EXHIBIT 99.1 - Cambrex Corporation Press Release dated January 27, 2005
(CAMBREX LOGO)
Date: March 15, 2005
Contact: Luke M. Beshar Anne-Marie Hess
Executive Vice President & CFO Director, Investor Relations
Phone: 201-804-3010 201-804-3062
Email: luke.beshar@cambrex.com annemarie.hess@cambrex.com
Release: Immediate
CAMBREX FILES EXTENSION FOR FORM 10-K AND ADJUSTS 2004 RESULTS
East Rutherford, NJ - March 15, 2005 - Cambrex Corporation (NYSE: CBM) announced
today that it is filing a fifteen-day extension for submission of its 2004 Form
10-K with the Securities and Exchange Commission (SEC), as permitted by the 1934
Exchange Act Rule 12b-25, in order to afford the Company the necessary time to
complete the assessment of its internal controls over financial reporting as
required by Section 404 of the Sarbanes-Oxley Act.
In its January 27, 2005 press release, the Company indicated that it was
analyzing and researching potential accounting adjustments estimated to be less
than $1.5 million on a pre-tax basis and related to prior reporting periods. The
Company has completed its analysis, which along with additional items
subsequently identified, resulted in a $1.3 million cumulative reduction to
previously reported full year 2004 net income.
Of the cumulative $1.3 million adjustment to 2004 net income,
- - $1.2 million is related to accounting for leasehold improvements placed in
service in 2003 and prior. Following a review of its lease accounting
treatment and relevant accounting literature, the Company determined that
it should use depreciable lives for its leasehold improvements that are
the shorter of the economic life of the asset or the non-cancelable lease
term.
- - $0.1 million is the net amount of adjustments for international taxes and
accruals for inventory and employee benefits.
Of the $1.3 million adjustment, $1.1 million relates to 2004 and $0.2 million
relates to prior years. Since the $0.2 million attributable to prior years was
deemed immaterial to the periods in which they occurred, the adjustment is
included in the revised results for the first quarter of 2004. The following
table summarizes the impact of the adjustments on net income versus previously
disclosed results for the periods below.
Q1 2004 Q2 2004 Q3 2004 Q4 2004 TOTAL 2004
------- ------- ------- ------- ----------
(In thousands except for EPS data)
As Reported - Income from Continuing Operations $ 8,198 $ 6,110 $ (44,195) $ 5,332 $ (24,555)
As Adjusted - Income from Continuing Operations $ 7,940 $ 6,288 $ (44,913) $ 4,819 $ (25,866)
As Reported - EPS from Continuing Operations - Diluted $ 0.31 $ 0.23 $ (1.69) $ 0.20 $ (0.94)
As Adjusted - EPS from Continuing Operations - Diluted $ 0.30 $ 0.24 $ (1.72) $ 0.18 $ (0.99)
Revised Statements of Profit and Loss and Sales and Gross Profit by Segment are
attached. The financial information contained in this press release is
unaudited, subject to revision and should not be considered final until the
Annual Report on Form 10-K is filed. The Company will file amended Forms 10-Q
for the 2004 interim periods as soon as they are available after the filing of
the 2004 Form 10-K.
The Company reiterates previously announced 2005 guidance including diluted
earnings per share for continuing operations of $0.90 to $1.10 for the full
year. As stated in the Company's release dated
Cambrex Corporation | One Meadowlands Plaza | East Rutherford, NJ 07073
Phone 201.804.3000 | Fax 201.804.9852 | www.cambrex.com
(CAMBREX LOGO)
January 27, 2005, guidance for 2005 does not include the effect of the
implementation of the reissued FASB Statement No. 123 - "Share-Based Payments".
FORWARD LOOKING STATEMENTS
This news release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 and Rule 3B-6 under The
Exchange Act, including, without limitation, statements regarding expected
performance, especially expectations with respect to sales, research and
development expenditures, earnings per share, capital expenditures,
acquisitions, divestitures, collaborations, or other expansion opportunities.
These statements may be identified by the fact that words such as "expects",
"anticipates", "intends", "estimates", "believes" or similar expressions are
used in connection with any discussion of future financial and operating
performance. The forward-looking statements contained herein are based on
current plans and expectations and involve risks and uncertainties that could
cause actual outcomes and results to differ materially from current expectations
including but not limited to, global economic trends, pharmaceutical outsourcing
trends, competitive pricing or product developments, government legislation
and/or regulations (particularly environmental issues), tax rate, technology,
manufacturing and legal issues, changes in foreign exchange rates, performance
of minority investments, un-collectable receivables, loss on disposition of
assets, cancellation or delays in renewal of contracts, and lack of suitable raw
materials or packaging materials. For further details and a discussion of these
and other risks and uncertainties, investors are cautioned to review the Cambrex
Annual Report on Form 10-K, including the Forward-Looking Statement section
therein, and other filings with the Securities and Exchange Commission. The
Company undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or otherwise.
