Endo Reports Fourth-Quarter And Full Year 2018 Financial Results
- Fourth-quarter 2018 revenues increased 2 percent to
$786 million - Fourth-quarter 2018 Sterile Injectables revenues increased 32 percent to
$259 million - Fourth-quarter 2018 XIAFLEX® franchise revenues increased 30 percent to
$80 million - Company expects 2019 revenues to range between
$2.76 billion and $2.96 billion and 2019 adjusted EBITDA between$1.24 billion and $1.34 billion
- Revenues of
$786 million , an increase of 2 percent compared to fourth-quarter 2017 revenues of$769 million ; revenues increased 5 percent compared to third-quarter 2018. - Reported net loss from continuing operations of
$265 million compared to fourth-quarter 2017 reported net loss from continuing operations of$272 million . - Reported diluted loss per share from continuing operations of
$1.18 compared to fourth-quarter 2017 reported diluted loss per share from continuing operations of$1.22 . - Adjusted income from continuing operations of
$175 million compared to fourth-quarter 2017 adjusted income from continuing operations of$174 million . - Adjusted diluted EPS from continuing operations of
$0.75 compared to fourth-quarter 2017 adjusted diluted EPS from continuing operations of$0.77 . - Adjusted EBITDA of
$344 million compared to fourth-quarter 2017 adjusted EBITDA of$327 million .
"We are pleased to report both revenue and adjusted EBITDA growth during the fourth quarter. This resulted from continued dedicated operational execution and strategic focus, and concluded a full year of strong performance. The fourth quarter's performance was driven by double-digit growth in our U.S. Branded - Sterile Injectables segment and in the Specialty Products portfolio of our U.S. Branded -
|
FINANCIAL PERFORMANCE |
|||||||||||||||||||||
|
(in thousands, except per share amounts) |
|||||||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||
|
2018 |
2017 |
Change |
2018 |
2017 |
Change |
||||||||||||||||
|
Total Revenues |
$ |
786,389 |
$ |
768,640 |
2 |
% |
$ |
2,947,078 |
$ |
3,468,858 |
(15) |
% |
|||||||||
|
Reported Loss from Continuing |
$ |
(265,479) |
$ |
(271,581) |
(2) |
% |
$ |
(961,767) |
$ |
(1,232,711) |
(22) |
% |
|||||||||
|
Reported Diluted Weighted Average |
224,353 |
223,322 |
— |
% |
223,960 |
223,198 |
— |
% |
|||||||||||||
|
Reported Diluted Loss per Share |
$ |
(1.18) |
$ |
(1.22) |
(3) |
% |
$ |
(4.29) |
$ |
(5.52) |
(22) |
% |
|||||||||
|
Adjusted Income from Continuing |
$ |
175,383 |
$ |
173,863 |
1 |
% |
$ |
663,206 |
$ |
860,361 |
(23) |
% |
|||||||||
|
Adjusted Diluted Weighted Average |
232,958 |
224,577 |
4 |
% |
229,386 |
223,978 |
2 |
% |
|||||||||||||
|
Adjusted Diluted EPS from |
$ |
0.75 |
$ |
0.77 |
(3) |
% |
$ |
2.89 |
$ |
3.84 |
(25) |
% |
|||||||||
|
__________ |
|||||||||||||||||||||
|
(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 were
GAAP net loss from continuing operations in fourth-quarter 2018 was
Adjusted income from continuing operations in fourth-quarter 2018 was
U.S. BRANDED - SPECIALTY & ESTABLISHED PHARMACEUTICALS
The Company reported positive results from two Phase 3 clinical trials of collagenase clostridium histolyticum (or "CCH") for the treatment of cellulite in the buttocks. Trial subjects receiving CCH showed highly statistically significant levels of improvement in the appearance of cellulite with treatment, as measured by the trial's primary endpoint.
Fourth-quarter 2018 U.S. Branded -
- Revenues of
$230 million compared to$228 million in fourth-quarter 2017; this increase was primarily attributable to continued strong growth of our Specialty Products portfolio, offset by ongoing generic competition in our Established Products portfolio. - Specialty Products revenues increased 15 percent to
$143 million in fourth-quarter 2018 compared to fourth-quarter 2017, primarily driven by the continued strong performance from XIAFLEX®. Sales of XIAFLEX® increased 30 percent to$80 million compared to fourth-quarter 2017; this increase was primarily attributable to underlying volume growth in both the Peyronie's Disease and Dupuytren's Contracture indications and a benefit from the timing of shipments compared to prior year.
