Amneal Reports Fourth Quarter and Full Year 2022 Financial Results
Amneal Pharmaceuticals (AMRX) reported Q4 2022 net revenue of $610 million, up 14% year-over-year, driven by new Generic launches and Specialty products. Despite a net loss of $4 million for Q4, adjusted net income was $71 million, highlighting operational improvements. For the full year, revenue reached $2.21 billion, a 6% increase, but the company faced a net loss of $130 million, largely due to a $263 million anti-trust settlement. For 2023, Amneal guides net revenue of $2.25 to $2.35 billion and adjusted EBITDA of $500 to $530 million.
- Q4 2022 net revenue increased by 14% to $610 million.
- Adjusted net income for Q4 2022 was $71 million.
- Full-year 2022 revenue rose by 6% to $2.21 billion.
- Adjusted EBITDA for Q4 2022 was $154 million, up 26% year-over-year.
- 2023 guidance projects net revenue of $2.25 to $2.35 billion.
- Full-year 2022 net loss increased to $130 million from net income of $11 million in 2021.
- Diluted loss per share for 2022 was $0.86, a decline from $0.07 earnings per share in 2021.
- Adjusted diluted EPS decreased by 13% in 2022.
‒ Q4 2022 Net Revenue of
‒ Q4 2022 Adjusted Net Income of
‒ Full Year 2022 Net Revenue of
‒ Full Year 2022 Adjusted Net Income of
‒ Provides 2023 Financial Guidance of
“2022 was a year of solid execution and very good progress in advancing key strategic priorities marked by a robust cadence of new innovations in Generics, scaling our injectables portfolio, advancing our Specialty pipeline and entering the
Net revenue in the fourth quarter of 2022 was
Net revenue for the year ended
(1) |
See “Non-GAAP Financial Measures” below. |
2023 Financial Guidance
|
Full Year 2023 Guidance |
Net revenue |
|
Adjusted EBITDA (1) |
|
Adjusted diluted EPS (2) |
|
Operating cash flow (3) |
|
Capital expenditures |
|
Weighted average diluted shares outstanding (4) |
Approximately 307 million |
(1) |
Includes |
(2) |
Accounts for |
(3) |
Represents cash provided by operating activities. Guidance does not contemplate one-time and non-recurring items such as legal settlements and other discrete items. |
(4) |
Assumes the weighted average diluted shares outstanding of class A and class B common stock under the if-converted method. |
Amneal’s 2023 estimates are based on management’s current expectations, including with respect to prescription trends, pricing levels, the timing of future product launches, the costs incurred and benefits realized of restructuring activities, and our long-term strategy. The Company’s financial statements are prepared in accordance with accounting principles generally accepted in
Conference Call Information
Amneal will host a conference call and live webcast at
Cautionary Statement on Forward-Looking Statements
Certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements (as defined in the
The reader is cautioned not to rely on these forward-looking statements. These forward-looking statements are based on current expectations of future events, including with respect to future market conditions, company performance and financial results, operational investments, business prospects, new strategies and growth initiatives, the competitive environment, and other events. If the underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company.
Such risks and uncertainties include, but are not limited to: our ability to successfully develop, license, acquire and commercialize new products on a timely basis; the competition we face in the pharmaceutical industry from brand and generic drug product companies, and the impact of that competition on our ability to set prices; our ability to obtain exclusive marketing rights for our products; our ability to manage our growth through acquisitions and otherwise; our revenues are derived from the sales of a limited number of products, a substantial portion of which are through a limited number of customers; the continuing trend of consolidation of certain customer groups; our dependence on third-party suppliers and distributors for raw materials for our products and certain finished goods; our substantial amount of indebtedness and our ability to generate sufficient cash to service our indebtedness in the future, and the impact of interest rate fluctuations on such indebtedness; our ability to secure satisfactory terms when negotiating a refinancing or other new indebtedness; our dependence on third-party agreements for a portion of our product offerings; legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives; risks related to federal regulation of arrangements between manufacturers of branded and generic products; our reliance on certain licenses to proprietary technologies from time to time; the significant amount of resources we expend on research and development; the risk of product liability and other claims against us by consumers and other third parties; risks related to changes in the regulatory environment, including
Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted earnings per share, adjusted gross profit, adjusted gross margin, adjusted operating income, adjusted cost of goods sold, adjusted selling general and administrative expense, and adjusted research and development expense, which are intended as supplemental measures of the Company’s performance that are not required by or presented in accordance with GAAP. The calculation of non-GAAP adjusted diluted earnings per share assumes the conversion of all outstanding shares of class B Common Stock to shares of class A Common Stock under the if-converted method.
Management uses these non-GAAP measures internally to evaluate and manage the Company’s operations and to better understand its business because they facilitate a comparative assessment of the Company’s operating performance relative to its performance based on results calculated under GAAP. These non-GAAP measures also isolate the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company’s operations and underlying operational performance. The compensation committee of the Company’s board of directors also uses certain of these measures to evaluate management’s performance and set its compensation. The Company believes that these non-GAAP measures also provide useful information to investors regarding certain financial and business trends relating to the Company’s financial condition and operating results facilitates an evaluation of the financial performance of the Company and its operations on a consistent basis. Providing this information therefore allows investors to make independent assessments of the Company’s financial performance, results of operations and trends while viewing the information through the eyes of management.
