8-K

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): July 27, 2004

POLYMEDICA CORPORATION

(Exact name of registrant as specified in charter)

Massachusetts	0-19842	04-3033368
(State or other juris- diction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

11 State Street, Woburn, Massachusetts 10801

(Address of principal executive offices)(Zip Code)

Registrant’s telephone number, including area code: (781) 933-2020

Not Applicable

(Former name or former address, if changed since last report)

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TABLE OF CONTENTS

	Item 12. Results of Operations and Financial Condition.
	Item 7. Financial Statements, Pro Forma Financial Information And Exhibits.
SIGNATURE
EXHIBIT INDEX
EX-99.1 Press Release Dated 7/27/2004

Item 12. Results of Operations and Financial Condition.

     On July 27, 2004, PolyMedica Corporation announced its financial results for the quarter ended June 30, 2004. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K.

     The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 7. Financial Statements, Pro Forma Financial Information And Exhibits.

(a) Financial Statements of Businesses Acquired

     Not Applicable.

(b) Pro Forma Financial Information

     Not Applicable.

(c) Exhibits

99.1     Press Release, dated July 27, 2004.

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SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 27, 2004	POLYMEDICA CORPORATION
	By:	/s/ Fred H. Croninger, III
		Fred H. Croninger, III
		Chief Financial Officer

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release dated July 27, 2004.

4

EX-99.1

Exhibit 99.1

     

POLYMEDICA ANNOUNCES RESULTS FOR FISCAL 2005 FIRST QUARTER
ENDED JUNE 30, 2004

WOBURN, MA – July 27, 2004 — PolyMedica Corporation (NNM: PLMD) today announced its financial results for the fiscal 2005 first quarter ended June 30, 2004.

Fiscal 2005 First Quarter Results

Net revenues for the fiscal 2005 first quarter were $111.1 million, a 12.3% increase compared to $98.9 million for the fiscal 2004 first quarter. Net income for the fiscal 2005 first quarter was $13.8 million, a 24.1% increase over the $11.1 million in net income recorded in the fiscal 2004 first quarter, and diluted earnings per share were $0.50 for the fiscal 2005 first quarter, a 13.6% increase compared to diluted earnings per share of $0.44 (on a split-adjusted basis) for the fiscal 2004 first quarter. Cash flow from operations was $16.2 million for the fiscal 2005 first quarter, a 61.2% improvement compared to $10.1 million for the fiscal 2004 first quarter.

Commenting on the financial results for the quarter, Chairman and Chief Executive Officer Samuel L. Shanaman said, “We’re very pleased with our financial results for the June quarter. Revenues in our core Diabetes business grew by more than 16 percent compared to last year, and pre-tax income for that business increased 30 percent, as we continue to benefit from economies of scale and cost-saving initiatives. Because of the dramatic reduction in reimbursement rates for respiratory medications scheduled to go into effect next January, we continue to manage the contraction of our Respiratory business, which was off 21 percent on the top line compared with last year, as expected. However, the base of Diabetes customers on which we’re building the future of the business continues to expand, and we feel very good about the direction in which the Company is moving.”

Shanaman added, “Our cash flow for the June quarter, which was helped by a strong collections effort, was truly outstanding.”

Guidance

The Company expects to report net revenues of $114 — 118 million and diluted earnings per share of $0.50 — $0.54 for the fiscal 2005 second quarter ending September 30, 2004.

Conference Call and Replay

PolyMedica management will host a conference call and live Webcast today, Tuesday, July 27, at 4:30 p.m., EDT, to discuss the Company’s fiscal first quarter. To listen to the conference call over the Internet, go to www.polymedica.com or www.fulldisclosure.com. Go to either Web site at least 15 minutes early to register and download and install any necessary audio software. For those unable to participate, a rebroadcast will be made available at www.polymedica.com and www.fulldisclosure.com for 90 days after the call. It will be available shortly after the call.

