Medicis Reports Third Quarter Fiscal 2001 Financial Results
SCOTTSDALE, Ariz.--April 19, 2001--Medicis Pharmaceutical Corporation (NYSE:MRX) today announced third quarter fiscal 2001 revenues of $42.3 million and net income of $13.3 million, or $0.42 per diluted share, compared to third quarter fiscal 2000 revenues of $35.0 million and net income of $11.1 million, or $0.36 per diluted share. Net revenue increased approximately 21% for the third fiscal quarter from the prior year primarily due to the addition of sales in the current fiscal year of its recently launched PLEXION(TM) product line, as well as the commensurate increase in prescription volumes of the Company's core brands, DYNACIN(R), LOPROX(R) and TRIAZ(R). Cash flow from operations for the third fiscal quarter of 2001 was $21.3 million, an increase of 130%, compared to $9.3 million in the third quarter of fiscal 2000.
For the first nine months of fiscal 2001, Medicis reported revenues of $124.0 million and net income of $38.0 million, or $1.19 per diluted share, absent the tax-effected special charge for research and development associated with the collaboration with Corixa Corporation. In the same period in the prior year, revenues were $100.1 million with net income of $31.2 million, or $1.03 per diluted share. Reported fiscal 2001 first nine months' results exclude the tax-effected special charge for the research and development expense of $11.5 million relating to the $17.8 million incurred in the collaboration with Corixa for PVAC(TM), a novel psoriasis immunotherapeutic product currently under development. Net revenue increased approximately 24% for the first nine months from the prior year, commensurate with the increase in prescription volumes of the Company's core brands, DYNACIN(R), LOPROX(R), LUSTRA(R) and TRIAZ(R), as well as the addition of sales from its recently launched product, PLEXION(TM). Cash flow from operations for the first nine months of 2001 was $46.7 million, an increase of approximately 72%, compared to $27.2 million in the first nine months of fiscal 2000.
"We are pleased to announce another strong quarter driven by the success of our core brands and our recently launched PLEXION(TM) product line," said Jonah Shacknai, Chairman and Chief Executive Officer of Medicis. "Additionally, we continue to be encouraged with the depth of our research and development pipeline consisting of ten significant projects with anticipated product launches extending into the year 2006. We are also engaged in business development activities which we hope will result in additional product opportunities through licensing and acquisitions."
Current reported First Call consensus estimates for Medicis are approximately $0.43 for the fourth quarter fiscal 2001. The Company's previously reported guidance of revenue expectations of $43.4 million for the fourth quarter fiscal 2001 remains unchanged. Current reported First Call consensus estimates for the Company's fiscal year 2002 are approximately $1.88 with average current reported revenue expectations of $189.6 million. The Company expects to provide quarterly guidance for fiscal year 2002 before the end of the current fiscal year. At the time of this disclosure, Medicis believes these 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, nor can the Company validate its assumptions of the full impact on its business of the approval of a competitive generic version of its DYNACIN(R) 75 mg. product, or any future competitive product approvals that may affect the Company's brands.
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
--------------------------------
(unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
-------------------- ---------------------
2001 2000 2001 2000
-------------------- ---------------------
Revenues $42,346 $35,049 $123,967 $100,071
Cost of sales 7,470 6,323 22,741 18,548
--------- --------- --------- ---------
Gross profit 34,876 28,726 101,226 81,523
Operating expenses:
Selling, general and
administrative 14,785 11,324 44,281 31,396
Research and development 1,763 815 22,430(a) 3,437
Depreciation and
amortization 2,039 1,937 6,033 5,476
--------- --------- --------- ---------
Total operating
expenses 18,587 14,076 72,744 40,309
--------- --------- --------- ---------
Operating income 16,289 14,650 28,482 41,214
Interest income, net 3,866 2,915 12,221 8,238
Income tax expense (6,853) (6,502) (14,147) (18,268)
--------- --------- --------- ---------
Net income $13,302 $11,063 $26,556 $31,184
========= ========= ========= =========
Basic net income per
common share $0.44 $0.38 $0.88 $1.08
========= ========= ========= =========
Diluted net income per
common share $0.42 $0.36 $0.83 $1.03
========= ========= ========= =========
Shares used in basic
net income per common
share 30,414 29,164 30,109 28,914
Shares used in diluted
net income per common
share 31,787 30,967 31,835 30,270
Cash flow from operations $21,264 $9,263 $46,707 $27,230
----------------------------------------------------------------------
Absent tax-effected
adjustment for special
R&D charge of $11,473:
Net income $13,302 $11,063 $38,029 $31,184
========= ========= ========= =========
Basic net income per
common share $0.44 $0.38 $1.26 $1.08
========= ========= ========= =========
Diluted net income
per common share $0.42 $0.36 $1.19 $1.03
========= ========= ========= =========
----------------------------------------------------------------------
(a) Reported R&D expenses include special charge of $17,788 relating
to the Corixa collaboration
Balance Sheets
--------------
At March 31, 2001 At June 30, 2000
----------------- ----------------
(unaudited)
Assets
Cash and short-term investments $321,281 $285,737
Accounts receivable, net 34,597 33,164
Inventory, net 9,593 10,002
Other current assets 19,296 22,385
-------- --------
Total current assets 384,767 351,288
Property and equipment, net 1,891 1,759
Intangible assets, net 138,353 141,182
Other assets 2,262 1,110
-------- --------
Total assets $527,273 $495,339
======== ========
Liabilities and stockholders' equity
Current liabilities $ 38,016 $ 38,987
Deferred tax liabilities -- 4,000
Long-term obligations -- 14,913
Stockholders' equity 489,257 437,439
-------- --------
Total liabilities and stockholders'
equity $527,273 $495,339
======== ========
Working capital $346,751 $312,301
======== ========
Contacts: Medicis Pharmaceutical Corporation, Scottsdale Libby Ivy, 602/808-3854 www.medicis.com