AMRI Announces Fourth Quarter 2012 Adjusted EPS of $0.17

           AMRI Announces Fourth Quarter 2012 Adjusted EPS of $0.17

  PR Newswire

  ALBANY, New York, Feb. 12, 2013

-- Provides Guidance for Full Year 2013 Adjusted EPS of $0.43 at Mid-Point

ALBANY, New York, Feb. 12, 2013 /PRNewswire/ -- AMRI (Nasdaq: AMRI) today
reported financial and operating results for the fourth quarter and full year
ended December 31, 2012.

(Logo: http://photos.prnewswire.com/prnh/20120229/NY61160LOGO )

Fourth Quarter:

  *Adjusted earnings per share of $0.17, an increase of $0.36 from the
    prior-year period
  *Contract revenue of $59.1 million, up 50% from the prior-year period with
    sequential revenue improvement in Discovery and Large Scale Manufacturing
    services
  *Contract margin improved to 18% from (2%) in the prior-year period

Full Year:

  *Adjusted earnings per share of $0.25, exceeding the top end of previously
    communicated guidance of $0.20 and a $0.67 improvement from 2011
  *Contract revenue of $189.9 million, up 12% from the prior year and above
    the top end of previously communicated guidance of 10% growth
  *Contract margin improved from 1% in 2011 to 12% for the full year 2012
  *Cash from operations of $15.3 million, with an increase in unrestricted
    cash and equivalents in the second half of 2012 of $9.9 million compared
    with the top end of previously communicated second half 2012 guidance of
    $6 million

Financial Guidance 2013:

  *Contract revenue growth between 8% and 12%
  *Continued improvement in contract margin to between 14% and 16%
  *Adjusted earnings per share range of $0.34 to $0.52

Adjusted EPS is a non-GAAP measure that excludes certain items detailed later
in this press release under the heading "Non-GAAP Adjustment Items."

Fourth Quarter 2012 Results

Total revenue for the fourth quarter of 2012 was $67.2 million, an increase of
44% compared to total revenue of $46.6 million reported in the fourth quarter
of 2011.

Total contract revenue for the fourth quarter of 2012 was $59.1 million, an
increase of 50% compared to total contract revenue of $39.4 million reported
in the fourth quarter of 2011. Total contract revenue encompasses revenue from
AMRI's Discovery Services, Development and Small Scale Manufacturing, and
Large Scale Manufacturing business components.

  *Discovery Services contract revenue for the fourth quarter was $10.6
    million, an increase of 12% from $9.5 million in 2011.
  *Development/Small Scale Manufacturing contract revenue for the fourth
    quarter was $10.4 million, an increase of 41% from $7.3 million in 2011.
  *Large Scale Manufacturing contract revenue for the fourth quarter was
    $38.1 million, an increase of 69% from $22.6 million in 2011.

Royalty revenue in the fourth quarter of 2012 was $8.1 million, an increase of
13% from $7.2 million in the fourth quarter of 2011. Royalty revenue for the
fourth quarter of 2012 includes royalties from the Allegra products as well as
$1.4 million earned by the company on net sales of a generic product for which
the company also manufactures the active pharmaceutical ingredient at its
Rensselaer, N.Y. facility.

Net income under U.S. GAAP was $1.9 million, or $0.07 per basic and diluted
share, in the fourth quarter of 2012, compared to a U.S. GAAP net loss of
$(24.4) million, or $(0.81) per basic and diluted share for the fourth quarter
of 2011. During the fourth quarter of 2012, net income under U.S. GAAP
includes the impact of non-cash long-lived asset impairment charges of $2.8
million, net of tax, or $0.09 per diluted share, and restructuring charges of
approximately $0.6 million, net of tax, or $0.02 per diluted share, primarily
related to the company's previously announced decision to close its Bothell,
WA facility. Net income on an adjusted basis was $5.1 million or $0.17 per
basic and diluted share.

Full Year 2012 Results

Total revenue for the full year was $226.7 million, an increase of $19.1
million or 9% compared to $207.6 million in 2011.

Total contract revenue for the full year was $189.9 million, an increase of
$20.3 million or 12% from 2011.

  *Contract revenue for Discovery Services for the full year was $37.8
    million, essentially flat with 2011.
  *Contract revenue for Development/Small Scale Manufacturing for the full
    year was $35.7 million, essentially flat with 2011.
  *Contract revenue for Large Scale Manufacturing for the full year was
    $116.4 million, an increase of 22% compared to $95.6 million in the prior
    year 2011.

