Akorn, Inc. Reports Second Quarter Results; Discusses 1999 OutlookSales Up 15 Percent; Gross Profit Up 19 Percent
BUFFALO GROVE, Ill., July 20 /PRNewswire/ -- Akorn, Inc. (Nasdaq: AKRN)
today announced record results for the second quarter ended June 30, 1999.
For the second quarter ended June 30, 1999, Akorn reported sales of
$16,089,000, up 15% compared to sales of $13,987,000 reported for the second
quarter of 1998. Net income for the quarter was $1,675,000, up 52% compared
to $1,101,000 for the second quarter of 1998. This translates into diluted
earnings per share in 1999 of $0.09, compared to earnings per share of $0.06
in 1998, a 50% increase. Diluted number of shares outstanding were 18,617,000
in 1999 and 19,094,000 in 1998.
For the six months ended June 30, 1999, sales were $30,808,000, up 18%
compared to $26,038,000 reported for the six months of 1998. Net income for
the six-month period was $3,133,000, or $0.17 per diluted share, a 46%
increase compared to $2,149,000, or $0.11 per share in the 1998 six-month
period. There were 18,661,000 diluted shares outstanding in the 1999
six-month period compared with 18,837,000 shares outstanding for the 1998 six
months.
Commenting on these results, Floyd Benjamin, President and Chief Executive
Officer, said, "Our sales growth reflects strength in the base business of
diagnostics, antidotes and anesthesia as well as growth from products acquired
in 1998. Unfavorable manufacturing variances were eliminated in the second
quarter, and breakeven operations are expected from the Decatur operation for
the remainder of 1999."
Analysis of Results
For the 1999 second quarter compared to the 1998 second quarter, sales
increased 15%; gross profits increased 19%; gross profit margins increased to
52% from 50%; selling, general and administrative costs increased 38%;
operating income rose 40%; and net income rose 52%.
Research and development expenses decreased 49% over the second quarter of
1998 but increased 38% over the first quarter of 1999. 1998 R&D spending
included expenses for clinical trials associated with TP-1000, the company's
potential migraine product. Akorn has not been engaged in any clinical trials
during the first half of 1999. Management expects to resume piroxicam
clinical trials in the third quarter of 1999.
For the first six months of 1999 compared to the 1998 equivalent period,
sales increased 18%; gross profits increased 19%; gross profit margins
remained steady at 51%, selling, general and administrative costs increased
30%; operating income increased 35%; and net income increased 46%. Research
and development expenses decreased 44%, reflecting factors noted above.
Outlook
Floyd Benjamin, President and Chief Executive Officer, stated, "Upside
from previous 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
currently has 14 ANDAs awaiting approval at the FDA, and additional ANDAs and
NDAs under development."
Akorn, Inc. manufactures and markets sterile specialty pharmaceuticals,
and markets and distributes an extensive line of pharmaceuticals and
ophthalmic surgical supplies and related products.
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.
Akorn, Inc.
CONSOLIDATED STATEMENT OF EARNINGS
(In thousands, except per share amounts)
(unaudited)
Three months ended Six months ended
June 30, June 30,
1999 1998 1999 1998
Net sales:
Ophthalmic $8,028 $7,334 $15,737 $13,815
Injectable 8,061 6,653 15,071 12,223
Total sales 16,089 13,987 30,808 26,038
Cost of sales 7,766 6,966 15,049 12,775
Gross profit 8,323 7,021 15,759 13,263
Selling, general and
administrative 4,257 3,091 8,259 6,332
Amortization of
intangibles 480 584 1,182 1,088
Research and development 638 1,246 1,100 1,974
5,375 4,921 10,541 9,394
Operating income 2,948 2,100 5,218 3,869
Interest & other income
(expense), net (181) (301) (421) (490)
Pretax income 2,767 1,799 4,797 3,379
Income taxes 1,092 698 1,664 1,230
Net income $1,675 $1,101 $3,133 $2,149
Per share:
Net income-basic $0.09 $0.06 $0.17 $0.12
Net income-diluted $0.09 $0.06 $0.17 $0.11
Weighted average shares
Basic 18,168 17,850 18,156 17,769
Diluted 18,617 19,094 18,661 18,837
SOURCE Akorn, Inc.
CO: Akorn, Inc.
ST: Illinois
IN: MTC
SU: ERN ERP
07/20/99 08:41 EDT prnewswire.com |
