PRESS RELEASE LIFE SCIENCES RESEARCH, INC.
(OTCBB: LSRI)
PO Box 2360
Mettlers Road
East Millstone, NJ 08875-2360
For Further Information:
Richard Michaelson
Phone: US: (732) 649-9961
e-mail: LifeSciencesResearch@LSRinc.net
November 3, 2003
LSR ANNOUNCES THIRD QUARTER RESULTS
East Millstone, New Jersey, November 3, 2003 - Life Sciences Research, Inc.
(OTCBB:LSRI) announced today that revenues for the quarter ended September 30,
2003 were $32.7 million, 9.3% above the revenues for the same period in the
prior year of $30.0 million. The Company reported net income for the quarter
ended September 30, 2003 of $0.4 million, compared with $1.5 million for the
quarter ended September 30, 2002. Net income per common share for the quarter
ended September 30, 2003 was $0.03 compared with $0.13 in the quarter ended
September 30, 2002. Net income included non-cash foreign exchange transaction
gains on the conversion of the Company's dollar denominated bonds into UK pound
sterling of $0.3 million compared to $1.6 million in the same period last year.
Excluding the non-cash foreign exchange transaction gains, Earnings before
Interest, Taxes, Depreciation and Amortization ("EBITDA") was $3.9 million for
the third quarter, or 11.9% of revenues, compared with $3.7 million, or 12.3% of
revenues, for the same period in the prior year.
Revenues for the nine months ended September 30, 2003 were $97.3 million, which
were 14.9% above the revenues for the same period in the prior year of $84.7
million. The Company reported net income for the nine months ended September 30,
2003 of $1.9 million compared with net income of $1.1 million in the nine months
ended September 30, 2002. Net income per common share for the nine months ended
September 30, 2003 was $0.16 compared with $0.11 in the nine months ended
September 30, 2002. Net income included non-cash foreign exchange transactions
gains on the conversion of the Company's dollar denominated bonds into UK pound
sterling of $1.4 million compared to a $3.9 million foreign exchange transaction
gain in the same period last year. Excluding the non-cash foreign exchange
transaction gain/loss, EBITDA was $12.1 million for the first nine months of the
year, or 12.4% of revenues, compared with $7.3 million, or 8.6% of revenues, for
the same period in the prior year.
Brian Cass, LSR's President and Managing Director said "LSR again delivered
consistent results in this quarter, representing the seventh consecutive quarter
of revenue growth. Operating profits were maintained and as we look forward we
shall continue to focus on cost management to push through more of the revenue
growth to the bottom line. Cash management is still a priority, but the progress
we have made has also allowed us to invest more in new capital projects this
year as we update our systems and infrastructure, reflecting our positive view
of the future."
Mr. Cass added "Order levels were softer this quarter but new business enquiries
were encouraging and we have been particularly pleased with the strength of our
Japanese market."
Life Sciences Research, Inc. is a global Contract Research Organization
providing product development services to the pharmaceutical, agrochemical and
biotechnology industries. LSR brings leading technology and capability to
support its clients in non-clinical safety testing of new compounds in early
stage development and assessment. The purpose of this work is to identify risks
to humans, animals or the environment resulting from the use or manufacture of a
wide range of chemicals which are essential components of LSR's clients'
products. The Company's services are designed to meet the regulatory
requirements of governments around the world. LSR operates research facilities
in the United States (the Princeton Research Center, New Jersey) and the United
Kingdom (Huntingdon and Eye, England).
This announcement contains statements that may be forward-looking as defined by
the USA's Private Securities Litigation Reform Act of 1995. These statements are
based largely on LSR's expectations and are subject to a number of risks and
uncertainties, certain of which are beyond LSR's control, as more fully
described in LSR's Registration Statement on Form S-1, dated July 25, 2002, and
the Company's Form 10-K for the fiscal year ended December 31, 2002, each as
filed with the US Securities and Exchange Commission.
- tables to follow -
Life Sciences Research Inc.
