COLUMBIA, Md., Dec. 8, 2010 /PRNewswire-FirstCall/ -- Martek
Biosciences Corporation (Nasdaq: MATK) today announced its
financial results for the fourth quarter and fiscal year ended
October 31, 2010. Total revenues for
the fourth quarter were $119.1
million, up 36% from the fourth quarter of fiscal 2009.
Fourth quarter non-GAAP earnings per share (EPS) were $0.41, a 24% increase from $0.33 per diluted share in last year's fourth
quarter. For the full year 2010, revenues increased 30% to
$450.0 million, and full year
non-GAAP EPS were $1.55, an increase
of 27% versus 2009. Non-GAAP EPS for the fourth quarter and
full year 2010 exclude, for the applicable periods, certain
acquisition and restructuring charges (see Table II "Reconciliation
of GAAP to Non-GAAP Net Income Measure" below). On a GAAP
basis, earnings (loss) per share were ($0.18) and $0.83
for the fourth quarter and full year 2010, respectively.
Revenue and earnings for the fourth quarter include the
results of Amerifit Brands ("Amerifit" or "branded consumer health
products"), and revenue and earnings for the full year fiscal 2010
include the results of Amerifit since the February 12, 2010 date of acquisition by
Martek.
Commenting on the quarter and year, Chief Executive Officer
Steve Dubin said, "Martek's fourth
quarter came in at the high end of our expectations and concluded a
year of many accomplishments for Martek. Revenue grew across
all business segments in 2010, our core infant formula ingredients
business was strengthened through the extension of the terms of two
of our key infant formula sole source supply agreements, and
significant improvements on the operational side of the business
were implemented which helped drive growth in both margins and
income. In addition, we expanded our business platform
through the acquisition of Amerifit, and made significant progress
on our product and technology pipeline, both of which provide
Martek with exciting opportunities for future growth."
Revenue Summary
Product sales in the fourth quarter of fiscal 2010 grew to
$117.6 million, up 44% as compared to
the fourth quarter of fiscal 2009. For the full year 2010,
product sales increased 32% from full year 2009, to $434.8 million. Fourth quarter and full year 2010
growth was attributable to our sales of branded consumer health
products resulting from our acquisition of Amerifit in 2010, as
well as increased sales of our nutritional ingredients in both the
infant formula and non-infant formula markets. Fourth quarter
infant formula sales growth resulted primarily from increased sales
of ARA and DHA for use in international markets and, to a lesser
extent, from certain non-recurring stocking orders in the United States.
A breakdown of product sales by market for the fourth quarter
and fiscal year periods (in thousands) follows:
|
|
|
|
|
Three months
ended
October
31,
|
|
Twelve
months ended
October
31,
|
|
|
2010
|
|
2009
|
%
incr
(decr)
|
2010
|
|
2009
|
%
incr
(decr)
|
|
|
|
|
|
|
|
|
|
|
|
Nutritional
ingredients:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infant
formula
|
$
|
80,347
|
|
$
|
70,370
|
14%
|
$
|
317,375
|
|
$
|
285,664
|
11%
|
|
Food and
beverage
|
|
3,785
|
|
|
2,414
|
57%
|
|
17,050
|
|
|
10,692
|
59%
|
|
Pregnancy
and nursing, nutritional
supplements and animal nutrition
|
|
9,632
|
|
|
8,219
|
17%
|
|
34,848
|
|
|
28,615
|
22%
|
|
Shipping
charges
|
|
765
|
|
|
557
|
37%
|
|
2,648
|
|
|
2,055
|
29%
|
|
Total
nutritional ingredients
|
|
94,529
|
|
|
81,560
|
16%
|
|
371,921
|
|
|
327,026
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branded consumer health
products
|
|
23,075
|
|
|
—
|
n/a
|
|
61,385
|
|
|
—
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-nutritional
products
|
|
9
|
|
|
357
|
(97%)
|
|
1,446
|
|
|
2,109
|
(31%)
|
|
Total product
sales
|
$
|
117,613
|
|
$
|
81,917
|
44%
|
$
|
434,752
|
|
$
|
329,135
|
32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract manufacturing and services revenue totaled $1.5 million and $15.3
million for the fourth quarter and full year 2010,
respectively, of which $1.0 million
and $4.1 million, respectively, was
recognized in connection with the Company's ongoing joint
development agreement with a subsidiary of BP p.l.c. ("BP") for
production of microbial oils for use as biofuels. Consistent
with previous disclosures, as of October 31,
2010, we have effectively ceased all contract manufacturing
activities.
