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ENDO REPORTS FOURTH-QUARTER 2022 FINANCIAL RESULTS

March 6, 2023
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DUBLIN, March 6, 2023 /PRNewswire/ -- Endo International plc (OTC: ENDPQ) today reported financial results for the fourth-quarter ended December 31, 2022.

FOURTH-QUARTER FINANCIAL PERFORMANCE

(in thousands, except per share amounts)

Three Months Ended December 31,


Year Ended December 31,


2022

2021

Change

2022

2021

Change

Total Revenues, Net

$          555,812

$         789,429

(30) %

$       2,318,875

$       2,993,206

(23) %

Reported Loss from Continuing Operations

$         (245,163)

$        (556,667)

(56) %

$      (2,909,618)

$         (569,081)

NM

Reported Diluted Weighted Average Shares

235,205

233,681

1 %

234,840

232,785

1 %

Reported Diluted Net Loss per Share from Continuing Operations

$               (1.04)

$              (2.38)

(56) %

$             (12.39)

$               (2.44)

NM

Reported Net Loss

$         (243,535)

$        (562,062)

(57) %

$      (2,923,105)

$         (613,245)

NM

Adjusted Income from Continuing Operations (2)(3)

$          189,529

$         179,914

5 %

$          463,858

$          691,229

(33) %

Adjusted Diluted Weighted Average Shares (1)(2)

236,500

237,045

— %

236,404

236,665

— %

Adjusted Diluted Net Income per Share from Continuing Operations (2)(3)

$                0.80

$               0.76

5 %

$                1.96

$                2.92

(33) %

Adjusted EBITDA (2)(3)

$          210,102

$         366,404

(43) %

$          892,050

$       1,455,702

(39) %

__________

(1)

Reported Diluted Net Loss per Share from Continuing Operations is computed based on weighted average shares outstanding and, if there is income from continuing operations during the period, the dilutive impact of ordinary 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.

(2)

The information presented in the table above includes non-GAAP financial measures such as Adjusted Income from Continuing Operations, Adjusted Diluted Weighted Average Shares, Adjusted Diluted Net Income per Share from Continuing Operations and Adjusted EBITDA. Refer to the "Supplemental Financial Information" section below for reconciliations of certain non-GAAP financial measures to the most directly comparable GAAP financial measures.

(3)

Effective January 1, 2022, these non-GAAP financial measures now include acquired in-process research and development charges which were previously excluded under Endo's legacy non-GAAP policy. This change has been applied retrospectively to all periods presented. Refer to note (15) in the "Notes to the Reconciliations of GAAP and Non-GAAP Financial Measures" section below for additional discussion.

CONSOLIDATED FINANCIAL RESULTS

Total revenues were $556 million in fourth-quarter 2022, a decrease of 30% compared to $789 million in fourth-quarter 2021. This decrease was primarily attributable to decreased revenues from the Sterile Injectables segment.

Reported loss from continuing operations in fourth-quarter 2022 was $245 million compared to $557 million in fourth-quarter 2021. Reported diluted net loss per share from continuing operations in fourth-quarter 2022 was $1.04 compared to $2.38 in fourth-quarter 2021. These results were primarily due to lower asset impairment and litigation-related charges and operating expenses, as well as lower interest as a result of the Chapter 11 filing, partially offset by decreased revenues and expenses related to the Chapter 11 reorganization process.

Adjusted income from continuing operations in fourth-quarter 2022 was $190 million compared to $180 million in fourth-quarter 2021. Adjusted diluted net income per share from continuing operations in fourth-quarter 2022 was $0.80 compared to $0.76 in fourth-quarter 2021. These results were primarily driven by lower interest and operating expenses, which were partially offset by decreased revenues.

BRANDED PHARMACEUTICALS SEGMENT

Fourth-quarter 2022 Branded Pharmaceuticals segment revenues were $224 million, a decrease of 2% compared to $228 million during fourth-quarter 2021.

Specialty Products revenues increased 1% to $162 million in fourth-quarter 2022 compared to $161 million in fourth-quarter 2021, with sales of XIAFLEX® decreasing 5% to $114 million compared to $120 million in fourth-quarter 2021. XIAFLEX® fourth-quarter 2022 revenues were unfavorably impacted by continued challenging market conditions for specialty product office-based elective procedures and the ongoing impact from the third-quarter disruption experienced by our third-party specialty pharmacy provider, which improved during fourth-quarter 2022. Established Products revenues decreased 9% to $61 million in fourth-quarter 2022 compared to $67 million in fourth-quarter 2021, driven primarily by ongoing generic competition.

