Endo Reports Second Quarter Financial Results
- Total quarterly revenues of
$767 million , decreased by 2 percent versus prior year. - Second quarter reported diluted (GAAP) EPS of
$0.30 ; Second quarter adjusted diluted EPS of$1.42 increased by 12 percent versus prior year. - Company now expects 2013 revenues in the range of
$2.70 billion to $2.80 billion . - Company now expects reported diluted (GAAP) EPS in the range of
$1.47 to $1.77 ; Company now expects 2013 adjusted diluted EPS in the range of$4.25 to $4.55 . - Company on-track to meet expense reductions as announced on
June 5, 2013 .
As detailed in the supplemental financial information below, adjusted net income for the three months ended June 30, 2013 was
On
The company has made progress in implementing the actions announced on June 5. In particular, cost reduction efforts to reduce operating expenses by
"I'm pleased with the progress that the company has made in implementing our new strategic vision," said
FINANCIAL PERFORMANCE AT A GLANCE
($ in thousands, except per share amounts) |
|||||||||||||||||||||||||||||||||||||||
2nd Quarter |
Six Months Ended June 30, |
||||||||||||||||||||||||||||||||||||||
2013 |
2012 |
Change |
2013 |
2012 |
Change |
||||||||||||||||||||||||||||||||||
Total Revenues |
$ |
766,509 |
$ |
785,188 |
(2) |
% |
$ |
1,475,028 |
$ |
1,475,821 |
— |
% |
|||||||||||||||||||||||||||
Reported Net Income |
$ |
34,999 |
$ |
9,465 |
270 |
% |
$ |
50,348 |
$ |
(77,880) |
NM |
||||||||||||||||||||||||||||
Reported Diluted EPS |
$ |
0.30 |
$ |
0.08 |
275 |
% |
$ |
0.44 |
$ |
(0.67) |
NM |
||||||||||||||||||||||||||||
Adjusted Net Income |
$ |
166,348 |
$ |
154,153 |
8 |
% |
$ |
289,586 |
$ |
260,453 |
11 |
% |
|||||||||||||||||||||||||||
Adjusted Diluted EPS |
$ |
1.42 |
$ |
1.27 |
12 |
% |
$ |
2.51 |
$ |
2.14 |
17 |
% |
|||||||||||||||||||||||||||
ENDO PHARMACEUTICALS
Second quarter 2013 branded pharmaceutical revenues were
Second quarter 2013 net sales of LIDODERM® increased 1 percent compared to second quarter 2012. This increase is attributable to the combination of increased price and prescription volume growth. The effect of those growth factors were largely offset by the company's previously announced Supply Agreement with
Second quarter 2013 net sales of Voltaren® Gel decreased 2 percent compared to second quarter 2012. This decrease is attributable to higher shipments during second quarter of 2012 to rebuild wholesale inventories that were largely depleted as a result of a first quarter 2012 supply disruption. According to
Second quarter 2013 net sales of FORTESTA® Gel increased 154 percent compared to second quarter 2012. This increase was primarily attributable to improved formulary access that facilitated a significant year-over-year increase in total prescription volumes for the product.
QUALITEST
Second quarter 2013 generic product net sales of
In
AMS
Second quarter 2013 sales were
The decrease in U.S.-based sales is primarily attributable to a continued decrease in
Second quarter 2013 sales of AMS's benign prostatic hyperplasia (BPH) business increased 5 percent compared to second quarter 2012. This increase is primarily attributable to higher sales of GreenLight™ consoles and fiber sales. Second quarter 2013 Men's Health sales increased slightly compared to second quarter 2012.
2013 Financial Guidance
Endo's estimates are based on estimated results for the twelve months ended
- Total revenue to be between
$2.70 billion and $2.80 billion - Reported (GAAP) diluted earnings per share to be between
$1.47 and $1.77 - Adjusted diluted earnings per share to be between
$4.25 and $4.55
The company's 2013 guidance is based on certain assumptions including:
- Adjusted gross margin of between 64 percent and 66 percent
- Adjusted effective tax rate of between 28.5 percent and 29.5 percent
- The company continues to expect a single generic competitor for LIDODERM in
September 2013 as a result of a previously announced settlement agreement withActavis (formerlyWatson Pharmaceuticals ).
