ENDO REPORTS SECOND-QUARTER 2022 FINANCIAL RESULTS
SECOND-QUARTER FINANCIAL PERFORMANCE
(in thousands, except per share amounts)
Three Months Ended |
Six Months Ended |
||||||||||
2022 |
2021 |
Change |
2022 |
2021 |
Change |
||||||
Total Revenues, Net |
$ 569,114 |
$ 713,830 |
(20) % |
$ 1,221,373 |
$ 1,431,749 |
(15) % |
|||||
Reported (Loss) Income from |
$ (1,880,883) |
$ (10,184) |
NM |
$ (1,946,183) |
$ 36,875 |
NM |
|||||
Reported Diluted Weighted Average |
235,117 |
233,331 |
1 % |
234,498 |
237,043 |
(1) % |
|||||
Reported Diluted Net (Loss) Income |
$ (8.00) |
$ (0.04) |
NM |
$ (8.30) |
$ 0.16 |
NM |
|||||
Reported Net (Loss) Income |
$ (1,885,427) |
$ (15,500) |
NM |
$ (1,957,401) |
$ 26,024 |
NM |
|||||
Adjusted Income from Continuing |
$ 6,532 |
$ 147,121 |
(96) % |
$ 162,471 |
$ 322,038 |
(50) % |
|||||
Adjusted Diluted Weighted Average |
236,217 |
235,416 |
— % |
236,466 |
237,043 |
— % |
|||||
Adjusted Diluted Net Income per |
$ 0.03 |
$ 0.62 |
(95) % |
$ 0.69 |
$ 1.36 |
(49) % |
|||||
Adjusted EBITDA (2)(3) |
$ 160,206 |
$ 337,700 |
(53) % |
$ 471,132 |
$ 702,415 |
(33) % |
__________
(1) |
Reported Diluted Net (Loss) Income per Share from Continuing Operations is computed based on weighted average shares outstanding and, if there is |
(2) |
The information presented in the table above includes non-GAAP financial measures such as Adjusted Income from Continuing Operations, Adjusted |
(3) |
Effective |
CONSOLIDATED RESULTS
Total revenues were
Reported loss from continuing operations in second-quarter 2022 was
Adjusted income from continuing operations in second-quarter 2022 was
BRANDED PHARMACEUTICALS SEGMENT
Second-quarter 2022
Specialty Products revenues decreased 2% to
STERILE INJECTABLES SEGMENT
Second-quarter 2022 Sterile Injectables segment revenues were $123 million, a decrease of 58% compared to $295 million during second-quarter 2021. This was primarily attributable to decreased VASOSTRICT® revenues due to lower price and market share resulting from generic competition, channel inventory destocking and lower overall market volumes as COVID-19 related hospitalizations decline.
GENERIC PHARMACEUTICALS SEGMENT
Second-quarter 2022
INTERNATIONAL PHARMACEUTICALS SEGMENT
Second-quarter 2022
BALANCE SHEET, LIQUIDITY AND OTHER UPDATES
As of
Second-quarter 2022 net cash used in operating activities was
The Company remains in constructive negotiations with an ad hoc group of first lien creditors, among other parties. In light of the progress to date, the Company expects that these negotiations will likely result in a pre-arranged filing under Chapter 11 of the
Chantix® is a registered trademark of Pfizer Inc.
