2005 Product Revenues Increase 44 Percent; Income before Taxes Increases 83
Percent
BURLINGTON, Mass., Feb. 9 /PRNewswire-FirstCall/ -- Palomar Medical
Technologies Inc (Nasdaq: PMTI), a leading researcher and developer of light-
based systems for cosmetic treatments, today announced financial results for
the fourth quarter and year ended December 31, 2005. The Company's fiscal year
2005 total revenues increased by 40 percent, product revenues increased by 44
percent, and gross profit from product sales increased by 48 percent as
compared to the fiscal year 2004. The Company realized an increase in income
before taxes of $8.1 million, or 83 percent as compared to the fiscal year
2004. The Company also strengthened its balance sheet since the beginning of
the year, including increasing its cash and investments from $25 million to
$49 million.
Revenues for the quarter ended December 31, 2005 were $21.6 million, up
from $16.4 million in the fourth quarter of 2004. Product revenues increased
to $19.0 million from $13.9 million in the fourth quarter of 2005 as compared
to the fourth quarter of 2004. Gross profit from product sales increased to
$13.1 million (69 percent of product revenues), up from $9.6 million (69
percent of product revenues) in the year-earlier quarter. The Company reported
income before taxes of $5.6 million for the fourth quarter of this year, as
compared to $4.3 million for the fourth quarter of last year. The Company
reported net income of $5.3 million, or $0.27 per diluted share for the fourth
quarter of this year versus net income of $5.4 million, or $0.29 per diluted
share, for the fourth quarter of 2004 which included a benefit from income
taxes of $1.1 million due to the reduction of tax reserves.
Revenues for the year ended December 31, 2005, were $76.2 million, up from
$54.4 million for the same period in 2004. Product revenues increased to $65.8
million from $45.8 million for the year ended December 31, 2005 as compared to
the same period in 2004. Gross profit from product sales increased to $44.9
million (68 percent of product revenues), up from $30.3 million (66 percent of
product revenues) in the year-earlier period. The Company reported income
before taxes of $17.9 million for the year ended December 31, 2005, as
compared to $9.8 million for the same period in 2004. The Company reported net
income of $17.5 million, or $0.91 per diluted share for the year ended
December 31, 2005 versus net income of $10.6 million, or $0.60 per diluted
share, for the same period in 2004 which included a benefit from income taxes
of $1.1 million due to the reduction of tax reserves.
Chief Executive Officer Joseph P. Caruso commented, "I am pleased with
Palomar's continued progress during the fourth quarter of 2005 and the full
fiscal year, which includes the accomplishment of many milestones. Especially
encouraging is the fact that our revenues continue to increase at a rapid
rate, allowing us to further expand our sales, marketing, research and
development efforts. Palomar has worked hard to maintain our reputation with
customers for providing leading-edge technology to address major market
opportunities in the light-based cosmetic market. These markets are growing at
an astonishing rate and we intend to capitalize on the popularity of these new
procedures. We believe this is still only the beginning of a shift toward
light based treatments for cosmetic applications, and we expect to keep
extending our technology's applications to continue positioning Palomar to
take full advantage of this shift. The strength of our balance sheet should
allow us to continue as a powerful force in this dynamic market."
Commenting on Palomar's ongoing program to expand its shareholder base,
Chief Financial Officer Paul S. Weiner concluded, "Due to our strong operating
and financial performance in 2005, we substantially increased the
institutional following of the Company. We are continuing our efforts to
expand our shareholder base with an ongoing program of meetings with
professional investment managers and analysts nationwide. We are currently
scheduling our next round of investor meetings at this year's Annual Meeting
of the American Academy of Dermatology (AAD), to be held in San Francisco from
March 4th to the 6th. To reserve a time to meet with Palomar management and/or
receive product demonstrations, please contact Palomar's Investor Relations
department at 781-993-2411."
Conference Call: As previously announced, Palomar will conduct a
conference call and webcast today at 11:30 AM Eastern Time. Management will
discuss financial results and strategic matters. If you would like to
participate, please call (866) 277-1182 or listen to the webcast in the
Investor Relations section of the Company's website at
http://www.palomarmedical.com. The telephone replay will be available one hour
after the call at (888) 286-8010 passcode 94852839 and will be available for
fourteen days. A webcast replay will also be available.
About Palomar Medical Technologies Inc:
Palomar is a leading researcher and developer of light-based systems for
cosmetic treatments. Palomar pioneered the optical hair removal field, when,
in 1997, it introduced the first high-powered laser hair removal system. Since
then, many of the major advances in light-based hair removal have been based
on Palomar technology. There are now millions of light-based cosmetic
procedures performed around the world every year in physician offices,
clinics, spas and salons. Palomar is testing many new and exciting
applications to further advance the hair removal market and other cosmetic
applications. Palomar is uniquely focused on developing proprietary light-
based technology for introduction to the mass markets. Palomar has an
agreement with The Gillette Company (NYSE: G) to develop and potentially
commercialize a patented home-use, light-based hair removal device for women,
an agreement with Johnson & Johnson Consumer Companies to develop and
potentially commercialize home-use, light-based devices for reducing or
reshaping body fat including cellulite, reducing the appearance of skin aging,
and reducing or preventing acne, and was awarded a contract by the Department
of the Army to develop a light-based self-treatment device for
Pseudofolliculitis Barbae ("PFB").
