EAST RUTHERFORD, N.J., July 27 /PRNewswire-FirstCall/ -- Cambrex
Corporation (NYSE: CBM) reports second quarter 2006 results for the period
ended June 30, 2006.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000613/CAMBREXLOGO )
To better reflect ongoing operations for the periods presented,
Adjusted (non-GAAP) results are used throughout this press release and the
accompanying tables. The second quarter 2006 Adjusted financial results
exclude costs related to the evaluation of strategic alternatives ($0.05
Diluted Earnings per Share) and a small amount of cost related to the
Cutanogen acquisition. The second quarter 2005 financial results exclude
the benefit of a favorable Swedish tax court decision ($0.13 Diluted
Earnings per Share). In addition to the aforementioned items, certain
employee medical benefit expenses in 2005 and 2006 were reclassified from
segment Cost of Sales and Operating Expense to Corporate Administrative
Expenses to better reflect actual costs incurred within the operating
segments and are included in the GAAP/Non-GAAP reconciliation tables. A
reconciliation of GAAP results to Adjusted (non-GAAP) results can be found
in the unaudited financial tables included in this press release.
Adjusted Diluted Earnings per Share were $0.09 in the second quarter
2006 compared with $0.14 in the second quarter 2005 primarily due to higher
income taxes partially offset by higher pre-tax income. Second quarter 2006
GAAP Diluted Earnings per Share were $0.04 compared to $0.27 in the second
quarter 2005.
Second quarter 2006 sales revenue increased 6.4% to $123.6 million from
$116.2 million in the second quarter 2005 due to strong performance in the
Human Health and Bioproducts segments. Foreign currency impact on
consolidated sales revenue was negligible in the quarter.
Second quarter 2006 Adjusted Gross Profit increased 3.5% to $42.1
million, or 34.1% of sales, including an unfavorable impact of 0.6% for
foreign currency, from $40.7 million, or 35.0% of sales, in the second
quarter 2005 primarily due to higher sales volumes partially offset by
lower Gross Profit in the Biopharma segment. Second quarter 2006 GAAP Gross
Profit was $42.8 million, or 34.6% of sales, including an unfavorable
impact of 0.6% for foreign currency, compared to $40.3 million, or 34.7% of
sales, in the second quarter 2005.
Second quarter 2006 Adjusted Operating Profit increased 5.7% to $9.6
million, or 7.8% of sales in the second quarter 2006, from $9.1 million, or
7.8% of sales, in the second quarter 2005. Second quarter 2006 GAAP
Operating Profit was $8.2 million, or 6.6% of sales in the second quarter
2006, compared to $9.1 million, or 7.8% of sales, in the second quarter
2005.
Second quarter 2006 Adjusted Income before Taxes increased 12.2% to
$7.2 million from $6.4 million in the second quarter 2005 due to lower
Interest Expense and higher Operating Profit. Second quarter 2006 GAAP
Income before Taxes was $5.8 million compared to $6.4 million in the second
quarter 2005.
Strategic Alternatives
On February 2, 2006, Cambrex announced that it had retained Bear
Stearns as investment bankers to assist the Board of Directors in
identifying and assessing strategic alternatives to increase shareholder
value. Significant progress was made on this initiative during the second
quarter and continues to be a top priority of the Cambrex Board of
Directors and executive management team. The Company will issue updates as
decisions are reached on this matter.
Business Segment Results
Bioproducts
The Bioproducts segment includes products and services for research and
therapeutic applications. Bioproducts Sales in the second quarter 2006
increased 8.1% to $41.1 million from $38.0 million in the second quarter
2005 primarily due to higher sales in most product categories partially
offset by lower sales of therapeutic cell culture media. Foreign currency
had no impact on Bioproducts Sales revenue in the quarter.
Second quarter 2006 Bioproducts Adjusted Gross Margin decreased
slightly to 51.1% from 51.4% in the second quarter 2005 due to higher
production costs and inventory discards partially offset by favorable sales
volume and pricing. Foreign currency favorably impacted Bioproducts gross
margin by 0.6 percentage points in the second quarter 2006. Second quarter
2006 Bioproducts GAAP Gross Margin was 51.8% versus 50.9% in the second
quarter 2005.
