Amneal Reports Fourth Quarter and Full Year 2021 Financial Results

March 02, 2022

‒ Q4 2021 Net Revenue of $537 million; GAAP Net Loss of $6 million; Diluted Loss per Share of $0.04 ‒
‒ Q4 2021 Adjusted Net Income of $54 million (1), Adjusted EBITDA (1) of $126 million; Adjusted Diluted EPS (1) of $0.18 ‒

‒ Full Year Net Revenue of $2.1 billion; GAAP Net Income of $11 million; Diluted EPS of $0.07 ‒
‒ Full Year 2021 Adjusted Net Income (1) of $258 million; Adjusted EBITDA (1) of $538 million; Adjusted Diluted EPS (1) of $0.85 ‒

‒ Provides 2022 Financial Guidance of $2.15 to $2.25 billion in net revenue and $540 to $560 million in adjusted EBITDA –

BRIDGEWATER, N.J.--(BUSINESS WIRE)--

Amneal Pharmaceuticals, Inc. (NYSE: AMRX) (“Amneal” or the “Company”) announced its results today for the fourth quarter and full year ended December 31, 2021.

“2021 was a transformational year for Amneal as we delivered strong financial results, including 18 percent adjusted EBITDA growth, and advanced our evolution into a diversified biopharmaceutical company. We continued to deepen our robust R&D pipeline and added compelling assets in key growth areas – including Injectables, Specialty and Biosimilars. We enter 2022 feeling great about our future growth prospects and well positioned as we focus on further diversifying and scaling in high-growth markets. We are proud of our team’s execution and confident in creating substantial value for all stakeholders,” said Chirag and Chintu Patel, Co-Chief Executive Officers.

Net revenue in the fourth quarter of 2021 was $537 million, an increase of 5% compared to $510 million in the fourth quarter of 2020. The increase was driven by Generic new product launches and growth in our promoted Specialty products, including Rytary® and Unithroid®, partially offset by price erosion. Net loss attributable to Amneal Pharmaceuticals, Inc. was $6 million in the fourth quarter of 2021 compared to a net loss of $3 million in the fourth quarter of 2020. Adjusted EBITDA(1) in the fourth quarter of 2021 was $126 million, an increase of 18% compared to the fourth quarter of 2020, reflective of higher adjusted gross profit driven by higher revenues, reduced material costs and operating efficiencies, partially offset by higher expenses. Adjusted diluted EPS(1) in the fourth quarter of 2021 was $0.18, an increase of 29% from $0.14 in the fourth quarter of 2020, which reflects growth in adjusted EBITDA(1).

Net revenue for the year ended December 31, 2021 was $2,094 million, an increase of 5% compared to $1,993 million for the year ended December 31, 2020. The increase was driven by Generic new product launches, growth in our promoted Specialty products, including Rytary® and Unithroid®, and growth in our AvKARE segment, partially offset by price erosion. Net income attributable to Amneal Pharmaceuticals, Inc. was $11 million for the year ended December 31, 2021 compared to net income of $91 million for the year ended December 31, 2020, which included a discrete tax benefit of $110 million related to the CARES Act. Adjusted EBITDA(1) for the year ended December 31, 2021 was $538 million, an increase of 18% compared to the year ended December 31, 2020, reflective of adjusted gross margin improvements in all three segments due to higher revenues, reduced material costs and operating efficiencies, which was partially offset by higher expenses. Adjusted diluted EPS(1) in the year ended December 31, 2021 was $0.85, an increase of 35% from $0.63 for the year ended December 31, 2020, which reflects growth in adjusted EBITDA(1).

(1) See “Non-GAAP Financial Measures” below.

2022 Financial Guidance

Amneal’s 2022 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 the United States of America (“GAAP”). The Company cannot provide a reconciliation between non-GAAP projections and the most directly comparable measures in accordance with GAAP without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. The items include, but are not limited to, acquisition-related expenses, restructuring expenses and benefits, asset impairments and other gains and losses. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results.

 

 

Full Year 2022 Guidance

Net revenue

 

$2.15 billion - $2.25 billion

Adjusted EBITDA (1)

 

$540 million - $560 million

Adjusted diluted EPS (2)

 

$0.80 - $0.85

Operating cash flow (3)

 

$225 million - $250 million

Capital expenditures

 

$75 million - $85 million

Weighted average diluted shares outstanding (4)

 

Approximately 307 million

(1)

  Includes 100% of EBITDA from the AvKARE acquisition.

(2)

  Accounts for 35% non-controlling interest in AvKARE.

(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.

Conference Call Information

Amneal will host a conference call and live webcast at 8:30 am Eastern Time on March 2, 2022 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 (844) 200-6205 (in the U.S.) or (929) 526-1599 (international callers). The access code for the call is 086998. A replay of the conference call will be posted shortly after the call and will be available for seven days. To access the replay, dial (866) 813-9403 (in the U.S.) or +44 (204) 525-0658 (international callers). The access code for the replay is 311554.

Amneal Pharmaceuticals, Inc. (NYSE: AMRX), headquartered in Bridgewater, NJ, is a fully-integrated essential medicines company. We make healthy possible through the development, manufacturing, and distribution of generic and specialty pharmaceuticals, primarily within the United States. The Company has a diverse portfolio of approximately 250 products in its Generics segment and is expanding across a broad range of complex products and therapeutic areas, including injectables and biosimilars. In its Specialty segment, Amneal has a growing portfolio of branded pharmaceutical products focused primarily on central nervous system and endocrine disorders, with a pipeline focused on unmet needs. Through its AvKARE segment, the Company is a distributor of pharmaceuticals and other products for the U.S. federal government, retail, and institutional markets. For more information, please visit www.amneal.com.

