SILVER SPRING, Md., Oct. 31 /PRNewswire-FirstCall/ -- United Therapeutics Corporation today announced financial results for the quarter ended September 30, 2005.
“We are pleased to report that United Therapeutics’ revenues for the quarter ended September 30, 2005 totaled $33.0 million, representing a 65% increase over the same quarter in 2004. Net income for the quarter increased 152% over the same quarter in 2004 to $15.8 million, or $0.69 per basic share,” said Martine Rothblatt, Ph.D., United Therapeutics’ Chairman and Chief Executive Officer. “In addition to these solid operating results, our financial position continued strengthening. Cash flows from operating activities for the nine months ended September 30, 2005 were $35.6 million and we had $181.6 million of cash and investments at September 30, 2005.”
Financial Results
Revenues grew to $33.0 million in the third quarter of 2005, as compared to $20.0 million in the third quarter of 2004. Gross margins from sales were $29.6 million in the third quarter of 2005, as compared to $17.8 million in the third quarter of 2004. The increases in revenues and gross margins resulted primarily from expanded sales of Remodulin. Net income was $15.8 million or $0.69 per basic share in the third quarter of 2005, as compared to net income of $6.3 million or $0.29 per basic share in the third quarter of 2004.
Research and development expenses were $9.4 million in the third quarter of 2005, as compared to $7.3 million in the third quarter of 2004. The increase in research and development expenses was due primarily to increased expenses related to Remodulin related programs. Selling, general and administrative expenses were $5.6 million in the third quarter of 2005, as compared to $4.8 million in the third quarter of 2004. The increase in selling, general and administrative expenses was due primarily to increases in salary and related expenses.
Interest income was $1.4 million in the third quarter of 2005, as compared to $771,000 in the third quarter of 2004. The increase was due to increases in market interest rates and additional cash available for investing during 2005, as compared to 2004.
Conference Call
United Therapeutics will host a half-hour teleconference on Monday, October 31, 2005 at 9:00 a.m. Eastern Time. The teleconference is accessible by dialing 1-800-946-0782, with international dialers calling +1-719-457-2657. A rebroadcast of the teleconference will be available for one week following the teleconference by dialing 1-888-203-1112, with international callers dialing +1-719-457-0820, and using access code 7775864.
United Therapeutics is a biotechnology company focused on the development and commercialization of unique products for patients with chronic and life- threatening cardiovascular, cancer and infectious diseases.
UNITED THERAPEUTICS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS DATA (In thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2005 2004 2005 2004 Revenues: Net product sales $31,562 $19,027 $82,142 $49,002 Service sales 1,383 968 3,870 2,975 License fees 65 - 262 - Total revenues 33,010 19,995 86,274 51,977 Operating expenses: Research and development 9,423 7,322 26,589 23,212 Selling, general and administrative 5,620 4,815 17,985 15,872 Cost of product sales 2,936 1,690 7,609 4,632 Cost of service sales 496 470 1,553 1,366 Total operating expenses 18,475 14,297 53,736 45,082 Income from operations 14,535 5,698 32,538 6,895 Other income (expense): Interest income 1,418 771 3,600 2,094 Interest expense (7) (4) (8) (6) Equity loss in affiliate (189) (244) (564) (482) Other, net 6 45 40 58 Total other income, net 1,228 568 3,068 1,664 Income before income tax 15,763 6,266 35,606 8,559 Income tax expense - - - - Net income $15,763 $6,266 $35,606 $8,559 Net income per common share: Basic $0.69 $0.29 $1.57 $0.40 Diluted $0.61 $0.27 $1.41 $0.37 Weighted average number of common shares outstanding: Basic 22,913 21,850 22,700 21,525 Diluted 25,708 23,418 25,268 22,856 CONSOLIDATED BALANCE SHEET DATA As of September 30, 2005 (In thousands) Cash, cash equivalents and marketable investments (including restricted amounts of $20,557) $181,563 Total assets $257,173 Total liabilities $18,816 Total stockholders’ equity $238,357
United Therapeutics Corporation
CONTACT: Andrew Fisher of United Therapeutics Corporation,+1-301-608-9292, Afisher@unither.com
Web site: http://www.unither.com/
