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Mar 12, 2009 -- GeoVax Labs, Inc. (OTCBB: GOVX), an Atlanta-based
biotechnology company focused on development of an HIV/AIDS vaccine,
today announced its financial results for the fourth quarter and year
ended December 31, 2008, and provided a summary of recent operational
highlights for calendar year 2009 to date.
GeoVax reported a net loss
of $1,039,217 for the fourth quarter ended
December 31, 2008, as
compared to a net loss of $1,155,870 for the
comparable period in
2007. For the full year of 2008, the Company
reported a net loss of
$3,728,187 as compared to a net loss of
$4,241,796 in 2007. GeoVax's
operating results fluctuate due to the
timing of activities and
related costs associated with its vaccine
research and development
activities. Summarized financial information
is presented below.
GeoVax's full set of audited financial statements
are included in its
Annual Report on Form 10-K filed with the
Securities and Exchange
Commission.
Robert T. McNally, Ph.D., GeoVax's president and chief
executive
officer, stated, "For a company of GeoVax's size and stage
of clinical
development, our financial position is on target. Our
operational
expenses are reduced by the National Institutes of
Health's (NIH)
support of our ongoing Phase 2a preventative clinical
trial being
conducted by the HIV Vaccine Trials Network (HVTN), and
are further
offset by the direct grant from the NIH to GeoVax,
covering research
and development for future vaccine improvements. Our
financial security
is enhanced by the common stock purchase agreement
with Fusion Capital
Fund II, LLC. These funds are providing the
Company with resources to
conduct its own clinical trial in HIV
infected, drug controlled
subjects. Planning for this therapeutic
trial is underway with a
projected start for later this year."
Recent
Operational Highlights for Year 2009 - to date
* In February 2009,
GeoVax announced the first injections in its Phase
2a Human Clinical
Vaccine Trial for its candidate HIV/AIDS vaccine.
The trial,
designated HVTN 205, is being conducted by the HVTN (already
provided
definition above). The HVTN, funded and supported by the
National
Institutes of Allergy and Infectious Diseases (NIAID), is the
largest
worldwide clinical trials network dedicated to the development
and
testing of HIV/AIDS vaccines. The HVTN has sponsored over 80 Phase
1
trials for the initial evaluation of safety and immunogenicity of
candidate HIV/AIDS vaccines. Of these, only five have progressed to
Phase 2 trials since 1992. Progressing to Phase 2 was a significant
achievement for GeoVax.
First injections for the Phase 2a trial were
conducted at the HVTN
network sites at the University of Alabama,
Birmingham, and Vanderbilt
University, Nashville. The trial will
include a total of 225 volunteers
(150 vaccine recipients and 75
placebo recipients) and take place at 13
HVTN sites: 11 in North
America and 2 in South America. Sites in the
United States include
Emory University, Atlanta; Harvard Medical
School, Brigham & Women's
Hospital and Harvard-Fenway Hospital in
Boston; Vanderbilt University,
Nashville; University of Rochester; Fred
Hutchinson Cancer Research
Center, Seattle; the San Francisco
Department of Public Health;
University of Alabama, Birmingham, and
sites at Columbia University,
Union Square, and the Bronx in New York
City. In South America,
participants are to be enrolled in Peru at
sites in Iquitos and
Miraflores (Lima).
* In February 2009, GeoVax presented a corporate
update at the Eleventh
Annual BIO CEO & Investor Conference 2009, held
in New York City. Dr.
McNally presented a corporate overview of GeoVax
and its DNA/MVA
vaccine technology, showcasing the scientific
rationale and encouraging
data from the Company's completed studies
and trials.
GeoVax's presentation was offered via a live webcast. A
replay of the
webcast is available on the Company's website until
April 10.
Operational Highlights for Calendar Year 2008
Clinical
Progress
* In October 2008, GeoVax presented data on its Phase 1 AIDS
vaccine
trial (HVTN 065) at the AIDS Vaccine 2008 conference, in Cape
Town,
South Africa. The presentation, entitled "Two HIV DNA Primes
Maximize T
Cell Responses Induced by the GeoVax DNA/MVA Vaccine
Regimen
Administered to Healthy Seronegative Adults (HVTN 065)," was
given by
Dr. Paul A. Goepfert, M.D., Associate Professor, Division of
Infectious
Diseases, Department of Medicine, University of Alabama.
Dr. Goepfert
is the HVTN 065 Protocol Team chair. The trial results
reveal the
GeoVax DNA and MVA vaccines are safe and immunogenic
(stimulate
anti-HIV/AIDS immune responses) at both low (1/10th) dose
and full
doses. Other highlights of the presentation included:
O
GeoVax vaccines were well tolerated with no or mild local and
systemic
reactions in the majority of trial participants.
O Eighty percent of
both the low and full dose trial participants
responded to the vaccine
which stimulated anti- HIV T-cell (white blood
cell) and antibody
responses.
O More volunteers had antibody responses to the full dose
than to the
1/10th dose vaccine, whereas response rates for T cells
were similar
for the 1/10th and full dose.
O Two DNA primes were more
effective than one DNA prime or no DNA
primes at eliciting T cell
responses.
O The second
MVA vaccination positively increased CD8 T
cell and antibody responses.
Dr. Harriet Robinson, the developer of
the vaccine and GeoVax's Vice
President of Research and Development,
also presented these same
results at the Viral Vector Vaccines 2008
meeting, at the Wellcome
Trust Conference Center near Cambridge, U.K.,
on September 28, 2008.
* Phase 2a Preventive Human Trial - As
mentioned above, GeoVax's Phase
2a trial began patient enrollment in
February 2009. The Phase 2a human
trial will broaden the base of
safety and immunogenicity data for the
full dose of the GeoVax AIDS
vaccine with a view to protecting
recipients from developing AIDS
should they be exposed to the virus. In
October 2008, GeoVax shipped
both components (DNA and MVA) of its AIDS
vaccine to the HVTN
pharmacy, and sites were initiated in December. A
tremendous amount of
work conducted by both GeoVax and HVTN during 2008
led to the
initiation of this trial.
* Planning for Therapeutic Human Trials -
GeoVax reported summary data
from a pilot study on therapeutic
vaccination in simian
immunodeficiency virus (SIV) infected non-human
primates with the SIV
prototype of GeoVax's AIDS vaccine. In this
small pilot study,
conducted by Dr. Rama Amara at Emory University,
two non-human primates
were infected with SIV. Data from the study
revealed outstanding
results with the vaccine controlling the
infection with from 100 to
1000 times reduction in viral levels. The
excellent control of the
virus infection in the absence of drug
treatment was associated with
the vaccine raising the types of CD4 and
CD8 T cells that are found in
the rare individuals who spontaneously
control their HIV infections.
Based on these excellent results,
planning for a therapeutic trial in
infected and drug-treated humans
has been initiated. The intent of
therapeutic vaccination will be to
"control" HIV virus levels in
infected individuals to very low levels
thus blocking the development
of AIDS. The Company expects to initiate
human clinical studies for a
therapeutic vaccine during the second
half of 2009.