U.S. BRANDED - STERILE INJECTABLES
Fourth-quarter 2018 U.S. Branded - Sterile Injectables revenues were
U.S. GENERIC PHARMACEUTICALS
During fourth-quarter 2018, the
INTERNATIONAL PHARMACEUTICALS
Fourth-quarter 2018
2019 FINANCIAL GUIDANCE
For the twelve months ending December 31, 2019, 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
$2.76 billion and $2.96 billion ; - Adjusted diluted EPS from continuing operations to be between
$2.00 and $2.25 ; and - Adjusted EBITDA from continuing operations to be between
$1.24 billion and $1.34 billion .
The Company's 2019 non-GAAP financial guidance is based on the following assumptions:
- Adjusted gross margin of approximately 65.0% to 66.0%;
- Adjusted operating expenses as a percentage of revenues of approximately 24.5% to 25.0%;
- Adjusted interest expense of approximately
$550 million to $560 million ; - Adjusted effective tax rate of approximately 17.5% to 18.5%;
- Adjusted diluted weighted average shares outstanding of approximately 234 million; and
- Revenue, Adjusted EBITDA, and Adjusted Diluted EPS weighted more towards the second half of 2019
BALANCE SHEET, LIQUIDITY AND OTHER UPDATES
As of December 31, 2018, the Company had
Fourth-quarter 2018 cash provided by operating activities was
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 28, 2019 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 |
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|
The following table presents Endo's unaudited Total Revenues for the three and twelve months ended December 31, 2018 and 2017 (dollars in thousands): |
|||||||||||||||||||||
|
Three Months Ended December 31, |
Percent Growth |
Year Ended December 31, |
Percent Growth |
||||||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||||||||
|
U.S. Branded - Specialty & |
|||||||||||||||||||||
|
Specialty Products: |
|||||||||||||||||||||
|
XIAFLEX® |
$ |
79,783 |
$ |
61,265 |
30 |
% |
$ |
264,638 |
$ |
213,378 |
24 |
% |
|||||||||
|
SUPPRELIN® LA |
20,759 |
22,743 |
(9) |
% |
81,707 |
86,211 |
(5) |
% |
|||||||||||||
|
Other Specialty (1) |
42,405 |
39,977 |
6 |
% |
156,607 |
153,384 |
2 |
% |
|||||||||||||
|
Total Specialty Products |
$ |
142,947 |
$ |
123,985 |
15 |
% |
$ |
502,952 |
$ |
452,973 |
11 |
% |
|||||||||
|
Established Products: |
|||||||||||||||||||||
|
PERCOCET® |
$ |
29,362 |
$ |
32,048 |
(8) |
% |
$ |
122,901 |
$ |
125,231 |
(2) |
% |
|||||||||
|
VOLTAREN® Gel |
13,515 |
15,134 |
(11) |
% |
57,700 |
68,780 |
(16) |
% |
|||||||||||||
|
OPANA® ER |
— |
1,770 |
(100) |
% |
— |
83,826 |
(100) |
% |
|||||||||||||
|
Other Established (2) |
44,036 |
55,438 |
(21) |
% |
179,279 |
226,715 |
(21) |
% |
|||||||||||||
|
Total Established Products |
$ |
86,913 |
$ |
104,390 |
(17) |
% |
$ |
359,880 |
$ |
504,552 |
(29) |
% |
|||||||||
|
Total U.S. Branded - Specialty & |
$ |
229,860 |
$ |
228,375 |
1 |
% |
$ |
862,832 |
$ |
957,525 |
(10) |
% |
|||||||||
|
U.S. Branded - Sterile Injectables: |
|||||||||||||||||||||
|
VASOSTRICT® |
$ |
121,380 |
$ |
99,260 |
22 |
% |
$ |
453,767 |
$ |
399,909 |
13 |
% |
|||||||||
|
ADRENALIN® |
41,631 |
26,059 |
60 |
% |
143,489 |
76,523 |
88 |
% |
|||||||||||||
|
Ertapenem for injection |
31,870 |
— |
NM |
57,668 |
— |
NM |
|||||||||||||||
|
Other Sterile Injectables (4) |
63,838 |
70,787 |
(10) |
% |
274,642 |
274,039 |
— |
% |
|||||||||||||
|
Total U.S. Branded - Sterile Injectables (3) |
$ |
258,719 |
