ALERE INC.
|
Delaware
|
1‑16789
|
04‑3565120
|
||
(State or Other Jurisdiction
of Incorporation) |
(Commission File Number)
|
(IRS Employer
Identification No.) |
ALERE INC. | ||||
Date: September 6, 2016
|
By:
|
/s/ James Hinrichs | ||
Name: | James Hinrichs | |||
Title: | Executive Vice President and Chief Financial Officer | |||
EXHIBIT
NO.
|
DESCRIPTION
|
|
|
|
|
99.1
|
|
Press Release dated September 6, 2016.
|
Revenue (in millions)
|
Second Quarter 2016
|
Second
Quarter 2015
|
% Change
|
|||||||||
Cardiometabolic Disease
|
$
|
204
|
$
|
212
|
(4
|
%)
|
||||||
Infectious Disease
|
190
|
173
|
10
|
%
|
||||||||
Toxicology
|
158
|
157
|
-
|
|||||||||
Other
|
36
|
51
|
(29
|
%)
|
||||||||
Consumer Diagnostics
|
20
|
25
|
(20
|
%)
|
||||||||
License and Royalty
|
3
|
5
|
(56
|
%)
|
||||||||
Total
|
$
|
611
|
$
|
623
|
(2
|
%)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Net product sales and services revenue
|
$
|
608,555
|
$
|
617,677
|
$
|
1,184,035
|
$
|
1,225,871
|
||||||||
License and royalty revenue
|
2,533
|
5,694
|
5,262
|
10,392
|
||||||||||||
Net revenue
|
611,088
|
623,371
|
1,189,297
|
1,236,263
|
||||||||||||
Cost of net revenue
|
329,227
|
336,037
|
641,179
|
653,714
|
||||||||||||
Gross profit
|
281,861
|
287,334
|
548,118
|
582,549
|
||||||||||||
Gross margin
|
46
|
%
|
46
|
%
|
46
|
%
|
47
|
%
|
||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
28,446
|
27,198
|
55,508
|
55,214
|
||||||||||||
Selling, general and administrative
|
230,870
|
169,197
|
445,639
|
370,967
|
||||||||||||
Impairment and (gain) loss on disposition, net
|
-
|
5,542
|
(3,810
|
)
|
40,334
|
|||||||||||
Operating income
|
22,545
|
85,397
|
50,781
|
116,034
|
||||||||||||
Interest and other income (expense), net
|
(56,441
|
)
|
(56,299
|
)
|
(99,896
|
)
|
(105,097
|
)
|
||||||||
Loss from continuing operations before provision (benefit) for income taxes
|
(33,896
|
)
|
29,098
|
(49,115
|
)
|
10,937
|
||||||||||
Provision (benefit) for income taxes
|
3,117
|
15,689
|
2,909
|
7,836
|
||||||||||||
Income (loss) from continuing operations before equity earnings of unconsolidated entities, net of tax
|
(37,013
|
)
|
13,409
|
(52,024
|
)
|
3,101
|
||||||||||
Equity earnings of unconsolidated entities, net of tax
|
2,122
|
1,361
|
7,156
|
5,320
|
||||||||||||
Income (loss) from continuing operations
|
(34,891
|
)
|
14,770
|
(44,868
|
)
|
8,421
|
||||||||||
Income from discontinued operations, net of tax
|
-
|
-
|
-
|
216,777
|
||||||||||||
Net income
|
(34,891
|
)
|
14,770
|
(44,868
|
)
|
225,198
|
||||||||||
Less: Net income attributable to non-controlling interests
|
143
|
359
|
246
|
447
|
||||||||||||
Net income attributable to Alere Inc. and Subsidiaries
|
(35,034
|
)
|
14,411
|
(45,114
|
)
|
224,751
|
||||||||||
Preferred stock dividends
|
(5,308
|
)
|
(5,308
|
)
|
(10,617
|
)
|
(10,558
|
)
|
||||||||
Net income available to common stockholders
|
$
|
(40,342
|
)
|
$
|
9,103
|
$
|
(55,731
|
)
|
$
|
214,193
|
||||||
Basic net income per common share:
|
||||||||||||||||
