RNS Number:3853O
Galen Holdings PLC
06 August 2003
Craigavon, Northern Ireland/Rockaway, NJ 6 August 2003
Galen Holdings PLC
Results for the third quarter ended 30 June 2003
Craigavon, Northern Ireland/Rockaway, New Jersey, USA - 6 August 2003: Galen
Holdings PLC ("Galen") (LSE: GAL.L, Nasdaq: GALN), announces its results for the
quarter ended 30 June 2003.
Financial Highlights
Quarter ended Quarter ended
30 June 2003 30 June 2002 Change
($ m) ($ m) (%)
Revenues
- Products 135.7 62.6 117%
- Services (Discontinued) -- 15.8 --
_____ _____ _____
Total 135.7 78.4 73%
Operating profits*
- Products 61.7 24.1 156%
- Services (Discontinued) -- 1.8 --
_____ _____ _____
Total 61.7 25.9 138%
Earnings per share*
Adjusted EPS (cents) 26.8 12.3 118%
*before amortisation of goodwill, intangibles and exceptional items
* Earnings per ordinary share, before amortisation of goodwill,
intangible assets and exceptional items, including the exceptional gain on the
sale of our Pharmaceutical Services business during 2002, increased to 26.8
cents, up 118% over the same quarter in the prior year.
* Total pharmaceutical product revenues increased by 117% to $135.7
million from $62.6 million reflecting strong underlying growth of 19% from our
core promoted brands, Ovcon(R), Estrace(R) Cream and Doryx(R) (see table on page
3 for breakdown), the addition of Sarafem(R), the US sales and marketing rights
of which were acquired in January 2003, and the addition of three products from
Pfizer, Estrostep(R), Loestrin(R) and femhrt(R), acquired in March and April
2003.
* The results of the comparative quarter include the Pharmaceutical
Services business, which was sold in the year ended 30 September 2002.
* Operating profit, before amortisation of goodwill and intangibles,
rose to $61.7 million compared to $25.9 million in the same quarter last year,
an increase of 138%.
* During the quarter, the business generated cash of $78.2 million.
Cash on hand at 30 June 2003 was $107.8 million. During the quarter we purchased
femhrt(R) for approximately $162 million. This transaction was financed from
existing cash resources and the drawdown of $150 million in senior debt, part of
a new $450 million facility put in place during the period. Net debt at 30 June
2003 was $289.2 million.
Business Highlights
* Entered into an agreement with Bristol Myers Squibb for the promotion of
and option to purchase Dovonex(R).
* Licensed Dovobet(R) from LEO Pharma.
* Completed the acquisition of femhrt(R), hormone replacement therapy
product from Pfizer.
* Launched Femring(R), our innovative vaginal ring for estrogen therapy, in
the U.S.
* Initiated the deployment of the 140 person Warner Chilcott Specialty sales
force.
Commenting on the results, Roger Boissonneault, Chief Executive said:
"This was truly an exceptional quarter. Recently acquired products performed
well. More importantly, our core promoted brands continue to demonstrate growth
and we are now in the launch phase for Femring(R), our first internally
developed product approved in the U.S., supported by our 200 person Warner
Chilcott Women's Healthcare sales force.
"The co-promotion of Dovonex(R) and the in-licensing of Dovobet(R) are
particularly significant deals for us, producing opportunities for further
growth and creating critical mass in our dermatology business".
For further information, please contact:
Galen Holdings PLC
David G. Kelly Today: + 44 (0) 28 3833 4974
Financial Dynamics
Francetta Carr / Jonathan Birt Tel: + 44 (0) 20 7831 3113
For further information on Galen visit: www.galenplc.com
A conference call will take place today at 2pm U.K. time, 9am New York time.
Please call Mo Noonan on 020 7269 7116, for further details.
Note:
Forward looking statements in this report, including, without limitation,
statements relating to Galen's plans, strategies, objectives, expectations,
intentions and adequacy of resources, are made pursuant to the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of 1995. These
forward looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of
Galen to be materially different from any future results, performance or
achievements expressed or implied by such forward looking statements. These
factors include, among others, the following: Galen's ability to manage its
growth, government regulation affecting the development, manufacture, marketing
and sale of pharmaceutical products, customer acceptance of new products,
competitive factors in the industries in which Galen operates, the loss of key
senior management or scientific staff, exchange rate fluctuations, general
economic and business conditions, and other factors described in filings of
Galen with the SEC. Galen undertakes no obligation to publicly update or revise
any forward looking statement, whether as a result of new information, future
events or otherwise.
