ENDO REPORTS THIRD-QUARTER 2022 FINANCIAL RESULTS
THIRD-QUARTER FINANCIAL PERFORMANCE
(in thousands, except per share amounts)
Three Months Ended |
Nine Months Ended |
||||||||||
2022 |
2021 |
Change |
2022 |
2021 |
Change |
||||||
Total Revenues, Net |
$ 541,690 |
$ 772,028 |
(30) % |
$ 1,763,063 |
$ 2,203,777 |
(20) % |
|||||
Reported Loss from Continuing |
$ (718,272) |
$ (49,289) |
NM |
$ (2,664,455) |
$ (12,414) |
NM |
|||||
Reported Diluted Weighted Average |
235,160 |
233,578 |
1 % |
234,719 |
232,487 |
1 % |
|||||
Reported Diluted Net Loss per Share |
$ (3.05) |
$ (0.21) |
NM |
$ (11.35) |
$ (0.05) |
NM |
|||||
Reported Net Loss |
$ (722,169) |
$ (77,207) |
NM |
$ (2,679,570) |
$ (51,183) |
NM |
|||||
Adjusted Income from Continuing |
$ 111,858 |
$ 189,277 |
(41) % |
$ 274,329 |
$ 511,315 |
(46) % |
|||||
Adjusted Diluted Weighted Average |
236,183 |
235,527 |
— % |
236,372 |
236,538 |
— % |
|||||
Adjusted Diluted Net Income per |
$ 0.47 |
$ 0.80 |
(41) % |
$ 1.16 |
$ 2.16 |
(46) % |
|||||
Adjusted EBITDA (2)(3) |
$ 210,816 |
$ 386,883 |
(46) % |
$ 681,948 |
$ 1,089,298 |
(37) % |
__________
(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 |
COMPANY UPDATE
Endo and certain of its direct and indirect subsidiaries filed voluntary petitions for relief under Chapter 11 of the
For additional information about Endo's Chapter 11 proceedings, please review Endo's most recent Quarterly Report on Form 10-Q and other filings with the
CONSOLIDATED FINANCIAL RESULTS
Total revenues were
Reported loss from continuing operations in third-quarter 2022 was
Adjusted income from continuing operations in third-quarter 2022 was
BRANDED PHARMACEUTICALS SEGMENT
Third-quarter 2022
Specialty Products revenues decreased 10% to
STERILE INJECTABLES SEGMENT
Third-quarter 2022 Sterile Injectables segment revenues were $119 million, a decrease of 65% compared to $344 million during third-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
Third-quarter 2022
INTERNATIONAL PHARMACEUTICALS SEGMENT
Third-quarter 2022
CASH AND CASH FLOW
As of
FINANCIAL GUIDANCE
Due to uncertainties in certain key assumptions including, among others, the timing and amounts of costs or other impacts related to the financial restructuring process, the actions of suppliers and other counterparties as a result of the financial restructuring process, the disruption related to XIAFLEX®'s third-party specialty pharmacy provider, market conditions for specialty product office-based elective procedures and the timing and impact of varenicline competition, the Company is not providing guidance at this time. The Company continues to evaluate the impact of these and other uncertainties on its future results of operations. Those uncertainties are further discussed below under the heading "Cautionary Note Regarding Forward-Looking Statements."
Chantix® is a registered trademark of Pfizer Inc.
