Nabi Announces First Quarter Earnings

Apr 25, 2001, 01:00 ET from Nabi

    BOCA RATON, Fla., April 25 /PRNewswire/ -- Nabi (Nasdaq:   NABI) today
 announced its financial results for the first quarter ended March 31, 2001.
 Sales for the first quarter of 2001 totaled $60 million, compared to
 $56 million for the first quarter of 2000.  Net income for the period was
 $0.7 million, or $0.02 per share on a diluted basis, even with the first
 quarter of 2000.
     Higher pricing and increased production for non-specific antibodies drove
 the overall increase in sales.  Biopharmaceutical sales for the quarter were
 $15 million versus $16 million for the comparable quarter in 2000.  Overall
 gross margin after accounting for royalties was 23% in the first quarter of
 2001 compared to 26% in the first quarter of 2000.  This result primarily
 reflects an expected decrease in sales of high margin specialty antibodies
 Anti-D and Anti-HBs, as well as lower biopharmaceutical sales for the quarter.
     Lower research and development spending, primarily related to completion
 of the Phase 3 clinical trial for Nabi(R) StaphVAX(R) (Staphylococcus aureus
 Polysaccharide Conjugate Vaccine), contributed to net income in the first
 quarter.  Results for the Phase 3 clinical trial were announced during the
 third quarter of 2000.
     "Nabi continued its trend of profitable operations during the first
 quarter of 2001," said David J. Gury, Chairman, Chief Executive Officer and
 President of Nabi.  "In addition to maintaining profitability, we took a
 significant step to fully align our operations under Tom McLain as Chief
 Operating Officer, defined the important next steps in developing Nabi
 StaphVAX and brought forward the process of finalizing a business partner for
 this program."
     Significant business developments during the year to date period included
 the following:
 
     In February 2001, Nabi provided an update on its development plans for
 Nabi StaphVAX.  The Company said it was moving forward with plans to conduct a
 boosting trial of Nabi StaphVAX in patients with end stage renal disease.  In
 addition, Nabi is also progressing with the scale-up of the manufacturing
 process for commercial production of Nabi StaphVAX and, based on input from
 the FDA, developing the clinical plan for a second Phase 3 trial.
 
     In April 2001, Nabi announced the promotion of Thomas H. McLain to the
 newly created position of Executive Vice President and Chief Operating
 Officer.  Mark L. Smith was promoted to the position of Senior Vice President,
 Finance and Chief Financial Officer.
 
     In April 2001, Nabi announced it had signed agreements with Acambis for
 production of Clostridium difficile Specialty Plasma in certain Nabi plasma
 centers and the manufacture of C. difficile Intravenous Immune Globulin at the
 company's new biopharmaceutical manufacturing facility in Boca Raton, Florida.
 
     General Information
     Nabi, a vertically integrated biopharmaceutical company, has a broad
 product portfolio and significant R&D capabilities focused on the development
 and commercialization of drugs that prevent and treat infectious and
 autoimmune diseases.  Nabi currently has several clinical trials underway in
 these areas as well as four marketed biopharmaceutical products.  Nabi has its
 corporate headquarters in Boca Raton, Florida, with principal R&D offices and
 laboratories in Rockville, Maryland.  Additional information about Nabi may be
 obtained on the Company's website at www.nabi.com.
     As previously announced, interested parties can access a live webcast of
 management's discussion of first quarter 2001 results through a link at Nabi's
 website commencing today at www.nabi.com.  The webcast will begin today at
 4:30 p.m. Eastern Time and a replay of the webcast will remain available
 through Friday, May 4th at 5:00 p.m. Eastern Time.  The webcast can also be
 accessed at www.streetfusion.com.  If you have any questions concerning the
 webcast, please contact Nabi's Investor Relations Department at 561-989-5815.
     This press release contains forward-looking statements that reflect the
 Company's current expectations regarding future events.  While these
 statements reflect the Company's best current judgment, they are subject to
 risks and uncertainties.  Actual results may differ significantly from the
 results projected herein due to a number of factors, including, but not
 limited to, the need for additional financing and access to capital; the costs
 of research and development; dependence upon third parties to manufacture
 product; the impact on the Company of current industry supply and demand
 factors and the supply of and demand for the Company's individual products;
 margin pressure on the Company's non-specific antibody product line; future
 sales growth prospects for its biopharmaceutical products; the likelihood that
 any product in the research pipeline can receive regulatory approval in the
 U.S. or abroad or be successfully developed, manufactured and marketed; and
 failure to receive licensure for the Boca Raton manufacturing facility.  These
 factors are more fully discussed in the Company's most recent Form 10-K filed
 with the Securities and Exchange Commission.
 
