-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Lkn6ojK7drtMZVC+E5lon2Zb9tQ+SCNyXcOBq1GuI+2fDyRiuErQfj1t1iY+EM4J J0YSzu42K1+aA34lorl4JA== 0001157523-04-006972.txt : 20040728 0001157523-04-006972.hdr.sgml : 20040728 20040728091205 ACCESSION NUMBER: 0001157523-04-006972 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040728 ITEM INFORMATION: FILED AS OF DATE: 20040728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IVAX CORP CENTRAL INDEX KEY: 0000772197 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 161003559 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09623 FILM NUMBER: 04934590 BUSINESS ADDRESS: STREET 1: 4400 BISCAYNE BLVD CITY: MIAMI STATE: FL ZIP: 33137 BUSINESS PHONE: 3055756000 MAIL ADDRESS: STREET 1: 4400 BISCAYNE BOULEVARD CITY: MIAMI STATE: FL ZIP: 33137 FORMER COMPANY: FORMER CONFORMED NAME: IVAX CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: IVACO INDUSTRIES INC DATE OF NAME CHANGE: 19871213 FORMER COMPANY: FORMER CONFORMED NAME: INLAND VACUUM INDUSTRIES INC DATE OF NAME CHANGE: 19870611 8-K 1 a4690171.txt IVAX 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 28, 2004 Commission File Number 1-09623 IVAX CORPORATION Florida 16-1003559 - -------------------------------------- --------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 4400 Biscayne Boulevard, Miami, Florida 33137 ------------------------------------------------------------------ (Address of principal executive offices) (Zip Code) (305) 575-6000 ------------- (Registrant's telephone number, including area code) Item 12. Results of Operation and Financial Condition - ------------------------------------------------------ On July 28, 2004, IVAX Corporation issued a press release announcing the results of operations for the quarter ended June 30, 2004. A copy of the press release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K. The information in this Current Report on Form 8-K, including the exhibit attached hereto, is furnished pursuant to Item 12 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. 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. IVAX Corporation Date: July 28, 2004 By: /s/Thomas E. Beier ----------------------------------- Thomas E. Beier Senior Vice President-Finance Chief Financial Officer EXHIBIT INDEX Exhibit - ------- 99.1 Press Release issued July 28, 2004. EX-99.1 2 a4690171ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 IVAX Reports Record Results for Second Quarter of 2004; Revenues up 35% to a Record $464.0 Million; Gross Profit up 49% to a Record $224.6 Million MIAMI--(BUSINESS WIRE)--July 28, 2004-- EPS from Continuing Operations up 140% to $0.24 IVAX Corporation (AMEX:IVX)(LSE:IVX.L) reported second quarter 2004 net revenues of $464.0 million and gross profit of $224.6 million, 35% and 49% increases, respectively, over the $343.0 million net revenues and $151.0 million gross profit of the second quarter 2003. These are the highest quarterly net revenues and gross profits in IVAX' history and IVAX' third consecutive quarter of record net revenues and record gross profits. Earnings per share in the second quarter 2004 were $0.24, all from continuing operations, which represents a 140% increase above the earnings per share from continuing operations of the second quarter of 2003 (2003 earnings per share included $0.10 from continuing operations and $0.11 from discontinued operations). Net income in the second quarter 2004 was $48.1 million, 16% over the $41.3 million in the same period last year. The gross profit margin for the second quarter of 2004 was 48%, compared to 44% in the second quarter 2003 and 47% in the first quarter 2004. IVAX achieved substantial revenue growth in all its major business regions in the second quarter 2004 over the same period last year. North American net revenues increased 53% from $149.6 million to $228.3 million. European net revenues increased 30% from $132.2 million to $171.6 million and Latin American net revenues increased 25% from $60.6 million to $76.0 million. Neil Flanzraich, vice chairman and president of IVAX Corporation, said, "We are pleased by IVAX' outstanding results for this quarter. For the third consecutive quarter our net revenues and gross profit set new records, and for the fifth straight quarter our revenues increased in North America, Europe and Latin America over comparable periods in the previous year. Our global business is the strongest it's ever been. "In a business environment that others have found challenging, our earnings per share rose to $0.24 despite our incurring a one-time expense of $8.5 million for the redemption premium and debt issuance costs in redeeming the entire outstanding $249.0 million of our 5.5% convertible senior subordinated notes that were due in 2007. This redemption, which was financed with the issuance of 1.5% convertible debt in March, will reduce our interest expense in the future. Contributing to IVAX' increased earnings and gross profit margin were new U.S. and International generic product launches, the continuing success in the U.S. and Europe of our branded respiratory products, the increased sales and profits from our Central and Eastern European businesses, and the continued success of our Latin American business. "There is every reason to believe that our current trend of increasing earnings growth will continue, in which case we will exceed our guidance for the year." Dr. Phillip Frost, chairman and CEO of IVAX Corporation, said, "Our strategy of increasing investment in global expansion and R&D for proprietary as well as generic products is beginning to show the returns that we have been anticipating. It is important to fuel the engine that provides for future growth even though our earnings would have been higher without these investments." IVAX will discuss second quarter 2004 results and other topics when it hosts a conference call and simultaneous webcast at 10 a.m. Eastern Time (Miami). Interested parties can access the conference call by dialing 1-888-276-9996 from anywhere in the U.S. or by dialing 612-332-0720 from non-U.S. locations. To access and register for the webcast, go to IVAX' website at http://www.ivax.com at least fifteen minutes before the 10 a.m. conference call and click on the webcast link on IVAX' home page. Replays of the conference call will be available starting at approximately 1:30 p.m. on July 28th and will continue until August 4th. To listen to the replay of the conference call, dial 1-800-475-6701 and enter ID#740053. Replays of the webcast via IVAX' website will also be available. 