Mr. J. Michael Pearson reports
VALEANT PHARMACEUTICALS REPORTS SECOND QUARTER 2014 FINANCIAL RESULTS
Valeant Pharmaceuticals International Inc. has released its second-quarter financial results for 2014.
Highlights:
- 2014 second-quarter total revenue $2.0-billion; an increase of 86 per cent over the prior year:
- Overall organic growth was 4 per cent for same store sales and 8 per cent pro forma, excluding divested facial injectable products;
- Bausch + Lomb grew 12 per cent;
- 2014 second-quarter generally accepted accounting principles earnings per share 37 cents; cash EPS $1.91, an increase of 43 per cent;
- 2014 second-quarter GAAP operating cash flow $376-million;
- Adjusted operating cash flow $500-million;
- Highlights of the second quarter:
- Launched 17 new products in the United States year to date;
- Sold facial injectable assets to Galderma S.A. for approximately $1.4-billion; over $300-million gain;
- Proceeds will be used to finance Allergan and/or deploy on additional business development opportunities;
- Received FDA approval for Jublia earlier than expected; stronger than anticipated label;
- Reached agreement with Irish government and unions to successfully restructure the Bausch + Lomb contact lens plant in Ireland;
- Signed three small, but critical business development deals in Indonesia, the Middle East and North Africa, and Asian coloured contact lens;
- Items to be discussed on the conference call scheduled for 8 a.m. ET July 31, 2014:
- Second-quarter 2014 review;
- Financial guidance for 2014;
- Financial outlook for 2015 to 2016;
- Allergan update;
- Presentation immediately available under the investor relations tab on Valeant's website.
"Valeant once again delivered strong quarterly results and, as expected, organic growth has accelerated from the first quarter," stated J. Michael Pearson, chairman and chief executive officer. "As we look across the entire business, I have never been more confident about the growth trajectory across the entire company. For the first time, we are providing a financial outlook for revenue and organic growth, by business unit and geography, for 2015 and 2016 so that investors can both model and track our performance going forward."
Valeant second-quarter financial results
Valeant's total revenues were $2.0-billion, up 86 per cent compared with the second quarter of 2013 driven by strong growth in almost all of the company's businesses, including a rebound in the company's emerging markets in Europe (same store sales organic growth of 13 per cent), continued strong results in Asia (same store sales organic growth of 17 per cent), and robust performance in the U.S. contact lens business (organic growth of 37 per cent) and the U.S. Bausch + Lomb consumer businesses (organic growth of 12 per cent).
Same store organic product sales growth for Valeant was 4 per cent in the second quarter of 2014, while pro forma organic growth was 8 per cent, both which exclude certain aesthetic products that were divested to Galderma S.A., as well as 12-per-cent organic growth in the company's Bausch + Lomb businesses. Excluding the impact of generics, same store sales organic product sales growth was 10 per cent and pro forma organic product sales growth for Valeant was 11 per cent. As mentioned in previous conference calls, Valeant continues to expect a significant acceleration of organic growth in the second half of the year.
The company reported net income of $126-million for the second quarter of 2014, or 37 cents per diluted share. On a cash EPS basis, adjusted income was $651-million or $1.91 per diluted share, an increase of 43 per cent over the prior year. GAAP cash flow from operations was $376-million in the second quarter of 2014, an increase of 23 per cent over the second quarter of 2013, and adjusted cash flow from operations was $500-million, an increase of 18 per cent over the prior year.
Conference call and webcast information
The company will host a conference call and a live Internet webcast along with a slide presentation today at 8 a.m. ET (5 a.m. PT), July 31, 2014, to discuss its second-quarter financial results for 2014. The dial-in number to participate on this call is 877-876-8393, confirmation code 72826220. International callers should dial 973-200-3961, confirmation code 72826220. A replay will be available approximately two hours following the conclusion of the conference call through Aug. 9, 2014, and can be accessed by dialling 855-859-2056, or 404-537-3406, confirmation code 72826220. The live webcast of the conference call may be accessed through the investor relations section of the company's corporate website.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in millions of dollars, except per share amounts)
Three months ended Six months ended
June 30, June 30,
2014 2013 2014 2013
Product sales $ 1,994.1 $ 1,063.5 $ 3,845.2 $ 2,102.4
Other revenues 47.0 32.2 82.1 61.7
---------- ---------- ---------- ----------
Total revenues 2,041.1 1,095.7 3,927.3 2,164.1
Cost of goods sold (exclusive of amortization and impairments of
finite-lived intangible assets shown separately below) 569.6 283.2 1,073.7 568.1
Cost of other revenues 16.0 14.5 30.3 29.9
Selling, general and administrative 515.7 257.3 997.7 499.2
Research and development 66.5 24.5 127.8 48.3
Acquisition-related contingent consideration 1.9 3.7 10.8 1.5
In-process research and development impairments and other charges 8.4 4.8 20.4 4.8
Other (income) expense (0.4) 1.1 (43.7) 5.6
Restructuring, integration, acquisition-related and other costs 142.7 61.5 277.8 118.4
Amortization and impairments of finite-lived intangible assets 365.6 303.6 720.8 629.8
---------- ---------- ---------- ----------
1,686.0 954.2 3,215.6 1,905.6
---------- ---------- ---------- ----------
Operating income (loss) 355.1 141.5 711.7 258.5
Interest expense, net (240.0) (175.8) (484.7) (329.5)
(Loss) on extinguishment of debt - - (93.7) (21.4)
Gain (loss) on investments, net 2.5 3.9 2.5 5.8
Foreign exchange and other 3.4 (10.0) (10.0) (8.6)
---------- ---------- ---------- ----------
Income (loss) before (recovery of) provision for income taxes 121.0 (40.4) 125.8 (95.2)
(Recovery of) provision for income taxes (1.0) (51.2) 24.1 (78.5)
---------- ---------- ---------- ----------
Net income (loss) $ 122.0 $ 10.8 $ 101.7 $ (16.7)
========== ========== ========== ==========
Less: net income (loss) attributable to non-controlling interest (3.8) - (1.5) -
---------- ---------- ---------- ----------
Net income (loss) attributable to Valeant Pharmaceuticals 125.8 10.8 103.2 (16.7)
Earnings (loss) per share
Basic $ 0.38 $ 0.04 $ 0.31 $ (0.05)
Diluted 0.37 0.03 0.30 (0.05)
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.