Manufacturing Progress
* In July 2008, GeoVax and
Vivalis S.A., a French biopharmaceutical
company, signed a letter of
intent for joint collaboration and
commercial license on the use of
Vivalis' EBx(R) technology, to
manufacture the MVA component of the
GeoVax HIV-1 vaccine. The
breakthrough manufacturing technology
developed by Vivalis, through
further development collaboration with
GeoVax, will create a new
standard for manufacture of the MVA
component of GeoVax's HIV/AIDS
vaccine. Vivalis' EBx(R) manufacturing
platform, with its increased
effectiveness, superior quality and
reliability, will speed time to
market MVA vaccine product
availability in ample quantities to meet
sizeable demand and
expectedly at a lesser cost. Vivalis' vaccine
manufacturing technology
is based on a duck embryonic stem cell
substrate platform, providing
continuous growth from a fully
characterized frozen cell bank without
necessitating fertilized embryo
extraction and processing, as with
present chicken cell based
technologies. Furthermore, the EB66(R) cell
line can be grown in
suspension (without the cells attached to the
surface of the growth
vessel) and can be scaled up for growth in giant
bioreactors (a cutting
edge industrial method) for large scale
production of the MVA viral
vaccine.
* In December 2008, GeoVax
engaged the services of VGX International,
Inc. (VGXI), whereby VGXI
will manufacture plasmid (DNA) for use in
GeoVax's future preventative
and therapeutic clinical human trials.
Strengthened Management Team
*
In February 2008, GeoVax announced the addition of company co-
founder
Dr. Harriet Robinson to its staff as Vice President of Research
&
Development, and in June 2008 Dr. Robinson joined the Company's Board
of Directors. Dr. Robinson is known worldwide for her outstanding work
on retrovirus biology and a pioneer of DNA vaccines with special
emphasis on HIV/AIDS. Dr. Robinson has published extensively on
HIV/AIDS vaccine research, with more than 150 referred scientific
journal publications, 50 monograph reviews and six book chapters
authored. She has consulted for the U.S.
National Institutes of
Health, the U.S. Food and Drug Administration,
the Bill and Melinda
Gates Foundation and the World Health
Organization. She served as
Chief of Microbiology and Immunology at
Emory University's Yerkes
National Primate Research Center and was an
Asa Griggs Candler
Professor of Microbiology and Immunology at the
Emory University
School of Medicine. Dr. Robinson is the inventor of
GeoVax's HIV-1
AIDS vaccine technology and co- founder of the Company.
* In April
2008, GeoVax named Dr. Robert McNally as its President and
CEO. Former
President/CEO and Company co-founder Don Hildebrand
remained as
Chairman of the Board of Directors and continues to be
involved in
company development, growth and expansion plans in the AIDS
vaccine
arena. Dr. McNally has been a
member of the GeoVax Board of Directors
since 2006 and was previously a
co-founder and CEO of Cell Dynamics,
LLC, and Cell Design, LLC,
companies specializing in GMP processing of
human cells for
pharmaceutical and therapeutic applications. Dr.
McNally was also
co-founder and Sr.
Vice President of Clinical
Research for CryoLife, Inc., a pioneering
company in transplantable
human tissues. He has had previous experience
as European Regional
Manager for Intermedics International, Inc., and
European Marketing
Manager for Pacesetter Systems-Europe, Ltd., in the
U.K. Dr. McNally
serves as a member of the advisory boards of the
Parker H. Petit
Institute for Bioengineering and Bioscience and DuPree
College of
Management at the Georgia Institute of Technology. He is an
elected
fellow of the American Institute for Medical and Biological
Engineering, and is a past Chairman for the Georgia Biomedical
Partnership, a trade association, and is recipient of the 2004
Biomedical Industry Growth Award for the State of Georgia. Dr. McNally
has a Ph.D. and MSE in Bioengineering from University of Pennsylvania
and an electrical engineering degree (B.E.E.) from Villanova
University.
* In August 2008, GeoVax announced the appointment of Mr.
Peter
Tsolinas to its Board of Directors. Mr. Tsolinas also was
subsequently
appointed to membership on GeoVax's Audit Committee and
Compensation
Committee. Mr. Tsolinas currently serves as Chairman and
CEO of TMA
Group Development Corp., a Chicago-based real estate,
architectural and
development firm.
Financing Events
* In January
2008, GeoVax was recognized by Georgia Bio, the state
trade
organization, as a 2007 "Deal of the Year" award winner for
receipt of
the $15 million IPCAVD grant from the National Institutes of
Health
(NIH). The award was presented at Georgia Bio's annual awards
dinner
on January 24, 2008. This grant is believed to be one of the
largest
grants of its kind to be awarded in the last fiscal year. In
September, GeoVax announced receipt of an estimated $15 million
Integrated Preclinical/Clinical AIDS Vaccine Development (IPCAVD) Grant
to support its HIV/AIDS vaccine program. This large grant was awarded
by the National Institute of Allergy & Infectious Disease (NIAID), a
division of the NIH. The grant funding period is over a five year
period which commenced in October 2007. Onlymeritorious HIV/AIDS
prevention vaccine candidates are considered to receive an IPCAVD
award. Candidate companies are highly scrutinized and must supply
substantial positive AIDS vaccine data to support their application.
IPCAVD grants are awarded on a competitive basis and are designed to
support later stage vaccine research, development and human trials.
GeoVax is utilizing this funding to further its HIV/AIDS vaccine
development, optimization and production.
* During April and May 2008,
the Company raised $1,365,000 in capital
through a private placement
of its common stock and warrants sold to
individual accredited
investors.
* In May 2008, the Company entered into a $10 million
common stock
purchase agreement with Fusion Capital Fund II, LLC, a
Chicago-based
institutional investor. Under the agreement, the Company
may sell, from
time to time, up to $10 million of its common stock to
Fusion over a
25-month period, following approval of the Company's
registration
statement by the Securities and Exchange Commission
(declared effective
on July 1, 2008). The Company has the right to
sell shares of its
common stock to Fusion, from time to time, in
amounts ranging from
$80,000 to $1 million, depending on certain
conditions, up to $10
million in the aggregate. The purchase price of
the shares is based on
the prevailing market prices of the Company's
shares at the time of
sales without any fixed discount, and the
Company will control the
timing and amount of any sales of shares to
Fusion. During 2008, the
Company raised $500,000 through the Fusion
facility, with $9.5 million
remaining available at December 31, 2008.
FINANCIAL TABLES FOLLOW
GEOVAX LABS, INC.