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 U.S. Private Securities Litigation Reform Act of 1995). Such forward-looking statements include statements regarding management’s intentions, plans, beliefs, expectations or forecasts for the future, including among other things: discussions of future operations; expected operating results and financial performance; impact of planned acquisitions and dispositions; the Company’s strategy for growth; product development; regulatory approvals; market position and expenditures. Words such as “plans,” “expects,” “will,” “anticipates,” “estimates” and similar words are intended to identify estimates and forward-looking statements.

The reader is cautioned not to rely on these forward-looking statements. These forward-looking statements are based on current expectations of future 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 dependence on the sales of a limited number of products for a substantial portion of our total revenues; 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; the impact of severe weather; the impact of the ongoing COVID-19 pandemic; 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 U.S. federal and state laws related to healthcare fraud abuse and health information privacy and security and changes in such laws; changes to Food and Drug Administration product approval requirements; the impact of healthcare reform and changes in coverage and reimbursement levels by governmental authorities and other third-party payers our dependence on third-party agreements for a portion of our product offerings; the impact of global economic conditions; our ability to identify, make and integrate acquisitions or investments in complementary businesses and products on advantageous terms; 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 obligations under a tax receivable agreement may be significant; and the high concentration of ownership of our Class A Common Stock and the fact that we are controlled by the Amneal Group. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements included herein speak only as of the date hereof and we undertake no obligation to revise or update such statements to reflect the occurrence of events or circumstances after the date hereof.

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 operation 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 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.

Amneal Pharmaceuticals, Inc.

Consolidated Statements of Operations

(Unaudited; In thousands, except per share amounts)

   

 

 

Three Months Ended
December 31, 2021

 

Year Ended
December 31,

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Net revenue

 

$

536,896

 

 

$

510,034

 

 

$

2,093,669

 

 

$

1,992,523

 

Cost of goods sold

 

 

348,490

 

 

 

342,962

 

 

 

1,302,004

 

 

 

1,329,551

 

Cost of goods sold impairment charges

 

 

22,004

 

 

 

 

 

 

22,692

 

 

 

34,579

 

Gross profit

 

 

166,402

 

 

 

167,072

 

 

 

768,973

 

 

 

628,393

 

Selling, general and administrative

 

 

97,224

 

 

 

84,687

 

 

 

365,504

 

 

 

326,727

 

Research and development

 

 

51,874

 

 

 

53,460

 

 

 

201,847

 

 

 

179,930

 

In-process research and development impairment charges

 

 

 

 

 

1,720

 

 

 

710

 

 

 

2,680

 

Intellectual property legal development expenses

 

 

1,142

 

 

 

3,701

 

 

 

7,716

 

 

 

10,655

 

Acquisition, transaction-related and integration expenses

 

 

836

 

 

 

3,585

 

 

 

8,055

 

 

 

8,988

 

Charges related to legal matters, net

 

 

6,000

 

 

 

 

 

 

25,000

 

 

 

5,860

 

Restructuring and other charges (credit)

 

 

1,069

 

 

 

(259

)

 

 

1,857

 

 

 

2,398

 

Change in fair value of contingent consideration

 

 

(100

)

 

 

 

 

 

200

 

 

 

 

Property losses and associated expenses, net

 

 

(2,818

)

 

 

 

 

 

5,368

 

 

 

 

Operating income

 

 

11,175

 

 

 

20,178

 

 

 

152,716

 

 

 

91,155

 

Other (expense) income:

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(33,957

)

 

 

(34,535

)

 

 

(136,325

)

 

 

(145,998

)

Foreign exchange (loss) gain, net

 

 

(170

)

 

 

8,392

 

 

 

(355

)

 

 

16,350

 

Gain on sale of international businesses, net

 

 

 

 

 

 

 

 

 

 

 

123

 

Other income, net

 

 

6,633

 

 

 

488

 

 

 

15,330

 

 

 

2,590

 

Total other expense, net

 

 

(27,494

)

 

 

(25,655

)

 

 

(121,350

)

 

 

(126,935

)

(Loss) income before income taxes

 

 

(16,319

)

 

 

(5,477

)

 

 

31,366

 

 

 

(35,780

)

Provision for (benefit from) income taxes

 

 

4,140

 

 

 

1,485

 

 

 

11,196

 

 

 

(104,358

)

Net (loss) income

 

 

(20,459

)

 

 

(6,962

)

 

 

20,170

 

 

 

68,578

 

Less: Net loss (income) attributable to non-controlling interests

 

 

14,082

 

 

 

3,925

 

 

 

(9,546

)

 

 

22,481

 

Net (loss) income attributable to Amneal Pharmaceuticals, Inc.

 

$

(6,377

)

 

$

(3,037

)

 

$

10,624

 

 

$

91,059

 

Net (loss) income per share attributable to Amneal Pharmaceuticals, Inc.'s Class A common stockholders:

 

 

 

 

 

 

 

 

Basic

 

$

(0.04

)

 

$

(0.02

)

 

$

0.07

 

 

$

0.62

 

Diluted

 

$

(0.04

)

 

$

(0.02

)

 

$

0.07

 

 

$

0.61

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

149,369

 

 

 

147,640

 

 

 

148,922

 

 

 

147,443

 

Diluted

 

 

149,369

 

 

 

147,640

 

 

 

151,821

 

 

 

148,913

 

Amneal Pharmaceuticals, Inc.

