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 Quarter Ended Commission File No.
September 30, 1995 0-15443
THERAGENICS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 58-1528626
(State of incorporation) (I.R.S. Employer Identification Number)
5325 Oakbrook Parkway
Norcross, Georgia 30093
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (770)381-8338
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 X NO
Indicate the number of shares outstanding of each of the issuers
classes of common stock, as of the latest practicable date:
CLASS Shares Outstanding at November 10, 1995
Common Stock, 11,200,985
par value $.01
<PAGE>
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THERAGENICS CORPORATION
TABLE OF CONTENTS
Page
PART I - FINANCIAL INFORMATION:
ITEM 1. FINANCIAL STATEMENTS
Balance Sheets -
December 31, 1994 and September 30, 1995 (unaudited)....... 3
Statements of Earnings for the Three and Nine
Months Ended September 30, 1994 and 1995 (unaudited)....... 5
Statements of Cash Flows for the Three and Nine
Months Ended September 30, 1994 and 1995 (unaudited)....... 6
Statements of Changes in Stockholders' Equity for
the Nine Months Ended September 30, 1995 (unaudited)....... 8
Notes to Financial Statements.............................. 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS....... 10
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.................... 13
SIGNATURE .................................................... 14<PAGE>
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. - Financial Statements
<TABLE>
THERAGENICS CORPORATION
BALANCE SHEETS
DECEMBER 31, 1994 AND SEPTEMBER 30, 1995
ASSETS
<CAPTION>
December 31, September 30,
1994 1995
(Unaudited)
<S> <C> <C>
CURRENT ASSETS
Cash and short-term investments $ 2,317,463 $3,501,062
Marketable securities 50,000 -
Trade Accounts Receivable 732,424 1,190,069
Inventories 192,161 194,964
Prepaid expenses and other
current assets 91,801 70,930
Total current assets 3,383,849 4,957,025
PROPERTY AND EQUIPMENT
Building (Note B) 899,760 1,673,154
Leasehold Improvement 138,978 142,652
Machinery and equipment (Note B) 5,167,815 8,163,036
Office furniture and equipment 44,721 44,721
6,251,274 10,023,563
Less accumulated depreciation
and amortization (1,445,206) (1,967,275)
4,806,068 8,056,288
Land 49,485 49,485
Construction in progress (Note B) 3,602,825 806,447
8,458,378 8,912,220
OTHER ASSETS
Deferred Tax Asset 2,179,000 1,461,231
Patent Costs 94,982 92,747
Other 52,449 30,127
2,326,431 1,584,105
$14,168,658 $15,453,350
</TABLE>
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<PAGE>
<TABLE>
THERAGENICS CORPORATION
BALANCE SHEETS
(Continued)
DECEMBER 31, 1994 AND SEPTEMBER 30, 1995
LIABILITIES AND STOCKHOLDERS' EQUITY
<CAPTION>
December 31, September 30,
1994 1995
(Unaudited)
<S> <C> <C>
CURRENT LIABILITIES:
Current portion of long term debt $ 469,765 $ 500,565
Trade accounts payable 226,209 220,522
Accrued salaries, wages,
and payroll taxes 110,132 222,146
Income taxes payable 113 -
Other current liabilities 33,036 99,434
Total current liabilities 839,255 1,042,667
LONG TERM DEBT:
Long Term Debt 1,519,354 1,140,279
SHAREHOLDERS' EQUITY:
Common stock, $.01 par value,
50,000,000 shares authorized;
10,961,887 and 11,200,985
shares had been issued as of
December 31, 1994 and June 30,
1995, respectively. 109,618 112,010
Additional paid-in capital 15,207,453 15,477,807
Accumulated deficit (3,507,022) (2,319,413)
Total stockholders' equity 11,810,049 13,270,404
$14,168,658 $15,453,350
</TABLE>
The accompanying notes are an integral part of these statements.<PAGE>
<PAGE>
<TABLE>
THERAGENICS CORPORATION
STATEMENTS OF EARNINGS
FOR THE THREE MONTHS AND NINE MONTHS ENDED
SEPTEMBER 30, 1994 AND 1995
(Unaudited)
<CAPTION>
Three Months Nine Months