ABOUT CAMBREX
Cambrex is a global, diversified life sciences company dedicated to providing
products and services to accelerate and improve the discovery and
commercialization of human therapeutics. The company employs approximately 1900
worldwide. For more information, please visit http://www.Cambrex.Com.
Cambrex Corporation | One Meadowlands Plaza | East Rutherford, NJ 07073
Phone 201.804.3000 | Fax 201.804.9852 | www.cambrex.com
(CAMBREX LOGO)
CAMBREX CORPORATION
Statement of Profit and Loss
Revised Quarterly 2004 Results*
(in thousands)
Restated Restated Restated Adjusted Adjusted
Q1 Q2 Q3 Q4 YTD
-- -- -- -- ---
Gross Sales $113,549 $108,951 $ 99,250 $ 117,365 $ 439,115
Commissions and Allowances 959 699 620 (20) 2,258
Net Sales 112,590 108,252 98,630 117,385 436,857
Other Revenues 3,042 1,797 1,706 255 6,800
Net Revenue 115,632 110,049 100,336 117,640 443,657
Cost of Sales 69,914 68,060 61,159 73,588 272,721
Gross Profit 45,718 41,989 39,177 44,052 170,936
Operating Expenses
Marketing/Sales Expenses 7,907 7,951 7,555 9,170 32,583
Research & Development Expenses 4,743 4,673 4,520 5,723 19,659
Administrative Expenses 17,236 16,061 17,683 17,425 68,405
Goodwill Impairment -- -- 48,720 -- 48,720
Amortization 472 445 463 541 1,921
Total Operating Expenses 30,358 29,130 78,941 32,859 171,288
Operating Profit 15,360 12,859 (39,764) 11,193 (352)
Other Expenses
Interest - Other 2,929 2,688 2,854 2,479 10,950
Other Expenses (Income), net 127 21 (209) 134 73
Total Other Expenses 3,056 2,709 2,645 2,613 11,023
Income (Loss) Before Taxes 12,304 10,150 (42,409) 8,580 (11,375)
Provision for Income Taxes 4,364 3,862 2,504 3,761 14,491
Income (Loss) from Continuing Operations $ 7,940 $ 6,288 $ (44,913) $ 4,819 $ (25,866)
Diluted Earnings per Share
Income (Loss) From Continuing Operations $ 0.30 $ 0.24 $ (1.72) $ 0.18 $ (0.99)
- ----------
* Adjustments did not impact the previously reported quarterly Loss from
Discontinued Operations
Cambrex Corporation | One Meadowlands Plaza | East Rutherford, NJ 07073
Phone 201.804.3000 | Fax 201.804.9852 | www.cambrex.com
(CAMBREX LOGO)
CAMBREX CORPORATION
Gross Sales & Gross Profit by Segment
Revised Quarterly 2004 Results
(in thousands)
First Quarter Second Quarter
------------- --------------
Gross Gross Gross Gross
Sales Profit GP% Sales Profit GP%
----- ------ --- ----- ------ ---
Bioproducts $ 34,521 18,397 53.3% $ 33,711 18,647 55.3%
Biopharma 9,119 450 4.9% 11,245 961 8.5%
Human Health 69,909 26,871 38.4% 63,995 22,381 35.0%
Total $113,549 $45,718 40.3% $108,951 $41,989 38.5%
Third Quarter Fourth Quarter
------------- --------------
Gross Gross Gross Gross
Sales Profit GP% Sales Profit GP%
----- ------ --- ----- ------ ---
Bioproducts $33,958 18,632 54.9% $ 33,918 19,254 56.8%
Biopharma 11,375 1,892 16.6% 11,531 1,577 13.7%
Human Health 53,917 18,653 34.6% 71,916 23,221 32.3%
Total $99,250 $39,177 39.5% $117,365 $44,052 37.5%
Year to Date
------------
Gross Gross
Sales Profit GP%
----- ------ ---
Bioproducts $136,108 74,930 55.1%
Biopharma 43,270 4,880 11.3%
Human Health 259,737 91,126 35.1%
Total $439,115 $170,936 38.9%
###
Cambrex Corporation | One Meadowlands Plaza | East Rutherford, NJ 07073
Phone 201.804.3000 | Fax 201.804.9852 | www.cambrex.com