Second quarter 2006 Bioproducts Adjusted Operating Profit Margin
increased to 19.0% from 16.1% in the second quarter 2005 primarily due to
lower Research and Development (R&D) expenses resulting from the completion
of certain projects and subsequent product launches and lower bonus
expenses. Foreign currency favorably impacted Bioproducts operating profit
margin by 0.6 percentage points in the second quarter 2006. Second quarter
2006 Bioproducts GAAP Operating Profit Margin was 19.9% versus 15.3% in the
second quarter 2005.
Biopharma
The Biopharma segment consists of the Company's contract
biopharmaceutical process development and manufacturing business. Biopharma
Sales in the second quarter 2006 decreased to $10.0 million from $11.7
million in the second quarter 2005 due to lower suite and material
reimbursement revenue partially offset by higher process development
revenues.
Second quarter 2006 Biopharma Adjusted Gross Margin decreased to -18.8%
from -3.8% in the second quarter 2005 due to lower sales volume and mix.
Second quarter 2006 Biopharma GAAP Gross Margin was -16.3% versus -5.2% in
the second quarter 2005.
The second quarter 2006 Biopharma Adjusted Operating Loss was $4.2
million versus $3.1 million in the second quarter 2005 primarily due to
lower gross profit. Second quarter 2006 Biopharma GAAP Operating Loss was
$3.9 million versus $3.3 million in the second quarter 2005. Foreign
currency did not impact the Biopharma segment financial results in the
quarter.
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 second
quarter 2006 increased 9.0% to $72.5 million from $66.5 million in the
second quarter 2005. Higher net sales volumes were partially offset by
lower pricing. Foreign currency impact to Human Health Sales revenue was
negligible in the quarter. Higher sales resulted from strong demand for a
recently approved API used to treat Parkinson's disease, an intermediate
for a central nervous system (CNS) API, and certain cardiovascular APIs,
partially offset by lower demand for a CNS and gastrointestinal API,
nicotine polacrilex and a new cardiovascular API for which the client is
awaiting regulatory approval.
Second quarter 2006 Human Health Adjusted Gross Margin decreased to
31.7% from 32.5% in the second quarter 2005 primarily due to an unfavorable
impact of foreign currency of 1.4 percentage points and lower pricing.
Second quarter 2006 Human Health GAAP Gross Margin was 31.9% versus 32.4%
in the second quarter 2005.
Second quarter 2006 Human Health Adjusted Operating Profit Margin
increased to 17.7% from 16.3% in the second quarter 2005 primarily due to
lower sales and marketing expenses partially offset by lower gross margins
and an unfavorable impact of foreign currency of 1.4 percentage points.
Second quarter 2006 Human Health GAAP Operating Profit Margin was 18.0%
versus 16.1% in the second quarter 2005.
Second Quarter 2006 Adjusted Consolidated Operating, Interest and Tax
Expenses
Second quarter 2006 Adjusted Operating Expenses increased $0.9 million
to $32.5 million, or 26.3% of sales, from $31.6 million, or 27.2% of sales,
in the second quarter 2005 primarily due to higher legal fees and bonus
expense partially offset by lower sales and marketing and R&D expense.
Second quarter 2006 GAAP Operating Expenses were $34.6 million, or 28.0% of
sales, versus $31.2 million, or 26.9% of sales, in the second quarter 2005.
Sales and Marketing Expense in the second quarter 2006 decreased to
$8.0 million, or 6.5% of sales, from $8.8 million, or 7.5% of sales in the
second quarter 2005, primarily due to lower spending in Human Health
resulting from a one-time charge recorded in 2005 related to a U.S. sales
office and lower bonus and commission expenses in Bioproducts.
Research and Development Expense for the second quarter 2006 decreased
to $5.5 million, or 4.5% of sales compared to $5.9 million, or 5.1% of
sales, in the second quarter 2005 due to the completion of certain R&D
projects for products that have been launched at the end of 2005 and in
2006 in the Bioproducts segment.
Adjusted Administrative Expense in the second quarter 2006 increased to
$18.6 million, or 15.0% of sales, from $16.3 million, or 14.1% of sales, in
the second quarter 2005 due to higher legal fees and bonus expense. Second
quarter 2006 GAAP Administrative Expense was $20.6 million, or 16.6% of
sales, versus $15.9 million, or 13.7% of sales, in the second quarter 2005.
Net Interest Expense in the second quarter 2006 decreased to $2.3
million from $2.8 million in the second quarter 2005 due to lower
borrowings partially offset with higher interest rates. The average
interest rate in the second quarter 2006 was 5.8% versus 5.4% in the same
period last year.