FINANCIAL SCHEDULES
The following table presents Endo's unaudited Total revenues, net for the three and six months ended
Three Months Ended |
Percent |
Six Months Ended |
Percent |
||||||||
2022 |
2021 |
2022 |
2021 |
||||||||
|
|||||||||||
Specialty Products: |
|||||||||||
XIAFLEX® |
$ 120,878 |
$ 111,487 |
8 % |
$ 220,362 |
$ 206,757 |
7 % |
|||||
SUPPRELIN® LA |
24,739 |
27,568 |
(10) % |
53,569 |
55,596 |
(4) % |
|||||
Other Specialty (1) |
18,246 |
28,036 |
(35) % |
38,990 |
48,068 |
(19) % |
|||||
Total Specialty Products |
$ 163,863 |
$ 167,091 |
(2) % |
$ 312,921 |
$ 310,421 |
1 % |
|||||
Established Products: |
|||||||||||
PERCOCET® |
$ 26,256 |
$ 26,156 |
— % |
$ 52,431 |
$ 51,781 |
1 % |
|||||
TESTOPEL® |
10,021 |
9,439 |
6 % |
18,901 |
20,628 |
(8) % |
|||||
Other Established (2) |
18,812 |
25,354 |
(26) % |
39,560 |
51,845 |
(24) % |
|||||
Total Established Products |
$ 55,089 |
$ 60,949 |
(10) % |
$ 110,892 |
$ 124,254 |
(11) % |
|||||
|
$ 218,952 |
$ 228,040 |
(4) % |
$ 423,813 |
$ 434,675 |
(2) % |
|||||
Sterile Injectables: |
|||||||||||
VASOSTRICT® |
$ 35,630 |
$ 197,121 |
(82) % |
$ 191,520 |
$ 421,067 |
(55) % |
|||||
ADRENALIN® |
26,774 |
29,977 |
(11) % |
60,597 |
59,414 |
2 % |
|||||
Other Sterile Injectables (4) |
60,767 |
67,502 |
(10) % |
111,082 |
122,864 |
(10) % |
|||||
Total Sterile Injectables (3) |
$ 123,171 |
$ 294,600 |
(58) % |
$ 363,199 |
$ 603,345 |
(40) % |
|||||
|
$ 203,377 |
$ 167,272 |
22 % |
$ 389,321 |
$ 348,145 |
12 % |
|||||
|
$ 23,614 |
$ 23,918 |
(1) % |
$ 45,040 |
$ 45,584 |
(1) % |
|||||
Total revenues, net |
$ 569,114 |
$ 713,830 |
(20) % |
$ 1,221,373 |
$ 1,431,749 |
(15) % |
__________
(1) |
Products included within Other Specialty include NASCOBAL® Nasal Spray, AVEED® 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 either the three or six months ended |
(4) |
Products included within Other Sterile Injectables include ertapenem for injection, APLISOL® and others. |
(5) |
|
(6) |
|
The following table presents unaudited Condensed Consolidated Statement of Operations data for the three and six months ended
Three Months Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
TOTAL REVENUES, NET |
$ 569,114 |
$ 713,830 |
$ 1,221,373 |
$ 1,431,749 |
|||
COSTS AND EXPENSES: |
|||||||
Cost of revenues |
263,786 |
318,480 |
537,001 |
623,773 |
|||
Selling, general and administrative |
180,830 |
177,619 |
407,991 |
364,793 |
|||
Research and development |
29,788 |
29,669 |
65,918 |
59,408 |
|||
Acquired in-process research and development |
65,000 |
5,000 |
67,900 |
5,000 |
|||
Litigation-related and other contingencies, net |
208 |
35,195 |
25,362 |
35,832 |
|||
Asset impairment charges |
1,781,063 |
4,929 |
1,801,016 |
8,238 |
|||
Acquisition-related and integration items, net |
1,825 |
97 |
448 |
(4,925) |
|||
Interest expense, net |
139,784 |
141,553 |
274,733 |
275,894 |
|||
Loss on extinguishment of debt |
— |
— |
— |
13,753 |
|||
Other (income) expense, net |
(19,438) |
372 |
(18,149) |
1,284 |
|||
(LOSS) INCOME FROM CONTINUING OPERATIONS |
$ (1,873,732) |
$ 916 |
$ (1,940,847) |
$ 48,699 |
|||
INCOME TAX EXPENSE |
7,151 |
11,100 |
5,336 |
11,824 |
|||
(LOSS) INCOME FROM CONTINUING OPERATIONS |
$ (1,880,883) |
$ (10,184) |
$ (1,946,183) |
$ 36,875 |
|||
