Delaware | 001-38485 | 32-0546926 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 7.01 | Regulation FD. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description |
Date: February 28, 2019 | AMNEAL PHARMACEUTICALS, INC. | |
By: | /s/ Todd P. Branning | |
Name: | Todd P. Branning | |
Title: | Senior Vice President and Chief Financial Officer |
Three Months Ended | Variance | ||||||||||||||||
December 31, 2018 | September 30, 2018 | December 31, 2017 | Sequential | Year/ Year | |||||||||||||
GAAP Results(2) | |||||||||||||||||
Net revenue | $ | 497,528 | $ | 476,487 | $ | 293,369 | 4.4 | % | 69.6 | % | |||||||
Net (loss) income | $ | (20,330 | ) | $ | 17,465 | $ | 62,194 | (216.4 | )% | (132.7 | )% | ||||||
Diluted (loss) earnings per share (EPS) attributable to Amneal Pharmaceuticals, Inc. | $ | (0.07 | ) | $ | 0.05 | N/A | (240.0 | )% | N/A | ||||||||
Non-GAAP Results(3) | |||||||||||||||||
Combined net revenue | $ | 497,528 | $ | 476,487 | $ | 487,383 | 4.4 | % | 2.1 | % | |||||||
Combined adjusted net income | $ | 99,976 | $ | 82,101 | $ | 76,446 | 21.8 | % | 30.8 | % | |||||||
Combined adjusted EBITDA | $ | 186,647 | $ | 162,917 | $ | 139,625 | 14.6 | % | 33.7 | % | |||||||
Combined adjusted diluted EPS | $ | 0.33 | $ | 0.27 | N/A | 22.2 | % | N/A |
Years Ended | Variance | |||||||||
December 31, 2018 | December 31, 2017 | Year/Year | ||||||||
GAAP Results(2) | ||||||||||
Net revenue | $ | 1,662,991 | $ | 1,033,654 | 60.9 | % | ||||
Net (loss) income | $ | (201,303 | ) | $ | 169,325 | (218.9 | )% | |||
Diluted loss per share attributable to Amneal Pharmaceuticals, Inc. | $ | (0.16 | ) | N/A | N/A | |||||
Non-GAAP Results(3) | ||||||||||
Combined net revenue | $ | 1,861,473 | $ | 1,857,780 | 0.2 | % | ||||
Combined adjusted net income | $ | 293,702 | $ | 270,511 | 8.6 | % | ||||
Combined adjusted EBITDA | $ | 584,280 | $ | 503,678 | 16.0 | % | ||||
Combined adjusted diluted EPS | $ | 0.98 | N/A | N/A |
Generics | Three months ended December 31, 2018 | Three months ended December 31, 2017 | |||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Net revenue - Generics | $ | 410,897 | $ | — | $ | 410,897 | $ | 293,369 | $ | 112,943 | $ | 406,312 | |||||||
Cost of goods sold | 263,002 | — | 263,002 | 141,953 | 150,762 | 292,715 | |||||||||||||
Gross profit | 147,895 | — | 147,895 | 151,416 | (37,819 | ) | 113,597 | ||||||||||||
Selling, general, and administrative | 16,572 | — | 16,572 | 11,210 | 8,223 | 19,433 | |||||||||||||
Research and development | 53,650 | — | 53,650 | 43,494 | 12,612 | 56,106 | |||||||||||||
In-process research and development impairment charges | 38,609 | — | 38,609 | — | 186,731 | 186,731 | |||||||||||||
Restructuring and asset-related charges | 12,031 | — | 12,031 | — | — | — | |||||||||||||
Legal settlement gains | (19,300 | ) | — | (19,300 | ) | (7,845 | ) | — | (7,845 | ) | |||||||||
Intellectual property legal development expenses | 3,263 | — | 3,263 | 2,732 | — | 2,732 | |||||||||||||
Change in fair value of contingent consideration | — | — | — | — | (38,123 | ) | (38,123 | ) | |||||||||||
Fixed asset impairment | — | — | — | — | 5,577 | 5,577 | |||||||||||||
Operating income (loss) | $ | 43,070 | $ | — | $ | 43,070 | $ | 101,825 | $ | (212,839 | ) | $ | (111,014 | ) | |||||
Gross margin | 36.0 | % | — | 36.0 | % | 51.6 | % | (33.5 | )% | 28.0 | % | ||||||||
Adjusted gross profit (Non-GAAP)(5) | $ | 185,268 | $ | — | $ | 185,268 | $ | 155,739 | $ | 35,401 | $ | 191,140 | |||||||
Adjusted gross margin (Non-GAAP)(6) | 45.1 | % | — | 45.1 | % | 53.1 | % | 31.3 | % | 47.0 | % | ||||||||
Adjusted operating income (Non-GAAP) | $ | 150,166 | $ | — | $ | 150,166 | $ | 106,148 | $ | 16,431 | $ | 122,579 |
Generics | Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Net revenue - Generics | $ | 1,439,031 | $ | 102,237 | $ | 1,541,268 | $ | 1,033,654 | $ | 549,077 | $ | 1,582,731 | |||||||
Cost of goods sold | 842,996 | 122,761 | 965,757 | 507,476 | 551,776 | 1,059,252 | |||||||||||||
Gross profit | 596,035 | (20,524 | ) | 575,511 | 526,178 | (2,699 | ) | 523,479 | |||||||||||
Selling, general, and administrative | 68,426 | 11,896 | 80,322 | 56,050 | 28,294 | 84,344 | |||||||||||||
Research and development | 183,412 | 13,623 | 197,035 | 171,420 | 63,245 | 234,665 | |||||||||||||
In-process research and development impairment charges | 39,259 | — | 39,259 | — | 192,809 | 192,809 | |||||||||||||
Acquisition, integration and transaction related expenses | 114,622 | — | 114,622 | — | — | — | |||||||||||||
Restructuring and asset-related charges | 33,943 | — | 33,943 | — | — | — | |||||||||||||
Legal settlement gains | (22,300 | ) | — | (22,300 | ) | (29,312 | ) | — | (29,312 | ) | |||||||||
Intellectual property legal development expenses | 15,772 | — | 15,772 | 20,518 | 715 | 21,233 | |||||||||||||
Litigation, settlements and related charges | — | 84,597 | 84,597 | — | — | — | |||||||||||||
Change in fair value of contingent consideration | — | — | — | — | (31,048 | ) | (31,048 | ) | |||||||||||
Fixed asset impairment | — | — | — | — | 8,380 | 8,380 | |||||||||||||
Operating income | $ | 162,901 | $ | (130,640 | ) | $ | 32,261 | $ | 307,502 | $ | (265,094 | ) | $ | 42,408 | |||||
Gross margin | 41.4 | % | (20.1 | )% | 37.3 | % | 50.9 | % | (0.5 | )% | 33.1 | % | |||||||
Adjusted gross profit (Non-GAAP)(5) | $ | 712,954 | $ | 3,246 | $ | 716,200 | $ | 561,518 | $ | 208,960 | $ | 770,478 | |||||||
Adjusted gross margin (Non-GAAP)(6) | 49.5 | % | 3.2 | % | 46.5 | % | 54.3 | % | 38.1 | % | 48.7 | % | |||||||
