EX-99.1 3 c76228exv99w1.txt PRESS RELEASE, DATED 4/16/03 EXHIBIT 99.1 FOR IMMEDIATE RELEASE CONTACT: Joseph W. Kaufmann President and Chief Executive Officer (610) 524-0188 KENSEY NASH ANNOUNCES 99% INCREASE IN NET INCOME DRIVEN BY 72% INCREASE IN NET SALES FOR ITS THIRD FISCAL QUARTER -COMPANY FURTHER INCREASES GUIDANCE FOR FISCAL YEAR- EXTON, PA, APRIL 16, 2003 -- Kensey Nash Corporation (Nasdaq: KNSY) today announced record financial results for its third fiscal quarter ended March 31, 2003. Total revenues for the third quarter, which include both net sales and royalty income, increased 61% to $11.7 million compared to $7.2 million in the prior year period. Net sales increased 72% to $7.2 million from $4.2 million in the comparable quarter of the prior fiscal year, while royalty income increased 48% to $4.2 million from $2.8 million. Operating income increased 164% to $2.9 million for the quarter and reflects the strength of the company's core business. Despite the impact of a declining interest rate environment, net income for the quarter increased 99% to $2.0 million, or $0.17 per share, compared to $1.0 million, or $0.09 per share, for the prior period. These results exceeded the previously announced guidance for the quarter of $11.0 million in revenue and $0.16 per share for net income. Total revenues for the nine months ended March 31, 2003 increased 49% to $31.1 million compared to $20.9 million in the prior year period. Net sales increased 44% to $18.8 million from $13.1 million in the comparable nine months of the prior fiscal year. Royalty income increased 59% to $11.7 million from $7.4 million. Operating income for the nine months increased 100% to $7.2 million compared to $3.6 million for the prior year period. Net income for the nine months increased 64% to $5.2 million, or $0.46 per share, compared to $3.2 million, or $0.28 per share, for the prior period. Kensey Nash's balance sheet continued to be strong with $76.5 million of total assets, $68.9 million of stockholders' equity and only $1.3 million of total debt. During the quarter, the company generated cash from operations of $4.1 million, and reported $41.0 million of cash and investments at March 31, 2003. "We are pleased to report strong results for the quarter," commented Joseph W. Kaufmann, president and CEO of Kensey Nash Corporation. "Sales of our biomaterials products continued to expand significantly exceeding $7 million in the quarter. This represents an increase of 70% over last year and 12% sequentially. Sales of both cardiology and sports medicine products were the primary drivers in the quarter. In addition, Angio-Seal(TM) royalties continued to increase, resulting in our sixth consecutive record quarter. We had originally targeted top and bottom line growth for our fiscal year 2003 in excess of 30%. Now our outlook is for 45 to 50% top line growth and earnings per share growth of over 50%. This is despite significant increases in research and development spending, and the establishment of a sales and marketing infrastructure for the launch of our TriActiv(R) system in Europe." "We are also pleased to report continuing progress with the commercial launch of our TriActiv System in Europe and clinical status in the U.S.," Mr. Kaufmann continued. "This quarter we recorded net sales in excess of $100,000 in the European Union. Furthermore, we continue to enroll patients in our PRIDE randomized pivotal clinical trial to support a U.S. regulatory approval. We are working diligently to complete our enrollment and meet our goal for U.S. approval in early calendar year 2004," he concluded. The Company is raising its previously announced guidance for the fourth quarter and fiscal year. Total revenues for the fourth fiscal quarter are estimated to be in the $12.0 to $12.5 million range, including net sales in the $7.4 to $7.9 million range, royalty income of $4.3 million and research and development revenue of $300,000. -5- Net of income tax, the Company expects to record approximately $0.18 to $0.19 earnings per share in the fourth quarter and $0.64 to $0.65 for its fiscal year. A live webcast of the conference call will be broadcast Thursday, April 17, 2003 at 11:00 AM eastern time. Please visit the investor relations page at www.kenseynash.com for the link. To participate in the conference call, interested parties may call 612-332-0107. A replay of the call will also be available starting April 17, 2003 at 2:30 PM Eastern until Tuesday April 22, 2003 at midnight eastern time by calling 800-475-6701, access code 680524. A recording of the broadcast will be available on the Kensey Nash website for one year following the date of the call. Kensey Nash Corporation has significant expertise and experience in designing, developing, manufacturing and processing proprietary absorbable biomaterials products for the cardiology, orthopedics, drug and biologics delivery, periodontal/dental and wound care markets. The Company is also a leader in the development of cardiovascular medical technology devices for arterial puncture closure. The Company's TriActiv(R) Balloon Protected Flush