EATONTOWN, N.J., Feb. 18 /PRNewswire/ -- Roberts Pharmaceutical
Corporation (Nasdaq: RPCX) today reported fourth-quarter and full-year results
for the periods ended December 31, 1996.
Based on continuing operations, fourth-quarter 1996 revenues were $32.4
million, a 49% gain over the $21.7 million reported for the third-quarter 1996
and matching the $32.6 million reported for final quarter of 1995. On a pro-
forma basis, before non-cash intangible write-offs and dispositions, fourth-
quarter 1996 net income from continuing operations was $208,000, a $3.3
million improvement over the third-quarter 1996 loss of $3.1 million and
equivalent to fourth-quarter 1995 net income of $205,000. Corresponding per
share earnings amounted to a profit of $0.01 in the fourth-quarter 1996
compared with a loss of $0.16 in the third-quarter 1996 and a $0.01 profit in
the final quarter of 1995. For the full-year ended December 31, 1996, total
revenues from continuing operations were $98.1 million compared to $113.4
million in 1995. Pro-forma net income for 1996 from continuing operations was
a loss of $0.46 per share compared with 1995 profits of $0.15 per share (see
attached pro-forma consolidated statements of operations).
In keeping with a strategy to focus greater resources on commercializing
its first two pipeline drugs, PROAMATINE (R) and AGRYLIN (TM), Roberts
divested certain nonstrategic products in the final quarter of 1996. As
previously indicated, the Company recorded a fourth-quarter 1996 non-cash
write-off of goodwill, primarily associated with these products and some other
minor brands and, to a lesser extent, with the prior discontinuation of non-
pharmaceutical subsidiaries. As a result of these non-cash write-offs,
Roberts expects to realize future income statement benefits by saving over
$1.0 million annually in amortization of goodwill.
In the fourth-quarter 1996, these non-cash, non-operational items
approximated a total of $28.0 million, net of taxes. For reporting purposes,
this had the effect of reducing the fourth-quarter 1996 pro-forma earnings of
$0.01 per share to a loss of $1.41 per share. For the comparable 1995
quarter, the Company reported a net loss of $0.69 per share after allowing for
losses from discontinued non-pharmaceutical subsidiaries. On a similar basis
and taking into account previously reported gains and losses associated with
the discontinued subsidiaries, Roberts recorded a full-year 1996 net loss of
$1.76 per share compared to a 1995 net loss of $1.30 per share (see attached
consolidated statements of operations, SEC Format).
On December 31, 1996, the Company's cash and marketable securities were
$94.9 million compared to $30.0 million at year-end 1995. Additionally,
during this twelve month period, total debt was reduced by 67% from $51.0
million to $17.0 million. Long-term debt on December 31, 1996 amounted to
$10.6 million.
Roberts Pharmaceutical Corporation is an international pharmaceutical
company focusing on the acquisition and development of late-stage drugs.
Roberts currently markets its products in seven countries and has operating
subsidiaries in the U.S., Canada, and the United Kingdom.
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 and competing products.
Any changes in such assumptions or external factors could produce
significantly different results.
ROBERTS PHARMACEUTICAL CORPORATION
Consolidated Balance Sheets
(in thousands)
(unaudited)
December 31, December 31,
1996 1995
ASSETS:
Current assets:
Cash and marketable securities $94,918 $30,006
Accounts receivable, net 30,791 26,918
Inventory 16,665 20,785
Other current assets 14,663 16,061
Total current assets 157,037 93,770
Fixed assets, net 14,945 15,681
Other assets 198,586 230,839
Total assets $370,568 $340,290
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Current installments of
long-term debt: $6,376 $34,809
Accounts payable 15,848 14,737
Dividends payable 679 0
Other current liabilities 27,261 32,236
Total current liabilities 50,164 81,782
Long term debt, excluding
current installments 10,639 16,183
Other liabilities 432 6,858
Shareholders' equity 309,333 235,467
Total liabilities and
shareholders' equity $370,568 $340,290
ROBERTS PHARMACEUTICAL CORPORATION
Consolidated Statements of Operations
Pro-Forma
(in thousands, except per share data)
(unaudited)
For the twelve months For the three months
ended December 31, ended December 31,
1996 1995 1996 1995
Sales and Revenue:
Sales $98,075 $113,380 $32,392 $32,556
Other Revenue 36 47 0 12
Total revenue 98,111 113,427 32,392 32,568
Cost of Sales 49,753 52,870 17,014 15,218
Gross profit 48,358 60,557 15,378 17,350
Operating expenses:
Research and development 4,008 6,108 1,067 779
Marketing and
administration 57,239 47,576 15,684 14,725
Total operating expenses 61,247 53,684 16,751 15,504
Operating income (loss) (12,889) 6,873 (1,373) 1,846
Interest income 2,907 2,050 1,727 532
Interest expense (1,750) (3,453) (153) (990)
Other income
(expense), net 187 49 198 8
Total other income
(expense) 1,344 (1,354) 1,772 (450)
Income (loss) before
income taxes (11,545) 5,519 399 1,396
Provision (benefit)
for income taxes (2,654) 2,816 191 1,191
Income (loss) from
operations (8,891) 2,703 208 205
Per share of common
stock, primary:
Income (loss) from
operations ($0.46) $0.15 $0.01 $0.01
Weighted average number
of common share
outstanding, primary 19,132,863 18,622,744 20,287,996 18,534,154
Note: Income from operations excludes intangible write-offs and
dispositions taken during 4th quarter 1996 as well as results from
discontinued operations.
ROBERTS PHARMACEUTICAL CORPORATION
Consolidated Statements Of Operations
SEC Format
(in thousands, except per share data)
(unaudited)
For the twelve months For the three months
ended December 31, ended December 31,
1996 1995 1996 1995
Sales and Revenue:
Sales $98,075 $113,380 $32,392 $32,556
Other Revenue 36 47 0 12
Total revenue 98,111 113,427 32,392 32,568
Cost of Sales 49,753 52,870 17,014 15,218
Gross profit 48,358 60,557 15,378 17,350
Operating expenses:
Research and
development 4,008 6,108 1,067 779
Marketing and
administration 57,239 47,576 15,684 14,725
Intangible write-offs
and dispositions 37,306 0 37,306 0
Total operating
expenses 98,553 53,684 54,057 15,504
Operating income
(loss) (50,195) 6,873 (38,679) 1,846
Interest income 2,907 2,050 1,727 532
Interest expense (1,750) (3,453) (153) (990)
Other income
(expense), net 187 49 198 8
Total other income
(expense) 1,344 (1,354) 1,772 (450)
Income (loss) before
income taxes (48,851) 5,519 (36,907) 1,396
Provision (benefit)
for income taxes (14,575) 2,816 (11,730) 1,191
Income (loss) from
continuing operations (34,276) 2,703 (25,177) 205
Income (loss) from
discontinued operations 556 (27,045) (3,413) (13,051)
Net income (loss) ($33,720) ($24,342) ($28,590) ($12,846)
Per share of common
stock, primary:
Income (loss) from
continuing operations (1.79) 0.15 (1.24) 0.01
Income (loss)
from discontinued
operations 0.03 (1.45) (0.17) (0.70)
Net income (loss) (1.76) (1.30) (1.41) (0.69)
Weighted average number
of common share outstanding,
primary 19,132,863 18,622,744 20,287,996 18,534,154
SOURCE Roberts Pharmaceutical Corporation
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CONTACT:
Stuart Z. Levine, Ph.D., Director of Investor
Relations of Roberts Pharmaceutical Corporation, 908-389-1182
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