ALLEGAN, Mich., Aug. 2 /PRNewswire-FirstCall/ -- The Perrigo Company (Nasdaq: PRGO) today announced financial results for the full year and fourth quarter ended June 29, 2002.
Fiscal Year 2002
For fiscal 2002, Perrigo's sales increased 10 percent to $826.3 million from $753.5 million for fiscal 2001. Net income was $50.2 million, or $0.67 per share, compared with $27.7 million, or $0.37 per share, reported last year. Both years included a number of one-time items. Excluding those items, net income was $48.9 million, or $0.65 per share in fiscal 2002, compared with net income of $40.5 million, or $0.54 per share in fiscal 2001.
Reported net income for fiscal 2002 includes: (1) after-tax income of $17.9 million, or $0.24 per share, from vitamin litigation settlements; and (2) an after-tax charge of $16.6 million, or $0.22 per share, related to the restructuring of select Mexico operations. Reported net income in fiscal 2001 includes a net charge of $12.8 million after-tax, or $0.17 per share, reflecting the PPA product line discontinuation and a vitamin litigation settlement.
During the fourth quarter, Perrigo restructured a portion of its Mexico- based operations, which manufactured prescription pharmaceuticals and other non-core products.
David T. Gibbons, President and Chief Executive Officer of Perrigo, explained, "Quimica y Farmacia, purchased in 1997, was attractive because of its pharmaceutical manufacturing and packaging capabilities. This business participates in some non-core markets, which are marginally profitable. We will exit the non-core areas and focus our efforts and resources on our core store brand over-the-counter (OTC) pharmaceutical and nutritional business."
Commenting further, Mr. Gibbons noted, "Fiscal 2002 sales growth was spurred by the addition of Wrafton Laboratories, new products and generally strong demand for Perrigo's store brand OTC pharmaceutical and nutritional products. We also recorded margin expansion through operational efficiency initiatives, tight operating expense control and our ability to manage pricing to offset the impact of higher quality costs.
"We exit fiscal 2002 with a very strong balance sheet. Cash and equivalents increased nearly sevenfold to end fiscal 2002 at $76.8 million. Throughout the year, we tightly controlled inventories, receivables and costs, while investing in quality and service initiatives and research and development."
Fiscal Year 2003 Outlook
Mr. Gibbons stated, "Looking to fiscal 2003, we will continue to make progress toward our long-term goals of improving margins and the bottom line, but this will have its challenges. These challenges include a highly competitive marketplace and added costs stemming from our quality programs, company health care coverage and liability insurance. We are realistic about next year and expect earnings to be relatively flat. We remain confident about the health of our business, and confident we will manage our business successfully throughout fiscal 2003."
Fiscal 2002 Fourth Quarter
For the fourth quarter, sales were $182.0 million, a slight increase over the prior year's sales of $180.9 million. Net income was $1.3 million, or $0.02 per share, compared with $6.2 million, or $0.08 per share, reported last year. Excluding one-time items, net income was $5.0 million, or $0.07 per share, compared with $4.3 million, or $0.06 per share, a year ago.
Reported net income in the quarter includes: (1) after-tax income of $12.9 million, or $0.17 per share, from vitamin litigation settlements; and (2) a charge of $16.6 million after-tax, or $0.22 per share, related to the restructuring of select Mexico operations. Reported net income in the fourth quarter a year ago includes a reduction in a charge taken for a product line discontinuation, which added back $1.9 million after-tax, or $0.02 per share.
Perrigo will host a conference call to discuss fiscal 2002 results at 11:00 a.m. (EDT) today. The call and replay will be available via webcast on the Company's web site at http://www.perrigo.com/investor or by phone, toll free, 888-489-0147. A taped replay of the call will be available beginning at approximately 2:30 p.m. (EDT) Friday, August 2. To listen to the replay, call 800-642-1687, access code 5014116 (outside the United States, call 706-645-9291).
Perrigo Company is the nation's largest manufacturer of over-the-counter (non-prescription) pharmaceutical and nutritional products sold by supermarket, drug, and mass merchandise chains under their own labels. The Company's products include over-the-counter pharmaceuticals such as analgesics, cough and cold remedies, gastrointestinal, and feminine hygiene products, and nutritional products, such as vitamins, nutritional supplements and nutritional drinks. Visit Perrigo on the Internet (http://www.perrigo.com ).
Note: Certain statements in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Please see the "Cautionary Note Regarding Forward-Looking Statements" on pages 24-29 of the Company's Form 10-K for the year ended June 30, 2001 for a discussion of certain important factors that relate to forward-looking statements contained in this press release. In addition, the Company's future results may be affected by the impact of events flowing from the September 11, 2001 terrorist attacks, current economic conditions in the United States, retailers' financial difficulties or current cough/cold/flu seasonal trends. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.