- Total quarterly revenues of $803 million
increase 57 percent versus prior year; branded
pharmaceuticals revenues grow 16 percent, reflecting
strong performance of OPANA® ER, Voltaren® Gel and
LIDODERM®; Generics revenues grow 23 percent on a pro
forma basis
- Reported quarterly diluted EPS of $0.30 versus $0.77
for prior year
- Adjusted diluted EPS of $1.40 reflecting growth of 32
percent from 2010
- Reported annual diluted EPS of $1.55, down 30 percent
from prior year; adjusted diluted EPS of $4.69,
reflecting growth of 35 percent from 2010
- Company issues 2012 guidance for revenue of $3.15 to
$3.30 billion and adjusted diluted EPS of $5.00 to
$5.20; expects reported or GAAP diluted EPS of $2.60 to
$2.80
CHADDS FORD, Pa., Feb. 24,
2012/PRNewswire/ -- Endo Pharmaceuticals
(Nasdaq: ENDP) today reported financial results for
the fourth quarter of 2011.
Total revenues during the fourth quarter of 2011
increased 57 percent to $803.4
million, compared with $511.2
millionin the same quarter of 2010.
Net income for the three months ended
Dec. 31, 2011, was $36.6
million, compared with $93.0
millionin the comparable 2010 period.
Additionally, adjusted net income for the three
months ended Dec. 31, 2011, was
$168.2 million, up 32 percent,
compared with $127.6 millionin the
same period in 2010. Reported diluted
earnings per share for the quarter ended Dec.
31, 2011, were $0.30compared
with $0.77reported in the fourth
quarter of 2010. Adjusted diluted earnings per
share for the same period were $1.40,
up 32 percent from $1.06reported in
2010.
"Endo has built a diversified platform of
healthcare businesses that span branded
pharmaceuticals, generics, medical devices and
services, and our 2011 financial performance
reinforces the execution of our growth strategy and
evolution through acquisition, as well as the
organic contributions and strengths of each of our
business segments," said Dave
Holveck, president and CEO of Endo. "We
look forward to updating our investors on the
sustainable growth story of our diversified
business and how we are exploring new ways to
deliver integrated solutions that create value for
key constituencies."
FINANCIAL PERFORMANCE AT A
GLANCE
| | ($ in thousands, except per share
amounts) | |
| 4th Quarter |
| Twelve Months Ended
December 31 |
| |
|
2011 |
2010 |
Change |
2011 |
2010 |
Change | |
Total Revenues |
$803,406 |
$511,190 |
57% |
$2,730,121 |
$1,716,229 |
59% | |
Reported Net Income |
36,594 |
92,985 |
(61)% |
187,613 |
259,006 |
(28)% | |
Reported Diluted EPS |
0.30 |
0.77 |
(61)% |
1.55 |
2.20 |
(30)% | |
Adjusted Net Income |
168,186 |
127,641 |
32% |
568,153 |
410,361 |
38% | |
Adjusted Diluted EPS |
$1.40 |
$1.06 |
32% |
$4.69 |
$3.48 |
35% | |
| | | | | | | | |
BRANDED PHARMACEUTICALS
Branded pharmaceutical sales of $458
millionfor the fourth quarter 2011
represented an increase of 16 percent versus the
prior year. The fourth quarter performance of
OPANA ER, Voltaren Gel and LIDODERM contributed to
a strong full year for Endo's branded
pharmaceuticals segment, which grew 13 percent
versus 2010. In the fourth quarter, OPANA ER
net sales grew 46 percent on prescription growth of
40 percent. Voltaren Gel net sales grew 23
percent on prescription growth of 34 percent.
Net sales of LIDODERM grew 12 percent on flat
prescription growth. The increase in LIDODERM
net sales reflects changes as of mid November
2011, with respect to royalty obligations
among Endo, Hind Healthcare, Inc., and Teikoku
Seiyaku Co., Ltd.; changes which have been
previously described in our filings with the U.S.
Securities and Exchange Commission.
On Dec. 12, 2011, we announced the
receipt of U.S. Food and Drug Administration (FDA)
approval of our new formulation of OPANA ER
designed to be crush-resistant. The approval
represents a significant milestone for Endo's
branded pharmaceuticals portfolio. Endo
believes that this new formulation of OPANA ER,
coupled with our long-term commitment to awareness
and education around the appropriate use of
opioids, will benefit patients, physicians and
payers. Additionally, a new patent was issued
during the 4th quarter, (U.S. patent number
8,075,872) covering the new formulation of OPANA ER
and is expected to provide protection until
November 2023for the new formulation
of Opana ER.
On Jan. 6, 2012, Endo announced the
signing of a worldwide license and development
agreement with U.S.-based BioDelivery Sciences
International for BEMA® Buprenorphine. The
addition of BEMA Buprenorphine reflects Endo's
continued commitment to its Branded Pharmaceuticals
pain franchise and will broaden Endo's
portfolio of therapeutics, allowing it to offer an
integrated suite of products that currently include
OPANA ER, Voltaren Gel and LIDODERM, as well as a
broad range of generic pain products.