The Adjusted effective tax rate in the second quarter 2006 increased to
66.6% of pre-tax income versus 41.5% in the second quarter 2005 due to the
geographic mix of income and losses in the quarter. The GAAP effective tax
rate in the second quarter 2006 is 83.1% of pre-tax income versus -10.4% in
the second quarter 2005.
Capital expenditures and depreciation for the second quarter 2006 were
$9.1 million and $8.3 million, respectively, compared to $9.0 million and
$9.3 million in the second quarter 2005, respectively.
Guidance
The Company is providing full year 2006 guidance for sales growth to be
within the range of 4% to 8% and Adjusted (non-GAAP) Net Earnings to be in
the range of $0.75 to $0.95 per Fully Diluted Shares. The full year 2006
earnings guidance excludes the costs associated with the previously
announced pre- payment of a portion of the Company's long-term debt ($0.20
per diluted share), costs related to the recent acquisition of Cutanogen
($0.15 per diluted share) and costs related to the evaluation of strategic
alternatives to enhance shareholder value.
For the year 2006, guidance for capital expenditures, depreciation and
amortization for continuing operations is currently expected to be
approximately $45 million, $36 million, and $2.0 million, respectively. The
Company expects the full year 2006 effective tax rate, consistent with the
earnings guidance above, 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 financial information contained in this press release is unaudited,
subject to revision and should not be considered final until the second
quarter 2006 Form 10-Q is filed with the U.S. Securities and Exchange
Commission.
Cambrex Declares Quarterly Dividend
The Cambrex Board of Directors declared the Company's regular quarterly
cash dividend on its common stock of $0.03 per share for its shareholders
of record as of August 4, 2006. The dividend is payable on August 18, 2006.
Conference Call and Webcast
The Conference Call to discuss second quarter 2006 earnings will begin
at 8:30 a.m. Eastern Time on Friday, July 28, 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 pass code
1951509 and call approximately 10 minutes prior to start time. A webcast is
available from the Investor Relations section on the Cambrex website
located at http://www.cambrex.com and can be accessed for approximately a month
following the call. A telephone replay of the conference call will be
available through Friday, August 4, 2006 by calling 1-800-642-1687 for
domestic and +1-706-645-9291 for international. Please use the pass code
1951509 to 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, the Company may not receive regulatory
approval for its products, and the outcome of the evaluation of strategic
alternatives.
For further details and a discussion of these and other risks and
uncertainties, investors are cautioned to review the Cambrex 2005 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
Adjusted Statement of Profit and Loss - Non-GAAP*
For the Quarters Ended June 30, 2006 and 2005
(in thousands)
2006 2005
% of % of
Amount Sales Amount Sales
Gross Sales $123,577 100.0% $116,171 100.0%
Commissions and Allowances 274 0.2% 1,676 1.4%
Net Sales 123,303 99.8% 114,495 98.6%
Other Revenues 1,065 0.8% 2,251 1.9%
Net Revenue 124,368 100.6% 116,746 100.5%
Cost of Sales 82,252 66.5% 76,056 65.5%
Gross Profit 42,116 34.1% 40,690 35.0%
Operating Expenses
Sales and Marketing Expense 8,008 6.5% 8,747 7.5%
Research and Development Expense 5,439 4.4% 5,865 5.0%
Administrative Expense 18,598 15.0% 16,339 14.1%
Amortization 486 0.4% 668 0.6%
Total Operating Expenses 32,531 26.3% 31,619 27.2%
Operating Profit 9,585 7.8% 9,071 7.8%
Other Expenses
Interest - Other 2,295 1.8% 2,751 2.4%
Other Expense, net 94 0.1% (93) -0.1%
Total Other Expenses 2,389 1.9% 2,658 2.3%
Income Before Taxes 7,196 5.9% 6,413 5.5%
Income Tax Provision 4,791 3.9% 2,662 2.3%
Net Income $2,405 2.0% $3,751 3.2%
Basic Earnings per Share
Net Income $0.09 $0.14
Diluted Earnings per Share
Net Income $0.09 $0.14
Weighted Average Shares Outstanding
Basic 26,741 26,402
Diluted 26,791 26,510
* Refer to the GAAP to Adjusted (Non-GAAP) Reconciliation.
