Theragenics Reports Revenue and Earnings for the Second Quarter and First Half of 2012

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Theragenics Reports Revenue and Earnings for the Second Quarter and First Half of 2012

<0> Theragenics CorporationFrank Tarallo, 800-998-8479 - 770-271-0233CFO & TreasurerorLisa Rassel, 800-998-8479 - 770-271-0233Manager of Investor Relations </0>

Theragenics Corporation (NYSE: TGX), a medical device company serving the surgical products and prostate cancer treatment markets, today announced consolidated financial results for the second quarter ended June 30, 2012.

Revenue in our surgical products segment was $15.9 million in the second quarter of 2012, an increase of 3% over the second quarter of 2011 and our highest quarterly revenue ever in our surgical products segment. For the first half of 2012 revenue was $31.4 million, an increase of 5% over 2011. Operating income for the quarter was $588,000 compared to $498,000 in 2011. For the first half of 2012 operating income was $787,000 compared to $307,000 in 2011. Pre-tax charges for special items totaling $35,000 and $218,000 were included in the second quarter and first half, respectively, of 2011. The pre-tax charges for special items are detailed in Table V to this press release. No such special items were incurred in the 2012 periods.

Revenue in our brachytherapy segment was $6.3 million in the second quarter of 2012, a 1% increase over 2011. For the first half of 2012, revenue was $12.6 million, a 3% increase over 2011. Operating income was $747,000 in the second quarter of 2012 compared to $1.5 million in 2011. For the first half of 2012, operating income was $2.1 million, compared to $2.6 million in 2011. Pre-tax charges for special items totaled $13,000 and $304,000 in the second quarter and first half, respectively, of 2011. The pre-tax charges for special items are detailed in Table V to this press release. No such special items were incurred in the 2012 periods.

We repurchased 4,761,904 common shares at $2.10 per share on July 17, 2012 pursuant to our modified Dutch Auction tender offer, for a total purchase price of approximately $10.0 million excluding transaction costs. This repurchase was funded from cash on hand. Immediately following the closing of this repurchase, we had approximately 29,968,000 common shares outstanding.

“Second quarter revenue benefited from sales momentum in our vascular access product platform,” stated M. Christine Jacobs, Chairman and CEO. “Across our surgical products segment we are continuing to focus on organic growth and improving margins. We are also actively engaged in planning to consolidate certain functions and eliminate redundancies in the face of the impending 2.3% medical device tax on January 1, 2013. We also intend to continue to pursue new product development to support growth and enhance margins in our surgical products business. This segment delivered record revenue in the first half of 2012.”

“Profitability in our brachytherapy business declined in second quarter because of a falloff in palladium revenue stemming from fewer patients being treated,” Ms. Jacobs continued. “A decline in revenue from that product line has a dramatic effect on profitability because of its fixed cost nature. Our iodine revenue increased significantly as a result of the Core transaction completed in the first quarter. This new revenue stream contributed to profitability, offsetting some of the palladium decline. Our new AgX100™ iodine seed was fully launched in July, which should further increase the profitability of this acquired revenue stream.”

“We completed our $10 million share repurchase through a modified Dutch Auction tender offer in July,” Ms. Jacobs continued. “The strength of our balance sheet allowed us to fund this repurchase from cash on hand and provide shareholders with additional liquidity. We expect our cash and investment balances plus ongoing cash flows from our business to allow us to continue to pursue other facets of our strategic plan.”

Ms. Jacobs concluded, “The pending device tax and ramifications of healthcare reform indicate we need to prepare for increased taxes on our entire industry and margin pressures for Theragenics. We are actively engaged in a process to address and hopefully mitigate these new threats.”

Tables I and II to this press release contain condensed consolidated statements of earnings and balance sheets. Segment information, including revenue and operating income by segment is summarized in Table III. Table IV includes a reconciliation of GAAP reported net earnings to net earnings before interest, taxes, depreciation, amortization and share-based compensation (Adjusted EBITDA). Table V includes a detail of our pre-tax charges for special items.

Theragenics will host a conference call today at 11:00 a.m. Eastern Time. To access the call, dial 877-407-4019 or 201-689-8337. This call is also being broadcast live over the Internet, and a recording will be available for one month on our website. To access the webcast, log on to and select “Company Presentations” under Investor Relations or follow this link: . You also can access a phone replay of the call until midnight, August 16, 2012 by dialing 877-660-6853 or 201-612-7415, and entering the account # 372 and replay ID 398133.

Theragenics Corporation(NYSE: TGX) operates two business segments: its surgical products business and its brachytherapy seed business. The surgical products business (, , ) manufactures and distributes wound closure, vascular access, and specialty needle products. Wound closure products include sutures, needles and other surgical products. Vascular access includes introducers, guidewires and related products. Specialty needles include coaxial, biopsy, spinal and disposable veress needles, access trocars, and other needle-based products. The surgical products segment serves a number of markets and applications, including, among other areas, interventional cardiology, interventional radiology, vascular surgery, orthopedics, plastic surgery, dental surgery, urology, veterinary medicine, pain management, endoscopy, and spinal surgery. Theragenics’ brachytherapy business manufactures, markets and distributes “seeds” used primarily in the minimally invasive treatment of localized prostate cancer. The Company’s brachytherapy product line includes its palladium-103 TheraSeed device and its iodine-125 AgX100™ device (). The terms "Company," "we," "us," or "our" mean Theragenics Corporation and all entities included in our consolidated financial statements. For additional information, call our Investor Relations Department at (800) 998-8479 or visit .

Charges for accounts receivable from Core Oncology under our prior distribution agreement for which we believed collection was doubtful.

Represents expenses associated with consideration of and response to unsolicited acquisition proposal.