Gross Margin and Operating Expenses
Overall gross margin for the fourth quarter of fiscal 2010 was
52%, an increase over the 44% gross margin realized in the fourth
quarter of fiscal 2009. For the full year 2010, gross margin
was 48%, an increase from the 43% gross margin realized for the
full year 2009. Gross margin improvements were largely due to
both ARA and DHA cost reductions and the positive impact of higher
gross margins on sales of branded consumer health products.
Research and development (R&D) expenses for the fourth
quarter of fiscal 2010 were $9.2
million, or 8% of sales, consistent with previously stated
guidance. R&D expenses for the full year increased to
$33.6 million, up from $27.4 million in fiscal 2009. R&D
continues to focus on broadening the market applications for
life'sDHA through new product and process
innovations, as well as leveraging the Company's microbial
technology platform to develop new product offerings for its core
nutritional markets and new high-value opportunities beyond
nutrition.
Selling, general and administrative (SG&A) expenses for the
fourth quarter of fiscal 2010 were $21.6
million, or 18% of sales, consistent with prior guidance.
Full year SG&A expenses increased to $71.2 million, or 16% of sales.
Year-to-year increases in fourth quarter and full year 2010
SG&A expenses are attributable to incremental expenses
associated with Amerifit, and to a lesser extent, increases in the
variable component of Company-wide compensation resulting from
Martek's improved overall financial performance.
Advertising and promotion (A&P) spending totaled
$4.2 million, or 4% of revenue, and
$14.3 million, or 3% of revenue, for
the fourth quarter and full year 2010, respectively. The
increase in A&P as compared to 2009 is primarily attributable
to increased spending in support of branded consumer health product
sales as a result of the acquisition of Amerifit.
Liquidity and Capital Resources
The Company generated cash flow from operations of $46.3 million and $146.0
million, respectively, for the fourth quarter and full year
2010. Martek ended fiscal 2010 with a cash balance of
$63.7 million, essentially no debt,
and its entire $100 million credit
line available since paying off the $86
million of acquisition-related debt in the third quarter of
2010.
Winchester Plant Restructuring and Sale
In November 2010, we completed the
previously announced sale of a significant portion of the assets at
our Winchester, KY manufacturing
facility in an effort to streamline operations, improve capacity
utilization, and reduce manufacturing costs and operating expenses.
As part of the restructuring, Martek also transferred certain
manufacturing and distribution processes previously performed at
our Winchester, KY site to our
Kingstree, SC site. As a result of
the restructuring and sale, consistent with previous disclosures,
the Company recorded total restructuring charges of $30.7 million in the fourth quarter of fiscal
2010, comprised of a non-cash asset impairment charge of
$29.2 million and cash charges for
employee separation and other costs of $1.5
million. As previously disclosed, restructuring related cash
charges for employee separation and other costs of approximately
$600,000 were also recorded in the
third quarter of fiscal 2010.
Significant Recent Events
- Extended Global Sole-Source Supply Agreement – In
December 2010, Martek extended its
global sole-source DHA and ARA supply agreement with a major infant
formula customer. With the signing of this agreement,
customers representing a total of 52% and 44% of Martek's current
infant formula sales are now under contract through at least 2014
and 2015, respectively.
- New Scientific Data/Recommendations Published on DHA and
ARA – In The Journal of Pediatrics (December 2010) Dr. C.
Jensen and co-investigators reported 5-year follow-up data
in children who had been breastfed as infants. In the
original study, nursing mothers received either 200 mg DHA per day
or a placebo for 4 months as part of the randomized double blind
study. Milk lipid and infant plasma phospholipid DHA contents
were 75% and 35% higher, respectively, at 4 months postpartum in
the supplemented group. The children of supplemented mothers were
previously shown to exhibit better psychomotor development at 30
months of age as compared to their unsupplemented
counterparts. In the current report, the 5-year old children
whose mothers received DHA performed better than the unsupplemented
group on a test of sustained attention. The importance of Dr.
C. Jensen's findings is highlighted
by Dr. M. Clandinin and Dr.
