-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, rNI4Lp/dsorku9Ha7xv+fAGpjDKfSNSUAuaSiKiOYDagDG59u7K58v9HyNl2Wt0X W7/3KbJ4BYi3n+9+dJxzbw== 0000010081-95-000003.txt : 19950517 0000010081-95-000003.hdr.sgml : 19950517 ACCESSION NUMBER: 0000010081-95-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950213 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: BARR LABORATORIES INC CENTRAL INDEX KEY: 0000010081 STANDARD INDUSTRIAL CLASSIFICATION: 2834 IRS NUMBER: 221927534 STATE OF INCORPORATION: NY FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09860 FILM NUMBER: 95509535 BUSINESS ADDRESS: STREET 1: 2 QUAKER RD BOX D2900 CITY: POMONA STATE: NY ZIP: 10970 BUSINESS PHONE: 9143621100 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period ended December 31, 1994 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 1-9860 BARR LABORATORIES, INC. (Exact name of Registrant as specified in its charter) New York 22-1927534 (State or Other Jurisdiction of (I.R.S. -Employer Incorporation or Organization) Identification No.) Two Quaker Road, P. O. Box 2900, Pomona, New York 10970-0519 (Address of principal executive offices) 914-362-1100 (Registrant's telephone number) (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X NO Number of shares of Common Stock, Par Value $.01, outstanding as of December 31, 1994: 8,751,178. BARR LABORATORIES, INC. AND SUBSIDIARIES INDEX PAGE PART I. FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Balance Sheets as of December 31, 1994 and June 30, 1994 3 Consolidated Statements of Earnings for the three and six-months ended December 31, 1994 and December 31, 1993 4 Consolidated Statements of Cash Flows for the six-months ended December 31, 1994 and December 31, 1993 5 Notes to Consolidated Financial Statements 6-9 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 10-12 PART II. OTHER INFORMATION Item 1. Legal Proceedings 13 Item 4. Submission of Matters to a Vote Security Holders 13 Item 6. Exhibits and Reports on Form 8-K 13 SIGNATURES 14 PART I. BARR LABORATORIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (thousands of dollars, except per share amounts) (unaudited)
December 31 June 30, 1994 1994 ASSETS Current assets: Cash and cash equivalents $ 38,782 $ 36,499 Accounts receivable, less allowances of $1,880 and $2,000, respectively 28,503 21,633 Inventories 31,167 29,350 Deferred income taxes 4,023 3,578 Prepaid expenses 846 643 Total current assets 103,321 91,703 Net property, plant and equipment 34,035 33,127 Other assets 1,119 1,077 Total assets $138,475 $125,907 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $40,040 $32,735 Accrued liabilities 4,386 4,812 Income taxes payable 2,204 929 Total current liabilities 46,630 38,476 Long-term debt, excluding current installments 30,407 30,433 Other liabilities 257 253 Deferred income taxes 1,768 1,761 Commitments & Contingencies - - Contingencies (note 6) Shareholders' Equity: Shareholders' Equity: Common Stock $.01 par value per share Authorized 30,000,000; issued 8,803,603 and 8,783,737 88 88 Additional paid-in capital 31,927 31,591 Retained earnings 27,411 23,318 59,426 54,997 Less: cost of 52,425 shares of common stock in treasury 13 13 Total shareholders' equity 59,413 54,984 Total liabilities and shareholders' equity 138,475 125,907 See accompanying notes to the consolidated financial statements.
