Endo Reports Fourth-Quarter And Full-Year 2017 Financial Results
- Fourth-quarter 2017 revenues of
$769 million ; Full-year 2017 revenues of$3,469 million - Fourth-quarter 2017 Sterile Injectables revenues increased 16 percent to
$167 million ; Full-year 2017 Sterile Injectables revenues increased 23 percent to$654 million - Fourth-quarter 2017 Branded Specialty Products revenues increased 8 percent to
$124 million ; Full-year 2017 Branded Specialty Products revenues increased 11 percent to$453 million - Fourth-quarter 2017 reported
$1.22 diluted (GAAP) loss per share from continuing operations; Full-year 2017 reported$5.52 diluted (GAAP) loss per share from continuing operations - Fourth-quarter 2017 adjusted diluted earnings per share (EPS) from continuing operations of
$0.77 ; Full-year 2017 adjusted diluted EPS from continuing operations exceeded upper end of guidance at$3.84 - Fourth-quarter 2017 reported (GAAP) consolidated net loss of
$368 million ; Full-year 2017 reported (GAAP) consolidated net loss of$2,035 million - Fourth-quarter 2017 adjusted EBITDA of
$327 million ; Full-year 2017 adjusted EBITDA of$1,568 million exceeded upper end of guidance - Company expects 2018 revenues to range between
$2.6 billion and $2.8 billion ; Company expects 2018 adjusted EBITDA between$1.2 billion and $1.3 billion
- Revenues of
$769 million , a 38 percent decrease compared to fourth-quarter 2016 revenues of$1,242 million . - Reported net loss from continuing operations of
$272 million compared to fourth-quarter 2016 reported net loss from continuing operations of$3,333 million . - Reported diluted loss per share from continuing operations of
$1.22 compared to fourth-quarter 2016 reported diluted loss per share from continuing operations of$14.96 . - Adjusted income from continuing operations of
$174 million compared to fourth-quarter 2016 adjusted income from continuing operations of$396 million . - Adjusted diluted EPS from continuing operations of
$0.77 compared to fourth-quarter 2016 adjusted diluted EPS from continuing operations of$1.77 . - Adjusted EBITDA of
$327 million compared to fourth-quarter 2016 adjusted EBITDA of$556 million .
"Despite the challenges impacting the U.S. generics industry, Endo delivered solid operating results in 2017, including strong adjusted EBITDA generation," said
FINANCIAL PERFORMANCE (in thousands, except per share amounts) |
|||||||||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||
2017 |
2016 |
Change |
2017 |
2016 |
Change |
||||||||||||||||
Total Revenues |
$ |
768,640 |
$ |
1,241,513 |
(38) |
% |
$ |
3,468,858 |
$ |
4,010,274 |
(14) |
% |
|||||||||
Reported Loss from Continuing |
$ |
(271,581) |
$ |
(3,333,325) |
(92) |
% |
$ |
(1,232,711) |
$ |
(3,223,772) |
(62) |
% |
|||||||||
Reported Diluted Weighted Average |
223,322 |
222,870 |
— |
% |
223,198 |
222,651 |
— |
% |
|||||||||||||
Reported Diluted Loss per Share |
$ |
(1.22) |
$ |
(14.96) |
(92) |
% |
$ |
(5.52) |
$ |
(14.48) |
(62) |
% |
|||||||||
Adjusted Income from Continuing |
$ |
173,863 |
$ |
395,791 |
(56) |
% |
$ |
860,361 |
$ |
1,054,382 |
(18) |
% |
|||||||||
Adjusted Diluted Weighted Average |
224,577 |
223,178 |
1 |
% |
223,978 |
223,090 |
— |
% |
|||||||||||||
Adjusted Diluted EPS from |
$ |
0.77 |
$ |
1.77 |
(56) |
% |
$ |
3.84 |
$ |
4.73 |
(19) |
% |
__________ |
|
(1) |
Diluted per share data is computed based on weighted average shares outstanding and, if there is income from continuing operations during the period, the dilutive impact of share equivalents outstanding during the period. In the case of Adjusted Diluted Weighted Average Shares, Adjusted Income from Continuing Operations is used in determining whether to include such dilutive impact. |
CONSOLIDATED RESULTS
Total revenues decreased by 38 percent to
GAAP net loss from continuing operations in fourth-quarter 2017 was
Adjusted income from continuing operations in fourth-quarter 2017 was
U.S. GENERIC PHARMACEUTICALS
During fourth-quarter 2017, the
Fourth-quarter 2017
- Revenues of
$499 million , a 43 percent decrease compared to fourth-quarter 2016; this decline was primarily attributable to the loss of marketing exclusivity in the first half of 2017 for the first-to-file products ezetimibe tablets and quetiapine ER tablets. Also contributing to the decline were previously announced product discontinuances and pricing pressure from increased competition primarily impacting the Base business. - Sterile Injectables revenue increased 16 percent compared to fourth-quarter 2016; this increase was driven primarily by ADRENALIN®.
