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Previous: BIOVAIL CORPORATION INTERNATIONAL, 20-F/A, 2000-05-03 |
Next: ASTROPOWER INC, DEF 14A, 2000-05-03 |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of April, 2000
-------------------
001-11145
(Commission File No.)
BIOVAIL CORPORATION
(Translation of registrant's name into English)
2488 Dunwin Drive, Mississauga, Ontario L5L 1J9, Canada
(Address of principal executive offices and zip code)
Registrant's Telephone Number, including area code: (416) 285-6000
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
--- ---
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
--- ---
<PAGE>
Exhibit 99(a)
2488 Dunwin Drive, Mississauga, Ontario, L5L 1J9, (416) 285-6000
CONTACT: Ken Howling
Chief Financial Officer
(416) 285-6000
FOR IMMEDIATE RELEASE:
*BIOVAIL REPORTS RECORD 2000 FIRST QUARTER FINANCIAL RESULTS*
TORONTO, Canada, April 27, 2000 - Biovail Corporation (NYSE,
TSE:BVF) today reported record financial results under US GAAP for the
period ended March 31, 2000. Revenue for the first quarter of 2000
increased 70% to $46.9 million, compared with $27.6 million reported
for the first quarter of 1999. Operating income for the quarter
increased to $14.2 million, a 32% improvement over the $10.8 million
earned in the first quarter of 1999. Diluted earnings per share before
extraordinary items increased 27% to $0.19 per share.
The Company has historically reported its consolidated
financial results in accordance with Canadian generally accepted
accounting principles (GAAP). Beginning with the period ended March 31,
2000 the Company has begun to report its financial results in
accordance with United States GAAP. Historical consolidated results
have been restated to reflect this change.
<PAGE>
The decision to provide US GAAP financial results was driven
by the Company's desire to make it easier for the majority of its
shareholders to assess the Company's financial performance by using
accounting rules that are more familiar to these shareholders. This
presentation is also more consistent with the presentation of financial
results of most of the Company's industry customers and competitors.
Consolidated financial statements in accordance with Canadian GAAP (in
US dollars) will be made available to all shareholders upon request and
will be filed with the Canadian regulatory authorities.
During the quarter, the Company repurchased all of its
outstanding 10 7/8% Senior Notes at a premium resulting in an
extraordinary charge of $20.0 million. Income before this extraordinary
item for the three months ended March 31, 2000 was $13.1 million, or
$0.19 per share on a diluted basis, an increase of 77% over income
before extraordinary items of $7.4 million, or $0.15 per share on a
diluted basis, in the comparable period of 1999. After deducting the
extraordinary item, the net loss for the first quarter of 2000 was $6.9
million, or $0.10 per share on a diluted basis, compared to net income
of $7.4 million, or $0.15 per share on a diluted basis, in 1999.
Eugene Melnyk, Chairman of the Board, commented, "Biovail's
70% increase in total revenues is primarily due to the launch of
several new products including generic versions of Voltaren XR and
Adalat CC 30 mg and the first commercial launch of a product utilizing
Biovail's flash dose technology. The success of Biovail's recent
offerings allowed the Company to retire its 10 7/8% Senior Notes and
leaves the Company well positioned to capitalize on strategic
opportunities."
-2-
<PAGE>
Biovail Corporation is an international full-service
pharmaceutical company, engaged in the formulation, clinical testing,
registration and manufacture of drug products utilizing advanced drug
delivery technologies.
"Safe Harbor" statement under the Private Securities
Litigation Reform Act of 1995.
To the extent any statements made in this release contain
information that is not historical, these statements are essentially forward
looking and are subject to risks and uncertainties, including the difficulty of
predicting FDA and TPD approvals, acceptance and demand for new pharmaceutical
products, the impact of competitive products and pricing, new product
development and launch, reliance on key strategic alliances, availability of raw
materials, the regulatory environment, fluctuations in operating results and
other risks detailed from time to time in the Company's filings with the
Securities and Exchange Commission.