Income (loss) from continuing operations
|
$
|
(0.46
|
)
|
$
|
0.11
|
$
|
(0.64
|
)
|
$
|
(0.03
|
)
|
|||||
Income from discontinued operations
|
-
|
-
|
|
2.56
|
||||||||||||
Basic and diluted net income per common share
|
$
|
(0.46
|
)
|
$
|
0.11
|
$
|
(0.64
|
)
|
$
|
2.53
|
||||||
Diluted net income per common share:
|
||||||||||||||||
Income (loss) from continuing operations
|
$
|
(0.46
|
)
|
$
|
0.11
|
$
|
(0.64
|
)
|
$
|
(0.03
|
)
|
|||||
Income from discontinued operations
|
-
|
-
|
-
|
2.56
|
||||||||||||
Diluted net income per common share
|
$
|
(0.46
|
)
|
$
|
0.11
|
$
|
(0.64
|
)
|
$
|
2.53
|
||||||
Weighted average shares - basic
|
86,737
|
85,173
|
86,692
|
84,758
|
||||||||||||
Weighted average shares - diluted
|
86,737
|
86,635
|
86,692
|
84,758
|
June 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
506,164
|
$
|
502,200
|
||||
Restricted cash
|
5,662
|
5,694
|
||||||
Marketable securities
|
74
|
164
|
||||||
Accounts receivable, net
|
427,222
|
445,833
|
||||||
Inventories, net
|
333,846
|
347,001
|
||||||
Prepaid expenses and other current assets
|
162,339
|
152,233
|
||||||
Assets held for sale
|
-
|
4,165
|
||||||
Total current assets
|
1,435,307
|
1,457,290
|
||||||
Property, Plant and Equipment, net
|
438,787
|
446,039
|
||||||
Goodwill and other intangible assets, net
|
3,749,032
|
3,862,306
|
||||||
Restricted Cash- non-current
|
42,589
|
43,228
|
||||||
Other non-current assets
|
112,956
|
100,921
|
||||||
Assets held for sale - non-current
|
12,223
|
13,337
|
||||||
Total assets
|
$
|
5,790,894
|
$
|
5,923,121
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Short-term debt and current portions of long-term debt and capital lease obligations
|
$
|
47,181
|
$
|
203,954
|
||||
Liabilities related to assets held for sale
|
-
|
363
|
||||||
Other current liabilities
|
514,761
|
520,217
|
||||||
Total current liabilities
|
561,942
|
724,534
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Long-term debt and capital lease obligations, net of current portions
|
2,927,761
|
2,838,347
|
||||||
Deferred tax liabilities
|
140,864
|
147,618
|
||||||
Other long-term liabilities
|
148,165
|
154,193
|
||||||
Liabilities related to assets held for sale - non-current
|
-
|
-
|
||||||
Total long-term liabilities
|
3,216,790
|
3,140,158
|
||||||
TOTAL EQUITY
|
2,012,162
|
2,058,429
|
||||||
Total liabilities and equity
|
$
|
5,790,894
|
$
|
5,923,121
|
Three Months Ended June 30,
|
% Change
|
|||||||||||
2016
|
2015
|
2016 v. 2015 | ||||||||||
Professional diagnostics segment (1)
|
||||||||||||
Cardiometabolic
|
$
|
203,982
|
$
|
211,672
|
-4%
|
|
||||||
Infectious disease
|
190,168
|
172,834
|
10%
|
|
||||||||
Toxicology
|
158,199
|
157,495
|
0%
|
|
||||||||
Other
|
36,412
|
51,031
|
-29%
|
|
||||||||
Total professional diagnostics segment
|
588,761
|
593,032
|
-1%
|
|
||||||||
Consumer diagnostics segment (1)
|
19,794
|
24,645
|
-20%
|
|
||||||||
License and royalty revenue
|
2,533
|
5,694
|
-56%
|
|
||||||||
Net revenue
|
$
|
611,088
