.
.
.
CAMBREX CORPORATION
Statement of Profit and Loss - Pro forma*
For the Quarters Ended December 31, 2005 and 2004
(in thousands)
2005 2004
---------------- ----------------
% of % of
Amount Sales Amount Sales
-------- ----- -------- -----
Gross Sales $120,853 100.0% $117,365 100.0%
Commissions and Allowances (259) -0.2% (20) 0.0%
-------- --------
Net Sales 121,112 100.2% 117,385 100.0%
Other Revenues 721 0.6% 255 0.2%
-------- --------
Net Revenue 121,833 100.8% 117,640 100.2%
Cost of Sales 80,850 66.9% 73,571 62.7%
-------- --------
Gross Profit 40,983 33.9% 44,069 37.5%
Operating Expenses
Sales and Marketing Expense 8,805 7.3% 9,171 7.8%
Research and Development Expense 5,730 4.7% 5,723 4.9%
Administrative Expense 16,378 13.5% 17,390 14.7%
Amortization 564 0.5% 541 0.5%
-------- --------
Total Operating Expenses 31,477 26.0% 32,825 27.9%
-------- --------
Operating Profit 9,506 7.9% 11,244 9.6%
Other Expenses
Interest - Other 2,533 2.1% 2,479 2.1%
Other (Income)/Expense, net (32) 0.0% 134 0.1%
-------- --------
Total Other Expenses 2,501 2.1% 2,613 2.2%
-------- --------
Income Before Taxes 7,005 5.8% 8,631 7.4%
Income Tax Provision 3,208 2.7% 3,760 3.2%
-------- --------
Net Income $ 3,797 3.1% $ 4,871 4.2%
======== ========
Basic Earnings per Share
Net Income $ 0.14 $ 0.19
Diluted Earnings per Share
Net Income $ 0.14 $ 0.18
Weighted Average Shares Outstanding
Basic 26,654 26,154
Diluted 26,683 26,540
* Refer to the GAAP to Pro forma Reconciliation.
CAMBREX CORPORATION
Statement of Profit and Loss - GAAP
For the Quarters Ended December 31, 2005 and 2004
(in thousands)
2005 2004
------------------ ----------------
% of % of
Amount Sales Amount Sales
--------- ------ -------- -----
Gross Sales $ 120,853 100.0% $117,365 100.0%
Commissions and Allowances (259) -0.2% (20) 0.0%
--------- --------
Net Sales 121,112 100.2% 117,385 100.0%
Other Revenues 721 0.6% 255 0.2%
--------- --------
Net Revenue 121,833 100.8% 117,640 100.2%
Cost of Sales 80,850 66.9% 73,571 62.7%
--------- --------
Gross Profit 40,983 33.9% 44,069 37.5%
Operating Expenses
Sales and Marketing Expense 8,805 7.3% 9,171 7.8%
Research and Development Expense 5,730 4.7% 5,723 4.9%
Administrative Expense 20,601 17.0% 17,390 14.7%
Impairment Charges 107,177 88.7% -- 0.0%
Amortization 564 0.5% 541 0.5%
--------- --------
Total Operating Expenses 142,877 118.2% 32,825 27.9%
--------- --------
Operating (Loss)/Profit (101,894) -84.3% 11,244 9.6%
Other Expenses
Interest - Other 2,533 2.1% 2,479 2.1%
Other (Income)/Expense, net (32) 0.0% 134 0.1%
--------- --------
Total Other Expenses 2,501 2.1% 2,613 2.2%
--------- --------
(Loss)/Income Before Taxes (104,395) -86.4% 8,631 7.4%
Income Tax Provision 18,772 15.5% 3,760 3.2%
--------- --------
Net (Loss)/Income $(123,167) -101.9% $ 4,871 4.2%
========= ========
Basic Earnings per Share
Net (Loss)/Income $ (4.62) $ 0.19
Diluted Earnings per Share
Net (Loss)/Income $ (4.62) $ 0.18
Weighted Average Shares Outstanding
Basic 26,654 26,154
Diluted 26,654 26,540
CAMBREX CORPORATION
Gross Sales, Gross Profit & Operating Profit/(Loss) by Segment
For the Quarters Ended December 31, 2005 and 2004
(in thousands)
Fourth Quarter 2005
-----------------------------------------------------------------------------------------------
Gross Gross Operating OP%- Operating OP%-
