EX-99.1 3 a4576465ex99.txt EXHIBIT 99.1 PRESS RELEASE EXHIBIT 99.1 IVAX Reports Record Revenues for Fourth Quarter and Year 2003 MIAMI--(BUSINESS WIRE)--Feb. 19, 2004-- Net Revenues Up 23% to $399 Million in 4Q2003; 19% to $1.42 Billion in Y2003; Income from Operations up 28% in 4Q2003 and 15% in Y2003 IVAX Corporation (AMEX:IVX) (LSE:IVX.L) reported fourth quarter 2003 net revenues of $399.0 million, the highest quarterly revenues in IVAX' history, and a 23% increase over net revenues of $325.2 million in the fourth quarter of 2002. Net income for the fourth quarter was $29.3 million, or $.15 a share, compared to net income of $36.8 million, or $.19 a share in the fourth quarter of 2002. Net revenues for the year 2003 were $1.42 billion, also a record for IVAX, and an increase of 19% over net revenues of $1.2 billion in 2002. Net income for 2003 was $121.3 million or $.61 per share (including income from discontinued operations of $22.2 million, or $.11 per share) compared to net income of $122.8 million, or $.62 a share, in 2002. Commenting on the fourth quarter and year 2003 results, Neil Flanzraich, vice chairman and president of IVAX Corporation, said, "We are gratified by the record revenues we achieved in the fourth quarter and year 2003. Our gross profit margin improved to 45.4% in the fourth quarter of 2003 compared to 42.5% in the same quarter in 2002. The gross profit margin for 2003 was 45.0% compared to 44.6% in 2002. We are also pleased that we achieved strong revenue growth in all our major business operations. For the fourth quarter, North American net revenues were up 22% from $140.4 million to $171.9 million, European net revenues were up 39% from $118.2 million to $164.0 million and Latin American net revenues were up 22% from $58.7 million to $71.8 million. For the year 2003, North American net revenues were up 28% from $508.6 million to $650.6 million, European net revenues were up 17% from $454.4 million to $532.5 million, and Latin American net revenues were up 10% from $229.1 million to $251.9 million. "For IVAX, 2003 was a year of investment in our future. In the fourth quarter 2003, we invested $20.6 million (48%) more in sales and marketing and $12.5 million (61%) more in R&D than in the same quarter last year. For 2003, we invested $43.2 million (26%) more in sales and marketing and $32.3 million (42%) more in R&D than in 2002. These investments were used to advance IVAX' proprietary and generic pipelines and to increase our brand sales forces in Europe and the U.S., and we expect our businesses will continue to benefit for years to come. Despite these investments, our income from operations increased in the fourth quarter 28%, from $36.0 million to $46.1 million, and for the year increased 15%, from $149.7 million to $172.6 million. IVAX' net income for the fourth quarter was lower than the comparable 2002 period in part because in the fourth quarter 2002, IVAX received a $20 million payment under a collaboration agreement. No such collaboration payment was received in the fourth quarter of 2003. "IVAX reiterates our earnings guidance for 2004 that we expect to meet or exceed $.89 per share." IVAX will discuss fourth quarter and year 2003 results and other topics when it hosts a conference call and simultaneous webcast at 10 a.m. Eastern Standard (Miami) Time. Interested parties can access the conference call by dialing 1-888-423-3281 from anywhere in the U.S. or by dialing 651-291-0900 from non-U.S. locations. To register and access the webcast, go to IVAX' website at http://www.ivax.com at least fifteen minutes before the 10 a.m. conference call. Click on the website link on the IVAX home page to register and download or install any necessary software. Replays of the conference call will be available starting at approximately 1:30 p.m. on February 19 through February 26. To listen to the replay, dial 1-800-475-6701 and enter ID #721303. Replays of the webcast via IVAX' website will be available from February 19 through February 26. IVAX Corporation, headquartered in Miami, Florida, discovers, develops, manufactures, and markets branded and brand equivalent (generic) pharmaceuticals and veterinary products in the U.S. and internationally. Copies of this and other news releases may be obtained free of charge from IVAX' website at www.ivax.com. Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements, including, among others, statements relating to goals, plans, expectations, estimates and projections regarding the company's financial position, results of operations, market position and business strategy involve risks and uncertainties that cannot be predicted or quantified and, consequentially, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the risks that investments in our proprietary and generic pipelines and sales force will not continue to benefit IVAX and that IVAX' earnings in 2004 may not meet or exceed $.89 per share. In addition to the risk factors set forth above, IVAX' forward looking statements may also be adversely affected by general market factors; product availability; federal and state regulations and legislation; the regulatory process for new products and indications; manufacturing issues that may arise; trade buying patterns; exchange rate fluctuations; patent positions and the timing and outcome of legal proceedings; changing market conditions; the availability and cost of raw materials and other third party products; the impact of competitive products and pricing; and other risks and uncertainties based on economic, competitive, governmental, technological and other factors. For further details and discussion of these and other risks and uncertainties, see IVAX' Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. IVAX