For more information on Palomar and its products, visit Palomar's website
at http://www.palomarmedical.com. To continue receiving the most up-to-date
information and latest news on Palomar as it happens, sign up to receive
automatic e-mail alerts by going to the Investor Relations' section of the
website.
With the exception of the historical information contained in this
release, the matters described herein contain forward-looking statements,
including but not limited to statements relating to new markets, development
and introduction of new products, and financial projections that involve risk
and uncertainties that may individually or mutually impact the matters herein,
and cause actual results, events and performance to differ materially from
such forward-looking statements. These risk factors include, but are not
limited to, results of future operations, technological difficulties in
developing or introducing new products, the results of future research, lack
of product demand and market acceptance for current and future products, the
effect of economic conditions, challenges in managing joint ventures and
research with third parties and government contracts, the impact of
competitive products and pricing, governmental regulations with respect to
medical devices, including whether FDA clearance will be obtained for future
products and additional applications, the results of litigation, difficulties
in collecting royalties, potential infringement of third-party intellectual
property rights, and/or other factors, which are detailed from time to time in
the Company's SEC reports, including the report on Form 10-K for the year
ended December 31, 2004 and the Company's quarterly reports on Form 10-Q.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. The Company undertakes no
obligation to release publicly the result of any revisions to these forward-
looking statements that may be made to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events.
Contacts:
Kayla Castle
Investor Relations Manager
Palomar Medical Technologies Inc
781-993-2411
ir@palomarmedical.com
Consolidated Statements of Income (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
Revenues:
Product revenues $19,034,346 $13,896,552 $65,824,336 $45,810,177
Royalty revenues 1,196,809 1,148,753 4,921,075 4,052,078
Funded product
development
revenues 1,375,897 1,375,534 5,408,436 4,569,618
Total revenues 21,607,052 16,420,839 76,153,847 54,431,873
Costs and expenses:
Cost of product
revenues 5,974,724 4,280,927 20,952,179 15,513,695
Cost of royalty
revenues 478,724 459,501 1,968,430 1,620,831
Research and
development 3,563,973 2,734,493 12,782,386 10,296,463
Selling and marketing 4,956,074 3,189,995 17,468,366 12,030,308
General and
administrative 1,495,562 1,521,080 6,228,759 5,228,889
Total costs and
expenses 16,469,057 12,185,996 59,400,120 44,690,186
Income from
operations 5,137,995 4,234,843 16,753,727 9,741,687
Interest income 427,110 107,281 1,154,743 250,346
Other income (expense),
net 4,500 1,500 18,000 (214,433)
Income before income
taxes 5,569,605 4,343,624 17,926,470 9,777,600
Provision (benefit) for
income taxes 229,017 (1,016,723) 473,260 (855,713)
Net income $5,340,588 $5,360,347 $17,453,210 $10,633,313
Net income per share:
Basic $0.31 $0.33 $1.04 $0.68
Diluted $0.27 $0.29 $0.91 $0.60
Weighted average number
of shares outstanding:
Basic 17,040,995 16,109,294 16,831,185 15,688,855
Diluted 19,612,092 18,536,882 19,158,338 17,719,861
Consolidated Balance Sheets (Unaudited)
December 31, December 31,
2005 2004
Assets
Current assets:
Cash and cash equivalents $ 10,536,144 $ 7,508,856
Available-for-sale investments, at market
value 38,757,575 17,650,000
Accounts receivable, net of allowance 8,686,227 7,122,745
Inventories 6,753,110 5,866,494
Other current assets 582,074 440,254
Total current assets 65,315,130 38,588,349
Property and equipment, net 909,676 899,368
Other assets 111,074 111,074
Total Assets $ 66,335,880 $ 39,598,791
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $1,278,823 $971,030
Accrued liabilities 11,465,100 8,014,207
Deferred revenue 1,725,849 1,439,639
Total current liabilities 14,469,772 10,424,876
Stockholders' equity:
Preferred stock, $.01 par value-
Authorized - 1,500,000 shares
Issued - none - -
Common stock, $.01 par value-
Authorized - 45,000,000 shares
Issued - 17,126,467 and 16,231,502
shares, respectively 171,265 162,315
Additional paid-in capital 177,658,135 172,428,102
Accumulated deficit (125,963,292) (143,416,502)
Total stockholders' equity 51,866,108 29,173,915
Total liabilities and stockholders' equity $ 66,335,880 $ 39,598,791
SOURCE Palomar Medical Technologies Inc
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Related links:
http://www.palomarmedical.com
Company News On-Call:
http://www.prnewswire.com/comp/107555.html
CONTACT:
Kayla Castle, Investor Relations Manager of
Palomar Medical Technologies Inc, +1-781-993-2411,
ir@palomarmedical.com
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