The Medicines Company |
(Exact Name of Registrant as Specified in Charter) |
Delaware | 000-31191 | 04-3324394 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
8 Sylvan Way Parsippany, New Jersey | 07054 | |
(Address of Principal Executive Offices) | (Zip Code) |
(Former Name or Former Address, if Changed Since Last Report) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press release dated April 25, 2012 entitled “The Medicines Company Reports First Quarter 2012 Financial Results” |
Exhibit No. | Description |
99.1 | Press release dated April 25, 2012 entitled “The Medicines Company Reports First Quarter 2012 Financial Results” |
• | Net revenue increased by 12.9% to $126.6 million for the first quarter of 2012 from $112.1 million in the first quarter of 2011. |
◦ | Angiomax U.S. sales increased by 10% to $115.5 million in the first quarter of 2012 compared to $105.0 million in the first quarter of 2011. |
◦ | Angiomax/Angiox international net revenue in the first quarter of 2012 increased by 49% to $10.6 million compared with $7.1 million in the first quarter of 2011. |
• | Net income for the first quarter of 2012 was $7.6 million, or $0.14 per share, compared with net income of $24.2 million, or $0.45 per share, for the first quarter of 2011. Net income in the first quarter of 2011 included $15 million, net of taxes, from the Company's settlement with the law firm, WilmerHale. |
• | Non-GAAP net income for the first quarter of 2012 was $15.2 million, or $0.27 per share, compared to non-GAAP net income of $34.5 million, or $0.64 per share for the first quarter 2011. Non-GAAP net income excludes stock-based compensation expense and non-cash income taxes. |
(in millions) | Reported GAAP Net Income | Stock-Based Compensation Expense | Non-cash Provision for Income Taxes | Non-GAAP Net Income(1) | |||||||||
Q1 2012 | $ | 7.6 | $ | 3.1 | $ | 4.5 | $ | 15.2 | |||||
Q1 2011 | $ | 24.2 | $ | 2.3 | $ | 8.0 | $ | 34.5 | |||||
Note: Amounts may not sum due to rounding. (1)Excluding stock-based compensation expense and the non-cash provision for income taxes. |
(per share) | Reported GAAP EPS | Stock-Based Compensation Expense | Non-cash Provision for Income Taxes | Non-GAAP EPS(1) | ||||||||||
Q1 2012 | $ | 0.14 | $ | 0.06 | $ | 0.08 | $ | 0.27 | ||||||
Q1 2011 | $ | 0.45 | $ | 0.04 | $ | 0.15 | $ | 0.64 | ||||||
Note: Amounts may not sum due to rounding. (1)Excluding stock-based compensation expense and the non-cash provision for income taxes. |
The Medicines Company | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(unaudited) | ||||||||
(in thousands, except per share data) | Three months ended March 31, | |||||||
2012 | 2011 | |||||||
Net revenue | $ | 126,610 | $ | 112,137 | ||||
Operating expenses: | ||||||||
Cost of revenue | 38,663 | 35,570 | ||||||
Research and development | 32,778 | 23,792 | ||||||
Selling, general and administrative | 43,186 | 37,928 | ||||||
Total operating expenses | 114,627 | 97,290 | ||||||
Income from operations | 11,983 | 14,847 | ||||||
Legal settlement | — | 17,984 | ||||||
Other income | 62 | 811 | ||||||
Income before income taxes | 12,045 | 33,642 | ||||||
Provision for income taxes | (4,474 | ) | (9,401 | ) | ||||
Net income | $ | 7,571 | $ | 24,241 | ||||
Basic earnings per common share | $ | 0.14 | $ | 0.46 | ||||
Shares used in computing basic earnings per common share | 54,037 | 53,224 | ||||||
Diluted earnings per common share | $ | 0.14 | $ | 0.45 | ||||
Shares used in computing diluted earnings per common share | 55,672 | 54,109 |
The Medicines Company | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | March 31, | December 31, | ||||||
2012 | 2011 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Cash, cash equivalents and available for sales securities | $ | 295,655 | $ | 340,512 | ||||
Accrued interest receivable | 173 | 374 | ||||||
Accounts receivable, net | 67,717 | 74,559 | ||||||
Inventory | 49,973 | 45,145 | ||||||
Deferred tax assets | 9,395 | 9,395 | ||||||
Prepaid expenses and other current assets | 12,209 | 11,738 | ||||||
