LANNETT COMPANY REPORTS ITS 4TH QUARTER AND FISCAL 2003 RESULTS
PHILADELPHIA, PA -- August 25, 2003 -- LANNETT COMPANY, INC. (AMEX:
LCI), a manufacturer of generic pharmaceuticals, is pleased to announce its
preliminary results of operations for the quarter ended and fiscal year ended
June 30, 2003. Compared to the prior periods noted, the Company's results of
operations are summarized as follows:
o A 73% increase in Net Sales for the fourth quarter ended June
30, 2003 compared to the fourth quarter ended June 30, 2002;
o A 69% increase in Net Sales for the year ended June 30, 2003
compared to the prior year;
o A 56% increase in Net Income for the fourth quarter ended June
30, 2003 compared to the fourth quarter ended June 30, 2002;
o A 62% increase in Net Income for the year ended June 30, 2003
compared to the prior year
The following table presents Lannett's unaudited and audited results of
operations for the three months ended and the year ended June 30, 2003,
respectively, compared to the prior periods noted:
Three Months Ended: Year Ended:
6/30/03 6/30/02 6/30/03 6/30/02
Unaudited Unaudited
(In thousands, (In thousands,
except for Diluted Income per Share) except for Diluted Income per Share)
Net Sales $ 12,157 $ 7,024 $ 42,487 $ 25,126
Cost of Sales 4,477 2,594 16,258 8,453
---------------------------- ----------------------------
Gross Profit 7,680 4,430 26,229 16,673
Research & Development Expenses 907 483 2,575 1,749
Selling, General & Admin. Expenses 1,121 793 4,338 3,299
---------------------------- ----------------------------
Operating Profit 5,652 3,154 19,316 11,625
Other Income/(Expense) (154) (220) (315) (446)
---------------------------- ----------------------------
Income Before Taxes 5,498 2,934 19,001 11,179
Income Tax Expense 2,406 953 7,335 3,984
---------------------------- ----------------------------
Net Income 3,092 1,981 11,666 7,195
============================ ============================
Diluted Income per Share *** $ 0.15 $ 0.10 $ 0.58 $ 0.36
============================ ============================
*** DILUTED INCOME PER SHARE FOR THE PRIOR PERIODS HAS BEEN ADJUSTED FOR THE
COMPANY'S 3 FOR 2 STOCK SPLIT EFFECTIVE FOR SHAREHOLDERS OF RECORD ON FEBRUARY
14, 2003.
The Company attributes the increases in sales and income from the prior
periods to new product additions.
The Company's common stock trades on the American Stock Exchange under
the symbol "LCI". For more information please call Investor Relations at
215/333-9000.
THIS PRESS RELEASE CONTAINS CERTAIN STATEMENTS OF A FORWARD-LOOKING NATURE
RELATING TO FUTURE EVENTS OR FUTURE BUSINESS PERFORMANCE. ANY SUCH STATEMENTS
THAT REFER TO LANNETT'S ESTIMATED OR ANTICIPATED FUTURE FINANCIAL RESULTS,
FUTURE INVENTORY LEVELS, FUTURE COMPETITION OR PRICING, FUTURE LEVELS OF
OPERATING EXPENSES, PRODUCT DEVELOPMENT EFFORTS OR PERFORMANCE, OR OTHER
NON-HISTORICAL FACTS ARE FORWARD-LOOKING AND REFLECT LANNETT'S CURRENT
PERSPECTIVE OF EXISTING TRENDS AND INFORMATION. THESE STATEMENTS INVOLVE RISKS
AND UNCERTAINTIES THAT CANNOT BE PREDICTED OR QUANTIFIED AND, CONSEQUENTLY,
ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH
FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES INCLUDE, AMONG OTHERS,
THE UNCERTAINTY THAT ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THE PRELIMINARY
RESULTS DESCRIBED IN THIS PRESS RELEASE, RATES OF SALE OF CUSTOMER INVENTORIES,
THE SUCCESS OF LANNETT'S PRODUCT DEVELOPMENT ACTIVITIES AND THE TIMELINESS WITH
WHICH REGULATORY AUTHORIZATIONS AND PRODUCT ROLL-OUT MAY BE ACHIEVED, MARKET
ACCEPTANCE OF LANNETT'S PRODUCTS AND THE IMPACT OF COMPETITIVE PRODUCTS AND
PRICING, THE AVAILABILITY ON COMMERCIALLY REASONABLE TERMS OF RAW MATERIALS AND
OTHER THIRD PARTY SOURCED PRODUCTS, SUCCESSFUL COMPLIANCE WITH EXTENSIVE,
COSTLY, COMPLEX AND EVOLVING GOVERNMENTAL REGULATIONS AND RESTRICTIONS, EXPOSURE
TO PRODUCT LIABILITY AND OTHER LAWSUITS AND CONTINGENCIES, AND OTHER RISKS AND
UNCERTAINTIES DETAILED IN LANNETT'S MOST RECENT FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION, INCLUDING BUT NOT LIMITED TO: LANNETT'S ANNUAL REPORT AND
FORM 10-KSB FOR THE YEAR ENDED JUNE 30, 2002.