ANI Pharmaceuticals Reports Second Quarter 2022 Financial Results; Reports Record Net Revenues and Raises Full-Year 2022 Net Revenue Guidance for Purified Cortrophin® Gel
Second Quarter 2022 Results:
-- Net revenues of
-- Lead Rare Disease asset, Purified Cortrophin® Gel (Repository Corticotrophin Injection USP) 80 U/ml (Cortrophin) net sales of
-- Adjusted non-GAAP EBITDA of
-- Year-over-year net revenue growth of 52% --
Full-Year 2022 Guidance:
-- Reiterates total Company net revenue guidance of
-- Raises Cortrophin 2022 net revenue guidance to
Company Highlights:
-- Strong launch trajectory for Cortrophin persists with ~500 cases initiated from more than 250 unique prescribers coupled with expanded market access leading to over 134 million lives on formulary --
-- Generics business ranked sixth in number of ANDAs approved in last 12 months; launched several limited competition new products; acquired four ANDAs from
-- Announced consolidation of manufacturing network with expected closing of
-- Appointed
“Second quarter net revenues of
“Our generics business unit remains focused on bringing new products to patients and customers, and I’m proud to share that ANI is now ranked sixth among all companies in terms of number of ANDA approvals received in the past 12 months. In addition, we continued to drive cost competitiveness by consolidating our manufacturing network and realizing further operational efficiencies. Overall, we believe that ANI is well positioned for sustainable growth and continuing to serve patients in need,” concluded Lalwani.
Second Quarter 2022 Financial Highlights:
-
Net revenues were
$73.9 million compared to$48.6 million in Q2 2021. -
GAAP net loss available to common shareholders was
$(15.3) million , and diluted GAAP loss per share was$(0.94) . -
Adjusted non-GAAP EBITDA was
$9.9 million compared to$13.1 million in Q2 2021. -
Adjusted non-GAAP diluted earnings per share was
$0.13 , compared to diluted earnings per share of$0.67 in Q2 2021. -
Cash and cash equivalents were
$63.4 million , net accounts receivable was$150.4 million , and face value of debt was$298.5 million as ofJune 30, 2022 .
Cortrophin Launch Update:
The Company raises its revenue guidance for Cortrophin to be in the range of
Key highlights (as of
-
Launch Trajectory: Since the Company’s last earnings report, new patient cases initiated have doubled. As of
August 5 , approximately 500 new cases have been initiated. The Company is also seeing meaningful improvement across conversion rates from enrollment to fulfillment. The Company has continued to strengthen its infrastructure, including expansion of its hub, patient support services and distribution network. -
Physician Interest: The prescriber base has also doubled to more than 250 unique prescribers as of
August 5 . Approximately one third of the prescribers have written multiple prescriptions. Prescriptions continue to be distributed across our targeted specialties. -
Patient Access: Our consistent efforts to bring savings to the healthcare system have resulted in expanded market access with over 134 million lives on formulary. Notably, on
July 1 , Cortrophin was added to the formulary for United Healthcare’s commercial and managed Medicaid plans.
Generics Growth Engine Update:
Sales of generic pharmaceuticals products grew 46% year-over-year in the second quarter. The Company remains focused on growing its new product pipeline and driving cost competitiveness.
- Focus on R&D Excellence: During the first six months of 2022, ANI has filed 8 ANDAs, and in the second quarter successfully launched multiple limited competition products. ANI is now ranked sixth in terms of ANDA approvals received in the past 12 months.
-
Operational Synergies: During the quarter, the Company announced its intention to consolidate manufacturing operations and cease operations at the
Oakville, Ontario, Canada manufacturing. With the additional manufacturing capacity gained as part of the Novitium acquisition, ANI can support future growth and continue serving customers through its remaining facilities. Once fully executed, this operational efficiency is expected to improve profitability and cash flow by$7 million to$8 million on an annualized basis. The Company currently expects one-time cash charges of approximately$3.1 million and non-cash charges of$4.5 million in conjunction with this action. - Business Development: The Company continues to be active on the business development front and acquired four limited competition ANDAs from Oakrum Pharma in July. The Company expects to launch these products and see the value unlock in 2023.
