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SYNTEX FOURTH QUARTER EPS INCREASE 46 PERCENT TO 60 CENTS

 PALO ALTO, Calif., Aug. 26 /PRNewswire/ -- Syntex Corp. (NYSE: SYN) today reported that earnings per share for the fiscal 1993 fourth quarter, which ended July 31, 1993, increased 46 percent to 60 cents, compared with 41 cents in the year-earlier period. Sales increased 6 percent to $541.0 million in the fiscal 1993 fourth quarter, compared with sales of $511.2 million in the year-ago quarter.
 FOURTH QUARTER RESULTS
 Quarters Ended July 31
 ($ in millions, except per share data)
 Percent
 4QFY93 4QFY92 Change
 Net Sales $541.0 $511.2 6
 Operating Income $150.3 $102.7 46
 Net Income $133.4 $92.5 44
 Earnings Per Share $0.60 $0.41 46
 "The strong results in the fourth quarter of fiscal 1993 compared with the fourth quarter of fiscal 1992 were primarily due to increased sales of Toradol(R) (ketorolac tromethamine), Naprosyn(R) (naproxen) and Anaprox(R) (naproxen sodium) in the United States and to reduced expenses resulting from our cost-cutting initiatives," said Paul E. Freiman, chairman and chief executive officer of Syntex Corp.
 Although net sales decreased from the third quarter to the fourth quarter of fiscal 1993, for the full 1993 fiscal year Syntex reported record sales. However, net income and earnings per share decreased primarily due to fiscal 1993 restructuring charges of $320 million -- $180 million reported in the first quarter and $140 million reported in the third quarter.
 FISCAL YEAR RESULTS
 Years ended July 31
 ($ in millions, except per share data)
 Percent
 FY1993 FY1992 Change
 Net Sales $2,123.0 $2,057.5 3
 Operating Income Excluding
 Restructuring Charge $518.3 $518.5 ---
 Restructuring Charge $320.0 --- ---
 Operating Income Including
 Restructuring Charge $198.3 $518.5 (62)
 Net Income $287.2(A) $472.3 (39)
 Earnings Per Share $1.29(A) $2.10 (39)
 (A)Restructuring charges resulted in a reduction of $249.0 million in net income and $1.12 in earnings per share in fiscal 1993.
 "We made bold moves in fiscal 1993 to position Syntex to be more competitive as we deal with the changing healthcare environment and the expiration in December 1993 of the U.S. patents for Naprosyn and Anaprox," Freiman said. "We made tough decisions to reduce our workforce, to reduce selling, general and administrative expenses and to consolidate our manufacturing facilities worldwide by closing three plants. We are already realizing the benefit of some of these actions; however, the full impact will not be realized until fiscal 1996, when we expect to save approximately $180 million in annual operating expenses.
 "In addition to the actions previously announced, our restructuring program includes plans to consolidate the management of chemicals and pharmaceuticals manufacturing, to close discovery research in Canada and France, and to downsize development research in Japan," Freiman said. "We have also reduced the size of our workforce to approximately 10,300 people worldwide at the end of fiscal 1993, down 12 percent from 11,700 employees at the end of fiscal 1992. We expect to reduce our total workforce to approximately 9,500 people by the end of fiscal 1995."
 The costs associated with these decisions are included in the previously-announced restructuring charges.
 WORLDWIDE HUMAN PHARMACEUTICAL SALES
 ($ in millions)
 Three Months Fiscal Year
 Ended July 31 Pct. Ended July 31 Pct.
 FY1993 FY1992 Change FY1993 FY1992 Change
 U.S. sales $338.4 $295.3 15 $1,285.5 $1,244.5 3
 Non-U.S. sales 136.1 146.4 (7) 552.5 529.5 4
 Total $474.5 $441.7 7 $1,838.0 $1,774.0 4
 Rebates to state Medicaid agencies reduced United States human pharmaceutical sales by $43.0 million in fiscal 1993 and $31.5 million in fiscal 1992.
