EAST RUTHERFORD, N.J., Feb. 22 /PRNewswire-FirstCall/ -- Cambrex
Corporation (NYSE: CBM) reports fourth quarter and full year 2005 results for
the period ended December 31, 2005.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000613/CAMBREXLOGO )
Fourth Quarter 2005 Consolidated Results
For the fourth quarter 2005, the Company reported a net loss of $140.3
million, or $5.26 per diluted share, compared to net income of $4.9 million,
or $0.18 per diluted share, in the fourth quarter 2004. Fourth quarter 2005
results include charges of $5.40 per diluted share from the following items:
* An $87.2 million ($3.27 per diluted share) goodwill impairment and a
$35.8 million ($1.34 per diluted share) charge to reduce the carrying
value of long-lived assets recorded in Operating Expenses. The
long-lived asset impairment includes a tax benefit of $2.3 million.
The goodwill and asset impairments were recorded as the result of lower
long-term profitability projections for the Biopharma segment and two
small European reporting units in the Human Health segment.
* A $16.9 million ($0.63 per diluted share) valuation allowance recorded
within the Income Tax Provision to write down the carrying value of
certain US tax assets that had previously been preserved by tax
strategies. The valuation allowance results from the Company's recent
history of domestic losses and its short-term projections for continued
domestic losses.
* A $4.2 million ($0.16 per diluted share) charge recorded within
Administrative Expense primarily due to the severance agreement with
the Company's former CEO.
Excluding the charges noted above, fourth quarter 2005 net earnings were
$3.8 million ($0.14 per diluted share). Please see the pro forma-to-GAAP
reconciliation at the end of this press release. Management believes that pro
forma results provide a more meaningful representation of the Company's
operating results for the periods presented due to the magnitude and nature of
the charges recorded in the fourth quarter 2005, full year 2005 and full year
2004.
Sales increased 3.0% to $120.9 million in the fourth quarter 2005,
including a 5.1% unfavorable impact from foreign currency, from $117.4 million
in the fourth quarter 2004 resulting from improved sales performance in the
Biopharma and Bioproducts segments.
Fourth quarter 2005 gross margins decreased to 33.9% from 37.5% in the
fourth quarter 2004 primarily due to lower Bioproducts margins resulting
primarily from increased headcount to support current and future activity
levels, lower Biopharma margins caused by higher fixed plant costs and adverse
product mix and lower Human Health margins due to unfavorable absorption and
lower pricing. Foreign currency favorably impacted consolidated gross margin
by 0.4 percentage points in the fourth quarter 2005.
Full Year 2005 Consolidated Results
Full year 2005 sales increased 2.9% to $452.0 million, including a 0.4%
unfavorable impact resulting from foreign currency, from $439.1 million in
2004 due to higher sales in the Bioproducts and Human Health segments
partially offset by lower sales in the Biopharma segment.
Full year 2005 gross margins decreased to 35.7% from 38.9% in 2004 due to
lower Bioproducts margins resulting from increased headcount to support
current and future activity levels, lower Biopharma margins caused by higher
fixed plant costs and adverse product mix and lower Human Health margins due
to unfavorable absorption and lower pricing. Foreign currency unfavorably
impacted gross margin by 0.1 percentage point in 2005.
For the full year 2005, the Company reported a net loss of $129.2 million,
or $4.88 per diluted share, compared to a net loss of $26.9 million, or $1.03
per diluted share, in 2004. In addition to the charges recorded in the fourth
quarter 2005 discussed above, earlier in 2005 the Company recorded a tax
benefit of $3.3 million ($0.13 per diluted share) due to a favorable Swedish
court decision and a charge of $1.3 million ($0.05 per diluted share) for the
expected cost of environmental remediation of a former site. Excluding the
charges noted above, 2005 net earnings were $12.9 million ($0.48 per diluted
share).
In 2004, a $48.7 million ($1.84 per diluted share) goodwill impairment was
recorded in Biopharma Operating Expense, $2.9 million of income was recorded
in Bioproducts Operating Expense due to the early termination of a customer
contract and a $1.0 million charge was recorded in Human Health Operating
Expense due to the reorganization and related workforce reductions at a
European facility. Excluding the charges noted above, 2004 net earnings were
$20.0 million ($0.76 per diluted share).
