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Pernix Therapeutics Holdings Reports Third Quarter 2010 Net Income of $2.4 Million Third Quarter Net Sales of $7.8 Million Increased Year-over-Year by 33%

MAGNOLIA, Texas, Nov 12, 2010 (BUSINESS WIRE) -- --Third Quarter Earnings per Diluted Share of $0.10 --Conference Call Scheduled for 11:00 AM ET Today Pernix Therapeutics Holdings, Inc. (NYSE Amex: PTX), an integrated specialty pharmaceutical company primarily focused on the pediatric market, today announced results for the three and nine months ended September 30, 2010.

Third Quarter 2010 Highlights Acquired Macoven Pharmaceuticals -- pharmaceutical company focused on the development of generic products and the sale of authorized generic products; recorded a pre-tax gain of $882,000 in connection with the acquisition; Continued IP Investment - acquired TCT control delivery technology; Increased Profitability -- income before taxes and non-controlling interest increased to $3,248,000; Strengthened Financial Position -- secured $10,000,000 revolving line of credit with Regions Bank that matures in September 2012; Authorized Share Repurchase -- repurchased 2,052,000 shares of common stock through open market purchases and a privately negotiated transaction with an employee; Maintained Strong Cash Position -- approximately $8,665,000 of cash, cash equivalents and restricted cash as of September 30, 2010.

For the third quarter of 2010, net sales increased by approximately 33% to approximately $7,779,000, compared to $5,825,000 for the prior-year quarter.

Income before taxes and non-controlling interest during the quarter was $3,248,000, compared to $1,106,000 in the prior-year period. The increase in net sales and income before taxes and non-controlling interest was primarily due to a higher volume of product sales attributable, in part, to territory expansion, and a one-time bargain purchase gain of $882,000 related to the acquisition of Macoven. The Company's after-tax income was approximately $2,386,000, or $0.10 per basic and diluted share for the third quarter of 2010 compared to $1,096,000, or $0.05 per basic and diluted share, in the prior-year quarter.

Cooper Collins, President and Chief Executive Officer of Pernix, stated, "Our results in the third quarter exceeded our expectations with year-over-year revenue growth of over 33% and earnings per share of $0.10. This growth reflects the quality of our current product portfolio, the performance of our sales force and our lean operating structure. During the quarter, we also further strengthened our balance sheet and expanded our operations. We acquired Macoven Pharmaceuticals, funding the transaction with an initial draw-down under our recently signed line of credit. Going forward, we believe Macoven will serve as a vital growth engine for the company as we strive to diversify our revenues through the addition of authorized generic products. Looking ahead, we believe Pernix remains well positioned to achieve profitable growth in sales for the year." For the nine months ended September 30, 2010, net sales increased by approximately 7% to approximately $21,010,000, compared to $19,574,000 for the prior-year period. The Company's income before taxes and non-controlling interest was approximately $7,866,000 for the nine months ended September 30, 2010, compared to $6,647,000 for the nine months ended September 30, 2009. This increase includes income related to the one-time bargain purchase gain from the acquisition of Macoven. Pernix's after-tax income was approximately $7,821,000, or $0.33 per share, compared to $6,739,000, or $0.32 per share, in the prior-year period. The after-tax income for the nine months ended September 30, 2010 includes one-time benefits associated with the termination of Pernix's "S" Corporation election and the recognition of net operating loss carry forwards associated with Pernix's March 10, 2010 reverse merger with Golf Trust of America, Inc.

As of September 30, 2010, the Company had $8,665,000 in cash, cash equivalents and restricted cash.

Conference Call Information Management will host a conference call today at 11:00 am ET to discuss its financial results for the three and nine month periods ended September 30, 2010.

The conference call will feature remarks from Cooper Collins, President and Chief Executive Officer, and Tracy Clifford, Chief Financial Officer. To participate in the live conference call, please dial (800) 474-8920 (U.S.) or (719) 325-2161 (International), and provide passcode 4054441. A live webcast of the call will also be available on the investor relations section of the Company's website, www.pernixtx.com. Please allow extra time prior to the webcast to register for the webcast and to download and install any necessary audio software.

A replay of the call will be available through November 25, 2010. To access the replay, please dial (888) 203-1112 (U.S.) or (719) 457-0820 (International), and providing passcode 4054441. An online archive of the webcast will be available on the Company's website for 30 days following the call.

About Pernix Therapeutics Holdings, Inc.

Pernix Therapeutics Holdings, Inc. is an integrated specialty pharmaceutical company primarily focused on serving the needs of the pediatric marketplace.

Commercially-proven branded product families include CEDAX(R), Brovex(R), Aldex(R), Pediatex(R), ReZyst(R), QuinZyme(R) and Z-Cof(R). The Company was originally founded in 1999 and is based in the Houston, TX metropolitan area.

Additional information about Pernix is available on the Company's website located at www.pernixtx.com.

Cautionary Notice Regarding Forward-Looking Statements The Company wishes to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. No assurances can be given regarding the future performance of the Company. The Company wishes to advise readers that factors could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake, and specifically declines any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Pernix Therapeutics Holdings, Inc.