Condensed Consolidated Balance Sheets

(Unaudited; In thousands)

       

 

 

December 31, 2021

 

December 31, 2020

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

247,790

 

 

$

341,378

 

Restricted cash

 

 

8,949

 

 

 

5,743

 

Trade accounts receivable, net

 

 

662,583

 

 

 

638,895

 

Inventories

 

 

489,389

 

 

 

490,649

 

Prepaid expenses and other current assets

 

 

110,218

 

 

 

73,467

 

Related party receivables

 

 

1,179

 

 

 

1,407

 

Total current assets

 

 

1,520,108

 

 

 

1,551,539

 

Property, plant and equipment, net

 

 

514,158

 

 

 

477,754

 

Goodwill

 

 

593,017

 

 

 

522,814

 

Intangible assets, net

 

 

1,166,922

 

 

 

1,304,626

 

Operating lease right-of-use assets

 

 

39,899

 

 

 

33,947

 

Operating lease right-of-use assets - related party

 

 

20,471

 

 

 

24,792

 

Financing lease right-of-use assets

 

 

64,475

 

 

 

9,541

 

Financing lease right-of-use assets - related party

 

 

 

 

 

58,676

 

Other assets

 

 

20,614

 

 

 

22,344

 

Total assets

 

$

3,939,664

 

 

$

4,006,033

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

583,345

 

 

$

611,867

 

Current portion of long-term debt, net

 

 

30,614

 

 

 

44,228

 

Current portion of operating lease liabilities

 

 

9,686

 

 

 

6,474

 

Current portion of operating and financing lease liabilities - related party

 

 

2,636

 

 

 

3,978

 

Current portion of financing lease liabilities

 

 

3,101

 

 

 

1,794

 

Current portion of note payable - related party

 

 

 

 

 

1,000

 

Related party payable - short term

 

 

47,861

 

 

 

7,561

 

Total current liabilities

 

 

677,243

 

 

 

676,902

 

Long-term debt, net

 

 

2,680,053

 

 

 

2,735,264

 

Note payable - related party

 

 

38,038

 

 

 

36,440

 

Operating lease liabilities

 

 

32,894

 

 

 

30,182

 

Operating lease liabilities - related party

 

 

18,783

 

 

 

23,049

 

Financing lease liabilities

 

 

60,251

 

 

 

2,318

 

Financing lease liabilities - related party

 

 

 

 

 

60,193

 

Related party payable - long term

 

 

9,619

 

 

 

1,584

 

Other long-term liabilities

 

 

38,903

 

 

 

83,365

 

Total long-term liabilities

 

 

2,878,541

 

 

 

2,972,395

 

Redeemable non-controlling interests

 

 

16,907

 

 

 

11,804

 

Total stockholders' equity

 

 

366,973

 

 

 

344,932

 

Total liabilities and stockholders' equity

 

$

3,939,664

 

 

$

4,006,033

 

Amneal Pharmaceuticals, Inc.

Consolidated Statements of Cash Flows

(Unaudited; In thousands)

   

 

 

Year Ended December 31,

 

 

 

2021

 

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

Net income

 

$

20,170

 

 

$

68,578

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

233,406

 

 

 

235,387

 

Unrealized foreign currency loss (gain)

 

 

175

 

 

 

(16,728

)

Amortization of debt issuance costs

 

 

9,203

 

 

 

8,678

 

Gain on sale of international businesses, net

 

 

 

 

 

(123

)

Intangible asset impairment charges

 

 

23,402

 

 

 

37,259

 

Non-cash restructuring and asset-related (benefit) charges

 

 

 

 

 

(536

)

Change in fair value of contingent consideration

 

 

200

 

 

 

 

Stock-based compensation

 

 

28,412

 

 

 

20,750

 

Inventory provision

 

 

54,660

 

 

 

75,236

 

Insurance recoveries for property and equipment losses

 

 

(5,000

)

 

 

 

Non-cash property and equipment losses

 

 

5,152

 

 

 

 

Other operating charges and credits, net

 

 

5,633

 

 

 

11,818

 

Changes in assets and liabilities:

 

 

 

 

Trade accounts receivable, net

 

 

(23,621

)

 

 

16,787

 

Inventories

 

 

(49,015

)

 

 

(113,782

)

Prepaid expenses, other current assets and other assets

 

 

(21,981

)

 

 

33,312

 

Related party receivables

 

 

7,311

 

 

 

412

 

Accounts payable, accrued expenses and other liabilities

 

 

(43,932

)

 

 

307

 

Related party payables

 

 

(2,355

)

 

 

1,646

 

Net cash provided by operating activities

 

 

241,820

 

 

 

379,001

 

Cash flows from investing activities:

 

 

 

 

Purchases of property, plant and equipment

 

 

(47,728

)

 

 

(56,445

)

Acquisition of product rights and licenses

 

 

(1,700

)

 

 

(4,350

)

Deposits for future acquisition of property, plant, and equipment

 

 

(3,211

)

 

 

(5,391

)

Acquisitions, net of cash acquired

 

 

(146,543

)

 

 

(251,360

)

Proceeds from insurance recoverable related to property loss

 

 

5,000

 

 

 

 

Net cash used in investing activities

 

 

(194,182

)

 

 

(317,546

)

Cash flows from financing activities:

 

 

 

 

Payments of deferred financing costs and debt extinguishment costs

 

 

 

 

 

(4,102

)

Proceeds from issuance of debt

 

 

 

 

 

180,000

 

Payments of principal on debt, financing leases and other

 

 

(78,086

)

 

 

(35,933

)

Proceeds from exercise of stock options

 

 

853

 

 

 

321

 