FINANCIAL SCHEDULES
The following table presents Endo's unaudited Total revenues, net for the three and nine months ended
Three Months Ended |
Percent |
Nine Months Ended |
Percent |
||||||||
2022 |
2021 |
2022 |
2021 |
||||||||
|
|||||||||||
Specialty Products: |
|||||||||||
XIAFLEX® |
$ 104,014 |
$ 105,509 |
(1) % |
$ 324,376 |
$ 312,266 |
4 % |
|||||
SUPPRELIN® LA |
31,283 |
30,069 |
4 % |
84,852 |
85,665 |
(1) % |
|||||
Other Specialty (1) |
11,033 |
26,339 |
(58) % |
50,023 |
74,407 |
(33) % |
|||||
Total Specialty Products |
$ 146,330 |
$ 161,917 |
(10) % |
$ 459,251 |
$ 472,338 |
(3) % |
|||||
Established Products: |
|||||||||||
PERCOCET® |
$ 25,052 |
$ 26,914 |
(7) % |
$ 77,483 |
$ 78,695 |
(2) % |
|||||
TESTOPEL® |
9,430 |
11,686 |
(19) % |
28,331 |
32,314 |
(12) % |
|||||
Other Established (2) |
22,689 |
30,460 |
(26) % |
62,249 |
82,305 |
(24) % |
|||||
Total Established Products |
$ 57,171 |
$ 69,060 |
(17) % |
$ 168,063 |
$ 193,314 |
(13) % |
|||||
|
$ 203,501 |
$ 230,977 |
(12) % |
$ 627,314 |
$ 665,652 |
(6) % |
|||||
Sterile Injectables: |
|||||||||||
VASOSTRICT® |
$ 33,697 |
$ 255,697 |
(87) % |
$ 225,217 |
$ 676,764 |
(67) % |
|||||
ADRENALIN® |
24,917 |
28,722 |
(13) % |
85,514 |
88,136 |
(3) % |
|||||
Other Sterile Injectables (4) |
60,079 |
59,234 |
1 % |
171,161 |
182,098 |
(6) % |
|||||
Total Sterile Injectables (3) |
$ 118,693 |
$ 343,653 |
(65) % |
$ 481,892 |
$ 946,998 |
(49) % |
|||||
|
$ 201,435 |
$ 174,306 |
16 % |
$ 590,756 |
$ 522,451 |
13 % |
|||||
|
$ 18,061 |
$ 23,092 |
(22) % |
$ 63,101 |
$ 68,676 |
(8) % |
|||||
Total revenues, net |
$ 541,690 |
$ 772,028 |
(30) % |
$ 1,763,063 |
$ 2,203,777 |
(20) % |
__________
(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 either the three or nine 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 nine months ended
Three Months Ended |
Nine Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
TOTAL REVENUES, NET |
$ 541,690 |
$ 772,028 |
$ 1,763,063 |
$ 2,203,777 |
|||
COSTS AND EXPENSES: |
|||||||
Cost of revenues |
261,232 |
286,068 |
798,233 |
909,841 |
|||
Selling, general and administrative |
192,221 |
246,864 |
600,212 |
611,657 |
|||
Research and development |
31,885 |
25,616 |
97,803 |
85,024 |
|||
Acquired in-process research and development |
800 |
— |
68,700 |
5,000 |
|||
Litigation-related and other contingencies, net |
419,376 |
83,495 |
444,738 |
119,327 |
|||
Asset impairment charges |
150,200 |
42,155 |
1,951,216 |
50,393 |
|||
Acquisition-related and integration items, net |
(1,399) |
(1,432) |
(951) |
(6,357) |
|||
Interest expense, net |
74,753 |
142,958 |
349,486 |
418,852 |
|||
Loss on extinguishment of debt |
— |
— |
— |
13,753 |
|||
Reorganization items, net |
124,212 |
— |
124,212 |
— |
|||
Other income, net |
(3,998) |
(5,955) |
(22,147) |
(4,671) |
|||
(LOSS) INCOME FROM CONTINUING OPERATIONS |
$ (707,592) |
$ (47,741) |
$ (2,648,439) |
$ 958 |
|||
INCOME TAX EXPENSE |
