Exhibit 99.1
Theragenics(R) Reports Revenue &
Earnings for Fourth Quarter and Year-End 2006
Company Reports Best Revenue Year and Quarter Ever,
and Fourth Consecutive Quarter of Profitability Post Restructuring
BUFORD, Ga.--(BUSINESS WIRE)--Jan. 30, 2007--Theragenics
Corporation(R) (NYSE: TGX), a medical device company serving the
cancer treatment and surgical products markets, today announced
consolidated financial results for the fourth quarter and year ended
December 31, 2006. Consolidated revenue for the quarter was $14.8
million, an increase of $3.4 million, or 30% over the fourth quarter
of 2005. For the 12-month period, consolidated revenue was $54.1
million, an increase of $9.8 million, or 22%, compared to the prior
year. Net income for the quarter was $3.7 million or $0.11 per share,
compared to a net loss of $(236,000), or $(0.01) per share in the
fourth quarter of 2005. For the year, net income was $6.6 million, or
$0.20 per share, compared to a net loss of $(29.0) million, or $(0.93)
per share, in the comparable 2005 period. Net income for the 2006
periods include the release of a deferred tax asset valuation
allowance, resulting in an increase to net income of $1.8 million, or
$0.06 per share in the fourth quarter and $3.3 million, or $0.10 per
share, for the full year. The 2005 and 2006 periods also include
pre-tax restructuring charges of $33.4 million and $369,000
respectively. The Company's results include the results of operations
of its subsidiaries subsequent to the dates of each respective
acquisition. Theragenics acquired CP Medical Corp. on May 6, 2005 and
Galt Medical Corp. on August 2, 2006.
"In many ways we have just completed our best year," stated M.
Christine Jacobs, Chief Executive Officer and President. "2006 was our
highest annual revenue ever, and the fourth quarter was our highest
quarterly revenue ever. CP Medical and Galt, which make up our
surgical products business, contributed 46% of our revenue in the
fourth quarter. As recently as the first quarter of 2005, 100% of our
revenue came from our brachytherapy business. We are accomplishing our
diversification goals as we are now more diversified than at any time
in our twenty-five year history."
Ms. Jacobs continued, "Our efforts to work with Congress in
protecting access to brachytherapy were recognized in December 2006
when the Tax Reform and Health Care Act of 2006 became law. This law
provides important safeguards to protect the immediate and long-term
reimbursement for seeds. Adding to these accomplishments, we delivered
four consecutive profitable quarters in 2006, something we haven't
done since 2002. We are thrilled with our results this year, and
intend to continue building on our momentum. We are committed to
investing for growth at CP Medical and Galt, maintaining our
leadership in brachytherapy, and continuing to search for acquisition
candidates that can leverage our surgical products businesses. Our
balance sheet remains strong and capable of supporting our strategy."
A comparison of non-GAAP revenue and operating income by segment,
excluding non-recurring items, is summarized in Table III to this
press release. Table IV includes a reconciliation of GAAP net earnings
to earnings before interest, taxes, depreciation and amortization
(EBITDA).
Theragenics will host a conference call today at 11:00 a.m.
Eastern Time. To access the call, dial 800-538-9844 or 706-634-7274
and provide the conference ID code 6306801. This call is also being
broadcast live over the Internet, and a recording will be available
for one month on the Company's website. To access the webcast, log on
to www.theragenics.com and select Investor Relations followed by
selecting company presentations. You also can access a phone replay of
the call until Midnight, February 6, 2007, by dialing 800-642-1687 or
706-645-9291 and providing the conference ID code: 6306801.
Theragenics Corporation(R)(NYSE: TGX) operates two business
segments: its brachytherapy seed business and its surgical products
business. The brachytherapy business manufactures and markets its
premiere product, the palladium-103 TheraSeed(R) device and I-Seed, an
iodine-125 based device, which are used primarily in the minimally
invasive treatment of localized prostate cancer. Its surgical products
business manufactures and distributes wound closure, needles, and
other surgical products used in the urology, veterinary, orthopedic
and other markets, and disposable medical devices used for vascular
access. For additional information, call Theragenics' Investor
Relations Department at (800) 998-8479 or visit www.theragenics.com.
This press release contains non-GAAP financial measures used by
Management in its analysis of the Company's operating performance.
Management believes presentation of financial measures excluding the
impact of certain identified items provides supplemental information
that is helpful to an understanding of the operating results of the
Company's businesses and period-to-period comparisons of performance.
