KV Pharmaceuticals reports net revenues up 15% at $98.4 million for first quarter of fiscal 2007

By Lisa Kerner

Charlotte, N.C., Aug. 8 - KV Pharmaceutical Co. said for the first quarter of fiscal 2007 ended June 30, it reported net revenues of $98.4 million, a 15% increase from $85.5 million for the prior-year period.

Net income for the first quarter was up at $9.9 million, or $.18 per diluted share, compared to a net loss of $21.9 million, or $.45 per share, for the first-quarter fiscal 2006.

KV said the prior-year loss included a write-off of $30.4 million of in-process research and development related to an endometriosis product acquisition.

Operating income for the quarter was up at $16.2 million, compared to an operating loss of $17.3 million reported for the first quarter of fiscal 2006.

The company held cash and marketable securities of $210.3 million at the end of the quarter. Cash flow from operating activities improved to $18.0 million for the recent quarter compared to $6.5 million in last year's first quarter.

"KV delivered a solid first quarter with improved operating profitability, led by continued revenue strength at Ther-Rx and revenue growth from Ethex despite a difficult operating environment," chief executive officer Marc S. Hermelin said in a news release.

Ther-Rx net revenues for the first quarter increased 37% to $44.1 million, from $32.2 million in the first quarter of fiscal 2006.

KV said it increased its credit facility during the quarter to $320 million, from $140 million, with a new credit agreement with a consortium of 10 banks. The revolving commitment may be extended by up to an additional $50 million. Interest currently is charged at the lower of the prime rate or LIBOR plus 62.5 to 150 basis points.

The company said the increased access to capital provides flexibility for potential acquisitions and pipeline development.

KV is an integrated specialty pharmaceutical company based in St. Louis.

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