- New Launches and Alternative Dosages revenue decreased 67 percent compared to fourth-quarter 2016; this decrease was driven primarily by the expiration of the marketing exclusivity periods for ezetimibe tablets and quetiapine ER tablets.
- The U.S. Generics Base business revenues decreased 37 percent compared to fourth-quarter 2016; this decrease primarily resulted from the impact of 2016 and 2017 competitive events, previously announced product discontinuances and the continued impact of pricing due to consolidation among our trade accounts.
U.S. BRANDED PHARMACEUTICALS
In
Fourth-quarter 2017
- Revenues of
$228 million , a 21 percent decrease compared to fourth-quarter 2016; this decrease was primarily attributable to the decline in revenues of OPANA® ER resulting from the cessation of product shipments bySeptember 1, 2017 and generic competition adversely impacting the Company's Established Products portfolio. - Specialty Products revenues increased 8 percent in fourth-quarter 2017 versus the same period in 2016, driven by strong performance from XIAFLEX® and other products within our Specialty Products portfolio. Sales of XIAFLEX®, our flagship Branded product, increased 10 percent compared to fourth-quarter 2016; this increase was primarily attributable to volume growth that was driven, in part, by a full year of direct-to-consumer initiatives intended to increase patient awareness of XIAFLEX® as a possible treatment option for Dupuytren's Contracture and Peyronie's Disease.
INTERNATIONAL PHARMACEUTICALS
Fourth-quarter 2017
2018 FINANCIAL GUIDANCE
For the full twelve months ending December 31, 2018, at current exchange rates, Endo is providing guidance on revenue, adjusted diluted EPS from continuing operations and adjusted EBITDA from continuing operations. The Company estimates:
- Total revenues to be between
$2.6 billion and $2.8 billion ; - Adjusted diluted EPS from continuing operations to be between
$2.15 and $2.55 ; and - Adjusted EBITDA from continuing operations to be between
$1.2 billion and $1.3 billion .
The Company's 2018 non-GAAP financial guidance is based on the following assumptions:
- Adjusted gross margin of approximately 67.0% to 68.0%;
- Adjusted operating expenses as a percentage of revenues of approximately 25.5% to 26.5%;
- Adjusted interest expense of approximately
$530 million to $540 million ; - Adjusted effective tax rate of approximately 11.0% to 12.0%; and
- Adjusted diluted weighted average shares outstanding of approximately 226 million.
BALANCE SHEET, LIQUIDITY AND OTHER UPDATES
As of December 31, 2017, the Company had
Fourth-quarter 2017 cash provided by operating activities was
During fourth-quarter 2017, the Company recorded pre-tax, non-cash asset impairment charges of
In addition, the Company recorded a total increase of approximately
CONFERENCE CALL INFORMATION
Endo will conduct a conference call with financial analysts to discuss this press release today at
A replay of the call will be available from February 27, 2018 at
A simultaneous webcast of the call can be accessed by visiting http://investor.endo.com/events-and-presentations. In addition, a replay of the webcast will be available on the Company website for one year following the event.