<PAGE>
BIOVAIL CORPORATION
CONSOLIDATED BALANCE SHEETS
In Accordance with United States Generally Accepted Accounting Principles
(All dollar amounts are expressed in thousands of U.S. dollars)
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
---- ----
ASSETS
<S> <C> <C>
CURRENT
Cash and cash equivalents $ 475,670 $ 178,086
Short-term investments 19,547 65,893
Accounts receivable 75,577 60,571
Inventories 18,130 12,701
Assets held for disposal -- 20,000
Deposits and prepaid expenses 1,984 3,172
----------- -----------
590,908 340,423
LONG-TERM INVESTMENTS 3,190 12
PROPERTY, PLANT AND EQUIPMENT, net 47,193 45,300
OTHER ASSETS, net 89,878 86,478
----------- -----------
$ 731,169 $ 472,213
=========== ===========
LIABILITIES
CURRENT
Accounts payable $ 26,521 $ 22,685
Accrued liabilities 26,813 31,107
Income taxes payable 3,412 3,585
Customer prepayments 4,473 4,962
Deferred tax liability 336 336
Current portion of long-term debt 1,318 12,016
----------- -----------
62,873 74,691
DEFERRED TAX LIABILITY 4,614 4,698
CONVERTIBLE SUBORDINATED PREFERRED EQUIVALENT DEBENTURES
300,000 --
LONG-TERM DEBT -- 125,488
----------- -----------
367,487 204,877
----------- -----------
SHAREHOLDERS' EQUITY
Share capital 475,470 373,962
Warrants 8,244 8,244
Warrant subscription receivable (1,005) (2,287)
Deficit (120,741) (113,843)
Accumulated other comprehensive income 1,714 1,260
----------- -----------
363,682 267,336
----------- -----------
$ 731,169 $ 472,213
=========== ===========
</TABLE>
<PAGE>
BIOVAIL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
In Accordance with United States Generally Accepted Accounting Principles
(All dollar amounts except per share data are expressed in
thousands of U.S. dollars)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------
2000 1999
---- ----
<S> <C> <C>
REVENUE
Product sales $ 33,631 $ 12,562
Research and development 10,501 6,077
Royalty and licensing 2,728 8,952
----------- -----------
46,860 27,591
----------- -----------
EXPENSES
Cost of goods sold 11,035 5,039
Research and development 11,766 5,324
Selling, general and administrative 9,839 6,468
----------- -----------
32,640 16,831
----------- -----------
OPERATING INCOME 14,220 10,760
INTEREST EXPENSE, net (266) (2,792)
----------- -----------
INCOME BEFORE INCOME TAXES 13,954 7,968
PROVISION FOR INCOME TAXES 813 533
----------- -----------
INCOME BEFORE EXTRAORDINARY ITEM 13,141 7,435
EXTRAORDINARY ITEM - Premium paid on
early extinguishment of U.S. Dollar Senior Notes (20,039) --
----------- -----------
NET INCOME (LOSS) $ (6,898) $ 7,435
=========== ===========
EARNINGS (LOSS) PER SHARE - Basic
Income before extraordinary item $ 0.21 $ 0.15
Extraordinary item (0.32) --
----------- -----------
Net income (loss) ($0.11) $ 0.15
=========== ===========
EARNINGS (LOSS) PER SHARE - Diluted
Income before extraordinary item $ 0.19 $ 0.15
Extraordinary item (0.29) --
----------- -----------
Net income (loss) $ (0.10) $ 0.15
=========== ===========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic 62,792,000 49,207,000
=========== ===========
Diluted 70,261,000 50,388,000
=========== ===========
</TABLE>
<PAGE>
BIOVAIL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Accordance with United States Generally Accepted Accounting Principles
(All dollar amounts are expressed in thousands of U.S. dollars)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------
2000 1999
---- ----
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES
OPERATING
<S> <C> <C>
Net income (loss) $ (6,898) $ 7,435
Depreciation and amortization 5,540 1,489
Deferred income tax provision (84) --
Extraordinary item - Premium paid on early extinguishment
of U.S. Dollar Senior Notes 20,039 --
Compensation cost for employee stock options -- 281
------------ ------------
18,597 9,205
Change in non-cash operating items (20,609) 7,152
------------ ------------
(2,012) 16,357
------------ ------------
INVESTING
Additions to property, plant and equipment, net (3,929) (1,611)
Sale of short-term investments, net 46,346 --
Acquisition of long-term investments (2,285) --
Proceeds from assets held for disposal 17,000 --
Decrease in other assets 261 --
Advance of executive stock purchase plan loans -- (52)
------------ ------------
57,393 (1,663)
------------ ------------
FINANCING
Issuance of share capital 102,298 1,424
Repurchase of share capital -- (14,933)
Issuance of convertible subordinated preferred equivalent
debentures, net of financing costs 290,312 --
Repurchase of U.S. Dollar Senior Notes (141,017) --
Reduction in other long-term debt (10,651) (300)
Collection of warrant subscription receivable 1,282 640
------------ ------------
242,224 (13,169)
------------ ------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH (21) (548)
------------ ------------
INCREASE IN CASH AND CASH EQUIVALENTS 297,584 977
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 178,086 78,279
------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 475,670 $ 79,256
============ ============
</TABLE>
<PAGE>
SIGNATURES
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.
BIOVAIL CORPORATION
By /s/ John R. Miszuk
------------------
Name: John R. Miszuk
Title: Vice President, Controller
DATE: May 2, 2000
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