EX-99.1 2 y18881exv99w1.txt REVISED FINANCIAL STATEMENTS . . . CAMBREX CORPORATION Statement of Profit and Loss - Pro forma* For the Quarters Ended December 31, 2005 and 2004 (in thousands)
2005 2004 ---------------- ---------------- % of % of Amount Sales Amount Sales -------- ----- -------- ----- Gross Sales $120,853 100.0% $117,365 100.0% Commissions and Allowances (259) -0.2% (20) 0.0% -------- -------- Net Sales 121,112 100.2% 117,385 100.0% Other Revenues 721 0.6% 255 0.2% -------- -------- Net Revenue 121,833 100.8% 117,640 100.2% Cost of Sales 80,850 66.9% 73,571 62.7% -------- -------- Gross Profit 40,983 33.9% 44,069 37.5% Operating Expenses Sales and Marketing Expense 8,805 7.3% 9,171 7.8% Research and Development Expense 5,730 4.7% 5,723 4.9% Administrative Expense 16,378 13.5% 17,390 14.7% Amortization 564 0.5% 541 0.5% -------- -------- Total Operating Expenses 31,477 26.0% 32,825 27.9% -------- -------- Operating Profit 9,506 7.9% 11,244 9.6% Other Expenses Interest - Other 2,533 2.1% 2,479 2.1% Other (Income)/Expense, net (32) 0.0% 134 0.1% -------- -------- Total Other Expenses 2,501 2.1% 2,613 2.2% -------- -------- Income Before Taxes 7,005 5.8% 8,631 7.4% Income Tax Provision 3,208 2.7% 3,760 3.2% -------- -------- Net Income $ 3,797 3.1% $ 4,871 4.2% ======== ======== Basic Earnings per Share Net Income $ 0.14 $ 0.19 Diluted Earnings per Share Net Income $ 0.14 $ 0.18 Weighted Average Shares Outstanding Basic 26,654 26,154 Diluted 26,683 26,540
* Refer to the GAAP to Pro forma Reconciliation. CAMBREX CORPORATION Statement of Profit and Loss - GAAP For the Quarters Ended December 31, 2005 and 2004 (in thousands)
2005 2004 ------------------ ---------------- % of % of Amount Sales Amount Sales --------- ------ -------- ----- Gross Sales $ 120,853 100.0% $117,365 100.0% Commissions and Allowances (259) -0.2% (20) 0.0% --------- -------- Net Sales 121,112 100.2% 117,385 100.0% Other Revenues 721 0.6% 255 0.2% --------- -------- Net Revenue 121,833 100.8% 117,640 100.2% Cost of Sales 80,850 66.9% 73,571 62.7% --------- -------- Gross Profit 40,983 33.9% 44,069 37.5% Operating Expenses Sales and Marketing Expense 8,805 7.3% 9,171 7.8% Research and Development Expense 5,730 4.7% 5,723 4.9% Administrative Expense 20,601 17.0% 17,390 14.7% Impairment Charges 107,177 88.7% -- 0.0% Amortization 564 0.5% 541 0.5% --------- -------- Total Operating Expenses 142,877 118.2% 32,825 27.9% --------- -------- Operating (Loss)/Profit (101,894) -84.3% 11,244 9.6% Other Expenses Interest - Other 2,533 2.1% 2,479 2.1% Other (Income)/Expense, net (32) 0.0% 134 0.1% --------- -------- Total Other Expenses 2,501 2.1% 2,613 2.2% --------- -------- (Loss)/Income Before Taxes (104,395) -86.4% 8,631 7.4% Income Tax Provision 18,772 15.5% 3,760 3.2% --------- -------- Net (Loss)/Income $(123,167) -101.9% $ 4,871 4.2% ========= ======== Basic Earnings per Share Net (Loss)/Income $ (4.62) $ 0.19 Diluted Earnings per Share Net (Loss)/Income $ (4.62) $ 0.18 Weighted Average Shares Outstanding Basic 26,654 26,154 Diluted 26,654 26,540
CAMBREX CORPORATION Gross Sales, Gross Profit & Operating Profit/(Loss) by Segment For the Quarters Ended December 31, 2005 and 2004 (in thousands)
Fourth Quarter 2005 ----------------------------------------------------------------------------------------------- Gross Gross Operating OP%- Operating OP%- Sales Profit GP% Profit/(Loss)-GAAP GAAP Profit/(Loss)-Pro forma* Pro forma* -------- ------- ---- ------------------ ------ ------------------------ ---------- Bioproducts $ 35,860 $17,956 50.1% $ 5,235 14.6% $ 5,235 14.6% Biopharma 13,951 989 7.1% (84,700) -607.1% (2,317) -16.6% Human Health 71,042 22,038 31.0% (13,662) -19.2% 11,132 15.7% Corporate -- -- (8,767) (4,544) -------- ------- --------- ------- Total $120,853 $40,983 33.9% $(101,894) -84.3% $ 9,506 7.9% ======== ======= ========= =======
