UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF
THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2003
Commission file number 1-9741
INAMED CORPORATION
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Delaware |
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59-0920629 |
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(State of Incorporation) |
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(I.R.S. Employer Identification No.) |
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5540 Ekwill Street |
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Telephone Number: (805) 683-6761 |
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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 Rule 12b-2 of the Exchange Act). Yes ý No o
On November 10, 2003, there were 23,361,097 shares of the Registrant’s common stock outstanding.
INAMED CORPORATION AND SUBSIDIARIES
Quarterly Report on Form 10-Q
For the Quarter Ended September 30, 2003
TABLE OF CONTENTS
This report contains trademarks and trade names that are the property of Inamed Corporation and its subsidiaries, and of other companies, as indicated.
In this document, the words ‘‘we,’’ ‘‘our,’’ ‘‘ours,’’ ‘‘us,’’ “Company” and ‘‘Inamed’’ refer only to Inamed Corporation and its subsidiaries, not any other person or entity.
2
PART I – FINANCIAL INFORMATION
ITEM 1. Financial Statements
INAMED CORPORATION AND SUBSIDIARIES
(Unaudited)
(millions, except par value)
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September 30, |
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December 31, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
92.9 |
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$ |
39.3 |
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Trade accounts receivable, net of allowances of $16.9 and $11.0 in 2003 and 2002, respectively |
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61.7 |
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45.4 |
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Inventories, net |
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45.1 |
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43.0 |
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Prepaid expenses and other current assets |
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11.1 |
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13.5 |
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Deferred income taxes |
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5.5 |
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14.7 |
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Total current assets |
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216.3 |
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155.9 |
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Property and equipment, net |
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48.8 |
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48.4 |
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Goodwill |
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150.7 |
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150.0 |
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Other intangible assets, net |
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45.0 |
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43.7 |
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Deferred income taxes |
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41.1 |
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23.5 |
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Other assets |
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11.4 |
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17.9 |
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Total assets |
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$ |
513.3 |
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$ |
439.4 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Current portion of long-term debt and capital leases |
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$ |
10.0 |
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$ |
4.9 |
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Accounts payable |
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24.0 |
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22.1 |
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Income taxes payable |
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15.5 |
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11.7 |
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Accrued liabilities and other |
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40.1 |
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35.8 |
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Total current liabilities |
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89.6 |
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74.5 |
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Long-term debt and capital leases, net of current portion |
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52.5 |
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78.8 |
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Other long-term liabilities |
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49.3 |
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53.4 |
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Commitments and contingencies (Note 12) |
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Stockholders’ equity: |
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Common stock, $0.01 par value; authorized, 50.0 shares; issued and outstanding, 23.3 and 21.9 shares; shares for 2003 and 2002, respectively |
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0.2 |
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0.2 |
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Additional paid-in capital |
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206.8 |
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164.8 |
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Retained earnings |
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113.4 |
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76.1 |
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Accumulated other comprehensive income (loss) |
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1.5 |
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(8.4 |
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Total stockholders’ equity |
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321.9 |
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232.7 |
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Total liabilities and stockholders’ equity |
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$ |
513.3 |
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$ |
439.4 |
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See accompanying notes to unaudited consolidated financial statements.
3
INAMED CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(millions, except per share data)
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Three Months |
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Three Months |
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Net sales |
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$ |
80.1 |
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$ |
66.9 |
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Cost of goods sold |
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22.8 |
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18.9 |
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Gross profit |
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57.3 |
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48.0 |
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Operating expenses: |
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Selling, general, and administrative |
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33.7 |
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32.7 |
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Research and development |
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5.4 |
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2.4 |
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Amortization of intangible assets and non-cash compensation |
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1.1 |
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1.3 |
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Total operating expenses |
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40.2 |
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36.4 |
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Operating income |
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