Theragenics Corporation (NYSE: TGX), a medical device company serving
the surgical products and prostate cancer treatment markets, today
announced consolidated financial results for the fourth quarter and year
ended December 31, 2009. Consolidated results include the results of
NeedleTech Products, Inc. (“NeedleTech”) subsequent to its acquisition
by Theragenics on July 28, 2008. The terms "Company", "we", "us", or
"our" mean Theragenics Corporation and all entities included in our
consolidated financial statements.
“We delivered the highest annual revenue in our 29 year history”
Highlights
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Recorded consolidated revenue of $18.7 million in the fourth quarter
and $78.3 million for the full year.
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Achieved 17% organic revenue growth in our surgical products business
for the fourth quarter and 10% pro forma organic growth for the year,
compared to 2008.
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EPS for the quarter was $0.01, compared to a loss of $1.89 per share
in 2008. Excluding 2008 impairment charges, EPS was $0.01 in the
fourth quarter of 2008.
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EPS for the year was $0.09, compared to a loss of $1.77 per share in
2008. Excluding 2008 impairment charges, EPS was $0.13 for 2008.
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Completed the year with cash and cash equivalent of $45.3 million and
outstanding borrowings under our credit agreement of $30.3 million for
a net positive cash position of $15.0 million.
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Adjusted EBITDA was $13.1 million and cash flow from operations was
$11.6 million for 2009.
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In early 2010, we announced a supply and reseller agreement with Core
Oncology for our brachytherapy segment. Core is a recognized leader in
the brachytherapy industry. We expect Core to represent at least 10%
of our brachytherapy segment revenue in 2010.
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Research and Development (“R&D”) expenses increased $860,000 over
2008. This reflects investments to support future growth in the
surgical products segment, a strategic initiative that was launched in
late 2008.
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Continued our initiative to update and standardize our information
technology (“IT”) systems and infrastructure across all of our
businesses.
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Purchased a larger facility for increased capacity in our specialty
needle manufacturing. We expect to complete improvements and move to
this new facility in 2010.
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Capital expenditures were $5.0 million in 2009, reflecting our
investments in manufacturing capacity for our surgical products
business and in corporate wide IT.
Consolidated Results
Consolidated revenue for the quarter was $18.7 million, an increase of
3% over fourth quarter 2008. For the year, consolidated revenue was
$78.3 million, an increase of 16% over 2008. Our 2009 results include
the results of NeedleTech for the entire year. In 2008, NeedleTech
results were included subsequent to acquisition in July 2008. On a pro
forma basis, as if NeedleTech was included in the pre-acquisition period
in 2008, our consolidated revenue increased 1% in 2009 compared to 2008.
Net income for the fourth quarter of 2009 was $398,000 or $0.01 per
share compared to a net loss of $62.5 million, or a net loss of $1.89
per share in 2008. In the fourth quarter of 2008 we recorded impairment
charges primarily for goodwill of $62.9 million, net of tax. Excluding
2008 impairment charges, net earnings were $401,000 or $0.01 per share
in fourth quarter of 2008. For the year ended December 31, 2009, net
income was $3.1 million or $0.09 per share compared to a net loss of
$58.5 million or a net loss of $1.77 per share in 2008. Excluding 2008
impairment charges, net earnings were $4.3 million or $0.13 per share
for the year ended December 31, 2008. We had a number of items (other
than the 2008 impairment charges) affecting comparability between the
periods, including the following:
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Non-cash charges related to the NeedleTech acquisition of $295,000 in
the fourth quarter of 2008 and $885,000 for the year ended December
31, 2008 did not recur in 2009.
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Consolidated R&D expenses, including expenses related to our new R&D
group implemented in late 2008, increased by $860,000 in 2009 compared
to 2008.
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Interest income in the 2009 periods declined $134,000 in the fourth
quarter and $1.0 million for the year, compared to the 2008 periods.
This is primarily a result of the significant decline in returns on
our investments in cash, cash equivalents and marketable securities.
Segment Results
In 2009 we changed the manner in which we allocate the cost of corporate
activities to our business segments. Operating expenses associated with
corporate activities are now allocated based on the relative revenue of
each business segment. With the continued integration of our acquired
companies and the launch of the surgical products R&D program, we
believe this method more accurately reflects the utilization of
corporate resources. This is also the method we now use internally to
review results and allocate resources. Previously, a large portion of
expenses associated with corporate activities was charged to the
brachytherapy segment. Segment results for the 2008 periods have been
restated to reflect this change in the method of allocating corporate
expenses. This change had no effect on the consolidated results of
operations previously reported for the 2008 periods.
Surgical Products Segment