P. Larsen in an accompanying The
Journal of Pediatrics editorial. The editorial
entitled "Docosahexaenoic Acid Is Essential to Development of
Critical Functions in Infants" reviews and emphasizes the
importance of early and continued supplementation of DHA for
infants and children under normal as well as special medical
circumstances. Martek's life'sDHA was used in the
study. The study was also supported by grants from Martek and
the U.S. Department of Agriculture/National Research Initiative;
however, Martek did not have input into the conduct or reporting of
the study or the editorial.
Financial Guidance
For the first quarter of fiscal 2011, Martek is providing the
following revenue guidance:
|
|
|
|
|
Three months
ended
January 31,
2011
|
|
$ in millions
|
Low
|
High
|
|
|
|
|
|
Total Revenue
|
$106.0
|
-
|
$110.0
|
|
Nutritional
ingredients:
|
|
|
|
|
Infant
formula
|
$68.5
|
-
|
$72.5
|
|
Non-Infant
formula
|
$12.5
|
-
|
$14.0
|
|
Branded consumer health
products
|
$20.0
|
-
|
$21.5
|
|
Collaborations and
contract manufacturing
|
Near $1.8*
|
|
* Includes approximately $0.8
million from the sale of final remaining contract manufacturing
inventory.
|
|
|
|
|
|
|
|
Consolidated gross margin in the first quarter of fiscal 2011 is
expected to be between 52.5% and 53.5%. First quarter 2011
diluted EPS is expected to be between $0.38
and $0.40.
During fiscal 2010, a key strategic objective for the Company
was to begin the process of securing Martek's leadership position
in supplying DHA and ARA to the infant formula industry for several
more years beyond the then current supply agreements whose
sole-source provisions expired at the end of 2011. As noted
above, we have been successful in achieving this objective through
extensions of our sole-source supply arrangements with two of our
larger infant formula customers in fiscal 2010, and we have also
extended the sole-source supply agreement with a third large
customer in December 2010 and
anticipate making further progress in fiscal 2011. As previously
disclosed, these extensions include graduated price reductions to
our customers over the term of the extensions. Martek's strategy is
to offset a significant portion of these price reductions that
result from its infant formula contract extensions by implementing
manufacturing cost savings and product innovation initiatives, and
by growing its non-infant formula businesses.
For the full year fiscal 2011, we project consolidated revenue
growth resulting from the impact of a full year of Amerifit
ownership and growth of our branded ingredients business, partially
offset by the effects of the price reductions included in the
current and anticipated future infant formula supply agreement
extensions. We also project net income growth over fiscal
2010, primarily driven by expected gross margin expansion of at
least 400 basis points. This projected gross margin improvement
results from the execution of the Company's strategy to
significantly offset infant formula price reductions with lower ARA
costs, product cost efficiencies (including those obtained from the
Winchester plant restructuring and
sale), and the discontinuation of the company's low margin contract
manufacturing business.
Investor Conference Call and Webcast
Martek will host a conference call for investors today at
4:45 p.m. Eastern Time to discuss its
fourth quarter and fiscal year 2010 results. All interested
parties may listen to the call live via webcast by visiting
Martek's web site at http://investors.martek.com. To
participate in the conference call, please dial in at least five
minutes prior to start time:
|
|
|
|
Domestic:
|
800-768-3591
|
|
International:
|
212-231-2900
|
|
Passcode:
|
214 899 12
|
|
|
|
|
|
|
|
An archived webcast of the conference call will be available on
the Martek's website for thirty days. In addition, a recorded
playback of the call will be available for one week and can be
accessed by calling 800-633-8284 or 402-977-9140 and entering
passcode 214 899 12.
Cautionary Note Regarding Forward-Looking Statements
Sections of this release contain forward-looking statements
concerning, among other things Martek's expectations regarding: (1)
future revenue growth in and customer demand from the infant
formula, pregnancy and nursing, nutritional supplements, animal
feeds and food and beverage markets as well as markets for Amerifit
products; (2) revenue, gross margin, operating expenses and income
for the first quarter of and full year fiscal 2011 for both Martek
and Amerifit; (3) launches by customers of products containing
Martek's life'sDHA™; and (4) future capabilities of and
benefits from the Amerifit acquisition. Furthermore, Martek's
operating results are subject to quarter-to-quarter fluctuations,
some of which may be significant, and are also subject to future
changes in the Company's preliminary purchase price allocation for
its Amerifit acquisition. The forward-looking statements
noted above are based upon numerous assumptions which Martek cannot
control and involve risks and uncertainties that could cause actual
results to differ. These statements should be understood in light
of the risk factors and cautionary statements set forth herein and
in the Company's filings with the Securities and Exchange
Commission, including, but not limited to, Part I, Item 1A of the
Company's Form 10-K for the fiscal year ended October 31, 2009 and other filed reports on Form
10-K, Form 10-Q and Form 8-K.