Fourth Quarter 2004 ----------------------------------------------------------------------------------------------- Gross Gross Operating OP%- Operating OP%- Sales Profit GP% Profit/(Loss)-GAAP GAAP Profit/(Loss)-Pro forma* Pro forma* -------- ------- ---- ------------------ ------ ------------------------ ---------- Bioproducts $ 33,918 $19,254 56.8% $ 4,514 13.3% 4,514 13.3% Biopharma 11,531 1,577 13.7% (748) -6.5% (748) -6.5% Human Health 71,916 23,238 32.3% 13,149 18.3% 13,149 18.3% Corporate -- -- (5,671) (5,671) -------- ------- ------- ------ Total $117,365 $44,069 37.5% $11,244 9.6% 11,244 9.6% ======== ======= ======= ======
Gross Sales Comparison ------------------------------------- 4Q05 4Q04 Gross Gross Change Change Sales Sales $ % -------- -------- ------ ------ Bioproducts $ 35,860 $ 33,918 $1,942 5.7% Biopharma 13,951 11,531 2,420 21.0% Human Health 71,042 71,916 (874) -1.2% -------- -------- ------ Total $120,853 $117,365 $3,488 3.0% ======== ======== ======
* Refer to the GAAP to Pro forma Reconciliation. CAMBREX CORPORATION Statement of Profit and Loss - Pro forma* For the Years Ended December 31, 2005 and 2004 (in thousands)
2005 2004 ---------------- ---------------- % of % of Amount Sales Amount Sales -------- ----- -------- ----- Gross Sales $451,986 100.0% $439,115 100.0% Commissions and Allowances 3,437 0.8% 2,258 0.5% -------- -------- Net Sales 448,549 99.2% 436,857 99.5% Other Revenues 6,548 1.5% 6,800 1.5% -------- -------- Net Revenue 455,097 100.7% 443,657 101.0% Cost of Sales 293,760 65.0% 272,917 62.1% -------- -------- Gross Profit 161,337 35.7% 170,740 38.9% Operating Expenses Sales and Marketing Expense 34,038 7.5% 32,584 7.4% Research and Development Expense 22,331 4.9% 19,659 4.5% Administrative Expense 65,767 14.6% 70,127 16.0% Amortization 2,282 0.5% 1,921 0.4% -------- -------- Total Operating Expenses 124,418 27.5% 124,291 28.3% -------- -------- Operating Income 36,919 8.2% 46,449 10.6% Other Expenses Interest - Other 10,815 2.4% 10,950 2.5% Other Expenses 40 0.0% 73 0.0% -------- -------- Total Other Expenses 10,855 2.4% 11,023 2.5% -------- -------- Income Before Taxes 26,064 5.8% 35,426 8.1% Provision for Income Taxes 13,174 2.9% 14,461 3.3% -------- -------- Income From Continuing Operations $ 12,890 2.9% $ 20,965 4.8% Discontinued Operations Loss From Discontinued Operations -- (978) -------- -------- Net Income $ 12,890 $ 19,987 ======== ======== Basic Earnings per Share Income From Continuing Operations $ 0.49 $ 0.80 Loss From Discontinued Operations $ -- $ (0.03) -------- -------- Net Income $ 0.49 $ 0.77 Diluted Earnings per Share Income From Continuing Operations $ 0.48 $ 0.79 Loss From Discontinued Operations $ -- $ (0.03) -------- -------- Net Income $ 0.48 $ 0.76 Weighted Average Shares Outstanding Basic 26,456 26,094 Diluted 26,581 26,462
* Refer to the GAAP to Pro forma Reconciliation. CAMBREX CORPORATION Statement of Profit and Loss - GAAP For the Years Ended December 31, 2005 and 2004 (in thousands)
2005 2004 ----------------- ---------------- % of % of Amount Sales Amount Sales --------- ----- -------- ----- Gross Sales $ 451,986 100.0% $439,115 100.0% Commissions and Allowances 3,437 0.8% 2,258 0.5% --------- -------- Net Sales 448,549 99.2% 436,857 99.5% Other Revenues 6,548 1.5% 6,800 1.5% --------- -------- Net Revenue 455,097 100.7% 443,657 101.0% Cost of Sales 293,760 65.0% 272,917 62.1% --------- -------- Gross Profit 161,337 35.7% 170,740 38.9% Operating Expenses Sales and Marketing Expense 34,038 7.5% 32,584 7.4% Research and Development Expense 22,331 4.9% 19,659 4.5% Administrative Expense 71,290 15.9% 70,127 16.0% Impairment Charges 107,177 23.7% 48,720 11.1% Other, net -- 0.0% (1,863) -0.4% Amortization 2,282 0.5% 1,921 0.4% --------- -------- Total