JAZZ PHARMACEUTICALS PLC DUBLIN, Aug. 8, 2017 /PRNewswire/ --
Received FDA Approval of Vyxeos for the Treatment of Adults with Newly-Diagnosed Therapy-Related Acute Myeloid Leukemia (t-AML) or AML with Myelodysplasia-Related Changes (AML-MRC) in the U.S.
Jazz Pharmaceuticals plc (Nasdaq: JAZZ) today announced financial results for the second quarter of 2017 and affirmed financial guidance for 2017.
"Thus far, 2017 has been a highly productive year. We have executed on and delivered results of key clinical development programs, advanced multiple global regulatory efforts and received U.S. approval of Vyxeos for the treatment of adults with newly-diagnosed therapy-related AML or AML with myelodysplasia-related changes," said Bruce Cozadd, chairman and chief executive officer of Jazz Pharmaceuticals. "We continue to invest in our key products, product launches, R&D and corporate development activities to fuel our future growth and create long-term value."
GAAP net income for the second quarter of 2017 was $105.6 million, or $1.72 per diluted share, compared to $114.5 million, or $1.85 per diluted share, for the second quarter of 2016.
Adjusted net income for the second quarter of 2017 was $157.4 million, or $2.56 per diluted share, compared to $165.8 million, or $2.67 per diluted share, for the second quarter of 2016. Reconciliations of applicable GAAP reported to non-GAAP adjusted information are included at the end of this press release.
Financial Highlights
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
(In thousands,
except per share
amounts and
percentages) 2017 2016 Change 2017 2016 Change
---- ---- ------ ---- ---- ------
Total revenues $394,386 $381,161 3% $770,439 $717,171 7%
GAAP net income $105,604 $114,502 (8)% $192,115 $190,314 1%
Adjusted net
income $157,354 $165,804 (5)% $298,576 $300,372 (1)%
GAAP EPS $1.72 $1.85 (7)% $3.13 $3.05 3%
Adjusted EPS $2.56 $2.67 (4)% $4.87 $4.82 1%
Total Revenues
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
(In thousands) 2017 2016 2017 2016
---- ----
Xyrem(R) (sodium oxybate) oral
solution $298,026 $280,968 $570,352 $530,505
Erwinaze(R) /Erwinase(R)
(asparaginase Erwinia
chrysanthemi) 49,024 49,748 100,412 100,921
Defitelio(R) (defibrotide sodium) /
defibrotide 30,238 33,246 66,138 51,143
Prialt(R) (ziconotide) intrathecal
infusion 5,656 8,073 13,373 14,282
Other 6,711 7,075 13,058 16,175
----- ----- ------ ------
Product sales, net 389,655 379,110 763,333 713,026
Royalties and contract revenues 4,731 2,051 7,106 4,145
Total revenues $394,386 $381,161 $770,439 $717,171
======== ======== ======== ========
Net product sales increased 3% in the second quarter of 2017 compared to the same period in 2016 due to higher net product sales of Xyrem.
Xyrem net product sales increased 6% in the second quarter of 2017 compared to the same period in 2016.
Erwinaze/Erwinase net product sales in the second quarter of 2017 were consistent with net product sales in the same period in 2016. During the 2017 quarter, the company continued to experience supply challenges that resulted in temporary supply disruptions in certain markets, which the company expects will continue for the remainder of 2017.
Defitelio/defibrotide net product sales decreased 9% in the second quarter of 2017 compared to the same period in 2016 primarily due to inventory stocking in the second quarter of 2016, following the U.S. launch in that quarter, and the impact of unfavorable foreign exchange rates. The company continues to expect inter-quarter variability in Defitelio net sales given that veno-occlusive disease is an ultra-rare disease.