Second Quarter 2022 Financial Results
| Three Months Ended | ||||||
| Products and Services |
|
|
||||
| (in thousands) |
|
2022 |
|
2021 |
||
| Sales of generic pharmaceutical products |
$ |
49,863 |
$ |
34,199 |
||
| Sales of established brand pharmaceutical products |
|
8,463 |
|
11,038 |
||
| Sales of rare disease pharmaceutical products |
|
10,202 |
|
— |
||
| Sales of contract manufactured products |
|
4,389 |
|
2,322 |
||
| Royalties from licensing agreements |
|
194 |
|
— |
||
| Product development services |
|
531 |
|
97 |
||
| Other |
|
213 |
|
969 |
||
| Total net revenues |
$ |
73,855 |
$ |
48,625 |
||
Net revenues for generic pharmaceutical products were
Net revenues for branded pharmaceutical products were
Contract manufacturing revenues were
Net revenues of rare disease pharmaceutical products were
Operating expenses increased by 35% to
Cost of sales, excluding depreciation and amortization, increased by
Research and development expenses were
Selling, general and administrative expenses increased to
Depreciation and amortization increased by 22% in the second quarter of 2022 to
Net loss available to common shareholders for the second quarter of 2022 was
Adjusted non-GAAP diluted earnings per share was
For reconciliations of adjusted non-GAAP EBITDA and adjusted non-GAAP diluted earnings per share to the most directly comparable GAAP financial measure, please see Table 3 and Table 4, respectively.
Liquidity
As of
2022 GUIDANCE
The following summarizes 2022 guidance:
- Net Revenue between
- Research and Development expense between
- Adjusted non-GAAP EBITDA between
- Adjusted non-GAAP Diluted Earnings per Share between
Purified Cortrophin Gel specific measures:
- Revised Net Revenue between
- Direct Selling, General and Administrative expenses between
In addition, we currently anticipate between 16.9 and 17.0 million shares outstanding and an effective tax rate of approximately 24% prior to any federal tax reform.
Conference Call
As previously announced, ANI management will host its second quarter 2022 conference call as follows:
|
Date |
|
|
|
Time |
|
|
|
Toll free ( |
800-225-9448 |
|
|
Global |
203-518-9708 |
Webcast (live and replay) www.anipharmaceuticals.com, under the “Investors” section
A replay of the conference call will be available within two hours of the call’s completion and will remain accessible for one week by dialing 800-753-6121 and entering access code 7163806.
Non-GAAP Financial Measures
Adjusted non-GAAP EBITDA
ANI’s management considers adjusted non-GAAP EBITDA to be an important financial indicator of ANI’s operating performance, providing investors and analysts with a useful measure of operating results unaffected by non-cash stock-based compensation and differences in capital structures, tax structures, capital investment cycles, ages of related assets, and compensation structures among otherwise comparable companies. Management uses adjusted non-GAAP EBITDA when analyzing Company performance.
Adjusted non-GAAP EBITDA is defined as net (loss)/income, excluding tax expense or benefit, interest expense, (net), other expense, (net), depreciation, amortization, the excess of fair value over cost of acquired inventory, non-cash stock-based compensation expense, Novitium transaction expenses, Cortrophin pre-launch charges, contingent consideration fair value adjustment, and certain other items that vary in frequency and impact on ANI’s results of operations. Adjusted non-GAAP EBITDA should be considered in addition to, but not in lieu of, net income or loss reported under GAAP. A reconciliation of adjusted non-GAAP EBITDA to the most directly comparable GAAP financial measure is provided below.
ANI is not providing a reconciliation for the forward-looking full year 2022 adjusted EBITDA guidance because it does not currently have sufficient information to accurately estimate all of the variables and individual adjustments for such reconciliation, including “with” and “without” tax provision information. As such, ANI’s management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results.
Adjusted non-GAAP Net (Loss)/Income
ANI’s management considers adjusted non-GAAP net (loss)/income to be an important financial indicator of ANI’s operating performance, providing investors and analysts with a useful measure of operating results unaffected by the excess of fair value over cost of acquired inventory sold, non-cash stock-based compensation, non-cash interest expense, depreciation and amortization, Cortrophin pre-launch charges, Novitium transaction expenses, contingent consideration fair value adjustment, and certain other items that vary in frequency and impact on ANI’s results of operations. Management uses adjusted non-GAAP net (loss)/income when analyzing Company performance.