10,680 |
1,548 |
16,016 |
13,372 |
|||
LOSS FROM CONTINUING OPERATIONS |
$ (718,272) |
$ (49,289) |
$ (2,664,455) |
$ (12,414) |
|||
DISCONTINUED OPERATIONS, NET OF TAX |
(3,897) |
(27,918) |
(15,115) |
(38,769) |
|||
NET LOSS |
$ (722,169) |
$ (77,207) |
$ (2,679,570) |
$ (51,183) |
|||
NET LOSS PER SHARE—BASIC: |
|||||||
Continuing operations |
$ (3.05) |
$ (0.21) |
$ (11.35) |
$ (0.05) |
|||
Discontinued operations |
(0.02) |
(0.12) |
(0.07) |
(0.17) |
|||
Basic |
$ (3.07) |
$ (0.33) |
$ (11.42) |
$ (0.22) |
|||
NET LOSS PER SHARE—DILUTED: |
|||||||
Continuing operations |
$ (3.05) |
$ (0.21) |
$ (11.35) |
$ (0.05) |
|||
Discontinued operations |
(0.02) |
(0.12) |
(0.07) |
(0.17) |
|||
Diluted |
$ (3.07) |
$ (0.33) |
$ (11.42) |
$ (0.22) |
|||
WEIGHTED AVERAGE SHARES: |
|||||||
Basic |
235,160 |
233,578 |
234,719 |
232,487 |
|||
Diluted |
235,160 |
233,578 |
234,719 |
232,487 |
The following table presents unaudited Condensed Consolidated Balance Sheet data at
|
|
||
ASSETS |
|||
CURRENT ASSETS: |
|||
Cash and cash equivalents |
$ 1,053,892 |
$ 1,507,196 |
|
Restricted cash and cash equivalents |
145,486 |
124,114 |
|
Accounts receivable |
423,460 |
592,019 |
|
Inventories, net |
288,914 |
283,552 |
|
Other current assets |
142,410 |
207,705 |
|
Total current assets |
$ 2,054,162 |
$ 2,714,586 |
|
TOTAL NON-CURRENT ASSETS |
3,952,295 |
6,052,829 |
|
TOTAL ASSETS |
$ 6,006,457 |
$ 8,767,415 |
|
LIABILITIES AND SHAREHOLDERS' DEFICIT |
|||
CURRENT LIABILITIES: |
|||
Accounts payable and accrued expenses, including legal settlement accruals |
$ 538,730 |
$ 1,417,892 |
|
Other current liabilities |
4,323 |
212,070 |
|
Total current liabilities |
$ 543,053 |
$ 1,629,962 |
|
LONG-TERM DEBT, LESS CURRENT PORTION, NET |
— |
8,048,980 |
|
OTHER LIABILITIES |
43,195 |
332,459 |
|
LIABILITIES SUBJECT TO COMPROMISE |
9,345,250 |
— |
|
SHAREHOLDERS' DEFICIT |
(3,925,041) |
(1,243,986) |
|
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT |
$ 6,006,457 |
$ 8,767,415 |
The following table presents unaudited Condensed Consolidated Statement of Cash Flow data for the nine months ended
Nine Months Ended |
|||
2022 |
2021 |
||
OPERATING ACTIVITIES: |
|||
Net loss |
$ (2,679,570) |
$ (51,183) |
|
Adjustments to reconcile Net loss to Net cash provided by operating activities: |
|||
Depreciation and amortization |
302,338 |
350,455 |
|
Asset impairment charges |
1,951,216 |
50,393 |
|
Non-cash reorganization items, net |
89,197 |
— |
|
Other, including cash payments to claimants from Qualified Settlement Funds |
496,430 |
111,249 |
|
Net cash provided by operating activities |
$ 159,611 |
$ 460,914 |
|
INVESTING ACTIVITIES: |
|||
Capital expenditures, excluding capitalized interest |
$ (77,865) |
$ (61,496) |
|
Acquisitions, including in-process research and development, net of cash and restricted cash acquired |
(89,520) |
(5,000) |
|
Proceeds from sale of business and other assets, net |
