Endo Reports Second Quarter Financial Results
Reported diluted EPS for the second quarter of 2014 was
Adjusted diluted EPS decreased by 25 percent to
"Endo delivered strong performance across each of our business segments in the second quarter. We had organic growth in our core products, advanced our pipeline and supplemented our growth through strategic additions," said
FINANCIAL PERFORMANCE
($ in thousands, except per share amounts) |
|||||||||||||||||||||
2nd Quarter |
Six Months Ended June 30, |
||||||||||||||||||||
2014 |
2013 |
Change |
2014 |
2013 |
Change |
||||||||||||||||
Total Revenues |
$ |
718,684 |
$ |
712,148 |
1 |
% |
$ |
1,313,293 |
$ |
1,370,642 |
(4) |
% |
|||||||||
Reported Net Income |
$ |
21,160 |
$ |
34,999 |
(40) |
% |
$ |
(415,752) |
$ |
50,348 |
NM |
||||||||||
Reported Diluted EPS |
$ |
0.13 |
$ |
0.30 |
(57) |
% |
$ |
(2.96) |
$ |
0.44 |
NM |
||||||||||
Adjusted Net Income |
$ |
173,682 |
$ |
166,348 |
4 |
% |
$ |
307,747 |
$ |
289,586 |
6 |
% |
|||||||||
Adjusted Diluted Weighted Average Shares |
163,369 |
117,221 |
39 |
% |
154,365 |
115,205 |
34 |
% |
|||||||||||||
Adjusted Diluted EPS |
$ |
1.06 |
$ |
1.42 |
(25) |
% |
$ |
1.99 |
$ |
2.51 |
(21) |
% |
U.S. BRANDED PHARMACEUTICALS
On
BEMA buprenorphine is being developed for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment and for which alternative treatment options are inadequate in both patients who are opioid naïve and opioid experienced.
Second quarter 2014 branded pharmaceutical revenues were
Second quarter 2014 net sales of Voltaren® Gel increased 7 percent when compared to second quarter 2013 net sales. This increase is attributable to growth in demand. According to
Second quarter 2014 net sales of OPANA® ER decreased 7 percent when compared to the second quarter 2013. This decrease is primarily attributable to a year-over-year decrease in demand. According to
U.S. GENERIC PHARMACEUTICALS
On
Second quarter 2014 generic product net sales of
INTERNATIONAL PHARMACEUTICALS
On
Endo will leverage its global resources along with
Second quarter 2014 sales of
DEVICES
In the second quarter 2014, Endo reported device sales of
In the second quarter 2014
Sales for AMS's benign prostatic hyperplasia (BPH) business decreased 3 percent in the second quarter of 2014 when compared to the second quarter of 2013. This decrease is primarily attributable to a decrease in GreenLight™ console sales and is partially offset by an increase of GreenLight fiber sales.
