AEterna Zentaris To File Restated Interim 2006 Third Quarter Financials - Net loss for the third quarter and the nine-month peri
February 12 2007 - 8:20AM
PR Newswire (US)
All amounts are in U.S. dollars QUEBEC, Feb. 12
/PRNewswire-FirstCall/ -- AEterna Zentaris Inc. (TSX: AEZ; NASDAQ:
AEZS) today announced that the Company, after discussions with its
external auditors relating to the Company's and the auditors'
interpretation of Section 3465 of the Canadian Institute of
Chartered Accountants ("CICA") Handbook, has determined to restate
its interim unaudited consolidated financial statements for the
third quarter and nine-month period ended September 30, 2006. This
non-cash restatement will reduce the Company's future income tax
expense and its net loss by $4.9 million for the third quarter and
nine-month period ended September 30, 2006. AEterna Zentaris'
restated net loss will be $1.6 million for the three-month period
and $5.7 million for the nine-month period ended September 30,
2006, compared to the previously reported net loss of $6.5 million
and $10.6 million for such periods, respectively. The Company's net
loss per share on a basic and fully- diluted basis will be $0.03
for the three-month period and $0.11 for the nine-month period
ended September 30, 2006, compared to the previously reported $0.12
and $0.21 for such periods, respectively. The impact on the
consolidated balance sheet will be a decrease in the future income
tax liabilities of $5 million, a decrease in the deficit of $4.9
million and an increase in the cumulative translation adjustment of
$0.1 million. Section 3465 of the CICA Handbook provides guidance
related to the valuation of future income tax assets in connection
with income tax losses. The valuation of the $4.9 million allowance
previously recorded in the Company's consolidated statement of
operations as future income tax expense in the third quarter ended
September 30, 2006 has been reversed. Furthermore, in conjunction
with the aforementioned restatement, future income tax assets and
liabilities arising from within the same jurisdiction have also
been offset as required by Section 3465. The Company anticipates
filing the restated third quarter 2006 interim financial statements
and the corresponding Management's Discussion and Analysis
(MD&A) later today. These documents will be available on
http://www.sedar.com/ and on the Company's website at
http://www.aeternazentaris.com/. A summary of certain restated
financial information is attached to this press release. About
AEterna Zentaris Inc. AEterna Zentaris Inc. is a late-stage, global
biopharmaceutical company focused on endocrine therapy and oncology
with proven expertise in drug discovery, development and
commercialization. News releases and additional information are
available at http://www.aeternazentaris.com/. Forward-Looking
Statements This press release contains forward-looking statements
made pursuant to the safe harbor provisions of the U.S. Securities
Litigation Reform Act of 1995. Forward-looking statements involve
known and unknown risks and uncertainties, which could cause the
Company's actual results to differ materially from those in the
forward-looking statements. Such risks and uncertainties include,
among others, the availability of funds and resources to pursue
R&D projects, the successful and timely completion of clinical
studies, the ability of the Company to take advantage of business
opportunities in the pharmaceutical industry, uncertainties related
to the regulatory process and general changes in economic
conditions. Investors should consult the Company's quarterly and
annual filings with the Canadian and U.S. securities commissions
for additional information on risks and uncertainties relating to
the forward-looking statements. Investors are cautioned not to rely
on these forward-looking statements. The Company does not undertake
to update these forward-looking statements. Attachment: Financial
summary (In thousands of US dollars, except share and per share
data) Quarters ended Nine months ended CONSOLIDATED RESULTS
September 30, September 30, Unaudited 2006 2005 2006 2005
------------------------------------------------------------------------
$ $ $ $ (restated) (restated)
------------------------------------------------------------------------
Revenues 83,893 52,879 251,760 174,888
------------------------------------------------------------------------
Operating expenses Cost of sales 55,664 34,073 165,479 109,800
Selling, general and administrative 15,125 9,836 44,209 29,785
R&D costs, net of tax credits and grants 6,194 6,147 20,475
18,692 Depreciation and amortization 2,517 1,837 7,376 5,666
------------------------------------------------------------------------
79,500 51,893 237,539 163,943
------------------------------------------------------------------------
Earnings from operations 4,393 986 14,221 10,945 Interest income
539 339 1,414 1,071 Interest expense (1,971) (2,241) (7,198)
(7,067) Foreign exchange gain (loss) 109 (404) 26 (351)
------------------------------------------------------------------------
Earnings (loss) before the following items 3,070 (1,320) 8,463
4,598 Current income taxes (2,010) (251) (6,401) (4,503) Future
income taxes 692 (753) 2,511 (1,915) Gain (loss) on dilution of
investments (5) 109 (140) 16,502 Non-controlling interest (3,316)
(1,544) (10,144) (5,047)
------------------------------------------------------------------------
Net earnings (loss) for the period (1,569) (3,759) (5,711) 9,635
------------------------------------------------------------------------
Net earnings (loss) per share Basic (0.03) (0.08) (0.11) 0.21
------------------------------------------------------------------------
Diluted (0.03) (0.08) (0.11) 0.20
------------------------------------------------------------------------
Weighted average number of shares Basic 52,692,065 46,139,814
51,900,754 46,139,814 Diluted 53,040,488 46,397,156 52,390,209
46,459,000 Issued and outstanding shares 53,160,970 46,139,814
CONSOLIDATED BALANCE SHEET As at As at September 30,December 31,
Unaudited 2006 2005
------------------------------------------------------------------------
$ $ (restated) Cash and short-term investments 45,753 52,705 Other
current assets 111,435 110,971 --------------------- 157,188
163,676 Long-term assets 268,849 256,204 ---------------------
Total assets 426,037 419,880 --------------------- Current
liabilities 63,450 64,174 Long-term debt 99,144 135,743 Other
long-term liabilities 43,740 45,901 Non-controlling interest 77,938
64,531 --------------------- 284,272 310,349 Shareholders' equity
141,765 109,531 --------------------- Total liabilities and
shareholders' equity 426,037 419,880 ---------------------
DATASOURCE: AETERNA ZENTARIS INC. CONTACT: Jenene Thomas, Senior
Director, Investor Relations & Corporate Communications, (418)
655-6420, ; Paul Burroughs, Media Relations, (418) 652-8525, ext.
406,
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