ANI Pharmaceuticals Reports Net Revenues of $7.8 million, adjusted Non-GAAP EBITDA of $1.7 Million, and EPS of $0.13 for the

 ANI Pharmaceuticals Reports Net Revenues of $7.8 million, adjusted Non-GAAP
EBITDA of $1.7 Million, and EPS of $0.13 for the Third Quarter Ended September
                                   30, 2013

PR Newswire

BAUDETTE, Minn., Nov. 7, 2013

BAUDETTE, Minn., Nov. 7, 2013 /PRNewswire/ -- ANI Pharmaceuticals, Inc.
(NASDAQ: ANIP) today reported results for the three and nine months ended
September 30, 2013.

Third quarter and year-to-date highlights include:

  oThird quarter net revenues of $7.8 million, reflecting an increase of 56%
    versus $5.0 million for the same period in 2012.
  oThird quarter net income from continuing operations of $1.0 million and
    third quarter EPS of $0.13.
  oThird quarter adjusted non-GAAP net income from continuing operations of
    $1.5 million and adjusted non-GAAP EPS from continuing operations of
    $0.16.
  oThird quarter adjusted non-GAAP EBITDA of $1.7 million, reflecting an
    increase of 539% versus the prior year period.
  oANI announced an agreement for the development and marketing of an oral
    soft gel prescription product with Sofgen Pharmaceuticals.
  oYear-to-date net revenues of $19.5 million increased 30% versus $15.0
    million in the first nine months of 2012.
  oYear-to-date adjusted non-GAAP EBITDA of $3.6 million increased 107% over
    the prior year period.

Net revenues and       Three months ended         Nine months ended
Adjusted Non-GAAP
EBITDA                 September 30,             September 30,
                       2013         2012          2013           2012
Net revenues           $ 7,836,222 $ 5,036,024  $ 19,549,670  $ 15,049,619
Adjusted Non-GAAP      $ 1,692,667 $   264,962 $  3,579,067 $  1,728,030
EBITDA^(a)

^(a) See Table 2 for US GAAP reconciliation.

Arthur S. Przybyl, President and CEO, stated, "Our revenues continue to
exhibit strong organic growth, increasing by 56% to $7.8 million in the third
quarter. At the same time, our cost of sales decreased by 12 percentage
points, from 46% to 34%, as we continue to grow sales in our higher margin
products. We expect our fourth quarter 2013 revenues to exceed $9 million.
ANI will begin to hold quarterly conference calls when we announce our fourth
quarter and year end results."

Third Quarter Results

For the three months ended September 30, 2013, ANI Pharmaceuticals, Inc.
("ANI") reported net revenues of $7.8 million, an increase of 56% from $5.0
million for the same period last year. The increase in revenues was primarily
due to a 93% increase in net prescription sales, from $3.3 million to $6.4
million. This was partially offset by a 16% decrease in contract sales and
royalties from $1.7 million to $1.5 million.

Adjusted non-GAAP EBITDA was $1.7 million for the three months ended September
30, 2013, compared to $265,000 for the same period in the prior year, an
increase of 539%.

Cost of sales decreased as a percentage of net sales to 34% from 46%,
primarily due to a favorable shift in sales mix toward higher margin products.

Research and development costs increased by 205% to $454,000 for the three
months ended September 30, 2013, from $149,000 in the prior year period, due
to increased spending on development activities.

Selling, general and administrative ("SG&A") expenses and salaries and
benefits increased to $3.5 million for the three months ended September 30,
2013 from $2.5 million in the prior year period. The increase was primarily
due to merger-related expenses totaling $501,000, increases in personnel, as
well as consulting, legal and other fees related to becoming a public company.

Operating income was $810,000 for the three months ended September 30, 2013,
which included $501,000 of merger-related expenses.

Net income from continuing operations was $1.0 million for the three months
ended September 30, 2013, which included $501,000 of merger-related expenses.
Excluding those expenses, adjusted non-GAAP net income from continuing
operations was $1.5 million and adjusted non-GAAP earnings per share from
continuing operations was $0.16 (see Table 3 for US GAAP reconciliation) .

Results for Nine Months ended September 30, 2013

For the nine months ended September 30, 2013, ANI reported net revenues of
$19.5 million, an increase of 30% from $15.0 million for the same period last
year. The increase in revenues was primarily due to a 59% increase in net
prescription sales, from $8.7 million to $13.8 million. This was partially
offset by a 10% decrease in contract sales and royalties, from $6.3 million to
$5.7 million.

Adjusted non-GAAP EBITDA was $3.6 million for the nine months ended September
30, 2013, compared to $1.7 million for the same period in the prior year, an
increase of 107%.

Cost of sales decreased as a percentage of net sales to 36% from 42%,
primarily due to a favorable shift in sales mix toward higher margin products.