Operating Expenses
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
(In thousands,
except
percentages) 2017 2016 2017 2016
---- ---- ---- ----
GAAP:
Cost of product
sales $28,672 $23,980 $53,737 $47,419
Gross margin 92.6% 93.7% 93.0% 93.3%
Selling, general
and administrative $132,328 $122,618 $276,583 $251,383
% of total revenues 33.6% 32.2% 35.9% 35.1%
Research and
development $40,157 $39,091 $85,085 $70,343
% of total revenues 10.2% 10.3% 11.0% 9.8%
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
(In thousands,
except
percentages) 2017 2016 2017 2016
---- ---- ---- ----
Non-GAAP adjusted:
Cost of product
sales $27,145 $23,017 $50,964 $45,657
Gross margin 93.0% 93.9% 93.3% 93.6%
Selling, general
and administrative $111,454 $99,488 $229,904 $202,099
% of total revenues 28.3% 26.1% 29.8% 28.2%
Research and
development $35,298 $35,562 $76,084 $63,524
% of total revenues 9.0% 9.3% 9.9% 8.9%
Operating expenses changed over the prior year period primarily due to the following:
-- Selling, general and administrative (SG&A) expenses increased in the
second quarter of 2017 compared to the same period in 2016 on a GAAP and
on a non-GAAP adjusted basis due to higher headcount and other expenses
resulting from the expansion of the company's business, the company's
narcolepsy disease awareness campaign and pre-launch activities related
to the U.S. launch of Vyxeos(TM) (daunorubicin and cytarabine) liposome
for injection.
-- Research and development (R&D) expenses were consistent on a GAAP and on
a non-GAAP adjusted basis in the second quarter of 2017 compared to the
same period in 2016. The 2017 quarter included expenses related to
regulatory activities for Vyxeos, increased expenses for continued
investments in sleep-related R&D programs, an increase in headcount to
support these activities and a decrease in costs related to JZP-110
studies for excessive sleepiness associated with obstructive sleep apnea
and with narcolepsy due to the completion of three Phase 3 studies.
Cash Flow and Balance Sheet
As of June 30, 2017, cash, cash equivalents and investments were $319.2 million, and the outstanding principal balance of the company's long-term debt was $1.8 billion. During the six months ended June 30, 2017, the company repaid $350.0 million of borrowings under the company's revolving credit facility and used $30.9 million to repurchase approximately 230,000 ordinary shares under the company's share repurchase program at an average cost of $134.10 per ordinary share.
Recent Developments
In June 2017, the company presented positive efficacy results from its global multi-center studies evaluating Xyrem for the treatment of cataplexy in pediatric patients with narcolepsy and JZP-110 in adult patients with excessive sleepiness associated with obstructive sleep apnea and with narcolepsy.
In July 2017, the company entered into a license agreement with XL-protein GmbH (XLp) for the rights to develop, manufacture and commercialize products using XLp's PASylation® technology to extend the plasma half-life of selected asparaginase product candidates.
On August 3, 2017, the U.S. Food and Drug Administration (FDA) approved Vyxeos for the treatment of adults with newly-diagnosed therapy-related AML or AML with myelodysplasia-related changes.
2017 Financial Guidance
Jazz Pharmaceuticals is affirming its full year 2017 financial guidance as follows (in millions, except per share amounts and percentages):
Revenues $1,625-$1,700
Total net product sales $1,617-$1,692
-Xyrem net sales $1,200-$1,230
-Erwinaze/Erwinase net sales $205-$225
-Defitelio/defibrotide net sales $130-$150
-Vyxeos net sales $10-$20
GAAP gross margin % 93%
Non-GAAP adjusted gross margin %1,4 93%
GAAP SG&A expenses $521-$556
Non-GAAP adjusted SG&A expenses2,4 $440-$460
GAAP R&D expenses $185-$216
Non-GAAP adjusted R&D expenses3,4 $165-$180
GAAP net income per diluted share $6.55-$7.55
Non-GAAP adjusted net income per diluted share4 $10.70-$11.30
1. Excludes $5
million of
share-based
compensation
expense from
estimated
GAAP gross
margin.
2. Excludes $75-
$90 million
of share-
based
compensation
expense and
$6 million of
expenses
related to
certain legal
proceedings
and
restructuring
from
estimated
GAAP SG&A
expenses.
3. Excludes $20-
$25 million
of share-
based
compensation
expense and
$0-$11
million of
milestone
payments from
estimated
GAAP R&D
expenses.
4. See "Non-GAAP
Financial
Measures"
below.
Reconciliations
of non-GAAP
adjusted
guidance
measures are
included
above and in
the table
titled
"Reconciliation
of GAAP to
Non-GAAP
Adjusted 2017
Net Income
Guidance" at
the end of
this press
release.
Conference Call Details
Jazz Pharmaceuticals will host an investor conference call and live audio webcast today at 4:30 p.m. EDT (9:30 p.m. IST) to provide a business and financial update and discuss its 2017 second quarter results. The live webcast may be accessed from the Investors & Media section of the company's website at www.jazzpharmaceuticals.com. Please connect to the website prior to the start of the conference call to ensure adequate time for any software downloads that may be necessary. Investors may participate in the conference call by dialing +1 855 353 7924 in the U.S., or +1 503 343 6056 outside the U.S., and entering passcode 47565649.