STERILE INJECTABLES SEGMENT

Fourth-quarter 2022 Sterile Injectables segment revenues were $108 million, a decrease of 66% compared to $319 million during fourth-quarter 2021. This was primarily attributable to decreased VASOSTRICT® revenues due to lower price and market share resulting from generic competition and lower overall market volumes as COVID-19-related hospitalizations decline.

GENERIC PHARMACEUTICALS SEGMENT

Fourth-quarter 2022 Generic Pharmaceuticals segment revenues were $205 million, a decrease of 6% compared to $218 million during fourth-quarter 2021. This decrease was primarily attributable to competitive pressure on certain generic products, partially offset by revenues from varenicline tablets, the first generic version of Chantix® which launched during third-quarter 2021.

INTERNATIONAL PHARMACEUTICALS SEGMENT

Fourth-quarter 2022 International Pharmaceuticals segment revenues were $20 million, a decrease of 19% compared to $24 million during fourth-quarter 2021. This decrease was primarily attributable to competitive pressures and the expiration of a product agreement.

CASH, CASH FLOW AND OTHER UPDATES

As of December 31, 2022, the Company had approximately $1.0 billion in unrestricted cash. Fourth-quarter 2022 net cash provided by operating activities was approximately $110 million compared to approximately $50 million used in operating activities during fourth-quarter 2021. This increase was primarily attributable to a decrease in net working capital as well as reductions in cash interest and litigation related payments, which were partially offset by a decrease in Adjusted EBITDA.

Additionally, during fourth-quarter 2022, the Company announced that it will cease the production and sale of Endo Aesthetics' Qwo® (collagenase clostridium histolyticum-aaes) in light of market concerns about the extent and variability of bruising following initial treatment as well as the potential for prolonged skin discoloration.

Chantix® is a registered trademark of Pfizer Inc.

FINANCIAL SCHEDULES

The following table presents Endo's unaudited Total revenues, net for the three months and years ended December 31, 2022 and 2021 (dollars in thousands):

Three Months Ended December 31,

Percent
Growth

Year Ended December 31,

Percent
Growth

2022

2021

2022

2021

Branded Pharmaceuticals:










Specialty Products:










XIAFLEX®

$         114,304

$         120,078

(5) %

$         438,680

$         432,344

1 %

SUPPRELIN® LA

28,159

28,709

(2) %

113,011

114,374

(1) %

Other Specialty (1)

19,986

12,025

66 %

70,009

86,432

(19) %

Total Specialty Products

$         162,449

$         160,812

1 %

$         621,700

$         633,150

(2) %

Established Products:










PERCOCET®

$           26,460

$           25,093

5 %

$         103,943

$         103,788

— %

TESTOPEL®

10,396

11,322

(8) %

38,727

43,636

(11) %

Other Established (2)

24,523

30,738

(20) %

86,772

113,043

(23) %

Total Established Products

$           61,379

$           67,153

(9) %

$         229,442

$         260,467

(12) %

Total Branded Pharmaceuticals (3)

$         223,828

$         227,965

(2) %

$         851,142

$         893,617

(5) %

Sterile Injectables:










VASOSTRICT®

$           28,479

$         224,971

(87) %

$         253,696

$         901,735

(72) %

ADRENALIN®

28,790

36,494

(21) %

114,304

124,630

(8) %

Other Sterile Injectables (4)

50,472

57,634

(12) %

221,633

239,732

(8) %

Total Sterile Injectables (3)

$         107,741

$         319,099

(66) %

$         589,633

$      1,266,097

(53) %

Total Generic Pharmaceuticals (5)

$         204,701

$         218,135

(6) %

$         795,457

$         740,586

7 %

Total International Pharmaceuticals (6)

$           19,542

$           24,230

(19) %

$           82,643

$           92,906

(11) %

Total revenues, net

$         555,812

$         789,429

(30) %

$      2,318,875

$      2,993,206

(23) %

__________

(1)

Products included within Other Specialty include AVEED®, NASCOBAL® Nasal Spray 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 the year ended December 31, 2022 and/or any product having revenues in excess of $25 million during any completed quarterly period in 2022 or 2021.

(4)

Products included within Other Sterile Injectables include APLISOL®, ertapenem for injection and others.