22,378 |
1,357 |
|
Other |
10,461 |
(5,207) |
|
Net cash used in investing activities |
$ (134,546) |
$ (70,346) |
|
FINANCING ACTIVITIES: |
|||
Payments on borrowings, including certain adequate protection payments, net (a) |
$ (363,486) |
$ (49,541) |
|
Other |
(3,837) |
(25,995) |
|
Net cash used in financing activities |
$ (367,323) |
$ (75,536) |
|
Effect of foreign exchange rate |
(4,674) |
238 |
|
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH |
$ (346,932) |
$ 315,270 |
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH |
1,631,310 |
1,385,000 |
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH
|
$ 1,284,378 |
$ 1,700,270 |
__________
(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. Please refer to Endo's most recent Quarterly Report on Form 10-Q for further discussion. |
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 (GAAP) to Adjusted EBITDA (non-GAAP) for the three and nine months ended
Three Months Ended |
Nine Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Net loss (GAAP) |
$ (722,169) |
$ (77,207) |
$ (2,679,570) |
$ (51,183) |
|||
Income tax expense |
10,680 |
1,548 |
16,016 |
13,372 |
|||
Interest expense, net |
74,753 |
142,958 |
349,486 |
418,852 |
|||
Depreciation and amortization (1) |
96,114 |
106,402 |
298,514 |
328,126 |
|||
EBITDA (non-GAAP) |
$ (540,622) |
$ 173,701 |
$ (2,015,554) |
$ 709,167 |
|||
Amounts related to continuity and separation benefits, |
44,029 |
19,829 |
139,025 |
58,632 |
|||
Certain litigation-related and other contingencies, net (3) |
419,376 |
83,495 |
444,738 |
119,327 |
|||
Certain legal costs (4) |
8,052 |
38,842 |
31,322 |
82,961 |
|||
Asset impairment charges (5) |
150,200 |
42,155 |
1,951,216 |
50,393 |
|||
Acquisition-related and integration costs (6) |
— |
3 |
— |
414 |
|||
Fair value of contingent consideration (7) |
(1,399) |
(1,435) |
(951) |
(6,771) |
|||
Loss on extinguishment of debt (8) |
— |
— |
— |
13,753 |
|||
Share-based compensation (1) |
5,371 |
7,800 |
13,021 |
22,237 |
|||
Other income, net (9) |
(3,998) |
(5,955) |
(22,147) |
(4,671) |
|||
Reorganization items, net (10) |
124,212 |
— |
124,212 |
— |
|||
Other (11) |
1,698 |
530 |
1,951 |
5,087 |
|||
Discontinued operations, net of tax (12) |
3,897 |
27,918 |
15,115 |
38,769 |
|||
Adjusted EBITDA (non-GAAP) (15) |
$ 210,816 |
$ 386,883 |
$ 681,948 |
$ 1,089,298 |
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 and nine months ended
Three Months Ended |
Nine Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Loss from continuing operations (GAAP) |
$ (718,272) |
$ (49,289) |
$ (2,664,455) |
$ (12,414) |
|||
Non-GAAP adjustments: |
|||||||
Amortization of intangible assets (13) |
84,042 |
91,901 |
261,844 |
281,101 |
|||
Amounts related to continuity and separation benefits, |
44,029 |
19,829 |
139,025 |
58,632 |
|||
Certain litigation-related and other contingencies, net |
419,376 |
83,495 |
444,738 |
119,327 |