GENERICS
Generics sales of $151 millionfor the
fourth quarter 2011 represented an increase of 131
percent over last year, reflecting Endo's
acquisition of Qualitest Pharmaceuticals in
November 2010. For the twelve
months ended December 31, 2011,
generic sales increased approximately $420
million, an increase of 287 percent, driven
by the acquisition of Qualitest Pharmaceuticals.
On a pro forma basis, generics sales grew 21
percent in 2011, reflecting the ability to
capitalize on new business opportunities in generic
pharmaceuticals.
DEVICES
Devices sales, driven by the June
2011acquisition of American Medical Systems
(AMS), were $142 millionfor the fourth
quarter. Men's Health, led by sales of
the AMS 800® Artificial Urinary Sphincter, grew 7
percent on a pro forma basis in the fourth quarter
of 2011, compared with same period last year.
Benign prostatic hyperplasia (BPH), led by
the increasing share of procedural volumes for the
GreenLight XPS™ console and the accompanying MoXy
fiber, grew 1 percent on a pro forma basis in the
fourth quarter of 2011. Women's Health
continued to experience pressure in the fourth
quarter of 2011, following a September FDA Advisory
Committee meeting, which met to discuss the use of
surgical mesh products in the repair of pelvic
organ prolapse and stress urinary incontinence.
SERVICES
Services sales of $52 millionfor the
fourth quarter 2011 represented an increase of 2
percent over last year, as a result of improved
access to equipment for patients and physicians.
The Company expects improved top-line growth
from the Services segment in 2012 and beyond from
an expanding set of partnerships in our Endocare®
cryoablation therapy as well as our pilot programs
involving the sales of this device through the AMS
channel. In the fourth quarter of 2011,
HealthTronics Inc., completed the strategic
acquisitions of Intuitive Medical Software (IMS)
and meridianEMR, Inc., two providers of electronic
medical records for urologists, that provide access
to approximately 1,850 urologists using data
platforms that will enhance service offerings in
urology practice management.
Balance Sheet Update
During the fourth quarter of 2011, Endo made
payments of approximately $140
millionto reduce the outstanding principal
of term-loan debt associated with the acquisition
of AMS. For the full year ending Dec.
31, 2011, Endo made payments of
approximately $290 millionto reduce
the outstanding principal of term-loan debt
associated with the acquisition of AMS. At
Dec. 31, 2011, the company's debt
to adjusted EBITDA ratio is 3.0 times. The
company believes that it will achieve its objective
of reducing its debt to adjusted EBITDA ratio to
2.0 to 2.5 times in 2013.
2012 FINANCIAL GUIDANCE
Endo's estimates are based on projected results
for the twelve months ended Dec. 31,
2012. The company's guidance for
reported (GAAP) earnings per share does not include
any estimates for the potential future changes in
the fair value of contingent consideration, certain
separation benefits, asset impairment charges or
for potential new corporate development
transactions. For the full year ended
Dec. 31, 2012, Endo estimates:
-
Total revenue between $3.15 billion and
$3.30 billion
-
Total Branded Pharmaceuticals segment revenue
between $1.740 billion and $1.800
billion
-
Total Generics segment revenue between $635
million and $675 million
-
Total Devices segment revenue between $530
million and $570 million
-
Total Services segment revenue between $240
million and $260 million
-
Reported (GAAP) diluted earnings per share
between $2.60 and $2.80
-
Adjusted diluted earnings per share between
$5.00 and $5.20
-
Cash flow from operations between $750
million and $850 million
-
Capital expenditures to be approximately
$100 million
Endo's 2012 guidance is based on certain
current assumptions including:
-
Adjusted gross margin between 68 percent and 69
percent
-
Adjusted effective tax rate of between 30.5
percent and 31.5 percent
-
Weighted average number of common shares
outstanding of 122 million shares for the year
ended Dec. 31, 2012
-
Manufacturing of the new formulation of Opana ER
to be at commercial scale by early Q2
-
Manufacturing of Voltaren Gel to an alternate
Novartis location with product returning to
market in limited capacity in early Q2, and
returning to full capacity by end of Q2
-
Continued pressure in our AMS female surgical
mesh business as a result of 2011 FDA Advisory
Committee meeting
-
Strong business performance from our branded
business portfolio of products and from Generics
Conference Call Information
Endo will conduct a conference call with financial
analysts to discuss this news release today at
8:30 a.m. ET. Investors and
other interested parties may call 800-561-2718
(domestic) or +1 617-614-3525 (international) and
enter passcode 29896529. Please dial in 10
minutes prior to the scheduled start time.
A replay of the call will be available from
Feb. 24at 10:30 p.m. ET until
12:00 p.m. ETon Mar. 9, 2012by
dialing 888-286-8010 (domestic) or +1 617-801-6888
(international) and entering passcode 35294180.
A simultaneous webcast of the call can be accessed
by visiting www.endo.com. In
addition, a replay of the webcast will be available
until 12:00 p.m. ETon Mar. 9,
2012. The replay can be accessed by
clicking on "Events" in the Investor
Relations section of the website.