BARR LABORATORIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (thousands of dollars, except per share amounts) (unaudited)
Three Months Six Months Ended Ended December 31, December 31, 1994 1993 1994 1993 Net sales $50,878 $25,621 $94,925 $38,818 Cost of sales 39,857 18,712 73,960 25,268 Gross Profit 11,021 6,909 20,965 13,550 Costs and expenses: Selling, general and 4,287 4,309 8,479 9,011 administrative Research and development 2,863 1,782 5,162 3,234 Earnings from operations 3,871 818 7,324 1,305 Interest (income) (375) (115) (691) (271) Interest expense 647 678 1,394 1,298 Other expense (income), net (87) 27 (89) 28 Earnings before income taxes and cumulative effect of accounting change 3,686 228 6,710 250 Income tax expense 1,438 84 2,617 92 Earnings before cumulative effect of accounting change 2,248 144 4,093 158 Cumulative effect of accounting change - - - 374 Net earnings $2,248 $144 $4,093 $532 PER COMMON SHARE: Earnings before cumulative effect of accounting change $0.25 $0.02 $0.46 $0.02 Cumulative effect of accounting change - - - 0.04 Net earnings $0.25 $0.02 $0.46 $0.06 Weighted average common shares and common share equivalents 9,008,836 8,679,791 8,972,823 8,663,379 See accompanying notes to the consolidated financial statements.
BARR LABORATORIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For The Six Months Ended December 31, 1994 and 1993 (thousands of dollars, unaudited)
1994 1993 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: Net earnings $4,093 $532 Adjustments to reconcile net earnings to net cash from (used in) operating activities: Depreciation and amortization 2,045 1,689 Deferred income tax benefit (438) - Cumulative effect of accounting change - (374) Gain on disposal of equipment (87) (5) Changes in assets and liabilities: (Increase) decrease in: Accounts receivable (6,870) (8,204) Inventories (8,012) (1,817) Prepaid expenses (326) (203) Other assets (42) (198) Increase (decrease) in: Accounts payable, accrued liabilities and income taxes payable 8,167 12,630 Net cash from (used in) operating activities 4,848 (2,268) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: Purchases of property, plant and equipment (1,846) (3,166) Proceeds from sale of property, plant and equipment 300 36 Net cash used in investing activities (1,810) (2,866) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Principal payments on long-term debt (82) (35) Proceeds from exercise of stock options and employee stock purchases 336 472 Net cash from financing activities 301 390 Increase (decrease) in cash (3,688) 2,283 Cash and cash equivalents at beginning of period 36,499 25,048 Cash and cash equivalents at end of period $38,782 $21,360 Supplemental cash flow data-Cash paid during the period: Interest, net of portion capitalized $1,398 $1,298 Income taxes $1,791 - See accompanying notes to the consolidated financial statements.
BARR LABORATORIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. Basis of Presentation The consolidated financial statements include the accounts of Barr Laboratories, Inc. and its wholly-owned subsidiaries (the "Company" or "Barr"). In the opinion of the Management of the Company, the interim consolidated financial statements include all adjustments consisting only of normal recurring adjustments, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. Interim results are not necessarily indicative of the results that may be expected for a full year. These financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended June 30, 1994. Certain amounts in prior years' financial statements have been reclassified to conform with the current year presentation. 2. Inventories Inventories consisted of the following (in thousands of dollars): December June 30, 31, 1994 1994 Raw materials and supplies $18,622 $18,064 Work-in-process 6,941 5,093 Finished goods 5,604 6,193 $31,167 $29,350 Tamoxifen Citrate, purchased as a finished product, accounted for $1,200 and $1,992 of finished goods as of December 31, 1994, and June 30, 1994, respectively. 3. Cumulative Effect of Accounting Change - SFAS No.109 Effective July 1, 1993, the Company adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" (SFAS 109). The Standard requires a change from the deferred method under APB Opinion 11 to the asset and liability method of accounting for income taxes. Under the asset and liability method of SFAS 109, deferred income taxes are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The cumulative effect of this accounting change was a one-time gain of $374,000 or $.04 per share. BARR LABORATORIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 4. Earnings Per Common Share and Common Share Equivalents For the three and six-month periods ended December 31, 1994 and 1993, earnings per common share are computed by dividing the earnings applicable to common stock by the weighted average number of common shares outstanding during the period. For the three and six-month periods ended December 31, 1994, the effects of stock options outstanding were included in the calculation of the number of weighted average common shares outstanding. The effects of the convertible subordinated debt and related interest adjustment to earnings were excluded from the three and six-months ended December 31, 1993, as they would be anti-dilutive. 