Statements of
Operations
Three Months Ended
Year Ended
Data (amounts
in thousands,
December 31,
December
31,
except
per share data)
2008
2007
2008
2007
Grant Revenue
$612
$237
$2,910
$237
Operating expenses:
Research and development
1,016
484
3,741
1,757
General and
administrative
648
919
2,970
2,784
1,664
1,403
6,711
4,541
Loss from operations
(1,052)
(1,166)
(3,801)
(4,304)
Interest
income
13
10
73
62
Net loss
$(1,039)
$(1,156)
$(3,728)
$(4,242)
Net loss per common share
$(0.00)
$(0.00)
$(0.01)
$(0.01)
Weighted averages
shares outstanding
746,067
717,925
740,143
714,102
Balance Sheet Data
(amounts in thousands)
December 31, 2008
2007
Cash and cash equivalents
$2,191
$1,990
Working capital
2,455
2,432
Total
assets
3,056
3,246
Deficit accumulated during
the development stage
(14,254)
(10,525)
Total stockholders'
equity
2,710
2,648
About GeoVax
Labs, Inc.
GeoVax Labs, Inc. is a biotechnology company focused on
developing
human vaccines for diseases caused by HIV-1 (Human
Immunodeficiency
Virus) and other infectious agents. GeoVax's AIDS
vaccine technology is
the subject of 20 issued or filed patent
applications. GeoVax AIDS
vaccines are designed for use in uninfected people to prevent Acquired
Immunodeficiency Disease
(AIDS), caused by the virus known as HIV-1,
should the person ever
become infected. GeoVax AIDS vaccines also may
be effective as
therapeutics, treatment of people already infected with
AIDS virus.
GeoVax's core AIDS vaccine technologies were developed by Dr. Harriet
Robinson, Senior V.P. of Research and Development, through a
collaboration of colleagues at Emory University's Vaccine Center, the
National Institutes of Health (NIH), The Centers for Disease Control
and Prevention (CDC) and GeoVax.
GeoVax AIDS vaccines have moved
forward in human clinical trials
conducted by the HIV Vaccine Trials
Network (HVTN) based in Seattle,
Washington. The HVTN, funded through
a cooperative agreement with the
National Institutes of Health (NIH),
is the largest worldwide clinical
trials program dedicated to the
development and testing of AIDS
vaccines. Preclinical work enabling
evaluation of GeoVax DNA and MVA
vaccines was funded and supported by
NIAID, which provided additional
support to GeoVax AIDS vaccine
development program with a $15 million
IPCAVD grant awarded in late
2007.
Mar 12, 2009 -- GlaxoSmithKline (NYSE: GSK). Prasco Laboratories
declared on 11 March that the company has executed a marketing and
distribution agreement with GlaxoSmithKline, a research-based
pharmaceutical and healthcare company. The latter's FLONASE
(fluticasone propionate) Nasal Spray will be the first product to be
marketed under this agreement. FLONASE is a registered trademark of
Glaxo Group Limited UK.
As GSK's agent and on GSK's behalf, Prasco
will solicit orders for, and
distribute Fluticasone Propionate Nasal
Spray to all trade classes in
the US under a GSK/Prasco label.
Fluticasone Propionate Nasal Spray is AB-rated, therapeutically
equivalent and substitutable for the brand FLONASE Nasal Spray.
Fluticasone Propionate is indicated for the management of the nasal
symptoms of seasonal and perennial allergic and non-allergic rhinitis
in adults and paediatric patients four years of age and older.
March
12, 2009 -- Medifast, Inc. (NYSE: MED) announced today fourth
quarter
and fiscal year-end financial results for the period ended
December
31, 2008.
Fourth Quarter highlights included:
-- Fourth quarter
revenues increased 29% compared to 2007; -- Diluted
EPS for the
quarter increased 75% to $0.07 versus $0.04 year-over-year;
-- Direct
sales segment, Take Shape for Life, increased sales 76%
year-over-year
for the quarter; -- Medifast Weight Control Centers
quarterly revenues
increased 55%
For the fourth quarter ended December 31, 2008, Medifast
reported
revenue of $25.5 million, a 29% increase from $19.8 million
in the
fourth quarter of 2007. The Company reported net income of
$949,000, or
$0.07 per basic and fully diluted share, compared with
$601,000, or
$0.05 per basic share - $0.04 per diluted share in the
fourth quarter
of 2007, a diluted EPS increase of 75%.
Fiscal Year
highlights included:
-- Fiscal year 2008 Diluted EPS of $0.38 versus
$0.28, an increase of
36%; -- Revenues increase to $105.4 million, an
increase of 26%; --
Take Shape for Life and Medifast Weight Control
Centers both experience
strong revenue growth; 79% and 68%
respectively
For the fiscal year ended December 31, 2008, Medifast
reported revenue
of $105.4 million, an increase of 26% from $83.8
million for the fiscal
year ended December 31, 2007. The Company
reported net income of $5.4
million, or $0.41 per basic share and
$0.38 per fully diluted share,
versus $3.8 million, or $0.30 per basis
share and $0.28 per fully
diluted share, in 2007. Revenues and net
income represent record
results for the company.
"Our results for the
quarter and the year continue to show validation
of our business model
and product offerings," commented Michael S.
McDevitt, Chief Executive
Officer of Medifast, Inc. "We saw strong
growth in our Take Shape for
Life direct sales segment, as well as our
Medifast Weight Control
Centers. Additionally, we experienced
consistency in our ability to
manage the effectiveness of our
advertising spend in our direct
response segment. All said, 2008 was an
extremely successful year for
Medifast and we look to build upon that
success in 2009."
Mr.
McDevitt continued, "Revenues in our direct sales segment, Take
Shape
for Life, grew 76% for the quarter and represented 56% of fourth
quarter revenues. For fiscal year 2008, revenues increased 79% to $49.5
million versus $27.6 million. Growth in revenues for the segment was
driven by increased product sales as a result of an increase in the
number of clients supported by active health coaches. The number of
active health coaches during the fourth quarter increased to 3,400
compared to 1,850 at the end of 2007, an increase of 84%. We continue
to believe that the clinically-proven Medifast meal replacements are
one of the premier product offerings on the market, and when coupled
with providing that product and clinically proven programs while
educating clients through the support of a network of health coaches,
you have a business model for success."
"We also saw strong growth
during the year in our Medifast Weight
Control Centers," continued Mr.
McDevitt. "Sales for the segment
increased by 68% for the year to $8.4
million. For the year, average
monthly store sales increased to
$38,000 versus $36,000 in 2007. This
growth is extremely impressive
given the fact that we opened 10 new
corporate
centers during the year
end which tend to have a drag on average store
sales as they begin
their ramp up. We are also pleased that during the
quarter our
franchisees opened the initial five centers. Looking ahead
to 2009, we
intend to expand the number of franchise centers, open
strategic
corporate centers and look to improve upon our same store
sales
growth."
"We saw tremendous consistency in our ability to control
advertising
spend for our direct response segment throughout 2008. For
the year, we
consistently generated revenues of approximately $2.50
for every dollar
in advertising spent. Revenues were $44.3 million for
the year, a
decrease of 6% as a result of a reduction in advertising
dollars spent.
Looking to 2009, we will continue to remain flexible in
where we
allocate our spend to provide the greatest return on our
investment in
these uncertain times of advertising effectiveness."