Research and development costs increased by 87% to $1.2 million in the nine
months ended September 30, 2013, from $637,000 in the prior year, due to
increased spending on development activities. ANI filed one ANDA during the
period. 

SG&A expenses and salaries and benefits increased to $13.0 million from $6.5
million. The increase was primarily due to merger-related non-cash equity
bonuses paid to ANI executives of $4.4 million, consistent with the Company's
belief in employee ownership to further alignment with shareholders, and $1.1
million in merger-related expenses.

Operating loss was $2.6 million for the nine months ended September 30, 2013,
which included $5.5 million of merger-related expenses.

Net loss from continuing operations was $3.3 million for the nine months ended
September 30, 2013, which included $6.2 million of merger-related expenses.

Selected Balance Sheet Data

                        September 30, December 31,
                        2013           2012
Cash                    $ 10,929,806  $    11,028
Restricted Cash         $  2,260,100 $         -
Non-cash Current Assets $ 12,904,853  $ 8,555,279
Total Current Assets    $ 26,094,759  $ 8,566,307
Current Liabilities     $  6,597,023 $ 7,711,082
Current Ratio           4.0            1.1

As a result of the merger with BioSante, ANI's balance sheet strengthened
considerably, with $10.9 million of unrestricted cash at September 30, 2013,
increased from $11,000 at December 31, 2012. Additionally, as of September 30,
2013, ANI had retired all of its debt. ANI's non-cash current assets increased
by $4.3 million due primarily to increases in accounts receivable, resulting
from increased sales for the quarter. ANI's working capital ratio increased to
4.0 at September 30, 2013, from 1.1 at December 31, 2012.

Total shares issued and outstanding at September 30, 2013 were 9.5 million.

ANI Product Development Pipeline

Products     ANI  Partnered  Total
At FDA       5    1          6
Development  1    5          6

The pipeline includes extended-release products, narcotics, anti-cancers, oral
solutions, suspensions and solid dosage forms. These twelve generic products
address a total annual market size of approximately $771 million, based on
data from IMS Health.

Non-GAAP Financial Measures

Adjusted Non-GAAP EBITDA

ANI considers adjusted non-GAAP EBITDA to be an important financial indicator
of ANI's operating performance, providing investors and analysts with a useful
measure of continuing operation results unaffected by merger-related expenses
and differences in capital structures, tax structures, capital investment
cycles, ages of related assets and compensation structures among otherwise
comparable companies. Management uses adjusted non-GAAP EBITDA when analyzing
Company performance.

Adjusted non-GAAP EBITDA is defined as operating income/(loss) from continuing
operations, excluding depreciation, amortization, and merger-related operating
expenses. Adjusted non-GAAP EBITDA should be considered in addition to, but
not in lieu of, net income or loss reported under GAAP. A reconciliation of
adjusted non-GAAP EBITDA to the most directly comparable GAAP financial
measure is provided in Table 2.

Adjusted Non-GAAP Net Income and EPS from Continuing Operations

ANI uses adjusted non-GAAP net income and earnings per share from continuing
operations to analyze the Company's performance and to provide investors and
analysts with useful measures of continuing operations results unaffected by
merger-related expenses.

Adjusted non-GAAP net income and earnings per share from continuing operations
is defined as net income/(loss) from continuing operations excluding
merger-related expenses. Adjusted non-GAAP net income and earnings per share
from continuing operations should be considered in addition to, but not in
lieu of, net income or loss reported under GAAP. A reconciliation of adjusted
non-GAAP net income and earnings per share from continuing operations to the
most directly comparable GAAP financial measure is provided in Table 3.

About ANI

ANI is an integrated specialty pharmaceutical company developing,
manufacturing, and marketing branded and generic prescription pharmaceuticals.
In two facilities with combined manufacturing, packaging and laboratory
capacity totaling 173,000 square feet, ANI manufactures oral solid dose
products, as well as liquids and topicals, including narcotics and those that
must be manufactured in a fully contained environment due to their potency
and/or toxicity. ANI also performs contract manufacturing for other
pharmaceutical companies. Over the last two years ANI has launched three new
products and has eleven products in development. ANI's targeted areas of
product development include narcotics, anti-cancers and hormones (potent
compounds), and extended release niche generic product opportunities. ANI's
other products include an FDA-approved testosterone gel, which is licensed to
Teva Pharmaceuticals USA. For more information please visit our website
www.anipharmaceuticals.com.