Balance Sheet Update
During the second quarter of 2013, Endo made payments of approximately
Conference Call Information
Endo will conduct a conference call with financial analysts to discuss this news release today at
A replay of the call will be available from
A simultaneous webcast of the call can be accessed by visiting www.endo.com. In addition, a replay of the webcast will be available until
Supplemental Financial Information
The following tables provide a reconciliation of our reported (GAAP) statements of operations to our adjusted statements of operations (Non-GAAP) for each of the three months ended June 30, 2013 and 2012 (in thousands, except per share data):
Three Months Ended June 30, 2013 (unaudited) |
Actual Reported |
Adjustments |
Non-GAAP Adjusted |
|||||||||||||||
REVENUES |
$ |
766,509 |
$ |
— |
$ |
766,509 |
||||||||||||
COSTS AND EXPENSES: |
||||||||||||||||||
Cost of revenues |
309,167 |
(56,414) |
(1) |
252,753 |
||||||||||||||
Selling, general and administrative |
253,335 |
(65,533) |
(2) |
187,802 |
||||||||||||||
Research and development |
34,091 |
(3,367) |
(3) |
30,724 |
||||||||||||||
Litigation-related and other contingencies |
59,971 |
(59,971) |
(4) |
— |
||||||||||||||
Asset impairment charges |
7,087 |
(7,087) |
(5) |
— |
||||||||||||||
Acquisition-related and integration items, net |
2,640 |
(2,640) |
(6) |
— |
||||||||||||||
OPERATING INCOME |
$ |
100,218 |
$ |
195,012 |
$ |
295,230 |
||||||||||||
INTEREST EXPENSE, NET |
42,486 |
(5,662) |
(7) |
36,824 |
||||||||||||||
OTHER (INCOME) EXPENSE, NET |
(16,413) |
17,593 |
(8) |
1,180 |
||||||||||||||
INCOME BEFORE INCOME TAX |
$ |
74,145 |
$ |
183,081 |
$ |
257,226 |
||||||||||||
INCOME TAX |
26,034 |
51,732 |
(9) |
77,766 |
||||||||||||||
CONSOLIDATED NET INCOME |
$ |
48,111 |
$ |
131,349 |
$ |
179,460 |
||||||||||||
Less: Net income attributable to noncontrolling interests |
13,112 |
— |
13,112 |
|||||||||||||||
NET INCOME ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC. |
$ |
34,999 |
$ |
131,349 |
$ |
166,348 |
||||||||||||
DILUTED EARNINGS PER SHARE |
$ |
0.30 |
$ |
1.42 |
||||||||||||||
DILUTED WEIGHTED AVERAGE SHARES |
117,221 |
117,221 |
||||||||||||||||
Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations: |
|
(1) |
To exclude amortization of commercial intangible assets related to marketed products of $50,061, certain separation benefits and other costs incurred in connection with continued efforts to enhance the company's operations of $2,353 and accruals for milestone payments to partners of $4,000. |
(2) |
To exclude certain separation benefits and other costs incurred in connection with continued efforts to enhance the company's operations of $49,921, amortization of customer relationships of $2,746 and mesh litigation-related defense costs of $12,866. |
(3) |
To exclude milestone payments to partners of $1,398 and certain separation benefits and other costs incurred in connection with continued efforts to enhance the company's operations of $1,969. |
(4) |
To exclude the net impact of accruals primarily for mesh-related product liability. |
(5) |
To exclude asset impairment charges. |
(6) |
To exclude integration costs of $2,580 and a loss of $60 recorded to reflect the change in fair value of the contingent consideration associated with the Qualitest acquisition. |
(7) |
To exclude additional interest expense as a result of the prior adoption of ASC 470-20. |
(8) |
To exclude $(16,545) related to patent litigation settlement income and other income of $(1,048). |
(9) |
To reflect the cash tax savings results from our recent acquisitions and the tax effect of the pre-tax adjustments above at applicable tax rates. |
Three Months Ended June 30, 2012 (unaudited) |
Actual Reported |