Statement of Operations
Unaudited
Three months ended Nine months ended
September 30 September 30
(Dollars in thousands, 2003 2002 2003 2002
except per share data)
Net revenues ............................... $ 32,723 $ 29,951 $ 97,287 $ 84,676
Cost of revenue ............................ (26,164) (24,023) (76,979) (68,689)
-------- -------- -------- --------
Gross profit ............................... 6,559 5,928 20,308 15,987
Selling, general and administrative expenses 5,189 (4,637) (15,505) (13,363)
Other operating income ..................... 387 -- 255 --
-------- -------- -------- --------
Operating income ........................... 1,757 1,291 5,058 2,624
Interest income ............................ 10 20 49 53
Interest expense ........................... (1,464) (1,522) (4,616) (4,672)
Other (expense)/income ..................... 308 1,747 2,037 2,364
-------- -------- -------- --------
Income before income taxes ................. 611 1,536 2,528 369
Income tax (expense)/ benefit .............. (215) (34) (630) 734
-------- -------- -------- --------
Net income ................................. $ 396 $ 1,502 $ 1,898 $ 1,103
-------- -------- -------- --------
-------- -------- -------- --------
Income per common share
- - Basic .................................... 0.03 0.13 0.16 0.11
- - Diluted .................................. 0.03 0.12 0.15 0.10
Weighted average common shares outstanding
- - Basic (000')............................. 11,932 11,932 11,932 10,256
- - Diluted (000's) ......................... 12,271 12,224 12,920 10,642
Life Sciences Research Inc.
Balance Sheet
(Dollars in thousands) September 30, December 31,
2003 2002
Unaudited Unaudited
ASSETS
Current assets:
Cash and cash equivalents ..................................... $ 10,549 $ 14,644
Accounts receivable, net of allowance of $546 and $287 in
2003 and 2002 respectively ................................ 20,080 20,176
Unbilled receivables .......................................... 11,238 9,108
Inventories ................................................... 1,590 1,556
Prepaid expenses and other current assets ..................... 3,801 3,075
--------- ---------
Total current assets .......................................... $ 47,258 $ 48,559
--------- ---------
Property and equipment, net ................................... 96,948 94,574
Investments ................................................... -- 248
Goodwill ...................................................... 693 --
Unamortized capital bonds issue costs ......................... 440 563
Deferred income taxes ......................................... 4,520 4,466
--------- ---------
Total assets .................................................. $ 149,859 $ 148,410
--------- ---------
--------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
Current liabilities:
Accounts payable .............................................. $ 11,289 $ 8,574
Accrued payroll and other benefits ............................ 1,962 1,773
Accrued expenses and other liabilities ........................ 11,389 12,990
Fees invoiced in advance ...................................... 24,475 26,066
--------- ---------
Total current liabilities ..................................... $ 49,115 $ 49,403
--------- ---------
Long-term debt ................................................ 84,347 83,717
Related party loans ........................................... -- 358
Pension liabilities ........................................... 17,291 17,712
Deferred income taxes ......................................... 5,722 5,024
--------- ---------
Total liabilities ............................................. $ 156,475 $ 156,214
--------- ---------
Commitments and contingencies
Shareholders' equity/(deficit)
Voting Common Stock, $0.01 par value. Authorized 50,000,000
Issued and outstanding at September 30, 2003: 11,932,338
(December 31, 2002: 11,932,338) ............................... 119 119
Non-Voting Common Stock, $0.01 par value. Authorized 5,000,000 -- --
Issued and outstanding: None
Preferred Stock, $0.01 par value. Authorized 5,000,000 ....... -- --
Issued and outstanding: None
Paid in capital ............................................... 75,098 75,098
Less Promissory notes for the issuance of common stock ........ (628) (684)
Accumulated comprehensive loss ................................ (19,342) (18,576)
Accumulated deficit ........................................... (61,863) (63,761)
--------- ---------
Total shareholders' equity /(deficit) ......................... $ (6,616) $ (7,804)
--------- ---------
Total liabilities and shareholders' equity /(deficit) ......... $ 149,859 $ 148,410
--------- ---------