ENDO REPORTS SECOND-QUARTER 2022 FINANCIAL RESULTS
SECOND-QUARTER FINANCIAL PERFORMANCE
(in thousands, except per share amounts)
Three Months Ended |
Six Months Ended |
||||||||||
2022 |
2021 |
Change |
2022 |
2021 |
Change |
||||||
Total Revenues, Net |
$ 569,114 |
$ 713,830 |
(20) % |
$ 1,221,373 |
$ 1,431,749 |
(15) % |
|||||
Reported (Loss) Income from |
$ (1,880,883) |
$ (10,184) |
NM |
$ (1,946,183) |
$ 36,875 |
NM |
|||||
Reported Diluted Weighted Average |
235,117 |
233,331 |
1 % |
234,498 |
237,043 |
(1) % |
|||||
Reported Diluted Net (Loss) Income |
$ (8.00) |
$ (0.04) |
NM |
$ (8.30) |
$ 0.16 |
NM |
|||||
Reported Net (Loss) Income |
$ (1,885,427) |
$ (15,500) |
NM |
$ (1,957,401) |
$ 26,024 |
NM |
|||||
Adjusted Income from Continuing |
$ 6,532 |
$ 147,121 |
(96) % |
$ 162,471 |
$ 322,038 |
(50) % |
|||||
Adjusted Diluted Weighted Average |
236,217 |
235,416 |
— % |
236,466 |
237,043 |
— % |
|||||
Adjusted Diluted Net Income per |
$ 0.03 |
$ 0.62 |
(95) % |
$ 0.69 |
$ 1.36 |
(49) % |
|||||
Adjusted EBITDA (2)(3) |
$ 160,206 |
$ 337,700 |
(53) % |
$ 471,132 |
$ 702,415 |
(33) % |
__________
(1) |
Reported Diluted Net (Loss) Income per Share from Continuing Operations is computed based on weighted average shares outstanding and, if there is |
(2) |
The information presented in the table above includes non-GAAP financial measures such as Adjusted Income from Continuing Operations, Adjusted |
(3) |
Effective |
CONSOLIDATED RESULTS
Total revenues were
Reported loss from continuing operations in second-quarter 2022 was
Adjusted income from continuing operations in second-quarter 2022 was
BRANDED PHARMACEUTICALS SEGMENT
Second-quarter 2022
Specialty Products revenues decreased 2% to
STERILE INJECTABLES SEGMENT
Second-quarter 2022 Sterile Injectables segment revenues were $123 million, a decrease of 58% compared to $295 million during second-quarter 2021. This was primarily attributable to decreased VASOSTRICT® revenues due to lower price and market share resulting from generic competition, channel inventory destocking and lower overall market volumes as COVID-19 related hospitalizations decline.
GENERIC PHARMACEUTICALS SEGMENT
Second-quarter 2022
INTERNATIONAL PHARMACEUTICALS SEGMENT
Second-quarter 2022
BALANCE SHEET, LIQUIDITY AND OTHER UPDATES
As of
Second-quarter 2022 net cash used in operating activities was
The Company remains in constructive negotiations with an ad hoc group of first lien creditors, among other parties. In light of the progress to date, the Company expects that these negotiations will likely result in a pre-arranged filing under Chapter 11 of the
Chantix® is a registered trademark of Pfizer Inc.
