Attached files
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| 8-K - FORM 8-K - Horizon Therapeutics Public Ltd Co | d923006d8k.htm |
Exhibit 99.1
Horizon Pharma plc Announces First Quarter 2015 Financial Results and Increases 2015 Guidance
— Reports First Quarter Net Sales of $113.1 Million, Up 118 Percent —
— Increases Guidance for 2015 Net Sales and Adjusted EBITDA to $590 to $610 Million and $235 to $250 Million, Respectively —
— Conference Call and Webcast at 8:00 a.m. ET, May 8th, —
DUBLIN, IRELAND – May 8, 2015 – Horizon Pharma plc (NASDAQ: HZNP), a specialty biopharmaceutical company focused on improving patients’ lives by identifying, developing, acquiring and commercializing differentiated and accessible medicines that address unmet medical needs, announced its first quarter 2015 financial results today.
Quarterly Financial Highlights
| (in millions except for per share amounts and percentage change) | Q1 2015 | Q1 2014 | Change | |||||||||
| Total net sales |
$ | 113.1 | $ | 51.9 | 118 | % | ||||||
| Adjusted EBITDA |
37.7 | 12.1 | 212 | % | ||||||||
| Net loss |
(19.6 | ) | (206.3 | ) | NM | |||||||
| Adjusted non-GAAP net income |
27.9 | 11.0 | 154 | % | ||||||||
| Net loss per share - basic |
$ | (0.16 | ) | $ | (3.07 | ) | NM | |||||
| Adjusted non-GAAP net income per share - basic |
0.22 | 0.16 | 38 | % | ||||||||
| Net loss per share - diluted |
(0.16 | ) | (3.07 | ) | NM | |||||||
| Adjusted non-GAAP net income per share - diluted |
0.21 | 0.13 | 62 | % | ||||||||
Strong Growth Continues in Early 2015
“Horizon’s strong first-quarter 2015 performance reflects the outstanding work of our commercial team as we continue to execute our strategy of accelerating growth through strong commercial performance and expanded access for patients and targeted acquisitions,” said Timothy P. Walbert, chairman, president and chief executive officer, Horizon Pharma plc. “In particular, we’re extremely pleased with the first-quarter results of our primary care business unit, where we saw significant outperformance with our launch of PENNSAID 2% as well as strong performance of DUEXIS and VIMOVO. We expect the acquisition of Hyperion, which closed yesterday, to further diversify our product portfolio and enhance our business performance. To that end, today we’re raising our full-year 2015 guidance. We now forecast net sales of $590 to $610 million and adjusted EBITDA of $235 to $250 million.”
2015 Updated Guidance
The Company today announced it is raising 2015 full-year guidance as follows to reflect strong early performance in 2015 on its base business as well as the addition of the Hyperion acquisition:
Connaught House, 1st Floor, 1 Burlington Road, Dublin 4, Ireland
| Prior Guidance | New Guidance | |||
| Net sales | $450 to $475 million | $590 to $610 million | ||
| Adjusted EBITDA | $170 to $190 million | $257 to $272 million | ||
| Adjusted EBITDA net of royalties | NA | $235 to $250 million |
For VIMOVO® and ACTIMMUNE®, estimated royalties payable over the life of the product were established as a liability as of the acquisition date. As a result, the Company’s operating results include accretion expense related to the royalty liability, but not the actual royalties incurred based on the products’ nets sales during the period. Going forward, Horizon’s adjusted EBITDA will exclude the royalty accretion and include royalties incurred during the quarter based on that period’s net sales for VIMOVO and ACTIMMUNE as well as for RAVICTI® and BUPHENYL®, both obtained in the Hyperion acquisition.