As previously disclosed, beginning in the first quarter of 2022, we no longer exclude research and development milestone expenses related to license and collaboration agreements from our non-GAAP financial measures and our line item components, including adjusted research and development, adjusted EBITDA, adjusted operating income, adjusted net income and adjusted earnings per share. Prior period adjusted results have been revised to reflect this change. Refer to our Form 8-K filed with the
These non-GAAP measures are subject to limitations. The non-GAAP measures presented in this release may not be comparable to similarly titled measures used by other companies because other companies may not calculate one or more in the same manner. Additionally, the non-GAAP performance measures exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements; do not reflect changes in, or cash requirements for, working capital needs; and do not reflect interest expense, or the requirements necessary to service interest or principal payments on debt. Further, our historical adjusted results are not intended to project our adjusted results of operations or financial position for any future period. To compensate for these limitations, management presents and considers these non-GAAP measures in conjunction with the Company’s GAAP results; no non-GAAP measure should be considered in isolation from or as alternatives to net income, diluted earnings per share, gross profit, gross margin, operating income, cost of goods sold, selling general and administrative expense, and research and development expense or any other measure determined in accordance with GAAP. Readers should review the reconciliations included below, and should not rely on any single financial measure to evaluate the Company’s business.
A reconciliation of each historical non-GAAP measure to the most directly comparable GAAP measure is set forth below.
Consolidated Statements of Operations (Unaudited; In thousands, except per share amounts) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net revenue |
$ |
609,759 |
|
|
$ |
536,896 |
|
|
$ |
2,212,304 |
|
|
$ |
2,093,669 |
|
Cost of goods sold |
|
389,046 |
|
|
|
348,490 |
|
|
|
1,416,485 |
|
|
|
1,302,004 |
|
Cost of goods sold impairment charges |
|
5,325 |
|
|
|
22,004 |
|
|
|
11,111 |
|
|
|
22,692 |
|
Gross profit |
|
215,388 |
|
|
|
166,402 |
|
|
|
784,708 |
|
|
|
768,973 |
|
Selling, general and administrative |
|
102,158 |
|
|
|
97,224 |
|
|
|
399,700 |
|
|
|
365,504 |
|
Research and development |
|
41,907 |
|
|
|
51,874 |
|
|
|
195,688 |
|
|
|
201,847 |
|
In-process research and development impairment charges |
|
12,970 |
|
|
|
— |
|
|
|
12,970 |
|
|
|
710 |
|
Intellectual property legal development expenses |
|
1,362 |
|
|
|
1,142 |
|
|
|
4,358 |
|
|
|
7,716 |
|
Acquisition, transaction-related and integration expenses |
|
(5 |
) |
|
|
836 |
|
|
|
709 |
|
|
|
8,055 |
|
Restructuring and other charges |
|
109 |
|
|
|
1,069 |
|
|
|
1,421 |
|
|
|
1,857 |
|
Change in fair value of contingent consideration |
|
2,226 |
|
|
|
(100 |
) |
|
|
731 |
|
|
|
200 |
|
(Insurance recoveries) charges for property losses and associated expenses, net |
|
— |
|
|
|
(2,818 |
) |
|
|
(1,911 |
) |
|
|
5,368 |
|
Charges related to legal matters, net |
|
20,094 |
|
|
|
6,000 |
|
|
|
269,930 |
|
|
|
25,000 |
|
Other operating income |
|
(1,465 |
) |
|
|
— |
|
|
|
(3,960 |
) |
|
|
— |
|
Operating (loss) income |
|
36,032 |
|
|
|
11,175 |
|
|
|
(94,928 |
) |
|
|
152,716 |
|
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(47,028 |
) |
|
|
(33,957 |
) |
|
|
(158,377 |
) |
|
|
(136,325 |
) |
Foreign currency exchange gain (loss), net |
|
569 |
|
|
|
(170 |
) |
|
|
(12,364 |
) |
|
|
(355 |
) |
Loss on refinancing - revolving credit facility |
|
— |
|
|
|
— |
|
|
|
(291 |
) |
|
|
— |
|
Other income, net |
|
2,772 |
|
|
|
6,633 |
|
|
|
17,833 |
|
|
|
15,330 |
|
Total other expense, net |
|
(43,687 |
) |
|
|
(27,494 |
) |
|
|
(153,199 |
