WOODCLIFF LAKE, N.J., March 13 /PRNewswire-FirstCall/ -- Par Pharmaceutical Companies, Inc. today filed with the U.S. Securities and Exchange Commission its 2005 Annual Report on Form 10-K/A that, due to inadvertent accounting errors, restates certain of its previously issued consolidated financial statements. Par previously disclosed that it would restate its consolidated financial statements for certain prior periods. The company also said that as a result of the restatement, it must delay filing its Form 10-K for the year ended Dec. 31, 2006, which was required to be filed by March 1, 2007. Par intends to file its Form 10-Q/A for the first, second and third quarters of 2006 and its Form 10-K for 2006 at the earliest practicable date.
The table below sets forth the impact of the restatement adjustments on the company's reported net income (loss) for the years ended Dec. 31, 2005, 2004 and 2003. Net Income/(Loss) (in millions) 2003 2004 2005 Previously Reported Net Income (Loss) $122.5 $29.2 $(8.3) Restatement Adjustments: Pre-tax Restatement Adjustments (26.1) (35.5) (11.8) Tax effect of Restatement Adjustments 10.2 13.9 4.8 After tax Restatement Adjustments (15.9) (21.6) (7.0) Net Income (Loss), as Restated $106.6 $7.6 $(15.3)
The cumulative effect of the restatement adjustments on net income for periods prior to 2003 was a decrease of $11.9 million pre-tax and $7.3 million after tax.
The company does not expect the restatement to have an impact on its ongoing sales and operations. Par currently has cash, cash equivalents and available for sale securities on hand of approximately $237 million and there has been no increase in the company's borrowings in 2006 or 2007.
For a copy of Par's 2005 Annual Report on Form 10-K/A, visit Investors/SEC Filings on the Par Web site at www.parpharm.com.
About Par
Par Pharmaceutical Companies, Inc. develops, manufactures and markets generic drugs and innovative branded pharmaceuticals for specialty markets. For press release and other company information, visit www.parpharm.com.
Safe Harbor Statement
Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. To the extent any statements made in this news release contain information that is not historical, these statements are essentially forward-looking and as such, are subject to risks and uncertainties, including the extent and impact of litigation arising out of the accounting issue described in this and prior public announcements, including the lawsuit brought against the company by the trustee for the company's Senior Subordinated Convertible Notes seeking an accelerated payment of the $200 million of principal of and accrued interest on the notes or, in the alternative, damages, the difficulty of predicting FDA filings and approvals, acceptance and demand for new pharmaceutical products, the impact of competitive products and pricing, new product development and launch, reliance on key strategic alliances, uncertainty of patent litigation filed against the company, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks and uncertainties detailed from time to time in the company's filings with the Securities and Exchange Commission (SEC), such as the company's reports on Form 10-K, Form 10-Q, and Form 8-K, and amendments thereto. The company can make no assurance as to the potential effects of the restatement, including the effects of any investigations, informal or otherwise, conducted by the SEC, or other entities, or lawsuits filed against the company in connection therewith. Any forward-looking statements included in this press release are made as of the date here of only, based on information available to the company as of the date hereof, and, subject to any applicable law to the contrary, the company assumes no obligation to update any forward-looking statements.
Par Pharmaceutical Companies, Inc.CONTACT: Investor, Stephen J. Mock; or Media, Peter Wolf, both of ParPharmaceutical Companies, Inc., +1-201-802-4000
Web site: http://www.parpharm.com/