 Non-United States human pharmaceutical sales were $13.2 million lower in the fourth quarter of fiscal 1993 and $20.5 million lower in the full fiscal year 1993 than they would have been had currency exchange rates that were in effect in the fiscal 1992 fourth quarter and the full 1992 fiscal year, respectively, remained constant. This adverse impact on sales was essentially offset by the effect of currency exchange-rate changes on non-United States operating expenses, resulting in no material impact on earnings per share.
 Corporate selling, general and administrative (SG&A) expenses of $180.4 million in the fiscal 1993 fourth quarter were 9 percent lower than SG&A expenses in the year-ago fourth quarter primarily due to cost- reduction measures initiated in fiscal 1993. SG&A spending in fiscal 1993 decreased 1 percent to $761.0 million, compared with $770.8 million in fiscal 1992.
 Spending for research and development in the fourth quarter of fiscal 1993 was $103.8 million, a 1-percent increase over the fiscal 1992 fourth quarter. Fiscal 1993 research and development spending was $404.4 million, an 8-percent increase over fiscal 1992 spending. The company expects fiscal 1994 research and development spending to be comparable to fiscal 1993 spending.
 "Our highest priority is to discover and develop innovative, cost- effective prescription medicines," Freiman said. "We recently re- prioritized the compounds in our development pipeline to provide more support for those with the highest potential."
 Freiman cited five high priority compounds that are in advanced development. Those compounds include mycophenolate mofetil, under study for the prevention and treatment of kidney transplant rejection; an oral formulation of ganciclovir, under study for the treatment of cytomegalovirus (CMV) retinitis after initial treatment with intravenous ganciclovir and the prevention of CMV disease in persons with AIDS; ranolazine, under study for the treatment of angina, with possible special utility in patients for whom other therapies are not effective, and for the treatment of the severe lower leg pain experienced when walking by patients with peripherial arterial disease; RS 15385, under study for the treatment of male sexual dysfunction; and RS 25259, under study for the prevention of nausea and vomiting in cancer chemotherapy patients and post-operative patients. Freiman said that the company expects to submit New Drug Applications in calendar 1994 to the U.S. Food and Drug Administration for approval to market mycophenolate mofetil and oral ganciclovir.
 Other expenses in the fiscal 1993 fourth quarter included $8.4 million for writedowns and losses associated with certain investments.
 The effective income tax rate for the fiscal 1993 fourth quarter was 4 percent compared with 13 percent for the fiscal 1992 fourth quarter.
 The fiscal 1993 provision for taxes on income is a benefit of $155.4 million resulting principally from the tax benefits of $71.0 million derived from the restructuring charges and a one-time benefit of $102.5 million from the reduction of certain tax reserves, as previously announced. Excluding the effect of these two tax benefits, the tax rate for fiscal 1993 was 4 percent compared with 13 percent in fiscal 1992.
 Consolidated statements of income and sales by business segment follow.
 SYNTEX CORP. AND SUBSIDIARY COMPANIES
 Consolidated Statements of Income
 (In millions, except per-share amounts)
 Fourth Quarter Pct. Year Ended July 31 Pct.