|
$
|
623,371
|
-2%
|
|
Six Months Ended June 30,
|
% Change
|
|||||||||||
2016
|
2015
|
2016 v. 2015 | ||||||||||
Professional diagnostics segment (1)
|
||||||||||||
Cardiometabolic
|
$
|
398,559
|
$
|
412,608
|
-3%
|
|
||||||
Infectious disease
|
373,402
|
358,236
|
4%
|
|
||||||||
Toxicology
|
304,982
|
306,251
|
0%
|
|
||||||||
Other
|
69,856
|
102,163
|
-32%
|
|
||||||||
Total professional diagnostics segment
|
1,146,799
|
1,179,259
|
-3%
|
|
||||||||
Consumer diagnostics segment (1)
|
37,236
|
46,613
|
-20%
|
|
||||||||
License and royalty revenue
|
5,262
|
10,392
|
-49%
|
|
||||||||
Net revenue
|
$
|
1,189,297
|
$
|
1,236,264
|
-4%
|
|
Three Months Ended June 30,
|
||||||||
2016
|
2015
|
|||||||
Net Income (loss) (1)
|
$
|
(34,891
|
)
|
$
|
14,770
|
|||
Less: Income from discontinued operations, net of tax
|
-
|
-
|
||||||
Loss from continuing operations
|
(34,891
|
)
|
14,770
|
|||||
Adjustment related to acquired software license contracts
|
200
|
|||||||
Income tax benefit
|
3,117
|
15,689
|
||||||
Depreciation and amortization
|
69,978
|
72,795
|
||||||
Interest, net
|
41,684
|
58,765
|
||||||
Non-cash stock-based compensation expense
|
11,004
|
7,130
|
||||||
Non-cash fair value adjustments to acquisition-related contingent consideration
|
(1,922
|
)
|
(41,090
|
)
|
||||
Impairment and (gain) loss on dispositions, net
|
-
|
5,542
|
||||||
Non-GAAP Adjusted EBITDA
|
$
|
88,970
|
$
|
133,801
|
Six Months Ended June 30,
|
||||||||
2016
|
2015
|
|||||||
Net Income (loss) (1)
|
$
|
(44,868
|
)
|
$
|
225,198
|
|||
Less: Income from discontinued operations, net of tax
|
-
|
216,777
|
||||||
Loss from continuing operations
|
(44,868
|
)
|
8,421
|
|||||
Adjustment related to acquired software license contracts
|
447
|
|||||||
Income tax benefit
|
2,909
|
7,836
|
||||||
Depreciation and amortization
|
142,589
|
147,314
|
||||||
Interest, net
|
82,625
|
104,597
|
||||||
Non-cash stock-based compensation expense
|
20,606
|
12,279
|
||||||
Non-cash fair value adjustments to acquisition-related contingent consideration
|
(1,780
|
)
|
(52,867
|
)
|
||||
Impairment and (gain) loss on dispositions, net
|
(3,810
|
)
|
40,334
|
|||||
Non-GAAP Adjusted EBITDA
|
$
|
198,271
|
$
|
268,361
|
Three Months Ended June 30,
|
% Change
|
|||||||||||
2016
|
2015
|
2016 v. 2015
|
||||||||||
Net revenue
|
$
|
611,088
|
$
|
623,371
|
-2.0
|
%
|
||||||
Impact of foreign currency exchange
|
10,375
|
-
|
||||||||||
Impact of acquisitons & dispositions
|
(6,127
|
)
|
(19,577
|
)
|
||||||||
Non-GAAP organic net revenue
|
$
|
615,337
|
$
|
603,794
|
1.9
|
%
|
||||||
Six Months Ended June 30,
|
% Change
|
|||||||||||
2016
|
2015
|
2016 v. 2015
|
||||||||||
Net revenue
|
$
|
1,189,297
|
$
|
1,236,263
|
-3.8
|
%
|
||||||
Impact of foreign currency exchange
|
26,913
|
-
|
||||||||||
Impact of acquisitons & dispositions
|
(11,368
|
)
|
(37,108
|
)
|
||||||||
Non-GAAP organic net revenue
|
$
|
1,204,842
|
$
|
1,199,155
|
0.5
|
%
|
Three months ended June 30, 2016
|
||||||||||||||||||||||||||||||||
