Medicis Reports Record Fourth Quarter and Fiscal Year Financial Results
SCOTTSDALE, Ariz.--Aug. 23, 2000--Medicis Pharmaceutical Corporation (NYSE:MRX) today announced fiscal 2000 net income of $43.0 million, or $1.41 per diluted share, on net revenues of $139.1 million, versus fiscal 1999 comparative net income of $32.9 million, or $1.12 per diluted share, on net revenues of $97.5 million. Fiscal 1999 results exclude revenue and income associated with product divestitures and special charges. Absent revenues associated with the divested brands, fiscal 2000 net revenue increased approximately 41% as compared to fiscal 1999.
The Company also reported fourth-quarter fiscal 2000 net income of $11.8 million, or $0.38 per diluted share, on net revenues of $39.0 million, versus fourth-quarter fiscal 1999 comparative net income of $10.2 million, or $0.35 per diluted share, on net revenues of $32.1 million. Fourth-quarter fiscal 1999 results exclude revenue and income associated with product divestitures. Absent revenues associated with the divested brands, fourth-quarter fiscal 2000 net revenues increased approximately 25% as compared to fourth-quarter fiscal 1999.
The strong fiscal year and fourth quarter operating results are attributable primarily to the growth of the Company's core prescription brands. During fiscal 2000, prescription volume growth in the Company's core brands, DYNACIN(R), LUSTRA(R), LOPROX(R) and TRIAZ(R) was nearly 40 percent. Additionally, during the fiscal year, Medicis introduced three new products from its research and development pipeline, LOPROX(R) Gel, PLEXION(TM) and TRIAZ(R) 3%.
Fiscal 1999 revenues included $19.3 million of sales from products divested. Absent management's estimate of the net income associated with the divested products, the tax-effected gain on the divestiture of such brands and the tax-effected charge for in-process research and development associated with the acquisition of LOPROX(R), TOPICORT(R) and A/T/S(R), net income for fiscal 1999 was approximately $32.9 million, or $1.12 per diluted share. Inclusive of all special adjustments, Medicis reported fiscal 1999 net revenues of $116.9 million, with net income of $41.4 million, or $1.41 per diluted share.
"We are pleased to announce another record quarter and fiscal year financial results," said Jonah Shacknai, Chairman and Chief Executive Officer of Medicis. "In fiscal 2000, we again executed our four-part growth strategy. Our sales and marketing organization increased prescription growth of our core prescription brands nearly forty percent, while our research and development team launched three new products from our robust pipeline. We enter a new fiscal year with great enthusiasm for our recently announced collaboration with Corixa on an exciting and novel psoriasis treatment and reaffirm our commitment to become the nation's premier dermatology concern."
Medicis is the leading independent pharmaceutical company in the United States focusing primarily on the treatment of dermatological conditions. Medicis develops and markets leading products for major segments within dermatology including acne, fungal infections, psoriasis, eczema, rosacea, seborrheic dermatitis, head lice and cosmesis (improvement in the texture and appearance of skin). Primary products include the prescription brands DYNACIN(R) (minocycline HCl), TRIAZ(R) (benzoyl peroxide), LUSTRA(R) (hydroquinone), LOPROX(R) (ciclopirox), OVIDE(R) (malathion), PLEXION(TM) (sodium sulfacetamide/sulfur), LIDEX(R) (fluocinonide), SYNALAR(R) (fluocinolone acetonide), TOPICORT(R) (desoximetasone), NOVACET(R) (sodium sulfacetamide/sulfur) and A/T/S(R) (erythromycin); the over-the-counter brand ESOTERICA(R); and BUPHENYL(TM) (sodium phenylbutyrate), a prescription product indicated in the treatment of Urea Cycle Disorder.
Except for historical information, this news release contains certain forward-looking statements that involve risks and uncertainties which may cause actual results to differ materially from the statements made, including the Company's dependence on sales of key products, uncertainty of future financial results and fluctuations in operating results, dependence on the Company's acquisition strategy, new product introductions and other risks described from time to time in the Company's SEC filings. These forward-looking statements represent the judgment of the Company, as of the date of this release, and Medicis disclaims any intent or obligation to update these forward-looking statements.
NOTE: Full prescribing information for any Medicis prescription product is available by contacting the Company.
Medicis Pharmaceutical Corporation
(in thousands, except per share data)
Summary Statements of Operations
--------------------------------
Three Months Ended Year Ended
June 30, June 30,
-------------------- --------------------
2000 1999 2000 1999
-------------------- --------------------
Revenues $ 39,027 $ 33,892 $ 139,099 $ 116,871
Cost of sales 7,364 6,587 25,911 21,635
--------- --------- --------- ---------
Gross profit 31,663 27,305 113,188 95,236
Operating expenses:
Selling, general
and administrative 14,008 11,030 45,404 38,219
Research and
development 1,465 1,482 4,903 3,396
Depreciation and
amortization 1,898 1,931 7,375 5,810
--------- --------- --------- ---------
Total operating
expenses 17,371 14,443 57,682 47,425
--------- --------- --------- ---------
In-process research
and development -- -- -- 9,500
--------- --------- --------- ---------
Operating income 14,292 12,862 55,506 38,311
Interest income, net 3,637 2,055 11,875 9,678
Gain on sale of assets -- 10,515 -- 17,650
Income tax expense (6,119) (9,240) (24,387) (24,202)
--------- --------- --------- ---------
Net income $ 11,810 $ 16,192 $ 42,994 $ 41,437
========= ========= ========= =========
Basic net income per
common share $ 0.40 $ 0.57 $ 1.48 $ 1.46
========= ========= ========= =========
Diluted net income
per common share $ 0.38 $ 0.55 $ 1.41 $ 1.41
========= ========= ========= =========
Shares used in basic
net income per
common share 29,375 28,645 29,029 28,414
Shares used in
diluted net income
per common share 31,079 29,343 30,499 29,462
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Absent tax-effected special adjustments for in-process R&D,
management's estimate of net income associated with divested products
and gain on sale of divested products:
Net income $ 11,810 $ 10,165 $ 42,994 $ 32,893
======== ======== ======== ========
Basic net income per
common share $ 0.40 $ 0.35 $ 1.48 $ 1.16
======== ======== ======== ========
Diluted net income
per common share $ 0.38 $ 0.35 $ 1.41 $ 1.12
======== ======== ========= ========
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Balance Sheets
--------------
At June 30, At June 30,
2000 1999
----------- -----------
Assets
Cash and short-term investments $285,737 $237,304
Other current assets 65,551 98,288
-------- --------
Total current assets 351,288 335,592
Property and equipment, net 1,759 1,705
Intangible assets, net 141,182 128,976
Other assets 1,110 1,237
-------- --------
Total assets $495,339 $467,510
======== ========
Liabilities and stockholders' equity
Current liabilities $ 38,987 $ 56,980
Deferred tax liabilities 4,000 1,935
Other non-current liabilities -- 130
Long-term obligations 14,913 34,717
Stockholders' equity 437,439 373,748
-------- --------
Total liabilities and stockholders'
equity $495,339 $467,510
======== ========
Working capital $312,301 $278,612
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Contacts: Medicis Pharmaceutical Corporation, Scottsdale Libby Ivy, 602/808-3854 www.medicis.com