FINANCIAL SCHEDULES |
|||||||||||||||||||||
The following table presents Endo's unaudited Total Revenues for the three and twelve months ended December 31, 2017 and 2016 (in thousands): |
|||||||||||||||||||||
Three Months Ended December 31, |
Percent |
Year Ended December 31, |
Percent |
||||||||||||||||||
2017 |
2016 |
Growth |
2017 |
2016 |
Growth |
||||||||||||||||
U.S. Generic Pharmaceuticals: |
|||||||||||||||||||||
U.S. Generics Base |
$ |
182,314 |
$ |
288,142 |
(37) |
% |
$ |
829,729 |
$ |
1,230,097 |
(33) |
% |
|||||||||
Sterile Injectables |
167,342 |
143,905 |
16 |
% |
654,270 |
530,805 |
23 |
% |
|||||||||||||
New Launches and Alternative Dosages |
149,396 |
450,127 |
(67) |
% |
797,002 |
803,711 |
(1) |
% |
|||||||||||||
Total U.S. Generic Pharmaceuticals |
$ |
499,052 |
$ |
882,174 |
(43) |
% |
$ |
2,281,001 |
$ |
2,564,613 |
(11) |
% |
|||||||||
U.S. Branded Pharmaceuticals: |
|||||||||||||||||||||
Specialty Products: |
|||||||||||||||||||||
XIAFLEX® |
$ |
61,265 |
$ |
55,530 |
10 |
% |
$ |
213,378 |
$ |
189,689 |
12 |
% |
|||||||||
SUPPRELIN® LA |
22,743 |
20,793 |
9 |
% |
86,211 |
78,648 |
10 |
% |
|||||||||||||
Other Specialty (1) |
39,977 |
38,243 |
5 |
% |
153,384 |
138,483 |
11 |
% |
|||||||||||||
Total Specialty Products |
$ |
123,985 |
$ |
114,566 |
8 |
% |
$ |
452,973 |
$ |
406,820 |
11 |
% |
|||||||||
Established Products: |
|||||||||||||||||||||
OPANA® ER |
$ |
1,770 |
$ |
38,880 |
(95) |
% |
$ |
83,826 |
$ |
158,938 |
(47) |
% |
|||||||||
PERCOCET® |
32,048 |
36,029 |
(11) |
% |
125,231 |
139,211 |
(10) |
% |
|||||||||||||
VOLTAREN® Gel |
15,134 |
18,612 |
(19) |
% |
68,780 |
100,642 |
(32) |
% |
|||||||||||||
LIDODERM® |
13,924 |
21,122 |
(34) |
% |
51,629 |
87,577 |
(41) |
% |
|||||||||||||
Other Established (2) |
41,514 |
60,087 |
(31) |
% |
175,086 |
273,106 |
(36) |
% |
|||||||||||||
Total Established Products |
$ |
104,390 |
$ |
174,730 |
(40) |
% |
$ |
504,552 |
$ |
759,474 |
(34) |
% |
|||||||||
Total U.S. Branded Pharmaceuticals (3) |
$ |
228,375 |
$ |
289,296 |
(21) |
% |
$ |
957,525 |
$ |
1,166,294 |
(18) |
% |
|||||||||
Total International Pharmaceuticals |
$ |
41,213 |
$ |
70,043 |
(41) |
% |
$ |
230,332 |
$ |
279,367 |
(18) |
% |
|||||||||
Total Revenues |
$ |
768,640 |
$ |
1,241,513 |
(38) |
% |
$ |
3,468,858 |
$ |
4,010,274 |
(14) |
% |
__________ |
|
(1) |
Products included within Other Specialty include TESTOPEL®, NASCOBAL® Nasal Spray, and AVEED®. |
(2) |
Products included within Other Established include, but are not limited to, TESTIM® and FORTESTA® Gel, including the authorized generic. |
(3) |
Individual products presented above represent the top two performing products in each product category and/or any product having revenues in excess of $25 million during any quarterly period in 2017 or 2016. LIDODERM® is separately presented as its revenues exceeded $25 million in certain quarterly periods in 2016. |
The following table presents unaudited Condensed Consolidated Statement of Operations data for the three and twelve months ended December 31, 2017 and 2016 (in thousands, except per share data): |
|||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
TOTAL REVENUES |
$ |
768,640 |
$ |
1,241,513 |
$ |
3,468,858 |
$ |
4,010,274 |
|||||||
COSTS AND EXPENSES: |
|||||||||||||||
Cost of revenues |
505,645 |
756,578 |
2,228,530 |
2,634,973 |
|||||||||||