DISCONTINUED OPERATIONS, NET OF TAX |
(4,544) |
(5,316) |
(11,218) |
(10,851) |
|||
NET (LOSS) INCOME |
$ (1,885,427) |
$ (15,500) |
$ (1,957,401) |
$ 26,024 |
|||
NET (LOSS) INCOME PER SHARE—BASIC: |
|||||||
Continuing operations |
$ (8.00) |
$ (0.04) |
$ (8.30) |
$ 0.16 |
|||
Discontinued operations |
(0.02) |
(0.03) |
(0.05) |
(0.05) |
|||
Basic |
$ (8.02) |
$ (0.07) |
$ (8.35) |
$ 0.11 |
|||
NET (LOSS) INCOME PER SHARE—DILUTED: |
|||||||
Continuing operations |
$ (8.00) |
$ (0.04) |
$ (8.30) |
$ 0.16 |
|||
Discontinued operations |
(0.02) |
(0.03) |
(0.05) |
(0.05) |
|||
Diluted |
$ (8.02) |
$ (0.07) |
$ (8.35) |
$ 0.11 |
|||
WEIGHTED AVERAGE SHARES: |
|||||||
Basic |
235,117 |
233,331 |
234,498 |
231,941 |
|||
Diluted |
235,117 |
233,331 |
234,498 |
237,043 |
The following table presents unaudited Condensed Consolidated Balance Sheet data at
|
|
||
ASSETS |
|||
CURRENT ASSETS: |
|||
Cash and cash equivalents |
$ 1,191,572 |
$ 1,507,196 |
|
Restricted cash and cash equivalents |
113,493 |
124,114 |
|
Accounts receivable |
491,492 |
592,019 |
|
Inventories, net |
287,756 |
283,552 |
|
Assets held for sale |
11,080 |
— |
|
Other current assets |
104,511 |
207,705 |
|
Total current assets |
$ 2,199,904 |
$ 2,714,586 |
|
TOTAL NON-CURRENT ASSETS |
4,162,358 |
6,052,829 |
|
TOTAL ASSETS |
$ 6,362,262 |
$ 8,767,415 |
|
LIABILITIES AND SHAREHOLDERS' DEFICIT |
|||
CURRENT LIABILITIES: |
|||
Accounts payable and accrued expenses, including legal settlement accruals |
$ 1,140,654 |
$ 1,417,892 |
|
Other current liabilities |
41,018 |
212,070 |
|
Total current liabilities |
$ 1,181,672 |
$ 1,629,962 |
|
LONG-TERM DEBT, LESS CURRENT PORTION, NET |
8,039,178 |
8,048,980 |
|
OTHER LIABILITIES |
339,484 |
332,459 |
|
SHAREHOLDERS' DEFICIT |
(3,198,072) |
(1,243,986) |
|
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT |
$ 6,362,262 |
$ 8,767,415 |
The following table presents unaudited Condensed Consolidated Statement of Cash Flow data for the six months ended
Six Months Ended |
|||
2022 |
2021 |
||
OPERATING ACTIVITIES: |
|||
Net (loss) income |
$ (1,957,401) |
$ 26,024 |
|
Adjustments to reconcile Net (loss) income to Net cash provided by operating activities: |
|||
Depreciation and amortization |
206,224 |
237,703 |
|
Asset impairment charges |
1,801,016 |
8,238 |
|
Other, including cash payments to claimants from Qualified Settlement Funds |
18,064 |
126,851 |
|
Net cash provided by operating activities |
$ 67,903 |
$ 398,816 |
|
INVESTING ACTIVITIES: |
|||
Capital expenditures, excluding capitalized interest |
$ (47,559) |
$ (41,345) |
|
Acquisitions, including in-process research and development, net of cash and restricted |
(89,520) |
— |
|
Proceeds from sale of business and other assets, net |
21,133 |
1,343 |
|
Other |
4,200 |
(5,048) |
|
Net cash used in investing activities |
$ (111,746) |
$ (45,050) |
|
FINANCING ACTIVITIES: |
|||
Payments on borrowings, net |
$ (193,312) |
$ (43,166) |
|
Other |
(3,638) |
(22,581) |
|
Net cash used in financing activities |
$ (196,950) |
$ (65,747) |
|
Effect of foreign exchange rate |
(452) |
711 |
|
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH |
$ (241,245) |
$ 288,730 |
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH |
1,631,310 |
1,385,000 |
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH |
