Endo Reports Second-Quarter 2018 Financial Results
- Second-quarter 2018 revenues of
$715 million compared to second-quarter 2017 revenues of$876 million - Second-quarter 2018 XIAFLEX® franchise revenues increased 27 percent versus second-quarter 2017 to
$64 million - Second-quarter 2018 Sterile Injectables revenues increased 21 percent versus second-quarter 2017 to
$218 million - Entered exclusive licensing agreement with Nevakar for the development of five 505(b)(2) injectable products
- Company raises 2018 financial guidance
- Phase 3 trials for collagenase clostridium histolyticum (CCH) for the treatment of cellulite now expected to have top-line results in fourth-quarter 2018
- Revenues of
$715 million , an 18 percent decrease compared to second-quarter 2017 revenues of$876 million ; revenues increased two percent compared to first-quarter 2018. - Reported net loss from continuing operations of
$52 million compared to second-quarter 2017 reported net loss from continuing operations of$696 million . - Reported diluted loss per share from continuing operations of
$0.23 compared to second-quarter 2017 reported diluted loss per share from continuing operations of$3.12 . - Adjusted income from continuing operations of
$172 million compared to second-quarter 2017 adjusted income from continuing operations of$207 million . - Adjusted diluted EPS from continuing operations of
$0.76 compared to second-quarter 2017 adjusted diluted EPS from continuing operations of$0.93 . - Adjusted EBITDA of
$351 million compared to second-quarter 2017 adjusted EBITDA of$388 million .
"Throughout 2018, we successfully executed on our strategic initiatives. We continued to reinvest into our Specialty segment, which delivered record Xiaflex sales in the second-quarter. The recent growth of our U.S. Branded Sterile Injectables business has focused our efforts on completing the Somerset/
|
FINANCIAL PERFORMANCE |
|||||||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||||||
|
2018 |
2017 |
Change |
2018 |
2017 |
Change |
||||||||||||||||
|
Total Revenues |
$ |
714,696 |
$ |
875,731 |
(18) |
% |
$ |
1,415,223 |
$ |
1,913,331 |
(26) |
% |
|||||||||
|
Reported Loss from Continuing |
$ |
(52,479) |
$ |
(696,020) |
(92) |
% |
$ |
(550,217) |
$ |
(861,443) |
(36) |
% |
|||||||||
|
Reported Diluted Weighted Average |
223,834 |
223,158 |
— |
% |
223,677 |
223,086 |
— |
% |
|||||||||||||
|
Reported Diluted Loss per Share |
$ |
(0.23) |
$ |
(3.12) |
(93) |
% |
$ |
(2.46) |
$ |
(3.86) |
(36) |
% |
|||||||||
|
Adjusted Income from Continuing |
$ |
172,195 |
$ |
207,201 |
(17) |
% |
$ |
322,978 |
$ |
482,446 |
(33) |
% |
|||||||||
|
Adjusted Diluted Weighted Average |
227,273 |
223,785 |
2 |
% |
226,114 |
223,560 |
1 |
% |
|||||||||||||
|
Adjusted Diluted EPS from |
$ |
0.76 |
$ |
0.93 |
(18) |
% |
$ |
1.43 |
$ |
2.16 |
(34) |
% |
|||||||||
__________
|
(1) |
Diluted per share data is computed based on weighted average shares outstanding and, if there is income from continuing operations during the period, the dilutive impact of share equivalents outstanding during the period. In the case of Adjusted Diluted Weighted Average Shares, Adjusted Income from Continuing Operations is used in determining whether to include such dilutive impact. |
CONSOLIDATED RESULTS
Total revenues were
GAAP net loss from continuing operations in second-quarter 2018 was
Adjusted income from continuing operations in second-quarter 2018 was
U.S. BRANDED - SPECIALTY & ESTABLISHED PHARMACEUTICALS
During second-quarter 2018, Endo accelerated the recruitment for two Phase 3 clinical trials of collagenase clostridium histolyticum (or "CCH") for the treatment of cellulite and now expects topline results in fourth-quarter 2018.
Second-quarter 2018 U.S. Branded -
- Revenues of
$213 million compared to$245 million in second-quarter 2017; this performance was primarily attributable to the voluntary cessation of OPANA® ER shipments in third-quarter 2017. Excluding OPANA® ER and SUMAVEL™ DosePro™, which was discontinued in first-quarter 2018, revenues increased two percent compared to second-quarter 2017. - Specialty Products revenues increased 9 percent in second-quarter 2018 compared to second-quarter 2017, primarily driven by strong performance from XIAFLEX®. Sales of XIAFLEX® increased 27 percent compared to second-quarter 2017; this increase was primarily attributable to volume growth in both Dupuytren's Contracture and Peyronie's Disease.
U.S. BRANDED - STERILE INJECTABLES
During second-quarter 2018, the U.S. Branded Sterile Injectables segment launched glycopyrrolate injection, the generic version of ROBINUL®, as Somerset Therapeutics' exclusive distributor.
Also in second-quarter 2018, Endo entered into an exclusive licensing agreement with Nevakar, a specialty pharmaceutical company developing multiple assets in the ophthalmic and injectable areas, for the development of five differentiated, sterile injectable products in the U.S. and
Second-quarter 2018 U.S. Branded - Sterile Injectables results include:
- Revenues of
$218 million , a 21 percent increase compared to second-quarter 2017; this increase was primarily attributable to strong growth of ADRENALIN® and VASOSTRICT®.
U.S. GENERIC PHARMACEUTICALS
During second-quarter 2018, the
Second-quarter 2018
- Revenues of
$241 million compared to$383 million in second-quarter 2017; this performance was primarily attributable to the loss of marketing exclusivity in the first half of 2017 for the first-to-file product ezetimibe tablets. Also contributing were the annualization of the impact from 2017 competitive entries and previously announced product discontinuances, including the authorized generic of metoprolol.
INTERNATIONAL PHARMACEUTICALS
Second-quarter 2018
2018 FINANCIAL GUIDANCE
For the full twelve months ending December 31, 2018, at current exchange rates, Endo is raising its financial guidance. The Company now estimates:
- Total revenues to be between
$2.75 billion and $2.85 billion ; - Adjusted diluted EPS from continuing operations to be between
$2.50 and $2.60 ; and - Adjusted EBITDA from continuing operations to be between
$1.27 billion and $1.33 billion .
The Company's 2018 non-GAAP financial guidance is based on the following assumptions:
- Adjusted gross margin of approximately 68.5% to 69.5%;
- Adjusted operating expenses as a percentage of revenues of approximately 26.0% to 27.0%;
- Adjusted interest expense of approximately
$530 million to $540 million ; - Adjusted effective tax rate of approximately 11.0% to 12.0%; and
- Adjusted diluted weighted average shares outstanding of approximately 229 million.