FINANCIAL SCHEDULES
The following table presents Endo's unaudited Total revenues, net for the three and six months ended
Three Months Ended |
Percent |
Six Months Ended |
Percent |
||||||||
2022 |
2021 |
2022 |
2021 |
||||||||
|
|||||||||||
Specialty Products: |
|||||||||||
XIAFLEX® |
$ 120,878 |
$ 111,487 |
8 % |
$ 220,362 |
$ 206,757 |
7 % |
|||||
SUPPRELIN® LA |
24,739 |
27,568 |
(10) % |
53,569 |
55,596 |
(4) % |
|||||
Other Specialty (1) |
18,246 |
28,036 |
(35) % |
38,990 |
48,068 |
(19) % |
|||||
Total Specialty Products |
$ 163,863 |
$ 167,091 |
(2) % |
$ 312,921 |
$ 310,421 |
1 % |
|||||
Established Products: |
|||||||||||
PERCOCET® |
$ 26,256 |
$ 26,156 |
— % |
$ 52,431 |
$ 51,781 |
1 % |
|||||
TESTOPEL® |
10,021 |
9,439 |
6 % |
18,901 |
20,628 |
(8) % |
|||||
Other Established (2) |
18,812 |
25,354 |
(26) % |
39,560 |
51,845 |
(24) % |
|||||
Total Established Products |
$ 55,089 |
$ 60,949 |
(10) % |
$ 110,892 |
$ 124,254 |
(11) % |
|||||
|
$ 218,952 |
$ 228,040 |
(4) % |
$ 423,813 |
$ 434,675 |
(2) % |
|||||
Sterile Injectables: |
|||||||||||
VASOSTRICT® |
$ 35,630 |
$ 197,121 |
(82) % |
$ 191,520 |
$ 421,067 |
(55) % |
|||||
ADRENALIN® |
26,774 |
29,977 |
(11) % |
60,597 |
59,414 |
2 % |
|||||
Other Sterile Injectables (4) |
60,767 |
67,502 |
(10) % |
111,082 |
122,864 |
(10) % |
|||||
Total Sterile Injectables (3) |
$ 123,171 |
$ 294,600 |
(58) % |
$ 363,199 |
$ 603,345 |
(40) % |
|||||
|
$ 203,377 |
$ 167,272 |
22 % |
$ 389,321 |
$ 348,145 |
12 % |
|||||
|
$ 23,614 |
$ 23,918 |
(1) % |
$ 45,040 |
$ 45,584 |
(1) % |
|||||
Total revenues, net |
$ 569,114 |
$ 713,830 |
(20) % |
$ 1,221,373 |
$ 1,431,749 |
(15) % |
__________
(1) |
Products included within Other Specialty include NASCOBAL® Nasal Spray, AVEED® and QWO®. |
(2) |
Products included within Other Established include, but are not limited to, EDEX®. |
(3) |
Individual products presented above represent the top two performing products in each product category for either the three or six months ended |
(4) |
Products included within Other Sterile Injectables include ertapenem for injection, APLISOL® and others. |
(5) |
|
(6) |
|
The following table presents unaudited Condensed Consolidated Statement of Operations data for the three and six months ended
Three Months Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
TOTAL REVENUES, NET |
$ 569,114 |
$ 713,830 |
$ 1,221,373 |
$ 1,431,749 |
|||
COSTS AND EXPENSES: |
|||||||
Cost of revenues |
263,786 |
318,480 |
537,001 |
623,773 |
|||
Selling, general and administrative |
180,830 |
177,619 |
407,991 |
364,793 |
|||
Research and development |
29,788 |
29,669 |
65,918 |
59,408 |
|||
Acquired in-process research and development |
65,000 |
5,000 |
67,900 |
5,000 |
|||
Litigation-related and other contingencies, net |
208 |
35,195 |
25,362 |
35,832 |
|||
Asset impairment charges |
1,781,063 |
4,929 |
1,801,016 |
8,238 |
|||
Acquisition-related and integration items, net |
1,825 |
97 |
448 |
(4,925) |
|||
Interest expense, net |
139,784 |
141,553 |
274,733 |
275,894 |
|||
Loss on extinguishment of debt |
— |
— |
— |
13,753 |
|||
Other (income) expense, net |
(19,438) |
372 |
(18,149) |
1,284 |
|||
(LOSS) INCOME FROM CONTINUING OPERATIONS |
$ (1,873,732) |
$ 916 |
$ (1,940,847) |
$ 48,699 |
|||
INCOME TAX EXPENSE |
7,151 |
11,100 |
5,336 |
11,824 |
|||
(LOSS) INCOME FROM CONTINUING OPERATIONS |
$ (1,880,883) |
$ (10,184) |
$ (1,946,183) |
$ 36,875 |
|||
DISCONTINUED OPERATIONS, NET OF TAX |
(4,544) |
(5,316) |
(11,218) |