Sales Profit GP% Profit/(Loss)-GAAP GAAP Profit/(Loss)-Pro forma* Pro forma*
-------- ------- ---- ------------------ ------ ------------------------ ----------
Bioproducts $ 35,860 $17,956 50.1% $ 5,235 14.6% $ 5,235 14.6%
Biopharma 13,951 989 7.1% (84,700) -607.1% (2,317) -16.6%
Human Health 71,042 22,038 31.0% (13,662) -19.2% 11,132 15.7%
Corporate -- -- (8,767) (4,544)
-------- ------- --------- -------
Total $120,853 $40,983 33.9% $(101,894) -84.3% $ 9,506 7.9%
======== ======= ========= =======
Fourth Quarter 2004
-----------------------------------------------------------------------------------------------
Gross Gross Operating OP%- Operating OP%-
Sales Profit GP% Profit/(Loss)-GAAP GAAP Profit/(Loss)-Pro forma* Pro forma*
-------- ------- ---- ------------------ ------ ------------------------ ----------
Bioproducts $ 33,918 $19,254 56.8% $ 4,514 13.3% 4,514 13.3%
Biopharma 11,531 1,577 13.7% (748) -6.5% (748) -6.5%
Human Health 71,916 23,238 32.3% 13,149 18.3% 13,149 18.3%
Corporate -- -- (5,671) (5,671)
-------- ------- ------- ------
Total $117,365 $44,069 37.5% $11,244 9.6% 11,244 9.6%
======== ======= ======= ======
Gross Sales Comparison
-------------------------------------
4Q05 4Q04
Gross Gross Change Change
Sales Sales $ %
-------- -------- ------ ------
Bioproducts $ 35,860 $ 33,918 $1,942 5.7%
Biopharma 13,951 11,531 2,420 21.0%
Human Health 71,042 71,916 (874) -1.2%
-------- -------- ------
Total $120,853 $117,365 $3,488 3.0%
======== ======== ======
* Refer to the GAAP to Pro forma Reconciliation.
CAMBREX CORPORATION
Statement of Profit and Loss - Pro forma*
For the Years Ended December 31, 2005 and 2004
(in thousands)
2005 2004
---------------- ----------------
% of % of
Amount Sales Amount Sales
-------- ----- -------- -----
Gross Sales $451,986 100.0% $439,115 100.0%
Commissions and Allowances 3,437 0.8% 2,258 0.5%
-------- --------
Net Sales 448,549 99.2% 436,857 99.5%
Other Revenues 6,548 1.5% 6,800 1.5%
-------- --------
Net Revenue 455,097 100.7% 443,657 101.0%
Cost of Sales 293,760 65.0% 272,917 62.1%
-------- --------
Gross Profit 161,337 35.7% 170,740 38.9%
Operating Expenses
Sales and Marketing Expense 34,038 7.5% 32,584 7.4%
Research and Development Expense 22,331 4.9% 19,659 4.5%
Administrative Expense 65,767 14.6% 70,127 16.0%
Amortization 2,282 0.5% 1,921 0.4%
-------- --------
Total Operating Expenses 124,418 27.5% 124,291 28.3%
-------- --------
Operating Income 36,919 8.2% 46,449 10.6%
Other Expenses
Interest - Other 10,815 2.4% 10,950 2.5%
Other Expenses 40 0.0% 73 0.0%
-------- --------
Total Other Expenses 10,855 2.4% 11,023 2.5%
-------- --------
Income Before Taxes 26,064 5.8% 35,426 8.1%
Provision for Income Taxes 13,174 2.9% 14,461 3.3%
-------- --------
Income From Continuing Operations $ 12,890 2.9% $ 20,965 4.8%
Discontinued Operations
Loss From Discontinued Operations -- (978)
-------- --------
Net Income $ 12,890 $ 19,987
======== ========
Basic Earnings per Share
Income From Continuing Operations $ 0.49 $ 0.80
Loss From Discontinued Operations $ -- $ (0.03)
-------- --------
Net Income $ 0.49 $ 0.77
Diluted Earnings per Share
Income From Continuing Operations $ 0.48 $ 0.79
Loss From Discontinued Operations $ -- $ (0.03)
-------- --------
Net Income $ 0.48 $ 0.76
Weighted Average Shares Outstanding
Basic 26,456 26,094
Diluted 26,581 26,462
* Refer to the GAAP to Pro forma Reconciliation.