Cost of Net Revenue
|
Research and Development
|
Selling, General
& Administrative |
Impairment,
net of loss on disposition |
Interest and
other income, net |
Provision for
income taxes |
Equity
earnings of unconsolidated entities, net of tax |
Net Income1
|
|||||||||||||||||||||||||
Amortization of acquisition-related intangible assets
|
$
|
12,716
|
$
|
925
|
$
|
31,797
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(45,438
|
)
|
|||||||||||||||
Restructuring charges
|
1,103
|
1,034
|
6,648
|
-
|
-
|
-
|
-
|
(8,785
|
)
|
|||||||||||||||||||||||
Impairment Charges
|
85
|
-
|
-
|
-
|
-
|
-
|
(85
|
)
|
||||||||||||||||||||||||
Stock-based compensation expense
|
601
|
481
|
9,922
|
-
|
-
|
-
|
-
|
(11,004
|
)
|
|||||||||||||||||||||||
Acquisition-related costs
|
-
|
-
|
202
|
-
|
-
|
-
|
-
|
(202
|
)
|
|||||||||||||||||||||||
Fair value adjustments to acquisition-related contingent consideration
|
-
|
-
|
(1,922
|
)
|
-
|
-
|
-
|
-
|
1,922
|
|||||||||||||||||||||||
Costs associated with potential business dispositions
|
-
|
-
|
61
|
-
|
-
|
-
|
-
|
(61
|
)
|
|||||||||||||||||||||||
Impairment and (gain) loss on disposition, net
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Amortization - Unconsolidated Subs
|
-
|
-
|
-
|
-
|
-
|
-
|
76
|
(76
|
)
|
|||||||||||||||||||||||
Audit and legal fees related to on-going SEC investigations
|
-
|
-
|
5,056
|
-
|
890
|
-
|
-
|
(5,946
|
)
|
|||||||||||||||||||||||
Abbott transaction related expenses
|
-
|
-
|
10,527
|
-
|
-
|
-
|
-
|
(10,527
|
)
|
|||||||||||||||||||||||
INRatio recall expense
|
800
|
-
|
-
|
-
|
-
|
-
|
-
|
(800
|
)
|
|||||||||||||||||||||||
Legal settlement accrual
|
-
|
-
|
-
|
-
|
10,200
|
-
|
-
|
(10,200
|
)
|
|||||||||||||||||||||||
Income tax effects on items above
|
-
|
-
|
-
|
-
|
-
|
(14,142
|
)
|
-
|
14,142
|
|||||||||||||||||||||||
Total of Supplemental Information
|
$
|
15,305
|
$
|
2,440
|
$
|
62,291
|
$
|
-
|
$
|
11,090
|
$
|
(14,142
|
)
|
$
|
76
|
$
|
(77,060
|
)
|
||||||||||||||
Impact of above items on EPS numerator
|
$
|
-
|
||||||||||||||||||||||||||||||
Impact of above items on EPS denominator
|
(1,212
|
)
|
Six months ended June 30, 2016
|
||||||||||||||||||||||||||||||||
Cost of Net Revenue
|
Research and Development
|
Selling, General
& Administrative |
Impairment,
net of loss on disposition |
Interest and
other income, net |
Provision for income taxes
|
Equity
earnings of unconsolidated entities, net of tax |
Net Income1
|
|||||||||||||||||||||||||
Amortization of acquisition-related intangible assets
|
$
|
24,936
|
$
|
1,837
|
$
|
63,887
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(90,660
|
)
|
|||||||||||||||
Restructuring charges
|
2,370
|
2,954
|
11,124
|
-
|
-
|
-
|
-
|
(16,448
|
)
|
|||||||||||||||||||||||
Impairment Charges
|
85
|
-
|
-
|
-
|
-
|
-
|
-
|
(85
|
)
|
|||||||||||||||||||||||
Stock-based compensation expense
|
1,080
|
879
|
18,647
|
-
|
-
|
-
|
-
|
(20,606
|
)
|
|||||||||||||||||||||||
Acquisition-related costs
|
-
|
-
|
691
|
-
|
-
|