Selling, general and administrative |
161,199 |
212,568 |
629,874 |
770,728 |
|||||||||||
Research and development |
48,545 |
46,206 |
172,067 |
183,372 |
|||||||||||
Litigation-related and other contingencies, net |
200,006 |
(4,765) |
185,990 |
23,950 |
|||||||||||
Asset impairment charges |
130,446 |
3,518,085 |
1,154,376 |
3,781,165 |
|||||||||||
Acquisition-related and integration items |
26,375 |
7,400 |
58,086 |
87,601 |
|||||||||||
OPERATING LOSS FROM CONTINUING |
$ |
(303,576) |
$ |
(3,294,559) |
$ |
(960,065) |
$ |
(3,471,515) |
|||||||
INTEREST EXPENSE, NET |
126,961 |
111,783 |
488,228 |
452,679 |
|||||||||||
LOSS ON EXTINGUISHMENT OF DEBT |
— |
— |
51,734 |
— |
|||||||||||
OTHER INCOME, NET |
(6,180) |
(740) |
(17,023) |
(338) |
|||||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE |
$ |
(424,357) |
$ |
(3,405,602) |
$ |
(1,483,004) |
$ |
(3,923,856) |
|||||||
INCOME TAX BENEFIT |
(152,776) |
(72,277) |
(250,293) |
(700,084) |
|||||||||||
LOSS FROM CONTINUING OPERATIONS |
$ |
(271,581) |
$ |
(3,333,325) |
$ |
(1,232,711) |
$ |
(3,223,772) |
|||||||
DISCONTINUED OPERATIONS, NET OF TAX |
(96,836) |
(4,531) |
(802,722) |
(123,278) |
|||||||||||
CONSOLIDATED NET LOSS |
$ |
(368,417) |
$ |
(3,337,856) |
$ |
(2,035,433) |
$ |
(3,347,050) |
|||||||
Less: Net income attributable to noncontrolling interests |
— |
— |
— |
16 |
|||||||||||
NET LOSS ATTRIBUTABLE TO ENDO |
$ |
(368,417) |
$ |
(3,337,856) |
$ |
(2,035,433) |
$ |
(3,347,066) |
|||||||
NET LOSS PER SHARE ATTRIBUTABLE TO ENDO |
|||||||||||||||
Continuing operations |
$ |
(1.22) |
$ |
(14.96) |
$ |
(5.52) |
$ |
(14.48) |
|||||||
Discontinued operations |
(0.43) |
(0.02) |
(3.60) |
(0.55) |
|||||||||||
Basic |
$ |
(1.65) |
$ |
(14.98) |
$ |
(9.12) |
$ |
(15.03) |
|||||||
NET LOSS PER SHARE ATTRIBUTABLE TO ENDO SHAREHOLDERS—DILUTED: |
|||||||||||||||
Continuing operations |
$ |
(1.22) |
$ |
(14.96) |
$ |
(5.52) |
$ |
(14.48) |
|||||||
Discontinued operations |
(0.43) |
(0.02) |
(3.60) |
(0.55) |
|||||||||||
Diluted |
$ |
(1.65) |
$ |
(14.98) |
$ |
(9.12) |
$ |
(15.03) |
|||||||
WEIGHTED AVERAGE SHARES: |
|||||||||||||||
Basic |
223,322 |
222,870 |
223,198 |
222,651 |
|||||||||||
Diluted |
223,322 |
222,870 |
223,198 |
222,651 |
The following table presents unaudited Condensed Consolidated Balance Sheet data at December 31, 2017 and December 31, 2016 (in thousands): |
|||||||
December 31, |
December 31, |
||||||
ASSETS |
|||||||
CURRENT ASSETS: |
|||||||
Cash and cash equivalents |
$ |
986,605 |
$ |
517,250 |
|||
Restricted cash and cash equivalents |
320,453 |
282,074 |
|||||
Accounts receivable |
517,436 |
992,153 |
|||||
Inventories, net |
391,437 |
555,671 |
|||||
Assets held for sale |
— |
116,985 |
|||||
Other current assets |
55,146 |
125,326 |
|||||
Total current assets |
$ |
2,271,077 |
$ |
2,589,459 |
|||
TOTAL NON-CURRENT ASSETS |
9,364,503 |
11,685,650 |
|||||
TOTAL ASSETS |
$ |
11,635,580 |
$ |
14,275,109 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
CURRENT LIABILITIES: |
|||||||
Accounts payable and accrued expenses, including legal settlement accruals |
$ |
2,184,618 |
$ |
2,470,016 |
|||
Liabilities held for sale |
— |
24,338 |
|||||
Other current liabilities |
36,291 |
140,391 |
|||||
Total current liabilities |
$ |
2,220,909 |
$ |
2,634,745 |
|||
LONG-TERM DEBT, LESS CURRENT PORTION, NET |
8,242,032 |
8,141,378 |
|||||