$ 1,390,065 |
$ 1,673,730 |
SUPPLEMENTAL FINANCIAL INFORMATION
To supplement the financial measures prepared in accordance with
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
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP)
The following table provides a reconciliation of Net (loss) income (GAAP) to Adjusted EBITDA (non-GAAP) for the three and six months ended
Three Months Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Net (loss) income (GAAP) |
$ (1,885,427) |
$ (15,500) |
$ (1,957,401) |
$ 26,024 |
|||
Income tax expense |
7,151 |
11,100 |
5,336 |
11,824 |
|||
Interest expense, net |
139,784 |
141,553 |
274,733 |
275,894 |
|||
Depreciation and amortization (1) |
99,762 |
110,145 |
202,400 |
221,724 |
|||
EBITDA (non-GAAP) |
$ (1,638,730) |
$ 247,298 |
$ (1,474,932) |
$ 535,466 |
|||
Amounts related to continuity and separation benefits, |
37,347 |
15,083 |
94,996 |
38,803 |
|||
Certain litigation-related and other contingencies, net (3) |
208 |
35,195 |
25,362 |
35,832 |
|||
Certain legal costs (4) |
(9,462) |
24,843 |
23,270 |
44,119 |
|||
Asset impairment charges (5) |
1,781,063 |
4,929 |
1,801,016 |
8,238 |
|||
Acquisition-related and integration costs (6) |
— |
(20) |
— |
411 |
|||
Fair value of contingent consideration (7) |
1,825 |
117 |
448 |
(5,336) |
|||
Loss on extinguishment of debt (8) |
— |
— |
— |
13,753 |
|||
Share-based compensation (1) |
2,721 |
4,444 |
7,650 |
14,437 |
|||
Other (income) expense, net (9) |
(19,438) |
372 |
(18,149) |
1,284 |
|||
Other (10) |
128 |
123 |
253 |
4,557 |
|||
Discontinued operations, net of tax (11) |
4,544 |
5,316 |
11,218 |
10,851 |
|||
Adjusted EBITDA (non-GAAP) (14) |
$ 160,206 |
$ 337,700 |
$ 471,132 |
$ 702,415 |
Reconciliation of Adjusted Income from Continuing Operations (non-GAAP)
The following table provides a reconciliation of the Company's (Loss) income from continuing operations (GAAP) to Adjusted income from continuing operations (non-GAAP) for the three and six months ended
Three Months Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
(Loss) income from continuing operations (GAAP) |
$ (1,880,883) |
$ (10,184) |
$ (1,946,183) |
$ 36,875 |
|||
Non-GAAP adjustments: |
|||||||
Amortization of intangible assets (12) |
87,568 |
94,070 |
177,802 |
189,200 |
|||
Amounts related to continuity and separation benefits, |
37,347 |
15,083 |
94,996 |
38,803 |
|||
Certain litigation-related and other contingencies, net |
208 |
35,195 |
25,362 |
35,832 |
|||
Certain legal costs (4) |
(9,462) |
24,843 |
23,270 |
44,119 |
|||
Asset impairment charges (5) |
1,781,063 |
4,929 |
1,801,016 |
8,238 |
|||
Acquisition-related and integration costs (6) |
— |
(20) |
— |
411 |
|||
Fair value of contingent consideration (7) |
1,825 |
117 |
448 |
(5,336) |
|||
Loss on extinguishment of debt (8) |
— |
— |
— |
13,753 |
|||
Other (10) |
(19,170) |
1,480 |
(17,847) |
7,062 |
|||
Tax adjustments (13) |
8,036 |
(18,392) |
3,607 |
(46,919) |
|||
Adjusted income from continuing operations (non-GAAP) |
$ 6,532 |
$ 147,121 |
$ 162,471 |
$ 322,038 |
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 six months ended
Three Months Ended |
|||||||||||||||||||||||||||||||
Total |
Cost of |
Gross |
Gross |
Total |
Operating |
Operating |
Operating |
Other non- |