Royalty revenue for the full year 2012 was $36.0 million, an increase of 3%
from $35.0 million in 2011. Royalty revenue for the full year 2012 includes
$4.7 million earned by the company on net sales of a generic product for which
the company also manufactures the active pharmaceutical ingredient at its
Rensselaer, N.Y. facility.

Total revenue for the full year 2012 and 2011 includes milestone revenue of
$0.8 million and $3.0 million, respectively, primarily related to the
company's 2005 licensing agreement with Bristol-Myers Squibb (BMS).

Net loss under U.S. GAAP was $(3.8) million or $(0.12) per basic and diluted
share, compared to a net loss of $(32.3) million or $(1.08) per basic and
diluted share in 2011. For 2012, net loss under U.S. GAAP includes the impact
of non-cash long-lived asset impairment charges of $6.7 million, net of tax,
or $0.22 per diluted share, and restructuring charges of approximately $4.2
million, net of tax, or $0.14 per diluted share, related to the company's
realignment of its global Discovery Services platform. Net income on an
adjusted basis for the year ended December 31, 2012 was $7.5 million or $0.25
per basic and diluted share.

For a reconciliation of net income (loss) and income (loss) per diluted share
as reported to adjusted net income (loss) and adjusted income (loss) per
diluted share for the 2012 and 2011 reporting periods, please see Table 1 at
the end of this press release.

AMRI Chairman, President and CEO Thomas E. D'Ambra said, "We are pleased to
report fourth quarter and full year results for 2012, which reflect operating
improvements largely driven by the record performance in our Large Scale
Manufacturing business. In addition, a number of actions taken in prior
periods are demonstrating a positive impact on our bottom line. Our overall
performance for fiscal year 2012 demonstrates the consistent and positive
direction our company is moving as we continue to position and integrate our
global facilities and high quality services. Although discovery and early
development demand continues to be soft relative to prior periods, we have
also delivered progress and entered into new relationships that hold promise
for future growth. We are building key long-term relationships with customers
that will benefit us in 2013 and beyond. Led by the AMRI SMARTSOURCING™
strategy implemented in the first quarter of 2012, AMRI is well positioned to
maintain positive momentum into 2013 and, most importantly, support and help
our customers discover, develop and bring to market the exciting drugs of
today and tomorrow."

"As we enter 2013 and look beyond as well, we are optimistic about our ability
to lead the industry to new business models and relationships, and we are
encouraged by the decisions we made throughout 2012 to set us on the right
path to continued profitability," added Dr. D'Ambra.

Liquidity and Capital Resources

At December 31, 2012, AMRI had cash, cash equivalents, and restricted cash of
$28.5 million, compared to $20.2 million at December 31, 2011. These amounts
in 2012 include $5.2 million of restricted cash, $5.0 million of which was
pledged to collateralize the company's term loan and line of credit.

Total debt at December 31, 2012 was $8.0 million compared to $5.8 million at
December 31, 2011. Cash, cash equivalents, and restricted cash, net of debt,
was $20.5 million at December 31, 2012, compared to $14.4 million at December
31, 2011. The increase since 2011 was primarily due to cash provided by
operations of $15.3 million and debt proceeds net of principal payments of
$2.2 million, partially offset by capital expenditures of $9.9 million. Total
common shares outstanding, net of treasury shares, were 30,914,890 at December
31, 2012.

2013 Financial Guidance

AMRI Chief Financial Officer and Treasurer Michael Nolan provided guidance for
the first quarter and full year 2013. "In the first quarter, we expect
contract revenue to range from $40.5 million to $43.5 million with contract
margin to approximate 12% at the mid-point, and adjusted earnings per share of
between $0.08 and $0.12. For the full year 2013, we expect contract revenue to
range from $205 million to $213 million, an increase of up to 12% versus 2012,
with contract margin to approximate 15% at the mid-point and adjusted earnings
per share of between $0.34 and $0.52."

Mr. Nolan added, "As evidenced by today's financial update, AMRI continues to
benefit from the continued focus on key priorities, including improving
operating margins excluding royalties and milestones, leveraging our global
assets through our integrated and flexible business models, and our strategic
relationships with customers."

