King officials credited the swing, in part, to stronger sales of the heart drug Altace and the muscle relaxer Skelaxin.
Excluding special items, net earnings equaled $99 million and diluted earnings per share equaled 41 cents during the fourth quarter ended Dec. 31, 2006, compared to net earnings of $92 million and diluted earnings per share of 38 cents in the fourth quarter of 2005. Analysts had predicted 37 cents.
"During 2006, King Pharmaceuticals achieved many important accomplishments which we believe are representative of the successful execution of our strategy for growth," said Brian A. Markison, president and chief executive officer of King.
"Most notably, we continued to maximize the value of our existing products as evidenced by our record high total revenues of $1.99 billion. We also successfully focused our resources and talents on strengthening our product portfolio, particularly through our acquisition of Avinza, a true once-a-day formulation of morphine." Markison said.
"More recently, we expanded our Thrombin-JMI franchise with our acquisition of an exclusive license to Vascular Solutions' hemostatic products."
Reported net income equaled $289 million, and diluted earnings per share equaled $1.19 during the year ended Dec. 31, 2006, compared to net income of $118 million and diluted earnings per share of 49 cents during the prior year.
Excluding special items, net earnings increased to $423 million and diluted earnings per share increased to $1.74 for the 12 months ended Dec. 31, 2006, from net earnings of $400 million and diluted earnings per share of $1.66 in 2005. Net income and diluted earnings per share, as reported and excluding special items, also achieved record highs in 2006.
For the fourth quarter ended Dec. 31, 2006, total revenues increased 21 percent to $513 million compared to $423 million in the fourth quarter of 2005.
Reported net income equaled $37 million, and diluted income per share equaled 15 cents during the fourth quarter of 2006, compared to a net loss of $95 million and diluted loss per share of 39 cents in the same period of the prior year.
Net revenue from branded pharmaceuticals totaled $455 million for the fourth quarter of 2006, a 25 percent increase from the fourth quarter of 2005, and equaled $1.7 billion for the year ended Dec. 31, 2006, a 13 percent increase from $1.5 billion during the prior year.
King conducted a webcast Wednesday on the financial results and other matters relating to its business. The webcast will be archived on King's web site - www.kingpharm.com - for at least 14 days after the webcast.