--Provides Update on FDA Inspection of Hayward Facility--
HAYWARD, Calif.--(BUSINESS WIRE)--
Impax Laboratories, Inc. (NASDAQ: IPXL) today reported
first quarter ended March 31, 2012 financial results.
First Quarter 2012 Results
-
Adjusted net income increased to $35.1 million, or $0.52 per diluted
share, compared to $13.9 million, or $0.21 per diluted share, in the
prior year period, primarily attributable to the benefit of the gross
profit of $30.0 million ($0.29 per diluted share) earned from United
States (U.S.) Zomig® sales pursuant to the previously disclosed
License Agreement with AstraZeneca UK Limited.
-
GAAP net income decreased to $12.4 million, or $0.18 per diluted
share, compared to $13.9 million, or $0.21 per diluted share,
primarily due to higher expenses and an inventory adjustment as a
result of a change in the strategic direction of certain generic
products.
-
Total revenues increased to $128.6 million, compared to $108.7 million
in the prior year period, primarily due to higher sales of generic
Adderall XR®. First quarter 2012 revenues exclude U.S. Zomig® sales by
AstraZeneca, although the Company will receive the benefit of the
gross profit from these sales during the specified transition period
pursuant to the License Agreement.
-
Adjusted earnings before interest, taxes, depreciation and
amortization (Adjusted EBITDA), increased to $61.1 million compared to
$27.1 million in the prior year period, primarily attributable to the
benefit of the gross profit earned from U.S. Zomig® sales by
AstraZeneca.
Please refer to “Non-GAAP Financial Measures” below for a reconciliation
of GAAP to non-GAAP items.
“Our improved first quarter performance was primarily driven by
increased deliveries of generic Adderall XR® from our third-party
supplier,” said Larry Hsu, Ph.D., president and CEO, Impax Laboratories,
Inc. “We continue to pursue every available means to acquire sufficient
product to meet strong demand.”
“During the first quarter of 2012, we established the infrastructure to
successfully transition the U.S. commercial opportunity for Zomig® from
AstraZeneca to our brand division. The transaction was accretive to our
first quarter non-GAAP earnings per diluted share as we received the
benefit of the gross profit of $30.0 million from first quarter U.S.
sales, partially offset by our $25.0 million payment under the terms of
the agreement. We also expect this transaction to be accretive to our
non-GAAP earnings for the full year 2012. On April 1, our expanded
neurology focused sales force began promotion efforts. This product will
support the growth of our commercial organization, as we prepare for the
potential launch of IPX066, our leading brand product candidate for
Parkinson’s Disease, and thereafter. The Zomig® license is the latest
effort in our active pursuit of additional long term growth
opportunities for our generic and brand businesses.”
Separately, the U.S. Food and Drug Administration (FDA) completed its
re-inspection of the Company’s Hayward manufacturing facility in
connection with the previously disclosed warning letter. In addition to
the re-inspection relating to the warning letter, the FDA conducted a
general GMP inspection of the Company’s Hayward operations. At the
conclusion of this additional inspection, the FDA issued a new Form 483
with observations primarily relating to the Company’s Quality Control
Laboratory. There were no repeat deficiencies or observations set forth
in the Form 483 and the observations described therein are different
from the observations raised in the warning letter. The Company has
timely submitted its response to the Form 483 to the FDA.
Currently, the Company has not been informed by the FDA of the impact
this latest Form 483 will have on the resolution or timing of resolving
the warning letter or whether any further regulatory action may be taken
as to its manufacturing operations. The Company has no control over the
Agency’s timing to review its response or to evaluate its corrective
actions. In the interim, the Company continues to manufacture products
and is working diligently to address the observations raised by the FDA
in the Form 483.
Dr. Hsu said “While we believe we have addressed the observations raised
in the warning letter and have instituted appropriate corrective
actions, we are disappointed to have received a Form 483 on these new
observations. We believe we have submitted a complete response to the
Form 483 and are working diligently to enhance our quality control
procedures. We have already taken decisive action, including a change in
the testing laboratory leadership, as well as strengthened and clarified
laboratory testing standard operating procedures.”
Segment Information
The Company has two reportable segments, the Global Pharmaceuticals
Division (generic products & services) and the Impax Pharmaceuticals
Division (brand products & services) and does not allocate general
corporate services to either segment.