CAMBREX CORPORATION
Statement of Profit and Loss - GAAP
For the Quarters Ended June 30, 2006 and 2005
(in thousands)
2006 2005
% of % of
Amount Sales Amount Sales
Gross Sales $123,577 100.0% $116,171 100.0%
Commissions and Allowances 274 0.2% 1,676 1.4%
Net Sales 123,303 99.8% 114,495 98.6%
Other Revenues 1,065 0.8% 2,251 1.9%
Net Revenue 124,368 100.6% 116,746 100.5%
Cost of Sales 81,595 66.0% 76,476 65.8%
Gross Profit 42,773 34.6% 40,270 34.7%
Operating Expenses
Sales and Marketing Expense 7,993 6.5% 8,757 7.5%
Research and Development Expense 5,505 4.5% 5,881 5.1%
Administrative Expense 20,633 16.6% 15,893 13.7%
Amortization 486 0.4% 668 0.6%
Total Operating Expenses 34,617 28.0% 31,199 26.9%
Operating Profit 8,156 6.6% 9,071 7.8%
Other Expenses
Interest - Other 2,295 1.8% 2,751 2.4%
Other Expense, net 94 0.1% (93) -0.1%
Total Other Expenses 2,389 1.9% 2,658 2.3%
Income Before Taxes 5,767 4.7% 6,413 5.5%
Income Tax Provision/(Benefit) 4,791 3.9% (667) -0.6%
Net Income $976 0.8% $7,080 6.1%
Basic Earnings per Share
Net Income $0.04 $0.27
Diluted Earnings per Share
Net Income $0.04 $0.27
Weighted Average Shares Outstanding
Basic 26,741 26,402
Diluted 26,791 26,510
CAMBREX CORPORATION
Adjusted Statement of Profit and Loss - Non-GAAP*
For the Six Months Ended June 30, 2006 and 2005
(in thousands)
2006 2005
% of % of
Amount Sales Amount Sales
Gross Sales $243,184 100.0% $226,633 100.0%
Commissions and Allowances 1,173 0.5% 2,665 1.2%
Net Sales 242,011 99.5% 223,968 98.8%
Other Revenues 2,145 0.9% 4,711 2.1%
Net Revenue 244,156 100.4% 228,679 100.9%
Cost of Sales 156,463 64.3% 144,313 63.7%
Gross Profit 87,693 36.1% 84,366 37.2%
Operating Expenses
Sales and Marketing Expense 17,165 7.1% 16,746 7.4%
Research and Development Expense 9,956 4.1% 11,707 5.2%
Administrative Expense 36,809 15.1% 34,728 15.3%
Amortization 974 0.4% 1,207 0.5%
Total Operating Expenses 64,904 26.7% 64,388 28.4%
Operating Profit 22,789 9.4% 19,978 8.8%
Other Expenses
Interest - Other 4,376 1.8% 5,481 2.4%
Other Expense, net 116 0.0% 97 0.0%
Total Other Expenses 4,492 1.8% 5,578 2.4%
Income Before Taxes 18,297 7.6% 14,400 6.4%
Income Tax Provision 9,332 3.9% 6,559 2.9%
Net Income $8,965 3.7% $7,841 3.5%
Basic Earnings per Share
Net Income $0.34 $0.30
Diluted Earnings per Share
Net Income $0.33 $0.30
Weighted Average Shares Outstanding
Basic 26,701 26,373
Diluted 26,791 26,549
* Refer to the GAAP to Adjusted (Non-GAAP) Reconciliation.
