Monday July 28, 4:00 am ET
Quarter Highlighted by Record Revenues and Operating Results
Improvement
HAYWARD, Calif.--(BUSINESS WIRE)--July 28, 2003--IMPAX Laboratories, Inc. (Nasdaq:IPXL
- News) today reported financial results for the three months and six months
ended June 30, 2003.
Revenues for the second quarter of 2003 were $14,067,000, up more than 173%
compared with revenues of $5,145,000 in the prior year's second quarter, and
up more than 23% over total revenues of $11,425,000 in the first quarter of
2003. The significant year-over-year increases came primarily on over-the-counter
(OTC) Loratadine and Pseudoephedrine Sulfate Extended Release 12-hour Tablets
shipped to Schering-Plough and Wyeth during the second quarter of 2003; sales
of Minocycline Hydrochloride Capsules launched in the third quarter of 2002;
higher sales of Fludrocortisone Acetate Tablets, introduced at the end of the
first quarter of 2002; higher Lipram sales; revenue from our strategic OTC agreements;
and lower product returns.
The net loss for the 2003 second quarter was $2,284,000, or $(0.05) per share,
compared with a net loss of $5,938,000, or $(0.13) per share, in the prior-year
second quarter. The net loss narrowed due to increased sales and improved plant
capacity utilization.
For the six months ended June 30, 2003, the Company reported revenues of $25,492,000
compared with $8,577,000 in the comparable period of the previous year. The
net loss for the first half of 2003 was $5,497,000, or $(0.11) per share. This
compares with a net loss of $11,359,000, or $(0.24) per share, for the first
half of 2002.
Unrestricted cash, cash equivalents and short-term investments were $26.8 million
at June 30, 2003, compared to $10.2 million at December 31, 2002. The increase
in the cash balance was primarily due to the May 2003 $25 million private placement.
"The second quarter's results reflect the momentum we have been building
in developing our products, moving them through the regulatory and legal pathways
and then bringing them to market," said Barry R. Edwards, Co-Chief Executive
Officer of IMPAX. "We are comfortable that we will be able to maintain
this momentum going forward," Mr. Edwards continued.
IMPAX has 20 applications pending at the FDA, including three tentatively approved
that address approximately $6.2 billion in U.S. branded product sales for the
twelve months ended April 30, 2003. Fifteen of these filings were made under
Paragraph IV of the Hatch-Waxman Amendments.
IMPAX Laboratories, Inc. is a technology-based specialty pharmaceutical company
applying its formulation expertise and drug delivery technology to the development
of controlled-release and specialty generics in addition to the development
of branded products. IMPAX markets its generic products through its Global Pharmaceuticals
division and intends to market its branded products through the IMPAX Pharmaceuticals
division. Additionally, where strategically appropriate, IMPAX has developed
marketing partnerships to fully leverage its technology platform. IMPAX Laboratories
is headquartered in Hayward, and has a full range of capabilities in its Hayward
and Philadelphia facilities. For more information, please visit the Company's
Web site at: www.impaxlabs.com.
As previously announced, the Company has scheduled a conference call to discuss
this announcement beginning at 8:30 a.m. Eastern Time today. To participate
in the call, a few minutes prior to the start time, please dial 888-803-7396
in the U.S. or 706-634-1052 for international callers. Those unable to participate
are invited to listen to a recording of the call and Question and Answer session
from 9:30 a.m. Eastern Time, July 28, 2003 through 11:59 p.m. Eastern Time,
July 30, 2003, by dialing 800-642-1687 in the U.S. or 706-645-9291 for international
callers, and entering reservation code 1824737. Alternatively, individuals may
listen to the call by visiting the investor relations section of the Company's
Web site at www.impaxlabs.com. To listen to the live call, please go to the
Web site 15 minutes prior to its start to register, download, and install the
necessary audio software. A recording of the call will be available for 14 days
on the site beginning on July 28, 2003.
IMPAX LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(dollars in thousands, except share and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
Net sales $ 13,460 $ 5,145 $ 24,526 $ 8,577
Other revenues 607 0 966 0
Total revenues 14,067 5,145 25,492 8,577
Cost of sales 9,321 3,982 17,468 7,121
Gross margin 4,746 1,163 8,024 1,456
Research and
development 4,347 4,476 8,102 7,366
Less: Teva
payments (22) (138) (154) (304)
Research and
development, net 4,325 4,338 7,948 7,062
Selling expenses 438 646 1,006 1,304
General and
administrative
expenses 2,083 1,939 4,205 4,109
Other operating
income (expense),
net 10 21 21 (9)
Net loss from
operations (2,090) (5,739) (5,114) (11,028)
Interest income 70 167 112 402
Interest expense (264) (366) (495) (733)
Net loss $ (2,284) $ (5,938) $ (5,497) $ (11,359)
Net loss per share
(basic and
diluted) $ (0.05) $ (0.13) $ (0.11) $ (0.24)
Weighted average
common shares
outstanding 50,608,445 47,306,741 49,250,049 47,061,223
IMPAX LABORATORIES, INC.
CONDENSED BALANCE SHEET
(in thousands)
June 30, December 31,
2003 2002
(unaudited) (unaudited)
ASSETS
Cash, cash equivalents and short-term
investments $ 26,793 $ 10,219
Restricted cash (a) 10,000 10,000
Accounts receivable, net 8,584 6,524
Inventory 15,042 10,478
Property, plant and equipment, net 36,600 37,065
Goodwill and intangibles, net 28,145 28,337
Other assets 1,907 1,780
Total assets $127,071 $104,403
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 25,843 $ 23,248
Long-term debt, net of current portion 9,394 9,105
Refundable deposit (b) 22,000 22,000
Deferred revenues and other liabilities 2,737 1,486
Mandatory redeemable convertible preferred
stock 7,500 7,500
Stockholders' equity 59,597 41,064
Total liabilities and stockholders' equity $127,071 $104,403
(a) Represents cash held as collateral for the $25 million revolving
credit facility and term loan with Congress Financial.
(b) As of the date of this press release, we expect to pay the
refundable deposit to Teva in IMPAX common stock.