- Record revenue year for the company - Raw material sales increase 76 percent to $11.5 million - Specialty manufacturing revenue triples to $8.7 million - Fourth quarter 2003 revenues increase 38 percent
IRVING, Texas, Mar 4, 2004 /PRNewswire-FirstCall via COMTEX/ -- Carrington Laboratories, Inc., (Nasdaq: CARN) today reported record revenues of $29.1 million for 2003, up 61 percent from $18 million in 2002. As a result, even with a 47 percent increase in spending for the DelSite Biotechnologies, Inc. subsidiary, which is developing the promising GelSite(TM) technology for controlled delivery of drugs, the net loss dropped to $1.5 million, or 15 cents per diluted share, compared with a net loss of $3.4 million, or 34 cents per diluted share, a year earlier.
Excluding the DelSite expenses, the company would have reported net income of $1.3 million. Fiscal 2003 expenses for DelSite were $2.8 million, compared with $1.9 million the year prior. During the year, the company also invested $1.4 million to enhance production capabilities, improve efficiencies and meet the highest standards for manufacturing its products.
Fourth quarter revenues increased 38 percent to $6.7 million from $4.9 million a year earlier. The net loss for the quarter was $1.1 million, or 10 cents per diluted share, compared with a net loss of $937,000, or 9 cents per diluted share, a year earlier. Funding for the company's DelSite subsidiary was $799,000, compared to an investment of $606,000 in DelSite in the fourth quarter of 2002.
"The company continues to invest in technology for the delivery of new and existing proteins and peptides. DelSite also has ongoing projects in vaccine delivery research with its novel GelVac(TM) system," stated Turner. "The company is furthering its pursuit to develop and commercialize the technology by conducting additional toxicology and pharmacology studies.
"In addition, DelSite is on target to file the chemistry and manufacturing controls for the GelSite polymer with the FDA later this year. Our goal is to have programs in place to initiate human clinical trials that will demonstrate the safety of the GelSite polymer by the end of the year. DelSite's first patent was issued in 1999, and we continue to protect our technology with patents that are pending or are under review covering composition of matter, process, and use."
"Key goals were to reduce manufacturing variances, reduce our loss, and grow the top line at a double digit pace. We have met these goals," said Dr. Carlton E. Turner, president and chief executive officer of Carrington.
"We achieved a 76 percent increase in sales of our raw material Manapol(R) to $11.5 million from $6.5 million," Turner said. "Revenue from specialty manufacturing services, which includes formulation research, product development and manufacturing for our customers, more than tripled to $8.7 million from $2.6 million."
The company saw a modest increase in sales from Carrington's advanced wound care products, including royalties from its licensing and distribution agreement, which rose to $8.5 million from $8.4 million in 2002.
Specialty Manufacturing Update
"The acquisition of the Custom Division of Creative Beauty Innovations Inc. that we completed in December 2002 resulted in $4.1 million in sales and substantially increased our customer base for manufacturing services, while significantly improving our manufacturing capacity utilization," Turner said. "Although the first few months of 2003 were spent incorporating this new business into our manufacturing processes, we still achieved favorable sales for this business area."
Turner also noted that additional operational improvements due to the company's investments in manufacturing equipment and information technology systems for its Texas and Costa Rica plants have better positioned the company operationally for future growth.
Carrington completed 2003 with a cash balance of $1.9 million compared with $3.6 million at year-end 2002. During the year, the company invested $728,000 in receivables and about $1.6 million in inventory, in addition to its capital expenditures to support business growth.
About Carrington Laboratories, Inc.
Carrington Laboratories, Inc., is an ISO-certified, research-based biopharmaceutical and consumer products company currently utilizing naturally occurring complex carbohydrates to manufacture and market products for mucositis, radiation dermatitis, wound and oral care as well as to manufacture and market the nutraceutical raw materials Manapol(R) and Hydrapol(TM). Carrington Laboratories also manufactures and markets consumer products sold under its AloeCeuticals(R) brand and manufactures quality products for other companies. Manufacturing operations comply with cGMP standards. The company's DelSite subsidiary is developing its proprietary GelSite(TM) technology designed to provide controlled release of peptide and protein-based drugs. More than 120 patents in 26 countries protect Carrington Laboratories' technology. Select products are honored with the internationally coveted CE mark, recognized by more than 20 countries around the world. For more information, visit www.carringtonlabs.com .
Certain statements in this release concerning Carrington Laboratories, Inc. may be forward-looking. Actual events will be dependent upon a number of factors and risks including, but not limited to the volatility in the Company's common stock price, subsequent changes in plans by management, delays or problems in formulation, manufacturing, distribution, production, GelVac(TM) research, results of clinical trials, patent status, and/or launch of new finished products, changes in the regulatory process, changes in market trends, and a number of other factors and risks described from time to time in the Company's filings with the Securities and Exchange Commission, including Form 10-Q filed November 14, 2003. We assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
Carrington, Manapol, AloeCeuticals, Hydrapol, GelSite and GelVac are trademarks, registered trademarks or service marks of Carrington Laboratories, Inc., in the United States and/or other countries. All other trademarks or service marks contained herein are the properties of their respective owners.