EX-99.1 3 a09-13592_2ex99d1.htm EX-99.1

Exhibit 99.1

 

ITEM 6. SELECTED FINANCIAL DATA

(In thousands, except per share data)

 

On November 3, 2008, we entered into a series of agreements with Acusphere, Inc. that resulted in Acusphere issuing to us a $15 million senior secured convertible note, convertible into, among other potential options, a controlling interest in Acusphere; we also acquired license rights to certain Acusphere intellectual property in exchange for $5 million plus future royalty payments.  On March 28, 2008 we acquired certain intellectual property from Acusphere in exchange for $10 million.  We have determined that, as a result of these transactions, Acusphere is a variable interest entity and we are the primary beneficiary.   As a result, we have consolidated Acusphere’s results in accordance with FIN 46R, “Consolidation of Variable Interest Entities” (“FIN 46R”), as of November 3, 2008.

 

We completed the acquisitions of AMRIX® in August 2007, the issued share capital of Zeneus Holdings Limited on December 22, 2005, substantially all assets related to the TRISENOX® (arsenic trioxide) injection business from CTI and CTI Technologies, Inc., a wholly-owned subsidiary of CTI on July 18, 2005, outstanding capital stock of Salmedix, Inc. on June 14, 2005 and the outstanding shares of capital stock of CIMA LABS on August 12, 2004. These acquisitions have been accounted for either as business combinations or asset purchases.

 

Five-year summary of selected financial data:

 

 

 

Year Ended December 31,

 

Statement of operations data

 

As Adjusted
2008(1), (2)

 

As Adjusted
2007(1), (3)

 

As Adjusted
2006(1), (3)

 

As Adjusted
2005(1), (3)

 

As Adjusted
2004(1), (3)

 

Sales

 

$

1,943,464

 

$

1,727,299

 

$

1,720,172

 

$

1,156,518

 

$

980,375

 

Other revenues

 

31,090

 

45,339

 

43,897

 

55,374

 

35,050

 

Total revenues

 

1,974,554

 

1,772,638

 

1,764,069

 

1,211,892

 

1,015,425

 

 

 

 

 

 

 

 

 

 

 

 

 

Settlement reserve

 

7,450

 

425,000

 

—

 

—

 

—

 

Impairment charges

 

99,719

 

—

 

12,417

 

20,820

 

30,071

 

Acquired in-process research and development

 

41,955

 

—

 

5,000

 

366,815

 

185,700

 

Debt exchange expense

 

—

 

—

 

41,106

 

—

 

28,230

 

Write-off of deferred debt issuance costs

 

—

 

—

 

—

 

—

 

—

 

Restructuring charge

 

8,415

 

—

 

—

 

—

 

—

 

Loss on sale of equipment

 

17,178

 

1,022

 

—

 

—

 

—

 

Income tax expense (benefit)

 

(37,819

)

103,153

 

76,524

 

(77,279

)

43,548

 

Net income (loss)

 

171,889

 

(226,429

)

115,642

 

(187,227

)

(77,356

)

Net loss attributable to noncontrolling interest

 

21,073

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Cephalon, Inc.

 

$

192,962

 

$

(226,429

)

$

115,642

 

$

(187,227

)

$

(77,356

)

 

 

 

 

 

 

 

 

 

 

 

 

Basic income (loss) per common share attributable to Cephalon, Inc.

 

$

2.84

 

$

(3.40

)

$

1.91

 

$

(3.23

)

$

(1.37

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

68,018

 

66,597

 

60,507

 

58,051

 

56,489

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income (loss) per common share attributable to Cephalon, Inc.

 

$

2.54

 

$

(3.40

)

$

1.66

 

$

(3.23

)

$

(1.37

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding-assuming dilution

 

76,097

 

66,597

 

69,672

 

58,051

 

56,489

 

 

 

 

December 31,

 

Balance sheet data

 

As Adjusted
2008(1), (2)

 

As Adjusted 2007(1), (3)

 

As Adjusted 2006(1), (3)

 

As Adjusted 2005(1), (3)

 

As Adjusted 2004(1), (3)

 

Cash, cash equivalents and investments

 

$

524,459

 

$

826,265

 

$

521,724

 

$

484,090

 

$

791,676

 

Total assets

 

3,082,942

 

3,395,759

 

2,937,339

 

2,638,907

 

2,315,615

 

Current portion of long-term debt

 

781,618

 

944,659

 

701,074

 

590,038

 

5,114

 

Long-term debt (excluding current portion)

 

3,692

 

3,788

 

206,895

 

617,944

 

1,102,734

 

Redeemable Equity

 

248,402

 

292,509

 

322,239

 

343,122

 

0

 

Accumulated deficit

 

(521,286

)

(714,248

)

(480,651

)

(596,293

)

(409,066

)

Equity

 

1,416,680

 

1,191,557

 

1,203,947

 

577,025

 

930,413

 

 

(1) As adjusted for FASB Staff Position APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).”  See Note 1 of the Consolidated Financial Statements for additional information.

 

(2) As adjusted for FAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements.”  See Note 1 of the Consolidated Financial Statements for additional information.

 

(3) As adjusted for the retrospective application of a change in accounting method for inventory.  See Note 1 of the Consolidated Financial Statements for additional information.