|||
Certain legal costs (4) |
8,052 |
38,842 |
31,322 |
82,961 |
|||
Asset impairment charges (5) |
150,200 |
42,155 |
1,951,216 |
50,393 |
|||
Acquisition-related and integration costs (6) |
— |
3 |
— |
414 |
|||
Fair value of contingent consideration (7) |
(1,399) |
(1,435) |
(951) |
(6,771) |
|||
Loss on extinguishment of debt (8) |
— |
— |
— |
13,753 |
|||
Reorganization items, net (10) |
124,212 |
— |
124,212 |
— |
|||
Other (11) |
(5,111) |
(6,401) |
(22,958) |
661 |
|||
Tax adjustments (14) |
6,729 |
(29,823) |
10,336 |
(76,742) |
|||
Adjusted income from continuing operations (non-GAAP) |
$ 111,858 |
$ 189,277 |
$ 274,329 |
$ 511,315 |
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 nine 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) |
$ 541,690 |
$ 261,232 |
$ 280,458 |
51.8 % |
$ 793,083 |
146.4 % |
$ (512,625) |
(94.6) % |
$ 194,967 |
$ (707,592) |
$ 10,680 |
(1.5) % |
$ (718,272) |
$ (3,897) |
$ (722,169) |
$ (3.05) |
|||||||||||||||
Items impacting |
|||||||||||||||||||||||||||||||
Amortization of |
— |
(84,042) |
84,042 |
— |
84,042 |
— |
84,042 |
— |
84,042 |
— |
84,042 |
||||||||||||||||||||
Amounts related to |
— |
(2,809) |
2,809 |
(41,220) |
44,029 |
— |
44,029 |
— |
44,029 |
— |
44,029 |
||||||||||||||||||||
Certain litigation-related |
— |
— |
— |
(419,376) |
419,376 |
— |
419,376 |
— |
419,376 |
— |
419,376 |
||||||||||||||||||||
Certain legal costs (4) |
— |
— |
— |
(8,052) |
8,052 |
— |
8,052 |
— |
8,052 |
— |
8,052 |
||||||||||||||||||||
Asset impairment |
— |
— |
— |
(150,200) |
150,200 |
— |
150,200 |
— |
150,200 |
— |
150,200 |
||||||||||||||||||||
Fair value of contingent |
— |
— |
— |
1,399 |
(1,399) |
— |
(1,399) |
— |
(1,399) |
— |
(1,399) |
||||||||||||||||||||
Reorganization items, net |
— |
— |
— |
— |
— |
(124,212) |
124,212 |
— |
124,212 |
— |
124,212 |
||||||||||||||||||||
Other (11) |
— |
(125) |
125 |
(1,570) |
1,695 |
6,806 |
(5,111) |
— |
(5,111) |
— |
(5,111) |
||||||||||||||||||||
Tax adjustments (14) |
— |
— |
— |
— |
— |
— |
— |
(6,729) |
6,729 |
— |
6,729 |
||||||||||||||||||||
Discontinued operations, |
— |
— |
— |
— |
— |
— |
— |
— |
— |
3,897 |
3,897 |
||||||||||||||||||||
After considering items |
$ 541,690 |
$ 174,256 |
$ 367,434 |
67.8 % |
$ 174,064 |
32.1 % |
$ 193,370 |
35.7 % |
$ 77,561 |
$ 115,809 |
$ 3,951 |
3.4 % |
$ 111,858 |
$ — |
$ 111,858 |
$ 0.47 |
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) |
$ 772,028 |
$ 286,068 |
$ 485,960 |
62.9 % |
$ 396,698 |
51.4 % |
$ 89,262 |
11.6 % |
$ 137,003 |
$ (47,741) |
$ 1,548 |
(3.2) % |
$ (49,289) |
$ (27,918) |
$ (77,207) |
$ (0.21) |
|||||||||||||||
Items impacting |
|||||||||||||||||||||||||||||||
Amortization of |
— |
(91,901) |
91,901 |
— |
91,901 |
— |
91,901 |
— |
91,901 |
— |
91,901 |
||||||||||||||||||||
Amounts related to |
— |
10,259 |
(10,259) |
(30,088) |
19,829 |
— |
19,829 |
— |
19,829 |
— |
19,829 |
||||||||||||||||||||