2014 Financial Guidance
Endo's estimates are based on projected results for the twelve months ended
- Total revenue to be between
$2.72 billion and $2.80 billion - Reported (GAAP) diluted loss per share to be between
$1.77 and$1.57 - Adjusted diluted earnings per share to be between
$3.80 and $4.00 - Adjusted diluted earnings per share assume full year adjusted diluted shares outstanding of 157 million
The company's 2014 guidance is based on certain assumptions including:
- Adjusted gross margin of between 63 percent and 65 percent
- Year-over-year high-single digit percentage decrease of Adjusted Operating Expenses
- Adjusted interest expense of approximately
$220 million - Adjusted effective tax rate of between 23 percent and 24 percent
Balance Sheet Update
In
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, 2014 and 2013 (in thousands, except per share data):
Three Months Ended June 30, 2014 (unaudited) |
Actual Reported |
Adjustments |
Non-GAAP Adjusted |
|||||||||
REVENUES |
$ |
718,684 |
$ |
— |
$ |
718,684 |
||||||
COSTS AND EXPENSES: |
||||||||||||
Cost of revenues |
345,739 |
(84,899) |
(1) |
260,840 |
||||||||
Selling, general and administrative |
171,609 |
(15,890) |
(2) |
155,719 |
||||||||
Research and development |
41,174 |
(10,646) |
(3) |
30,528 |
||||||||
Litigation-related and other contingencies, net |
35,954 |
(35,954) |
(4) |
— |
||||||||
Acquisition-related and integration items |
19,618 |
(19,618) |
(5) |
— |
||||||||
OPERATING INCOME |
$ |
104,590 |
$ |
167,007 |
$ |
271,597 |
||||||
INTEREST EXPENSE, NET |
52,181 |
(3,346) |
(6) |
48,835 |
||||||||
LOSS ON EXTINGUISHMENT OF DEBT |
20,089 |
(20,089) |
(7) |
— |
||||||||
OTHER INCOME, NET |
(6,828) |
3,850 |
(8) |
(2,978) |
||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX |
$ |
39,148 |
$ |
186,592 |
$ |
225,740 |
||||||
INCOME TAX |
15,594 |
35,489 |
(9) |
51,083 |
||||||||
INCOME FROM CONTINUING OPERATIONS |
$ |
23,554 |
$ |
151,103 |
$ |
174,657 |
||||||
DISCONTINUED OPERATIONS, NET OF TAX |
(3,168) |
3,363 |
(10) |
195 |
||||||||
CONSOLIDATED NET INCOME |
$ |
20,386 |
$ |
154,466 |
$ |
174,852 |
||||||
Less: Net (loss) income attributable to noncontrolling interests |
(774) |
1,944 |
(11) |
1,170 |
||||||||
NET INCOME ATTRIBUTABLE TO ENDO INTERNATIONAL PLC |
$ |
21,160 |
$ |
152,522 |
$ |
173,682 |
||||||
DILUTED EARNINGS PER SHARE DATA ATTRIBUTABLE TO ENDO INTERNATIONAL PLC ORDINARY SHAREHOLDERS: |
||||||||||||
Continuing operations |
$ |
0.15 |
$ |
1.06 |
||||||||
Discontinued operations |
(0.02) |
— |
||||||||||
DILUTED EARNINGS PER SHARE |
$ |
0.13 |
$ |
1.06 |
||||||||
DILUTED WEIGHTED AVERAGE SHARES |
163,369 |
163,369 |
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 developed technology of $65,755 and a fair value step-up in inventory of $19,144. |
(2) |
To exclude certain separation benefits and other costs incurred in connection with continued efforts to enhance the company's operations of $11,167, amortization of intangible assets of $2,518, mesh litigation-related defense costs of $18,905, offset by insurance recoveries of $(22,000), an adjustment to the accrual for excise tax payments of $(4,700) and a charge of $10,000 related to the non-recoverability of certain non-trade receivables that did not relate to our core operating activities. |
(3) |
To exclude milestone payments to partners of $10,350 and adjustments to accruals for other costs incurred in connection with continued efforts to enhance the company's operations of $296. |
(4) |
To exclude the impact of net charges primarily for mesh-related product liability. |
(5) |