The total number of contract development and manufacturing projects
processed by the Company's Biopharma, Cell Therapy (within the Bioproducts
segment) and Human Health businesses increased 61% in full year 2005 compared
to full year 2004. Compared to the third quarter 2005, two Human Health
projects moved from pre-registration to approved status and two Biopharma
projects ended due to unfavorable regulatory developments at two customers.
Number of projects
Full year Full year
Project type 2004 2005 %Change
Biopharma 15 23 53%
Cell Therapy 8 17 113%
Human Health* 39 60 54%
* Note: The Human Health line does not include projects for approved
therapeutics.
Bioproducts
The Bioproducts segment includes products and services for research and
therapeutic applications. Bioproducts sales in the fourth quarter 2005
increased 5.7% to $35.9 million, including a 3.7% unfavorable impact from
foreign currency, from $33.9 million in the fourth quarter 2004 primarily due
to higher sales volumes of research products, cell therapy and related
services and therapeutic media.
Fourth quarter 2005 Bioproducts gross margin decreased to 50.1% from 56.8%
in the fourth quarter 2004 primarily due to increased headcount to support
current and future activity levels, higher utilities and foreign currency
effects partially offset by favorable absorption from higher sales volumes.
Foreign currency unfavorably impacted Bioproducts gross margin by 1.1
percentage point in the fourth quarter 2005.
Fourth quarter 2005 Bioproducts operating profit margin increased to 14.7%
from 13.3% in the fourth quarter 2004 primarily due to lower commissions and
bonus accruals. Foreign currency unfavorably impacted Bioproducts operating
profit margin by 1.0 percentage point in the fourth quarter 2005.
Biopharma
The Biopharma segment consists of the Company's contract biopharmaceutical
process development and manufacturing business. Sales in the fourth quarter
2005 increased 21.0% to $14.0 million from $11.5 million in the fourth quarter
2004 due to higher suite revenues resulting from the timing of client projects
and higher material reimbursement revenue partially offset by lower process
development revenues.
Fourth quarter 2005 Biopharma gross margin decreased to 7.1% versus 13.7%
in the fourth quarter 2004 driven by higher material reimbursements which
contribute virtually no gross profit, higher utility costs, costs associated
with pre-approval inspections (PAIs) and the depreciation of the 2800 liter
bioreactor that was commissioned earlier in 2005.
The fourth quarter 2005 Biopharma operating loss was $90.5 million versus
an operating loss of $0.7 million in the fourth quarter 2004. The fourth
quarter 2005 operating loss resulted principally from a $76.8 million goodwill
impairment and an $11.4 million charge to reduce the carrying value of long-
lived assets. Excluding the charges noted above, Biopharma had an operating
loss of $2.3 million in the fourth quarter 2005 versus $0.7 million in the
fourth quarter 2004 due to lower gross profit and a $0.7 million charge
related to an investment made for a large pharmaceutical client whose project
was cancelled due to an unfavorable regulatory development. Foreign currency
had no impact on Biopharma sales, gross margin or operating profit margin.
Human Health
The Human Health segment consists of small molecule active pharmaceutical
ingredients (APIs), advanced intermediates and other products derived from
organic chemistry. Human Health sales in the fourth quarter 2005 decreased
1.2% to $71.0 million, including a 6.6% unfavorable impact due to foreign
currency, from $71.9 million in the fourth quarter 2004. Higher net sales
volumes were more than offset by the unfavorable impact of foreign currency.
Fourth quarter 2005 Human Health gross margin decreased to 31.0% from
32.3% in the fourth quarter 2004 primarily due to higher inventory reserves,
lower pricing and higher production costs partially offset by favorable
product mix and higher sales volumes. Foreign currency favorably impacted
gross margin by 1.2 percentage points in the fourth quarter 2005.