CAMBREX CORPORATION
Statement of Profit and Loss - GAAP
For the Six Months Ended June 30, 2006 and 2005
(in thousands)
2006 2005
% of % of
Amount Sales Amount Sales
Gross Sales $243,184 100.0% $226,633 100.0%
Commissions and Allowances 1,173 0.5% 2,665 1.2%
Net Sales 242,011 99.5% 223,968 98.8%
Other Revenues 2,145 0.9% 4,711 2.1%
Net Revenue 244,156 100.4% 228,679 100.9%
Cost of Sales 156,463 64.3% 145,147 64.0%
Gross Profit 87,693 36.1% 83,532 36.9%
Operating Expenses
Sales and Marketing Expense 17,165 7.1% 16,765 7.4%
Research and Development Expense 11,493 4.7% 11,739 5.2%
Administrative Expense 39,166 16.1% 33,843 15.0%
Amortization 974 0.4% 1,207 0.5%
Total Operating Expenses 68,798 28.3% 63,554 28.1%
Operating Profit 18,895 7.8% 19,978 8.8%
Other Expenses
Interest - Other 9,648 4.0% 5,481 2.4%
Other Expense, net 116 0.0% 97 0.0%
Total Other Expenses 9,764 4.0% 5,578 2.4%
Income Before Taxes 9,131 3.8% 14,400 6.4%
Income Tax Provision 9,332 3.9% 3,230 1.5%
(Loss)/Earnings before Cumulative
Effect of a
Change in Accounting Principle $(201) -0.1% $11,170 4.9%
Cumulative Effect of a Change in
Accounting Principle (228) -0.1% - 0.0%
Net (Loss)/Income $(429) -0.2% $11,170 4.9%
Basic Earnings per Share
(Loss)/Earnings before Cumulative
Effect of a
Change in Accounting
Principle $(0.01) $0.42
Cumulative Effect of a Change in
Accounting Principle $(0.01) $ -
Net (Loss)/Income $(0.02) $0.42
Diluted Earnings per Share
(Loss)/Earnings before Cumulative
Effect of a
Change in Accounting
Principle $(0.01) $0.42
Cumulative Effect of a Change in
Accounting Principle $(0.01) $ -
Net (Loss)/Income $(0.02) $0.42
Weighted Average Shares Outstanding
Basic 26,701 26,373
Diluted 26,701 26,549
CAMBREX CORPORATION
Gross Sales, Gross Profit & Operating Profit by Segment
For the Quarters Ended June 30, 2006 and 2005
(in thousands)
Second Quarter 2006
Adjusted
Gross
Gross Gross Profit -
Sales Profit GP% Non-GAAP*
Bioproducts $41,073 $21,261 51.8% $20,985
Biopharma 10,010 (1,631) -16.3% (1,878)
Human Health 72,494 23,143 31.9% 23,009
Corporate - - -
Total $123,577 $42,773 34.6% $42,116
Adjusted
Operating
Adjusted Operating Profit Adjusted
GP%- Profit/ (loss) OP%-
Non- (loss) OP% Non- Non-
GAAP* GAAP GAAP GAAP* GAAP*
Bioproducts 51.1% $8,166 19.9% $7,819 19.0%
Biopharma -18.8% (3,898) -38.9% (4,169) -41.6%
Human Health 31.7% 13,016 18.0% 12,814 17.7%
Corporate (9,128) (6,879)
Total 34.1% $8,156 6.6% $9,585 7.8%
Second Quarter 2005
Adjusted
Gross
Gross Gross Profit -
Sales Profit GP% Non-GAAP*
Bioproducts $37,990 $19,336 50.9% $19,512
Biopharma 11,655 (606) -5.2% (443)
Human Health 66,526 21,540 32.4% 21,621
Corporate - -
Total $116,171 $40,270 34.7% $40,690
Adjusted
Operating
Adjusted Operating Profit Adjusted
GP%- Profit/ (loss)- OP%-
Non- (loss)- OP% Non- Non-
GAAP* GAAP GAAP GAAP* GAAP*
Bioproducts 51.4% $5,829 15.3% $6,109 16.1%
Biopharma -3.8% (3,265) -28.0% (3,086) -26.5%
Human Health 32.5% 10,721 16.1% 10,846 16.3%
Corporate (4,214) (4,798)
Total 35.0% $9,071 7.8% $9,071 7.8%
Gross Sales Comparison
2Q06 2Q05
Gross Gross Change Change
Sales Sales $ %
Bioproducts $41,073 $37,990 $3,083 8.1%
Biopharma 10,010 11,655 (1,645) -14.1%
Human Health 72,494 66,526 5,968 9.0%
Total $123,577 $116,171 $7,406 6.4%
* Refer to the GAAP to Adjusted (Non-GAAP) Reconciliation.