First Quarter 2015 Financial Results
| • | Total net sales in the first quarter of 2015 were $113.1 million, compared with $51.9 million in the first quarter of 2014, representing 118 percent growth. |
Net Sales
| (in millions) | Q1 2015 | Q1 2014 | Change | |||||||||
| ACTIMMUNE® (1) |
$ | 24.8 | $ | — | NM | |||||||
| DUEXIS® |
28.9 | 13.9 | 108 | % | ||||||||
| LODOTRA® |
1.0 | 0.7 | 51 | % | ||||||||
| PENNSAID® 2% (2) |
18.2 | — | NM | |||||||||
| RAYOS® |
7.2 | 3.3 | 118 | % | ||||||||
| VIMOVO® |
33.0 | 34.0 | -3 | % | ||||||||
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| Total net sales |
$ | 113.1 | $ | 51.9 | 118 | % | ||||||
| (1) | ACTIMMUNE was acquired September 19, 2014. |
| (2) | PENNSAID 2% was acquired on October 17, 2014 |
| • | Gross margins were 74 percent in the first quarter of 2015 compared with 85 percent in the first quarter of 2014. On an Adjusted non-GAAP basis, gross margins were 91 percent in the first quarter of 2015 and 89 percent in the first quarter of 2014, excluding depreciation, intangible amortization, amortization of inventory step-up and royalty accretion, but including royalties incurred during the quarter based on that period’s net sales for VIMOVO and ACTIMMUNE. |
| • | Total operating expenses were $79.5 million in the first quarter of 2015, compared to $42.7 million in the first quarter of 2014. The increase in operating expenses reflects the increases in |
Connaught House, 1st Floor, 1 Burlington Road, Dublin 4, Ireland
| research and development expenses, principally related to ACTIMMUNE, sales and marketing expenses primarily due to the expansion of our sales force for PENNSAID 2% along with other costs related to ACTIMMUNE and PENNSAID 2% and general and administrative expenses, principally due to the build out of infrastructure to support the Company’s growth. First quarter 2015 operating expenses included $3.7 million of transaction-related expenses associated with the acquisitions of Vidara Therapeutics International plc, or Vidara, and Hyperion Therapeutics, Inc., or Hyperion. |
| • | Adjusted EBITDA was $37.7 million in the first quarter of 2015 after excluding the impact of $10.5 million in expenses associated with debt extinguishment and induced conversions of a portion of the 5.00% Convertible Senior Notes due 2018, or Convertible Senior Notes, $6.7 million in share-based compensation and $3.7 million of transaction expenses related to Vidara and Hyperion, compared with adjusted EBITDA of $12.1 million in the first quarter of 2014. |
| • | On a GAAP basis, net loss in the first quarter of 2015 was $19.6 million, or $0.16 net loss on a basic and diluted per share basis, compared to a net loss of $206.3 million in the first quarter of 2014, or $3.07 net loss on a basic and diluted per share basis. |
| • | Adjusted non-GAAP net income for the first quarter of 2015 was $27.9 million, or $0.22 basic earnings per share and $0.21 diluted earnings per share, compared to adjusted non-GAAP net income of $11.0 million, or $0.16 basic earnings per share and $0.13 diluted earnings per share in the first quarter of 2014. Weighted average shares used for calculating earnings per share in the first quarter of 2015 were 125.7 million and 138.2 million for basic and diluted earnings per share, respectively, compared to 67.1 million and 83.1 million for basic and diluted earnings per share, respectively, in the first quarter of 2014. |
| • | The number of ACTIMMUNE patients with chronic granulomatous disease, or CGD, and severe malignant osteopetrosis, or SMO, increased from 243 in the first quarter of 2014 to 280 in the first quarter of 2015, an increase of more than 15%. |
| • | DUEXIS total prescriptions were 77.3 thousand in the first quarter of 2015 compared to 53.3 thousand in the first quarter of 2014, a 45.1% increase. We continue to see growth in total prescriptions driven by the acceleration of our Prescriptions-Made-Easy program, or PME, with weekly total prescriptions for the month of April rising to levels that currently exceed those from the fourth quarter of 2014. |
| • | PENNSAID 2% total prescriptions have increased significantly since the Horizon relaunch in January and totaled 32.3 thousand in the first quarter of 2015. PENNSAID 2% was originally launched in the U.S. in April 2014. |
| • | VIMOVO total prescriptions were 68.0 thousand in the first quarter of 2015 compared to 69.4 thousand in the first quarter of 2014. We expect to see growth in total prescriptions in 2015 driven by the acceleration of our PME program, with weekly total prescriptions for the month of April rising to levels that currently exceed those in the fourth quarter of 2014. |
Connaught House, 1st Floor, 1 Burlington Road, Dublin 4, Ireland
Summary of Non-GAAP Adjustments
| Q1 2015 | Q1 2014 | |||||||||||||||||||||||
