Exhibit 99.1
MEDICOR LTD. REPORTS FISCAL YEAR END JUNE 2005 RESULTS, REVENUES INCREASE TO
$27 MILLION
LAS VEGAS, Sept. 28 /PRNewswire-FirstCall/ -- Las Vegas-based MediCor Ltd.
(OTC Bulletin Board: MDCR), the world's third largest manufacturer and
distributor of breast implants, today announced results for its fiscal year
ended June 30, 2005.
For the fiscal year ended June 30, 2005, the Company reported record
revenues of $26.9 million, an increase of $25.5 million as compared to revenues
of $1.4 million in FY 2004. On a pro forma basis, revenues increased
approximately $4.3 million or 19% over the comparable prior fiscal year.
Operating loss was $10 million compared with $15.3 million loss for the previous
year and net loss for FY 2005 was $17.3 million, versus a net loss of $16.6
million for FY 2004. Loss per share for FY 2005 was $(0.93) per fully diluted
share, as compared to a loss of $(0.94) per fully diluted share for FY 2004.
GROWTH THROUGH MAJOR ACQUISITION IN FYE 2004 - EUROSILICONE
On July 5, 2004, the Company acquired Laboratoires Eurosilicone SA,
simultaneously renaming the company Eurosilicone SAS ("Eurosilicone"). On a pro
forma basis, assuming the acquisition of Eurosilicone occurred on July 1, 2003,
revenues for the fiscal year ending June 30, 2005 were $26.9 million versus
$22.6 million in the prior year, an increase of 19%. Net loss for FY 2005 was
$17.3 million compared to a net loss of $13.8 million in the prior year and
fully diluted loss per share was $(0.93) compared with a loss of $(0.78) in the
prior year.
FURTHER GROWTH THROUGH BRITISH ACQUISITION SUBSEQUENT TO FYE 2005 - BIOSIL
AND NAGOR
On September 13, 2005, the Company announced it had reached an agreement to
acquire British breast implant manufacturer Biosil Limited and supplier Nagor
Limited for cash and stock. The acquisition reinforces the Company's position as
the number three manufacturer and distributor of breast implants worldwide and
increases the Company's share of the market for breast implants outside the U.S.
to approximately 30%.
According to MediCor Chief Executive Officer Theodore R. Maloney, "Fiscal
year 2005 was a year in which our global strategy to grow our business rapidly
to meaningful scale really began to take shape, especially in terms of our
financial results. The Eurosilicone acquisition was the first in what we believe
will be a series of strategic milestone events, and we expect that the recently
announced Biosil and Nagor acquisitions will be the second of those milestones."
Chief Financial Officer Thomas R. Moyes added, "Both the rapid growth of the
industry outside the U.S. and the execution success of our Eurosilicone
subsidiary are driving our top-line revenue and financial results. We plan to
build on this success following the acquisition of Biosil and Nagor and
ultimately generate significant financial returns for our shareholders. We
believe the twin strategies of focusing on key strategic acquisitions and new
product development in the U.S. and internationally, will deliver revenue growth
and financial returns at a rate well above the industry average."
ABOUT MEDICOR LTD.
MediCor was founded by Chairman of the Board Donald K. McGhan, the pioneer
of the modern day breast implant industry. The Company acquires, develops,
manufactures and markets products for medical specialties in aesthetic, plastic
and reconstructive surgery and dermatology markets. Products include surgically
implantable prostheses for aesthetic, plastic and reconstructive surgery and
scar management products. Its products are sold worldwide to hospitals, surgery
centers and physicians through various distributors and direct sales personnel.
MediCor's strategy is to be the leading integrator of selected international
medical device markets, technologies and corporations. To achieve this strategy,
MediCor intends to build upon and expand its business lines, primarily in the
aesthetic, plastic and reconstructive surgery and dermatology markets. MediCor
intends to accomplish this growth through the expansion of existing product
lines and offerings and through the acquisition of companies and other assets,
including intellectual property rights or distribution rights.
FORWARD-LOOKING STATEMENTS
This release may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements are based
upon the current beliefs and expectations of MediCor's management and are
subject to significant risks and uncertainties. Actual results may differ from
those set forth in the forward-looking statements.
