Myriad Genetics Reports Fourth Quarter and Fiscal Year 2012 Results
Record Revenue of $496.0 Million and Diluted Earnings per Share of $1.30
SALT LAKE CITY, Aug. 14, 2012 (GLOBE NEWSWIRE) -- Myriad Genetics, Inc.
(Nasdaq:MYGN) today announced results for its fourth quarter and fiscal year
ending June 30, 2012. Revenue for the fourth fiscal quarter increased 24
percent over the same period in the prior year to $133.0 million and resulted
in fiscal year 2012 revenue of $496.0 million, an increase of 23 percent over
fiscal 2011. Fourth fiscal quarter diluted earnings per share were $0.34, an
increase of 14 percent over the same period of the prior year. Fiscal 2012
diluted earnings per share equaled $1.30, an increase of 18 percent
"Myriad achieved record revenue and operating profits last year," said Peter
D. Meldrum, President and Chief Executive Officer of Myriad Genetics, Inc. "We
are committed to building on this strong performance in fiscal 2013 as we
continue to execute on our strategic directives: to grow existing tests and
markets, to expand internationally and to launch new tests, including
companion diagnostics, across a diverse set of major disease indications."
Fourth Fiscal Quarter 2012 Results
*Molecular diagnostic testing revenue in the fourth fiscal quarter equaled
$127.5 million, an increase of 21 percent compared to the prior year
period. Revenue from the Oncology segment equaled $87.0 million, an
increase of 16 percent over the fourth fiscal quarter of 2011. Women's
Health revenue totaled $40.5 million, an increase of 32 percent over the
same period in the prior year.
*Revenue from the BRACAnalysis^® test, which represented 81.7 percent of
total revenue in the fourth quarter, was $108.7 million, a 17 percent
increase over the same period of the prior year.
*Revenue from the COLARIS^® and COLARIS AP^® tests, which represented 8.7
percent of total revenue during the quarter, was $11.5 million, an
increase of 51 percent compared to the same fiscal quarter of the prior
*Myriad's other molecular diagnostic tests contributed $7.3 million to
fourth quarter revenue, or 5.5 percent of total revenue, an increase of
47 percent over the same period in the prior year.
*Companion diagnostic service revenue in the fourth fiscal quarter equaled
$5.5 million and represented 4.1 percent of total company revenue.Revenue
in the fourth fiscal quarter of 2011 equaled $2.0 million as the Company
acquired this business in May 2011.
*Operating income was $47.3 million, an increase of 13 percent from the
prior year period.This level of operating income included the impact of
increased investment in researchand development to support existing
molecular diagnostic tests and future products, as well as investments for
international expansion and Myriad RBM.
*Net income for the fourth fiscal quarter was $29.1 million, an increase of
12 percent over the $26.0 million reported in same period of the prior
*During the quarter the Company repurchased 2.6 million shares or $61.0
million of its common stock, resulting in an average price of $23.70,
under its previously announced stock repurchase program.Fourth fiscal
quarter diluted weighted average shares outstanding were 86.3 million as
compared to 88.1 million in the same period of the prior year.
*Days sales outstanding for Myriad's accounts receivable improved to 41
days, compared with 43 days in the same period of the prior year and bad
debt expense was 5.5 percent of total revenue.
Fiscal Year 2012 Results
*Fiscal 2012 molecular diagnostic testing revenue equaled $472.4 million,
an increase of 18 percent compared to the prior year.Revenue from the
Oncology segment equaled $327.6 million, an increase of 16 percent over
fiscal 2011.Women's Health revenue totaled $144.8 million, an increase of
24 percent over the prior year.
*Revenue from the BRACAnalysis test was $405.5 million, an increase of 15
percent over the prior year.
*Revenue from the COLARIS and COLARIS AP tests was $43.3 million, an
increase of 48 percent compared to the prior year.
*Myriad's other molecular diagnostic tests contributed $23.6 million to
fiscal 2012 revenue, an increase of 32 percent over the prior year.
*Companion diagnostic service revenue in the fiscal 2012 equaled $23.6
million.Revenue in fiscal 2011 equaled $2.0 million as the Company
acquired this business in May 2011.
*Operating income was $180.3 million, an increase of 14 percent from the
prior year.Investment in research and development increased 54 percent
versus the prior year and investments in the Company's international
expansion and Myriad RBM lead to a 23 percent increase in sales, general
and administrative expense.