Ended September 30 Ended September 30
1994 1995 1994 1995
<S> <C> <C> <C> <C>
REVENUES:
Sales ............$1,129,094 $1,926,456 $3,387,621 $5,587,134
Licensing Fees ... - - - 85,431
COSTS & EXPENSES:
Cost of sales ..... 442,870 665,346 1,232,751 1,940,274
Selling, general, &
administrative .... 480,209 607,124 1,435,942 1,884,724
Research and
development ....... 4,916 2,873 14,771 17,068
927,995 1,275,343 2,683,464 3,842,066
OTHER INCOME (EXPENSE):
Interest income ... 39,351 37,829 103,631 102,078
Interest expense .. (26,565) - (81,149) -
Other ............. (29,260) (9,738) (28,882) (17,078)
(16,474) 28,091 (6,400) 85,000
NET EARNINGS BEFORE
INCOME TAXES ..... 184,625 679,204 697,757 1,915,499
Income tax expense 67,000 258,098 255,000 727,890
NET EARNINGS ...... 117,625 421,106 442,757 1,187,609
NET EARNINGS PER
COMMON SHARE $ .01 $.04 $ .04 $.10
WEIGHTED AVERAGE
SHARES 11,608,330 11,937,322 11,607,090 11,826,326
</TABLE>
The accompanying notes are an integral part of these statements.<PAGE>
<PAGE>
<TABLE>
THERAGENICS CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS AND NINE MONTHS ENDED
SEPTEMBER 30, 1994 AND 1995
(Unaudited)
<CAPTION>
Three Months Nine Months
Ended September 30 Ended September 30
1994 1995 1994 1995
<S> <C> <C> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Earnings.........$ 117,625 $ 421,106 $ 442,757 $1,187,609
Adjustments to
reconcile net
earnings to net
cash provided by
operating
activities:
Depreciation and
amortization..... 140,454 223,259 420,719 587,813
Change in assets
and liabilities:
Accounts
receivable....... 8,855 (111,446) (113,798) (457,645)
Inventories...... (75,439) 21,562 (97,848) (2,803)
Prepaid expenses
and other current
assets........... (26,202) 27,148 32,133 20,871
Deferred tax asset 62,000 253,472 235,000 717,769
Other assets..... (26,061) 821 (26,261) 22,322
Trade accounts
payable.......... 110,320 2,277 94,779 (5,687)
Accrued salaries,
wages and
payroll taxes.... 13,171 12,128 66,108 112,014
Other current
liabilities...... (24,205) 35,061 54,875 66,285
Total Adjustments 182,893 464,282 665,707 1,060,939
Net cash provided
by operating
activities........ 300,518 885,388 1,108,464 2,248,548
</TABLE>
<PAGE>
<PAGE>
<TABLE>
THERAGENICS CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS AND NINE MONTHS ENDED
SEPTEMBER 30, 1994 AND 1995
(Unaudited)
(continued)
<CAPTION>
Three Months Nine Months
Ended September 30 Ended September 30
1994 1995 1994 1995
<S> <C> <C> <C> <C>
CASH FLOWS FROM
INVESTING ACTIVITIES:
Purchases and
construction of
property and
equipment.........(2,357,541) (623,156) (2,473,092) (1,037,519)
Retirements of
property and
equipment......... 3 643 1,572 1,677
Patent costs...... 1,944 54 5,248 (3,578)
Purchases/sales
of marketable
securities........ 196,516 - 300,000 50,000
Market value change
of marketable
securities........ 10,116 - 9,462 -
Net cash provided
/(used) by investing
activities........(2,148,962) (622,459) (2,156,810) (989,420)
CASH FLOWS FROM
FINANCING ACTIVITIES:
Exercise of
stock options.... 40,000 217,000 46,000 272,746
Proceeds from
term loan........ 2,100,000 - 2,100,000 -
Repayment of
term loan........ (1,023,102) (118,369) (1,330,439) (348,275)
Net cash provided
/(used) by financing
activities....... 1,116,898 98,631 815,561 (75,529)
NET INCREASE IN CASH
AND SHORT-TERM
INVESTMENTS....... (731,546) 361,560 (232,785) 1,183,599
CASH AND SHORT-TERM
INVESTMENTS AT
BEGINNING OF PERIOD 3,581,782 3,139,502 3,083,021 2,317,463
CASH AND SHORT-TERM
INVESTMENTS AT
END OF PERIOD......$2,850,236 $3,501,062 $2,850,236 $3,501,062
</TABLE>
The accompanying notes are an integral part of these statements.<PAGE>
<PAGE>
<TABLE>
THERAGENICS CORPORATION
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(Unaudited)
<CAPTION>
Common Stock Additional