Gross margins increased to a record 75.9% in 2008 from 74.4% a year
ago. The gross margins improved due to efficiencies gained from new
machinery purchases, changes in shipping rules, and a price adjustment
during the month of July.
The Company's balance sheet remains strong
with stockholders' equity of
$38.2 million and working capital of
$12.7 million as of December 31,
2008. The current ratio was 2.5 to 1.
Colonel Brad MacDonald, USMC (Ret.), chairman of the Board of
Directors
of Medifast, Inc. commented, "The Board of Directors of
Medifast is
pleased with the performance of our executive team and the
entire
Medifast organization for their superb execution of the 2008
business
plan in a very tough economic environment. The year was
filled with
dramatic challenges in the macro environment, yet the
company stayed
focused on the opportunities that ultimately
contributed significantly
to shareholder value. Medifast, 'Your
physicians answer to weight
control'(TM) has helped over a million
obese or overweight individuals
and has been recommended by over
15,000 physicians since 1980. With
this strong medical tradition, the
company continues using internet
technology, an expanded network of
health coaches led by a physician,
and our Medifast Weight Control
Centers that meet the consumers need
based on the level of support
they desire. While consumers are
struggling with many economic issues
in these tough times, it appears
that they are investing in the
improvement of their health and
wellbeing. Our Medifast team is
capitalizing on this trend, thus 2009
appears to be shaping up to be a
positive year for Medifast."
Mr. McDevitt concluded, "We are pleased
that our business model of
providing varied levels of support through
multiple distribution
channels has shown the company's general
resiliency to turns in the
overall economic environment. As mentioned,
we witnessed 26% year over
year growth in 2008, and we are pleased to
announce that year to date
in 2009, we are continuing to experience
approximately that same growth
rate in 2009 first quarter revenue
versus the first quarter of 2008."
2009 Sales Trending
Medifast
witnessed 26% year over year growth in 2008, and we are
pleased to
announce that year to date in 2009, we are continuing to
experience
approximately that same growth rate in 2009 first quarter
revenue
versus the first quarter of 2008
Fourth Quarter and Fiscal Year End
2008 Conference Call
The Company will hold a conference call and web
cast to discuss the
results on Thursday, March 12, 2009 at 11:00 a.m.
ET.
Interested parties can access the call by dialing (877) 407-0782
or
(201) 689-8567, or can listen via a live Internet webcast, which
can be
found at www.choosemedifast.com in the section marked "Investor
Relations." A replay of the call is available via web cast at
www.choosemedifast.com until May 12, 2009 or by playback at (877)
660-6853 or (201) 612-7415 through April 12, 2009. Please use account
#286 and conference #315350 for the replay.
About Medifast
Medifast
is the leading easy-to-use, clinically proven
portion-controlled
weight loss program. Medifast has been recommended
by 15,000
physicians and used by over one million customers. Medifast
is
committed to enriching lives by providing innovative choices for
lasting health. Medifast programs have been proven effective through
studies by major university teaching hospitals. The company sells its
products and programs via four unique distribution channels: 1) the web
and national call centers, 2) national network of physicians, 3)
medically supervised Medifast Weight Control Centers, and 4) the Take
Shape For Life direct-selling division, a network of health coaches.
Medifast was founded in 1980 and is located in Owings Mills, Maryland.
Mar 12, 2009 -- PRIMEDIA Inc. (NYSE: PRM), a leading provider of print,
Internet and mobile solutions to help consumers find a place to live,
today reported results for the fourth quarter and full year ended
December 31, 2008.
Fourth Quarter Highlights
-- Total revenue of
$73.4 million, representing a $5.7
million year-over-year decrease,
primarily due to a decrease in New
Homes revenue.
-- Apartments, the
Company's largest division, representing 87% of
fourth quarter
advertising revenue, grew revenue 2.7% on a
year-over-year basis.
--
Adjusted EBITDA decreased 3.6% to $17.3 million, and Adjusted EBITDA
margin expanded from 22.7% to 23.5%.
-- Income from continuing
operations increased $29.7 million to $34.7
million, or $0.78 per
common share, primarily due to the release of
$29.3 million in
deferred tax asset valuation allowance, partially
offset by
restructuring charges of $3.3 million.
-- Net income of $32.0 million,
or $0.72 per share.
Full Year Highlights -- Total revenue of $304.1
million, representing a
$10.7 million year-over-year decline,
primarily due to decreases in New
Homes and DistribuTech revenue,
partially offset by a 2.4% increase in
Apartments revenue.
--
Adjusted EBITDA increased 10.1% to $64.2 million, and Adjusted
EBITDA
margin expanded from 18.5% to 21.1%.
-- Income from continuing
operations increased $104.7 million to $49.0
million, or $1.11 per
common share.
-- Net income of $59.5 million, or $1.35 per share.
Adjusted EBITDA is a non-GAAP financial measure that is described, and
reconciled to the corresponding GAAP measure, in the accompanying
Financial Tables.
"2008 was an important transitional year for our
company," said Charles
Stubbs, President and CEO of PRIMEDIA, "as we
made significant progress
in transforming our company into the clear
leader in our search space,
primarily focused on the more stable
rental market verticals. We
completed the divestiture of non-core
businesses, relocated our
corporate headquarters to Atlanta, and added
and promoted leadership
talent to implement a new set of strategic
objectives.
"We generated relatively solid financial performance in a
difficult
macroeconomic environment. More importantly, we entered 2009
with a
sound financial foundation, supported by strong cash flow and
reasonable leverage, that is enabling us to aggressively address our
challenges and opportunities. Our financial performance and confidence
in our competitive position and outlook are evidenced by our $0.07 per
share regular quarterly dividend and $5.0 million share repurchase
program.
"PRIMEDIA has one simple vision," Mr. Stubbs stated, "to be
the leading
cross-platform provider of content to help consumers find
a place to
live. In the broadest terms, we have four strategic
objectives that
encompass our operational and financial initiatives:
-- Growing our audience by strengthening our consumer product
offerings;
-- Maximizing the connections between our consumers and
advertisers;
-- Growing our market share and revenue; and
--
Streamlining our cost structure.
I look forward to providing a more
comprehensive view of our strategic
objectives on our conference call
and webcast later this morning.
"As we look ahead to 2009, we intend
to continue to grow our customer
count and market share in our largest
business, Apartment Guide and
ApartmentGuide.com, and pursue
enhancements to our product portfolio
and selective market and market
segment expansion. We anticipate
increasing our investment in search
engine optimization and marketing.
We also aim to aggressively grow
our Rentals.com business by focusing
on driving revenue growth and
improving site engineering and
performance, while increasing traffic
primarily through search engine
optimization.
"The residential real
estate sales industry continues to suffer through
an unprecedented
collapse in demand and access to credit markets. As a
result, we
anticipate increasing pressure on our New Homes and
DistribuTech
businesses during 2009, with full year levels of
percentage decline in
revenue exceeding those experienced during fourth
quarter 2008. We
remain focused on managing costs for these businesses
in accordance
with anticipated levels of revenue, and managing our
client
relationships to best position us for opportunities as
macroeconomic
conditions improve.