| (in millions, except per share amounts) | U.S. GAAP | Adjustments | Non-GAAP | U.S. GAAP | Adjustments | Non-GAAP | ||||||||||||||||||
| Net sales |
$ | 113.1 | $ | — | $ | 113.1 | $ | 51.9 | $ | — | $ | 51.9 | ||||||||||||
| EBITDA (1) |
16.8 | 20.9 | 37.7 | (197.9 | ) | 210.0 | 12.1 | |||||||||||||||||
| Net income (loss) |
(19.6 | ) | 47.5 | 27.9 | (206.3 | ) | 217.3 | 11.0 | ||||||||||||||||
| Net income (loss) per share - basic |
$ | (0.16 | ) | $ | 0.38 | $ | 0.22 | $ | (3.07 | ) | $ | 3.23 | $ | 0.16 | ||||||||||
| Net income (loss) per share - diluted |
$ | (0.16 | ) | $ | 0.37 | $ | 0.21 | $ | (3.07 | ) | $ | 3.20 | $ | 0.13 | ||||||||||
| (1) | EBITDA is a non-GAAP measure. |
Balance Sheet
| • | The Company had cash and cash equivalents of $544.2 million as of March 31, 2015, an increase of $325.4 million from December 31, 2014, which includes the net proceeds of approximately $387.3 million from the offering of 2.50% Exchangeable Senior Notes completed in March 2015. |
| • | Total principal amount of outstanding debt was $728 million at March 31, 2015, compared to total principal amount of outstanding debt of $361 million at December 31, 2014. |
Recent Major Events
| • | Completed acquisition of Hyperion for $1.1 billion in cash and an enterprise value of $944 million in May. |
| • | Completed offering of $475 million aggregate principal amount of 6.625% Senior Notes due 2023 in April. |
| • | Completed $400 million Senior Secured Term Loan due 2022 at an initial interest rate of 4.5% in May. |
| • | Completed offering of $400 million aggregate principal amount of 2.50% Exchangeable Senior Notes in March. |
| • | Completed public offering of 17,652,500 ordinary shares priced at $28.25 raising net proceeds of approximately $475.2 million in April. |
| • | Submitted the IND for a Phase 3 study for ACTIMMUNE (interferon gamma-1b) in children with Friedreich’s ataxia (“FA”) in the first quarter of 2015 and received FDA Fast Track Designation. |
| • | Received two notices of allowances from the U.S. Patent and Trademark Office with claims covering PENNSAID 2% and one additional patent for each of RAYOS and VIMOVO. |
| • | Induced conversion of $32.5 million during the first quarter of 2015 and an additional $14.9 million in April 2015 of principal amounts of the Convertible Senior Notes, following which $13.6 million of principal amount of Convertible Senior Notes remain outstanding. |
Connaught House, 1st Floor, 1 Burlington Road, Dublin 4, Ireland
| • | Opened new corporate headquarters in Dublin, Ireland. |
Note Regarding Use of Non-GAAP Financial Measures
Horizon provides certain financial measures such as adjusted non-GAAP net income, adjusted non-GAAP net income per share, non-GAAP gross profit margins and non-GAAP cash from operations that include adjustments to GAAP figures. These adjustments to GAAP exclude acquisition transaction related expenses, loss on induced debt conversions and debt extinguishment as well as non-cash items such as share-based compensation, depreciation and amortization, royalty accretion, non-cash interest expense and VIMOVO and ACTIMUNNE royalties during the period. Certain other special items or substantive events may also be included in the non-GAAP adjustments periodically when their magnitude is significant within the periods incurred. EBITDA, or earnings before interest, taxes, depreciation and amortization, adjusted EBITDA and adjusted EBITDA net of royalties are also used and provided by Horizon as non-GAAP financial measures. Horizon believes that these non-GAAP financial measures, when considered together with the GAAP figures, can enhance an overall understanding of Horizon’s financial performance. The non-GAAP financial measures are included with the intent of providing investors with a more complete understanding of the Company’s operational results and trends. In addition, these non-GAAP financial measures are among the indicators Horizon’s management uses for planning and forecasting purposes and measuring the Company’s performance. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, non-GAAP financial measures used by other companies. Please refer to the financial statements portion of this press release where the Company has provided a reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures. However, the Company has not provided a reconciliation of 2015 adjusted EBITDA and adjusted EBITDA net of royalties outlook to a net loss outlook because certain items that are a component of net loss but not part of adjusted EBITDA, such as share-based compensation and acquisition-related expenses, cannot be reasonably projected, either due to the significant impact of changes in Horizon’s share price on share-based compensation, or the variability associated with acquisition-related expenses due to timing and other factors.