Operating Expenses 237,118 52.5% 171,148 39.0% --------- -------- Operating Loss (75,781) -16.8% (408) -0.1% Other Expenses Interest - Other 10,815 2.4% 10,950 2.5% Other Expenses 40 0.0% 73 0.0% --------- -------- Total Other Expenses 10,855 2.4% 11,023 2.5% --------- -------- Loss Before Taxes (86,636) -19.2% (11,431) -2.6% Provision for Income Taxes 25,409 5.6% 14,461 3.3% --------- -------- Loss From Continuing Operations $(112,045) -24.8% $(25,892) -5.9% Discontinued Operations Loss From Discontinued Operations -- (978) --------- -------- Net Loss $(112,045) $(26,870) ========= ======== Basic Earnings per Share Loss From Continuing Operations $ (4.24) $ (0.99) Loss From Discontinued Operations $ -- $ (0.04) --------- -------- Net Loss $ (4.24) $ (1.03) Diluted Earnings per Share Loss From Continuing Operations $ (4.24) $ (0.99) Loss From Discontinued Operations $ -- $ (0.04) --------- -------- Net Loss $ (4.24) $ (1.03) Weighted Average Shares Outstanding Basic 26,456 26,094 Diluted 26,456 26,094
CAMBREX CORPORATION Gross Sales, Gross Profit & Operating Profit/(Loss) by Segment For the Years Ended December 31, 2005 and 2004 (in thousands)
Full Year 2005 ------------------------------------------------------------------------------------------------- Gross Gross Operating OP%- Operating OP%- Sales Profit GP% Profit/(Loss)-GAAP GAAP Profit/(Loss)-Pro forma* Pro forma* --------- -------- ---- ------------------ ------ ------------------------ ---------- Bioproducts $149,498 $ 77,908 52.1% $ 25,734 17.2% 25,734 17.2% Biopharma 41,698 (3,811) -9.1% (97,245) -233.2% (14,862) -35.6% Human Health 260,790 87,240 33.5% 20,711 7.9% 45,505 17.4% Corporate -- -- (24,981) (19,458) -------- -------- -------- ------- Total $451,986 $161,337 35.7% $(75,781) -16.8% 36,919 8.2% ======== ======== ======== =======
Full Year 2005 ------------------------------------------------------------------------------------------------- Gross Gross Operating OP%- Operating OP%- Sales Profit GP% Profit/(Loss)-GAAP GAAP Profit/(Loss)-Pro forma* Pro forma* --------- -------- ---- ------------------ ------ ------------------------ ---------- Bioproducts $136,108 $ 74,930 55.1% $ 26,386 19.4% 23,523 17.3% Biopharma 43,270 4,880 11.3% (53,813) -124.4% (5,093) -11.8% Human Health 259,737 90,930 35.0% 50,651 19.5% 51,651 19.9% Corporate -- -- (23,632) (23,632) -------- -------- -------- ------- Total $439,115 $170,740 38.9% $ (408) -0.1% 46,449 10.6% ======== ======== ======== =======
Gross Sales Comparison -------------------------------------- 2005 2004 Gross Gross Change Change Sales Sales $ % -------- -------- ------- ------ Bioproducts $149,498 $136,108 $13,390 9.8% Biopharma 41,698 43,270 (1,572) -3.6% Human Health 260,790 259,737 1,053 0.4% -------- -------- ------- Total $451,986 $439,115 $12,871 2.9% ======== ======== =======
* Refer to the GAAP to Pro forma Reconciliation. CAMBREX CORPORATION GAAP to Pro forma Reconciliation - Net (Loss)/Income For the Quarters and Years ended December 31, 2005 and 2004
Fourth Quarter 2005 Fourth Quarter 2004 --------------------------------- ------------------------ Net (Loss)/ Income Diluted EPS Net Income Diluted EPS ------------------- ----------- ---------- ----------- Net (Loss)/Income - As Reported $(123,167) $(4.62) $4,871 $0.18 Impairment - Goodwill and Long Lived Assets (net of tax) 105,504 3.95 -- -- Executive Severance 4,223 0.16 -- -- Domestic Tax Valuation Allowance 17,237 0.65 -- -- --------- ------ ------ ----- Net Income - Pro forma $ 3,797 $ 0.14 $4,871 $0.18 ========= ====== ====== =====