The fourth quarter 2005 Human Health operating loss was $26.0 million
versus operating profit of $13.1 million in the fourth quarter 2004. The
fourth quarter 2005 operating loss resulted from a $26.7 million charge to
reduce the carrying value of long-lived assets and a $10.4 million goodwill
impairment. Excluding the charges noted above, Human Health operating margins
were 15.7% in the fourth quarter 2005 compared to 18.3% in the fourth quarter
2004 due to lower gross margins and higher bonus accruals. Foreign currency
favorably impacted Human Health operating margin by 1.4 percentage points in
the fourth quarter 2005.
Fourth Quarter and Full Year 2005 Consolidated Operating, Interest and Tax
Expenses
Sales and marketing expense in the fourth quarter 2005 decreased to $8.8
million, or 7.3% of sales, from $9.2 million, or 7.8% of sales in the fourth
quarter 2004, principally due to the impact of foreign currency. Sales and
marketing expense for the full year 2005 increased to $34.0 million, or 7.5%
of sales, from $32.6 million, or 7.4%, in 2004 primarily due to the cost of
additional headcount in Europe to support the Bioproducts business.
Fourth quarter 2005 Research and Development Expense was flat with prior
year at $5.7 million. Research and Development Expense for the full year 2005
increased to $22.3 million, or 4.9% of sales, from $19.7 million, or 4.5% of
sales, in 2004 due to increased spending for rapid microbial detection and
FlashGel(TM) product development and due to growth in the Human Health custom
development area.
Fourth quarter 2005 Administrative Expense increased to $20.6 million, or
17.0% of sales, from $17.4 million, or 14.7% of sales, in the fourth quarter
2004 due to a $4.2 million charge comprised primarily of the cost of the
severance agreement with the Company's former CEO. Excluding the $4.2 million
charge, Administrative Expense in the fourth quarter 2005 declined $1.0
million compared to the fourth quarter 2004 primarily due to lower corporate
expenses and the impact of foreign currency. Excluding the charges recorded
in 2005, full year 2005 Administrative Expense decreased to $65.8 million, or
14.6% of sales, from $70.1 million, or 16.0% of sales, principally due to
lower SARS expense and legal and professional fees partially offset by
increased headcount and higher environmental expenses.
The Company completed its annual analysis of the carrying value of
goodwill and long-lived assets and has recorded a $125.3 million charge in the
fourth quarter 2005 comprised of an $87.2 million goodwill impairment and a
$38.1 million pre-tax impairment of long-lived assets resulting from lower
projections of long-term profitability for the Biopharma segment and two small
European reporting units within the Human Health segment. The impairment
writes down all the remaining goodwill and a portion of the long-lived assets
at the respective sites. The impairment within the Biopharma segment partly
resulted from unfavorable regulatory developments at a large client in the
fourth quarter 2005.
Net Interest Expense in the fourth quarter and full year 2005 is
essentially flat with prior year at $2.5 million and $10.5 million,
respectively. The average interest rate in the fourth quarter 2005 and 2004
is 5.6% and 5.4% respectively, and for the full year 2005 and 2004 is 5.5%.
The tax rate in the fourth quarter 2005 was -14.5% compared to 43.6% in
the fourth quarter of 2004. The fourth quarter 2005 tax rate includes the
impact of the goodwill and long-lived asset impairments discussed above and a
$16.9 million valuation allowance to write down the carrying value of certain
US tax assets that had been previously preserved by tax strategies. These
charges increased fourth quarter 2005 Tax Expense by $14.6 million. Excluding
the charges recorded in the fourth quarter 2005, the effective tax rate is
45.8% in the fourth quarter 2005 versus 43.6% in the fourth quarter 2004 due
to the geographic distribution of income or losses. Since the Company is
currently not recording any tax benefit for US and certain European losses,
the consolidated effective tax rate is expected to be highly volatile.
The full year tax rate in 2005 was -23.3% compared to -126.5% in 2004.
The 2005 results include the impact of the items affecting the fourth quarter
2005, as discussed above, and a $3.3 million positive impact on tax expenses
related to the previously discussed Swedish tax court decision. Excluding the
charges recorded in 2005 and 2004, the 2005 consolidated effective tax rate
increased to 50.5% from 40.8% in 2004.