CAMBREX CORPORATION
Statement of Profit and Loss - GAAP
For the Years Ended December 31, 2005 and 2004
(in thousands)
2005 2004
----------------- ----------------
% of % of
Amount Sales Amount Sales
--------- ----- -------- -----
Gross Sales $ 451,986 100.0% $439,115 100.0%
Commissions and Allowances 3,437 0.8% 2,258 0.5%
--------- --------
Net Sales 448,549 99.2% 436,857 99.5%
Other Revenues 6,548 1.5% 6,800 1.5%
--------- --------
Net Revenue 455,097 100.7% 443,657 101.0%
Cost of Sales 293,760 65.0% 272,917 62.1%
--------- --------
Gross Profit 161,337 35.7% 170,740 38.9%
Operating Expenses
Sales and Marketing Expense 34,038 7.5% 32,584 7.4%
Research and Development Expense 22,331 4.9% 19,659 4.5%
Administrative Expense 71,290 15.9% 70,127 16.0%
Impairment Charges 107,177 23.7% 48,720 11.1%
Other, net -- 0.0% (1,863) -0.4%
Amortization 2,282 0.5% 1,921 0.4%
--------- --------
Total Operating Expenses 237,118 52.5% 171,148 39.0%
--------- --------
Operating Loss (75,781) -16.8% (408) -0.1%
Other Expenses
Interest - Other 10,815 2.4% 10,950 2.5%
Other Expenses 40 0.0% 73 0.0%
--------- --------
Total Other Expenses 10,855 2.4% 11,023 2.5%
--------- --------
Loss Before Taxes (86,636) -19.2% (11,431) -2.6%
Provision for Income Taxes 25,409 5.6% 14,461 3.3%
--------- --------
Loss From Continuing Operations $(112,045) -24.8% $(25,892) -5.9%
Discontinued Operations
Loss From Discontinued Operations -- (978)
--------- --------
Net Loss $(112,045) $(26,870)
========= ========
Basic Earnings per Share
Loss From Continuing Operations $ (4.24) $ (0.99)
Loss From Discontinued Operations $ -- $ (0.04)
--------- --------
Net Loss $ (4.24) $ (1.03)
Diluted Earnings per Share
Loss From Continuing Operations $ (4.24) $ (0.99)
Loss From Discontinued Operations $ -- $ (0.04)
--------- --------
Net Loss $ (4.24) $ (1.03)
Weighted Average Shares Outstanding
Basic 26,456 26,094
Diluted 26,456 26,094
CAMBREX CORPORATION
Gross Sales, Gross Profit & Operating Profit/(Loss) by Segment
For the Years Ended December 31, 2005 and 2004
(in thousands)
Full Year 2005
-------------------------------------------------------------------------------------------------
Gross Gross Operating OP%- Operating OP%-
Sales Profit GP% Profit/(Loss)-GAAP GAAP Profit/(Loss)-Pro forma* Pro forma*
--------- -------- ---- ------------------ ------ ------------------------ ----------
Bioproducts $149,498 $ 77,908 52.1% $ 25,734 17.2% 25,734 17.2%
Biopharma 41,698 (3,811) -9.1% (97,245) -233.2% (14,862) -35.6%
Human Health 260,790 87,240 33.5% 20,711 7.9% 45,505 17.4%
Corporate -- -- (24,981) (19,458)
-------- -------- -------- -------
Total $451,986 $161,337 35.7% $(75,781) -16.8% 36,919 8.2%
======== ======== ======== =======
Full Year 2005
-------------------------------------------------------------------------------------------------
Gross Gross Operating OP%- Operating OP%-
Sales Profit GP% Profit/(Loss)-GAAP GAAP Profit/(Loss)-Pro forma* Pro forma*
--------- -------- ---- ------------------ ------ ------------------------ ----------
Bioproducts $136,108 $ 74,930 55.1% $ 26,386 19.4% 23,523 17.3%
Biopharma 43,270 4,880 11.3% (53,813) -124.4% (5,093) -11.8%
Human Health 259,737 90,930 35.0% 50,651 19.5% 51,651 19.9%
Corporate -- -- (23,632) (23,632)
-------- -------- -------- -------
Total $439,115 $170,740 38.9% $ (408) -0.1% 46,449 10.6%
======== ======== ======== =======
Gross Sales Comparison
--------------------------------------
2005 2004
Gross Gross Change Change
Sales Sales $ %
-------- -------- ------- ------
Bioproducts $149,498 $136,108 $13,390 9.8%
Biopharma 41,698 43,270 (1,572) -3.6%
Human Health 260,790 259,737 1,053 0.4%
-------- -------- -------
Total $451,986 $439,115 $12,871 2.9%
======== ======== =======
* Refer to the GAAP to Pro forma Reconciliation.