A replay of the conference call will be available through August 15, 2017 by dialing +1 855 859 2056 in the U.S., or +1 404 537 3406 outside the U.S., and entering passcode 47565649. An archived version of the webcast will be available for at least one week in the Investors & Media section of the company's website at www.jazzpharmaceuticals.com.
About Jazz Pharmaceuticals plc
Jazz Pharmaceuticals plc (Nasdaq: JAZZ) is an international biopharmaceutical company focused on improving patients' lives by identifying, developing and commercializing meaningful products that address unmet medical needs. The company has a diverse portfolio of products and product candidates with a focus in the areas of sleep and hematology/oncology. In these areas, Jazz Pharmaceuticals markets Xyrem® (sodium oxybate) oral solution, Erwinaze® (asparaginase Erwinia chrysanthemi), Defitelio® (defibrotide sodium) and Vyxeos(TM) (daunorubicin and cytarabine) liposome for injection in the U.S. and markets Erwinase® and Defitelio® (defibrotide) in countries outside the U.S. For more information, please visit www.jazzpharmaceuticals.com.
Non-GAAP Financial Measures
To supplement Jazz Pharmaceuticals' financial results and guidance presented in accordance with U.S. generally accepted accounting principles (GAAP), the company uses certain non-GAAP (also referred to as adjusted or non-GAAP adjusted) financial measures in this press release and the accompanying tables. In particular, the company presents non-GAAP adjusted net income (and the related per share measure) and its line item components, as well as certain non-GAAP adjusted financial measures derived therefrom, including non-GAAP adjusted gross margin percentage and non-GAAP adjusted effective tax rate. Non-GAAP adjusted net income (and the related per share measure) and its line item components exclude from reported GAAP net income (and the related per share measure) and its line item components certain items, as detailed in the reconciliation tables that follow, and in the case of non-GAAP adjusted net income (and the related per share measure), adjust for the income tax effect of non-GAAP adjustments. In this regard, the components of non-GAAP adjusted net income, including non-GAAP cost of product sales, non-GAAP selling, general and administrative expenses and non-GAAP research and development expenses, are income statement line items prepared on the same basis as, and therefore components of, the overall non-GAAP adjusted net income measure.
The company believes that each of these non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors and analysts. In particular, the company believes that each of these non-GAAP financial measures, when considered together with the company's financial information prepared in accordance with GAAP, can enhance investors' and analysts' ability to meaningfully compare the company's results from period to period and to its forward-looking guidance, and to identify operating trends in the company's business. In addition, these non-GAAP financial measures are regularly used by investors and analysts to model and track the company's financial performance. Jazz Pharmaceuticals' management also regularly uses these non-GAAP financial measures internally to understand, manage and evaluate the company's business and to make operating decisions, and compensation of executives is based in part on certain of these non-GAAP financial measures. Because these non-GAAP financial measures are important internal measurements for Jazz Pharmaceuticals' management, the company also believes that these non-GAAP financial measures are useful to investors and analysts since these measures allow for greater transparency with respect to key financial metrics the company uses in assessing its own operating performance and making operating decisions.