Supplemental Financial Information
The following tables provide a reconciliation of
our reported (GAAP) statements of operations to our
adjusted statements of operations for each of the
three months ended Dec. 31, 2011and
Dec. 31, 2010(in thousands, except per
share data):
| |
Three Months Ended December 31, 2011
(unaudited) |
Actual
Reported
(GAAP)
| Adjustments
|
|
Adjusted
| | REVENUES |
$ 803,406 |
$ - |
| $ 803,406 | |
|
|
|
|
| | COSTS AND EXPENSES: |
|
|
|
| |
Cost of revenues |
294,781 |
(61,449) |
(1) |
233,332 | |
Selling, general and
administrative |
242,656 |
(17,225) |
(2) |
225,431 | |
Research and development |
55,432 |
(752) |
(3) |
54,680 | |
Asset impairment charges |
93,398 |
(93,398) |
(4) |
- | |
Acquisition-related items, net |
4,121 |
(4,121) |
(5) |
- | |
|
|
|
|
| | OPERATING INCOME |
$ 113,018 |
$ 176,945 |
| $ 289,963 | |
|
|
|
|
| | INTEREST EXPENSE, NET |
50,882 |
(4,938) |
(6) |
45,944 | |
LOSS ON EXTINGUISHMENT OF DEBT,
NET |
3,371 |
(3,371) |
(7) |
- | |
OTHER INCOME, NET |
(491) |
- |
| (491) | |
|
|
|
|
| | INCOME BEFORE INCOME TAX |
$ 59,256 |
$ 185,254 |
| $ 244,510 | |
|
|
|
|
| | INCOME TAX |
9,343 |
53,662 |
(8) |
63,005 | |
|
|
|
|
| | CONSOLIDATED NET INCOME |
$ 49,913 |
$ 131,592 |
| $ 181,505 | |
|
|
|
|
| | Less: Net income attributable to
noncontrolling interests |
(13,319) |
- |
| (13,319) | |
|
|
|
|
| | NET INCOME ATTRIBUTABLE TO ENDO
PHARMACEUTICALS HOLDINGS INC. |
$ 36,594 |
$ 131,592 |
| $ 168,186 | |
|
|
|
|
| |
|
|
|
|
| |
DILUTED EARNINGS PER SHARE |
$ 0.30 |
|
|
$ 1.40 | |
DILUTED WEIGHTED AVERAGE
SHARES |
120,418 |
|
|
120,418 | |
Notes to reconciliation of our GAAP
statements of operations to our adjusted
statements of operations:
-
To exclude amortization of
commercial intangible assets related to
marketed products of $51,925, the impact
of inventory step-up recorded as part of
acquisition accounting of $8,720, and
certain integration costs and separation
benefits incurred in connection with
continued efforts to enhance the
company's operationsof $804.
-
To exclude certain integration
costs and separation benefits incurred in
connection with continued efforts to
enhance the company's operations of
$3,419, amortization of customer
relationships of $2,543 and the accrual
of an unfavorable court decision and
attorneys' fees in the matter of
Allmed Systems Inc. d/b/a Lisa
Laser USA, Inc. and Lisa Laser Products
OHG. vs. HealthTronics, Inc. of $11,263,
which is currently pending appeal.
-
To exclude milestone payments to
partners.
-
To exclude asset impairment
charges.
-
To exclude acquisition-related
costs of $4,026 and a loss of $95
recorded to reflect the change in fair
value of the contingent consideration
associated with the Qualitest
acquisition.
-
To exclude additional interest
expense as a result of adopting ASC
470-20.
-
To exclude the unamortized debt
issuance costs written off and recorded
as a loss on extinguishment of debt upon
our 2011 prepayments on our Term Loan
indebtedness.
-
To reflect the cash tax savings
results from our recent acquisitions and
the tax effect of the pre-tax adjustments
above at applicable tax rates.