(Loss) |
Income tax |
Effective |
(Loss) |
Discontinued |
Net (loss) |
Diluted net |
||||||||||||||||
Reported (GAAP) |
$ 569,114 |
$ 263,786 |
$ 305,328 |
53.6 % |
$ 2,058,714 |
361.7 % |
$ (1,753,386) |
(308.1) % |
$ 120,346 |
$ (1,873,732) |
$ 7,151 |
(0.4) % |
$ (1,880,883) |
$ (4,544) |
$ (1,885,427) |
$ (8.00) |
|||||||||||||||
Items impacting comparability: |
|||||||||||||||||||||||||||||||
Amortization of intangible |
— |
(87,568) |
87,568 |
— |
87,568 |
— |
87,568 |
— |
87,568 |
— |
87,568 |
||||||||||||||||||||
Amounts related to continuity |
— |
(5,107) |
5,107 |
(32,240) |
37,347 |
— |
37,347 |
— |
37,347 |
— |
37,347 |
||||||||||||||||||||
Certain litigation-related and |
— |
— |
— |
(208) |
208 |
— |
208 |
— |
208 |
— |
208 |
||||||||||||||||||||
Certain legal costs (4) |
— |
— |
— |
9,462 |
(9,462) |
— |
(9,462) |
— |
(9,462) |
— |
(9,462) |
||||||||||||||||||||
Asset impairment charges (5) |
— |
— |
— |
(1,781,063) |
1,781,063 |
— |
1,781,063 |
— |
1,781,063 |
— |
1,781,063 |
||||||||||||||||||||
Fair value of contingent |
— |
— |
— |
(1,825) |
1,825 |
— |
1,825 |
— |
1,825 |
— |
1,825 |
||||||||||||||||||||
Other (10) |
— |
(125) |
125 |
— |
125 |
19,295 |
(19,170) |
— |
(19,170) |
— |
(19,170) |
||||||||||||||||||||
Tax adjustments (13) |
— |
— |
— |
— |
— |
— |
— |
(8,036) |
8,036 |
— |
8,036 |
||||||||||||||||||||
Discontinued operations, net |
— |
— |
— |
— |
— |
— |
— |
— |
— |
4,544 |
4,544 |
||||||||||||||||||||
After considering items (non- |
$ 569,114 |
$ 170,986 |
$ 398,128 |
70.0 % |
$ 252,840 |
44.4 % |
$ 145,288 |
25.5 % |
$ 139,641 |
$ 5,647 |
$ (885) |
(15.7) % |
$ 6,532 |
$ — |
$ 6,532 |
$ 0.03 |
Three Months Ended |
|||||||||||||||||||||||||||||||
Total |
Cost of |
Gross |
Gross |
Total |
Operating |
Operating |
Operating |
Other non- |
Income |
Income tax |
Effective |
(Loss) |
Discontinued |
Net (loss) |
Diluted net |
||||||||||||||||
Reported (GAAP) |
$ 713,830 |
$ 318,480 |
$ 395,350 |
55.4 % |
$ 252,509 |
35.4 % |
$ 142,841 |
20.0 % |
$ 141,925 |
$ 916 |
$ 11,100 |
1,211.8 % |
$ (10,184) |
$ (5,316) |
$ (15,500) |
$ (0.04) |
|||||||||||||||
Items impacting comparability: |
|||||||||||||||||||||||||||||||
Amortization of intangible |
— |
(94,070) |
94,070 |
— |
94,070 |
— |
94,070 |
— |
94,070 |
— |
94,070 |
||||||||||||||||||||
Amounts related to continuity |
— |
(4,970) |
4,970 |
(10,113) |
15,083 |
— |
15,083 |
— |
15,083 |
— |
15,083 |
||||||||||||||||||||
Certain litigation-related and |
— |
— |
— |
(35,195) |
35,195 |
— |
35,195 |
— |
35,195 |
— |
35,195 |
||||||||||||||||||||
Certain legal costs (4) |
— |
— |
— |
(24,843) |
24,843 |
— |
24,843 |
— |
24,843 |
— |
24,843 |
||||||||||||||||||||
Asset impairment charges (5) |
— |
— |
— |
(4,929) |
4,929 |
— |
4,929 |
— |
4,929 |
— |
4,929 |
||||||||||||||||||||
Acquisition-related and |
— |
— |
— |
20 |
(20) |
— |
(20) |
— |
(20) |
— |
(20) |
||||||||||||||||||||
Fair value of contingent |
— |
— |
— |
(117) |
117 |
— |
117 |
— |
117 |
— |
117 |
||||||||||||||||||||
Other (10) |
— |
(125) |
125 |
— |
125 |
(1,355) |
1,480 |
— |
1,480 |
— |
1,480 |
||||||||||||||||||||
Tax adjustments (13) |
— |
— |
— |
— |
— |
— |
— |
18,392 |
(18,392) |
— |
(18,392) |
||||||||||||||||||||
Discontinued operations, net |
— |
— |
— |
— |
— |
— |
— |
