LARGO, Fla., Nov. 24, 2009 (GLOBE NEWSWIRE) -- GeoPharma, Inc. (Nasdaq:GORX) (the "Company") announced today the results of its fiscal year 2010 second quarter which ended September 30, 2009, with revenues totaling $3,407,590 from continuing operations and a net loss from continuing and discontinued operations of .23 cents per share versus .25 cents per share for the same period a year ago.
Commenting on the quarter GeoPharma CEO Mihir Taneja stated, "In the second quarter many positive developments for our business occurred. Among the most noteworthy of these events was the restructuring of our loan agreement with Whitebox Pharmaceutical Growth Fund, the finalization of the sale of certain key assets and the discontinuation of our "BOSS" distribution segment, as well as the favorable settlement of litigation regarding our Beta-Lactam Antibiotics facility in Baltimore, Maryland. Additionally, we have continued with our cost containment efforts, with significant headcount reductions and further savings in R&D expenses. We truly believe the adjustments we are making are taking hold in a positive manner. We look forward optimistically to sharing other key developments in the near future and to a favorable 2010 for GeoPharma and its shareholders."
A conference call is scheduled at 11 a.m. Eastern time today and will be hosted by GeoPharma, Inc. CEO, Mihir Taneja and Sr. VP/CFO, Carol Dore-Falcone. Participants may dial in 15 minutes before the call is set to begin to register. The dial in number for participants is 1-719-325-2123. The Conference Confirmation code is 3306847.
A replay of the call will be available from 2 PM ET on November 24, through Tuesday, December 8th. The Replay of the call may be heard by dialing 1-719-457-0820. The Replay Pass Code is 3306847. Participants may also choose to listen to the call via web cast through the link in the events and presentations section of the Investor Relations page of the GeoPharma website located at http://www.geopharmainc.com
ABOUT GEOPHARMA, INC.:
GeoPharma, Inc. is a rapidly growing Bio/Pharma company with a diversified business model participating in Pharmaceuticals, Contract Manufacturing, and Medical devices. The Pharma divisions specialize in the formulation of generic drugs for human and veterinary usage and the development of medical devices used by oncologists and other medical professionals. The Manufacturing division manufactures and packages generic drugs, nutraceuticals, cosmetics, and functional food products for companies worldwide.
For further information visit the GeoPharma website at www.geopharmainc.com .
The GeoPharma, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5384
FORWARD LOOKING STATEMENTS
This press release may contain statements, which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those regarding the company and its subsidiaries' expectations, intentions, strategies and beliefs pertaining to future performance. All statements contained herein are based upon information available to the company's management as of the date hereof, and actual results may vary based upon future events, both within and without management's control. Important factors that could cause such differences are described in the company's periodic filings with the Securities and Exchange Commission.
GEOPHARMA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
September 30, September 30,
------------------------ ------------------------
2009 2008 2009 2008
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues:
Manufacturing 3,003,103 4,560,758 7,622,861 10,862,924
Pharmaceutical 404,487 534,006 986,993 658,443
----------- ----------- ----------- -----------
Total revenues $ 3,407,590 $ 5,094,764 $ 8,609,854 $11,521,367
----------- ----------- ----------- -----------
Cost of goods sold:
Manufacturing 2,218,627 3,007,286 5,131,059 7,760,100
Pharmaceutical 588,711 823,528 1,232,634 1,250,467
----------- ----------- ----------- -----------
Total cost
of goods sold $ 2,807,338 $ 3,830,814 $ 6,363,693 $ 9,010,567
----------- ----------- ----------- -----------
Gross profit:
Manufacturing 784,476 1,553,472 2,491,802 3,102,824
Pharmaceutical (184,244) (289,522) (245,641) (592,024)
----------- ----------- ----------- -----------
Total gross
profit $ 600,252 $ 1,263,950 $ 2,246,161 $ 2,510,800
----------- ----------- ----------- -----------
Selling, general
and administrative
expenses:
Selling, general
and
administrative
expenses 2,857,471 2,915,780 5,463,108 5,701,272
Stock
compensation
expense 709,186 368,067 1,558,501 643,559
Research and
development 291,202 500,950 667,319 1,151,901
Depreciation and
amortization 414,194 539,678 830,430 1,016,244
----------- ----------- ----------- -----------
Total selling,
general and
administrative
expenses $ 4,272,053 $ 4,324,475 $ 8,519,358 $ 8,512,976
----------- ----------- ----------- -----------
Operating income
(loss) before
other income
and expense,
noncontrolling
interest, income
taxes and
discontinued
operations $(3,671,801) $(3,060,525) $(6,273,197) $(6,002,176)
Other income
(expense), net:
Interest income
(expense), net (543,666) (422,635) (998,226) (801,602)
Other income
(expense), net 1,039,891 177 1,052,023 2,277
----------- ----------- ----------- -----------
Total other
income
(expense),
net $ 496,225 $ (422,458) $ 53,797 $ (799,325)
----------- ----------- ----------- -----------
Income (loss)
before
noncontrolling
interest, income
taxes and
discontinued
operations $(3,175,576) $(3,482,983) $(6,219,400) $(6,801,501)
Noncontrolling
interest benefit
(expense) (165,259) 172,688 28,190 370,424
Income tax benefit
(expense) -- 955,500 -- 1,617,900
----------- ----------- ----------- -----------
Net income (loss)
from continuing
operations $(3,340,835) $(2,354,795) $(6,191,210) $(4,813,177)
Discontinued
operations:
Revenues:
Distribution $ -- $10,944,987 $ 4,709,292 $24,543,691
Cost of goods
sold:
Distribution -- 9,203,811 4,095,792 19,855,501
----------- ----------- ----------- -----------
Gross profit
(deficit):
Distribution $ -- $ 1,741,176 $ 613,500 $ 4,688,190
Selling,
general and
administrative
expenses:
Distribution 348,084 3,410,520 2,114,029 6,243,130
Loss on the
sale of BOSS
assets 661,424 -- 661,424 --
Distribution
segment exit
income
(expense) -- -- -- --
----------- ----------- ----------- -----------
Discontinued
operations
net loss
(net of
income tax) $(1,009,508) $(1,669,344) $(2,030,492) $(1,544,265)
----------- ----------- ----------- -----------
Net income (loss) $(4,350,543) $(4,024,139) $(8,221,702) $(6,367,442)
Preferred stock
dividends 69,129 137,500 127,129 287,300
----------- ----------- ----------- -----------
Net income (loss)
available to
common
shareholders $(4,419,472) $(4,161,639) $(8,348,831) $(6,655,417)
=========== =========== =========== ===========
Basic income
(loss) per share $ (0.18) $ (0.15) $ (0.32) $ (0.33)
=========== =========== =========== ===========
Basic weighted
average number
of common shares
outstanding 19,319,598 16,396,092 19,275,142 15,544,306
=========== =========== =========== ===========
Diluted income
(loss) per share $ (0.18) $ (0.15) $ (0.32) $ (0.33)
=========== =========== =========== ===========
Diluted weighted
average number of
common shares
outstanding 19,319,598 16,396,092 19,275,142 15,544,306
=========== =========== =========== ===========
Basic and diluted
discontinued
operations
income(loss)
per share $ (0.05) $ (0.10) $ (0.11) $ (0.10)
=========== =========== =========== ===========