$ |
196,106 |
32 |
% |
$ |
929,566 |
$ |
750,471 |
24 |
% |
|||||||||
|
Total U.S. Generic Pharmaceuticals |
$ |
263,770 |
$ |
302,946 |
(13) |
% |
$ |
1,012,215 |
$ |
1,530,530 |
(34) |
% |
|||||||||
|
Total International Pharmaceuticals |
$ |
34,040 |
$ |
41,213 |
(17) |
% |
$ |
142,465 |
$ |
230,332 |
(38) |
% |
|||||||||
|
Total Revenues |
$ |
786,389 |
$ |
768,640 |
2 |
% |
$ |
2,947,078 |
$ |
3,468,858 |
(15) |
% |
|||||||||
|
__________ |
|||||||||||||||||||||
|
(1) |
Products included within Other Specialty include NASCOBAL® Nasal Spray, TESTOPEL® and AVEED®. |
|
(2) |
Products included within Other Established include, but are not limited to, LIDODERM®, FORTESTA® Gel, EDEX® and TESTIM® including the authorized generics of TESTIM® and FORTESTA® Gel. |
|
(3) |
Individual products presented above represent the top two performing products in each product category and/or any product having revenues in excess of $100 million during any of the years ended December 31, 2018, 2017 and 2016 or $25 million during any quarterly period in 2018. |
|
(4) |
Products included within Other Sterile Injectables include, but are not limited to, APLISOL® and ephedrine sulfate injection. |
|
The following table presents unaudited Condensed Consolidated Statement of Operations data for the three and twelve months ended December 31, 2018 and 2017 (in thousands, except per share data): |
|||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
TOTAL REVENUES |
$ |
786,389 |
$ |
768,640 |
$ |
2,947,078 |
$ |
3,468,858 |
|||||||
|
COSTS AND EXPENSES: |
|||||||||||||||
|
Cost of revenues |
433,214 |
505,645 |
1,631,682 |
2,228,530 |
|||||||||||
|
Selling, general and administrative |
167,422 |
161,199 |
646,037 |
629,874 |
|||||||||||
|
Research and development |
25,395 |
48,545 |
185,826 |
172,067 |
|||||||||||
|
Litigation-related and other contingencies, net |
(1,561) |
200,006 |
13,809 |
185,990 |
|||||||||||
|
Asset impairment charges |
303,539 |
130,446 |
916,939 |
1,154,376 |
|||||||||||
|
Acquisition-related and integration items |
8,630 |
26,375 |
21,914 |
58,086 |
|||||||||||
|
OPERATING LOSS FROM CONTINUING |
$ |
(150,250) |
$ |
(303,576) |
$ |
(469,129) |
$ |
(960,065) |
|||||||
|
INTEREST EXPENSE, NET |
135,760 |
126,961 |
521,656 |
488,228 |
|||||||||||
|
LOSS ON EXTINGUISHMENT OF DEBT |
— |
— |
— |
51,734 |
|||||||||||
|
OTHER INCOME, NET |
(18,737) |
(6,180) |
(51,953) |
(17,023) |
|||||||||||
|
LOSS FROM CONTINUING OPERATIONS BEFORE |
$ |
(267,273) |
$ |
(424,357) |
$ |
(938,832) |
$ |
(1,483,004) |
|||||||
|
INCOME TAX (BENEFIT) EXPENSE |
(1,794) |
(152,776) |
22,935 |
(250,293) |
|||||||||||
|
LOSS FROM CONTINUING OPERATIONS |
$ |
(265,479) |
$ |
(271,581) |
$ |
(961,767) |
$ |
(1,232,711) |
|||||||
|
DISCONTINUED OPERATIONS, NET OF TAX |
(26,429) |
(96,836) |
(69,702) |
(802,722) |
|||||||||||
|
NET LOSS |
$ |
(291,908) |
$ |
(368,417) |
$ |
(1,031,469) |
$ |
(2,035,433) |
|||||||
|
NET LOSS PER SHARE—BASIC: |
|||||||||||||||
|
Continuing operations |
$ |
(1.18) |
$ |
(1.22) |
$ |
(4.29) |
$ |
(5.52) |
|||||||
|
Discontinued operations |
(0.12) |
(0.43) |
(0.32) |
(3.60) |
|||||||||||
|
Basic |
$ |
(1.30) |
$ |
(1.65) |
$ |
(4.61) |
$ |
(9.12) |
|||||||
|
NET LOSS PER SHARE—DILUTED: |
|||||||||||||||
|
Continuing operations |
$ |
(1.18) |
$ |
(1.22) |
$ |
(4.29) |
$ |
(5.52) |
|||||||
|
Discontinued operations |
(0.12) |
(0.43) |
(0.32) |
(3.60) |