| | | | | | |
| | Three Months Ended December 31, 2010
(unaudited) |
Actual
Reported
(GAAP)
| Adjustments
|
|
Adjusted
| | REVENUES |
$ 511,190 |
$ - |
| $ 511,190 | |
|
|
|
|
| | COSTS AND EXPENSES: |
|
|
|
| |
Cost of revenues |
169,548 |
(35,119 ) |
(1) |
134,429 | |
Selling, general and
administrative |
143,203 |
(675) |
(2) |
142,528 | |
Research and development |
39,256 |
(4,650) |
(3) |
34,606 | |
Asset impairment charges |
22,000 |
(22,000) |
(4) |
- | |
Acquisition-related items, net |
(12,339) |
12,339 |
(5) |
- | |
|
|
|
|
| | OPERATING INCOME |
$ 149,522 |
$ 50,105 |
| $ 199,627 | |
|
|
|
|
| | INTEREST EXPENSE, NET |
13,834 |
(4,476) |
(6) |
9,358 | |
OTHER INCOME, NET |
(1,454) |
- |
| (1,454) | |
|
|
|
|
| | INCOME BEFORE INCOME TAX |
$ 137,142 |
$ 54,581 |
| $ 191,723 | |
|
|
|
|
| | INCOME TAX |
31,409 |
19,925 |
(7) |
51,334 | |
|
|
|
|
| | CONSOLIDATED NET INCOME |
$ 105,733 |
$ 34,656 |
| $ 140,389 | |
|
|
|
|
| | Less: Net income attributable to
noncontrolling interests |
(12,748) |
- |
| (12,748) | |
|
|
|
|
| | NET INCOME ATTRIBUTABLE TO ENDO
PHARMACEUTICALS HOLDINGS INC. |
$ 92,985 |
$ 34,656 |
| $ 127,641 | |
|
|
|
|
| |
|
|
|
|
| |
DILUTED EARNINGS PER SHARE |
$ 0.77 |
|
|
$ 1.06 | |
DILUTED WEIGHTED AVERAGE
SHARES |
120,516 |
|
|
120,516 | |
Notes to reconciliation of our GAAP
statements of operations to our adjusted
statements of operations:
-
To exclude amortization of
commercial intangible assets related to
marketed products of $30,244 and the
impact of inventory step-up recorded as
part of acquisition accounting of
$4,875.
-
To exclude certain costs and
separation benefits incurred in
connection with continued efforts to
enhance the Company's
operations.
-
To exclude milestone and upfront
payments to partners.
-
To exclude asset impairment
charges.
-
To exclude acquisition-related
costs of $41,231 as well as the impact,
under purchasing accounting, of a gain
recorded to reflect the change in the
company's current estimate of fair
value, in accordance with GAAP, of the
contingent consideration associated with
the Indevus acquisition of
($53,570).
-
To exclude additional interest
expense as a result of adopting ASC
470-20 of $4,508 and to exclude
amortization of the premium on debt
acquired from Indevus of ($32).
-
To reflect the cash tax savings
resulting from the Indevus,
HealthTronics, Penwest and Qualitest
acquisitions and the tax effect of the
pre-tax adjustments above at applicable
tax rates.
| | | | | | |
The following tables provide a reconciliation of
our reported (GAAP) statements of operations to our
adjusted statements of operations for each of the
twelve months ended Dec. 31, 2011and
Dec. 31, 2010(in thousands, except per
share data):
| |
Twelve Months Ended December 31,
2011(unaudited) |
Actual
Reported
(GAAP)
| Adjustments
|
|
Adjusted
| | REVENUES |
$ 2,730,121 |
$ - |
| $ 2,730,121 | |
|
|
|
|
| | COSTS AND EXPENSES: |
|
|
|
| |
Cost of revenues |
1,065,208 |
(245,089) |
(1) |
820,119 | |
Selling, general and
administrative |
824,534 |
(37,402) |
(2) |
787,132 | |
Research and development |
182,286 |
(19,098) |
(3) |
163,188 | |
Asset impairment charges |
116,089 |
(116,089) |
(4) |
- | |
Acquisition-related items, net |
33,638 |
(33,638) |
(5) |
- | |
|
|
|
|
| | OPERATING INCOME |
$ 508,366 |
$ 451,316 |
| $ 959,682 | |
|
|
|
|
| | INTEREST EXPENSE, NET |
148,024 |
(18,952) |
(6) |
129,072 | |
LOSS ON EXTINGUISHMENT OF DEBT,
NET |
11,919 |
(11,919) |
(7) |
- | |
OTHER INCOME, NET |
(3,268) |
2,636 |
(8) |
(632) | |
|
|
|
|
| | INCOME BEFORE INCOME TAX |
$ 351,691 |
$ 479,551 |
| $ 831,242 | |
|
|
|
|
| | INCOME TAX |
109,626 |
99,011 |
(9) |
208,637 | |
|
|
|
|
| | CONSOLIDATED NET INCOME |
$ 242,065 |
$ 380,540 |
| $ 622,605 | |
|
|
|
|
| | Less: Net income attributable to
noncontrolling interests |
(54,452) |
- |
| (54,452) | |
|
|
|
|
| | NET INCOME ATTRIBUTABLE TO ENDO
PHARMACEUTICALS HOLDINGS INC. |
$ 187,613 |
$ 380,540 |
| $ 568,153 | |
|
|
|
|
| |
|
|
|
|
| |
DILUTED EARNINGS PER SHARE |
$ 1.55 |
|
|
$ 4.69 | |
DILUTED WEIGHTED AVERAGE
SHARES |
121,178 |
|
|
121,178 | |
Notes to reconciliation of our GAAP
statements of operations to our adjusted
statements of operations:
-
To exclude amortization of
commercial intangible assets related to
marketed products of $184,496, the impact
of inventory step-up recorded as part of
acquisition accounting of $49,438,
certain integration costs and separation
benefits incurred in connection with
continued efforts to enhance the
company's operationsof $2,155 and
milestone payments to partners of
$9,000.
