MediCor Ltd. Reports Fiscal Year End June 2005 Results, Revenues Increase to $27 Million
September 28 2005 - 8:17PM
PR Newswire (US)
LAS VEGAS, Sept. 28 /PRNewswire-FirstCall/ -- Las Vegas-based
MediCor Ltd. (OTC:MDCR) (BULLETIN BOARD: MDCR) , the world's third
largest manufacturer and distributor of breast implants, today
announced results for its fiscal year ended June 30, 2005. For the
fiscal year ended June 30, 2005, the Company reported record
revenues of $26.9 million, an increase of $25.5 million as compared
to revenues of $1.4 million in FY 2004. On a pro forma basis,
revenues increased approximately $4.3 million or 19% over the
comparable prior fiscal year. Operating loss was $10 million
compared with $15.3 million loss for the previous year and net loss
for FY 2005 was $17.3 million, versus a net loss of $16.6 million
for FY 2004. Loss per share for FY 2005 was $(0.93) per fully
diluted share, as compared to a loss of $(0.94) per fully diluted
share for FY 2004. Growth Through Major Acquisition in FYE 2004 -
Eurosilicone On July 5, 2004, the Company acquired Laboratoires
Eurosilicone SA, simultaneously renaming the company Eurosilicone
SAS ("Eurosilicone"). On a pro forma basis, assuming the
acquisition of Eurosilicone occurred on July 1, 2003, revenues for
the fiscal year ending June 30, 2005 were $26.9 million versus
$22.6 million in the prior year, an increase of 19%. Net loss for
FY 2005 was $17.3 million compared to a net loss of $13.8 million
in the prior year and fully diluted loss per share was $(0.93)
compared with a loss of $(0.78) in the prior year. Further Growth
through British Acquisition Subsequent to FYE 2005 - Biosil and
Nagor On September 13, 2005, the Company announced it had reached
an agreement to acquire British breast implant manufacturer Biosil
Limited and supplier Nagor Limited for cash and stock. The
acquisition reinforces the Company's position as the number three
manufacturer and distributor of breast implants worldwide and
increases the Company's share of the market for breast implants
outside the U.S. to approximately 30%. According to MediCor Chief
Executive Officer Theodore R. Maloney, "Fiscal year 2005 was a year
in which our global strategy to grow our business rapidly to
meaningful scale really began to take shape, especially in terms of
our financial results. The Eurosilicone acquisition was the first
in what we believe will be a series of strategic milestone events,
and we expect that the recently announced Biosil and Nagor
acquisitions will be the second of those milestones." Chief
Financial Officer Thomas R. Moyes added, "Both the rapid growth of
the industry outside the U.S. and the execution success of our
Eurosilicone subsidiary are driving our top-line revenue and
financial results. We plan to build on this success following the
acquisition of Biosil and Nagor and ultimately generate significant
financial returns for our shareholders. We believe the twin
strategies of focusing on key strategic acquisitions and new
product development in the U.S. and internationally, will deliver
revenue growth and financial returns at a rate well above the
industry average." About MediCor Ltd. MediCor was founded by
Chairman of the Board Donald K. McGhan, the pioneer of the modern
day breast implant industry. The Company acquires, develops,
manufactures and markets products for medical specialties in
aesthetic, plastic and reconstructive surgery and dermatology
markets. Products include surgically implantable prostheses for
aesthetic, plastic and reconstructive surgery and scar management
products. Its products are sold worldwide to hospitals, surgery
centers and physicians through various distributors and direct
sales personnel. MediCor's strategy is to be the leading integrator
of selected international medical device markets, technologies and
corporations. To achieve this strategy, MediCor intends to build
upon and expand its business lines, primarily in the aesthetic,
plastic and reconstructive surgery and dermatology markets. MediCor
intends to accomplish this growth through the expansion of existing
product lines and offerings and through the acquisition of
companies and other assets, including intellectual property rights
or distribution rights. Forward-Looking Statements This release may
contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements
are based upon the current beliefs and expectations of MediCor's
management and are subject to significant risks and uncertainties.
