Amneal Reports Third Quarter 2024 Financial Results
Amneal Pharmaceuticals (AMRX) reported Q3 2024 financial results with net revenue of $702 million, up 13% year-over-year. The company posted a GAAP net loss of $0.2 million and adjusted EBITDA of $158 million. Generics revenue increased 9%, Specialty revenue grew 19%, and AvKARE revenue rose 21%. Key developments include the launch of CREXONT® for Parkinson's disease, collaboration with Metsera for obesity medicines, and in-licensing of a new biosimilar. The company affirmed its 2024 full-year guidance with projected net revenue of $2.70-2.80 billion and adjusted EBITDA of $610-630 million.
Amneal Pharmaceuticals (AMRX) ha riportato i risultati finanziari del terzo trimestre 2024 con un fatturato netto di $702 milioni, in aumento del 13% rispetto all'anno precedente. L'azienda ha registrato una perdita netta GAAP di $0,2 milioni e un EBITDA rettificato di $158 milioni. I ricavi dai generici sono aumentati del 9%, quelli della Specialità del 19% e i ricavi di AvKARE sono cresciuti del 21%. Tra gli sviluppi chiave si segnalano il lancio di CREXONT® per il morbo di Parkinson, una collaborazione con Metsera per medicinali contro l'obesità e l'in-licensing di un nuovo biosimilare. L'azienda ha confermato le previsioni per l'intero anno 2024, con un fatturato netto previsto tra $2,70 e $2,80 miliardi e un EBITDA rettificato tra $610 e $630 milioni.
Amneal Pharmaceuticals (AMRX) reportó los resultados financieros del tercer trimestre de 2024 con unos ingresos netos de $702 millones, un aumento del 13% respecto al año anterior. La compañía presentó una pérdida neta GAAP de $0,2 millones y un EBITDA ajustado de $158 millones. Los ingresos por genéricos aumentaron un 9%, los ingresos por Especialidad crecieron un 19% y los ingresos de AvKARE se elevaron un 21%. Los desarrollos clave incluyen el lanzamiento de CREXONT® para la enfermedad de Parkinson, la colaboración con Metsera para medicamentos contra la obesidad, y la adquisición de un nuevo biosimilar. La compañía reafirmó sus orientaciones para todo el año 2024 con un ingreso neto proyectado de $2,70 a $2,80 mil millones y un EBITDA ajustado de $610 a $630 millones.
암니얼 제약 (AMRX)는 2024년 3분기 재무 결과를 보고하며 순수익이 7억 2천만 달러로 전년 대비 13% 증가했다고 전했습니다. 회사는 GAAP 기준으로 20만 달러의 순손실을 기록했으며 조정 EBITDA는 1억 5천8백만 달러였습니다. 일반 의약품 매출이 9% 증가했고, 전문 의약품 매출이 19% 증가했으며, AvKARE 매출이 21% 증가했습니다. 주요 개발 사항으로는 파킨슨병 치료를 위한 CREXONT®의 출시, 비만 약물을 위한 Metsera와의 협력, 그리고 새로운 바이오시밀러의 라이센스 취득이 있습니다. 회사는 2024년 전체 연도 가이드를 재확인하며 예상 순수익을 27억에서 28억 달러 및 조정 EBITDA를 6억 1천만에서 6억 3천만 달러로 제시했습니다.
Amneal Pharmaceuticals (AMRX) a annoncé les résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires net de 702 millions de dollars, en hausse de 13 % par rapport à l'année précédente. La société a enregistré une perte nette GAAP de 0,2 million de dollars et un EBITDA ajusté de 158 millions de dollars. Les revenus des médicaments génériques ont augmenté de 9 %, ceux des médicaments spécialisés ont crû de 19 % et les revenus d'AvKARE ont augmenté de 21 %. Parmi les développements majeurs, on note le lancement de CREXONT® pour la maladie de Parkinson, la collaboration avec Metsera pour des médicaments contre l'obésité et l'octroi de licence d'un nouveau biosimilaire. La société a confirmé ses prévisions pour l'année 2024 avec des revenus nets projetés de 2,70 à 2,80 milliards de dollars et un EBITDA ajusté de 610 à 630 millions de dollars.
Amneal Pharmaceuticals (AMRX) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht und einen Nettoumsatz von 702 Millionen US-Dollar vermeldet, was einem Anstieg von 13% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete einen GAAP-Nettoverlust von 0,2 Millionen US-Dollar und ein angepasstes EBITDA von 158 Millionen US-Dollar. Die Einnahmen aus Generika stiegen um 9%, die Einnahmen aus Spezialitäten um 19% und die Einnahmen von AvKARE um 21%. Zu den wichtigsten Entwicklungen gehören die Markteinführung von CREXONT® zur Behandlung von Parkinson, eine Zusammenarbeit mit Metsera zur Entwicklung von Medikamenten gegen Adipositas sowie die Lizensierung eines neuen Biosimilars. Das Unternehmen bestätigte die Prognose für das Gesamtjahr 2024 mit einem voraussichtlichen Nettoumsatz von 2,70 bis 2,80 Milliarden US-Dollar und einem angepassten EBITDA von 610 bis 630 Millionen US-Dollar.