(5)

The Generic Pharmaceuticals segment is comprised of a portfolio of products that are generic versions of branded products, are distributed primarily through the same wholesalers, generally have limited or no intellectual property protection and are sold within the U.S. During the three months and year ended December 31, 2022, varenicline tablets (Endo's generic version of Pfizer Inc.'s Chantix®), which launched in September 2021, made up 16% and 13%, respectively, of consolidated total revenues. During the three months ended December 31, 2021, varenicline tablets made up 7% of consolidated total revenues. No other individual product within this segment has exceeded 5% of consolidated total revenues for the periods presented.

(6)

The International Pharmaceuticals segment, which accounted for less than 5% of consolidated total revenues for each of the periods presented, includes a variety of specialty pharmaceutical products sold outside the U.S., primarily in Canada through Endo's operating company Paladin Labs Inc.

 

The following table presents unaudited Condensed Consolidated Statement of Operations data for the three months and years ended December 31, 2022 and 2021 (in thousands, except per share data):

Three Months Ended December 31,

Year Ended December 31,

2022

2021

2022

2021

TOTAL REVENUES, NET

$        555,812

$         789,429

$      2,318,875

$      2,993,206

COSTS AND EXPENSES:






Cost of revenues

294,266

311,223

1,092,499

1,221,064

Selling, general and administrative

176,957

250,103

777,169

861,760

Research and development

30,230

38,416

128,033

123,440

Acquired in-process research and development

—

20,120

68,700

25,120

Litigation-related and other contingencies, net

33,984

226,168

478,722

345,495

Asset impairment charges

191,530

364,584

2,142,746

414,977

Acquisition-related and integration items, net

1,359

(2,022)

408

(8,379)

Interest expense, net

290

143,501

349,776

562,353

Loss on extinguishment of debt

—

—

—

13,753

Reorganization items, net

78,766

—

202,978

—

Other income, net

(11,907)

(15,103)

(34,054)

(19,774)

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX

$       (239,663)

$        (547,561)

$     (2,888,102)

$        (546,603)

INCOME TAX EXPENSE

5,500

9,106

21,516

22,478

LOSS FROM CONTINUING OPERATIONS

$       (245,163)

$        (556,667)

$     (2,909,618)

$        (569,081)

DISCONTINUED OPERATIONS, NET OF TAX

1,628

(5,395)

(13,487)

(44,164)

NET LOSS

$       (243,535)

$        (562,062)

$     (2,923,105)

$        (613,245)

NET LOSS PER SHARE—BASIC:






Continuing operations

$             (1.04)

$              (2.38)

$            (12.39)

$              (2.44)

Discontinued operations

—

(0.03)

(0.06)

(0.19)

Basic

$             (1.04)

$              (2.41)

$            (12.45)

$              (2.63)

NET LOSS PER SHARE—DILUTED:






Continuing operations

$             (1.04)

$              (2.38)

$            (12.39)

$              (2.44)

Discontinued operations

—

(0.03)

(0.06)

(0.19)

Diluted

$             (1.04)

$              (2.41)

$            (12.45)

$              (2.63)

WEIGHTED AVERAGE SHARES:






Basic

235,205

233,681

234,840

232,785

Diluted

235,205

233,681

234,840

232,785

 

The following table presents unaudited Condensed Consolidated Balance Sheet data at December 31, 2022 and December 31, 2021 (in thousands):

December 31,
2022

December 31,
2021

ASSETS


CURRENT ASSETS:


Cash and cash equivalents

$      1,018,883

$      1,507,196

Restricted cash and cash equivalents

145,358

124,114

Accounts receivable

493,988

592,019

Inventories, net

274,499

283,552

Other current assets

144,040

207,705

Total current assets

$      2,076,768

$      2,714,586

TOTAL NON-CURRENT ASSETS

3,681,169

6,052,829

TOTAL ASSETS

$      5,757,937

$      8,767,415

LIABILITIES AND SHAREHOLDERS' DEFICIT


CURRENT LIABILITIES:


Accounts payable and accrued expenses, including legal settlement accruals

$         687,183

$      1,417,892

Other current liabilities

2,444

212,070

Total current liabilities

$         689,627

$      1,629,962

LONG-TERM DEBT, LESS CURRENT PORTION, NET

—

8,048,980

OTHER LIABILITIES

61,700

332,459

LIABILITIES SUBJECT TO COMPROMISE

9,168,782

—

SHAREHOLDERS' DEFICIT

(4,162,172)

(1,243,986)

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT

$      5,757,937

$      8,767,415

 

