Perrigo Company (NASDAQ: PRGO) today announced results for the fourth quarter and fiscal year ended June 30, 2001.
For the fourth quarter, net sales were $180.9 million, an increase of 19 percent from $152.3 million in the fourth quarter last year. Net income was $6.2 million compared with a loss of $8.1 million a year ago. Earnings per share from operations were $0.05 compared with a loss of $0.11 per share in the fourth quarter of fiscal 2000. At year-end, the Company reduced a charge taken in the second quarter related to a product line discontinuation, adding another $0.03 per share to earnings in the current quarter.
In November 2000, in compliance with the Food and Drug Administration's (FDA) recommendation, the Company voluntarily discontinued production and halted shipments of all products containing the ingredient phenylpropanolamine (PPA). On a proforma basis, excluding both the PPA discontinuation, which resulted in a $12.5 million reduction in sales in fiscal 2001, and $17.7 million in fiscal 2000 sales from the personal care business divested that year, the Company recorded sales of $766.0 million compared with $726.6 million last year, an increase of five percent. The PPA discontinuation also resulted in a charge of $21.0 million, or $0.18 per share. Proforma net income for 2001 was $41.1 million, or $0.55 per share. Including the PPA- related reduction in sales, reported net sales for fiscal 2001 were $753.5 million and reported net income, including the PPA charge, was $27.7 million, or $0.37 per share fully diluted. For fiscal 2000, including the divested personal care business, Perrigo reported net income of $19.3 million, or $0.26 per share fully diluted.
Commenting on the quarter and year, Chief Executive Officer, David T. Gibbons, said, "We are pleased with our fiscal 2001 results, which benefited from solid business trends, new products like famotidine and strong balance sheet and cash management. This year we made good progress in our plans for continuous improvement in product quality, operational excellence and ultimately our financial results. The continuing investments in the quality and compliance initiatives being made today will be fully implemented in fiscal 2002. We will continue to be challenged with absorbing these additional costs in the year ahead.
"In the fourth quarter, we had a strong sell-in of our new 10 mg famotidine antacid tablet, which is comparable to the national brand Pepcid® AC. We also began shipping reformulated cough and cold products related to the PPA discontinuation. New product development will continue to be a key to growth, and we are targeting several rollouts for fiscal 2002, including store brand equivalents to Advil® Cold & Sinus, Rogaine® Extra Strength, and Excedrin® Migraine.
"We also were pleased to complete the acquisition of Wrafton Laboratories in the United Kingdom, a supplier of over-the-counter (OTC) pharmaceutical store brands to grocery and pharmacy retailers as well as a contract manufacturer. The Wrafton acquisition serves as an excellent entry point into the U.K. market where some of our major domestic retail customers are expanding their operations.
"While fiscal 2002 will have its challenges, we look forward to solid sales and earnings growth. With the addition of Wrafton, our expectations are for double-digit sales growth and earnings of between $0.60 and $0.62 per share. We anticipate earnings for our fiscal first quarter 2002 ending in September to be in a range of $0.14 to $0.16 per share fully diluted."
Perrigo will host a conference call to discuss fourth quarter and fiscal 2001 year end results at 11:00 a.m. (EDT) today. The call and replay will be available via webcast on the Company's web site at http://www.perrigo.com/investor . The conference call may also be accessed by phone on a listen-only basis by calling 1-800-230-1059 and asking for Perrigo's fourth quarter and year end review. A taped replay of the call will be available beginning at approximately 2:30 p.m. (EDT) Wednesday, August 15. To listen to the replay, call 1-800-475-6701, access code 598085 (outside the United States, call 320-365-3844).
Perrigo Company is the nation's largest manufacturer of over-the-counter pharmaceutical and nutritional products for the store brand market. Store brand products are sold by national and regional supermarket, drugstore and mass merchandise chains under their own labels and compete with nationally advertised brands. The Company's products include over-the-counter pharmaceuticals, such as analgesics, cough and cold remedies, antacids, laxatives, feminine hygiene and smoking cessation products, and nutritional products, such as vitamins, nutritional supplements and nutritional drinks. Visit Perrigo on the Internet at http://www.perrigo.com/ .
Note: Certain statements in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and are subject to the safe harbor created thereby. Please refer to pages 23-27 of the Company's Form 10-K for the year ended July 1, 2000 for a discussion of certain important factors that relate to forward- looking statements contained in this press release. Although the Company believes that the expectations reflected in any such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.
PERRIGO COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Fourth Quarter Year-To-Date
2001 2000 2001 2000
Net sales $180,898 $152,342 $753,488 $744,284
Cost of sales 139,341 134,239 568,994 597,646
PPA product discontinuation (2,600) - 17,600 -
Gross profit 44,157 18,103 166,894 146,638
Operating expenses
Distribution 3,650 3,654 15,148 16,002
Research and development 5,004 6,122 17,634 16,314
Selling and administration 24,442 22,972 92,821 81,509
Restructuring and redesign 2,175 1,048 2,175 1,048
Unusual litigation - (4,154) (995) (4,154)
35,271 29,642 126,783 110,719
Operating income 8,886 (11,539) 40,111 35,919
Interest and other, net (926) 473 (3,748) 4,994
Income before income taxes 9,812 (12,012) 43,859 30,925
Income tax expense 3,611 (3,946) 16,203 11,627
Net income $6,201 $(8,066) $27,656 $19,298
Basic earnings per share $0.08 $(0.11) $0.38 $0.26
Diluted earnings per share $0.08 $(0.11) $0.37 $0.26
Shares outstanding used for
basic EPS calculation 73,750 73,436 73,646 73,370
Shares outstanding used for
diluted EPS calculation 75,720 73,436 74,566 73,593
PERRIGO COMPANY
SELECTED BALANCE SHEET DATA
(In thousands)
June 30, July 1,
2001 2000
(Unaudited)
Current assets $313,137 $268,645
Property & equipment, net 212,087 193,580
Other assets 50,688 23,839
Total Assets $575,912 $486,064
Current liabilities $171,759 $113,920
Deferred income taxes 17,419 19,462
Other long-term liabilities 859 -
Minority interest - 922
Shareholders' equity 385,875 351,760
Total Liabilities and Equity $575,912 $486,064
PERRIGO COMPANY
SELECTED STATEMENTS OF CASH FLOWS DATA
(In thousands)
(Unaudited)
June 30, July 1,
2001 2000
Net income $27,656 $19,298
Depreciation and amortization 23,022 22,245
Other operating activities 17,541 76,270
Net cash from operating activities 68,219 117,813
Additions to property and equipment (26,804) (14,364)
Proceeds from sale of assets
held for sale - 31,186
Business acquisitions, net (46,000) -
Other 208 3,704
Net cash (for) from investing activities (72,596) 20,526
Net cash from (for) financing activities 8,338 (132,979)
Net Increase (Decrease) in Cash
and Cash Equivalents 3,961 5,360
Cash and Cash Equivalents, at
Beginning of Period 7,055 1,695
Cash and Cash Equivalents, at End
of Period $11,016 $7,055
SOURCE: Perrigo Company
Contact: Ernest J. Schenk, Manager, Investor Relations and Communication
of Perrigo Company, +1-616-673-9212, or email, Investor@perrigo.com
Website: http://www.perrigo.com/investor
Website: http://www.perrigo.com/
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