Capital expenditures and depreciation for the fourth quarter 2005 were
$12.3 million and $9.0 million compared to $11.7 million and $9.5 million in
the fourth quarter 2004, respectively. Capital expenditures and depreciation
for 2005 are $40.3 million and $36.6 million compared to $39.5 million and
$38.9 million in 2004, respectively.
Guidance
The Company is providing full year 2006 guidance for sales growth to be
within the range of 4% to 8% and net earnings to be in the range of $0.75 to
$0.95 per fully diluted share.
For the year 2006, guidance for capital expenditures, depreciation and
amortization for continuing operations is currently expected to be
approximately $40-$45 million, $36 million, and $2.0 million, respectively.
The Company expects the full year 2006 effective tax rate to be approximately
40-45%. The full year and quarterly effective tax rates will continue to be
highly sensitive to the geographic mix of income or losses.
The above guidance excludes any costs associated with the previously
announced agreement to purchase Cutanogen (estimated to be $0.15 per diluted
share depending on the timing of milestone payments), the previously announced
early extinguishment of a portion of the Company's long-term debt ($0.20 per
diluted share) and the previously announced evaluation of strategic
alternatives to enhance shareholder value.
The financial information contained in this press release is unaudited,
subject to revision and should not be considered final until the 2005 Form
10-K is filed with the US Securities and Exchange Commission.
Conference Call and Webcast
The Conference Call to discuss fourth quarter and full year 2005 earnings
will begin at 8:30 a.m. Eastern Time on Thursday, February 23, 2006 and last
approximately 45 minutes. Those wishing to participate should call
1-888-634-4003 for Domestic, and +1-706-634-6653 for International. Please
use the conference ID 4188520 and call approximately 10 minutes before the
start time. The Conference Call will also be webcast in the Investor
Relations section of the Cambrex website located at http://www.cambrex.com.
The webcast will be available for approximately thirty (30) days following the
call.
A replay of the Conference Call will be available approximately two hours
after the completion of the call through the end of business day, Thursday,
March 2, 2006 by calling 1-800-642-1687 for Domestic, and +1-706-645-9291 for
International. Please use the conference ID 4188520 too access the replay.
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under
The Securities Exchange Act of 1934, including, without limitation, statements
regarding expected performance, especially expectations with respect to sales,
research and development expenditures, earnings per share, capital
expenditures, acquisitions, divestitures, collaborations, or other expansion
opportunities. These statements may be identified by the fact that words such
as "expects," "anticipates", "intends," "estimates," "believes" or similar
expressions are used in connection with any discussion of future financial and
operating performance. The forward-looking statements contained herein are
based on current plans and expectations and involve risks and uncertainties
that could cause actual outcomes and results to differ materially from current
expectations including but not limited to, global economic trends,
pharmaceutical outsourcing trends, competitive pricing or product
developments, government legislation and/or regulations (particularly
environmental issues), tax rate, interest rate, technology, manufacturing and
legal issues, changes in foreign exchange rates, performance of minority
investments, uncollectible receivables, loss on disposition of assets,
cancellation or delays in renewal of contracts, and lack of suitable raw
materials or packaging materials, the possibility that the value of the
acquisition of PermaDerm(TM) cultured skin may not be realized or that our
plans to obtain a Humanitarian Device Exemption, completion of clinical trials
and commercialization of PermaDerm cultured skin in the United States may not
be successful and the Company may not receive regulatory approval for its
products.
For further details and a discussion of these and other risks and
uncertainties, investors are cautioned to review the Cambrex Annual Report on
Form 10-K, including the Forward-Looking Statement section therein, and other
filings with the Securities and Exchange Commission. The Company undertakes
no obligation to publicly update any forward-looking statement, whether as a
result of new information, future events or otherwise.
About Cambrex
Cambrex is a global, diversified life sciences company dedicated to
providing products and services to accelerate and improve the discovery and
commercialization of human therapeutics. The Company employs approximately
2,000 worldwide. For more information, please visit http://www.cambrex.com.