) |
|
|
(121,350 |
) |
(Loss) income before income taxes |
|
(7,655 |
) |
|
|
(16,319 |
) |
|
|
(248,127 |
) |
|
|
31,366 |
|
(Benefit from) provision for income taxes |
|
(1,797 |
) |
|
|
4,140 |
|
|
|
6,662 |
|
|
|
11,196 |
|
Net (loss) income |
|
(5,858 |
) |
|
|
(20,459 |
) |
|
|
(254,789 |
) |
|
|
20,170 |
|
Less: Net loss (income) attributable to non-controlling interests |
|
1,525 |
|
|
|
14,082 |
|
|
|
125,241 |
|
|
|
(9,546 |
) |
Net (loss) income attributable to |
|
(4,333 |
) |
|
|
(6,377 |
) |
|
|
(129,548 |
) |
|
|
10,624 |
|
Accretion of redeemable non-controlling interest |
|
— |
|
|
|
— |
|
|
|
(438 |
) |
|
|
— |
|
Net (loss) income attributable to |
$ |
(4,333 |
) |
|
$ |
(6,377 |
) |
|
$ |
(129,986 |
) |
|
$ |
10,624 |
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per share attributable to |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.03 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.86 |
) |
|
$ |
0.07 |
|
Diluted |
$ |
(0.03 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.86 |
) |
|
$ |
0.07 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
151,476 |
|
|
|
149,369 |
|
|
|
150,944 |
|
|
|
148,922 |
|
Diluted |
|
151,476 |
|
|
|
149,369 |
|
|
|
150,944 |
|
|
|
151,821 |
|
Condensed Consolidated Balance Sheets (Unaudited; In thousands) |
|||||
|
|
|
|
||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
25,976 |
|
$ |
247,790 |
Restricted cash |
|
9,251 |
|
|
8,949 |
Trade accounts receivable, net |
|
741,791 |
|
|
662,583 |
Inventories |
|
530,735 |
|
|
489,389 |
Prepaid expenses and other current assets |
|
103,565 |
|
|
110,218 |
Related party receivables |
|
500 |
|
|
1,179 |
Total current assets |
|
1,411,818 |
|
|
1,520,108 |
Property, plant and equipment, net |
|
469,815 |
|
|
514,158 |
|
|
598,853 |
|
|
593,017 |
Intangible assets, net |
|
1,096,093 |
|
|
1,166,922 |
Operating lease right-of-use assets |
|
38,211 |
|
|
39,899 |
Operating lease right-of-use assets - related party |
|
17,910 |
|
|
20,471 |
Financing lease right-of-use assets |
|
63,424 |
|
|
64,475 |
Other assets |
|
103,217 |
|
|
20,614 |
Total assets |
$ |
3,799,341 |
|
$ |
3,939,664 |
Liabilities and Stockholders’ Equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable and accrued expenses |
$ |
538,199 |
|
$ |
525,345 |
Current portion of liabilities for legal matters |
|
107,483 |
|
|
58,000 |
Revolving credit facility |
|
60,000 |
|
|
— |
Current portion of long-term debt, net |
|
29,961 |
|
|
30,614 |
Current portion of operating lease liabilities |
|
8,321 |
|
|
9,686 |
Current portion of operating and financing lease liabilities - related party |
|
2,869 |
|
|
2,636 |
Current portion of financing lease liabilities |
|
3,488 |
|
|
3,101 |
Related party payables - short term |
|
2,479 |
|
|
47,861 |
Total current liabilities |
|
752,800 |
|
|
677,243 |
Long-term debt, net |
|
2,591,981 |
|
|
2,680,053 |
Note payable - related party |
|
39,706 |
|
|
38,038 |
Operating lease liabilities |
|
32,126 |
|
|
32,894 |
Operating lease liabilities - related party |
|
15,914 |
|
|
18,783 |
Financing lease liabilities |
|
60,769 |
|
|
60,251 |
Related party payable - long term |
|
9,649 |
|
|
9,619 |
Other long-term liabilities |
|
87,468 |
|
|
38,903 |
Total long-term liabilities |
|
2,837,613 |
|
|
2,878,541 |
Redeemable non-controlling interests |
|
24,949 |
|
|
16,907 |
Total stockholders' equity |
|
183,979 |
|
|
366,973 |
Total liabilities and stockholders' equity |
$ |
3,799,341 |
|
$ |
3,939,664 |
Consolidated Statements of Cash Flows (Unaudited; In thousands) |
|||||||
|
Years Ended |
||||||
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities: |
|
|
|
||||
Net (loss) income |
$ |
(254,789 |
) |
|
$ |
20,170 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
240,175 |
|
|
|
233,406 |
|
Unrealized foreign currency loss (gain) |
|
15,190 |
|
|
|
175 |
|
Amortization of debt issuance costs and discount |
|
8,595 |
|
|
|
9,203 |
|
Loss on refinancing - revolving credit facility |