2012 Full Year Highlights

During 2012, AMRI had many noteworthy accomplishments including the following:

Sales Agreements

  *Announced the extension of a commercial supply relationship with GE
    Healthcare for Aminobisamide Hydrochloride (ABA). Under the terms of the
    agreement, which positions AMRI as a strategic supplier to GE Healthcare,
    AMRI continues to be the primary supplier of ABA, an intermediate material
    used in diagnostic imaging agents.
  *Announced a multi-year supply agreement with Shire US Manufacturing Inc.,
    which extends a previously existing agreement between the two companies.
  *Entered into a new strategic agreement with Knopp Biosciences LLC to
    provide various discovery-related services that include medicinal
    chemistry, DMPK and computer-aided drug discovery (CADD).
  *Selected by Biota Holdings Limited to further develop and manufacture the
    influenza antiviral CS8958 (laninamivir), a second-generation, long-acting
    neuraminidase inhibitor.

Business Activities

  *Announced the addition of a new royalty stream in the third quarter based
    on a longstanding contract with Actavis Inc. for the production of
    amphetamine salts, with the royalty stream expected to continue until
    November 2017.
  *Announced further actions to expand and better integrate in vitro biology
    services with the total drug discovery service platform. As a result of
    shifting market preferences related to integrated drug discovery
    activities, AMRI is further optimizing its location footprint by closing
    its Bothell, WA site and co-locating key biology capabilities with our
    chemistry in Singapore.
  *The company announced the completion of the relocation of custom library
    synthesis resources and capabilities to the Hyderabad Research Centre from
    the company's closed Budapest, Hungary operations.
  *Launched AMRI SMARTSOURCING™ branding campaign and corporate strategy; an
    evolution of AMRI's business model that utilizes the full range of
    services, global facilities and industry-leading expertise with the goal
    of delivering strategic sourcing options and more successful outcomes for
    our customers.
  *Announced that the Medicines and Healthcare Regulatory Agency (MHRA) of
    the UK government issued a Good Manufacturing Practice (GMP) certificate
    for AMRI's manufacturing facility in Holywell, Wales, UK, following an
    inspection in October 2011.

Key Leadership Changes

  *Appointed Michael Nolan, to Vice President, Chief Financial Officer and
    Treasurer.
  *Promoted Steven R. Hagen, Ph.D., to Senior Vice President of
    Pharmaceutical Development and Manufacturing.
  *Promoted Richard A. Saffee to Vice President and General Manager of Large
    Scale Manufacturing.
  *Combined the North American Discovery and Development teams into one
    functional sales organization, under the leadership of Christopher Conway,
    who was promoted to Vice President, Business Development, North America.
  *Promoted Louis Garguilo to Vice President, Business Development, who
    assumed responsibility for AMRI's marketing communications activities in
    addition to his responsibility for AMRI's business development activity in
    the Japan/Asia Pacific markets.

Fourth Quarter Conference Call

The company will hold a conference call at 10:00 a.m. ET on Tuesday, February
12, 2013 to discuss its quarterly results, business highlights and prospects.
During the conference call, the company may discuss information not previously
disclosed to the public. The conference call can be accessed by dialing
+1-888-438-5535 (domestic calls) or +1-719-325-2455 (international calls) at
9:50 a.m. ET and entering passcode 2539488. The webcast will be available live
via the Internet and can be accessed on the company's website at
www.amriglobal.com . Replays of the webcast can also be accessed for up to 90
days after the call via the investor area of the company's website at
www.amriglobal.com/investor_relations/ .

About AMRI

Albany Molecular Research, Inc. (AMRI) is a global contract research and
manufacturing organization offering customers fully integrated drug discovery,
development, and manufacturing services. For over 21 years AMRI has
demonstrated its adaptability as the pharmaceutical and biotechnology
industries have undergone tremendous change in response to multiple
challenges. This experience, a track record of success and locations in the
United States, Europe and Asia now provides our customers with SMARTSOURCING™,
a full range of value-added opportunities providing customers informed
decision-making, enhanced efficiency and more successful outcomes at all
stages of the pipeline. AMRI has also successfully partnered R&D programs and
is actively seeking to out-license its remaining programs for further
development.