- Net revenue increased 13% YoY to $702 million
- Generics revenue up 9% driven by new product launches
- Specialty revenue grew 19% from neurology and endocrinology products
- AvKARE revenue increased 21%
- Adjusted EBITDA rose 2% to $158 million
- Net loss of $0.2 million compared to $10 million profit in Q3 2023
- Adjusted diluted EPS decreased to $0.16 from $0.19 YoY
- Higher interest expense impacting profitability
- $20 million R&D milestone payment affecting EBITDA
Insights
The Q3 results show mixed performance with notable revenue growth but compressed margins. Total revenue reached
However, profitability metrics were less impressive. The company posted a small net loss of
The company maintained its full-year guidance, projecting revenue of
The strategic developments in Amneal's portfolio are significant. The launch of CREXONT® for Parkinson's disease expands their neurology franchise. The collaboration with Metsera for obesity and metabolic medicines positions them in a rapidly growing therapeutic area. The in-licensing of a new biosimilar strengthens their biosimilars pipeline, which has been a growth driver.
The
‒ Q3 2024 Net Revenue of
‒ Adjusted EBITDA of
‒ Affirms 2024 Full Year Guidance ‒
“Q3 was an excellent quarter where we continued to drive strong financial results across our diversified business and we announced three strategic actions to solidify our long-term growth. First, we launched CREXONT® for the treatment of Parkinson’s disease. Second, we announced our collaboration with Metsera, Inc. to leverage Amneal’s expertise and supply next-generation medicines for obesity and metabolic diseases. Third, we expanded our deep pipeline by in-licensing a new high-value biosimilar. We look forward to building on our momentum and continuing to create value for all our key stakeholders,” said Chirag and Chintu Patel, Co-Chief Executive Officers.
Third Quarter 2024 Results
Net revenue in the third quarter of 2024 was
Net loss attributable to Amneal Pharmaceuticals, Inc. was
Adjusted EBITDA in the third quarter of 2024 was
Diluted loss per share in the third quarter of 2024 was
The Company presents GAAP and adjusted (non-GAAP) quarterly results. Please refer to the “Non-GAAP Financial Measures” section for more information. In the tables provided below, GAAP to non-GAAP reconciliations are presented.
Affirming Previously Announced Increased 2024 Full Year Guidance
Net revenue |
|
Adjusted EBITDA (1) |
|
Adjusted diluted EPS (2) |
|
Operating cash flow (3) |
|
Capital expenditures |
|
(1) |
Includes |
|
(2) |
Accounts for |
|
(3) |
Does not contemplate one-time and non-recurring items such as legal settlements and other discrete items. |
Amneal’s 2024 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 8:30 am Eastern Time today, November 8, 2024, to discuss its results. The live webcast and presentation will be accessible through the Investor Relations section of the Company’s website at https://investors.amneal.com. To access the call through a conference line, dial (833) 470-1428 (in the
About Amneal
Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX), headquartered in
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 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 impact of a prolonged business interruption within our supply chain; 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; legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives; our dependence on information technology systems and infrastructure and the potential for cybersecurity incidents; our ability to attract, hire and retain highly skilled personnel; 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 claims brought against us by 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 and adjusted diluted EPS, which are intended as supplemental measures of the Company’s performance that are not required by or presented in accordance with GAAP. Adjusted diluted EPS reflects diluted earnings per share based on adjusted net income (loss), which is net income (loss) adjusted to (A) exclude (i) non-cash interest, (ii) GAAP provision for (benefit from) income taxes, (iii) amortization, (iv) stock-based compensation expense, (v) acquisition, site closure expenses, and idle facility expenses, (vi) restructuring and other charges, (vii) (credit) charges related to certain legal matters, including interest, net, (viii) asset impairment charges, (ix) change in fair value of contingent consideration, (x) increase in tax receivable agreement liability, (xi) system implementation expense, (xii) other and (xiii) net income attributable to non-controlling interests not associated with our Class B common stock, and (B) include non-GAAP provision for income taxes. Non-GAAP adjusted diluted EPS for the three and nine months ended September 30, 2024 was calculated using the weighted average fully diluted shares outstanding of Class A common stock. Non-GAAP adjusted diluted EPS for the three and nine months ended September 30, 2023 was calculated using the weighted average diluted shares outstanding of Class A common stock and assuming all shares of Class B common stock were converted to shares of Class A common stock as of January 1, 2023.
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.
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 any 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.