Certain litigation-related |
— |
— |
— |
(83,495) |
83,495 |
— |
83,495 |
— |
83,495 |
— |
83,495 |
||||||||||||||||||||
Certain legal costs (4) |
— |
— |
— |
(38,842) |
38,842 |
— |
38,842 |
— |
38,842 |
— |
38,842 |
||||||||||||||||||||
Asset impairment |
— |
— |
— |
(42,155) |
42,155 |
— |
42,155 |
— |
42,155 |
— |
42,155 |
||||||||||||||||||||
Acquisition-related and |
— |
— |
— |
(3) |
3 |
— |
3 |
— |
3 |
— |
3 |
||||||||||||||||||||
Fair value of contingent |
— |
— |
— |
1,435 |
(1,435) |
— |
(1,435) |
— |
(1,435) |
— |
(1,435) |
||||||||||||||||||||
Other (11) |
— |
(525) |
525 |
— |
525 |
6,926 |
(6,401) |
— |
(6,401) |
— |
(6,401) |
||||||||||||||||||||
Tax adjustments (14) |
— |
— |
— |
— |
— |
— |
— |
29,823 |
(29,823) |
— |
(29,823) |
||||||||||||||||||||
Discontinued operations, |
— |
— |
— |
— |
— |
— |
— |
— |
— |
27,918 |
27,918 |
||||||||||||||||||||
After considering items |
$ 772,028 |
$ 203,901 |
$ 568,127 |
73.6 % |
$ 203,550 |
26.4 % |
$ 364,577 |
47.2 % |
$ 143,929 |
$ 220,648 |
$ 31,371 |
14.2 % |
$ 189,277 |
$ — |
$ 189,277 |
$ 0.80 |
Nine 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) |
$ 1,763,063 |
$ 798,233 |
$ 964,830 |
54.7 % |
$ 3,161,718 |
179.3 % |
$ (2,196,888) |
(124.6) % |
$ 451,551 |
$ (2,648,439) |
$ 16,016 |
(0.6) % |
$ (2,664,455) |
$ (15,115) |
$ (2,679,570) |
$ (11.35) |
|||||||||||||||
Items impacting |
|||||||||||||||||||||||||||||||
Amortization of |
— |
(261,844) |
261,844 |
— |
261,844 |
— |
261,844 |
— |
261,844 |
— |
261,844 |
||||||||||||||||||||
Amounts related to |
— |
(23,653) |
23,653 |
(115,372) |
139,025 |
— |
139,025 |
— |
139,025 |
— |
139,025 |
||||||||||||||||||||
Certain litigation-related |
— |
— |
— |
(444,738) |
444,738 |
— |
444,738 |
— |
444,738 |
— |
444,738 |
||||||||||||||||||||
Certain legal costs (4) |
— |
— |
— |
(31,322) |
31,322 |
— |
31,322 |
— |
31,322 |
— |
31,322 |
||||||||||||||||||||
Asset impairment charges (5) |
— |
— |
— |
(1,951,216) |
1,951,216 |
— |
1,951,216 |
— |
1,951,216 |
— |
1,951,216 |
||||||||||||||||||||
Fair value of contingent |
— |
— |
— |
951 |
(951) |
— |
(951) |
— |
(951) |
— |
(951) |
||||||||||||||||||||
Reorganization items, net |
— |
— |
— |
— |
— |
(124,212) |
124,212 |
— |
124,212 |
— |
124,212 |
||||||||||||||||||||
Other (11) |
— |
(375) |
375 |
(1,570) |
1,945 |
24,903 |
(22,958) |
— |
(22,958) |
— |
(22,958) |
||||||||||||||||||||
Tax adjustments (14) |
— |
— |
— |
— |
— |
— |
— |
(10,336) |
10,336 |
— |
10,336 |
||||||||||||||||||||
Discontinued operations, |
— |
— |
— |
— |
— |
— |
— |
— |
— |
15,115 |
15,115 |
||||||||||||||||||||
After considering items |
$ 1,763,063 |
$ 512,361 |
$ 1,250,702 |
70.9 % |
$ 618,451 |
35.1 % |
$ 632,251 |
35.9 % |
$ 352,242 |
$ 280,009 |
$ 5,680 |
2.0 % |
$ 274,329 |
$ — |
$ 274,329 |
$ 1.16 |
Nine Months Ended |
|||||||||||||||||||||||||||||||
Total |
Cost of |
Gross |
Gross |
Total |
Operating |
Operating |
Operating |
Other non- |
