NEWS RELEASE
Craigavon, Northern Ireland/Rockaway, NJ | 6 August 2003 |
Galen Holdings PLC
Results for the third quarter ended 30 June 2003
Craigavon, Northern Ireland/Rockaway, New Jersey, USA - 6 August 2003: Galen Holdings PLC ("Galen") (LSE: GAL.L, Nasdaq: GALN), announces its results for the quarter ended 30 June 2003.
Financial Highlights
| Quarter ended 30 June 2003 ($ m) | Quarter ended 30 June 2002 ($ m) | Change (%) |
Revenues |
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- Products | 135.7 | 62.6 | 117% |
- Services(Discontinued) | -- | 15.8 | -- |
Total | 135.7 | 78.4 | 73% |
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Operating profits* |
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- Products | 61.7 | 24.1 | 156% |
- Services(Discontinued) | -- | 1.8 | -- |
Total | 61.7 | 25.9 | 138% |
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Earnings per share* |
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Adjusted EPS (cents) | 26.8 | 12.3 | 118% |
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*before amortisation of goodwill, intangibles and exceptional items
* Earnings per ordinary share, before amortisation of goodwill, intangible assets and exceptional items, including the exceptional gain on the sale of our Pharmaceutical Services business during 2002, increased to 26.8 cents, up 118% over the same quarter in the prior year.
* Total pharmaceutical product revenues increased by 117% to $135.7 million from $62.6 million reflecting strong underlying growth of 19% from our core promoted brands, Ovcon (R), Estrace (R) Cream and Doryx (R) (see table on page 4 for breakdown), the addition of Sarafem (R), the US sales and marketing rights of which were acquired in January 2003, and the addition of three products from Pfizer, Estrostep (R), Loestrin (R) and femhrt (R), acquired in March and April 2003.
* The results of the comparative quarter include the Pharmaceutical Services business, which was sold in the year ended 30 September 2002.
* Operating profit, before amortisation of goodwill and intangibles, rose to $61.7 million compared to $25.9 million in the same quarter last year, an increase of 138%.
* During the quarter, the business generated cash of $78.2 million. Cash on hand at 30 June 2003 was $107.8 million. During the quarter we purchased femhrt (R) for approximately $162 million. This transaction was financed from existing cash resources and the drawdown of $150 million in senior debt, part of a new $450 million facility put in place during the period. Net debt at 30 June 2003 was $289.2 million.
Business Highlights
* Entered into an agreement with Bristol Myers Squibb for the promotion of and option to purchase Dovonex (R).
* Licensed Dovobet (R) from LEO Pharma.
* Completed the acquisition of femhrt (R), hormone replacement therapy product from Pfizer.
* Launched Femring (R), our innovative vaginal ring for estrogen therapy, in the US.
* Initiated the deployment of the 140 person Warner Chilcott Specialty sales force.
Commenting on the results, Roger Boissonneault, Chief Executive said:
"This was truly an exceptional quarter. Recently acquired products performed well. More importantly, our core promoted brands continue to demonstrate growth and we are now in the launch phase for Femring (R), our first internally developed product approved in the US, supported by our 200 person Warner Chilcott Women's Healthcare sales force.
"The co-promotion of Dovonex (R) and the in-licensing of Dovobet (R) are particularly significant deals for us, producing opportunities for further growth and creating critical mass in our dermatology business".
For further information, please contact:
Galen Holdings PLC |
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David G. Kelly | Today: | + 44 (0) 28 3833 4974 |
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Financial Dynamics |
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Francetta Carr / Jonathan Birt | Tel: | + 44 (0) 20 7831 3113 |
For further information on Galen visit: www. Galenplc.com
A conference call will take place today at 2pm U.K. time, 9am New York time. Please call Mo Noonan on 020 7269 7116, for further details.