Adjustments |
Non-GAAP Adjusted |
|||||||||||||||
REVENUES |
$ |
785,188 |
$ |
— |
$ |
785,188 |
||||||||||||
COSTS AND EXPENSES: |
||||||||||||||||||
Cost of revenues |
294,570 |
(58,857) |
(1) |
235,713 |
||||||||||||||
Selling, general and administrative |
233,622 |
(5,697) |
(2) |
227,925 |
||||||||||||||
Research and development |
45,427 |
(2,808) |
(3) |
42,619 |
||||||||||||||
Patent litigation settlement, net |
131,361 |
(131,361) |
(4) |
— |
||||||||||||||
Asset impairment charges |
3,000 |
(3,000) |
(5) |
— |
||||||||||||||
Acquisition-related and integration items, net |
7,055 |
(7,055) |
(6) |
— |
||||||||||||||
OPERATING INCOME |
$ |
70,153 |
$ |
208,778 |
$ |
278,931 |
||||||||||||
INTEREST EXPENSE, NET |
45,985 |
(5,169) |
(7) |
40,816 |
||||||||||||||
OTHER EXPENSE (INCOME), NET |
297 |
(300) |
(8) |
(3) |
||||||||||||||
INCOME BEFORE INCOME TAX |
$ |
23,871 |
$ |
214,247 |
$ |
238,118 |
||||||||||||
INCOME TAX |
1,776 |
69,559 |
(9) |
71,335 |
||||||||||||||
CONSOLIDATED NET INCOME |
$ |
22,095 |
$ |
144,688 |
$ |
166,783 |
||||||||||||
Less: Net income attributable to noncontrolling interests |
12,630 |
— |
12,630 |
|||||||||||||||
NET INCOME ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC. |
$ |
9,465 |
$ |
144,688 |
$ |
154,153 |
||||||||||||
DILUTED EARNINGS PER SHARE |
$ |
0.08 |
$ |
1.27 |
||||||||||||||
DILUTED WEIGHTED AVERAGE SHARES |
121,080 |
121,080 |
||||||||||||||||
Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations: |
|
(1) |
To exclude amortization of commercial intangible assets related to marketed products of $55,812, the impact of inventory step-up recorded as part of acquisition accounting and net milestone payments and receipts of $2,236 and certain separation benefits and other costs incurred in connection with continued efforts to enhance the company's operations of $809. |
(2) |
To exclude certain separation benefits and other costs incurred in connection with continued efforts to enhance the company's operations of $2,945 and amortization of customer relationships of $2,752. |
(3) |
To exclude milestone and upfront payments to partners. |
(4) |
To exclude the net impact of the Actavis (Watson) litigation settlement. |
(5) |
To exclude asset impairment charges. |
(6) |
To exclude acquisition-related and integration costs of $6,996 and a loss of $59 recorded to reflect the change in fair value of the contingent consideration associated with the Qualitest Pharmaceuticals acquisition. |
(7) |
To exclude additional interest expense as a result of the prior adoption of ASC 470-20. |
(8) |
To exclude milestone and upfront payments to partners. |
(9) |
To reflect the cash tax savings results from our recent acquisitions and the tax effect of the pre-tax adjustments above at applicable tax rates. |
The following tables provide a reconciliation of our reported (GAAP) statements of operations to our adjusted statements of operations (Non-GAAP) for each of the six months ended June 30, 2013 and 2012 (in thousands, except per share data):
Six Months Ended June 30, 2013 (unaudited) |
Actual Reported |
Adjustments |
Non-GAAP Adjusted |
|||||||||||||||
REVENUES |
$ |
1,475,028 |
$ |
— |
$ |
1,475,028 |
||||||||||||
COSTS AND EXPENSES: |
||||||||||||||||||
Cost of revenues |
595,093 |
(102,940) |
(1) |
492,153 |
||||||||||||||
Selling, general and administrative |
489,717 |
(87,416) |
(2) |
402,301 |
||||||||||||||
Research and development |
75,660 |
(9,182) |
(3) |
66,478 |
||||||||||||||
Litigation-related and other contingencies |
128,203 |
(128,203) |
(4) |
— |
||||||||||||||
Asset impairment charges |
8,187 |
(8,187) |
(5) |
— |
||||||||||||||
Acquisition-related and integration items, net |
3,958 |
(3,958) |
(6) |
— |
||||||||||||||
OPERATING INCOME |
