EATONTOWN, N.J., Feb. 18 /PRNewswire/ -- Roberts Pharmaceutical
Corporation (Amex: RPC) today reported financial results for the fourth-
quarter and twelve-months ended December 31, 1997.
Fourth-quarter 1997 revenues were $37.3 million, a gain of 15% over the
$32.4 million reported for the fourth-quarter of 1996.
Reflecting the addition of new, higher margin products, Agrylin(TM) and
ProAmatine(R), gross profits in the fourth-quarter of 1997 increased to
$24.5 million from $15.4 million in the comparable period of 1996. This
represented a year-to-year improvement in the quarterly gross profit margin to
65.7% from 47.5%.
Additionally, fourth-quarter 1997 operating income advanced by $2.3
million to a profit of $941,000 from a loss of $1.4 million in the comparable
period of 1996. Fourth-quarter 1997 operating income included a $7.4 million
investment in the product development pipeline, bringing full-year R&D to over
10% of 1997 revenues, and an improvement in SG&A expenses to 43.5% of fourth-
quarter 1997 revenues, down from 48.4% in the comparable period of 1996.
Cost savings from operating efficiencies plus tax benefits realized in the
fourth-quarter of 1997 contributed to a net income of $3.3 million. This
compared to a fourth-quarter 1996 net income of $208,000 from continuing
operations and excluding a $25.4 million write-off of intangible assets.
Correspondingly, per share earnings in the fourth-quarter of 1997 amounted to
$0.11 compared to a fourth-quarter 1996 loss of $0.03 from continuing
operations, net of preferred stock dividend and excluding intangible asset
write-offs.
For the twelve-month period ended December 31, 1997, revenues increased
24.9% to $122.5 million from $98.1 million in 1996.
Revenues in 1997 did not include sales of divested non-strategic products
which had contributed nearly $3.0 million to 1996 revenues. Sales of the new
products, ProAmatine and Agrylin, collectively represented about 16% of 1997
revenues with Agrylin having been launched late in the first quarter of the
year. Wholesaler pipeline fill of ProAmatine in the last of quarter of 1996
had contributed about $3.0 million to 1996 revenues.
Operating income for the year 1997 strengthened by $12.1 million to a loss
of $762,000 from a loss of $12.9 million in 1996. This improvement in 1997
operating income included a first quarter payment of $1 million for purchased
research which, previously capitalized as an intangible asset, has been
expensed to R&D, reducing earnings attributable to the first-quarter of 1997
to $0.02 per share from $0.04 per share.
For the full-year 1997, net income increased substantially to $2.5 million
from a 1996 loss of $8.9 million from continuing operations, excluding $25.4
million intangible asset write-offs. Per share earnings were $0.06 for the
full-year 1997 compared to a 1996 loss of $0.53 from continuing operations,
net of preferred stock dividends and excluding intangible asset write-offs.
As of December 31, 1997, the Company's position of cash, cash equivalents
and marketable securities amounted to $82.8 million. At that time, total
long-term debt, including current installments, stood at $18.4 million. Total
shareholders' equity on December 31, 1997 was $317.3 million.
Roberts Pharmaceutical Corporation, with operating subsidiaries in the
United States, Canada and the United Kingdom, focuses on licensing, acquiring,
developing and commercializing innovative pharmaceuticals.
This and past press releases of Roberts Pharmaceutical Corporation are
available through PR Newswire's Company News On-Call fax service at
1-800-758-5804, extension 760975 and on the internet at
http://www.prnewswire.com and http://www.robertspharm.com.
This release may contain forward-looking statements which reflect
management's current views of future events and operations. These
forward-looking statements are based on assumptions and external factors,
including assumptions relating to regulatory action, competing products, and
unaudited financial data. Any changes in such assumptions or external factors
could produce significantly different results.
ROBERTS PHARMACEUTICAL CORPORATION
FINANCIAL HIGHLIGHTS OPERATIONS
(in millions, except per share data)
(unaudited)
For the twelve months For the three months
ended Dec. 31, ended Dec. 31,
1997 1996 1997 1996
Total revenue $122.5 $98.1 $37.3 $32.4
Gross profit 71.1 48.4 24.5 15.4
Operating expenses 71.9 61.3 23.6 16.8
Operating income (loss) (0.8) (12.9) 0.9 (1.4)
Other income
(expenses) (net) 2.2 1.3 1.2 1.8
Income (loss) before taxes 1.4 (11.6) 2.1 0.4
Provision (benefit)
for taxes (1.1) (2.7) (1.2) 0.2
Net income from
continuing operations 2.5 (8.9) 3.3 0.2
Write-off & sale of
intangible assets (25.4) (25.4)
Discontinued operations 0.0 0.6 0.0 (3.4)
Net income (loss) $2.5 ($33.7) $3.3 ($28.6)
Per share net income (loss):
Continuing operations $0.06 ($0.53) $0.11 ($0.03)
Write-off & sale of
intangible assets ($1.33) ($1.25)
Issuance of Preferred
Stock at a discount ($0.61) ($0.39)
Discontinued operations $0.00 $0.03 $0.00 ($0.16)
Net income (loss) $0.06 ($2.44) $0.11 ($1.83)
Weighted average number of
common shares
and equivalents (000's) 29,497 19,133 29,446 20,288
Balance sheet items as of December 31, 1997
Cash and marketable securities $82.8
Long-term debt 18.4
Total shareholders' equity 317.3
SOURCE Roberts Pharmaceutical Corporation
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CONTACT:
Stuart Z. Levine, Ph.D., Director of Investor
Relations of Roberts Pharmaceutical, 732-389-1182, ext. 3064
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
760975
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