Note:
Forward looking statements in this report, including, without limitation, statements relating to Galen's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Galen to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. These factors include, among others, the following: Galen's ability to manage its growth, government regulation affecting the development, manufacture, marketing and sale of pharmaceutical products, customer acceptance of new products, competitive factors in the industries in which Galen operates, the loss of key senior management or scientific staff, exchange rate fluctuations, general economic and business conditions, and other factors described in filings of Galen with the SEC. Galen undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise.
Commentary on the results of the 3rd Quarter to 30 June 2003
Sales & Marketing
The Group achieved significant growth in each of its key pharmaceutical products as illustrated by the table below.
Product/Group | 3rd Quarter | % Growth over prior year Quarter | Year to Date | % Growth over prior Nine Months |
Net Sales | $'M | % | $'M | % |
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Sarafem (R) | 21.9 | N/A | 37.3 | N/A |
Ovcon (R) | 15.5 | 18% | 41.3 | 22% |
Estrostep (R) | 11.3 | N/A | 11.3 | N/A |
Loestrin (R) | 16.7 | N/A | 16.7 | N/A |
femhrt (R) | 9.1 | N/A | 9.1 | N/A |
Femring (R) | 1.7 | N/A | 1.7 | N/A |
Estrace (R) Cream | 11.7 | 15% | 32.6 | 19% |
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Estrace (R) Tablets | 6.0 | 12% | 18.9 | 13% |
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Doryx (R) | 12.7 | 24% | 43.8 | 37% |
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Duricef (R) and Moisturel (R) | 6.6 | 38% | 18.2 | N/A |
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Other US | 2.1 | -46% | 6.8 | -51% |
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Other UK and Ireland | 17.7 | 21% | 53.2 | 17% |
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International | 2.7 | N/A | 2.7 | N/A |
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TOTAL | 135.7 | 117% | 293.6 | 68% |
For the quarter ended 30 June 2003 total product sales were $135.7 million, an increase of 117% over the same quarter last year. This significant growth was driven largely by the addition of recently acquired products which were not included in the comparable sales numbers for last year, as can be seen in the above table. However, revenues also grew strongly for existing products promoted by our sales force for which the comparable quarters sales are available, i.e. Ovcon (R), Estrace (R) Cream and Doryx (R), which showed combined growth of 19% over the same quarter last year.
With regard to the recently acquired products, this was the first quarter for which we recorded a full quarter's sales of Sarafem (R), which had sales of $21.9 million in the quarter. We are pleased with this result but note that, as anticipated, scrips of Sarafem (R) have been showing some recent decline. We fully expect that bringing the promotion of this product in-house will correct this trend.
This quarter included a full three months sales for Estrostep (R) and Loestrin (R), and approximately ten weeks sales for femhrt (R). We have added an international sales line which represents sales of these products outside the US, primarily in Canada and the UK.
We launched Femring (R) in June, our vaginal ring for estrogen therapy.We had initial stocking orders of approximately $1.7 million for this product. We are pleased with the performance to date but it is still too soon to predict any trend, particularly for a product which is prescribed for a 90-day period.
We now have our expanded sales force in place. Our 200 person Warner Chilcott Women's Healthcare sales force is responsible for the launch of Femring (R), as well as the promotion of femhrt (R) and Ovcon (R). Our new 140 person Warner Chilcott Specialty sales force has already started promoting Estrostep (R), the graduated estrogen oral contraceptive product recently acquired from Pfizer, and is also responsible for the promotion of Sarafem (R) and our dermatology products, Dovonex (R) and Doryx (R).
Margins
The gross margin for the quarter was 83% compared to 73% for the same period last year. This improvement is largely attributable to the disposal of the lower margin services businesses during the last financial year and as a result of a greater proportion of our sales being generated from our US business.
Selling, General and Administrative expenses were $42.2 million in the quarter, compared to $25.5 million in the same quarter last year. This increase is due primarily to increased selling, advertising and promotion costs being incurred as we expand our sales force and increase spending on promoting our broadened product offering. In particular we expensed over $6.0 million of costs this quarter associated with the launch of Femring (R) in the US.