Adjusted operating income (Non-GAAP) | $ | 489,520 | $ | (22,273 | ) | $ | 467,247 | $ | 342,842 | $ | 123,241 | $ | 466,083 |
Specialty | Three months ended December 31, 2018 | Three months ended December 31, 2017 | |||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Net revenue - Specialty: | |||||||||||||||||||
Rytary® | $ | 42,680 | $ | — | $ | 42,680 | $ | — | $ | 28,290 | $ | 28,290 | |||||||
Zomig® | 18,308 | — | 18,308 | — | 15,034 | 15,034 | |||||||||||||
All other specialty products | 25,643 | — | 25,643 | — | 37,747 | 37,747 | |||||||||||||
Total net revenue - Specialty | 86,631 | — | 86,631 | — | 81,071 | 81,071 | |||||||||||||
Cost of goods sold | 41,118 | — | 41,118 | — | 23,405 | 23,405 | |||||||||||||
Gross profit | 45,513 | — | 45,513 | — | 57,666 | 57,666 | |||||||||||||
Selling, general, and administrative | 16,200 | — | 16,200 | — | 22,156 | 22,156 | |||||||||||||
Research and development | 3,647 | — | 3,647 | — | 3,077 | 3,077 | |||||||||||||
Intellectual property legal development expenses | (26 | ) | — | (26 | ) | — | — | — | |||||||||||
Restructuring and asset-related charges | 1,682 | — | 1,682 | — | — | — | |||||||||||||
Litigation, settlements and related charges | — | — | — | — | 1,111 | 1,111 | |||||||||||||
Fixed asset impairment | — | — | — | — | 74,128 | 74,128 | |||||||||||||
Operating income (loss) | $ | 24,010 | $ | — | $ | 24,010 | $ | — | $ | (42,806 | ) | $ | (42,806 | ) | |||||
Gross margin | 52.5 | % | — | 52.5 | % | — | 71.1 | % | 71.1 | % | |||||||||
Adjusted gross profit (Non-GAAP)(5) | $ | 70,058 | $ | — | $ | 70,058 | $ | — | $ | 63,368 | $ | 63,368 | |||||||
Adjusted gross margin (Non-GAAP)(6) | 80.9 | % | — | 80.9 | % | — | 78.2 | % | 78.2 | % | |||||||||
Adjusted operating income (Non-GAAP) | $ | 50,600 | $ | — | $ | 50,600 | $ | — | $ | 38,995 | $ | 38,995 |
Specialty | Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Net revenue - Specialty: | |||||||||||||||||||
Rytary® | $ | 95,541 | $ | 35,086 | $ | 130,627 | $ | — | $ | 91,637 | $ | 91,637 | |||||||
Zomig® | 43,111 | 14,411 | 57,522 | — | 51,115 | 51,115 | |||||||||||||
All other specialty products sales | 85,308 | 46,748 | 132,056 | — | 132,297 | 132,297 | |||||||||||||
Total net revenue - Specialty | 223,960 | 96,245 | 320,205 | — | 275,049 | 275,049 | |||||||||||||
Cost of goods sold | 103,592 | 26,731 | 130,323 | — | 98,650 | 98,650 | |||||||||||||
Gross profit | 120,368 | 69,514 | 189,882 | — | 176,399 | 176,399 | |||||||||||||
Selling, general, and administrative | 49,465 | 27,942 | 77,407 | — | 80,185 | 80,185 | |||||||||||||
Research and development | 10,778 | 3,664 | 14,442 | — | 17,662 | 17,662 | |||||||||||||
Intellectual property legal development expenses | 489 | 23 | 512 | — | 3,167 | 3,167 | |||||||||||||
Restructuring and asset-related charges | 4,076 | — | 4,076 | — | — | — | |||||||||||||
Litigation, settlements and related charges | — | 940 | 940 | — | 1,111 | 1,111 | |||||||||||||
Fixed asset impairment | — | — | — | — | 74,128 | 74,128 | |||||||||||||
Operating income | $ | 55,560 | $ | 36,945 | $ | 92,505 | $ | — | $ | 146 | $ | 146 | |||||||
Gross margin | 53.7 | % | 72.2 | % | 59.3 | % | — | 64.1 | % | 64.1 | % | ||||||||
Adjusted gross profit (Non-GAAP)(5) | $ | 178,022 | $ | 75,626 | $ | 253,648 | $ | — | $ | 200,937 | $ | 200,937 | |||||||
Adjusted gross margin (Non-GAAP)(6) | 79.5 | % | 78.6 | % | 79.2 | % | — | 73.1 | % | 73.1 | % | ||||||||
Adjusted operating income (Non-GAAP) | $ | 118,127 | $ | 43,997 | $ | 162,124 | $ | — | $ | 101,698 | $ | 101,698 |
Full Year 2019 Financial Outlook | |
Adjusted gross margin | 47% - 50% |
Adjusted R&D as a % of net revenue | 9% - 10% |
Adjusted SG&A as a % of net revenue | 11% - 12% |
Adjusted EBITDA | $600 million - $650 million |
Adjusted diluted EPS | $0.94 - $1.04 |
Adjusted effective tax rate | 19% - 21% |
Capital expenditures | Approximately $100 million |
Weighted diluted shares outstanding | Approximately 300 million |
(unaudited) | |||||||||||||||
Three months ended | Years ended | ||||||||||||||
December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | ||||||||||||
Net revenue | $ | 497,528 | $ | 293,369 | $ | 1,662,991 | $ | 1,033,654 | |||||||
Cost of goods sold | 304,120 | 141,953 | 946,588 | 507,476 | |||||||||||
Gross profit | 193,408 | 151,416 | 716,403 | 526,178 | |||||||||||
Selling, general and administrative | 71,236 | 26,966 | 230,435 | 109,046 | |||||||||||
Research and development | 57,297 | 43,494 | 194,190 | 171,420 | |||||||||||
In-process research and development impairment charges | 38,609 | — | 39,259 | — | |||||||||||
Acquisition, transaction-related and integration expenses | 4,945 | 7,050 | 221,818 | 9,403 | |||||||||||
Restructuring and asset-related charges | 14,104 | — | 56,413 | — | |||||||||||
Legal settlement gains | (19,300 | ) | (7,845 | ) | (22,300 | ) | (29,312 | ) | |||||||
Intellectual property legal development expenses | 3,237 | 2,732 | 16,261 | 20,518 | |||||||||||
Operating income (loss) | 23,280 | 79,019 | (19,673 | ) | 245,103 | ||||||||||
Other (expense) income: | |||||||||||||||
Interest expense, net | (42,880 | ) | (19,956 | ) | (143,571 | ) | (71,061 | ) | |||||||
Foreign exchange gain (loss) | 2,817 | 3,341 | (19,701 | ) | 29,092 | ||||||||||
Loss on extinguishment of debt | — | (1 | ) | (19,667 | ) | (2,532 | ) | ||||||||
Loss on sale of international operations | (146 | ) | (352 | ) | (2,958 | ) | (29,232 | ) | |||||||
Other income (expense) | 2,123 | 24 | 2,848 | (47 | ) | ||||||||||