                                      Nabi
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
 
                                                          (UNAUDITED)
                                                    For the Three Months Ended
                                                    March 31,       April 1,
                                                       2001            2000
 
     Sales                                            $60,178        $55,840
 
     Costs and expenses:
      Costs of products sold                           44,177         38,462
      Royalty expense                                   2,364          2,921
      Selling, general and administrative expense       8,929          8,435
      Research and development expense                  2,978          3,995
      Other operating expense, principally
       amortization and freight                           456            500
 
     Operating income                                   1,274          1,527
 
     Other income and expense, net                      (553)          (828)
 
     Income before provision for income taxes             721            699
 
     Provision for income taxes                          (36)           (22)
 
     Net income                                          $685           $677
 
 
     Basic earnings per share                           $0.02          $0.02
 
 
     Diluted earnings per share                         $0.02          $0.02
 
 
     Basic weighted average shares outstanding         37,840         35,386
 
     Diluted weighted average shares outstanding       38,687         36,828
 
     SUPPLEMENTAL INFORMATION:
      Sales by Operating Segment
       Biopharmaceutical Products                     $15,114        $16,221
       Antibody products:
        Non-specific antibodies                        30,438         25,410
        Specialty antibodies                           14,626         14,209
                                                       45,064         39,619
     Total                                            $60,178        $55,840
 
 
                                      Nabi
                            CONDENSED BALANCE SHEETS
                 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
 
 
                                                 (UNAUDITED)
                                                   March 31,      December 30,
                                                      2001            2000
 
 
 
     Cash                                              $2,270         $1,554
     Trade accounts receivable, net                    30,262         38,315
     Inventories, net                                  29,898         32,602
     Prepaid expenses and other current assets          5,410          5,405
     Property and equipment, net                      122,105        120,188
     Other assets, net                                 25,920         26,423
 
     Total assets                                    $215,865       $224,487
 
 
     Trade accounts payable and accrued expenses      $29,098        $37,282
     Notes payable                                    108,369        109,535
     Other liabilities                                    263            276
     Stockholders' equity                              78,135         77,394
 
     Total liabilities and stockholders' equity      $215,865       $224,487
 
     Capital expenditures for the three months ended March 31, 2001 was
 $4.1 million.
     Depreciation and amortization expenses for the three months ended
 March 31, 2001 was $2.7 million.
     The 2000 condensed balance sheet has been derived from the audited balance
 sheet for the year ended December 30, 2000.
 
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SOURCE Nabi
    BOCA RATON, Fla., April 25 /PRNewswire/ -- Nabi (Nasdaq:   NABI) today
 announced its financial results for the first quarter ended March 31, 2001.
 Sales for the first quarter of 2001 totaled $60 million, compared to
 $56 million for the first quarter of 2000.  Net income for the period was
 $0.7 million, or $0.02 per share on a diluted basis, even with the first
 quarter of 2000.
     Higher pricing and increased production for non-specific antibodies drove
 the overall increase in sales.  Biopharmaceutical sales for the quarter were
 $15 million versus $16 million for the comparable quarter in 2000.  Overall
 gross margin after accounting for royalties was 23% in the first quarter of
 2001 compared to 26% in the first quarter of 2000.  This result primarily
 reflects an expected decrease in sales of high margin specialty antibodies
 Anti-D and Anti-HBs, as well as lower biopharmaceutical sales for the quarter.
     Lower research and development spending, primarily related to completion
 of the Phase 3 clinical trial for Nabi(R) StaphVAX(R) (Staphylococcus aureus
 Polysaccharide Conjugate Vaccine), contributed to net income in the first
 quarter.  Results for the Phase 3 clinical trial were announced during the
 third quarter of 2000.
     "Nabi continued its trend of profitable operations during the first
 quarter of 2001," said David J. Gury, Chairman, Chief Executive Officer and
 President of Nabi.  "In addition to maintaining profitability, we took a
 significant step to fully align our operations under Tom McLain as Chief
 Operating Officer, defined the important next steps in developing Nabi
 StaphVAX and brought forward the process of finalizing a business partner for
 this program."
     Significant business developments during the year to date period included
 the following:
 
     In February 2001, Nabi provided an update on its development plans for
 Nabi StaphVAX.  The Company said it was moving forward with plans to conduct a
 boosting trial of Nabi StaphVAX in patients with end stage renal disease.  In
 addition, Nabi is also progressing with the scale-up of the manufacturing
 process for commercial production of Nabi StaphVAX and, based on input from
 the FDA, developing the clinical plan for a second Phase 3 trial.
 
     In April 2001, Nabi announced the promotion of Thomas H. McLain to the
 newly created position of Executive Vice President and Chief Operating
 Officer.  Mark L. Smith was promoted to the position of Senior Vice President,
 Finance and Chief Financial Officer.
 