Connaught House, 1st Floor, 1 Burlington Road, Dublin 4, Ireland
Conference Call
At 8:00 a.m. EST / 1 p.m. IST today, the Company will host a live conference call and webcast to review its financial and operating results and provide a general business update.
U.S. Dial-In Number: +1 888.338.8373
International Dial-In Number: +1 973.872.3000
Passcode: 29511858
The live webcast and a replay may be accessed by visiting Horizon’s website at http://ir.horizon-pharma.com. Please connect to the Company’s website at least 15 minutes prior to the live webcast to ensure adequate time for any software download that may be needed to access the webcast.
A replay of the conference call will be available approximately two hours after the call and accessible through one of the following telephone numbers, using the passcode below:
Replay U.S. Dial-In Number: +1 855.859.2056
Replay International Dial-In Number: +1 404.537.3406
Passcode: 29511858
About Horizon Pharma plc
Horizon Pharma plc is a specialty biopharmaceutical company focused on improving patients’ lives by identifying, developing, acquiring and commercializing differentiated and accessible medicines that address unmet medical needs. The Company markets seven medicines through its orphan, primary care and specialty business units. Horizon’s global headquarters are in Dublin, Ireland. For more information, please visit www.horizonpharma.com.
Connaught House, 1st Floor, 1 Burlington Road, Dublin 4, Ireland
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding expected 2015 net revenue and adjusted EBITDA, Horizon’s growth strategy, the on-going commercialization of ACTIMMUNE, BUPHENYL, DUEXIS, PENNSAID 2%, RAVICTI, RAYOS and VIMOVO, the expected contribution of the Hyperion acquisition to Horizon’s business performance, and the planned Phase 3 study of ACTIMMUNE in FA. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release, and actual results may differ materially from those in these forward-looking statements as a result of various factors. These factors include, but are not limited to, risks regarding Horizon’s ability to commercialize products successfully, including risks relating to availability of coverage and adequate reimbursement and pricing from government and third party payers and risks relating to the success of Horizon’s Prescriptions-Made-Easy or PME specialty pharmacy program, whether commercial data regarding ACTIMMUNE, BUPHENYL, DUEXIS, PENNSAID 2%, RAVICTI, RAYOS and VIMOVO in the United States for any historical periods are indicative of future results, Horizon’s ability to comply with post-approval regulatory requirements, Horizon’s ability to enforce its intellectual property rights to its products, Horizon’s ability to execute on its plan to grow through acquiring or in licensing additional products or companies, and risks regarding Horizon’s ability to conduct the Phase 3 study of ACTIMMUNE in FA as planned. For a further description of these and other risks facing the Company, please see the risk factors described in the Company’s filings with the United States Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in those filings. Forward-looking statements speak only as of the date of this press release and the Company undertakes no obligation to update or revise these statements, except as may be required by law.