These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures; should be read in conjunction with the company's condensed consolidated financial statements prepared in accordance with GAAP; have no standardized meaning prescribed by GAAP; and are not prepared under any comprehensive set of accounting rules or principles. In addition, from time to time in the future there may be other items that the company may exclude for purposes of its non-GAAP financial measures; and the company has ceased, and may in the future cease, to exclude items that it has historically excluded for purposes of its non-GAAP financial measures. Likewise, the company may determine to modify the nature of its adjustments to arrive at its non-GAAP financial measures. Because of the non-standardized definitions of non-GAAP financial measures, the non-GAAP financial measures as used by Jazz Pharmaceuticals in this press release and the accompanying tables have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements, including, but not limited to, statements related to Jazz Pharmaceuticals' future financial and operating results, including 2017 financial guidance, investments to fuel future growth and create long-term value, the company's expectation for continuing Erwinaze supply disruptions, and other statements that are not historical facts. These forward-looking statements are based on the company's current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties associated with: maintaining or increasing sales of and revenue from Xyrem, such as the potential U.S. introduction of a generic version of Xyrem before the entry dates specified in the company's settlements with certain companies that had filed abbreviated new drug applications with the FDA seeking approval to market a generic version of Xyrem or on terms that are different from those contemplated by the settlements; ongoing patent litigation and related proceedings; effectively commercializing Vyxeos and the company's other products and product candidates; the regulatory approval process; protecting and enhancing the company's intellectual property rights; delays or problems in the supply or manufacture of the company's products and product candidates; complying with applicable U.S. and non-U.S. regulatory requirements; government investigations and other actions; obtaining and maintaining appropriate pricing and reimbursement for the company's products; pharmaceutical product development and the uncertainty of clinical success; identifying and acquiring, in-licensing or developing additional products or product candidates, financing these transactions and successfully integrating acquired businesses; potential restrictions on the company's ability and flexibility to pursue share repurchases and future strategic opportunities as a result of its substantial outstanding debt obligations; the ability to achieve expected future financial performance and results; and other risks and uncertainties affecting the company, including those described from time to time under the caption "Risk Factors" and elsewhere in Jazz Pharmaceuticals plc's Securities and Exchange Commission filings and reports (Commission File No. 001-33500), including the company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 and future filings and reports by the company, including the company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017. Other risks and uncertainties of which the company is not currently aware may also affect the company's forward-looking statements and may cause actual results and timing of events to differ materially from those anticipated. The forward-looking statements herein are made only as of the date hereof or as of the dates indicated in the forward-looking statements, even if they are subsequently made available by the company on its website or otherwise. The company undertakes no obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made.
JAZZ PHARMACEUTICALS PLC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2017 2016 2017 2016
---- ---- ---- ----
Revenues:
Product sales, net $389,655 $379,110 $763,333 $713,026
Royalties and
contract revenues 4,731 2,051 7,106 4,145
----- ----- ----- -----
Total revenues 394,386 381,161 770,439 717,171
Operating expenses:
Cost of product
sales (excluding
amortization of
intangible assets) 28,672 23,980 53,737 47,419
Selling, general and
administrative 132,328 122,618 276,583 251,383
Research and
development 40,157 39,091 85,085 70,343
Acquired in-process
research and
development 2,000 - 2,000 8,750
Intangible asset
amortization 26,186 26,737 51,851 49,379
Total operating
expenses 229,343 212,426 469,256 427,274
------- ------- ------- -------
Income from
operations 165,043 168,735 301,183 289,897
Interest expense,
