, | |||||
(State or other jurisdiction of incorporation) | (Commission file number) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |
Toronto Stock Exchange |
Item 2.02 | Results of Operations and Financial Condition. |
Exhibit No. | Description | |
101.SCH* | XBRL Taxonomy Extension Schema Document | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
BAUSCH HEALTH COMPANIES INC. | |
By: | /s/ Paul S. Herendeen |
Paul S. Herendeen | |
Executive Vice President, Chief Financial Officer |
Exhibit No. | Description | |
101.SCH* | XBRL Taxonomy Extension Schema Document | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Investor Contact: | Media Contact: |
Arthur Shannon | Lainie Keller |
arthur.shannon@bauschhealth.com | lainie.keller@bauschhealth.com |
(514) 856-3855 | (908) 927-1198 |
(877) 281-6642 (toll free) |
• | Fourth-Quarter 2019 Financial Results |
◦ | Revenues of $2.224 Billion |
◦ | GAAP Cash Generated from Operations of $234 Million |
◦ | GAAP Net Loss of $1.516 Billion |
◦ | Adjusted EBITDA (non-GAAP)1 of $898 Million |
• | Full-Year 2019 Financial Results |
◦ | Revenues of $8.601 Billion |
◦ | GAAP Cash Generated from Operations of $1.501 Billion |
◦ | GAAP Net Loss of $1.788 Billion |
◦ | Adjusted EBITDA (non-GAAP)1 of $3.571 Billion |
• | Delivered Total Company Reported Revenue Growth of 5% in the Fourth Quarter and 3% for the Full Year of 2019 |
• | Eighth Consecutive Quarter of Total Company Organic Revenue Growth2 |
• | The Bausch + Lomb/International segment comprised approximately 55% of the Company’s reported revenue in 2019 |
◦ | Reported revenue in the Bausch + Lomb/International segment increased by 2% in 2019 compared to 2018; revenue in this segment grew organically1,2 by 5% compared to 2018, driven by organic growth1,2 across all five business units |
◦ | Delivered third consecutive year of organic revenue growth2 in 2019 |
◦ | Launched multiple products in 2019, including: |
▪ | Ocuvite® Eye Performance vitamins |
▪ | PreserVision® AREDS 2 Formula minigel eye vitamins |
▪ | LOTEMAX® SM (loteprednol etabonate ophthalmic gel) 0.38% |
▪ | Bausch + Lomb ULTRA® Multifocal for Astigmatism contact lenses |
▪ | Zen™ Multifocal scleral lens for Presbyopia |
▪ | enVista® toric MX60ET intraocular lens |
◦ | Acquired licensing rights for several investigational products, including: |
• | XIPERE™ (triamcinolone acetonide suprachoroidal injectable suspension), with a proposed indication of treatment for macular edema associated with uveitis |
• | NOV033 (perfluorohexyloctane), a first-in-class drug with a novel mechanism of action to treat Dry Eye Disease associated with Meibomian gland dysfunction |
• | EM-100, an investigational eye drop that, if approved, will be the first over-the-counter preservative-free eye drop for the treatment of itchy eyes associated with allergies |
• | The Salix segment comprised approximately 23% of the Company’s reported revenue in 2019 |
◦ | Reported revenue in the Salix segment increased by 16% in 2019 compared to 2018 |
◦ | Reported revenue of XIFAXAN® (rifaximin) increased by 22% in 2019 compared to 2018 |
◦ | Acquired TRULANCE® (plecanatide), a treatment for adults with chronic idiopathic constipation and irritable bowel syndrome with constipation |
◦ | Acquired dolcanatide, an investigational compound that has demonstrated proof-of-concept in treating patients with multiple gastrointestinal conditions |
◦ | Entered into a licensing agreement with the University of California, Los Angeles to develop and commercialize a novel investigational compound for the treatment of non-alcoholic fatty liver disease and non-alcoholic steatohepatitis |
◦ | Acquired licensing rights for MT-1303 (amiselimod), a late-stage investigational sphingosine 1-phosphate (S1P) modulator for the treatment of inflammatory bowel disease, and conducted study to evaluate its cardiovascular safety |
• | The Ortho Dermatologics segment comprised approximately 7% of the Company’s revenue in 2019 |
◦ | Reported revenues in the Global Solta business unit grew by 44% in 2019 compared to 2018, driven by continued strong demand for Thermage® FLX system following the launch in the Asia Pacific region |