Adjusted non-GAAP net (loss)/income is defined as net (loss)/income, plus the excess of fair value over cost of acquired inventory sold, non-cash stock-based compensation expense, Novitium transaction expenses, non-cash interest expense, depreciation and amortization expense, Cortrophin pre-launch charges, contingent consideration fair value adjustment, and certain other items that vary in frequency and impact on ANI’s results of operations, less the tax impact of these adjustments calculated using an estimated statutory tax rate. Management will continually analyze this metric and may include additional adjustments in the calculation in order to provide further understanding of ANI’s results. Adjusted non-GAAP net (loss)/income should be considered in addition to, but not in lieu of, net (loss)/income reported under GAAP. A reconciliation of adjusted non-GAAP net (loss)/income to the most directly comparable GAAP financial measure is provided below.
Adjusted non-GAAP Diluted (Loss)/Earnings per Share
ANI’s management considers adjusted non-GAAP diluted (loss)/earnings per share to be an important financial indicator of ANI’s operating performance, providing investors and analysts with a useful measure of operating results unaffected by the excess of fair value over cost of acquired inventory sold, non-cash stock-based compensation, non-cash interest expense, depreciation and amortization, Cortrophin pre-launch charges, Novitium transaction expenses, contingent consideration fair value adjustment, and certain other items that vary in frequency and impact on ANI’s results of operations. Management uses adjusted non-GAAP diluted (loss)/earnings per share when analyzing Company performance.
Adjusted non-GAAP diluted (loss)/earnings per share is defined as adjusted non-GAAP net (loss)/income, as defined above, divided by the diluted weighted average shares outstanding during the period. Management will continually analyze this metric and may include additional adjustments in the calculation in order to provide further understanding of ANI’s results. Adjusted non-GAAP diluted (loss)/earnings per share should be considered in addition to, but not in lieu of, diluted earnings or loss per share reported under GAAP. A reconciliation of adjusted non-GAAP diluted (loss)/earnings per share to the most directly comparable GAAP financial measure is provided below.
About ANI
Forward-Looking Statements
To the extent any statements made in this release relate to information that is not historical, these are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding 2022 Financial Guidance, statements about the Company’s corporate strategy, future operations, product development and launches, financial performance, financial position, operating results and prospects, including plans for sustainable growth, the successful commercialization of products, and other statements that are not historical in nature, particularly those that utilize terminology such as “anticipates,” “will,” “expects,” “plans,” “potential,” “future,” “believes,” “intends,” “continue,” other words of similar meaning, derivations of such words and the use of future dates.
Uncertainties and risks may cause the Company’s actual results to be materially different than those expressed in or implied by such forward-looking statements. Uncertainties and risks include, but are not limited to, the costs involved in commercializing Cortrophin, the ability to maintain regulatory approval of the product and maintain sufficiency of the product, the ability to obtain reimbursement from third-party payors for this product, evolving government legislation, the opinions and views of key opinion leaders and physicians who treat patients with chronic diseases and who may prescribe Cortrophin, ANI’s ability to generate projected net product revenue and gain market share on the timeline expected, actions taken by competitors in response to a new market entrant; the ability of the Company to successfully maintain manufacturing capabilities and adequate commercial quantities of Cortrophin at acceptable costs and quality levels; broad acceptance of Cortrophin by physicians, patients and the healthcare community; the acceptance of pricing and placement of Cortrophin on payers’ formularies; risks the Company may face with respect to importing raw materials; the use of single source suppliers and the time it may take to validate and qualify another supplier, if necessary; manufacturing difficulties or delays, ANI’s reliance on third parties over which it may not always have full control, increased competition and strategies employed by competitors; the ability to realize benefits anticipated from acquisitions, including but not limited to, post-close integration activities related to the Novitium acquisition; disruptions to our operations resulting from the anticipated closure of our
More detailed information on these and additional factors that could affect the Company’s actual results are described in the Company’s filings with the
For more details, visit www.cortrophin.com.
