| Contact: | Anthony Griffo Investor Relations Bradley Pharmaceuticals, Inc. 973-882-1505, ext. 313 | |
| For Immediate Release |
| BRADLEY PHARMACEUTICALS ANNOUNCES SECOND QUARTER 2003 SALES UP 75% AND EARNINGS UP 88% |
| Fairfield, NJ - July 31, 2003 - BRADLEY PHARMACEUTICALS, INC. (NYSE: BDY) today announced Net Sales for the Second Quarter 2003, ended June 30, totaled approximately $16.3 million, an increase of $7.0 million, or 75%, compared to the Net Sales of $9.4 million reached in the same period last year. Net Income for the Second Quarter reached $3.4 million, up $1.6 million, or 88%, with Earnings Per Diluted Share of $0.29, an increase of $0.13, compared to the same period in 2002. Rosula® Aqueous Gel and AnaMantle® HC, introduced in First Quarter 2003, continue their trend of strong growth, achieving sales of $1.6 million in Second Quarter 2003. |
| First Half 2003 Net Sales reached $31.3 million, an increase of $12.6 million, or 68%, over Net Sales for the First Half 2002. As a result of the Company’s strong First and Second Quarter performance, Net Income for the First Half 2003 reached $6.3 million, an increase of $2.7 million, or 78% over First Half 2002. Net Income Per Diluted Common Share for First Half 2003 has increased to $0.54, versus $0.31 for the same six-month period a year ago. |
| President and CEO Daniel Glassman, stated, “The Management Team is very pleased with the significant sales and profit growth of Bradley Pharmaceuticals over year-ago levels. Sales for the Second Quarter reflected a strong demand for Bradley’s brands, specifically the CARMOL® product line. Recently introduced ROSULA® Aqueous Gel acne and rosacea therapy and AnaMantle® HC hemorrhoid treatment have continued their positive trend of new prescription increases. As Bradley moves ahead in 2003, Management looks forward to continued growth fueled by rising new prescriptions and an expanded sales force.” |
| Bradley Pharmaceuticals (BDY) invites you to participate in the 2nd Qtr. 2003 Earnings conference call Thursday, July 31, 2003, at 10 AM (ET), Questions & Answers to follow. Please dial 1-888-573-3046 approximately 10 minutes prior to the start time of the call. Playback of the conference call will be available on Thursday after 4 PM (ET) for 24 hours, by calling 1-800-642-1687 and entering reservation number 1452430. This call also will be available online at www.bradpharm.com for 30 days. |
| Except for historical and factual information, this press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements that address activities, events or developments that Bradley expects, believes or anticipates will or may occur in the future, such as earnings estimates and predictions of future financial performance. All forward-looking statements are based on assumptions made by Bradley based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. These statements are subject to numerous risks and uncertainties, many of which are beyond Bradley’s control, including Bradley’s ability to maintain CARMOL® sales and bear the outcome of related pending litigation and the introduction of new and future competing products, effectively purchase or integrate new products into its portfolio or effectively react to other risks described from time to time in Bradley’s SEC filings. Further, Bradley cannot predict the impact on its business of any future approvals of generic or therapeutically equivalent versions of its products or of other competing products. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Bradley undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. |
| BRADLEY PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
| Three Months Ended | Six Months Ended | ||||||||
| June 30, | June 30, | ||||||||