Operating profit, before amortisation of goodwill and intangibles, was $61.7 million (45% margin) compared to $25.9 million (33% margin) in the same quarter last year. If the services contribution for last year is excluded, the operating margin from products showed an improvement to 45% (from 39%), and increased in dollar terms to $61.7 million from $24.1 million, a rise of 156%.
Research & Development
Total research and development costs were $8.7 million, compared to $6.0 million in the same quarter last year, an increase of 46%. This increase in costs reflects ongoing investment in our development pipeline.
During the quarter, clinical work continued on our oral estradiol acetate product (Femtrace (TM)), for the treatment of the symptoms of menopause, and our vaginal ring containing metronidazole (MetroRing (R)), for the treatment of bacterial vaginosis. We expect to submit New Drug Applications (NDA's) for Femtrace (TM) and for a Doryx (R) line extension by the end of our fourth quarter. We also continue to aim to submit MetroRing (TM) in the first half of calendar 2004.
Liquidity
During the quarter femhrt (R) was purchased for approximately $162 million. This transaction was financed from existing cash resources and the drawdown of $150 million in senior bank debt. Net debt at 30 June 2003 was $289.2 million being a combination of $347.4 million term loans; $49.6 million of senior notes less $107.8 million cash. On our balance sheet, $103.3 million of this debt is classified as falling due within one year.
Cash generated from operations during the quarter was very strong at $78.2 million. Strong continuing cashflow, now complemented by cash generated from sales of newly acquired products, helped to rebuild cash on hand to $108 million.
Adoption of US Dollar
As noted previously, we have adopted the US dollar as the functional currency for the Group for the year ending 30 September 2003. We therefore present this quarter's results in US dollars under UK generally accepted accounting principles (UK GAAP).
In addition, we have included our results in US dollars under US GAAP, as we have done in prior periods.
Outlook
We are pleased with this set of results and believe that the strategy of broadening our product offering in our core therapeutic areas provides great strength to our business as we enter our final quarter. We are confident that we will deliver adjusted earnings of approximately 80 cents per share for fiscal 2003.
We are in the process of deploying our new Specialty sales force and reviving the promotion of a number of recently acquired products. In addition, validation of the manufacturing process for new Ovcon (R) continues and we are advancing that product to final approval. We are cognisant of the fact that a generic version of Ovcon (R) may be introduced prior to the approval of this line extension. However, we believe that our fiscal 2004 performance will be in line with expectations.
Unaudited results for the period ended 30 June 2003
Consolidated profit and loss account - UK GAAP
Unaudited Quarter ended 30 June | Unaudited Nine months ended 30 June | Audited Year ended 30 September | |||
2003 | 2002 | 2003 | 2002 | 2002 | |
$'000 | $'000 | $'000 | $'000 | $'000 | |
Turnover | |||||
Pharmaceutical products | 135,740 | 62,632 | 293,592 | 174,186 | 235,221 |
Pharmaceutical services - discontinued operations | - | 15,747 | - | 57,986 | 61,325 |
Total turnover | 135,740 | 78,379 | 293,592 | 232,172 | 296,546 |
Cost of sales | 23,180 | 20,930 | 56,283 | 70,963 | 89,983 |