undertakes no obligation to publicly update any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. IVAX Corporation and Subsidiaries Condensed Consolidated Statements of Operations Three Months Twelve Months Period Ended December 31, 2003 2002 2003 2002 --------------------- ---------------------- (In thousands, except per share data) Net revenues (1) $399,023 $325,223 $1,420,339 $1,197,244 Cost of sales (1) 217,698 187,027 781,383 663,708 ---------------------- ---------------------- Gross profit 181,325 138,196 638,956 533,536 ---------------------- ---------------------- Operating expenses: Selling 63,011 42,436 212,192 168,952 General and administrative (1) 31,165 32,905 122,414 118,416 Research and development 32,888 20,436 108,347 76,041 Amortization of intangible assets 5,302 5,372 19,719 16,158 Restructuring costs 2,908 1,081 3,706 4,242 ---------------------- ---------------------- Total operating expenses 135,274 102,230 466,378 383,809 ---------------------- ---------------------- Income from operations 46,051 35,966 172,578 149,727 Total other (expense) income, net (8,413) 18,139 (28,160) 19,772 ---------------------- ---------------------- Income before income taxes and minority interest 37,638 54,105 144,418 169,499 Provision for income taxes (1) 8,319 17,661 45,559 51,742 ---------------------- ---------------------- Income before minority interest 29,319 36,444 98,859 117,757 Minority interest 26 326 188 838 ---------------------- ---------------------- Income from continuing operations 29,345 36,770 99,047 118,595 Income from discontinued operations, net of tax of $12,763 - - 22,204 - Cumulative effect of accounting change - - - 4,161 ---------------------- ---------------------- Net income (1) $29,345 $36,770 $121,251 $122,756 ====================== ====================== Basic earnings per common share: Continuing operations $0.15 $0.19 $0.51 $0.61 Discontinued operations - - 0.11 - Cumulative effect of accounting change - - - 0.02 ---------------------- ---------------------- Net income (1) $0.15 $0.19 $0.62 $0.63 ====================== ====================== Diluted earnings per common share: Continuing operations $0.15 $0.19 $0.50 $0.60 Discontinued operations - - 0.11 - Cumulative effect of accounting change - - - 0.02 ---------------------- ---------------------- Net income (1) $0.15 $0.19 $0.61 $0.62 ====================== ====================== Weighted average number of common shares outstanding: Basic 196,521 194,537 195,626 195,037 ====================== ====================== Diluted 200,790 196,377 198,900 197,378 ====================== ====================== IVAX Corporation and Subsidiaries Condensed Consolidated Balance Sheets December 31, December 31, 2003 2002 ---------------------- (In thousands) Assets ------------------------- Cash and cash equivalents $146,870 $155,408 Marketable securities, short-term 10,470 28,873 Other current assets 838,376 696,936 Property, plant and equipment, net 502,942 420,246 Other assets 874,276 746,296 ---------- ----------- Total assets $2,372,934 $2,047,759 ========== =========== Liabilities and Shareholders' Equity ------------------------- Current portion of long- term debt $58,607 $28,617 Other current liabilities 427,942 405,446 Long-term debt 855,335 872,339 Other long-term liabilities 56,208 46,115 Minority interest 12,531 10,379 Shareholders' equity 962,311 684,863 ------------------------ Total liabilities and shareholders' equity $2,372,934 $2,047,759 ======================== Note (1). As a result of our recent return, customer inventory experience, analysis of account receivable aging methodology and tax reserves, our estimates of product returns and other sales allowances, inventory obsolescence, allowance for doubtful accounts and income tax exposures decreased and, accordingly, we recognized increased net revenues, reduced cost of sales, reduced bad debt expense and reduced income tax provision during 2003. During the year ended December 31, 2003, these changes increased net revenues by $13.7 million, reduced cost of sales by $0.8 million, reduced bad debt expense by $3.7 million, reduced the income tax provision by $2.7 million, increased net income by $14.0 million and increased diluted earnings per share by $.07. IVAX Corporation and Subsidiaries Reportable Segment Data Period Ended December 31, Three Months Twelve Months In Thousands 2003 2002 2003 2002 North America External sales $170,373 $130,209 $626,590 $476,085 Intersegment sales 733 849 1,222 1,554 Other revenues 829 9,310 22,767 30,971 ------------------ ---------------------- Net revenues - North America 171,935 140,368 650,579 508,610 ------------------ ---------------------- Europe External sales 138,178 107,610 437,574 371,987 Intersegment sales 22,299 4,321 69,330 40,872 Other revenues 3,563 6,219 25,568 41,573 ------------------ ---------------------- Net revenues - Europe 164,040 118,150 532,472 454,432 ------------------ ---------------------- Latin America External sales 71,353 58,571 251,067 227,933 Other revenues 437 100 838 1,204 ------------------ ---------------------- Net revenues - Latin America 71,790 58,671 251,905 229,137 ------------------ ---------------------- Corporate & other External sales 14,657 12,421 53,671 44,713 Intersegment sales (23,032) (5,170) (70,552) (42,426) Other revenues (367) 783 2,264 2,778 ------------------ ---------------------- Net revenues - Corporate & other (8,742) 8,034 (14,617) 5,065 ------------------ ---------------------- ------------------ ---------------------- Consolidated net revenues $399,023 $325,223 $1,420,339 $1,197,244 ================== ====================== CONTACT: IVAX Corporation, Miami Thomas Beier, 305-575-6563 or David Malina, 305-575-6043