|
|
||||||||||||||||
| Table 1: US GAAP Statement of Operations | ||||||||||||||||
| (unaudited, in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||
| Net Revenues |
$ |
73,855 |
|
$ |
48,625 |
|
$ |
138,332 |
|
$ |
103,146 |
|
||||
| Operating Expenses: | ||||||||||||||||
| Cost of sales (excl. depreciation and amortization) |
|
35,294 |
|
|
22,314 |
|
|
69,565 |
|
|
42,299 |
|
||||
| Research and development |
|
4,165 |
|
|
2,805 |
|
|
9,439 |
|
|
5,773 |
|
||||
| Selling, general, and administrative |
|
31,958 |
|
|
18,820 |
|
|
60,775 |
|
|
36,407 |
|
||||
| Depreciation and amortization |
|
13,764 |
|
|
11,324 |
|
|
28,321 |
|
|
22,222 |
|
||||
| Contingent consideration fair value adjustment |
|
(1,095 |
) |
|
- |
|
|
(342 |
) |
|
- |
|
||||
| Legal settlement expense |
|
- |
|
|
8,400 |
|
|
- |
|
|
8,400 |
|
||||
| Purified Cortrophin Gel pre-launch charges |
|
- |
|
|
515 |
|
|
- |
|
|
553 |
|
||||
| Restructuring activities |
|
2,570 |
|
|
- |
|
|
2,570 |
|
|
- |
|
||||
| Intangible asset impairment charge |
|
112 |
|
|
- |
|
|
112 |
|
|
- |
|
||||
| Total Operating Expenses |
|
86,768 |
|
|
64,178 |
|
|
170,440 |
|
|
115,654 |
|
||||
| Operating Loss |
|
(12,913 |
) |
|
(15,553 |
) |
|
(32,108 |
) |
|
(12,508 |
) |
||||
| Other Expense, Net | ||||||||||||||||
| Interest expense, net |
|
(6,669 |
) |
|
(2,531 |
) |
|
(13,282 |
) |
|
(4,985 |
) |
||||
| Other income/(expense), net |
|
764 |
|
|
(67 |
) |
|
675 |
|
|
(582 |
) |
||||
| Loss Before Benefit for Income Taxes |
|
(18,818 |
) |
|
(18,151 |
) |
|
(44,715 |
) |
|
(18,075 |
) |
||||
| Benefit for income taxes |
|
3,895 |
|
|
4,045 |
|
|
9,662 |
|
|
4,055 |
|
||||
| Net Loss |
$ |
(14,923 |
) |
$ |
(14,106 |
) |
$ |
(35,053 |
) |
$ |
(14,020 |
) |
||||
| Dividends on Series A Convertible Preferred Stock |
|
(407 |
) |
|
- |
|
|
(812 |
) |
|
- |
|
||||
| Net Loss Available to Common Shareholders |
$ |
(15,330 |
) |
$ |
(14,106 |
) |
$ |
(35,865 |
) |
$ |
(14,020 |
) |
||||
| Basic and Diluted Loss Per Share: | ||||||||||||||||
| Basic Loss Per Share |
$ |
(0.94 |
) |
$ |
(1.17 |
) |
$ |
(2.21 |
) |
$ |
(1.16 |
) |
||||
| Diluted Loss Per Share |
$ |
(0.94 |
) |
$ |
(1.17 |
) |
$ |
(2.21 |
) |
$ |
(1.16 |
) |
||||
| Basic Weighted-Average Shares Outstanding |
|
16,272 |
|
|
12,085 |
|
|
16,205 |
|
|
12,045 |
|
||||
| Diluted Weighted-Average Shares Outstanding |
|
16,272 |
|
|
12,085 |
|
|
16,205 |
|
|
12,045 |
|
||||
| Table 2: US GAAP Balance Sheets | ||||||||
| (unaudited, in thousands) | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents |
$ |
63,385 |
|
$ |
100,300 |
|
||
| Accounts receivable, net |
|
150,410 |
|
|
128,526 |
|
||
| Inventories, net |
|
92,545 |
|
|
81,693 |
|
||
| Prepaid income taxes |
|
2,013 |
|
|
3,667 |
|
||
| Assets held for sale |
|
8,020 |
|
|
- |
|
||
| Prepaid expenses and other current assets |
|
6,026 |
|
|
7,589 |
|
||
| Total Current Assets |
|
322,399 |
|
|
321,775 |
|
||
| Non-current Assets | ||||||||
| Property and equipment |
|
71,042 |
|