OTHER LIABILITIES |
687,759 |
797,397 |
|||||
TOTAL SHAREHOLDERS' EQUITY |
484,880 |
2,701,589 |
|||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
11,635,580 |
$ |
14,275,109 |
The following table presents unaudited Condensed Consolidated Statement of Cash Flow data for the year ended December 31, 2017 and 2016 (in thousands): |
|||||||
Year Ended December 31, |
|||||||
2017 |
2016 |
||||||
OPERATING ACTIVITIES: |
|||||||
Consolidated net loss |
$ |
(2,035,433) |
$ |
(3,347,050) |
|||
Adjustments to reconcile consolidated net loss to Net cash provided by operating activities: |
|||||||
Depreciation and amortization |
983,765 |
983,309 |
|||||
Asset impairment charges |
1,154,376 |
3,802,493 |
|||||
Other, including cash payments to claimants from Qualified Settlement Funds |
451,277 |
(910,609) |
|||||
Net cash provided by operating activities |
$ |
553,985 |
$ |
528,143 |
|||
INVESTING ACTIVITIES: |
|||||||
Purchases of property, plant and equipment |
$ |
(125,654) |
$ |
(138,856) |
|||
Acquisitions, net of cash acquired |
— |
(30,394) |
|||||
Proceeds from sale of business and other assets, net |
223,237 |
10,870 |
|||||
Other |
7,000 |
(19,172) |
|||||
Net cash provided by (used in) investing activities |
$ |
104,583 |
$ |
(177,552) |
|||
FINANCING ACTIVITIES: |
|||||||
Payments on borrowings, net |
$ |
(22,105) |
$ |
(336,361) |
|||
Other |
(144,888) |
(60,825) |
|||||
Net cash (used in) provided by financing activities |
$ |
(166,993) |
$ |
(397,186) |
|||
Effect of foreign exchange rate |
2,515 |
436 |
|||||
Movement in cash held for sale |
11,744 |
(11,744) |
|||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, RESTRICTED CASH |
$ |
505,834 |
$ |
(57,903) |
|||
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH |
805,180 |
863,083 |
|||||
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH |
$ |
1,311,014 |
$ |
805,180 |
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 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 our non-GAAP financial measures, both historical and forward-looking, to their most directly comparable GAAP amounts. Refer to the "Notes to the Reconciliations of GAAP and Non-GAAP Financial Measures" section below for additional details regarding the adjustments to the non-GAAP financial measures detailed throughout this Supplemental Financial Information section. |
|||||||||||||||
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP) |
|||||||||||||||
The following table provides a reconciliation of Net loss attributable to Endo International plc (GAAP) to Adjusted EBITDA (non-GAAP) for the three and twelve months ended December 31, 2017 and 2016 (in thousands): |
|||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
Net loss attributable to Endo International plc (GAAP) |
$ |
(368,417) |
$ |
(3,337,856) |
$ |
(2,035,433) |
$ |
(3,347,066) |
|||||||
Income tax benefit |
(152,776) |
(72,277) |
(250,293) |
(700,084) |
|||||||||||
Interest expense, net |
126,961 |
111,783 |
488,228 |
452,679 |
|||||||||||
Depreciation and amortization (18) |
177,321 |
260,370 |
857,706 |
955,802 |
|||||||||||
EBITDA (non-GAAP) |
$ |
(216,911) |
$ |
(3,037,980) |
$ |
(939,792) |
$ |
(2,638,669) |
|||||||
Inventory step-up and other cost savings (2) |
$ |
109 |
$ |
13,912 |
$ |
390 |
$ |
125,699 |
|||||||
Upfront and milestone-related payments (3) |
2,531 |
2,455 |
9,483 |