To exclude acquisition and integration costs of $19,618 associated with the Paladin, Boca and other acquisitions. |
(6) |
To exclude additional non-cash interest expense related to our 1.75% Convertible Senior Subordinated Notes. |
(7) |
To exclude the unamortized debt issuance costs written off and recorded as a net loss on extinguishment of debt in connection with various refinancing and note repurchase activity. |
(8) |
To exclude the net gain on sale of certain early-stage drug discovery and development assets. |
(9) |
Primarily to reflect the cash tax savings from acquired tax attributes and the tax effect of the pre-tax adjustments above at applicable tax rates. |
(10) |
To exclude the after-tax adjustment to the previously recorded gain on sale of the HealthTronics business and certain other sale-related costs. |
(11) |
To exclude the impact of the portion of certain of the above adjustments attributable to noncontrolling interests. |
Three Months Ended June 30, 2013 (unaudited) |
Actual Reported |
Adjustments |
Non-GAAP Adjusted |
|||||||||
REVENUES |
$ |
712,148 |
$ |
— |
$ |
712,148 |
||||||
COSTS AND EXPENSES: |
||||||||||||
Cost of revenues |
273,413 |
(53,729) |
(1) |
219,684 |
||||||||
Selling, general and administrative |
244,302 |
(63,819) |
(2) |
180,483 |
||||||||
Research and development |
33,393 |
(3,367) |
(3) |
30,026 |
||||||||
Litigation-related and other contingencies |
59,971 |
(59,971) |
(4) |
— |
||||||||
Asset impairment charges |
2,849 |
(2,849) |
(5) |
— |
||||||||
Acquisition-related and integration items |
1,825 |
(1,825) |
(6) |
— |
||||||||
OPERATING INCOME |
$ |
96,395 |
$ |
185,560 |
$ |
281,955 |
||||||
INTEREST EXPENSE, NET |
42,334 |
(5,662) |
(7) |
36,672 |
||||||||
OTHER (INCOME) EXPENSE, NET |
(16,700) |
17,593 |
(8) |
893 |
||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX |
$ |
70,761 |
$ |
173,629 |
$ |
244,390 |
||||||
INCOME TAX |
29,012 |
50,834 |
(9) |
79,846 |
||||||||
INCOME FROM CONTINUING OPERATIONS |
$ |
41,749 |
$ |
122,795 |
$ |
164,544 |
||||||
DISCONTINUED OPERATIONS, NET OF TAX |
6,362 |
8,554 |
(10) |
14,916 |
||||||||
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 INTERNATIONAL PLC |
$ |
34,999 |
$ |
131,349 |
$ |
166,348 |
||||||
DILUTED EARNINGS PER SHARE DATA ATTRIBUTABLE TO ENDO INTERNATIONAL PLC ORDINARY SHAREHOLDERS: |
||||||||||||
Continuing operations |
$ |
0.36 |
$ |
1.40 |
||||||||
Discontinued operations |
(0.06) |
0.02 |
||||||||||
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 $48,587, certain separation benefits and other costs incurred in connection with continued efforts to enhance the company's operations of $1,142 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 $48,451, amortization of customer relationships of $2,502 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 impact of charges primarily for mesh-related product liability. |
(5) |
To exclude asset impairment charges. |
(6) |
To exclude acquisition and integration costs. |
(7) |
To exclude additional non-cash interest expense related to our 1.75% Convertible Senior Subordinated Notes. |
(8) |
To exclude $(16,545) related to patent litigation settlement income and other income of $(1,048). |
(9) |
Primarily to reflect the cash tax savings from acquired tax attributes and the tax effect of the pre-tax adjustments above at applicable tax rates. |
(10) |
To exclude certain items related to the HealthTronics business, which is reported as Discontinued operations, net of tax. |
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, 2014 and 2013 (in thousands, except per share data):
Six Months Ended June 30, 2014 (unaudited) |
Actual |
Adjustments |
Non-GAAP Adjusted |
|||||||||