Total current assets | 435,122 | 481,723 | ||||||
Fixed assets, net | 17,402 | 17,979 | ||||||
Intangible assets, net | 122,967 | 87,329 | ||||||
Restricted cash | 2,687 | 4,714 | ||||||
Deferred tax assets | 78,441 | 78,441 | ||||||
Goodwill | 14,671 | 14,671 | ||||||
Other assets | 7,760 | 7,790 | ||||||
Total assets | $ | 679,050 | $ | 692,647 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | $ | 125,280 | $ | 154,635 | ||||
Contingent purchase price | 20,995 | 20,431 | ||||||
Other long term liabilities | 5,982 | 5,939 | ||||||
Stockholders' equity | 526,793 | 511,642 | ||||||
Total liabilities and stockholders' equity | $ | 679,050 | $ | 692,647 |
The Medicines Company | |||||||||||||||
Reconciliation of GAAP to non-GAAP Measures | |||||||||||||||
(All amounts in thousands, except per share amounts) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||
2012 | |||||||||||||||
GAAP(1) | Stock-Based Compensation | Non-cash Tax Provision | Non-GAAP(4) As Adjusted | ||||||||||||
Net revenue | $ | 126,610 | $ | — | $ | — | $ | 126,610 | |||||||
Operating expenses: | |||||||||||||||
Cost of revenue | 38,663 | (35 | ) | (2) | — | 38,628 | |||||||||
Research and development | 32,778 | (545 | ) | (2) | — | 32,233 | |||||||||
Selling, general and administrative | 43,186 | (2,534 | ) | (2) | — | 40,652 | |||||||||
Total operating expenses | 114,627 | (3,114 | ) | — | 111,513 | ||||||||||
Income from operations | 11,983 | 3,114 | — | 15,097 | |||||||||||
Other income | 62 | — | — | 62 | |||||||||||
Income before income taxes | 12,045 | 3,114 | — | 15,159 | |||||||||||
(Provision) benefit for income taxes | (4,474 | ) | — | 4,474 | (3) | — | |||||||||
Net income | $ | 7,571 | $ | 3,114 | $ | 4,474 | $ | 15,159 | |||||||
Basic earnings per common share | $ | 0.14 | $ | 0.06 | $ | 0.08 | $ | 0.28 | |||||||
Shares used in computing basic earnings per common share | 54,037 | 54,037 | 54,037 | 54,037 | |||||||||||
Diluted earnings per common share | $ | 0.14 | $ | 0.06 | $ | 0.08 | $ | 0.27 | |||||||
Shares used in computing diluted earnings per common share | 55,672 | 55,672 | 55,672 | 55,672 | |||||||||||
Note: Amounts may not sum due to rounding | |||||||||||||||
(1) GAAP Results | |||||||||||||||
(2) Non-cash stock compensation expense | |||||||||||||||
(3) Non-cash income taxes | |||||||||||||||
(4) Non-GAAP Results |
The Medicines Company | |||||||||||||||
Reconciliation of GAAP to non-GAAP Measures | |||||||||||||||
(All amounts in thousands, except per share amounts) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||
2011 | |||||||||||||||
GAAP(1) | Stock-Based Compensation | Non-cash Tax Provision | Non-GAAP(4) As Adjusted | ||||||||||||
Net revenue | $ | 112,137 | $ | — | $ | — | $ | 112,137 | |||||||
Operating expenses: | |||||||||||||||
Cost of revenue | 35,570 | (43 | ) | (2) | — | 35,527 | |||||||||
Research and development | 23,792 | (427 | ) | (2) | — | 23,365 | |||||||||
Selling, general and administrative | 37,928 | (1,790 | ) | (2) | — | 36,138 | |||||||||
Total operating expenses | 97,290 | (2,260 | ) | — | 95,030 | ||||||||||
Income from operations | 14,847 | 2,260 | — | 17,107 | |||||||||||
Legal settlement | 17,984 | — | — | 17,984 | |||||||||||
Other income | 811 | — | — | 811 | |||||||||||
Income before income taxes | 33,642 | 2,260 | — | 35,902 | |||||||||||
(Provision) benefit for income taxes | (9,401 | ) | — | 7,991 | (3) | (1,410 | ) | ||||||||
Net income | $ | 24,241 | $ | 2,260 | $ | 7,991 | $ | 34,492 | |||||||
Basic earnings per common share | $ | 0.46 | $ | 0.04 | $ | 0.15 | $ | 0.65 | |||||||
Shares used in computing basic earnings per common share | 53,224 | 53,224 | 53,224 | 53,224 | |||||||||||
Diluted earnings per common share | $ | 0.45 | $ | 0.04 | $ | 0.15 | $ | 0.64 | |||||||
Shares used in computing diluted earnings per common share | 54,109 | 54,109 | 54,109 | 54,109 | |||||||||||
Note: Amounts may not sum due to rounding | |||||||||||||||
(1) GAAP Results | |||||||||||||||
(2) Non-cash stock compensation expense | |||||||||||||||
(3) Non-cash income taxes | |||||||||||||||
(4) Non-GAAP Results |