BIOCHEM PHARMA INC.
CONSOLIDATED STATEMENT OF EARNINGS
QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
In thousands of Canadian dollars
except per share information
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Quarter ended Nine months ended
-------------------- --------------------
Sept. Sept. Sept. Sept.
30, 30, 30, 30,
1998 1997 1998 1997
--------- ---------- --------- ---------
$ $ $ $
Operating revenue
Sales 33,609 32,014 102,916 101,606
Royalties 37,791 31,726 109,974 89,230
Research and development
contracts 10,045 1,126 19,459 2,527
Interest 2,046 2,872 9,035 8,722
Other 3,245 1,591 5,654 3,955
--------- ---------- --------- ---------
86,736 69,329 247,038 206,040
--------- ---------- --------- ---------
Expenses
Cost of sales 18,145 17,467 53,264 51,072
Selling and administrative 18,748 16,547 57,199 52,260
Research and development 14,169 9,892 36,683 26,070
Financial 1,848 2,952 5,495 6,890
--------- ---------- --------- ---------
52,910 46,858 152,641 136,292
--------- ---------- --------- ---------
Earnings before depreciation,
amortization and other 33,826 22,471 94,397 69,748
Depreciation and amortization (3,656) (2,704) (10,016) (8,314)
--------- ---------- --------- ---------
Earnings before income taxes and
other 30,170 19,767 84,381 61,434
Income taxes (2,480) 133 (8,511) (1,737)
Non-controlling interest 135 608 1,826 1,549
Share of loss of an affiliated
company - - - (6,595)
--------- ---------- --------- ---------
Net income 27,825 20,508 77,696 54,651
--------- ---------- --------- ---------
--------- ---------- --------- ---------
Earnings per common share 0.26 0.19 0.72 0.51
--------- ---------- --------- ---------
--------- ---------- --------- ---------
Weighted average number of common
shares outstanding 108,355,798 108,119,690
----------- -----------
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BIOCHEM PHARMA INC.
CONSOLIDATED BALANCE SHEET
AS AT SEPTEMBER 30, 1998 AND 1997
(Unaudited)
In thousands of Canadian dollars
-------------------------------------------------------------------------
Sept. 30, Sept. 30,
1998 1997
----------- -----------
$ $
ASSETS
Current assets
Cash and temporary investments 177,428 343,052
Accounts receivable 125,119 97,558
Inventories 37,233 30,600
Prepaid expenses 5,144 4,024
----------- -----------
344,924 475,234
Investments 79,831 32,649
Capital assets 119,406 99,739
Other assets 42,042 29,768
----------- -----------
586,203 637,390
----------- -----------
----------- -----------
LIABILITIES
Current liabilities
Bank indebtedness 26,246 20,502
Accounts payable and accrued
liabilities 51,548 47,815
Current portion of long-term debt 11,406 11,036
----------- -----------
89,200 79,353
Long-term debt 48,609 70,074
Other liabilities 5,902 4,715
Non-controlling interest 1,563 13,288
SHAREHOLDERS' EQUITY 440,929 469,960
----------- -----------
586,203 637,390
----------- -----------
----------- -----------
BIOCHEM PHARMA INC.
CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION
QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(Unaudited)
In thousands of Canadian dollars
-------------------------------------------------------------------------
Quarter ended Nine months ended
------------------- -------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1998 1997 1998 1997
--------- --------- --------- ---------
$ $ $ $
Cash provided by (used for) the following activities:
OPERATING ACTIVITIES
Net income 27,825 20,508 77,696 54,651
Non-cash items
Depreciation and amortization 3,656 2,704 10,016 8,314
Share of loss of an affiliated
company - - - 6 595
Non-controlling interest (135) (608) (1,826) (1,549)
Other (536) 714 835 1,144
--------- --------- --------- ---------
Operating cash flow 30,810 23,318 86,721 69,155
Changes in non-cash working
capital items 6,503 6,364 (15,991) (9,913)
--------- --------- --------- ---------
Cash flow from operations 37,313 29,682 70,730 59,242
--------- --------- --------- ---------
INVESTING ACTIVITIES
Acquisition of investments (4,124) (3,034) (13,912) (13,788)
Acquisition of capital assets (4,102) (11,836) (18,714) (35,280)
Disposal of capital assets 117 93 372 239
Acquisition of non-controlling
interest - - (16,214) -
Other (1,268) (1,317) (1,697) (2,333)
--------- --------- --------- ---------
(9,377) (16,094) (50,165) (51,162)
--------- --------- --------- ---------
Free cash flow 27,936 13,588 20,565 8,080
--------- --------- --------- ---------
FINANCING ACTIVITIES
Increase in long-term debt - 2,236 1,498 8,885
Repayment of long-term debt (10,700) (1,093) (12,240) (1,980)
Non-controlling interest - 1,400 - 2,650
Issuance of common shares 1,766 556 2,637 2,531
Dividends - - (150,000) -
Other 28 124 18 229
--------- --------- --------- ---------
(8,906) 3,223 (158,087) 12,315
--------- --------- --------- ---------
Foreign currency translation
adjustment (144) 18 1,255 385
--------- --------- --------- ---------
Increase (decrease) in cash
position 18,886 16,829 (136,267) 20,780
Cash position, beginning of period 132,296 305,721 287,449 301,770
--------- --------- --------- ---------
Cash position, end of period 151,182 322,550 151,182 322,550
--------- --------- --------- ---------
--------- --------- --------- ---------
Cash position comprises cash and temporary investments, less bank
indebtedness.