The following factors, among others, could cause actual results to differ
from those set forth in the forward-looking statements: the ability to obtain
requisite financing for acquisitions to continue to execute on our growth plans,
the risk of instability in the capital markets in the U.S. and internationally,
the ability to obtain governmental approvals to market the company's products
and the timing of the company's and its competitors' approvals and entry to
markets needed to operate our businesses; the risk that businesses we acquire
will not be integrated successfully; the risk that cost savings from acquisition
transactions may not be realized or may take longer to realize than expected;
disruption from transactions making it more difficult to maintain relationships
with customers, employees or suppliers; increased competition and its effect on
pricing, spending, third-party relationships and revenues; the outcome of legal
proceedings; the risk of new and changing regulations in the U.S. and
internationally. Additional factors that could cause MediCor's results to differ
materially from those described in the forward-looking statements can be found
in MediCor's Annual Report on Form 10-KSB for the year ended June 30, 2005,
which was filed with the Securities and Exchange Commission and is available at
the Securities and Exchange Commission's Internet site (http://www.sec.gov).
Contact:
Marc S. Sperberg
U.S. 702-932-4560, x308 Mark Collinson CCG Investor Relations U.S.
310-231-8600, x117
MediCor Ltd.
Consolidated Statements of Operations and Comprehensive Income / (Loss)
For the Years Ended as Noted
June 30, June 30,
2005 2004
------------ ------------
Net sales $ 26,958,547 $ 1,421,583
Cost of sales 15,163,457 412,713
Return of consigned inventory
previously written down (350) (60,175)
Gross profit 11,795,440 1,069,045
Operating Expenses:
Selling, general and administrative
expenses 19,036,314 8,483,694
Research and development 2,691,333 2,149,049
Other expenses 106,903 5,686,849
Operating income / (loss) (10,039,110) (15,250,547)
Net interest expense / (income) 5,315,568 1,195,543
Income / (loss) before income taxes (15,354,678) (16,446,090)
Income tax expense (benefit) 542,555 1,737
Net income / (loss) (15,897,233) (16,447,827)
Preferred dividends deemed 262,600 91,558
Preferred dividends in arrears
Series A Preferred 8% 884,478 27,388
Net loss attributable to common
stockholders (17,044,311) (16,566,773)
Other comprehensive income / (loss), net of tax:
Foreign currency translation
adjustments (237,457) --
Comprehensive income / (loss) $(17,281,768) $(16,566,773)
Loss per share data:
Weighted average shares, basic and
diluted 18,233,175 17,633,120
Basic and diluted
Net loss per share $ (0.93) $ (0.94)
See accompanying notes to consolidated financial statements
Pro forma Calculations
The following unaudited pro forma financial information and reconciliation
to GAAP of net sales, net income, and diluted earnings per common share should
be read in conjunction with the MediCor Ltd. Form 10-KSB for the year ended June
30, 2005.
The accompanying unaudited pro forma information is intended to give effect
to the July 5, 2004 acquisition of Eurosilicone SAS and reflects the condensed
consolidated results of operations as if this transaction had occurred on July
1, 2003. The pro-forma financial information is not necessarily indicative of
the results of operations had the transaction been effected on July 1, 2003.
MediCor Ltd.
Reconciliation of Historical to Pro-forma
Consolidated Statements of Operations and Comprehensive Income / (Loss)
Historical Pro-forma
--------------------------------- ---------------------------------
June 30, 2005 June 30, 2004 Adjustments June 30, 2004
--------------- --------------- --------------- ---------------
Net Sales $ 26,958,547 $ 1,421,583 $ 21,146,445 $ 22,568,028
Net Income/Loss (17,281,768) (16,566,773) 2,745,496 (13,821,277)
Diluted (loss)
earnings per
common share (0.93) (0.94) 0.16 (0.78)
SOURCE MediCor Ltd.
-0- 09/28/2005
/CONTACT: Marc S. Sperberg of MediCor Ltd., +1-702-932-4560, ext. 308; or
Mark Collinson of CCG Investor Relations, +1-310-231-8600, ext. 117, for
MediCor Ltd./