|||||||||||
|
Diluted |
$ |
(1.30) |
$ |
(1.65) |
$ |
(4.61) |
$ |
(9.12) |
|||||||
|
WEIGHTED AVERAGE SHARES: |
|||||||||||||||
|
Basic |
224,353 |
223,322 |
223,960 |
223,198 |
|||||||||||
|
Diluted |
224,353 |
223,322 |
223,960 |
223,198 |
|||||||||||
|
The following table presents unaudited Condensed Consolidated Balance Sheet data at December 31, 2018 and December 31, 2017 (in thousands): |
|||||||
|
December 31, 2018 |
December 31, 2017 |
||||||
|
ASSETS |
|||||||
|
CURRENT ASSETS: |
|||||||
|
Cash and cash equivalents |
$ |
1,149,113 |
$ |
986,605 |
|||
|
Restricted cash and cash equivalents |
305,368 |
320,453 |
|||||
|
Accounts receivable |
470,570 |
517,436 |
|||||
|
Inventories, net |
322,179 |
391,437 |
|||||
|
Other current assets |
95,920 |
55,146 |
|||||
|
Total current assets |
$ |
2,343,150 |
$ |
2,271,077 |
|||
|
TOTAL NON-CURRENT ASSETS |
7,789,243 |
9,364,503 |
|||||
|
TOTAL ASSETS |
$ |
10,132,393 |
$ |
11,635,580 |
|||
|
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY |
|||||||
|
CURRENT LIABILITIES: |
|||||||
|
Accounts payable and accrued expenses, including legal settlement accruals |
$ |
1,914,285 |
$ |
2,184,618 |
|||
|
Other current liabilities |
35,811 |
36,291 |
|||||
|
Total current liabilities |
$ |
1,950,096 |
$ |
2,220,909 |
|||
|
LONG-TERM DEBT, LESS CURRENT PORTION, NET |
8,224,269 |
8,242,032 |
|||||
|
OTHER LIABILITIES |
456,311 |
687,759 |
|||||
|
SHAREHOLDERS' (DEFICIT) EQUITY |
(498,283) |
484,880 |
|||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY |
$ |
10,132,393 |
$ |
11,635,580 |
|||
|
The following table presents unaudited Condensed Consolidated Statement of Cash Flow data for the years ended December 31, 2018 and 2017 (in thousands): |
|||||||
|
Year Ended December 31, |
|||||||
|
2018 |
2017 |
||||||
|
OPERATING ACTIVITIES: |
|||||||
|
Net loss |
$ |
(1,031,469) |
$ |
(2,035,433) |
|||
|
Adjustments to reconcile Net loss to Net cash provided by operating activities: |
|||||||
|
Depreciation and amortization |
723,707 |
983,765 |
|||||
|
Asset impairment charges |
916,939 |
1,154,376 |
|||||
|
Other, including cash payments to claimants from Qualified Settlement Funds |
(341,907) |
451,277 |
|||||
|
Net cash provided by operating activities |
$ |
267,270 |
$ |
553,985 |
|||
|
INVESTING ACTIVITIES: |
|||||||
|
Purchases of property, plant and equipment, excluding capitalized interest |
$ |
(83,398) |
$ |
(125,654) |
|||
|
Proceeds from sale of business and other assets, net |
70,369 |
223,237 |
|||||
|
Other |
(4,871) |
7,000 |
|||||
|
Net cash (used in) provided by investing activities |
$ |
(17,900) |
$ |
104,583 |
|||
|
FINANCING ACTIVITIES: |
|||||||
|
Payments on borrowings, net |
$ |
(39,372) |
$ |
(22,105) |
|||
|
Other |
(42,200) |
(144,888) |
|||||
|
Net cash used in financing activities |
$ |
(81,572) |
$ |
(166,993) |
|||
|
Effect of foreign exchange rate |
(1,975) |
2,515 |
|||||
|
Movement in cash held for sale |
— |
11,744 |
|||||
|
NET INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND |
$ |
165,823 |
$ |
505,834 |
|||
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH |
1,311,014 |
805,180 |
|||||
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH |
$ |
1,476,837 |
$ |
1,311,014 |
|||
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
The tables below provide reconciliations of certain of our 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.
