[BENTLEY PHARMACEUTICALS, INC.]
Bentley Park News Release
2 Holland Way
Exeter, New Hampshire 03833
Phone: 603.658.6100
Fax: 603.658.6101
Contact:
Michael D. Price
Vice President, Chief Financial Officer
Bentley Pharmaceuticals, Inc.
603.658.6100
www.bentleypharm.com
--------------------
Investors: Deborah Ardern-Jones/Lanie Fladell
Media: Sean Leous
FD Morgen-Walke
212.850.5600
BENTLEY PHARMACEUTICALS, INC. REPORTS RECORD FIRST QUARTER RESULTS
- - Total Revenues Increase 63% (37% at constant exchange rates) to $15.0 Million
- - Net Income grows dramatically - up 11 times to $1.5 Million, or $0.08 per
Diluted Share
EXETER, NH, APRIL 29, 2003 -- Bentley Pharmaceuticals, Inc. (AMEX: BNT), a
technology-based specialty pharmaceutical and drug delivery company with a
growing branded and generic product line in Europe, today announced record
financial results for the three months ended March 31, 2003.
Total revenues for the quarter grew 63% (37% at constant exchange rates) to
$15.0 million compared to $9.2 million in the same period last year. Net product
sales increased 57% (31% at constant exchange rates) to $14.2 million, from $9.1
million in last year's first quarter. First quarter licensing and collaboration
revenues increased significantly to $0.8 million versus $0.1 million in the
first quarter of last year.
First quarter operating income more than tripled to $2.7 million from $0.8
million in the comparable 2002 quarter. Net income for the 2003 first quarter
increased to $1.5 million, or $0.08 per diluted share, compared to $135,000, or
$0.01 per diluted share, in last year's first quarter. Gross margins on net
product sales in the first quarter of 2003 were 57% compared to 58% in the same
period of the prior year.
Research and development expenses increased by 33% from $764,000 in the first
quarter of 2002 to $1.0 million in the first quarter of 2003. The expenditures
reflect our focus on projects that are necessary for expansion of our portfolio
of marketed products and clinical trials involving our drug delivery
technologies.
With respect to licensing and collaboration revenues, Bentley has recognized
royalty revenues based on estimated sell-through of pharmaceutical products, and
has deferred recognition of royalty revenues associated with the initial sales
made to wholesalers and pharmacies to fill the distribution channel.
Pharmaceutical products are typically sold with limited shelf lives and
wholesalers and pharmacies have the right to return unsold or expired product.
The company's policy, therefore, is to recognize royalty revenues based on an
estimate of the prescriptions written by physicians and filled by patients,
until such time that returns from wholesalers and pharmacies can be reasonably
estimated. The company will use available market information to determine the
amounts and timing of royalty revenues it recognizes.
James Murphy, Bentley's president and chief executive officer commented, "Our
strong first quarter results reflect significant growth in sales of our generic
pharmaceuticals in Spain."
Continuing, Mr. Murphy stated, "We continue to make significant progress - this
quarter, we have achieved milestones in both our drug delivery and
pharmaceutical product sales businesses. In February, together with our licensee
Auxilium, we announced the U.S. launch of Testim, the first product utilizing
our proprietary CPE-215(TM) technology. Last week we reported that results from
a recent study, published in the April 2003 issue of Biopharmaceutics & Drug
Disposition found that `patients treated with Auxilium's Testim, absorbed 30%
more testosterone dose for dose than patients treated with AndroGel(R), the
other commercially available testosterone gel.' In addition, together with
Auxilium, we will be announcing later today the publishing of results of
additional clinical data with respect to Testim. We look forward to giving you
more information regarding this after it has been presented at the annual
meeting of the American Urological Association (AUA) in Chicago, Illinois."
Mr. Murphy added, "Also during the quarter, we received regulatory approval by
the Spanish Ministry of Health to market the generic equivalents of well-known
cardiovascular and anti-infective pharmaceuticals Zestril/Prinivil(R) and
Augmentin(R) and are on track to launch these products in Spain during the
second half of 2003. Building on the strength of our business model and our
proprietary CPE-215 drug delivery technology, we continue to execute our
strategy of expanding our presence in Spain's emerging generic drug market and
leveraging our CPE-215 platform technology to advance our pipeline and product
portfolio."
Michael D. Price, Vice President and Chief Financial Officer added, "We are
delighted with the strong financial results this quarter, and believe the steps
we have taken to develop our business model are now beginning to be fully
recognized. Clearly, Testim's product launch is in its early stages, with only 5
weeks of product marketing during this quarter. We look forward to discussing
the potential impact that this product gives Bentley Pharmaceuticals next
quarter when we will have more data available. That said, early indications give
us confidence going forward, which combined with the growth in sales from our
Spanish operations, position the company well for the full year."