About Martek
Martek Biosciences Corporation (Nasdaq: MATK) is a leader in the
innovation, development, production and sale of high-value products
from microbial sources that promote health and wellness through
nutrition. The Company's technology platform consists of its core
expertise, broad experience and proprietary technology in areas
such as microbial biology, algal genomics, fermentation and
downstream processing. This technology platform has resulted in
Martek's development of a number of products, including the
company's flagship product, life'sDHA™, a sustainable and
vegetarian source of algal DHA (docosahexaenoic acid) important for
brain, heart and eye health throughout life for use in infant
formula, pregnancy and nursing products, foods and beverages,
dietary supplements and animal feeds. The Company also produces
life'sARA™ (arachidonic acid), an omega-6 fatty acid, for
use in infant formula and growing-up milks. Martek's subsidiary,
Amerifit Brands, develops, markets and distributes branded consumer
health and wellness products and holds leading brand positions in
all of its key product categories. Amerifit products are sold in
most major mass, club, drug, grocery and specialty stores and
include: Culturelle®, a leading probiotic supplement; AZO, the
leading OTC brand addressing symptom relief and detection of
urinary tract infections; and Estroven®, the leading all-natural
nutritional supplement brand addressing the symptoms of menopause.
Martek currently has a number of nutritional health and wellness
products under development that it plans to commercialize and
distribute through Amerifit's distribution channels.
Martek's technology platform has also made it a sought-after
partner on a range of groundbreaking projects in process, including
the development of microbially-derived biofuels and the development
of DHA-containing oilseeds. For more information on Martek
Biosciences, visit http://www.martek.com/. For a complete
list of life'sDHA™ and life'sARA™ products, visit
http://www.lifesdha.com/. For more information about
Amerifit Brands, visit http://www.amerifit.com.
|
|
MARTEK
BIOSCIENCES CORPORATION
Summary
Consolidated Financial Information
(Unaudited -
$ in thousands, except per share data)
Unaudited Condensed Consolidated
Statements of Income Data
|
|
|
Three months
ended
October 31,
|
|
Year
ended
October 31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Product sales
|
$
|
117,613
|
|
$
|
81,917
|
|
$
|
434,752
|
|
$
|
329,135
|
|
|
Contract manufacturing and
services
|
|
1,523
|
|
|
5,672
|
|
|
15,271
|
|
|
16,062
|
|
|
Total revenues
|
|
119,136
|
|
|
87,589
|
|
|
450,023
|
|
|
345,197
|
|
Cost of revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sales
|
|
56,052
|
|
|
45,048
|
|
|
220,362
|
|
|
182,385
|
|
|
Cost of contract manufacturing
and services
|
|
931
|
|
|
4,151
|
|
|
12,908
|
|
|
14,252
|
|
|
Total cost of
revenues
|
|
56,983
|
|
|
49,199
|
|
|
233,270
|
|
|
196,637
|
|
|
|
Gross margin
|
|
62,153
|
|
|
38,390
|
|
|
216,753
|
|
|
148,560
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
9,171
|
|
|
6,938
|
|
|
33,557
|
|
|
27,448
|
|
|
Selling, general and
administrative
|
|
21,557
|
|
|
12,025
|
|
|
71,155
|
|
|
48,083
|
|
|
Advertising and
promotion
|
|
4,228
|
|
|
591
|
|
|
14,300
|
|
|
1,944
|
|
|
Amortization of intangible
assets
|
|
3,483
|
|
|
1,479
|
|
|
10,505
|
|
|
6,389
|
|
|
Acquisition costs
|
|
111
|
|
|
—
|
|
|
3,583
|
|
|
—
|
|
|
Restructuring charge
|
|
30,741
|
|
|
—
|
|
|
31,348
|
|
|