REVENUES |
$ |
1,313,293 |
$ |
— |
$ |
1,313,293 |
||||||
COSTS AND EXPENSES: |
||||||||||||
Cost of revenues |
597,700 |
(141,314) |
(1) |
456,386 |
||||||||
Selling, general and administrative |
398,313 |
(94,555) |
(2) |
303,758 |
||||||||
Research and development |
82,854 |
(20,722) |
(3) |
62,132 |
||||||||
Litigation-related and other contingencies, net |
662,105 |
(662,105) |
(4) |
— |
||||||||
Acquisition-related and integration items |
64,887 |
(64,887) |
(5) |
— |
||||||||
OPERATING (LOSS) INCOME |
$ |
(492,566) |
$ |
983,583 |
$ |
491,017 |
||||||
INTEREST EXPENSE, NET |
105,579 |
(9,315) |
(6) |
96,264 |
||||||||
LOSS ON EXTINGUISHMENT OF DEBT |
29,685 |
(29,685) |
(7) |
— |
||||||||
OTHER INCOME, NET |
(12,860) |
3,850 |
(8) |
(9,010) |
||||||||
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX |
$ |
(614,970) |
$ |
1,018,733 |
$ |
403,763 |
||||||
INCOME TAX |
(199,827) |
293,984 |
(9) |
94,157 |
||||||||
(LOSS) INCOME FROM CONTINUING OPERATIONS |
$ |
(415,143) |
$ |
724,749 |
$ |
309,606 |
||||||
DISCONTINUED OPERATIONS, NET OF TAX |
2,251 |
694 |
(10) |
2,945 |
||||||||
CONSOLIDATED NET (LOSS) INCOME |
$ |
(412,892) |
$ |
725,443 |
$ |
312,551 |
||||||
Less: Net income attributable to noncontrolling interests |
2,860 |
1,944 |
(11) |
4,804 |
||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO ENDO INTERNATIONAL PLC |
$ |
(415,752) |
$ |
723,499 |
$ |
307,747 |
||||||
DILUTED EARNINGS PER SHARE DATA ATTRIBUTABLE TO ENDO INTERNATIONAL PLC ORDINARY SHAREHOLDERS: |
||||||||||||
Continuing operations |
$ |
(2.96) |
$ |
2.00 |
||||||||
Discontinued operations |
— |
(0.01) |
||||||||||
DILUTED (LOSS) EARNINGS PER SHARE |
$ |
(2.96) |
$ |
1.99 |
||||||||
DILUTED WEIGHTED AVERAGE SHARES |
140,252 |
154,365 |
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 developed technology of $118,434, a fair value step-up in inventory of $22,725 and accruals for milestone payments to partners of $155. |
(2) |
To exclude certain separation benefits and other costs incurred in connection with continued efforts to enhance the company's operations of $12,368, amortization of intangible assets of $5,033, mesh litigation-related defense costs of $33,854, offset by insurance recoveries of $(22,000), accruals for excise tax payments of $55,300 and a charge of $10,000 related to the non-recoverability of certain non-trade receivables that did not relate to our core operating activities. |
(3) |
To exclude milestone payments to partners of $21,350 and adjustments to accruals for other costs incurred in connection with continued efforts to enhance the company's operations of $(628). |
(4) |
To exclude the impact of net charges primarily for mesh-related product liability. |
(5) |
To exclude acquisition and integration costs of $64,887 associated with the Paladin, Boca and other acquisitions. |
(6) |
To exclude additional non-cash interest expense related to our 1.75% Convertible Senior Subordinated Notes. |
(7) |
To exclude the unamortized debt issuance costs written off and recorded as a net loss on extinguishment of debt in connection with various refinancing and note repurchase activity. |
(8) |
To exclude the net gain on sale of certain early-stage drug discovery and development assets. |
(9) |
Primarily to reflect the cash tax savings from acquired tax attributes and the tax effect of the pre-tax adjustments above at applicable tax rates. |
(10) |
To exclude the after-tax adjustment to the previously recorded gain on sale of the HealthTronics business and certain other sale-related costs. |
(11) |
To exclude the impact of the portion of certain of the above adjustments attributable to noncontrolling interests. |
