-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, C3BABBGNve7bLRwu+31sFPvucpVxfHXLkzcU4AnsvTQwKIsf46bV4oPdXw3Kn4Q5 eG5+mlVNS7427mw66SXXmQ== 0000950124-04-001859.txt : 20040428 0000950124-04-001859.hdr.sgml : 20040428 20040428083745 ACCESSION NUMBER: 0000950124-04-001859 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040427 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LANNETT CO INC CENTRAL INDEX KEY: 0000057725 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 230787699 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31298 FILM NUMBER: 04758593 BUSINESS ADDRESS: STREET 1: 9000 STATE RD CITY: PHILADELPHIA STATE: PA ZIP: 19136 BUSINESS PHONE: 2153339000 MAIL ADDRESS: STREET 1: 9000 STATE ROAD STREET 2: 9000 STATE ROAD CITY: PHLADELPHIA STATE: PA ZIP: 19136 FORMER COMPANY: FORMER CONFORMED NAME: NETHERLANDS SECURITIES INC DATE OF NAME CHANGE: 19660629 8-K 1 k84893e8vk.txt CURRENT REPORT, DATED APRIL 27, 2004 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Date of Report (Date of earliest event reported): April 27, 2004 LANNETT COMPANY, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 0-9036 23-0787-699 - -------------------------------- ----------- ------------------ State or other Jurisdiction Commission I.R.S. Employer of Incorporation or Organization File Number Identification No. 9000 State Road, Philadelphia, PA 19136 --------------------------------------------------- Address of Principal Executive Offices and Zip Code Registrant's telephone number, including area code: (215) 333-9000 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (C) Exhibits 99.1 April 27, 2004 Press Release ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On April 27, 2004, registrant announced its results of operations for the quarter ended and nine months ended March 31, 2004, as set forth in the press release, a copy of which is included as Exhibit 99.1 hereto. This information shall not be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date of this report, regardless of any general incorporation language in the filing. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. LANNETT COMPANY, INC By: /s/ Larry Dalesandro Chief Financial Officer Date: April 27, 2004 EXHIBIT INDEX Exhibit: Description: 99.1 April 27, 2004 Press Release EX-99.1 2 k84893exv99w1.txt PRESS RELEASE, DATED APRIL 27, 2004 EXHIBIT 99.1 LANNETT COMPANY REPORTS SALES AND EARNINGS RESULTS FOR ITS 3RD QUARTER AND FIRST NINE MONTHS OF FISCAL 2004 PHILADELPHIA, PA -- April 27, 2004 -- LANNETT COMPANY, INC. (AMEX: LCI), a manufacturer of generic pharmaceuticals, announced its results of operations for the quarter ended and nine months ended March 31, 2004. The following table presents Lannett's unaudited results of operations for the quarters ended March 31, 2004 and March 31, 2003 and the nine-month periods ended March 31, 2004 and March 31, 2003:
3/31/04 3/31/03 3/31/04 3/31/03 Unaudited Unaudited Unaudited Unaudited (In thousands, except (In thousands, except for Diluted Income per Share) for Diluted Income per Share) Net Sales $16,001 $11,020 $45,796 $30,330 Cost of Sales 6,948 3,977 18,405 11,778 ------- ------- ------- ------- Gross Profit 9,053 7,043 27,391 18,552 Research & Development Expenses 1,362 683 3,501 1,669 Selling, General & Admin. Expenses 2,276 1,067 6,180 3,224 ------- ------- ------- ------- Operating Profit 5,415 5,293 17,710 13,659 Other Income/(Expense) 2 (123) 4 (161) ------- ------- ------- ------- Income Before Taxes 5,417 5,170 17,714 13,498 Income Tax Expense 2,218 1,914 7,258 4,928 ------- ------- ------- ------- Net Income 3,199 3,256 10,456 8,570 ======= ======= ======= ======= Diluted Income per Share $ 0.16 $ 0.16 $ 0.52 $ 0.43 ======= ======= ======= =======
Arthur Bedrosian, Lannett's President, commenting on the results for the quarter, stated, "Lannett is pleased with its results of operations for the third quarter of this Fiscal 2004 year. Sales for the quarter ended March 31, 2004 increased by 45% from sales for the quarter ended March 31, 2003. For the nine months ended March 31, 2004, sales increased by 51% from sales for the nine months ended March 31, 2003. Sales increased due to the introduction of new products, including Levothyroxine Sodium tablets and Unithroid tablets, and the increase in sales of a portion of the Company's other products. Our net sales revenue remained consistent with the prior quarter (Second Quarter Fiscal 2004) because