Medical Pharma, Inc. (OTCQB: TRGM), today announced financial
results for its second quarter ended June 30, 2014. The Company posted
increased revenues, gross profit and an increase in net income before
interest, taxes, depreciation and amortization, and stock based
compensation (Adjusted EBITDA*)
on a quarter-over-quarter basis.
Financial results for the three months ended June 30, 2014 compared
to the three months ended June 30, 2013
Net loss for the three months ended June 30, 2014, was $0.42 million
compared to a net loss of $7.84 million for the three months ended June
30, 2013. During the three months ended June 30, 2013, the Company
decided to fully reserve its net deferred income tax assets resulting in
income tax expense of $5.9 million. Exclusive of income tax expense,
loss before income taxes for the three months ended June 30, 2014 and
2013, was $0.36 million and $1.94 million, respectively. This
significant improvement reflects management's commitment to continued
operational cost containment and execution of a multi-channel sales and
marketing strategy. We believe that operational improvements will
continue to drive overall profitability.
During the three months ended June 30, 2014 and 2013, the Company's net
loss consisted of a significant amount of non-cash charges. Due to the
impact of these non-cash charges on the Company's reported net loss, the
Company places greater emphasis in Adjusted EBITDA.
A reconciliation of net loss to Adjusted EBITDA is reflected in the
"The improvements in revenue, profit and EBITDA in the second quarter of
2014 reflect our continued focus on streamlining operations and
expanding the number of revenue generating verticals," said William
Shell, M.D., Chief Executive Officer and Chief Science Officer of
Targeted Medical Pharma. "Developing a sustainable business model
constructed of multiple revenue verticals will insulate the company from
shifts in the healthcare industry, and provide a reliable source of
revenue for the continued research and development of therapies for the
treatment of Autism
A copy of Targeted Medical Pharma's quarterly report on Form 10-Q for
the three months ended June 30, 2014, filed with the Securities and
Exchange Commission on August 14, 2014, is accessible on the Company's
website at www.tmedpharma.com
and at the SEC's website at www.sec.gov.
About Targeted Medical Pharma, Inc.
Medical Pharma, Inc. is a Los Angeles-based biotechnology company
that is committed to drug discovery and development. The company
currently develops and distributes medications for the treatment of
chronic disease, including pain syndromes, peripheral neuropathy,
hypertension, obesity, sleep and cognitive disorders. The company also
develops a line of dietary supplements designed to support health and
wellness. The company manufactures 10 proprietary medical
foods, and recently launched its first dietary supplement, Clearwayz™.
The products are sold directly to physicians and pharmacies in the U.S.
The company also is developing nutrient-based systems for oral
stimulation of progenitor stem cells that differentiate into neurons,
red blood cells, pituitary hormones including IGF-I. Follow the Company
on Twitter: @tmedpharma
and on Facebook: www.facebook.com/TargetedMedicalPharma.
Forward Looking Statement
This press release may contain forward-looking statements related to
the company's business strategy, outlook, objectives, plans, intentions
or goals. The words "may," "will," "should," "plans," "explores,"
"expects," "anticipates," "continue," "estimate," "project," "intend,"
and similar expressions, identify forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, but
their absence does not mean that the statement is not forward-looking.
Forward-looking statements also include any other passages that
relate to expected future events or trends that can only be evaluated by
events or trends that will occur in the future. The
forward-looking statements are based on the opinions and estimates of
management at the time the statements were made and are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those anticipated in the forward-looking
statements. These risks and uncertainties include, among others,
the risk of unforeseen changes in customer budgets, unanticipated loss
of customers or delays in anticipated orders, the potential failure to
attract new customers due to the company's inability to competitively
market its products and services, the risk of fluctuating demand for the
company's product, the potential failure to maintain desired customer
relationships, costs and risks related to development of technologies.
More information about factors that could cause actual results to
differ materially from those predicted in Targeted Medical Pharma's
forward-looking statements is set out in its annual report on Form 10-K
for the year ended December 31, 2013, filed with the Securities and
Exchange Commission. Readers are cautioned not to place undue
reliance upon these forward-looking statements, which speak only as to
the date of this release. Except as required by law, Targeted
Medical Pharma, undertakes no obligation to update any forward-looking
or other statements in this press release, whether as a result of new
information, future events or otherwise.
*Adjusted EBITDA refers to a financial measure that is more fully
defined as net loss before net interest and other income, interest
expense, income taxes, depreciation and amortization, and stock based
compensation. Adjusted EBITDA is a non-GAAP financial measure which
management believes reflects the Company's ongoing business in a manner
that allows for meaningful period-to-period comparisons and analysis of
trends in the Company's business, as they exclude certain income or
other expenses that are not reflective of ongoing operating results.
Adjusted EBITDA is commonly used to analyze companies on the basis of
leverage and liquidity. However, Adjusted EBITDA is not a measure
determined under GAAP in the United States of America and may not be
comparable to similarly titled measures reported by other companies.
Adjusted EBITDA should not be construed as a substitute for net loss or
as a better measure of liquidity than cash flow from operating
activities, which are determined in accordance with GAAP. Management
believes that Adjusted EBITDA is a useful measure for analyzing
operating results, and uses this non-GAAP financial measure to review
past results and forecast future results.
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