Total other expense, net | (38,086 | ) | (16,944 | ) | (183,049 | ) | (73,780 | ) | |||||||
(Loss) income before income taxes | (14,806 | ) | 62,075 | (202,722 | ) | 171,323 | |||||||||
Provision for (benefit from) income taxes | 5,524 | (119 | ) | (1,419 | ) | 1,998 | |||||||||
Net (loss) income | (20,330 | ) | 62,194 | (201,303 | ) | 169,325 | |||||||||
Less: Net (income) loss attributable to Amneal Pharmaceuticals LLC pre-Combination | — | (61,569 | ) | 148,806 | (167,648 | ) | |||||||||
Less: Net loss (income) attributable to non-controlling interests | 11,562 | (625 | ) | 32,753 | (1,677 | ) | |||||||||
Net loss attributable to Amneal Pharmaceuticals, Inc. before accretion of redeemable non-controlling interest | (8,768 | ) | — | (19,744 | ) | — | |||||||||
Accretion of redeemable non-controlling interest | — | — | (1,176 | ) | — | ||||||||||
Net loss attributable to Amneal Pharmaceuticals, Inc. | $ | (8,768 | ) | $ | — | $ | (20,920 | ) | $ | — | |||||
Net loss per share attributable to Amneal Pharmaceuticals, Inc.'s common stockholders: | |||||||||||||||
Class A and Class B-1 basic and diluted | $ | (0.07 | ) | $ | (0.16 | ) | |||||||||
Weighted-average common shares outstanding: | |||||||||||||||
Class A and Class B-1 basic and diluted | 127,343 | 127,252 |
December 31, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 213,394 | $ | 74,166 | |||
Restricted cash | 5,385 | 3,756 | |||||
Trade accounts receivable, net | 481,495 | 351,367 | |||||
Inventories | 457,219 | 284,038 | |||||
Prepaid expenses and other current assets | 128,321 | 42,396 | |||||
Related party receivables | 830 | 16,210 | |||||
Total current assets | 1,286,644 | 771,933 | |||||
Property, plant and equipment, net | 544,146 | 486,758 | |||||
Goodwill | 426,226 | 26,444 | |||||
Intangible assets, net | 1,654,969 | 44,599 | |||||
Deferred tax asset, net | 373,159 | 898 | |||||
Other assets | 67,592 | 11,257 | |||||
Total assets | $ | 4,352,736 | $ | 1,341,889 | |||
Liabilities and Stockholders' Equity / Members' Deficit | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 514,440 | $ | 194,779 | |||
Current portion of long-term debt, net | 21,449 | 89,171 | |||||
Current portion of financing obligations - related party | 266 | 311 | |||||
Related party payables | 17,695 | 12,622 | |||||
Total current liabilities | 553,850 | 296,883 | |||||
Long-term debt, net | 2,630,598 | 1,355,274 | |||||
Financing obligation - related party | 39,083 | 39,987 | |||||
Deferred income taxes | 1,178 | 2,491 | |||||
Liabilities under tax receivable agreement | 192,884 | — | |||||
Other long-term liabilities | 38,780 | 7,793 | |||||
Related party payable- long term | — | 15,043 | |||||
Total long-term liabilities | 2,902,523 | 1,420,588 | |||||
Total stockholders' equity / members' deficit | 896,363 | (375,582) | |||||
Total liabilities and stockholders' / members’ deficit | $ | 4,352,736 | $ | 1,341,889 |
Years Ended December 31, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net (loss) income | $ | (201,303 | ) | $ | 169,325 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 137,403 | 45,936 | |||||
Unrealized foreign currency loss (gain) | 18,582 | (30,823 | ) | ||||
Amortization of debt issuance costs | 5,859 | 4,585 | |||||
Loss on extinguishment of debt | 19,667 | 2,532 | |||||
Loss on sale of certain international businesses | 2,958 | 29,232 | |||||
Intangible asset impairment charges | 47,928 | — | |||||
Non-cash restructuring and asset-related charges | 11,295 | — | |||||
Deferred tax (benefit) provision | (9,439) | 742 | |||||
Stock-based compensation and PPU expense | 167,597 | — | |||||
Inventory provision | 44,539 | 3,771 | |||||
Other operating charges and credits, net | (1,866) | 9,935 | |||||
Changes in assets and liabilities: | |||||||
Trade accounts receivable, net | 89,084 | 35,255 | |||||
Inventories | (42,875) | (31,826 | ) | ||||
Prepaid expenses, other current assets and other assets | 19,198 | (25,305 | ) | ||||
Related party receivables | 10,928 | (5,485 | ) | ||||
Accounts payable, accrued expenses and other liabilities | (55,212) | 18,105 | |||||
Related party payables | (14,113) | 8,208 | |||||
Net cash provided by operating activities | 250,230 | 234,187 | |||||
Cash flows from investing activities: | |||||||
Purchases of property, plant and equipment | (83,088) | (94,771) | |||||
Acquisition of product rights and licenses | (14,000) | (19,500 | ) | ||||
Acquisitions, net of cash acquired | (324,634) | — | |||||
Proceeds from sale of property, plant and equipment | 25,344 | — | |||||
Proceeds from sale of certain international businesses, net of cash sold | — | 15,717 | |||||
Net cash used in investing activities | (396,378) | (98,554) | |||||
Cash flows from financing activities: | |||||||
Payments of deferred financing costs and debt extinguishment costs | (54,955) | (5,026) | |||||
Proceeds from issuance of debt | 1,325,383 | 250,000 | |||||
Payments of principal on debt and capital leases | (617,051 | ) | (13,625 | ) | |||
Net (payments) borrowings on revolving credit line | (75,000) | 50,000 | |||||
Payments of principal on financing obligation - related party | (243) | (274 | ) | ||||
Proceeds from exercise of stock options | 3,797 | — | |||||
Equity contributions | 27,742 | 40 | |||||
Capital contribution from (dividend to) non-controlling interest | 360 | (865 | ) | ||||
Acquisition of redeemable non-controlling interest | (11,775) | — | |||||
Tax distribution to non-controlling interest | (35,543) | — | |||||
Distributions to members | (182,998) | (375,265) | |||||