(10,851) |
|||
NET (LOSS) INCOME |
$ (1,885,427) |
$ (15,500) |
$ (1,957,401) |
$ 26,024 |
|||
NET (LOSS) INCOME PER SHARE—BASIC: |
|||||||
Continuing operations |
$ (8.00) |
$ (0.04) |
$ (8.30) |
$ 0.16 |
|||
Discontinued operations |
(0.02) |
(0.03) |
(0.05) |
(0.05) |
|||
Basic |
$ (8.02) |
$ (0.07) |
$ (8.35) |
$ 0.11 |
|||
NET (LOSS) INCOME PER SHARE—DILUTED: |
|||||||
Continuing operations |
$ (8.00) |
$ (0.04) |
$ (8.30) |
$ 0.16 |
|||
Discontinued operations |
(0.02) |
(0.03) |
(0.05) |
(0.05) |
|||
Diluted |
$ (8.02) |
$ (0.07) |
$ (8.35) |
$ 0.11 |
|||
WEIGHTED AVERAGE SHARES: |
|||||||
Basic |
235,117 |
233,331 |
234,498 |
231,941 |
|||
Diluted |
235,117 |
233,331 |
234,498 |
237,043 |
The following table presents unaudited Condensed Consolidated Balance Sheet data at
|
|
||
ASSETS |
|||
CURRENT ASSETS: |
|||
Cash and cash equivalents |
$ 1,191,572 |
$ 1,507,196 |
|
Restricted cash and cash equivalents |
113,493 |
124,114 |
|
Accounts receivable |
491,492 |
592,019 |
|
Inventories, net |
287,756 |
283,552 |
|
Assets held for sale |
11,080 |
— |
|
Other current assets |
104,511 |
207,705 |
|
Total current assets |
$ 2,199,904 |
$ 2,714,586 |
|
TOTAL NON-CURRENT ASSETS |
4,162,358 |
6,052,829 |
|
TOTAL ASSETS |
$ 6,362,262 |
$ 8,767,415 |
|
LIABILITIES AND SHAREHOLDERS' DEFICIT |
|||
CURRENT LIABILITIES: |
|||
Accounts payable and accrued expenses, including legal settlement accruals |
$ 1,140,654 |
$ 1,417,892 |
|
Other current liabilities |
41,018 |
212,070 |
|
Total current liabilities |
$ 1,181,672 |
$ 1,629,962 |
|
LONG-TERM DEBT, LESS CURRENT PORTION, NET |
8,039,178 |
8,048,980 |
|
OTHER LIABILITIES |
339,484 |
332,459 |
|
SHAREHOLDERS' DEFICIT |
(3,198,072) |
(1,243,986) |
|
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT |
$ 6,362,262 |
$ 8,767,415 |
The following table presents unaudited Condensed Consolidated Statement of Cash Flow data for the six months ended
Six Months Ended |
|||
2022 |
2021 |
||
OPERATING ACTIVITIES: |
|||
Net (loss) income |
$ (1,957,401) |
$ 26,024 |
|
Adjustments to reconcile Net (loss) income to Net cash provided by operating activities: |
|||
Depreciation and amortization |
206,224 |
237,703 |
|
Asset impairment charges |
1,801,016 |
8,238 |
|
Other, including cash payments to claimants from Qualified Settlement Funds |
18,064 |
126,851 |
|
Net cash provided by operating activities |
$ 67,903 |
$ 398,816 |
|
INVESTING ACTIVITIES: |
|||
Capital expenditures, excluding capitalized interest |
$ (47,559) |
$ (41,345) |
|
Acquisitions, including in-process research and development, net of cash and restricted |
(89,520) |
— |
|
Proceeds from sale of business and other assets, net |
21,133 |
1,343 |
|
Other |
4,200 |
(5,048) |
|
Net cash used in investing activities |
$ (111,746) |
$ (45,050) |
|
FINANCING ACTIVITIES: |
|||
Payments on borrowings, net |
$ (193,312) |
$ (43,166) |
|
Other |
(3,638) |
(22,581) |
|
Net cash used in financing activities |
$ (196,950) |
$ (65,747) |
|
Effect of foreign exchange rate |
(452) |
711 |
|
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH |
$ (241,245) |
$ 288,730 |
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH |
1,631,310 |
1,385,000 |
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH |
$ 1,390,065 |
$ 1,673,730 |
SUPPLEMENTAL FINANCIAL INFORMATION
To supplement the financial measures prepared in accordance with
The tables below provide reconciliations of certain of the Company's 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.
