Exhibit 99.2
Contact: James H. Miller
Chairman, President and CEO
G. Troy Braswell
V.P. Finance and CFO
Meridian Medical
1-410-309-6830
IMMEDIATE RELEASE
MERIDIAN ANNOUNCES PRELIMINARY THIRD QUARTER RESULTS -
DILUTED EARNINGS FROM CONTINUING OPERATIONS AT $0.22/SHARE
BEFORE SPECIAL CHARGES
COLUMBIA, MD, May 8, 1998 - Meridian Medical Technologies, Inc.
(NASDAQ:MTEC) today announced preliminary earnings for its third quarter ended
April 30, 1998. Earnings from continuing operations, exclusive of the
non-recurring charge described below, increased 22 percent to an anticipated
$721,000 or $0.22 per diluted share on revenues of $13.1 million, compared to
prior year third quarter earnings of $589,000 or $0.20 per diluted share on
revenues of $10.7 million.
The company will also record two additional items in fiscal third
quarter. Results will include a provision of an estimated ($2.2) million, ($1.4)
million after tax or ($0.42) per diluted share for the EpiPen(R) recall being
announced today. The third quarter results will also include a planned
extraordinary charge of ($494,000) or ($0.15) per diluted share net of tax as a
result of its successful refinancing of debt. The reported net loss for the
fiscal third quarter is anticipated to be ($1.1) million or ($0.35) per diluted
share. Even after the EpiPen(R) provision, the company anticipates nine-month
earnings before extraordinary charges of $0.18 per diluted share and $0.03 per
diluted share total net earnings.
"While the EpiPen recall will have a one-time negative effect on net
earnings, we are pleased with the company's continuing strong operating results
that have enabled us to refinance our long-term debt," said James H. Miller,
chairman, president and chief executive officer of Meridian.
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"Based on consistently improving performance from the ongoing implementation of
key strategies, we remain confident of the company's ability to achieve
long-term growth in shareholders value."
The anticipated 22 percent improvement in third quarter net income from
continuing operations, excluding the EpiPen(R) reserve provision, results from a
16 percent increase in revenues. Coupled with higher revenues, the company
continued to control costs resulting in an anticipated $730,000 increase in
operating income from the prior year third quarter.
The company also reported that it was successful in its major objective
to refinance its debt. In the third quarter, the company repaid merger-related
debt by issuing $15 million of senior subordinated debt to an institutional
purchaser. Remaining net proceeds of approximately $3.5 million are available
for corporate purposes. The company can now direct cash to operating and
investment options, which before were required for term principal amortizations.
Meridian Medical Technologies is a worldwide leader in the development
of auto-injector drug delivery systems and has strong core technologies in
non-invasive cardiopulmonary diagnostics. Meridian provides technology solutions
for medicine in early intervention home healthcare and emergency medical
technologies. Additional company information is available on the World Wide Web
at www.meridianmeds.com.
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Certain statements contained in this document that are not historical fact are
"forward-looking" statements and involve important risks and uncertainties. Such
risk and uncertainties, which are detailed in the company's filings with the
Securities and Exchange Commission, could cause the company results to differ
materially from the company's current expectations as expressed in this
document.
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