(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Item 2.02 | Results of Operations and Financial Condition. |
Item 7.01 | Regulation FD Disclosure. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description | |||||||
104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. |
Date: | AMNEAL PHARMACEUTICALS, INC. | ||||||||||
By: | /s/ Anastasios Konidaris | ||||||||||
Name: | Anastasios Konidaris | ||||||||||
Title: | Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
Full Year 2022 Guidance | |||||
Net revenue | $2.15 billion - $2.25 billion | ||||
Adjusted EBITDA (1) | $540 million - $560 million | ||||
Adjusted diluted EPS (2) | $0.80 - $0.85 | ||||
Operating cash flow (3) | $225 million - $250 million | ||||
Capital expenditures | $75 million - $85 million | ||||
Weighted average diluted shares outstanding (4) | Approximately 307 million |
Three Months Ended December 31, 2021 | Year Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net revenue | $ | 536,896 | $ | 510,034 | $ | 2,093,669 | $ | 1,992,523 | |||||||||||||||
Cost of goods sold | 348,490 | 342,962 | 1,302,004 | 1,329,551 | |||||||||||||||||||
Cost of goods sold impairment charges | 22,004 | — | 22,692 | 34,579 | |||||||||||||||||||
Gross profit | 166,402 | 167,072 | 768,973 | 628,393 | |||||||||||||||||||
Selling, general and administrative | 97,224 | 84,687 | 365,504 | 326,727 | |||||||||||||||||||
Research and development | 51,874 | 53,460 | 201,847 | 179,930 | |||||||||||||||||||
In-process research and development impairment charges | — | 1,720 | 710 | 2,680 | |||||||||||||||||||
Intellectual property legal development expenses | 1,142 | 3,701 | 7,716 | 10,655 | |||||||||||||||||||
Acquisition, transaction-related and integration expenses | 836 | 3,585 | 8,055 | 8,988 | |||||||||||||||||||
Charges related to legal matters, net | 6,000 | — | 25,000 | 5,860 | |||||||||||||||||||
Restructuring and other charges (credit) | 1,069 | (259) | 1,857 | 2,398 | |||||||||||||||||||
Change in fair value of contingent consideration | (100) | — | 200 | — | |||||||||||||||||||
Property losses and associated expenses, net | (2,818) | — | 5,368 | — | |||||||||||||||||||
Operating income | 11,175 | 20,178 | 152,716 | 91,155 | |||||||||||||||||||
Other (expense) income: | |||||||||||||||||||||||
Interest expense, net | (33,957) | (34,535) | (136,325) | (145,998) | |||||||||||||||||||
Foreign exchange (loss) gain, net | (170) | 8,392 | (355) | 16,350 | |||||||||||||||||||
Gain on sale of international businesses, net | — | — | — | 123 | |||||||||||||||||||
Other income, net | 6,633 | 488 | 15,330 | 2,590 | |||||||||||||||||||
Total other expense, net | (27,494) | (25,655) | (121,350) | (126,935) | |||||||||||||||||||
(Loss) income before income taxes | (16,319) | (5,477) | 31,366 | (35,780) | |||||||||||||||||||
Provision for (benefit from) income taxes | 4,140 | 1,485 | 11,196 | (104,358) | |||||||||||||||||||
Net (loss) income | (20,459) | (6,962) | 20,170 | 68,578 | |||||||||||||||||||
Less: Net loss (income) attributable to non-controlling interests | 14,082 | 3,925 | (9,546) | 22,481 | |||||||||||||||||||
Net (loss) income attributable to Amneal Pharmaceuticals, Inc. | $ | (6,377) | $ | (3,037) | $ | 10,624 | $ | 91,059 | |||||||||||||||
Net (loss) income per share attributable to Amneal Pharmaceuticals, Inc.'s Class A common stockholders: | |||||||||||||||||||||||
Basic | $ | (0.04) | $ | (0.02) | $ | 0.07 | $ | 0.62 | |||||||||||||||
Diluted | $ | (0.04) | $ | (0.02) | $ | 0.07 | $ | 0.61 | |||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||||
Basic | 149,369 | 147,640 | 148,922 | 147,443 | |||||||||||||||||||
Diluted | 149,369 | 147,640 | 151,821 | 148,913 |
December 31, 2021 | December 31, 2020 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 247,790 | $ | 341,378 | |||||||
Restricted cash | 8,949 | 5,743 | |||||||||
Trade accounts receivable, net | 662,583 | 638,895 | |||||||||
Inventories | 489,389 | 490,649 | |||||||||
Prepaid expenses and other current assets | 110,218 | 73,467 | |||||||||
Related party receivables | 1,179 | 1,407 | |||||||||
Total current assets | 1,520,108 | 1,551,539 | |||||||||
Property, plant and equipment, net | 514,158 | 477,754 | |||||||||