|
75,627 |
|
||
| Accumulated depreciation |
|
(27,271 |
) |
|
(22,956 |
) |
||
| Property and equipment, net |
|
43,771 |
|
|
52,671 |
|
||
| Restricted cash |
|
5,001 |
|
|
5,001 |
|
||
| Deferred tax assets, net of deferred tax liabilities and valuation allowance |
|
76,587 |
|
|
67,936 |
|
||
| Intangible assets, net |
|
269,593 |
|
|
294,122 |
|
||
|
|
28,221 |
|
|
27,888 |
|
|||
| Derivatives and other non-current assets |
|
5,762 |
|
|
2,205 |
|
||
| Total Assets |
$ |
751,334 |
|
$ |
771,598 |
|
||
| Current Liabilities | ||||||||
| Current debt, net of deferred financing costs |
$ |
850 |
|
$ |
850 |
|
||
| Accounts payable |
|
27,641 |
|
|
22,967 |
|
||
| Accrued royalties |
|
6,295 |
|
|
6,225 |
|
||
| Accrued compensation and related expenses |
|
5,682 |
|
|
8,522 |
|
||
| Accrued government rebates |
|
9,440 |
|
|
5,492 |
|
||
| Returned goods reserve |
|
34,899 |
|
|
35,831 |
|
||
| Accrued expenses and other |
|
11,505 |
|
|
7,650 |
|
||
| Total Current Liabilities |
|
96,312 |
|
|
87,537 |
|
||
| Non-current Liabilities | ||||||||
| Non-current debt, net of deferred financing costs and current component |
|
286,095 |
|
|
286,520 |
|
||
| Non-current contingent consideration |
|
30,958 |
|
|
31,000 |
|
||
| Derivatives and other non-current liabilities |
|
1,011 |
|
|
7,801 |
|
||
| Total Liabilities |
|
414,376 |
|
|
412,858 |
|
||
| Mezzanine Equity | ||||||||
| Convertible preferred stock, Series A |
|
24,850 |
|
|
24,850 |
|
||
| Stockholders' Equity | ||||||||
| Common stock |
|
1 |
|
|
1 |
|
||
|
|
(4,736 |
) |
|
(3,135 |
) |
|||
| Additional paid-in capital |
|
395,043 |
|
|
387,844 |
|
||
| Accumulated deficit |
|
(83,630 |
) |
|
(47,765 |
) |
||
| Accumulated other comprehensive income/(loss), net of tax |
|
5,430 |
|
|
(3,055 |
) |
||
| Total Stockholders' Equity |
|
312,108 |
|
|
333,890 |
|
||
| Total Liabilities, Mezzanine Equity, and Stockholders' Equity |
$ |
751,334 |
|
$ |
771,598 |
|
||
|
|
||||||||||||||||||||||||||||||||||||
|
Table 3: Adjusted non-GAAP EBITDA Calculation and US GAAP to Non-GAAP Reconciliation |
||||||||||||||||||||||||||||||||||||
|
(unaudited, in thousands) |
||||||||||||||||||||||||||||||||||||
| Reconciliation of certain adjusted non-GAAP accounts: | ||||||||||||||||||||||||||||||||||||
| Net Revenues | Cost of sales (excl. depreciation and amortization) | Selling, general, and administrative expenses | Research and development expenses | |||||||||||||||||||||||||||||||||
| Three Months Ended |
Three Months Ended |
Three Months Ended |
Three Months Ended |
Three Months Ended |
||||||||||||||||||||||||||||||||
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
| Net Loss |
$ |
(14,923 |
) |
$ |
(14,106 |
) |
As reported: |
$ |
73,855 |
|
$ |
48,625 |
$ |
35,294 |
|
$ |
22,314 |
|
$ |
31,958 |
|
$ |
18,820 |
|
$ |
4,165 |
|
$ |
2,805 |
|
||||||
| Add/(Subtract): | ||||||||||||||||||||||||||||||||||||
| Interest expense, net |
|
6,669 |
|
|
2,531 |
|
||||||||||||||||||||||||||||||
