicotine patch and the continued success of the Cardizem(R) SR and CD and Verelan(R) families of cardiovascular drugs and increased product sales in other world markets where Elan has received regulatory approval for marketing 19 products in one or more of 44 countries. The rate of increase in these revenues was also affected by the continued shift in marketing emphasis in the United States from Cardizem SR(R) (manufactured exclusively by Elan) to Cardizem CD(R) (principally manufactured by Marion Merrell Dow). Royalties increased by 83 percent in the second quarter of fiscal 1994 compared with the second quarter of fiscal 1993. The increase was due mainly to royalties from the increasing sales of Cardizem CD.
 Contract development revenues declined by 68 percent in the second quarter of fiscal 1994 compared with the comparable quarter last year. These revenues in fiscal 1994 were mainly received from third party clients whereas revenues in 1993 were principally received from Drug Research Corporation, plc ("DRC").
 Research and development expenditure increased by 35 percent in the quarter compared with last year reflecting in part the funding by Elan of research previously funded by DRC.
 The acquisition of DRC which was completed in July 1993 gave rise to a one-time charge of 59,329,000 ($84,900,000) representing the write-off of acquired in-process research and development pursuant to Statement of Financial Accounting Standard No. 2 "Accounting for Research and Development Costs." However, there is no net effect on Elan's capitalization due to the issuance of Elan equity in payment for the acquisition. The successful completion of the Advanced Therapeutic Systems, Limited ("ATS") rights offering in August 1993 gave rise to a one-time charge of 25,802,000 ($36,923,000) representing the Elan cash contribution to ATS.
 The net loss, after one-time charges of 85,131,000 pounds ($121,822,000) relating to the acquisition of DRC and the Elan contribution to ATS, was 77,067,000 pounds ($110,283,000) and 69,851,000 pounds ($99,957,000) for the three months and six months ended Sept. 30, 1993, respectively. Loss per share was (2.20 pounds) ($3.15) and (2.06 pounds) ($2.95), respectively.
 Inclusive of the Elan contribution and the proceeds of the rights offering, ATS received $108,900,000 approximately for the development of products utilizing Elan's ETDAS (ElectroTransport Drug Administration System), MIDAS (Microparticulate Injectable Drug Administration System) and BEODAS (Biodegradable Enhanced Oral Drug Administration System) technologies.
 In commenting on the results, Donald E. Panoz, chairman and chief executive officer of Elan, said: "It is a tribute to the strength of our worldwide business that we have sustained growth in revenues and earnings through this difficult period in the industry. I am particularly pleased to note that as we enter our 25th year the opportunities available to our company appear greater than ever. The successful completion of the ATS offering affords Elan the opportunity to fund innovative new research for the long term benefit of Elan's shareholders. In October 1993, we launched the Hearty Balance(TM) range of nutritional supplements for patients suffering from Parkinson's Disease which is our first direct product roll-out in the United States. I am encouraged by initial reaction to the product launch and believe that it will contribute to our revenues in the second half of fiscal 1994."
 Elan Corporation, plc. is a leading worldwide drug delivery company. Its innovative drug absorption technologies are designed to improve patient care in a cost effective manner. Elan has its principal manufacturing, research and clinical facilities at Athlone, Ireland and other facilities in Gainesville, Ga.; Brea, Calif.; Boston, Mass.; Lincoln, R.I.; Manila, Philippines; Enschede, Holland; and Mezzovico, Switzerland.
 Elan Corporation, plc
 Supplementary Memorandum to Press Release Dated Nov. 8, 1993
 1. Acquisition of Drug Research Corporation, plc
 On July 6, 1993, Elan exercised its option to acquire the outstanding callable ordinary shares of Drug Research Corporation, plc at a cost to Elan of approximately $82.5 million (prior to related transaction expenses).
 This was paid through the issuance of 2,485,358 Elan ordinary shares in the form of Elan American Depositary Shares. In accordance with generally accepted accounting principles Elan is required to record the assets and liabilities so acquired at fair value. At the date of acquisition DRC did not have any material tangible assets and a determination was therefore required as to the nature of the intangible assets required. The acquisition of DRC allowed Elan to fully reacquire all rights associated with its IPDAS and ETDAS technologies. However, as a matter of prudence the acquired intangible assets representing in- process research and development has been charged to income on the date of acquisition in accordance with SFAS No. 2: Accounting for Research and Development Costs. Elan believes this practice to be consistent with industry practice in this area.
 2. Capital Contribution to ATS
 Prior to the consummation of the rights offering, Elan contributed $35 million in cash to Advanced Therapeutic Systems, Limited. In the absence of specific accounting guidance as to the treatment of such cash contribution it has been determined to include this amount as a component of the one-time charge for the quarter.