8,330 |
|||||||||||
Inventory reserve increase (decrease) from restructuring (4) |
5,779 |
(137) |
13,678 |
24,455 |
|||||||||||
Royalty obligations (5) |
— |
— |
— |
(7,750) |
|||||||||||
Separation benefits and other restructuring (6) |
78,692 |
37,216 |
198,770 |
83,036 |
|||||||||||
Certain litigation-related and other contingencies, net (7) |
200,006 |
(4,765) |
185,990 |
23,950 |
|||||||||||
Asset impairment charges (8) |
130,446 |
3,518,085 |
1,154,376 |
3,781,165 |
|||||||||||
Acquisition-related and integration costs (9) |
— |
8,356 |
8,137 |
63,778 |
|||||||||||
Fair value of contingent consideration (10) |
26,375 |
(956) |
49,949 |
23,823 |
|||||||||||
Loss on extinguishment of debt (11) |
— |
— |
51,734 |
— |
|||||||||||
Share-based compensation |
9,897 |
15,183 |
50,149 |
58,656 |
|||||||||||
Other income, net (19) |
(6,180) |
(740) |
(17,023) |
(338) |
|||||||||||
Other adjustments |
(151) |
781 |
(226) |
— |
|||||||||||
Discontinued operations, net of tax (15) |
96,836 |
4,531 |
802,722 |
123,278 |
|||||||||||
Net income attributable to noncontrolling interests (16) |
— |
— |
— |
16 |
|||||||||||
Adjusted EBITDA (non-GAAP) |
$ |
327,429 |
$ |
555,941 |
$ |
1,568,337 |
$ |
1,669,429 |
Reconciliation of Adjusted Income from Continuing Operations (non-GAAP) |
|||||||||||||||
The following table provides a reconciliation of our Loss from continuing operations (GAAP) to our Adjusted income from continuing operations (non-GAAP) for the three and twelve months ended December 31, 2017 and 2016 (in thousands): |
|||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
Loss from continuing operations (GAAP) |
$ |
(271,581) |
$ |
(3,333,325) |
$ |
(1,232,711) |
$ |
(3,223,772) |
|||||||
Non-GAAP adjustments: |
|||||||||||||||
Amortization of intangible assets (1) |
158,276 |
240,390 |
773,766 |
876,451 |
|||||||||||
Inventory step-up and other cost savings (2) |
109 |
13,912 |
390 |
125,699 |
|||||||||||
Upfront and milestone-related payments (3) |
2,531 |
2,455 |
9,483 |
8,330 |
|||||||||||
Inventory reserve increase (decrease) from restructuring (4) |
5,779 |
(137) |
13,678 |
24,455 |
|||||||||||
Royalty obligations (5) |
— |
— |
— |
(7,750) |
|||||||||||
Separation benefits and other restructuring (6) |
78,692 |
37,216 |
198,770 |
83,036 |
|||||||||||
Certain litigation-related and other contingencies, net (7) |
200,006 |
(4,765) |
185,990 |
23,950 |
|||||||||||
Asset impairment charges (8) |
130,446 |
3,518,085 |
1,154,376 |
3,781,165 |
|||||||||||
Acquisition-related and integration costs (9) |
— |
8,356 |
8,137 |
63,778 |
|||||||||||
Fair value of contingent consideration (10) |
26,375 |
(956) |
49,949 |
23,823 |
|||||||||||
Loss on extinguishment of debt (11) |
— |
— |
51,734 |
— |
|||||||||||
Non-cash and penalty interest charges (12) |
— |
— |
— |
4,092 |
|||||||||||
Other (13) |
(7,487) |
(1,836) |
(8,620) |
(7,273) |
|||||||||||
Tax adjustments (14) |
(149,283) |
(83,604) |
(344,581) |
(721,602) |
|||||||||||
Adjusted income from continuing operations (non-GAAP) |
$ |
173,863 |
$ |
395,791 |
$ |
860,361 |
$ |
1,054,382 |
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 twelve months ended December 31, 2017 and 2016 (in thousands, except per share data): |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2017 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
Cost of |
Gross |
Gross |