|
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 and twelve months ended December 31, 2018 and 2017 (in thousands): |
|||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
Net loss (GAAP) |
$ |
(291,908) |
$ |
(368,417) |
$ |
(1,031,469) |
$ |
(2,035,433) |
|||||||
|
Income tax (benefit) expense |
(1,794) |
(152,776) |
22,935 |
(250,293) |
|||||||||||
|
Interest expense, net |
135,760 |
126,961 |
521,656 |
488,228 |
|||||||||||
|
Depreciation and amortization (15) |
167,205 |
177,321 |
688,530 |
857,706 |
|||||||||||
|
EBITDA (non-GAAP) |
$ |
9,263 |
$ |
(216,911) |
$ |
201,652 |
$ |
(939,792) |
|||||||
|
Inventory step-up and other cost savings (2) |
$ |
— |
$ |
109 |
$ |
261 |
$ |
390 |
|||||||
|
Upfront and milestone-related payments (3) |
2,081 |
2,531 |
45,108 |
9,483 |
|||||||||||
|
Inventory reserve increase from restructuring (4) |
150 |
5,779 |
2,947 |
13,678 |
|||||||||||
|
Separation benefits and other restructuring (5) |
4,004 |
78,692 |
83,348 |
198,770 |
|||||||||||
|
Certain litigation-related and other contingencies, net (6) |
(1,561) |
200,006 |
13,809 |
185,990 |
|||||||||||
|
Asset impairment charges (7) |
303,539 |
130,446 |
916,939 |
1,154,376 |
|||||||||||
|
Acquisition-related and integration costs (8) |
451 |
— |
2,004 |
8,137 |
|||||||||||
|
Fair value of contingent consideration (9) |
8,179 |
26,375 |
19,910 |
49,949 |
|||||||||||
|
Loss on extinguishment of debt (10) |
— |
— |
— |
51,734 |
|||||||||||
|
Share-based compensation |
10,349 |
9,897 |
54,071 |
50,149 |
|||||||||||
|
Other income, net (16) |
(18,737) |
(6,180) |
(51,953) |
(17,023) |
|||||||||||
|
Other adjustments |
38 |
(151) |
(737) |
(226) |
|||||||||||
|
Discontinued operations, net of tax (13) |
26,429 |
96,836 |
69,702 |
802,722 |
|||||||||||
|
Adjusted EBITDA (non-GAAP) |
$ |
344,185 |
$ |
327,429 |
$ |
1,357,061 |
$ |
1,568,337 |
|||||||
|
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, 2018 and 2017 (in thousands): |
|||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
Loss from continuing operations (GAAP) |
$ |
(265,479) |
$ |
(271,581) |
$ |
(961,767) |
$ |
(1,232,711) |
|||||||
|
Non-GAAP adjustments: |
|||||||||||||||
|
Amortization of intangible assets (1) |
150,677 |
158,276 |
622,339 |
773,766 |
|||||||||||
|
Inventory step-up and other cost savings (2) |
— |
109 |
261 |
390 |
|||||||||||
|
Upfront and milestone-related payments (3) |
2,081 |
2,531 |
45,108 |
9,483 |
|||||||||||
|
Inventory reserve increase from restructuring (4) |
150 |
5,779 |
2,947 |
13,678 |
|||||||||||
|
Separation benefits and other restructuring (5) |
4,004 |
78,692 |
83,348 |
198,770 |
|||||||||||
|
Certain litigation-related and other contingencies, net (6) |
(1,561) |
200,006 |
13,809 |
185,990 |
|||||||||||
|
Asset impairment charges (7) |
303,539 |
130,446 |
916,939 |
1,154,376 |
|||||||||||
|
Acquisition-related and integration costs (8) |
451 |
— |
2,004 |
8,137 |
|||||||||||
|
Fair value of contingent consideration (9) |
8,179 |
26,375 |
19,910 |
49,949 |
|||||||||||
|
Loss on extinguishment of debt (10) |
— |
— |
— |
51,734 |
|||||||||||
|
Other (11) |
(19,034) |
(7,487) |
(48,942) |
(8,620) |
|||||||||||
|
Tax adjustments (12) |
