Nordion delivers strong performance from high margin products in the third quarter 2011
Nordion Highlights:
- Strong year-over-year TheraSphere® revenue growth of 58% to $11.5 million in third quarter 2011
- Cobalt-60 shipments up 74% year-over-year in third quarter 2011
- Meeting Mo-99 customer demand as expected following planned NRU reactor maintenance shutdown
Nordion reports in U.S. dollars unless otherwise specified
OTTAWA, Sept. 13, 2011 /PRNewswire/ - Nordion Inc. (TSX: NDN) (NYSE: NDZ), a leading provider of products and services to the global health sciences market, announced today third quarter 2011 revenues from continuing operations of $66.8 million, up 39% from $47.9 million in the third quarter 2010. Income from continuing operations, net of income taxes was $4.7 million ($0.07 earnings per share), compared with a loss from continuing operations of $8.7 million ($0.13 loss per share) in the third quarter 2010.
"Nordion's performance continued to be solid and steady in the third quarter," said Mr. Steve West, Chief Executive Officer, Nordion Inc. "We demonstrated consistent performance across our high margin products and continue to focus on creating long-term value for our shareholders through disciplined financial management and operational execution."
Key Q3 2011 Events:
- On June 6, 2011, Nordion announced a three-year $75 million senior revolving credit facility.
- On June 9, 2011, Nordion announced the unveiling of the GammaFIT, a new Flexible Irradiation Technology system.
- On June 16, 2011, Nordion announced it awarded the contract for the STOP-HCC and EPOCH TheraSphere Phase III clinical trials to contract research organization, Theorem Clinical Research (formerly Omnicare Clinical Research).
- On June 16, 2011, the Atomic Energy Canada Limited's National Research Universal (NRU) reactor returned to service after a 32-day planned maintenance shutdown.
- On July 25, 2011, Bracco Diagnostics Inc. (Bracco) issued a letter notifying customers that it had voluntarily discontinued the sale of CardioGen-82 generators and recalled the units in the market due to two patients having received a higher radiation dose than expected.
- As of July 31, 2011, Nordion had repurchased 3.6 million Common shares at an aggregate cost of $40.5 million.
Third Quarter 2011 Results
The divested Belgian financial results are reported under discontinued operations in the current and comparative periods.
Consolidated Financial Results
| Three months ended July 31 | Nine months ended July 31 | |||||||
| (thousands of U.S. dollars, except when noted) | 2011 | 2010 | 2011 | 2010 | ||||
| Revenues | $ | 66,807 | $ | 47,902 | $ | 200,027 | $ | 140,359 |
| Gross margin | 53% | 49% | 53% | 50% | ||||
| Operating income (loss) from continuing operations | $ | 6,877 | $ | (16,645) | $ | 48,019 | $ | (106,229) |
| Income (loss) from continuing operations, net of income taxes | $ | 4,693 | $ | (8,701) | $ | 37,003 | $ | (98,233) |
| Loss from discontinued operations, net of income taxes | $ | (8,814) | $ | (6,363) | $ | (27,057) | $ | (149,449) |
| Net (loss) income | $ | (4,121) | $ | (15,064) | $ | 9,946 | $ | (247,682) |
| Basic earnings (loss) per share from continuing operations | $ | 0.07 | $ | (0.13) | $ | 0.56 | $ | (1.02) |
| Cash and cash equivalents | $ | 69,038 | $ | 121,294 | $ | 69,038 | $ | 121,294 |
| Share buyback (thousands of shares) | 720 | - | 3,558 | 52,941 | ||||
| Weighted average number of Common shares outstanding - basic (thousands of shares) | 64,283 | 67,237 | 65,461 | 96,626 | ||||
- Consolidated revenue from continuing operations in the third quarter 2011 was $66.8 million, up $18.9 million or 39%, compared with the third quarter 2010. The increase was primarily due to increased revenues from reactor isotopes in the Medical Isotopes segment as a result of the NRU reactor resuming operations in August 2010, higher Targeted Therapies revenues primarily due to increased sales of TheraSphere, and increased shipments of Cobalt-60 (Co-60) in the Sterilization Technologies segment.
- Gross margin was 53%, compared with 49% in the third quarter of the previous fiscal year due to the strong performance of major high-margin products (Molybdenum-99 (Mo-99), TheraSphere and Co-60), while low-margin products declined or were relatively flat year-over-year.
- Operating income from continuing operations (before income taxes) in the third quarter 2011 was $6.9 million, up from a loss of $16.6 million in the third quarter 2010. Improved earnings across all segments and lower corporate selling, general and administrative expense contributed to the increase in operating income.
Segment Financial Results (with reconciliation to Net (loss) income)
