Andrx Corporation Reports Financial Results for 2006 First Quarter

Business Wire, May 4, 2006

March 31, December 31,
                                                  2006        2005
                                               ----------- -----------
                                               (Unaudited)
ASSETS
Current assets:
 Cash and cash equivalents                     $   38,452  $   34,066
 Short-term investments available-for-sale, at
  market value                                    250,940     247,957
 Accounts receivable, net of allowance for
  doubtful accounts of $3,776 and $3,624 at
  March 31, 2006 and December 31, 2005,
  respectively                                    137,473     148,186
 Inventories                                      198,273     235,040
 Deferred income tax assets, net                   77,290      70,926
 Prepaid and other current assets                  21,606      15,152
                                               ----------- -----------
       Total current assets                       724,034     751,327

Long-term investments available-for-sale, at
 market value                                      84,761     123,105
Property, plant and equipment, net                259,091     274,051
Goodwill                                            7,665       7,665
Other intangible assets, net                        3,979       4,590
Other assets                                        9,977      10,178
                                               ----------- -----------
       Total assets                            $1,089,507  $1,170,916
                                               =========== ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                              $   83,314  $  169,664
 Accrued expenses and other liabilities            97,826      91,146
                                               ----------- -----------
       Total current liabilities                  181,140     260,810

Deferred income tax liabilities                    32,831      33,702
Deferred revenue                                  107,343      99,494
                                               ----------- -----------
       Total liabilities                          321,314     394,006
                                               ----------- -----------

Commitments and contingencies

Stockholders' equity:
 Convertible preferred stock; $0.001 par value,
  1,000 shares authorized; none issued and
  outstanding                                           -           -


 Common stock; $0.001 par value, 200,000 shares
  authorized; 73,775 and 73,567 shares issued
  and outstanding at March 31, 2006 and
  December 31, 2005, respectively                      74          74
 Additional paid-in capital                       520,316     532,376
 Restricted stock units, net                            -     (14,634)
 Retained earnings                                249,034     260,340
 Accumulated other comprehensive loss, net of
  income tax benefit                               (1,231)     (1,246)
                                               ----------- -----------
       Total stockholders' equity                 768,193     776,910
                                               ----------- -----------

       Total liabilities and stockholders'
        equity                                 $1,089,507  $1,170,916
                                               =========== ===========
Andrx Corporation and Subsidiaries
       Unaudited Condensed Consolidated Statements of Cash Flows
                            (in thousands)

                                                 Three Months Ended
                                                      March 31,
                                               -----------------------
                                                  2006        2005
                                               ----------- -----------
Cash flows from operating activities:
 Net (loss) income                             $  (11,306) $   35,337
 Adjustments to reconcile net (loss) income to
  net cash (used in) provided by operating
  activities:
   Depreciation and amortization                    8,382       8,442
   Provision for doubtful accounts                    659         198
   Non-cash impairment charges                     16,210      26,865
   Non-cash shared-based compensation                 997         549
   Amortization of deferred revenue                (2,151)        (26)
   Equity in earnings of unconsolidated joint
    ventures                                         (676)     (1,024)
   Deferred income tax benefit                     (7,651)    (25,176)
   Change in liabilities for uncertain tax
    positions                                         (10)    (32,335)
   Excess income tax benefit on shared-based
    awards                                            122         923
   Cumulative effect of a change in accounting
    principle, net of income taxes of $408           (695)          -
   Changes in operating assets and liabilities:
        Accounts receivable                        10,054       6,429
        Inventories                                36,767      28,138
        Prepaid and other current assets           (6,454)      1,922
        Other assets                                  104      (1,192)
        Accounts payable                          (86,350)     (5,711)
        Accrued expenses and other liabilities      3,560       8,194
        Deferred revenue                           10,000           -
                                               ----------- -----------
            Net cash (used in) provided by
             operating activities                 (28,438)     51,533
                                               ----------- -----------

Cash flows from investing activities:
 Purchases of investments available-for-sale     (117,872)   (118,039)
 Maturities and sales of investments
  available-for-sale                              153,256      46,935
 Purchases of property, plant and equipment,
  net                                              (6,125)     (8,871)
 Proceeds from the sale and licensing of assets
  and rights                                            -      50,000
 Distributions from unconsolidated joint
  ventures                                            773         671
 Refund of deposit for product rights                   -      10,000
                                               ----------- -----------
            Net cash provided by (used in)
             investing activities                  30,032     (19,304)
                                               ----------- -----------

Cash flows from financing activities:

 Proceeds from issuances of common stock in
  connection with exercises of stock options        2,532       1,880
 Proceeds from issuances of common stock in
  connection with the employee stock purchase
  plan                                                189         297
 Principal payments on capital lease
  obligations                                           -      (1,467)
Excess income tax benefit on shared-based
 awards                                                71           -
                                               ----------- -----------
            Net cash provided by financing
             activities                             2,792         710
                                               ----------- -----------

            Net increase in cash and cash
             equivalents                            4,386      32,939
Cash and cash equivalents, beginning of period     34,066      42,290
                                               ----------- -----------
Cash and cash equivalents, end of period       $   38,452  $   75,229
                                               =========== ===========