OSTEOTECH ANNOUNCES THIRD QUARTER AND NINE MONTH RESULTS
SHREWSBURY, N.J., Nov. 1 /PRNewswire/ -- Osteotech, Inc. (NASDAQ: OSTE), today announced net income of $159,300 or 2 cents pro forma earnings per share for the third quarter ended Sept. 30, 1991, compared to a net income of $82,700 (which included a $70,900 nonrecurring gain from sale of equipment) or 1 cent pro forma net income per share in the same quarter last year. Revenues for the third quarter of 1991 were $2,380,600 or approximately 22 percent higher than the $1,953,700 of revenues in the third quarter of 1990.
Net income for the nine months ended Sept. 30, 1991, was $550,700 or 7 cents pro forma earnings per share compared to a net loss of $203,900 (which included a $70,900 nonrecurring gain from sale of equipment) or 4 cents pro forma net loss per share in the same period last year. Revenues for the nine months were $6,964,700 or approximately 30 percent higher than the $5,377,800 of revenues for the same period last year.
Patrick McBrayer, president and chief executive officer, stated that the company had begun test marketing Grafton(TM) processed Allograft Bone Matrix to the oral and maxillofacial surgical specialties through distribution by its non-profit clients during the third quarter. Grafton is a proprietary demineralization process for cortical bone which yields a new form of allograft bone tissue which can be used to aid in the formation of new bone. Although this did not have a material impact on the quarter's revenues, McBrayer said that net income for the quarter and nine months ended Sept. 30, 1991, included costs of approximately $37,000 and $99,200, respectively, resulting from the test market launch of the Grafton technology. He also said that initial acceptance of the technology has been gratifying. He further indicated that, in anticipation of a full market launch of the Grafton technology including the orthopaedic and neurosurgical specialties, in the first quarter of 1992, the company would begin hiring and training 15 individuals as part of a national marketing and education force during the fourth quarter of 1991.
McBrayer also stated that the increases in revenues and net income for the quarter and nine months ended Sept. 30, 1991, were primarily attributable to the increase in both the number of donors processed by the company and the amount of tissue yielded from those donors for transplantation in each period. Additionally, net income in each of the periods was favorably impacted by the increase in interest income received on the loan to one of the company's major customers and as a result of the investment of the net proceeds from the company's initial public offering.
Osteotech, Inc., headquartered in Shrewsbury, is a leading processor of human bone and bone connective tissue for transplantation and an innovator in the development of tissue related biomaterials and pharmaceutical delivery systems for musculoskeletal surgery.
Summary Financial Information (Unaudited)
(In thousands, except per share data)
Periods ended Quarter Nine Months
Sept. 30 1991 1990 1991 1990
Revenues $2,381 $1,954 $6,965 $5,378
Costs & expenses:
Cost of sales 1,371 1,206 4,004 3,284
Selling, general & admin. 773 596 2,183 1,734
Research & development 382 237 962 706
Interest (inc.) exp., net (307) (96) (742) (73)
Other (income) expense -- (72) -- (69)
Total costs & expenses 2,219 1,871 6,407 5,582
Inc. (loss) bef. inc. taxes 162 83 558 (204)
Provision for income taxes
before benefit of net
oper. loss carryforward 68 -- 234 --
Benefit of util. of net
oper. loss carryforward (65) -- (227) --
Total 3 -- 7 --
Net income (loss) $ 159 $ 83(A) $ 551 $(204)(A)
Pro forma net inc. (loss)
per common share (B) $.02 $.01 $.07 $(.04)
Wtd. avg. shares used in
computing pro forma net
inc. (loss) per common
share (B) 7,894,764 6,820,166 7,695,109 5,758,793
(A) -- Includes a $70,900 non-recurring gain from the sale of equipment.
(B) -- During the third quarter of 1991, in connection with its initial public offering, the company issued 1,437,500 shares of common stock and converted 4,376,762 shares of convertible preferred stock to common stock on a one-for-one basis. These shares were included in shares used in computing pro forma net income (loss) per common share as though they were outstanding or converted in each of the respective periods.
/CONTACT: Michael J. Jeffries of Osteotech, 908-542-2800/
(OSTE) CO: Osteotech, Inc. ST: New Jersey IN: MTC SU: ERN GK-SH -- NY009 -- 0096 11/01/91 09:38 EST