◦ | Launched DUOBRII® (halobetasol propionate and tazarotene) Lotion, 0.01%/0.045%, for the topical treatment of plaque psoriasis in adults |
◦ | Launched a cash-pay prescription program, Dermatology.com, and expanded it to all Walgreens U.S. retail pharmacy locations |
◦ | Received approval from the U.S. Food and Drug Administration for ARAZLO™ (tazarotene) Lotion, 0.045%, for the topical treatment of acne vulgaris in patients nine years of age and older; launch is planned for the first half of 2020 |
• | Increased Research and Development (R&D) in 2019 by 14%, or $58 million, compared to 2018 |
• | Utilized approximately $1.100 billion in cash generated from operations to repay debt by approximately $900 million and for ‘bolt-on’ acquisitions in 2019 |
• | Refinanced $4.240 billion of debt in 2019 to extend maturities and provide flexibility |
• | Raised $1.260 billion of debt in 2019 to fund the settlement of the legacy Valeant U.S. ‘stock drop’ litigation and pay the related financing fees and expenses |
Three Months Ended December 31, | |||||||||||||||
(in millions) | 2019 | 2018 | Reported Change | Reported Change | Change at Constant Currency4 | Organic Change1, 2 | |||||||||
Bausch + Lomb/International | $1,238 | $1,205 | $33 | 3 | % | 3 | % | 3 | % | ||||||
Salix | $517 | $426 | $91 | 21 | % | 21 | % | 17 | % | ||||||
Ortho Dermatologics | $158 | $160 | ($2) | (1 | %) | (1 | %) | (1 | %) | ||||||
Diversified Products | $311 | $330 | ($19) | (6 | %) | (6 | %) | (5 | %) | ||||||
Total Revenues | $2,224 | $2,121 | $103 | 5 | % | 5 | % | 4 | % |
Twelve Months Ended December 31, | |||||||||||||||
(in millions) | 2019 | 2018 | Reported Change | Reported Change | Change at Constant Currency4 | Organic Change1, 2 | |||||||||
Bausch + Lomb/International | $4,739 | $4,664 | $75 | 2 | % | 4 | % | 5 | % | ||||||
Salix | $2,022 | $1,749 | $273 | 16 | % | 16 | % | 13 | % | ||||||
Ortho Dermatologics | $565 | $617 | ($52) | (8 | %) | (8 | %) | (8 | %) | ||||||
Diversified Products | $1,275 | $1,350 | ($75) | (6 | %) | (6 | %) | (5 | %) | ||||||
Total Revenues | $8,601 | $8,380 | $221 | 3 | % | 4 | % | 4 | % |
• | Full-Year revenues in the range of $8.65 - $8.85 billion |
• | Full-Year Adjusted EBITDA (non-GAAP) in the range of $3.50 - $3.65 billion |
• | Bausch Health’s cash, cash equivalents and restricted cash were $3.244 billion5 at Dec. 31, 2019 |
• | The Company’s availability under the Revolving Credit Facility was $1.055 billion at Dec. 31, 2019 |
• | Basic weighted average shares outstanding for the fourth quarter of 2019 were 352.6 million shares. Diluted weighted average shares outstanding for the fourth quarter of 2019 were 359.2 million shares6 |
• | Basic weighted average shares outstanding for the full year of 2019 were 352.1 million shares. Diluted weighted average shares outstanding for the full year of 2019 were 357.2 million shares6 |
Date: | Wednesday, Feb. 19, 2020 |
Time: | 8:00 a.m. EST |
Webcast: | http://ir.bauschhealth.com/events-and-presentations |
Participant Event Dial-in: | +1 (888) 317-6003 (United States) |
+1 (412) 317-6061 (International) | |
+1 (866) 284-3684 (Canada) | |
Participant Passcode: | 8170812 |
Replay Dial-in: | +1 (877) 344-7529 (United States) |
+1 (412) 317-0088 (International) | |
+1 (855) 669-9658 (Canada) | |
Replay Passcode: | 10138202 (replay available until Feb. 26, 2020) |
• | Restructuring and integration costs: The Company has incurred restructuring costs as it implemented certain strategies, which involved, among other things, improvements to its infrastructure and operations, internal reorganizations and impacts from the divestiture of assets and businesses. In addition, in connection with its acquisition of certain assets of Synergy Pharmaceuticals Inc. ("Synergy"), the Company has incurred certain severance and integration costs which were not essential to complete, close or report the acquisition. With regard to infrastructure and operational improvements which the Company has taken to improve efficiencies