Global Pharmaceuticals Division Information
|
(unaudited, amounts in thousands)
|
|
Three Months Ended
March 31,
|
|
|
|
2012
|
|
2011
|
|
Revenues:
|
|
|
|
|
|
Global Product sales, net
|
|
$
|
116,211
|
|
$
|
92,338
|
|
Rx Partner
|
|
|
2,978
|
|
|
2,682
|
|
OTC Partner
|
|
|
691
|
|
|
1,943
|
|
Research Partner
|
|
|
3,385
|
|
|
6,385
|
|
Total Revenues
|
|
|
123,265
|
|
|
103,348
|
|
Cost of revenues
|
|
|
63,106
|
|
|
47,174
|
|
Gross profit
|
|
|
60,159
|
|
|
56,174
|
|
Operating expenses:
|
|
|
|
|
|
Research and development
|
|
|
10,662
|
|
|
9,776
|
|
Patent litigation
|
|
|
4,038
|
|
|
1,774
|
|
Selling, general and administrative
|
|
|
4,766
|
|
|
2,931
|
|
Total operating expenses
|
|
|
19,466
|
|
|
14,481
|
|
Income from operations
|
|
$
|
40,693
|
|
$
|
41,693
|
|
|
|
|
|
|
Global Pharmaceuticals Division revenues increased $19.9 million to
$123.3 million in the first quarter 2012, compared to $103.3 million in
the prior year, due to higher Global Product sales, net.
For the first quarter 2012, Global Product sales, net, were $116.2
million, up $23.9 million from the prior year primarily due to higher
sales of authorized generic Adderall XR® products ($53.6 million in the
first quarter 2012 compared to $36.1 million in the prior year), as well
as higher sales of other Global label products. Partially offsetting
this increase were declines in Research Partner and OTC Partner
revenues. Research Partner revenues declined $3.0 million due to a
milestone payment achieved during the first quarter of 2011 under the
Medicis joint development agreement originally entered into in the
fourth quarter of 2008. OTC Partner revenues declined due to lower sales
of product marketed under the Company’s alliance agreement with Pfizer.
Gross profit of $60.2 million represented a 49% gross margin in the
first quarter 2012, and was lower than the gross margin of 54% for the
prior year period. The decline was primarily due to a $5.2 million
inventory adjustment as a result of a change in the strategic direction
of certain generic products. Additionally, gross profit in the first
quarter 2011 includes the $3.0 million payment from Medicis described
above.
Total generic operating expenses in the first quarter 2012 increased
$5.0 million to $19.5 million, compared to the prior year, due to higher
planned investments in research and development (R&D), as well as patent
litigation and selling, general and administrative expenses (SG&A).
Impax Pharmaceuticals Division Information
|
(unaudited, amounts in thousands)
|
|
Three Months Ended
March 31,
|
|
|
|
2012
|
|
2011
|
|
Revenues:
|
|
|
|
|
|
Rx Partner
|
|
$
|
1,438
|
|
|
$
|
1,438
|
|
|
Promotional Partner
|
|
|
3,535
|
|
|
|
3,535
|
|
|
Research Partner
|
|
|
330
|
|
|
|
330
|
|
|
Total revenues
|
|
|
5,303
|
|
|
|
5,303
|
|
|
Cost of revenues
|
|
|
2,909
|
|
|
|
2,940
|
|
|
Gross profit
|
|
|
2,394
|
|
|
|
2,363
|
|
|
Operating expenses:
|
|
|
|
|
|
Research and development
|
|
|
8,154
|
|
|
|
9,714
|
|
|
Selling, general and administrative
|
|
|
3,061
|
|
|
|
1,107
|
|
|
Total operating expenses
|
|
|
11,215
|
|
|
|
10,821
|
|
|
Loss from operations
|
|
$
|
(8,821
|
)
|
|
$
|
(8,458
|
)
|
|
|
|
|
|
|
Impax Pharmaceuticals Division revenues in the first quarter 2012 were
flat compared to the prior year.
Total brand operating expenses in the first quarter 2012 increased
slightly compared to the prior year due to higher SG&A expenses,
partially offset by lower R&D expenses.