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, consequently, 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 the subordinated notes redemption may not reduce our interest expense in the future; that the current trend in earnings growth may not continue; that IVAX may not exceed its guidance for the year; and that increased investment in global expansion and R&D may not lead to future growth or provide the returns anticipated. 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, including changes in accounting regulations; 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 (Unaudited) Three Months Six Months Period Ended June 30, 2004 2003 2004 2003 ------------------ ------------------ (In thousands, except per share data) Net revenues $463,962 $342,985 $889,153 $660,678 Cost of sales (excludes amortization, which is presented below) 239,408 192,033 465,193 363,583 ------------------ ------------------ Gross profit 224,554 150,952 423,960 297,095 ------------------ ------------------ Operating expenses: Selling 66,496 52,458 127,867 98,053 General and administrative 43,599 31,279 80,105 56,347 Research and development 38,662 25,065 71,012 45,486 Amortization of intangible assets 5,432 5,315 10,937 9,806 Restructuring costs (reversal) (36) 317 597 780 ------------------ ------------------ Total operating expenses 154,153 114,434 290,518 210,472 ------------------ ------------------ Operating income 70,401 36,518 133,442 86,623 Total other expense, net (12,179) (10,087) (22,494) (14,179) ------------------ ------------------ Income before income taxes and minority interest 58,222 26,431 110,948 72,444 Provision for income taxes 10,071 7,378 20,452 24,484 ------------------ ------------------ Income before minority interest 48,151 19,053 90,496 47,960 Minority interest (53) 33 (57) 111 ------------------ ------------------ Income from continuing operations 48,098 19,086 90,439 48,071 Income from discontinued operations, net of tax of $12,763 - 22,204 - 22,204 ------------------ ------------------ Net income $48,098 $41,290 $90,439 $70,275 ================== ================== Basic earnings per common share: Continuing operations $0.24 $0.10 $0.46 $0.25 Discontinued operations - 0.11 - 0.11 ------------------ ------------------ Net income $0.24 $0.21 $0.46 $0.36 ================== ================== Diluted earnings per common share: Continuing operations $0.24 $0.10 $0.45 $0.25 Discontinued operations - 0.11 - 0.11 ------------------ ------------------ Net income $0.24 $0.21 $0.45 $0.36 ================== ================== Weighted average number of common shares outstanding: Basic 198,268 195,163 197,671 195,066 ================== ================== Diluted 203,037 198,503 202,580 197,578 ================== ================== IVAX Corporation and Subsidiaries Condensed Consolidated Balance Sheets June 30, December 31, 2004 2003 ---------------------- (In thousands) (Unaudited) Assets - ------------------------------------------------ Cash and cash equivalents $191,043 $146,870 Marketable securities, short-term 4,334 10,470 Other current assets 1,018,880 838,376 Property, plant and equipment, net 526,948 502,942 Other assets 902,447 874,276 ---------------------- Total assets $2,643,652 $2,372,934 ====================== Liabilities and Shareholders' Equity - ------------------------------------------------ Current portion of long-term debt $52,329 $58,607 Other current liabilities 447,621 427,942 Long-term debt 982,051 855,335 Other long-term liabilities 52,928 56,208 Minority interest 12,588 12,531 Shareholders' equity 1,096,135 962,311 ---------------------- Total liabilities and shareholders' equity $2,643,652 $2,372,934 ====================== IVAX Corporation and Subsidiaries Reportable Segment Data (Unaudited) Period Ended June 30, Three Six Months Months (In thousands) 2004 2003 2004 2003 ------------------------------------ North America External sales $225,347 $142,436 $392,728 $288,799 Intersegment sales 2,382 178 4,477 462 Other revenues 602 6,954 1,092 17,080 ------------------------------------ Net revenues - North America 228,331 149,568 398,297 306,341 ------------------------------------ Europe External sales 132,374 105,107 273,733 198,810 Intersegment sales 25,596 14,546 44,230 27,941 Other revenues 13,589 12,513 42,049 17,642 ------------------------------------ Net revenues - Europe 171,559 132,166 360,012 244,393 ------------------------------------ Latin America External sales 75,626 60,458 149,062 111,081 Other revenues 388 132 794 259 ------------------------------------ Net revenues - Latin America 76,014 60,590 149,856 111,340 ------------------------------------ Corporate & other External sales 13,825 13,768 25,214 24,815 Intersegment sales (27,978) (14,724) (48,707) (28,403) Other revenues 2,211 1,617 4,481 2,192 ------------------------------------ Net revenues - Corporate & other (11,942) 661 (19,012) (1,396) ------------------------------------ ------------------------------------ Consolidated net revenues $463,962 $342,985 $889,153 $660,678 ==================================== CONTACT: IVAX Corporation, Miami David Malina, 305/575-6043 -----END PRIVACY-ENHANCED MESSAGE-----