in the businesses and facilities, these tend to be costs intended to right size the business or organization that fluctuate significantly between periods in amount, size and timing, depending on the improvement project, reorganization or transaction. With regard to the severance and integration costs associated with the acquisition of certain assets of Synergy, these costs are specific to the acquisition itself and provided no benefit to the ongoing operations of the Company. As a result, the Company does not believe that such costs (and their impact) are truly representative of the underlying business. The Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company’s operating performance, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors. |
• | Acquired in-process research and development costs: The Company has excluded expenses associated with acquired in-process research and development, as these amounts are inconsistent in amount and frequency and are significantly impacted by the timing, size and nature of acquisitions. Furthermore, as these amounts are associated with research and development acquired, the Company does not believe that they are a representation of the Company’s research and development efforts during the period. |
• | Asset impairments: The Company has excluded the impact of impairments of finite-lived and indefinite-lived intangible assets, as well as impairments of assets held for sale, as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions and divestitures. The Company believes that the adjustments of these items correlate with the sustainability of the Company’s operating performance. Although the Company excludes intangible impairments from its non-GAAP expenses, the Company believes that it is important for investors to understand that intangible assets contribute to revenue generation. |
• | Goodwill impairments: The Company has excluded the impact of goodwill impairment. When the Company has made acquisitions where the consideration paid was in excess of the fair value of the net assets acquired, the remaining purchase price is recorded as goodwill. For assets that we developed ourselves, no goodwill is recorded. Goodwill is not amortized but is tested for impairment. In January 2017, new accounting guidance was issued which simplifies the subsequent measurement of an impairment to goodwill. Under the new guidance, which the Company early adopted effective Jan. 1, 2018, the amount of goodwill impairment is measured as the excess of a reporting unit’s carrying value over its fair value. Management excludes these charges in measuring the performance of the Company and the business. |
• | Share-based compensation: The Company has excluded the impact of costs relating to share-based compensation. The Company believes that the exclusion of share-based compensation expense assists investors in the comparisons of operating results to peer companies. Share-based compensation expense can vary significantly based on the timing, size and nature of awards granted. |
• | Acquisition-related costs and adjustments excluding amortization of intangible assets: The Company has excluded the impact of acquisition-related costs and fair value inventory step-up resulting from acquisitions as the amounts and frequency of such costs and adjustments are not consistent and are significantly impacted by the timing and size of its acquisitions. In addition, the Company has excluded the impact of acquisition-related contingent consideration non-cash |
• | Loss on extinguishment of debt: The Company has excluded loss on extinguishment of debt as this represents a cost of refinancing our existing debt and is not a reflection of our operations for the period. Further, the amount and frequency of such charges are not consistent and are significantly impacted by the timing and size of debt financing transactions and other factors in the debt market out of management’s control. |