(7,624) |
(149,283) |
(32,750) |
(344,581) |
|||||||||||
|
Adjusted income from continuing operations (non-GAAP) |
$ |
175,383 |
$ |
173,863 |
$ |
663,206 |
$ |
860,361 |
|||||||
|
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, 2018 and 2017 (in thousands, except per share data): |
|||||||||||||||||||||||||||||||
|
Three Months Ended December 31, 2018 |
|||||||||||||||||||||||||||||||
|
Total revenues |
Cost of revenues |
Gross |
Gross margin % |
Total operating expenses |
Operating |
Operating |
Operating margin % |
Other |
(Loss) |
Income |
Effective tax rate |
(Loss) |
Discontinued operations, net of tax |
Net (loss) income |
Diluted |
||||||||||||||||
|
Reported (GAAP) |
$ 786,389 |
$ 433,214 |
$ 353,175 |
44.9 % |
$ 503,425 |
64.0 % |
$ (150,250) |
(19.1)% |
$ 117,023 |
$ (267,273) |
$ (1,794) |
0.7 % |
$ (265,479) |
$ (26,429) |
$ (291,908) |
$ (1.18) |
|||||||||||||||
|
Items impacting comparability: |
|||||||||||||||||||||||||||||||
|
Amortization of intangible assets (1) |
— |
(150,677) |
150,677 |
— |
150,677 |
— |
150,677 |
— |
150,677 |
— |
150,677 |
0.66 |
|||||||||||||||||||
|
Upfront and milestone-related payments (3) |
— |
(741) |
741 |
(1,340) |
2,081 |
— |
2,081 |
— |
2,081 |
— |
2,081 |
0.01 |
|||||||||||||||||||
|
Inventory reserve increase from restructuring (4) |
— |
(150) |
150 |
— |
150 |
— |
150 |
— |
150 |
— |
150 |
— |
|||||||||||||||||||
|
Separation benefits and other restructuring (5) |
— |
(30) |
30 |
(3,974) |
4,004 |
— |
4,004 |
— |
4,004 |
— |
4,004 |
0.02 |
|||||||||||||||||||
|
Certain litigation- |
— |
— |
— |
1,561 |
(1,561) |
— |
(1,561) |
— |
(1,561) |
— |
(1,561) |
(0.01) |
|||||||||||||||||||
|
Asset impairment charges (7) |
— |
— |
— |
(303,539) |
303,539 |
— |
303,539 |
— |
303,539 |
— |
303,539 |
1.34 |
|||||||||||||||||||
|
Acquisition-related and integration costs (8) |
— |
— |
— |
(451) |
451 |
— |
451 |
— |
451 |
— |
451 |
— |
|||||||||||||||||||
|
Fair value of contingent consideration (9) |
— |
— |
— |
(8,179) |
8,179 |
— |
8,179 |
— |
8,179 |
— |
8,179 |
0.04 |
|||||||||||||||||||
|
Other (11) |
— |
— |
— |
— |
— |
19,034 |
(19,034) |
— |
(19,034) |
— |
(19,034) |
(0.09) |
|||||||||||||||||||
|
Tax adjustments (12) |
— |
— |
— |
— |
— |
— |
— |
7,624 |
(7,624) |
— |
(7,624) |
(0.04) |
|||||||||||||||||||
|
Exclude discontinued operations, net of tax (13) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
26,429 |
26,429 |
— |
|||||||||||||||||||
|
After considering items (non-GAAP) |
$ 786,389 |
$ 281,616 |
$ 504,773 |
64.2 % |
$ 187,503 |
23.8 % |
$ 317,270 |
40.3 % |
$ 136,057 |
$ 181,213 |
$ 5,830 |
3.2 % |
$ 175,383 |
$ — |
$ 175,383 |
$ 0.75 |
|||||||||||||||
|
Three Months Ended December 31, 2017 |
|||||||||||||||||||||||||||||||
|
Total revenues |
Cost of revenues |
Gross |
Gross margin % |
Total operating expenses |
Operating expense to revenue % |
Operating |
Operating margin % |
Other |
(Loss) |
Income |
Effective tax rate |
(Loss) |
Discontinued operations, net of tax |
Net (loss) income |
Diluted |
||||||||||||||||
|
Reported (GAAP) |
$ 768,640 |
$ 505,645 |
$ 262,995 |
34.2 % |
$ 566,571 |
73.7 % |
$ (303,576) |
(39.5)% |
$ 120,781 |
$ (424,357) |
$ (152,776) |
