SUNRISE, Fla., Feb. 28 /PRNewswire-FirstCall/ -- NationsHealth,
Inc. (Nasdaq: NHRX; NHRXW; NHRXU) today announced its financial
results for the three months and year ended December 31, 2005.
Revenue for the three months ended December 31, 2005 increased 13%
to $25.2 million from $22.3 million for the same period in 2004.
Net loss for the three months ended December 31, 2005 was $17.9
million, or $0.67 per share, compared to a net loss of $18.2
million, or $0.70 per share, for the same period in 2004. For the
year ended December 31, 2005, revenue increased 18% to $87.6
million from $74.2 million in 2004. Net loss for 2005 was $19.8
million, or $0.75 per share, compared to a net loss of $26.4
million, or $1.01 per share in 2004. Results for 2005 reflect the
operations of the Company's respiratory division through its sale
date, September 2, 2005, as well as a $15.5 million gain on the
sale of the division. Results also reflect a loss of approximately
$12.0 million, before allocation of general and administrative
expenses, attributable to NationsHealth's 2005 launch of the
CIGNATURE Rx national Medicare Part D Prescription Drug Plan.
NationsHealth's CEO, Glenn M. Parker, M.D. commented, "The launch
of the CIGNATURE Rx Prescription Drug Plan was an important
milestone for NationsHealth. To date, we have enrolled over 175,000
seniors into the program. While the program launch requires a
significant investment, we expect these enrollees to be profitable
beginning in the third quarter of 2006 and to be a core business
for us in years to come." Dr. Parker continued, "NationsHealth will
continue to offer its patients diabetes and ostomy supplies and
services. We anticipate expanding those offerings to include
specialty pharmaceuticals through NationsHealth Specialty Rx, our
51% owned joint venture with AmerisourceBergen subsidiary, US
Bioservices Corporation, beginning in April 2006." As previously
announced, NationsHealth will host a conference call at 11:00 a.m.
ET today to review its financial results of the fourth quarter and
year ended December 31, 2005. The Company will also outline plans,
initiatives and goals for 2006. Access Information: Date: February
28, 2006 Time: 11:00 a.m. ET U.S./Canada dial-in number:
800-289-0572 International dial-in number: 913-981-5543 Participant
passcode: 4071490 Live webcast: http://www.nationshealth.com/,
under press release listing. Replay Access Information: A recording
of the conference call will be available two hours after completion
until March 7, 2006 at midnight ET at 888-203-1112 (U.S.) and
719-457-0820 (International). The replay passcode is 4071490. The
webcast will be archived for on demand listening for 30 days on the
NationsHealth's website, http://www.nationshealth.com/. About
NationsHealth, Inc. NationsHealth improves the delivery of
healthcare to Medicare and managed care beneficiaries by providing
medical products and prescription related services. NationsHealth
has a strategic alliance with CIGNA to offer their Medicare Part D
prescription drug plans nationally. Prior to launching its Medicare
Part D business, NationsHealth offered free discount prescription
cards, accepted at over 50,000 pharmacies nationwide, to more than
3.1 million cardholders. In addition, NationsHealth provides home
delivery of diabetes and ostomy medical products to 105,000
patients. NationsHealth is also the provider of diabetes supplies
to more than 11,000 Medicare beneficiaries at over 1,100 Kmart
pharmacies. For more information please visit
http://www.nationshealth.com/. This press release contains
forward-looking statements about NationsHealth, including
statements regarding anticipated enrollment and private sector
market opportunities in Medicare Part D and specialty
pharmaceutical programs and the potential success of our strategic
partnerships and joint ventures, none of which should be construed
in any manner as a guarantee that such results will in fact occur.
In addition, other written or oral statements that constitute
forward-looking statements may be made by us or on our behalf.
