UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
|
ý |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
|
|
|
For the Quarterly Period Ended March 31, 2003 |
|
|
|
|
|
o |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
|
|
|
For the transition period from to |
|
Commission file number: 0-25323
ALBANY MOLECULAR RESEARCH, INC.
(Exact name of registrant as specified in its charter)
|
DELAWARE |
|
14-1742717 |
|
(State
or other jurisdiction of |
|
(I.R.S.
Employer |
|
|
|
|
|
21 Corporate Circle |
||
|
PO Box 15098 |
||
|
Albany, New York 12212-5098 |
||
|
(Address of principal executive offices) |
||
|
|
|
|
|
(518) 464-0279 |
||
|
(Registrant’s telephone number, including area code) |
||
|
|
|
|
|
N/A |
||
|
(Former name, former address and former fiscal year, if changed since last report) |
||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2).
Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
|
Class |
|
Outstanding at April 29, 2003 |
Common Stock, $.01 par value |
|
31,895,970 |
ALBANY MOLECULAR RESEARCH, INC.
INDEX
2
PART I — FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
Albany Molecular Research, Inc.
Condensed Consolidated Statements of Income
(unaudited)
(Dollars in thousands, except for per share data)
|
|
|
Three Months Ended |
|
||||
|
|
|
March 31, 2003 |
|
March 31, 2002 |
|
||
|
|
|
|
|
|
|
||
|
Contract revenue |
|
$ |
33,839 |
|
$ |
16,680 |
|
|
Recurring royalties |
|
11,100 |
|
10,724 |
|
||
|
Total revenue |
|
44,939 |
|
27,404 |
|
||
|
|
|
|
|
|
|
||
|
Cost of contract revenue |
|
26,012 |
|
9,574 |
|
||
|
Technology incentive award |
|
1,110 |
|
1,073 |
|
||
|
Research and development |
|
5,565 |
|
1,619 |
|
||
|
Selling, general and administrative |
|
6,129 |
|
3,057 |
|
||
|
Total costs and expenses |
|
38,816 |
|
15,323 |
|
||
|
|
|
|
|
|
|
||
|
Income from operations |
|
6,123 |
|
12,081 |
|
||
|
|
|
|
|
|
|
||
|
Equity in (loss) income of unconsolidated affiliates |
|
(67 |
) |
490 |
|
||
|
Minority interest in consolidated subsidiary |
|
133 |
|
— |
|
||
|
Other income, net |
|
217 |
|
1,196 |
|
||
|
|
|
|
|
|
|
||
|
Income before income tax expense |
|
6,406 |
|
13,767 |
|
||
|
|
|
|
|
|
|
||
|
Income tax expense |
|
2,274 |
|
4,999 |
|
||
|
|
|
|
|
|
|
||
|
Net income |
|
$ |
4,132 |
|
$ |
8,768 |
|
|
|
|
|
|
|
|
||
|
Basic earnings per share |
|
$ |
0.13 |
|
$ |
0.26 |
|
|
|
|
|
|
|
|
||
|
Diluted earnings per share |
|
$ |
0.13 |
|
$ |
0.26 |
|
See notes to unaudited condensed consolidated financial statements.
3
Albany Molecular Research, Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands)
|
|
|
March 31, |
|
December
31, |
|
||
|
|
|
(unaudited) |
|
|
|
||
|
Assets |
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
41,265 |
|
$ |
34,838 |
|
|
Investment securities, available-for-sale |
|
82,425 |
|
94,699 |
|
||
|
Accounts receivable, net |
|
23,469 |
|
13,572 |
|
||
|
Royalty income receivable |
|
11,095 |
|
13,251 |
|
||
|
Inventory |
|
34,137 |
|
13,402 |
|
||
|
Unbilled services |
|
485 |
|
555 |
|
||
|
Prepaid expenses and other current assets |
|
5,842 |
|
2,776 |
|
||
|
Total current assets |
|
198,718 |
|
173,093 |
|
||
|
|
|
|
|
|
|
||
|
Property and equipment, net |
|
130,760 |
|
72,518 |
|
||
|
|
|
|
|
|
|
||
|
Other assets: |
|
|
|
|
|
||
|
Goodwill |
|
42,936 |
|
17,181 |
|
||
|
Intangible assets and patents, net |
|
4,793 |
|
4,804 |
|
||
|
Equity investments in unconsolidated affiliates |
|
286 |
|
19,215 |
|
||
|
Convertible subordinated debenture from unconsolidated affiliate |
|
— |
|
15,000 |
|
||
|
Other assets |
|
1,291 |
|
925 |
|
||
|
Total other assets |
|
49,306 |
|
57,125 |
|
||
|
|
|
|
|
|
|
||
|
Total assets |
|
$ |
378,784 |
|
$ |
302,736 |
|
|
|
|
|
|
|
|
||
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Accounts payable and accrued expenses |
|
$ |
8,956 |
|
$ |
3,509 |
|
|
Unearned income |
|
784 |
|
1,116 |
|
||
|
Accrued compensation |
|
2,838 |
|
3,878 |
|
||
|
Current installments of capital leases |
|
372 |
|
507 |
|
||
|
Current installments of long-term debt and capital leases |
|
4,888 |
|
198 |
|
||
|
Other current liabilities |
|
148 |
|
752 |
|
||
|
Total current liabilities |
|
17,986 |
|
||||