Goodwill | 593,017 | 522,814 | |||||||||
Intangible assets, net | 1,166,922 | 1,304,626 | |||||||||
Operating lease right-of-use assets | 39,899 | 33,947 | |||||||||
Operating lease right-of-use assets - related party | 20,471 | 24,792 | |||||||||
Financing lease right-of-use assets | 64,475 | 9,541 | |||||||||
Financing lease right-of-use assets - related party | — | 58,676 | |||||||||
Other assets | 20,614 | 22,344 | |||||||||
Total assets | $ | 3,939,664 | $ | 4,006,033 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | 583,345 | $ | 611,867 | |||||||
Current portion of long-term debt, net | 30,614 | 44,228 | |||||||||
Current portion of operating lease liabilities | 9,686 | 6,474 | |||||||||
Current portion of operating and financing lease liabilities - related party | 2,636 | 3,978 | |||||||||
Current portion of financing lease liabilities | 3,101 | 1,794 | |||||||||
Current portion of note payable - related party | — | 1,000 | |||||||||
Related party payable - short term | 47,861 | 7,561 | |||||||||
Total current liabilities | 677,243 | 676,902 | |||||||||
Long-term debt, net | 2,680,053 | 2,735,264 | |||||||||
Note payable - related party | 38,038 | 36,440 | |||||||||
Operating lease liabilities | 32,894 | 30,182 | |||||||||
Operating lease liabilities - related party | 18,783 | 23,049 | |||||||||
Financing lease liabilities | 60,251 | 2,318 | |||||||||
Financing lease liabilities - related party | — | 60,193 | |||||||||
Related party payable - long term | 9,619 | 1,584 | |||||||||
Other long-term liabilities | 38,903 | 83,365 | |||||||||
Total long-term liabilities | 2,878,541 | 2,972,395 | |||||||||
Redeemable non-controlling interests | 16,907 | 11,804 | |||||||||
Total stockholders' equity | 366,973 | 344,932 | |||||||||
Total liabilities and stockholders' equity | $ | 3,939,664 | $ | 4,006,033 |
Year Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 20,170 | $ | 68,578 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 233,406 | 235,387 | |||||||||
Unrealized foreign currency loss (gain) | 175 | (16,728) | |||||||||
Amortization of debt issuance costs | 9,203 | 8,678 | |||||||||
Gain on sale of international businesses, net | — | (123) | |||||||||
Intangible asset impairment charges | 23,402 | 37,259 | |||||||||
Non-cash restructuring and asset-related (benefit) charges | — | (536) | |||||||||
Change in fair value of contingent consideration | 200 | — | |||||||||
Stock-based compensation | 28,412 | 20,750 | |||||||||
Inventory provision | 54,660 | 75,236 | |||||||||
Insurance recoveries for property and equipment losses | (5,000) | — | |||||||||
Non-cash property and equipment losses | 5,152 | — | |||||||||
Other operating charges and credits, net | 5,633 | 11,818 | |||||||||
Changes in assets and liabilities: | |||||||||||
Trade accounts receivable, net | (23,621) | 16,787 | |||||||||
Inventories | (49,015) | (113,782) | |||||||||
Prepaid expenses, other current assets and other assets | (21,981) | 33,312 | |||||||||
Related party receivables | 7,311 | 412 | |||||||||
Accounts payable, accrued expenses and other liabilities | (43,932) | 307 | |||||||||
Related party payables | (2,355) | 1,646 | |||||||||
Net cash provided by operating activities | 241,820 | 379,001 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property, plant and equipment | (47,728) | (56,445) | |||||||||
Acquisition of product rights and licenses | (1,700) | (4,350) | |||||||||
Deposits for future acquisition of property, plant, and equipment | (3,211) | (5,391) | |||||||||
Acquisitions, net of cash acquired | (146,543) | (251,360) | |||||||||
Proceeds from insurance recoverable related to property loss | 5,000 | — | |||||||||
Net cash used in investing activities | (194,182) | (317,546) | |||||||||
Cash flows from financing activities: | |||||||||||
Payments of deferred financing costs and debt extinguishment costs | — | (4,102) | |||||||||
Proceeds from issuance of debt | — | 180,000 | |||||||||
Payments of principal on debt, financing leases and other | (78,086) | (35,933) | |||||||||
Proceeds from exercise of stock options | 853 | 321 | |||||||||