Non-GAAP financial measures should be considered in addition to, but
not as a substitute for, the Company's reported GAAP results.
This release contains forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, the
accuracy of which is necessarily subject to risks and uncertainties,
including, without limitation, statements regarding the contribution
of Galt Medical Corp. and CP Medical to Theragenics' sales, impact on
net income, future growth, and anticipated positive results in
general. Actual results may differ materially due to a variety of
factors, including, among other things, uncertainties related to the
integration of Galt and CP Medical into the Theragenics organization,
capitalization on opportunities for growth within the Galt and CP
Medical business plans, ability to recognize value from areas of
shared expertise, risks and uncertainties related to competition
within the medical device industry, development and growth of new
applications within the markets for vascular access, wound closure,
brachytherapy and more broadly, medical devices, competition from
other companies within the vascular access, wound closure and medical
device markets, competition from other methods of treatment, new
product development cycles, integration risks, effectiveness and
execution of marketing and sales programs by Theragenics and its
distributors, changes in product pricing by Theragenics or other
brachytherapy seed producers, changes in costs of materials used in
production processes (especially as it relates to isotope production),
continued acceptance of the products by the market, continued demand
for palladium-103, introduction and/or availability of competitive
products by others, potential changes in third-party (including CMS)
reimbursement, physician training, third-party distribution
agreements, ability to execute on acquisition opportunities on
favorable terms and successfully integrate any acquisitions, and other
factors set forth from time to time in the Company's Securities and
Exchange Commission filings.
All forward looking statements and cautionary statements included
in this document are made as of the date hereby based on information
available to the Company as of the date hereof, and the Company
assumes no obligation to update any forward looking statement or
cautionary statement.
TABLE I
THERAGENICS AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited)
(In thousands except per share data)
Three Months Ended Year Ended
12/31/06 12/31/05 12/31/06 12/31/05
----------------------------------------
Product sales $14,630 $11,216 $53,076 $43,693
License fees 162 141 1,020 577
----------------------------------------
Total revenue 14,792 11,357 54,096 44,270
Cost of sales 7,954 5,891 27,752 23,763
----------------------------------------
Gross profit 6,838 5,466 26,344 20,507
Operating expenses:
Selling, general &
administrative 4,674 5,137 19,951 19,652
Amortization of purchased
intangibles 525 187 1,371 500
Research & development 181 258 805 3,632
Restructuring expenses - 475 369 33,390
Gain on sale of assets - - (201) -
----------------------------------------
5,380 6,057 22,295 57,174
----------------------------------------
Operating income/(loss) 1,458 (591) 4,049 (36,667)
Other income, net 180 355 1,104 1,267
----------------------------------------
Income/(Loss) before
income tax 1,638 (236) 5,153 (35,400)
----------------------------------------
Income tax benefit (2,052) - (1,402) (6,394)
----------------------------------------
Net earnings/(loss) $3,690 $(236) $6,555 $(29,006)
========================================
Net income/(loss) per
common share, Basic $0.11 $(0.01) $0.20 $(0.93)
========================================
Net income/(loss) per
common share, Diluted $0.11 $(0.01) $0.20 $(0.93)
========================================
Weighted average shares
Basic 33,041 32,027 32,452 31,273
Diluted 33,125 32,027 32,540 31,273
TABLE II
THERAGENICS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED
BALANCE SHEETS
(Unaudited)
(In thousands)
Assets Dec. 31, 2006 Dec. 31, 2005
----------------------------------
Cash, short-term investments &
marketable securities $32,980 $45,608
Trade accounts receivable 7,556 7,622
Inventories 7,433 5,042
Deferred income tax asset 7,798 -
Assets held for sale 3,400 3,433
Prepaid expenses and other
current assets 3,478 2,720
----------------------------------
Total current assets 62,645 64,425
Property, plant & equipment,
net 30,901 32,766
Goodwill 38,824 18,370
Other intangible assets 13,762 6,388
Other long-term assets 112 115
----------------------------------
Total assets $146,244 $122,064
==================================
Liabilities & Shareholders' Equity
Accounts payable & accrued
expenses $4,381 $4,172
Contract termination liability 1,513 1,537
Long term debt 7,500 -
Deferred income tax liability,
long-term 6,458 -
Other long-term liabilities 561 672
----------------------------------
Total liabilities 20,413 6,381
Shareholders' equity 125,831 115,683
----------------------------------
Total liabilities &
shareholders' equity $146,244 $122,064
==================================
TABLE III
THERAGENICS CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
REVENUE BY SEGMENT EXCLUDING NON-RECURRING LICENSE FEES (in thousands)
Quarter Ended 12/31/06 Quarter Ended 12/31/05
-------------------------- --------------------------
Consol- Brachy- Surgical Consol- Brachy- Surgical
idated therapy products idated therapy products
-------- ------- --------- -------- ------- ---------
Revenue, U.S.