"We have powerful brands, a strong balance sheet,
a solid
infrastructure and a seasoned team with a successful track
record of
transforming traditional print businesses, and we expect to
leverage
our strengths to increase our market share and enhance
long-term
shareholder value," concluded Mr. Stubbs.
Fourth Quarter
Revenue and Operations
Apartments -- Apartment Guide,
ApartmentGuide.com, Rentals.com and
RentalHouses.com
The Apartments
division, representing approximately 87% of fourth
quarter 2008
advertising revenue, grew by 2.7% to $53.4 million, from
$52.0 million
in fourth quarter 2007. Apartment Guide and
ApartmentGuide.com results
were primarily driven by increased customer
count and apartment
community listings. Revenue from Rentals.com and
RentalHouses.com
increased by 0.1% compared to fourth quarter 2007.
The Apartment Guide
and ApartmentGuide.com business continues to
generate stable growth,
driven by solid sales force execution, greater
Internet utilization,
new product introduction and historically
normalized occupancy rates
in most markets. Rentals.com and
RentalHouses.com are generating
revenue growth, improving site
performance and increasing traffic
through search engine optimization.
New Homes -- NewHomeGuide.com,
AmericanHomeGuides.com
Revenue from New Homes, representing
approximately 13% of fourth
quarter 2008 advertising revenue, declined
by 37.7% to $7.8 million,
from $12.6 million in fourth quarter 2007, as the nationwide weakness
in the
new home sales sector and dislocation in the credit markets
continued
to have a significant adverse impact on this business unit.
The
revenue decline was primarily due to a decline in the number of new
home community listings.
During 2008, the Company ceased publication
of two New Home Guide
Professional Editions. In early 2009, the
Company announced that it was
suspending additional print
publications, while focusing on Internet
offerings in related markets,
as it continues to reduce the cost
structure for this business to
offset expected revenue losses.
DistribuTech
DistribuTech, the
Company's print distribution operation, generated
revenue of $12.2
million, compared to $14.5 million in fourth quarter
2007, a 16.3%
decline. Historically, the primary function of
DistribuTech has been
to ensure priority placement for PRIMEDIA
publications and to reduce
our overall distribution costs. Revenue from
third-party customers
contributes to this reduction in costs.
DistribuTech continues to
experience a significant loss of revenue from
third-party customers,
particularly those who publish free resale home
and automotive
publications, which are scaling back or ceasing
operations or
providing an Internet-only product.
The Company intends to continue to
reduce its cost structure for this
business to offset, in part,
expected revenue losses. The overall goal
is to create a more
efficient distribution network that is less
dependent on third-party
revenue by streamlining the expense structure,
including through real
estate consolidation and process automation, and
optimizing the
distribution footprint by eliminating less effective
locations.
Other
Fourth Quarter Financial Highlights
Operating Expenses
The decrease
in Operating Expenses of 8.3% to $56.1 million was
primarily driven by
reductions in General and Administrative expenses,
partially offset by
a small increase in Distribution and Circulation
expense. This
reflects a post-headquarters relocation overhead
structure, the
elimination of associated professional fees and the
initial results of
various cost efficiency program initiatives. The
Company expects that
the bulk of the expense savings from this program
will occur in 2009,
and it is targeting at least $15 million in expense
reductions.
Adjusted EBITDA
Adjusted EBITDA decreased 3.6% to $17.3 million, from
$18.0 million in
fourth quarter 2007. This decline was primarily
driven by lower revenue
and one-time costs associated with a $0.9
million buyout of certain
retail distribution locations and General
and Administrative expenses.
This decline was partially offset by
lower headcount, lower
professional fees due to the completion of our
headquarters relocation
and other initiatives to reduce operating
expenses. Adjusted EBITDA as
a percentage of total net revenue
increased to 23.5%, from 22.7% in
fourth quarter 2007, despite the
impact of lower revenue.
Income from Continuing Operations
Income
from continuing operations increased $29.7 million to $34.7
million,
from $5.0 million in fourth quarter 2007, primarily due to the
release
of $29.3 million in deferred tax asset valuation allowance.
This
increase was partially offset by the same factors described above
that
contributed to the decline in our Adjusted EBITDA and an increase
in
restructuring charges to $3.3 million from $1.3 million in fourth
quarter 2007.
Net Income
Net income increased $44.6 million to $32.0
million, compared to a loss
of $12.6 million in fourth quarter 2007,
primarily due to the same
factors described above that contributed to
the growth in our Income
from Continuing Operations and a $14.9
million improvement in
discontinued operations due to charges
associated with divestitures in
2007, partially offset by $5.0 million
in litigation settlement costs.
Earnings per Share from Continuing
Operations
Earnings per share from continuing operations increased
$0.67 to $0.78,
from $0.11 in fourth quarter 2007, primarily due to
the same factors
described above in Income from Continuing Operations.
Free Cash Flow and Capital Expenditures
Free cash flow was $11.7
million, compared to ($16.4) million for
fourth quarter 2007. This
improvement was primarily due to an increase
in net cash provided by
operating activities. During fourth quarter
2008, the Company invested
$5.1 million in capital expenditures,
compared to $4.6 million in
fourth quarter 2007. Free cash flow is a
non-GAAP financial measure
that is described, and reconciled to the
corresponding GAAP measure,
in the accompanying Financial Tables.
Balance Sheet
As of December
31, 2008, the Company's cash and cash equivalent balance
increased to
$31.5 million, compared to $14.7 million as of December
31, 2007. The
Company had debt, net of cash, of $230.3 million at
December 31, 2008,
compared to $238.1 million at December 31, 2007.
Dividend
The Board
of Directors of the Company has authorized a regular
quarterly cash
dividend of $0.07 per share of common stock, payable on
March 31,
2009, to stockholders of record on March 23, 2009. The
Company
currently expects to continue to pay a regular quarterly
dividend.
Conference Call
The Company will host a conference call and audio
webcast with
investors, analysts and other interested parties today at
10:00 A.M.
Eastern Time. The call can be accessed live over the phone
by dialing
1-800-762-8779, or for international callers,
1-480-248-5081. The
passcode is 4012540. Additionally, a live audio
webcast will be
available to interested parties for a limited time
only at the
company's website under the Investor Relations section.
A
recorded version will be available after the conference call at
1-800-406-7325 in the U.S. or 1-303-590-3030, if you are outside the
U.S. The replay ID is 4012540. The recorded version will be available
shortly after the completion of the call until midnight, Eastern Time,
March 19, 2009.
Financial Tables follow
PRIMEDIA Inc.