Commentary on the results of the 3rd Quarter to 30 June 2003
Sales & Marketing
The Group achieved significant growth in each of its key pharmaceutical products
as illustrated by the table below.
Product/Group 3rd Quarter % Growth over Year to Date % Growth over
prior year prior Nine Months
Quarter
Net Sales $'M % $'M %
Sarafem(R) 21.9 N/A 37.3 N/A
Ovcon(R) 15.5 18% 41.3 22%
Estrostep(R) 11.3 N/A 11.3 N/A
Loestrin(R) 16.7 N/A 16.7 N/A
femhrt(R) 9.1 N/A 9.1 N/A
Femring(R) 1.7 N/A 1.7 N/A
Estrace(R) Cream 11.7 15% 32.6 19%
Estrace(R) Tablets 6.0 12% 18.9 13%
Doryx(R) 12.7 24% 43.8 37%
Duricef(R) and Moisturel(R) 6.6 38% 18.2 N/A
Other US 2.1 -46% 6.8 -51%
Other U.K. and Ireland 17.7 21% 53.2 17%
International 2.7 N/A 2.7 N/A
TOTAL 135.7 117% 293.6 68%
For the quarter ended 30 June 2003 total product sales were $135.7 million, an
increase of 117% over the same quarter last year. This significant growth was
driven largely by the addition of recently acquired products which were not
included in the comparable sales numbers for last year, as can be seen in the
above table. However, revenues also grew strongly for existing products
promoted by our sales force for which the comparable quarters sales are
available, i.e. Ovcon(R), Estrace(R) Cream and Doryx(R), which showed combined
growth of 19% over the same quarter last year.
With regard to the recently acquired products, this was the first quarter for
which we recorded a full quarter's sales of Sarafem(R), which had sales of $21.9
million in the quarter. We are pleased with this result but note that, as
anticipated, scrips of Sarafem(R) have been showing some recent decline. We
fully expect that bringing the promotion of this product in-house will correct
this trend.
This quarter included a full three months sales for Estrostep(R) and Loestrin
(R), and approximately ten weeks sales for femhrt(R). We have added an
international sales line which represents sales of these products outside the
US, primarily in Canada and the UK.
We launched Femring(R) in June, our vaginal ring for estrogen therapy. We had
initial stocking orders of approximately $1.7 million for this product. We are
pleased with the performance to date but it is still too soon to predict any
trend, particularly for a product which is prescribed for a 90-day period.
We now have our expanded sales force in place. Our 200 person Warner Chilcott
Women's Healthcare sales force is responsible for the launch of Femring(R), as
well as the promotion of femhrt(R) and Ovcon(R). Our new 140 person Warner
Chilcott Specialty salesforce has already started promoting Estrostep(R), the
graduated estrogen oral contraceptive product recently acquired from Pfizer, and
is also responsible for the promotion of Sarafem(R) and our dermatology
products, Dovonex(R) and Doryx(R).
Margins
The gross margin for the quarter was 83% compared to 73% for the same period
last year. This improvement is largely attributable to the disposal of the
lower margin services businesses during the last financial year and as a result
of a greater proportion of our sales being generated from our US business.
Selling, General and Administrative expenses were $42.2 million in the quarter,
compared to $25.5 million in the same quarter last year. This increase is due
primarily to increased selling, advertising and promotion costs being incurred
as we expand our sales force and increase spending on promoting our broadened
product offering. In particular we expensed over $6.0 million of costs this
quarter associated with the launch of Femring(R) in the US.
Operating profit, before amortisation of goodwill and intangibles, was $61.7
million (45% margin) compared to $25.9 million (33% margin) in the same quarter
last year. If the services contribution for last year is excluded, the
operating margin from products showed an improvement to 45% (from 39%), and
increased in dollar terms to $61.7 million from $24.1 million, a rise of 156%.
Research & Development
Total research and development costs were $8.7 million, compared to $6.0 million
in the same quarter last year, an increase of 46%. This increase in costs
reflects ongoing investment in our development pipeline.