Gross profit | 112,560 | 57,449 | 237,309 | 161,209 | 206,563 |
Net operating expenses | |||||
Selling, general and administrative expenses | 42,171 | 25,514 | 95,065 | 73,237 | 81,433 |
Research and development | 8,708 | 5,967 | 20,795 | 15,171 | 20,565 |
Goodwill amortisation | 5,961 | 6,502 | 17,567 | 18,113 | 23,255 |
Intangibles amortisation | 12,502 | 3,989 | 24,473 | 11,923 | 17,197 |
Total net operating expenses | 69,342 | 41,972 | 157,900 | 118,444 | 142,450 |
Operating profit | |||||
Before amortisation of goodwill and intangibles: | |||||
Pharmaceutical products | 61,681 | 24,124 | 121,449 | 62,358 | 94,690 |
Pharmaceutical services - discontinued operations | - | 1,844 | - | 10,443 | 9,875 |
Total before goodwill and intangibles amortisation | 61,681 | 25,968 | 121,449 | 72,801 | 104,565 |
Goodwill amortisation | (5,961) | (6,502) | (17,567) | (18,113) | (23,255) |
Intangibles amortisation | (12,502) | (3,989) | (24,473) | (11,923) | (17,197) |
Total operating profit | |||||
Pharmaceutical products | 43,218 | 14,011 | 79,409 | 33,839 | 55,584 |
Pharmaceutical services - discontinued operations | - | 1,466 | - | 8,926 | 8,529 |
43,218 | 15,477 | 79,409 | 42,765 | 64,113 | |
Gain on sale of discontinued operations | - | 105,357 | - | 116,209 | 104,984 |
Investment income | 165 | 2,442 | 2,862 | 7,043 | 10,894 |
Profit on ordinary activities before interest | 43,383 | 123,276 | 82,271 | 166,017 | 179,991 |
Interest payable and similar charges | 3,921 | 13,437 | 7,169 | 26,727 | 30,592 |
Profit on ordinary activities before taxation | 39,462 | 109,839 | 75,102 | 139,290 | 149,399 |
Tax on profit on ordinary activities | 8,752 | 1,781 | 15,065 | 8,314 | 13,461 |
Profit on ordinary activities after taxation | 30,710 | 108,058 | 60,037 | 130,976 | 135,938 |
Minority interests | - | - | - | 46 | 46 |
Profit for the financial period | 30,710 | 108,058 | 60,037 | 130,930 | 135,892 |
Dividends | - | - | 3,474 | 2,635 | 8,353 |
Retained profit for the period | 30,710 | 108,058 | 56,563 | 128,295 | 127,539 |
Earnings per share (cents) | 16.7 | 58.4 | 32.7 | 70.7 | 73.4 |
Diluted earnings per share (cents) | 16.7 | 58.1 | 32.7 | 70.2 | 72.9 |
Adjusted earnings per share (cents) | 26.8 | 12.3 | 55.6 | 31.8 | 47.8 |
Adjusted diluted earnings per share (cents) | 26.7 | 12.3 | 55.4 | 31.7 | 47.5 |
Unaudited results for the period ended 30 June 2003
Consolidated balance sheet - UK GAAP
Unaudited 30 June | Audited 30 September | ||
2003 | 2002 | 2002 | |
$'000 | $'000 | $'000 | |
Fixed assets | |||
Intangible assets | 1,370,523 | 776,675 | 756,672 |
Tangible assets | 64,362 | 61,292 | 60,840 |
1,434,885 | 837,967 | 817,512 | |
Current assets | |||
Stocks | 28,722 | 29,546 | 26,902 |
Debtors | 70,494 | 43,021 | 37,260 |
Cash at bank and in hand | 107,779 | 410,367 | 313,012 |
206,995 | 482,934 | 377,174 | |
Creditors: amounts falling due within one year | 241,458 | 82,602 | 75,866 |
Net current (liabilities) / assets | (34,463) | 400,332 | 301,308 |
Total assets less current liabilities | 1,400,422 | 1,238,299 | 1,118,820 |
Creditors: amounts falling due after more than one year | 293,774 | 174,103 | 50,953 |
Provisions for liabilities and charges | 5,430 | 5,242 | 3,410 |
Deferred income | 6,180 | 4,903 | 6,189 |
Net assets | 1,095,038 | 1,054,051 | 1,058,268 |
Capital and reserves | |||
Called up share capital | 29,636 | 29,104 | 29,578 |
Share premium account | 382,986 | 372,481 | 382,749 |
Capital redemption reserve | 323 | - | 323 |
Merger reserve | 457,800 | 445,649 | 457,800 |