 FY1993 FY1992 Change FY1993 FY1992 Change
 Net sales $541.0 $511.2 6 $2,123.0 $2,057.5 3
 Costs and expenses:
 Cost of goods
 sold 106.5 107.3 (1) 439.3 393.8 12
 Selling, general &
 administrative 180.4 198.5 (9) 761.0 770.8 (1)
 Research &
 development 103.8 102.7 1 404.4 374.4 8
 Restructuring
 charge -- -- - 320.0 --- -
 Total 390.7 408.5 (4) 1,924.7 1,539.0 25
 Operating income 150.3 102.7 46 198.3 518.5 (62)
 Nonoperating income (expense):
 Interest income 8.5 12.5 (32) 39.3 52.8 (26)
 Interest expense (5.9) (6.3) (6) (26.5) (19.5) 36
 Other--net (14.0) (2.6)(100)+ (78.4) (8.9) (100)+
 Total (11.4) 3.6 (100)+ (65.6) 24.4 (100)+
 Income before taxes on
 income & cumulative effect
 of accounting
 changes 138.9 106.3 31 132.7 542.9 (76)
 Provision (benefit) for
 taxes on income 5.5 13.8 (60) (155.4) 70.6 (100)+
 Income before cumulative
 effect of accounting
 changes 133.4 92.5 44 288.1 472.3 (39)
 Cumulative effect of
 accounting changes,
 net of tax --- --- -- (0.9) --- ---
 Net income $133.4 $ 92.5 44 $ 287.2 $ 472.3 (39)
 Shares used in computing
 earnings per
 common share 220.9 225.7 -- 222.4 225.4 ---
 Earnings per
 common share $0.60 $0.41 46 $1.29 $2.10 (39)
 Sales by Location and Business Segment
 ($ in millions)
 Three Months Fiscal Year
 Ended July 31 Pct. Ended July 31 Pct.
 FY1993 FY1992 Change FY1993 FY1992 Change
 Location
 U.S. sales $384.0 $341.0 13 $1,480.5 $1,441.0 3
 Non-U.S. sales 157.0 170.2 (8) 642.5 616.5 4
 Total $541.0 $511.2 6 $2,123.0 $2,057.5 3
 Business Segment
 Pharmaceuticals:
 Pain/inflammation:
 Naproxen/naproxen sodium
 U.S. sales $177.5 $163.8 8 $ 680.8 $ 744.8 (9)
 Non-U.S. sales 58.4 62.5 (7) 246.7 241.2 2
 Total 235.9 226.3 4 927.5 986.0 (6)
 Ketorolac
 U.S. sales:
 Oral 35.7 20.9 71 131.0 41.7 100+
 Intramuscular 31.5 23.2 36 128.4 104.5 23
 Non-U.S. sales 14.2 16.0 (11) 63.0 48.5 30
 Total Ketorolac 81.4 60.1 35 322.4 194.7 66
 Subtotal 317.3 286.4 11 1,249.9 1,180.7 6
 Reproductive and
 endocrinology:
 Oral
 contraceptives 19.8 24.6 (20) 83.2 102.3 (19)
 Nafarelin 4.2 5.5 (24) 22.1 26.3 (16)
 Other 2.7 2.8 (4) 11.4 12.3 (7)
 Subtotal 26.7 32.9 (19) 116.7 140.9 (17)
 Cardio and cerebrovascular:
 Nicardipine 22.0 26.3 (16) 77.9 91.5 (15)
 Ticlopidine 14.7 6.1 100+ 45.3 14.2 100+
 Subtotal 36.7 32.4 13 123.2 105.7 17
 Dermatological 20.8 26.0 (20) 87.4 106.2 (18)
 Ganciclovir 23.5 18.6 26 85.5 67.9 26
 Other human
 pharmaceuticals 49.5 45.4 9 175.3 172.6 2
 Animal health 14.1 13.1 8 73.1 71.6 2
 Total Pharma-
 ceuticals 488.6 454.8 7 1,911.1 1,845.6 4
 Diagnostics 52.4 56.4 (7) 211.9 211.9 --
 Total $541.0 $511.2 6 $2,123.0 $2,057.5 3
 Sales data for fiscal 1992 have been restated to reflect a reclassification of cash discounts as a reduction of net sales rather than as selling, general and administrative expense, as previously recorded. All current and future periods will report sales net of cash discounts.
 -0- 8/26/93
 /CONTACT: Nancy Peterson, 415-855-5567, Kathleen Gary, 415-855-5924, or Linda Thomas, 415-852-1321, all of Syntex/
 (SYN)


CO: Syntex Corp. ST: California IN: MTC SU: ERN

SG -- SJ003 -- 6081 08/26/93 11:02 EDT
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Date:Aug 26, 1993
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