CAMBREX CORPORATION
Statement of Profit and Loss - Pro forma*
For the Quarters Ended December 31, 2005 and 2004
(in thousands)
2005 2004
% of % of
Amount Sales Amount Sales
Gross Sales $120,853 100.0% $117,365 100.0%
Commissions and Allowances (259) -0.2% (20) 0.0%
Net Sales 121,112 100.2% 117,385 100.0%
Other Revenues 721 0.6% 255 0.2%
Net Revenue 121,833 100.8% 117,640 100.2%
Cost of Sales 80,850 66.9% 73,571 62.7%
Gross Profit 40,983 33.9% 44,069 37.5%
Operating Expenses
Sales and Marketing Expense 8,805 7.3% 9,171 7.8%
Research and Development Expense 5,730 4.7% 5,723 4.9%
Administrative Expense 16,378 13.5% 17,390 14.7%
Amortization 564 0.5% 541 0.5%
Total Operating Expenses 31,477 26.0% 32,825 27.9%
Operating Profit 9,506 7.9% 11,244 9.6%
Other Expenses
Interest - Other 2,533 2.1% 2,479 2.1%
Other (Income)/Expense, net (32) 0.0% 134 0.1%
Total Other Expenses 2,501 2.1% 2,613 2.2%
Income Before Taxes 7,005 5.8% 8,631 7.4%
Income Tax Provision 3,208 2.7% 3,760 3.2%
Net Income $3,797 3.1% $4,871 4.2%
Basic Earnings per Share
Net Income $0.14 $0.19
Diluted Earnings per Share
Net Income $0.14 $0.18
Weighted Average Shares Outstanding
Basic 26,654 26,154
Diluted 26,683 26,540
* Refer to the GAAP to Pro forma Reconciliation.
CAMBREX CORPORATION
Statement of Profit and Loss - GAAP
For the Quarters Ended December 31, 2005 and 2004
(in thousands)
2005 2004
% of % of
Amount Sales Amount Sales
Gross Sales $120,853 100.0% $117,365 100.0%
Commissions and Allowances (259) -0.2% (20) 0.0%
Net Sales 121,112 100.2% 117,385 100.0%
Other Revenues 721 0.6% 255 0.2%
Net Revenue 121,833 100.8% 117,640 100.2%
Cost of Sales 80,850 66.9% 73,571 62.7%
Gross Profit 40,983 33.9% 44,069 37.5%
Operating Expenses
Sales and Marketing Expense 8,805 7.3% 9,171 7.8%
Research and Development Expense 5,730 4.7% 5,723 4.9%
Administrative Expense 20,601 17.0% 17,390 14.7%
Impairment Charges 125,331 103.7% - 0.0%
Amortization 564 0.5% 541 0.5%
Total Operating Expenses 161,031 133.2% 32,825 27.9%
Operating (Loss)/Profit (120,048) -99.3% 11,244 9.6%
Other Expenses
Interest - Other 2,533 2.1% 2,479 2.1%
Other (Income)/Expense, net (32) 0.0% 134 0.1%
Total Other Expenses 2,501 2.1% 2,613 2.2%
(Loss)/Income Before Taxes (122,549) -101.4% 8,631 7.4%
Income Tax Provision 17,784 14.7% 3,760 3.2%
Net (Loss)/Income $(140,333) -116.1% $4,871 4.2%
Basic Earnings per Share
Net (Loss)/Income $(5.26) $0.19
Diluted Earnings per Share
Net (Loss)/Income $(5.26) $0.18
Weighted Average Shares Outstanding
Basic 26,654 26,154
Diluted 26,654 26,540
CAMBREX CORPORATION
Gross Sales, Gross Profit & Operating Profit/(Loss) by Segment
For the Quarters Ended December 31, 2005 and 2004
(in thousands)
Fourth Quarter 2005
Gross Gross GP% Operating OP% Operating OP%-
Sales Profit Profit GAAP Profit Pro forma*
/(Loss) /(Loss)
-GAAP -Pro forma*
Bioproducts $35,860 $17,956 50.1% $5,254 14.7% $5,254 14.7%
Biopharma 13,951 989 7.1% (90,517) -648.8% (2,316) -16.6%
Human Health 71,042 22,038 31.0% (25,996) -36.6% 11,134 15.7%
Corporate - - (8,789) (4,566)
Total $120,853 $40,983 33.9% $(120,048) -99.3% $9,506 7.9%
Fourth Quarter 2004
Gross Gross GP% Operating OP% Operating OP%-
Sales Profit Profit GAAP Profit Pro forma*
/(Loss) /(Loss)
-GAAP -Pro forma*
Bioproducts $33,918 $19,254 56.8% $4,514 13.3% 4,514 13.3%
Biopharma 11,531 1,577 13.7% (748) -6.5% (748) -6.5%
Human Health 71,916 23,238 32.3% 13,149 18.3% 13,149 18.3%
Corporate - - (5,671) (5,671)
Total $117,365 $44,069 37.5% $11,244 9.6% 11,244 9.6%
Gross Sales Comparison
4Q05 4Q04
Gross Gross Change Change
Sales Sales $ %
Bioproducts $35,860 $33,918 $1,942 5.7%
Biopharma 13,951 11,531 2,420 21.0%
Human Health 71,042 71,916 (874) -1.2%
Total $120,853 $117,365 $3,488 3.0%
* Refer to the GAAP to Pro forma Reconciliation.