BALANCE SHEET, LIQUIDITY AND OTHER UPDATES
As of June 30, 2018, the Company had
Second-quarter 2018 cash provided by operating activities was
CONFERENCE CALL INFORMATION
Endo will conduct a conference call with financial analysts to discuss this press release today at
A replay of the call will be available from August 8, 2018 at
A simultaneous webcast of the call can be accessed by visiting http://investor.endo.com/events-and-presentations. In addition, a replay of the webcast will be available on the Company website for one year following the event.
ZETIA is a U.S. registered trademark of
DOSEPRO is a U.S. registered trademark of
ROBINUL is a U.S. registered trademark of
VOLTAREN is a registered trademark of
COLCRYS is a registered trademark of
BILTRICIDE is a registered trademark of
INVANZ is a registered trademark of
|
FINANCIAL SCHEDULES |
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|
The following table presents Endo's unaudited Total Revenues for the three and six months ended June 30, 2018 and 2017 |
|||||||||||||||||||||
|
Three Months Ended June 30, |
Percent |
Six Months Ended June 30, |
Percent |
||||||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||||||||
|
U.S. Branded - Specialty & |
|||||||||||||||||||||
|
Specialty Products: |
|||||||||||||||||||||
|
XIAFLEX® |
$ |
63,500 |
$ |
50,077 |
27 |
% |
$ |
120,641 |
$ |
99,602 |
21 |
% |
|||||||||
|
SUPPRELIN® LA |
19,963 |
23,649 |
(16) |
% |
40,540 |
42,830 |
(5) |
% |
|||||||||||||
|
Other Specialty (1) |
36,429 |
36,745 |
(1) |
% |
70,626 |
72,773 |
(3) |
% |
|||||||||||||
|
Total Specialty Products |
$ |
119,892 |
$ |
110,471 |
9 |
% |
$ |
231,807 |
$ |
215,205 |
8 |
% |
|||||||||
|
Established Products: |
|||||||||||||||||||||
|
PERCOCET® |
$ |
30,833 |
$ |
30,889 |
— |
% |
$ |
62,809 |
$ |
61,834 |
2 |
% |
|||||||||
|
VOLTAREN® Gel |
17,811 |
20,270 |
(12) |
% |
29,128 |
34,544 |
(16) |
% |
|||||||||||||
|
OPANA® ER |
— |
31,582 |
(100) |
% |
— |
67,300 |
(100) |
% |
|||||||||||||
|
Other Established (2) |
44,101 |
51,976 |
(15) |
% |
89,128 |
116,464 |
(23) |
% |
|||||||||||||
|
Total Established Products |
$ |
92,745 |
$ |
134,717 |
(31) |
% |
$ |
181,065 |
$ |
280,142 |
(35) |
% |
|||||||||
|
Total U.S. Branded - Specialty & |
$ |
212,637 |
$ |
245,188 |
(13) |
% |
$ |
412,872 |
$ |
495,347 |
(17) |
% |
|||||||||
|
U.S. Branded - Sterile Injectables: |
|||||||||||||||||||||
|
VASOSTRICT® |
$ |
106,329 |
$ |
95,750 |
11 |
% |
$ |
220,054 |
$ |
194,908 |
13 |
% |
|||||||||
|
ADRENALIN® |
36,658 |
19,032 |
93 |
% |
66,398 |
25,129 |
NM |
||||||||||||||
|
Other Sterile Injectables (4) |
74,856 |
65,510 |
14 |
% |
147,245 |
132,423 |
11 |
% |
|||||||||||||
|
Total U.S. Branded - Sterile Injectables (3) |
$ |
217,843 |
$ |
180,292 |
21 |
% |
$ |
433,697 |
$ |
352,460 |
23 |
% |
|||||||||
|
Total U.S. Generic Pharmaceuticals |
$ |
241,236 |
$ |
383,020 |
(37) |
% |
$ |
490,476 |
$ |
932,835 |
(47) |
% |
|||||||||
|
Total International Pharmaceuticals |
$ |
42,980 |
$ |
67,231 |
(36) |
% |
$ |
78,178 |
$ |
132,689 |
(41) |
% |
|||||||||
|
Total Revenues |
$ |
714,696 |
$ |
875,731 |
(18) |
% |
$ |
1,415,223 |
$ |
1,913,331 |
(26) |
% |
|||||||||
__________
|
(1) |
Products included within Other Specialty include TESTOPEL®, NASCOBAL® Nasal Spray and AVEED®. |
|
(2) |
Products included within Other Established include, but are not limited to, LIDODERM®, EDEX®, TESTIM® and FORTESTA® Gel, including the authorized generics. |
|
(3) |
Individual products presented above represent the top two performing products in each product category and/or any product having revenues in excess of $25 million during any quarterly period in 2018 or 2017. |
|
(4) |
Products included within Other Sterile Injectables include, but are not limited to, APLISOL®, ephedrine sulfate injection and neostigmine methylsulfate injection. |
|
The following table presents unaudited Condensed Consolidated Statement of Operations data for the three and six months ended |
|||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
TOTAL REVENUES |
$ |
714,696 |
$ |
875,731 |
$ |
1,415,223 |
$ |
1,913,331 |
|||||||
|
COSTS AND EXPENSES: |
|||||||||||||||
|
Cost of revenues |
381,905 |
539,401 |
785,503 |
1,208,363 |
|||||||||||
|
Selling, general and administrative |
148,157 |
155,555 |
314,824 |
332,795 |
|||||||||||
|
Research and development |
82,102 |
40,869 |
120,748 |
83,878 |
|||||||||||
|
Litigation-related and other contingencies, net |
19,620 |
(2,600) |
17,120 |
(1,664) |
|||||||||||
|
Asset impairment charges |
22,767 |
725,044 |
471,183 |
929,006 |
|||||||||||
|
Acquisition-related and integration items |
5,161 |
4,190 |
11,996 |
15,070 |
|||||||||||
|
OPERATING INCOME (LOSS) FROM CONTINUING |
$ |
54,984 |
$ |
(586,728) |
$ |
(306,151) |
$ |
(654,117) |
|||||||
|
INTEREST EXPENSE, NET |
130,059 |
121,747 |
254,049 |
233,746 |
|||||||||||