Profit and loss account | 224,293 | 206,817 | 187,818 |
Equity shareholders' funds | 1,095,038 | 1,054,051 | 1,058,268 |
Unaudited results for the period ended 30 June 2003
Consolidated cash flow statement - UK GAAP
Unaudited Quarter ended 30 June | Unaudited Nine months ended 30 June | Audited Year ended 30 September | |||
2003 | 2002 | 2003 | 2002 | 2002 | |
$'000 | $'000 | $'000 | $'000 | $'000 | |
Net cash inflow from operating activities | 78,196 | 25,686 | 137,124 | 65,293 | 93,451 |
Returns on investments and servicing of finance | |||||
Interest paid | (1,258) | (13,060) | (4,533) | (26,229) | (35,174) |
Interest received | 165 | 2,322 | 3,764 | 6,929 | 10,815 |
(1,093) | (10,738) | (769) | (19,300) | (24,359) | |
Taxation | |||||
Corporation tax paid | (3,480) | (1,601) | (8,571) | (3,492) | (6,634) |
Capital expenditure | |||||
Purchase of tangible fixed assets | (1,037) | (3,458) | (5,446) | (14,110) | (17,086) |
Sale of tangible fixed assets | 40 | - | 40 | - | - |
Purchase of intangible fixed assets | (164,725) | - | (667,643) | (42,863) | (43,694) |
Government grant received | 194 | 832 | 501 | 813 | 2,161 |
(165,528) | (2,626) | (672,548) | (56,160) | (58,619) | |
Acquisitions and disposals | |||||
Sale of businesses (net of costs) | - | 183,373 | (324) | 214,255 | 230,789 |
Acquisition costs and deferred consideration payments | - | - | - | (8,944) | (9,118) |
- | 183,373 | (324) | 205,311 | 221,671 | |
Equity dividends paid | - | - | (5,767) | (4,552) | (7,449) |
Net cash flow before management of liquid resources and financing | (91,905) | 194,094 | (550,855) | 187,100 | 218,061 |
Management of liquid resources | |||||
(Increase) / decrease in short term deposits | (63,000) | (98,606) | 201,500 | (55,764) | 27,523 |
Financing | |||||
Issue of ordinary share capital (net of expenses) | 274 | 31 | 295 | 133 | 247 |
Purchase of own shares | - | - | - | - | (11,813) |
Loan notes repaid | - | (81,149) | - | (99,259) | (112,623) |
Loans received / (repaid) (net) | 149,405 | (19,987) | 345,603 | (25,887) | (132,126) |
Principal repayment under hire purchase agreements | (23) | (299) | (275) | (434) | (549) |
149,656 | (101,404) | 345,623 | (125,447) | (256,864) | |
Increase / (decrease) in cash in the period | (5,249) | (5,916) | (3,732) | 5,889 | (11,280) |
Unaudited results for the period ended 30 June 2003
Notes to results
1 Basis of preparation
The financial information for the quarterly and nine months periods ended 30 June 2003 and 2002, which is unaudited and does not constitute statutory accounts, has been prepared using accounting policies consistent with those set out in the group's 30 September 2002 statutory accounts.
The abridged financial information for the year ended 30 September 2002 has been extracted from the group's statutory accounts for that year, which have been filed with the Registrar of Companies. The report of the auditors on those accounts was unqualified.
Earnings per ordinary share is based on profit for the financial period and on the weighted average number of ordinary shares in issue during the period, excluding those held in the employee share trust.Diluted earnings per share is calculated using an adjusted number of shares reflecting the number of dilutive shares under option.Adjusted earnings per share figures reflecting the results from continuing operations before the impact of exceptional items and goodwill and intangibles amortisation have been calculated to provide shareholders with a clearer understanding of the underlying trading performance of the group (see below).