5. Cash and Cash Equivalents As of December 31, 1994, $27,241 of the Company's cash was held in a cash collateral account to secure extension of credit to it by the manufacturer of Tamoxifen Citrate. (See Management's Discussion And Analysis Of Financial Condition And Results Of Operations -- Liquidity and Capital Resources.) 6. Commitments and Contingencies Food and Drug Administration (FDA) Litigation On November 7, 1994, the United States District Court, for the District of New Jersey, issued an order (the "Final Order") that resolved the two-year legal dispute between Barr Laboratories, Inc. and the U.S. Food & Drug Administration ("FDA") over manufacturing practices. The Final Order, which was negotiated between Barr and the FDA, simultaneously concluded the FDA's case against Barr, and Barr's counter- suit against the FDA. This Final Order memorialized the procedure by which the Company can return to market those products voluntarily suspended by the Company early in the dispute, as well as products temporarily suspended by the Court. This procedure requires, among other things, the Company to perform successful validation studies for each product prior to re- introduction. The Final Order also outlines the responsibilities of the FDA in working closely with the Company to reintroduce these products. The Final Order follows notification by the FDA, in September 1994, that the Company is in compliance with current Good Manufacturing Practice ("cGMP") regulations based upon the results of the FDA's most recent cGMP inspections that ended in July 1994. The notification of compliance cleared the way for the Company to receive new product approvals. The Company's first approval, for ciprofloxacin tablets, a product that is subject to an ongoing patent challenge, was received in January 1995. BARR LABORATORIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) In addition, the Company has received approval for the majority of its pending supplemental applications to its existing approved abbreviated new drug applications, which were delayed during the resolution of cGMP issues. These supplemental approvals will further facilitate the Company's ability to reintroduce additional suspended products. The dispute between the Company and the FDA began following extended FDA inspections in 1991 and 1992, when the FDA determined that the Company was not in compliance with cGMP, a position the Company disputed. After attempts to resolve this dispute failed, in June 1992, the FDA filed an action seeking injunctive relief against the Company and two of the Company's current and one former officer for certain alleged violations of the cGMP regulations (the "Action"). This Action was consolidated for trial and discovery purposes with the action brought by the Company in April 1992 in the United States District Court for the District of New Jersey, against the FDA seeking judicial clarification of certain cGMP regulations and the corresponding sanctions imposed by the FDA on the Company for alleged violations of those regulations. Following a 15-day trial during August, September and October 1992, the Court issued a decision in February 1993 for preliminary injunction against the Company (the "Order"). The Court ordered, among other things, (i) the temporary suspension of certain products from the Company's then- current product line; (ii) the recall of 12 batches (out of over seven thousand reviewed during the proceedings) of previously marketed products; and (iii) certain changes to the Company's testing practices. The FDA's motion was denied in other respects, including the claim against the Company's officers. A total of thirty-nine products of the Company's 1993 product line of sixty products were ordered to be "concurrently validated" (i.e., extensive testing on three consecutive production batches) by the Company within one year. Of the thirty-nine products for which concurrent validation was required, the Company validated the economically significant products successfully. Since 1993, the Company has made the changes and taken the actions necessary to comply with the Order and has operated in substantial compliance with the Order. The Final Order brings to closure all significant cGMP issues between Barr and the FDA. Shareholder Action On November 16, 1994, the Company agreed