As previously communicated, in response to views expressed by the
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP)
The following table provides a reconciliation of Net (loss) income (GAAP) to Adjusted EBITDA (non-GAAP) for the three and six months ended
Three Months Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Net (loss) income (GAAP) |
$ (1,885,427) |
$ (15,500) |
$ (1,957,401) |
$ 26,024 |
|||
Income tax expense |
7,151 |
11,100 |
5,336 |
11,824 |
|||
Interest expense, net |
139,784 |
141,553 |
274,733 |
275,894 |
|||
Depreciation and amortization (1) |
99,762 |
110,145 |
202,400 |
221,724 |
|||
EBITDA (non-GAAP) |
$ (1,638,730) |
$ 247,298 |
$ (1,474,932) |
$ 535,466 |
|||
Amounts related to continuity and separation benefits, |
37,347 |
15,083 |
94,996 |
38,803 |
|||
Certain litigation-related and other contingencies, net (3) |
208 |
35,195 |
25,362 |
35,832 |
|||
Certain legal costs (4) |
(9,462) |
24,843 |
23,270 |
44,119 |
|||
Asset impairment charges (5) |
1,781,063 |
4,929 |
1,801,016 |
8,238 |
|||
Acquisition-related and integration costs (6) |
— |
(20) |
— |
411 |
|||
Fair value of contingent consideration (7) |
1,825 |
117 |
448 |
(5,336) |
|||
Loss on extinguishment of debt (8) |
— |
— |
— |
13,753 |
|||
Share-based compensation (1) |
2,721 |
4,444 |
7,650 |
14,437 |
|||
Other (income) expense, net (9) |
(19,438) |
372 |
(18,149) |
1,284 |
|||
Other (10) |
128 |
123 |
253 |
4,557 |
|||
Discontinued operations, net of tax (11) |
4,544 |
5,316 |
11,218 |
10,851 |
|||
Adjusted EBITDA (non-GAAP) (14) |
$ 160,206 |
$ 337,700 |
$ 471,132 |
$ 702,415 |
Reconciliation of Adjusted Income from Continuing Operations (non-GAAP)
The following table provides a reconciliation of the Company's (Loss) income from continuing operations (GAAP) to Adjusted income from continuing operations (non-GAAP) for the three and six months ended
Three Months Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
(Loss) income from continuing operations (GAAP) |
$ (1,880,883) |
$ (10,184) |
$ (1,946,183) |
$ 36,875 |
|||
Non-GAAP adjustments: |
|||||||
Amortization of intangible assets (12) |
87,568 |
94,070 |
177,802 |
189,200 |
|||
Amounts related to continuity and separation benefits, |
37,347 |
15,083 |
94,996 |
38,803 |
|||
Certain litigation-related and other contingencies, net |
208 |
35,195 |
25,362 |
35,832 |
|||
Certain legal costs (4) |
(9,462) |
24,843 |
23,270 |
44,119 |
|||
Asset impairment charges (5) |
1,781,063 |
4,929 |
1,801,016 |
8,238 |
|||
Acquisition-related and integration costs (6) |
— |
(20) |
— |
411 |
|||
Fair value of contingent consideration (7) |
1,825 |
117 |
448 |
(5,336) |
|||
Loss on extinguishment of debt (8) |
— |
— |
— |
13,753 |
|||
Other (10) |
(19,170) |
1,480 |
(17,847) |
7,062 |
|||
Tax adjustments (13) |
8,036 |
(18,392) |
3,607 |
(46,919) |
|||
Adjusted income from continuing operations (non-GAAP) |
$ 6,532 |
$ 147,121 |
$ 162,471 |
$ 322,038 |
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
Three Months Ended |
|||||||||||||||||||||||||||||||
Total |
Cost of |
Gross |
Gross |
Total |
Operating |
Operating |
Operating |
Other non- |
(Loss) |
Income tax |
Effective |
(Loss) |
Discontinued |
Net (loss) |
Diluted net |
||||||||||||||||
Reported (GAAP) |
$ 569,114 |
$ 263,786 |
$ 305,328 |
53.6 % |
$ 2,058,714 |
361.7 % |
$ (1,753,386) |
(308.1) % |
$ 120,346 |
$ (1,873,732) |
$ 7,151 |
(0.4) % |
$ (1,880,883) |
$ (4,544) |
$ (1,885,427) |
$ (8.00) |
|||||||||||||||
Items impacting comparability: |
|||||||||||||||||||||||||||||||
Amortization of intangible |
— |
(87,568) |
87,568 |
— |
87,568 |
— |
87,568 |
— |
87,568 |
— |
87,568 |
||||||||||||||||||||
Amounts related to continuity |
— |
(5,107) |
5,107 |
(32,240) |
37,347 |
— |
37,347 |
— |
37,347 |
— |
37,347 |
||||||||||||||||||||
Certain litigation-related and |
— |
— |
— |
(208) |
208 |
— |
208 |
— |
208 |
— |
208 |
||||||||||||||||||||
Certain legal costs (4) |
— |
— |
— |
9,462 |
(9,462) |
— |
(9,462) |
— |
(9,462) |
— |
(9,462) |
||||||||||||||||||||
Asset impairment charges (5) |
— |
— |
— |