• | Other Non-GAAP charges: The Company has excluded certain other amounts, including legal and other professional fees incurred in connection with recent legal and governmental proceedings, investigations and information requests respecting certain of our distribution, marketing, pricing, disclosure and accounting practices, litigation and other matters, and net (gain) loss on sale of assets. In addition, the Company has excluded certain other expenses, such as IT infrastructure investment, that are the result of other, non-comparable events to measure operating performance. These events arise outside of the ordinary course of continuing operations. Given the unique nature of the matters relating to these costs, the Company believes these items are not normal operating expenses. For example, legal settlements and judgments vary significantly, in their nature, size and frequency, and, due to this volatility, the Company believes the costs associated with legal settlements and judgments are not normal operating expenses. In addition, as opposed to more ordinary course matters, the Company considers that each of the recent proceedings, investigations and information requests, given their nature and frequency, are outside of the ordinary course and relate to unique circumstances. The Company believes that the exclusion of such out-of-the-ordinary-course amounts provides supplemental information to assist in the comparison of the financial results of the Company from period to period and, therefore, provides useful supplemental information to investors. However, investors should understand that many of these costs could recur and that companies in our industry often face litigation. |
• | Amortization of intangible assets: The Company has excluded the impact of amortization of intangible assets, as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. The Company believes that the adjustments of these items correlate with the sustainability of the Company’s operating performance. Although the Company excludes amortization of intangible assets from its non-GAAP expenses, the Company believes that it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets. |
• | Foreign currency exchange rates: Although changes in foreign currency exchange rates are part of our business, they are not within management’s control. Changes in foreign currency exchange rates, however, can mask positive or negative trends in the business. The impact for changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period. |
• | Acquisitions, divestitures and discontinuations: In order to present period-over-period organic revenue (non-GAAP) growth/change on a comparable basis, revenues associated with acquisitions, divestitures and discontinuations are adjusted to include only revenues from those businesses and assets owned during both periods. Accordingly, organic revenue (non-GAAP) growth/change excludes from the current period, revenues attributable to each acquisition for twelve months subsequent to the day of acquisition, as there are no revenues from those businesses and assets included in the comparable prior period. Organic revenue (non-GAAP) growth/change excludes from the prior period (but not the current period), all revenues attributable to each divestiture and discontinuance during the twelve months prior to the day of divestiture or discontinuance, as there are no revenues from those businesses and assets included in the comparable current period. |
Bausch Health Companies Inc. | Table 1 | |||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
For the Three and Twelve Months Ended December 31, 2019 and 2018 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | ||||||||||||||||
Product sales | $ | 2,198 | $ | 2,098 | $ | 8,489 | $ | 8,271 | ||||||||
Other revenues | 26 | 23 | 112 | 109 | ||||||||||||
2,224 | 2,121 | 8,601 | 8,380 | |||||||||||||
Expenses | ||||||||||||||||
Cost of goods sold (excluding amortization and impairments of intangible assets) | 622 | 592 | 2,297 | 2,309 | ||||||||||||
Cost of other revenues | 13 | 10 | 53 | 42 | ||||||||||||
Selling, general and administrative | 668 | 626 | 2,554 | 2,473 | ||||||||||||
Research and development | 114 | 120 | 471 | 413 | ||||||||||||