Management will host a conference call to discuss these results today, Tuesday,
April 29, 2003, at 8:30 a.m. Eastern Daylight Time. The dial-in number for U.S.
callers is (800) 603-9527; International callers should dial (706) 634-0645.
Please call in approximately 10 minutes before the scheduled time and give the
password "Bentley." Two hours after the call has finished, a replay will be
available until May 6, 2003. Please dial (800) 642-1687, access code 9851079.
International participants may dial (706) 645-9291; the access code is the same.
ABOUT BENTLEY PHARMACEUTICALS
Bentley Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on
advanced drug delivery technologies and pharmaceutical products. Bentley's
proprietary drug technologies enhance or facilitate the absorption of
pharmaceutical compounds across various membranes. Bentley also manufactures and
markets a growing portfolio of branded and generic pharmaceuticals in Spain for
the treatment of cardiovascular, gastrointestinal, infectious and neurological
diseases through its subsidiaries Laboratorios Belmac, Laboratorios Davur and
Laboratorios Rimafar.
Copies of the company's press releases and other information may be obtained
through Bentley's web site at www.bentleypharm.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: The statements which are not historical facts contained in this press
release are forward-looking statements that involve certain risks and
uncertainties including but not limited to risks associated with identifying
suitable drugs for drug delivery technologies, expanding generic and branded
drug operations, development and commercialization of our products,
relationships with our strategic partners, uncertainty of clinical trials,
regulatory approval process, product sales concentration, unpredictability of
patent protection, technological changes, the effect of economic conditions and
other uncertainties detailed in Bentley's filings with the Securities and
Exchange Commission.
- Tables to Follow -
BENTLEY PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
For the Three Months Ended March 31,
------------------------------------
2003 2002
-------- --------
Revenues:
Net product sales $ 14,235 $ 9,057
Licensing and collaboration revenues 753 117
-------- --------
Total revenues 14,988 9,174
Cost of net product sales 6,121 3,776
-------- --------
Gross profit 8,867 5,398
-------- --------
Operating expenses:
Selling and marketing 3,353 2,610
General and administrative 1,559 1,094
Research and development 1,018 764
Depreciation and amortization 283 247
-------- --------
Total operating expenses 6,213 4,715
-------- --------
Gain on sale of drug licenses -- 72
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Income from operations 2,654 755
-------- --------
Other income (expenses):
Interest income 83 16
Interest expense (54) (43)
Other -- 4
-------- --------
Income before income taxes 2,683 732
Provision for foreign income taxes 1,151 597
-------- --------
Net income $ 1,532 $ 135
======== ========
Net income per common share:
Basic $ 0.09 $ 0.01
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Diluted $ 0.08 $ 0.01
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Weighted average common shares outstanding:
Basic 17,455 14,634
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Diluted 20,350 17,922
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- MORE -
BENTLEY PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data) March 31, December 31,
2003 2002
--------- ------------
ASSETS
- ------
Current assets:
Cash and cash equivalents $ 26,042 $ 26,581
Marketable securities 409 396
Receivables, net 12,813 10,874
Inventories, net 4,670 5,133
Deferred taxes 126 123
Prepaid expenses and other 1,142 865
-------- --------
Total current assets 45,202 43,972
-------- --------
Non-current assets:
Fixed assets, net 11,856 9,565
Drug licenses and related costs, net 11,362 10,975
Other 219 180
-------- --------
Total non-current assets 23,437 20,720
-------- --------
$ 68,639 $ 64,692
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LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Accounts payable $ 6,499 $ 7,206
Accrued expenses 5,581 4,059
Short-term borrowings 1,532 1,598
Current portion of long-term debt 131 127
Deferred income 830 279
-------- --------
Total current liabilities 14,573 13,269
-------- --------
Non-current liabilities:
Taxes payable 2,205 2,141
Long-term debt 296 345
Other 181 186
-------- --------
Total non-current liabilities 2,682 2,672
-------- --------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $1.00 par value, authorized 2,000
shares, issued and outstanding, zero shares -- --
Common stock, $.02 par value, authorized 35,000 shares,
issued and outstanding, 17,458 and 17,404 shares 349 348
Stock purchase warrants (to purchase 3,292 and 3,292
shares of common stock) 431 431
Additional paid-in capital 121,504 121,084
Accumulated deficit (71,164) (72,696)
Accumulated other comprehensive income (loss) 264 (416)
-------- --------
Total stockholders' equity 51,384 48,751
-------- --------
$ 68,639 $ 64,692
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