$ |
174,210 |
$ |
339,886 |
$ |
514,096 |
||||||||||||
INTEREST EXPENSE, NET |
86,789 |
(11,112) |
(7) |
75,677 |
||||||||||||||
LOSS ON EXTINGUISHMENT OF DEBT |
11,312 |
(11,312) |
(8) |
— |
||||||||||||||
OTHER (INCOME) EXPENSE, NET |
(34,581) |
36,820 |
(9) |
2,239 |
||||||||||||||
INCOME BEFORE INCOME TAX |
$ |
110,690 |
$ |
325,490 |
$ |
436,180 |
||||||||||||
INCOME TAX |
35,976 |
86,252 |
(10) |
122,228 |
||||||||||||||
CONSOLIDATED NET INCOME |
$ |
74,714 |
$ |
239,238 |
$ |
313,952 |
||||||||||||
Less: Net income attributable to noncontrolling interests |
24,366 |
— |
24,366 |
|||||||||||||||
NET INCOME ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC. |
$ |
50,348 |
$ |
239,238 |
$ |
289,586 |
||||||||||||
DILUTED EARNINGS PER SHARE |
$ |
0.44 |
$ |
2.51 |
||||||||||||||
DILUTED WEIGHTED AVERAGE SHARES |
115,205 |
115,205 |
||||||||||||||||
Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations: |
|
(1) |
To exclude amortization of commercial intangible assets related to marketed products of $96,250, certain separation benefits and other costs incurred in connection with continued efforts to enhance the company's operations of $2,690 and accruals for milestone payments to partners of $4,000. |
(2) |
To exclude certain separation benefits and other costs incurred in connection with continued efforts to enhance the company's operations of $60,747, amortization of customer relationships of $5,503 and mesh litigation-related defense costs of $21,166. |
(3) |
To exclude milestone payments to partners of $3,972 and certain separation benefits and other costs incurred in connection with continued efforts to enhance the company's operations of $5,210. |
(4) |
To exclude the net impact of accruals primarily for mesh-related product liability. |
(5) |
To exclude asset impairment charges. |
(6) |
To exclude integration costs of $3,858 and a loss of $100 recorded to reflect the change in fair value of the contingent consideration associated with the Qualitest acquisition. |
(7) |
To exclude additional interest expense as a result of the prior adoption of ASC 470-20. |
(8) |
To exclude the unamortized debt issuance costs written off and recorded as a loss on extinguishment of debt upon our March 2013 prepayment on our Term Loan indebtedness as well as upon the amendment and restatement of our existing credit facility. |
(9) |
To exclude $(35,772) related to patent litigation settlement income and other income of $(1,048). |
(10) |
To reflect the cash tax savings results from our recent acquisitions and the tax effect of the pre-tax adjustments above at applicable tax rates. |
Six Months Ended June 30, 2012 (unaudited) |
Actual Reported |
Adjustments |
Non-GAAP Adjusted |
|||||||||||||||
REVENUES |
$ |
1,475,821 |
$ |
— |
$ |
1,475,821 |
||||||||||||
COSTS AND EXPENSES: |
||||||||||||||||||
Cost of revenues |
659,390 |
(220,095) |
(1) |
439,295 |
||||||||||||||
Selling, general and administrative |
488,076 |
(19,564) |
(2) |
468,512 |
||||||||||||||
Research and development |
134,115 |
(49,780) |
(3) |
84,335 |
||||||||||||||
Patent litigation settlement, net |
131,361 |
(131,361) |
(4) |
— |
||||||||||||||
Asset impairment charges |
43,000 |
(43,000) |
(5) |
— |
||||||||||||||
Acquisition-related and integration items, net |
10,804 |
(10,804) |
(6) |
— |
||||||||||||||
OPERATING INCOME |
$ |
9,075 |
$ |
474,604 |
$ |
483,679 |
||||||||||||
INTEREST EXPENSE, NET |
92,881 |
(10,145) |
(7) |
82,736 |
||||||||||||||
LOSS ON EXTINGUISHMENT OF DEBT |
5,426 |
(5,426) |
(8) |
— |
||||||||||||||
OTHER EXPENSE, NET |
748 |
(300) |
(9) |
448 |
||||||||||||||
(LOSS) INCOME BEFORE INCOME TAX |
$ |
(89,980) |
$ |
490,475 |
$ |
400,495 |
||||||||||||
INCOME TAX |
(37,550) |
152,142 |
(10) |