Number of Par Value Paid-in Accumulated
shares $.01 capital deficit Total
<S> <C> <C> <C> <C> <C>
BALANCE,
December 31,
1994........ 10,961,887 $109,618 $15,207,453 $(3,507,022) $11,810,049
Exercise of
stock options 239,098 2,392 270,354 - 272,746
Net earnings
for the
period...... - - - 1,187,609 1,187,609
BALANCE,
September 30,
1995........ 11,200,985 $112,010 $15,477,807 $(2,319,413) $13,270,404
</TABLE>
The accompanying notes are an integral part of these statements.<PAGE>
<PAGE>
THERAGENICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(Unaudited)
NOTE A - BASIS OF PRESENTATION
The interim financial statements included herein have
been prepared by the Company without audit. These
statements reflect all adjustments which are, in the
opinion of management, necessary to present fairly the
financial position as of September 30, 1995, and the results
of operations, cash flows, and changes in shareholders
equity for the three and nine months ended September 30, 1995.
All such adjustments are of a normal recurring nature.
Certain information and footnote disclosures normally
included in financial statements prepared in accordance
with generally accepted accounting principles have been
condensed or omitted. The Company believes that the
disclosures are adequate to make the information
presented not misleading. It is suggested that these
financial statements and notes be read in conjunction
with the audited financial statements and notes for the
year ended December 31, 1994, included in the Form 10-K
filed by the Company.
NOTE B - CONSTRUCTION IN PROGRESS
In April 1995, $3.8 million related to the Company's #2
cyclotron capacity expansion project was moved from
construction in progress and placed in service with
approximately $.8 million representing building costs
and $3.0 million representing machinery and equipment
costs.
<PAGE>
<PAGE>
Item 2. - Management's Discussion and Analysis of
Financial Condition and Results of Operations
Results of Operations
Revenues - Revenues for the quarter ($1,926,000) were up 71% over
the third quarter of 1994 contributing to year to date revenues
($5,673,000) being 67% over the first nine months of last year.
As in the first and second quarters of this year, the increase
in third quarter sales resulted primarily from the Company's
marketing campaign which was accelerated in the second half of
1994 with continued emphasis in the first nine months of 1995.
Improvement in manufacturing reliability continued to provide a
flow of product capable of sustaining third quarter's demand for
product. Additionally, lump-sum payments associated with the
licensing of the Company's TheraSphere product were received in
the second quarter contributing to the nine-month improvement
in revenues.
The Company's net profit improved 258% to $421,000, or $.035 per
share in the second quarter of 1995, from $118,000 or $.010 per
share for the same period in 1994. Year to date profits grew 168%
to $1,188,000 from $443,000 with earnings per share of $.100
versus $.038.
Costs and Expenses - Cost of sales for the third quarter
increased by $222,000 primarily due to costs associated with
increase sales plus additional depreciation expense of $81,000
reflecting the placing in service of the Company's second
cyclotron as of April 1, 1995. Also contributing to the rise in cost
of sales was the continuation of the Company's efforts to improve
efficiencies in the manufacturing area. These efforts and costs
are most likely to continue as the Company identifies
opportunities to improve quantity, quality or safety. With the
exception of the depreciation expense related to cyclotron #2,
the same factors account for the $708,000 increase in cost of
sales for the first nine months of 1995 compared to the same
period of 1994.