Repayment of related party note | (92,042) | — | |||||
Net cash provided by (used in) financing activities | 287,675 | (95,015) | |||||
Effect of foreign exchange rate on cash | (670) | (242) | |||||
Net increase in cash, cash equivalents, and restricted cash | 140,857 | 40,376 | |||||
Cash, cash equivalents, and restricted cash - beginning of period | 77,922 | 37,546 | |||||
Cash, cash equivalents, and restricted cash - end of period | $ | 218,779 | $ | 77,922 |
Three months ended December 31, 2018 | Three months ended December 31, 2017 | ||||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Net revenue: | |||||||||||||||||||
Generics | $ | 410,897 | $ | — | $ | 410,897 | $ | 293,369 | $ | 112,943 | $ | 406,312 | |||||||
Specialty | 86,631 | — | 86,631 | — | 81,071 | 81,071 | |||||||||||||
Total net revenue | 497,528 | — | 497,528 | 293,369 | 194,014 | 487,383 | |||||||||||||
Cost of goods sold | 304,120 | — | 304,120 | 141,953 | 174,167 | 316,120 | |||||||||||||
Gross profit | 193,408 | — | 193,408 | 151,416 | 19,847 | 171,263 | |||||||||||||
Selling, general and administrative | 71,236 | — | 71,236 | 26,966 | 59,441 | 86,407 | |||||||||||||
Research and development | 57,297 | — | 57,297 | 43,494 | 15,689 | 59,183 | |||||||||||||
In-process research and development impairment charges | 38,609 | — | 38,609 | — | 186,731 | 186,731 | |||||||||||||
Acquisition, transaction-related and integration expenses | 4,945 | — | 4,945 | 7,050 | 8,061 | 15,111 | |||||||||||||
Restructuring and asset-related charges | 14,104 | — | 14,104 | — | — | — | |||||||||||||
Legal settlement gains | (19,300 | ) | (19,300 | ) | (7,845 | ) | — | (7,845 | ) | ||||||||||
Intellectual property legal development expenses | 3,237 | — | 3,237 | 2,732 | — | 2,732 | |||||||||||||
Litigation, settlements and related charges | — | — | — | — | 1,223 | 1,223 | |||||||||||||
Impairment loss on tangible assets | — | — | — | — | 79,705 | 79,705 | |||||||||||||
Gain on sale of assets | — | — | — | — | (656 | ) | (656 | ) | |||||||||||
Change in fair value of contingent consideration | — | — | — | — | (38,123 | ) | (38,123 | ) | |||||||||||
Operating income (loss) | 23,280 | — | 23,280 | 79,019 | (292,224 | ) | (213,205 | ) | |||||||||||
Other (expense) income: | |||||||||||||||||||
Interest expense, net | (42,880) | — | (42,880 | ) | (19,956) | (13,672) | (33,628 | ) | |||||||||||
Foreign exchange gain | 2,817 | — | 2,817 | 3,341 | — | 3,341 | |||||||||||||
Loss on extinguishment of debt | — | — | — | (1 | ) | — | (1 | ) | |||||||||||
Loss on sale of international operations | (146 | ) | — | (146 | ) | (352 | ) | — | (352 | ) | |||||||||
Other income (expense) | 2,123 | — | 2,123 | 24 | (292) | (268 | ) | ||||||||||||
Total other (expense) income, net | (38,086 | ) | — | (38,086 | ) | (16,944 | ) | (13,964 | ) | (30,908 | ) | ||||||||
(Loss) income before income taxes | (14,806 | ) | — | (14,806 | ) | 62,075 | (306,188 | ) | (244,113 | ) | |||||||||
Provision for (benefit from) income taxes | 5,524 | — | 5,524 | (119 | ) | (9,010 | ) | (9,129 | ) | ||||||||||
Net (loss) income | $ | (20,330 | ) | $ | — | $ | (20,330 | ) | $ | 62,194 | $ | (297,178 | ) | $ | (234,984 | ) | |||
Less: Net income attributable to Amneal Pharmaceuticals LLC pre-Combination | — | (61,569) | |||||||||||||||||
Less: Net loss (income) attributable to non-controlling interests | 11,562 | (625) | |||||||||||||||||
Net loss attributable to Amneal Pharmaceuticals, Inc. | $ | (8,768 | ) | $ | — |
Year ended December 31, 2018 | Year ended December 31, 2017 | ||||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Net revenue: | |||||||||||||||||||
Generics | $ | 1,439,031 | $ | 102,237 | $ | 1,541,268 | $ | 1,033,654 | $ | 549,077 | $ | 1,582,731 | |||||||
Specialty | 223,960 | 96,245 | 320,205 | — | 275,049 | 275,049 | |||||||||||||
Total net revenue | 1,662,991 | 198,482 | 1,861,473 | 1,033,654 | 824,126 | 1,857,780 | |||||||||||||
Cost of goods sold | 946,588 | 149,492 | 1,096,080 | 507,476 | 650,426 | 1,157,902 | |||||||||||||
Gross profit | 716,403 | 48,990 | 765,393 | 526,178 | 173,700 | 699,878 | |||||||||||||
Selling, general and administrative | 230,435 | 80,242 | 310,677 | 109,046 | 217,410 | 326,456 | |||||||||||||
Research and development | 194,190 | 17,287 | 211,477 | 171,420 | 80,907 | 252,327 | |||||||||||||
In-process research and development impairment charges | 39,259 | — | 39,259 | — | 192,809 | 192,809 | |||||||||||||
Acquisition, transaction-related and integration expenses | 221,818 | 4,381 | 226,199 | 9,403 | 11,097 | 20,500 | |||||||||||||
Restructuring and asset-related charges | 56,413 | — | 56,413 | — | — | — | |||||||||||||
Legal settlement gains | (22,300 | ) | — | (22,300 | ) | (29,312 | ) | — | (29,312 | ) | |||||||||
Intellectual property legal development expenses | 16,261 | 23 | 16,284 | 20,518 | 3,882 | 24,400 | |||||||||||||
Litigation, settlements and related charges | — | 85,537 | 85,537 | — | 1,223 | 1,223 | |||||||||||||
Impairment loss on tangible assets | — | — | — | — | 82,508 | 82,508 | |||||||||||||
Gain on sale of assets | — | — | — | — | (17,236 | ) | (17,236 | ) | |||||||||||
Change in fair value of contingent consideration | — | — | — | — | (31,048 | ) | (31,048 | ) | |||||||||||
Operating (loss) income | (19,673) | (138,480) | (158,153) | 245,103 | (367,852) | (122,749) | |||||||||||||
Other (expense) income: | |||||||||||||||||||
Interest expense, net | (143,571) | (18,231 | ) | (161,802 | ) | (71,061) | (53,412 | ) | (124,473 | ) | |||||||||