On February 1, 2012, the Company announced that it had entered into the
Distribution, License, Development and Supply Agreement with AstraZeneca
UK Limited. As part of the License Agreement, AstraZeneca granted to the
Company an exclusive license to commercialize the tablet, orally
disintegrating and nasal spray formulations of Zomig® (zolmitriptan)
products for the treatment of migraine headaches in the United States
and in certain U.S. territories. Under the terms of the agreement, the
Company agreed to pay AstraZeneca quarterly payments totaling $130.0
million during 2012 of which $25.0 million was paid in the first
quarter. During the specified product transition period pursuant to the
agreement, the Company will receive the benefit of the gross profit
($30.0 million for the three months ended March 31, 2012) from U.S.
Zomig® sales commencing from January 1, 2012 and ending when the Company
commences commercialization of the Zomig® products. The benefit of the
gross profit received from AstraZeneca is recorded as a reduction of the
$130.0 million to be paid by the Company to AstraZeneca during 2012 and
is not reflected within the Company’s income.
Corporate and Other
|
(unaudited, amounts in thousands)
|
|
Three Months Ended
March 31,
|
|
|
|
2012
|
|
2011
|
|
General and administrative expenses
|
|
$
|
13,406
|
|
|
$
|
12,541
|
|
|
Loss from operations
|
|
$
|
(13,406
|
)
|
|
$
|
(12,541
|
)
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses in the first quarter 2012 increased
$0.9 million compared to the prior year primarily due to higher
corporate legal fees.
Cash and Short-term Investments
Cash and short-term investments were $343.3 million as of March 31,
2012, as compared to $346.4 million as of December 31, 2011.
2012 Financial Outlook
The Company’s 2012 financial outlook which was last updated on February
1, 2012 is noted below.
-
Gross margins as a percent of total revenues of approximately 60%.
-
Total R&D expenses across the generic and brand divisions to
approximate $89.0 million with generic R&D of approximately $48.0
million and brand R&D of approximately $41.0 million.
-
Patent litigation expenses of approximately $10.0 million.
-
SG&A expenses of approximately $113.0 million.
-
Effective tax rate of approximately 36%.
-
Capital expenditures of approximately $78.0 million.
Conference Call Information
The Company will host a conference call on May 1, 2012 at 11:00 a.m. EDT
to discuss its results. The number to call from within the United States
is (877) 356-3814 and (706) 758-0033 internationally. The call can also
be accessed via a live Webcast through the Investor Relations section of
the Company’s Web site, www.impaxlabs.com.
A replay of the conference call will be available shortly after the call
for a period of seven days. To access the replay, dial (855) 859-2056
(in the U.S.) and (404) 537-3406 (international callers). The access
conference code is 69137467.
About Impax Laboratories, Inc.
Impax Laboratories, Inc. is a technology based specialty pharmaceutical
company applying its formulation expertise and drug delivery technology
to the development of controlled-release and specialty generics in
addition to the development of branded products. Impax markets its
generic products through its Global Pharmaceuticals Division and markets
third-party branded products through the Impax Pharmaceuticals Division.
Additionally, where strategically appropriate, Impax has developed
marketing partnerships to fully leverage its technology platform. Impax
Laboratories is headquartered in Hayward, California, and has a full
range of capabilities in its Hayward, Philadelphia and Taiwan
facilities. For more information, please visit the Company's Web site
at: www.impaxlabs.com.
