Pernix Therapeutics Holdings, Inc. (NYSE Amex: PTX), an integrated specialty pharmaceutical company primarily focused on the pediatric market, today announced results for the three and nine months ended September 30, 2010.
Third Quarter 2010 Highlights
- Acquired Macoven Pharmaceuticals - pharmaceutical company focused on the development of generic products and the sale of authorized generic products; recorded a pre-tax gain of $882,000 in connection with the acquisition;
- Continued IP Investment - acquired TCT control delivery technology;
- Increased Profitability - income before taxes and non-controlling interest increased to $3,248,000;
- Strengthened Financial Position - secured $10,000,000 revolving line of credit with Regions Bank that matures in September 2012;
- Authorized Share Repurchase - repurchased 2,052,000 shares of common stock through open market purchases and a privately negotiated transaction with an employee;
- Maintained Strong Cash Position - approximately $8,665,000 of cash, cash equivalents and restricted cash as of September 30, 2010.
For the third quarter of 2010, net sales increased by approximately 33% to approximately $7,779,000, compared to $5,825,000 for the prior-year quarter. Income before taxes and non-controlling interest during the quarter was $3,248,000, compared to $1,106,000 in the prior-year period. The increase in net sales and income before taxes and non-controlling interest was primarily due to a higher volume of product sales attributable, in part, to territory expansion, and a one-time bargain purchase gain of $882,000 related to the acquisition of Macoven. The Company's after-tax income was approximately $2,386,000, or $0.10 per basic and diluted share for the third quarter of 2010 compared to $1,096,000, or $0.05 per basic and diluted share, in the prior-year quarter.
Cooper Collins, President and Chief Executive Officer of Pernix, stated, "Our results in the third quarter exceeded our expectations with year-over-year revenue growth of over 33% and earnings per share of $0.10. This growth reflects the quality of our current product portfolio, the performance of our sales force and our lean operating structure. During the quarter, we also further strengthened our balance sheet and expanded our operations. We acquired Macoven Pharmaceuticals, funding the transaction with an initial draw-down under our recently signed line of credit. Going forward, we believe Macoven will serve as a vital growth engine for the company as we strive to diversify our revenues through the addition of authorized generic products. Looking ahead, we believe Pernix remains well positioned to achieve profitable growth in sales for the year."
For the nine months ended September 30, 2010, net sales increased by approximately 7% to approximately $21,010,000, compared to $19,574,000 for the prior-year period. The Company's income before taxes and non-controlling interest was approximately $7,866,000 for the nine months ended September 30, 2010, compared to $6,647,000 for the nine months ended September 30, 2009. This increase includes income related to the one-time bargain purchase gain from the acquisition of Macoven. Pernix's after-tax income was approximately $7,821,000, or $0.33 per share, compared to $6,739,000, or $0.32 per share, in the prior-year period. The after-tax income for the nine months ended September 30, 2010 includes one-time benefits associated with the termination of Pernix's "S" Corporation election and the recognition of net operating loss carry forwards associated with Pernix's March 10, 2010 reverse merger with Golf Trust of America, Inc.
As of September 30, 2010, the Company had $8,665,000 in cash, cash equivalents and restricted cash.
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