Medicis Reports Record Fourth Quarter and Fiscal Year Financial Results
SCOTTSDALE, Ariz.--Aug. 23, 2001--Medicis Pharmaceutical Corporation (NYSE:MRX) today announced fiscal 2001 net income of $51.9 million, or $1.64 per diluted share, absent the first quarter tax-effected special charge of $11.5 million associated with a research project collaboration, on net revenues of $167.8 million, versus fiscal 2000 comparative net income of $43.0 million, or $1.41 per diluted share, on net revenues of $139.1 million. Fiscal 2001 net revenues increased approximately 20.6% as compared to fiscal 2000. Net income including the special charge associated with the research project collaboration was $40.4 million, or $1.28 per diluted share. Cash flow from operations for the fiscal year was $70.6 million, an increase of 71.3%, compared to $41.2 million in fiscal 2000.
The Company also reported fourth quarter fiscal 2001 net income of $13.9 million, or $0.44 per diluted share, on net revenues of $43.8 million, versus fourth quarter fiscal 2000 comparative net income of $11.8 million, or $0.38 per diluted share, on net revenues of $39.0 million. Cash flow from operations for fourth quarter fiscal 2001 was $23.9 million, an increase of 70.7%, compared to $14.0 million in the fourth quarter of fiscal 2000.
The Company's reported effective tax rate decreased primarily due to a change in investment mix to non-taxable securities, contributions to charitable programs that receive favorable tax treatment and an increase in the Company's research and development tax credits. During fiscal 2001, Medicis reported research and development expenditures of $7.7 million, absent the first quarter special charge associated with a research project collaboration, or its targeted goal of 5% of revenues, an increase of 57.6%, compared to $4.9 million in fiscal 2000.
Strong fiscal year and fourth quarter operating results are attributable primarily to the growth of several of the Company's core prescription brands LOPROX(R), PLEXION(TM), LUSTRA(R), TRIAZ(R) and OVIDE(R). Additionally, during the fiscal year, Medicis introduced four new products to the Company's universe of specialty physicians, PLEXION(TM), PLEXION-TS(TM), ALUSTRA(TM) and OMNICEF(R).
"We are pleased to announce the completion of our eighth consecutive profitable year with strong quarter and fiscal year financial results," said Jonah Shacknai, Chairman and Chief Executive Officer of Medicis. "Fiscal 2001 was a year of achievement of several corporate goals. Medicis launched three new products to dermatologists, entered a new strategic market category through a collaborative relationship, and grew core prescription products while effectively balancing the product mix of the Company's most profitable brands. Over the next year, Medicis expects to advance its research and development pipeline and to expand its sales force and universe of specialty physicians served."
The Company's previously announced fiscal year 2002 revenue guidance of $192.0 million and earnings guidance of $1.88 remains unchanged. The Company's previously announced first quarter fiscal year 2002 (for the quarter ending September 30, 2001) revenue guidance of $44.0 million and earnings guidance of $0.42 remains unchanged. The Company is also evaluating the potential impact of FAS 142, relating to the amortization of intangible assets. The Company's earnings guidance does not include the impact of FAS 142.
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, rosacea, hyperpigmentation, psoriasis, eczema, skin and skin-structure infections, 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), LUSTRA-AF(R) (hydroquinone) with sunscreen, ALUSTRA(TM) (hydroquinone) with retinol, LOPROX(R) (ciclopirox), PLEXION(TM) (sodium sulfacetamide/sulfur), PLEXION-TS(TM) (sodium sulfacetamide/sulfur), OMNICEF(R) (cefdinir), OVIDE(R) (malathion), LIDEX(R) (fluocinonide), SYNALAR(R) (fluocinolone acetonide), TOPICORT(R) (desoximetasone) and A/T/S(R) (erythromycin); 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 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. OMNICEF(R)is a registered trademark of Abbott Laboratories, Inc.
Medicis Pharmaceutical Corporation
(in thousands, except per share data)
Summary Statements of Operations
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Three Months Ended Year Ended
June 30, June 30,
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2001 2000 2001 2000
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Revenues $ 43,834 $ 39,027 $ 167,802 $ 139,099
Cost of sales 7,955 7,363 30,697 25,911
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Gross profit 35,879 31,664 137,105 113,188
Operating expenses:
Selling, general and
administrative 15,227 14,009 59,508 45,404
Research and development 3,086 1,465 25,515(a) 4,903
Depreciation and
amortization 2,228 1,898 8,261 7,375
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Total operating
expenses 20,541 17,372 93,284 57,682
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Operating income 15,338 14,292 43,821 55,506
Interest income, net 3,283 3,637 15,504 11,875
Income tax expense (4,758) (6,119) (18,905) (24,387)
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Net income $ 13,863 $ 11,810 $ 40,420 $ 42,994
========= ========= ========= =========
Basic net income per
common share $0.46 $0.40 $1.34 $1.48
===== ===== ===== =====
Diluted net income per
common share $0.44 $0.38 $1.28 $1.41
===== ===== ===== =====
Shares used in basic
net income per common
share 30,209 29,375 30,134 29,029
Shares used in diluted
net income per common
share 31,492 31,079 31,694 30,499
Cash flow from operations $ 23,914 $ 14,009 $ 70,620 $ 41,238
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Absent tax-effected
adjustment for special
R&D charge of $11,473
in fiscal 2001:
Net income $ 13,863 $ 11,810 $ 51,893 $ 42,994
========= ========= ========= =========
Basic net income per
common share $0.46 $0.40 $1.72 $1.48
===== ===== ===== =====
Diluted net income
per common share $0.44 $0.38 $1.64 $1.41
===== ===== ===== =====
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(a) Reported R&D expenses include special charge of $17,788 relating
to the reported collaboration.
Balance Sheets
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At June 30, 2001 At June 30, 2000
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Assets
Cash and short-term investments $334,157 $285,737
Accounts receivable, net 36,526 33,164
Inventory, net 8,750 10,002
Other current assets 19,446 22,385
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Total current assets 398,879 351,288
Property and equipment, net 1,964 1,759
Intangible assets, net 147,277 141,182
Other assets 576 1,110
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Total assets $548,696 $495,339
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Liabilities and stockholders' equity
Current liabilities $ 40,410 $ 38,987
Deferred tax liabilities 4,832 4,000
Long-term obligations --- 14,913
Stockholders' equity 503,454 437,439
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Total liabilities and stockholders'
equity $548,696 $495,339
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Working capital $358,469 $312,301
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Contacts: Medicis Pharmaceutical Corporation, Scottsdale Libby Ivy, 602/808-3854 www.medicis.com