QLT earns $11.5-million (U.S.) in Q1 2003
2003-04-24 08:31 ET - News Release
Ms. Therese Hayes reports
QLT ANNOUNCES Q1 RESULTS FOR 2003 AND UPDATES GUIDANCE
QLT today reported financial results for the first quarter ended March 31, 2003, and updated guidance for 2003. Unless specified otherwise, all amounts are in U.S. dollars and reported under U.S. GAAP.
First quarter 2003 sales
As previously announced, Visudyne sales were $82.1-million for the quarter ended March 31, 2003. Visudyne sales for the first quarter increased 20 per cent over sales in the first quarter of 2002. Sales in the United States accounted for approximately $42.1-million, representing 51 per cent of total Visudyne sales for the first quarter. The remaining $40-million relates to sales in the rest of the world, primarily Europe.
First quarter 2003 earnings per share (EPS)
GAAP EPS in the first quarter of 2003 was 17 cents, up 11 cents from the prior year's first quarter and compares with first call analysts' consensus estimate of 10 cents for the quarter. The increase was mainly due to the strong Visudyne sales performance, improved profit share from the Visudyne alliance and positive foreign exchange gains.
Two thousand three annual guidance
Based on recent sales results and current trends in Visudyne sales, QLT is narrowing its Visudyne sales range from $310-million to $335-million to a new range of $320-million to $335-million, which represents top-line growth of 11 per cent to 17 per cent over 2002. The company has also updated its EPS guidance for 2003 to 43 cents to 53 cents or growth over 2002 EPS, before special charges, of 37 per cent to 68 per cent. This update in EPS guidance (from previous guidance given in Canadian dollars/Canadian GAAP) reflects the narrowing of the sales range, as well as the benefit of foreign currency contracts currently in place.
"We are pleased with Visudyne's performance over the first quarter and based on this current trend and the strengthened euro, we have narrowed our Visudyne sales and EPS range," said president and chief executive officer, Paul Hastings. "Our focus continues to be to set realistic targets and meet them, to expand the Visudyne franchise, to demonstrate progress with our clinical development programs and to make every effort to ensure growth through 2003 and beyond."
Revenues
The company's revenues reached $33-million in the first quarter, growing by 37 per cent from the prior year. Revenues from Visudyne comprised $31.4-million of this total, up 40 per cent from the same period in 2002. QLT's share of Visudyne net profit (excluding the recovery of manufacturing and other costs) for the first quarter was 29.7 per cent of Visudyne sales. The alliance profit share rate in Q1 was in line with the company's guidance of 28 per cent to 30 per cent for the full year.
Research and development
Expenditures for research and development (R&D) of $10.9-million were 28 per cent higher for the three months ended March 31, 2003, than for the same period in 2002. The increase in spending for the first quarter of 2003 is largely attributable to expenses associated with the company's phase III trials with tariquidar in non-small-cell-lung cancer and with Visudyne in multiple basal cell carcinoma.
Selling, general and administrative
For the first quarter of 2003, selling, general and administrative (SG&A) expenditures were $3.0-million representing a decrease of $1.0-million or 25.7 per cent from the first quarter of 2002. Savings from the reduction in work force in late 2002 and lower legal expenses were the primary contributors to the decrease.
Cash
The company's cash reserves rose from $208-million at Dec. 31, 2002, to $232-million at March 31, 2003. Cash reserves are expected to exceed $260-million by the end of the year.
CONSOLIDATED STATEMENTS OF INCOME
(In accordance with U.S. GAAP
and in thousands of U.S. dollars)
Three months ended
March 31,
2003 2002
Revenues
Revenue from
Visudyne $ 31,445 $ 22,418
Contract
research and
development 1,526 1,724
--------- ---------
32,971 24,142
--------- ---------
Costs and
expenses
Cost of sales 5,412 4,991
Research and
development 10,875 8,480
Selling,
general and
administrative 3,033 4,080
Depreciation 726 705
--------- ---------
20,046 18,256
--------- ---------
Operating
income 12,925 5,886
Investment and
other income
Net foreign
exchange gains 2,533 60
Interest income 1,599 866
Equity loss
in NSQ - (23)
--------- ---------
4,132 903
--------- ---------
Income before
income taxes $ 17,057 $ 6,789
--------- ---------
Provision for
income taxes (5,518) (2,396)
========= =========
Net income $ 11,539 $ 4,393
--------- ---------
Net income
per common share
Basic $ 0.17 $ 0.06
Diluted $ 0.17 $ 0.06
QLT Inc. will hold an analyst and institutional investor conference call to discuss first quarter results on Thursday, April 24, at 8:30 a.m. EST (5:30 a.m. PST). The call will be broadcast live via the Internet at www.qltinc.com. A replay of the call will be available via the Internet and also via telephone at (416) 695-5800, access code 1407390.
WARNING: The company relies upon litigation protection for "forward-looking" statements. |