Employee payroll tax withholding on restricted stock unit vesting

 

 

(2,664

)

 

 

(863

)

Distribution of earnings to and acquisition of non-controlling interests

 

 

 

 

 

(3,300

)

Tax distributions to non-controlling interests

 

 

(57,132

)

 

 

(3,237

)

Payments of principal on financing lease - related party

 

 

(93

)

 

 

(1,079

)

Repayment of related party note

 

 

(1,000

)

 

 

 

Net cash (used in) provided by financing activities

 

 

(138,122

)

 

 

131,807

 

Effect of foreign exchange rate on cash

 

 

102

 

 

 

1,037

 

Net (decrease) increase in cash, cash equivalents, and restricted cash

 

 

(90,382

)

 

 

194,299

 

Cash, cash equivalents, and restricted cash - beginning of period

 

 

347,121

 

 

 

152,822

 

Cash, cash equivalents, and restricted cash - end of period

 

$

256,739

 

 

$

347,121

 

Cash and cash equivalents - end of period

 

$

247,790

 

 

$

341,378

 

Restricted cash - end of period

 

$

8,949

 

 

$

5,743

 

Cash, cash equivalents, and restricted cash - end of period

 

$

256,739

 

 

$

347,121

 

Amneal Pharmaceuticals, Inc.

Non-GAAP Reconciliations

(Unaudited, In thousands)


Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA

   

 

 

Three Months Ended
December 31,

 

Year Ended December 31,

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

2020

 

Net (loss) income

 

$

(20,459

)

 

$

(6,962

)

 

$

20,170

 

$

68,578

 

Adjusted to add (deduct):

 

 

 

 

 

 

 

 

Interest expense, net

 

 

33,957

 

 

 

34,535

 

 

 

136,325

 

 

145,998

 

Income tax benefit

 

 

4,140

 

 

 

1,485

 

 

 

11,196

 

 

(104,358

)

Depreciation and amortization

 

 

61,183

 

 

 

59,873

 

 

 

233,406

 

 

235,387

 

EBITDA (Non-GAAP)

 

$

78,821

 

 

$

88,931

 

 

$

401,097

 

$

345,605

 

Adjusted to add (deduct):

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

7,742

 

 

 

5,133

 

 

 

28,412

 

 

20,750

 

Acquisition, site closure, and idle facility

expenses (1)

 

 

6,027

 

 

 

6,777

 

 

 

20,003

 

 

23,384

 

Restructuring and other (credit) charges (2)

 

 

 

 

 

(259

)

 

 

788

 

 

2,398

 

Inventory related charges (3)

 

 

16

 

 

 

395

 

 

 

261

 

 

6,574

 

Charges related to legal matters (4)

 

 

6,000

 

 

 

 

 

 

25,000

 

 

5,610

 

Asset impairment charges (5)

 

 

22,353

 

 

 

5,505

 

 

 

24,105

 

 

43,629

 

Foreign exchange (gain) loss

 

 

170

 

 

 

(8,392

)

 

 

355

 

 

(16,350

)

Gain on sale of international businesses, net

 

 

 

 

 

 

 

 

 

 

(123

)

Research & development milestone payments

 

 

4,566

 

 

 

7,626

 

 

 

25,795

 

 

22,771

 

Change in fair value of contingent consideration (6)

 

 

(100

)

 

 

 

 

 

200

 

 

 

Property losses and related expenses, net (7)

 

 

(2,818

)

 

 

 

 

 

5,368

 

 

 

Other

 

 

3,592

 

 

 

1,696

 

 

 

6,680

 

 

1,926

 

Adjusted EBITDA (Non-GAAP)

 

$

126,369

 

 

$

107,412

 

 

$

538,064

 

$

456,174

 

Amneal Pharmaceuticals, Inc.

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

   

 

 

Three Months Ended
December 31,

 

Year Ended December 31,

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Net (loss) income

 

$

(20,459

)

 

$

(6,962

)

 

$

20,170

 

 

$

68,578

 

Adjusted to add (deduct):

 

 

 

 

 

 

 

 

Non-cash interest

 

 

2,123

 

 

 

2,015

 

 

 

8,355

 

 

 

7,900

 

GAAP income tax (benefit) expense

 

 

4,140

 

 

 

1,485

 

 

 

11,196

 

 

 

(104,358

)

Amortization

 

 

41,543

 

 

 

40,833

 

 

 

164,069

 

 

 

163,842

 

Stock-based compensation expense

 

 

7,742

 

 

 

5,133

 

 

 

28,412

 

 

 

20,750

 

Acquisition, site closure, and idle facility expenses (1)

 

 

6,027

 

 

 

6,777

 

 

 

20,003

 

 

 

23,384

 

Restructuring and other (credit) charges (2)

 

 

 

 

 

(259

)

 

 

788

 

 

 

2,398

 

Inventory related charges (3)

 

 

16

 

 

 

395

 

 

 

261

 

 

 

6,574

 

Charges related to legal matters (4)

 

 

6,000

 

 

 

 

 

 

25,000

 

 

 

5,610

 

Asset impairment charges (5)

 

 

22,353

 

 

 

5,505

 

 

 

24,105

 

 

 

43,629

 

Foreign exchange loss (8)

 

 

 

 

 

(8,392

)

 

 

 

 

 

(16,350

)

Gain on sale of international businesses, net

 

 

 

 

 

 

 

 

 

 

 

(123

)

Research & development milestone payments

 

 

4,566

 

 

 

7,626

 

 

 

25,795

 

 

 

22,771

 

Change in fair value of contingent consideration (6)

 

 

(100

)

