Allergan Cites Restructuring for 1991 Loss

IRVINE — Allergan Inc., a manufacturer of pharmaceutical and eye- and skin-care products, said Tuesday that it lost $59.5 million, or 89 cents a share, last year because of a corporate restructuring, but its sales increased 5.7% to $839 million.

The Irvine company said the primary reason for its yearly loss was a one-time charge against earnings of $164.5 million in the third quarter, resulting from a decision to limit its contact-lens manufacturing business.

Excluding the one-time charge, Allergan said its 1991 profit would have been $89 million.

The company earned $81.4 million, or $1.21 a share, last year.

John J. Girton, an analyst with Van Kasper & Co. in San Francisco, has Allergan on a long-term buy list, saying he and others approve of Allergan’s new emphasis on more profitable products.

“They continue to have positive cash flow, and they continue to pay down debt,” he said.

The company’s stock closed unchanged Tuesday at $21.75 a share.

The earnings release was issued after the stock market closed.

For the fourth quarter ended Dec. 31, the Irvine company reported earnings of $27.9 million, up 10% from $25.3 million for the year-earlier period. Sales rose 6.3%, to $227.5 from $214 million.

Allergan’s Performance

For 1991, Allergan Inc. reported a $59.5-million loss as its revenues increased 5.7% to $839 million. The primary reason for the loss was a onetime, pretax charge against earnings, which the company took in the third quarter to reduce its investment in the contact lens business.

For the fourth quarter ended Dec. 31, Allergan saw earnings increase 10% from the same period a year ago to $27.9 million. Quarterly sales were up 6.3% to $227.5 million.

Figures are in thousands, except per-share data.

4th Qtr 4th Qtr 12 Months 12 Months 1991 1990 1991 1990 Revenue $227,500 $214,000 $839,000 $794,000 Net income (loss) $27,900 $25,300 (59,500) $81,400 Per share (loss) 0.41 0.38 (0.89) $1.21

Source: Allergan Inc.