"Safe Harbor" statement under the Private Securities Litigation
Reform Act of 1995:
To the extent any statements made in this news release contain
information that is not historical, these statements are forward-looking
in nature and express the beliefs and expectations of management. Such
statements are based on current expectations and involve a number of
known and unknown risks and uncertainties that could cause the Company’s
future results, performance or achievements to differ significantly from
the results, performance or achievements expressed or implied by such
forward-looking statements. Such risks and uncertainties include, but
are not limited to, the effect of current economic conditions on the
Company’s industry, business, financial position and results of
operations, fluctuations in the Company’s revenues and operating income,
the Company’s ability to successfully develop and commercialize
pharmaceutical products, reductions or loss of business with any
significant customer, the impact of consolidation of the Company’s
customer base, the impact of competition, the Company’s ability to
sustain profitability and positive cash flows, any delays or
unanticipated expenses in connection with the operation of the Company’s
Taiwan facility, the effect of foreign economic, political, legal and
other risks on the Company’s operations abroad, the uncertainty of
patent litigation, increased government scrutiny on the Company’s
agreements with brand pharmaceutical companies, consumer acceptance and
demand for new pharmaceutical products, the difficulty of predicting
Food and Drug Administration filings and approvals, the Company’s
inexperience in conducting clinical trials and submitting new drug
applications, the Company’s ability to successfully conduct clinical
trials, the Company’s reliance on third parties to conduct clinical
trials and testing, the availability of raw materials and impact of
interruptions in the Company’s supply chain, the use of controlled
substances in the Company’s products, disruptions or failures in the
Company’s information technology systems and network infrastructure, the
Company’s reliance on alliance and collaboration agreements, the
Company’s dependence on certain employees, the Company’s ability to
comply with legal and regulatory requirements governing the healthcare
industry, the regulatory environment, the Company’s ability to protect
the Company’s intellectual property, exposure to product liability
claims, changes in tax regulations, the Company’s ability to manage the
Company’s growth, including through potential acquisitions, the
restrictions imposed by the Company’s credit facility, uncertainties
involved in the preparation of the Company’s financial statements, the
Company’s ability to maintain an effective system of internal control
over financial reporting, any manufacturing difficulties or delays, the
effect of terrorist attacks on the Company’s business, the location of
the Company’s manufacturing and research and development facilities near
earthquake fault lines and other risks described in the Company’s
periodic reports filed with the Securities and Exchange
Commission. Forward-looking statements speak only as to the date on
which they are made, and Impax undertakes no obligation to update
publicly or revise any forward-looking statement, regardless of whether
new information becomes available, future developments occur or
otherwise.
|
Impax Laboratories, Inc.
Consolidated Statements of Operations
(unaudited, amounts in thousands, except share and per share
data)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2012
|
|
2011
|
|
Revenues:
|
|
|
|
|
|
Global Pharmaceuticals Division
|
|
$
|
123,265
|
|
|
$
|
103,348
|
|
|
Impax Pharmaceuticals Division
|
|
|
5,303
|
|
|
|
5,303
|
|
|
Total Revenues
|
|
|
128,568
|
|
|
|
108,651
|
|
|
Cost of revenues
|
|
|
66,015
|
|
|
|
50,114
|
|
|
Gross profit
|
|
|
62,553
|
|
|
|
58,537
|
|
|
Operating expenses:
|
|
|
|
|
|
Research and development
|
|
|
18,816
|
|
|
|
19,490
|
|
|
Patent litigation
|
|
|
4,038
|
|
|
|
1,774
|
|
|
Selling, general and administrative
|
|
|
21,233
|
|
|
|
16,579
|
|
|
Total operating expenses
|
|
|
44,087
|
|
|
|
37,843
|
|
|
Income from operations
|
|
|
18,466
|
|
|
|
20,694
|
|
|
Other income (expense), net
|
|
|
(80
|
)
|
|
|
3
|
|
|
Interest income
|
|
|
255
|
|
|
|
321
|
|
|
Interest expense
|
|
|
(39
|
)
|
|
|
(16
|
)
|
|
Income before income taxes
|
|
|
18,602
|
|
|
|
21,002
|
|
|
Provision for income taxes
|
|
|
6,269
|
|
|
|
7,144
|
|
|
Net income before noncontrolling interest
|
|
|
12,333
|
|
|
|
13,858
|
|
|
Add back loss attributable to noncontrolling interest
|
|
|
32
|
|
|
|
5
|
|
|
Net Income
|
|
$
|
12,365
|
|
|
$
|
13,863
|
|
|
|
|
|
|
|
|
Net Income per share:
|
|
|
|
|
|
Basic
|
|
$
|
0.19
|
|
|
$
|
0.22
|
|
|
Diluted
|
|
$
|
0.18
|
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
Basic
|
|
|
65,122,240
|
|
|
|
63,390,527
|
|
|
Diluted
|
|
|
67,907,263
|
|
|
|
67,044,266
|
|
|
|
|
|
|
|
|
|
|
|
|
Impax Laboratories, Inc.