CAMBREX CORPORATION
Statement of Profit and Loss - Pro forma*
For the Years Ended December 31, 2005 and 2004
(in thousands)
2005 2004
% of % of
Amount Sales Amount Sales
Gross Sales $451,986 100.0% $439,115 100.0%
Commissions and Allowances 3,437 0.8% 2,258 0.5%
Net Sales 448,549 99.2% 436,857 99.5%
Other Revenues 6,548 1.5% 6,800 1.5%
Net Revenue 455,097 100.7% 443,657 101.0%
Cost of Sales 293,760 65.0% 272,917 62.1%
Gross Profit 161,337 35.7% 170,740 38.9%
Operating Expenses
Sales and Marketing Expense 34,038 7.5% 32,584 7.4%
Research and Development Expense 22,331 4.9% 19,659 4.5%
Administrative Expense 65,767 14.6% 70,127 16.0%
Amortization 2,282 0.5% 1,921 0.4%
Total Operating Expenses 124,418 27.5% 124,291 28.3%
Operating Income 36,919 8.2% 46,449 10.6%
Other Expenses
Interest - Other 10,815 2.4% 10,950 2.5%
Other Expenses 40 0.0% 73 0.0%
Total Other Expenses 10,855 2.4% 11,023 2.5%
Income Before Taxes 26,064 5.8% 35,426 8.1%
Provision for Income Taxes 13,174 2.9% 14,461 3.3%
Income From Continuing Operations $12,890 2.9% $20,965 4.8%
Discontinued Operations
Loss From Discontinued Operations - (978)
Net Income $12,890 $19,987
Basic Earnings per Share
Income From Continuing Operations $0.49 $0.80
Loss From Discontinued Operations $ - $(0.03)
Net Income $0.49 $0.77
Diluted Earnings per Share
Income From Continuing Operations $0.48 $0.79
Loss From Discontinued Operations $ - $(0.03)
Net Income $0.48 $0.76
Weighted Average Shares Outstanding
Basic 26,456 26,094
Diluted 26,581 26,462
* Refer to the GAAP to Pro forma Reconciliation.