Amneal Pharmaceuticals, Inc. |
|||||||||||
Consolidated Statements of Operations |
|||||||||||
(unaudited; $ in thousands, except per share amounts) |
|||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Net revenue |
$ |
702,468 |
|
$ |
620,040 |
|
$ |
2,063,439 |
|
$ |
1,776,626 |
Cost of goods sold |
|
432,910 |
|
|
387,509 |
|
|
1,305,874 |
|
|
1,145,888 |
Gross profit |
|
269,558 |
|
|
232,531 |
|
|
757,565 |
|
|
630,738 |
Selling, general and administrative |
|
118,692 |
|
|
113,006 |
|
|
347,749 |
|
|
320,672 |
Research and development |
|
61,097 |
|
|
41,375 |
|
|
136,449 |
|
|
117,864 |
Intellectual property legal development expenses |
|
1,967 |
|
|
886 |
|
|
3,993 |
|
|
3,350 |
Restructuring and other charges |
|
172 |
|
|
1,043 |
|
|
1,862 |
|
|
1,635 |
Change in fair value of contingent consideration |
|
(1,030) |
|
|
3,120 |
|
|
(930) |
|
|
(787) |
(Credit) charges related to legal matters, net |
|
(149) |
|
|
(2,620) |
|
|
94,909 |
|
|
(1,039) |
Other operating expense (income) |
|
— |
|
|
73 |
|
|
— |
|
|
(1,138) |
Operating income |
|
88,809 |
|
|
75,648 |
|
|
173,533 |
|
|
190,181 |
Other (expense) income: |
|
|
|
|
|
|
|
||||
Interest expense, net |
|
(65,511) |
|
|
(50,909) |
|
|
(196,933) |
|
|
(151,081) |
Foreign exchange gain (loss), net |
|
2,274 |
|
|
(2,939) |
|
|
815 |
|
|
(617) |
Increase in tax receivable agreement liability |
|
(11,327) |
|
|
(677) |
|
|
(26,719) |
|
|
(1,908) |
Other income, net |
|
1,178 |
|
|
1,834 |
|
|
9,610 |
|
|
6,616 |
Total other expense, net |
|
(73,386) |
|
|
(52,691) |
|
|
(213,227) |
|
|
(146,990) |
Income (loss) before income taxes |
|
15,423 |
|
|
22,957 |
|
|
(39,694) |
|
|
43,191 |
Provision for (benefit from) income taxes |
|
3,666 |
|
|
(2,076) |
|
|
13,440 |
|
|
(1,431) |
Net income (loss) |
|
11,757 |
|
|
25,033 |
|
|
(53,134) |
|
|
44,622 |
Less: Net income attributable to non-controlling interests |
|
(11,913) |
|
|
(15,351) |
|
|
(32,671) |
|
|
(29,966) |
Net (loss) income attributable to Amneal Pharmaceuticals, Inc. |
$ |
(156) |
|
$ |
9,682 |
|
$ |
(85,805) |
|
$ |
14,656 |
|
|
|
|
|
|
|
|
||||
Net (loss) income per share attributable to Amneal
|
|
|
|
|
|
|
|
||||
Basic |
$ |
(—) |
|
$ |
0.06 |
|
$ |
(0.28) |
|
$ |
0.10 |
Diluted |
$ |
(—) |
|
$ |
0.06 |
|
$ |
(0.28) |
|
$ |
0.09 |
Weighted-average common shares outstanding(1): |
|
|
|
|
|
|
|
||||
Basic |
|
309,647 |
|
|
154,219 |
|
|
308,685 |
|
|
153,363 |
Diluted |
|
309,647 |
|
|
159,691 |
|
|
308,685 |
|
|
156,284 |
(1) |
Following the implementation of the previously disclosed reorganization on November 7, 2023, all outstanding shares of Old PubCo Class A Common Stock and Old PubCo Class B Common Stock were exchanged for an equivalent number of shares of Class A common stock of the Company. Refer to Note 1. Nature of Operations and Note 8. (Loss) Earnings per Share to the consolidated financial statements in the Company’s 2023 Annual Report on Form 10-K for additional information. |
Amneal Pharmaceuticals, Inc. |
|||||
Condensed Consolidated Balance Sheets |
|||||
(unaudited; $ in thousands) |
|||||
|
September 30, 2024 |
|
December 31, 2023 |
||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
74,006 |
|
$ |
91,542 |
Restricted cash |
|
4,339 |
|
|
7,565 |
Trade accounts receivable, net |
|
748,055 |
|
|
613,732 |
Inventories |
|
596,359 |
|
|
581,384 |
Prepaid expenses and other current assets |
|
81,956 |
|
|
82,685 |
Related party receivables |
|
8,579 |
|
|
955 |
Total current assets |
|
1,513,294 |
|
|
1,377,863 |
Property, plant and equipment, net |
|
431,020 |
|
|
447,574 |
Goodwill |
|
598,324 |
|
|
598,629 |
Intangible assets, net |
|
780,189 |
|
|
890,423 |
Operating lease right-of-use assets |
|
32,872 |
|
|
30,329 |
Operating lease right-of-use assets - related party |
|
11,473 |
|
|
12,954 |
Financing lease right-of-use assets |
|
57,532 |
|
|
59,280 |
Other assets |
|
36,274 |
|
|
55,517 |
Total assets |
$ |
3,460,978 |
|
$ |
3,472,569 |