During the quarter, clinical work continued on our oral estradiol acetate
product (FemtraceTM), for the treatment of the symptoms of menopause, and our
vaginal ring containing metronidazole (MetroRing(R)), for the treatment of
bacterial vaginosis. We expect to submit New Drug Applications (NDA's) for
FemtraceTM and for a Doryx(R) line extension by the end of our fourth quarter.
We also continue to aim to submit MetroRingTM in the first half of calendar
2004.
Liquidity
During the quarter femhrt(R) was purchased for approximately $162 million. This
transaction was financed from existing cash resources and the drawdown of $150
million in senior bank debt. Net debt at 30 June 2003 was $289.2 million being
a combination of $347.4 million term loans; $49.6 million of senior notes less
$107.8 million cash. On our balance sheet, $103.3 million of this debt is
classified as falling due within one year.
Cash generated from operations during the quarter was very strong at $78.2
million. Strong continuing cashflow, now complemented by cash generated from
sales of newly acquired products, helped to rebuild cash on hand to $108
million.
Adoption of US Dollar
As noted previously, we have adopted the US dollar as the functional currency
for the Group for the year ending 30 September 2003. We therefore present this
quarter's results in US dollars under UK generally accepted accounting
principles (UK GAAP).
In addition, we have included our results in US dollars under US GAAP, as we
have done in prior periods.
Outlook
We are pleased with this set of results and believe that the strategy of
broadening our product offering in our core therapeutic areas provides great
strength to our business as we enter our final quarter. We are confident that we
will deliver adjusted earnings of approximately 80 cents per share for fiscal
2003.
We are in the process of deploying our new Specialty sales force and reviving
the promotion of a number of recently acquired products. In addition,
validation of the manufacturing process for new Ovcon(R) continues and we are
advancing that product to final approval. We are cognisant of the fact that a
generic version of Ovcon(R) may be introduced prior to the approval of this line
extension. However, we believe that our fiscal 2004 performance will be in line
with expectations.
Unaudited results for the period ended 30 June 2003
Consolidated profit and loss account - UK GAAP
Unaudited Unaudited Audited
Quarter ended Nine months ended Year ended
30 June 30 June 30 September
2003 2002 2003 2002 2002
$'000 $'000 $'000 $'000 $'000
_____ _____ _____ _____ _____
Turnover
Pharmaceutical products 135,740 62,632 293,592 174,186 235,221
Pharmaceutical services - discontinued - 15,747 - 57,986 61,325
operations
_____ _____ _____ _____ _____
Total turnover 135,740 78,379 293,592 232,172 296,546
Cost of sales 23,180 20,930 56,283 70,963 89,983
_____ _____ _____ _____ _____
Gross profit 112,560 57,449 237,309 161,209 206,563
_____ _____ _____ _____ _____
Net operating expenses
Selling, general and administrative 42,171 25,514 95,065 73,237 81,433
expenses
Research and development 8,708 5,967 20,795 15,171 20,565
Goodwill amortisation 5,961 6,502 17,567 18,113 23,255
Intangibles amortisation 12,502 3,989 24,473 11,923 17,197
_____ _____ _____ _____ _____
Total net operating expenses 69,342 41,972 157,900 118,444 142,450
_____ _____ _____ _____ _____
Operating profit
Before amortisation of goodwill and
intangibles:
Pharmaceutical products 61,681 24,124 121,449 62,358 94,690
Pharmaceutical services - discontinued - 1,844 - 10,443 9,875
operations
_____ _____ _____ _____ _____
Total before goodwill and intangibles 61,681 25,968 121,449 72,801 104,565
amortisation
Goodwill amortisation (5,961) (6,502) (17,567) (18,113) (23,255)
Intangibles amortisation (12,502) (3,989) (24,473) (11,923) (17,197)
_____ _____ _____ _____ _____
Total operating profit
Pharmaceutical products 43,218 14,011 79,409 33,839 55,584