Full Year 2005 Full Year 2004 --------------------------------- -------------- ----------------- Net (Loss)/ Income Diluted EPS Net (Loss)/Income Diluted EPS ------------------- ----------- ----------------- ----------- Net Loss - As Reported $(112,045) $(4.24) $(26,870) $(1.03) Impairment - Goodwill and Long Lived Assets (net of tax) 105,504 3.97 48,720 1.84 Executive Severance 4,223 0.16 -- -- Domestic Tax Valuation Allowance 17,237 0.65 -- -- Tax Benefit (Swedish Tax Item) (3,329) (0.13) -- -- Environmental Reserve 1,300 0.05 -- -- Early Termination of Bioproducts Customer Contract -- -- (2,863) (0.11) Restructuring at European Site -- -- 1,000 0.04 --------- ------ -------- ------ Net Income - Pro forma $ 12,890 $ 0.48 $ 19,987 $ 0.76 ========= ====== ======== ======
CAMBREX CORPORATION GAAP to Pro forma Reconciliation - Operating Profit/(Loss) by Segment For the Quarters and Years ended December 31, 2005 and 2004
Fourth Quarter 2005 -------------------------------------------------------------- Bioproducts Biopharma Human Health Corporate Total ----------- --------- ------------ --------- --------- Operating Profit/(Loss) - As Reported $5,235 $(84,700) $(13,662) $(8,767) $(101,894) Impairment Charge -- 82,383 24,794 -- 107,177 Executive Severance -- -- -- 4,223 4,223 ------ -------- -------- ------- --------- Operating Profit/(Loss) - Pro forma $5,235 $ (2,317) $ 11,132 $(4,544) $ 9,506 ====== ======== ======== ======= =========
Fourth Quarter 2004 ------------------------------------------------------------- Bioproducts Biopharma Human Health Corporate Total ----------- --------- ------------ --------- -------- Operating Profit/(Loss) - As Reported $4,514 $(748) $13,149 $(5,671) $11,244 ------ ----- ------- ------- ------- Operating Profit/(Loss) - Pro forma $4,514 $(748) $13,149 $(5,671) $11,244 ====== ===== ======= ======= =======
Full Year 2005 ------------------------------------------------------------- Bioproducts Biopharma Human Health Corporate Total ----------- --------- ------------ --------- -------- Operating Profit/(Loss) - As Reported $25,734 $(97,245) $20,711 $(24,981) $(75,781) Impairment Charge -- 82,383 24,794 -- 107,177 Executive Severance -- -- -- 4,223 4,223 Environmental Reserve -- -- -- 1,300 1,300 ------- -------- ------- -------- -------- Operating Profit/(Loss) - Pro forma $25,734 $(14,862) $45,505 $(19,458) $ 36,919 ======= ======== ======= ======== ========
Full Year 2004 ------------------------------------------------------------- Bioproducts Biopharma Human Health Corporate Total ----------- --------- ------------ --------- -------- Operating Profit/(Loss) - As Reported $26,386 $(53,813) $50,651 $(23,632) $ (408) Impairment Charge -- 48,720 -- -- 48,720 Early Termination of Bioproducts Customer Contract (2,863) -- -- -- (2,863) Restructuring -- -- 1,000 -- 1,000 ------- -------- ------- -------- ------- Operating Profit/(Loss) - Pro forma $23,523 $ (5,093) $51,651 $(23,632) $46,449 ======= ======== ======= ======== =======
CAMBREX CORPORATION Consolidated Balance Sheet As of December 31, 2005 and 2004 (in thousands)
2005 2004 -------- -------- Assets Cash and Cash Equivalents $ 45,932 $ 91,532 Trade Receivables, net 74,425 68,370 Inventories, net 93,617 91,039 Other Current Assets 17,589 23,430 -------- -------- Total Current Assets 231,563 274,371 Property, Plant and Equipment, Net 229,410 280,790 Goodwill and Other Intangibles 146,708 230,656 Other Non-Current Assets 5,985 6,168 -------- -------- Total Assets $613,666 $791,985 ======== ======== Liabilities and Stockholders' Equity Trade Accounts Payable $ 38,813 $ 38,552 Accrued Liabilities 52,064 51,504 Short-term Debt and Current Portion of Long-term Debt 1,514 1,400 -------- -------- Total Current Liabilities 92,391 91,456 Long-term Debt 186,819 226,187 Deferred Tax Liabilities 31,600 21,686 Other Non-Current Liabilities 61,641 61,340 -------- -------- Total Liabilities $372,451 $400,669 Stockholders' Equity $241,215 $391,316 -------- -------- Total Liabilities and Stockholders' Equity $613,666 $791,985 ======== ========