Amortization of intangible assets | 445 | 502 | 1,897 | 2,644 | ||||||||||||
Goodwill impairments | — | 109 | — | 2,322 | ||||||||||||
Asset impairments | 26 | 134 | 75 | 568 | ||||||||||||
Restructuring and integration costs | 3 | 6 | 31 | 22 | ||||||||||||
Acquisition-related contingent consideration | 10 | 14 | 12 | (9 | ) | |||||||||||
Other expense (income), net | 1,399 | (17 | ) | 1,414 | (20 | ) | ||||||||||
3,300 | 2,096 | 8,804 | 10,764 | |||||||||||||
Operating (loss) income | (1,076 | ) | 25 | (203 | ) | (2,384 | ) | |||||||||
Interest income | 3 | 2 | 12 | 11 | ||||||||||||
Interest expense | (391 | ) | (414 | ) | (1,612 | ) | (1,685 | ) | ||||||||
Loss on extinguishment of debt | (2 | ) | (44 | ) | (42 | ) | (119 | ) | ||||||||
Foreign exchange and other | (4 | ) | 5 | 8 | 23 | |||||||||||
Loss before (provision for) benefit from income taxes | (1,470 | ) | (426 | ) | (1,837 | ) | (4,154 | ) | ||||||||
(Provision for) benefit from income taxes | (47 | ) | 84 | 54 | 10 | |||||||||||
Net loss | (1,517 | ) | (342 | ) | (1,783 | ) | (4,144 | ) | ||||||||
Net loss (income) attributable to noncontrolling interest | 1 | (2 | ) | (5 | ) | (4 | ) | |||||||||
Net loss attributable to Bausch Health Companies Inc. | $ | (1,516 | ) | $ | (344 | ) | $ | (1,788 | ) | $ | (4,148 | ) |
Bausch Health Companies Inc. | Table 2 | |||||||||||||||
Reconciliation of GAAP Net Loss to Adjusted Net Income (non-GAAP) | ||||||||||||||||
For the Three and Twelve Months Ended December 31, 2019 and 2018 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net loss attributable to Bausch Health Companies Inc. | $ | (1,516 | ) | $ | (344 | ) | $ | (1,788 | ) | $ | (4,148 | ) | ||||
Non-GAAP adjustments: (a) | ||||||||||||||||
Amortization of intangible assets | 445 | 502 | 1,897 | 2,644 | ||||||||||||
Asset impairments | 26 | 134 | 75 | 568 | ||||||||||||
Goodwill impairments | — | 109 | — | 2,322 | ||||||||||||
Restructuring and integration costs | 3 | 6 | 31 | 22 | ||||||||||||
Acquisition-related costs and adjustments (excluding amortization of intangible assets) | 10 | 14 | 25 | (9 | ) | |||||||||||
Loss on extinguishment of debt | 2 | 44 | 42 | 119 | ||||||||||||
Litigation and other matters | 1,389 | 3 | 1,401 | (27 | ) | |||||||||||
Acquired in-process research and development costs | 32 | — | 41 | 1 | ||||||||||||
IT infrastructure investment | 9 | — | 24 | — | ||||||||||||
Legal and other professional fees | 13 | 17 | 35 | 52 | ||||||||||||
Net (gain) loss on sale of assets | (21 | ) | (20 | ) | (31 | ) | 6 | |||||||||
Other | (1 | ) | (1 | ) | (7 | ) | (2 | ) | ||||||||
Tax effect of non-GAAP adjustments | 13 | (96 | ) | (186 | ) | (138 | ) | |||||||||
Total non-GAAP adjustments | 1,920 | 712 | 3,347 | 5,558 | ||||||||||||
Adjusted net income attributable to Bausch Health Companies Inc. (non-GAAP) | $ | 404 | $ | 368 | $ | 1,559 | $ | 1,410 |
Bausch Health Companies Inc. | Table 2a | |||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information | ||||||||||||||||
For the Three and Twelve Months Ended December 31, 2019 and 2018 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Cost of goods sold reconciliation: | ||||||||||||||||
GAAP Cost of goods sold (excluding amortization and impairments of intangible assets) | $ | 622 | $ | 592 | $ | 2,297 | $ | 2,309 | ||||||||
Fair value inventory step-up resulting from acquisitions (a) | — | — | (5 | ) | — | |||||||||||
Adjusted cost of goods sold (excluding amortization and impairments of intangible assets) (non-GAAP) | $ | 622 | $ | 592 | $ | 2,292 | $ | 2,309 | ||||||||
Selling, general and administrative reconciliation: | ||||||||||||||||
GAAP Selling, general and administrative | $ | 668 | $ | 626 | $ | 2,554 | $ | 2,473 | ||||||||
IT infrastructure investment (b) | (9 | ) | — | (24 | ) | — | ||||||||||
Legal and other professional fees (c) | (13 | ) | (17 | ) | (35 | ) | (52 | ) | ||||||||
Other Selling, general and administrative (d) | — | 1 | 2 | 2 | ||||||||||||
Adjusted selling, general and administrative (non-GAAP) | $ | 646 | $ | 610 | $ | 2,497 | $ | 2,423 | ||||||||
Amortization of intangible assets reconciliation: | ||||||||||||||||