(1,781,063) |
1,781,063 |
— |
1,781,063 |
— |
1,781,063 |
— |
1,781,063 |
||||||||||||||||||||
Fair value of contingent |
— |
— |
— |
(1,825) |
1,825 |
— |
1,825 |
— |
1,825 |
— |
1,825 |
||||||||||||||||||||
Other (10) |
— |
(125) |
125 |
— |
125 |
19,295 |
(19,170) |
— |
(19,170) |
— |
(19,170) |
||||||||||||||||||||
Tax adjustments (13) |
— |
— |
— |
— |
— |
— |
— |
(8,036) |
8,036 |
— |
8,036 |
||||||||||||||||||||
Discontinued operations, net |
— |
— |
— |
— |
— |
— |
— |
— |
— |
4,544 |
4,544 |
||||||||||||||||||||
After considering items (non- |
$ 569,114 |
$ 170,986 |
$ 398,128 |
70.0 % |
$ 252,840 |
44.4 % |
$ 145,288 |
25.5 % |
$ 139,641 |
$ 5,647 |
$ (885) |
(15.7) % |
$ 6,532 |
$ — |
$ 6,532 |
$ 0.03 |
Three Months Ended |
|||||||||||||||||||||||||||||||
Total |
Cost of |
Gross |
Gross |
Total |
Operating |
Operating |
Operating |
Other non- |
Income |
Income tax |
Effective |
(Loss) |
Discontinued |
Net (loss) |
Diluted net |
||||||||||||||||
Reported (GAAP) |
$ 713,830 |
$ 318,480 |
$ 395,350 |
55.4 % |
$ 252,509 |
35.4 % |
$ 142,841 |
20.0 % |
$ 141,925 |
$ 916 |
$ 11,100 |
1,211.8 % |
$ (10,184) |
$ (5,316) |
$ (15,500) |
$ (0.04) |
|||||||||||||||
Items impacting comparability: |
|||||||||||||||||||||||||||||||
Amortization of intangible |
— |
(94,070) |
94,070 |
— |
94,070 |
— |
94,070 |
— |
94,070 |
— |
94,070 |
||||||||||||||||||||
Amounts related to continuity |
— |
(4,970) |
4,970 |
(10,113) |
15,083 |
— |
15,083 |
— |
15,083 |
— |
15,083 |
||||||||||||||||||||
Certain litigation-related and |
— |
— |
— |
(35,195) |
35,195 |
— |
35,195 |
— |
35,195 |
— |
35,195 |
||||||||||||||||||||
Certain legal costs (4) |
— |
— |
— |
(24,843) |
24,843 |
— |
24,843 |
— |
24,843 |
— |
24,843 |
||||||||||||||||||||
Asset impairment charges (5) |
— |
— |
— |
(4,929) |
4,929 |
— |
4,929 |
— |
4,929 |
— |
4,929 |
||||||||||||||||||||
Acquisition-related and |
— |
— |
— |
20 |
(20) |
— |
(20) |
— |
(20) |
— |
(20) |
||||||||||||||||||||
Fair value of contingent |
— |
— |
— |
(117) |
117 |
— |
117 |
— |
117 |
— |
117 |
||||||||||||||||||||
Other (10) |
— |
(125) |
125 |
— |
125 |
(1,355) |
1,480 |
— |
1,480 |
— |
1,480 |
||||||||||||||||||||
Tax adjustments (13) |
— |
— |
— |
— |
— |
— |
— |
18,392 |
(18,392) |
— |
(18,392) |
||||||||||||||||||||
Discontinued operations, net |
— |
— |
— |
— |
— |
— |
— |
— |
— |
5,316 |
5,316 |
||||||||||||||||||||
After considering items (non- |
$ 713,830 |
$ 219,315 |
$ 494,515 |
69.3 % |
$ 177,332 |
24.8 % |
$ 317,183 |
44.4 % |
$ 140,570 |
$ 176,613 |
$ 29,492 |
16.7 % |
$ 147,121 |
$ — |
$ 147,121 |
$ 0.62 |
Six Months Ended |
|||||||||||||||||||||||||||||||
Total |
Cost of |
Gross |
Gross |
Total |
Operating |
Operating |
Operating |
Other non- |
(Loss) |
Income tax |
Effective |
(Loss) |
Discontinued |
Net (loss) |
Diluted net |
||||||||||||||||
Reported (GAAP) |
$ 1,221,373 |
$ 537,001 |
$ 684,372 |
56.0 % |
$ 2,368,635 |
193.9 % |
$ (1,684,263) |
(137.9) % |
$ 256,584 |
$ (1,940,847) |
$ 5,336 |
(0.3) % |
$ (1,946,183) |
$ (11,218) |
$ (1,957,401) |
$ (8.30) |
|||||||||||||||
Items impacting comparability: |
|||||||||||||||||||||||||||||||
Amortization of intangible |
— |
(177,802) |
177,802 |
— |
177,802 |
— |
177,802 |
— |
177,802 |
— |
177,802 |
||||||||||||||||||||
Amounts related to continuity |
— |
(20,844) |
20,844 |
(74,152) |
94,996 |
— |
94,996 |
— |
94,996 |
— |
94,996 |
||||||||||||||||||||
Certain litigation-related and |
— |
— |
— |
(25,362) |
25,362 |
— |
25,362 |
— |
25,362 |
— |
25,362 |
||||||||||||||||||||
Certain legal costs (4) |
— |
— |
— |
(23,270) |
23,270 |
— |
23,270 |
— |
23,270 |
— |
23,270 |
||||||||||||||||||||
Asset impairment charges (5) |
— |
— |
— |
(1,801,016) |
1,801,016 |
— |
1,801,016 |
— |
1,801,016 |
— |
1,801,016 |
||||||||||||||||||||
Fair value of contingent |
— |
— |
— |
(448) |
448 |
— |
448 |
— |
448 |
— |
448 |
||||||||||||||||||||
Other (10) |
— |
(250) |
250 |
— |
250 |
18,097 |
(17,847) |
— |
(17,847) |
— |
(17,847) |
||||||||||||||||||||
Tax adjustments (13) |
— |
— |
— |
— |
— |
— |
— |
(3,607) |