to settle a 1992 shareholder action, filed against the Company and two former officers, which alleged the violation of certain SEC regulations. In December, the Court approved the settlement. Management strongly believed that the case was without merit, but determined that it was in the Company's best interest to settle rather than participate in continued litigation. BARR LABORATORIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) The total settlement, valued at approximately $1.8 million, will be shared equally by the Company and its insurers. A provision for the Company's estimated share of the cost of the action has been previously included in the Company's consolidated financial statements, and therefore the settlement is not expected to have any significant adverse effect on the Company's future earnings. Other Litigation The Company, at December 31, 1994, was involved in other lawsuits incidental to its business, including patent infringement actions. Management, based on the advice of legal counsel, believes that the ultimate disposition of such other lawsuits will not have any significant adverse effect on the Company's consolidated financial statements. 7. Subsequent Events On January 24, 1995, the Company announced that it had elected to prepay the entire principal amount of all outstanding 10.05% Convertible Subordinated Notes, which were due June 28, 2001. Under terms of the Note agreement, the noteholders can convert the Notes, valued at $10 million, to approximately 510,000 shares of Barr common stock, or receive a cash payment of $10 million plus a make-whole amount of approximately $750,000. In February, 1995, the noteholders informed the Company of their intention to convert all such Notes to common shares of Barr Laboratories stock. The noteholders have informed the Company that the shares, received for the conversion, are expected to be privately placed. Upon conversion of the Notes into common shares, the Company will incur an extraordinary loss of approximately $200,000 related to the write-off of previously capitalized financing costs associated with the $10 million Notes. BARR LABORATORIES, INC. AND SUBSIDIARIES Item 2. Management's Discussion And Analysis Of Financial Condition And Results Of Operations Results of Operations Comparison of the Quarter Ended December 31, 1994 to the Quarter Ended December 31, 1993 - (thousands of dollars) Net sales for the quarter ended December 31, 1994, were $50,878 compared to $25,621 for the comparable quarter last year. The 98.6% increase is primarily attributable to a continued increase in demand for Tamoxifen Citrate, the breast cancer treatment distributed by the Company, as well as increased sales for the balance of the Company's product lines. During the three months ended December 31, 1994, sales of Tamoxifen Citrate accounted for approximately 72% of net sales. Since the Company did not commence selling Tamoxifen Citrate until November 1, 1993, a comparison of sales of the product during the three months period ended December 31, 1994, with such sales during the comparable period in 1993, would not be meaningful. Tamoxifen Citrate is a patented product and is manufactured for the Company by the innovator/patent holder. Tamoxifen Citrate, which is distributed by the Company under a non-exclusive license agreement with the innovator, currently only competes against the innovator's product, which is sold under a brand name. Gross profit increased to $11,021 from $6,909 in the comparable quarter last year. This increase was due primarily to the continued increased demand for Tamoxifen Citrate. The gross margin as a percentage of net sales decreased to 21.7% from 27.0%. This decrease is primarily attributed to the lower gross margins associated with the distribution of Tamoxifen Citrate. Selling, general and administrative expenses decreased to $4,287 from $4,309 in the comparable quarter last year and declined as a percentage of net sales to 8.4% from 16.8% in the comparable quarter last year. During this period, selling expenses decreased by $495, resulting from a streamlining of both the outside sales force and in-house sales personnel. Additionally, decreases in spending on advertising as well as lower royalty expenses also contributed to this decrease in selling expenses. The Company's legal expenses decreased as a result of the settlement of its dispute with the FDA. (See note 6 to the Consolidated Financial Statements.) Research and development expenses for the quarter ended December 31, 1994, were $2,863 compared to $1,782 for the comparable quarter last year, a 60.7% increase. The Company is substantially increasing its research and development efforts in fiscal 1994-1995. The Company continues to hire additional personnel, purchase raw material used in research and development, and