CAMBREX CORPORATION
Gross Sales, Gross Profit & Operating Profit by Segment
For the Six Months Ended June 30, 2006 and 2005
(in thousands)
Six Months 2006
Adjusted Adjusted
Gross GP%-
Gross Gross Profit - Non-
Sales Profit GP% Non-GAAP* GAAP*
Bioproducts $82,414 $44,128 53.5% $44,128 53.5%
Biopharma 23,814 (618) -2.6% (618) -2.6%
Human Health 136,956 44,183 32.3% 44,183 32.3%
Corporate - - -
Total $243,184 $87,693 36.1% $87,693 36.1%
Adjusted Adjusted
Operating Operating OP%-
Profit/(loss)- OP% Profit/(loss)- Non-
GAAP GAAP Non-GAAP* GAAP*
Bioproducts $15,034 18.2% $16,571 20.1%
Biopharma (5,360) -22.5% (5,360) -22.5%
Human Health 24,609 18.0% 24,609 18.0%
Corporate (15,388) (13,031)
Total $18,895 7.8% $22,789 9.4%
Six Months 2005
Adjusted Adjusted
Gross GP%-
Gross Gross Profit - Non-
Sales Profit GP% Non-GAAP* GAAP*
Bioproducts $77,909 $41,471 53.2% $41,818 53.7%
Biopharma 19,362 (2,663) -13.8% (2,339) -12.1%
Human Health 129,362 44,724 34.6% 44,887 34.7%
Corporate - - -
Total $226,633 $83,532 36.9% $84,366 37.2%
Adjusted Adjusted
Operating Operating OP%-
Profit/(loss)- OP% Profit/(loss)- Non-
GAAP GAAP Non-GAAP* GAAP*
Bioproducts $15,475 19.9% $16,033 20.6%
Biopharma (8,177) -42.2% (7,818) -40.4%
Human Health 23,030 17.8% 23,271 18.0%
Corporate (10,350) (11,508)
Total $19,978 8.8% $19,978 8.8%
Gross Sales Comparison
2006 2005
Gross Gross Change Change
Sales Sales $ %
Bioproducts $82,414 $77,909 $4,505 5.8%
Biopharma 23,814 19,362 4,452 23.0%
Human Health 136,956 129,362 7,594 5.9%
Total $243,184 $226,633 $16,551 7.3%
* Refer to the GAAP to Adjusted (Non-GAAP) Reconciliation.
CAMBREX CORPORATION
GAAP to Adjusted (Non-GAAP) Reconciliation - Net Income
For the Quarters and Six Months Ended June 30, 2006 and 2005
Second Quarter Second Quarter
2006 2005
Net Diluted Net Diluted
Income EPS Income EPS
Net Income - GAAP $976 $0.04 $7,080 $0.27
Evaluation of strategic alternatives
(Admin. Expense) 1,337 0.05 - -
Cutanogen related costs
(recorded in R&D Expense) 92 0.00 - -
Benefit from Swedish Tax Item
(Tax Provision) - - (3,329) (0.13)
Adjusted Net Income - Non-GAAP $2,405 $0.09 $3,751 $0.14
Six Months 2006 Six Months 2005
Net Diluted Net Diluted
(Loss)/Income EPS Income EPS
(Loss)/Earnings before Cumulative
Effect of a change
in Accounting Principle $(201) $(0.01) $11,170 $0.42
Evaluation of strategic alternatives
(Admin. Expense) 2,357 0.09 - -
Cutanogen milestone and related costs
(R&D Expense) 1,537 0.06 - -
Senior note prepayment expenses
(Interest Expense) 5,272 0.20 - -
Benefit from Swedish Tax Item
(Tax Provision) - - (3,329) (0.13)
Adjusted Net Income - Non-GAAP $8,965 $0.33 $7,841 $0.30
Note: The cumulative effect of a change in accounting principle reflects
the implementation of FAS 123(R). Under FAS 123(R), the Company is now
required to measure stock appreciation rights (SAR's) at fair market
value.