Foreign exchange (loss) gain | (19,701) | 921 | (18,780 | ) | 29,092 | — | 29,092 | ||||||||||||
Loss on extinguishment of debt | (19,667) | — | (19,667 | ) | (2,532) | (1,215 | ) | (3,747 | ) | ||||||||||
Loss on sale of international operations | (2,958 | ) | — | (2,958 | ) | (29,232 | ) | — | (29,232 | ) | |||||||||
Other income (expense) | 2,848 | (638 | ) | 2,210 | (47 | ) | (10,878 | ) | (10,925 | ) | |||||||||
Total other (expense) income, net | (183,049) | (17,948) | (200,997) | (73,780) | (65,505) | (139,285) | |||||||||||||
(Loss) income before income taxes | (202,722) | (156,428) | (359,150) | 171,323 | (433,357) | (262,034) | |||||||||||||
(Benefit from) provision for income taxes | (1,419 | ) | (6,273) | (7,692) | 1,998 | 18,326 | 20,324 | ||||||||||||
Net (loss) income | $ | (201,303 | ) | $ | (150,155 | ) | $ | (351,458 | ) | $ | 169,325 | $ | (451,683 | ) | $ | (282,358 | ) | ||
Less: Net loss (income) attributable to Amneal Pharmaceuticals LLC pre-Combination | 148,806 | (167,648 | ) | ||||||||||||||||
Less: Net loss (income) attributable to non-controlling interests | 32,753 | (1,677 | ) | ||||||||||||||||
Accretion of redeemable non-controlling interest | (1,176) | — | |||||||||||||||||
Net loss attributable to Amneal Pharmaceuticals, Inc. | $ | (20,920 | ) | $ | — |
Three months ended September 30, 2018 | |||||||||
Add: | (Non-GAAP) | ||||||||
Actual | Impax/ Gemini | Combined | |||||||
Net revenue: | |||||||||
Generics | $ | 391,175 | $ | — | $ | 391,175 | |||
Specialty | 85,312 | — | 85,312 | ||||||
Total net revenue | 476,487 | — | 476,487 | ||||||
Cost of goods sold | 276,382 | — | 276,382 | ||||||
Gross profit | 200,105 | — | 200,105 | ||||||
Selling, general and administrative | 78,075 | — | 78,075 | ||||||
Research and development | 42,999 | — | 42,999 | ||||||
In-process research and development impairment charges | 4,401 | — | 4,401 | ||||||
Acquisition, transaction-related and integration expenses | 2,231 | — | 2,231 | ||||||
Restructuring and asset-related charges | (2,156) | — | (2,156 | ) | |||||
Operating income | 74,555 | — | 74,555 | ||||||
Other expense: | |||||||||
Interest expense, net | (43,018) | — | (43,018 | ) | |||||
Foreign exchange loss | (5,137) | — | (5,137 | ) | |||||
Loss on sale of international operations | (2,812) | — | (2,812 | ) | |||||
Other expense | (1,014) | — | (1,014 | ) | |||||
Total other expense, net | (51,981) | — | (51,981) | ||||||
Income before income taxes | 22,574 | — | 22,574 | ||||||
Provision for income taxes | 5,109 | 5,109 | |||||||
Net income | $ | 17,465 | $ | — | $ | 17,465 | |||
Less: Net income attributable to Amneal Pharmaceuticals LLC pre-Combination | — | ||||||||
Less: Net income attributable to non-controlling interests | (10,577) | ||||||||
Accretion of redeemable non-controlling interest | 64 | ||||||||
Net income attributable to Amneal Pharmaceuticals, Inc. | $ | 6,952 |
Generics | Three months ended December 31, 2018 | Three months ended December 31, 2017 | |||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Cost of goods sold | $ | 263,002 | $ | — | $ | 263,002 | $ | 141,953 | $ | 150,762 | $ | 292,715 | |||||||
Adjusted to deduct: | |||||||||||||||||||
Amortization | 10,030 | — | 10,030 | 923 | 13,075 | 13,998 | |||||||||||||
Inventory related charges(7) | 3,620 | — | 3,620 | 3,400 | 6,224 | 9,624 | |||||||||||||
Acquisition and site closure expenses(8) | 12,384 | — | 12,384 | — | — | — | |||||||||||||
Asset impairment charges(9) | 510 | — | 510 | — | 43,961 | 43,961 | |||||||||||||
Stock-based compensation expense | 406 | — | 406 | — | — | — | |||||||||||||
Restructuring and asset-related charges(10) | — | — | — | — | 9,960 | 9,960 | |||||||||||||
Amortization of upfront payment(11) | 10,423 | — | 10,423 | — | — | — | |||||||||||||
Adjusted cost of goods sold (Non-GAAP) | $ | 225,629 | $ | — | $ | 225,629 | $ | 137,630 | $ | 77,542 | $ | 215,172 |
Generics | Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Cost of goods sold | $ | 842,996 | $ | 122,761 | $ | 965,757 | $ | 507,476 | $ | 551,776 | $ | 1,059,252 | |||||||
Adjusted to deduct: | |||||||||||||||||||
Amortization | 23,940 | 13,823 | 37,763 | 3,974 | 53,039 | 57,013 | |||||||||||||
Inventory related charges(7) | 45,615 | 9,894 | 55,509 | 22,682 | 25,740 | 48,422 | |||||||||||||
Acquisition and site closure expenses(8) | 27,619 | — | 27,619 | — | 9,314 | 9,314 | |||||||||||||
Asset impairment charges(9) | 8,401 | 53 | 8,454 | — | 96,864 | 96,864 | |||||||||||||
Stock-based compensation expense | 921 | — | 921 | — | — | — | |||||||||||||
Restructuring and asset-related charges(10) | — | — | — | — | 26,702 | 26,702 | |||||||||||||
Amortization of upfront payment(11) | 10,423 | — | 10,423 | — | — | — | |||||||||||||
Royalty expense | — | — | — | 8,684 | — | 8,684 | |||||||||||||
Adjusted cost of goods sold (Non-GAAP) | $ | 726,077 | $ | 98,991 | $ | 825,068 | $ | 472,136 | $ | 340,117 | $ | 812,253 |
Specialty | Three months ended December 31, 2018 | Three months ended December 31, 2017 | |||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Cost of goods sold | $ | 41,118 | $ | — | $ | 41,118 | $ | — | $ | 23,405 | $ | 23,405 | |||||||
Adjusted to deduct: | |||||||||||||||||||
Amortization | 18,848 | — | 18,848 | — | 3,884 | 3,884 | |||||||||||||
Inventory related charges(7) | 5,697 | — | 5,697 | — | — | — | |||||||||||||
Restructuring and asset-related charges(10) | — | — | — | — | 1,818 | 1,818 | |||||||||||||
Adjusted cost of goods sold (Non-GAAP) | $ | 16,573 | $ | — | $ | 16,573 | $ | — | $ | 17,703 | $ | 17,703 |