|
291 |
|
|
|
— |
|
Intangible asset impairment charges |
|
24,081 |
|
|
|
23,402 |
|
Change in fair value of contingent consideration |
|
731 |
|
|
|
200 |
|
Stock-based compensation |
|
31,847 |
|
|
|
28,412 |
|
Inventory provision |
|
51,096 |
|
|
|
54,660 |
|
Insurance recoveries for property and equipment losses |
|
(1,000 |
) |
|
|
(5,000 |
) |
Non-cash property losses |
|
— |
|
|
|
5,152 |
|
Other operating charges and credits, net |
|
8,828 |
|
|
|
5,633 |
|
Changes in assets and liabilities: |
|
|
|
||||
Trade accounts receivable, net |
|
(79,717 |
) |
|
|
(23,621 |
) |
Inventories |
|
(102,396 |
) |
|
|
(49,015 |
) |
Prepaid expenses, other current assets and other assets |
|
9,882 |
|
|
|
(21,981 |
) |
Related party receivables |
|
646 |
|
|
|
7,311 |
|
Accounts payable, accrued expenses and other liabilities |
|
109,568 |
|
|
|
(43,932 |
) |
Related party payables |
|
2,072 |
|
|
|
(2,355 |
) |
Net cash provided by operating activities |
|
65,100 |
|
|
|
241,820 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of property, plant and equipment |
|
(46,407 |
) |
|
|
(47,728 |
) |
Acquisition of intangible assets |
|
(41,800 |
) |
|
|
(1,700 |
) |
Deposits for future acquisition of property, plant, and equipment |
|
(2,388 |
) |
|
|
(3,211 |
) |
Acquisitions of businesses, net of cash acquired |
|
(84,714 |
) |
|
|
(146,543 |
) |
Proceeds from insurance recoveries for property and equipment losses |
|
1,000 |
|
|
|
5,000 |
|
Net cash used in investing activities |
|
(174,309 |
) |
|
|
(194,182 |
) |
Cash flows from financing activities: |
|
|
|
||||
Payments of deferred financing and refinancing costs |
|
(1,663 |
) |
|
|
— |
|
Payments of principal on debt, revolving credit facility, financing leases and other |
|
(123,272 |
) |
|
|
(78,086 |
) |
Borrowings on revolving credit facility |
|
85,000 |
|
|
|
— |
|
Proceeds from exercise of stock options |
|
662 |
|
|
|
853 |
|
Employee payroll tax withholding on restricted stock unit vesting |
|
(3,571 |
) |
|
|
(2,664 |
) |
Payments of deferred consideration for acquisitions - related party |
|
(44,498 |
) |
|
|
— |
|
Acquisition of redeemable non-controlling interests |
|
(1,722 |
) |
|
|
— |
|
Tax distributions to non-controlling interest |
|
(17,556 |
) |
|
|
(57,132 |
) |
Payments of principal on financing lease - related party |
|
— |
|
|
|
(93 |
) |
Repayment of related party note |
|
— |
|
|
|
(1,000 |
) |
Net cash used in financing activities |
|
(106,620 |
) |
|
|
(138,122 |
) |
Effect of foreign exchange rate on cash |
|
(5,683 |
) |
|
|
102 |
|
Net decrease in cash, cash equivalents, and restricted cash |
|
(221,512 |
) |
|
|
(90,382 |
) |
Cash, cash equivalents, and restricted cash - beginning of period |
|
256,739 |
|
|
|
347,121 |
|
Cash, cash equivalents, and restricted cash - end of period |
$ |
35,227 |
|
|
$ |
256,739 |
|
Cash and cash equivalents - end of period |
$ |
25,976 |
|
|
$ |
247,790 |
|
Restricted cash - end of period |
$ |
9,251 |
|
|
$ |
8,949 |
|
Cash, cash equivalents, and restricted cash - end of period |
$ |
35,227 |
|
|
$ |
256,739 |
|
Non-GAAP Reconciliations (Unaudited, In thousands)
Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (1) |
||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
Net (loss) income |
$ |
(5,858 |
) |
|
$ |
(20,459 |
) |
|
$ |
(254,789 |
) |
|
$ |
20,170 |
Adjusted to add (deduct): |
|
|
|
|
|
|
|
|||||||
Interest expense, net |
|
47,028 |
|
|
|
33,957 |
|
|
|
158,377 |
|
|
|
136,325 |
(Benefit from) provision for income taxes |
|
(1,797 |
) |
|
|
4,140 |
|
|
|
6,662 |
|
|
|
11,196 |
Depreciation and amortization |
|
61,056 |
|
|
|
61,183 |
|
|
|
240,175 |
|
|
|
233,406 |
EBITDA (Non-GAAP) |
$ |
100,429 |
|
|
$ |
78,821 |
|
|
$ |
150,425 |
|
|
$ |
401,097 |
Adjusted to add (deduct): |
|
|
|
|
|
|
|
|||||||
Stock-based compensation expense |
|
7,831 |
|
|
|
7,742 |
|
|
|
31,847 |
|
|
|
28,412 |
Acquisition, site closure, and idle facility expenses (2) |
|
3,452 |
|
|
|
6,027 |