S,G&A expenses as a percent of sales decreased from 43% in the
third quarter of 1994 to 32% for the same period in 1995. The
nine-month percentages were reduced to 33% in 1995 versus 42% in
1994. As sales increase, S,G&A expenses are expected to continue
to decline as a percent of sales except for variable components
such as advertising and public relations expense which have and
will continue to significantly increase in line with the recent
acceleration of the Company's marketing programs. Those
increases, together with additional costs in insurance, property
taxes, investor relations and personnel expenses aggregated the
$127,000 increase in 1995 third quarter S,G&A over the third
quarter of 1994. These same expenses account for the $449,000
increase in S,G&A for the first nine months of 1995 over the same
period in 1994. Costs in these areas are expected to remain at
the higher levels.
<PAGE>
Other Income and Expense shows an improvement of approximately
$45,000 primarily due to a $27,000 decrease in interest expense
and a $20,000 decrease in other expenses reflecting the write-off
of unamortized loan costs and prepayment associated with an old
loan which was refinanced in September, 1994. The improvement in
interest expense results from 1994's third quarter reflecting
$25,000 as interest expense which should have been capitalized
because of construction in progress. Interest expense was also
booked improperly in the first and second quarters of 1994 which
along with the loan write-off in 1994 resulted in the nine-months
ended September 30, 1995 recording a $91,000 improvement in Other
Income and Expense from the same period in 1994.
Liquidity and Capital Resources
The Company had cash, cash equivalents, short-term investments
and marketable securities of $3.5 million at September 30, 1995,
compared to $2.4 million at December 31, 1994. Operating
activities for the first nine months of 1995 provided $2,249,000
in additional cash. This positive cash flow from operations
primarily represents the nine month's profit of $1,188,000, an
adjustment for depreciation of $588,000 which is a non-cash
expense, a tax loss carryforward adjustment of $718,000 which
reduces cash tax payments, an increase in salaries, vacations and
payroll taxes payable of $112,000, an increase in other current
liabilities of $66,000 and other miscellaneous items of
approximately $35,000 offset by an increase in accounts
receivable of $458,000 due to increased sales.
During the first nine months of 1995, the Company used cash in
the amount of $225,500 predominantly for final payment on the
Company's second cyclotron and its facilities including
capitalized interest. An additional $691,500 represented progress
payments on a third and fourth cyclotron and facilities to house
them, while the remaining $121,000 represented capital equipment
and capitalized interest.
Finally, repayment of long term debt totaled $118,000 during the
third quarter and $348,000 for the nine-month period ended
September 30, 1995.
<PAGE>
<PAGE>
PART II - OTHER INFORMATION
Item 6.- Exhibits and Reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K - None
<PAGE>
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
REGISTRANT:
THERAGENICS CORPORATION
By: /s/ M. Christine Jacobs
M. Christine Jacobs
President
PRINCIPAL FINANCIAL OFFICER:
/s/ Bruce W. Smith
Bruce W. Smith
Treasurer and
Chief Financial Officer
Dated: November 8, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted
from SEC Form 10-Q and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 3,501,062
<SECURITIES> 0
<RECEIVABLES> 1,190,069
<ALLOWANCES> 0
<INVENTORY> 194,964
<CURRENT-ASSETS> 4,957,025
<PP&E> 10,879,495
<DEPRECIATION> 1,967,275
<TOTAL-ASSETS> 15,453,350
<CURRENT-LIABILITIES> 1,042,667
<BONDS> 1,140,279
<COMMON> 15,589,817
0
0
<OTHER-SE> (2,319,413)
<TOTAL-LIABILITY-AND-EQUITY> 15,453,350
<SALES> 5,587,134
<TOTAL-REVENUES> 5,774,643
<CGS> 1,940,274
<TOTAL-COSTS> 3,842,066
<OTHER-EXPENSES> 17,078
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,915,499
<INCOME-TAX> 727,890
<INCOME-CONTINUING> 1,187,609
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,187,609
<EPS-PRIMARY> .10
<EPS-DILUTED> .10
</TABLE>