3,607 |
— |
3,607 |
||||||||||||||||||||
Discontinued operations, net |
— |
— |
— |
— |
— |
— |
— |
— |
— |
11,218 |
11,218 |
||||||||||||||||||||
After considering items (non- |
$ 1,221,373 |
$ 338,105 |
$ 883,268 |
72.3 % |
$ 444,387 |
36.4 % |
$ 438,881 |
35.9 % |
$ 274,681 |
$ 164,200 |
$ 1,729 |
1.1 % |
$ 162,471 |
$ — |
$ 162,471 |
$ 0.69 |
Six Months Ended |
|||||||||||||||||||||||||||||||
Total |
Cost of |
Gross |
Gross |
Total |
Operating |
Operating |
Operating |
Other non- |
Income |
Income tax |
Effective |
Income |
Discontinued |
Net income |
Diluted net |
||||||||||||||||
Reported (GAAP) |
$ 1,431,749 |
$ 623,773 |
$ 807,976 |
56.4 % |
$ 468,346 |
32.7 % |
$ 339,630 |
23.7 % |
$ 290,931 |
$ 48,699 |
$ 11,824 |
24.3 % |
$ 36,875 |
$ (10,851) |
$ 26,024 |
$ 0.16 |
|||||||||||||||
Items impacting comparability: |
|||||||||||||||||||||||||||||||
Amortization of intangible |
— |
(189,200) |
189,200 |
— |
189,200 |
— |
189,200 |
— |
189,200 |
— |
189,200 |
||||||||||||||||||||
Amounts related to continuity |
— |
(20,266) |
20,266 |
(18,537) |
38,803 |
— |
38,803 |
— |
38,803 |
— |
38,803 |
||||||||||||||||||||
Certain litigation-related and |
— |
— |
— |
(35,832) |
35,832 |
— |
35,832 |
— |
35,832 |
— |
35,832 |
||||||||||||||||||||
Certain legal costs (4) |
— |
— |
— |
(44,119) |
44,119 |
— |
44,119 |
— |
44,119 |
— |
44,119 |
||||||||||||||||||||
Asset impairment charges (5) |
— |
— |
— |
(8,238) |
8,238 |
— |
8,238 |
— |
8,238 |
— |
8,238 |
||||||||||||||||||||
Acquisition-related and |
— |
— |
— |
(411) |
411 |
— |
411 |
— |
411 |
— |
411 |
||||||||||||||||||||
Fair value of contingent |
— |
— |
— |
5,336 |
(5,336) |
— |
(5,336) |
— |
(5,336) |
— |
(5,336) |
||||||||||||||||||||
Loss on extinguishment of |
— |
— |
— |
— |
— |
(13,753) |
13,753 |
— |
13,753 |
— |
13,753 |
||||||||||||||||||||
Other (10) |
— |
(651) |
651 |
(3,909) |
4,560 |
(2,502) |
7,062 |
— |
7,062 |
— |
7,062 |
||||||||||||||||||||
Tax adjustments (13) |
— |
— |
— |
— |
— |
— |
— |
46,919 |
(46,919) |
— |
(46,919) |
||||||||||||||||||||
Discontinued operations, net |
— |
— |
— |
— |
— |
— |
— |
— |
— |
10,851 |
10,851 |
||||||||||||||||||||
After considering items (non- |
$ 1,431,749 |
$ 413,656 |
$ 1,018,093 |
71.1 % |
$ 362,636 |
25.3 % |
$ 655,457 |
45.8 % |
$ 274,676 |
$ 380,781 |
$ 58,743 |
15.4 % |
$ 322,038 |
$ — |
$ 322,038 |
$ 1.36 |
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
(1) |
Depreciation and amortization and Share-based compensation amounts per the Adjusted EBITDA reconciliations do not include |
(2) |
Adjustments for amounts related to continuity and separation benefits, cost reductions and strategic review initiatives included the |
Three Months Ended |
|||||||
2022 |
2021 |
||||||
Cost of revenues |
Operating expenses |
Cost of revenues |
Operating expenses |
||||
Continuity and separation benefits |
$ 4,846 |
$ 6,898 |
$ (2,913) |
$ 4,485 |
|||
Accelerated depreciation |
— |
147 |
7,140 |
1,932 |
|||
Other, including strategic review initiatives |
261 |
25,195 |
743 |
3,696 |
|||
Total |
$ 5,107 |
$ 32,240 |
$ 4,970 |
$ 10,113 |
Six Months Ended |
|||||||
2022 |
2021 |
||||||
Cost of revenues |
Operating expenses |
Cost of revenues |
Operating expenses |
||||
Continuity and separation benefits |
$ 10,098 |
$ 33,973 |
$ 2,279 |
$ 7,837 |
|||
Accelerated depreciation |
2,164 |
1,660 |
12,194 |
3,785 |
|||
Other, including strategic review initiatives |
8,582 |
38,519 |
5,793 |
6,915 |
|||
Total |
$ 20,844 |
$ 74,152 |
$ 20,266 |
$ 18,537 |
The amounts in the tables above include adjustments related to previously announced restructuring activities, certain continuity and |
|
(3) |
To exclude adjustments to accruals for litigation-related settlement charges. |
(4) |
To exclude amounts related to opioid-related legal expenses. The amount during the second quarter of 2022 reflects the recovery of |
(5) |
Adjustments for asset impairment charges included the following (in thousands): |
Three Months Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
|
$ 1,748,000 |
$ — |
$ 1,748,000 |
