LARGO, Fla., Feb. 14 /PRNewswire-FirstCall/ -- GeoPharma, Inc. (Nasdaq: GORX) announced record revenues of $18.2 million for the third quarter representing more than a 200% increase in sales sequentially, as it reported financial results for the three and nine month periods ending December 31, 2007.

'We are pleased to report greatly improved financial results for the third quarter of our 2008 fiscal year; it demonstrates the benefit of the earlier executed Dynamic Health Products acquisition and showcases significant progress in our efforts to achieve critical mass of over 100 million dollars in revenues for our 2009 fiscal year which ends in March of 2009,' stated GeoPharma CEO Mihir Taneja. 'Although we are pleased with our financial progress, the third quarter was full of challenges that weighed on our results, which provides us with further confidence that we will see continued strength in the fourth quarter and the foreseeable future.'

    Q3 Financial Summary
    -- Total revenues for the third quarter ended December 31, 2007 were $18.2
       million as compared to the second quarter continuing operation revenues
       for the three months ended September 30, 2007 of $6.0 million, an
       increase of 203%.
    -- Total revenues for the nine months ended December 31, 2007 were $34
       million, an increase of 116% over the six months ended September 30,
       2007.
    -- Gross Profits for the third quarter ended December 31, 2007 increased
       200% to $3.6 million as compared to the continuing operations gross
       profits for the second quarter ended September 30, 2007 of $1.2
       million.
    -- Net loss for the December quarter 2007 was $(1.675) million as compared
       to the September 2007 net loss of $(1.9) million. Net loss per share
       for the December quarter 2007 was $(0.12) as compared to the September
       2007 quarter net loss of $(0.16).
    -- Selling, general and administrative expenses, exclusive of depreciation
       and amortization, were $5.3 million for the quarter ended December 2007
       as compared to $3.7 million for the quarter ended September 2007.
       Increases this quarter were attributable to higher costs related to the
       addition of the DYHP acquisition in October 2007 in addition to
       additional legal and accounting costs and other business expansion such
       as rents, payrolls and related insurances.
    -- Research and development ('R&D') expenditures for the three months
       ended December 31, 2007 totaled approximately $310,000 all of which was
       charged as an expense to operations as compared to $336,000 of R&D
       expense for September 2007.

CONFERENCE CALL INFORMATION

GeoPharma will host a conference call to discuss results on Thursday, February 14, 2008 at 11:30 (ET) with CEO, Mihir Taneja and VP/CFO, Carol Dore-Falcone. Interested parties may participate in the conference call by dialing 1-888-680-0869 and entering pass code 78555682, 5 minutes prior to the initiation of the call. A replay of the conference call will be available from 1:30 PM (ET) on February 14 through February 21, by dialing 1-888-286-8010 and entering pass code 37538422.

Webcast registration (http://phx.corporate- ir.net/phoenix.zhtml?c=120778&p=IROL-Guestbook&UniqueId=1754335&mp=irol- eventDetails&mpdp=EventId~1754335!WebCastId~724916!StreamId~1051110&pp=IROL- BasicWebCast&ppdp=EventId~1754335!WebCastId~724916!StreamId~1051110&pph=339&pp w=270&rdu)

ABOUT GEOPHARMA, INC.:

GeoPharma, Inc. is a rapidly growing Bio/Pharma company with a diversified business model participating in 3 main market segments: Specialty Pharma, Manufacturing, and Distribution. The Specialty Pharma division specializes in the formulation of generic drugs for human and veterinary usage and the development of medical devices used by oncologists and other medical professionals. The Manufacturing and Distribution divisions, manufacture, package, and distribute generic drugs, nutraceuticals, cosmetics, and functional food products for companies worldwide.

GeoPharma's growth strategy is to capitalize on its research and manufacturing expertise to develop medical devices and high margin generic drug products for niche markets with high barriers to entry. GeoPharma's competitive advantage in these areas is in its ability to navigate the challenges that such market pursuits present effectively.

Currently GeoPharma employs nearly 300 people and operates facilities in Florida, Maryland, Pennsylvania, Nevada, Rhode Island, and Texas utilizing over 330,000 Sq. Ft. of office, warehouse, manufacturing and laboratory facilities.

For further information visit the 'For Investors' section of the GeoPharma website at www.geopharmainc.com.

FORWARD LOOKING STATEMENTS

This press release may contain statements, which constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those regarding the company and its subsidiaries' expectations, intentions, strategies and beliefs pertaining to future performance. All statements contained herein are based upon information available to the company's management as of the date hereof, and actual results may vary based upon future events, both within and without management's control. Important factors that could cause such differences are described in the company's periodic filings with the Securities and Exchange Commission.

