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Copyright 2001 Business Wire, Inc.
Business Wire
APRIL 24, 2001, Tuesday
DISTRIBUTION: Business Editors
LENGTH: 1308 words
HEADLINE: INAMED Announces First-Quarter Results; Updates 2001 Outlook
DATELINE: SANTA BARBARA, Calif., April 24, 2001
BODY:
INAMED Corp. (Nasdaq:IMDC) today announced financial results for the first
quarter ended March 31, 2001.
Sales for the first quarter were $57.8 million, down 4.1% from$60.3 million
for the 2000 first quarter. Proforma earnings per share for the quarter were
$0.32, compared with $0.41 in the first quarter of the prior year. Cash earnings
per share for the quarter were $0.42, compared with $0.49 in the first quarter
of the prior year.
Proforma EPS excludes one-time after-tax charges of $5.6 million. These
charges relate to the resignation of INAMED'S former co-CEO, the closure of the
company's New York office, and a previously announced workforce reduction at the
company's McGhan Medical subsidiary in Santa Barbara.
The gross margin for the first quarter of 2001 was 73.7%, as compared to
74.0% for the first quarter of 2000. Earnings before interest and taxes (EBIT)
for the first quarter of 2001 (before restructuring charges) were $13.9 million,
as compared to EBIT of$17.1 million for the first quarter of 2000.
Commenting on the results, Richard G. Babbitt, INAMED'S chairman and chief
executive officer, said: "The softer U.S. sales that we saw in the second half
of 2000 continued through the first quarter of 2001 and resulted in a decline
year over year.
"We believe that consumers are delaying some purchases of discretionary
items, such as breast augmentation and collagen facial injections, due to
concerns about the economy. In addition, we continue to see a product mix shift
in our U.S. implant business, which is reducing average revenue per unit."
Babbitt continued, "Internationally, our total sales were off 9% from the
first quarter 2000. However, our breast implant sales were strong, up 14% from
the prior year, and we continue to gain market share in that product area. Our
European collagen sales were down 31%, in part we believe due to unfounded
concern about BSE, or mad cow disease.
"Our bovine-based collagen products are produced from BSE-free U.S. sources
which are strictly controlled and USDA-monitored. While we are still competing
favorably with competitors' non-bovine products, we are actively working with
the EU communities to reassure consumers about our products' safety, and expect
any downward pressure on sales to ease as our consumer base is reassured.
"In addition, we also offer non-bovine based collagen products outside the
U.S market, and our present plans are to launch a human collagen product both in
the U.S. and abroad in the fourth quarter.
"Our obesity business showed very strong growth in the quarter, up 29% year
over year. This is an important high-growth area for us, and we expect to
continue to lead the industry in this market.
"Overall, we are beginning to see some strengthening in our sales numbers
both in the U.S. and abroad, and while last year's second quarter results were
at record levels, we are hopeful that we will show a flat to slightly higher top
line in the second quarter against this tough year-ago comparison," Babbitt
concluded.
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The company said that it now expects sales of $240 million to $250 million
and cash EPS in the range of $1.70 to $1.90 for 2001, excluding any
non-recurring or extraordinary items.
Commenting on the company's outlook, Babbitt said: "INAMED continues to pay
close attention to our customers, markets and costs. We are focused on our core
competencies, and are concentrating our product line in the breast implant,
dermal filler and Lap-Band markets. We intend to be the market leader in each of
these markets throughout the world, and we remain confident of our excellent
long-term growth prospects."
As part of its ongoing efforts to reduce its cost structure, INAMED
recently announced workforce reductions of approximately 85 job positions at
McGhan Medical, to be completed by the end of the third quarter 2001.
Also in the 2001 third quarter, a new McGhan facility in Santa Barbara will
be in operation, consolidating McGhan's manufacturing, engineering and support
operations in one location, and eliminating inefficiencies from conducting
operations in multiple buildings. In addition, the company held its SG&A flat
compared to the year-ago quarter, excluding research and development costs.
INAMED also said that the search for a senior executive with strong
marketing experience is progressing well, and the company is pleased with the
quality of candidates it has interviewed.
Conference Call and Replay
INAMED management will host a conference call today, Tuesday, April 24, at
12:00 noon Eastern time to discuss the company's first quarter. Investors can
access the conference call in the U.S. by dialing 800/865-4460, international
callers, dial 973/633-1010, then in either case, ask to be connected to the
INAMED investor call.
In addition, you may listen to the conference call over the Internet
through Investor Broadcast Network's Vcall Web site, www.vcall.com. To listen,
go to the 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
through Vcall's Web site for 30 days after the call. It will be available
shortly after the call.
About INAMED Corp.
INAMED is a global surgical and medical device company engaged in the
development, manufacturing and marketing of products for the plastic and
reconstructive surgery, aesthetic medicine and obesity markets. INAMED sells a
variety of lifestyle products used to make people look younger and more
attractive, including breast implants for cosmetic augmentation and
collagen-based facial implants to correct facial wrinkles and to improve lip
definition.
INAMED also sells products which address women's health issues, including
breast implants for reconstructive surgery following a mastectomy, and devices
which treat severe obesity and urinary incontinence.
Forward-Looking Statements
This release contains, in addition to historical information,
forward-looking statements. Such statements are based on management's current
estimates and expectations and are subject to a number of uncertainties and
risks that could cause actual results to differ or differ materially from those
described in the forward-looking statements. For a full discussion of the risks
and uncertainties, please refer to recent SEC filings made by the company
including, without limitation, the company's annual report on SEC form 10-K for
fiscal 2000.
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Earnings Recap
(in millions, except per share data)
UNAUDITED
For the first quarter ended
March 31,
-------------------------
2001 2000
------ ------
Net Sales $ 57.8 $ 60.3
Cost of sales 15.2 15.7
Gross Margin 42.6 44.6
Gross Margin % 73.7% 74.0%
Selling, General and administrative 24.4 25.5
Research and development 2.8 2.3
Other Income (Expense) 0.8 2.2
Amortization of Intangibles 2.3 1.9
Restructuring charge 8.3 --
INCOME BEFORE INTEREST AND TAXES 5.6 17.1
Net interest 2.7 4.5
INCOME BEFORE TAXES 2.9 12.6
Taxes 1.4 4.6
NET INCOME $ 1.5 $ 8.0
Basic EPS $ 0.07 $ 0.40
Diluted EPS $ 0.07 $ 0.34
Proforma EPS $ 0.32 $ 0.41
Cash EPS $ 0.42 $ 0.49
Basic Shares 20.4 20.3
Diluted Shares 22.2 23.3
Depreciation 1.1 1.4
Amortization 2.9 2.3
EBITDA 17.9 20.8
CONTACT: INAMED Corp., New York
Michael Doty, SVP & CFO, 212/273-3430 (Investors)
or
Citigate Sard Verbinnen, New York
Denise DesChenes/Anna Cordasco, 212/687-8080 (Media)
URL: http://www.businesswire.com
LOAD-DATE: April 25, 2001