|
LOSS ON EXTINGUISHMENT OF DEBT |
— |
51,734 |
— |
51,734 |
|||||||||||
|
OTHER INCOME, NET |
(28,831) |
(6,709) |
(31,709) |
(8,746) |
|||||||||||
|
LOSS FROM CONTINUING OPERATIONS BEFORE |
$ |
(46,244) |
$ |
(753,500) |
$ |
(528,491) |
$ |
(930,851) |
|||||||
|
INCOME TAX EXPENSE (BENEFIT) |
6,235 |
(57,480) |
21,726 |
(69,408) |
|||||||||||
|
LOSS FROM CONTINUING OPERATIONS |
$ |
(52,479) |
$ |
(696,020) |
$ |
(550,217) |
$ |
(861,443) |
|||||||
|
DISCONTINUED OPERATIONS, NET OF TAX |
(8,388) |
(700,498) |
(16,139) |
(708,903) |
|||||||||||
|
NET LOSS |
$ |
(60,867) |
$ |
(1,396,518) |
$ |
(566,356) |
$ |
(1,570,346) |
|||||||
|
NET LOSS PER SHARE—BASIC: |
|||||||||||||||
|
Continuing operations |
$ |
(0.23) |
$ |
(3.12) |
$ |
(2.46) |
$ |
(3.86) |
|||||||
|
Discontinued operations |
(0.04) |
(3.14) |
(0.07) |
(3.18) |
|||||||||||
|
Basic |
$ |
(0.27) |
$ |
(6.26) |
$ |
(2.53) |
$ |
(7.04) |
|||||||
|
NET LOSS PER SHARE—DILUTED: |
|||||||||||||||
|
Continuing operations |
$ |
(0.23) |
$ |
(3.12) |
$ |
(2.46) |
$ |
(3.86) |
|||||||
|
Discontinued operations |
(0.04) |
(3.14) |
(0.07) |
(3.18) |
|||||||||||
|
Diluted |
$ |
(0.27) |
$ |
(6.26) |
$ |
(2.53) |
$ |
(7.04) |
|||||||
|
WEIGHTED AVERAGE SHARES: |
|||||||||||||||
|
Basic |
223,834 |
223,158 |
223,677 |
223,086 |
|||||||||||
|
Diluted |
223,834 |
223,158 |
223,677 |
223,086 |
|||||||||||
|
The following table presents unaudited Condensed Consolidated Balance Sheet data at June 30, 2018 and |
|||||||
|
June 30, 2018 |
December 31, |
||||||
|
ASSETS |
|||||||
|
CURRENT ASSETS: |
|||||||
|
Cash and cash equivalents |
$ |
1,098,788 |
$ |
986,605 |
|||
|
Restricted cash and cash equivalents |
358,211 |
320,453 |
|||||
|
Accounts receivable |
451,240 |
517,436 |
|||||
|
Inventories, net |
343,318 |
391,437 |
|||||
|
Other current assets |
57,341 |
55,146 |
|||||
|
Total current assets |
$ |
2,308,898 |
$ |
2,271,077 |
|||
|
TOTAL NON-CURRENT ASSETS |
8,549,137 |
9,364,503 |
|||||
|
TOTAL ASSETS |
$ |
10,858,035 |
$ |
11,635,580 |
|||
|
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY |
|||||||
|
CURRENT LIABILITIES: |
|||||||
|
Accounts payable and accrued expenses, including legal settlement accruals |
$ |
2,117,079 |
$ |
2,184,618 |
|||
|
Other current liabilities |
35,987 |
36,291 |
|||||
|
Total current liabilities |
$ |
2,153,066 |
$ |
2,220,909 |
|||
|
LONG-TERM DEBT, LESS CURRENT PORTION, NET |
8,233,005 |
8,242,032 |
|||||
|
OTHER LIABILITIES |
534,041 |
687,759 |
|||||
|
SHAREHOLDERS' (DEFICIT) EQUITY |
(62,077) |
484,880 |
|||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY |
$ |
10,858,035 |
$ |
11,635,580 |
|||
|
The following table presents unaudited Condensed Consolidated Statement of Cash Flow data for the six months ended |
|||||||
|
Six Months Ended June 30, |
|||||||
|
2018 |
2017 |
||||||
|
OPERATING ACTIVITIES: |
|||||||
|
Net loss |
$ |
(566,356) |
$ |
(1,570,346) |
|||
|
Adjustments to reconcile Net loss to Net cash provided by operating activities: |
|||||||
|
Depreciation and amortization |
379,646 |
499,656 |
|||||
|
Asset impairment charges |
471,183 |
929,006 |
|||||
|
Other, including cash payments to claimants from Qualified Settlement Funds |
(65,341) |
480,770 |
|||||
|
Net cash provided by operating activities |
$ |
219,132 |
$ |
339,086 |
|||
|
INVESTING ACTIVITIES: |
|||||||
|
Purchases of property, plant and equipment, excluding capitalized interest |
$ |
(41,960) |
$ |
(59,729) |
|||
|
Proceeds from sale of business and other assets, net |
37,971 |
18,531 |
|||||
|
Other |
(4,999) |
— |
|||||
|
Net cash used in investing activities |
$ |
(8,988) |
$ |
(41,198) |
|||
|
FINANCING ACTIVITIES: |
|||||||
|
Payments on borrowings, net |
$ |
(19,650) |
$ |
(2,550) |
|||
|
Other |
(21,143) |
(97,033) |
|||||
|
Net cash used in financing activities |
$ |
(40,793) |
$ |
(99,583) |
|||
|
Effect of foreign exchange rate |
(1,010) |
2,926 |
|||||
|
Movement in cash held for sale |
— |
(21,125) |
|||||
|
NET INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND |
$ |
168,341 |
$ |
180,106 |
|||
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH |
1,311,014 |
805,180 |
|||||
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH |
$ |
1,479,355 |
$ |
985,286 |
|||
SUPPLEMENTAL FINANCIAL INFORMATION
To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures. For additional information on the Company's use of such non-GAAP financial measures, refer to Endo's Current Report on Form 8-K furnished today to the
The tables below provide reconciliations of certain of our non-GAAP financial measures to their most directly comparable GAAP amounts. Refer to the "Notes to the Reconciliations of GAAP and Non-GAAP Financial Measures" section below for additional details regarding the adjustments to the non-GAAP financial measures detailed throughout this Supplemental Financial Information section.