— |
— |
5,316 |
5,316 |
||||||||||||||||||||
After considering items (non- |
$ 713,830 |
$ 219,315 |
$ 494,515 |
69.3 % |
$ 177,332 |
24.8 % |
$ 317,183 |
44.4 % |
$ 140,570 |
$ 176,613 |
$ 29,492 |
16.7 % |
$ 147,121 |
$ — |
$ 147,121 |
$ 0.62 |
Six Months Ended |
|||||||||||||||||||||||||||||||
Total |
Cost of |
Gross |
Gross |
Total |
Operating |
Operating |
Operating |
Other non- |
(Loss) |
Income tax |
Effective |
(Loss) |
Discontinued |
Net (loss) |
Diluted net |
||||||||||||||||
Reported (GAAP) |
$ 1,221,373 |
$ 537,001 |
$ 684,372 |
56.0 % |
$ 2,368,635 |
193.9 % |
$ (1,684,263) |
(137.9) % |
$ 256,584 |
$ (1,940,847) |
$ 5,336 |
(0.3) % |
$ (1,946,183) |
$ (11,218) |
$ (1,957,401) |
$ (8.30) |
|||||||||||||||
Items impacting comparability: |
|||||||||||||||||||||||||||||||
Amortization of intangible |
— |
(177,802) |
177,802 |
— |
177,802 |
— |
177,802 |
— |
177,802 |
— |
177,802 |
||||||||||||||||||||
Amounts related to continuity |
— |
(20,844) |
20,844 |
(74,152) |
94,996 |
— |
94,996 |
— |
94,996 |
— |
94,996 |
||||||||||||||||||||
Certain litigation-related and |
— |
— |
— |
(25,362) |
25,362 |
— |
25,362 |
— |
25,362 |
— |
25,362 |
||||||||||||||||||||
Certain legal costs (4) |
— |
— |
— |
(23,270) |
23,270 |
— |
23,270 |
— |
23,270 |
— |
23,270 |
||||||||||||||||||||
Asset impairment charges (5) |
— |
— |
— |
(1,801,016) |
1,801,016 |
— |
1,801,016 |
— |
1,801,016 |
— |
1,801,016 |
||||||||||||||||||||
Fair value of contingent |
— |
— |
— |
(448) |
448 |
— |
448 |
— |
448 |
— |
448 |
||||||||||||||||||||
Other (10) |
— |
(250) |
250 |
— |
250 |
18,097 |
(17,847) |
— |
(17,847) |
— |
(17,847) |
||||||||||||||||||||
Tax adjustments (13) |
— |
— |
— |
— |
— |
— |
— |
(3,607) |
3,607 |
— |
3,607 |
||||||||||||||||||||
Discontinued operations, net |
— |
— |
— |
— |
— |
— |
— |
— |
— |
11,218 |
11,218 |
||||||||||||||||||||
After considering items (non- |
$ 1,221,373 |
$ 338,105 |
$ 883,268 |
72.3 % |
$ 444,387 |
36.4 % |
$ 438,881 |
35.9 % |
$ 274,681 |
$ 164,200 |
$ 1,729 |
1.1 % |
$ 162,471 |
$ — |
$ 162,471 |
$ 0.69 |
Six Months Ended |
|||||||||||||||||||||||||||||||
Total |
Cost of |
Gross |
Gross |
Total |
Operating |
Operating |
Operating |
Other non- |
Income |
Income tax |
Effective |
Income |
Discontinued |
Net income |
Diluted net |
||||||||||||||||
Reported (GAAP) |
$ 1,431,749 |
$ 623,773 |
$ 807,976 |
56.4 % |
$ 468,346 |
32.7 % |
$ 339,630 |
23.7 % |
$ 290,931 |
$ 48,699 |
$ 11,824 |
24.3 % |
$ 36,875 |
$ (10,851) |
$ 26,024 |
$ 0.16 |
|||||||||||||||
Items impacting comparability: |
|||||||||||||||||||||||||||||||
Amortization of intangible |
— |
(189,200) |
189,200 |
— |
189,200 |
— |
189,200 |
— |
189,200 |
— |
189,200 |
||||||||||||||||||||
Amounts related to continuity |
— |
(20,266) |
20,266 |
(18,537) |
38,803 |
— |
38,803 |
— |
38,803 |
— |
38,803 |
||||||||||||||||||||
Certain litigation-related and |
— |
— |
— |
(35,832) |
35,832 |
— |
35,832 |
— |
35,832 |
— |
35,832 |
||||||||||||||||||||
Certain legal costs (4) |
— |
— |
— |
(44,119) |
44,119 |
— |
44,119 |
— |
44,119 |
— |
44,119 |
||||||||||||||||||||
Asset impairment charges (5) |
— |
— |
— |
(8,238) |
8,238 |
— |
8,238 |
— |
8,238 |
— |
8,238 |
||||||||||||||||||||
Acquisition-related and |
— |
— |
— |
(411) |
411 |
— |
411 |
— |
