Medicis Announces Fiscal 2003 Guidance
SCOTTSDALE, Ariz.--June 13, 2002--Medicis (NYSE:MRX) today announced revenue and earnings guidance for Fiscal 2003. The Company's 2003 fiscal year begins on July 1, 2002. Additionally, to be compliant with full disclosure regulations and to assist shareholders and analysts in the preparation of their upcoming fiscal year's revenue and earnings expectations, the Company is providing its Fiscal 2003 guidance in both a press release and a conference call. The focus of the conference call is to answer questions relating to the Fiscal 2003 guidance provided in this release. Conference call access details were issued via a press release on Tuesday, June 11, 2002.
At the time of this disclosure, Medicis believes stated objectives are attainable based upon information currently available to the Company. The Company's business is subject to all risk factors outlined in the Company's Form 10-K and other publicly filed documents, including significant competition within the Company's industry. At the time of this release, the Company cannot, among other things, assess the forthcoming results of the Company's research and development projects and the risks associated with the FDA approval process; the timing and/or certainty of potential acquisitions of products, businesses or technologies; nor can the Company validate its assumptions of the full impact on its business of approval of generic versions of the Company's core brands, or any future competitive product approvals that may affect the Company's brands. Based upon the information currently available to the Company at the time of this disclosure, the Company's guidance is as follows:
Fiscal Year 2003
ending June 30, 2003
First Second Third Fourth Fiscal
Quarter Quarter Quarter Quarter Year
(9/30/02) (12/31/02) (3/31/03) (6/30/03) 2003
--------- ---------- --------- --------- -------
Estimated revenue
objectives $58 mil. $59 mil. $62 mil. $65 mil. $244 mil.
Estimated EPS
objectives $0.53 $0.53 $0.56 $0.62 $2.24
The Company anticipates for Fiscal 2003 gross profit margins of approximately 82-83% of total revenues. Operating income margins for Fiscal 2003 are expected to be consistent with Fiscal 2002 to date at approximately 39-41% of total revenues. Net income margins for Fiscal 2003 are expected to be at approximately 27-29% of total revenues, also consistent with Fiscal 2002 performance to date. Weighted average shares outstanding for Fiscal 2003 is expected to be approximately 30 to 31 million shares, but is dependent upon the Company's stock price in any given quarter. Additionally, the above guidance does not include the potential impact of other components of the Company's growth strategy, including possible future acquisitions of products, businesses and/or technologies and the launch of products from the Company's development program.
Medicis is a specialty pharmaceutical company and a leading independent pharmaceutical company in the United States focusing primarily on the treatment of dermatological, pediatric and podiatric conditions. Medicis develops and markets leading products for major segments within dermatology, including acne, fungal infections, rosacea, hyperpigmentation, photoaging, psoriasis, eczema, skin and skin-structure infections, seborrheic dermatitis, head lice and cosmesis (improvement in the texture and appearance of skin). Ascent Pediatrics, Inc., the Company's wholly owned subsidiary, markets leading pediatric products for the treatment of asthma and other respiratory inflammatory conditions; acute otitis media, or middle ear infections; and an over-the-counter saline nasal mist.
The Company's brands include the prescription brands DYNACIN(R) (minocycline HCl), LOPROX(R) (ciclopirox), LUSTRA(R) (hydroquinone), LUSTRA-AF(R) (hydroquinone) with sunscreen, ALUSTRA(TM) (hydroquinone) with retinol, PLEXION(R) Cleanser (sodium sulfacetamide/sulfur), PLEXION TS(TM) (sodium sulfacetamide/sulfur), PLEXION SCT(TM) (sodium sulfacetamide/sulfur), TRIAZ(R) (benzoyl peroxide), OMNICEF(R) (cefdinir), ORAPRED(R) (prednisolone sodium phosphate), OVIDE(R) (malathion), LIDEX(R) (fluocinonide), SYNALAR(R) (fluocinolone acetonide) and TOPICORT(R) (desoximetasone); the over-the-counter brand ESOTERICA(R); and BUPHENYL(R) (sodium phenylbutyrate), a prescription product indicated in the treatment of Urea Cycle Disorder.
Except for historical information, this press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act. All statements included in this press release that address activities, events or developments that Medicis expects, believes or anticipates will or may occur in the future are forward-looking statements. This includes earnings estimates, future financial performance and other matters. These statements are based on certain assumptions made by Medicis based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. The Company cannot validate its assumptions of the full impact on its business of the approval of competitive generic versions of the Company's core brands, or any future competitive product approvals that may affect the Company's brands. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Medicis. Any such projections or statements include the current views of Medicis with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such results will be achieved and there are a number of important factors that could cause actual results to differ materially from those projected, including the ability of Medicis to successfully integrate Ascent's operations, the ability to realize anticipated synergies and benefits of the transaction, the risks and uncertainties normally incident to the pharmaceutical industry, dependence on sales of key products, the uncertainty of future financial results and fluctuations in operating results, dependence on Medicis' strategy including the uncertainty of license payments and/or other payments due from third parties, the timing and success of new product introductions and other risks described from time to time in Medicis' SEC filings including its Annual Report on Form 10-K for the year ended June 30, 2001. In addition, Medicis recently sold $400 million of 2.5% Contingent Convertible Notes Due 2032. There can be no assurance as to when or if any of the Notes will be converted, and what impact the increase in the number of shares outstanding will have on our results of operations. Forward-looking statements represent the judgment of Medicis' management as of the date of this release, and Medicis disclaims any intent or obligation to update any forward-looking statements.
NOTE: Full prescribing information for any Medicis prescription product is available by contacting the Company. OMNICEF(R) is a registered trademark of Abbott Laboratories, Inc. under a license from Fujisawa Pharmaceutical Co., Ltd. All other marks (or brands) and names are the property of Medicis or its affiliates.
Contacts: Medicis, Scottsdale Libby Ivy, 602/808-3854 www.medicis.com