36.0 % |
$ (271,581) |
$ (96,836) |
$ (368,417) |
$ (1.22) |
|||||||||||||||
|
Items impacting comparability: |
|||||||||||||||||||||||||||||||
|
Amortization of intangible assets (1) |
— |
(158,276) |
158,276 |
— |
158,276 |
— |
158,276 |
— |
158,276 |
— |
158,276 |
0.70 |
|||||||||||||||||||
|
Inventory step-up and other cost savings (2) |
— |
(109) |
109 |
— |
109 |
— |
109 |
— |
109 |
— |
109 |
— |
|||||||||||||||||||
|
Upfront and milestone-related payments (3) |
— |
(712) |
712 |
(1,819) |
2,531 |
— |
2,531 |
— |
2,531 |
— |
2,531 |
0.01 |
|||||||||||||||||||
|
Inventory reserve increase from restructuring (4) |
— |
(5,779) |
5,779 |
— |
5,779 |
— |
5,779 |
— |
5,779 |
— |
5,779 |
0.03 |
|||||||||||||||||||
|
Separation benefits and other restructuring (5) |
— |
(76,764) |
76,764 |
(1,928) |
78,692 |
— |
78,692 |
— |
78,692 |
— |
78,692 |
0.35 |
|||||||||||||||||||
|
Certain litigation-related and other contingencies, net (6) |
— |
— |
— |
(200,006) |
200,006 |
— |
200,006 |
— |
200,006 |
— |
200,006 |
0.90 |
|||||||||||||||||||
|
Asset impairment charges (7) |
— |
— |
— |
(130,446) |
130,446 |
— |
130,446 |
— |
130,446 |
— |
130,446 |
0.58 |
|||||||||||||||||||
|
Fair value of contingent consideration (9) |
— |
— |
— |
(26,375) |
26,375 |
— |
26,375 |
— |
26,375 |
— |
26,375 |
0.12 |
|||||||||||||||||||
|
Other (11) |
— |
— |
— |
— |
— |
7,487 |
(7,487) |
— |
(7,487) |
— |
(7,487) |
(0.03) |
|||||||||||||||||||
|
Tax adjustments (12) |
— |
— |
— |
— |
— |
— |
— |
149,283 |
(149,283) |
— |
(149,283) |
(0.67) |
|||||||||||||||||||
|
Exclude discontinued operations, net of tax (13) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
96,836 |
96,836 |
— |
|||||||||||||||||||
|
After considering items (non-GAAP) |
$ 768,640 |
$ 264,005 |
$ 504,635 |
65.7 % |
$ 205,997 |
26.8 % |
$ 298,638 |
38.9 % |
$ 128,268 |
$ 170,370 |
$ (3,493) |
(2.1)% |
$ 173,863 |
$ — |
$ 173,863 |
$ 0.77 |
|||||||||||||||
|
Year Ended December 31, 2018 |
|||||||||||||||||||||||||||||||
|
Total revenues |
Cost of revenues |
Gross |
Gross margin % |
Total operating expenses |
Operating expense to revenue % |
Operating |
Operating margin % |
Other |
(Loss) |
Income |
Effective tax rate |
(Loss) |
Discontinued operations, net of tax |
Net (loss) income |
Diluted |
||||||||||||||||
|
Reported (GAAP) |
$ 2,947,078 |
$ 1,631,682 |
$ 1,315,396 |
44.6 % |
$ 1,784,525 |
60.6 % |
$ (469,129) |
(15.9)% |
$ 469,703 |
$ (938,832) |
$ 22,935 |
(2.4)% |
$ (961,767) |
$ (69,702) |
$ (1,031,469) |
$ (4.29) |
|||||||||||||||
|
Items impacting comparability: |
|||||||||||||||||||||||||||||||
|
Amortization of intangible assets (1) |
— |
(622,339) |
622,339 |
— |
622,339 |
— |
622,339 |
— |
622,339 |
— |
622,339 |
2.77 |
|||||||||||||||||||
|
Inventory step-up and other cost savings (2) |
— |
(261) |
261 |
— |
261 |
— |
261 |
— |
261 |
— |
261 |
— |
|||||||||||||||||||
|
Upfront and milestone-related payments (3) |
— |
(2,836) |
2,836 |
(42,272) |
45,108 |
— |
45,108 |
— |
45,108 |
— |
45,108 |
0.19 |
|||||||||||||||||||
|
Inventory reserve increase from restructuring (4) |
— |
(2,947) |
2,947 |
— |
2,947 |
— |
2,947 |
— |
2,947 |
— |
2,947 |
0.01 |
|||||||||||||||||||
|