$ — |
|||
Other intangible asset impairment charges |
30,000 |
4,929 |
49,953 |
7,811 |
|||
Property, plant and equipment impairment charges |
3,063 |
— |
3,063 |
427 |
|||
Total |
$ 1,781,063 |
$ 4,929 |
$ 1,801,016 |
$ 8,238 |
(6) |
To exclude integration costs. |
(7) |
To exclude the impact of changes in the fair value of contingent consideration liabilities resulting from changes to estimates regarding |
(8) |
To exclude the loss on the extinguishment of debt associated with the Company's |
(9) |
To exclude Other (income) expense, net per the Condensed Consolidated Statements of Operations. |
(10) |
The "Other" rows included in each of the above reconciliations of GAAP financial measures to non-GAAP financial measures (except |
Three Months Ended |
|||||||||||
2022 |
2021 |
||||||||||
Cost of revenues |
Operating |
Other non- |
Cost of revenues |
Operating |
Other non- |
||||||
Foreign currency impact |
$ — |
$ — |
$ (2,092) |
$ — |
$ — |
$ 1,355 |
|||||
Other miscellaneous |
125 |
— |
(17,203) |
125 |
— |
— |
|||||
Total |
$ 125 |
$ — |
$ (19,295) |
$ 125 |
$ — |
$ 1,355 |
Six Months Ended |
|||||||||||
2022 |
2021 |
||||||||||
Cost of revenues |
Operating |
Other non- |
Cost of revenues |
Operating |
Other non- |
||||||
Foreign currency impact |
$ — |
$ — |
$ (894) |
$ — |
$ — |
$ 2,502 |
|||||
Debt modification costs |
— |
— |
— |
— |
3,879 |
— |
|||||
Other miscellaneous |
250 |
— |
(17,203) |
651 |
30 |
— |
|||||
Total |
$ 250 |
$ — |
$ (18,097) |
$ 651 |
$ 3,909 |
$ 2,502 |
The "Other" row included in the reconciliations of Net (loss) income (GAAP) to Adjusted EBITDA (non-GAAP) primarily relates to |
|
(11) |
To exclude the results of the businesses reported as discontinued operations, net of tax. |
(12) |
To exclude amortization expense related to intangible assets. |
(13) |
Adjusted income taxes are calculated by tax effecting adjusted pre-tax income and permanent book-tax differences at the applicable |
(14) |
Effective |
Three Months Ended |
Six Months Ended |
Twelve Months |
|||||||
2022 |
2021 |
2022 |
2021 |
2022 |
|||||
Acquired in-process research and |
$ 65,000 |
$ 5,000 |
$ 67,900 |
$ 5,000 |
$ 88,020 |
(15) |
Calculated as income or loss from continuing operations divided by the applicable weighted average share number. The applicable |
Three Months Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
GAAP |
235,117 |
233,331 |
234,498 |
237,043 |
|||
Non-GAAP Adjusted |
236,217 |
235,416 |
236,466 |
237,043 |
Reconciliation of Net Debt Leverage Ratio (non-GAAP)
The following table provides a reconciliation of Net loss (GAAP) to Adjusted EBITDA (non-GAAP) for the twelve months ended
Twelve Months |
|
Net loss (GAAP) |
$ (2,596,670) |
Income tax expense |
15,990 |
Interest expense, net |
561,192 |
Depreciation and amortization (1) |
413,056 |
EBITDA (non-GAAP) |
$ (1,606,432) |
Amounts related to continuity and separation benefits, cost reductions and strategic review initiatives |
147,105 |
Certain litigation-related and other contingencies, net |
335,025 |
Certain legal costs |
115,299 |
Asset impairment charges |
2,207,755 |
Acquisition-related and integration costs |
3 |
Fair value of contingent consideration |
(3,009) |
Share-based compensation (1) |
22,440 |
Other income, net |
(39,207) |
Other |
909 |
Discontinued operations, net of tax |
44,531 |
Adjusted EBITDA (non-GAAP) (14) |
$ 1,224,419 |
Calculation of Net Debt: |
|
Debt |
$ 8,065,297 |
Cash (excluding Restricted Cash) |
1,191,572 |
Net Debt (non-GAAP) |
$ 6,873,725 |
Calculation of Net Debt Leverage: |
|
Net Debt Leverage Ratio (non-GAAP) (a) |
5.6 |
__________
(a) |
As further discussed in footnote (14) in the "Notes to the Reconciliations of GAAP and Non-GAAP Financial Measures" section, effective |
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
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, gain / loss on extinguishment of debt, adjustments to inventory and other charges reflected in the reconciliation of historic numbers, the amounts of which could be significant.