|
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP) |
|||||||||||||||
|
The following table provides a reconciliation of Net loss (GAAP) to Adjusted EBITDA (non-GAAP) for the three and six |
|||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
Net loss (GAAP) |
$ |
(60,867) |
$ |
(1,396,518) |
$ |
(566,356) |
$ |
(1,570,346) |
|||||||
|
Income tax expense (benefit) |
6,235 |
(57,480) |
21,726 |
(69,408) |
|||||||||||
|
Interest expense, net |
130,059 |
121,747 |
254,049 |
233,746 |
|||||||||||
|
Depreciation and amortization (15) |
170,011 |
212,801 |
344,469 |
496,910 |
|||||||||||
|
EBITDA (non-GAAP) |
$ |
245,438 |
$ |
(1,119,450) |
$ |
53,888 |
$ |
(909,098) |
|||||||
|
Inventory step-up and other cost savings (2) |
$ |
124 |
$ |
100 |
$ |
190 |
$ |
215 |
|||||||
|
Upfront and milestone-related payments (3) |
36,964 |
3,082 |
38,296 |
6,177 |
|||||||||||
|
Inventory reserve increase from restructuring (4) |
202 |
7,899 |
2,590 |
7,899 |
|||||||||||
|
Separation benefits and other restructuring (5) |
28,951 |
16,715 |
75,550 |
39,385 |
|||||||||||
|
Certain litigation-related and other contingencies, net (6) |
19,620 |
(2,600) |
17,120 |
(1,664) |
|||||||||||
|
Asset impairment charges (7) |
22,767 |
725,044 |
471,183 |
929,006 |
|||||||||||
|
Acquisition-related and integration costs (8) |
1,034 |
2,240 |
1,034 |
6,936 |
|||||||||||
|
Fair value of contingent consideration (9) |
4,127 |
1,950 |
10,962 |
8,134 |
|||||||||||
|
Loss on extinguishment of debt (10) |
— |
51,734 |
— |
51,734 |
|||||||||||
|
Share-based compensation |
12,096 |
7,512 |
29,986 |
27,005 |
|||||||||||
|
Other income, net (16) |
(28,831) |
(6,709) |
(31,709) |
(8,746) |
|||||||||||
|
Other adjustments |
(10) |
(114) |
(708) |
(17) |
|||||||||||
|
Discontinued operations, net of tax (13) |
8,388 |
700,498 |
16,139 |
708,903 |
|||||||||||
|
Adjusted EBITDA (non-GAAP) |
$ |
350,870 |
$ |
387,901 |
$ |
684,521 |
$ |
865,869 |
|||||||
|
Reconciliation of Adjusted Income from Continuing Operations (non-GAAP) |
|||||||||||||||
|
The following table provides a reconciliation of our Loss from continuing operations (GAAP) to our Adjusted income from |
|||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
Loss from continuing operations (GAAP) |
$ |
(52,479) |
$ |
(696,020) |
$ |
(550,217) |
$ |
(861,443) |
|||||||
|
Non-GAAP adjustments: |
|||||||||||||||
|
Amortization of intangible assets (1) |
153,215 |
190,943 |
310,387 |
454,077 |
|||||||||||
|
Inventory step-up and other cost savings (2) |
124 |
100 |
190 |
215 |
|||||||||||
|
Upfront and milestone-related payments (3) |
36,964 |
3,082 |
38,296 |
6,177 |
|||||||||||
|
Inventory reserve increase from restructuring (4) |
202 |
7,899 |
2,590 |
7,899 |
|||||||||||
|
Separation benefits and other restructuring (5) |
28,951 |
16,715 |
75,550 |
39,385 |
|||||||||||
|
Certain litigation-related and other contingencies, net (6) |
19,620 |
(2,600) |
17,120 |
(1,664) |
|||||||||||
|
Asset impairment charges (7) |
22,767 |
725,044 |
471,183 |
929,006 |
|||||||||||
|
Acquisition-related and integration costs (8) |
1,034 |
2,240 |
1,034 |
6,936 |
|||||||||||
|
Fair value of contingent consideration (9) |
4,127 |
1,950 |
10,962 |
8,134 |
|||||||||||
|
Loss on extinguishment of debt (10) |
— |
51,734 |
— |
51,734 |
|||||||||||
|
Other (11) |
(28,007) |
(3,233) |
(31,261) |
(4,168) |
|||||||||||
|
Tax adjustments (12) |
(14,323) |
(90,653) |
(22,856) |
(153,842) |
|||||||||||
|
Adjusted income from continuing operations (non-GAAP) |
$ |
172,195 |
$ |
207,201 |
$ |
322,978 |
$ |
482,446 |
|||||||
|
Reconciliation of Other Adjusted Income Statement Data (non-GAAP) |
|||||||||||||||||||||||||||||||
|
The following tables provide detailed reconciliations of various other income statement data between the GAAP and non-GAAP amounts for the three and six months ended June 30, 2018 |
|||||||||||||||||||||||||||||||
|
Three Months Ended June 30, 2018 |
|||||||||||||||||||||||||||||||
|
Total revenues |
Cost of revenues |
Gross margin |
Gross margin % |
Total operating expenses |
Operating expense to revenue % |
Operating income from continuing operations |
Operating margin % |
Other non-operating expense, net |
(Loss) income from continuing operations before income tax |
Income tax expense |
Effective tax rate |
(Loss) income from continuing operations |
Discontinued operations, net of tax |
Net (loss) income |
Diluted (loss) income per share from continuing operations (14) |
||||||||||||||||
|
Reported (GAAP) |
$ 714,696 |
$ 381,905 |
$ 332,791 |
47 % |
$ 277,807 |
39 % |
$ 54,984 |
8 % |
$ 101,228 |
$ (46,244) |
$ 6,235 |
(13)% |
$ (52,479) |
$ (8,388) |
$ (60,867) |
$ (0.23) |
|||||||||||||||
|
Items impacting comparability: |
|||||||||||||||||||||||||||||||
|
Amortization of intangible assets (1) |
— |
(153,215) |
153,215 |
— |
153,215 |
— |
153,215 |
— |
153,215 |
— |
153,215 |
0.67 |
|||||||||||||||||||
|
Inventory step-up and other cost savings (2) |
— |
(124) |
124 |
— |
124 |
— |
124 |
— |
124 |
— |
124 |
— |
|||||||||||||||||||
|
Upfront and milestone-related payments (3) |
— |
(694) |
694 |
(36,270) |
36,964 |
— |
36,964 |
— |
36,964 |
— |
36,964 |
0.17 |
|||||||||||||||||||
|
Inventory reserve increase from restructuring (4) |
— |
(202) |
202 |
— |
202 |
— |
202 |
— |
202 |
— |
202 |
— |
|||||||||||||||||||
|
Separation benefits and other restructuring (5) |
— |
(26,613) |
26,613 |
(2,338) |
28,951 |
— |
28,951 |
— |
28,951 |
— |
28,951 |
0.13 |
|||||||||||||||||||
|
Certain litigation-related and |
— |
— |
— |
(19,620) |
19,620 |
— |
19,620 |
— |
19,620 |
— |
19,620 |
0.09 |
|||||||||||||||||||
|
Asset impairment charges (7) |
— |
— |
— |
(22,767) |
22,767 |
— |
22,767 |
— |
22,767 |
— |
22,767 |
0.10 |
|||||||||||||||||||
|
Acquisition-related and integration costs (8) |