—
|
|
|
Other operating
expenses
|
|
954
|
|
|
124
|
|
|
1,459
|
|
|
1,080
|
|
|
Total operating
expenses
|
|
70,245
|
|
|
21,157
|
|
|
165,907
|
|
|
84,944
|
|
Income (loss) from
operations
|
|
(8,092)
|
|
|
17,233
|
|
|
50,846
|
|
|
63,616
|
|
Interest (expense) income and
other, net
|
|
(263)
|
|
|
1
|
|
|
(3,555)
|
|
|
428
|
|
Income (loss) before income tax
provision
|
|
(8,355)
|
|
|
17,234
|
|
|
47,291
|
|
|
64,044
|
|
Income tax provision (benefit)
|
|
(2,209)
|
|
|
6,195
|
|
|
19,391
|
|
|
23,454
|
|
Net income (loss)
|
$
|
(6,146)
|
|
$
|
11,039
|
|
$
|
27,900
|
|
$
|
40,590
|
|
Basic earnings (loss) per
share
|
$
|
(0.18)
|
|
$
|
0.33
|
|
$
|
0.84
|
|
$
|
1.22
|
|
Diluted earnings (loss) per
share
|
$
|
(0.18)
|
|
$
|
0.33
|
|
$
|
0.83
|
|
$
|
1.22
|
|
Shares used in computing basic
earnings (loss) per share
|
|
33,490
|
|
|
33,253
|
|
|
33,404
|
|
|
33,207
|
|
Shares used in computing diluted
earnings (loss) per share
|
|
33,490
|
|
|
33,424
|
|
|
33,575
|
|
|
33,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidated
Balance Sheets Data
|
|
|
October
31,
|
|
October
31,
|
|
|
2010
|
2009
|
|
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
63,746
|
|
$
|
141,063
|
|
|
Short-term
investments
|
|
—
|
|
|
7,301
|
|
|
Accounts receivable,
net
|
|
69,569
|
|
|
44,304
|
|
|
Inventories, net
|
|
93,976
|
|
|
116,179
|
|
|
Other current assets
|
|
6,695
|
|
|
5,240
|
|
|
Property, plant and equipment,
net
|
|
221,770
|
|
|
252,279
|
|
|
Deferred tax asset
|
|
9,429
|
|
|
24,303
|
|
|
Long-term investments
|
|
4,955
|
|
|
4,495
|
|
|
Goodwill, intangibles and other
long-term assets, net
|
|
328,021
|
|
|
94,653
|
|
Total assets
|
$
|
798,161
|
|
$
|
689,817
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity:
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
$
|
52,517
|
|
$
|
31,365
|
|
|
Notes payable and other
long-term obligations
|
|
6,938
|
|
|
810
|
|
|
Deferred tax
liability
|
|
58,978
|
|
|
10,091
|
|
|
Deferred revenue
|
|
8,745
|
|
|
11,407
|
|
|
Stockholders' equity
|
|
670,983
|
|
|
636,144
|
|
Total liabilities and
stockholders' equity
|
$
|
798,161
|
|
$
|
689,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidated
Cash Flow Data
|
|
|
Year ended
October 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
Net income
|
$
|
27,900
|
|
|
$
|
40,590,
|
|
|
|
Non-cash items
|
|
92,577
|
|
|
|
58,537
|
|
|
|
Changes in operating assets and
liabilities, net
|
|
25,545
|
|
|
|
(33,305)
|
|
|
|
Net cash provided by operating
activities
|
|
146,022
|
|
|
|
65,822
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
Cash paid for acquisition of
Amerifit, net of cash acquired
|
|
(200,743)
|
|
|
|
—
|
|
|
|
Sale of investments and
marketable securities, net
|
|
7,350
|
|
|
|
200
|
|
|
|
Expenditures for property, plant
and equipment
|
|
(19,412)
|
|
|
|
(8,932)
|
|
|
|
Capitalization of intangible
assets
|
|
(7,030)
|
|
|
|
(18,535)
|
|
|
|
Net cash used in investing
activities
|
|
(219,835)
|
|
|
|
(27,267)
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
|
|
Repayments of notes payable and
other long-term obligations, net
|
|
(406)
|
|
|
|
(118)
|
|
|
|
Proceeds from equity
transactions, net
|
|
842
|
|
|
|
131
|
|
|
|
Payment of debt issue
costs
|
|
(3,944)
|
|
|
|
—
|
|
|
|
Net cash (used in) provided by
financing activities
|
|
(3,508)
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
|
4
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash
equivalents
|
|
(77,317)
|
|
|
|
38,568
|
|
|
|
Cash and cash equivalents,