the Company has not introduced a new product on the market since August of 2003, when the Company launched its sales and distribution campaign for Unithroid tablets. The Company has embarked on a mission to improve its long-term value, and competitive position in the generic marketplace. This involves a strategy to invest heavily in research and development (R&D) projects, and to continually improve our operating infrastructure. We have invested in several R&D projects, and expect those investments to be paid back as we submit Abbreviated New Drug Applications (ANDAs) to the Food and Drug Administration (FDA), and gain marketing approval for such drugs. The Company is also working on other R&D projects, including drug products which do not require FDA approval, and agreements with third parties for various new product initiatives. The cost of such programs are part of our expenses for the current period. Spending on R&D increased to $3.5 million for the nine months ended March 31, 2004 compared to $1.7 million for the same period of the prior year. In addition to the R&D program, the Company has taken steps to ensure that its operating infrastructure is strong. This includes instituting internal controls, consistent with the Sarbanes-Oxley Act of 2002, implementing an integrated Enterprise Resource Planning (ERP) system and related Electronic Data Interchange (EDI) capabilities, continuing to expand the knowledge and education of our employees through various training and educational programs, recruiting and hiring experienced managers and supervisors with specialized knowledge in diverse functions and establishing compensation programs to provide for additional incentive awards. In addition to these efforts, the Company has increased its sales and marketing endeavors by hiring an additional sales representative, and expanding the advertising campaigns for its new products. These actions have increased the Company's selling, general and administrative (SG&A) expenses in the current periods noted. Total SG&A expenses increased to $6.2 million for the nine months ended March 31, 2004 compared to $3.2 million for the same period of the prior year." In addition to higher SG&A expenses, the Company's effective income tax rate increased in the current periods due to higher federal, state and local tax liabilities. Lannett continues to have a strong balance sheet with an excellent working capital ratio. As of March 31, 2004, the Company had a cash position of $7.9 million, net accounts receivable of $12.3 million, inventory of $10.3 million, current liabilities of $5.9 million and stockholders equity of $32.4 million. The Company's common stock trades on the American Stock Exchange under the symbol "LCI". For more information please call Investor Relations at 215/333-9000. THIS PRESS RELEASE CONTAINS CERTAIN STATEMENTS OF A FORWARD-LOOKING NATURE RELATING TO FUTURE EVENTS OR FUTURE BUSINESS PERFORMANCE. ANY SUCH STATEMENTS THAT REFER TO LANNETT'S ESTIMATED OR ANTICIPATED FUTURE FINANCIAL RESULTS, FUTURE INVENTORY LEVELS, FUTURE COMPETITION OR PRICING, FUTURE LEVELS OF OPERATING EXPENSES, PRODUCT DEVELOPMENT EFFORTS OR PERFORMANCE, OR OTHER NON-HISTORICAL FACTS ARE FORWARD-LOOKING AND REFLECT LANNETT'S CURRENT PERSPECTIVE OF EXISTING TRENDS AND INFORMATION. THESE STATEMENTS INVOLVE RISKS AND UNCERTAINTIES THAT CANNOT BE PREDICTED OR QUANTIFIED AND, CONSEQUENTLY, ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES INCLUDE, AMONG OTHERS, THE UNCERTAINTY THAT ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THE PRELIMINARY RESULTS DESCRIBED IN THIS PRESS RELEASE, RATES OF SALE OF CUSTOMER INVENTORIES, THE SUCCESS OF LANNETT'S PRODUCT DEVELOPMENT ACTIVITIES AND THE TIMELINESS WITH WHICH REGULATORY AUTHORIZATIONS AND PRODUCT ROLL-OUT MAY BE ACHIEVED, MARKET ACCEPTANCE OF LANNETT'S PRODUCTS AND THE IMPACT OF COMPETITIVE PRODUCTS AND PRICING, THE AVAILABILITY ON COMMERCIALLY REASONABLE TERMS OF RAW MATERIALS AND OTHER THIRD PARTY SOURCED PRODUCTS, SUCCESSFUL COMPLIANCE WITH EXTENSIVE, COSTLY, COMPLEX AND EVOLVING GOVERNMENTAL REGULATIONS AND RESTRICTIONS, EXPOSURE TO PRODUCT LIABILITY AND OTHER LAWSUITS AND CONTINGENCIES, AND OTHER RISKS AND UNCERTAINTIES DETAILED IN LANNETT'S MOST RECENT FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING BUT NOT LIMITED TO: LANNETT'S ANNUAL REPORT AND FORM 10-KSB FOR THE YEAR ENDED JUNE 30, 2003. ### -----END PRIVACY-ENHANCED MESSAGE-----