has increased spending with outside laboratories to conduct biostudies. Accordingly, the Company expects research and development costs to continue to increase from prior year levels. Interest income for the quarter ended December 31, 1994, was $375 compared to $115 for the comparable quarter last year, an increase of 226.1% due to an increase in the average balance of short-term investments as well as an increase in the rate of return earned on those investments. The tax provisions for the quarters ended December 31, 1994, and December 31, 1993, were calculated at an effective tax rate of 39.0% and 36.8% respectively. Results of Operations Comparison of the Six Months Ended December 31, 1994 to the Six Months Ended December 31, 1993 (thousands of dollars, except for per share amounts) Net sales for the six months ended December 31, 1994, were $94,925 compared to $38,818 for the comparable six months last year. The 144.5% increase is primarily attributable to a continued increase in demand for Tamoxifen Citrate, the breast cancer treatment distributed by the Company, as well as increased sales for the balance of the Company's product lines. During the six months ended December 31, 1994, sales of Tamoxifen Citrate accounted for approximately 70% of net sales. Since the Company did not commence selling Tamoxifen Citrate until November 1, 1993, a comparison of sales of the product during the six month period ended December 31, 1994, with such sales during the comparable period in 1993, would not be meaningful. Tamoxifen Citrate is a patented product and is manufactured for the Company by the innovator/patent holder. Tamoxifen Citrate, which is distributed by the Company under a non-exclusive license agreement with the innovator, currently only competes against the innovator's product, which is sold under a brand name. Gross profit increased to $20,965 from $13,550 in the comparable six months last year. This increase was due primarily to the continued increased demand for Tamoxifen Citrate. The gross margin as a percentage of net sales decreased to 22.1% from 34.9%. This decrease is primarily attributed to the lower gross margins associated with the distribution of Tamoxifen Citrate. Selling, general and administrative expenses decreased to $8,479 from $9,011 in the comparable six months last year, a decrease of 5.8%, and declined as a percentage of net sales to 8.9% from 23.2% in the comparable six months last year. During this period, selling expenses decreased by $803, resulting from a streamlining of both the outside sales force and in-house sales personnel. Additionally, decreases in spending on advertising, salesmen's commissions and lower royalty expenses also contributed to this decrease in selling expenses. The Company's legal expenses decreased as a result of the settlement of its dispute with the FDA (See note 6 to Consolidated Financial Statements.) and a decrease in those expenses incurred in connection with the Company's lawsuit challenging the validity of the patent on AZT. Research and development expenses for the six months December 31, 1994, were $5,162 compared to $3,234 for the comparable six months last year, a 59.6% increase. The Company is substantially increasing its research and development efforts in fiscal 1994- 1995. The Company continues to hire additional personnel, purchase raw material used in research and development, and has increased spending with outside laboratories to conduct biostudies. Accordingly, the Company expects research and development costs to continue to increase from prior year levels. Interest income for the six months ended December 31, 1994, was $691 compared to $271 for the comparable six months last year, an increase of 155.0% due to an increase in the average balance of short-term investments as well as an increase in the rate of return earned on those investments. The tax provisions for the six months ended December 31, 1994, and 1993, were calculated at an effective tax rate of 39.0% and 36.8% respectively. Additionally, effective July 1, 1993, the Company adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes." The cumulative effect of this accounting change was a one time gain of $374 or $.04 per share. (See Note 3 to the Consolidated Financial Statements.) Liquidity and Capital Resources The Company had cash and cash equivalents of $38,782 at December 31, 1994, compared to $36,499 at June 30, 1994, an increase of $2,283. This increase primarily resulted from cash provided by operating activities partially offset by the Company's use of funds for capital expenditures. As of December 31, 1994, $27,241 of the Company's cash was held in a cash collateral account to secure extension of credit to it by the manufacturer of Tamoxifen Citrate. The Company continues to evaluate alternatives to using cash to secure