ZILA REPORTS RECORD REVENUE & INCOME IN 2ND QUARTER
PHOENIX, Mar 6, 2000 /PRNewswire via COMTEX/ -- Zila, Inc. (Nasdaq:
ZILA), international provider of healthcare products for dental/medical
professionals and consumers, announced record revenue of $20.2 million
in the second quarter of fiscal year 2000 (ended January 31, 2000), an
increase of 12 percent from $18.1 million in the second quarter of
fiscal 1999. For the first six months of fiscal 2000, revenues were
$39.4 million, up 14 percent from $34.6 million in the first six months
of fiscal 1999.
Operating income for the quarter was $485,000 or $0.01 per share. This
compares with a loss from operations of $1.1 million or a loss of $0.03
per share in the second quarter of fiscal 1999. In December 1999, Zila
completed the sale of its PracticeWorks division for $4.7 million. The
sale of assets added approximately $4.5 million or $0.11 per share to
second quarter income before tax. Total net income after tax for the
second quarter was $2.0 million or $0.05 per share.
Zila President Joseph Hines said, "Redeployment of the proceeds from
the PracticeWorks divestiture will allow the Company to move more
rapidly toward our goal of increasing shareholder value by focusing on
higher-margin consumable products with greater growth and profit
potential."
The Company's balance sheet at the end of the second quarter reflected
$8.6 million cash, $21.5 million working capital, and a current ratio
of 3.7:1. Shareholder equity rose to $59.5 million from $49.5 million
at July 31, 1999.
In the just-completed quarter, the Company absorbed $1.4 million in
continuing expenses associated with the OraTest(R) oral cancer
detection product. Hines noted, "Management is pleased with and
optimistic about the progress made by its consultant, ILEX(TM) Oncology
Services, Inc., in pursuit of approval from the U.S. Food & Drug
Administration. In the second quarter, all of the Company's operating
divisions performed better than prior year, with record growth in both
revenue and income. Management is enthusiastic about the prospects for
continued growth."
Zila, Inc., has three operating groups. The Pharmaceuticals Group
includes: Zila Pharmaceuticals, marketer of prescription and
non-prescription oral healthcare products; Zila Biomedical, developer
of OraTest(R) oral cancer detection products; and Zila Biotech,
producer of the only pharmaceutical- grade toluidine blue -- Zila(R)
Tolonium Chloride. The Professional Products Group includes Zila Dental
Supply, a national dental supplies distributor. The Nutraceuticals
Group includes Oxycal Laboratories and its Inter-Cal subsidiary,
manufacturer and supplier of value-added ingredients, including
patented Ester-C(R) branded products and botanicals such as
Palmettx(TM) saw palmetto extract, for the global nutritional industry.
Information is available at www.zila.com.
This document contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These forward-looking statements are
based largely on Zila's expectations or forecasts of future events, can
be affected by inaccurate assumptions and are subject to various
business risks and known and unknown uncertainties, a number of which
are beyond the Company's control. These include possible political,
economic or contractual complications involved in foreign business
dealings. Therefore, actual results could differ materially from the
forward-looking statements contained herein. A wide variety of factors
could cause or contribute to such differences and could adversely
impact revenues, profitability, cash flows and capital needs. There can
be no assurance that the forward-looking statements contained in this
document will, in fact, transpire or prove to be accurate. For a more
detailed description of these and other cautionary factors that may
affect Zila's future results, please refer to Zila's annual report on
Form 10-K for its fiscal year ended July 31, 1999, filed with the
Securities and Exchange Commission.
ZILA, INC.
INCOME STATEMENT DATA - (Unaudited)
(in thousands - except for per share data)
QUARTERS ENDED SIX MONTHS ENDED
JANUARY 31, JANUARY 31,
2000 1999 2000 1999
REVENUES $20,217 $18,122 $39,388 $34,624
GROSS PROFIT 9,950 9,497 19,645 18,141
INCOME (LOSS) FROM
OPERATIONS 485 (1,136) (211) (990)
OTHER INCOME (LOSS) 4,563 (11) 4,638 2
PRETAX INCOME (LOSS) 5,048 (1,147) 4,427 (988)
INCOME TAX (EXPENSE)
BENEFIT (3,084) -- (2,514) 596
NET INCOME (LOSS) $1,964 $(1,147) $1,913 $(392)
EPS - BASIC $0.05 $(0.03) $0.05 $(0.01)
EPS - DILUTED $0.05 $(0.03) $0.05 $(0.01)
BASIC SHARES
OUTSTANDING 41,961,935 37,655,846 41,636,741 36,142,529
BASIC AND DILUTED
SHARES
OUTSTANDING 42,343,965 37,655,846 42,025,649 36,142,529
BALANCE SHEET DATA - (Unaudited)
January 31, July 31,
2000 1999
CASH $8,593 $5,771
OTHER CURRENT ASSETS 20,904 24,980
PROPERTY - NET 5,639 5,680
INTANGIBLES - NET 31,823 34,932
OTHER 6,488 5,193
TOTAL ASSETS $73,447 $76,556
CURRENT LIABILITIES $8,039 $8,705
LONG TERM LIABILITIES 5,334 9,578
PREFERRED STOCK 610 8,787
EQUITY 59,464 49,486
TOTAL LIABILITIES
AND EQUITY $73,447 $76,556
CURRENT RATIO 3.7 TO 1 3.5 TO 1
SOURCE Zila, Inc.
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
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CONTACT: Joseph Hines of Zila, Inc., 602-266-6700
WEB PAGE: zila.com
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