Specialty | Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Cost of goods sold | $ | 103,592 | $ | 26,731 | $ | 130,323 | $ | — | $ | 98,650 | $ | 98,650 | |||||||
Adjusted to deduct: | |||||||||||||||||||
Amortization | 49,047 | 6,112 | 55,159 | — | 15,457 | 15,457 | |||||||||||||
Inventory related charges(7) | 8,607 | — | 8,607 | — | — | — | |||||||||||||
Restructuring and asset-related charges(10) | — | — | — | — | 9,081 | 9,081 | |||||||||||||
Adjusted cost of goods sold (Non-GAAP) | $ | 45,938 | $ | 20,619 | $ | 66,557 | $ | — | $ | 74,112 | $ | 74,112 |
Generics | Three months ended December 31, 2018 | Three months ended December 31, 2017 | |||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Operating income (loss) | $ | 43,070 | $ | — | $ | 43,070 | $ | 101,825 | $ | (212,839 | ) | $ | (111,014 | ) | |||||
Adjusted to add (deduct): | |||||||||||||||||||
Acquisition and site closure expenses(8) | 20,905 | — | 20,905 | — | — | — | |||||||||||||
Amortization | 10,030 | — | 10,030 | 923 | 13,075 | 13,998 | |||||||||||||
Inventory related charges(7) | 3,620 | — | 3,620 | 3,400 | 6,224 | 9,624 | |||||||||||||
Stock-based compensation expense | 1,926 | — | 1,926 | — | 829 | 829 | |||||||||||||
Asset impairment charges(9) | 39,119 | 39,119 | — | 236,269 | 236,269 | ||||||||||||||
Restructuring and asset-related charges(10) | 12,031 | — | 12,031 | — | 10,996 | 10,996 | |||||||||||||
Litigation, settlements and related charges | (97 | ) | — | (97 | ) | — | — | — | |||||||||||
Amortization of upfront payment (11) | 10,423 | — | 10,423 | — | — | — | |||||||||||||
R&D milestone payment | 5,300 | — | 5,300 | — | — | — | |||||||||||||
Change in fair value of contingent consideration(12) | — | — | — | — | (38,123 | ) | (38,123 | ) | |||||||||||
Other | 3,839 | — | 3,839 | — | — | — | |||||||||||||
Adjusted operating income (Non-GAAP) | $ | 150,166 | $ | — | $ | 150,166 | $ | 106,148 | $ | 16,431 | $ | 122,579 |
Generics | Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Operating income | $ | 162,901 | $ | (130,640 | ) | $ | 32,261 | $ | 307,502 | $ | (265,094 | ) | $ | 42,408 | |||||
Adjusted to add (deduct): | |||||||||||||||||||
Acquisition and site closure expenses(8) | 150,348 | — | 150,348 | — | 9,314 | 9,314 | |||||||||||||
Amortization | 23,940 | 13,823 | 37,763 | 3,974 | 53,039 | 57,013 | |||||||||||||
Inventory related charges(7) | 45,615 | 9,894 | 55,509 | 22,682 | 26,702 | 49,384 | |||||||||||||
Stock-based compensation expense | 3,348 | — | 3,348 | — | 829 | 829 | |||||||||||||
Asset impairment charges(9) | 47,660 | 53 | 47,713 | — | 298,053 | 298,053 | |||||||||||||
Restructuring and asset-related charges(10) | 33,943 | — | 33,943 | — | 28,911 | 28,911 | |||||||||||||
Litigation, settlements and related charges | (97 | ) | 84,597 | 84,500 | — | — | — | ||||||||||||
Amortization of upfront payment (11) | 10,423 | — | 10,423 | — | — | — | |||||||||||||
Royalty expense | — | — | — | 8,684 | — | 8,684 | |||||||||||||
R&D milestone payment | 8,000 | — | 8,000 | — | — | — | |||||||||||||
Change in fair value of contingent consideration(12) | — | — | — | — | (31,048 | ) | (31,048 | ) | |||||||||||
Other | 3,439 | — | 3,439 | — | 2,535 | 2,535 | |||||||||||||
Adjusted operating income (Non-GAAP) | $ | 489,520 | $ | (22,273 | ) | $ | 467,247 | $ | 342,842 | $ | 123,241 | $ | 466,083 |
Specialty | Three months ended December 31, 2018 | Three months ended December 31, 2017 | |||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Operating income (loss) | $ | 24,010 | $ | — | $ | 24,010 | $ | — | $ | (42,806 | ) | $ | (42,806 | ) | |||||
Adjusted to add: | |||||||||||||||||||
Amortization | 18,848 | — | 18,848 | — | 3,884 | 3,884 | |||||||||||||
Inventory related charges(7) | 5,697 | — | 5,697 | — | — | — | |||||||||||||
Acquisition and site closure expenses(8) | 189 | — | 189 | — | — | — | |||||||||||||
Stock-based compensation expense | 11 | — | 11 | — | 1,971 | 1,971 | |||||||||||||
Asset impairment charges(9) | — | — | — | — | 74,128 | 74,128 | |||||||||||||
Restructuring and asset-related charges(10) | 1,682 | — | 1,682 | — | 1,818 | 1,818 | |||||||||||||
Litigation, settlements and related charges | — | — | — | — | — | — | |||||||||||||
Other | 163 | — | 163 | — | — | — | |||||||||||||
Adjusted operating income (Non-GAAP) | $ | 50,600 | $ | — | $ | 50,600 | $ | — | $ | 38,995 | $ | 38,995 |
Specialty | Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Operating income | $ | 55,560 | $ | 36,945 | $ | 92,505 | $ | — | $ | 146 | $ | 146 | |||||||
Adjusted to add: | |||||||||||||||||||
Amortization | 49,047 | 6,112 | 55,159 | — | 15,457 | 15,457 | |||||||||||||
Inventory related charges(7) | 8,607 | — | 8,607 | — | — | — | |||||||||||||
Acquisition and site closure expenses(8) | 189 | — | 189 | — | — | — | |||||||||||||
Stock-based compensation expense | 11 | — | 11 | — | 1,971 | 1,971 | |||||||||||||
Asset impairment charges(9) | — | — | — | — | 74,128 | 74,128 | |||||||||||||
Restructuring and asset-related charges(10) | 4,076 | — | 4,076 | — | 9,996 | 9,996 | |||||||||||||
Litigation, settlements and related charges | — | 940 | 940 | — | — | — | |||||||||||||
Other | 637 | — | 637 | — | — | — | |||||||||||||
Adjusted operating income (Non-GAAP) | $ | 118,127 | $ | 43,997 | $ | 162,124 | $ | — | $ | 101,698 | $ | 101,698 |
Three months ended December 31, 2018 | Three months ended December 31, 2017 | ||||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Net (loss) income | $ | (20,330 | ) | $ | — | $ | (20,330 | ) | $ | 62,194 | $ | (297,178 | ) | $ | (234,984 | ) | |||