     In April 2001, Nabi announced it had signed agreements with Acambis for
 production of Clostridium difficile Specialty Plasma in certain Nabi plasma
 centers and the manufacture of C. difficile Intravenous Immune Globulin at the
 company's new biopharmaceutical manufacturing facility in Boca Raton, Florida.
 
     General Information
     Nabi, a vertically integrated biopharmaceutical company, has a broad
 product portfolio and significant R&D capabilities focused on the development
 and commercialization of drugs that prevent and treat infectious and
 autoimmune diseases.  Nabi currently has several clinical trials underway in
 these areas as well as four marketed biopharmaceutical products.  Nabi has its
 corporate headquarters in Boca Raton, Florida, with principal R&D offices and
 laboratories in Rockville, Maryland.  Additional information about Nabi may be
 obtained on the Company's website at www.nabi.com.
     As previously announced, interested parties can access a live webcast of
 management's discussion of first quarter 2001 results through a link at Nabi's
 website commencing today at www.nabi.com.  The webcast will begin today at
 4:30 p.m. Eastern Time and a replay of the webcast will remain available
 through Friday, May 4th at 5:00 p.m. Eastern Time.  The webcast can also be
 accessed at www.streetfusion.com.  If you have any questions concerning the
 webcast, please contact Nabi's Investor Relations Department at 561-989-5815.
     This press release contains forward-looking statements that reflect the
 Company's current expectations regarding future events.  While these
 statements reflect the Company's best current judgment, they are subject to
 risks and uncertainties.  Actual results may differ significantly from the
 results projected herein due to a number of factors, including, but not
 limited to, the need for additional financing and access to capital; the costs
 of research and development; dependence upon third parties to manufacture
 product; the impact on the Company of current industry supply and demand
 factors and the supply of and demand for the Company's individual products;
 margin pressure on the Company's non-specific antibody product line; future
 sales growth prospects for its biopharmaceutical products; the likelihood that
 any product in the research pipeline can receive regulatory approval in the
 U.S. or abroad or be successfully developed, manufactured and marketed; and
 failure to receive licensure for the Boca Raton manufacturing facility.  These
 factors are more fully discussed in the Company's most recent Form 10-K filed
 with the Securities and Exchange Commission.
 
                                      Nabi
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
 
                                                          (UNAUDITED)
                                                    For the Three Months Ended
                                                    March 31,       April 1,
                                                       2001            2000
 
     Sales                                            $60,178        $55,840
 
     Costs and expenses:
      Costs of products sold                           44,177         38,462
      Royalty expense                                   2,364          2,921
      Selling, general and administrative expense       8,929          8,435
      Research and development expense                  2,978          3,995
      Other operating expense, principally
       amortization and freight                           456            500
 
     Operating income                                   1,274          1,527
 
     Other income and expense, net                      (553)          (828)
 
     Income before provision for income taxes             721            699
 
     Provision for income taxes                          (36)           (22)
 
     Net income                                          $685           $677
 
 
     Basic earnings per share                           $0.02          $0.02
 
 
     Diluted earnings per share                         $0.02          $0.02
 
 
     Basic weighted average shares outstanding         37,840         35,386
 
     Diluted weighted average shares outstanding       38,687         36,828
 
     SUPPLEMENTAL INFORMATION:
      Sales by Operating Segment
       Biopharmaceutical Products                     $15,114        $16,221
       Antibody products:
        Non-specific antibodies                        30,438         25,410
        Specialty antibodies                           14,626         14,209
                                                       45,064         39,619
     Total                                            $60,178        $55,840
 
 
                                      Nabi
                            CONDENSED BALANCE SHEETS
                 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
 
 
                                                 (UNAUDITED)
                                                   March 31,      December 30,
                                                      2001            2000
 
 
 
     Cash                                              $2,270         $1,554
     Trade accounts receivable, net                    30,262         38,315
     Inventories, net                                  29,898         32,602
     Prepaid expenses and other current assets          5,410          5,405
     Property and equipment, net                      122,105        120,188
     Other assets, net                                 25,920         26,423
 
     Total assets                                    $215,865       $224,487
 
 
     Trade accounts payable and accrued expenses      $29,098        $37,282
     Notes payable                                    108,369        109,535
     Other liabilities                                    263            276
     Stockholders' equity                              78,135         77,394
 
     Total liabilities and stockholders' equity      $215,865       $224,487
 
     Capital expenditures for the three months ended March 31, 2001 was
 $4.1 million.
     Depreciation and amortization expenses for the three months ended
 March 31, 2001 was $2.7 million.
     The 2000 condensed balance sheet has been derived from the audited balance
 sheet for the year ended December 30, 2000.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X80731275
 
 SOURCE  Nabi