 ELAN CORPORATION, PLC
 Consolidated Statement of Income
 Three Months Ended Sept. 30
 1992 1993 1993
 Irish pounds 000s US$000s
 (Unaudited) (Unaudited) (Unaudited)
 Revenue 21,878 25,405 36,354
 Costs & Expenses
 Cost of goods sold 9,291 9,523 13,627
 Selling, general &
 administrative 5,891 6,001 8,587
 Research & Development 2,981 4,016 5,747
 Total Operating
 Expenses 18,163 19,540 27,961
 Operating income 3,715 5,865 8,393
 Interest and
 other income 662 4,382 6,270
 Interest expense (41) (1,355) (1,938)
 Minority interest 21 (248) (355)
 Net income before tax &
 one time charge 4,357 8,644 12,370
 Taxation (351) (580) (830)
 Net income (loss) after
 tax & before one
 time charge 4,006 8,064 11,540
 One Time Charge (B) --- (85,131) (121,822)
 Net income (loss) after
 tax & one time charge 4,006 (77,067) (110,282)
 Earnings per ordinary
 share before one time
 charge IR0.13 IR0.23 US$0.33
 Earnings (loss) per
 ordinary share after
 one time charge IR0.13 (IR2.20) (US$3.15)
 Weighted average number
 of ordinary shares
 outstanding
 (in thousands) 31,835 35,051 35,051
 Six Months Ended Sept. 30
 1992 1993 1993
 Irish pounds 000s US$000(A)
 (Unaudited) (Unaudited) (Unaudited)
 Revenue 41,587 50,686 72,531
 Costs & Expenses
 Cost of goods sold 17,241 19,647 28,114
 Selling, general &
 administrative 11,307 11,906 17,037
 Research & Development 5,502 7,142 10,220
 Total Operating
 Expenses 34,050 38,695 55,371
 Operating income 7,537 11,991 17,160
 Interest and
 other income 1,487 7,289 10,430
 Interest expense (47) (2,795) (3,999)
 Minority interest 1 (228) (327)
 Net income before tax &
 one time charge 8,978 16,257 23,264
 Taxation (698) (977) (1,398)
 Net income after tax
 and before one
 time charge 8,280 15,280 21,866
 One Time Charge (B) --- (85,131) (121,822)
 Net income (loss) after
 tax & one time charge 8,280 (69,851) (99,956)
 Earnings per ordinary
 share before one time
 charge IR0.26 IR0.45 US$0.65
 Earnings (loss) per
 ordinary share after
 one time charge IR0.26 (IR2.06) (US$2.95)
 Weighted average number
 of ordinary shares
 outstanding
 (in thousands) 31,835 33,875 33,875
 (A) Translated for convenience at the noon buying rate in New York City on September 30, 1993 of US$1.4310 equals 1.00 Irish pounds.
 (B) The one time charge comprises the purchase cost of Drug Research Corporation representing the acquisition of in process research and development in the amount of 59,329 Irish pounds (US$84,900) and the Elan contribution to ATS pursuant to a rights offering to shareholders concluded in August 1993 of 25,802 Irish pounds (US$36,922). US dollar amounts have been translated at the September 30 convenience rate.
 ELAN CORPORATION, PLC
 Consolidated Balance Sheet
 As At March 31 Sept. 30 Sept. 30
 1993 1993 1993(A)
 Irish pounds 000s US$000
 (Unaudited) (Unaudited)
 Assets
 Current assets
 Cash & cash
 equivalents 90,182 36,929 52,845
 Shortterm investments 69,298 108,437 155,173
 Accounts Receivable 14,383 15,489 22,165
 Inventories 9,999 10,609 15,181
 Prepayments &
 other Assets(B) 2,721 10,355 14,818
 Total Current Assets 186,583 181,819 260,182
 Fixed Assets
 Property, plant &
 equipment (net) 34,590 41,631 59,574
 Other Assets
 Investments 974 2,413 3,453
 Intangible assets (net) 34,362 38,860 55,609
 35,336 41,273 59,062
 Total Assets 256,509 264,723 378,818
 Liabilities &
 Shareholders' Equity
 Current liabilities
 Accounts payable 10,241 13,354 19,110
 Accrued expenses &
 other liabilities 10,020 8,437 12,073
 Long-term debt
 current portion 13 4 6
 Total Current
 Liabilities 20,274 21,795 31,189
 Government Grants 2,807 2,660 3,806
 Long Term Debt 95,625 103,243 147,741
 Minority Interests (76) 806 1,153
 98,356 106,709 152,700
 Shareholders' Equity
 Share Capital 1,155 1,260 1,803
 Additional paid-in
 capital 93,152 159,945 228,881
 Translation Adjustment 62 1,356 1,940
 Retained Earnings 43,510 (26,342) (37,695)
 137,879 136,219 194,929
 Total Liabilities &
 Shareholders' Equity 256,509 264,723 378,818
 (A) Translated for convenience at the noon buying rate in New York City on September 30, 1993 US$1.431 equals 1.00 Irish pounds.
 (B) Prepayments and other assets include a warrant subscription receivable of 6,987 Irish pounds (US$9,998) pursuant to the ATS rights offering to Elan shareholders.
 -0- 11/8/93
 /CONTACT: Thomas G. Lynch, executive vice president & CFO, 011-353-902-94666, or Brian Crotty, vice president - communications, 1-800-252-3526, both of Elan Corporation plc/
 (ELN)


CO: Elan Corporation plc ST: IN: MTC SU: ERN

GK-JG -- NYON2 -- 1551 11/08/93 07:51 EST
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