BPRX,
DJ Bradley Pharma Statement-2: Sales Efforts Increased In 4Q
By Dinah Wisenberg Brin
Of DOW JONES NEWSWIRES
PHILADELPHIA (Dow Jones)--Bradley Pharmaceuticals Inc. (BPRX) said Friday that a sharp drop in its stock price following a fourth-quarter earnings conference call doesn't reflect the company's current business growth and profit potential.
In a printed statement given to Dow Jones Newswires shortly before the market closed, the Fairfield, N.J., drug maker said that following the conference call Thursday morning, "the company spoke with several people who stated some disappointment with the fourth quarter 2001 results, where sales increased 11%, while profits were down by about 11%" compared with the same period last year.
The lower fourth-quarter profit "reflects the company's desire to enhance its marketing activities as it begins to introduce new products with greater sales efforts," the company said, noting that the sales force increased to 60 people from 40 during the last quarter of the year.
"Also, many felt the company statement regarding published estimates as being conservative and that it expected to exceed these numbers was not aggressive enough. The company has met, and exceeded, its guidance three times during 2001 and management will review its estimates for 2002, as appropriate, in a responsible and timely fashion," the statement said.
Bradley shares declined nearly 40% over Thursday and Friday.
"While the company believes that the Bradley stock price decline in the past few days is not reflective of the current business growth and profit potential, we will continue to monitor our expenses versus revenues to ensure the successful completion of stated guidance," the statement said.
Bradley on Wednesday reported fourth-quarter net income of $1.8 million, or 17 cents a share, including a $1 million deferred tax benefit and a $700,000 investment loss resulting from a bank failure. The company earned $2 million, or 26 cents a share, in the year-ago quarter. One analyst reporting to Thomson Financial/First Call had forecast earnings of 11 cents a share for the 2001 fourth quarter.
The company said it expects earnings of 55 cents to 58 cents a share in 2002, at least 33% higher than the 37 cents a share earned in 2001. An analyst had forecast the company will earn 55 cents a share this year. The stock closed slightly higher Wednesday after the earnings press release, then slid following the call the following day.
Shares of Bradley Pharmaceuticals closed Friday at $13.15, down $3.48, or 20.9%, on volume of 2.5 million, compared with average daily volume of 285,900 shares.
On Thursday, the stock lost 21%, or $4.47, to close at $16.63. The stock reached a 52-week high of $24 on Feb. 14 and a low of $1 on March 1, 2001.
-By Dinah Wisenberg Brin, Dow Jones Newswires; 215-656-8285; dinah.brin@dowjones.com
(END) DOW JONES NEWS 03-01-02
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