its credit, including obtaining a letter of credit facility. The Company has the right to replace the cash collateral with a letter of credit once such a facility is obtained. Cash provided from operating activities was $4,848 for the six months ended December 31, 1994, which included net earnings of $4,093. Additionally, increases in accounts payable, accrued liabilities and income taxes payable of $8,167, as well as non- cash charges (depreciation and amortization) of $2,045 had a favorable impact on the cash provided by operating activities. The increases in accounts payable and accounts receivable were primarily due to increased purchases and sales of Tamoxifen Citrate. The Company purchased approximately $3,166 in capital assets during the six months ended December 31, 1994. Upgrading the Company's core computer systems, an expansion of the Company's executive and administrative offices and purchase of new equipment accounted for the majority of these expenditures. The Company expects that its capital expenditures may increase significantly during the fourth quarter of fiscal 1995. This anticipated increase will be primarily attributed to the construction of a new multi-purpose facility. The Company is currently evaluating alternatives for financing the construction. Management believes that existing capital resources, along with the Company's ability to obtain additional capital, if required, will be adequate to meet its needs for the foreseeable future. PART II. OTHER INFORMATION Item 1. Legal Proceedings See Note 6 to the consolidated financial statements. Item 4. Submission of Matters to a Vote of Security Holders The Annual Meeting of Shareholders of Barr Laboratories, Inc. was held on December 7, 1994, at the Sheraton Crossroads, Mahwah, New Jersey. Of the 8,745,678 shares entitled to vote, 8,576,969 shares were represented at the meeting by proxy or present in person. The meeting was held for the following purpose: 1. To elect a Board of Directors. All eight nominees were elected based on the following votes cast: For Shares Robert J. Bolger 8,575,394 Edwin A. Cohen 8,575,194 Bruce L. Downey 8,575,394 Michael F. Florence 8,575,394 Wilson L. Harrell 8,575,394 Jacob M. Kay 8,575,394 Bernard C. Sherman 8,575,394 George P. Stephan 8,575,394 Item 6. Exhibits and Reports on Form 8-K (a) Exhibit Number Exhibit 11 Computation of Per share earnings 27 Financial data schedule (b) A report on Form 8-K was filed, dated November 16, 1994, containing a press release issued by the Registrant announcing it had agreed to settle, subject to Court approval, a 1992 shareholders' action. BARR LABORATORIES, INC. AND SUBSIDIARIES SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BARR LABORATORIES, INC. Dated: February 13, 1995 /s/ Bruce L. Downey Bruce Downey, Chairman, Chief Executive Officer and President Dated: February 13, 1995 /s/ Paul M.Bisaro Paul M. Bisaro, Chief Financial Officer and General Counsel Dated: February 13, 1995 /s/ Peter J. Finnerty Peter J. Finnerty, Treasurer and Corporate Controller EX-11 2 ARTICLE 5 PER SHARE EARNINGS FOR 12/31/94 [ARTICLE] 5 [MULTIPLIER] 1,000 BARR LABORATORIES, INC. AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS QUARTER AND SIX MONTHS ENDED DECEMBER 31, 1994 AND 1993 (Amounts in thousands, except per share amounts)
1994 1993 1994 1993 QUARTER QUARTER Y-T-D Y-T-D PRIMARY Average shares outstanding 8,748 8,680 8,743 8,663 Net effect of dilutive stock options - based on the treasury stock method using average market price 261 - 230 - Total 9,009 8,680 8,973 8,663 Net earnings $2,248 $144 $4,093 $532 Net earnings per share $0.25 $0.02i $0.46 $0.06ii FULLY DILUTED Average shares outstanding 8,748 8,680 8,743 8,663 Net effect of dilutive stock options - based on the treasury stock method using: quarter-end market price 267 - 267 - average market price - 240 - 240 Convertible debenture 510 503 510 503 Total 9,525 9,423 9,520 9,166 Net earnings $2,248 $144 $4,093 $532 Deferred finance charges, net of tax 14 14 27 27 Interest adjustment, net of tax 153 158 307 317 Total $2,415 $316 $4,427 $876 Net earnings per share $0.25 $0.03iii $0.47 $0.10iii i) Stock options of 240 in 1993 are not included because their inclusion results in less than 3% dilution. ii) Stock options of 229 in 1993 are not included because their inclusion results in less than 3% dilution. iii) Anti-dilutive. Note: The effects of options and convertible debt are also anti-dilutive on Earnings before cumulative effect of accounting change.
EX-27 3 ARTICLE 5 FIN. DATA SCHED. FOR 12/31/94 FISCAL YTD
5 1,000 6-MOS JUN-30-1995 DEC-31-1994 38782 0 28503 0 31167 103321 57382 23347 138475 46630 30407 88 0 0 59325 138475 94925 94925 73960 73960 0 0 1394 6710 2617 4093 0 0 0 4093 .46 .46 Accounts Receivable is Net
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