— |
— |
— |
(1,034) |
1,034 |
— |
1,034 |
— |
1,034 |
— |
1,034 |
— |
|||||||||||||||||||
|
Fair value of contingent consideration (9) |
— |
— |
— |
(4,127) |
4,127 |
— |
4,127 |
— |
4,127 |
— |
4,127 |
0.02 |
|||||||||||||||||||
|
Other (11) |
— |
— |
— |
— |
— |
28,007 |
(28,007) |
— |
(28,007) |
— |
(28,007) |
(0.13) |
|||||||||||||||||||
|
Tax adjustments (12) |
— |
— |
— |
— |
— |
— |
— |
14,323 |
(14,323) |
— |
(14,323) |
(0.06) |
|||||||||||||||||||
|
Exclude discontinued operations, net of tax (13) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
8,388 |
8,388 |
— |
|||||||||||||||||||
|
After considering items (non-GAAP) |
$ 714,696 |
$ 201,057 |
$ 513,639 |
72 % |
$ 191,651 |
27 % |
$ 321,988 |
45 % |
$ 129,235 |
$ 192,753 |
$ 20,558 |
11 % |
$ 172,195 |
$ — |
$ 172,195 |
$ 0.76 |
|||||||||||||||
|
Three Months Ended June 30, 2017 |
|||||||||||||||||||||||||||||||
|
Total revenues |
Cost of revenues |
Gross margin |
Gross margin % |
Total operating expenses |
Operating expense to revenue % |
Operating (loss) income from continuing operations |
Operating margin % |
Other non-operating expense, net |
(Loss) income from continuing operations before income tax |
Income tax (benefit) expense |
Effective tax rate |
(Loss) income from continuing operations |
Discontinued operations, net of tax |
Net (loss) income |
Diluted (loss) income per share from continuing operations (14) |
||||||||||||||||
|
Reported (GAAP) |
$ 875,731 |
$ 539,401 |
$ 336,330 |
38 % |
$ 923,058 |
105 % |
$ (586,728) |
(67)% |
$ 166,772 |
$ (753,500) |
$ (57,480) |
8 % |
$ (696,020) |
$ (700,498) |
$ (1,396,518) |
$ (3.12) |
|||||||||||||||
|
Items impacting comparability: |
|||||||||||||||||||||||||||||||
|
Amortization of intangible assets (1) |
— |
(190,943) |
190,943 |
— |
190,943 |
— |
190,943 |
— |
190,943 |
— |
190,943 |
0.86 |
|||||||||||||||||||
|
Inventory step-up and other cost savings (2) |
— |
(100) |
100 |
— |
100 |
— |
100 |
— |
100 |
— |
100 |
— |
|||||||||||||||||||
|
Upfront and milestone-related payments (3) |
— |
(682) |
682 |
(2,400) |
3,082 |
— |
3,082 |
— |
3,082 |
— |
3,082 |
0.01 |
|||||||||||||||||||
|
Inventory reserve increase from restructuring (4) |
— |
(7,899) |
7,899 |
— |
7,899 |
— |
7,899 |
— |
7,899 |
— |
7,899 |
0.04 |
|||||||||||||||||||
|
Separation benefits and other restructuring (5) |
— |
(5,026) |
5,026 |
(11,689) |
16,715 |
— |
16,715 |
— |
16,715 |
— |
16,715 |
0.07 |
|||||||||||||||||||
|
Certain litigation-related and |
— |
— |
— |
2,600 |
(2,600) |
— |
(2,600) |
— |
(2,600) |
— |
(2,600) |
(0.01) |
|||||||||||||||||||
|
Asset impairment charges (7) |
— |
— |
— |
(725,044) |
725,044 |
— |
725,044 |
— |
725,044 |
— |
725,044 |
3.25 |
|||||||||||||||||||
|
Acquisition-related and integration costs (8) |
— |
— |
— |
(2,240) |
2,240 |
— |
2,240 |
— |
2,240 |
— |
2,240 |
0.01 |
|||||||||||||||||||
|
Fair value of contingent consideration (9) |
— |
— |
— |
(1,950) |
1,950 |
— |
1,950 |
— |
1,950 |
— |
1,950 |
0.01 |
|||||||||||||||||||
|
Loss on extinguishment of debt (10) |
— |
— |
— |
— |
— |
(51,734) |
51,734 |
— |
51,734 |
— |
51,734 |
0.23 |
|||||||||||||||||||
|
Other (11) |
— |
— |
— |
— |
— |
3,233 |
(3,233) |
— |
(3,233) |
— |
(3,233) |
(0.01) |
|||||||||||||||||||
|
Tax adjustments (12) |
— |
— |
— |
— |
— |
— |
— |
90,653 |
(90,653) |
— |
(90,653) |
(0.41) |
|||||||||||||||||||
|
Exclude discontinued operations, net of tax (13) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
700,498 |
700,498 |
— |
|||||||||||||||||||
|
After considering items (non-GAAP) |
$ 875,731 |
$ 334,751 |
$ 540,980 |
62 % |
$ 182,335 |
21 % |
$ 358,645 |
41 % |
$ 118,271 |
$ 240,374 |
$ 33,173 |
14 % |
$ 207,201 |
$ — |
$ 207,201 |
$ 0.93 |
|||||||||||||||
|
Six Months Ended June 30, 2018 |
|||||||||||||||||||||||||||||||
|
Total revenues |
Cost of revenues |
Gross margin |
Gross margin % |
Total operating expenses |
Operating expense to revenue % |
Operating (loss) income from continuing operations |
Operating margin % |
Other non-operating expense, net |
(Loss) income from continuing operations before income tax |
Income tax expense |
Effective tax rate |
(Loss) income from continuing operations |
Discontinued operations, net of tax |
Net (loss) income |
Diluted (loss) income per share from continuing operations (14) |
||||||||||||||||
|
Reported (GAAP) |
$ 1,415,223 |
$ 785,503 |
$ 629,720 |
44 % |
$ 935,871 |
66 % |
$ (306,151) |
(22)% |
$ 222,340 |
$ (528,491) |
$ 21,726 |
(4)% |
$ (550,217) |
$ (16,139) |
$ (566,356) |
$ (2.46) |
|||||||||||||||
|
Items impacting comparability: |
|||||||||||||||||||||||||||||||
|
Amortization of intangible assets (1) |
— |
(310,387) |
310,387 |
— |
310,387 |
— |
310,387 |
— |
310,387 |
— |
310,387 |
1.38 |
|||||||||||||||||||
|
Inventory step-up and other cost savings (2) |
— |
(190) |
190 |
— |
190 |
— |
190 |
— |
190 |
— |
190 |
— |
|||||||||||||||||||
|
Upfront and milestone-related payments (3) |
— |
(1,350) |
1,350 |
(36,946) |
38,296 |
— |
38,296 |
— |
38,296 |
— |
38,296 |
0.17 |
|||||||||||||||||||
|
Inventory reserve increase from restructuring (4) |
— |
(2,590) |
2,590 |
— |
2,590 |
— |
2,590 |
— |
2,590 |
— |
2,590 |
0.01 |
|||||||||||||||||||
|
Separation benefits and other restructuring (5) |
— |
(53,831) |
53,831 |
(21,719) |
75,550 |
— |
75,550 |
— |
75,550 |
— |
75,550 |
0.34 |
|||||||||||||||||||
|
Certain litigation-related and |
— |
— |
— |
(17,120) |
17,120 |
— |
17,120 |
— |
17,120 |
— |
17,120 |
0.08 |
|||||||||||||||||||
|
Asset impairment charges (7) |
— |
— |
— |
(471,183) |
471,183 |
— |
471,183 |
— |
471,183 |
— |
471,183 |
2.10 |
|||||||||||||||||||
|
Acquisition-related and integration costs (8) |
— |
— |
— |
(1,034) |
1,034 |
— |
1,034 |
— |
1,034 |
— |
1,034 |
— |