Pharmaceutical services - discontinued - 1,466 - 8,926 8,529
operations
_____ _____ _____ _____ _____
43,218 15,477 79,409 42,765 64,113
_____ _____ _____ _____ _____
Gain on sale of discontinued operations - 105,357 - 116,209 104,984
_____ _____ _____ _____ _____
Investment income 165 2,442 2,862 7,043 10,894
_____ _____ _____ _____ _____
Profit on ordinary activities before 43,383 123,276 82,271 166,017 179,991
interest
Interest payable and similar charges 3,921 13,437 7,169 26,727 30,592
_____ _____ _____ _____ _____
Profit on ordinary activities before 39,462 109,839 75,102 139,290 149,399
taxation
Tax on profit on ordinary activities 8,752 1,781 15,065 8,314 13,461
_____ _____ _____ _____ _____
Profit on ordinary activities after 30,710 108,058 60,037 130,976 135,938
taxation
Minority interests - - - 46 46
_____ _____ _____ _____ _____
Profit for the financial period 30,710 108,058 60,037 130,930 135,892
Dividends - - 3,474 2,635 8,353
_____ _____ _____ _____ _____
Retained profit for the period 30,710 108,058 56,563 128,295 127,539
_____ _____ _____ _____ _____
Earnings per share (cents) 16.7 58.4 32.7 70.7 73.4
Diluted earnings per share (cents) 16.7 58.1 32.7 70.2 72.9
Adjusted earnings per share (cents) 26.8 12.3 55.6 31.8 47.8
Adjusted diluted earnings per share (cents) 26.7 12.3 55.4 31.7 47.5
_____ _____ _____ _____ _____
Unaudited results for the period ended 30 June 2003
Consolidated balance sheet - UK GAAP
Unaudited Audited
30 June 30 September
2003 2002 2002
$'000 $'000 $'000
_____ _____ _____
Fixed assets
Intangible assets 1,370,523 776,675 756,672
Tangible assets 64,362 61,292 60,840
_____ _____ _____
1,434,885 837,967 817,512
_____ _____ _____
Current assets
Stocks 28,722 29,546 26,902
Debtors 70,494 43,021 37,260
Cash at bank and in hand 107,779 410,367 313,012
_____ _____ _____
206,995 482,934 377,174
Creditors: amounts falling due within one year 241,458 82,602 75,866
_____ _____ _____
Net current (liabilities) / assets (34,463) 400,332 301,308
_____ _____ _____
Total assets less current liabilities 1,400,422 1,238,299 1,118,820
Creditors: amounts falling due after more than one year 293,774 174,103 50,953
Provisions for liabilities and charges 5,430 5,242 3,410
Deferred income 6,180 4,903 6,189
_____ _____ _____
Net assets 1,095,038 1,054,051 1,058,268
_____ _____ _____
Capital and reserves
Called up share capital 29,636 29,104 29,578
Share premium account 382,986 372,481 382,749
Capital redemption reserve 323 - 323
Merger reserve 457,800 445,649 457,800
Profit and loss account 224,293 206,817 187,818
_____ _____ _____
Equity shareholders' funds 1,095,038 1,054,051 1,058,268
_____ _____ _____
Unaudited results for the period ended 30 June 2003
Consolidated cash flow statement - UK GAAP
Unaudited Unaudited Audited
Quarter ended Nine months ended Year ended
30 June 30 June 30 September
2003 2002 2003 2002 2002
$'000 $'000 $'000 $'000 $'000
_____ _____ _____ _____ _____
Net cash inflow from operating activities 78,196 25,686 137,124 65,293 93,451
_____ _____ _____ _____ _____
Returns on investments and servicing of
finance
Interest paid (1,258) (13,060) (4,533) (26,229) (35,174)
Interest received 165 2,322 3,764 6,929 10,815
_____ _____ _____ _____ _____
(1,093) (10,738) (769) (19,300) (24,359)
_____ _____ _____ _____ _____
Taxation
Corporation tax paid (3,480) (1,601) (8,571) (3,492) (6,634)
_____ _____ _____ _____ _____
Capital expenditure
Purchase of tangible fixed assets (1,037) (3,458) (5,446) (14,110) (17,086)
Sale of tangible fixed assets 40 - 40 - -
Purchase of intangible fixed assets (164,725) - (667,643) (42,863) (43,694)
Government grant received 194 832 501 813 2,161
_____ _____ _____ _____ _____
(165,528) (2,626) (672,548) (56,160) (58,619)
_____ _____ _____ _____ _____
Acquisitions and disposals
Sale of businesses (net of costs) - 183,373 (324) 214,255 230,789
Acquisition costs and deferred consideration - - - (8,944) (9,118)
payments
