Anyone else in this one? Recently listed on AMEX, strongly growing, very reasonable PE and undiscovered (doesn't even have a profile or message board at Yahoo). It seems to be too good to be true - are there any hidden problems?
biz.yahoo.com
Friday April 19, 9:47 am Eastern Time
Press Release
SOURCE: Lannett Company, Inc.
Lannett Company Reports Third Quarter Results
Sales Reach $8.6 Million for the Quarter, $18 Million for the Nine Months Ended March 31st, 2002
PHILADELPHIA, April 19 /PRNewswire-FirstCall/ -- Lannett Company, Inc. (Amex: LCI - news), a pharmaceutical manufacturer, is pleased to announce its results of operations for the quarter and nine months ended March 31, 2002. The results of operations include substantial increases in sales (227% increase for the quarter ended March 31, 2002 compared to the same period of the prior fiscal year; and 170% increase for the nine months ended March 31, 2002 compared to the same period of the prior fiscal year), operating profit, and net income, compared to similar periods of the prior fiscal year.
The unaudited Statement of Income is summarized as follows:
For the three months ended For the nine months ended
(In thousands, except for Income per Share) 3/31/02 3/31/01 3/31/02 3/31/01
Net Sales $8,638 $2,640 $18,102 $6,690
Cost of Sales 2,076 1,426 5,859 4,468
Gross Profit 6,562 1,214 12,243 2,222
Research & Development
expenses 551 314 1,266 1,036
Selling, General &
Admin. Expenses 1,037 449 2,471 1,265
Operating Profit/(Loss) 4,974 451 8,506 (79)
Other Income/(Expense) (68) (184) (262) 650
Income Before
Income Taxes 4,906 267 8,244 571
Income Tax Expense 1,862 91 3,031 227
Net Income 3,044 176 5,213 344
Diluted Weighted
Average # of shares 13,321 13,206 13,306 13,206
Diluted Income
per Share $0.23 $0.01 $0.39 $0.03
The sales and income results summarized above are the highest in the Company's sixty-year history. The Company's Price/Earnings Ratio for the trailing twelve months was 12.8, based on the closing transaction per share price of $6.12 on Thursday, April 18th. Lannett attributes the increase in profitability to sales of newly marketed products and expanded sales of its current products. Due to favorable market conditions, and successful promotional tactics, Lannett was able to substantially increase its market share for certain prescription products. Its niche product line allowed Lannett to increase its sales volume without significant price and profit erosion that frequently occurs when multiple generic manufacturers compete. Lannett expects sales for its current prescription products to continue at a rate consistent with average sales over the past nine months. In addition to current product sales, Lannett believes that its future sales will continue to be enhanced by new product offerings. However, the achievement of these sales expectations is subject to uncertainty. |
