LARGO, Fla., Feb. 1 /PRNewswire-FirstCall/ -- GeoPharma, Inc. today reported results for the third quarter and nine months of fiscal 2006, ended December 31, 2005.
Total revenues for the third quarter increased 80% to $12.4 million compared to $6.9 million reported in the third quarter of fiscal 2005. Revenues for the nine months of fiscal 2006 increased 82% to $36.3 million from $20.0 million for the prior year’s period.
Net income for the third quarter was $365,000, or $0.04 per basic share compared to a net loss of $(960,000), or ($0.12) per basic share for the third quarter of 2005. Net income for the nine months of fiscal 2006 increased to $1.3 million or $0.15 per basic share compared to a net loss of $(1.2 million) or $(0.15) per basic share for the nine months of fiscal 2005.
EBITDA for the third quarter was $1.3 million compared to an EBITDA loss of $(673,000) for the third quarter of 2005. EBITDA for the nine months of fiscal 2006 increased to $3.0 million compared to an EBITDA loss of $(320,000) for the nine months of fiscal 2005.
Mihir Taneja, Chief Executive Officer of GeoPharma, Inc., commented: “We are pleased with the quarter’s accomplishments and the momentum of the year. Revenues continue to expand, driven by sales of veterinary levothyroxine sodium liquid and tablets as well as new products and line extensions launched through our distribution network. Additions to our Cephalexin plant are progressing and the Consolidated Pharmaceutical facility we acquired in August is on track for FDA inspection and the start of commercial production in the second quarter of calendar 2006. Furthermore, the Mucotrol(TM) distribution and supply agreement with Cura Pharmaceutical is in place and marketing has already begun.”
Research and development expenditures for third quarter totaled approximately $398,000. Approximately $285,000 of this amount was related to additions for the Company’s Cephalexin plant. Approximately $113,000 of research and development expenses in the quarter was charged as an expense to operations. Total research and development expenditures for the nine months of fiscal 2006 were $1.5 million, and approximately $1.2 million of this amount was related to equipment and additions for the Company’s Cephalexin plant. Approximately $300,000 of research and development expenses for the nine months was charged as an expense to operations.
Selling, general and administrative expenses for the third quarter of fiscal 2006 increased to $2.4 million from $1.7 million in the previous year’s quarter. Selling, general and administrative expenses for the nine months of fiscal 2006 increased to $7.8 million from $4.6 million in the previous year’s period. 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 the Amended Class Action Complaint relating to Mucotrol(TM) was dismissed and the case closed.
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. “We remain focused on growing our pharmaceutical segment by pursuing new opportunities for generic and novel therapeutics, as well as increasing existing revenue streams. Our infrastructure for growth is in place and we are well positioned to continue our success.”
GeoPharma will host a conference call to discuss results today at 11:00 (ET) with CEO, Mihir Taneja; President, Dr. Kotha Sekharam and VP/CFO, Carol Dore-Falcone. Interested parties may participate in the conference call by dialing 1-800-706-7741 and entering passcode 67554765, 5 minutes prior to the initiation of the call. A replay of the conference call will be available from 1:00 PM (ET) on February 1, through February 8, by dialing 888-286-8010 and entering passcode 78654043.
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.
GEOPHARMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Third Quarter Ended Nine Months Ended December 31, December 31, 2005 2004 2005 2004 (unaudited) (unaudited) (unaudited) (unaudited) Total Revenues $12,369,000 $6,931,000 $36,313,000 $20,024,000 Gross Profit $3,297,000 $964,000 $9,281,000 $4,067,000 SG&A $2,384,000 $1,694,000 $7,767,000 $4,630,000 Other income / (expense), net $(114,000) $(105,000) $591,000 $(131,000) Income (loss) before taxes and preferred dividends $1,007,000 $(834,000) $2,398,000 $(694,000) Income tax benefit (expense) $(567,000) $ -- $(851,000) $(14,000) Preferred Dividends $75,000 $126,000 $225,000 $447,000 Net income (loss) available to common shareholders $365,000 $(960,000) $1,322,000 $(1,155,000) Basic earnings (loss) per common share outstanding $0.04 $(0.12) $0.15 $(0.15) Basic weighted average common shares outstanding 9,005,134 8,188,452 8,884,866 7,876,197 Diluted earnings (loss) per common share outstanding $0.03 $( 0.12) $0.11 $(0.15) Diluted weighted average common shares outstanding 12,826,152 8,188,452 12,630,224 7,876,197 EBITDA (loss) $1,258,000 $(673,000) $3,008,000 $(320,000)
GeoPharma, Inc.
CONTACT: Carol Dore-Falcone, VP/CFO of GeoPharma, +1-727-544-8866 x244,cdf@onlineihp.com; or Investor and Media Relations: Rachel Levine of TheGlobal Consulting Group, +1-646-284-9439, rlevine@hfgcg.com, for GeoPharma