GAAP $14,792 $8,014 $6,778 $11,357 $8,483 $2,874
Less: non-
recurring
license fee - - - - - -
-------- ------- --------- -------- ------- ---------
Revenue before
non-recurring
license fee $14,792 $8,014 $6,778 $11,357 $8,483 $2,874
======== ======= ========= ======== ======= =========
Year Ended 12/31/06 Year Ended 12/31/05
--------------------------- ---------------------------
Consol- Brachy- Surgical Consol- Brachy- Surgical
idated therapy products idated therapy products
-------- -------- --------- -------- -------- ---------
Revenue, U.S.
GAAP $54,096 $34,880 $19,216 $44,270 $36,372 $7,898
Less: non-
recurring
license fee (400) (400) - - - -
-------- -------- --------- -------- -------- ---------
Revenue before
non-recurring
license fee $53,696 $34,480 $19,216 $44,270 $36,372 $7,898
======== ======== ========= ======== ======== =========
TABLE III - CONTINUED
THERAGENICS CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
OPERATING INCOME BY SEGMENT EXCLUDING SPECIAL ITEMS (in thousands)
Quarter Ended 12/31/06 Quarter Ended 12/31/05
------------------------- -------------------------
Consol- Brachy- Surgical Consol- Brachy- Surgical
idated therapy products idated therapy products
------- ------- --------- ------- ------- ---------
Operating income
(loss), U.S. GAAP $1,458 $475 $983 $(591) $(914) $323
Special items:
Restructuring
related items, net - - - 475 475 -
Severance costs not
related to
restructuring - - - - - -
------- ------- --------- ------- ------- ---------
Operating income
(loss) excluding
special items $1,458 $475 $983 $(116) $(439) $323
======= ======= ========= ======= ======= =========
Year Ended 12/31/06 Year Ended 12/31/05
------------------------- -----------------------------
Consol- Brachy- Surgical Consol- Brachy- Surgical
idated therapy products idated therapy products
------- ------- --------- --------- --------- ---------
Operating
income (loss),
U.S. GAAP $4,049 $2,122 $1,927 $(36,667) $(38,097) $1,430
Special items:
Non-recurring
license fees (400) (400) - - - -
Restructuring
related
items, net 170 170 - 33,390 33,390 -
Severance
costs not
related to
restructuring - - - 731 731 -
------- ------- --------- --------- --------- ---------
Operating
income (loss)
excluding
special items $3,819 $1,892 $1,927 $(2,546) $(3,976) $1,430
======= ======= ========= ========= ========= =========
TABLE IV
THERAGENICS CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
(EBITDA), EXCLUDING SPECIAL ITEMS (in thousands)
Quarter Ended Year Ended
------------------- -------------------
12/31/06 12/31/05 12/31/06 12/31/05
--------- --------- --------- ---------
Net earnings (loss), U.S. GAAP $3,690 $(236) $6,555 $(29,006)
Income tax benefit (2,052) - (1,402) (6,394)
Other income, net (180) (355) (1,104) (1,267)
--------- --------- --------- ---------
Operating income (loss) 1,458 (591) 4,049 (36,667)
Depreciation and amortization 1,867 1,331 6,029 6,818
Stock based compensation
amortization 60 52 362 215
--------- --------- --------- ---------
EBITDA 3,385 792 10,440 (29,634)
Special items:
Non-recurring license fee
revenue - - (400) -
Restructuring related items - 475 170 33,390
Severance costs not related
to restructuring - - 731
--------- --------- --------- ---------
EBITDA excluding special
items $3,385 $1,267 $10,210 $4,487
========= ========= ========= =========
CONTACT: Theragenics Corporation(R), Buford
Company Contact:
Frank Tarallo, 800-998-8479 or 770-271-0233
CFO & Treasurer
or
Lisa Rassel, 800-998-8479 or 770-271-0233
Manager of Investor Relations
www.theragenics.com