| 2003 | 2002 | 2003 | 2002 | ||||||
| ||||||||||
| Net sales | $16,349,913 | $ 9,355,657 | $31,265,598 | $18,648,983 | |||||
| Cost of sales | 1,413,717 | 1,086,658 | 2,708,492 | 2,197,202 | |||||
| 14,936,196 | 8,268,999 | 28,557,106 | 16,451,781 | ||||||
| ||||||||||
| Selling, general and | |||||||||
| administrative expenses | 9,090,448 | 5,106,127 | 17,824,025 | 10,265,865 | |||||
| Depreciation and amortization | 305,085 | 281,930 | 587,810 | 556,152 | |||||
| Interest income | (98,765) | (80,481) | (211,809) | (184,070) | |||||
| Interest expense | 102,687 | 22,969 | 109,259 | 49,536 | |||||
| 9,399,455 | 5,330,545 | 18,309,285 | 10,687,483 | ||||||
| ||||||||||
| Income before | |||||||||
| income taxes | 5,536,741 | 2,938,454 | 10,247,821 | 5,764,298 | |||||
| ||||||||||
| Income tax expense | 2,160,000 | 1,146,000 | 3,997,000 | 2,248,000 | |||||
| ||||||||||
| Net income | $ 3,376,741 | $ 1,792,454 | $ 6,250,821 | $ 3,516,298 | |||||
| ||||||||||
| Net income | |||||||||
| per common share | |||||||||
| Basic | $ 0.32 | $ 0.17 | $ 0.59 | $ 0.34 | |||||
| Diluted | $ 0.29 | $ 0.16 | $ 0.54 | $ 0.31 | |||||
| ||||||||||
| Weighted average number | |||||||||
| of common shares | |||||||||
| Basic | 10,600,000 | 10,460,000 | 10,560,000 | 10,440,000 | |||||
| Diluted | 11,860,000 | 11,430,000 | 11,660,000 | 11,500,000 | |||||
| BRADLEY PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED BALANCE SHEET |
| June 30, 2003 | December 31, 2002 | |||
| (unaudited) | ||||
| ASSETS | ||||
| Current assets | ||||
| Cash and cash equivalents | $ 55,495,275 | $ 20,820,725 | ||
| Short-term investments | 4,419,695 | 5,188,091 | ||
| Accounts receivable - net | 1,373,925 | 3,892,863 | ||
| Inventories | 2,522,121 | 2,165,727 | ||
| Deferred tax asset | 1,937,417 | 1,339,755 | ||
| Prepaid expenses and other | 1,320,119 | 804,563 | ||
| Prepaid income taxes | - | 315,558 | ||
| Total current assets | 67,068,552 | 34,527,282 | ||
| Property and equipment - net | 1,026,275 | 915,681 | ||
| Intangible assets - net | 5,646,441 | 6,059,143 | ||
| Goodwill | 289,328 | 289,328 | ||
| Deferred tax asset | 2,519,733 | 2,787,479 | ||
| Deferred financing costs | 1,863,864 | 127,291 | ||
| Other assets | 7,326 | 7,326 | ||
| Total Assets | $ 78,421,519 | $ 44,713,530 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Liabilities | ||||
| Current liabilities: | ||||
| Current maturities of long-term debt | $ 218,512 | $ 224,510 | ||
| Accounts payable | 2,744,758 | 1,750,901 | ||
| Accrued expenses | 5,056,521 | 4,389,041 | ||
| Income taxes payable | 116,513 | - | ||
| Total current liabilities | 8,136,304 | 6,364,452 | ||
| Long-term liabilities: | ||||
| Long-term debt, less current maturities | 66,503 | 155,362 | ||
| Convertible senior subordinated notes due 2013 | 25,000,000 | - | ||
| Stockholders' equity | ||||
| Preferred stock, $.01 par value; | ||||
| authorized, 2,000,000 shares; issued, none | - | - | ||
| Common stock, $.01 par value, authorized | ||||
| 26,400,000; issued 11,050,657 shares at | ||||
| June 30, 2003, 10,836,018 shares at December 31, 2002 | 110,506 | 108,360 | ||
| Common, Class B, $.01 par value, authorized | ||||
| 900,000 shares, issued and outstanding, | ||||
| 429,752 shares at June 30, 2003 and December 31, 2002 | 4,298 | 4,298 | ||
| Additional paid-in capital | 32,352,751 | 31,153,596 | ||
| Retained earnings | 14,819,883 | 8,569,062 | ||
| Accumulated other comprehensive gain | 203,016 | 98,323 | ||
| Treasury stock, at cost (832,309 shares at | ||||
| June 30, 2003, 793,195 shares at December 31, 2002) | (2,271,742) | (1,739,923) | ||
| 45,218,712 | 38,193,716 | |||
| Total liabilities and stockholders' equity | $ 78,421,519 | $ 44,713,530 | ||