|
|
|
15,682 |
|
|
|
20,003 |
Restructuring and other charges |
|
109 |
|
|
|
— |
|
|
|
1,378 |
|
|
|
788 |
Loss on refinancing |
|
— |
|
|
|
— |
|
|
|
291 |
|
|
|
— |
Inventory related charges |
|
— |
|
|
|
16 |
|
|
|
— |
|
|
|
261 |
Charges related to legal matters, net (3) |
|
20,094 |
|
|
|
6,000 |
|
|
|
269,930 |
|
|
|
25,000 |
Asset impairment charges (4) |
|
18,551 |
|
|
|
22,353 |
|
|
|
26,909 |
|
|
|
24,105 |
Foreign exchange (gain) loss |
|
(569 |
) |
|
|
170 |
|
|
|
12,364 |
|
|
|
355 |
Change in fair value of contingent consideration |
|
2,226 |
|
|
|
(100 |
) |
|
|
731 |
|
|
|
200 |
(Insurance recoveries) charges for property losses and associated expenses, net (5) |
|
— |
|
|
|
(2,818 |
) |
|
|
(1,911 |
) |
|
|
5,368 |
Regulatory approval milestone |
|
— |
|
|
|
— |
|
|
|
5,000 |
|
|
|
— |
Other |
|
1,909 |
|
|
|
3,592 |
|
|
|
1,464 |
|
|
|
6,680 |
Adjusted EBITDA (Non-GAAP) |
$ |
154,032 |
|
|
$ |
121,803 |
|
|
$ |
514,110 |
|
|
$ |
512,269 |
Non-GAAP Reconciliations (Unaudited; In thousands, except per share amounts)
Reconciliation of Net (Loss) Income to Adjusted Net Income and Calculation of Adjusted Diluted Earnings per Share (1) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net (loss) income |
$ |
(5,858 |
) |
|
$ |
(20,459 |
) |
|
$ |
(254,789 |
) |
|
$ |
20,170 |
|
Adjusted to add (deduct): |
|
|
|
|
|
|
|
||||||||
Non-cash interest |
|
1,885 |
|
|
|
2,123 |
|
|
|
7,715 |
|
|
|
8,355 |
|
GAAP (benefit from) provision for income taxes |
|
(1,797 |
) |
|
|
4,140 |
|
|
|
6,662 |
|
|
|
11,196 |
|
Amortization |
|
42,851 |
|
|
|
41,543 |
|
|
|
164,997 |
|
|
|
164,069 |
|
Stock-based compensation expense |
|
7,831 |
|
|
|
7,742 |
|
|
|
31,847 |
|
|
|
28,412 |
|
Acquisition, site closure expenses, and idle facility expenses (2) |
|
3,452 |
|
|
|
6,027 |
|
|
|
15,682 |
|
|
|
20,003 |
|
Restructuring and other charges |
|
109 |
|
|
|
— |
|
|
|
1,378 |
|
|
|
788 |
|
Loss on refinancing |
|
— |
|
|
|
— |
|
|
|
291 |
|
|
|
— |
|
Inventory related charges |
|
— |
|
|
|
16 |
|
|
|
— |
|
|
|
261 |
|
Charges related to legal matters, including interest, net (3) |
|
21,564 |
|
|
|
6,000 |
|
|
|
273,226 |
|
|
|
25,000 |
|
Asset impairment charges (4) |
|
18,485 |
|
|
|
22,353 |
|
|
|
26,843 |
|
|
|
24,105 |
|
Regulatory approval milestone |
|
— |
|
|
|
— |
|
|
|
5,000 |
|
|
|
— |
|
Change in fair value of contingent consideration |
|
2,226 |
|
|
|
(100 |
) |
|
|
731 |
|
|
|
200 |
|
(Insurance recoveries) charges for property losses and associated expenses (5) |
|
— |
|
|
|
(2,818 |
) |
|
|
(1,911 |
) |
|
|
5,368 |
|
Other |
|
1,910 |
|
|
|
3,592 |
|
|
|
1,607 |
|
|
|
6,680 |
|
Provision for income taxes (6) |
|
(15,297 |
) |
|
|
(18,193 |
) |
|
|
(56,450 |
) |
|
|
(70,199 |
) |
Net income attributable to non-controlling interests not associated with our class B common stock |
|
(5,958 |
) |
|
|
(1,191 |
) |
|
|
(15,121 |
) |
|
|
(6,582 |
) |
Adjusted net income (Non-GAAP) |
$ |
71,403 |
|
|
$ |
50,775 |
|
|
$ |
207,708 |
|
|
$ |
237,826 |
|
Weighted average diluted shares outstanding (Non-GAAP)(7) |
|
305,145 |
|
|
|
304,429 |
|
|
|
304,598 |
|
|
|
303,937 |
|
Adjusted diluted earnings per share (Non-GAAP) |
$ |
0.23 |
|
|
$ |
0.17 |
|
|
$ |
0.68 |
|
|
$ |
0.78 |
|
Non-GAAP Reconciliations (Unaudited)
Explanations for Reconciliations of Net (Loss) Income to EBITDA and Adjusted EBITDA and Net (Loss) Income to Adjusted Net Income and Calculation of Adjusted Diluted Earnings per Share |
||||
(1) |
Beginning in the first quarter of 2022, we no longer exclude research and development milestone expenses related to license and collaboration agreements from our non-GAAP financial measures and our line item components, including adjusted research and development, adjusted EBITDA, adjusted operating income, adjusted net income and adjusted diluted earnings per share. Prior period adjusted results have been revised to reflect this change. Refer to our Form 8-K filed on |
|||
|
|
|
|
|
(2) |