Connaught House, 1st Floor, 1 Burlington Road, Dublin 4, Ireland
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
| As of | ||||||||
| March 31, | December 31, | |||||||
| 2015 | 2014 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: |
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| Cash and cash equivalents |
$ | 544,211 | $ | 218,807 | ||||
| Restricted cash |
600 | 738 | ||||||
| Accounts receivable, net |
127,265 | 73,915 | ||||||
| Inventories, net |
13,586 | 16,865 | ||||||
| Prepaid expenses and other current assets |
48,677 | 14,370 | ||||||
| Deferred tax assets, net |
1,586 | 1,530 | ||||||
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| Total current assets |
735,925 | 326,225 | ||||||
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| Property and equipment, net |
8,873 | 7,241 | ||||||
| Developed technology, net |
679,483 | 696,963 | ||||||
| In-process research and development |
66,000 | 66,000 | ||||||
| Other intangible assets, net |
7,668 | 7,870 | ||||||
| Deferred tax assets, net, non-current |
18,761 | 18,761 | ||||||
| Other assets |
10,586 | 11,564 | ||||||
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| TOTAL ASSETS |
$ | 1,527,296 | $ | 1,134,624 | ||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: |
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| Convertible debt, net |
$ | 22,921 | $ | 48,334 | ||||
| Accounts payable |
21,963 | 21,011 | ||||||
| Accrued trade discounts and rebates |
78,226 | 76,115 | ||||||
| Accrued expenses |
46,125 | 46,625 | ||||||
| Accrued royalties, current portion |
25,781 | 25,325 | ||||||
| Deferred revenues, current portion |
1,096 | 1,261 | ||||||
| Deferred tax liabilities, net |
326 | 721 | ||||||
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| Total current liabilities |
196,438 | 219,392 | ||||||
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| LONG-TERM LIABILITIES: |
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| Exchangeable notes, net |
269,597 | — | ||||||
| Long-term debt, net |
297,317 | 297,169 | ||||||
| Accrued royalties, net of current |
45,272 | 48,887 | ||||||
| Deferred revenues, net of current |
7,301 | 8,144 | ||||||
| Deferred tax liabilities, net, non-current |
19,965 | 19,570 | ||||||
| Other-long term liabilities |
3,450 | 1,258 | ||||||
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| Total long-term liabilities |
642,902 | 375,028 | ||||||
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| COMMITMENTS AND CONTINGENCIES |
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| SHAREHOLDERS’ EQUITY: |
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| Ordinary shares, $0.0001 nominal value per share; 300,000,000 shares authorized; 133,671,381 and 124,425,853 shares issued at March 31, 2015 and December 31, 2014, respectively, and 133,287,015 and 124,041,487 outstanding at March 31, 2015 and December 31, 2014 respectively. |
14 | 13 | ||||||
| Treasury stock, 384,366 ordinary shares at March 31, 2015 and December 31, 2014 |
(4,585 | ) | (4,585 | ) | ||||
| Additional paid-in capital |
1,435,298 | 1,269,858 | ||||||
| Accumulated other comprehensive loss |
(2,499 | ) | (4,363 | ) | ||||
| Accumulated deficit |
(740,272 | ) | (720,719 | ) | ||||
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| Total shareholders’ equity |
687,956 | 540,204 | ||||||
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| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | 1,527,296 | $ | 1,134,624 | ||||
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Connaught House, 1st Floor, 1 Burlington Road, Dublin 4, Ireland
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| REVENUES: |
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| Net sales |
$ | 113,141 | $ | 51,926 | ||||
| Cost of goods sold |
28,853 | 7,619 | ||||||
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| Gross profit |