|||||||||||||||||||
|
Fair value of contingent consideration (9) |
— |
— |
— |
(10,962) |
10,962 |
— |
10,962 |
— |
10,962 |
— |
10,962 |
0.05 |
|||||||||||||||||||
|
Other (11) |
— |
— |
— |
630 |
(630) |
30,631 |
(31,261) |
— |
(31,261) |
— |
(31,261) |
(0.14) |
|||||||||||||||||||
|
Tax adjustments (12) |
— |
— |
— |
— |
— |
— |
— |
22,856 |
(22,856) |
— |
(22,856) |
(0.10) |
|||||||||||||||||||
|
Exclude discontinued operations, net of tax (13) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
16,139 |
16,139 |
— |
|||||||||||||||||||
|
After considering items (non-GAAP) |
$ 1,415,223 |
$ 417,155 |
$ 998,068 |
71 % |
$ 377,537 |
27 % |
$ 620,531 |
44 % |
$ 252,971 |
$ 367,560 |
$ 44,582 |
12 % |
$ 322,978 |
$ — |
$ 322,978 |
$ 1.43 |
|||||||||||||||
|
Six Months Ended June 30, 2017 |
|||||||||||||||||||||||||||||||
|
Total revenues |
Cost of revenues |
Gross margin |
Gross margin % |
Total operating expenses |
Operating expense to revenue % |
Operating (loss) income from continuing operations |
Operating margin % |
Other non-operating expense, net |
(Loss) income from continuing operations before income tax |
Income tax (benefit) expense |
Effective tax rate |
(Loss) income from continuing operations |
Discontinued operations, net of tax |
Net (loss) income |
Diluted (loss) income per share from continuing operations (14) |
||||||||||||||||
|
Reported (GAAP) |
$ 1,913,331 |
$ 1,208,363 |
$ 704,968 |
37 % |
$ 1,359,085 |
71 % |
$ (654,117) |
(34)% |
$ 276,734 |
$ (930,851) |
$ (69,408) |
7 % |
$ (861,443) |
$ (708,903) |
$ (1,570,346) |
$ (3.86) |
|||||||||||||||
|
Items impacting comparability: |
|||||||||||||||||||||||||||||||
|
Amortization of intangible assets (1) |
— |
(454,077) |
454,077 |
— |
454,077 |
— |
454,077 |
— |
454,077 |
— |
454,077 |
2.03 |
|||||||||||||||||||
|
Inventory step-up and other cost savings (2) |
— |
(215) |
215 |
— |
215 |
— |
215 |
— |
215 |
— |
215 |
— |
|||||||||||||||||||
|
Upfront and milestone-related payments (3) |
— |
(1,351) |
1,351 |
(4,826) |
6,177 |
— |
6,177 |
— |
6,177 |
— |
6,177 |
0.03 |
|||||||||||||||||||
|
Inventory reserve increase from restructuring (4) |
— |
(7,899) |
7,899 |
— |
7,899 |
— |
7,899 |
— |
7,899 |
— |
7,899 |
0.04 |
|||||||||||||||||||
|
Separation benefits and other restructuring (5) |
— |
(6,687) |
6,687 |
(32,698) |
39,385 |
— |
39,385 |
— |
39,385 |
— |
39,385 |
0.18 |
|||||||||||||||||||
|
Certain litigation-related and |
— |
— |
— |
1,664 |
(1,664) |
— |
(1,664) |
— |
(1,664) |
— |
(1,664) |
(0.01) |
|||||||||||||||||||
|
Asset impairment charges (7) |
— |
— |
— |
(929,006) |
929,006 |
— |
929,006 |
— |
929,006 |
— |
929,006 |
4.16 |
|||||||||||||||||||
|
Acquisition-related and integration costs (8) |
— |
— |
— |
(6,936) |
6,936 |
— |
6,936 |
— |
6,936 |
— |
6,936 |
0.03 |
|||||||||||||||||||
|
Fair value of contingent consideration (9) |
— |
— |
— |
(8,134) |
8,134 |
— |
8,134 |
— |
8,134 |
— |
8,134 |
0.04 |
|||||||||||||||||||
|
Loss on extinguishment of debt (10) |
— |
— |
— |
— |
— |
(51,734) |
51,734 |
— |
51,734 |
— |
51,734 |
0.23 |
|||||||||||||||||||
|
Other (11) |
— |
— |
— |
— |
— |
4,168 |
(4,168) |
— |
(4,168) |
— |
(4,168) |
(0.02) |
|||||||||||||||||||
|
Tax adjustments (12) |
— |
— |
— |
— |
— |
— |
— |
153,842 |
(153,842) |
— |
(153,842) |
(0.69) |
|||||||||||||||||||
|
Exclude discontinued operations, net of tax (13) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
708,903 |
708,903 |
— |
|||||||||||||||||||
|
After considering items (non-GAAP) |
$ 1,913,331 |
$ 738,134 |
$ 1,175,197 |
61 % |
$ 379,149 |
20 % |
$ 796,048 |
42 % |
$ 229,168 |
$ 566,880 |
$ 84,434 |
15 % |
$ 482,446 |
$ — |
$ 482,446 |
$ 2.16 |
|||||||||||||||
|
Notes to the Reconciliations of GAAP and Non-GAAP Financial Measures |
|
|
Notes to certain line items included in the reconciliations of the GAAP financial measures to the Non-GAAP financial measures for the three and six months ended June 30, 2018 and 2017 are as follows: |
|
|
(1) |
Adjustments for amortization of commercial intangible assets included the following (in thousands): |
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
Amortization of intangible assets excluding fair value |
$ |
146,906 |
$ |
180,886 |
$ |
296,766 |
$ |
433,775 |
|||||||
|
Amortization of intangible assets related to fair value |
6,309 |
10,057 |
13,621 |
20,302 |
|||||||||||
|
Total |
$ |
153,215 |
$ |
190,943 |
$ |
310,387 |
$ |
454,077 |
|||||||
|
(2) |
To exclude adjustments for inventory step-up. |
|
(3) |
Adjustments for upfront and milestone-related payments to partners included the following (in thousands): |
|
Three Months Ended June 30, |
|||||||||||||||
|
2018 |
2017 |
||||||||||||||
|
Cost of |
Operating |
Cost of |
Operating |
||||||||||||
|
Sales-based |
$ |
694 |
$ |
— |
$ |
682 |
$ |
— |
|||||||
|
Development-based |
— |
36,270 |
— |
2,400 |
|||||||||||
|
Total |
$ |
694 |
$ |
36,270 |
$ |
682 |
$ |
2,400 |
|||||||
|
Six Months Ended June 30, |
|||||||||||||||
|
2018 |
2017 |
||||||||||||||
|
Cost of |
Operating |
Cost of |
Operating |
||||||||||||
|
Sales-based |
$ |
1,350 |
$ |
— |
$ |
1,351 |
$ |
— |
|||||||
|
Development-based |
— |
36,946 |
— |
4,826 |
|||||||||||
|
Total |
$ |
1,350 |
$ |
36,946 |
$ |
1,351 |
$ |
4,826 |
|||||||
|
(4) |
To exclude charges reflecting adjustments to excess inventory reserves related to our various restructuring initiatives. |
|
(5) |
Adjustments for separation benefits and other restructuring included the following (in thousands): |
|
Three Months Ended June 30, |
|||||||||||||||
|
2018 |
2017 |
||||||||||||||
|
Cost of |
Operating |
Cost of |
Operating |
||||||||||||
|
Separation benefits |
$ |
3,983 |
$ |
1,440 |
$ |
609 |
$ |
128 |
|||||||
|
Accelerated depreciation and product |
18,045 |
— |
— |
— |
|||||||||||