-
|
-
|
(691
|
)
|
|||||||||||||||||||||||
Fair value adjustments to acquisition-related contingent consideration
|
-
|
-
|
(1,780
|
)
|
-
|
-
|
-
|
-
|
1,780
|
|||||||||||||||||||||||
Costs associated with potential business dispositions
|
7
|
-
|
902
|
-
|
-
|
-
|
-
|
(909
|
)
|
|||||||||||||||||||||||
Impairment and (gain) loss on disposition, net
|
-
|
-
|
-
|
(3,810
|
)
|
-
|
-
|
-
|
3,810
|
|||||||||||||||||||||||
Amortization - Unconsolidated Subs
|
-
|
-
|
-
|
-
|
-
|
-
|
183
|
(183
|
)
|
|||||||||||||||||||||||
Audit and legal fees related to on-going SEC investigations
|
-
|
-
|
9,414
|
-
|
890
|
-
|
-
|
(10,304
|
)
|
|||||||||||||||||||||||
Abbott transaction related expenses
|
-
|
-
|
20,868
|
-
|
-
|
-
|
-
|
(20,868
|
)
|
|||||||||||||||||||||||
INRatio recall expense
|
1,500
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,500
|
)
|
|||||||||||||||||||||||
Legal settlement accrual
|
-
|
-
|
-
|
-
|
10,200
|
-
|
-
|
(10,200
|
)
|
|||||||||||||||||||||||
Income tax effects on items above
|
-
|
-
|
-
|
-
|
-
|
(30,628
|
)
|
-
|
30,628
|
|||||||||||||||||||||||
Total of Supplemental Information
|
$
|
29,978
|
$
|
5,670
|
$
|
123,753
|
$
|
(3,810
|
)
|
$
|
11,090
|
$
|
(30,628
|
)
|
$
|
183
|
$
|
(136,236
|
)
|
|||||||||||||
Impact of above items on EPS numerator
|
$
|
(2,081
|
)
|
|||||||||||||||||||||||||||||
Impact of above items on EPS denominator
|
(4,919
|
)
|
Three Months Ended
March 31, 2015
|
Three Months Ended
June 30, 2015
|
Three Months Ended
September 30, 2015
|
Three Months Ended
December 31, 2015
|
Year Ended
December 31, 2015
|
||||||||||||||||
Net Income
|
$
|
210,428
|
$
|
14,770
|
$
|
(2,383
|
)
|
$
|
(16,059
|
)
|
$
|
206,757
|
||||||||
Less: Income from discontinued operations, net of tax
|
216,776
|
(0
|
)
|
0
|
2,737
|
219,513
|
||||||||||||||
Income/(Loss) from continuing operations
|
(6,348
|
)
|
14,770
|
(2,383
|
)
|
(18,796
|
)
|
(12,756
|
)
|
|||||||||||
Adjustment related to acquired software license contracts
|
247
|
201
|
430
|
-
|
877
|
|||||||||||||||
Income tax benefit
|
(7,853
|
)
|
15,689
|
(10,210
|
)
|
(50,329
|
)
|
(52,704
|
)
|
|||||||||||
Depreciation and amortization
|
74,519
|
72,795
|
86,651
|
75,719
|
309,684
|
|||||||||||||||
Interest, net
|
45,832
|
58,765
|
49,999
|
57,954
|
212,551
|
|||||||||||||||
Non-cash stock-based compensation expense
|
5,149
|
7,130
|
7,317
|
6,795
|
26,391
|
|||||||||||||||
Non-cash fair value adjustments to acquisition-related contingent consideration
|
(11,777
|
)
|
(41,090
|
)
|
957
|
(5,703
|
)
|
(57,613
|
)
|
|||||||||||
Non-cash write-off of an investment
|
662
|
-
|
662
|
|||||||||||||||||
Impairment and (gain) loss on dispositions, net
|
34,792
|
5,542
|
2,074
|
8,132
|
50,540
|
|||||||||||||||
Non-cash INRatio product recall expenses
|
-
|
-
|
-
|
21,100
|
21,100
|
|||||||||||||||
Write-off of acquisition-related obligation
|
-
|
-
|
-
|
(40
|
)
|
(40
|
)
|
|||||||||||||
Non-GAAP Adjusted EBITDA
|
$
|
134,561
|
$
|
133,801
|
$
|
135,496
|
$
|
94,833
|
$
|
498,691
|