84,288 | 44,307 | ||||||
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| OPERATING EXPENSES: |
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| Research and development |
6,181 | 2,833 | ||||||
| Sales and marketing |
47,063 | 28,695 | ||||||
| General and administrative |
26,280 | 11,192 | ||||||
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| Total operating expenses |
79,524 | 42,720 | ||||||
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| Operating income |
4,764 | 1,587 | ||||||
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| OTHER EXPENSE, NET: |
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| Interest expense, net |
(10,032 | ) | (4,207 | ) | ||||
| Foreign exchange loss |
(837 | ) | (38 | ) | ||||
| Loss on derivative fair value |
— | (204,030 | ) | |||||
| Loss on induced debt conversion and debt extinguishment |
(10,544 | ) | — | |||||
| Other, net |
(991 | ) | (667 | ) | ||||
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| Total other expense, net |
(22,404 | ) | (208,942 | ) | ||||
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| Loss before benefit for income taxes |
(17,640 | ) | (207,355 | ) | ||||
| EXPENSE (BENEFIT) FOR INCOME TAXES |
1,913 | (1,105 | ) | |||||
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| NET LOSS |
$ | (19,553 | ) | $ | (206,250 | ) | ||
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| Net loss per share - basic and diluted |
$ | (0.16 | ) | $ | (3.07 | ) | ||
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| Weighted average shares outstanding - basic and diluted |
125,650,593 | 67,138,463 | ||||||
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Connaught House, 1st Floor, 1 Burlington Road, Dublin 4, Ireland
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
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| Net loss |
$ | (19,553 | ) | $ | (206,250 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: |
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| Depreciation and intangible amortization expense |
18,335 | 5,403 | ||||||
| Share-based compensation |
6,674 | 1,927 | ||||||
| Loss on derivative revaluation |
— | 204,030 | ||||||
| Royalty accretion |
3,044 | — | ||||||
| Non cash loss on induced debt conversion |
4,848 | — | ||||||
| Amortization of debt discount and deferred financing costs |
2,206 | 2,333 | ||||||
| Foreign exchange loss |
837 | 38 | ||||||
| Other |
102 | — | ||||||
| Changes in operating assets and liabilities: |
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| Accounts receivable |
(53,443 | ) | (24,142 | ) | ||||
| Inventories |
3,088 | (729 | ) | |||||
| Prepaid expenses and other current assets |
(34,307 | ) | (4,218 | ) | ||||
| Accounts payable |
(18 | ) | 352 | |||||
| Accrued trade discounts and rebates |
2,188 | 17,143 | ||||||
| Accrued expenses |
(6,022 | ) | 3,559 | |||||
| Deferred revenues |
(26 | ) | 112 | |||||
| Deferred income taxes |
1,356 | (454 | ) | |||||
| Other non-current assets and liabilities |
(48 | ) | 139 | |||||
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| Net cash provided used in operating activities |
(70,739 | ) | (757 | ) | ||||
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| CASH FLOWS FROM INVESTING ACTIVITIES: |
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| Purchases of property and equipment |
(1,577 | ) | (494 | ) | ||||
| Change in restricted cash |
138 | — | ||||||
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| Net cash used in investing activities |
(1,439 | ) | (494 | ) | ||||
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| CASH FLOWS FROM FINANCING ACTIVITIES: |
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| Proceeds from the issuance of exchangable notes |
388,000 | — | ||||||
| Proceeds from the issuance of ordinary shares in connection with warrant exercises |