GAAP Amortization of intangible assets | $ | 445 | $ | 502 | $ | 1,897 | $ | 2,644 | ||||||||
Amortization of intangible assets (e) | (445 | ) | (502 | ) | (1,897 | ) | (2,644 | ) | ||||||||
Adjusted amortization of intangible assets (non-GAAP) | $ | — | $ | — | $ | — | $ | — | ||||||||
Goodwill impairments reconciliation: | ||||||||||||||||
GAAP Goodwill impairments | $ | — | $ | 109 | $ | — | $ | 2,322 | ||||||||
Goodwill impairments (f) | — | (109 | ) | — | (2,322 | ) | ||||||||||
Adjusted goodwill impairments (non-GAAP) | $ | — | $ | — | $ | — | $ | — | ||||||||
Restructuring and integration costs reconciliation: | ||||||||||||||||
GAAP Restructuring and integration costs | $ | 3 | $ | 6 | $ | 31 | $ | 22 | ||||||||
Restructuring and integration costs (g) | (3 | ) | (6 | ) | (31 | ) | (22 | ) | ||||||||
Adjusted restructuring and integration costs (non-GAAP) | $ | — | $ | — | $ | — | $ | — | ||||||||
Asset impairments reconciliation: | ||||||||||||||||
GAAP Asset impairments | $ | 26 | $ | 134 | $ | 75 | $ | 568 | ||||||||
Asset impairments (i) | (26 | ) | (134 | ) | (75 | ) | (568 | ) | ||||||||
Adjusted asset impairments (non-GAAP) | $ | — | $ | — | $ | — | $ | — | ||||||||
Acquisition-related contingent consideration reconciliation: | ||||||||||||||||
GAAP Acquisition-related contingent consideration | $ | 10 | $ | 14 | $ | 12 | $ | (9 | ) | |||||||
Acquisition-related contingent consideration (a) | (10 | ) | (14 | ) | (12 | ) | 9 | |||||||||
Adjusted acquisition-related contingent consideration (non-GAAP) | $ | — | $ | — | $ | — | $ | — |
Bausch Health Companies Inc. | Table 2a (continued) | |||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information | ||||||||||||||||
For the Three and Twelve Months Ended December 31, 2019 and 2018 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Other expense (income), net reconciliation: | ||||||||||||||||
GAAP Other expense (income), net | $ | 1,399 | $ | (17 | ) | $ | 1,414 | $ | (20 | ) | ||||||
Net gain (loss) on sale of assets (j) | 21 | 20 | 31 | (6 | ) | |||||||||||
Litigation and other matters (k) | (1,389 | ) | (3 | ) | (1,401 | ) | 27 | |||||||||
Acquisition-related costs (a) | — | — | (8 | ) | — | |||||||||||
Acquired in-process research and development costs (l) | (32 | ) | — | (41 | ) | (1 | ) | |||||||||
Other (d) | 1 | — | 5 | — | ||||||||||||
Adjusted other expense (income) (non-GAAP) | $ | — | $ | — | $ | — | $ | — | ||||||||
Loss on extinguishment of debt reconciliation: | ||||||||||||||||
GAAP Loss on extinguishment of debt | $ | (2 | ) | $ | (44 | ) | $ | (42 | ) | $ | (119 | ) | ||||
Loss on extinguishment of debt (m) | 2 | 44 | 42 | 119 | ||||||||||||
Adjusted loss on extinguishment of debt (non-GAAP) | $ | — | $ | — | $ | — | $ | — | ||||||||
(Provision for) benefit from income taxes reconciliation: | ||||||||||||||||
GAAP (Provision for) benefit from income taxes | $ | (47 | ) | $ | 84 | $ | 54 | $ | 10 | |||||||
Tax effect of non-GAAP adjustments (n) | 13 | (96 | ) | (186 | ) | (138 | ) | |||||||||
Adjusted provision for income taxes (non-GAAP) | $ | (34 | ) | $ | (12 | ) | $ | (132 | ) | $ | (128 | ) |
Bausch Health Companies Inc. | Table 2b | ||||||||||||||||
Reconciliation of GAAP Net Loss to Adjusted EBITDA (non-GAAP) | |||||||||||||||||
For the Three and Twelve Months Ended December 31, 2019 and 2018 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Net loss attributable to Bausch Health Companies Inc. | $ | (1,516 | ) | $ | (344 | ) | $ | (1,788 | ) | $ | (4,148 | ) | |||||
Interest expense, net | 388 | 412 | 1,600 | 1,674 | |||||||||||||
Provision for (benefit from) income taxes | 47 | (84 | ) | (54 | ) | (10 | ) | ||||||||||
Depreciation and amortization | 492 | 546 | 2,075 | 2,819 | |||||||||||||
EBITDA | (589 | ) | 530 | 1,833 | 335 | ||||||||||||
Adjustments: | |||||||||||||||||
Asset impairments | 26 | 134 | 75 | 568 | |||||||||||||
Goodwill impairments | — | 109 | — | 2,322 | |||||||||||||
Restructuring and integration costs | 3 | 6 | 31 | 22 | |||||||||||||