Condensed Consolidated Balance Sheets
(unaudited, amounts in thousands)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
192,048
|
|
$
|
104,419
|
|
Short-term investments
|
|
|
151,202
|
|
|
241,995
|
|
Accounts receivable, net
|
|
|
119,183
|
|
|
153,773
|
|
Inventory, net
|
|
|
57,938
|
|
|
54,177
|
|
Deferred product manufacturing costs
|
|
|
1,444
|
|
|
1,413
|
|
Deferred income taxes
|
|
|
38,586
|
|
|
37,853
|
|
Prepaid expenses and other current assets
|
|
|
89,295
|
|
|
6,305
|
|
Total current assets
|
|
|
649,696
|
|
|
599,935
|
|
Property, plant and equipment, net
|
|
|
126,886
|
|
|
118,158
|
|
Deferred product manufacturing costs
|
|
|
7,236
|
|
|
7,433
|
|
Other assets
|
|
|
44,909
|
|
|
38,509
|
|
Intangible assets, net
|
|
|
46,997
|
|
|
2,250
|
|
Goodwill
|
|
|
27,574
|
|
|
27,574
|
|
Total assets
|
|
$
|
903,298
|
|
$
|
793,859
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
18,568
|
|
$
|
22,955
|
|
Accrued expenses
|
|
|
73,950
|
|
|
70,116
|
|
Accrued profit sharing and royalty expenses
|
|
|
25,567
|
|
|
40,766
|
|
Accrued product licensing payments
|
|
|
105,000
|
|
|
-
|
|
Deferred revenue
|
|
|
17,926
|
|
|
23,024
|
|
Total current liabilities
|
|
|
241,011
|
|
|
156,861
|
|
Deferred revenue
|
|
|
16,189
|
|
|
17,131
|
|
Other liabilities
|
|
|
19,768
|
|
|
16,861
|
|
Total liabilities
|
|
|
276,968
|
|
|
190,853
|
|
Total stockholders' equity
|
|
|
626,330
|
|
|
603,006
|
|
Total liabilities and stockholders' equity
|
|
$
|
903,298
|
|
$
|
793,859
|
|
|
|
|
|
|
|
|
|
Impax Laboratories, Inc.
Consolidated Statements of Cash Flows
(unaudited, amounts in thousands)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2012
|
|
2011
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
12,365
|
|
|
$
|
13,863
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
3,722
|
|
|
|
3,457
|
|
|
Amortization of Credit Agreement deferred financing costs
|
|
|
8
|
|
|
|
5
|
|
|
Accretion of interest income on short-term investments
|
|
|
(171
|
)
|
|
|
(245
|
)
|
|
Deferred income taxes
|
|
|
801
|
|
|
|
(1,106
|
)
|
|
Provision for uncertain tax positions
|
|
|
16
|
|
|
|
40
|
|
|
Tax benefit related to the exercise of employee stock options
|
|
|
(1,632
|
)
|
|
|
(2,353
|
)
|
|
Deferred revenue
|
|
|
315
|
|
|
|
910
|
|
|
Deferred product manufacturing costs
|
|
|
(495
|
)
|
|
|
(478
|
)
|
|
Recognition of deferred revenue
|
|
|
(6,061
|
)
|
|
|
(7,384
|
)
|
|
Amortization of deferred product manufacturing costs
|
|
|
661
|
|
|
|
1,357
|
|
|
Accrued profit sharing and royalty expense
|
|
|
25,555
|
|
|
|
17,090
|
|
|
Payments of profit sharing and royalty expense
|
|
|
(40,755
|
)
|
|
|
(14,139
|
)
|
|
Share-based compensation expense
|
|
|
3,809
|
|
|
|
2,887
|
|
|
Bad debt expense
|
|
|
-
|
|
|
|
62
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
34,590
|
|
|
|
(12,288
|
)
|
|
Inventory
|
|
|
(3,761
|
)
|
|
|
(4,291
|
)
|
|
Prepaid expenses and other assets
|
|
|
(3,745
|
)
|
|
|
(949
|
)
|
|
Accounts payable and accrued expenses
|
|
|
(4,153
|
)
|
|
|
2,518
|
|
|
Other liabilities
|
|
|
2,661
|
|
|
|
2,055
|
|
|
Net cash provided by operating activities
|
|
|
23,730
|
|
|
|
1,011
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchase of short-term investments
|
|
|
(35,585
|
)
|
|
|
(87,783
|
)
|
|
Maturities of short-term investments
|
|
|
126,549
|
|
|
|
135,408
|
|
|
Purchases of property, plant and equipment
|
|
|
(8,165
|
)
|
|
|
(8,723
|
)
|
|
Payment for product licensing rights
|
|
|
(25,000
|
)
|
|
|
-
|
|
|
Net cash provided by investing activities
|
|
|
57,799
|
|
|
|
38,902
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Tax benefit related to the exercise of employee stock options and
restricted stock
|
|
|
1,632
|
|
|
|
2,353
|
|
|
Proceeds from exercise of stock options and ESPP
|
|
|
4,468
|
|
|
|
6,669
|
|
|
Net cash provided by financing activities
|
|
|
6,100
|
|
|
|
9,022
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
87,629
|
|
|
|
48,935
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
104,419
|
|
|
|
91,796
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
192,048
|
|
|
$
|
140,731
|
|
|
|
|
|
|
|
|
|
|
|
|
Impax Laboratories, Inc.