Acquisition, site closure, and idle facility expenses for the three months ended |
|||
|
|
|
|
|
(3) |
For the three months ended |
|||
|
|
|
|
|
(4) |
Asset impairment charges for the three months and years ended |
|||
|
|
|
|
|
(5) |
(Insurance recoveries) charges for property losses and associated expenses, net for the year ended |
|||
|
|
|
|
|
(6) |
The Non-GAAP effective tax rates for the three months ended |
|||
|
|
|||
(7) |
Weighted average diluted shares outstanding consisted of class A common stock and class B common stock under the if-converted method. |
Generics Segment Reconciliation of GAAP to Non-GAAP Operating Results (1) (Unaudited; Table in thousands) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||||||
|
|
As Reported |
|
Adjustments |
|
Non-GAAP |
|
As Reported |
|
Adjustments |
|
Non-GAAP |
||||||||||||
Net revenue |
|
$ |
399,165 |
|
|
$ |
— |
|
|
$ |
399,165 |
|
|
$ |
346,266 |
|
|
$ |
— |
|
|
$ |
346,266 |
|
Cost of goods sold (2) |
|
|
249,795 |
|
|
|
(16,875 |
) |
|
|
232,920 |
|
|
|
227,446 |
|
|
|
(16,558 |
) |
|
|
210,888 |
|
Cost of goods sold impairment charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22,004 |
|
|
|
(22,004 |
) |
|
|
— |
|
Gross profit |
|
|
149,370 |
|
|
|
16,875 |
|
|
|
166,245 |
|
|
|
96,816 |
|
|
|
38,562 |
|
|
|
135,378 |
|
Gross margin % |
|
|
37.4 |
% |
|
|
|
|
41.6 |
% |
|
|
28.0 |
% |
|
|
|
|
39.1 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general and administrative (3) |
|
|
25,371 |
|
|
|
(1,319 |
) |
|
|
24,052 |
|
|
|
18,000 |
|
|
|
(861 |
) |
|
|
17,139 |
|
Research and development (4) |
|
|
38,127 |
|
|
|
(1,112 |
) |
|
|
37,015 |
|
|
|
43,818 |
|
|
|
(1,030 |
) |
|
|
42,788 |
|
In-process research and development impairment charges |
|
|
12,970 |
|
|
|
(12,970 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Intellectual property legal development expenses |
|
|
1,332 |
|
|
|
— |
|
|
|
1,332 |
|
|
|
1,056 |
|
|
|
— |
|
|
|
1,056 |
|
Acquisition, transaction-related and integration expenses |
|
|
1 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Restructuring and other charges |
|
|
108 |
|
|
|
(108 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Insurance recoveries for property losses and associated expenses, net (5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,818 |
) |
|
|
2,818 |
|
|
|
— |
|
Charges related to legal matters, net (6) |
|
|
19,958 |
|
|
|
(19,958 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other operating income |
|
|
(1,465 |
) |
|
|
— |
|
|
|
(1,465 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Operating income |
|
$ |
52,968 |
|
|
$ |
52,343 |
|
|
$ |
105,311 |
|
|
$ |
36,760 |
|
|
$ |
37,635 |
|
|
$ |
74,395 |
|
(1) |
Operating results for the sale of Amneal products by |
||||
|
|
|
|
|
|
(2) |
Adjustments for the three months ended |
||||
|
|
|
|
|
|
(3) |
Adjustments for the three months ended |
||||
|
|
|
|
|
|
(4) |
Adjustments for the three months ended |
||||
|
|
||||
(5) |
Adjustments for the three months |
||||
|
|
|
|
|
|
(6) |
Adjustments for the three months ended |
Generics Segment Reconciliation of GAAP to Non-GAAP Operating Results (1) (Unaudited; Table in thousands) |
||||||||||||||||||||||||
|
|
Year Ended |
|
Year Ended |
||||||||||||||||||||
|
|
As Reported |
|
Adjustments |
|
Non-GAAP |
|
As Reported |
|
Adjustments |
|
Non-GAAP |
||||||||||||
Net revenue |
|
$ |
1,432,073 |
|
|
$ |
— |
|
|
$ |
1,432,073 |
|
|
$ |
1,366,338 |
|
|
$ |
— |
|
|
$ |
1,366,338 |
|
Cost of goods sold (2) |
|
|
890,245 |
|
|
|
(64,294 |
) |
|
|
825,951 |
|
|
|
825,568 |
|
|
|
(55,263 |
) |
|
|
770,305 |
|
Cost of goods sold impairment charges |
|
|
5,786 |
|
|
|
(5,786 |
) |
|
|
— |
|
|
|
22,692 |
|
|
|
(22,692 |
) |
|
|
— |
|
Gross profit |
|
|
536,042 |
|
|
|
70,080 |
|
|
|
606,122 |
|
|
|
518,078 |
|
|
|
77,955 |
|
|
|
596,033 |
|
Gross margin % |
|
|
37.4 |
% |
|
|
|
|
42.3 |
% |
|
|
37.9 |
% |
|
|
|
|
43.6 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general and administrative (3) |