net (18,294) (12,121) (37,138) (24,313)
Foreign exchange
loss (5,427) - (6,891) (819)
------ --- ------ ----
Income before income
tax provision and
equity in loss of
investee 141,322 156,614 257,154 264,765
Income tax provision 35,515 42,112 64,675 74,451
Equity in loss of
investee 203 - 364 -
--- --- --- ---
Net income $105,604 $114,502 $192,115 $190,314
======== ======== ======== ========
Net income per ordinary share:
Basic $1.76 $1.89 $3.20 $3.13
===== ===== ===== =====
Diluted $1.72 $1.85 $3.13 $3.05
===== ===== ===== =====
Weighted-average
ordinary shares
used in per share
calculations -
basic 60,100 60,499 59,991 60,821
====== ====== ====== ======
Weighted-average
ordinary shares
used in per share
calculations -
diluted 61,463 62,043 61,321 62,329
====== ====== ====== ======
JAZZ PHARMACEUTICALS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, December 31,
2017
2016
----
ASSETS
Current assets:
Cash and
cash
equivalents $239,213 $365,963
Investments 80,000 60,000
Accounts
receivable,
net of
allowances 238,752 234,244
Inventories 39,658 34,051
Prepaid
expenses 28,433 24,501
Other
current
assets 36,448 29,310
Total
current
assets 662,504 748,069
Property
and
equipment,
net 136,626 107,490
Intangible
assets,
net 3,033,103 3,012,001
Goodwill 926,290 893,810
Deferred
tax
assets,
net, non-
current 20,158 15,060
Deferred
financing
costs 8,705 9,737
Other non-
current
assets 16,638 14,060
------ ------
Total
assets $4,804,024 $4,800,227
========== ==========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Accounts
payable $28,529 $22,415
Accrued
liabilities 169,701 193,268
Current
portion of
long-term
debt 36,094 36,094
Income
taxes
payable 7,494 4,506
Deferred
revenue 8,575 1,123
-----
Total
current
liabilities 250,393 257,406
Deferred
revenue,
non-
current 20,470 2,601
Long-term
debt, less
current
portion 1,635,800 1,993,531
Deferred
tax
liability,
net, non-
current 551,639 556,733
Other non-
current
liabilities 144,690 112,617
Total
shareholders'
equity 2,201,032 1,877,339
Total
liabilities
and
shareholders'
equity $4,804,024 $4,800,227
========== ==========
JAZZ PHARMACEUTICALS PLC
SUMMARY OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
--------
2017 2016
---- ----
Net cash
provided by
operating
activities $299,631 $278,668
Net cash used
in investing
activities (33,725) (218,262)
Net cash used
in financing
activities (396,155) (182,193)
Effect of
exchange rates
on cash and
cash
equivalents 3,499 968
----- ---
Net decrease in
cash and cash
equivalents $(126,750) $(120,819)
========= =========
JAZZ PHARMACEUTICALS PLC
RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2017 2016 2017 2016
---- ---- ---- ----
GAAP reported net
income $105,604 $114,502 $192,115 $190,314
Intangible asset
amortization 26,186 26,737 51,851 49,379
Share-based
compensation expense 27,260 25,433 52,453 49,616
Upfront and milestone
payments - - - 8,750
Transaction and
integration related
costs - 2,189 - 2,189
Expenses related to
certain legal
proceedings and
restructuring - - 6,000 6,060
Non-cash interest
expense 5,764 5,414 11,379 10,776
Income tax effect of
adjustments (1) (7,460) (8,471) (15,222) (16,712)
Non-GAAP adjusted
net income $157,354 $165,804 $298,576 $300,372
======== ======== ======== ========
GAAP reported net
income per diluted
share $1.72 $1.85 $3.13 $3.05
===== ===== ===== =====
Non-GAAP adjusted
net income per
diluted share $2.56 $2.67 $4.87 $4.82
===== ===== ===== =====
Weighted-average
ordinary shares used
in diluted per share
calculations 61,463 62,043 61,321 62,329
====== ====== ====== ======
(1) The income
tax effect
of the
adjustments
between
GAAP
reported
and non-
GAAP
adjusted
net income
takes into
account the
tax
treatment
and related
tax rate(s)
that apply
to each
adjustment
in the
applicable
tax
jurisdiction(s).
JAZZ PHARMACEUTICALS PLC
RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE ITEMS AND OTHER INFORMATION
(In thousands, except per share amounts and percentages)
(Unaudited)
Three Months Ended
------------------
June 30, 2017 June 30, 2016
-------------
GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP
Reported Adjusted Reported Adjusted
-------- -------- -------- --------
Total revenues $394,386 $ - $394,386 $381,161 $ - $381,161
Cost of product
sales (excluding
amortization of
intangible assets) 28,672 (1,527) (a) 27,145 23,980 (963) (a) 23,017
Selling, general
and administrative 132,328 (20,874) (b) 111,454 122,618 (23,130) (b) 99,488
Research and
development 40,157 (4,859) (c) 35,298 39,091 (3,529) (c) 35,562
Acquired in-
process research
and development 2,000 - 2,000 - - -
Intangible asset
amortization 26,186 (26,186) - 26,737 (26,737) -
Interest expense,
net 18,294 (5,764) (d) 12,530 12,121 (5,414) (d) 6,707
Foreign currency
loss 5,427 - 5,427 - - -
Income before
income tax
provision and
