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 March 31, 2004
Commission file number 1-9741
INAMED CORPORATION
(Exact name of registrant
as specified in its charter)
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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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(Address of principal executive offices) |
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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 May 5, 2004, there were 35,471,032 shares of the Registrant’s common stock outstanding.
INAMED CORPORATION AND SUBSIDIARIES
Quarterly Report on Form 10-Q
For the Quarter Ended March 31, 2004
TABLE OF CONTENTS
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Consolidated Statements of Stockholders’ Equity and Comprehensive Income |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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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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March 31, |
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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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$ |
84.3 |
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$ |
80.5 |
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Short-term investments |
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4.2 |
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— |
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Trade accounts receivable, net of allowances of $17.3 and $19.7 in 2004 and 2003, respectively |
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63.9 |
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63.7 |
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Inventories, net |
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50.2 |
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47.0 |
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Prepaid expenses and other current assets |
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11.1 |
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10.6 |
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Deferred income taxes |
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8.8 |
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10.3 |
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Total current assets |
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222.5 |
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212.1 |
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Property and equipment, net |
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52.9 |
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51.2 |
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Goodwill |
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151.2 |
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151.2 |
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Other intangible assets, net |
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52.6 |
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44.5 |
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Deferred income taxes |
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30.1 |
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32.9 |
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Other assets |
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6.5 |
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9.1 |
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Total assets |
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$ |
515.8 |
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$ |
501.0 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Current portion of long-term debt |
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$ |
10.0 |
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$ |
10.0 |
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Accounts payable |
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26.3 |
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23.5 |
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Income taxes payable |
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10.5 |
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10.3 |
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Accrued liabilities and other |
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34.0 |
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36.4 |
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Total current liabilities |
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80.8 |
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80.2 |
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Long-term debt, net of current portion |
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20.0 |
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22.5 |
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Other long-term liabilities |
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42.1 |
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46.8 |
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Commitments and contingencies (note 12) |
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Stockholders’ equity: |
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Common stock, $0.01 par value; authorized 50.0 shares; issued and outstanding 35.5 and 35.3 shares for 2004 and 2003, respectively |
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0.4 |
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0.4 |
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Additional paid-in capital |
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227.6 |
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223.3 |
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Deferred compensation |
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(6.3 |
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(6.9 |
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Retained earnings |
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146.4 |
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128.9 |
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Accumulated other comprehensive income |
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4.8 |
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5.8 |
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Total stockholders’ equity |
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372.9 |
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351.5 |
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Total liabilities and stockholders’ equity |
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$ |
515.8 |
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$ |
501.0 |
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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
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Net sales |
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$ |
90.8 |
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$ |
75.5 |
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Cost of goods sold |
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23.3 |
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21.4 |
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Gross profit |
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67.5 |
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54.1 |
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Operating expenses: |
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Selling, general and administrative |
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39.0 |
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31.2 |
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Research and development |
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5.2 |
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5.6 |
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Amortization of intangible assets |
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1.1 |
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1.0 |
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Total operating expenses |
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45.3 |
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37.8 |
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Operating income |
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22.2 |
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16.3 |
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Other income (expense): |
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Net interest income, expense and debt costs |
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0.4 |
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(1.7 |
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Foreign currency transaction gains, net |
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0.1 |
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0.1 |
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Royalty income and other |
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1.0 |
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1.1 |
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Total other income (expense), net |
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1.5 |
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(0.5 |
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Income before income tax expense |
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23.7 |
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15.8 |
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Income tax expense |
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6.2 |
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3.8 |
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Net income |
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$ |
17.5 |
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$ |
12.0 |
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Net income per share of common stock: |
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Basic |
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$ |
0.50 |
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$ |
0.36 |
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Diluted |
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$ |
0.49 |
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$ |
0.35 |
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Weighted average shares outstanding: |
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Basic |
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35.4 |
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33.2 |
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Diluted |
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35.8 |
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33.9 |
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See accompanying notes to unaudited consolidated financial statements.
4
INAMED CORPORATION AND SUBSIDIARIES