|
Other |
4,585 |
898 |
4,417 |
11,561 |
|||||||||||
|
Total |
$ |
26,613 |
$ |
2,338 |
$ |
5,026 |
$ |
11,689 |
|||||||
|
Six Months Ended June 30, |
|||||||||||||||
|
2018 |
2017 |
||||||||||||||
|
Cost of |
Operating |
Cost of |
Operating |
||||||||||||
|
Separation benefits |
$ |
13,768 |
$ |
16,836 |
$ |
2,270 |
$ |
19,255 |
|||||||
|
Accelerated depreciation and product |
35,177 |
— |
— |
398 |
|||||||||||
|
Other |
4,886 |
4,883 |
4,417 |
13,045 |
|||||||||||
|
Total |
$ |
53,831 |
$ |
21,719 |
$ |
6,687 |
$ |
32,698 |
|||||||
|
(6) |
To exclude litigation-related settlement charges, reimbursements and certain settlements proceeds related to suits filed by our subsidiaries. |
|
(7) |
Adjustments for asset impairment charges included the following (in thousands): |
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
Goodwill impairment charges |
$ |
— |
$ |
206,143 |
$ |
391,000 |
$ |
288,745 |
|||||||
|
Other intangible asset impairment charges |
22,767 |
476,971 |
76,967 |
595,877 |
|||||||||||
|
Property, plant and equipment impairment charges |
— |
41,930 |
3,216 |
44,384 |
|||||||||||
|
Total asset impairment charges |
$ |
22,767 |
$ |
725,044 |
$ |
471,183 |
$ |
929,006 |
|||||||
|
(8) |
Adjustments for acquisition and integration items primarily relate to various acquisitions. Amounts included the following (in thousands): |
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
Integration costs (primarily third-party consulting fees) |
$ |
— |
$ |
2,233 |
$ |
— |
$ |
4,476 |
|||||||
|
Acquisition costs |
1,034 |
— |
1,034 |
— |
|||||||||||
|
Other |
— |
7 |
— |
2,460 |
|||||||||||
|
Total |
$ |
1,034 |
$ |
2,240 |
$ |
1,034 |
$ |
6,936 |
|||||||
|
(9) |
To exclude the impact of changes in the fair value of contingent consideration resulting from changes in market conditions impacting the commercial potential of the underlying products. |
|
(10) |
To exclude the loss on the extinguishment of debt associated with our April 2017 refinancing. |
|
(11) |
Other adjustments included the following (in thousands): |
|
Three Months Ended June 30, |
|||||||||||||||
|
2018 |
2017 |
||||||||||||||
|
Operating |
Other |
Operating |
Other |
||||||||||||
|
Foreign currency impact related to the re-measurement |
$ |
— |
$ |
(574) |
$ |
— |
$ |
(3,233) |
|||||||
|
(Gain) loss on sale of business and other assets |
— |
(23,837) |
— |
— |
|||||||||||
|
Other miscellaneous |
— |
(3,596) |
— |
— |
|||||||||||
|
Total |
$ |
— |
$ |
(28,007) |
$ |
— |
$ |
(3,233) |
|||||||
|
Six Months Ended June 30, |
|||||||||||||||
|
2018 |
2017 |
||||||||||||||
|
Operating |
Other |
Operating |
Other |
||||||||||||
|
Foreign currency impact related to the re-measurement |
$ |
— |
$ |
(3,088) |
$ |
— |
$ |
(5,927) |
|||||||
|
(Gain) loss on sale of business and other assets |
— |
(23,837) |
— |
— |
|||||||||||
|
Other miscellaneous |
(630) |
(3,706) |
— |
1,759 |
|||||||||||
|
Total |
$ |
(630) |
$ |
(30,631) |
$ |
— |
$ |
(4,168) |
|||||||
|
(12) |
Adjusted income taxes are calculated by tax effecting adjusted pre-tax income and permanent book-tax differences at the applicable effective tax rate that will be determined by reference to statutory tax rates in the relevant jurisdictions in which the Company operates. Adjusted income taxes include current and deferred income tax expense commensurate with the non-GAAP measure of profitability. |
|
(13) |
To exclude the results of the businesses reported as discontinued operations, net of tax in the Condensed Consolidated Statement of Operations. |
|
(14) |
Calculated as Net (loss) income from continuing operations divided by the applicable weighted average share number. The applicable weighted average share numbers are as follows (in thousands): |
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||
|
GAAP EPS |
223,834 |
223,158 |
223,677 |
223,086 |
|||||||
|
Non-GAAP EPS |
227,273 |
223,785 |
226,114 |
223,560 |
|||||||
|
(15) |
Depreciation and amortization per the Adjusted EBITDA reconciliations do not include certain depreciation amounts reflected in other lines of the reconciliations, including Acquisition-related and integration costs and Separation benefits and other restructuring. |
|
(16) |
To exclude Other income, net per the Consolidated Statement of Operations. |
|
Reconciliation of Net Debt Leverage Ratio (non-GAAP) |
|||
|
The following table provides a reconciliation of our Net loss (GAAP) to our Adjusted EBITDA (non-GAAP) for the twelve |
|||
|
Twelve Months |
|||
|
Net loss (GAAP) |
$ |
(1,031,443) |
|
|
Income tax benefit |
(159,159) |
||
|
Interest expense, net |
508,531 |
||
|
Depreciation and amortization (15) |
705,265 |
||
|
EBITDA (non-GAAP) |
$ |
23,194 |
|
|
Inventory step-up and other cost savings |
$ |
365 |
|
|
Upfront and milestone-related payments |
41,602 |
||
|
Inventory reserve increase from restructuring |
8,369 |
||
|
Separation benefits and other restructuring |
234,935 |
||
|
Certain litigation-related and other contingencies, net |
204,774 |
||
|
Asset impairment charges |
696,553 |
||
|
Acquisition-related and integration costs |
2,235 |
||
|
Fair value of contingent consideration |
52,777 |
||
|
Loss on extinguishment of debt |
— |
||
|
Share-based compensation |
53,130 |
||
|
Other income, net |
(39,986) |
||
|
Other adjustments |
(917) |
||
|
Discontinued operations, net of tax |
109,958 |
||
|
Adjusted EBITDA (non-GAAP) |
$ |
1,386,989 |
|
|
Calculation of Net Debt: |
|||
|
Debt |
$ |
8,267,210 |
|
|
Cash (excluding Restricted Cash) |
1,098,788 |
||
|
Net Debt (non-GAAP) |
$ |
7,168,422 |
|
|
Calculation of Net Debt Leverage: |
|||
|
Net Debt Leverage Ratio (non-GAAP) |
5.2 |
||
Non-GAAP Financial Measures
