EATONTOWN, N.J., July 15 /PRNewswire/ -- Roberts Pharmaceutical
Corporation (Amex: RPC) today reported per share earnings for the second
quarter ended June 30, 1999 at $0.23, a 109% increase from $0.11 in the
comparable period of 1998 and surpassing the First Call(R) consensus estimate
of $0.19.
Correspondingly, per share earnings for the first six months of 1999 were
reported at $0.39, an increase of 117% from $0.18 reported for the comparable
period of 1998.
Second quarter 1999 revenues advanced to $50.5 million from $44.4 million
in the second quarter of 1998 with revenues for the first six months of
1999 increasing to $95.0 million from $77.2 million in the comparable period
of 1998.
On a year-to-year basis, second quarter 1999 operating income rose by 177%
to $13.3 million with net income advancing 121% to $7.5 million from
$3.4 million in the comparable quarter of 1998.
First half 1999 operating income rose by 208% year-over-year to
$22.5 million with net income increasing 127% to $12.5 million from the
$5.5 million reported for the first half of 1998.
The strong year-to-year advance in operating income during the first half
of 1999 included a 37.0% increase in gross profits to $67.0 million while
sales, general and administrative expenses improved, as a percent of revenues,
to 39.2% from 45.9% in the comparable six months of 1998.
Additionally, during the first six months of 1999, Roberts invested
$7.3 million in research & development, a 17.7% increase from $6.2 million in
the first half of 1998.
Roberts said that overall operations during the first half of 1999
continued to benefit from sales of its newer, higher margin products
Agrylin(R), ProAmatine(R) and Pentasa(R). Collectively, these products
accounted for approximately 60% of total revenues generated during the first
six months of this year.
Roberts noted that sales of Agrylin, a high-margin product, were
particularly strong during this period and, in turn, more than offset an
anticipated softness in sales of Noroxin(R), an older, low-margin product.
The Company said that Agrylin sales during the first six months of 1999
benefited from a strong prescription trend, bolstered by some pricing actions
taken late in the second quarter.
Reflecting this favorable shift in product mix, gross profit margins
improved to 70.6% in the first six months of 1999 compared to 63.4% in the
first half of 1998. Second quarter 1999 gross profit margins were
particularly strong at 75.0% compared to 64.6% in the same quarter of 1998.
Roberts noted that Noroxin sales tend to be strongest late in the year and
-- as was the case in 1998 -- this could have a less favorable impact on
margins in the third and, more likely, in the fourth quarter of the year.
Nonetheless, the Company said it appears to be well on track for further
year-to-year improvements in gross margins and for achieving an average
annualized gross margin approaching 70% in 1999 compared to 62.1% in 1998.
"We are very pleased with the strength of our operations and have worked
diligently to position Roberts for continued year-to-year improvements in
revenues and earnings," said John T. Spitznagel, Roberts' President and CEO.
He continued by saying, "While we can never guarantee future events, the
strength of our performance during the first half of this year makes us
optimistic about our earnings prospects for the remainder of this year and
beyond."
Roberts Pharmaceutical Corporation, with operating subsidiaries in the
United States, Canada and the United Kingdom, focuses on value-added specialty
pharmaceuticals in the therapeutic categories of gastroenterology, urology,
oncology/hematology, and cardiology/neurology. Roberts actively pursues its
strategy of Search & Develop to identify and acquire novel post-discovery drug
candidates to advance through late-stage clinical development while also
pursuing opportunities to acquire and enhance the potential of commercially
available specialty medicines.
This and past press releases of Roberts Pharmaceutical Corporation are
available through the Internet at the Roberts' home page at
http://www.robertspharm.com.
This release contains forward-looking statements which are based on
assumptions and external factors, including assumptions relating to, but not
limited to regulatory action, product pricing, competitive market conditions,
unaudited financial data, new product development and other risks or
uncertainties detailed from time to time in Roberts filings with the
Securities and Exchange Commission. These forward-looking statements
represent the Company's judgment as of the date of this release and any
changes in the assumptions or external factors could produce significantly
different results.
Roberts Pharmaceutical Corporation
Financial Highlights of Operations*
(In Millions, Except Per Share Data)
(Unaudited)
For the six months For the three months
ended June 30, ended June 30,
1999 1998 1999 1998
Total Revenues $95.0 $77.2 $50.5 $44.4
Gross profit 67.0 49.0 37.9 28.7
Operating expenses 44.5 41.6 24.6 23.9
Operating income 22.5 7.3 13.3 4.8
Other income (expense),
net (3.1) 1.8 (1.6) 0.9
Income before taxes 19.4 9.1 11.7 5.7
Provision for taxes 6.9 3.6 4.2 2.3
Net income $12.5 $5.5 $7.5 $3.4
Net per share
income - diluted $0.39 $0.18 $0.23 $0.11
Weighted average number
of common shares and
equivalents (000's) 32,142 30,343 32,140 31,351
* Numbers may not add due to rounding.
SOURCE Roberts Pharmaceutical Corporation
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Related links:
http://www.robertspharm.com
CONTACT:
Stuart Z. Levine, Ph.D., V.P. Corporate
Communications of Roberts Pharmaceuticals Corporation,
732-676-1200, ext. 3064
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