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EXHIBIT 99.1
IVAX ANNOUNCES RECORD EARNINGS
MIAMI - April 25, 2001 - IVAX Corporation (AMEX: IVX) reported record
financial results for the first quarter ended March 31, 2001. Income from
continuing operations for the first quarter of 2001 was $60.1 million, or $.36
per diluted share, an increase of 126% over first quarter 2000's income from
continuing operations of $26.7 million, or $.17 per diluted share. Net revenues
for the first quarter of 2001 were $260 million, an increase of 42%, compared to
net revenues of $183 million in the first quarter last year.
"I am pleased to report these earnings for the first quarter of 2001,
which represent a continuation of the growth pattern of the last few years,"
said Phillip Frost, M.D., IVAX chairman and chief executive officer. "We were
able to achieve these results, in the face of an increase in research and
development spending of 22% compared to the prior year."
Neil Flanzraich, vice-chairman and president of IVAX said, "IVAX' gross
profit margin was 52% of net revenues for the first quarter of 2001 compared to
48% in the first quarter of 2000. The improvement in gross profit percentage was
due in part to IVAX' paclitaxel sales, which exceeded $50 million in the first
quarter." Mr. Flanzraich added, "We expect our normal operating income to
continue to increase during the second quarter of 2001."
First quarter results include a gain of $10.3 million, or $.06 per
diluted share, and compensation expense of $1.0 million, or $.01 per diluted
share, resulting from the partial sale of IVAX Diagnostics, Inc. IVAX continues
to own approximately 70% of IVAX Diagnostics, Inc.
The first quarter was one of great activity during which IVAX continued
the integration of its subsidiaries and began the process of changing their
names to make the "IVAX" name better known in commercial and financial markets
around the world.
IVAX Corporation, headquartered in Miami, Florida, is a multinational
company engaged in the research, development, manufacturing and marketing of
pharmaceutical products.
EXCEPT FOR HISTORICAL MATTERS CONTAINED HEREIN, THE STATEMENTS IN THIS
PRESS RELEASE ARE FORWARD-LOOKING AND ARE MADE PURSUANT TO THE SAFE HARBOR
PROVISIONS OF THE SECURITIES LITIGATION REFORM ACT OF 1995. INVESTORS ARE
CAUTIONED THAT FORWARD-LOOKING STATEMENTS INVOLVE RISKS AND UNCERTAINTIES THAT
MAY AFFECT IVAX' BUSINESS AND PROSPECTS, INCLUDING THE RISK THAT THE COMPANY'S
EARNINGS IN FUTURE PERIODS MAY NOT GROW OR MAY DECREASE, AND OTHER RISKS AND
UNCERTAINTIES THAT MAY CAUSE RESULTS TO DIFFER MATERIALLY FROM THOSE SET FORTH
IN THE FORWARD-LOOKING STATEMENTS. IN ADDITION TO THE RISK FACTORS SET FORTH
ABOVE, INVESTORS SHOULD CONSIDER THE ECONOMIC, COMPETITIVE, GOVERNMENTAL,
TECHNOLOGICAL AND OTHER FACTORS DISCUSSED IN THE COMPANY'S ANNUAL REPORT ON FORM
10K AND OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
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IVAX CORPORATION PRESS RELEASE
4/25/01
PAGE 2 OF 5
CONTACTS:
Thomas E. Beier
Senior Vice President, Finance & Chief Financial Officer
305-575-6563
or
Investor Relations
Tabitha H. Licea
305-575-6043
www.ivax.com
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IVAX CORPORATION
4/25/01
PAGE 3 OF 5
RESULTS OF OPERATIONS
PERIOD ENDED MARCH 31,
(In thousands, except per share data)
THREE MONTHS
------------------------
2001 2000
--------- ---------
Net revenues $ 259,932 $ 183,258
Cost of sales 123,724 95,173
--------- ---------
Gross profit 136,208 88,085
--------- ---------
Selling and marketing 27,502 17,979
General and administrative 23,721 24,175
Research and development 18,883 15,456
Amortization 3,593 1,967
--------- ---------
Total operating expenses 73,699 59,577
--------- ---------
Income from operations 62,509 28,508
Gain on partial sale of IVAX Diagnostics 10,278 --
Other income, net 1,199 3,834
--------- ---------
