Monday November 10, 8:30 am Eastern Time
Company Press Release
SOURCE: Embrex Inc.
Embrex Inc.'s Third-Quarter Net Income More Than Doubles On Strong Revenue Growth
Highlights * Record third-quarter net income of $540,000 versus $203,000 for same quarter in 1996, a 166% increase * Record
third-quarter revenues of $6.5 million up 16% over third- quarter 1996 * Third-quarter 1997 EPS rises 100% to $0.06 from
$0.03 in comparable 1996 quarter * Nine months' net income of $1.2 million nearly four times full-year 1996 net income of
$341,000
Financial Summary Table Condensed Statements of Operations (Unaudited) (Dollars in thousands except per share)
Three Months Nine Months Ended September 30 Ended September 30 1997 1996 1997 1996
Total revenues $ 6,531 $ 5,641 $ 18,377 $ 15,304 Cost of revenues* 3,194 2,943 8,927 8,093 Gross profit 3,337 2,698 9,450
7,211
Operating expenses* and taxes 2,797 2,495 8,232 6,757 Net income $ 540 $ 203 $ 1,218 $ 454
Earnings per share $ 0.06 $ 0.03 $ 0.15 $ 0.06
Weighted average shares of 8,369 7,442 8,327 7,266 common stock and equivalents
* Refer to footnote on Statements of Operations
RESEARCH TRIANGLE PARK, N.C., Nov. 10 /PRNewswire/ -- Embrex, Inc. (Nasdaq: EMBX - news) today announced revenue for the quarter ended September 30, 1997 of $6.5
million compared with $5.6 million for the quarter ended September 30, 1996, reflecting a 16 percent increase as the company continued to build on its growth and presence in domestic
and international markets. Net income for the quarter more than doubled, rising to $540,000, or $0.06 per share, compared with $203,000, or $0.03 per share, in the same period last
year.
The number of weighted average shares of common stock and common stock equivalents increased to 8.369 million at the end of the quarter, versus 7.442 million shares at the end of
the third quarter 1996.
Gross profit for the quarter increased 24 percent to $3.3 million compared with $2.7 million reported for the same quarter in 1996. Gross margin also improved, to 51 percent in the
1997 period from 48 percent during the comparable 1996 period. Operating expenses and taxes for the quarter were $302,000 higher than the same period in 1996, primarily reflecting
stepped-up activity attributable to general corporate expense associated with higher sales, legal fees pertaining to patent infringement matters, and product research, development and
manufacturing services expenditures.
For the nine months ended September 30, 1997, revenues were $18.4 million compared with $15.3 million during the same period of 1996, a 20 percent increase. Net income for
nine-months year-to-date 1997 rose 168 percent to $1.2 million, or $0.15 per share, from $454,000, or $0.06 per share, for nine- months year-to-date 1996. Net income for
nine-months year-to-date 1997 was nearly four times Embrex's full-year earnings for 1996 of $341,000.
''Embrex's financial position continues to be healthy due to a broadening acceptance of our technology domestically and internationally,'' said Randall L. Marcuson, president and chief
executive officer. ''We believe the company will be able to continue to use its existing cash in conjunction with cash flow generated by operations to fund capital needs, further
international expansion and continue research and development work to expand our range of VNF(R)-based poultry disease vaccines.
''For the remainder of 1997, we will continue to expand our operations internationally while focusing on enhancing the operating efficiencies of our installed base of INOVOJECT(R)
systems,'' said Marcuson. ''As announced in June, we will also work closely with Cyanamid Websters and Fort Dodge Animal Health to respond to United Kingdom regulatory
authority requests with respect to Bursamune(TM), Fort Dodge's IBD vaccine combined with Embrex's VNF(R). In addition, we will continue to work with Fort Dodge to obtain
regulatory approvals for Bursamune(TM) in other key European and Middle Eastern markets.''
Embrex, Inc. has developed and commercialized the INOVOJECT(R) system, a proprietary, automated, in-the-egg injection system which eliminates the need for manual vaccination of
newly hatched broiler chicks. In addition to Bursaplex(TM), the company's VNF(R)-based vaccine for inoculating against infectious bursal disease (IBD), Embrex is also developing
patented pharmaceutical and biological products to improve bird health, reduce bird production costs and provide other economic benefits to the poultry industry.
This release contains forward-looking statements, including statements with respect to future products, services and markets. These statements involve risks and uncertainties that could
cause actual results to differ materially, including without limitation the ability of the Company to penetrate new markets, successfully conclude its patent litigation, complete commercial
development of potential future products or obtain regulatory approval of its products, which approval is dependent upon a number of factors, such as results of trials, the discretion of
regulatory officials, and potential changes in regulations. Additional information on these risks and other factors which could affect the Company's financial results are included in the
Company's Form 10-K and 10-K/A filed with the Securities and Exchange Commission and other filings with the SEC.
Embrex, Inc.
Condensed Statements of Operations (Unaudited)
(Dollars in thousands except per share amounts)
Nine Months Ended
September 30,
1997 1996
Total revenues $ 18,377 $ 15,304
Cost of revenues* 8,927 8,093
Gross profit 9,450 7,211
Operating expenses*
General & administrative 4,153 2,703
Sales & marketing 458 217
Research & development 2,955 2,682
Operating profit 1,884 1,609
Other expense 502 991
Income before taxes 1,382 618
Income taxes 164 164
Net income $1,218 $ 454
Earnings per share $ 0.15 $0.06
Weighted average shares of common stock and
equivalents 8,327 7,266
EBITDA $ 5,182 $ 4,700
* Certain 1996 operating expenses were reclassified to cost of revenues to conform to the presentation format adopted in the fourth quarter of 1996. These reclassifications had no effect
on previously reported financial results.
Condensed Balance Sheet
(Dollars in thousands)
September 30 December 31
1997 1996
(Unaudited)
ASSETS
Current assets $ 13,988 $ 13,983
INOVOJECT(R) systems 10,003 10,224
Equipment, furniture & fixtures 1,067 912
Other assets 414 435
TOTALS $ 25,472 $ 25,554
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 6,276 $ 6,431
Long-term debt &
lease obligations 3,774 5,814
Shareholders' equity 15,422 13,309
TOTALS $25,472 $25,554
SOURCE: Embrex Inc. |