The Company utilizes certain financial measures that are not prescribed by or prepared in accordance with accounting principles generally accepted in the U.S. (GAAP). These Non-GAAP financial measures are not, and should not be viewed as, substitutes for GAAP net income and its components and diluted earnings per share amounts. Despite the importance of these measures to management in goal setting and performance measurement, we stress that these are Non-GAAP financial measures that have no standardized meaning prescribed by GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, Non-GAAP adjusted EBITDA and Non-GAAP adjusted net income from continuing operations and its components (unlike GAAP net income from continuing operations and its components) may not be comparable to the calculation of similar measures of other companies. These Non-GAAP financial measures are presented solely to permit investors to more fully understand how management assesses performance.
Investors are encouraged to review the reconciliations of the non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measures. However, the Company does not provide reconciliations of projected non-GAAP financial measures to GAAP financial measures, nor does it provide comparable projected GAAP financial measures for such projected non-GAAP financial measures. The Company is unable to provide such reconciliations without unreasonable efforts due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for asset impairments, contingent consideration adjustments, legal settlements, loss on extinguishment of debt, adjustments to inventory and other charges reflected in the reconciliation of historic numbers, the amount of which could be significant.
About
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements, including but not limited to the statements by Mr. Campanelli, as well as other statements regarding product development, market potential, corporate strategy, optimization efforts and restructurings, timing, closing and expected benefits and value from any acquisition, expected growth and regulatory approvals, together with Endo's earnings per share from continuing operations amounts, product net sales, revenue forecasts and any other statements that refer to Endo's expected, estimated or anticipated future results. Because forecasts are inherently estimates that cannot be made with precision, Endo's performance at times differs materially from its estimates and targets, and Endo often does not know what the actual results will be until after the end of the applicable reporting period. Therefore, Endo will not report or comment on its progress during a current quarter except through public announcement. Any statement made by others with respect to progress during a current quarter cannot be attributed to Endo.
All forward-looking statements in this press release reflect Endo's current analysis of existing trends and information and represent Endo's judgment only as of the date of this press release. Actual results may differ materially from current expectations based on a number of factors affecting Endo's businesses, including, among other things, the following: changing competitive, market and regulatory conditions; Endo's ability to obtain and maintain adequate protection for its intellectual property rights; the timing and uncertainty of the results of both the research and development and regulatory processes, including regulatory decisions, product recalls, withdrawals and other unusual items; domestic and foreign health care and cost containment reforms, including government pricing, tax and reimbursement policies; technological advances and patents obtained by competitors; the performance, including the approval, introduction, and consumer and physician acceptance of new products and the continuing acceptance of currently marketed products; the effectiveness of advertising and other promotional campaigns; the timely and successful implementation of strategic initiatives; the timing or results of any pending or future litigation, investigations or claims or actual or contingent liabilities, settlement discussions, negotiations or other adverse proceedings; timing and uncertainty of any acquisition, including the possibility that various closing conditions may not be satisfied or waived, uncertainty surrounding the successful integration of any acquired business and failure to achieve the expected financial and commercial results from such acquisition; the uncertainty associated with the identification of and successful consummation and execution of external corporate development initiatives and strategic partnering transactions; and Endo's ability to obtain and successfully maintain a sufficient supply of products to meet market demand in a timely manner. In addition, U.S. and international economic conditions, including higher unemployment, political instability, financial hardship, consumer confidence and debt levels, taxation, changes in interest and currency exchange rates, international relations, capital and credit availability, the status of financial markets and institutions, fluctuations or devaluations in the value of sovereign government debt, as well as the general impact of continued economic volatility, can materially affect Endo's results. Therefore, the reader is cautioned not to rely on these forward-looking statements. Endo expressly disclaims any intent or obligation to update these forward-looking statements except as required to do so by law.
Additional information concerning the above-referenced risk factors and other risk factors can be found in press releases issued by Endo, as well as Endo's public periodic filings with the
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SOURCE
Media: Heather Zoumas-Lubeski, (484) 216-6829; Investors: Nina Goworek, (484) 216-6657