Total |
Operating |
Operating |
Operating |
Other |
(Loss) |
Income |
Effective |
(Loss) |
Discontinued |
Net (loss) |
Diluted |
||||||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) |
$ |
768,640 |
$ |
505,645 |
$ |
262,995 |
34 |
% |
$ |
566,571 |
74 |
% |
$ |
(303,576) |
(39) |
% |
$ |
120,781 |
$ |
(424,357) |
$ |
(152,776) |
36 |
% |
$ |
(271,581) |
$ |
(96,836) |
$ |
(368,417) |
$ |
(1.22) |
|||||||||||||||||||||||||||
Items impacting |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of |
— |
(158,276) |
158,276 |
— |
158,276 |
— |
158,276 |
— |
158,276 |
— |
158,276 |
0.70 |
|||||||||||||||||||||||||||||||||||||||||||||||
Inventory step-up and |
— |
(109) |
109 |
— |
109 |
— |
109 |
— |
109 |
— |
109 |
— |
|||||||||||||||||||||||||||||||||||||||||||||||
Upfront and |
— |
(712) |
712 |
(1,819) |
2,531 |
— |
2,531 |
— |
2,531 |
— |
2,531 |
0.01 |
|||||||||||||||||||||||||||||||||||||||||||||||
Inventory reserve |
— |
(5,779) |
5,779 |
— |
5,779 |
— |
5,779 |
— |
5,779 |
— |
5,779 |
0.03 |
|||||||||||||||||||||||||||||||||||||||||||||||
Separation benefits |
— |
(76,764) |
76,764 |
(1,928) |
78,692 |
— |
78,692 |
— |
78,692 |
— |
78,692 |
0.35 |
|||||||||||||||||||||||||||||||||||||||||||||||
Certain litigation- |
— |
— |
— |
(200,006) |
200,006 |
— |
200,006 |
— |
200,006 |
— |
200,006 |
0.90 |
|||||||||||||||||||||||||||||||||||||||||||||||
Asset impairment |
— |
— |
— |
(130,446) |
130,446 |
— |
130,446 |
— |
130,446 |
— |
130,446 |
0.58 |
|||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||||||||||||
Fair value of |
— |
— |
— |
(26,375) |
26,375 |
— |
26,375 |
— |
26,375 |
— |
26,375 |
0.12 |
|||||||||||||||||||||||||||||||||||||||||||||||
Other (13) |
— |
— |
— |
— |
— |
7,487 |
(7,487) |
— |
(7,487) |
— |
(7,487) |
(0.03) |
|||||||||||||||||||||||||||||||||||||||||||||||
Tax adjustments (14) |
— |
— |
— |
— |
— |
— |
— |
149,283 |
(149,283) |
— |
(149,283) |
(0.67) |
|||||||||||||||||||||||||||||||||||||||||||||||
Exclude discontinued |
— |
— |
— |
— |
— |
— |
— |
— |
— |
96,836 |
96,836 |
— |
|||||||||||||||||||||||||||||||||||||||||||||||
After considering items |
$ |
768,640 |
$ |
264,005 |
$ |
504,635 |
66 |
% |
$ |
205,997 |
27 |
% |
$ |
298,638 |
39 |
% |
$ |
128,268 |
$ |
170,370 |
$ |
(3,493) |
(2) |
% |
$ |
173,863 |
$ |
— |
$ |
173,863 |
$ |
0.77 |
Three Months Ended December 31, 2016 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
Cost of |
Gross |
Gross |
Total |
Operating |
Operating (loss) |
Operating |
Other |
(Loss) before |
Income |
Effective |
(Loss) |
Discontinued |
Net (loss) |
Diluted |
||||||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) |
$ |
1,241,513 |
$ |
756,578 |
$ |
484,935 |
39 |
% |
$ |
3,779,494 |
304 |
% |
$ |
(3,294,559) |
(265) |
% |
$ |
111,043 |
$ |
(3,405,602) |
$ |
(72,277) |
2 |
% |
$ |
(3,333,325) |
$ |
(4,531) |
$ |
(3,337,856) |
$ |
(14.96) |
|||||||||||||||||||||||||||
Items impacting |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of |
— |
(240,390) |
240,390 |
— |
240,390 |
— |
240,390 |
— |
240,390 |
— |
240,390 |
1.08 |
|||||||||||||||||||||||||||||||||||||||||||||||
Inventory step-up and |
— |
(13,912) |
13,912 |
— |
13,912 |
— |
13,912 |
— |
13,912 |
— |
13,912 |
0.06 |
|||||||||||||||||||||||||||||||||||||||||||||||
Upfront and |
— |
(655) |
655 |
(1,800) |
2,455 |
— |
2,455 |
— |
2,455 |
— |
2,455 |
0.01 |