9,924 | 23,544 | ||||||
| Proceeds from the issuance of ordinary shares in connection with stock option exercises |
574 | 612 | ||||||
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| Net cash provided by financing activities |
398,498 | 24,156 | ||||||
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| Effect of foreign exchange rate changes on cash |
(916 | ) | (11 | ) | ||||
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| NET INCREASE IN CASH AND CASH EQUIVALENTS |
325,404 | 22,894 | ||||||
| CASH AND CASH EQUIVALENTS, beginning of the year |
218,807 | 80,480 | ||||||
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| CASH AND CASH EQUIVALENTS, end of the period |
$ | 544,211 | $ | 103,374 | ||||
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Connaught House, 1st Floor, 1 Burlington Road, Dublin 4, Ireland
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME (LOSS)
(in thousands, except share and per share amounts)
| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| (Unaudited) | ||||||||
| Adjusted Non-GAAP Net Income: |
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| GAAP Net Loss |
$ | (19,553 | ) | $ | (206,250 | ) | ||
| Non-GAAP Adjustments: |
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| Vidara acquisition costs |
1,734 | 4,049 | ||||||
| Hyperion acquisition costs |
1,920 | — | ||||||
| Loss on derivative revaluation |
— | 204,030 | ||||||
| Loss on induced debt conversion and debt extinguishment |
10,544 | — | ||||||
| Amortization and accretion: |
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| Intangible amortization expense (net of tax effect) |
17,681 | 4,680 | ||||||
| Amortization of debt discount and deferred financing costs |
2,206 | 2,333 | ||||||
| Accretion of royalty liabilities |
3,044 | — | ||||||
| Amortization of inventory step-up adjustment |
3,154 | — | ||||||
| Amortization of deferred revenue |
(134 | ) | (161 | ) | ||||
| Share-based compensation |
6,674 | 1,927 | ||||||
| Depreciation expense |
654 | 376 | ||||||
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| Total of non-GAAP adjustments |
47,477 | 217,234 | ||||||
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|
|
|
|||||
| Adjusted Non-GAAP Net Income (Loss) |
$ | 27,924 | $ | 10,984 | ||||
|
|
|
|
|
|||||
| VIMOVO and ACTIMMUNE royalties for period |
(5,196 | ) | (3,349 | ) | ||||
|
|
|
|
|
|||||
| Adjusted Non-GAAP Net Income (Net of Royalties) |
$ | 22,728 | $ | 7,635 | ||||
|
|
|
|
|
|||||
| Weighted average shares - Basic |
125,650,593 | 67,138,463 | ||||||
|
|
|
|
|
|||||
| Adjusted Non-GAAP Net Income Per Share - Basic: |
||||||||
| GAAP net loss per share-Basic |
$ | (0.16 | ) | $ | (3.07 | ) | ||
| Non-GAAP adjustments |
0.38 | 3.23 | ||||||
|
|
|
|
|
|||||
| Adjusted Non-GAAP Net Income per share - Basic |
$ | 0.22 | $ | 0.16 | ||||
|
|
|
|
|
|||||
| VIMOVO and ACTIMMUNE royalties for period |
(0.04 | ) | (0.05 | ) | ||||
|
|
|
|
|
|||||
| Adjusted Non-GAAP Net Income per share - Basic (Net of Royalties) |
$ | 0.18 | $ | 0.11 | ||||
|
|
|
|
|
|||||
| Weighted average shares - Diluted |
||||||||
| Weighted average shares - Basic |
125,650,593 | 67,138,463 | ||||||
| Ordinary stock equivalents |
12,524,900 | 15,961,807 | ||||||
|
|
|
|
|
|||||
| Weighted average shares - Diluted |
138,175,493 | 83,100,270 | ||||||
|
|
|
|
|
|||||
| Adjusted Non-GAAP Net Income (Loss) Per Share - Diluted: |
||||||||
| Adjusted Non-GAAP Net Income |
$ | 27,924 | $ | 10,984 | ||||
| Add: Convertible debt interest expense, net of taxes |
714 | — | ||||||
|
|
|
|
|
|||||
| Adjusted Non-GAAP Net Income - Diluted |
$ | 28,638 | $ | 10,984 | ||||
|
|
|
|
|
|||||
| VIMOVO and ACTIMMUNE royalties for period |
(5,196 | ) | (3,349 | ) | ||||
|
|
|
|
|
|||||
| Adjusted Non-GAAP Net Income - Diluted (Net of Royalties) |
$ | 23,442 | $ | 7,635 | ||||
|
|
|
|
|
|||||
| GAAP net loss per share - Diluted |
