Senetek PLC Announces First Quarter Gains in All Key Indicators and its Fourth Consecutive Quarter of Profitability and Positive Cash Flow
NAPA, Calif., May 10 /PRNewswire-FirstCall/ -- Senetek PLC (Nasdaq: SNTK - News), senetekplc.com , a biopharmaceutical company focused on developing and co-marketing products in the key skincare/dermatologicals and sexual dysfunction categories worldwide, today announced sharply higher first quarter revenues, operating and net income and current ratio, continuing its trend of profitability started in the second quarter of 2001.
Revenues for the quarter ended March 31, 2002 were $2.57 million compared to $1.76 million for the quarter ended March 31, 2001, an increase of 46%. All of the increase was attributable to Senetek's skincare/dermatologicals segment, reflecting the strength of this product category at retail. Of the increase, $[586,000 (or 72%)] was attributable to increased royalty and other licensing revenue as opposed to revenue from sales of product to licensees. The mix of royalty and other licensing revenue to total revenue increased to [59]% in the first quarter of 2002 compared to 52% in the first quarter of 2001.
Gross profit for the quarter ended March 31, 2002 was $2.17 million compared to gross profit of $1.33 million for the quarter ended March 31, 2001, an increase of 63%. Gross margin (i.e. gross profit divided by revenues) for the period increased to 84% in the first quarter of 2002 from 75% for the first quarter of 2001, reflecting the increased contribution to total revenue of Senetek's royalty and other licensing revenue, which has very low associated cost of sales.
Operating expenses for the quarter ended March 31, 2002 were $1.32 million compared to $1.40 million for the quarter ended March 31, 2001. The March 31, 2001 expenses include a $50,000 increase in developmental and regulatory spending in connection with the European marketing approval process for Senetek's Invicorp(TM) sexual dysfunction product, offset by reductions in general and administrative expense.
Operating income for the quarter ended March 31, 2002 was $848,000, compared to a operating loss of $(68,000) for the quarter ended March 31, 2001.
Net income for the quarter ended March 31, 2002 was $504,000 or $0.01 per fully diluted share compared to a net loss of $(593,000) or $(0.01) per fully diluted share for the quarter ended March 31, 2001.
Senetek's current ratio (i.e. current assets divided by current liabilities) was 2.98 at March 31, 2002, an improvement of 189% from its current ratio of 1.03 at March 31, 2001.
Commenting on the results for the quarter, Frank J. Massino, Chairman and CEO, said, "Our business model continues to demonstrate across the board improvements in revenues, profitability and key ratios. We expect to further leverage our strong skincare results in 2002 by working with existing licensees to broaden their product offerings and by entering into additional licensing agreements with market leaders in currently unlicensed territories and classes of trade. Our program to gain approval for Invicorp(TM) across the European Union countries is on track and we are working on a number of exciting developments that we hope to be in a position to announce soon."
Visit Senetek PLC's web site:
senetekplc.com.
Contact Information:
Investor Relations
707-226-3900 x102
E-Mail: Pknopick@eandecommunications.com
This press release and Web site contain certain forward-looking statements, including statements as to the Company's expectations concerning continued improvement in financial results, achieving broadened product offerings by Kinetin licensees, negotiating new licensing agreements, receiving product approval for Invicorp in key European markets, and achieving other significant business developments. Forward-looking statements by their nature involve substantial uncertainties and actual results may differ materially from those expressed in such statements. Important factors identified by the Company that it believes could result in such material differences are described in the Company's Annual Report on Form 10-K for the year 2001 and its Quarterly Report on Form 10-Q for the three months ended March 31, 2002, but the Company can give no assurance that it has identified all of the factors that may result in any particular forward-looking statement materially differing from actual results and assumes no obligation to correct or update any forward-looking statements which may prove to be inaccurate, whether as a result of new information, future events or otherwise.
SENETEK PLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data) (Unaudited)
Three Months Ended
March 31,
2002 2001
Revenues
Product sales $ 1,067 $842
Royalties & Licensing 1,507 921
Total Revenue 2,574 1,763
Cost of Sales - Products 243 275
- Royalties & Licensing 161 160
Total Cost of Sales 404 435
Gross Profit 2,170 1,328
Operating Expenses:
Research & Development 161 111
General & Administration 1,161 1,285
Total Operating Expenses 1,322 1,396
Income (loss) from Operations 848 (68)
Interest income 8 6
Interest expense (including amortization
of debt discount) (365) (534)
Other income/(expense) - net 22 3
Net Income (Loss) before taxation 513 (593)
Provision for income taxes 9 --
Net Income 504 (593)
Basic and Diluted Income(Loss) per Ordinary
share outstanding $0.01 $(0.01)
Weighted average Basic Ordinary shares
outstanding 59,052 58,432
Weighted average Diluted Ordinary shares
outstanding 59,213 58,432
SENETEK PLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (in thousands)
March 31, December 31,
2002 2001
(unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents $1,886 $1,814
Trade Receivables
(net of provisions of $107,000 at
March 31, 2002 and $127,000
at December 31, 2001) 2,271 1,892
Non-Trade Receivables
(net of provisions of $136,000 at
March 31, 2002 and December 31, 2001) 61 62
Inventory
(net of provisions of $72,000 at
March 31, 2002 and December 31, 2001) 311 312
Prepaids and Deposits 97 122
Total Current Assets 4,626 4,202
Property & Equipment, net 3,274 3,299
Goodwill - net 1,308 1,308
Total Assets $9,208 $8,809
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Current Liabilities
Accounts Payable 824 962
Accrued Liabilities 728 873
Convertible Short Term Debt -- 20
Total Current Liabilities 1,552 1,855
Long Term Liabilities
Notes Payable, net of discount of
$1,766,000 and $1,982,000 5,623 5,407
Deferred License Fees 2,858 2,937
Commitments and Contingencies
Stockholders' (Deficit)/Equity:
Ordinary shares $0.08 (5 pence) par value:
Authorized shares: 100,000,000
Issued and outstanding shares:
March 31, 2002 - 59,052,153
December 31, 2001 - 59,052,153 4,763 4,763
Share Premium 81,989 81,926
Accumulated Deficit (87,595) (88,099)
Equity Adjustment from Foreign Currency
Translation 18 20
Total Stockholders'(Deficit)/Equity $(825) $(1,390)
Total Liabilities and Stockholders'
(Deficit)/Equity $9,208 $8,809
SOURCE: Senetek PLC |
