LARGO, Fla., Nov. 14 /PRNewswire-FirstCall/ -- GeoPharma, Inc. (NASDAQ:GORX) today announced financial results for the three months ended September 30, 2007. "Although, the second quarter proved to be a challenging one for GeoPharma, many recent positive developments allow the company to look forward with continued confidence and optimism", stated GeoPharma CEO Mihir K. Taneja. "Two major developments for the Company including the completion of the Dynamic Health Products Inc. ("Dynamic") acquisition, as well as the FDA approval of our first generic drug offering, Carprofen, are prime examples of the company's growing advancement opportunities". "We maintain the belief that GeoPharma is well positioned to finish the year strongly, with new manufacturing contracts coming online, the overhead inventory supply of a major manufacturing client eliminated and the addition of new revenues and income generated from manufacturing Carprofen and the Dynamic acquisition". "Furthermore, we continue to make progress on the 12 ANDAs as well as other drug products in the pipeline". "The company will obviously expound on all new developments as they reveal themselves in the next 1, 3, and 6 month periods".
Q2 Financial Summary -- Total revenues for the second quarter ended September 30, 2007 were
$6.0 million as compared to the first quarter continuing operation
revenues for the three months ended June 30, 2007 of $6.8 million. The
June 30, 2007 revenue of $6.8 million excludes the PBM discontinued
segment revenues of $2.9 million in order for comparison purposes.
-- Gross Profits for the second quarter ended September 30, 2007 were $1.2
million as compared to the first quarter continuing operations gross
profits for June 2007 quarter of $1.5 million. The June 30, 2007 gross
profits of $1.5 million excludes the PBM discontinued segment gross
profits of $21,000 in order for comparison purposes.
-- Selling, general and administrative expenses, exclusive of depreciation
and amortization were $3.7 million for the quarter ended September 2007
as compared to $ 3.0 million for the quarter ended June 2007. Increases this quarter were attributable to higher costs related to
business expansion such as rents, payrolls and related insurances in
addition to costs incurred for integrating the EZ-Med acquisition
consummated in June 2007.
-- Research and development ("R&D") expenditures for the three months
ended September 30, 2007 totaled approximately $366,000 all of which
was charged as an expense to operations as compared to $426,000 of R&D
expense for June 2007.
-- Net loss for the September quarter 2007 was $(1.7) million as compared
to the June 2007 net loss of $(1.1) million. Net loss per share for the
September quarter 2007 was $(0.15) as compared to the June 2007 quarter
net loss of $(0.11).
See the financial tables that follow.
ABOUT GEOPHARMA, INC. GeoPharma, Inc. is a rapidly growing pharmaceutical company specializing in the manufacturing and distribution of over-the-counter, nutritional, generic drug and functional food products. The company's growth strategy is to capitalize on its manufacturing expertise to develop high margin generic or novel drugs for niche markets with high barriers to entry. GeoPharma's competitive advantage lies in its ability to circumvent or overcome the challenges in these markets. For more about GeoPharma, Inc., go to our websites at http://www.geopharmainc.com/, http://www.onlineihp.com/ and http://www.hoodiadexl10.com/ CONFERENCE CALL INFORMATION GeoPharma will host a conference call to discuss results on Wednesday, November 14, 2007 at 11:30 (ET) with CEO, Mihir Taneja and VP/CFO, Carol Dore- Falcone. Interested parties may participate in the conference call by dialing 1-866-831-6234 and entering pass code 35259037, 5 minutes prior to the initiation of the call. A replay of the conference call will be available from 1:30 PM (ET) on November 14 through November 21, by dialing 1-888-286- 8010 and entering pass code 38097544.
FORWARD LOOKING STATEMENTS This press release may contain statements, which constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those regarding the company and its subsidiaries' expectations, intentions, strategies and beliefs pertaining to future performance. All statements contained herein are based upon information available to the company's management as of the date hereof, and actual results may vary based upon future events, both within and without management's control. Important factors that could cause such differences are described in the company's periodic filings with the Securities and Exchange Commission.