The following table presents unaudited Condensed Consolidated Statement of Cash Flow data for the years ended December 31, 2022 and 2021 (in thousands):

Year Ended December 31,

2022

2021

OPERATING ACTIVITIES:


Net loss

$    (2,923,105)

$       (613,245)

Adjustments to reconcile Net loss to Net cash provided by operating activities:


Depreciation and amortization

391,629

457,098

Asset impairment charges

2,142,746

414,977

Non-cash reorganization items, net

89,197

—

Other, including cash payments to claimants from Qualified Settlement Funds

568,726

152,220

Net cash provided by operating activities

$         269,193

$         411,050

INVESTING ACTIVITIES:


Capital expenditures, excluding capitalized interest

$          (99,722)

$         (77,929)

Acquisitions, including in-process research and development, net of cash and restricted cash acquired

(90,320)

(5,000)

Proceeds from sale of business and other assets, net

41,400

30,283

Other

15,495

(6,898)

Net cash used in investing activities

$        (133,147)

$         (59,544)

FINANCING ACTIVITIES:


Payments on borrowings, including certain adequate protection payments, net (a)

$        (509,513)

$         (78,745)

Other

(4,360)

(26,736)

Net cash used in financing activities

$        (513,873)

$       (105,481)

Effect of foreign exchange rate

(4,242)

285

NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS

$        (382,069)

$        246,310

CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD

1,631,310

1,385,000

CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD

$      1,249,241

$     1,631,310

__________

(a)

Beginning during the third quarter of 2022, Endo became obligated to make certain adequate protection payments as a result of the Chapter 11 proceedings, which are currently being accounted for as a reduction of the carrying amount of the related debt instruments and presented as financing cash outflows. Some or all of the adequate protection payments may later be recharacterized as interest expense and/or as operating cash outflows depending upon certain developments in the Chapter 11 proceedings, which could result in increases in interest expense and/or decreases in operating cash flows in future periods that may be material.

 

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 U.S. Securities and Exchange Commission, which includes an explanation of the Company's reasons for using non-GAAP measures.

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 U.S. Securities and Exchange Commission, the Company has, effective January 1, 2022, revised its definition of its adjusted financial measures to no longer exclude Acquired in-process research and development charges (representing the research and development costs it had previously labeled as "Upfront and milestone payments to partners"). As a result of this change, the Company's adjusted financial measures now reflect the impact of those transactions. The inclusion of the impact of these transactions, which may occur from time to time, could result in significant, but temporary, fluctuations in both Endo's GAAP and Non-GAAP financial measures in the period(s) in which they are incurred. These charges also are not indicative of the underlying performance of Endo's operations during the period. This change was applied retrospectively to all periods presented herein. Refer to footnote (15) in the "Notes to the Reconciliations of GAAP and Non-GAAP Financial Measures" section below for additional discussion.

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 months and years ended December 31, 2022 and 2021 (in thousands):

Three Months Ended December 31,

Year Ended December 31,

2022

2021

2022

2021

Net loss (GAAP)

$       (243,535)

$       (562,062)

$    (2,923,105)

$       (613,245)

Income tax expense

5,500

9,106

21,516

22,478

Interest expense, net

290

143,501

349,776

562,353

Depreciation and amortization (1)

89,342

104,254

387,856

432,380

EBITDA (non-GAAP)

$       (148,403)

$       (305,201)

$    (2,163,957)

$         403,966

Amounts related to continuity and separation benefits,
cost reductions and strategic review initiatives (2)

59,356

32,280

198,381

90,912

Certain litigation-related and other contingencies, net (3)

33,984

226,168

478,722

345,495

Certain legal costs (4)

434

53,187

31,756

136,148

Asset impairment charges (5)

191,530

364,584

2,142,746

414,977

Acquisition-related and integration costs (6)

—

—

—

414

Fair value of contingent consideration (7)

1,359

(2,022)

408

(8,793)

Loss on extinguishment of debt (8)

—

—

—

13,753

Share-based compensation (1)

4,124

6,990

17,145

29,227

Other income, net (9)

(11,907)

(15,103)

(34,054)

(19,774)

Reorganization items, net (10)

78,766

—

202,978

—

Other (11)

2,487

126

4,438

5,213

Discontinued operations, net of tax (12)

(1,628)

5,395

13,487

44,164

Adjusted EBITDA (non-GAAP) (15)

$         210,102

$         366,404

$         892,050

$      1,455,702

 

Reconciliation of Adjusted Income from Continuing Operations (non-GAAP)