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
Total adjusted net income, adjusted net income per diluted share
and adjusted EBITDA are not measures of financial performance
under generally accepted accounting principles (GAAP) and should
not be construed as substitutes for, or superior to, GAAP net
income, and net income per diluted share as a measure of financial
performance. However, management uses both GAAP financial measures
and the disclosed non-GAAP financial measures internally to
evaluate and manage the Company’s operations and to better
understand its business. Further, management believes the
inclusion of non-GAAP financial measures provides meaningful
supplementary information to and facilitates analysis by investors
in evaluating the Company’s financial performance, results of
operations and trends. The Company’s calculation of adjusted net
income, adjusted net income per diluted share and adjusted EBITDA,
may not be comparable to similarly designated measures reported by
other companies, since companies and investors may differ as to
what type of events warrant adjustment.
|
|
|
|
|
|
|
|
The following table reconciles reported net income to adjusted net
income.
|
|
|
|
|
|
|
|
(Unaudited, amounts in millions, except per share data)
|
|
Three months ended March 31,
|
|
|
|
2012
|
|
2011
|
|
Net income
|
|
$
|
12.4
|
|
|
$
|
13.9
|
|
Adjusted to add (deduct):
|
|
|
|
|
|
Gross profit earned on Zomig® Agreement(a)
|
|
|
30.0
|
|
|
|
-
|
|
Strategic inventory adjustment
|
|
|
5.2
|
|
|
|
-
|
|
Income tax effect
|
|
|
(12.5
|
)
|
|
|
-
|
|
Adjusted net income
|
|
$
|
35.1
|
|
|
$
|
13.9
|
|
|
|
|
|
|
|
Adjusted net income per diluted share
|
|
$
|
0.52
|
|
|
$
|
0.21
|
|
Net income per diluted share
|
|
$
|
0.18
|
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
Impax Laboratories, Inc.
Non-GAAP Financial Measures
|
|
|
|
|
|
The following table reconciles reported net income to adjusted
EBITDA.
|
|
|
|
|
|
(Unaudited, amounts in millions)
|
|
Three months ended March 31,
|
|
|
|
2012
|
|
2011
|
|
Net income
|
|
$
|
12.4
|
|
|
$
|
13.9
|
|
|
Adjusted to add (deduct):
|
|
|
|
|
|
Interest income
|
|
|
(0.3
|
)
|
|
|
(0.3
|
)
|
|
Depreciation, amortization and other
|
|
|
3.7
|
|
|
|
3.5
|
|
|
Income taxes
|
|
|
6.3
|
|
|
|
7.1
|
|
|
EBITDA
|
|
|
22.1
|
|
|
|
24.2
|
|
|
|
|
|
|
|
|
Adjusted to add:
|
|
|
|
|
|
Gross profit earned on Zomig® Agreement(a)
|
|
|
30.0
|
|
|
|
-
|
|
|
Strategic inventory adjustment
|
|
|
5.2
|
|
|
|
-
|
|
|
Share-based compensation
|
|
|
3.8
|
|
|
|
2.9
|
|
|
Adjusted EBITDA
|
|
$
|
61.1
|
|
|
$
|
27.1
|
|
|
|
|
|
|
|
|
(a)
|
|
During the specified product transition period pursuant to
the agreement, the Company will receive the benefit of the gross
profit ($30.0 million for the three months ended March 31, 2012)
from U.S. Zomig® sales commencing from January 1, 2012 and ending
when the Company commences commercialization of the Zomig®
products. The benefit of the gross profit received from
AstraZeneca is recorded as a reduction of the $130.0 million to be
paid by the Company to AstraZeneca during 2012 and is not
reflected within the Company’s income but included in the
Company’s adjusted net income. This reduction in the $130 million
to be paid to AstraZeneca will result in lower future amortization
expense in the GAAP results and will be excluded from future
adjusted results.
|
|
|
|
|
|
|
|
|
Source: Impax Laboratories, Inc.