-
To exclude certain integration
costs and separation benefits incurred in
connection with continued efforts to
enhance the company's operations of
$19,666, amortization of customer
relationships of $6,473 and the accrual
of an unfavorable court decision and
attorneys' fees in the matter of
Allmed Systems Inc. d/b/a Lisa
Laser USA, Inc. and Lisa Laser Products
OHG. vs. HealthTronics, Inc. of $11,263,
which is currently pending appeal.
-
To exclude milestone payments to
partners.
-
To exclude asset impairment
charges.
-
To exclude acquisition-related
costs of $41,001 and a gain of $(7,363)
recorded to reflect the change in fair
value of the contingent consideration
associated with the Indevus and Qualitest
acquisitions.
-
To exclude additional interest
expense as a result of adopting ASC
470-20.
-
To exclude the unamortized debt
issuance costs written off and recorded
as a loss on extinguishment of debt of
$8,548 upon the early termination of our
2010 Credit Facility and $3,371 upon our
2011 prepayments on our Term Loan
indebtedness.
-
To exclude a gain on hedging
activities for foreign currencies.
-
To reflect the cash tax savings
results from our recent acquisitions and
the tax effect of the pre-tax adjustments
above at applicable tax rates.
| | | | | | |
| | Twelve Months Ended December 31, 2010
(unaudited) |
Actual
Reported
(GAAP)
| Adjustments
|
|
Adjusted
| | REVENUES |
$ 1,716,229 |
$ - |
| $ 1,716,229 | |
|
|
|
|
| | COSTS AND EXPENSES: |
|
|
|
| |
Cost of revenues |
504,757 |
(90,263) |
(1) |
414,494 | |
Selling, general and
administrative |
547,605 |
(16,733) |
(2) |
530,872 | |
Research and development |
144,525 |
(24,362) |
(3) |
120,163 | |
Asset impairment charges |
35,000 |
(35,000) |
(4) |
- | |
Acquisition-related items, net |
18,976 |
(18,976) |
(5) |
- | |
|
|
|
|
| | OPERATING INCOME |
$ 465,366 |
$ 185,334 |
| $ 650,700 | |
|
|
|
|
| | INTEREST EXPENSE, NET |
46,601 |
(16,983) |
(6) |
29,618 | |
OTHER INCOME, NET |
(1,933) |
(239) |
(7) |
(2,172) | |
|
|
|
|
| | INCOME BEFORE INCOME TAX |
$ 420,698 |
$ 202,556 |
| $ 623,254 | |
|
|
|
|
| | INCOME TAX |
133,678 |
51,201 |
(8) |
184,879 | |
|
|
|
|
| | CONSOLIDATED NET INCOME |
$ 287,020 |
$ 151,355 |
| $ 438,375 | |
|
|
|
|
| | Less: Net income attributable to
noncontrolling interests |
(28,014) |
- |
| (28,014) | |
|
|
|
|
| | NET INCOME ATTRIBUTABLE TO ENDO
PHARMACEUTICALS HOLDINGS INC. |
$ 259,006 |
$ 151,355 |
| $ 410,361 | |
|
|
|
|
| |
|
|
|
|
| |
DILUTED EARNINGS PER SHARE |
$ 2.20 |
|
|
$ 3.48 | |
DILUTED WEIGHTED AVERAGE
SHARES |
117,951 |
|
|
117,951 | |
Notes to reconciliation of our GAAP
statements of operations to our adjusted
statements of operations:
-
To exclude amortization of
commercial intangible assets related to
marketed products of $83,974 and the
impact of inventory step-up recorded as
part of acquisition accounting of
$6,289.
-
To exclude certain costs incurred
with connection with continued efforts to
enhance the Company's
operations.
-
To exclude a milestone-like payment
and milestone and upfront payments to
partners of $23,850 and certain costs
incurred in connection with continued
efforts to enhance the cost structure of
the company of $512.
-
To exclude asset impairment
charges.
-
To exclude acquisition-related
costs of $70,396 as well as the impact,
under purchase accounting, of a gain
recorded to reflect the change in the
company's current estimate of fair
value, in accordance with GAAP, of the
contingent consideration associated with
the Indevus acquisition of
($51,420).
-
To exclude additional interest
expense as a result of adopting ASC
470-20 of $17,296 and to exclude
amortization of the premium on debt
acquired from Indevus of ($313).
-
To exclude changes in fair value of
financial instruments, net.
-
To reflect the cash tax savings
resulting from the Indevus,
HealthTronics, Penwest and Qualitest
acquisitions and the tax effect of the
pre-tax adjustments above at applicable
tax rates.
| | | | | | |
See Endo's Current Report on Form
8-K filed today with the Securities and Exchange
Commission for additional non-GAAP reconciliations
and for an explanation of Endo's reasons for
using non-GAAP measures.