411 |
— |
411 |
||||||||||||||||||||
Fair value of contingent |
— |
— |
— |
5,336 |
(5,336) |
— |
(5,336) |
— |
(5,336) |
— |
(5,336) |
||||||||||||||||||||
Loss on extinguishment of |
— |
— |
— |
— |
— |
(13,753) |
13,753 |
— |
13,753 |
— |
13,753 |
||||||||||||||||||||
Other (10) |
— |
(651) |
651 |
(3,909) |
4,560 |
(2,502) |
7,062 |
— |
7,062 |
— |
7,062 |
||||||||||||||||||||
Tax adjustments (13) |
— |
— |
— |
— |
— |
— |
— |
46,919 |
(46,919) |
— |
(46,919) |
||||||||||||||||||||
Discontinued operations, net |
— |
— |
— |
— |
— |
— |
— |
— |
— |
10,851 |
10,851 |
||||||||||||||||||||
After considering items (non- |
$ 1,431,749 |
$ 413,656 |
$ 1,018,093 |
71.1 % |
$ 362,636 |
25.3 % |
$ 655,457 |
45.8 % |
$ 274,676 |
$ 380,781 |
$ 58,743 |
15.4 % |
$ 322,038 |
$ — |
$ 322,038 |
$ 1.36 |
Notes to the Reconciliations of GAAP and Non-GAAP Financial Measures
Notes to certain line items included in the reconciliations of the GAAP financial measures to the non-GAAP financial measures for the three and six months ended
(1) |
Depreciation and amortization and Share-based compensation amounts per the Adjusted EBITDA reconciliations do not include |
(2) |
Adjustments for amounts related to continuity and separation benefits, cost reductions and strategic review initiatives included the |
Three Months Ended |
|||||||
2022 |
2021 |
||||||
Cost of revenues |
Operating expenses |
Cost of revenues |
Operating expenses |
||||
Continuity and separation benefits |
$ 4,846 |
$ 6,898 |
$ (2,913) |
$ 4,485 |
|||
Accelerated depreciation |
— |
147 |
7,140 |
1,932 |
|||
Other, including strategic review initiatives |
261 |
25,195 |
743 |
3,696 |
|||
Total |
$ 5,107 |
$ 32,240 |
$ 4,970 |
$ 10,113 |
Six Months Ended |
|||||||
2022 |
2021 |
||||||
Cost of revenues |
Operating expenses |
Cost of revenues |
Operating expenses |
||||
Continuity and separation benefits |
$ 10,098 |
$ 33,973 |
$ 2,279 |
$ 7,837 |
|||
Accelerated depreciation |
2,164 |
1,660 |
12,194 |
3,785 |
|||
Other, including strategic review initiatives |
8,582 |
38,519 |
5,793 |
6,915 |
|||
Total |
$ 20,844 |
$ 74,152 |
$ 20,266 |
$ 18,537 |
The amounts in the tables above include adjustments related to previously announced restructuring activities, certain continuity and |
|
(3) |
To exclude adjustments to accruals for litigation-related settlement charges. |
(4) |
To exclude amounts related to opioid-related legal expenses. The amount during the second quarter of 2022 reflects the recovery of |
(5) |
Adjustments for asset impairment charges included the following (in thousands): |
Three Months Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
|
$ 1,748,000 |
$ — |
$ 1,748,000 |
$ — |
|||
Other intangible asset impairment charges |
30,000 |
4,929 |
49,953 |
7,811 |
|||
Property, plant and equipment impairment charges |
3,063 |
— |
3,063 |
427 |
|||
Total |
$ 1,781,063 |
$ 4,929 |
$ 1,801,016 |
$ 8,238 |
(6) |
To exclude integration costs. |
(7) |
To exclude the impact of changes in the fair value of contingent consideration liabilities resulting from changes to estimates regarding |
(8) |
To exclude the loss on the extinguishment of debt associated with the Company's |
(9) |
To exclude Other (income) expense, net per the Condensed Consolidated Statements of Operations. |