_____ _____ _____ _____ _____
- 183,373 (324) 205,311 221,671
_____ _____ _____ _____ _____
Equity dividends paid - - (5,767) (4,552) (7,449)
_____ _____ _____ _____ _____
Net cash flow before management of liquid (91,905) 194,094 (550,855) 187,100 218,061
resources and financing
_____ _____ _____ _____ _____
Management of liquid resources
(Increase) / decrease in short term deposits (63,000) (98,606) 201,500 (55,764) 27,523
_____ _____ _____ _____ _____
Financing
Issue of ordinary share capital (net of 274 31 295 133 247
expenses)
Purchase of own shares - - - - (11,813)
Loan notes repaid - (81,149) - (99,259) (112,623)
Loans received / (repaid) (net) 149,405 (19,987) 345,603 (25,887) (132,126)
Principal repayment under hire purchase (23) (299) (275) (434) (549)
agreements
_____ _____ _____ _____ _____
149,656 (101,404) 345,623 (125,447) (256,864)
_____ _____ _____ _____ _____
Increase / (decrease) in cash in the period (5,249) (5,916) (3,732) 5,889 (11,280)
_____ _____ _____ _____ _____
Unaudited results for the period ended 30 June 2003
Notes to results
1 Basis of preparation
The financial information for the quarterly and nine months periods ended 30
June 2003 and 2002, which is unaudited and does not constitute statutory
accounts, has been prepared using accounting policies consistent with those set
out in the group's 30 September 2002 statutory accounts.
The abridged financial information for the year ended 30 September 2002 has been
extracted from the group's statutory accounts for that year, which have been
filed with the Registrar of Companies. The report of the auditors on those
accounts was unqualified.
2 Earnings per share
Earnings per ordinary share is based on profit for the financial period and on
the weighted average number of ordinary shares in issue during the period,
excluding those held in the employee share trust. Diluted earnings per share is
calculated using an adjusted number of shares reflecting the number of dilutive
shares under option. Adjusted earnings per share figures reflecting the results
from continuing operations before the impact of exceptional items and goodwill
and intangibles amortisation have been calculated to provide shareholders with a
clearer understanding of the underlying trading performance of the group (see
below).
The weighted average numbers of shares used in the calculation of earnings per
share are as follows:
Quarter ended Nine months ended Year ended
30 June 30 June 30 September
2003 2002 2003 2002 2002
Number Number Number Number Number
_____ _____ _____ _____ _____
Weighted average number of
shares:
Basic 183,472,269 185,181,122 183,462,609 185,177,622 185,244,963
Diluted 184,436,944 186,029,010 184,167,786 186,444,272 186,330,634
Quarter ended Nine months ended Year ended
30 June 30 June 30 September
Adjusted earnings per share 2003 2002 2003 2002 2002
(cents)
Earnings per ordinary share 16.7 58.4 32.7 70.7 73.4
Adjustments (net of tax):
Gain on sale of businesses - (56.9) - (61.6) (54.5)
Goodwill and intangibles 10.1 5.7 22.9 16.2 21.8
amortisation
Exceptional costs of notes - 5.1 - 6.5 7.1
redemption
_____ _____ _____ _____ _____
Adjusted earnings per share - 26.8 12.3 55.6 31.8 47.8
basic
_____ _____ _____ _____ _____
Summary of differences between UK and US Generally Accepted Accounting
Principles ("GAAP")
(1) Profit for the financial year and shareholders' funds
The group financial statements are prepared in accordance with UK GAAP which
differs in certain significant respects from US GAAP. The effect of the US GAAP
adjustments to profit for the financial period and equity shareholders' funds
are set out in the tables below:
9 months to
30 June
2003 2002
$'000 $'000
Unaudited
_____
(a) Reconciliation of profit for the financial year to US GAAP
Profit for the financial period under UK GAAP 60,037 130,930
_____
US GAAP adjustments:
Amortisation of goodwill 17,567 17,544
Amortisation of intangibles (3,238) (764)