$ | (0.16 | ) | $ | (3.07 | ) | ||
| Non-GAAP adjustments |
0.38 | 3.23 | ||||||
| Diluted earnings per share effect of ordinary share equivalents |
(0.01 | ) | (0.03 | ) | ||||
|
|
|
|
|
|||||
| Adjusted Non-GAAP Net Income per share - Diluted |
$ | 0.21 | $ | 0.13 | ||||
|
|
|
|
|
|||||
| VIMOVO and ACTIMMUNE royalties for period |
(0.04 | ) | (0.04 | ) | ||||
|
|
|
|
|
|||||
| Adjusted Non-GAAP Net Income per share - Diluted (Net of Royalties) |
$ | 0.17 | $ | 0.09 | ||||
|
|
|
|
|
|||||
Connaught House, 1st Floor, 1 Burlington Road, Dublin 4, Ireland
ADDITIONAL GAAP TO NON-GAAP RECONCILIATIONS
EBITDA, Gross Profit and Operating Cash Flow
(in thousands, except percentages)
| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| (Unaudited) | ||||||||
| EBITDA and Adjusted EBITDA: |
||||||||
| GAAP Net Loss |
$ | (19,553 | ) | $ | (206,250 | ) | ||
| Depreciation |
654 | 376 | ||||||
| Amortization and accretion: |
||||||||
| Intangible amortization expense |
17,681 | 5,026 | ||||||
| Accretion of royalty liabilities |
3,044 | — | ||||||
| Amortization of deferred revenue |
(134 | ) | (161 | ) | ||||
| Amortization of inventory step-up adjustment |
3,154 | — | ||||||
| Interest expense, net (including amortization of debt discount and deferred financing costs) |
10,032 | 4,207 | ||||||
| Expense (benefit) for income taxes |
1,913 | (1,105 | ) | |||||
|
|
|
|
|
|||||
| EBITDA |
$ | 16,791 | $ | (197,907 | ) | |||
|
|
|
|
|
|||||
| Non-GAAP adjustments: |
||||||||
| Vidara acquisition costs |
1,734 | 4,049 | ||||||
| Hyperion acquisition costs |
1,920 | — | ||||||
| Loss on derivative revaluation |
— | 204,030 | ||||||
| Loss on induced debt conversion and debt extinguishment |
10,544 | — | ||||||
| Share-based compensation |
6,674 | 1,927 | ||||||
|
|
|
|
|
|||||
| Total of Non-GAAP adjustments |
$ | 20,872 | $ | 210,006 | ||||
|
|
|
|
|
|||||
| Adjusted EBITDA |
$ | 37,663 | $ | 12,099 | ||||
|
|
|
|
|
|||||
| VIMOVO and ACTIMMUNE royalties for period |
$ | (5,196 | ) | $ | (3,349 | ) | ||
|
|
|
|
|
|||||
| Adjusted EBITDA (Net of Royalities) |
$ | 32,467 | $ | 8,750 | ||||
|
|
|
|
|
|||||
| Non-GAAP Gross Profit: |
||||||||
| GAAP net sales |
$ | 113,141 | $ | 51,926 | ||||
| GAAP cost of goods sold |
28,853 | 7,619 | ||||||
|
|
|
|
|
|||||
| GAAP gross profit |
$ | 84,288 | $ | 44,307 | ||||
|
|
|
|
|
|||||
| GAAP gross profit % |
74 | % | 85 | % | ||||
| Non-GAAP Gross Profit: |
||||||||
| GAAP gross profit |
$ | 84,288 | $ | 44,307 | ||||
| Non-GAAP gross profit adjustments: |
||||||||
| Intangible amortization expense |
17,479 | 5,026 | ||||||
| Accretion of royalty liabilities |
3,044 | — | ||||||
| Amortization of inventory step-up adjustment |
3,154 | — | ||||||
| Depreciation |
129 | 32 | ||||||
| VIMOVO and ACTIMMUNE royalties for period |
(5,196 | ) | (3,349 | ) | ||||
|
|
|
|
|
|||||
| Total of Non-GAAP adjustments |
$ | 18,610 | $ | 1,709 | ||||
|
|
|
|
|
|||||
| Non-GAAP gross profit |
$ | 102,898 | $ | 46,016 | ||||
|
|
|
|
|
|||||
| Non-GAAP gross profit % |
91 | % | 89 | % | ||||
| Non-GAAP Cash Provided By (Used) in Operating Activities: |
||||||||
| GAAP cash used in operating activities |
$ | (70,739 | ) | $ | (757 | ) | ||
| Cash payments related to Vidara acquisition costs |
1,820 | 5,095 | ||||||
| Cash payments associated with induced debt conversion |
5,696 | — | ||||||
|
|
|
|
|
|||||
| Non-GAAP cash provided by (used in) operating activities |
$ | (63,223 | ) | $ | 4,338 | |||
|
|
|
|
|
|||||
Connaught House, 1st Floor, 1 Burlington Road, Dublin 4, Ireland
Investors:
John B. Thomas
Executive Vice President, Corporate Strategy and Investor Relations
investor-relations@horizonpharma.com
U.S. Media Contact:
Geoff Curtis
Group Vice President, Corporate Communications
gcurtis@horizonpharma.com
Ireland Media Contact:
Ray Gordon
Gordon MRM
ray@gordonmrm.ie
Connaught House, 1st Floor, 1 Burlington Road, Dublin 4, Ireland