CAMBREX CORPORATION
Statement of Profit and Loss - GAAP
For the Years Ended December 31, 2005 and 2004
(in thousands)
2005 2004
% of % of
Amount Sales Amount Sales
Gross Sales $451,986 100.0% $439,115 100.0%
Commissions and Allowances 3,437 0.8% 2,258 0.5%
Net Sales 448,549 99.2% 436,857 99.5%
Other Revenues 6,548 1.5% 6,800 1.5%
Net Revenue 455,097 100.7% 443,657 101.0%
Cost of Sales 293,760 65.0% 272,917 62.1%
Gross Profit 161,337 35.7% 170,740 38.9%
Operating Expenses
Sales and Marketing Expense 34,038 7.5% 32,584 7.4%
Research and Development Expense 22,331 4.9% 19,659 4.5%
Administrative Expense 71,290 15.9% 70,127 16.0%
Impairment Charges 125,331 27.7% 48,720 11.1%
Other, net - 0.0% (1,863) -0.4%
Amortization 2,282 0.5% 1,921 0.4%
Total Operating Expenses 255,272 56.5% 171,148 39.0%
Operating Loss (93,935) -20.8% (408) -0.1%
Other Expenses
Interest - Other 10,815 2.4% 10,950 2.5%
Other Expenses 40 0.0% 73 0.0%
Total Other Expenses 10,855 2.4% 11,023 2.5%
Loss Before Taxes (104,790) -23.2% (11,431) -2.6%
Provision for Income Taxes 24,421 5.4% 14,461 3.3%
Loss From Continuing Operations $(129,211) -28.6% $(25,892) -5.9%
Discontinued Operations
Loss From Discontinued Operations - (978)
Net Loss $(129,211) $(26,870)
Basic Earnings per Share
Loss From Continuing Operations $(4.88) $(0.99)
Loss From Discontinued
Operations $ - $(0.04)
Net Loss $(4.88) $(1.03)
Diluted Earnings per Share
Loss From Continuing Operations $(4.88) $(0.99)
Loss From Discontinued
Operations $ - $(0.04)
Net Loss $(4.88) $(1.03)
Weighted Average Shares Outstanding
Basic 26,456 26,094
Diluted 26,456 26,094
CAMBREX CORPORATION
Gross Sales, Gross Profit & Operating Profit/(Loss) by Segment
For the Years Ended December 31, 2005 and 2004
(in thousands)
Full Year 2005
Gross Gross GP% Operating OP% Operating OP%-
Sales Profit Profit GAAP Profit Pro forma*
/(Loss) /(Loss)
-GAAP -Pro forma*
Bioproducts $149,498 $77,908 52.1% $25,753 17.2% 25,753 17.2%
Biopharma 41,698 (3,811) -9.1% (103,062) -247.2% (14,861) -35.6%
Human Health 260,790 87,240 33.5% 8,377 3.2% 45,507 17.4%
Corporate - - (25,003) (19,480)
Total $451,986 $161,337 35.7% $(93,935) -20.8% 36,919 8.2%
Full Year 2004
Gross Gross GP% Operating OP% Operating OP%-
Sales Profit Profit GAAP Profit Pro forma*
/(Loss) /(Loss)
-GAAP -Pro forma*
Bioproducts $136,108 $74,930 55.1% $26,386 19.4% 23,523 17.3%
Biopharma 43,270 4,880 11.3% (53,813) -124.4% (5,093) -11.8%
Human Health 259,737 90,930 35.0% 50,651 19.5% 51,651 19.9%
Corporate - - (23,632) (23,632)
Total $439,115 $170,740 38.9% $(408) -0.1% 46,449 10.6%
Gross Sales Comparison
2005 2004
Gross Gross Change Change
Sales Sales $ %
Bioproducts $149,498 $136,108 $13,390 9.8%
Biopharma 41,698 43,270 (1,572) -3.6%
Human Health 260,790 259,737 1,053 0.4%
Total $451,986 $439,115 $12,871 2.9%
* Refer to the GAAP to Pro forma Reconciliation.