114,592 |
||||||||||||||
CONSOLIDATED NET (LOSS) INCOME |
$ |
(52,430) |
$ |
338,333 |
$ |
285,903 |
||||||||||||
Less: Net income attributable to noncontrolling interests |
25,450 |
— |
25,450 |
|||||||||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC. |
$ |
(77,880) |
$ |
338,333 |
$ |
260,453 |
||||||||||||
DILUTED (LOSS) EARNINGS PER SHARE |
$ |
(0.67) |
$ |
2.14 |
||||||||||||||
DILUTED WEIGHTED AVERAGE SHARES |
117,022 |
121,836 |
||||||||||||||||
Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations: |
|
(1) |
To exclude amortization of commercial intangible assets related to marketed products of $106,415, the impact of inventory step-up recorded as part of acquisition accounting of $880, the accrual for the payment to Impax related to sales of OPANA ER of $110,000, net milestone payments to partners of $1,487 and certain separation benefits and other costs incurred in connection with continued efforts to enhance the company's operations of $1,313. |
(2) |
To exclude certain separation benefits and other costs incurred in connection with continued efforts to enhance the company's operations of $14,055 and amortization of customer relationships of $5,509. |
(3) |
To exclude milestone and upfront payments to partners. |
(4) |
To exclude the net impact of the Actavis (Watson) litigation settlement. |
(5) |
To exclude asset impairment charges. |
(6) |
To exclude acquisition-related and integration costs of $10,872 and a gain of $(68) recorded to reflect the change in fair value of the contingent consideration associated with the Qualitest Pharmaceuticals acquisition. |
(7) |
To exclude additional interest expense as a result of the prior adoption of ASC 470-20. |
(8) |
To exclude the unamortized debt issuance costs written off and recorded as a loss on extinguishment of debt upon our 2012 prepayments on our Term Loan indebtedness. |
(9) |
To exclude milestone and upfront payments to partners. |
(10) |
To reflect the cash tax savings results from our recent acquisitions and the tax effect of the pre-tax adjustments above at applicable tax rates. |
Non-GAAP Adjusted net income and its components and Non-GAAP Adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. 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 U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, Non-GAAP Adjusted net income and its components (unlike U.S. GAAP net income 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.
Reconciliation of Projected GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share Guidance for 2013 |
||||||||||||||
Year Ending |
||||||||||||||
December 31, 2013 |
||||||||||||||
Projected GAAP diluted income per common share |
$ 1.47 |
To |
$ 1.77 |
|||||||||||
Upfront and milestone-related payments to partners |
0.22 |
0.22 |
||||||||||||
Amortization of commercial intangible assets and inventory step-up |
1.65 |
1.65 |
||||||||||||
Integration and restructuring charges |
0.95 |
0.95 |
||||||||||||
Charges for litigation and other legal matters |
1.38 |
1.38 |
||||||||||||
Actavis (Watson) litigation settlement |
(0.41) |
(0.41) |
||||||||||||
Interest expense adjustment for ASC 470-20 and other treasury related items |
0.29 |
0.29 |
||||||||||||
Tax effect of pre-tax adjustments at the applicable tax rates and certain other expected cash tax savings as a result of recent acquisitions |
(1.30) |
(1.30) |
||||||||||||
Diluted adjusted income per common share guidance |
$ 4.25 |
To |
$ 4.55 |
|||||||||||
The company's guidance is being issued based on certain assumptions including:
- Certain of the above amounts are based on estimates and there can be no assurance that Endo will achieve these results.
- Includes all completed business development transactions as of Aug 6, 2013.