Liabilities and Stockholders' (Deficiency) Equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable and accrued expenses |
$ |
671,085 |
|
$ |
534,662 |
Current portion of liabilities for legal matters |
|
30,181 |
|
|
76,988 |
Revolving credit facility |
|
140,000 |
|
|
179,000 |
Current portion of long-term debt, net |
|
224,692 |
|
|
34,125 |
Current portion of operating lease liabilities |
|
9,702 |
|
|
9,207 |
Current portion of operating lease liabilities - related party |
|
3,327 |
|
|
2,825 |
Current portion of financing lease liabilities |
|
3,300 |
|
|
2,467 |
Related party payables - short term |
|
12,922 |
|
|
7,321 |
Total current liabilities |
|
1,095,209 |
|
|
846,595 |
Long-term debt, net |
|
2,169,607 |
|
|
2,386,004 |
Note payable - related party |
|
— |
|
|
41,447 |
Operating lease liabilities |
|
26,210 |
|
|
24,095 |
Operating lease liabilities - related party |
|
10,265 |
|
|
12,787 |
Financing lease liabilities |
|
57,558 |
|
|
58,566 |
Related party payables - long term |
|
26,186 |
|
|
11,776 |
Liabilities for legal matters - long term |
|
85,479 |
|
|
316 |
Other long-term liabilities |
|
24,144 |
|
|
29,679 |
Total long-term liabilities |
|
2,399,449 |
|
|
2,564,670 |
Redeemable non-controlling interests |
|
59,887 |
|
|
41,293 |
Total stockholders' (deficiency) equity |
|
(93,567) |
|
|
20,011 |
Total liabilities and stockholders' (deficiency) equity |
$ |
3,460,978 |
|
$ |
3,472,569 |
Amneal Pharmaceuticals, Inc. |
|||||
Consolidated Statements of Cash Flows |
|||||
(unaudited; $ in thousands) |
|||||
|
Nine Months Ended September 30, |
||||
|
|
2024 |
|
|
2023 |
Cash flows from operating activities: |
|
|
|
||
Net (loss) income |
$ |
(53,134) |
|
$ |
44,622 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
||
Depreciation and amortization |
|
170,061 |
|
|
172,467 |
Unrealized foreign currency (gain) loss |
|
(754) |
|
|
1,563 |
Amortization of debt issuance costs and discount |
|
2,662 |
|
|
6,884 |
Intangible asset impairment charges |
|
920 |
|
|
2,036 |
Change in fair value of contingent consideration |
|
(930) |
|
|
(787) |
Stock-based compensation |
|
20,558 |
|
|
20,848 |
Inventory provision |
|
63,611 |
|
|
56,637 |
Other operating charges and credits, net |
|
(50) |
|
|
6,370 |
Changes in assets and liabilities: |
|
|
|
||
Trade accounts receivable, net |
|
(134,031) |
|
|
49,055 |
Inventories |
|
(78,545) |
|
|
(103,092) |
Prepaid expenses, other current assets and other assets |
|
(2,082) |
|
|
24,810 |
Related party receivables |
|
(483) |
|
|
(1,131) |
Accounts payable, accrued expenses and other liabilities |
|
168,879 |
|
|
(74,685) |
Related party payables |
|
20,339 |
|
|
4,157 |
Net cash provided by operating activities |
|
177,021 |
|
|
209,754 |
Cash flows from investing activities: |
|
|
|
||
Purchases of property, plant and equipment |
|
(36,769) |
|
|
(33,351) |
Acquisition of intangible assets |
|
(14,050) |
|
|
(2,488) |
Deposits for future acquisition of property, plant and equipment |
|
(1,107) |
|
|
(1,658) |
Proceeds from sale of subsidiary |
|
4,989 |
|
|
— |
Net cash used in investing activities |
|
(46,937) |
|
|
(37,497) |
Cash flows from financing activities: |
|
|
|
||
Payments of deferred financing and refinancing costs |
|
— |
|
|
(542) |
Payments of principal on debt, revolving credit facilities, financing leases and other |
|
(133,383) |
|
|
(151,510) |
Borrowings on revolving credit facilities |
|
48,000 |
|
|
110,000 |
Proceeds from exercise of stock options |
|
1,003 |
|
|
408 |
Employee payroll tax withholding on restricted stock unit vesting |
|
(7,565) |
|
|
(2,222) |
Tax distributions to non-controlling interests |
|
(14,442) |
|
|
(67,875) |
Payment of principal on notes payable - related party |
|
(44,200) |
|
|
— |
Net cash used in financing activities |
|
(150,587) |
|
|
(111,741) |
Effect of foreign exchange rate on cash |
|
(259) |
|
|
(136) |
Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
(20,762) |
|
|
60,380 |
Cash, cash equivalents, and restricted cash - beginning of period |