Adjusted to add (deduct): | |||||||||||||||||||
Non-cash interest | 1,640 | — | 1,640 | 690 | 6,660 | 7,350 | |||||||||||||
GAAP Income tax expense (benefit) | 5,524 | — | 5,524 | (119 | ) | (9,010 | ) | (9,129 | ) | ||||||||||
Amortization | 28,878 | — | 28,878 | 923 | 16,959 | 17,882 | |||||||||||||
Stock-based compensation expense | 3,606 | — | 3,606 | — | 6,586 | 6,586 | |||||||||||||
Acquisition and site closure expenses(8) | 28,966 | — | 28,966 | 7,050 | 8,061 | 15,111 | |||||||||||||
Restructuring and asset-related charges(10) | 14,104 | — | 14,104 | 245 | 13,483 | 13,728 | |||||||||||||
Inventory related charges(7) | 9,317 | — | 9,317 | 3,400 | 6,224 | 9,624 | |||||||||||||
Litigation, settlements and related charges | (497 | ) | — | (497 | ) | — | 642 | 642 | |||||||||||
Gain on sale of assets | — | — | — | — | (656 | ) | (656 | ) | |||||||||||
Asset impairment charges(9) | 39,119 | — | 39,119 | — | 310,397 | 310,397 | |||||||||||||
Amortization of upfront payment(11) | 10,423 | — | 10,423 | — | — | — | |||||||||||||
Foreign exchange gain | (2,817 | ) | — | (2,817 | ) | (3,341 | ) | — | (3,341 | ) | |||||||||
Loss on sale of international operations | 146 | — | 146 | 352 | — | 352 | |||||||||||||
R&D milestone payments | 5,300 | — | 5,300 | — | — | — | |||||||||||||
Change in fair value of contingent consideration(12) | — | — | — | — | (38,123 | ) | (38,123 | ) | |||||||||||
Other | 3,412 | — | 3,412 | — | 1,328 | 1,328 | |||||||||||||
Income tax at 21% | (26,626 | ) | — | (26,626 | ) | (14,993 | ) | (5,328 | ) | (20,321 | ) | ||||||||
Net income attributable to NCI not associated with our Class B shares | (189 | ) | — | (189 | ) | — | — | — | |||||||||||
Adjusted net income (Non-GAAP) | $ | 99,976 | $ | — | $ | 99,976 | $ | 56,401 | $ | 20,045 | $ | 76,446 | |||||||
Adjusted diluted EPS (Non-GAAP(13) | $ | 0.33 |
Year ended December 31, 2018 | Year ended December 31, 2017 | ||||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Net (loss) income | $ | (201,303 | ) | $ | (150,155 | ) | $ | (351,458 | ) | $ | 169,325 | $ | (451,693 | ) | $ | (282,368 | ) | ||
Adjusted to add (deduct): | |||||||||||||||||||
Non-cash interest | 5,859 | 9,413 | 15,272 | 4,585 | 25,949 | 30,534 | |||||||||||||
GAAP Income tax (benefit) expense | (1,419 | ) | (6,273 | ) | (7,692 | ) | 1,998 | 18,326 | 20,324 | ||||||||||
Amortization | 72,987 | 19,935 | 92,922 | 3,974 | 68,496 | 72,470 | |||||||||||||
Stock-based compensation expense | 8,840 | 4,816 | 13,656 | — | 26,258 | 26,258 | |||||||||||||
Acquisition and site closure expenses(8) | 264,424 | 9,829 | 274,253 | 9,403 | 20,411 | 29,814 | |||||||||||||
Restructuring and asset-related charges(10) | 56,413 | 5,123 | 61,536 | 245 | 40,248 | 40,493 | |||||||||||||
Loss on extinguishment of debt | 19,667 | — | 19,667 | 2,531 | 1,215 | 3,746 | |||||||||||||
Inventory related charges(7) | 54,222 | 9,894 | 64,116 | 22,682 | 26,702 | 49,384 | |||||||||||||
Litigation, settlements and related charges | 2,092 | 90,099 | 92,191 | — | 8,351 | 8,351 | |||||||||||||
Loss (gain) on sale of assets | 878 | — | 878 | — | (17,236 | ) | (17,236 | ) | |||||||||||
Asset impairment charges(9) | 47,660 | 53 | 47,713 | — | 372,181 | 372,181 | |||||||||||||
Amortization of upfront payment(11) | 10,423 | — | 10,423 | — | — | — | |||||||||||||
Royalty expense | — | — | — | 8,684 | — | 8,684 | |||||||||||||
Foreign exchange loss (gain) | 19,701 | (921 | ) | 18,780 | (29,092 | ) | — | (29,092 | ) | ||||||||||
Loss on sale of international operations | 2,958 | — | 2,958 | 29,232 | — | 29,232 | |||||||||||||
R&D milestone payments | 8,000 | — | 8,000 | — | — | — | |||||||||||||
Change in fair value of contingent consideration(12) | — | — | — | — | (31,048 | ) | (31,048 | ) | |||||||||||
Other | 7,095 | 1,953 | 9,048 | 4,158 | 6,534 | 10,692 | |||||||||||||
Income tax at 21% | (79,484 | ) | 1,309 | (78,175 | ) | (47,822 | ) | (24,086 | ) | (71,908 | ) | ||||||||
Net income attributable to NCI not associated with our Class B shares | (386 | ) | — | (386 | ) | — | — | — | |||||||||||
Adjusted net income (Non-GAAP) | $ | 298,627 | $ | (4,925 | ) | $ | 293,702 | $ | 179,903 | $ | 90,608 | $ | 270,511 | ||||||
Adjusted diluted EPS (Non-GAAP(14) | $ | 0.98 |
Three months ended September 30, 2018 | |||||||||
Add: | (Non-GAAP) | ||||||||
Actual | Impax/ Gemini | Combined | |||||||
Net income | $ | 17,465 | $ | — | $ | 17,465 | |||
Adjusted to add (deduct): | |||||||||
Non-cash interest | 1,452 | — | 1,452 | ||||||
GAAP Income tax expense | 5,109 | — | 5,109 | ||||||
Amortization | 25,655 | — | 25,655 | ||||||
Stock-based compensation expense | 3,590 | — | 3,590 | ||||||
Acquisition and site closure expenses(8) | 12,430 | — | 12,430 | ||||||
Restructuring and asset-related charges(10) | (2,156 | ) | — | (2,156 | ) | ||||
Inventory related charges(7) | 17,422 | — | 17,422 | ||||||
Litigation, settlements and related charges | 2,589 | — | 2,589 | ||||||
Asset impairment charges(9) | 8,541 | — | 8,541 | ||||||
Foreign exchange loss | 5,137 | — | 5,137 | ||||||
Loss on sale of international operations | 2,812 | — | 2,812 | ||||||
Other | 3,947 | — | 3,947 | ||||||
Income tax at 21% | (21,839 | ) | — | (21,839 | ) | ||||
Net income attributable to NCI not associated with our Class B shares | (53 | ) | — | (53 | ) | ||||
Adjusted net income (Non-GAAP) | $ | 82,101 | $ | — | $ | 82,101 | |||
Adjusted diluted EPS (Non-GAAP)(15) | $ | 0.27 |