CAMBREX CORPORATION
GAAP to Pro forma Reconciliation - Net (Loss)/Income
For the Quarters and Years ended December 31, 2005 and 2004
Fourth Quarter 2005 Fourth Quarter 2004
--------------------------------- ------------------------
Net (Loss)/ Income Diluted EPS Net Income Diluted EPS
------------------- ----------- ---------- -----------
Net (Loss)/Income - As Reported $(123,167) $(4.62) $4,871 $0.18
Impairment - Goodwill and Long Lived Assets (net of tax) 105,504 3.95 -- --
Executive Severance 4,223 0.16 -- --
Domestic Tax Valuation Allowance 17,237 0.65 -- --
--------- ------ ------ -----
Net Income - Pro forma $ 3,797 $ 0.14 $4,871 $0.18
========= ====== ====== =====
Full Year 2005 Full Year 2004
--------------------------------- -------------- -----------------
Net (Loss)/ Income Diluted EPS Net (Loss)/Income Diluted EPS
------------------- ----------- ----------------- -----------
Net Loss - As Reported $(112,045) $(4.24) $(26,870) $(1.03)
Impairment - Goodwill and Long Lived Assets (net of tax) 105,504 3.97 48,720 1.84
Executive Severance 4,223 0.16 -- --
Domestic Tax Valuation Allowance 17,237 0.65 -- --
Tax Benefit (Swedish Tax Item) (3,329) (0.13) -- --
Environmental Reserve 1,300 0.05 -- --
Early Termination of Bioproducts Customer Contract -- -- (2,863) (0.11)
Restructuring at European Site -- -- 1,000 0.04
--------- ------ -------- ------
Net Income - Pro forma $ 12,890 $ 0.48 $ 19,987 $ 0.76
========= ====== ======== ======
CAMBREX CORPORATION
GAAP to Pro forma Reconciliation - Operating Profit/(Loss) by Segment
For the Quarters and Years ended December 31, 2005 and 2004
Fourth Quarter 2005
--------------------------------------------------------------
Bioproducts Biopharma Human Health Corporate Total
----------- --------- ------------ --------- ---------
Operating Profit/(Loss) - As Reported $5,235 $(84,700) $(13,662) $(8,767) $(101,894)
Impairment Charge -- 82,383 24,794 -- 107,177
Executive Severance -- -- -- 4,223 4,223
------ -------- -------- ------- ---------
Operating Profit/(Loss) - Pro forma $5,235 $ (2,317) $ 11,132 $(4,544) $ 9,506
====== ======== ======== ======= =========
Fourth Quarter 2004
-------------------------------------------------------------
Bioproducts Biopharma Human Health Corporate Total
----------- --------- ------------ --------- --------
Operating Profit/(Loss) - As Reported $4,514 $(748) $13,149 $(5,671) $11,244
------ ----- ------- ------- -------
Operating Profit/(Loss) - Pro forma $4,514 $(748) $13,149 $(5,671) $11,244
====== ===== ======= ======= =======
Full Year 2005
-------------------------------------------------------------
Bioproducts Biopharma Human Health Corporate Total
----------- --------- ------------ --------- --------
Operating Profit/(Loss) - As Reported $25,734 $(97,245) $20,711 $(24,981) $(75,781)
Impairment Charge -- 82,383 24,794 -- 107,177
Executive Severance -- -- -- 4,223 4,223
Environmental Reserve -- -- -- 1,300 1,300
------- -------- ------- -------- --------
Operating Profit/(Loss) - Pro forma $25,734 $(14,862) $45,505 $(19,458) $ 36,919
======= ======== ======= ======== ========
Full Year 2004
-------------------------------------------------------------
Bioproducts Biopharma Human Health Corporate Total
----------- --------- ------------ --------- --------
Operating Profit/(Loss) - As Reported $26,386 $(53,813) $50,651 $(23,632) $ (408)
Impairment Charge -- 48,720 -- -- 48,720
Early Termination of Bioproducts Customer Contract (2,863) -- -- -- (2,863)
Restructuring -- -- 1,000 -- 1,000
------- -------- ------- -------- -------
Operating Profit/(Loss) - Pro forma $23,523 $ (5,093) $51,651 $(23,632) $46,449
======= ======== ======= ======== =======
CAMBREX CORPORATION
Consolidated Balance Sheet
As of December 31, 2005 and 2004
(in thousands)
2005 2004
-------- --------
Assets
Cash and Cash Equivalents $ 45,932 $ 91,532
Trade Receivables, net 74,425 68,370
Inventories, net 93,617 91,039
Other Current Assets 17,589 23,430
-------- --------
Total Current Assets 231,563 274,371
Property, Plant and Equipment, Net 229,410 280,790
Goodwill and Other Intangibles 146,708 230,656
Other Non-Current Assets 5,985 6,168
-------- --------
Total Assets $613,666 $791,985
======== ========
Liabilities and Stockholders' Equity
Trade Accounts Payable $ 38,813 $ 38,552
Accrued Liabilities 52,064 51,504
Short-term Debt and Current Portion of Long-term Debt 1,514 1,400
-------- --------
Total Current Liabilities 92,391 91,456
Long-term Debt 186,819 226,187
Deferred Tax Liabilities 31,600 21,686
Other Non-Current Liabilities 61,641 61,340
-------- --------
Total Liabilities $372,451 $400,669
Stockholders' Equity $241,215 $391,316
-------- --------
Total Liabilities and Stockholders' Equity $613,666 $791,985
======== ========