BUFFALO, N.Y., Aug. 8 /PRNewswire-FirstCall/ -- MINRAD International, Inc. (MNRD) today announced its financial results for the quarter ended June 30, 2005. The Company generated revenue of $2,027,000 compared to revenue of $949,000 in the same period in 2004, a 114% increase reflecting growth in all three sectors of the company’s revenue base -- North America, International and OEM sales. Year-to-date revenues of $4,456,000 are more than double the $1,827,000 during the first six months of 2004 -- a 143% increase.
For the quarter, the company experienced a loss of $(8,312,000), $(0.29) per common share ($1,685,000 loss for accounting purposes.) This compares with a loss of $(879,000), $(0.04) per share in the second quarter of 2004. Included in the 2005 second quarter loss is a business performance loss of $(899,000); $(813,000) in imputed, non-cash, interest expense from warrants and convertible securities; and, a $(6,599,000) charge from a one-time imputed (non-cash) calculated dividend from the sale of $11,260,000 of Series A Preferred stock at $2.00 per share during the quarter. During the second quarter of 2004, the business performance loss was $(879,000).
For the first six months of each year, the comparable business performance losses were $(1,128,000) in 2005 and $(1,695,000) in 2004. Operating improvements between the years reflect the impact of higher volume $1,671,000, partially offset by increased operating expenses $(1,044,000) and a $(146,000) increase in manufacturing variances.
Bill Burns Chairman, President & CEO commented, “With $(7,976,000) in non- cash accounting adjustments for the six months, it’s easy to lose the bigger picture: Year over Year our volume has more than doubled, margins have increased almost 20 points and are poised to increase another 15 points by year-end as we work to eliminate in inefficiency variances, $(399,000 2nd Qtr), we have experienced thus far this year. We also raised $9.7 million in net equity in this quarter, which will take us a long way in implementing our business strategy. MINRAD is becoming a very exciting business.”
At June 30, 2005 the company had total current assets of $10,179,000, with $5,328,000 cash on hand. At the same time, MINRAD had $3,847,000 in current liabilities including $2,074,000 in a bridge loan from shareholders payable or convertible by October 7, 2005.
About the Company
MINRAD International, Inc. is an acute care company with real-time image guidance and anesthesia and analgesia product lines. The real-time image guidance products have broad applications in orthopedics, neurosurgery, interventional radiology and pain management. These devices enable medical professionals to improve the accuracy of interventional procedures and reduce radiation exposure. Minrad International also manufactures and markets generic inhalation anesthetics for use in connection with human and veterinary surgical procedures. The company is developing a drug/drug delivery system for conscious sedation, which, similar to nitrous oxide in dental surgery, provides a patient with pain relief without loss of consciousness.
SAFE HARBOR DISCLAIMER
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as “may,” “intend,” “might,” “will,” “should,” “could,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “project,” “potential,” or the negative of these terms, and similar expressions intended to identify forward-looking statement. Investors should not place undue reliance on the forward-looking statements contained in this news release. Each forward-looking statement speaks only as of the date on which it is made, and except as required by law, Minrad International undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. Forward-looking statements are based on assumptions and estimates and are subject to risks and uncertainties. Important factors that could cause actual results to differ materially from those identified in the forward-looking statements in this news release include changes in general economic and political conditions and currency exchange rates; market factors, including competitive pressures and changes in pricing policies; changes in interpretations of existing legislation or the adoption of new legislation; loss of major customers; the occurrence of litigation or claims; natural and manmade disasters, including acts of terrorism or war; and other factors described in the “Risk Factors” and “Cautionary Factors That May Affect Future Results” sections of Minrad International’s Form 10-KSB, filed with the Securities and Exchange Commission on March 31, 2005. Liviakis Financial Communications, Inc. (“LFC”) was retained by MINRAD in various consulting capacities including strategic management planning, investor relations and other business development responsibilities. In lieu of paid expenses, salaries or commissions, LFC was compensated in shares of common stock totaling 800,000. Officers and employees of LFC may buy or sell shares in MINRAD prior, during or after this release. LFC advises MINRAD but does not provide investment advice. LFC is not a registered investment advisor or broker-dealer. All material provided regarding MINRAD including, but not limited to its history, corporate status, and other developments was prepared using information approved and signed off by MINRAD management as approved for public dissemination. Although the information contained herein is believed to be reliable, LFC makes no warranties as to the accuracy of the description of any of the content herein and accepts no liability for how readers may choose to utilize it.