|
99,107 |
|
|
35,227 |
Cash, cash equivalents, and restricted cash - end of period |
$ |
78,345 |
|
$ |
95,607 |
Cash and cash equivalents - end of period |
$ |
74,006 |
|
$ |
86,929 |
Restricted cash - end of period |
|
4,339 |
|
|
8,678 |
Cash, cash equivalents, and restricted cash - end of period |
$ |
78,345 |
|
$ |
95,607 |
Amneal Pharmaceuticals, Inc. |
|||||||||||
Non-GAAP Reconciliations |
|||||||||||
(unaudited, $ in thousands) |
|||||||||||
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA |
|||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Net income (loss) |
$ |
11,757 |
|
$ |
25,033 |
|
$ |
(53,134) |
|
$ |
44,622 |
Adjusted to add: |
|
|
|
|
|
|
|
||||
Interest expense, net |
|
65,511 |
|
|
50,909 |
|
|
196,933 |
|
|
151,081 |
Provision for (benefit from) income taxes |
|
3,666 |
|
|
(2,076) |
|
|
13,440 |
|
|
(1,431) |
Depreciation and amortization |
|
58,961 |
|
|
57,206 |
|
|
170,061 |
|
|
172,467 |
EBITDA (Non-GAAP) |
$ |
139,895 |
|
$ |
131,072 |
|
$ |
327,300 |
|
$ |
366,739 |
Adjusted to add (deduct): |
|
|
|
|
|
|
|
||||
Stock-based compensation expense |
|
7,112 |
|
|
6,691 |
|
|
20,343 |
|
|
20,848 |
Acquisition, site closure, and idle facility expenses (1) |
|
551 |
|
|
1,551 |
|
|
1,574 |
|
|
5,831 |
Restructuring and other charges |
|
172 |
|
|
1,043 |
|
|
1,773 |
|
|
1,536 |
(Credit) charges related to legal matters, net (2) |
|
(149) |
|
|
2,880 |
|
|
94,909 |
|
|
8,961 |
Asset impairment charges |
|
181 |
|
|
808 |
|
|
1,196 |
|
|
2,879 |
Foreign exchange (gain) loss |
|
(2,274) |
|
|
2,939 |
|
|
(815) |
|
|
617 |
Change in fair value of contingent consideration |
|
(1,030) |
|
|
3,120 |
|
|
(930) |
|
|
(787) |
Increase in tax receivable agreement liability |
|
11,327 |
|
|
677 |
|
|
26,719 |
|
|
1,908 |
System implementation expense (3) |
|
257 |
|
|
2,016 |
|
|
2,029 |
|
|
4,429 |
Other |
|
1,581 |
|
|
1,001 |
|
|
(1,913) |
|
|
3,105 |
Adjusted EBITDA (Non-GAAP) |
$ |
157,623 |
|
$ |
153,798 |
|
$ |
472,185 |
|
$ |
416,066 |
Amneal Pharmaceuticals, Inc. |
|||||||||||
Non-GAAP Reconciliations |
|||||||||||
(unaudited; in thousands, except per share amounts) |
|||||||||||
Reconciliation of Net Income (Loss) to Adjusted Net Income and Calculation of Adjusted Diluted Earnings Per Share |
|||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Net income (loss) |
$ |
11,757 |
|
$ |
25,033 |
|
$ |
(53,134) |
|
$ |
44,622 |
Adjusted to add (deduct): |
|
|
|
|
|
|
|
||||
Non-cash interest |
|
923 |
|
|
2,048 |
|
|
1,552 |
|
|
6,001 |
GAAP provision for (benefit from) income taxes |
|
3,666 |
|
|
(2,076) |
|
|
13,440 |
|
|
(1,431) |
Amortization |
|
41,992 |
|
|
39,091 |
|
|
119,481 |
|
|
118,011 |
Stock-based compensation expense |
|
7,112 |
|
|
6,691 |
|
|
20,343 |
|
|
20,848 |
Acquisition, site closure expenses, and idle facility
|
|
551 |
|
|
1,551 |
|
|
1,574 |
|
|
5,831 |
Restructuring and other charges |
|
172 |
|
|
1,043 |
|
|
1,756 |
|
|
1,536 |
(Credit) charges related to legal matters, including
|
|
(149) |
|
|
3,597 |
|
|
95,036 |
|
|
11,204 |
Asset impairment charges |
|
181 |
|
|
808 |
|
|
1,196 |
|
|
2,872 |
Change in fair value of contingent consideration |
|
(1,030) |
|
|
3,120 |
|
|
(930) |
|
|
(787) |
Increase in tax receivable agreement liability |
|
11,327 |
|
|
676 |
|
|
26,719 |
|
|
1,907 |
System implementation expense (3) |
|
257 |
|
|
2,016 |
|
|
2,029 |
|
|
4,429 |
Other |
|
1,581 |
|
|
1,189 |
|
|
(1,913) |
|
|
3,440 |
Provision for income taxes (4) |
|
(15,875) |
|
|
(15,127) |
|
|
(48,016) |
|
|
(42,451) |
Net income attributable to non-controlling interests not
|
|
(11,913) |
|
|
(9,355) |
|
|
(32,671) |
|
|
(22,042) |
Adjusted net income (Non-GAAP) |
$ |
50,552 |
|
$ |
60,305 |
|
$ |
146,462 |
|
$ |
153,990 |
Weighted average diluted shares outstanding (Non-GAAP) (5) |
|
322,946 |
|
|
311,808 |
|
|
319,491 |
|
|
308,402 |
Adjusted diluted earnings per share (Non-GAAP) |
$ |
0.16 |
|
$ |
0.19 |
|
$ |
0.46 |
|
$ |
0.50 |
Amneal Pharmaceuticals, Inc.