Separation benefits and other restructuring (5) |
— |
(57,487) |
57,487 |
(25,861) |
83,348 |
— |
83,348 |
— |
83,348 |
— |
83,348 |
0.36 |
|||||||||||||||||||
|
Certain litigation-related and other contingencies, net (6) |
— |
— |
— |
(13,809) |
13,809 |
— |
13,809 |
— |
13,809 |
— |
13,809 |
0.06 |
|||||||||||||||||||
|
Asset impairment charges (7) |
— |
— |
— |
(916,939) |
916,939 |
— |
916,939 |
— |
916,939 |
— |
916,939 |
4.08 |
|||||||||||||||||||
|
Acquisition-related and integration costs (8) |
— |
— |
— |
(2,004) |
2,004 |
— |
2,004 |
— |
2,004 |
— |
2,004 |
0.01 |
|||||||||||||||||||
|
Fair value of contingent consideration (9) |
— |
— |
— |
(19,910) |
19,910 |
— |
19,910 |
— |
19,910 |
— |
19,910 |
0.09 |
|||||||||||||||||||
|
Other (11) |
— |
— |
— |
630 |
(630) |
48,312 |
(48,942) |
— |
(48,942) |
— |
(48,942) |
(0.23) |
|||||||||||||||||||
|
Tax adjustments (12) |
— |
— |
— |
— |
— |
— |
— |
32,750 |
(32,750) |
— |
(32,750) |
(0.16) |
|||||||||||||||||||
|
Exclude discontinued operations, net of tax (13) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
69,702 |
69,702 |
— |
|||||||||||||||||||
|
After considering items (non-GAAP) |
$ 2,947,078 |
$ 945,812 |
$ 2,001,266 |
67.9 % |
$ 764,360 |
25.9 % |
$ 1,236,906 |
42.0 % |
$ 518,015 |
$ 718,891 |
$ 55,685 |
7.7 % |
$ 663,206 |
$ — |
$ 663,206 |
$ 2.89 |
|||||||||||||||
|
Year Ended December 31, 2017 |
|||||||||||||||||||||||||||||||
|
Total revenues |
Cost of revenues |
Gross |
Gross margin % |
Total operating expenses |
Operating expense to revenue % |
Operating |
Operating margin % |
Other |
(Loss) |
Income |
Effective tax rate |
(Loss) |
Discontinued operations, net of tax |
Net (loss) income |
Diluted |
||||||||||||||||
|
Reported (GAAP) |
$ 3,468,858 |
$ 2,228,530 |
$ 1,240,328 |
35.8 % |
$ 2,200,393 |
63.4 % |
$ (960,065) |
(27.7)% |
$ 522,939 |
$ (1,483,004) |
$ (250,293) |
16.9 % |
$ (1,232,711) |
$ (802,722) |
$ (2,035,433) |
$ (5.52) |
|||||||||||||||
|
Items impacting comparability: |
|||||||||||||||||||||||||||||||
|
Amortization of intangible assets (1) |
— |
(773,766) |
773,766 |
— |
773,766 |
— |
773,766 |
— |
773,766 |
— |
773,766 |
3.47 |
|||||||||||||||||||
|
Inventory step-up and other cost savings (2) |
— |
(390) |
390 |
— |
390 |
— |
390 |
— |
390 |
— |
390 |
— |
|||||||||||||||||||
|
Upfront and milestone-related payments (3) |
— |
(2,751) |
2,751 |
(6,732) |
9,483 |
— |
9,483 |
— |
9,483 |
— |
9,483 |
0.04 |
|||||||||||||||||||
|
Inventory reserve increase from restructuring (4) |
— |
(13,678) |
13,678 |
— |
13,678 |
— |
13,678 |
— |
13,678 |
— |
13,678 |
0.06 |
|||||||||||||||||||
|
Separation benefits and other restructuring (5) |
— |
(162,131) |
162,131 |
(36,639) |
198,770 |
— |
198,770 |
— |
198,770 |
— |
198,770 |
0.89 |
|||||||||||||||||||
|
Certain litigation-related and other contingencies, net (6) |
— |
— |
— |
(185,990) |
185,990 |
— |
185,990 |
— |
185,990 |
— |
185,990 |
0.83 |
|||||||||||||||||||
|
Asset impairment charges (7) |
— |
— |
— |
(1,154,376) |
1,154,376 |
— |
1,154,376 |
— |
1,154,376 |
— |
1,154,376 |
5.17 |
|||||||||||||||||||
|
Acquisition-related and integration costs (8) |
— |
— |
— |
(8,137) |
8,137 |
— |
|||||||||||||||||||||||||