SCRI ($26-$27*New Yearly High) P/E 71 Revs up 25%
Thursday July 26, 8:04 am Eastern Time
Press Release
SOURCE: SICOR Inc.
SICOR Announces Strong Financial Results for the Second Quarter of 2001
- Total Revenue up 25% to $90.9 million - Second Quarter Gross Profit Margins at 48% - Diluted Earnings Per Share up 100% at $0.16 Per Share
IRVINE, Calif., July 26 /PRNewswire/ -- Driven by increased product revenue and expanded profit margins, SICOR Inc. (Nasdaq: SCRI - news) today reported strong quarterly operating results for the period ending June 30, 2001. Total revenue for the three months ended June 30, 2001 increased 25% to $90.9 million compared to $72.7 million for the three months ended June 30, 2000. The increase in revenue is attributable to increased production for external customers and continued penetration of products introduced in the last two years. Gross margins increased from 43% in the second quarter of 2000 to 48% in the second quarter of 2001, due to an improved product mix and increased absorption relating to higher manufacturing volumes.
Research and development expenses were $4.3 million for the second quarter of 2001 compared to $5.0 million in the comparable quarter of the prior year, which included a $1.3 million technology acquisition charge. Excluding the technology charge in 2000, research and development expenses in the second quarter of 2001 increased 16% over the same period in the prior year.
Selling, General and Administrative (SG&A) expenses during the second quarter of 2001 increased 25% to $14.7 million compared to $11.7 million in the same period a year earlier primarily due to increased legal fees associated with product patent challenges the Company is pursuing. In addition, a non-cash compensation charge of $0.7 million was recorded during the quarter, which relates to stock options issued in connection with a consulting agreement signed by the Company.
Net income applicable to common shares for the quarter ended June 30, 2001 was $16.8 million, or $0.16 per share on a diluted basis, compared to net income of $7.7 million, or $0.08 per share on a diluted basis in the comparable quarter ended June 30, 2000.
For the six months ended June 30, 2001, total revenue increased 24% to $175.1 million compared to $141.0 million for the six months ended June 30, 2000. Gross margins increased from 44% in the first six months of 2000 to 47% in the first six months of 2001.
Research and development expenses decreased slightly to $8.5 million for the first six months of 2001 compared $8.9 million in the same six months of the prior year, which included a technology acquisition charge of $1.3 million.
Selling, General and Administrative expenses during the first six months of 2001 increased 31% to $28.9 million compared to $22.1 million in the same period a year earlier. SG&A expenses for the first six months of 2001 include $1.5 million charge relating to the Company's estimate of costs associated with the defense of an ongoing governmental investigation and a $0.7 million a non-cash compensation charge in connection with a consulting agreement.
Net income applicable to common shares for the first half of 2001 was $28.7 million, or $0.27 diluted earnings per share compared to net income applicable to common shares of $11.3 million, or $0.12 diluted earnings per share. A special pre-tax charge in the amount of $3.5 million was recorded in the first six months of 2001 relating to the impairment of certain assets associated with the Company's Italian operations, and a non-cash compensation charge of $2.6 million was recorded in the first six months of 2000 relating to performance incentives to be paid to Mr. Donald Panoz, chairman of the board.
``The business strategy we embarked upon over three years ago and the hard work of our employees is clearly reflected in our strong earnings momentum,'' stated Carlo Salvi, president and chief executive officer. ``Our focus on quality products continues to earn us additional business. At the same time, we're building a culture that is keenly focused on cost improvement. As a result, our margins again show considerable expansion, our cash flow from operations remains superior, and the strength of our balance sheet continues to improve. All these factors are tied to the successful execution of our business plan, which has enabled SICOR to consistently produce solid financial results.
``While we are excited about our accomplishments and equally excited with our direction, we continue to explore opportunities to enhance shareholder value,'' continued Salvi. ``Our recently announced acquisition of a protein manufacturing operation is just one part of the worldwide strategy we believe will continue SICOR's growth into the future. We believe that our performance to date in 2001 has further affirmed our strategy and business plan and we look forward to sharing our successes with you in the quarters to come.''