Employee payroll tax withholding on restricted stock unit vesting | (2,664) | (863) | |||||||||
Distribution of earnings to and acquisition of non-controlling interests | — | (3,300) | |||||||||
Tax distributions to non-controlling interests | (57,132) | (3,237) | |||||||||
Payments of principal on financing lease - related party | (93) | (1,079) | |||||||||
Repayment of related party note | (1,000) | — | |||||||||
Net cash (used in) provided by financing activities | (138,122) | 131,807 | |||||||||
Effect of foreign exchange rate on cash | 102 | 1,037 | |||||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (90,382) | 194,299 | |||||||||
Cash, cash equivalents, and restricted cash - beginning of period | 347,121 | 152,822 | |||||||||
Cash, cash equivalents, and restricted cash - end of period | $ | 256,739 | $ | 347,121 | |||||||
Cash and cash equivalents - end of period | $ | 247,790 | $ | 341,378 | |||||||
Restricted cash - end of period | $ | 8,949 | $ | 5,743 | |||||||
Cash, cash equivalents, and restricted cash - end of period | $ | 256,739 | $ | 347,121 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net (loss) income | $ | (20,459) | $ | (6,962) | $ | 20,170 | $ | 68,578 | |||||||||||||||
Adjusted to add (deduct): | |||||||||||||||||||||||
Interest expense, net | 33,957 | 34,535 | 136,325 | 145,998 | |||||||||||||||||||
Income tax benefit | 4,140 | 1,485 | 11,196 | (104,358) | |||||||||||||||||||
Depreciation and amortization | 61,183 | 59,873 | 233,406 | 235,387 | |||||||||||||||||||
EBITDA (Non-GAAP) | $ | 78,821 | $ | 88,931 | $ | 401,097 | $ | 345,605 | |||||||||||||||
Adjusted to add (deduct): | |||||||||||||||||||||||
Stock-based compensation expense | 7,742 | 5,133 | 28,412 | 20,750 | |||||||||||||||||||
Acquisition, site closure, and idle facility expenses (1) | 6,027 | 6,777 | 20,003 | 23,384 | |||||||||||||||||||
Restructuring and other (credit) charges (2) | — | (259) | 788 | 2,398 | |||||||||||||||||||
Inventory related charges (3) | 16 | 395 | 261 | 6,574 | |||||||||||||||||||
Charges related to legal matters (4) | 6,000 | — | 25,000 | 5,610 | |||||||||||||||||||
Asset impairment charges (5) | 22,353 | 5,505 | 24,105 | 43,629 | |||||||||||||||||||
Foreign exchange (gain) loss | 170 | (8,392) | 355 | (16,350) | |||||||||||||||||||
Gain on sale of international businesses, net | — | — | — | (123) | |||||||||||||||||||
Research & development milestone payments | 4,566 | 7,626 | 25,795 | 22,771 | |||||||||||||||||||
Change in fair value of contingent consideration (6) | (100) | — | 200 | — | |||||||||||||||||||
Property losses and related expenses, net (7) | (2,818) | — | 5,368 | — | |||||||||||||||||||
Other | 3,592 | 1,696 | 6,680 | 1,926 | |||||||||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 126,369 | $ | 107,412 | $ | 538,064 | $ | 456,174 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net (loss) income | $ | (20,459) | $ | (6,962) | $ | 20,170 | $ | 68,578 | |||||||||||||||
Adjusted to add (deduct): | |||||||||||||||||||||||
Non-cash interest | 2,123 | 2,015 | 8,355 | 7,900 | |||||||||||||||||||
GAAP income tax (benefit) expense | 4,140 | 1,485 | 11,196 | (104,358) | |||||||||||||||||||
Amortization | 41,543 | 40,833 | 164,069 | 163,842 | |||||||||||||||||||
Stock-based compensation expense | 7,742 | 5,133 | 28,412 | 20,750 | |||||||||||||||||||
Acquisition, site closure, and idle facility expenses (1) | 6,027 | 6,777 | 20,003 | 23,384 | |||||||||||||||||||
Restructuring and other (credit) charges (2) | — | (259) | 788 | 2,398 | |||||||||||||||||||
Inventory related charges (3) | 16 | 395 | 261 | 6,574 | |||||||||||||||||||
Charges related to legal matters (4) | 6,000 | — | 25,000 | 5,610 | |||||||||||||||||||
Asset impairment charges (5) | 22,353 | 5,505 | 24,105 | 43,629 | |||||||||||||||||||
Foreign exchange loss (8) | — | (8,392) | — | (16,350) | |||||||||||||||||||
Gain on sale of international businesses, net | — | — | — | (123) | |||||||||||||||||||
Research & development milestone payments | 4,566 | 7,626 | 25,795 | 22,771 | |||||||||||||||||||
Change in fair value of contingent consideration (6) | (100) | — | 200 | — | |||||||||||||||||||
Property losses and related expenses, net (7) | (2,818) | — | 5,368 | — | |||||||||||||||||||