Financial
Tables (Unaudited) ($ in millions, except per share amounts)
Operational Data
Three Months Ended
Twelve
Months Ended
(Including Reconciliation
December
31,
December 31,
of Adjusted EBITDA to Net
2008
2007
2008
2007
Income)
Revenue,
Net: Apartments
$ 53.4
$ 52.0
$
211.4
$
206.4
New Homes
7.8
12.6
39.3
50.8
Total Advertising Revenue
61.2
64.6
250.7
257.2
Distribution
12.2
14.5
53.4
57.6
Total Revenue, Net
$ 73.4
$
79.1
$
304.1
$ 314.8
Cost of Goods Sold
$ 7.4
$ 8.3
$
32.3
$ 34.7
Marketing and
Selling
18.0
18.1
75.4
81.1
Distribution and Circulation
21.1
20.9
85.1
83.6
General and Administrative Expenses
9.6
13.8
47.1
57.2
Total Operating Expenses
$ 56.1
$ 61.1
$
239.9
$ 256.6
Adjusted Earnings
before Interest,
Taxes, Depreciation, Amortization and Other Credits
(Charges)
(A)
(Adjusted
EBITDA)
(B)
$
17.3
$ 18.0
$
64.2
$ 58.2
Depreciation and
Amortization of
Property and Equipment
(4.1 )
(3.3 )
(14.5
)
(12.6 )
Amortization of Intangible
Assets
(0.8 )
(0.9 )
(2.9
)
(3.5 )
Non-Cash
Compensation
(0.8 )
0.1
(2.1
)
(0.5 )
Provision for Restructuring Costs
(3.3 )
(1.3
)
(5.3
)
(10.5 )
Interest
Expense
(4.8 )
(5.5 )
(19.3
)
(77.7 ) (G)
Amortization of Deferred Financing
Costs
(0.2 )
(0.2 )
(0.9
)
(1.7 )
Other Income (Expense), Net
2.0
1.2
2.8
(40.1 ) (G)
Income (Loss) Before Benefit
(Provision) for
Income Taxes
5.3
8.1
22.0
(88.4 )
Benefit (Provision) for Income Taxes
29.4 (C)
(3.1 )
27.0
(C)
32.7
Income (Loss) from Continuing
Operations
34.7
5.0
49.0
(55.7 )
Discontinued Operations
(2.7 ) (D), (E)
(17.6 ) (D) 10.5
(D), (E) 547.1 (D),(F)
Net Income
(Loss)
$ 32.0
$ (12.6 )
$
59.5
$
491.4
Basic and Diluted Earnings
(Loss) per Common Share:
Continuing Operations
$ 0.78
$ 0.11
$
1.11
$ (1.26 )
Discontinued Operations
(0.06 )
(0.40 )
0.24
12.40
Net Income
(Loss)
$ 0.72
$ (0.29 )
$
1.35
$
11.14
Basic Common Shares Outstanding
(weighted-average)
44,184,134
44,152,950
44,176,398
44,118,943
Diluted Common Shares Outstanding
(weighted-average)
44,208,750 44,259,053
44,197,590
44,118,943
Capital Expenditures, net
(excluding
acquisitions)
$ 5.1
$ 4.6
$
13.0
$ 20.4
Balance Sheet Data
At December 31,
2008
2007
Cash and cash equivalents
$
31.5
$ 14.7
Long-term debt,
including current
maturities
$ 261.8
$ 252.8
Common shares outstanding
44,188,550
44,165,450
Reconciliation of Free Cash Flow to
Cash Provided by (Used In)
Operating Activities
Three Months Ended December 31,
Years
Ended December 31,
2008
2007
2008
2007
Net cash provided by (used in)
operating
activities
$ 17.0 $
(11.8 )
$
21.1
$ (45.5 )
Additions to property,
equipment and other
(excluding
acquisitions)
(5.1 )
(4.6 )
(13.0
)
(20.4 )
Capital lease payments
(0.2 )
-
(0.5
)
(0.7 )
Free Cash Flow
(H)
$ 11.7 $
(16.4 )
$
7.6
$ (66.6 )
Supplemental information:
Cash paid for interest,
including interest
on capital
and restructured leases
$ 4.7
$
5.6
$
19.3
$ 90.0
Cash paid for taxes
(net of
refunds received)
$ (3.7 )
$ 24.2
$
7.7
$ 41.8
(A) Other credits (charges) include non-cash
compensation and provision
for restructuring costs.
(B) Use of the
Term Adjusted EBITDA - Adjusted EBITDA is defined as
earnings before
interest, taxes, depreciation, amortization, non-cash
compensation,
provision for restructuring costs and other. The Company
believes that
adjusted EBITDA provides useful information to investors
because it is
an integral part of the Company's internal evaluation of
operating
performance. These operating performance results are used by
the
Company's chief operating decision maker to make decisions about
resource allocation and to assess performance.
Adjusted EBITDA is not
intended to be, and should not be considered as,
an alternative to net
income as determined in conformity with
accounting principles
generally accepted in the United States of
America. Adjusted EBITDA,
as presented, may not be comparable to
similarly titled measures
reported by other companies since not all
companies necessarily
calculate adjusted EBITDA in an identical manner,
and, therefore, it
is not necessarily comparable between companies.
(C) Includes a $29.3
million release of deferred tax asset valuation
allowance.
(D)
Includes gain/(loss) on sale of business, net of estimated tax, of
$(0.1) million and $24.7 million for the three months ended December
31, 2008 and 2007, respectively, and $2.0 million and $459.1 million
for the twelve months ended December 31, 2008 and 2007, respectively.
(E) For the three and twelve months ended December 31, 2008, the
Company recognized an estimated tax benefit of $3.6 million and $20.5
million, respectively, in discontinued operations, primarily as a
result of its ability to carry back a projected 2008 net operating loss
(for tax purposes) against taxes paid on a portion of the 2007 gain on
divestures of certain subsidiaries.
(F) In the first quarter of 2007,
the Company recorded tax benefits of
approximately $61.0 million
related to its Enthusiast Media ("PEM")
segment. These benefits, which
were recorded as a component of
discontinued operations, represent the
tax consequences of the
recharacterization of certain indefinite-lived
intangible assets to
definite-lived in connection with the
classification of PEM business as
held for sale, and were recorded
when it became apparent that certain
taxable temporary differences
would reverse.
(G) During the third quarter of 2007, the Company
repaid all $492.5
million of its term loan, redeemed all $410.0
million of its 8 7/8%
Senior Notes due 2011, redeemed $292.2 million
of its 8.00% Senior
Notes due 2013 and redeemed all $122.5 million of
its Senior Floating
Rate Notes due 2010. In addition, on August 1,
2007, the Company
completed the financing for a $350.0 million senior
secured bank credit
facility, consisting of a $100.0 million revolving
loan facility and a
$250.0 million Term Loan B. During the second
quarter of 2008, the
Company redeemed the remaining $2.6 million of
its 8.00% Senior Notes
due 2013. In addition, Other income (expense),
net includes a loss on
the redemption of debt of approximately $44.3.