 

 

 

 

 

200

 

 

 

 

Property losses and related expenses, net (7)

 

 

(2,818

)

 

 

 

 

 

5,368

 

 

 

 

Other

 

 

3,592

 

 

 

1,696

 

 

 

6,680

 

 

 

1,926

 

Income tax (9)

 

 

(19,313

)

 

 

(12,411

)

 

 

(75,777

)

 

 

(54,271

)

Net income attributable to non-controlling interests not associated with our Class B shares

 

 

(1,191

)

 

 

(89

)

 

 

(6,582

)

 

 

(1,240

)

Adjusted net income (Non-GAAP)

 

$

54,221

 

 

$

43,352

 

 

$

258,043

 

 

$

191,020

 

Adjusted diluted earnings per share (Non-GAAP) (10)

 

$

0.18

 

 

$

0.14

 

 

$

0.85

 

 

$

0.63

 

Amneal Pharmaceuticals, Inc.

N on-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 EPS

   

(1)

 

Acquisition, site closure, and idle facility expenses for the three months and year ended December 31, 2021 primarily included (i) transaction and integration costs associated with the acquisition of Kashiv Specialty Pharmaceuticals, LLC (“KSP”); (ii) integration costs associated with the acquisition of AvKARE; (iii) site closure costs associated with the planned cessation of manufacturing at our Hauppauge, NY facility; (iv) transaction and integration costs associated with the acquisition of Puniska Healthcare Pvt. Ltd. Acquisition and (v.) site closure expenses associated with damage from Tropical Storm Ida to two of our facilities in New Jersey. Acquisition, site closure, and idle facility expenses for the three months and year ended December 31, 2020 primarily included (i) system integration costs associated with the acquisition of Impax Laboratories, LLC, (ii) integration activities associated with the acquisition of AvKARE; (iii) expenses associated with the then pending acquisition of KSP; and (iv.) plant closure and redundant employee costs related to the planned cessation of manufacturing at our Hauppauge, NY facility.

 

 

 

 

 

 

(2)

 

For the three months ended December 31, 2020, restructuring and other (credit) charges consisted of a change in estimate to reduce the amount accrued for the cost of benefits provided pursuant to our severance programs for employees impacted at our Hauppauge, NY facility. For the year ended December 31, 2021, restructuring and other charges primarily consisted of cash severance charges associated with cost of benefits for former senior executives and management employees. For the year ended December 31, 2020, restructuring and other charges (credit) primarily consisted of the cost of benefits provided pursuant to our severance programs for former senior executives and management employees, net of an asset-related credit associated with the contractual cancellation of an asset retirement obligation related to a lease in Hayward, CA.

 

 

 

 

 

 

(3)

 

For the three months and year ended December 31, 2021 and 2020, inventory related charges represented inventory obsolescence and related expenses associated with recalls.

 

 

 

 

 

 

(4)

 

For the three months and year ended December 31, 2021, charges related to legal matters of $6 million and $25 million, respectively, were for legal claims in our Corporate segment. For the year ended December 31, 2020, charges related to legal matters of $6 million were for commercial legal claims in our Generics segment.

 

 

 

(5)

 

Asset impairment charges for the three months and year ended December 31, 2021 and 2020 were primarily associated with the write-off of intangible assets and equipment, except for equipment discussed in (7) below.

 

 

 

 

 

 

(6)

 

Contingent consideration was recorded in connection with the acquisition of Kashiv Specialty Pharmaceuticals, LLC.

 

 

 

 

 

 

(7)

 

Property losses and associated expenses, net for the three months and year ended December 31, 2021 were associated with damage from Tropical Storm Ida to two of our facilities in New Jersey, net of insurance recoveries. Expenses consisted of impairment of equipment and inventory, and repairs and maintenance and salaries and benefits.

 

 

 

 

 

 

(8)

 

Effective January 1, 2021, the Company does not exclude foreign currency gains or losses from the calculations of adjusted net income and adjusted diluted EPS.

 

 

 

 

 

 

(9)

 

The Non-GAAP effective tax rates for the three months ended December 31, 2021 and 2020 were 26.3% and 22.3%, respectively. The Non-GAAP tax rates for the years ended December 31, 2021 and 2020 were 22.7% and 22.1%, respectively.

 

 

 

(10)

 

For the three months and year ended December 31, 2021, the calculation of adjusted diluted EPS utilized weighted average diluted shares outstanding of 304.4 million and 303.9 million, respectively, which consisted of Class A common stock and Class B common stock under the if-converted method. For the three months and year ended December 31, 2020, the calculation of adjusted diluted EPS utilized weighted average diluted shares outstanding of 301.9 million and 301.0 million, respectively, which consisted of Class A common stock and Class B common stock under the if-converted method.

Amneal Pharmaceuticals, Inc.