The weighted average numbers of shares used in the calculation of earnings per share are as follows:
Quarter ended 30 June | Nine months ended 30 June | Year ended 30 September | |||
2003 Number | 2002 Number | 2003 Number | 2002 Number | 2002 Number | |
Weighted average number of shares: | |||||
Basic | 183,472,269 | 185,181,122 | 183,462,609 | 185,177,622 | 185,244,963 |
Diluted | 184,436,944 | 186,029,010 | 184,167,786 | 186,444,272 | 186,330,634 |
Quarter ended 30 June | Nine months ended 30 June | Year ended 30 September | |||
Adjusted earnings per share (cents) | 2003 | 2002 | 2003 | 2002 | 2002 |
Earnings per ordinary share | 16.7 | 58.4 | 32.7 | 70.7 | 73.4 |
Adjustments (net of tax): | |||||
Gain on sale of businesses | - | (56.9) | - | (61.6) | (54.5) |
Goodwill and intangibles amortisation | 10.1 | 5.7 | 22.9 | 16.2 | 21.8 |
Exceptional costs of notes redemption | - | 5.1 | - | 6.5 | 7.1 |
Adjusted earnings per share - basic | 26.8 | 12.3 | 55.6 | 31.8 | 47.8 |
Summary of differences between UK and US Generally Accepted Accounting Principles ("GAAP")
The group financial statements are prepared in accordance with UK GAAP which differs in certain significant respects from US GAAP. The effect of the US GAAP adjustments to profit for the financial period and equity shareholders' funds are set out in the tables below:
9 months to 30 June | ||
2003 | 2002 | |
$'000 | $'000 | |
Unaudited | ||
(a) Reconciliation of profit for the financial year to US GAAP | ||
Profit for the financial period under UK GAAP | 60,037 | 130,930 |
US GAAP adjustments: | ||
Amortisation of goodwill | 17,567 | 17,544 |
Amortisation of intangibles | (3,238) | (764) |
Depreciation of interest capitalised | (39) | (38) |
Deferred taxation | (8,895) | (4,964) |
Compensation expense | (242) | (243) |
Deferred tax effect of US GAAP adjustments | 330 | 322 |
US GAAP adjustments total | 5,483 | 11,857 |
Profit for the financial period under US GAAP | 65,520 | 142,787 |
As at 30 June 2003 | As at 30 September 2002 | |
$'000 | $'000 | |
Unaudited | ||
(b) Effect on equity shareholders' funds of differences between UK GAAP and US GAAP | ||
Equity shareholders' funds under UK GAAP | 1,095,038 | 1,058,268 |
US GAAP adjustments: | ||
Acquisition accounting | (119,053) | (133,382) |
Functional currency adjustment | 21,906 | - |
Capitalisation of interest | 2,515 | 2,554 |
Deferred taxation | (32,765) | (24,200) |
Employee benefit trust | (11,479) | (11,153) |
Share premium account | 11,479 | 11,153 |
Dividends | 3,474 | 5,767 |
US GAAP adjustments total | (123,923) | (149,261) |
Equity shareholders' funds under US GAAP | 971,115 | 909,007 |
Unaudited consolidated statement of operations - US GAAP
(In thousands of US dollars, except per share data)
Quarter ended June 30 | Nine months ended June 30 | |||
2003 | 2002 | 2003 | 2002 | |
$'000 | $'000 | $'000 | $'000 | |
Revenues | ||||
Product revenue | 135,740 | 62,632 | 293,592 | 174,186 |
Operating expenses | ||||
Cost of sales (excluding depreciation shown separately below) | 22,055 | 11,772 | 53,018 | 35,736 |
Selling, general and administrative | 41,818 | 19,779 | 94,069 | 57,895 |
Research and development | 8,708 | 5,638 | 20,795 | 14,409 |