Acquisition-related costs and adjustments (excluding amortization of intangible assets) | 10 | 14 | 25 | (9 | ) | ||||||||||||
Loss on extinguishment of debt | 2 | 44 | 42 | 119 | |||||||||||||
Share-based compensation | 25 | 22 | 102 | 87 | |||||||||||||
Other adjustments: | |||||||||||||||||
Litigation and other matters | 1,389 | 3 | 1,401 | (27 | ) | ||||||||||||
IT infrastructure investment | 9 | — | 24 | — | |||||||||||||
Legal and other professional fees (a) | 13 | 17 | 35 | 52 | |||||||||||||
Net (gain) loss on sale of assets | (21 | ) | (20 | ) | (31 | ) | 6 | ||||||||||
Acquired in-process research and development costs | 32 | — | 41 | 1 | |||||||||||||
Other | (1 | ) | (1 | ) | (7 | ) | (2 | ) | |||||||||
Adjusted EBITDA (non-GAAP) | $ | 898 | $ | 858 | $ | 3,571 | $ | 3,474 | |||||||||
Bausch Health Companies Inc. | Table 3a | ||||||||||||||||||||||||||||||||||
Organic Growth (non-GAAP) - by Segment | |||||||||||||||||||||||||||||||||||
For the Three Months Ended December 31, 2019 and 2018 | |||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||
Calculation of Organic Revenue for the Three Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2019 | December 31, 2018 | Change in Organic Revenue | |||||||||||||||||||||||||||||||||
Revenue as Reported | Changes in Exchange Rates (a) | Acquisition | Organic Revenue (Non-GAAP) (b) | Revenue as Reported | Divestitures and Discontinuations | Organic Revenue (Non-GAAP) (b) | |||||||||||||||||||||||||||||
(in millions) | Amount | Pct. | |||||||||||||||||||||||||||||||||
Bausch + Lomb/International | |||||||||||||||||||||||||||||||||||
Global Vision Care | $ | 210 | $ | — | $ | — | $ | 210 | $ | 203 | $ | (1 | ) | $ | 202 | $ | 8 | 4 | % | ||||||||||||||||
Global Surgical | 193 | 2 | — | 195 | 186 | (1 | ) | 185 | 10 | 5 | % | ||||||||||||||||||||||||
Global Consumer Products | 390 | 2 | — | 392 | 368 | (1 | ) | 367 | 25 | 7 | % | ||||||||||||||||||||||||
Global Ophtho Rx | 155 | 1 | — | 156 | 159 | — | 159 | (3 | ) | (2 | )% | ||||||||||||||||||||||||
International Rx | 290 | (5 | ) | — | 285 | 289 | (3 | ) | 286 | (1 | ) | — | % | ||||||||||||||||||||||
Total Bausch + Lomb/International | 1,238 | — | — | 1,238 | 1,205 | (6 | ) | 1,199 | 39 | 3 | % | ||||||||||||||||||||||||
Salix | 517 | — | (18 | ) | 499 | 426 | — | 426 | 73 | 17 | % | ||||||||||||||||||||||||
Ortho Dermatologics | |||||||||||||||||||||||||||||||||||
Ortho Dermatologics(c) | 94 | — | — | 94 | 115 | — | 115 | (21 | ) | (18 | )% | ||||||||||||||||||||||||
Global Solta | 64 | — | — | 64 | 45 | — | 45 | 19 | 42 | % | |||||||||||||||||||||||||
Total Ortho Dermatologics | 158 | — | — | 158 | 160 | — | 160 | (2 | ) | (1 | )% | ||||||||||||||||||||||||
Diversified Products | |||||||||||||||||||||||||||||||||||
Neurology and Other | 168 | — | — | 168 | 186 | (1 | ) | 185 | (17 | ) | (9 | )% | |||||||||||||||||||||||
Generics(c) | 117 | — | — | 117 | 114 | — | 114 | 3 | 3 | % | |||||||||||||||||||||||||
Dentistry(c) | 26 | — | — | 26 | 30 | — | 30 | (4 | ) | (13 | )% | ||||||||||||||||||||||||
Total Diversified Products | 311 | — | — | 311 | 330 | (1 | ) | 329 | (18 | ) | (5 | )% | |||||||||||||||||||||||
Totals | $ | 2,224 | $ | — | $ | (18 | ) | $ | 2,206 | $ | 2,121 | $ | (7 | ) | $ | 2,114 | $ | 92 | 4 | % |
Bausch Health Companies Inc. | Table 3b | ||||||||||||||||||||||||||||||||||
Organic Growth (non-GAAP) - by Segment | |||||||||||||||||||||||||||||||||||
For the Twelve Months Ended December 31, 2019 and 2018 | |||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||
Calculation of Organic Revenue for the Twelve Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2019 | December 31, 2018 | Change in Organic Revenue | |||||||||||||||||||||||||||||||||
Revenue as Reported | Changes in Exchange Rates (a) | Acquisition | Organic Revenue (Non-GAAP) (b) | Revenue as Reported | Divestitures and Discontinuations | Organic Revenue (Non-GAAP) (b) | |||||||||||||||||||||||||||||
(in millions) | Amount | Pct. | |||||||||||||||||||||||||||||||||
Bausch + Lomb/International | |||||||||||||||||||||||||||||||||||
Global Vision Care | $ | 848 | $ | 18 | $ | — | $ | 866 | $ | 814 | $ | (3 | ) | $ | 811 | $ | 55 | 7 | % | ||||||||||||||||