*Net income for the fiscal year was $112.2 million, an increase of 11
percent over the $100.7 million reported in the prior year.
*During the fiscal year the Company repurchased 5.7 million shares or
$128.5 million of its common stock, resulting in an average price of
$22.59, under its previously announced stock repurchase program.Diluted
weighted average shares outstanding were 86.5 million as compared to 91.7
million in the prior year.
*The Company ended the fiscal year with $454.2 million in cash, cash
equivalents and marketable investment securities.The Company has no debt
or other restrictions on its cash.
Business Highlights of Fiscal Year 2012
*Entered into a loan and acquisition option agreement with Crescendo
Bioscience, under which Myriad made a $25 million strategic debt
investment in Crescendo to secure an exclusive, three-year option to
acquire the company. The potential acquisition of Crescendo Bioscience, if
completed, would expand the Company's portfolio of molecular diagnostic
products to include products for autoimmune disorders, such as rheumatoid
*Established subsidiaries and sales offices in Germany, France, Spain,
Italy and Switzerland, as well as laboratory operations in Germany.
*Published a study in the British Journal of Cancer which highlighted the
ability of the Company's Prolaris® test to significantly predict prostate
cancer aggressiveness and consequent death from the disease.
*Presented a study at the 27^th Annual EAU Congress, and the 2012
Genitourinary Cancers Symposium, which concluded that the Company's
Prolaris test demonstrated significant and unique prognostic ability in
men who had undergone radical prostatectomy and accurately predicted their
elevated risk for prostate cancer recurrence.
*Presented a study at the 2012 ASCO Annual Meeting that demonstrated that
the Company's lung cancer prognostic test significantly predicted
cancer-specific death in early stage adenocarcinoma lung cancer patients.
*Acquired an exclusive license to intellectual property covering the
analysis of the RAD51C gene for risk of hereditary breast and ovarian
*Entered into companion diagnostic agreements with Cephalon Inc., a
subsidiary of Teva Pharmaceutical Industries Ltd., and Pharma Mar to
conduct companion diagnostic testing for their clinical trials.
*Presented a study at the San Antonio Breast Cancer Symposium which
demonstrated that the BRACAnalysis test is a cost-effective intervention
for a much larger group of unaffected women than current guidelines would
Fiscal Year 2013 Outlook
The Company expects fiscal year 2013 total revenue of $550 million to $565
million and diluted earnings per share of $1.44 to $1.48. These projections
are forward looking statements and are subject to the risks summarized in the
safe harbor statement at the end of this press release.The Company will
provide further detail on its business outlook during the conference call it
is holding today to discuss its fiscal results for the fourth fiscal quarter
and fiscal year 2012 financial results.
Conference Call and Webcast
A conference call will be held on Tuesday, August 14, 2012, at 4:30 p.m.
Eastern Time to discuss Myriad's financial results for the fourth fiscal
quarter of 2012 and fiscal 2012.The dial-in number for domestic callers is
(800) 403-7802.International callers may dial (303) 223-2680.All callers
will be asked to reference reservation number 21600202.An archived replay of
the call will be available for seven days by dialing (800) 633-8284 and
entering the reservation number above.The conference call will also be
available through a live Webcast at www.myriad.com.
About Myriad Genetics
Myriad Genetics is a leading molecular diagnostic company dedicated to making
a difference in patients' lives through the discovery and commercialization of
transformative tests to assess a person's risk of developing disease, guide
treatment decisions and assess risk of disease progression and recurrence.