About Endo
(Tables Attached)
The following tables present Endo's unaudited Net Revenues for the three and six months ended June 30, 2013 and 2012: |
|||||||||||||||||||||||||||||||||||||||
Endo Health Solutions Inc. |
|||||||||||||||||||||||||||||||||||||||
Net Revenues (unaudited) |
|||||||||||||||||||||||||||||||||||||||
(in thousands) |
|||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||||||||||||||||||||||||
2013 |
2012 |
Percent Growth |
2013 |
2012 |
Percent Growth |
||||||||||||||||||||||||||||||||||
Endo Pharmaceuticals: |
|||||||||||||||||||||||||||||||||||||||
LIDODERM® |
$ |
229,656 |
$ |
228,006 |
1 |
% |
$ |
416,680 |
$ |
438,020 |
(5) |
% |
|||||||||||||||||||||||||||
OPANA® ER |
57,951 |
93,413 |
(38) |
% |
114,278 |
174,499 |
(35) |
% |
|||||||||||||||||||||||||||||||
Voltaren® Gel |
42,783 |
43,690 |
(2) |
% |
78,893 |
43,690 |
81 |
% |
|||||||||||||||||||||||||||||||
PERCOCET® |
25,950 |
25,824 |
— |
% |
52,568 |
49,204 |
7 |
% |
|||||||||||||||||||||||||||||||
FROVA® |
14,312 |
14,002 |
2 |
% |
28,089 |
29,646 |
(5) |
% |
|||||||||||||||||||||||||||||||
FORTESTA® Gel |
17,477 |
6,881 |
154 |
% |
32,131 |
12,703 |
153 |
% |
|||||||||||||||||||||||||||||||
SUPPRELIN® LA |
16,597 |
14,797 |
12 |
% |
30,023 |
28,243 |
6 |
% |
|||||||||||||||||||||||||||||||
VANTAS® |
3,107 |
4,346 |
(29) |
% |
6,974 |
8,238 |
(15) |
% |
|||||||||||||||||||||||||||||||
VALSTAR® |
4,888 |
6,087 |
(20) |
% |
10,303 |
12,323 |
(16) |
% |
|||||||||||||||||||||||||||||||
Other Branded Products |
1,052 |
1,120 |
(6) |
% |
1,325 |
855 |
55 |
% |
|||||||||||||||||||||||||||||||
Royalty and Other Revenue |
1,874 |
4,620 |
(59) |
% |
1,972 |
8,939 |
(78) |
% |
|||||||||||||||||||||||||||||||
Total Endo Pharmaceuticals |
$ |
415,647 |
$ |
442,786 |
(6) |
% |
$ |
773,236 |
$ |
806,360 |
(4) |
% |
|||||||||||||||||||||||||||
Total Qualitest |
$ |
170,530 |
$ |
159,895 |
7 |
% |
$ |
348,783 |
$ |
305,240 |
14 |
% |
|||||||||||||||||||||||||||
American Medical Systems: |
|||||||||||||||||||||||||||||||||||||||
Men's Health |
68,081 |
66,972 |
2 |
% |
135,649 |
134,412 |
1 |
% |
|||||||||||||||||||||||||||||||
Women's Health |
27,666 |
32,466 |
(15) |
% |
56,270 |
66,364 |
(15) |
% |
|||||||||||||||||||||||||||||||
BPH Therapy |
30,224 |
28,693 |
5 |
% |
56,704 |
57,521 |
(1) |
% |
|||||||||||||||||||||||||||||||
Total AMS |
125,971 |
128,131 |
(2) |
% |
248,623 |
258,297 |
(4) |
% |
|||||||||||||||||||||||||||||||
HealthTronics |
54,361 |
54,376 |
— |
% |
104,386 |
105,924 |
(1) |
% |
|||||||||||||||||||||||||||||||
Total Revenue |
766,509 |
785,188 |
(2) |
% |
1,475,028 |
1,475,821 |
— |
% |
|||||||||||||||||||||||||||||||
The following table presents unaudited condensed consolidated Balance Sheet data at June 30, 2013 and December 31, 2012: |
|||||||||||
June 30, |
December 31, |
||||||||||
ASSETS |
|||||||||||
CURRENT ASSETS: |
|||||||||||
Cash and cash equivalents |
$ |
505,608 |
$ |
547,916 |
|||||||
Accounts receivable |
709,404 |
690,850 |
|||||||||
Inventories, net |
429,942 |
357,638 |
|||||||||
Other assets |
312,313 |
372,830 |
|||||||||
Total current assets |
$ |
1,957,267 |
$ |
1,969,234 |
|||||||
PROPERTY, PLANT AND EQUIPMENT, NET |
375,079 |
385,668 |
|||||||||
GOODWILL |
2,017,313 |
2,014,351 |
|||||||||
OTHER INTANGIBLES, NET |
2,010,258 |
2,098,973 |
|||||||||
OTHER ASSETS |
93,721 |
100,333 |
|||||||||
TOTAL ASSETS |
$ |
6,453,638 |
$ |
6,568,559 |
|||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||||||