The following table provides a reconciliation of the Company's Loss from continuing operations (GAAP) to Adjusted income from continuing operations (non-GAAP) for the three months and years ended December 31, 2022 and 2021 (in thousands):

Three Months Ended December 31,

Year Ended December 31,

2022

2021

2022

2021

Loss from continuing operations (GAAP)

$       (245,163)

$       (556,667)

$    (2,909,618)

$       (569,081)

Non-GAAP adjustments:






Amortization of intangible assets (13)

75,467

91,806

337,311

372,907

Amounts related to continuity and separation benefits,
cost reductions and strategic review initiatives (2)

59,356

32,280

198,381

90,912

Certain litigation-related and other contingencies, net (3)

33,984

226,168

478,722

345,495

Certain legal costs (4)

434

53,187

31,756

136,148

Asset impairment charges (5)

191,530

364,584

2,142,746

414,977

Acquisition-related and integration costs (6)

—

—

—

414

Fair value of contingent consideration (7)

1,359

(2,022)

408

(8,793)

Loss on extinguishment of debt (8)

—

—

—

13,753

Reorganization items, net (10)

78,766

—

202,978

—

Other (11)

(10,022)

(15,200)

(32,980)

(14,539)

Tax adjustments (14)

3,818

(14,222)

14,154

(90,964)

Adjusted income from continuing operations (non-GAAP) (15)

$         189,529

$         179,914

$         463,858

$         691,229

 

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 months and years ended December 31, 2022 and 2021 (in thousands, except per share data):

Three Months Ended December 31, 2022

Total revenues, net

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 net (loss) income per share from continuing operations (16)

Reported (GAAP)

$     555,812

$     294,266

$     261,546

47.1 %

$     434,060

78.1 %

$   (172,514)

(31.0) %

$       67,149

$   (239,663)

$         5,500

(2.3) %

$   (245,163)

$         1,628

$   (243,535)

$         (1.04)

Items impacting comparability:






























Amortization of intangible assets (13)

—

(75,467)

75,467


—


75,467


—

75,467

—


75,467

—

75,467

Amounts related to continuity and separation benefits, cost reductions and strategic review initiatives (2)

—

(38,153)

38,153


(21,203)


59,356


—

59,356

—


59,356

—

59,356

Certain litigation-related and other contingencies, net (3)

—

—

—


(33,984)


33,984


—

33,984

—


33,984

—

33,984

Certain legal costs (4)

—

—

—


(434)


434


—

434

—


434

—

434

Asset impairment charges (5)

—

—

—


(191,530)


191,530


—

191,530

—


191,530

—

191,530

Fair value of contingent consideration (7)

—

—

—


(1,359)


1,359


—

1,359

—


1,359

—

1,359

Reorganization items, net (10)

—

—

—


—


—


(78,766)

78,766

—


78,766

—

78,766

Other (11)

—

(125)

125


(2,355)


2,480


12,502

(10,022)

—


(10,022)

—

(10,022)

Tax adjustments (14)

—

—

—


—


—


—

—

(3,818)


3,818

—

3,818

Discontinued operations, net of tax (12)

—

—

—


—


—


—

—

—


—

(1,628)

(1,628)

After considering items (non-GAAP) (15)

$     555,812

$     180,521

$     375,291

67.5 %

$     183,195

33.0 %

$     192,096

34.6 %

$            885

$     191,211

$         1,682

0.9 %

$     189,529

$              —

$     189,529

$           0.80

 

Three Months Ended December 31, 2021

Total revenues, net

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 net (loss) income per share from continuing operations (16)

Reported (GAAP)

$     789,429

$     311,223

$     478,206

60.6 %

$     897,369

113.7 %

$   (419,163)

(53.1) %

$     128,398

$   (547,561)

$         9,106

(1.7) %

$   (556,667)

$       (5,395)

$   (562,062)

$         (2.38)

Items impacting comparability:






























Amortization of intangible assets (13)

—

(91,806)

91,806


—


91,806


—

91,806

—


91,806

—

91,806

Amounts related to continuity and separation benefits, cost reductions and strategic review initiatives (2)

—

949

(949)


(33,229)


32,280


—

32,280

—


32,280

—

32,280

Certain litigation-related and other contingencies, net (3)

—

—

—


(226,168)


226,168


—

226,168

—


226,168

—

226,168

Certain legal costs (4)

—

—

—


(53,187)


53,187


—

53,187

—


53,187

—

53,187

Asset impairment charges (5)

—

—

—


(364,584)