Global Surgical | 698 | 22 | — | 720 | 698 | (6 | ) | 692 | 28 | 4 | % | ||||||||||||||||||||||||
Global Consumer Products | 1,455 | 36 | — | 1,491 | 1,421 | (13 | ) | 1,408 | 83 | 6 | % | ||||||||||||||||||||||||
Global Ophtho Rx | 638 | 13 | — | 651 | 641 | — | 641 | 10 | 2 | % | |||||||||||||||||||||||||
International Rx | 1,100 | 21 | — | 1,121 | 1,090 | (19 | ) | 1,071 | 50 | 5 | % | ||||||||||||||||||||||||
Total Bausch + Lomb/International | 4,739 | 110 | — | 4,849 | 4,664 | (41 | ) | 4,623 | 226 | 5 | % | ||||||||||||||||||||||||
Salix | 2,022 | — | (55 | ) | 1,967 | 1,749 | (9 | ) | 1,740 | 227 | 13 | % | |||||||||||||||||||||||
Ortho Dermatologics | |||||||||||||||||||||||||||||||||||
Ortho Dermatologics(c) | 371 | — | — | 371 | 482 | — | 482 | (111 | ) | (23 | )% | ||||||||||||||||||||||||
Global Solta | 194 | 2 | — | 196 | 135 | — | 135 | 61 | 45 | % | |||||||||||||||||||||||||
Total Ortho Dermatologics | 565 | 2 | — | 567 | 617 | — | 617 | (50 | ) | (8 | )% | ||||||||||||||||||||||||
Diversified Products | |||||||||||||||||||||||||||||||||||
Neurology and Other | 715 | — | — | 715 | 822 | (4 | ) | 818 | (103 | ) | (13 | )% | |||||||||||||||||||||||
Generics(c) | 459 | — | — | 459 | 412 | — | 412 | 47 | 11 | % | |||||||||||||||||||||||||
Dentistry(c) | 101 | — | — | 101 | 116 | — | 116 | (15 | ) | (13 | )% | ||||||||||||||||||||||||
Total Diversified Products | 1,275 | — | — | 1,275 | 1,350 | (4 | ) | 1,346 | (71 | ) | (5 | )% | |||||||||||||||||||||||
Totals | $ | 8,601 | $ | 112 | $ | (55 | ) | $ | 8,658 | $ | 8,380 | $ | (54 | ) | $ | 8,326 | $ | 332 | 4 | % |
Bausch Health Companies Inc. | Table 4 | |||||||||||||||
Other Financial Information | ||||||||||||||||
(unaudited) | ||||||||||||||||
(in millions) | December 31, 2019 | December 31, 2018 | ||||||||||||||
Cash, Cash Equivalents and Restricted Cash | ||||||||||||||||
Cash and cash equivalents1, 2 | $ | 3,243 | $ | 721 | ||||||||||||
Restricted cash | 1 | 2 | ||||||||||||||
Cash, cash equivalents and restricted cash | $ | 3,244 | $ | 723 | ||||||||||||
Debt Obligations | ||||||||||||||||
Senior Secured Credit Facilities: | ||||||||||||||||
Revolving Credit Facility | $ | — | $ | 75 | ||||||||||||
Term Loan Facilities | 5,025 | 5,725 | ||||||||||||||
Senior Secured Notes | 5,451 | 4,948 | ||||||||||||||
Senior Unsecured Notes | 15,407 | 13,545 | ||||||||||||||
Other | 12 | 12 | ||||||||||||||
Total long-term debt and other, net of premiums, discounts and issuance costs | 25,895 | 24,305 | ||||||||||||||
Plus: Unamortized premiums, discounts and issuance costs | 293 | 327 | ||||||||||||||
Total long-term debt and other | $ | 26,188 | $ | 24,632 | ||||||||||||
Maturities and Mandatory Payments of Debt Obligations | ||||||||||||||||
2019 | $ | — | $ | 228 | ||||||||||||
20201 | 1,240 | 303 | ||||||||||||||
2021 | 103 | 1,003 | ||||||||||||||
2022 | 1,553 | 1,553 | ||||||||||||||
2023 | 2,595 | 6,348 | ||||||||||||||
2024 | 2,303 | 2,303 | ||||||||||||||
2025 | 10,632 | 10,632 | ||||||||||||||
2026 - 2030 | 7,762 | 2,262 | ||||||||||||||
Total debt obligations | $ | 26,188 | $ | 24,632 | ||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Cash provided by operating activities | $ | 234 | $ | 319 | $ | 1,501 | $ | 1,501 |
Document |
Feb. 19, 2020 |
---|---|
Cover page. | |
Document Type | 8-K |
Document Period End Date | Feb. 19, 2020 |
Entity Registrant Name | Bausch Health Companies Inc. |
Entity Incorporation, State or Country Code | A1 |
Entity Address, Country | CA |
Entity File Number | 001-14956 |
Entity Tax Identification Number | 98-0448205 |
Entity Address, Address Line One | 2150 St. Elzéar Blvd. West |
Entity Address, City or Town | Laval |
Entity Address, State or Province | QC |
Entity Address, Postal Zip Code | H7L 4A8 |
City Area Code | 514 |
Local Phone Number | 744-6792 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Shares, No Par Value |
Trading Symbol | BHC |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000885590 |
Amendment Flag | false |
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