UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 8, 2003
CURATIVE HEALTH SERVICES, INC.
(Exact name of registrant as specified in its charter)
Minnesota 000-50371 51-0467366
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
150 Motor Parkway
Hauppauge, New York 11788-5145
(Address of principal executive offices)
(631) 232-7000
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)
Item 7. Financial Statements and Exhibits
(c) The following exhibit is being furnished with this Report:
99.1 Press Release of Curative Health Services, Inc. dated
October 8, 2003.
Item 12. Results of Operations and Financial Condition
The following information is being furnished under Item 12, Results
of Operations and Financial Condition. Such information shall not be
deemed "filed" for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), or otherwise subject to
the liabilities of that section, nor shall it be deemed to be
incorporated by reference in any filing under the Securities Act of
1933, as amended, or the Exchange Act, except as expressly set forth
by specific reference in such filing.
On October 8, 2003, Curative Health Services, Inc. issued a press
release to announce that it is revising its financial outlook for the
third quarter ended September 30, 2003 and fiscals 2003 and 2004. The
press release is furnished as Exhibit 99.1 to this Report.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
CURATIVE HEALTH SERVICES, INC.
Date: October 10, 2003 By: /s/ Thomas Axmacher
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Thomas Axmacher
Chief Financial Officer
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:
Scott Eckstein
Investor Relations
Curative Health Services
631-232-7044
seckstein@curativehealth.com
CURATIVE HEALTH SERVICES REVISES OUTLOOK
Announces Date for Third Quarter Earnings Conference Call
Hauppauge, New York - October 8, 2003 - Curative Health Services, Inc., (Nasdaq:
CURE), announced today that it is revising its financial outlook for the third
quarter ended September 30, 2003 and fiscal 2003. For the third quarter of 2003,
Curative now anticipates revenues in the range of approximately $46-$47 million,
compared with previous guidance of approximately $48-$50 million, and GAAP net
income per diluted share in the range of $0.12-$0.13, compared with previous
guidance of $0.29-$0.31. Adjusted net income for the third quarter is expected
to be in the range of $0.20-$0.21. Adjusted net income adds back aggregate after
tax charges of approximately $1.1 million ($1.8 million pre-tax) or $0.08 per
diluted share. These charges include costs associated with a convertible note
offering that was not completed due to market conditions (approximately $0.8
million pre-tax or $0.03 per diluted share after tax), severance costs during
the third quarter (approximately $0.5 million pre-tax or $0.02 per diluted share
after tax), costs related to an acquisition that was not completed
(approximately $0.3 million pre-tax or $0.02 per diluted share after tax), and
additional costs for the previously announced corporate structure reorganization
(approximately $0.2 million pre-tax or $0.01 per diluted share after tax).
The Company also announced revised revenue and earnings guidance for the fourth
quarter and twelve months ended December 31, 2003. For the fourth quarter the
Company now expects revenues to be in the range of $70-$72 million and GAAP net
income in the range of $0.30-$0.32 per diluted share. For the full year 2003,
the Company now expects revenues to be in the range of $219-$221 million and
GAAP net income in the range of $0.93-$0.96 per diluted share. Adjusted net
income per diluted share for the full year 2003 is now expected to be in the
range of $1.17-$1.20. This adjusted net income per diluted share guidance adds
back after tax charges of $1.6 million or $0.12 per diluted share the Company
recorded in the first quarter 2003 relating to the consolidation of the
Company's Specialty Pharmacy Services operations ($1.0 million) and charges
associated with settlements including severance agreements ($0.6 million), with
former executives terminated in March, 2002, after tax charges of $0.5 million
or $0.04 per diluted share recorded in the second quarter 2003 related to
terminating our existing credit facility ($0.4 million) and a proposed corporate
structure reorganization ($0.1 million), as well as those charges described
above for the third quarter of 2003.
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Management believes the adjusted net income and adjusted net income per diluted
share information is necessary to better present the Company's underlying
business operating results.
For 2004, the Company now anticipates revenues of approximately $270-$280
million and GAAP net income growth of 45%-50% over 2003 GAAP net income or net
income growth of 15%- 20% over 2003 adjusted net income (assuming no adjustments
in 2004). The Company will discuss 2004 guidance further on its third quarter
earnings conference call.