364,584


—

364,584

—


364,584

—

364,584

Fair value of contingent consideration (7)

—

—

—


2,022


(2,022)


—

(2,022)

—


(2,022)

—

(2,022)

Other (11)

—

(125)

125


—


125


15,325

(15,200)

—


(15,200)

—

(15,200)

Tax adjustments (14)

—

—

—


—


—


—

—

14,222


(14,222)

—

(14,222)

Discontinued operations, net of tax (12)

—

—

—


—


—


—

—

—


—

5,395

5,395

After considering items (non-GAAP) (15)

$     789,429

$     220,241

$     569,188

72.1 %

$     222,223

28.1 %

$     346,965

44.0 %

$     143,723

$     203,242

$       23,328

11.5 %

$     179,914

$              —

$     179,914

$           0.76

 

Year Ended December 31, 2022

Total revenues, net

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 net (loss) income per share from continuing operations (16)

Reported (GAAP)

$  2,318,875

$  1,092,499

$  1,226,376

52.9 %

$  3,595,778

155.1 %

$(2,369,402)

(102.2) %

$     518,700

$(2,888,102)

$       21,516

(0.7) %

$(2,909,618)

$     (13,487)

$(2,923,105)

$       (12.39)

Items impacting comparability:






























Amortization of intangible assets (13)

—

(337,311)

337,311


—


337,311


—

337,311

—


337,311

—

337,311

Amounts related to continuity and separation benefits, cost reductions and strategic review initiatives (2)

—

(61,806)

61,806


(136,575)


198,381


—

198,381

—


198,381

—

198,381

Certain litigation-related and other contingencies, net (3)

—

—

—


(478,722)


478,722


—

478,722

—


478,722

—

478,722

Certain legal costs (4)

—

—

—


(31,756)


31,756


—

31,756

—


31,756

—

31,756

Asset impairment charges (5)

—

—

—


(2,142,746)


2,142,746


—

2,142,746

—


2,142,746

—

2,142,746

Fair value of contingent consideration (7)

—

—

—


(408)


408


—

408

—


408

—

408

Reorganization items, net (10)

—

—

—


—


—


(202,978)

202,978

—


202,978

—

202,978

Other (11)

—

(500)

500


(3,925)


4,425


37,405

(32,980)

—


(32,980)

—

(32,980)

Tax adjustments (14)

—

—

—


—


—


—

—

(14,154)


14,154

—

14,154

Discontinued operations, net of tax (12)

—

—

—


—


—


—

—

—


—

13,487

13,487

After considering items (non-GAAP) (15)

$  2,318,875

$     692,882

$  1,625,993

70.1 %

$     801,646

34.6 %

$     824,347

35.5 %

$     353,127

$     471,220

$         7,362

1.6 %

$     463,858

$              —

$     463,858

$           1.96

 

Year Ended December 31, 2021

Total revenues, net

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 net (loss) income per share from continuing operations (16)

Reported (GAAP)

$  2,993,206

$  1,221,064

$  1,772,142

59.2 %

$  1,762,413

58.9 %

$         9,729

0.3 %

$     556,332

$   (546,603)

$       22,478

(4.1) %

$   (569,081)

$     (44,164)

$   (613,245)

$         (2.44)

Items impacting comparability:






























Amortization of intangible assets (13)

—

(372,907)

372,907


—


372,907


—

372,907

—


372,907

—

372,907

Amounts related to continuity and separation benefits, cost reductions and strategic review initiatives (2)

—

(9,058)

9,058


(81,854)


90,912


—

90,912

—


90,912

—

90,912

Certain litigation-related and other contingencies, net (3)

—

—

—


(345,495)


345,495


—

345,495

—


345,495

—

345,495

Certain legal costs (4)

—

—

—


(136,148)


136,148


—

136,148

—


136,148

—

136,148

Asset impairment charges (5)

—

—

—


(414,977)


414,977


—

414,977

—


414,977

—

414,977

Acquisition-related and integration costs (6)

—

—

—


(414)


414


—

414

—


414

—

414

Fair value of contingent consideration (7)

—

—

—


8,793


(8,793)


—

(8,793)

—


(8,793)

—

(8,793)

Loss on extinguishment of debt (8)

—

—

—


—


—


(13,753)

13,753

—


13,753

—

13,753

Other (11)

—

(1,301)

1,301


(3,909)


5,210


19,749

(14,539)

—


(14,539)

—

(14,539)

Tax adjustments (14)

—

—

—


—


—


—