Other | 3,592 | 1,696 | 6,680 | 1,926 | |||||||||||||||||||
Income tax (9) | (19,313) | (12,411) | (75,777) | (54,271) | |||||||||||||||||||
Net income attributable to non-controlling interests not associated with our Class B shares | (1,191) | (89) | (6,582) | (1,240) | |||||||||||||||||||
Adjusted net income (Non-GAAP) | $ | 54,221 | $ | 43,352 | $ | 258,043 | $ | 191,020 | |||||||||||||||
Adjusted diluted earnings per share (Non-GAAP) (10) | $ | 0.18 | $ | 0.14 | $ | 0.85 | $ | 0.63 |
(1) | Acquisition, site closure, and idle facility expenses for the three months and year ended December 31, 2021 primarily included (i) transaction and integration costs associated with the acquisition of Kashiv Specialty Pharmaceuticals, LLC (“KSP”); (ii) integration costs associated with the acquisition of AvKARE; (iii) site closure costs associated with the planned cessation of manufacturing at our Hauppauge, NY facility; (iv) transaction and integration costs associated with the acquisition of Puniska Healthcare Pvt. Ltd. Acquisition and (v.) site closure expenses associated with damage from Tropical Storm Ida to two of our facilities in New Jersey. Acquisition, site closure, and idle facility expenses for the three months and year ended December 31, 2020 primarily included (i) system integration costs associated with the acquisition of Impax Laboratories, LLC, (ii) integration activities associated with the acquisition of AvKARE; (iii) expenses associated with the then pending acquisition of KSP; and (iv.) plant closure and redundant employee costs related to the planned cessation of manufacturing at our Hauppauge, NY facility. | |||||||||||||
(2) | For the three months ended December 31, 2020, restructuring and other (credit) charges consisted of a change in estimate to reduce the amount accrued for the cost of benefits provided pursuant to our severance programs for employees impacted at our Hauppauge, NY facility. For the year ended December 31, 2021, restructuring and other charges primarily consisted of cash severance charges associated with cost of benefits for former senior executives and management employees. For the year ended December 31, 2020, restructuring and other charges (credit) primarily consisted of the cost of benefits provided pursuant to our severance programs for former senior executives and management employees, net of an asset-related credit associated with the contractual cancellation of an asset retirement obligation related to a lease in Hayward, CA. | |||||||||||||
(3) | For the three months and year ended December 31, 2021 and 2020, inventory related charges represented inventory obsolescence and related expenses associated with recalls. | |||||||||||||
(4) | For the three months and year ended December 31, 2021, charges related to legal matters of $6 million and $25 million, respectively, were for legal claims in our Corporate segment. For the year ended December 31, 2020, charges related to legal matters of $6 million were for commercial legal claims in our Generics segment. | |||||||||||||
(5) | Asset impairment charges for the three months and year ended December 31, 2021 and 2020 were primarily associated with the write-off of intangible assets and equipment, except for equipment discussed in (7) below. | |||||||||||||
(6) | Contingent consideration was recorded in connection with the acquisition of Kashiv Specialty Pharmaceuticals, LLC. | |||||||||||||
(7) | Property losses and associated expenses, net for the three months and year ended December 31, 2021 were associated with damage from Tropical Storm Ida to two of our facilities in New Jersey, net of insurance recoveries. Expenses consisted of impairment of equipment and inventory, and repairs and maintenance and salaries and benefits. | |||||||||||||
(8) | Effective January 1, 2021, the Company does not exclude foreign currency gains or losses from the calculations of adjusted net income and adjusted diluted EPS. | |||||||||||||
(9) | The Non-GAAP effective tax rates for the three months ended December 31, 2021 and 2020 were 26.3% and 22.3%, respectively. The Non-GAAP tax rates for the years ended December 31, 2021 and 2020 were 22.7% and 22.1%, respectively. | |||||||||||||