Three months ended December 31, 2018 | Three months ended December 31, 2017 | ||||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Net (loss) income | $ | (20,330 | ) | $ | — | $ | (20,330 | ) | $ | 62,194 | $ | (297,178 | ) | $ | (234,984 | ) | |||
Adjusted to add (deduct): | |||||||||||||||||||
Interest expense, net | 42,880 | — | 42,880 | 19,956 | 13,672 | 33,628 | |||||||||||||
Income tax expense (benefit) | 5,524 | — | 5,524 | (119 | ) | (9,010 | ) | (9,129 | ) | ||||||||||
Depreciation and amortization | 47,494 | — | 47,494 | 12,842 | 21,620 | 34,462 | |||||||||||||
EBITDA (Non-GAAP) | $ | 75,568 | $ | — | $ | 75,568 | $ | 94,873 | $ | (270,896 | ) | $ | (176,023 | ) | |||||
Adjusted to add (deduct): | |||||||||||||||||||
Stock-based compensation expense | $ | 3,606 | $ | — | $ | 3,606 | $ | — | $ | 6,586 | $ | 6,586 | |||||||
Acquisition and site closure expenses(8) | 28,966 | — | 28,966 | 7,050 | 8,061 | 15,111 | |||||||||||||
Restructuring and asset-related charges(10) | 14,104 | — | 14,104 | 245 | 13,483 | 13,728 | |||||||||||||
Inventory related charges(7) | 9,317 | — | 9,317 | 3,400 | 6,224 | 9,624 | |||||||||||||
Litigation, settlements and related charges | (497 | ) | — | (497 | ) | — | 642 | 642 | |||||||||||
Gain on sale of assets | — | — | — | — | (656 | ) | (656 | ) | |||||||||||
Asset impairment charges(9) | 39,119 | — | 39,119 | — | 310,397 | 310,397 | |||||||||||||
Amortization of upfront payment(11) | 10,423 | — | 10,423 | — | — | — | |||||||||||||
Foreign exchange gain | (2,817 | ) | — | (2,817 | ) | (3,341 | ) | — | (3,341 | ) | |||||||||
Loss on sale of international operations | 146 | — | 146 | 352 | — | 352 | |||||||||||||
R&D milestone payments | 5,300 | — | 5,300 | — | — | — | |||||||||||||
Change in fair value of contingent consideration(12) | — | — | — | — | (38,123 | ) | (38,123 | ) | |||||||||||
Other | 3,412 | — | 3,412 | — | 1,328 | 1,328 | |||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 186,647 | $ | — | $ | 186,647 | $ | 102,579 | $ | 37,046 | $ | 139,625 |
Year ended December 31, 2018 | Year ended December 31, 2017 | ||||||||||||||||||
Add: | (Non-GAAP) | Add: | (Non-GAAP) | ||||||||||||||||
Actual | Impax/ Gemini | Combined | Actual | Impax/ Gemini | Combined | ||||||||||||||
Net (loss) income | $ | (201,303 | ) | $ | (150,155 | ) | $ | (351,458 | ) | $ | 169,325 | $ | (451,693 | ) | $ | (282,368 | ) | ||
Adjusted to add (deduct): | |||||||||||||||||||
Interest expense, net | 143,571 | 18,231 | 161,802 | 71,061 | 53,412 | 124,473 | |||||||||||||
Income tax expense (benefit) | (1,419 | ) | (6,273 | ) | (7,692 | ) | 1,998 | 18,326 | 20,324 | ||||||||||
Depreciation and amortization | 137,403 | 24,902 | 162,305 | 45,936 | 93,854 | 139,790 | |||||||||||||
EBITDA (Non-GAAP) | $ | 78,252 | $ | (113,295 | ) | $ | (35,043 | ) | $ | 288,320 | $ | (286,101 | ) | $ | 2,219 | ||||
Adjusted to add (deduct): | |||||||||||||||||||
Stock-based compensation expense | $ | 8,840 | $ | 4,816 | $ | 13,656 | $ | — | $ | 26,258 | $ | 26,258 | |||||||
Acquisition and site closure expenses(8) | 264,424 | 9,829 | 274,253 | 9,403 | 20,411 | 29,814 | |||||||||||||
Restructuring and asset-related charges(10) | 56,413 | 5,123 | 61,536 | 245 | 40,248 | 40,493 | |||||||||||||
Loss on extinguishment of debt | 19,667 | — | 19,667 | 2,531 | 1,215 | 3,746 | |||||||||||||
Inventory related charges(7) | 54,222 | 9,894 | 64,116 | 22,682 | 26,702 | 49,384 | |||||||||||||
Litigation, settlements and related charges | 2,092 | 90,099 | 92,191 | — | 8,351 | 8,351 | |||||||||||||
Loss (gain) on sale of assets | 878 | — | 878 | — | (17,236 | ) | (17,236 | ) | |||||||||||
Asset impairment charges(9) | 47,660 | 53 | 47,713 | — | 372,181 | 372,181 | |||||||||||||
Amortization of upfront payment(11) | 10,423 | — | 10,423 | — | — | — | |||||||||||||
Royalty expense | — | — | — | 8,684 | — | 8,684 | |||||||||||||
Foreign exchange loss (gain) | 19,701 | (921 | ) | 18,780 | (29,092 | ) | — | (29,092 | ) | ||||||||||
Loss on sale of international operations | 2,958 | — | 2,958 | 29,232 | — | 29,232 | |||||||||||||
R&D milestone payments | 8,000 | — | 8,000 | — | — | — | |||||||||||||
Change in fair value of contingent consideration(12) | — | — | — | — | (31,048 | ) | (31,048 | ) | |||||||||||
Other | 4,285 | 867 | 5,152 | 4,158 | 6,534 | 10,692 | |||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 577,815 | $ | 6,465 | $ | 584,280 | $ | 336,163 | $ | 167,515 | $ | 503,678 |
Three months ended September 30, 2018 | |||||||||
Add: | (Non-GAAP) | ||||||||
Actual | Impax/ Gemini | Combined | |||||||
Net income | $ | 17,465 | $ | — | $ | 17,465 | |||
Adjusted to add (deduct): | |||||||||
Interest expense, net | 43,018 | — | 43,018 | ||||||
Income tax expense | 5,109 | — | 5,109 | ||||||
Depreciation and amortization | 43,013 | — | 43,013 | ||||||
EBITDA (Non-GAAP) | $ | 108,605 | $ | — | $ | 108,605 | |||
Adjusted to add (deduct): | |||||||||
Stock-based compensation expense | $ | 3,590 | $ | — | 3,590 | ||||
Acquisition and site closure expenses(8) | 12,430 | — | 12,430 | ||||||
Restructuring and asset-related charges(10) | (2,156 | ) | — | (2,156 | ) | ||||
Inventory related charges(7) | 17,422 | — | 17,422 | ||||||
Litigation, settlements and related charges | 2,589 | — | 2,589 | ||||||
Asset impairment charges(9) | 8,541 | — | 8,541 | ||||||
Foreign exchange loss | 5,137 | — | 5,137 | ||||||
Loss on sale of international operations | 2,812 | — | 2,812 | ||||||
Other | 3,947 | — | 3,947 | ||||||
Adjusted EBITDA (Non-GAAP) | $ | 162,917 | $ | — | $ | 162,917 |
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