Interpharm Announces September 30, 2003 Results
COMMACK, N.Y., Nov. 17 /PRNewswire-FirstCall/ -- Interpharm Holdings, Inc.
(the "Company") today announced its operating results for the three-month period
ended September 30, 2003.
Financial Highlights Income Statement
Three-Months Ended September 30,
2003 2002 (Unaudited) (Unaudited)
Revenue Increased 15.9% $6,875,348 $5,932,585
Gross Profit Increased 32.72% $1,431,830 $1,078,800
Operating Income Decreased 3.6% $345,055 $358,046
Net Income Increased 16.0% $227,439 $196,107 The Company's revenue increase was a result of increased orders from existing
customers, the continuing increase of production capacity and approximately $2.0
million in sales of Allopurinol and Atenolol, which are manufactured under
agreement for United Research Laboratories, Inc. and Mutual Pharmaceutical
Company, Inc. The Company did not produce either product in the same period
last year. In addition, the Company has also increased sales of Naproxen which
were $456,454 for the quarter as compared to $287,192 in same period last year.
The Company had planned for an additional packaging line to be operational in
mid-September, 2003. The line however, was put into service in early October.
As a result of this delay our inventory awaiting packaging increased
approximately $1.0 million. This had the impact of increasing October sales for
goods that were expected to ship in September.
During the three-month period ended September 30, 2003, as compared to the same
period in the prior year, the Company incurred approximately $151,000 in
increased legal and accounting fees and $154,000 in increased administrative
salaries. The increase in legal and accounting fees were costs associated with
being a public company. The increase in administrative salaries was due to the
Company's growth and to accommodate planned expansion. These increases resulted
in the decrease in operating income and also affected net income.
Balance Sheet
September 30, June 30,
2003 2003 (Unaudited) (Audited)
Current Assets Increased 6.98% $14,062,564 $13,145,628
Long Term Assets Increased 8.63% $7,813,971 $7,193,167
Total Assets Increased 7.56% $21,876,535 $20,338,795 Current
Liabilities Decreased 17.44% $6,277,462 $7,603,375
Long-Term
Liabilities Decreased 88.94% $29,535 $267,056
Stockholders'
Equity Increased 24.87% $15,569,538 $12,468,364
Total Liabilities
and Stockholders'
equity Increased 7.56% $21,876,535 $20,338,795
The increase in long term assets resulted from the Company's continuing efforts
to increase production capacity to meet its projected growth. The decrease in
long-term liabilities resulted primarily from the repayment of monies owed on
bank credit lines. The Company's ability to continue to accelerate its increase
in production capacity and to pay down its credit lines resulted primarily from
the use of assets acquired since Interpharm became a public company in May 2003. These assets included approximately $2.7 million received from option exercises
during the quarter ended September 30, 2003.
The increase in current assets resulted primarily from an increase in inventory
pursuant to the Company's long term expansion plan to increase production levels
to meet increased demand and approximately $1.0 million in inventory awaiting
packaging at the end of the quarter.
Bob Sutaria, the Company's President stated, "We have continued to make capital
investments necessary to build our infrastructure to support our growth. Our
management team has worked tirelessly to begin implementing our expansion plans
while growing our current business. We are all dedicated to continuing the
implementation of our expansion plans, bringing new drugs to market and growing
shareholder value." Forward-looking Statements Statements made in this news release, may contain forward-looking statements
concerning Interpharm Holdings, Inc.'s business and products involving risks and
uncertainties that could cause actual results to differ materially from those
reflected in the forward-looking statements. The actual results may differ
materially depending on a number of risk factors including, but not limited to,
the following: general economic and business conditions, development, shipment,
market acceptance, additional competition from existing and new competitors,
changes in technology, and various other factors beyond Interpharm Holdings,
Inc.'s control. Other risks inherent in Interpharm Holdings, Inc.'s business
are described in ATEC Group, Inc.'s Definitive Proxy Statement, filed with the
Securities and Exchange Commission on May 2, 2003, Form 10-K, filed on September
29, 2003 and Form 10-Q filed on November 14, 2003. The acquisition of
Interpharm, Inc. is described in the foregoing proxy materials, as well as in
ATEC's Form 8-K, filed with the Securities and Exchange Commission on February
27, 2003, our Form 8-K, filed on June 16, 2003 and our amended Form 8-K, filed
on August 11, 2003. Interpharm Holdings, Inc. undertakes no obligation to
revise or update any forward-looking statements to reflect events or
circumstances after the date of this release.
For further information, please contact Munish K. Rametra, General Counsel of
Interpharm Holdings, Inc., +1-631-543-2800, ext. 406. DATASOURCE: Interpharm Holdings, Inc.
CONTACT: Munish K. Rametra, General Counsel of Interpharm Holdings, Inc., +1-631-543-2800, ext. 406 Web site: http://www.interpharminc.com/
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