Non-GAAP Reconciliations
(unaudited)
Explanations for Reconciliations of Net Income (Loss) to EBITDA and Adjusted EBITDA and Net Income (Loss) to
Adjusted Net Income and Calculation of Adjusted Diluted Earnings per Share
(1) |
Acquisition, site closure, and idle facility expenses for the three and nine months ended September 30, 2024 primarily included rent for vacated properties. Acquisition, site closure, and idle facility expenses for the three and nine months ended September 30, 2023 primarily included site closure costs associated with the planned cessation of manufacturing at our |
|
(2) |
For the nine months ended September 30, 2024, charges related to legal matters, net were primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against the Company by political subdivisions and Native American tribes across |
|
(3) |
System implementation expense for the three and nine months ended September 30, 2024 and 2023 was primarily for the implementation of software to further integrate our acquired businesses. |
|
(4) |
The non-GAAP effective tax rates for the three and nine months ended September 30, 2024 were |
|
(5) |
Weighted average diluted shares outstanding for the three and nine months ended September 30, 2024 consisted of fully diluted Class A common stock. Weighted average diluted shares outstanding for the three and nine months ended September 30, 2023 consisted of diluted Class A common stock and Class B common stock, as if all shares of Class B common stock were converted to Class A common stock as of January 1, 2023. |
Amneal Pharmaceuticals, Inc. |
|||||||||||||||||
Generics Segment |
|||||||||||||||||
Reconciliation of GAAP to Non-GAAP Operating Results (1) |
|||||||||||||||||
(unaudited; $ in thousands) |
|||||||||||||||||
|
Three Months Ended September 30, 2024 |
|
Three Months Ended September 30, 2023 |
||||||||||||||
|
As Reported |
|
Adjustments |
|
Non-GAAP |
|
As Reported |
|
Adjustments |
|
Non-GAAP |
||||||
Net revenue |
$ |
427,345 |
|
$ |
— |
|
$ |
427,345 |
|
$ |
390,857 |
|
$ |
— |
|
$ |
390,857 |
Cost of goods sold (2) |
|
249,342 |
|
|
(11,411) |
|
|
237,931 |
|
|
236,268 |
|
|
(13,437) |
|
|
222,831 |
Gross profit |
|
178,003 |
|
|
11,411 |
|
|
189,414 |
|
|
154,589 |
|
|
13,437 |
|
|
168,026 |
Gross margin % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling, general and administrative (3) |
|
30,951 |
|
|
(1,931) |
|
|
29,020 |
|
|
33,538 |
|
|
(1,686) |
|
|
31,852 |
Research and development (4) |
|
57,099 |
|
|
(674) |
|
|
56,425 |
|
|
35,103 |
|
|
(633) |
|
|
34,470 |
Intellectual property legal development expenses |
|
1,786 |
|
|
— |
|
|
1,786 |
|
|
815 |
|
|
— |
|
|
815 |
Restructuring and other charges |
|
17 |
|
|
(17) |
|
|
— |
|
|
112 |
|
|
(112) |
|
|
— |
(Credit) charges related to legal matters, net |
|
(149) |
|
|
149 |
|
|
— |
|
|
(2,500) |
|
|
(3,000) |
|
|
(5,500) |
Other operating loss |
|
— |
|
|
— |
|
|
— |
|
|
73 |
|
|
— |
|
|
73 |
Operating income |
$ |
88,299 |
|
$ |
13,884 |
|
$ |
102,183 |
|
$ |
87,448 |
|
$ |
18,868 |
|
$ |
106,316 |
(1) |
Operating results for the sale of Amneal products by AvKARE were included in our Generics segment. |
|
(2) |
Adjustments for the three months ended September 30, 2024 and 2023, respectively, were comprised of stock-based compensation expense ( |
|
(3) |
Adjustments for the three months ended September 30, 2024 and 2023, respectively, were comprised of stock-based compensation expense ( |
|
(4) |
Adjustments for the three months ended September 30, 2024 and 2023 were comprised of stock-based compensation expense. |
Amneal Pharmaceuticals, Inc. |
|||||||||||||||||
Generics Segment |
|||||||||||||||||
Reconciliation of GAAP to Non-GAAP Operating Results (1) |
|||||||||||||||||
(unaudited; $ in thousands) |
|||||||||||||||||
|
Nine Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2023 |
||||||||||||||
|
As Reported |
|
Adjustments |
|
Non-GAAP |
|
As Reported |
|
Adjustments |
|
Non-GAAP |
||||||
Net revenue |
$ |
1,245,967 |
|
$ |
— |
|
$ |
1,245,967 |
|
$ |
1,108,364 |
|
$ |
— |