(H) Use of the Term Free Cash Flow - Free cash flow is defined as net
cash provided by (used in) operating activities, adjusted for additions
to property, equipment and other (excluding acquisitions), and capital
lease payments. Discontinued operations are included until sold or
shut
down.
The Company believes that the use of free cash flow
enables the
Company's chief operating decision maker to make decisions
based on the
Company's cash resources. The Company believes that free
cash flow
provides useful information to investors as it is considered
to be an
indicator of the Company's liquidity, including its ability
to reduce
debt, make strategic investments and pay dividends.
Free
cash flow is not intended to represent cash flows from operating
activities as determined in conformity with accounting principles
generally accepted in the United States of America. Free cash flow, as
presented, may not be comparable to similarly titled measures reported
by other companies since not all companies necessarily define free cash
flow in an identical manner, and, therefore, it is not necessarily
comparable between companies.
About PRIMEDIA Inc.
PRIMEDIA Inc. helps
millions of consumers nationwide find a place to
live through its
innovative print, Internet and mobile solutions. From
publishing its
flagship advertising-supported Apartment Guide since
1975 to launching
industry-leading online real estate destinations such
as
ApartmentGuide.com, Rentals.com and NewHomeGuide.com, PRIMEDIA
continues to simplify the consumer home search and drive leads that
result in occupancy for property managers, landlords, new home builders
and real estate professionals.
March 12, 2009 -- Simcere
Pharmaceutical Group ("Simcere" or the
"Company') (NYSE: SCR), a
leading manufacturer and supplier of branded
generic pharmaceuticals
and manufacturer of the patented anti-cancer
biotech product Endu in
China, today reported unaudited financial
results for the quarter and
fiscal year ended December 31, 2008.
Highlights
-- Total revenue
increased to RMB 466.9 million (US$68.4 million) for
the fourth
quarter of 2008, representing 17.1% year-over-year growth;
for the full year of 2008, total revenue was RMB 1,741.1 million
(US$255.2
million), an increase of 27.2% from RMB 1,368.7 million for
the full
year of 2007;
-- Income from operations was RMB 72.7 million (US$10.6
million) for
the fourth quarter of 2008, compared to RMB 73.2 million
for the
corresponding period in 2007. For the full year of 2008,
operating
income was RMB 357.0 million (US$52.3 million), an increase
of 35.3%
from RMB 263.9 million for the full year of 2007;
-- Net
income was RMB 51.7 million (US$7.6 million) for the fourth
quarter of
2008, representing 33.8% year-over-year decrease; for the
full year of
2008, net income was RMB 350.2 million (US$ 51.3 million),
an increase
of 16.2% from RMB 301.3 million for the full year of 2007;
-- Gross
margin for the fourth quarter of 2008 increased to 83.1%,
compared to
82.2% for the corresponding period in 2007. For the full
year of 2008,
gross margin was 81.6%, compared to 82.4% in 2007.
Mr. Jinsheng Ren,
Chairman and Chief Executive Officer of Simcere
Pharmaceutical Group,
commented: "We are pleased that Simcere achieved
overall steady growth
in 2008. While the sales growth of Endu has
remained below our
expectations, both Bicun and Yidasheng have
continued to deliver
strong sales growth despite the emergence of
competitors in the
edaravone market. We are also encouraged by the
continued strong
performance from our branded generics.
"In 2009, we believe that our
edaravone products and Sinofuan will be
the key growth drivers for the
Company. With Simcere's strong balance
sheet and prudent approach to
selecting acquisition targets, we will
continue to pursue
opportunities that enrich our product pipeline and
support our
long-term development."
The Company announced that it recently
acquired the remaining 10% of
Shandong Simcere Medgenn
Bio-Pharmaceutical Co. Ltd, the manufacturer
of Endu, that it did not
already own, bringing Simcere's total
ownership to 100%.
2008 Fourth
Quarter and Full Year Financial Results
Total revenue for the fourth
quarter of 2008 was RMB 466.9 million
(US$68.4 million), an increase
of 17.1% from RMB 398.6 million for the
corresponding period in 2007.
For the full year of 2008, total revenue
was RMB 1,741.1 million
(US$255.2 million), an increase of 27.2% from
RMB 1,368.7 million for
the full year of 2007.
Revenue from Endu, the Company's patented
anti-cancer biotech product
launched in July 2006, totaled RMB 58.1
million (US$8.5 million) in the
fourth quarter of 2008, representing
12.4% of the Company's product
revenue for the quarter and a decrease
from RMB 64.0 million for the
corresponding period in 2007. For the
full year of 2008, revenue from
Endu totaled RMB 239.4 million
(US$35.1 million), an increase of 10.8%
from RMB216.2 million for the
full year of 2007.
Revenue from first-to-market edaravone injection
products under the
brand names Bicun and Yidasheng totaled RMB 192.8
million (US$28.2
million) in the fourth quarter of 2008, an increase
of 31.1% from RMB
147.0 million for the corresponding period in 2007.
For the full year
of 2008, revenue from Bicun and Yidasheng totaled
RMB 651.2 million
(US$95.4 million), an increase of 46.8% from RMB
443.4 million for the
full year of 2007. While the number of competing
edaravone products
increased during 2008, Simcere's Bicun and
Yidasheng remained the
established market leaders in China's first and
second tier markets and
continued to achieve penetration in third tier
markets.
Revenue from other first-to-market products; Jiebaishu, a
nedaplatin
product, Sinofuan, a 5-FU sustained release implant for the
treatment
of cancer, and Anxin, a biapenem injection, totaled RMB 25.7
million
(US$3.8 million) in the fourth quarter of 2008. For the full
year of
2008, revenue from these products totaled RMB 59.8 million
(US$8.8
million).
Revenue from other branded generic products totaled
RMB 190.2 million
(US$27.9 million) in the fourth quarter of 2008, an
increase of 2.7%
from
RMB 185.3 million for the corresponding period
in 2007. For the full
year of 2008, revenue from other branded generic
products totaled RMB
786.4 million (US$115.3 million), an increase of
12.1% from RMB 701.7
million for the full year of 2007.
Gross margin
for the fourth quarter of 2008 increased to 83.1%,
compared to 82.2%
for the corresponding period in 2007. For the full
year of 2008, gross
margin was 81.6%.
Research and development expenses for the fourth
quarter of 2008
totaled RMB 34.0 million (US$5.0 million), an increase
of 113.5% from
RMB 15.9 million for the corresponding period in 2007.
The increase was
primarily due to the expansion of the research and
development team and
the initiation of new research projects. As a
percentage of total
revenue, research and development expenses were
7.3% for the fourth
quarter of 2008, compared to 4.0% for the
corresponding period in 2007.
For the full year of 2008, research and
development expenses totaled
RMB 86.1 million (US$12.6 million),
compared to RMB 68.3 million for
the full year of 2007.