equity in loss of
investee 141,322 59,210 (e) 200,532 156,614 59,773 (e) 216,387
Income tax
provision 35,515 7,460 (f) 42,975 42,112 8,471 (f) 50,583
Effective tax rate
(g) 25.1% 21.4% 26.9% 23.4%
Equity in loss of
investee 203 - 203 - - -
Net income $105,604 $51,750 (h) $157,354 $114,502 $51,302 (h) $165,804
Net income per
diluted share $1.72 $2.56 $1.85 $2.67
JAZZ PHARMACEUTICALS PLC
RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE ITEMS AND OTHER INFORMATION
(In thousands, except per share amounts and percentages)
(Unaudited)
Six Months Ended
----------------
June 30, 2017 June 30, 2016
-------------
GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP
Reported Adjusted Reported Adjusted
-------- -------- -------- --------
Total revenues $770,439 $ - $770,439 $717,171 $ - $717,171
Cost of product
sales (excluding
amortization of
intangible assets) 53,737 (2,773) (i) 50,964 47,419 (1,762) (i) 45,657
Selling, general
and administrative 276,583 (46,679) (j) 229,904 251,383 (49,284) (j) 202,099
Research and
development 85,085 (9,001) (k) 76,084 70,343 (6,819) (k) 63,524
Acquired in-
process research
and development 2,000 - 2,000 8,750 (8,750) -
Intangible asset
amortization 51,851 (51,851) - 49,379 (49,379) -
Interest expense,
net 37,138 (11,379) (d) 25,759 24,313 (10,776) (d) 13,537
Foreign currency
loss 6,891 - 6,891 819 - 819
Income before
income tax
provision and
equity in loss of
investee 257,154 121,683 (l) 378,837 264,765 126,770 (l) 391,535
Income tax
provision 64,675 15,222 (f) 79,897 74,451 16,712 (f) 91,163
Effective tax rate
(g) 25.2% 21.1% 28.1% 23.3%
Equity in loss of
investee 364 - 364 - - -
Net income $192,115 $106,461 (m) $298,576 $190,314 $110,058 (m) $300,372
Net income per
diluted share $3.13 $4.87 $3.05 $4.82
Explanation of Adjustments and
Certain Line Items (in
thousands):
(a) Share-based
compensation
expense of
$1,527 and
$963 for the
three months
ended June
30, 2017 and
2016,
respectively.
(b) Share-based
compensation
expense of
$20,874 and
$20,949 and
transaction
and
integration
related
costs of $0
and $2,181
for the
three months
ended June
30, 2017 and
2016,
respectively.
(c) Share-based
compensation
expense of
$4,859 and
$3,521 and
transaction
and
integration
related
costs of $0
and $8 for
the three
months ended
June 30,
2017 and
2016,
respectively.
(d) Non-cash
interest
expense
associated
with debt
discount and
debt
issuance
costs for
the
respective
three- and
six-month
periods.
(e) Sum of
adjustments
(a) through
(d) plus the
adjustment
for
intangible
asset
amortization
for the
respective
three-month
period.
(f) Income tax
effect of
the
adjustments
between GAAP
reported and
non-GAAP
adjusted net
income takes
into account
the tax
treatment
and related
tax rate(s)
that apply
to each
adjustment
in the
applicable
tax
jurisdiction(s)
for the
respective
three- and
six-month
periods.
(g) Income tax
provision
divided by
income
before
income tax
provision
and equity
in loss of
investee for
the
respective
three- and
six-month
period.
(h) Net of
adjustments
(e) and (f)
for the
respective
three-month
period.
(i) Share-based
compensation
expense of
$2,773 and
$1,652 and
expenses
related to
certain
legal
proceedings
and
restructuring
of $0 and
$110 for the
six months
ended June
30, 2017 and
2016,
respectively.
(j) Share-based
compensation
expense of
$40,679 and
$41,153,
expenses
related to
certain
legal
proceedings
and
restructuring
of $6,000
and $5,950
and
transaction
and
integration
related
costs of $0
and $2,181
for the six
months ended
June 30,
2017 and
2016,
respectively.
(k) Share-based
compensation
expense of
$9,001 and
$6,811 and
transaction
and
integration
related
costs of $0
and $8 for
the six
months ended
June 30,
2017 and
2016,
respectively.
(l) Sum of
adjustments
(i), (j),
(k) and (d)
plus the
adjustments
for acquired
in-process
research and
development
expenses and
intangible
asset
amortization,
as
applicable,
for the
respective
six-month
period.
(m) Net of
adjustments
(l) and (f)
for the
respective
six-month
period.
JAZZ PHARMACEUTICALS PLC
RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED 2017 NET INCOME
GUIDANCE
(In millions, except per share amounts)
(Unaudited)
GAAP net income $400 - $460
Intangible asset amortization 130 - 165
Share-based compensation
expense 100 - 120
Milestone payments 0 - 11
Expenses related to certain
legal proceedings and
restructuring 6
Non-cash interest expense 20 - 25
Income tax effect of
adjustments (40) - (60)
Non-GAAP adjusted net income $650 - $690
===========
GAAP net income per diluted
share $6.55-$7.55
===========
Non-GAAP adjusted net income
per diluted share $10.70-$11.30
=============
Weighted-average ordinary
shares used in per share
calculations 61
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SOURCE Jazz Pharmaceuticals plc