Total other income, net 11,477 3,834
--------- ---------
Income from continuing operations before income taxes and minority interest 73,986 32,342
Tax provision 13,755 5,440
--------- ---------
Income from continuing operations before minority interest 60,231 26,902
Minority interest (99) (236)
--------- ---------
Income from continuing operations 60,132 26,666
Cumulative effect of a change in accounting principle, net of taxes -- (6,471)
--------- ---------
Net income $ 60,132 $ 20,195
========= =========
BASIC EARNINGS PER SHARE:
Income from continuing operations $ 0.38 $ 0.17
Cumulative effect, net of tax -- (0.04)
--------- ---------
Net Income $ 0.38 $ 0.13
========= =========
DILUTED EARNINGS PER SHARE:
Income from continuing operations $ 0.36 $ 0.17
Cumulative effect, net of tax -- (0.04)
--------- ---------
Net Income $ 0.36 $ 0.13
========= =========
AVERAGE SHARES OUTSTANDING:
Basic 159,404 153,764
Diluted 165,063 160,042
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IVAX CORPORATION
4/25/01
PAGE 4 OF 5
CONDENSED BALANCE SHEETS
(In thousands)
MARCH 31, DECEMBER 31,
2001 2000
----------------- ----------------
ASSETS
Current assets $ 656,441 $ 659,114
Property, plant and equipment, net 273,463 250,852
Other assets 290,761 158,220
----------------- ----------------
Total assets $ 1,220,665 $ 1,068,186
================= ================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term debt $ 795 $ 934
Other current liabilities 260,789 219,690
Long-term debt 253,616 253,755
Other long-term liabilities 32,335 23,472
Minority interest 14,467 1,712
Shareholders' equity 658,663 568,623
----------------- ----------------
Total liabilities and shareholders' equity $ 1,220,665 $ 1,068,186
================= ================
Share and earnings per share amounts have not been adjusted to reflect the 5 for
4 stock split approved by the Board of Directors April 20, 2001, effective May
18, 2001 for shareholders of record May 1, 2001. The first quarter of 2001
includes the post-acquisition results of companies acquired during the past
year.
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IVAX CORPORATION PRESS RELEASE
2/6/01
Page 5 of 5
REVENUES BY REGION
PERIOD ENDED DECEMBER 31,
(In thousands)
THREE MONTHS TWELVE MONTHS
--------------------------- -----------------------
2000 1999 2000 1999
----------- ----------- ----------- --------
North America
External sales $ 105,692 $ 65,533 $ 319,028 $ 247,424
Intersegment sales 1,216 146 1,638 461
Other revenues 292 8,219 20,573 26,761
----------- ----------- ----------- -----------
Net revenue - North America 107,200 73,898 341,239 274,646
----------- ----------- ----------- -----------
Europe
External sales 73,407 88,405 278,627 290,743
Intersegment sales 6,612 3,451 28,999 8,332
Other revenues 25,543 10,276 71,035 23,570
----------- ----------- ----------- -----------
Net revenue - Europe 105,562 102,132 378,661 322,645
----------- ----------- ----------- -----------
Latin America
External sales 24,768 8,152 62,299 31,469
Other revenues (52) 386 1,136 1,512
----------- ----------- ----------- -----------
Net revenue - Latin America 24,716 8,538 63,435 32,981
----------- ----------- ----------- -----------
Corporate & Other
External sales 12,261 10,087 39,955 34,983
Intersegment sales (7,828) (3,597) (30,637) (8,793)
Other revenues 121 13 30 20
----------- ----------- ----------- -----------
Net revenue - Corporate & Other 4,554 6,503 9,348 26,210
----------- ----------- ----------- -----------
Consolidated net revenues $ 242,032 $ 191,071 $ 792,683 $ 656,482
=========== =========== =========== ===========
NET REVENUES BY PRODUCT TYPE:
PERIOD ENDED DECEMBER 31,
TWELVE MONTHS
---------------------------
2000 1999
----------- ---------
Proprietary and branded $ 334,720 $ 219,866
Generic 421,606 387,482
Other 36,357 49,134
----------- -----------
Total $ 792,683 $ 656,482
=========== ===========