Depreciation of interest capitalised (39) (38)
Deferred taxation (8,895) (4,964)
Compensation expense (242) (243)
Deferred tax effect of US GAAP adjustments 330 322
_____ _____
US GAAP adjustments total 5,483 11,857
_____ _____
Profit for the financial period under US GAAP 65,520 142,787
_____ _____
As at As at
30 June 30 September
2003 2002
$'000 $'000
Unaudited
_____
(b) Effect on equity shareholders' funds of differences between UK GAAP
and US GAAP
Equity shareholders' funds under UK GAAP 1,095,038 1,058,268
_____ _____
US GAAP adjustments:
Acquisition accounting (119,053) (133,382)
Functional currency adjustment 21,906 -
Capitalisation of interest 2,515 2,554
Deferred taxation (32,765) (24,200)
Employee benefit trust (11,479) (11,153)
Share premium account 11,479 11,153
Dividends 3,474 5,767
_____ _____
US GAAP adjustments total (123,923) (149,261)
_____ _____
Equity shareholders' funds under US GAAP 971,115 909,007
_____ _____
Unaudited consolidated statement of operations - US GAAP
(In thousands of US dollars, except per share data)
Quarter ended Nine months ended
June 30 June 30
2003 2002 2003 2002
$'000 $'000 $'000 $'000
_____ _____ _____ _____
Revenues
Product revenue 135,740 62,632 293,592 174,186
_____ _____ _____ _____
Operating expenses
Cost of sales (excluding depreciation shown 22,055 11,772 53,018 35,736
separately below)
Selling, general and administrative 41,818 19,779 94,069 57,895
Research and development 8,708 5,638 20,795 14,409
Depreciation 1,571 1,365 4,542 3,922
Amortisation 14,202 5,153 27,711 13,980
_____ ____ ____ ____
Total operating expenses 88,354 43,707 200,135 125,942
_____ ____ ___ ____
Operating income 47,386 18,925 93,457 48,244
_____ ____ ____ ____
Other income (expense)
Interest income 165 2,423 2,862 6,966
Interest expense (3,921) (13,813) (7,169) (25,827)
_____ _____ _____ _____
Total other income (expense) (3,756) (11,390) (4,307) (18,861)
_____ _____ _____ _____
Income before taxes 43,630 7,535 89,150 29,383
_____ _____ _____ _____
Provision for income taxes 12,747 1,335 23,630 7,898
_____ _____ _____ _____
Income from continuing operations 30,883 6,200 65,520 21,485
Discontinued operations:
Earnings from discontinued operations (net of - 1,443 - 7,255
tax charge of $607K)
Gain on disposal of discontinued operations (net - 105,357 - 114,047
of tax charge of $nil)
_____ _____ _____ _____
Net income 30,883 113,000 65,520 142,787
_____ _____ _____ _____
Basic and diluted net income per ordinary share:
- continuing operations 0.17 0.04 0.36 0.12
- earnings and gain on disposal of discontinued - 0.57 - 0.65
operations
_____ _____ _____ _____
Basic and diluted net income per ordinary share 0.17 0.61 0.36 0.77
_____ _____ _____ _____
Basic net income per ADS equivalent:
- continuing operations 0.67 0.16 1.43 0.46
- earnings and gain on disposal of discontinued - 2.28 - 2.62
operations
_____ _____ _____ _____
Basic net income per ADS equivalent 0.67 2.44 1.43 3.08
_____ _____ _____ _____
Diluted net income per ADS equivalent:
- continuing operations 0.67 0.16 1.42 0.46
- earnings and gain on disposal of discontinued - 2.27 - 2.60
operations
_____ _____ _____ _____
Diluted net income per ADS equivalent 0.67 2.43 1.42 3.06
_____ _____ _____ _____
Weighted average ordinary shares outstanding
Basic 183,472,269 185,181,122 183,462,609 185,177,622
_____ _____ _____ ______
Diluted 184,436,944 186,029,010 184,167,786 186,444,272
_____ _____ _____ ______
Weighted average ADS equivalents outstanding
Basic 45,868,067 46,295,280 45,865,652 46,294,405
_____ _____ _____ ______
Diluted 46,109,236 46,507,252 46,041,946 46,611,068
_____ _____ _____ ______
Unaudited consolidated balance sheets - US GAAP
(In thousands of US dollars)
Audited
As at As at
June 30 September 30
2003 2002
$'000 $'000
_____ _____
Assets
Current assets:
Cash and cash equivalents 107,779 313,012
Accounts receivable, net 59,040 32,869
Inventories 28,722 26,902
Deferred tax asset 7,590 7,718