Actual results may differ from those set forth in the
forward-looking statements. The following factors, among others,
could cause actual results to differ from those set forth in the
forward-looking statements: the ability to obtain requisite
financing for acquisitions to continue to execute on our growth
plans, the risk of instability in the capital markets in the U.S.
and internationally, the ability to obtain governmental approvals
to market the company's products and the timing of the company's
and its competitors' approvals and entry to markets needed to
operate our businesses; the risk that businesses we acquire will
not be integrated successfully; the risk that cost savings from
acquisition transactions may not be realized or may take longer to
realize than expected; disruption from transactions making it more
difficult to maintain relationships with customers, employees or
suppliers; increased competition and its effect on pricing,
spending, third-party relationships and revenues; the outcome of
legal proceedings; the risk of new and changing regulations in the
U.S. and internationally. Additional factors that could cause
MediCor's results to differ materially from those described in the
forward-looking statements can be found in MediCor's Annual Report
on Form 10-KSB for the year ended June 30, 2005, which was filed
with the Securities and Exchange Commission and is available at the
Securities and Exchange Commission's Internet site
(http://www.sec.gov/). Contact: Marc S. Sperberg U.S. 702-932-4560,
x308 Mark Collinson CCG Investor Relations U.S. 310-231-8600, x117
MediCor Ltd. Consolidated Statements of Operations and
Comprehensive Income / (Loss) For the Years Ended as Noted June 30,
2005 June 30, 2004 Net sales $26,958,547 $1,421,583 Cost of sales
15,163,457 412,713 Return of consigned inventory previously written
down (350) (60,175) Gross profit 11,795,440 1,069,045 Operating
Expenses: Selling, general and administrative expenses 19,036,314
8,483,694 Research and development 2,691,333 2,149,049 Other
expenses 106,903 5,686,849 Operating income / (loss) (10,039,110)
(15,250,547) Net interest expense / (income) 5,315,568 1,195,543
Income / (loss) before income taxes (15,354,678) (16,446,090)
Income tax expense (benefit) 542,555 1,737 Net income / (loss)
(15,897,233) (16,447,827) Preferred dividends deemed 262,600 91,558
Preferred dividends in arrears Series A Preferred 8% 884,478 27,388
Net loss attributable to common stockholders (17,044,311)
(16,566,773) Other comprehensive income / (loss), net of tax:
Foreign currency translation adjustments (237,457) -- Comprehensive
income / (loss) $(17,281,768) $(16,566,773) Loss per share data:
Weighted average shares, basic and diluted 18,233,175 17,633,120
Basic and diluted Net loss per share $(0.93) $(0.94) See
accompanying notes to consolidated financial statements Pro forma
Calculations The following unaudited pro forma financial
information and reconciliation to GAAP of net sales, net income,
and diluted earnings per common share should be read in conjunction
with the MediCor Ltd. Form 10-KSB for the year ended June 30, 2005.
The accompanying unaudited pro forma information is intended to
give effect to the July 5, 2004 acquisition of Eurosilicone SAS and
reflects the condensed consolidated results of operations as if
this transaction had occurred on July 1, 2003. The pro-forma
financial information is not necessarily indicative of the results
of operations had the transaction been effected on July 1, 2003.
MediCor Ltd. Reconciliation of Historical to Pro-forma Consolidated
Statements of Operations and Comprehensive Income / (Loss)
Historical Pro-forma June 30, 2005 June 30, 2004 Adjustments June
30, 2004 Net Sales $26,958,547 $1,421,583 $21,146,445 $22,568,028
Net Income/Loss (17,281,768) (16,566,773) 2,745,496 (13,821,277)
Diluted (loss) earnings per common share (0.93) (0.94) 0.16 (0.78)
DATASOURCE: MediCor Ltd. CONTACT: Marc S. Sperberg of MediCor Ltd.,
+1-702-932-4560, ext. 308; or Mark Collinson of CCG Investor
Relations, +1-310-231-8600, ext. 117, for MediCor Ltd.
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