Forward-Looking Statements

To the extent any statements made in this release deal with information that
is not historical; these are forward-looking statements under the Private
Securities Litigation Reform Act of 1995. Such statements include, but are not
limited to, statements about the potential benefits of the recent merger
between BioSante Pharmaceuticals, Inc. and ANIP Acquisition Company,
statements about the Company's plans, objectives, expectations and intentions
with respect to future operations and products, the anticipated financial
position, operating results and growth prospects of the Company and other
statements that are not historical in nature, particularly those that utilize
terminology such as "anticipates," "will," "expects," "plans," "potential,"
"future," "believes," "intends," "continue," other words of similar meaning,
derivations of such words and the use of future dates. Forward-looking
statements by their nature address matters that are, to different degrees,
uncertain. Uncertainties and risks may cause the Company's actual results to
be materially different than those expressed in or implied by such
forward-looking statements. Particular uncertainties and risks include, among
others, the risk that the Company may in the future be required to seek FDA
approval for its unapproved products or withdraw such products from the
market; the Company may fail to meet NASDAQ listing requirements; general
business and economic conditions; the Company's need for and ability to obtain
additional financing; the difficulty of developing pharmaceutical products,
obtaining regulatory and other approvals and achieving market acceptance; and
the marketing success of the Company's licensees or sublicensees. More
detailed information on these and additional factors that could affect the
Company's actual results are described in the Company's filings with the
Securities and Exchange Commission, including its most recent annual report on
Form 10-K and quarterly report on Form 10-Q, as well as its proxy
statement/prospectus, filed with the Securities and Exchange Commission on May
8, 2013. All forward-looking statements in this news release speak only as of
the date of this news release and are based on the Company's current beliefs
and expectations. ANI undertakes no obligation to update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.

For more information about ANI, please contact:
Arthur S. Przybyl
(218) 634-3608
arthur.przybyl@anipharmaceuticals.com



ANI Pharmaceuticals, Inc.
Table 1: US GAAP Income Statement
(unaudited)
                          Three months ended        Nine months ended
                          September 30,             September 30,
                          2013        2012          2013           2012
Net Revenues              $7,836,222  $5,036,024    $19,549,670    $15,049,619
Operating Expenses
 Cost of sales (excl.
depreciation and          2,629,119   2,321,773     7,066,195      6,292,377
amortization)
Salaries and benefits   1,729,066   1,291,667     8,699,638      3,516,427
Freight                 81,416      80,622        224,189        242,814
Research and            453,897     148,650       1,187,461      636,726
development
Selling, general and    1,750,734   1,256,754     4,261,182      2,961,649
administrative
 Depreciation and        381,699     143,959       672,828        425,238
amortization
 Total Operating        7,025,931   5,243,425     22,111,493     14,075,231
Expenses
 Operating
Income/(Loss) from
           810,291     (207,401)     (2,561,823)    974,388
Continuing Operations
Other Income/(Expense)
Interest expense       -           (81,225)      (466,902)      (1,239,137)
 Other                  147,563     (91,205)      (336,393)      (190,605)
income/(expense)
 Net Income/(Loss)
from
 Continuing
Operations
 Before Income   957,854     (379,831)     (3,365,118)    (455,354)
Tax Benefit
Income tax benefit        82,852      866           82,852         36,327
Net Income/(Loss) from
 Continuing      1,040,706   (378,965)     (3,282,266)    (419,027)
Operations
Discontinued Operation
Gain on
discontinued operation,   150,337     1,617         150,337        67,793
net of tax
 Net Income/(Loss)  $1,191,043  $ (377,348)  $ (3,131,929)  $ 
                                                                   (351,234)
Basic and Diluted
Earnings (Loss) Per
Share
 Continuing operations  $        $ (1,295.82)  $          $ 
                          0.11                     (2.31)         (4,689.38)
 Discontinued           0.02        0.72          0.04           66.99
operation
Basic and Diluted        $                      $          $ 
Earnings (Loss) Per       0.13       $ (1,295.10)  (2.27)         (4,622.39)
Share
Basic and Diluted
Weighted- Average Shares  9,480,206   2,243         3,578,178      1,012
Outstanding



ANI Pharmaceuticals, Inc.
Table 2: Adjusted EBITDA Calculation and US GAAP to Non-GAAP Reconciliation
(unaudited)
                                Three months ended     Nine months ended
                                September 30,          September 30,
                                2013       2012        2013          2012
Operating Income/(Loss) from   $810,291   ($207,401)  ($2,561,823)  $974,388
 Continuing Operations
Add back
 Depreciation and             381,699    143,959     672,828       425,238
amortization
Merger-related expenses,     500,677    328,404     5,468,062     328,404
not already added back
Adjusted EBITDA                 1,692,667  264,962     3,579,067     1,728,030



ANI Pharmaceuticals, Inc.
Table 3: Adjusted Net Income and EPS from Continuing Operations Calculation
and US GAAP to Non-GAAP Reconciliation
(unaudited)
                                             Three months ended
                                             September 30,
                                             2013
                                                          Per Share Amounts
Net Income from Continuing Operations        $1,040,706   $         
                                                          0.11
Add back
 Merger-related expenses                  500,677      0.05
Adjusted Net Income from Continuing          $1,541,383   $         
Operations                                                0.16

SOURCE ANI Pharmaceuticals, Inc.

Website: http://www.anipharmaceuticals.com
 
Press spacebar to pause and continue. Press esc to stop.