Sales
marketing and distribution expenses for the fourth quarter of
2008
were RMB 225.8 million (US$33.1 million), an increase of 17.1%
from
RMB 192.7 million for the corresponding period in 2007. As a
percentage of total revenue, sales, marketing and distribution expenses
were 48.4% for the fourth quarter of 2008, compared to 48.3% for the
corresponding period in 2007. For the full year of 2008, sales,
marketing and distribution expenses were RMB 783.0 million (US$114.8
million), an increase of 23.4% from RMB 634.4 million for the full year
of 2007.
General and administrative expenses were RMB 55.6 million
(US$8.2
million) for the fourth quarter of 2008, an increase of 21.5%
from RMB
45.8 million for the corresponding period in 2007. The
increase was
primarily due to increased administrative headcount and
higher
professional service fees associated with the compliance
requirements
of Section 404 of the Sarbanes-Oxley Act of 2002. As a
percentage of
total revenue, general and administrative expenses
increased to 11.9%
for the fourth quarter of 2008 from 11.5% for the
corresponding period
in 2007. For the full year of 2008, general and
administrative expenses
were RMB 194.2 million (US$28.5 million), an
increase of 20.6% from RMB
161.1 million for the full year of 2007.
Share-based compensation expenses, which were allocated to research and
development expenses, sales, marketing and distribution expenses, and
general and administrative expenses, based on the nature of the work
that the Company's employees were assigned to perform, totaled RMB 5.7
million (US$0.8 million) for the fourth quarter of 2008. Share-based
compensation expenses for the fourth quarter of 2007 were RMB 8.7
million. For the full year of 2008, share-based compensation expenses
totaled RMB 25.5 million (US$3.7 million), a decrease of 17.0% from RMB
30.8 million for the full year of 2007.
Income from operations was
RMB 72.7 million (US$10.6 million) for the
fourth quarter of 2008,
compared to RMB 73.2 million for the
corresponding period in 2007. For
the full year of 2008, operating
income was RMB 357.0 million (US$52.3
million), an increase of 35.3%
from RMB263.9 million for the full year
of 2007.
Income tax expense for the fourth quarter of 2008 totaled RMB
13.0
million (US$1.9 million), compared to RMB 16.3 million for the
corresponding period in 2007. For the full year of 2008, income tax
expense was RMB 49.3 million (US$7.2 million), compared to RMB 13.5
million for the full year of 2007. In addition to the overall increase
in taxable income, the increased income tax expense in the full year of
2008 was primarily due to the expiration of tax holidays enjoyed by
two
PRC subsidiaries.
Net income was RMB 51.7 million (US$7.6
million) for the fourth quarter
of 2008, compared to RMB 78.1 million
for the corresponding period in
2007, a decrease of 33.8%. Net income
margin was 11.1% for the fourth
quarter of 2008, compared to 19.6% for
the fourth quarter of 2007. For
the full year of 2008, net income was
RMB 350.2 million (US$51.3
million), an increase of 16.2% from RMB
301.3 million for the full year
of 2007. Net income margin was 20.1%
for the full year of 2008,
compared to 22.0% for the full year of
2007.
Basic earnings per share for the fourth quarter of 2008 and the
full
year of 2008 were RMB 0.42 (US$0.06) and RMB 2.80 (US$0.41),
respectively, and diluted earnings per share for the fourth quarter and
the full year of 2008 were RMB 0.42 (US$0.06) and RMB 2.80 (US$0.41),
respectively. One American Depository Share (ADS) represents two
ordinary shares of the Company. Basic earnings per ADS for the fourth
quarter of 2008 and the full year of 2008 were RMB 0.83 (US$0.12) and
RMB 5.61 (US$0.82), respectively, and diluted earnings per ADS for the
fourth quarter of 2008 and the full year of 2008 were RMB 0.83
(US$0.12) and RMB 5.60 (US$0.82), respectively.
As of December 31,
2008, the Company had cash and cash equivalents
(including pledged
bank deposits) and held-to-maturity investment
securities, of RMB
813.8 million (US$119.3 million) and nil,
respectively, compared to
RMB 498.3 million and RMB 470.0 million,
respectively, as of December
31, 2007.
Company Outlook
Simcere expects that China's upcoming
medical reform and increasing
industry consolidation will benefit
Simcere in the long-term. However,
due to short-term uncertainties,
including whether Endu and our
edaravone products will be covered in
the national insurance catalogue,
the Company believes that the most
prudent approach is not to provide
full-year or quarterly guidance on
revenue and income at this time.
Financial Statements
The unaudited
condensed consolidated statements of income and balance
sheets
accompanying this press release have been prepared by management
using
U.S. GAAP. These financial statements are not intended to fully
comply
with U.S. GAAP because they do not present all of the
disclosures
required by U.S. GAAP. The December 31, 2007 balance sheet
was derived
from the audited consolidated financial statements of the
Company.
Conference Call
Simcere Pharmaceutical Group will host a conference
call to discuss the
Company's results for the fourth quarter and full
year of 2008 on
Thursday, March 12, at 8:30 a.m. Eastern Time
(Thursday, March 12 at
8:30 p.m. Beijing/Hong Kong time). The
management team will be on the
call to discuss the results for fourth
quarter and full year of 2008
and to answer questions.
To access the
conference call, please dial:
United States toll-free dial-in number:
+1-866-700-7477 United States
dial-in number: +1-617-213-8840 North
China toll-free dial-in number:
+86-10-800-152-1490 South China
toll-free dial-in number:
+86-10-800-130-0399 Hong Kong dial-in
number: +852-3002-1672
Please ask to be connected to Simcere's Q4 2008
earnings call and
provide the following passcode: 77163710. Simcere
will also broadcast a
live audio webcast of the conference call. The
broadcast will be
available by visiting the "Investor Relations"
section of the Company's
web site at http://www.simcere.com
Following
the earnings conference call, an archive of the call will be
available
by dialing:
United States toll-free dial-in number: +1-888-286-8010
United States dial-in number: +1-617-801-6888
The passcode for replay
participants is: 92927155. The telephone replay
also will be archived
on the "Investor Relations" section of the
Company's web site for
seven days following the earnings announcement.
About Simcere
Pharmaceutical Group
Simcere Pharmaceutical Group (NYSE:SCR, Simcere)
is a leading
manufacturer and supplier of branded generic
pharmaceuticals and
manufacturer of the patented anti-cancer biotech
product Endu in the
rapidly growing China market. In recent years,
Simcere has been
focusing its strategy on the development of
innovative pharmaceuticals
and first-to-market generics, and has
introduced an innovative
anti-cancer medication Endu, a
first-to-market medication Sinofuan, and
first-to-market generics such
as Bicun and Anxin. Simcere manufactures
and sells more than 50
pharmaceutical products including antibiotics,
anti-cancer medication
and stroke management medication and is the
exclusive distributor of
three additional pharmaceuticals that are
marketed under its brand
names. Simcere concentrates its research and
development efforts on
the treatment of diseases with high incidence
and/or mortality rates
and for which there is a clear demand for more
effective
pharmacotherapy such as cancer, strokes, orthopaedics and
infectious
diseases and currently has more than 12 pipeline products.
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