EATONTOWN, N.J., Oct. 22 /PRNewswire/ -- Roberts Pharmaceutical
Corporation (Amex: RPC) today reported strong year-to-year improvements in
revenues and profits for the third quarter and nine months ended
September 30, 1998. Roberts said that per share earnings for the third
quarter of 1998 amounted to $0.15 compared to the recent First Call(R)
consensus estimate of $0.11.
Third-quarter 1998 revenues increased 49% to $42.7 million from
$28.6 million in the comparable period of 1997.
The year-to-year improvement in quarterly revenues included strong advances in
sales of ProAmatine(R) and Agrylin(R), Roberts' first two pipeline drugs which
were introduced in 1997 as the only FDA cleared drugs for orthostatic
hypotension and essential thrombocythemia, respectively.
Third-quarter 1998 revenues also included contributions from Pentasa(R), a
treatment for ulcerative colitis which Roberts acquired and began marketing in
the US during the second quarter of this year.
Supported by the shift in product mix towards new higher margin products,
the gross profit margin for the three months ended September 30, 1998
increased to 64.6% from 51.0% in the same period of 1997.
Additionally, the third quarter of 1998 benefited from the Company's
ongoing focus on enhancing its operating efficiencies. Roberts said that
selling, general, and administration expenses (SG&A) in the quarter amounted
to $15.7 million compared to $15.5 million in the third quarter of 1997,
representing a significant year-to-year decline in SG&A as a percent of
revenues to 36.8% from 54.2%.
Quarterly operating income increased by over $12 million year-to-year to
$9.1 million through the third quarter of 1998 from a loss of $3.0 million in
the third quarter of 1997.
Net income was reported at $4.7 million or $0.15 per share for the third
quarter of 1998 compared to a loss of $3.0 million or $0.11 in the third
quarter of 1997.
For the nine months ended September 30, 1998, revenues from operations
increased by 40.6% to $119.9 million from $85.3 million in the first nine
months of 1997.
Roberts said the year-to-year advance in nine month revenues reflected
across the board strength in all its subsidiaries with double digit growth
rates recognized by its US, Canadian and UK operations.
Based on a year-to-year comparison, sales of Agrylin more than doubled
during the first nine months of 1998 and sales of ProAmatine more than
tripled. Nine-month 1998 revenues also benefited significantly from Pentasa,
although the product was acquired in April 1998 and thus contributed to
Roberts' revenues in only two of the past three quarters.
Additionally, Roberts said that despite the previously noted strong buy-in
of Pentasa inventory by wholesalers in the second quarter of 1998, the
product's sales from April through September of this year are well on track
with expectations of $40 million or more for the first twelve months of
Pentasa sales.
Gross profit margins improved to 63.8% for first nine months of 1998 from
54.6% in the comparable period of 1997. For the nine-month period ended
September 30, 1998 and in comparison to the first nine months of 1997,
operating income increased to $16.5 million from a loss of $1.7 million and
net income from operations rose to $10.2 million from a loss of $0.8 million.
Per share earnings for the first nine months of 1998 were $0.33 from
continuing operations compared to a loss of $0.05 in the same period of 1997.
Separately Roberts noted that as of this date, it has not received, in a
timely fashion, certain payments due the Company from its sale of VRG
International, a contract research business previously discontinued prior to
its sale in the second quarter of this year. Roberts said that this is not
material to its cash position and does not effect reported operating results.
Roberts has decided it is appropriate, at this time, for accounting purposes
to negate and thus reverse a second-quarter 1998 non-operating gain of
$0.04 per share related to the sale of this business. Earnings from
continuing operations for the second quarter of 1998 remain at $0.11 per share
as previously reported.
Roberts Pharmaceutical Corporation, with operating subsidiaries in the
United States, Canada and the United Kingdom, focuses on innovative and
value-added therapeutics for gastroenterology, cardiology, neurology,
oncology/hematology, and urology. Roberts actively pursues its strategy of
"Search & Develop" to identify and acquire novel drug candidates to advance
through late-stage development into the market while also pursuing
opportunities to acquire and bring commercially available specialty
pharmaceuticals to their full potential.
This and past press releases of Roberts Pharmaceutical Corporation are
available through PR Newswire's Company News On Call fax service at
800-758-5804, extension 760975 and through the internet at
http://www.prnewswire.com as well as the Company's home page at
http://www.robertspharm.com.
This release may contain 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,
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 nine months For the three months
ended Sept. 30, ended Sept. 30,
1998 1997 1998 1997
Total Revenues $ 119.9 $ 85.3 $ 42.7 $ 28.6
Gross profit 76.6 46.6 27.6 14.6
Operating expenses 60.1 48.3 18.5 17.6
Operating income (loss) 16.5 (1.7) 9.1 (3.0)
Other income (expenses),
net (0.4) 1.0 (2.1) (1.1)
Income (loss) before
taxes 16.1 (0.7) 7.0 (4.1)
Provision (benefit) for
taxes 5.9 0.1 2.3 (1.1)
Net income (loss) from
operations $ 10.2 $ (0.8) $ 4.7 $ (3.0)
Net per share income
(loss) from
operations $ 0.33 $ (0.05) $ 0.15 $ (0.11)
Weighted average number
of common shares and
equivalents (000's) 31,297 29,162 31,779 28,184
SOURCE Roberts Pharmaceutical Corporation
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Related links:
http://www.robertspharm.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 760975
CONTACT:
Stuart Z. Levine, Ph.D., Director of Investor
Relations of Roberts Pharmaceutical Corporation, 732-676-1200,
ext. 3064
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