Depreciation | 1,571 | 1,365 | 4,542 | 3,922 |
Amortisation | 14,202 | 5,153 | 27,711 | 13,980 |
Total operating expenses | 88,354 | 43,707 | 200,135 | 125,942 |
Operating income | 47,386 | 18,925 | 93,457 | 48,244 |
Other income (expense) | ||||
Interest income | 165 | 2,423 | 2,862 | 6,966 |
Interest expense | (3,921) | (13,813) | (7,169) | (25,827) |
Total other income (expense) | (3,756) | (11,390) | (4,307) | (18,861) |
Income before taxes | 43,630 | 7,535 | 89,150 | 29,383 |
Provision for income taxes | 12,747 | 1,335 | 23,630 | 7,898 |
Income from continuing operations | 30,883 | 6,200 | 65,520 | 21,485 |
Discontinued operations: | ||||
Earnings from discontinued operations (net of tax charge of $607K) | - | 1,443 | - | 7,255 |
Gain on disposal of discontinued operations (net of tax charge of $nil) | - | 105,357 | - | 114,047 |
Net income | 30,883 | 113,000 | 65,520 | 142,787 |
Basic and diluted net income per ordinary share: | ||||
- continuing operations | 0.17 | 0.04 | 0.36 | 0.12 |
- earnings and gain on disposal of discontinued operations | - | 0.57 | - | 0.65 |
Basic and diluted net income per ordinary share | 0.17 | 0.61 | 0.36 | 0.77 |
Basic net income per ADS equivalent: | ||||
- continuing operations | 0.67 | 0.16 | 1.43 | 0.46 |
- earnings and gain on disposal of discontinued operations | - | 2.28 | - | 2.62 |
Basic net income per ADS equivalent | 0.67 | 2.44 | 1.43 | 3.08 |
Diluted net income per ADS equivalent: | ||||
- continuing operations | 0.67 | 0.16 | 1.42 | 0.46 |
- earnings and gain on disposal of discontinued operations | - | 2.27 | - | 2.60 |
Diluted net income per ADS equivalent | 0.67 | 2.43 | 1.42 | 3.06 |
Weighted average ordinary shares outstanding | ||||
Basic | 183,472,269 | 185,181,122 | 183,462,609 | 185,177,622 |
Diluted | 184,436,944 | 186,029,010 | 184,167,786 | 186,444,272 |
Weighted average ADS equivalents outstanding | ||||
Basic | 45,868,067 | 46,295,280 | 45,865,652 | 46,294,405 |
Diluted | 46,109,236 | 46,507,252 | 46,041,946 | 46,611,068 |
Unaudited consolidated balance sheets - US GAAP
(In thousands of US dollars)
As at June 30 | Audited As at September 30 | |
2003 | 2002 | |
$'000 | $'000 | |
Assets | ||
Current assets: | ||
Cash and cash equivalents | 107,779 | 313,012 |
Accounts receivable, net | 59,040 | 32,869 |
Inventories | 28,722 | 26,902 |
Deferred tax asset | 7,590 | 7,718 |
Prepaid expense and other assets | 11,459 | 4,397 |
214,590 | 384,898 | |
Property, plant and equipment, net | 66,877 | 63,394 |
Intangible assets, net | 1,359,543 | 623,939 |
Total assets | 1,641,010 | 1,072,231 |
Liabilities | ||
Current liabilities: | ||
Accounts payable | 16,913 | 14,007 |
Accrued and other liabilities | 101,613 | 44,053 |
Current instalments of long-term debt | 102,977 | 616 |
Current instalments of obligation under capital leases | 282 | 392 |
Income taxes | 16,218 | 11,052 |
Total current liabilities | 238,003 | 70,120 |
Other liabilities: | ||
Long-term debt, excluding current instalments | 293,747 | 50,729 |
Long-term obligations under capital leases, excluding current instalments | 27 | 224 |
Deferred income taxes | 131,938 | 35,962 |