Forward-looking statements are statements that are not historical
facts, and in some cases may be identified by the words
"anticipate," "project," "expect," "plan," "intend," "may,"
"should," "will," and similar words or phrases. Such
forward-looking statements, based upon the current beliefs and
expectations of NationsHealth's management, are subject to risks
and uncertainties, which could cause actual results to differ from
the forward-looking statements. The following factors, among
others, could cause actual results to differ from those set forth
in the forward- looking statements: projections with respect to
enrollment and market opportunities for Part D and specialty
pharmacy programs; our ability to maintain our existing customer
base; our customers' desire to take advantage of our Part D and
specialty pharmacy services; uncertainty in our costs incurred in
administering the Part D program; changes in Medicare, Medicaid,
Tricare, Champus and any other state or national-based
reimbursement program; changing interpretations of generally
accepted accounting principles; outcomes of government reviews of
NationsHealth's business practices; inquiries and investigations
and related litigation; continued compliance with government
regulations; legislation or regulatory requirements or changes
adversely affecting the businesses in which NationsHealth is
engaged; fluctuations in customer demand; management of rapid
growth; our ability to compete effectively; timing and market
acceptance of new products sold by NationsHealth; general economic
conditions; and geopolitical events, regulatory changes and other
risks and uncertainties described in NationsHealth's Annual Report
on Form 10-KSB/A for the year ended December 31, 2004,
NationsHealth's Rule 424(b)(3) Prospectus filed on October 11, 2005
and NationsHealth's other reports filed with the Securities and
Exchange Commission. The information set forth herein should be
read in light of such risks. NationsHealth cautions investors not
to place undue reliance on the forward-looking statements contained
herein. These statements speak only as of the date of this press
release and, except as required by applicable law, NationsHealth
assumes no obligation to update the information contained herein.
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in
thousands, except per share data) Three Months Ended December 31,
2005 2004 Revenue: Net product sales $13,389 $20,904 Prescription
card revenue 2,292 1,347 Service revenue 9,469 -- 25,150 22,251
Cost of product sales 6,241 6,427 Cost of services 20,908 -- Gross
Profit (Loss) (1,999) 15,824 Operating Expenses: Patient
acquisition and related costs 101 6,525 Patient service and
fulfillment 3,009 4,114 General and administrative 11,130 5,598
Cost of employee stock bonus plan -- 14,315 Provision for doubtful
accounts -- 3,100 Depreciation and amortization 327 172
Amortization of equity issued to CIGNA 646 -- 15,213 33,824 Loss
from Operations (17,212) (18,000) Other Expense, net (725) (230)
Net Loss $(17,937) $(18,230) Loss per share - basic and diluted
$(0.67) $(0.70) Weighted average shares outstanding - basic and
diluted 26,920 26,166 SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data) Year Ended December 31 2005
2004 (unaudited) Revenue: Net product sales $68,688 $70,982
Prescription card revenue 8,619 3,240 Service revenue 10,249 --
87,556 74,222 Cost of product sales 29,689 22,718 Cost of services
22,219 -- Gross Profit 35,648 51,504 Operating Expenses: Patient
acquisition and related costs 18,077 23,151 Patient service and
fulfillment 14,427 13,672 General and administrative 26,323 13,116
Cost of employee stock bonus plan -- 14,315 Provision for doubtful
accounts 7,575 12,228 Depreciation and amortization 980 506
Amortization of equity issued to CIGNA 646 -- Gain on sale of
respiratory division (15,508) -- 52,520 76,988 Loss from Operations
(16,872) (25,484) Other Expense, net (2,947) (940) Net Loss
$(19,819) $(26,424) Loss per share - basic and diluted $(0.75)
$(1.01) Weighted average shares outstanding - basic and diluted
26,390 26,154 SUMMARY CONSOLIDATED BALANCE SHEETS (in thousands)
December 31, 2005 2004 (unaudited) ASSETS Current Assets: Cash and
cash equivalents $13,971 $2,904 Short-term investments 923 100
Accounts receivable, net 7,908 8,708 Inventory 1,285 1,719 Costs
related to billings in process, net 874 1,437 Other receivables
1,877 -- Investment held in trust -- 2,000 Prepaid expenses and
other current assets 750 392 Total current assets 27,588 17,260
Property and equipment, net 3,747 1,770 Investment in joint venture
1,488 -- Deferred equity compensation 15,510 -- Other assets, net
1,526 346 Total assets $49,859 $19,376 LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIENCY) Current Liabilities: Accounts
payable $13,387 $9,599 Accrued expenses 12,030 7,195 Deferred
revenue, current portion 235 -- Line of credit 2,500 2,619 Total
current liabilities 28,152 19,413 Long-Term Liabilities: Deferred
revenue 1,100 -- Convertible notes, net 5,176 -- Other long-term
liabilities 1,414 -- Total long-term liabilities 7,690 --
Stockholders' Equity (Deficiency) 14,017 (37) Total liabilities and
stockholders' equity (deficiency) $49,859 $19,376 At NationsHealth:
Timothy Fairbanks, CFO 954-903-5018 At Rx Communications Group:
Melody A. Carey (investors) 917-322-2571 FCMN Contact:
mcarey@rxir.com DATASOURCE: NationsHealth, Inc. CONTACT: At
NationsHealth: Timothy Fairbanks, CFO, +1-954-903-5018; At Rx
Communications Group: Melody A. Carey, Investors, +1-917-322-2571
Web site: http://www.nationshealth.com/
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