|
$ |
1,108,364 |
Cost of goods sold (2) |
|
750,167 |
|
|
(35,123) |
|
|
715,044 |
|
|
692,008 |
|
|
(42,283) |
|
|
649,725 |
Gross profit |
|
495,800 |
|
|
35,123 |
|
|
530,923 |
|
|
416,356 |
|
|
42,283 |
|
|
458,639 |
Gross margin % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling, general and administrative (3) |
|
95,663 |
|
|
(5,251) |
|
|
90,412 |
|
|
89,178 |
|
|
(5,562) |
|
|
83,616 |
Research and development (4) |
|
123,173 |
|
|
(1,913) |
|
|
121,260 |
|
|
98,570 |
|
|
(1,901) |
|
|
96,669 |
Intellectual property legal development expenses |
|
3,778 |
|
|
— |
|
|
3,778 |
|
|
3,240 |
|
|
— |
|
|
3,240 |
Restructuring and other charges |
|
70 |
|
|
(70) |
|
|
— |
|
|
211 |
|
|
(112) |
|
|
99 |
Charges (credit) related to legal matters, net (5) |
|
94,909 |
|
|
(94,909) |
|
|
— |
|
|
(2,927) |
|
|
(7,073) |
|
|
(10,000) |
Other operating income |
|
— |
|
|
— |
|
|
— |
|
|
(1,138) |
|
|
— |
|
|
(1,138) |
Operating income |
$ |
178,207 |
|
$ |
137,266 |
|
$ |
315,473 |
|
$ |
229,222 |
|
$ |
56,931 |
|
$ |
286,153 |
(1) |
Operating results for the sale of Amneal products by AvKARE were included in our Generics segment. |
|
(2) |
Adjustments for the nine months ended September 30, 2024 and 2023, respectively, were comprised of stock-based compensation expense ( |
|
(3) |
Adjustments for the nine months ended September 30, 2024 and 2023, respectively, were comprised of stock-based compensation expense ( |
|
(4) |
Adjustments for the nine months ended September 30, 2024 and 2023 were comprised of stock-based compensation expense. |
|
(5) |
Adjustment for the nine months ended September 30, 2024 was primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against the Company by political subdivisions and Native American tribes across |
Amneal Pharmaceuticals, Inc. |
|||||||||||||||||
Specialty Segment |
|||||||||||||||||
Reconciliation of GAAP to Non-GAAP Operating Results |
|||||||||||||||||
(unaudited; $ in thousands) |
|||||||||||||||||
|
Three Months Ended September 30, 2024 |
|
Three Months Ended September 30, 2023 |
||||||||||||||
|
As Reported |
|
Adjustments |
|
Non-GAAP |
|
As Reported |
|
Adjustments |
|
Non-GAAP |
||||||
Net revenue |
$ |
115,638 |
|
$ |
— |
|
$ |
115,638 |
|
$ |
97,304 |
|
$ |
— |
|
$ |
97,304 |
Cost of goods sold (1) |
|
52,342 |
|
|
(29,394) |
|
|
22,948 |
|
|
45,551 |
|
|
(25,844) |
|
|
19,707 |
Gross profit |
|
63,296 |
|
|
29,394 |
|
|
92,690 |
|
|
51,753 |
|
|
25,844 |
|
|
77,597 |
Gross margin % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling, general and administrative (2) |
|
27,723 |
|
|
(167) |
|
|
27,556 |
|
|
22,756 |
|
|
(235) |
|
|
22,521 |
Research and development (2) |
|
3,998 |
|
|
(258) |
|
|
3,740 |
|
|
6,272 |
|
|
(458) |
|
|
5,814 |
Intellectual property legal development expenses |
|
181 |
|
|
— |
|
|
181 |
|
|
71 |
|
|
— |
|
|
71 |
Restructuring and other charges |
|
— |
|
|
— |
|
|
— |
|
|
931 |
|
|
(931) |
|
|
— |
Change in fair value of contingent consideration (3) |
|
(1,030) |
|
|
1,030 |
|
|
— |
|
|
3,120 |
|
|
(3,120) |
|
|
— |
Operating income |
$ |
32,424 |
|
$ |
28,789 |
|
$ |
61,213 |
|
$ |
18,603 |
|
$ |
30,588 |
|
$ |
49,191 |
(1) |
Adjustments for the three months ended September 30, 2024 and 2023 were comprised of amortization expense. |
|
(2) |
Adjustments for the three months ended September 30, 2024 and 2023 were comprised of stock-based compensation expense. |
|
(3) |
Contingent consideration was recorded in connection with the acquisitions of (i) the baclofen franchise from certain entities affiliated with Saol International Limited and (ii) Kashiv Specialty Pharmaceuticals, LLC. |
Amneal Pharmaceuticals, Inc. |
|||||||||||||||||
Specialty Segment |
|||||||||||||||||
Reconciliation of GAAP to Non-GAAP Operating Results |
|||||||||||||||||
(unaudited; $ in thousands) |
|||||||||||||||||
|
Nine Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2023 |
||||||||||||||
|
As Reported |
|
Adjustments |
|
Non-GAAP |
|
As Reported |
|
Adjustments |
|
Non-GAAP |
||||||
Net revenue |
$ |
324,913 |
|