Other non-current liabilities | 6,180 | 6,189 |
Total liabilities | 669,895 | 163,224 |
Shareholders' equity | ||
Ordinary shares, par value (pounds sterling) 0.10 per share; 250,000,000 (September 30, 2002;250,000,000) shares authorised, 188,164,443 shares issued and outstanding at June 30 2003 and 187,805,263 issued and outstanding at September 30, 2002 |
30,039 |
29,981 |
Additional paid in capital | 677,895 | 677,417 |
Retained earnings | 251,559 | 191,806 |
Treasury stock | (23,893) | (23,893) |
Accumulated other comprehensive income | 35,515 | 33,696 |
Total shareholders' equity | 971,115 | 909,007 |
Total liabilities and shareholders' equity | 1,641,010 | 1,072,231 |
Unaudited consolidated statements of cash flows - US GAAP
(In thousands of US dollars)
Quarter ended 30 June | Nine months ended 30 June | |||
2003 | 2002 | 2003 | 2002 | |
$'000 | $'000 | $'000 | $'000 | |
Cash flows from operating activities | ||||
Net income | 30,883 | 113,000 | 65,520 | 142,787 |
Adjustment to reconcile net income to net cash provided by operating activities: |
| |||
Depreciation | 1,571 | 2,225 | 4,542 | 7,188 |
Amortisation of intangibles | 14,202 | 5,153 | 27,711 | 13,980 |
Profit on sale of business | - | (105,357) | - | (116,210) |
Amortisation of government grants | (324) | (337) | (830) | (1,329) |
Changes in assets and liabilities: | ||||
Increase in accounts receivable, prepaid expense and other assets | (16,506) | (4,198) | (31,461) | (13,592) |
Increase in inventories | (2,583) | (3,188) | (1,820) | (5,348) |
Increase in accounts payable, accrued liabilities and other liabilities | 36,437 | 9,984 | 49,348 | 13,321 |
Income taxes | 9,143 | 10,590 | 15,042 | 13,226 |
Foreign exchange (loss)/gain | 715 | (1,259) | (353) | 2,011 |
Net cash provided by operating activities | 73,538 | 26,613 | 127,699 | 56,034 |
Cash flows from investing activities | ||||
Purchase of tangible fixed assets | (1,037) | (3,919) | (5,446) | (14,445) |
Sale of tangible fixed assets | 40 | - | 40 | - |
Purchase of intangible fixed assets | (164,725) | (5,700) | (667,643) | (47,737) |
Government grants received | 194 | 832 | 501 | 832 |
Proceeds from sale of businesses (net of costs) | - | 180,368 | (324) | 216,126 |
Deferred consideration and acquisition costs | - | - | - | (8,772) |
Net cash (used in)/provided by investing activities | (165,528) | 171,581 | (672,872) | 146,004 |
Cash flows from financing activities | ||||
Long term debt (repaid)/obtained | 149,405 | (17,447) | 345,603 | (26,229) |
Loan notes repaid | - | (79,100) | - | (99,100) |
Payments under capital leases | (23) | (132) | (275) | (445) |
Cash dividends paid | - | - | (5,767) | 132 |
Proceeds from share capital issue (net of expenses) | 274 | 31 | 295 | (4,465) |
Net cash provided by/(used in) financing activities | 149,656 | (96,648) | 339,856 | (130,107) |
Net increase/(decrease) in cash and cash equivalents | 57,666 | 101,546 | (205,317) | 71,931 |
Cash and cash equivalents, beginning of period | 50,029 | 290,215 | 313,012 | 326,076 |
Foreign exchange adjustment on cash and cash equivalents | 84 | 18,606 | 84 | 12,360 |
Cash and cash equivalents, end of period | 107,779 | 410,367 | 107,779 | 410,367 |