Extraction System for the treatment of saphenous vein graft disease is available for sale in the European Union and is in clinical trials in the United States. Angio-Seal is a trademark of St. Jude Medical, Inc. The TriActiv System is designed to prevent heart attacks during the treatment of saphenous vein grafts (SVGs) in patients who previously received coronary bypass surgery, but now have blockages in the grafts. The device incorporates three features to address the common problem of distal embolization - a protection balloon guidewire, a flush catheter, and an extraction system to remove debris from the grafts. This press release contains forward-looking statements that reflect the Company's current expectations about its prospects and opportunities, including, without limitation, the revenue and earnings guidance provided by the Company for its fourth fiscal quarter and fiscal 2003. The Company tried to identify these forward looking statements by using words such as "expects," "anticipates," "estimates," "plans" or similar expressions. The Company cautions that a number of risks, uncertainties, and other important factors could cause the Company's actual results to differ materially from those in the forward-looking statements including, without limitation, St. Jude Medical's success in marketing the Angio-Seal(TM) device, demand for and the Company's ability to develop and manufacture biomaterial products, including Angio-Seal(TM) components, clinical and marketing success of the TriActiv(R) system, additional regulatory approvals, and competition from other technologies in the marketplace. For a more detailed discussion of these and other factors, please see the Company's SEC filings. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason. The Company also cautions that results of operations in any past period should not be considered indicative of the results to be expected for future periods. Fluctuations in operating results may also result in fluctuations in the price of the Common Stock. -FINANCIAL INFORMATION TO FOLLOW- -6- KENSEY NASH CORPORATION CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
THREE MONTHS NINE MONTHS ENDED MARCH 31, ENDED MARCH 31, --------------------------- --------------------------- 2003 2002 2003 2002 --------------------------- --------------------------- Revenues: Net sales $ 7,249,690 $ 4,209,622 $18,765,321 $13,060,499 Research and development 246,678 198,120 611,311 478,853 Royalty income 4,171,353 2,818,180 11,725,845 7,388,280 --------------------------- --------------------------- Total revenues 11,667,721 7,225,922 31,102,477 20,927,632 --------------------------- --------------------------- Operating costs and expenses: Cost of products sold 3,239,491 2,062,734 8,560,081 6,277,640 Research and development 3,690,769 2,813,438 10,245,484 7,877,592 Selling, general and administrative 1,885,142 1,269,627 5,090,324 3,172,772 --------------------------- --------------------------- Total operating costs and expenses 8,815,402 6,145,799 23,895,889 17,328,004 --------------------------- --------------------------- Income from operations 2,852,319 1,080,123 7,206,588 3,599,628 Interest and other income, net 231,901 420,312 834,388 1,248,665 --------------------------- --------------------------- Pre-tax income 3,084,220 1,500,435 8,040,976 4,848,293 Income tax 1,125,596 517,650 2,838,969 1,672,661 --------------------------- --------------------------- Net income $ 1,958,624 $ 982,785 $ 5,202,007 $ 3,175,632 =========================== =========================== Income per common share, assuming dilution $ 0.17 $ 0.09 $ 0.46 $ 0.28 =========================== =========================== Weighted average common shares outstanding 11,556,775 11,361,024 11,403,112 11,240,536 =========================== ===========================
-7- CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
MARCH 31, JUNE 30, 2003 2002 ASSETS Current assets: Cash, cash equivalents and investments $41,008,355 $31,874,263 Trade receivables 3,456,375 3,331,046 Other receivables 4,708,925 3,645,617 Officer loan 1,962,523 1,882,369 Inventory 3,494,778 2,518,924 Prepaids and other assets 2,121,823 1,160,834 Deferred tax asset, current 375,936 1,313,517 ----------- ----------- Total current assets 57,128,715 45,726,570 ----------- ----------- Property, plant and equipment, net 12,229,497 11,310,928 Acquired puncture closure patents, net 2,739,405 2,936,674 Deferred tax asset, non-current 1,075,714 1,608,760 Goodwill 3,284,303 3,284,303 Restricted investments - 2,113,072 ----------- ----------- Total assets $76,457,634 $66,980,307 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 5,983,017 $ 2,810,845 Current portion of debt 821,584 978,902 Deferred revenue 322,625 293,035 ----------- ----------- Total current liabilities 7,127,226 4,082,782 ----------- ----------- Long-term debt 434,261 1,330,484 ----------- ----------- Total stockholders' equity 68,896,147 61,567,041 ----------- ----------- Total liabilities and stockholders' equity $76,457,634 $66,980,307 =========== ===========
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