| |
Reconciliation of Projected GAAP
Diluted Earnings Per Share to Adjusted
Diluted Earnings Per Share Guidance for
2012 | |
| |
|
|
|
|
| |
| Year Ending |
| |
|
December 31, 2012 |
| |
|
|
|
|
| |
Projected GAAP diluted income per
common share |
$2.60 |
To |
$2.80 |
| | Upfront and milestone-related
payments to partners |
$0.76 |
| $0.76 |
| | Amortization of commercial intangible
assets and inventory step-up |
$1.89 |
| $1.89 |
| | Acquisition and integration costs
related to recent acquisitions. |
$0.10 |
| $0.10 |
| | Interest expense adjustment for ASC
470-20 and other treasury related
items |
$0.21 |
| $0.21 |
| | Tax effect of pre-tax adjustments at
the applicable tax rates and certain other
expected cash tax savings as a result of
recent acquisitions |
($0.56) |
| ($0.56) |
| | Diluted adjusted income per common
share guidance |
$5.00 |
To |
$5.20 |
| |
|
|
|
|
| |
The company's guidance is being
issued based on certain assumptions
including: | | - Certain of the above amounts are
based on estimates and there can be no
assurance that Endo will achieve these
results.
-
Includes all completed business
development transactions as of February
24, 2012.
| |
| | | | | | | |
About Endo
Endo Pharmaceuticals Holdings is a U.S.-based,
specialty healthcare solutions company with a
diversified business model, operating in three key
business segments - branded pharmaceuticals,
generics and devices and services. We deliver an
innovative suite of complementary products and
services to meet the needs of patients in areas
such as pain management, pelvic health, urology,
endocrinology and oncology. For more information
about Endo Pharmaceuticals Holdings and its
businesses Endo Pharmaceuticals Inc., American
Medical Systems, HealthTronics and Qualitest
Pharmaceuticals, please visit http://www.endo.com/.
(Tables Attached)
The following tables present Endo's unaudited
Net Revenues for the three and twelve months ended
Dec. 31, 2011and 2010:
Endo Pharmaceuticals Holdings
Inc.
Net Revenues (unaudited)
(in thousands)
| |
|
| Three Months Ended
December 31 |
| Twelve Months Ended
December 31 | |
|
|
2011 |
2010 |
Percent
Growth |
| 2011 |
2010 |
Percent
Growth | |
|
|
|
|
|
|
|
|
| | Branded Pharmaceuticals |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| | LIDODERM® |
| $ 232,252 |
$
207,649 |
12% |
| $ 825,181 |
$ 782,609 |
5% | |
OPANA® ER |
| 109,118 |
74,734 |
46% |
| 384,339 |
239,864 |
60% | |
Voltaren® Gel |
| 38,488 |
31,309 |
23% |
| 142,701 |
104,941 |
36% | |
PERCOCET® |
| 21,835 |
30,919 |
(29)% |
| 104,600 |
121,347 |
(14)% | |
FROVA® |
| 15,994 |
15,401 |
4% |
| 58,180 |
59,299 |
(2)% | |
SUPPRELIN® LA |
| 13,683 |
13,096 |
4% |
| 50,115 |
46,910 |
7% | |
VANTAS® |
| 8,366 |
4,001 |
109% |
| 18,978 |
16,990 |
12% | |
VALSTAR® |
| 5,301 |
4,756 |
11% |
| 21,521 |
14,120 |
52% | |
FORTESTA® Gel |
| 5,401 |
- |
NM |
| 14,869 |
- |
NM | |
|
|
|
|
|
|
|
|
| | Other Branded Products(1) |
| 4,224 |
10,071 |
(58)% |
| 21,751 |
68,599 |
(68)% | |
Royalty and Other Revenue |
| 3,813 |
3,274 |
16% |
| 15,532 |
12,893 |
20% | |
|
|
|
|
|
|
|
|
| | Total Branded Pharmaceuticals |
| $ 458,475 |
$ 395,210 |
16% |
| $ 1,657,767 |
$ 1,467,572 |
13% | |
|
|
|
|
|
|
|
|
| | Total Generics |
| $ 151,423 |
$
65,522 |
131% |
| $ 566,854 |
$ 146,513 |
287% | |
|
|
|
|
|
|
|
|
| | Devices |
|
|
|
|
|
|
|
| |
Men's Health |
| $ 69,520 |
$
- |
NM |
| $
145,836 |
$
- |
NM | |
Women's Health |
| 39,482 |
- |
NM |
| 85,509 |
- |
NM | |
BPH Therapy |
| 32,966 |
- |
NM |
| 68,954 |
- |
NM | |
|
|
|
|
|
|
|
|
| | Total Devices |
| $ 141,968 |
$
- |
NM |
| $ 300,299 |
$
- |
NM | |
|
|
|
|
|
|
|
|
| | Total Services |
| $ 51,540 |
$
50,458 |
2% |
| $ 205,201 |
$ 102,144 |
101% | |
|
|
|
|
|
|
|
|
| | Total Revenue |
| $ 803,406 |
$ 511,190 |
57% |
| $ 2,730,121 |
$ 1,716,229 |
59% | |
|
|
|
|
|
|
|
|
| |
(1) To conform to current year
presentation, net sales from our
immediate-release formulation of OPANA have
been reclassified and are now included
within other branded product
results. | | | | | | | | | | |
The following table presents Endo's unaudited
Pro forma Net Revenues for the eight quarters ended
Dec. 31, 2011giving effect to the
AMS acquisition, the Qualitest acquisition,
the Penwest acquisition and the HealthTronics, Inc.
acquisition as if they had occurred on Jan.