|||||||||||||||||||||||||||||||||||||||||||||||
Inventory reserve |
— |
137 |
(137) |
— |
(137) |
— |
(137) |
— |
(137) |
— |
(137) |
— |
|||||||||||||||||||||||||||||||||||||||||||||||
Separation benefits |
— |
(9,284) |
9,284 |
(27,932) |
37,216 |
— |
37,216 |
— |
37,216 |
— |
37,216 |
0.17 |
|||||||||||||||||||||||||||||||||||||||||||||||
Certain litigation- |
— |
— |
— |
4,765 |
(4,765) |
— |
(4,765) |
— |
(4,765) |
— |
(4,765) |
(0.02) |
|||||||||||||||||||||||||||||||||||||||||||||||
Asset impairment |
— |
— |
— |
(3,518,085) |
3,518,085 |
— |
3,518,085 |
— |
3,518,085 |
— |
3,518,085 |
15.79 |
|||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related and integration costs |
— |
— |
— |
(8,356) |
8,356 |
— |
8,356 |
— |
8,356 |
— |
8,356 |
0.04 |
|||||||||||||||||||||||||||||||||||||||||||||||
Fair value of |
— |
— |
— |
956 |
(956) |
— |
(956) |
— |
(956) |
— |
(956) |
— |
|||||||||||||||||||||||||||||||||||||||||||||||
Other (13) |
— |
— |
— |
— |
— |
1,836 |
(1,836) |
— |
(1,836) |
— |
(1,836) |
(0.01) |
|||||||||||||||||||||||||||||||||||||||||||||||
Tax adjustments (14) |
— |
— |
— |
— |
— |
— |
— |
83,604 |
(83,604) |
— |
(83,604) |
(0.38) |
|||||||||||||||||||||||||||||||||||||||||||||||
Exclude discontinued (15) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
4,531 |
4,531 |
— |
|||||||||||||||||||||||||||||||||||||||||||||||
After considering items |
$ |
1,241,513 |
$ |
492,474 |
$ |
749,039 |
60 |
% |
$ |
229,042 |
18 |
% |
$ |
519,997 |
42 |
% |
$ |
112,879 |
$ |
407,118 |
$ |
11,327 |
3 |
% |
$ |
395,791 |
$ |
— |
$ |
395,791 |
$ |
1.77 |
Year Ended December 31, 2017 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
Cost of |
Gross |
Gross |
Total |
Operating |
Operating |
Operating |
Other |
(Loss) |
Income |
Effective |
(Loss) |
Discontinued |
Net (loss) |
Diluted |
||||||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) |
$ |
3,468,858 |
$ |
2,228,530 |
$ |
1,240,328 |
36 |
% |
$ |
2,200,393 |
63 |
% |
$ |
(960,065) |
(28) |
% |
$ |
522,939 |
$ |
(1,483,004) |
$ |
(250,293) |
17 |
% |
$ |
(1,232,711) |
$ |
(802,722) |
$ |
(2,035,433) |
$ |
(5.52) |
|||||||||||||||||||||||||||
Items impacting |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of |
— |
(773,766) |
773,766 |
— |
773,766 |
— |
773,766 |
— |
773,766 |
— |
773,766 |
3.47 |
|||||||||||||||||||||||||||||||||||||||||||||||
Inventory step-up and |
— |
(390) |
390 |
— |
390 |
— |
390 |
— |
390 |
— |
390 |
— |
|||||||||||||||||||||||||||||||||||||||||||||||
Upfront and milestone-related |
— |
(2,751) |
2,751 |
(6,732) |
9,483 |
— |
9,483 |
— |
9,483 |
— |
9,483 |
0.04 |
|||||||||||||||||||||||||||||||||||||||||||||||
Inventory reserve |
— |
(13,678) |
13,678 |
— |
13,678 |
— |
13,678 |
— |
13,678 |
— |
13,678 |
0.06 |
|||||||||||||||||||||||||||||||||||||||||||||||
Separation benefits |
— |
(162,131) |
162,131 |
(36,639) |
198,770 |
— |
198,770 |
— |
198,770 |
— |
198,770 |
0.89 |
|||||||||||||||||||||||||||||||||||||||||||||||
Certain litigation- |
— |
— |
— |
(185,990) |
185,990 |
— |
185,990 |
— |
185,990 |
— |
185,990 |
0.83 |
|||||||||||||||||||||||||||||||||||||||||||||||
Asset impairment |
— |
— |
— |
(1,154,376) |
1,154,376 |
— |
1,154,376 |
— |
1,154,376 |
— |
1,154,376 |
5.17 |
|||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related |
— |
— |
— |
(8,137) |
8,137 |
— |
8,137 |
— |
8,137 |
— |
8,137 |