Myriad's portfolio of molecular diagnostic tests are based on an understanding
of the role genes play in human disease and were developed with a commitment
to improving an individual's decision making process for monitoring and
treating disease. Myriad is focused on strategic directives to introduce new
products, including companion diagnostics, as well as expanding
internationally. For more information on how Myriad is making a difference,
please visit the Company's website: www.myriad.com
Myriad, the Myriad logo, BRACAnalysis, Colaris, Colaris AP, Melaris,
TheraGuide, Prezeon, OnDose, Panexia and Prolaris are trademarks or registered
trademarks of Myriad Genetics, Inc. in the United States and foreign
countries. MYGN-F, MYGN-G
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, including statements
relating to the Company's commitment to build upon its 2012's performance in
2013; the Company's commitment to execute and achieve its strategic
directives; the Company's fiscal year 2013 financial guidance under the
caption "Fiscal Year 2013 Outlook;" and the Company's strategic directives
under the caption "About Myriad Genetics". These "forward-looking statements"
are based on management's current expectations of future events and are
subject to a number of risks and uncertainties that could cause actual results
to differ materially and adversely from those set forth in or implied by
forward-looking statements.These risks and uncertainties include, but are not
limited to: the risk that sales and profit margins of our existing molecular
diagnostic tests and companion diagnostic services may decline or will not
continue to increase at historical rates; the risk that we may be unable to
develop or achieve commercial success for additional molecular diagnostic
tests and companion diagnostic services in a timely manner, or at all; the
risk that we may not successfully develop new markets for our molecular
diagnostic tests and companion diagnostic services, including our ability to
successfully generate revenue outside the United States; the risk that
licenses to the technology underlying our molecular diagnostic tests and
companion diagnostic services and any future products are terminated or cannot
be maintained on satisfactory terms; risks related to delays or other problems
with manufacturing our products or operating our laboratory testing
facilities; risks related to public concern over genetic testing in general or
our tests in particular; risks related to regulatory requirements or
enforcement in the United States and foreign countries and changes in the
structure of healthcare payment systems; risks related to our ability to
obtain new corporate collaborations or licenses and acquire new technologies
or businesses on satisfactory terms, if at all; risks related to our ability
to successfully integrate and derive benefits from any technologies or
businesses that we license or acquire; the development of competing tests and
services; the risk that we or our licensors may be unable to protect the
proprietary technologies underlying our tests; the risk of patent-infringement
and invalidity claims or challenges of our patents; risks of new, changing and
competitive technologies and regulations in the United States and
internationally; and other factors discussed under the heading "Risk Factors"
contained in Item 1A in our most recent Annual Report on Form 10-K filed with
the Securities and Exchange Commission, as well as any updates to those risk
factors filed from time to time in our Quarterly Reports on Form 10-Q or
Current Reports on Form 8-K. All information in this press release is as of
the date of the release, and Myriad undertakes no duty to update this
information unless required by law.
MYRIAD GENETICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(in thousands, except per Three Months Ended Twelve Months Ended
Jun. 30, Jun. 30, Jun. 30, Jun. 30,
2012 2011 2012 2011
Molecular diagnostic $ 127,499 $ 105,374 $ 472,390 $ 400,046
Companion diagnostic 5,466 2,038 23,615 2,038
Total revenue 132,965 107,412 496,005 402,084
Costs and expenses:
Cost of molecular 13,872 11,447 51,452 45,637
Cost of companion 3,081 1,077 13,207 1,077
Research and development 12,144 9,230 42,645 27,751
Selling, general, and 56,583 43,881 208,383 169,841
Total costs and expenses 85,680 65,635 315,687 244,306
Operating income 47,285 41,777 180,318 157,778
Other income (expense):
Interest income 1,395 410 4,629 2,226
Other (209) (80) (407) (353)
Total other income 1,186 330 4,222 1,873
Income before income 48,471 42,107 184,540 159,651
Income tax provision 19,330 16,066 72,389 58,941
Net income $ 29,141 $ 26,041 $ 112,151 $ 100,710
Earnings per share:
Basic $ 0.35 $ 0.30 $ 1.33 $ 1.12
Diluted $ 0.34 $ 0.30 $ 1.30 $ 1.10
Weighted average shares
Basic 84,285 86,144 84,608 89,794
Diluted 86,323 88,062 86,465 91,704
Condensed Consolidated Balance Sheets (Unaudited)
Jun. 30, Jun. 30,
Cash, cash equivalents,
and marketable investment $ 454,224 $ 417,314
Trade receivables, net 60,441 50,272
Other receivables 2,660 575
Inventory, net 11,574 8,218
Prepaid expenses 1,713 2,949
Equipment and leasehold 24,231 23,080
Note receivable 19,000 —
Other assets 8,000 —
Intangibles, net 15,722 16,715
Goodwill 56,850 56,051
Deferred tax assets 36,220 35,653
Total assets $ 690,635 $ 610,827
Accounts payable and $ 42,913 $ 33,040
Deferred revenue 2,054 1,347
Uncertain tax benefits 10,008 9,648
Stockholders' equity 635,660 566,792
Total liabilities and $ 690,635 $ 610,827
CONTACT: Rebecca Chambers
Director, Investor Relations and Corporate Communications
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