Financial Guidance
SICOR Inc. reaffirms its previous earnings guidance provided on July 10, 2001 that diluted earnings per share for 2001 will be in the range of $0.57 to $0.60 per share, excluding one-time purchase accounting charges in connection with the acquisition of Biotechna announced on July 25, 2001. In addition, the Company is comfortable with the current range of analyst estimates for 2002.
As previously announced, the Company will hold a conference call on Thursday, July 26, 2001 at 11:00 a.m. (Eastern Time) to review the results of the second quarter of 2001 and discuss the outlook for the rest of the year. The public is invited to listen to this conference call by dialing 800-575-5790 at least 10 to 15 minutes prior to the start of the call. The investing public is invited to listen to the conference call over the internet by visiting our website at sicorinc.com. To listen to this call live on the Internet, visit the investor page of SICOR's Web site at least 20 minutes prior to the call's start time (to download and install any necessary audio software)
SICOR Inc. is a vertically integrated specialty pharmaceutical company with proven expertise in the development, manufacturing and marketing of multi-source injectable pharmaceuticals. With a strategy of combining both the production of active pharmaceutical ingredients utilizing chemical synthesis or fermentation and state of the art manufacturing facilities, SICOR's primary focus is on the worldwide injectable pharmaceutical market, which currently includes oncology, anesthesiology, cardiology and other therapeutic areas. SICOR operates several manufacturing facilities in Europe, Mexico and the U.S.A., while maintaining its corporate headquarters in Irvine, California.
This press release contains forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements, including whether the Company will continue to have strong financial performance; whether the Company will continue to have positive cash flow, whether financial results for 2001 will continue to improve, whether SICOR will be profitable in the future, and those matters set forth in the risk factors section of SICOR's filings on Forms 10-K and 10-Q with the Securities and Exchange Commission. These forward looking statements represent the Company's judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward looking statements.
For more information on the Company, visit SICOR's web site at www.sicorinc.com.
SICOR Inc.
PRESS RELEASE SUMMARY
Second Quarter ended June 30, 2001
($000's)
Balance Sheet Data: 06/30/01 12/31/00
(AUDITED)
Assets:
Cash and short-term investments $91,443 $62,702
Other current assets 126,203 124,962
Property and equipment, net 123,450 115,939
Other assets 19,227 20,565
Intangibles, net 96,860 101,432
Total assets $457,183 $425,600
Liabilities and Stockholders' Equity:
Current liabilities $113,626 $108,479
Other liabilities 24,238 27,850
Deferred taxes 15,022 15,813
Stockholders' equity 304,297 273,458
Total liabilities and equity $457,183 $425,600
Statement of Operations Data:
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
Product sales $90,894 $72,675 $175,137 $141,009
Costs and expenses:
Cost of sales 47,680 41,468 93,613 79,697
Research and development 4,259 5,012 8,466 8,916
Selling, general
& administrative 14,670 11,702 28,926 22,143
Non-cash compensation 729 -- 729 2,579
Total costs and expenses 67,338 58,182 131,734 113,335
Amortization of intangibles 1,440 1,482 2,884 2,980
Operating income 22,116 13,011 40,519 24,694
Interest and other
income (expense), net 38 (1,762) (401) (3,956)
Impairment of assets -- -- (3,462) --
Income before income taxes 22,154 11,249 36,656 20,738
Provision for income taxes (3,833) (2,080) (4,940) (3,641)
Income before cumulative
effect of change in
accounting principle 18,321 9,169 31,716 17,097
Cumulative effect of
change in accounting
principle, net of taxes -- -- -- (2,854)
Net income 18,321 9,169 31,716 14,243
Dividends on preferred stock (1,504) (1,504) (2,992) (2,992)
Net income applicable
to common shares $16,817 $7,665 $28,724 $11,251
Net Income per share:
Basic $0.17 $0.08 $0.29 $0.12
Diluted $0.16 $0.08 $0.27 $0.12
Weighted average number
of common shares:
Basic 100,475 94,338 100,286 92,127
Diluted 105,091 101,244 104,674 100,855
SOURCE: SICOR Inc. |