1, 2010:
Endo Pharmaceuticals Holdings
Inc.
Net Pro Forma Revenues
(unaudited)
(in thousands)
| |
|
2010 |
2011 |
| |
|
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 | |
|
|
|
|
|
|
|
|
| | Branded Pharmaceuticals |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| | LIDODERM® |
$182,607 |
$196,090 |
$196,263 |
$207,649 |
$189,725 |
$195,840 |
$207,364 |
$232,252 | |
OPANA® ER |
49,766 |
56,555 |
58,809 |
74,734 |
84,615 |
92,853 |
97,753 |
109,118 | |
Voltaren® Gel |
20,362 |
26,323 |
26,947 |
31,309 |
31,298 |
36,655 |
36,260 |
38,488 | |
PERCOCET® |
28,673 |
31,805 |
29,950 |
30,919 |
26,960 |
27,675 |
28,130 |
21,835 | |
FROVA® |
15,082 |
14,680 |
14,136 |
15,401 |
13,208 |
14,163 |
14,815 |
15,994 | |
SUPPRELIN® LA |
10,587 |
12,209 |
11,018 |
13,096 |
11,222 |
12,515 |
12,695 |
13,683 | |
VANTAS® |
4,389 |
4,960 |
3,640 |
4,001 |
3,545 |
2,054 |
5,013 |
8,366 | |
VALSTAR® |
3,750 |
4,016 |
1,598 |
4,756 |
4,801 |
5,124 |
6,295 |
5,301 | |
FORTESTA® Gel |
- |
- |
- |
- |
(969) |
2,028 |
8,409 |
5,401 | |
|
|
|
|
|
|
|
|
| | Other Branded Products(1) |
19,257 |
19,799 |
19,472 |
10,071 |
6,970 |
5,609 |
4,948 |
4,224 | |
Royalty and Other Revenue |
5,911 |
3,647 |
4,101 |
3,325 |
4,221 |
3,751 |
3,829 |
3,813 | |
|
|
|
|
|
|
|
|
| | Total Branded Pharmaceuticals |
$340,384 |
$370,084 |
$365,934 |
$395,261 |
$375,596 |
$398,267 |
$425,511 |
$458,475 | |
|
|
|
|
|
|
|
|
| | Total Generics |
$105,809 |
$112,075 |
$126,663 |
$122,791 |
$134,409 |
$133,047 |
$147,975 |
$151,423 | |
|
|
|
|
|
|
|
|
| | Devices |
|
|
|
|
|
|
|
| |
Men's Health |
$ 64,480 |
$ 61,361 |
$ 55,177 |
$ 65,221 |
$ 67,407 |
$ 47,790 |
$ 66,548 |
$ 69,520 | |
Women's Health |
42,748 |
44,491 |
41,192 |
48,816 |
45,325 |
46,689 |
38,240 |
39,482 | |
BPH Therapy |
25,911 |
29,176 |
26,890 |
32,615 |
28,054 |
29,784 |
26,731 |
32,966 | |
Uterine Health(2) |
1,787 |
1,340 |
770 |
341 |
- |
- |
- |
- | |
|
|
|
|
|
|
|
|
| | Total Devices |
$134,926 |
$136,368 |
$124,029 |
$146,993 |
$140,786 |
$124,263 |
$131,519 |
$141,968 | |
|
|
|
|
|
|
|
|
| | Total Services(3) |
$ 48,389 |
$ 50,300 |
$ 51,686 |
$ 50,458 |
$ 50,103 |
$ 49,485 |
$ 54,073 |
$ 51,540 | |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Total Revenue |
$629,508 |
$668,827 |
$668,312 |
$715,503 |
$700,894 |
$705,062 |
$759,078 |
$803,406 | |
|
|
|
|
|
|
|
|
| |
(1) To conform to current year
presentation, net sales from our
immediate-release formulation of Opana have
been reclassified and are now included
within other branded product
results.
(2) The uterine health product
line, Her Option®
was sold to a third party in February 2010.
Revenues for 2010 consist of
end-customer revenue earned prior to the
date of sale, in addition to revenue earned
as part of the product supply agreement
with CooperSurgical, Inc., which continued
through the fourth quarter of 2010.