Consolidated Balance Sheets

September 30,

December 31, 2009

2010

-------------

-----------------

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents $ 8,164,850

$ 4,578,476

Restricted cash 500,958

-

Accounts receivable, net 8,622,490

4,133,357

Inventory, net 4,185,269

1,081,970

Prepaid expenses and other current assets 1,154,870

1,625,719

Deferred tax assets - current 122,000

61,000

-------------

----------------- Total current assets 22,750,437

11,480,522 Property and equipment, net 1,183,013

139,456 Other assets:

Intangible assets, net of amortization 11,623,452

1,409,337

Deferred tax assets - long term 713,000

-

Other long-term assets 300,000

383,333

-------------

----------------- Total assets $ 36,569,902

$ 13,412,648

=============

=================

LIABILITIES

Current liabilities:

Accounts payable $ 406,786

$ 436,663

Accrued personnel expense 1,160,611

560,657

Accrued allowances 6,606,000

6,795,542

Income taxes payable 138,594

100,000

Other accrued expenses 1,068,300

101,196

Line of Credit 2,185,706

-

Contracts payable 5,620,806

42,382

-------------

----------------- Total current liabilities 17,186,803

8,036,440

Contracts payable - long term 2,100,000

-

Total liabilities 19,286,803

8,036,440

-------------

-----------------

Commitments and contingencies

STOCKHOLDERS' EQUITY

Common stock, $.01 par value, 90,000,000 shares authorized, 226,385

209,000 22,638,527 and 20,900,000 outstanding at September 30, 2010 and

December 31, 2009, respectively

Treasury stock (208,736 ) - Additional paid-in capital 5,257,641

788,979 Retained earnings 12,007,809

4,308,491

-------------

----------------- Total stockholders' equity 17,283,099

5,306,470

Non-controlling interest -

69,738

-------------

-----------------

Total equity 17,283,099

5,376,208

-------------

-----------------

Total liabilities and stockholders' equity $ 36,569,902

$ 13,412,648

=============

=================

PERNIX THERAPEUTICS HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended September 30 Nine Months Ended September 30,

--------------------------------- ---------------------------------

2010 2009 2010 2009

---------- ---------- ---------- ---------- Net sales $ 7,778,831 $ 5,825,215 $ 21,009,926 $ 19,573,610 Costs and expenses:

Cost of product sales (exclusive of amortization of product rights) 1,436,195 1,682,124 3,332,338 4,197,598 Selling expenses 1,399,106 946,017 4,004,496 3,659,575 General and administrative 2,106,103 1,333,986 5,378,832 3,714,181 Research and development 252,737 217,506 839,986 371,500 Royalties 205,307 488,948 205,307 839,225 Depreciation and amortization 300,004 57,413 558,973 171,945

---------- ---------- ---------- ----------

Total costs and expenses 5,699,452 4,725,994 14,319,932 12,954,024

---------- ---------- ---------- ----------

Income from operations 2,079,379 1,099,221 6,689,994 6,619,586

---------- ---------- ---------- ----------

Other income (expense):

Other income 277,387 1,000 277,762 10,659 Gain from bargain purchase 881,950 - 881,950 - Interest income, net 8,803 5,382 16,447 16,859

---------- ---------- ---------- ----------

Total other income, net 1,168,140 6,382 1,176,159 27,518

---------- ---------- ---------- ----------

Income before income taxes and non-controlling interest 3,247,519 1,105,603 7,866,153 6,647,104 Provision for income taxes/income tax benefit 861,747 (1,000 ) 45,374 (61,000 )

---------- ---------- - ---------- ---------- -

Net income before non-controlling interest 2,385,772 1,106,603 7,820,779 6,708,104 Net income(loss) attributable to non-controlling interest

- 10,775 - (30,839 )

---------- ---------- ---------- ---------- - Net income attributable to controlling interest $ 2,385,772 $ 1,095,828 $ 7,820,779 $ 6,738,943

===== ========== = ========== ===== ========== = ==========

Net income per share, basic $ 0.10 $ 0.05 $ 0.33 $ 0.32

===== ========== = ========== ===== ========== = ==========

Net income per share, diluted $ 0.10 $ 0.05 $ 0.33 $ 0.32

===== ========== = ========== ===== ========== = ==========

Weighted-average common shares, basic 24,389,689 20,900,000 23,634,913 20,900,000

========== ========== ========== ==========

Weighted-average common shares, diluted 24,416,859 20,900,000 23,655,691 20,900,000

========== ========== ========== ========== SOURCE: Pernix Therapeutics Holdings CONTACT: Pernix Therapeutics Holdings Tracy Clifford, Chief Financial Officer, 843-720-1501 or Investor Relations Contacts: The IGB Group Nick Rust/Lev Janashvili, 212-477-8439/212-227-7098; nrust@igbir.com, ljanashvili@igbir.com Copyright Business Wire 2010 -0- KEYWORD: United States

North America

Texas INDUSTRY KEYWORD: Health

Hospitals

Pharmaceutical SUBJECT CODE: Earnings

Conference Call

Webcast