Forward-looking Statements

This press release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 that involve risks and
uncertainties. These statements include, but are not limited to, statements
regarding the company's estimates of revenue, margins and earnings per share
for the first quarter and full year 2013, statements made by the company's
chief executive officer and chief financial officer, including statements
under the caption "2013 Financial Guidance," statements regarding multi-year
deals, statements regarding the partnering or out-licensing of the company's
proprietary compounds, statements regarding the strength of the company's
business and prospects, statements regarding the actions taken to reduce cost
and improve operating performance, and statements concerning the company's
momentum and long-term growth, including expected results for 2013. Readers
should not place undue reliance on our forward-looking statements. The
company's actual results may differ materially from such forward-looking
statements as a result of numerous factors, some of which the company may not
be able to predict and may not be within the company's control. Factors that
could cause such differences include, but are not limited to, the company's
ability to attract and retain experienced scientists; trends in pharmaceutical
and biotechnology companies' outsourcing of chemical research and development,
including softness in these markets; sales of Allegra® and the impact of the
"at-risk" launch of generic Allegra® and the OTC conversion of Allegra® on the
company's receipt of significant royalties under the Allegra® license
agreement; the success of the sales of other products for which the Company
receives royalties; the over-the-counter sale of Claritin, and competitive
alternatives, including generic products for the treatment of allergies and
the risk of new product introductions for the treatment of allergies including
generic forms of Allegra®; the risk that the company will not be able to
replicate either in the short or long term the revenue stream that has been
derived from the royalties payable under the Allegra® license agreements; the
success of the company's collaborations with customers including the
collaboration with Bristol-Myers Squibb Company related to biogenic amine
reuptake inhibitors; the risk that clients may terminate or reduce demand
under any strategic or multi-year deal; the company's ability to enforce its
intellectual property and technology rights; the company's ability to obtain
financing sufficient to meet its business needs and to meet the covenants set
forth in its agreements or to negotiate a waiver or amendment with its
lenders; the company's ability to successfully partner or out-license novel
compounds and lead candidates in its collaborative arrangements; the company's
ability to successfully comply with heightened FDA scrutiny on aseptic
fill/finish operations; the company's ability to integrate the acquisitions
closed during 2010 and make such acquisitions accretive to the company's
business model, the company's ability to take advantage of proprietary
technology and expand the scientific tools available to it, the ability of the
company's strategic investments and acquisitions to perform as expected, as
well as those risks discussed in the company's Annual Report on Form 10-K for
the year ended December 31, 2011 as filed with the Securities and Exchange
Commission on March 15, 2012, and the company's other SEC filings. Revenue,
adjusted EPS and other financial guidance offered by senior management today
represent a point-in-time estimate and are based on information as of the date
of this press release. Senior management has made numerous assumptions in
providing this guidance which, while believed to be reasonable, may not prove
to be accurate. Numerous factors, including those noted above, may cause
actual results to differ materially from the guidance provided. The company
expressly disclaims any current intention or obligation to update the guidance
provided or any other forward-looking statement in this press release to
reflect future events or changes in facts assumed for purposes of providing
this guidance or otherwise affecting the forward-looking statements contained
in this press release.

Non-GAAP Adjustment Items

To supplement our financial results prepared in accordance with U.S. GAAP, we
have presented non-GAAP measures of income (loss) from operations, net income
(loss) and income (loss) per diluted share, as adjusted to exclude certain
goodwill and long-lived asset impairment charges, restructuring charges,
executive transition costs, purchase accounting adjustments, FDA remediation
costs, arbitration charges, real property tax adjustments and deferred
financing write-offs in the 2011 and 2012 periods. Projected 2013 adjusted EPS
will exclude the expense associated with expected 2013 restructuring and asset
impairment charges related to our previously announced exits from our Hungary
and Bothell, WA sites. Exclusion of the restructuring and asset impairment
expenses allows comparisons of operating results that are consistent over
time. We believe presentation of these non-GAAP measures enhances an overall
understanding of our historical financial performance because we believe they
are an indication of the performance of our base business. Management uses
these non-GAAP measures as a basis for evaluating our financial performance as
well as for budgeting and forecasting of future periods. For these reasons, we
believe they can be useful to investors. The presentation of this additional
information should not be considered in isolation or as a substitute for
income (loss) from operations, net income (loss) or income (loss) per diluted
share prepared in accordance with U.S. GAAP. Reconciliations of these
non-GAAP measures to the most directly comparable GAAP financial measures are
set forth in Table 1. Our projected 2013 adjusted EPS, however, is only
provided on an adjusted basis. It is not feasible to provide GAAP EPS
guidance because the items excluded are difficult to predict and estimate and
are primarily dependent on future events.