Prepaid expense and other assets 11,459 4,397
_____ _____
214,590 384,898
_____ _____
Property, plant and equipment, net 66,877 63,394
Intangible assets, net 1,359,543 623,939
_____ _____
Total assets 1,641,010 1,072,231
_____ _____
Liabilities
Current liabilities:
Accounts payable 16,913 14,007
Accrued and other liabilities 101,613 44,053
Current instalments of long-term debt 102,977 616
Current instalments of obligation under capital leases 282 392
Income taxes 16,218 11,052
_____ _____
Total current liabilities 238,003 70,120
_____ _____
Other liabilities:
Long-term debt, excluding current instalments 293,747 50,729
Long-term obligations under capital leases, excluding current 27 224
instalments
Deferred income taxes 131,938 35,962
Other non-current liabilities 6,180 6,189
______ _____
Total liabilities 669,895 163,224
______ _____
Shareholders' equity
Ordinary shares, par value (pounds sterling) 0.10 per share; 250,000,000 30,039 29,981
(September 30, 2002;250,000,000) shares authorised, 188,164,443 shares
issued and outstanding at June 30 2003 and 187,805,263 issued and
outstanding at September 30, 2002
Additional paid in capital 677,895 677,417
Retained earnings 251,559 191,806
Treasury stock (23,893) (23,893)
Accumulated other comprehensive income 35,515 33,696
_____ _____
Total shareholders' equity 971,115 909,007
_____ _____
Total liabilities and shareholders' equity 1,641,010 1,072,231
_____ _____
Unaudited consolidated statements of cash flows - US GAAP
(In thousands of US dollars)
Quarter ended Nine months ended
30 June 30 June
2003 2002 2003 2002
$'000 $'000 $'000 $'000
_____ _____ _____ _____
Cash flows from operating activities
Net income 30,883 113,000 65,520 142,787
Adjustment to reconcile net income to net cash
provided by operating activities:
Depreciation 1,571 2,225 4,542 7,188
Amortisation of intangibles 14,202 5,153 27,711 13,980
Profit on sale of business - (105,357) - (116,210)
Amortisation of government grants (324) (337) (830) (1,329)
Changes in assets and liabilities:
Increase in accounts receivable, prepaid expense and (16,506) (4,198) (31,461) (13,592)
other assets
Increase in inventories (2,583) (3,188) (1,820) (5,348)
Increase in accounts payable, accrued liabilities 36,437 9,984 49,348 13,321
and other liabilities
Income taxes 9,143 10,590 15,042 13,226
Foreign exchange (loss)/gain 715 (1,259) (353) 2,011
_____ _____ _____ _____
Net cash provided by operating activities 73,538 26,613 127,699 56,034
_____ _____ _____ _____
Cash flows from investing activities
Purchase of tangible fixed assets (1,037) (3,919) (5,446) (14,445)
Sale of tangible fixed assets 40 - 40 -
Purchase of intangible fixed assets (164,725) (5,700) (667,643) (47,737)
Government grants received 194 832 501 832
Proceeds from sale of businesses (net of costs) - 180,368 (324) 216,126
Deferred consideration and acquisition costs - - - (8,772)
_____ _____ _____ _____
Net cash (used in)/provided by investing activities (165,528) 171,581 (672,872) 146,004
_____ _____ _____ _____
Cash flows from financing activities
Long term debt (repaid)/obtained 149,405 (17,447) 345,603 (26,229)
Loan notes repaid - (79,100) - (99,100)
Payments under capital leases (23) (132) (275) (445)
Cash dividends paid - - (5,767) 132
Proceeds from share capital issue (net of expenses) 274 31 295 (4,465)
_____ _____ _____ _____
Net cash provided by/(used in) financing activities 149,656 (96,648) 339,856 (130,107)
_____
_____ _____ _____
Net increase/(decrease) in cash and cash equivalents 57,666 101,546 (205,317) 71,931
Cash and cash equivalents, beginning of period 50,029 290,215 313,012 326,076
Foreign exchange adjustment on cash and cash 84 18,606 84 12,360
equivalents
_____ _____ _____ _____
Cash and cash equivalents, end of period 107,779 410,367 107,779 410,367
_____ _____ _____ _____
This information is provided by RNS
The company news service from the London Stock Exchange
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