(10) | For the three months and year ended December 31, 2021, the calculation of adjusted diluted EPS utilized weighted average diluted shares outstanding of 304.4 million and 303.9 million, respectively, which consisted of Class A common stock and Class B common stock under the if-converted method. For the three months and year ended December 31, 2020, the calculation of adjusted diluted EPS utilized weighted average diluted shares outstanding of 301.9 million and 301.0 million, respectively, which consisted of Class A common stock and Class B common stock under the if-converted method. |
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||
As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | |||||||||||||||||||||||||||||||||
Net revenue | $ | 346,266 | $ | — | $ | 346,266 | $ | 342,145 | $ | — | $ | 342,145 | ||||||||||||||||||||||||||
Cost of goods sold (2) | 227,446 | (16,558) | 210,888 | 227,581 | (14,861) | 212,720 | ||||||||||||||||||||||||||||||||
Cost of goods sold impairment charges (3) | 22,004 | (22,004) | — | — | — | — | ||||||||||||||||||||||||||||||||
Gross profit | 96,816 | 38,562 | 135,378 | 114,564 | 14,861 | 129,425 | ||||||||||||||||||||||||||||||||
Gross margin % | 28.0 | % | 39.1 | % | 33.5 | % | 37.8 | % | ||||||||||||||||||||||||||||||
Selling, general and administrative (4) | 18,000 | (861) | 17,139 | 13,556 | (1,077) | 12,479 | ||||||||||||||||||||||||||||||||
Research and development (5) | 43,818 | (4,595) | 39,223 | 41,486 | (7,074) | 34,412 | ||||||||||||||||||||||||||||||||
In-process research and development impairment charges (3) | — | — | — | 1,720 | (1,720) | — | ||||||||||||||||||||||||||||||||
Intellectual property legal development expenses | 1,056 | — | 1,056 | 3,700 | — | 3,700 | ||||||||||||||||||||||||||||||||
Property losses and associated expenses (6) | (2,818) | 2,818 | — | — | — | — | ||||||||||||||||||||||||||||||||
Acquisition, transaction-related and integration expenses | — | — | — | 3 | (3) | — | ||||||||||||||||||||||||||||||||
Restructuring and other (credit) charges | — | — | — | (456) | 456 | — | ||||||||||||||||||||||||||||||||
Operating income | $ | 36,760 | $ | 41,200 | $ | 77,960 | $ | 54,555 | $ | 24,279 | $ | 78,834 |
(1) | Operating results for the sale of Amneal products by AvKARE were included in our Generics segment. | |||||||||||||
(2) | Adjustments for the three months ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($1.4 million and $1.0 million), amortization expense ($10.0 million and $10.1 million), site closure and idle facility expenses ($4.8 million and $2.7 million), inventory related charges (immaterial and $0.4 million), asset impairment charges ($0.4 million and none), and other (none and $0.7 million). For the three months ended December 31, 2021 and 2020, site closure expenses were primarily associated with the planned cessation of manufacturing at our Hauppauge, NY facility. For the three months ended December 31, 2020, asset impairment charges were associated with the write-off of equipment. | |||||||||||||
(3) | Adjustments for the three months ended December 31, 2020 were associated with intangible asset impairments. | |||||||||||||
(4) | Adjustments for the three months ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($0.5 million and $0.3 million), site closure costs ($0.4 million and $0.5 million), and asset impairment charges (none and $0.3 million). | |||||||||||||
(5) | Adjustments for the three months ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($1.0 million and $0.8 million), research and development milestones ($3.6 million and $2.6 million), asset impairment charges (none and $3.5 million), and other (none and $0.2 million). | |||||||||||||
(6) | Adjustments for the three months December 31, 2021 were comprised of expenses associated with damage from Tropical Storm Ida to two of our facilities in New Jersey of $2.2 million, net of insurance recoveries of $5 million. Expenses consisted of impairment of equipment and inventory, and repairs and maintenance and salaries and benefits. | |||||||||||||
Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||