$ |
— |
|
$ |
324,913 |
|
$ |
285,976 |
|
$ |
— |
|
$ |
285,976 |
Cost of goods sold (1) |
|
143,284 |
|
|
(81,349) |
|
|
61,935 |
|
|
135,254 |
|
|
(77,871) |
|
|
57,383 |
Gross profit |
|
181,629 |
|
|
81,349 |
|
|
262,978 |
|
|
150,722 |
|
|
77,871 |
|
|
228,593 |
Gross margin % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling, general and administrative (2) |
|
79,529 |
|
|
(755) |
|
|
78,774 |
|
|
67,894 |
|
|
(649) |
|
|
67,245 |
Research and development (2) |
|
13,276 |
|
|
(801) |
|
|
12,475 |
|
|
19,294 |
|
|
(1,334) |
|
|
17,960 |
Intellectual property legal development expenses |
|
215 |
|
|
— |
|
|
215 |
|
|
110 |
|
|
— |
|
|
110 |
Restructuring and other charges |
|
1,024 |
|
|
(1,024) |
|
|
— |
|
|
1,013 |
|
|
(1,013) |
|
|
— |
Change in fair value of contingent consideration (3) |
|
(930) |
|
|
930 |
|
|
— |
|
|
(787) |
|
|
787 |
|
|
— |
Operating income |
$ |
88,515 |
|
$ |
82,999 |
|
$ |
171,514 |
|
$ |
63,198 |
|
$ |
80,080 |
|
$ |
143,278 |
(1) |
Adjustments for the nine months ended September 30, 2024 and 2023 were comprised of amortization expense. |
|
(2) |
Adjustments for the nine months ended September 30, 2024 and 2023 were comprised of stock-based compensation expense. |
|
(3) |
Contingent consideration was recorded in connection with the acquisitions of (i) the baclofen franchise from certain entities affiliated with Saol International Limited and (ii) Kashiv Specialty Pharmaceuticals, LLC. |
Amneal Pharmaceuticals, Inc. |
|||||||||||||||||
AvKARE Segment |
|||||||||||||||||
Reconciliation of GAAP to Non-GAAP Operating Results (1) |
|||||||||||||||||
(unaudited; $ in thousands) |
|||||||||||||||||
|
Three Months Ended September 30, 2024 |
|
Three Months Ended September 30, 2023 |
||||||||||||||
|
As Reported |
|
Adjustments |
|
Non-GAAP |
|
As Reported |
|
Adjustments |
|
Non-GAAP |
||||||
Net revenue |
$ |
159,485 |
|
$ |
— |
|
$ |
159,485 |
|
$ |
131,879 |
|
$ |
— |
|
$ |
131,879 |
Cost of goods sold |
|
131,226 |
|
|
— |
|
|
131,226 |
|
|
105,690 |
|
|
— |
|
|
105,690 |
Gross profit |
|
28,259 |
|
|
— |
|
|
28,259 |
|
|
26,189 |
|
|
— |
|
|
26,189 |
Gross margin % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling, general and administrative (2) |
|
15,145 |
|
|
(3,545) |
|
|
11,600 |
|
|
14,313 |
|
|
(3,657) |
|
|
10,656 |
Operating income |
$ |
13,114 |
|
$ |
3,545 |
|
$ |
16,659 |
|
$ |
11,876 |
|
$ |
3,657 |
|
$ |
15,533 |
(1) |
Operating results for the sale of Amneal products by AvKARE were included in our Generics segment. |
|
(2) |
Adjustments for the three months ended September 30, 2024 and 2023 were comprised of amortization expense ( |
Amneal Pharmaceuticals, Inc. |
|||||||||||||||||
AvKARE Segment |
|||||||||||||||||
Reconciliation of GAAP to Non-GAAP Operating Results (1) |
|||||||||||||||||
(unaudited; $ in thousands) |
|||||||||||||||||
|
Nine Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2023 |
||||||||||||||
|
As Reported |
|
Adjustments |
|
Non-GAAP |
|
As Reported |
|
Adjustments |
|
Non-GAAP |
||||||
Net revenue |
$ |
492,559 |
|
$ |
— |
|
$ |
492,559 |
|
$ |
382,286 |
|
$ |
— |
|
$ |
382,286 |
Cost of goods sold |
|
412,423 |
|
|
— |
|
|
412,423 |
|
|
318,626 |
|
|
— |
|
|
318,626 |
Gross profit |
|
80,136 |
|
|
— |
|
|
80,136 |
|
|
63,660 |
|
|
— |
|
|
63,660 |
Gross margin % |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling, general and administrative (2) |
|
44,694 |
|
|
(10,636) |
|
|
34,058 |
|
|
41,268 |
|
|
(11,609) |
|
|
29,659 |
Operating income |
$ |
35,442 |
|
$ |
10,636 |
|
$ |
46,078 |
|
$ |
22,392 |
|
$ |
11,609 |
|
$ |
34,001 |
(1) |
Operating results for the sale of Amneal products by AvKARE were included in our Generics segment. |
|
(2) |
Adjustments for the nine months ended September 30, 2024 and 2023, respectively, were comprised of amortization expense ( |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241108530772/en/
Contact
Anthony DiMeo
VP, Investor Relations
anthony.dimeo@amneal.com
Source: Amneal Pharmaceuticals, Inc.
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