                         GAAP FINANCIAL TABLES FOLLOW


                       GEOPHARMA, INC. AND SUBSIDIARIES

              CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)


                                  Three Months Ended      Nine Months Ended
                                      December 31,            December 31,
                                   2007        2006        2007        2006
    Revenues:
    PBM (a discontinued
     operation)                       $--  $5,078,738         $-- $14,630,131
    Distribution               11,217,987   3,374,219  14,435,258   9,869,392
    Manufacturing               7,019,351   5,831,536  16,601,874  20,860,036
    Pharmaceutical                     --          --      41,188     251,845
    Total revenues            $18,237,338 $14,284,493 $31,078,320 $45,611,404
    Cost of goods sold:
    PBM (a discontinued
     operation)                        --   5,039,582          --  14,515,619
    Distribution                9,042,503   1,224,369  10,779,944   3,986,597
    Manufacturing (excluding
     depreciation and
     amortization presented
     below)                     4,790,637   2,849,473  11,578,661  13,607,561
    Pharmaceutical                828,743     654,640   2,402,125     813,571
    Total cost of goods sold  $14,661,883  $9,768,064 $24,760,730 $32,923,348
    Gross profit:
    PBM (a discontinued
     operation)                        --      39,156          --     114,512
    Distribution                2,175,484   2,149,850   3,655,314   5,882,795
    Manufacturing               2,228,714   2,982,063   5,023,213   7,252,475
    Pharmaceutical               (828,743)   (654,640) (2,360,937)   (561,726)
    Total gross profit         $3,575,455  $4,516,429  $6,317,590 $12,688,056
    Selling, general and
     administrative expenses:
    Selling, general and
     administrative expenses    5,100,221   2,967,892  11,406,989   8,899,103
    Stock option compensation
     expense                      266,658     427,675     687,495   1,283,025
    Depreciation and
     amortization                 487,050     347,385   1,306,409     829,013
    Selling, general and
     administrative expenses    5,853,929   3,742,952  13,400,893  11,011,141
    Operating income (loss)
     before other income and
     expense, minority
     interest, income taxes
     and discontinued
     operations               $(2,278,474)   $773,477 $(7,083,303) $1,676,915
    Other income (expense),
     net:
    Other income (expense),
     net                           10,793        (410)     11,318     163,889
    Interest income (expense),
     net                         (240,311)    (33,790)   (313,277)    (62,406)
    Total other income
     (expense), net             $(229,518)   $(34,200)  $(301,959)   $101,483
    Income (loss) before
     minority interest,
     income taxes and
     discontinued operations  $(2,507,992)   $739,277 $(7,385,262) $1,778,398
    Minority interest benefit
     (expense)                    202,495     319,998     644,951     984,328
    Income tax benefit
     (expense)                    729,951    (300,000)  2,415,353    (888,000)
    Net income (loss) from
     continuing operations    $(1,575,546)   $759,275 $(4,324,958) $1,874,726
    Discontinued operations:
      Revenues: PBM                   $--         $--  $2,925,139         $--
      Cost of goods sold: PBM          --          --   2,904,274          --
      Gross profit: PBM               $--         $--      20,865         $--
      Selling, general and
       administrative
       expenses: PBM                   --          --      20,785          --
      PBM segment exit income
       (expense)                       --          --       8,300          --
      Discontinued operations
       net income (net of
       income tax)                    $--         $--      $8,380         $--
    Net income (loss)         $(1,575,546)   $759,275 $(4,316,578) $1,874,726
    Preferred stock dividends     100,001      75,000     308,336     225,000
    Net income (loss)
     available to common
     shareholders             $(1,675,547)   $684,275 $(4,624,914) $1,649,726
    Basic income (loss) per
     share                         $(0.12)      $0.07      $(0.39)       0.17
    Basic weighted average
     number of common shares
     outstanding               13,805,912   9,818,924  11,967,112   9,877,749
    Diluted income (loss)
     per share                     $(0.12)      $0.06      $(0.39)      $0.14
    Diluted weighted average
     number of common shares
     outstanding               13,805,912  13,191,605  11,967,112  13,290,210

          See notes to condensed consolidated financial statements.

SOURCE GeoPharma, Inc.

Source: PR Newswire (February 14, 2008 - 7:55 AM EST)

News by QuoteMedia
www.quotemedia.com