    Albany Molecular Research, Inc. Condensed Consolidated Statements of
                           Operations (unaudited)
                             ThreeMonthsEnded            Year Ended
 (Dollars in thousands,
  except for per share     December   December 31,   December   December 31,
          data)            31, 2012       2011       31, 2012       2011
Contract revenue           $ 59,131     $ 39,412  $ 189,858     $ 169,611
Recurring royalties            8,081         7,180      35,988        35,034
Milestone revenue                  ─             ─         840         3,000
Total revenue                 67,212        46,592     226,686       207,645
Cost of contract revenue      48,483        40,354     168,064       168,470
Technology incentive
award                            670           718       3,143         3,557
Research and development         106         1,817         906         7,939
Selling, general and
administrative                10,443         9,368      40,904        41,071
Restructuring charges            889           320       4,632         1,271
Impairment charges             4,367        21,342       8,334        21,342
Arbitration charge                 ─             ─           ─           127
Total operating expenses      64,958        73,919     225,983       243,777
Income (loss) from
operations                     2,254      (27,327)         703      (36,132)
Interest expense, net           (90)         (256)       (454)         (583)
Other income (expense),
net                              971          (57)       (130)            77
Income (loss) before
income taxes                   3,135      (27,640)         119      (36,638)
Income tax expense
(benefit)                      1,219       (3,231)       3,896       (4,342)
Net income (loss)          $  1,916   $ (24,409)  $ (3,777)  $ (32,2967)
Basic and diluted income
(loss) per share           $  0.07    $  (0.81)  $  (0.12)   $  (1.08)

  Albany Molecular Research, Inc. Selected Consolidated Balance Sheet Data
                                 (unaudited)
                                          December 31, 2012 December 31, 2011
(Dollars in thousands, except for per
share data)
Cash and cash equivalents                        $  23,293         $ 20,198
Restricted cash                                         702                 0
Accounts receivable, net                             42,496            30,437
Royalty income receivable                             8,180             6,819
Inventory                                            28,216            26,004
Total current assets                                113,424           100,560
Restricted cash                                       4,524                 0
Property and equipment, net                         135,519           149,796
Total assets                                        262,862           263,067
Total current liabilities                            35,986            37,976
Longterm debt, excluding current
installments                                          7,227             3,003
Total liabilities                                    56,721            56,633
Total stockholders' equity                          206,141           206,434
Total liabilities and stockholders'
equity                                              262,862           263,067

Table 1: Reconciliation of fourth quarter and full year 2012 and 2011 reported
income (loss) from operations, net income (loss) and earnings (loss) per
diluted share to adjusted income (loss) from operations, adjusted net income
(loss) and adjusted earnings (loss) per share:

                           Fourth
                          Quarter       Fourth     YTD December  YTD December
                            2012     Quarter 2011    31, 2012      31, 2011
Income (loss) from
operations, as reported  $  2,254  $  (27,327)        $ 703   $ (36,132)
Impairment charges            4,367        21,342         8,275        21,342
Restructuring charges           889           320         4,632         1,271
Executive transition
costs                           396             -         1,397             -
FDA remediation costs            23            17            23           632
Arbitration charges               -             -             -           127
Real property tax
credit adjustment                 -             -             -           375
Income (loss) from
operations, as adjusted       7,929   $  (5,648)    $  15,030   $ (12,385)
Net income (loss), as
reported                  $  1,916  $  (24,409)    $ (3,777)   $ (32,296)
Adjustments, net of tax
where applicable:
Impairment charges            2,839        18,466         6,709        18,466
Restructuring charges           609           208         4,166           835
Executive transition
costs                           257             -           908             -
FDA remediation costs         (166)          (73)         (182)           327
Arbitration charges               -             -             -            83
Real property tax
credit adjustment                 -             -             -           245
Settlement of
acquisition related
contingency                   (358)             -         (460)         (190)
Write-off of deferred
financing                         -             -           120             -
Net income (loss), as
adjusted                 $  5,097   $  (5,808)     $  7,484   $ (12,530)
Income (loss) per
diluted share, as
reported                  $  0.07   $  (0.81)     $ (0.12)    $  (1.08)
Adjustments , net of
tax:
Impairment charges             0.09          0.61          0.22          0.62
Restructuring charges          0.02          0.01          0.14          0.03
Executive transition
costs                          0.01                        0.03             -
FDA remediation costs        (0.01)             -        (0.01)          0.01
Arbitration charges               -             -             -             -
Real property tax
credit adjustment                 -             -             -          0.01
Settlement of
acquisition related
contingency                  (0.01)             -        (0.01)        (0.01)
Write-off of deferred
financing                         -             -             -             -
Net income (loss) per
diluted share, as
adjusted                 $   0.17   $  (0.19)      $  0.25   $  (0.42)

Website: http://www.amriglobal.com
Contact: Investors - Michael Nolan, AMRI Chief Financial Officer,
+1-518-512-2261, or Media - Gina Monari, AMRI Communications, +1-518-512-2512
 
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