LARGO, Fla., June 29 /PRNewswire-FirstCall/ -- GeoPharma, Inc. today reported results for the fiscal year ended March 31, 2006.
Total revenues for the 2006 fiscal year increased 76% to $49.7 million compared to $28.2 million reported in the fiscal year 2005.
Net income for the 2006 fiscal year was $1,489,000, or $0.17 per basic share compared to a net loss of $(1,403,000), or $(0.17) per basic share for the 2005 fiscal year.
EBITDA for the 2006 fiscal year was $3.9 million compared to an EBITDA loss of $(509,000) for the corresponding 2005 fiscal year.
Mihir Taneja, Chief Executive Officer of GeoPharma, Inc., commented: "We are very encouraged by this year's accomplishments and continue to be motivated by our strategic plans for the future. We continue to be driven as a company by our sales growth and our improvements in our overall profitability while we continue our investment in research and development."
Research and development expenditures for the 2006 fiscal year totaled approximately $2.9 million with approximately $2.4 million of this amount related to additions to production and lab machinery and equipment but also the Company's Cephalexin, Beta-Lactam and generic drug facilities. Of the total $2.9 million expended, approximately $500,000 of research and development was charged as an expense to operations for the fiscal year ended March 31, 2006.
Selling, general and administrative expenses for the fiscal year increased to $10.4 million from $6.7 million in the previous year. These increases are primarily related to advertising, promotional and slotting expenses related to the Company's launch of new products and line extensions into its existing distribution network, as well as higher payrolls, insurance and legal expenses.
The Company recently announced that Dr. Vijay, a member of the Advisory Committee to the Director of the National Institute of Health ("NIH"), was appointed to head up the Company's Scientific Advisory Board and has accepted to take on the role of the Company's Chief Medical Advisor and Officer of Government Liaison. This board was formed specifically to oversee and assist in implementing research and development projects.
On January 31, GeoPharma announced the in-licensing of a compound from The University of Florida Office of Technology Licensing for development of a novel therapeutic for Primary or Idiopathic Pulmonary Hypertension (PPH). The compound is a synthetic peptide with efficacy established through in vitro data and studies in situ animal lung models. Further studies are in progress and a patent on the compound has been filed.
"We look forward to the future," added Mr. Taneja. "Our revenue growth was fueled by our manufacturing operating units, the continued acceptance of our distribution segments' branded products in addition to continued sales of our branded Levothyroxine Sodium. Further, we are motivated and encouraged by our Cephalexin and Beta-Lactum facility expansion that we believe will provide additional strength within our drug division," stated Mr. Taneja.
GeoPharma will host a conference call to discuss results on Thursday, July 6, 2006 at 11:30 (ET) with CEO Mihir Taneja and VP/CFO Carol Dore-Falcone. Interested parties may participate in the conference call by dialing 1-866-362-4820 and entering passcode 21128647, 5 minutes prior to the initiation of the call. A replay of the conference call will be available from 1:30 PM (ET) on July 6, through July 13, by dialing 888-286-8010 and entering passcode 44321365.
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.carbslim.com .
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.
FINANCIAL TABLE FOLLOWS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Fiscal Year ended March 31, 2006 2005 Total Revenues $49,743,545 $28,230,240 Gross Profit $12,456,964 $5,778,493 SG&A $10,449,725 $6,677,108 Other income / (expense),net $280,148 $(184,975) Income tax benefit(expense) $(1,080,800) $201,898 Preferred Dividends $300,000 $521,762 Net income (loss) available to common shareholders $1,489,197 $(1,403,454) Basic earnings (loss) per common share outstanding $0.17 $(0.17) Basic weighted average common shares outstanding 9,041,106 8,111,851 Diluted earnings (loss) per common share outstanding $0.14 $(0.17) Diluted weighted average common shares outstanding 12,478,786 8,111,851 EBITDA (loss) $3,946,638 $(508,796)
GeoPharma, Inc.CONTACT: Carol Dore-Falcone, VP and CFO, GeoPharma, +1-727-544-8866, ext.244, or cdf@onlineihp.com