Six Months Ended June 30, 2013 (unaudited) |
Actual |
Adjustments |
Non-GAAP Adjusted |
|||||||||
REVENUES |
$ |
1,370,642 |
$ |
— |
$ |
1,370,642 |
||||||
COSTS AND EXPENSES: |
||||||||||||
Cost of revenues |
527,794 |
(98,465) |
(1) |
429,329 |
||||||||
Selling, general and administrative |
471,534 |
(85,086) |
(2) |
386,448 |
||||||||
Research and development |
72,162 |
(9,182) |
(3) |
62,980 |
||||||||
Litigation-related and other contingencies |
128,203 |
(128,203) |
(4) |
— |
||||||||
Asset impairment charges |
3,949 |
(3,949) |
(5) |
— |
||||||||
Acquisition-related and integration items |
2,383 |
(2,383) |
(6) |
— |
||||||||
OPERATING INCOME |
$ |
164,617 |
$ |
327,268 |
$ |
491,885 |
||||||
INTEREST EXPENSE, NET |
86,610 |
(11,112) |
(7) |
75,498 |
||||||||
LOSS ON EXTINGUISHMENT OF DEBT |
11,312 |
(11,312) |
(8) |
— |
||||||||
OTHER (INCOME) EXPENSE, NET |
(34,969) |
36,820 |
(9) |
1,851 |
||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX |
$ |
101,664 |
$ |
312,872 |
$ |
414,536 |
||||||
INCOME TAX |
38,262 |
87,392 |
(10) |
125,654 |
||||||||
INCOME FROM CONTINUING OPERATIONS |
$ |
63,402 |
$ |
225,480 |
$ |
288,882 |
||||||
DISCONTINUED OPERATIONS, NET OF TAX |
11,312 |
13,758 |
(11) |
25,070 |
||||||||
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 INTERNATIONAL PLC |
$ |
50,348 |
$ |
239,238 |
$ |
289,586 |
||||||
DILUTED EARNINGS PER SHARE DATA ATTRIBUTABLE TO ENDO INTERNATIONAL PLC ORDINARY SHAREHOLDERS: |
||||||||||||
Continuing operations |
$ |
0.55 |
$ |
2.51 |
||||||||
Discontinued operations |
(0.11) |
— |
||||||||||
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 $93,323, certain separation benefits and other costs incurred in connection with continued efforts to enhance the company's operations of $1,142 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 $58,904, amortization of customer relationships of $5,016 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 impact of charges primarily for mesh-related product liability. |
(5) |
To exclude asset impairment charges. |
(6) |
To exclude acquisition and integration costs. |
(7) |
To exclude additional non-cash interest expense related to our 1.75% Convertible Senior Subordinated Notes. |
(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) |
Primarily to reflect the cash tax savings from acquired tax attributes and the tax effect of the pre-tax adjustments above at applicable tax rates. |
(11) |
To exclude certain items related to the HealthTronics business, which is reported as Discontinued operations, net of tax. |
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 2014 |
|||||||
Year Ending |
|||||||
December 31, 2014 |
|||||||
Projected GAAP diluted income per common share |
$ |
(1.77) |
To |
$ |
(1.57) |
||
Upfront and milestone-related payments to partners |
0.17 |
0.17 |
|||||
Amortization of commercial intangible assets and fair value inventory step-up |
1.70 |
1.70 |
|||||
Acquisition related, integration and restructuring charges |
1.14 |
1.14 |
|||||
Basic to Diluted weighted average share count effect |
0.10 |
0.10 |
|||||
Charges for litigation and other legal matters |
4.53 |
4.53 |
|||||
Interest expense adjustment for non-cash interest related to our 1.75% Convertible Senior Subordinated Notes and other treasury related items |
0.09 |
0.09 |
|||||
Tax effect of pre-tax adjustments at the applicable tax rates and certain other expected cash tax savings as a result of acquisitions |
(2.16) |
(2.16) |
|||||
Diluted adjusted income per common share guidance |
$ |
3.80 |
To |
$ |
4.00 |
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
July 31, 2014 .
