FAIRFIELD, N.J., Jan. 27 /PRNewswire-FirstCall/ -- BRADLEY PHARMACEUTICALS, INC. announced today that it has filed with the Securities and Exchange Commission its Amended Quarterly Report on Form 10-Q for the quarter ended September 30, 2004 and Annual Report on Form 10-K for the year ended December 31, 2004. Bradley had previously announced that it anticipated filing these Reports on or about January 31, 2006.
The Amended Form 10-Q reflects the restatement of Third Quarter 2004 financial statements to reduce net sales by approximately $1.0 million to $27.5 million, net income by approximately $600,000 to $3.0 million, and earnings per share by $.03 to $.18 per share on a fully diluted basis, based upon 18.4 million shares outstanding at September 30, 2004. As previously announced, this restatement is the result of a transaction previously recorded as a sale not meeting the criteria for being a sale. The transaction consisted of a sale of approximately $1.0 million of Deconamine(R) Syrup shipped and paid for in the Third Quarter 2004. The previously recorded sale was modified after the customer expressed its intentions to return the product in that the Company would accept all unsold product as of February 1, 2005, with credit granted against other trade amounts owed by the customer. In the restated financial statements, this transaction has been reflected as deferred revenue.
As reported in the Annual Report on Form 10-K, net income for the year ended December 31, 2004 amounted to approximately $8.0 million, or earnings of $0.49 per share on a fully diluted basis, based upon 18.4 million shares outstanding at December 31, 2004. Net sales for 2004 reached approximately $97.0 million, an increase of approximately $22 million, or 29%, over 2003 net sales.
For 2004, Doak Dermatologics' net sales were $56,862,564, representing an increase of $245,445, or less than 1%, from $56,617,116 for 2003. For 2004, Kenwood Therapeutics' net sales were $23,807,636, representing an increase of $5,745,504, or approximately 32%, from $18,062,132 for 2003. On August 10, 2004, the Company acquired certain assets of Bioglan Pharmaceuticals. The Bioglan net sales for the period from the purchase date through December 31, 2004 were $16,023,787.
The Company also reported an increase of approximately $18 million in its reserves for charges against sales, primarily relating to returns, as of December 31, 2004. The increase in the returns portion of this reserve resulted from, among other factors, (i) the execution during 2005 of Distribution Service Agreements with two wholesale customers which became effective during 2004, (ii) the Company's obtaining customer inventory data from its four largest customers during Fourth Quarter 2004 and First Quarter 2005, (iii) a change in these customers' market dynamics becoming evident during 2005, (iv) the Company's having subsequent return visibility relating to 2004 and prior during 2005, and (v) the Company's experiencing increased generic competition during Fourth Quarter 2004 and 2005.
As previously announced, the Company anticipates filing its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2005, June 30, 2005 and September 30, 2005 on or about March 3, 2006 and Annual Report on Form 10-K for the year ended December 31, 2005 during April 2006. Bradley estimates net sales for the year ended December 31, 2005 will exceed reported 2004 net sales, as 2005 net sales will include a full year's operations of the assets acquired from Bioglan and the introduction during 2005 of several new products. Estimated earnings for 2005 are not yet available.
Bradley Pharmaceuticals, Inc. was founded in 1985 as a specialty pharmaceutical company and markets to niche physician specialties in the U.S. and 38 international markets. Bradley's success is based on the strategy of Acquire, Enhance and Grow. Bradley Acquires non-strategic brands, Enhances these brands with line extensions and improved formulations and Grows the products through promotion, advertising and selling activities to optimize life cycle management. Bradley Pharmaceuticals is comprised of Doak Dermatologics, specializing in topical therapies for dermatology and podiatry; Kenwood Therapeutics, providing gastroenterology, respiratory and other internal medicine brands; and A. Aarons, which will market authorized generic versions of Doak and Kenwood therapies.
Important announcement:
Doak Dermatologics continues its dedicated support of the American Academy of Dermatology that dates to the organization's inception. Doak will be an Emerald sponsor of the 64th Annual Meeting of the AAD, to be held in San Francisco, CA, March 3-7, 2006.
Daniel Glassman will present at the Raymond James & Associates 27th Annual Institutional Investors Conference, Hyatt Regency Grand Cypress in Orlando, FL, March 5-8th, 2006.
Daniel Glassman will present at the CIBC World Markets Annual Specialty Pharmaceutical & Biotechnology Conference, to be held at the Millenium Broadway Hotel in New York City, April 4-5, 2006.
Daniel Glassman will present at the Banc of America Securities LLC, Health Care Conference 2006, to be held at The Four Seasons Hotel in Las Vegas, NV, May 16-18th, 2006.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements include statements that address activities, events or developments that Bradley expects, believes or anticipates will or may occur in the future, such as sales and earnings estimates, other predictions of financial performance, timing of payments on indebtedness, launches by Bradley of new products and market acceptance of Bradley's products. Forward-looking statements are based on Bradley's experience and perception of current conditions, trends, expected future developments and other factors it believes are appropriate under the circumstances and are subject to numerous risks and uncertainties, many of which are beyond Bradley's control. These risks and uncertainties include Bradley's ability to estimate sales, ability to comply with the restrictive covenants under its credit facility; ability to refinance its credit facility, if necessary; ability to access the capital markets on attractive terms or at all; ability to favorably resolve the pending SEC informal inquiry and file required financial statements with the SEC in accordance with the Company's announced timetable, maintain sales of its products, successfully acquire, develop, integrate, or sell new products or effectively react to other risks and uncertainties described from time to time in Bradley's SEC filings, such as fluctuation of quarterly financial results, estimation of product returns, chargebacks, rebates and allowances, concentration of customers, reliance on third party manufacturers and suppliers, litigation or other proceedings (including the pending class action lawsuits), government regulation and stock price volatility. Further, Bradley cannot accurately predict the impact on its business of the approval, introduction, or expansion by competitors of generic or therapeutically equivalent or comparable versions of Bradley's products or of any other competing products. In addition, actual results may differ materially from those projected. Bradley undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Please visit Bradley Pharmaceuticals web site at: http://www.bradpharm.com/
Bradley Pharmaceuticals common stock is listed on the NYSE under the symbol BDY.