As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | |||||||||||||||||||||||||||||||||
Net revenue | $ | 1,366,338 | $ | — | $ | 1,366,338 | $ | 1,343,210 | $ | — | $ | 1,343,210 | ||||||||||||||||||||||||||
Cost of goods sold (2) | 825,568 | (55,263) | 770,305 | 894,422 | (65,230) | 829,192 | ||||||||||||||||||||||||||||||||
Cost of goods sold impairment charges (3) | 22,692 | (22,692) | — | 34,579 | (34,579) | — | ||||||||||||||||||||||||||||||||
Gross profit | 518,078 | 77,955 | 596,033 | 414,209 | 99,809 | 514,018 | ||||||||||||||||||||||||||||||||
Gross margin % | 37.9 | % | 43.6 | % | 30.8 | % | 38.3 | % | ||||||||||||||||||||||||||||||
Selling, general and administrative (4) | 64,500 | (2,664) | 61,836 | 56,134 | (5,299) | 50,835 | ||||||||||||||||||||||||||||||||
Research and development (5) | 158,365 | (19,626) | 138,739 | 150,068 | (23,137) | 126,931 | ||||||||||||||||||||||||||||||||
In-process research and development impairment charges (3) | 710 | (710) | — | 2,680 | (2,680) | — | ||||||||||||||||||||||||||||||||
Intellectual property legal development expenses | 7,562 | — | 7,562 | 10,647 | — | 10,647 | ||||||||||||||||||||||||||||||||
Property losses and associated expenses (6) | 5,368 | (5,368) | — | — | — | — | ||||||||||||||||||||||||||||||||
Acquisition, transaction-related and integration expenses | — | — | — | 328 | (328) | — | ||||||||||||||||||||||||||||||||
Charges related to legal matters, net (7) | — | — | — | 5,610 | (5,610) | — | ||||||||||||||||||||||||||||||||
Restructuring and other charges (credit) | 80 | (80) | — | (614) | 614 | — | ||||||||||||||||||||||||||||||||
Operating income | $ | 281,493 | $ | 106,403 | $ | 387,896 | $ | 189,356 | $ | 136,249 | $ | 325,605 |
(1) | Operating results for the sale of Amneal products by AvKARE were included in our Generics segment. | |||||||||||||
(2) | Adjustments for the years ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($4.7 million and $4.2 million), amortization expense ($38.0 million and $41.9 million), site closure and idle facility expenses ($11.0 million and $10.6 million), inventory related charges ($0.2 million and $5.5 million), asset impairment charges ($0.7 million and $1.2 million), and other ($0.7 million and $1.8 million). For the years ended December 31, 2021 and 2020, site closure and idle facility expenses were primarily associated with the planned cessation of manufacturing at our Hauppauge, NY facility. For the years ended December 31, 2021 and 2020, asset impairment charges were associated with the write-off of equipment. | |||||||||||||
(3) | Adjustments for the years ended December 31, 2021 and 2020 were associated with intangible asset impairments. | |||||||||||||
(4) | Adjustments for the years ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($1.7 million, and $1.3 million), site closure costs ($0.9 million and $3.9 million), inventory related charges (none and $0.6 million), asset impairment charges (immaterial and $0.7 million), and other ($0.1 million and $(1.2) million). | |||||||||||||
(5) | Adjustments for the years ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($3.9 million and $2.6 million), research and development milestones ($15.4 million and $15.8 million), asset impairment expense (none and $3.8 million), and other ($0.3 million and $0.9 million). | |||||||||||||
(6) | Adjustments for the year ended December 31, 2021 were comprised of expenses associated with damage from Tropical Storm Ida to two of our facilities in New Jersey of $10.4 million, net of insurance recoveries of $5 million. Expenses consisted of impairment of equipment and inventory, and repairs and maintenance and salaries and benefits. | |||||||||||||
(7) | Adjustments for the year ended December 31, 2020 were associated with a commercial legal claim. |
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||
As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
Net revenue | $ | 101,008 | $ | — | $ | 101,008 | $ | 85,466 | $ | — | $ | 85,466 | |||||||||||||||||||||||
Cost of goods sold (1) | 49,378 | (27,483) | 21,895 | 47,128 | (25,127) | 22,001 | |||||||||||||||||||||||||||||
