Continuing my soliloquy:
Akorn, Inc. Reports First Quarter Results; Discusses 1999 Outlook
BUFFALO GROVE, Ill.--(BUSINESS WIRE)--April 20, 1999--
Income $0.08 Per Diluted Share; Sales Up 22 Percent;
Gross Profit Up 19 Percent
Akorn, Inc. (NASDAQ: AKRN) today announced results for the first
quarter ended March 31, 1999.
Net income for the quarter was $1.5 million or $0.08 per diluted
share, a 39 percent increase over $1.0 million or $0.06 per diluted
share reported for the comparable 1998 quarter. Sales for the quarter
totaled $14.7 million, a 22 percent increase over sales of $12.1
million reported for the quarter ended March 31, 1998.
The Company said current quarter profits were higher due to a
more profitable product mix, including acquired products, partially
offset by unabsorbed plant overhead expenses related to lower
manufacturing volumes.
Commenting on these results, Floyd Benjamin, President and Chief
Executive Officer, said, "Our consistent, strong sales growth reflects
the successful implementation of our niche product strategy.
Operationally, our objective is to further leverage existing
infrastructure through functional consolidations, creating additional
efficiencies. Unfavorable manufacturing variances in the first quarter
are partially a result of management's decision to quickly reduce the
amount of resources tied up in inventory."
Review of Results
Net sales for the quarter ended March 31, 1999 were $14.7
million, up 22 percent over last year's $12.1 million. Gross profit
increased 19 percent to $7.4 million from $6.2 million. Gross margins
declined to 51 percent from 52 percent in the comparable prior year
period, primarily as a result of unabsorbed plant overhead expenses
related to lower manufacturing volumes.
Outlook
Floyd Benjamin, President and Chief Executive Officer, stated,
"Upside from 1997 and 1998 acquisitions should ensure reaching the
Company's stated growth objectives of 20% top line and 25% bottom line
for 1999. We expect to sustain growth beyond that time frame through
continued acquisitions and through the introduction of internally
developed products. We will continue to invest in future growth by
expanding our research and development activities."
Akorn, Inc. manufactures and markets sterile specialty
pharmaceuticals, and markets and distributes an extensive line of
pharmaceuticals and ophthalmic surgical supplies and related products.
Akorn, Inc.
CONSOLIDATED STATEMENT OF EARNINGS
(In thousands, except per share amounts)
(unaudited)
Three months ended March 31,
1999 1998
Net sales:
Ophthalmic $ 7,709 $ 6,480
Injectable 7,010 5,571
--------- ---------
Total sales 14,719 12,051
Cost of sales 7,283 5,809
--------- ---------
Gross profit 7,436 6,242
Selling, general and
administrative 4,002 3,241
Amortization of intangibles 702 504
Research and development 462 728
---------- ----------
Operating income 2,270 1,769
Interest & other income
(expense), net (240) (189)
---------- ----------
Pretax income (loss) 2,030 1,580
Income taxes 572 532
---------- ----------
Net income (loss) $ 1,458 $ 1,048
======== ========
Per share:
Net income (loss)-basic $ 0.08 $ 0.06
========= =========
Net income (loss)-diluted $ 0.08 $ 0.06
========= =========
Weighted average shares
Basic 18,143 17,686
======= ======
Diluted 18,737 18,582
======= ======
The information contained in this news release, other than
historical information, consists of forward-looking statements that
involve risks and uncertainties that could cause actual results to
differ materially from those described in such statements. Such
statements regarding the timing of acquiring and developing new
products, of bringing them on line and of deriving revenues and
profits from them, as well as the effects of those revenues and
profits on the Company's margins and financial position, is uncertain
because many of the factors affecting the timing of those items are
beyond the company's control.
This release is available on the KCSA Worldwide Website at
www.kcsa.com
CONTACT:
AKORN, INC.
Rita McConville, Chief Financial Officer
(847) 279-6151
or
KCSA
Bob Giordano/Joseph A. Mansi
(212) 682-6300, ext. 289/205
KEYWORD: ILLINOIS
BW1173 APR 20,1999
6:14 PACIFIC
09:14 EASTERN |