CAMBREX CORPORATION
GAAP to Adjusted (Non-GAAP) Reconciliation - Operating Profit by Segment
For the Quarters and Six Months Ended June 30, 2006 and 2005
Second Quarter 2006
Human
Bioproducts Biopharma Health Corporate Total
Operating Profit -
As Reported $8,166 $(3,898) $13,016 $(9,128) $8,156
Evaluation of strategic
alternatives - - - 1,337 1,337
Cutanogen related costs 92 - - - 92
Change in allocation
methodology (439) (271) (202) 912 -
Adjusted Operating Profit -
Non-GAAP $7,819 $(4,169) $12,814 $(6,879) $9,585
Second Quarter 2005
Human
Bioproducts Biopharma Health Corporate Total
Operating Profit -
As Reported $5,829 $(3,265) $10,721 $(4,214) $9,071
Change in allocation
methodology 280 179 125 (584) -
Adjusted Operating Profit -
Non-GAAP $6,109 $(3,086) $10,846 $(4,798) $9,071
Six Months 2006
Human
Bioproducts Biopharma Health Corporate Total
Operating Profit -
As Reported $15,034 $(5,360) $24,609 $(15,388) $18,895
Evaluation of strategic
alternatives - - - 2,357 2,357
Cutanogen milestone and
related costs 1,537 - - - 1,537
Adjusted Operating Profit -
Non-GAAP $16,571 $(5,360) $24,609 $(13,031) $22,789
Six Months 2005
Human
Bioproducts Biopharma Health Corporate Total
Operating Profit -
As Reported $15,475 $(8,177) $23,030 $(10,350) $19,978
Change in allocation
methodology 558 359 241 (1,158) -
Adjusted Operating Profit -
Non-GAAP $16,033 $(7,818) $23,271 $(11,508) $19,978
Note: The change in allocation methodology reflects certain medical
benefit expenses in second quarter 2006 Non-GAAP, six months 2006 GAAP and
2005 Non-GAAP results that were reclassified from operating segments to
Corporate Administrative Expense to better reflect costs reported in the
operating segments.
CAMBREX CORPORATION
GAAP to Adjusted (Non-GAAP) Reconciliation - Operating Expenses
For the Quarters and Six Months Ended June 30, 2006 and 2005
Second Quarter
2006 2005
Operating Expenses - GAAP $34,617 $31,199
Evaluation of strategic alternatives (1,337) -
Cutanogen related costs (92) -
Change in allocation methodology (657) 420
Adjusted Operating Expenses - Non-
GAAP $32,531 $31,619
Six Months
2006 2005
Operating Expenses - GAAP $68,798 $63,554
Evaluation of strategic alternatives (2,357) -
Cutanogen milestone and related costs (1,537) -
Change in allocation methodology - 834
Adjusted Operating Expenses - Non-
GAAP $64,904 $64,388
Note: The change in allocation methodology reflects certain medical
benefit expenses in second quarter 2006 Non-GAAP, six months 2006 GAAP
and 2005 Non-GAAP results that were reclassified from operating segments
to Corporate Administrative Expense to better reflect costs reported in
the operating segments.
CAMBREX CORPORATION
GAAP to Adjusted (Non-GAAP) Reconciliation - Administrative Expense
For the Quarters and Six Months Ended June 30, 2006 and 2005
Second Quarter
2006 2005
Administrative Expense - GAAP $20,633 $15,893
Evaluation of strategic alternatives (1,337) -
Change in allocation methodology (698) 446
Adjusted Administrative Expense -
Non-GAAP $18,598 $16,339
Six Months
2006 2005
Administrative Expense - GAAP $39,166 $33,843
Evaluation of strategic alternatives (2,357) -
Change in allocation methodology - 885
Adjusted Administrative Expense -
Non-GAAP $36,809 $34,728
Note: The change in allocation methodology reflects certain medical
benefit expenses in second quarter 2006 Non-GAAP, six months 2006 GAAP
and 2005 Non-GAAP results that were reclassified from operating segments
to Corporate Administrative Expense to better reflect costs reported in
the operating segments.
CAMBREX CORPORATION
Consolidated Balance Sheet
As of June 30, 2006 and December 31, 2005
(in thousands)
June 30, December 31,
Assets 2006 2005
Cash and Cash Equivalents $30,283 $45,932
Trade Receivables, net 74,314 74,425
Inventories, net 110,452 93,617
Other Current Assets 15,746 15,552
Total Current Assets 230,795 229,526
Property, Plant and Equipment, Net 240,052 229,410
Goodwill and Other Intangibles 149,763 147,551
Other Non-Current Assets 5,469 5,985
Total Assets $626,079 $612,472
Liabilities and Stockholders' Equity
Trade Accounts Payable $37,790 $38,813
Accrued Expenses and Other Current
Liabilities 49,567 51,819
Short-term Debt and Current Portion
of Long-term Debt 1,782 1,514
Total Current Liabilities 89,139 92,146
Long-term Debt 186,020 186,819
Deferred Tax Liabilities 29,160 28,543
Other Non-Current Liabilities 63,537 61,713
Total Liabilities $367,856 $369,221
Stockholders' Equity $258,223 $243,251
Total Liabilities and Stockholders'
Equity $626,079 $612,472
SOURCE Cambrex Corporation
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Related links:
http://www.cambrex.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20000613/CAMBREXLOGO
/ AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
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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