About Endo
(Tables Attached)
The following tables present Endo's unaudited Net Revenues for the three and six months ended June 30, 2014 and 2013:
Endo International plc Net Revenues (unaudited) (in thousands) |
|||||||||||||||||||||
Three Months Ended June 30, |
Percent Growth |
Six Months Ended June 30, |
Percent Growth |
||||||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||||||||
U.S. Branded Pharmaceuticals: |
|||||||||||||||||||||
LIDODERM® |
$ |
43,002 |
$ |
229,656 |
(81) |
% |
$ |
76,082 |
$ |
416,680 |
(82) |
% |
|||||||||
OPANA® ER |
54,109 |
57,951 |
(7) |
% |
101,062 |
114,278 |
(12) |
% |
|||||||||||||
Voltaren® Gel |
45,797 |
42,783 |
7 |
% |
83,356 |
78,893 |
6 |
% |
|||||||||||||
PERCOCET® |
31,543 |
25,950 |
22 |
% |
60,523 |
52,568 |
15 |
% |
|||||||||||||
FORTESTA® Gel |
12,004 |
17,477 |
(31) |
% |
23,147 |
32,131 |
(28) |
% |
|||||||||||||
FROVA® |
18,398 |
14,312 |
29 |
% |
33,678 |
28,089 |
20 |
% |
|||||||||||||
SUPPRELIN® LA |
17,049 |
16,597 |
3 |
% |
30,806 |
30,023 |
3 |
% |
|||||||||||||
VALSTAR® |
6,657 |
4,888 |
36 |
% |
12,036 |
10,303 |
17 |
% |
|||||||||||||
VANTAS® |
2,416 |
3,107 |
(22) |
% |
4,114 |
6,974 |
(41) |
% |
|||||||||||||
SUMAVEL® |
3,176 |
— |
NM |
3,176 |
— |
NM |
|||||||||||||||
AVEED™ |
324 |
— |
NM |
324 |
— |
NM |
|||||||||||||||
Other Branded Products |
605 |
1,052 |
(42) |
% |
1,181 |
1,325 |
(11) |
% |
|||||||||||||
Royalty and Other Revenue |
13,467 |
1,874 |
619 |
% |
53,227 |
1,972 |
2,599 |
% |
|||||||||||||
Total U.S. Branded Pharmaceuticals |
$ |
248,547 |
$ |
415,647 |
(40) |
% |
$ |
482,712 |
$ |
773,236 |
(38) |
% |
|||||||||
Total U.S. Generic Pharmaceuticals |
$ |
272,213 |
$ |
170,530 |
60 |
% |
$ |
484,068 |
$ |
348,783 |
39 |
% |
|||||||||
Total International Pharmaceuticals |
72,088 |
— |
NM |
96,910 |
— |
NM |
|||||||||||||||
Devices: |
|||||||||||||||||||||
Men's Health |
70,069 |
68,081 |
3 |
% |
138,390 |
135,649 |
2 |
% |
|||||||||||||
Women's Health |
26,393 |
27,666 |
(5) |
% |
52,230 |
56,270 |
(7) |
% |
|||||||||||||
BPH Therapy |
29,374 |
30,224 |
(3) |
% |
58,983 |
56,704 |
4 |
% |
|||||||||||||
Total Devices |
125,836 |
125,971 |
— |
% |
249,603 |
248,623 |
— |
% |
|||||||||||||
Total Revenue |
$ |
718,684 |
$ |
712,148 |
1 |
% |
$ |
1,313,293 |
$ |
1,370,642 |
(4) |
% |
The following table presents unaudited condensed consolidated Balance Sheet data at June 30, 2014 and December 31, 2013:
June 30, |
December 31, |
||||||
ASSETS |
|||||||
CURRENT ASSETS: |
|||||||
Cash and cash equivalents |
$ |
1,427,244 |
$ |
526,597 |
|||
Restricted cash and cash equivalents |
65,777 |
770,000 |
|||||
Marketable securities |
46,279 |
— |
|||||
Accounts receivable |
875,932 |
725,827 |
|||||
Inventories, net |
427,199 |
374,439 |
|||||
Assets held for sale |
— |
160,257 |
|||||
Other assets |
322,346 |
297,387 |
|||||
Total current assets |
$ |
3,164,777 |
$ |
2,854,507 |
|||
TOTAL NON-CURRENT ASSETS |
6,797,129 |
3,717,349 |
|||||
TOTAL ASSETS |
$ |
9,961,906 |
$ |
6,571,856 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
CURRENT LIABILITIES: |
|||||||
Accounts payable and accrued expenses |
$ |
1,989,757 |
$ |
1,247,083 |
|||
Liabilities related to assets held for sale |
— |
31,571 |
|||||
Other current liabilities |
186,478 |
418,018 |
|||||
Total current liabilities |