The guidance above relates to periods which have not yet ended or for which the
Company has not yet closed its books or completed its review of its operating
results and financial position. Accordingly, this guidance is preliminary and
subject to change based on completion of that review.
There are a number of contributing factors for these guidance adjustments
including the following:
o We experienced relatively flat third quarter revenues in hemophilia
related products and a pause in sequential growth in IVIG and other
infusables during Q3.
o While we see organic growth in Synagis(R) (including anticipated
organic growth by the Company and the companies it has acquired) of at
least 30% this season, an uncertain competitive environment in
Synagis(R) has caused us to be more cautious about our expectations for
additional market share gains.
o Despite recent net contract gains we have continued to see pricing
pressure in both new and re-negotiated contracts in Wound Care.
o Higher depreciation expense from capital investments in the Company's
Information Technology infrastructure to support future growth.
o Higher operating costs in key areas such as liability insurance and
employee benefits.
"We are disappointed to have to make these guidance changes but the combination
of less than plan revenues and higher than expected operating costs has resulted
in less than previously forecasted earnings for the third quarter of 2003 with
the impact carrying through the fourth quarter of 2003 and 2004," said Joseph
Feshbach, Curative's Chairman and Chief Executive Officer. "While these growing
pains are difficult for all of us, Curative has built an important specialty
pharmacy business during the past two and a half years."
Curative will release its third quarter 2003 results on Wednesday, November 5,
2003 pre-market. The Company will host a conference call the same day at 11:00
a.m. Eastern Time to discuss its third quarter 2003 financial results, recent
developments, business strategy and outlook. To participate in the conference
call, dial 1-800-915-4836 approximately 10 minutes prior to the scheduled start
time.
If you are unable to participate, a digital replay of the call will be available
from Wednesday, November 5, 2003 at 1:00 p.m. Eastern Time until 12:00 a.m.
Eastern Time on November 12, 2003 by dialing 1-800-428-6051 with passcode #
309426. The live broadcast of Curative's quarterly conference call will be
available online by going to www.curative.com and selecting the Investor
Relations link, on www.streetevents.com, and on www.companyboardroom.com. An
online replay will be available shortly after the call through November 12, 2003
at those sites.
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About Curative Health Services
Curative Health Services, Inc., through its two business units, Specialty
Pharmacy Services and Specialty Healthcare Services, seeks to deliver
high-quality results and exceptional patient satisfaction for patients
experiencing serious or chronic medical conditions.
Curative's Specialty Pharmacy Services business unit provides services to help
patients manage the health care process, and offers related pharmacy products to
patients for chronic and critical disease states including Hemophilia, Immune
System Disorders, Respiratory Syncytial Virus (RSV), Multiple Sclerosis,
Rheumatoid Arthritis and Cancer.
Curative's Specialty Healthcare Services ("SHS") business unit is an industry
leader in chronic wound care management. SHS provides a broad continuum of
services to health care providers through a nationwide network. This national
network of hospital-based Wound Care Center(R) programs has offered
comprehensive treatment to over 375,000 patients.
For more information, visit www.curative.com.
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors,
which may cause the actual results, performance or achievements of the Company,
or industry results, to be materially different from any future results,
performance, or achievements expressed or implied by such forward-looking
statements. Factors that might cause such differences include, but are not
limited to, the termination or non-renewal of a material number of contracts, an
inability to obtain new contracts, changes in the government regulations
relating to the Company's Specialty Pharmacy Services or Specialty Healthcare
Services business units, changes in the regulations governing third party
reimbursements for the Company's services, manufacturing shortages of products
sold by Curative's Specialty Pharmacy Services business unit, and the other
risks and uncertainties detailed in the Company's filings with the Securities
and Exchange Commission. Readers of this release are referred to the Company's
Annual Report on Form 10-K for the year ended December 31, 2002 and Quarterly
Report on Form 10-Q for the quarter ended June 30, 2003, for further discussion
of these and other factors that could affect future results.
Editors Note: This release is also available on the Internet over the World
Wide Web at: http://www.curative.com.
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