See Endo's Current Report on Form 8-K furnished today to the
About
Endo (NASDAQ: ENDP) is a specialty pharmaceutical company committed to helping everyone we serve live their best life through the delivery of quality, life-enhancing therapies. Our decades of proven success come from passionate team members around the globe collaborating to bring the best treatments forward. Together, we boldly transform insights into treatments benefiting those who need them, when they need them. Learn more at www.endo.com or connect with us on LinkedIn.
Cautionary Note Regarding Forward-Looking Statements
Certain information in this press release may be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation, including, but not limited to, statements regarding Endo's discussions with creditors, its evaluation of strategic alternatives, potential Chapter 11 filing and any other statements that refer to our expected, estimated or anticipated future results or that do not relate solely to historical facts. Statements including words or phrases such as "believe," "expect," "anticipate," "intend," "estimate," "plan," "will," "may," "look forward," "intend," "guidance," "future," "potential" or similar expressions are forward-looking statements. 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 and adversely from current expectations based on a number of factors affecting Endo's businesses, including, among other things, the following: the outcome of our strategic review, contingency planning and any potential restructuring or bankruptcy filing; the timing, impact or results of any pending or future litigation, investigations, proceedings or claims, including opioid, tax and antitrust related matters; actual or contingent liabilities; settlement discussions or negotiations; the impact of competition, including the loss of exclusivity and generic competition for VASOSTRICT®; our ability to satisfy judgments or settlements or pursue appeals including bonding requirements; our ability to adjust to changing market conditions; our ability to attract and retain key personnel; our inability to maintain compliance with financial covenants and operating obligations which would expose us to potential events of default under our outstanding indebtedness; our ability to incur additional debt or equity financing for working capital, capital expenditures, business development, debt service requirements, acquisitions or general corporate or other purposes; our ability to refinance our indebtedness; a significant reduction in our short-term or long-term revenues which could cause us to be unable to fund our operations and liquidity needs or repay indebtedness; supply chain interruptions or difficulties; changes in competitive or market conditions; changes in legislation or regulatory developments; our ability to obtain and maintain adequate protection for our 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; our ability to integrate any newly acquired products into our portfolio and achieve any financial or commercial expectations; the impact that known and unknown side effects may have on market perception and consumer preference for our products; the effectiveness of advertising and other promotional campaigns; the timely and successful implementation of any strategic initiatives; unfavorable publicity regarding the misuse of opioids; the uncertainty associated with the identification of and successful consummation and execution of external corporate development initiatives and strategic partnering transactions; our ability to advance our strategic priorities, develop our product pipeline and continue to develop the market for QWO® and other products; and our ability to obtain and successfully manufacture, maintain and distribute a sufficient supply of products to meet market demand in a timely manner. In addition,
Additional information concerning risk factors, including those referenced above, 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, media.relations@endo.com; Investors: Laure Park, (845) 364-4862, relations.investor@endo.com