|
|
109,781 |
|
|
|
(9,960 |
) |
|
|
99,821 |
|
|
|
64,500 |
|
|
|
(2,664 |
) |
|
|
61,836 |
|
Research and development (4) |
|
|
167,509 |
|
|
|
(4,819 |
) |
|
|
162,690 |
|
|
|
158,365 |
|
|
|
(4,269 |
) |
|
|
154,096 |
|
In-process research and development impairment charges |
|
|
12,970 |
|
|
|
(12,970 |
) |
|
|
— |
|
|
|
710 |
|
|
|
(710 |
) |
|
|
— |
|
Intellectual property legal development expenses |
|
|
4,251 |
|
|
|
— |
|
|
|
4,251 |
|
|
|
7,562 |
|
|
|
— |
|
|
|
7,562 |
|
Acquisition, transaction-related and integration expenses |
|
|
25 |
|
|
|
(25 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Restructuring and other charges |
|
|
821 |
|
|
|
(821 |
) |
|
|
— |
|
|
|
80 |
|
|
|
(80 |
) |
|
|
— |
|
(Insurance recoveries) charges for property losses and associated expenses, net (5) |
|
|
(1,911 |
) |
|
|
1,911 |
|
|
|
— |
|
|
|
5,368 |
|
|
|
(5,368 |
) |
|
|
— |
|
Charges related to legal matters, net (6) |
|
|
22,400 |
|
|
|
(22,400 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other operating income |
|
|
(3,960 |
) |
|
|
— |
|
|
|
(3,960 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Operating income |
|
$ |
224,156 |
|
|
$ |
119,164 |
|
|
$ |
343,320 |
|
|
$ |
281,493 |
|
|
$ |
91,046 |
|
|
$ |
372,539 |
|
(1) |
Operating results for the sale of Amneal products by |
||||
|
|
|
|
|
|
(2) |
Adjustments for the years ended |
||||
|
|
|
|
|
|
(3) |
Adjustments for the years ended |
||||
|
|
|
|
|
|
(4) |
Adjustments for the years ended |
||||
|
|
||||
(5) |
Adjustments for the year ended |
||||
|
|
|
|
|
|
(6) |
Adjustments for the year ended |
Specialty Segment Reconciliation of GAAP to Non-GAAP Operating Results (Unaudited; Table in thousands) |
|||||||||||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||||||
|
As Reported |
|
Adjustments |
|
Non-GAAP |
|
As Reported |
|
Adjustments |
|
Non-GAAP |
||||||||||||
Net revenue |
$ |
102,550 |
|
|
$ |
— |
|
|
$ |
102,550 |
|
|
$ |
101,008 |
|
|
$ |
— |
|
|
$ |
101,008 |
|
Cost of goods sold (1) |
|
46,744 |
|
|
|
(27,327 |
) |
|
|
19,417 |
|
|
|
49,378 |
|
|
|
(27,483 |
) |
|
|
21,895 |
|
Cost of goods sold impairment charges |
|
5,325 |
|
|
|
(5,325 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gross profit |
|
50,481 |
|
|
|
32,652 |
|
|
|
83,133 |
|
|
|
51,630 |
|
|
|
27,483 |
|
|
|
79,113 |
|
Gross margin % |
|
49.2 |
% |
|
|
|
|
81.1 |
% |
|
|
51.1 |
% |
|
|
|
|
78.3 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general and administrative (2) |
|
20,259 |
|
|
|
(119 |
) |
|
|
20,140 |
|
|
|
21,733 |
|
|
|
(749 |
) |
|
|
20,984 |
|
Research and development (3) |
|
3,780 |
|
|
|
(372 |
) |
|
|
3,408 |
|
|
|
8,056 |
|
|
|
(300 |
) |
|
|
7,756 |
|
Intellectual property legal development expenses |
|
30 |
|
|
|
— |
|
|
|
30 |
|
|
|
86 |
|
|
|
— |
|
|
|
86 |
|
Acquisition, transaction-related and integration expenses |
|
2 |
|
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Change in fair value of contingent consideration (4) |
|
2,226 |
|
|
|
(2,226 |
) |
|
|
— |
|
|
|
(100 |
) |
|
|
100 |
|
|
|
— |
|
Operating income |
$ |
24,184 |
|
|
$ |
35,371 |
|
|
$ |
59,555 |
|
|
$ |
21,855 |
|
|
$ |
28,432 |
|
|
$ |
50,287 |
|
(1) |
Adjustments for the three months ended |
||||
|
|
|
|
|
|
(2) |
Adjustments for the three months ended |
||||
|
|
|
|
|
|
(3) |
Adjustments for the three months ended |
||||
|
|
|
|
|
|
(4) |
Contingent consideration was recorded in connection with the acquisitions of (i) the baclofen franchise from certain entities affiliated with |
Specialty Segment Reconciliation of GAAP to Non-GAAP Operating Results (Unaudited; Table in thousands) |
|||||||||||||||||||||||
|
Year Ended |
|
Year Ended |
||||||||||||||||||||
|
As Reported |
|
Adjustments |
|
Non-GAAP |
|
As Reported |
|
Adjustments |
|
Non-GAAP |
||||||||||||
Net revenue |
$ |
374,121 |
|
|
$ |
— |
|
|
$ |
374,121 |
|
|
$ |
378,319 |
|
|
$ |
— |
|
|
$ |
378,319 |
|
Cost of goods sold (1) |
|
177,107 |
|
|
|
(108,187 |
) |
|
|
68,920 |
|
|
|