About PolyMedica (www.polymedica.com)

PolyMedica is a rapidly growing national medical products company. The Company is best known through its Liberty brand name and innovative direct-to-consumer television advertising to seniors with diabetes. Building on its technology-based operating platform and compliance management focus, PolyMedica continues to expand its product offerings to individuals with chronic diseases.

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, rules and regulations promulgated under the Act, unanticipated changes in Medicare reimbursement, outcomes of government reviews, inquiries and investigations and related litigation, continued compliance with government regulations, fluctuations in customer demand, management of rapid growth, competition from other healthcare product vendors, timing and acceptance of new product introductions, general economic conditions, geopolitical events and regulatory changes, as well as other especially relevant risks detailed in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the period ended March 31, 2004. The information set forth herein should be read in light of such risks. The Company assumes no obligation to update the information contained in this press release.

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For additional information, contact:

Investors:	Media:
Fred (“Skip”) Croninger	Denise DesChenes / Jim Barron
PolyMedica Corporation	Citigate Sard Verbinnen
(781) 933-2020	(212) 687-8080

(Financial Tables Follow)

PolyMedica Corporation
Consolidated Statements of Operations
(In thousands, except per share amounts)

	Three Months Ended
	June 30,			June 20,			$			%
	2004			2003			Change			Change
Net revenues	$	111,140		$	98,937		$	12,203			12.3	%
Cost of sales		43,788			35,769			8,019			22.4
Gross margin		67,352			63,168			4,184			6.6
Selling, general and administrative expenses		45,618			45,531			87			0.2
Income from operations		21,734			17,637			4,097			23.2
Other income and expense		197			206			(9	)		(4.4	)
Income before income taxes		21,931			17,843			4,088			22.9
Income tax provision		8,158			6,745			1,413			20.9
Net income	$	13,773		$	11,098		$	2,675			24.1	%
Diluted earnings per share:
Net income	$	0.50		$	0.44		$	0.06			13.6	%
Weighted average shares, diluted		27,527			25,344			2,183			8.6	%
Supplemental information on segment net revenues:
Liberty Diabetes	$	78,450		$	67,529		$	10,921			16.2	%
Liberty Respiratory		15,782			19,867			(4,085	)		(20.6	)
Pharmaceuticals		16,908			11,541			5,367			46.5
Total net revenues	$	111,140		$	98,937		$	12,203			12.3	%
Supplemental summarized information on cash flows:
Cash flows from operating activities	$	16,203		$	10,051		$	6,152			61.2	%
Cash flows from investing activities *		(2,843	)		(8,837	)		5,994
Cash flows from financing activities		3,375			(2,739	)		6,114
Net change in cash and cash equivalents		16,735			(1,525	)		18,260
Beginning cash and cash equivalents		69,229			27,162			42,067
Ending cash and cash equivalents	$	85,964		$	25,637		$	60,327			235.3	%

*  Includes the net maturity/(net purchase) of $150,000 and $(5.6) million of marketable securities in the three months ended June 30, 2004 and 2003, respectively.

PolyMedica Corporation
Consolidated Balance Sheets
(In thousands)

	June 30,		March 31,
	2004		2004
ASSETS
Current assets:
Cash and cash equivalents	$	85,964	$	69,229
Marketable securities		7,271		7,421
Restricted cash		512		512
Accounts receivable, net		51,994		63,828
Inventories		24,353		18,745
Deferred income taxes		18,331		18,331
Income tax receivable		—		2,530
Prepaid expenses and other current assets		6,606		4,438
Total current assets		195,031		185,034
Property, plant and equipment, net		62,242		61,659
Goodwill		5,946		5,946
Intangible assets, net		560		383
Direct response advertising, net		66,468		64,953
Other assets		1,271		1,193
Total assets	$	331,518	$	319,168
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	28,793	$	33,746
Current portion, capital lease obligations		280		292
Total current liabilities		29,073		34,038
Capital lease and other obligations		1,712		1,691
Deferred income taxes		24,611		24,611
Total liabilities		55,396		60,340
Total shareholders’ equity		276,122		258,828
Total liabilities and shareholders’ equity	$	331,518	$	319,168