Gross profit | 51,630 | 27,483 | 79,113 | 38,338 | 25,127 | 63,465 | |||||||||||||||||||||||||||||
Gross margin % | 51.1 | % | 78.3 | % | 44.9 | % | 74.3 | % | |||||||||||||||||||||||||||
Selling, general and administrative (2) | 21,733 | (749) | 20,984 | 18,924 | (516) | 18,408 | |||||||||||||||||||||||||||||
Research and development (3) | 8,056 | (1,300) | 6,756 | 11,974 | (5,127) | 6,847 | |||||||||||||||||||||||||||||
Intellectual property legal development expenses | 86 | — | 86 | 1 | — | 1 | |||||||||||||||||||||||||||||
Change in fair value of contingent consideration(4) | (100) | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Acquisition, transaction-related and integration expenses | — | — | — | 2 | (2) | — | |||||||||||||||||||||||||||||
Operating income | $ | 21,855 | $ | 29,432 | $ | 51,287 | $ | 7,437 | $ | 30,772 | $ | 38,209 |
(1) | Adjustments for the three months ended December 31, 2021 and 2020 were comprised of amortization expense. | |||||||||||||
(2) | Adjustments for the three months ended December 31, 2021 and 2020 were primarily comprised of stock-based compensation expense. | |||||||||||||
(3) | Adjustments for the three months ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($0.3 million and $0.1 million) and research and development milestones ($1.0 million and $5.0 million). | |||||||||||||
(4) | Contingent consideration was recorded in connection with the acquisition of Kashiv Specialty Pharmaceuticals, LLC. |
Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||
As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
Net revenue | $ | 378,319 | $ | — | $ | 378,319 | $ | 355,567 | $ | — | $ | 355,567 | |||||||||||||||||||||||
Cost of goods sold (1) | 193,562 | (109,979) | 83,583 | 192,910 | (101,144) | 91,766 | |||||||||||||||||||||||||||||
Gross profit | 184,757 | 109,979 | 294,736 | 162,657 | 101,144 | 263,801 | |||||||||||||||||||||||||||||
Gross margin % | 48.8 | % | 77.9 | % | 45.7 | % | 74.2 | % | |||||||||||||||||||||||||||
Selling, general and administrative (2) | 84,481 | (2,830) | 81,651 | 75,917 | (3,475) | 72,442 | |||||||||||||||||||||||||||||
Research and development (3) | 43,482 | (11,521) | 31,961 | 29,862 | (7,621) | 22,241 | |||||||||||||||||||||||||||||
Intellectual property legal development expenses | 154 | — | 154 | 8 | — | 8 | |||||||||||||||||||||||||||||
Change in fair value of contingent consideration(4) | 200 | (200) | — | — | — | — | |||||||||||||||||||||||||||||
Acquisition, transaction-related and integration expenses | 16 | (16) | — | 85 | (85) | — | |||||||||||||||||||||||||||||
Charges related to legal matters, net | — | — | — | 250 | — | 250 | |||||||||||||||||||||||||||||
Operating income | $ | 56,424 | $ | 124,546 | $ | 180,970 | $ | 56,535 | $ | 112,325 | $ | 168,860 |
(1) | Adjustments for the years ended December 31, 2021 and 2020 were comprised of amortization expense. | |||||||||||||
(2) | Adjustments for the years ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($2.8 million and $2.1 million) and other (none and $1.4 million). | |||||||||||||
(3) | Adjustments for the years ended December 31, 2021 and 2020, respectively, were comprised of stock-based compensation expense ($1.1 million and $0.6 million) and research and development milestones ($10.4 million and $7 million). | |||||||||||||
(4) | Contingent consideration was recorded in connection with the acquisition of Kashiv Specialty Pharmaceuticals, LLC. |
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||
As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
Net revenue | $ | 89,622 | $ | — | $ | 89,622 | $ | 82,423 | $ | — | $ | 82,423 | |||||||||||||||||||||||
Cost of goods sold | 71,666 | — | 71,666 | 68,253 | — | 68,253 | |||||||||||||||||||||||||||||
Gross profit | 17,956 | — | 17,956 | 14,170 | — | 14,170 | |||||||||||||||||||||||||||||
Gross margin % | 20.0 | % | 20.0 | % | 17.2 | % | 17.2 | % | |||||||||||||||||||||||||||
Selling, general and administrative (2) | 15,932 | (8,093) | 7,839 | 16,735 | (8,694) | 8,041 | |||||||||||||||||||||||||||||
Acquisition, transaction-related and integration expenses (3) | — | — | — | 641 | (641) | — | |||||||||||||||||||||||||||||