CURRENT LIABILITIES: |
|||||||||||
Accounts payable and accrued expenses |
$ |
1,351,809 |
$ |
1,587,827 |
|||||||
Other current liabilities |
73,396 |
140,193 |
|||||||||
Total current liabilities |
$ |
1,425,205 |
$ |
1,728,020 |
|||||||
DEFERRED INCOME TAXES |
476,384 |
516,565 |
|||||||||
LONG-TERM DEBT, LESS CURRENT PORTION, NET |
2,994,252 |
3,037,947 |
|||||||||
OTHER LIABILITIES |
306,252 |
152,821 |
|||||||||
STOCKHOLDERS' EQUITY: |
|||||||||||
Total Endo Health Solutions Inc. stockholders' equity |
$ |
1,192,940 |
$ |
1,072,856 |
|||||||
Noncontrolling interests |
58,605 |
60,350 |
|||||||||
Total stockholders' equity |
$ |
1,251,545 |
$ |
1,133,206 |
|||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
6,453,638 |
$ |
6,568,559 |
|||||||
The following table presents unaudited condensed consolidated Statement of Cash Flow data for the six months ended June 30, 2013 and 2012: |
|||||||||||||||
Six Months Ended June 30, |
|||||||||||||||
2013 |
2012 |
||||||||||||||
OPERATING ACTIVITIES: |
|||||||||||||||
Consolidated net income (loss) |
$ |
74,714 |
$ |
(52,430) |
|||||||||||
Adjustments to reconcile consolidated net income to Consolidated net income (loss) |
|||||||||||||||
Depreciation and amortization |
135,051 |
139,563 |
|||||||||||||
Stock-based compensation |
22,753 |
33,346 |
|||||||||||||
Amortization of debt issuance costs and premium / discount |
18,567 |
17,521 |
|||||||||||||
Other |
29,473 |
(26,591) |
|||||||||||||
Changes in assets and liabilities which (used) provided cash |
(163,527) |
64,930 |
|||||||||||||
Net cash provided by operating activities |
117,031 |
176,339 |
|||||||||||||
INVESTING ACTIVITIES: |
|||||||||||||||
Purchases of property, plant and equipment, net |
(37,029) |
(46,414) |
|||||||||||||
Acquisitions, net of cash acquired |
(3,645) |
443 |
|||||||||||||
Other |
(12,673) |
13,800 |
|||||||||||||
Net cash used in investing activities |
(53,347) |
(32,171) |
|||||||||||||
FINANCING ACTIVITIES: |
|||||||||||||||
Issuance of common stock from treasury, net of (purchases) |
2,803 |
(53,101) |
|||||||||||||
Cash distributions to noncontrolling interests |
(24,349) |
(26,158) |
|||||||||||||
Principal (payments) borrowings on indebtedness, net |
(117,443) |
(233,445) |
|||||||||||||
Exercise of Endo Health Solutions Inc. stock options |
52,483 |
10,819 |
|||||||||||||
Other |
(20,434) |
1,752 |
|||||||||||||
Net cash used in financing activities |
(106,940) |
(300,133) |
|||||||||||||
Effect of foreign exchange rate |
948 |
291 |
|||||||||||||
NET DECREASE IN CASH AND CASH EQUIVALENTS |
(42,308) |
(155,674) |
|||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
547,916 |
547,620 |
|||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ |
505,608 |
$ |
391,946 |
|||||||||||
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as "believes," "expects," "anticipates," "intends," "estimates," "plan," "will," "may," "look forward," "intend," "guidance," "future" or similar expressions are forward-looking statements. Because these statements reflect our current views, expectations and beliefs concerning future events, these forward-looking statements involve risks and uncertainties. Investors should note that many factors, as more fully described under the caption "Risk Factors" in our Form 10-K, Form 10-Q and Form 8-K filings with the
SOURCE
Investors/Media, Blaine Davis, (484) 216-7158 or Investors, Jonathan Neely, (484) 216-6645