Income from |
Income tax |
Effective |
(Loss) |
Discontinued |
Net (loss) |
Diluted net |
||||||||||||||||
Reported (GAAP) |
$ 2,203,777 |
$ 909,841 |
$ 1,293,936 |
58.7 % |
$ 865,044 |
39.3 % |
$ 428,892 |
19.5 % |
$ 427,934 |
$ 958 |
$ 13,372 |
1,395.8 % |
$ (12,414) |
$ (38,769) |
$ (51,183) |
$ (0.05) |
|||||||||||||||
Items impacting |
|||||||||||||||||||||||||||||||
Amortization of |
— |
(281,101) |
281,101 |
— |
281,101 |
— |
281,101 |
— |
281,101 |
— |
281,101 |
||||||||||||||||||||
Amounts related to |
— |
(10,007) |
10,007 |
(48,625) |
58,632 |
— |
58,632 |
— |
58,632 |
— |
58,632 |
||||||||||||||||||||
Certain litigation-related |
— |
— |
— |
(119,327) |
119,327 |
— |
119,327 |
— |
119,327 |
— |
119,327 |
||||||||||||||||||||
Certain legal costs (4) |
— |
— |
— |
(82,961) |
82,961 |
— |
82,961 |
— |
82,961 |
— |
82,961 |
||||||||||||||||||||
Asset impairment |
— |
— |
— |
(50,393) |
50,393 |
— |
50,393 |
— |
50,393 |
— |
50,393 |
||||||||||||||||||||
Acquisition-related and |
— |
— |
— |
(414) |
414 |
— |
414 |
— |
414 |
— |
414 |
||||||||||||||||||||
Fair value of contingent |
— |
— |
— |
6,771 |
(6,771) |
— |
(6,771) |
— |
(6,771) |
— |
(6,771) |
||||||||||||||||||||
Loss on extinguishment |
— |
— |
— |
— |
— |
(13,753) |
13,753 |
— |
13,753 |
— |
13,753 |
||||||||||||||||||||
Other (11) |
— |
(1,176) |
1,176 |
(3,909) |
5,085 |
4,424 |
661 |
— |
661 |
— |
661 |
||||||||||||||||||||
Tax adjustments (14) |
— |
— |
— |
— |
— |
— |
— |
76,742 |
(76,742) |
— |
(76,742) |
||||||||||||||||||||
Discontinued operations, |
— |
— |
— |
— |
— |
— |
— |
— |
— |
38,769 |
38,769 |
||||||||||||||||||||
After considering items |
$ 2,203,777 |
$ 617,557 |
$ 1,586,220 |
72.0 % |
$ 566,186 |
25.7 % |
|
46.3 % |
$ 418,605 |
$ 601,429 |
$ 90,114 |
15.0 % |
$ 511,315 |
$ — |
$ 511,315 |
$ 2.16 |
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 nine months ended
(1) |
Depreciation and amortization and Share-based compensation amounts per the Adjusted EBITDA reconciliations do not include amounts reflected in other lines of the reconciliations, including Amounts related to continuity and separation benefits, cost reductions and strategic review initiatives. |
(2) |
Adjustments for amounts related to continuity and separation benefits, cost reductions and strategic review initiatives included the following (in thousands): |
Three Months Ended |
|||||||
2022 |
2021 |
||||||
Cost of revenues |
Operating |
Cost of revenues |
Operating |
||||
Continuity and separation benefits |
$ 2,401 |
$ 11,662 |
$ (16,106) |
$ 4,823 |
|||
Accelerated depreciation |
— |
— |
5,128 |
1,223 |
|||
Other, including strategic review initiatives |
408 |
29,558 |
719 |
24,042 |
|||
Total |
$ 2,809 |
$ 41,220 |
$ (10,259) |
$ 30,088 |
Nine Months Ended |
|||||||
2022 |
2021 |
||||||
Cost of revenues |
Operating |
Cost of revenues |
Operating |
||||
Continuity and separation benefits |
$ 12,499 |
$ 45,635 |