193,562 |
|
|
|
(109,979 |
) |
|
|
83,583 |
|
Cost of goods sold impairment charges |
|
5,325 |
|
|
|
(5,325 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gross profit |
|
191,689 |
|
|
|
113,512 |
|
|
|
305,201 |
|
|
|
184,757 |
|
|
|
109,979 |
|
|
|
294,736 |
|
Gross margin % |
|
51.2 |
% |
|
|
|
|
81.6 |
% |
|
|
48.8 |
% |
|
|
|
|
77.9 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general and administrative (2) |
|
90,031 |
|
|
|
(913 |
) |
|
|
89,118 |
|
|
|
84,481 |
|
|
|
(2,830 |
) |
|
|
81,651 |
|
Research and development (3) |
|
28,179 |
|
|
|
(1,471 |
) |
|
|
26,708 |
|
|
|
43,482 |
|
|
|
(1,083 |
) |
|
|
42,399 |
|
Intellectual property legal development expenses |
|
107 |
|
|
|
— |
|
|
|
107 |
|
|
|
154 |
|
|
|
— |
|
|
|
154 |
|
Acquisition, transaction-related and integration expenses |
|
49 |
|
|
|
(49 |
) |
|
|
— |
|
|
|
16 |
|
|
|
(16 |
) |
|
|
— |
|
Change in fair value of contingent consideration (4) |
|
731 |
|
|
|
(731 |
) |
|
|
— |
|
|
|
200 |
|
|
|
(200 |
) |
|
|
— |
|
Operating income |
$ |
72,592 |
|
|
$ |
116,676 |
|
|
$ |
189,268 |
|
|
$ |
56,424 |
|
|
$ |
114,108 |
|
|
$ |
170,532 |
|
(1) |
Adjustments for the years ended |
||||
|
|
|
|
|
|
(2) |
Adjustments for the years ended |
||||
|
|
|
|
|
|
(3) |
Adjustments for the years ended |
||||
|
|
|
|
|
|
(4) |
Contingent consideration was recorded in connection with the acquisitions of (i) the baclofen franchise from certain entities affiliated with |
AvKARE Segment Reconciliation of GAAP to Non-GAAP Operating Results (1) (Unaudited; Table in thousands) |
|||||||||||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||||||
|
As Reported |
|
Adjustments |
|
Non-GAAP |
|
As Reported |
|
Adjustments |
|
Non-GAAP |
||||||||||||
Net revenue |
$ |
108,044 |
|
|
$ |
— |
|
|
$ |
108,044 |
|
|
$ |
89,622 |
|
|
$ |
— |
|
|
$ |
89,622 |
|
Cost of goods sold |
|
92,507 |
|
|
|
— |
|
|
|
92,507 |
|
|
|
71,666 |
|
|
|
— |
|
|
|
71,666 |
|
Gross profit |
|
15,537 |
|
|
|
— |
|
|
|
15,537 |
|
|
|
17,956 |
|
|
|
— |
|
|
|
17,956 |
|
Gross margin % |
|
14.4 |
% |
|
|
|
|
14.4 |
% |
|
|
20.0 |
% |
|
|
|
|
20.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general and administrative (2) |
|
14,298 |
|
|
|
(4,932 |
) |
|
|
9,366 |
|
|
|
15,932 |
|
|
|
(8,093 |
) |
|
|
7,839 |
|
Operating income |
$ |
1,239 |
|
|
$ |
4,932 |
|
|
$ |
6,171 |
|
|
$ |
2,024 |
|
|
$ |
8,093 |
|
|
$ |
10,117 |
|
(1) |
Operating results for the sale of Amneal products by |
||||
|
|
|
|
|
|
(2) |
Adjustments for the three months ended |
AvKARE Segment Reconciliation of GAAP to Non-GAAP Operating Results (1) (Unaudited; Table in thousands) |
|||||||||||||||||||||||
|
Year Ended |
|
Year Ended |
||||||||||||||||||||
|
As Reported |
|
Adjustments |
|
Non-GAAP |
|
As Reported |
|
Adjustments |
|
Non-GAAP |
||||||||||||
Net revenue |
$ |
406,110 |
|
|
$ |
— |
|
|
$ |
406,110 |
|
|
$ |
349,012 |
|
|
$ |
— |
|
|
$ |
349,012 |
|
Cost of goods sold |
|
349,133 |
|
|
|
— |
|
|
|
349,133 |
|
|
|
282,874 |
|
|
|
— |
|
|
|
282,874 |
|
Gross profit |
|
56,977 |
|
|
|
— |
|
|
|
56,977 |
|
|
|
66,138 |
|
|
|
— |
|
|
|
66,138 |
|
Gross margin % |
|
14.0 |
% |
|
|
|
|
14.0 |
% |
|
|
19.0 |
% |
|
|
|
|
19.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general and administrative (2) |
|
53,659 |
|
|
|
(19,324 |
) |
|
|
34,335 |
|
|
|
57,918 |
|
|
|
(26,764 |
) |
|
|
31,154 |
|
Acquisition, transaction-related and integration expenses (3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,422 |
|
|
|
(1,422 |
) |
|
|
— |
|
Operating income |
$ |
3,318 |
|
|
$ |
19,324 |
|
|
$ |
22,642 |
|
|
$ |
6,798 |
|
|
$ |
28,186 |
|
|
$ |
34,984 |
|
(1) |
Operating results for the sale of Amneal products by |
||||
|
|
|
|
|
|
(2) |
Adjustments for the years ended |
||||
|
|
|
|
|
|
(3) |
Adjustments for the year ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230302005108/en/
Head of Investor Relations
anthony.dimeo@amneal.com
Source:
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