GAAP FINANCIAL TABLES FOLLOW
GEOPHARMA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Six Months Ended
September 30, September 30,
Revenues: 2007 2006 2007 2006 PBM (a discontinued
operation) $ - $4,673,611 $- $9,551,393
Distribution 1,360,751 3,323,298 3,217,271 6,495,174
Manufacturing 4,660,406 8,643,527 9,582,511 15,028,499
Pharmaceutical - 38,360 41,199 251,846
Total revenues $6,021,157 $16,678,796 $12,840,981 $31,326,911
Cost of goods sold:
PBM (a discontinued
operation) - 4,637,583 - 9,476,037
Distribution 721,542 1,384,061 1,737,435 2,762,226
Manufacturing (excluding
depreciation and
amortization presented
below) 3,325,080 5,759,086 6,785,716 10,308,317
Pharmaceutical 740,755 233,082 1,573,380 608,700
Total cost of goods
sold $4,787,377 $12,013,812 $10,096,531 $23,155,280
Gross profit:
PBM (a discontinued
operation) - 36,028 - 75,356
Distribution 639,209 1,939,237 1,479,836 3,732,948
Manufacturing 1,335,326 2,884,441 2,796,795 4,820,182
Pharmaceutical (553,805) (194,722) (1,532,181) (356,854)
Total gross profit $1,233,780 $4,664,984 $2,744,450 $8,171,631 Selling, general and
administrative expenses: Selling, general and
administrative expenses 3,430,179 3,307,757 6,307,385 5,931,207 Stock option compensation
expense 264,247 427,675 420,837 855,350
Depreciation and
amortization 372,231 245,565 819,358 481,627
Selling, general and
administrative expenses 4,066,657 3,980,997 7,547,580 7,268,184
Operating income (loss)
before other income and
expense, minority
interest, income taxes
and discontinued
operations $(2,832,877) $683,987 $(4,803,130) $903,447
Other income (expense),
net:
Other income (expense),
net 126 166,197 2,249 164,301
Interest income(expense),
net 124,296 (25,204) 84,505 (28,617)
Total other income
(expense), net $124,422 $140,993 $86,754 $135,684
Income (loss) before
minority interest,
income taxes and
discontinued
operations $(2,708,455) $824,980 $(4,716,376) $1,039,131
Minority interest
benefit (expense) 216,793 327,057 442,456 664,328
Income tax benefit
(expense) 877,802 (284,000) 1,685,402 (588,000)
Net income (loss) from
continuing operations $(1,613,860) $868,037 $(2,588,518) $1,115,459
Discontinued operations:
Revenues: PBM $- $- $2,925,139 $-
Cost of goods sold:
PBM - - 2,904,274 -
Gross profit: PBM $- $- $20,865 $-
Selling, general and
administrative
expenses: PBM - - 20,785 -
PBM segment exit income
(expense) - - 8,300 -
Discontinued operations
net income (net of
income tax) $- $- $8,380 $-
Net income (loss) $(1,613,860) $868,037 $(2,580,138) $1,115,459
Preferred stock
dividends 100,002 75,000 208,335 150,000
Net income (loss)
available to common
shareholders $(1,713,862) $793,037 $(2,788,473) $965,459 Basic income (loss)
per share $(.15) $.08 $(.25) $.10
Basic weighted average
number of common
shares outstanding 11,436,721 9,927,195 11,398,371 9,907,322
(Diluted income (loss)
per share $(.15) $.07 $(.25) $.08
Diluted weighted average
number of common shares
outstanding 11,436,721 13,331,543 11,398,371 13,311,670
DATASOURCE: GeoPharma, Inc.
CONTACT: Carol Dore-Falcone, VP-CFO, GeoPharma, Inc., +1-727-471-0850, ext. 243, Web site: http://www.geopharmainc.com/ http://www.onlineihp.com/
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