beginning of period
|
|
141,063
|
|
|
|
102,495
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end
of period
|
$
|
63,746
|
|
|
$
|
141,063
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
I
MARTEK
BIOSCIENCES CORPORATION
SEGMENT
INFORMATION
(Unaudited -
$ in thousands)
|
|
|
Three months
ended
October
31,
|
|
Twelve
months ended
October
31,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branded consumer health
products
|
$
|
23,075
|
|
$
|
—
|
|
$
|
61,385
|
|
$
|
—
|
|
|
Branded nutritional
ingredients
|
|
94,529
|
|
|
81,560
|
|
|
371,921
|
|
|
327,026
|
|
|
Other
|
|
1,532
|
|
|
6,029
|
|
|
16,717
|
|
|
18,171
|
|
|
Total
|
$
|
119,136
|
|
$
|
87,589
|
|
$
|
450,023
|
|
$
|
345,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment (Loss) Income From
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branded consumer health
products
|
$
|
5,812
|
|
$
|
—
|
|
$
|
9,605
|
|
$
|
—
|
|
|
Branded nutritional
ingredients
|
|
(14,151)
|
|
|
16,812
|
|
|
39,972
|
|
|
64,168
|
|
|
Other
|
|
247
|
|
|
421
|
|
|
1,269
|
|
|
(552)
|
|
|
Total
|
$
|
(8,092)
|
|
$
|
17,233
|
|
$
|
50,846
|
|
$
|
63,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
II
|
|
MARTEK
BIOSCIENCES CORPORATION
|
|
RECONCILIATION OF GAAP TO
NON-GAAP NET INCOME MEASURE
|
|
(Unaudited)
|
|
|
|
|
The Company makes reference in this release to non-GAAP
presentations of fiscal 2010 net income and diluted earnings per
share that exclude expenses associated with the acquisition of
Amerifit and the restructuring of the Winchester manufacturing site. We are
providing this information to assist investors in comparing the
results of the current periods to those in the prior year periods
when these items were not present. We caution investors, however,
that these non-GAAP results should only be considered in addition
to results that are reported under current GAAP and should not be
considered as a substitute for results that are presented under
GAAP. Following is a schedule showing the reconciliation of net
income and diluted earnings per share reported under GAAP to the
non-GAAP financial measure included herein:
|
|
|
|
|
Three months
ended
October
31,
|
|
Twelve
months ended
October
31,
|
|
|
Historical Results, $ in
thousands
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as reported under
GAAP
|
$
|
(6,146)
|
|
$
|
11,039
|
|
$
|
27,900
|
|
$
|
40,590
|
|
|
Add: restructuring
charge, net of tax
|
|
19,971
|
|
|
—
|
|
|
20,376
|
|
|
—
|
|
|
Add: acquisition
costs, net of tax
|
|
69
|
|
|
—
|
|
|
2,573
|
|
|
—
|
|
|
Add: inventory
step-up, net of tax
|
|
—
|
|
|
—
|
|
|
1,219
|
|
|
—
|
|
|
Non-GAAP net income measure
|
$
|
13,894
|
|
$
|
11,039
|
|
$
|
52,068
|
|
$
|
40,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
October
31,
|
|
Twelve
months ended
October
31,
|
|
|
Historical Results, $ per
share
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per
share, as reported under GAAP
|
$
|
(0.18)
|
|
$
|
0.33
|
|
$
|
0.83
|
|
$
|
1.22
|
|
|
Add: restructuring
charge, net of tax
|
|
0.59
|
|
|
—
|
|
|
0.61
|
|
|
—
|
|
|
Add: acquisition
costs, net of tax
|
|
—
|
|
|
—
|
|
|
0.08
|
|
|
—
|
|
|
Add: inventory
step-up, net of tax
|
|
—
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
|
Non-GAAP diluted earnings per
share measure
|
$
|
0.41
|
|
$
|
0.33
|
|
$
|
1.55
|
|
$
|
1.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT
|
|
Kyle Stults
|
|
Investor Relations
|
|
(410) 740-0081
|
|
investors@martek.com
|
|
|
|
|
SOURCE Martek Biosciences Corporation