CAMBREX CORPORATION
GAAP to Pro forma Reconciliation - Net (Loss)/Income
For the Quarters and Years ended December 31, 2005 and 2004
Fourth Quarter Fourth Quarter
2005 2004
Net (Loss)/ Diluted Net Diluted
Income EPS Income EPS
Net (Loss)/Income - As Reported $(140,333) $(5.26) $4,871 $0.18
Impairment - Goodwill and Long Lived
Assets (net of tax) 122,981 4.61 - -
Executive Severance 4,223 0.16 - -
Domestic Tax Valuation Allowance 16,926 0.63 - -
Net Income - Pro forma $3,797 $0.14 $4,871 $0.18
Full Year Full Year
2005 2004
Net Net
(Loss)/ Diluted (Loss)/ Diluted
Income EPS Income EPS
Net Loss - As Reported $(129,211) $(4.88) $(26,870) $(1.03)
Impairment - Goodwill and Long Lived
Assets (net of tax) 122,981 4.63 48,720 1.84
Executive Severance 4,223 0.16 - -
Domestic Tax Valuation Allowance 16,926 0.64 - -
Tax Benefit (Swedish Tax Item) (3,329) (0.13) - -
Environmental Reserve 1,300 0.05 - -
Early Termination of Bioproducts
Customer Contract - - (2,863) (0.11)
Restructuring at European Site - - 1,000 0.04
Net Income - Pro forma $12,890 $0.48 $19,987 $0.76
CAMBREX CORPORATION
GAAP to Pro forma Reconciliation - Operating Profit/(Loss) by Segment
For the Quarters and Years ended December 31, 2005 and 2004
Fourth Quarter 2005
Human
Bioproducts Biopharma Health Corporate Total
Operating Profit/(Loss)
- As Reported $5,254 $(90,517) $(25,996) $(8,789) $(120,048)
Impairment Charge - 88,201 37,130 - 125,331
Executive Severance - - - 4,223 4,223
Operating Profit/(Loss)
- Pro forma $5,254 $(2,316) $11,134 $(4,566) $9,506
Fourth Quarter 2004
Human
Bioproducts Biopharma Health Corporate Total
Operating Profit/(Loss)
- As Reported $4,514 $(748) $13,149 $(5,671) $11,244
Operating Profit/(Loss)
- Pro forma $4,514 $(748) $13,149 $(5,671) $11,244
Full Year 2005
Human
Bioproducts Biopharma Health Corporate Total
Operating Profit/(Loss)
- As Reported $25,753 $(103,062) $8,377 $(25,003) $(93,935)
Impairment Charge - 88,201 37,130 - 125,331
Executive Severance - - - 4,223 4,223
Environmental Reserve - - - 1,300 1,300
Operating Profit/(Loss)
- Pro forma $25,753 $(14,861) $45,507 $(19,480) $36,919
Full Year 2004
Human
Bioproducts Biopharma Health Corporate Total
Operating Profit/(Loss)
- As Reported $26,386 $(53,813) $50,651 $(23,632) $(408)
Impairment Charge - 48,720 - - 48,720
Early Termination of
Bioproducts Customer
Contract (2,863) - - - (2,863)
Restructuring - - 1,000 - 1,000
Operating Profit/(Loss)
- Pro forma $23,523 $(5,093) $51,651 $(23,632) $46,449
CAMBREX CORPORATION
Consolidated Balance Sheet
As of December 31, 2005 and 2004
(in thousands)
Assets 2005 2004
Cash and Cash Equivalents $45,932 $91,532
Trade Receivables, net 74,425 68,370
Inventories, net 93,617 91,039
Deferred Tax Asset 1,162 2,605
Other Current Assets 17,652 20,825
Total Current Assets 232,788 274,371
Property, Plant and Equipment, Net 222,130 280,790
Goodwill and Other Intangibles 135,897 230,656
Other Non-Current Assets 5,985 6,168
Total Assets $596,800 $791,985
Liabilities and Stockholders' Equity
Trade Accounts Payable $38,813 $38,552
Accrued Liabilities 51,819 52,181
Short-term Debt and Current Portion
of Long-term Debt 1,514 1,400
Total Current Liabilities 92,146 92,133
Long-term Debt 186,819 226,187
Deferred Tax Liabilities 31,135 21,686
Other Non-Current Liabilities 61,314 60,663
Total Liabilities $371,414 $400,669
Stockholders' Equity $225,386 $391,316
Total Liabilities and Stockholders'
Equity $596,800 $791,985
SOURCE Cambrex Corporation
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Related links:
http://www.cambrex.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi- bin/prnh/20000613/CAMBREXLOGO
Company News On-Call:
http://www.prnewswire.com/comp/134219.html
CONTACT:
Luke M. Beshar, Executive Vice President &
CFO, +1-201-804-3010, luke.beshar@cambrex.com, or Anne-Marie
Hess, Senior Director, Investor Relations, +1-201-804-3062,
annemarie.hess@cambrex.com, both of Cambrex Corporation
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