Operating income (loss) | $ | 2,024 | $ | 8,093 | $ | 10,117 | $ | (3,206) | $ | 9,335 | $ | 6,129 |
(1) | Operating results for the sale of Amneal products by AvKARE were included in our Generics segment. | |||||||||||||
(2) | Adjustments for the three months ended December 31, 2021 and 2020, respectively, were comprised of amortization ($6.2 million and $8.7 million) and other ($1.9 million and none). | |||||||||||||
(3) | Adjustments for the three months ended December 31, 2020 were comprised of finance integration expenses. |
Year Ended December 31, 2021 | Year Ended December 31, 2020 (2) | ||||||||||||||||||||||||||||||||||
As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
Net revenue | $ | 349,012 | $ | — | $ | 349,012 | $ | 293,746 | $ | — | $ | 293,746 | |||||||||||||||||||||||
Cost of goods sold | 282,874 | — | 282,874 | 242,219 | — | 242,219 | |||||||||||||||||||||||||||||
Gross profit | 66,138 | — | 66,138 | 51,527 | — | 51,527 | |||||||||||||||||||||||||||||
Gross margin % | 19.0 | % | 19.0 | % | 17.5 | % | 17.5 | % | |||||||||||||||||||||||||||
Selling, general and administrative (3) | 57,918 | (26,764) | 31,154 | 58,544 | (31,878) | 26,666 | |||||||||||||||||||||||||||||
Acquisition, transaction-related and integration expenses (4) | 1,422 | (1,422) | — | 641 | (641) | — | |||||||||||||||||||||||||||||
Operating income (loss) | $ | 6,798 | $ | 28,186 | $ | 34,984 | $ | (7,658) | $ | 32,519 | $ | 24,861 |
(1) | Operating results for the sale of Amneal products by AvKARE were included in our Generics segment. | |||||||||||||
(2) | Our AvKARE segment includes the results of operations of AvKARE from January 31, 2020, the date of the acquisition, through December 31, 2020. | |||||||||||||
(3) | Adjustments for the years ended December 31, 2021 and 2020, respectively, were comprised of amortization ($24.7 million and $31.9 million) and other ($2.1 million and none). | |||||||||||||
(4) | Adjustments for the year ended December 31, 2021 and 2020 were comprised of finance integration expenses. |
Cover |
Mar. 02, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Mar. 02, 2022 |
Entity Registrant Name | AMNEAL PHARMACEUTICALS, INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-38485 |
Entity Tax Identification Number | 32-0546926 |
Entity Address, Address Line One | 400 Crossing Blvd |
Entity Address, State or Province | NJ |
Entity Address, Postal Zip Code | 08807 |
Entity Address, City or Town | Bridgewater |
City Area Code | 908 |
Local Phone Number | 947-3120 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share |
Trading Symbol | AMRX |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0001723128 |
!7QNB_B[.<
E5-W+ZW-4CQ$KC8)+=?.2^W*@_FJ%5N\K0ZB57)O&0
M8BNAY!P3%[15@P13,D\KM6=-X_I+B3$O5"7M\8^MJG)5Y'[A8ZNW1_ !B.K[*=\6=+T?\E-
MO1P;NJ%/91P"Z JDJJU+%)$B #!@;@ )=A'2G@0/=W-L>&Y7DI581ZFU6O'N
M==:PXEK[-7'1U;7*ON[V.C&^]+;#_ISJVYO:8 'N;VV+_YDJ1P5-SS,A[_\K
M'^80"0]2-;L.A.\I\B.JR.< "X%(.%G6,\("."J&!SDU5=8II@9^M3@
M9;F/ A?GD7$V%FOMW:2$?^.>Q <.!R >@LP&A,* XE &!T_S09HQ #X@Y)Z%
M.1>$PV#&\/-7/HI#'V9%2Y9-6>"3UZ,@87*.\#'* 6NN+2T6\AK
M/:NK]XV-E[6NOO':MF%UN&A:>PV[_9KI[C?JULEJ7;>_^?+\L$]8>4_:WOV5
M6] '6TM&C^/GD9^/!]#
MWQZJG>TA5MY_Q7E,HF"=EG_EZN]*%Q63DF?,.%(9+_Y=QGO-O*#3QY@Z?TR=
M.1OK@Q-\=S;)D>YEBO?E\AW/O'3Y>P?]ZEB<6*Q.O+(R,+;GG%^73KQR7+K.
M=KL$HY]"5Q)_\/F)[&M^YA)YN$1GP_U"W2AT_<#/=U"VL7Z:S7Y%:81^B<)I
M]O/^8/IE>S"]2B":(1W'H16-N#P.[7P8&KE'_6%Q_'I8#,7D]]!9>WY*O1_^
MHMOOT&^949$=YM-EM&;]>LE][2DT(WR;WQJ01:AD$BF8;>J-OSSU1+@\'"
M8&&P;+"FTJ;EO=1:0?3FIH<^'=W_39T8?>2':ZZDC\_7I$*FVY:6YE)(?F_G
M@HOKUMO;0[61GMA,NLH64#2O/CS::8'4%'5U.&?[=#Z#
MRM>AJ%:'\]\NWA$S__%H;^_-OPCY_3\?SF8_U?YJ U4[.TE@6PBSZZ)=SSX%
M:#[/8JHWLT]U^EQ\L80<]1>=U)>WJ5BMVQFGG']]-AT8%[FE-"<6I"4RYX$X
M[S@1T0F5>16]"_]>'3!FC?*>$4:Y)I+CAZ5XZ"$#SK14QKK^IF51?3[H/IQM
M8(:3JYK^\'"^;MO+@\7B^OIZ_\:E*
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M_U3[>+MQ=;FD 8R#V.V!%29"##)BL8$(QW/.VV2,PD1#VA1^^L_LWY-WM[4=QUR]QFHI;G,4;W@1ACD)?7)_PA'P>L40.
MIG4UBQ1OO !8W?K_R5-<*H+C?>3%XP)F5@D14J[RH MPNO9>*[B9Q'*'OTYX
MR++@GM\@#UZ9W34B8N(>E!MW;W&]1G-NE)#_.0]#\@=GR
%LM&D8U+1.BJ$CA48V(!9JO01X:K&-:'5]Z*SX:FNO
MM0PT:=_L4\?9\X2_'NW:G]"/% U?-@U;5-,
T9_WP6=L*R/
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M:^H1H1*$ V DQ