Generics Segment

Reconciliation of GAAP to Non-GAAP Operating Results (1)

(Unaudited; Table in thousands)

 

 

 

Three Months Ended December 31, 2021

 

Three Months Ended December 31, 2020

 

 

As Reported

 

Adjustments

 

Non-GAAP

 

As Reported

 

Adjustments

 

Non-GAAP

Net revenue

 

$

346,266

 

 

$

 

 

$

346,266

 

 

$

342,145

 

 

$

 

 

$

342,145

 

Cost of goods sold (2)

 

 

227,446

 

 

 

(16,558

)

 

 

210,888

 

 

 

227,581

 

 

 

(14,861

)

 

 

212,720

 

Cost of goods sold impairment charges (3)

 

 

22,004

 

 

 

(22,004

)

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

96,816

 

 

 

38,562

 

 

 

135,378

 

 

 

114,564

 

 

 

14,861

 

 

 

129,425

 

Gross margin %

 

 

28.0

%

 

 

 

 

39.1

%

 

 

33.5

%

 

 

 

 

37.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative (4)

 

 

18,000

 

 

 

(861

)

 

 

17,139

 

 

 

13,556

 

 

 

(1,077

)

 

 

12,479

 

Research and development (5)

 

 

43,818

 

 

 

(4,595

)

 

 

39,223

 

 

 

41,486

 

 

 

(7,074

)

 

 

34,412

 

In-process research and development impairment charges (3)

 

 

 

 

 

 

 

 

 

 

 

1,720

 

 

 

(1,720

)

 

 

 

Intellectual property legal development expenses

 

 

1,056

 

 

 

 

 

 

1,056

 

 

 

3,700

 

 

 

 

 

 

3,700

 

Property losses and associated expenses (6)

 

 

(2,818

)

 

 

2,818

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition, transaction-related and integration expenses

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

(3

)

 

 

 

Restructuring and other (credit) charges

 

 

 

 

 

 

 

 

 

 

 

(456

)

 

 

456

 

 

 

 

Operating income

 

$

36,760

 

 

$

41,200

 

 

$

77,960

 

 

$

54,555

 

 

$

24,279

 

 

$

78,834

 

 

(1)

 

Operating results for the sale of Amneal products by AvKARE were included in our Generics segment.

 

 

 

 

 

 

 

 

(2)

 

Adjustments for the three months ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($1.4 million and $1.0 million), amortization expense ($10.0 million and $10.1 million), site closure and idle facility expenses ($4.8 million and $2.7 million), inventory related charges (immaterial and $0.4 million), asset impairment charges ($0.4 million and none), and other (none and $0.7 million). For the three months ended December 31, 2021 and 2020, site closure expenses were primarily associated with the planned cessation of manufacturing at our Hauppauge, NY facility. For the three months ended December 31, 2020, asset impairment charges were associated with the write-off of equipment.

 

 

 

 

 

 

 

 

(3)

 

Adjustments for the three months ended December 31, 2020 were associated with intangible asset impairments.

 

 

 

 

 

 

 

 

(4)

 

Adjustments for the three months ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($0.5 million and $0.3 million), site closure costs ($0.4 million and $0.5 million), and asset impairment charges (none and $0.3 million).

 

 

 

 

 

(5)

 

Adjustments for the three months ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($1.0 million and $0.8 million), research and development milestones ($3.6 million and $2.6 million), asset impairment charges (none and $3.5 million), and other (none and $0.2 million).

 

 

 

 

 

 

 

 

(6)

 

Adjustments for the three months December 31, 2021 were comprised of expenses associated with damage from Tropical Storm Ida to two of our facilities in New Jersey of $2.2 million, net of insurance recoveries of $5 million. Expenses consisted of impairment of equipment and inventory, and repairs and maintenance and salaries and benefits.

Amneal Pharmaceuticals, Inc.

Generics Segment

Reconciliation of GAAP to Non-GAAP Operating Results (1)

(Unaudited; Table in thousands)

 

 

 

Year Ended
December 31, 2021

 

Year Ended
December 31, 2020

 

 

As Reported

 

Adjustments

 

Non-GAAP

 

As Reported

 

Adjustments

 

Non-GAAP

Net revenue

 

$

1,366,338

 

 

$

 

 

$

1,366,338

 

 

$

1,343,210

 

 

$

 

 

$

1,343,210

 

Cost of goods sold (2)

 

 

825,568

 

 

 

(55,263

)

 

 

770,305

 

 

 

894,422

 

 

 

(65,230

)

 

 

829,192

 

Cost of goods sold impairment charges (3)

 

 

22,692

 

 

 

(22,692

)

 

 

 

 

 

34,579

 

 

 

(34,579

)

 

 

 

Gross profit

 

 

518,078

 

 

 

77,955

 

 

 

596,033

 

 

 

414,209

 

 

 

99,809

 

 

 

514,018

 

Gross margin %

 

 

37.9

%

 

 

 

 

43.6

%

 

 

30.8

%

 

 

 

 

38.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative (4)

 

 

64,500

 

 

 

(2,664

)

 

 

61,836

 

 

 

56,134

 

 

 

(5,299

)

 

 

50,835

 

Research and development (5)

 

 

158,365

 

 

 

(19,626

)

 

 

138,739

 

 

 

150,068

 

 

 

(23,137

)

 

 

126,931

 

In-process research and development impairment charges (3)

 

 

710

 

 

 

(710

)

 

 

 

 

 

2,680

 

 

 

(2,680

)

 

 

 

Intellectual property legal development expenses

 

 

7,562

 

 

 

 

 

 

7,562

 

 

 

10,647

 

 

 

 

 

 

10,647

 

Property losses and associated expenses (6)

 

 

5,368

 

 

 

(5,368

)

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition, transaction-related and integration expenses

 

 

 

 

 

 

 

 

 

 

 

328

 

 

 

(328

)

 

 

 

Charges related to legal matters, net (7)

 

 

 

 

 

 

 

 

 

 

 

5,610

 

 

 

(5,610

)

 

 

 

Restructuring and other charges (credit)

 

 

80

 

 

 

(80

)

 

 

 

 

 

(614

)

 

 

614

 

 

 

 

Operating income

 

$

281,493

 

 

$

106,403

 

 

$

387,896

 

 

$

189,356

 

 

$

136,249

 

 

$

325,605

 

 

(1)

 

Operating results for the sale of Amneal products by AvKARE were included in our Generics segment.