Contact: Investor Relations John Liviakis Liviakis Financial Communication, Inc. 415-389-4670 phone 415-389-4694 fax John@liviakis.comwww.liviakis.com MINRAD International, Inc. Mr. Kirk Kamsler Senior Vice President Commercial Development 847 Main Street Buffalo, New York 14203 800-832-3303 716-855-1068 716-855-1075 fax MINRAD INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) IN THOUSANDS ASSETS June 30, December 31, 2005 2004 Current Assets: Cash, and cash equivalents $5,328 $3 Accounts receivable, net 2,137 606 Stock subscription receivable 582 -- Inventories, net 1,061 1,070 Prepaid expenses 1,071 472 Total current assets 10,179 2,151 Net property and equipment 505 499 Other Assets 158 113 Total Assets $10,842 $2,763 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current Liabilities: Demand notes payable $2,074 $1,471 Accounts payable 908 2,434 Accrued expenses 564 825 Due to affiliates 270 375 Current portion of long-term 31 1,022 Total current liabilities 3,847 6,127 Long -Term Debt 760 -- Stockholders’ Equity (Deficit) 6,235 (3,364) Total Liabilities & Equity $10,842 $2,763 MINRAD INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) 2ND QUARTER ENDED JUNE 30,2005 COMPARED TO 2ND QUARTER JUNE 30, 2004 IN THOUSANDS (EXCEPT FOR EPS) UNAUDITED UNAUDITED FAVORABLE 2005 2004 (UNFAVORABLE) % CHANGE Revenue $2,027 $949 $1,078 114% Cost of goods sold Standard Cost of Sales 813 392 421 107% Manufacturing Variances 398 326 72 22% 1,211 718 493 69% Gross profit 816 231 585 253% GP % 40.3% 24.3% 15.9 pts Operating expenses: Sales and marketing 386 179 (207) (116%) Research and development 431 265 (166) (63%) Finance and administrative 724 546 (178) (33%) Total operating expenses 1,541 990 (551) 156% Operating loss (725) (759) 34 4% Interest expense: cash (147) (119) (28) (24%) Business performance (872) (878) 6 1% Interest expense: imputed (813) -- (813) 100% Net Loss $(1,685) $(878) $(807) 92% Less Preferred Stock Dividends Cash dividends (28) -- (28) -- Non cash dividends (6,599) -- (6,599) -- Net loss available for common stockholders $(8,312) $(878) $(7,434) (847%) Net Loss per share $(.29) $(.04) $(.25) (625%) Weighted average common shares outstanding 28,367 23,289 5,078 22% MINRAD INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) IN THOUSANDS Six Months Six Months Ended Ended June 30, June 30, 2005 2004 Cash flows from operating activities: Net loss $(2,581) $(2,408) Adjustments to reconcile net loss to net Cash used by operating activities: (2,375) 391 Net cash used by operating activities (4,956) (2,017) Net cash used by investing activities (125) (79) Net cash provided by financing activities 10,406 1,709 Net increase (decrease) in cash and cash equivalents 5,325 (386) Cash-and cash equivalents - beginning of period 3 427 Cash and cash equivalents - end of period $5,328 $40
MINRAD International, Inc.
CONTACT: investors, John Liviakis of Liviakis Financial Communication,Inc., +1-415-389-4670, or fax, +1-415-389-4694, or John@liviakis.com, forMINRAD International, Inc.; or Mr. Kirk Kamsler, Senior Vice President,Commercial Development of MINRAD International, Inc., 800-832-3303, or+1-716-855-1068, or fax, +1-716-855-1075
Web site: http://www.minrad.com/