$ |
2,176,235 |
$ |
1,696,672 |
|||
LONG-TERM DEBT, LESS CURRENT PORTION, NET |
4,229,895 |
3,323,844 |
|||||
OTHER LIABILITIES |
711,156 |
966,124 |
|||||
STOCKHOLDERS' EQUITY: |
|||||||
Total Endo International plc shareholders' equity |
$ |
2,807,489 |
$ |
526,018 |
|||
Noncontrolling interests |
37,131 |
59,198 |
|||||
Total shareholders' equity |
$ |
2,844,620 |
$ |
585,216 |
|||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
9,961,906 |
$ |
6,571,856 |
The following table presents unaudited condensed consolidated Statement of Cash Flow data for the six months ended June 30, 2014 and 2013:
Six Months Ended June 30, |
|||||||
2014 |
2013 |
||||||
OPERATING ACTIVITIES: |
|||||||
Consolidated net (loss) income |
$ |
(412,892) |
$ |
74,714 |
|||
Adjustments to reconcile consolidated Net (loss) income to Net cash (used in) provided by operating activities |
|||||||
Depreciation and amortization |
152,818 |
135,051 |
|||||
Share-based compensation |
14,376 |
22,753 |
|||||
Amortization of debt issuance costs and premium / discount |
17,993 |
18,567 |
|||||
Other |
(140,231) |
29,237 |
|||||
Changes in assets and liabilities which provided (used) cash |
315,305 |
(163,291) |
|||||
Net cash (used in) provided by operating activities |
(52,631) |
117,031 |
|||||
INVESTING ACTIVITIES: |
|||||||
Purchases of property, plant and equipment, net |
(40,379) |
(37,029) |
|||||
Acquisitions, net of cash acquired |
(203,088) |
(3,645) |
|||||
Proceeds from sale of business, net |
54,521 |
— |
|||||
Settlement escrow |
3,148 |
— |
|||||
Decrease in restricted cash and cash equivalents |
704,223 |
— |
|||||
Other |
69,916 |
(12,673) |
|||||
Net cash provided by (used in) investing activities |
588,341 |
(53,347) |
|||||
FINANCING ACTIVITIES: |
|||||||
Cash distributions to noncontrolling interests |
(6,144) |
(24,349) |
|||||
Borrowings (payments) on indebtedness, net |
373,875 |
(119,359) |
|||||
Exercise of options |
31,616 |
52,483 |
|||||
Other |
(56,539) |
(15,715) |
|||||
Net cash provided by (used in) financing activities |
342,808 |
(106,940) |
|||||
Effect of foreign exchange rate |
4,716 |
948 |
|||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
883,234 |
(42,308) |
|||||
LESS: NET DECREASE IN CASH AND CASH EQUIVALENTS OF DISCONTINUED OPERATIONS |
(17,413) |
(5,968) |
|||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS |
900,647 |
(36,340) |
|||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
526,597 |
529,689 |
|||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ |
1,427,244 |
$ |
493,349 |
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. 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 Endo's current views, expectations and beliefs concerning future events, these forward-looking statements involve risks and uncertainties. Although Endo believes that these forward-looking statements and information are based upon reasonable assumptions and expectations, readers should not place undue reliance on them, or any other forward-looking statements or information in this news release. Investors should note that many factors, as more fully described in the documents filed by Endo with securities regulators in
SOURCE
Investors/Media, Blaine Davis +353-1-669-6635 or (484) 216-7158; Investors, Jonathan Neely (484) 216-6645