 

 

 

 

 

 

 

 

(2)

 

Adjustments for the years ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($4.7 million and $4.2 million), amortization expense ($38.0 million and $41.9 million), site closure and idle facility expenses ($11.0 million and $10.6 million), inventory related charges ($0.2 million and $5.5 million), asset impairment charges ($0.7 million and $1.2 million), and other ($0.7 million and $1.8 million). For the years ended December 31, 2021 and 2020, site closure and idle facility expenses were primarily associated with the planned cessation of manufacturing at our Hauppauge, NY facility. For the years ended December 31, 2021 and 2020, asset impairment charges were associated with the write-off of equipment.

 

 

 

 

 

 

 

 

(3)

 

Adjustments for the years ended December 31, 2021 and 2020 were associated with intangible asset impairments.

 

 

 

 

 

 

 

 

(4)

 

Adjustments for the years ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($1.7 million, and $1.3 million), site closure costs ($0.9 million and $3.9 million), inventory related charges (none and $0.6 million), asset impairment charges (immaterial and $0.7 million), and other ($0.1 million and $(1.2) million).

 

 

 

 

 

(5)

 

Adjustments for the years ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($3.9 million and $2.6 million), research and development milestones ($15.4 million and $15.8 million), asset impairment expense (none and $3.8 million), and other ($0.3 million and $0.9 million).

 

 

 

 

 

 

 

 

(6)

 

Adjustments for the year ended December 31, 2021 were comprised of expenses associated with damage from Tropical Storm Ida to two of our facilities in New Jersey of $10.4 million, net of insurance recoveries of $5 million. Expenses consisted of impairment of equipment and inventory, and repairs and maintenance and salaries and benefits.

 

 

 

 

 

 

 

 

(7)

 

Adjustments for the year ended December 31, 2020 were associated with a commercial legal claim.

Amneal Pharmaceuticals, Inc.

Specialty Segment

Reconciliation of GAAP to Non-GAAP Operating Results

(Unaudited; Table in thousands)

   

 

 

Three Months Ended December 31, 2021

 

Three Months Ended December 31, 2020

 

 

As Reported

 

Adjustments

 

Non-GAAP

 

As Reported

 

Adjustments

 

Non-GAAP

Net revenue

 

$

101,008

 

 

$

 

 

$

101,008

 

 

$

85,466

 

 

$

 

 

$

85,466

 

Cost of goods sold (1)

 

 

49,378

 

 

 

(27,483

)

 

 

21,895

 

 

 

47,128

 

 

 

(25,127

)

 

 

22,001

 

Gross profit

 

 

51,630

 

 

 

27,483

 

 

 

79,113

 

 

 

38,338

 

 

 

25,127

 

 

 

63,465

 

Gross margin %

 

 

51.1

%

 

 

 

 

78.3

%

 

 

44.9

%

 

 

 

 

74.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative (2)

 

 

21,733

 

 

 

(749

)

 

 

20,984

 

 

 

18,924

 

 

 

(516

)

 

 

18,408

 

Research and development (3)

 

 

8,056

 

 

 

(1,300

)

 

 

6,756

 

 

 

11,974

 

 

 

(5,127

)

 

 

6,847

 

Intellectual property legal development expenses

 

 

86

 

 

 

 

 

 

86

 

 

 

1

 

 

 

 

 

 

1

 

Change in fair value of contingent consideration(4)

 

 

(100

)

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition, transaction-related and integration expenses

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

(2

)

 

 

 

Operating income

 

$

21,855

 

 

$

29,432

 

 

$

51,287

 

 

$

7,437

 

 

$

30,772

 

 

$

38,209

 

 

(1)

 

Adjustments for the three months ended December 31, 2021 and 2020 were comprised of amortization expense.

 

 

 

 

 

 

 

 

(2)

 

Adjustments for the three months ended December 31, 2021 and 2020 were primarily comprised of stock-based compensation expense.

 

 

 

 

 

 

 

 

(3)

 

Adjustments for the three months ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($0.3 million and $0.1 million) and research and development milestones ($1.0 million and $5.0 million).

 

 

 

 

 

 

 

 

(4)

 

Contingent consideration was recorded in connection with the acquisition of Kashiv Specialty Pharmaceuticals, LLC.

Amneal Pharmaceuticals, Inc.

Specialty Segment

Reconciliation of GAAP to Non-GAAP Operating Results

(Unaudited; Table in thousands)

   

 

 

Year Ended
December 31, 2021

 

Year Ended
December 31, 2020

 

 

As Reported

 

Adjustments

 

Non-GAAP

 

As Reported

 

Adjustments

 

Non-GAAP

Net revenue

 

$

378,319

 

 

$

 

 

$

378,319

 

 

$

355,567

 

 

$

 

 

$

355,567

 

Cost of goods sold (1)

 

 

193,562

 

 

 

(109,979

)

 

 

83,583

 

 

 

192,910

 

 

 

(101,144

)

 

 

91,766

 

Gross profit

 

 

184,757

 

 

 

109,979

 

 

 

294,736

 

 

 

162,657

 

 

 

101,144

 

 

 

263,801

 

Gross margin %

 

 

48.8

%

 

 

 

 

77.9

%

 

 

45.7

%

 

 

 

 

74.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative (2)

 

 

84,481

 

 

 

(2,830

)

 

 

81,651

 

 

 

75,917

 

 

 

(3,475

)

 

 

72,442

 

Research and development (3)

 

 

43,482

 

 

 

(11,521

)

 

 

31,961

 