(3) The services segment does not
include the pro
formaimpact of pre-acquisition
revenues from the recently acquired
electronic medical records providers,
Intuitive Medical Software (IMS) and
meridianEMR, Inc.
| | | | | | | | | | |
The following table presents unaudited condensed
consolidated Balance Sheet data at Dec. 31,
2011and Dec. 31, 2010:
| |
| December 31,
2011
| December 31,
2010
| | ASSETS |
|
| |
CURRENT ASSETS: |
|
| |
Cash and cash equivalents |
$ 547,620 |
$ 466,214 | |
Accounts receivable, net |
733,222 |
547,807 | |
Inventories, net |
262,419 |
178,805 | |
Other assets |
244,835 |
166,708 | |
|
|
| | Total current assets |
$1,788,096 |
$ 1,359,534 | |
|
|
| | PROPERTY, PLANT AND EQUIPMENT,
NET |
297,731 |
215,295 | |
GOODWILL |
2,558,041 |
715,005 | |
OTHER INTANGIBLES, NET |
2,504,124 |
1,531,760 | |
OTHER ASSETS |
144,591 |
90,795 | |
|
|
| | TOTAL ASSETS |
$ 7,292,583 |
$ 3,912,389 | |
|
|
| | LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
| |
CURRENT LIABILITIES: |
|
| |
Accounts payable and accrued
expenses |
$ 993,216 |
$ 710,835 | |
Other current liabilities |
128,562 |
24,993 | |
|
|
| | Total current liabilities |
$ 1,121,778 |
$ 735,828 | |
|
|
| | DEFERRED INCOME TAXES |
617,677 |
217,334 | |
LONG-TERM DEBT, LESS CURRENT PORTION,
NET |
3,424,329 |
1,045,801 | |
OTHER LIABILITIES |
89,208 |
110,097 | |
|
|
| | STOCKHOLDERS' EQUITY: |
|
| |
Total Endo Pharmaceuticals Holdings
Inc. stockholders' equity |
$ 1,977,690 |
$ 1,741,591 | |
|
|
| | Noncontrolling interests |
61,901 |
61,738 | |
|
|
| | Total stockholders' equity |
$ 2,039,591 |
$ 1,803,329 | |
|
|
| | TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
$ 7,292,583 |
$ 3,912,389 | |
|
|
| |
| | | | |
The following table presents unaudited condensed
consolidated statement of cash flow data for the
twelve months ended Dec. 31, 2011and
2010:
| |
| 2011
| 2010
| | OPERATING ACTIVITIES: |
|
| |
Consolidated net income |
$ 242,065 |
$ 287,020 | |
Adjustments to reconcile consolidated
net income to net cash provided by
operating activities: |
|
| |
Depreciation and amortization |
237,414 |
108,404 | |
Stock-based compensation |
46,013 |
22,909 | |
Amortization of debt issuance costs
and premium / discount |
32,788 |
22,013 | |
Asset impairment charges |
116,089 |
35,000 | |
Other |
(71,835) |
(65,372) | |
Changes in assets and liabilities
which provided cash: |
99,581 |
43,672 | |
|
|
| | Net cash provided by operating
activities |
702,115 |
453,646 | |
|
|
| | INVESTING ACTIVITIES: |
|
| |
Purchases of property, plant and
equipment, net |
(59,383) |
(19,891) | |
Proceeds from investments and sales
of trading securities |
85,025 |
231,125 | |
Acquisition, net of cash
acquired |
(2,393,397) |
(1,105,040) | |
Other |
(6,337) |
(2,517) | |
|
|
| | Net cash used in investing
activities |
(2,374,092) |
(896,323) | |
|
|
| | FINANCING ACTIVITIES: |
|
| |
Proceeds from debt, net of principal
payments |
1,891,584 |
279,955 | |
Deferred financing fees |
(82,504) |
(13,563) | |
Purchase of common stock |
(34,702) |
(58,974) | |
Distributions to noncontrolling
interests |
(53,997) |
(28,870) | |
Other |
32,300 |
21,881 | |
|
|
| | Net cash provided by financing
activities |
1,752,681 |
200,429 | |
|
|
| | Effect of foreign exchange
rate |
702 |
- | |
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS |
81,406 |
(242,248) | |
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD |
466,214 |
708,462 | |
|
|
| | CASH AND CASH EQUIVALENTS, END OF
PERIOD |
$ 547,620 |
$ 466,214 | |
|
|
| |
| | | | |
Safe Harbor Statement
This press release contains forward-looking
statements within the meaning of the Private
Securities Litigation Reform Act of 1995.
Statements including words such as
"believes," "expects,"
"anticipates," "intends,"
"estimates," "plan,"
"will," "may," "look
forward," "intend,"
"guidance," "future" or similar
expressions are forward-looking statements.
Because these statements reflect our current
views, expectations and beliefs concerning future
events, these forward-looking statements involve
risks and uncertainties. Investors should note that
many factors, as more fully described under the
caption "Risk Factors" in our Form 10-K,
Form 10-Q and Form 8-K filings with the Securities
and Exchange Commission and as otherwise enumerated
herein or therein, could affect our future
financial results and could cause our actual
results to differ materially from those expressed
in forward-looking statements contained in our
Annual Report on Form 10-K. The forward-looking
statements in this press release are qualified by
these risk factors. These are factors that,
individually or in the aggregate, could cause our
actual results to differ materially from expected
and historical results. We assume no obligation to
publicly update any forward-looking statements,
whether as a result of new information, future
developments or otherwise.
SOURCE Endo Pharmaceuticals
Investors/Media, Blaine Davis, +1-610-459-7158,
Investors, Jonathan Neely, +1-610-459-6645, Media,
Kevin Wiggins, +1-610-459-7281
|