 

 

29,862

 

 

 

(7,621

)

 

 

22,241

 

Intellectual property legal development expenses

 

 

154

 

 

 

 

 

 

154

 

 

 

8

 

 

 

 

 

 

8

 

Change in fair value of contingent consideration(4)

 

 

200

 

 

 

(200

)

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition, transaction-related and integration expenses

 

 

16

 

 

 

(16

)

 

 

 

 

 

85

 

 

 

(85

)

 

 

 

Charges related to legal matters, net

 

 

 

 

 

 

 

 

 

 

 

250

 

 

 

 

 

 

250

 

Operating income

 

$

56,424

 

 

$

124,546

 

 

$

180,970

 

 

$

56,535

 

 

$

112,325

 

 

$

168,860

 

 

(1)

 

Adjustments for the years ended December 31, 2021 and 2020 were comprised of amortization expense.

 

 

 

 

 

 

 

 

(2)

 

Adjustments for the years ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($2.8 million and $2.1 million) and other (none and $1.4 million).

 

 

 

 

 

 

 

 

(3)

 

Adjustments for the years ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($1.1 million and $0.6 million) and research and development milestones ($10.4 million and $7 million).

 

 

 

 

 

 

 

 

(4)

 

Contingent consideration was recorded in connection with the acquisition of Kashiv Specialty Pharmaceuticals, LLC.

Amneal Pharmaceuticals, Inc.

AvKARE Segment

Reconciliation of GAAP to Non-GAAP Operating Results (1)

(Unaudited; Table in thousands)

   

 

 

Three Months Ended December 31, 2021

 

Three Months Ended December 31, 2020

 

 

As Reported

 

Adjustments

 

Non-GAAP

 

As Reported

 

Adjustments

 

Non-GAAP

Net revenue

 

$

89,622

 

 

$

 

 

$

89,622

 

 

$

82,423

 

 

$

 

 

$

82,423

 

Cost of goods sold

 

 

71,666

 

 

 

 

 

 

71,666

 

 

 

68,253

 

 

 

 

 

 

68,253

 

Gross profit

 

 

17,956

 

 

 

 

 

 

17,956

 

 

 

14,170

 

 

 

 

 

 

14,170

 

Gross margin %

 

 

20.0

%

 

 

 

 

20.0

%

 

 

17.2

%

 

 

 

 

17.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative (2)

 

 

15,932

 

 

 

(8,093

)

 

 

7,839

 

 

 

16,735

 

 

 

(8,694

)

 

 

8,041

 

Acquisition, transaction-related and integration expenses (3)

 

 

 

 

 

 

 

 

 

 

 

641

 

 

 

(641

)

 

 

 

Operating income (loss)

 

$

2,024

 

 

$

8,093

 

 

$

10,117

 

 

$

(3,206

)

 

$

9,335

 

 

$

6,129

 

 

(1)

 

Operating results for the sale of Amneal products by AvKARE were included in our Generics segment.

 

 

 

 

 

 

 

 

(2)

 

Adjustments for the three months ended December 31, 2021 and 2020, respectively, were comprised of amortization ($6.2 million and $8.7 million) and other ($1.9 million and none).

 

 

 

 

 

 

 

 

(3)

 

Adjustments for the three months ended December 31, 2020 were comprised of finance integration expenses.

Amneal Pharmaceuticals, Inc.

AvKARE Segment

Reconciliation of GAAP to Non-GAAP Operating Results (1)

(Unaudited; Table in thousands)

   

 

 

Year Ended
December 31, 2021

 

Year Ended
December 31, 2020 (2)

 

 

As Reported

 

Adjustments

 

Non-GAAP

 

As Reported

 

Adjustments

 

Non-GAAP

Net revenue

 

$

349,012

 

 

$

 

 

$

349,012

 

 

$

293,746

 

 

$

 

 

$

293,746

 

Cost of goods sold

 

 

282,874

 

 

 

 

 

 

282,874

 

 

 

242,219

 

 

 

 

 

 

242,219

 

Gross profit

 

 

66,138

 

 

 

 

 

 

66,138

 

 

 

51,527

 

 

 

 

 

 

51,527

 

Gross margin %

 

 

19.0

%

 

 

 

 

19.0

%

 

 

17.5

%

 

 

 

 

17.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative (3)

 

 

57,918

 

 

 

(26,764

)

 

 

31,154

 

 

 

58,544

 

 

 

(31,878

)

 

 

26,666

 

Acquisition, transaction-related and integration expenses (4)

 

 

1,422

 

 

 

(1,422

)

 

 

 

 

 

641

 

 

 

(641

)

 

 

 

Operating income (loss)

 

$

6,798

 

 

$

28,186

 

 

$

34,984

 

 

$

(7,658

)

 

$

32,519

 

 

$

24,861

 

 

(1)

 

Operating results for the sale of Amneal products by AvKARE were included in our Generics segment.

 

 

 

 

 

 

 

 

(2)

 

Our AvKARE segment includes the results of operations of AvKARE from January 31, 2020, the date of the acquisition, through December 31, 2020.

 

 

 

 

 

 

 

 

(3)

 

Adjustments for the years ended December 31, 2021 and 2020, respectively, were comprised of amortization ($24.7 million and $31.9 million) and other ($2.1 million and none).

 

 

 

 

 

 

 

 

(4)

 

Adjustments for the year ended December 31, 2021 and 2020 were comprised of finance integration expenses.

 

Anthony DiMeo
Senior Director, Investor Relations
anthony.dimeo@amneal.com

Source: Amneal Pharmaceuticals, Inc.