| Other (income)/expense, net(1) |
|
(14 |
) |
|
67 |
|
||||||||||||||||||||||||||||||
| Benefit for income taxes |
|
(3,895 |
) |
|
(4,045 |
) |
||||||||||||||||||||||||||||||
| Depreciation and amortization |
|
13,764 |
|
|
11,324 |
|
||||||||||||||||||||||||||||||
| Contingent consideration fair value adjustment |
|
(1,095 |
) |
|
- |
|
||||||||||||||||||||||||||||||
| Legal settlement expense |
|
- |
|
|
8,400 |
|
||||||||||||||||||||||||||||||
| Intangible asset impairment charge |
|
112 |
|
|
- |
|
||||||||||||||||||||||||||||||
| Restructuring activities |
|
2,570 |
|
|
- |
|
||||||||||||||||||||||||||||||
| Impact of |
|
1,820 |
|
|
- |
|
Impact of |
|
(1,045 |
) |
|
(1,249 |
) |
|
(1,545 |
) |
|
(71 |
) |
|||||||||||||||||
| Cortrophin pre-launch charges and sales & marketing expenses(3) |
|
- |
|
|
2,902 |
|
Cortrophin pre-launch charges and sales & marketing expenses(3) |
|
- |
|
|
- |
|
|
- |
|
|
(2,387 |
) |
|
- |
|
|
- |
|
|||||||||||
| Stock-based compensation |
|
3,756 |
|
|
2,844 |
|
Stock-based compensation |
|
(144 |
) |
|
(6 |
) |
|
(3,417 |
) |
|
(2,683 |
) |
|
(195 |
) |
|
(155 |
) |
|||||||||||
| Excess of fair value over cost of acquired inventory |
|
973 |
|
|
1,492 |
|
Excess of fair value over cost of acquired inventory |
|
(973 |
) |
|
(1,492 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||||||
| Novitium transaction expenses |
|
124 |
|
|
1,690 |
|
Novitium transaction expenses |
|
- |
|
|
- |
|
|
(124 |
) |
|
(1,690 |
) |
|
- |
|
|
- |
|
|||||||||||
| Adjusted non-GAAP EBITDA |
$ |
9,861 |
|
$ |
13,099 |
|
As adjusted: |
$ |
72,810 |
|
$ |
48,625 |
$ |
32,928 |
|
$ |
20,816 |
|
$ |
26,872 |
|
$ |
12,060 |
|
$ |
3,899 |
|
$ |
2,650 |
|
||||||
| (1) Adjustment to Other (income)/expense, net excludes |
||||||||||||||||||||||||||||||||||||
| (2) Impact of |
||||||||||||||||||||||||||||||||||||
| (3) Beginning in 2022, we no longer adjust for "Cortrophin pre-launch charges and sales and marketing expenses" in arriving at Adjusted non-GAAP EBITDA. | ||||||||||||||||||||||||||||||||||||
| Reconciliation of certain adjusted non-GAAP accounts: | ||||||||||||||||||||||||||||||||||||
| Net Revenues | Cost of sales (excl. depreciation and amortization) | Selling, general, and administrative expenses | Research and development expenses | |||||||||||||||||||||||||||||||||
| Six Months Ended |
Six Months Ended |
Six Months Ended |
Six Months Ended |
Six Months Ended |
||||||||||||||||||||||||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||||||
| Net Loss |
$ |
(35,053 |
) |
$ |
(14,020 |
) |
As reported: |
$ |
138,332 |
|
$ |
103,146 |
$ |
69,565 |
|
$ |
42,299 |
|
$ |
60,775 |
|
$ |
36,407 |
|
$ |
9,439 |
|
$ |
5,773 |
|
||||||
| Add/(Subtract): | ||||||||||||||||||||||||||||||||||||
| Interest expense, net |
|
13,282 |
|
|
4,985 |
|
||||||||||||||||||||||||||||||
| Other (income)/expense, net(1) |
|
75 |
|
|
582 |
|
||||||||||||||||||||||||||||||
| Benefit for income taxes |
|
(9,662 |
) |
|
(4,055 |
) |
||||||||||||||||||||||||||||||
| Depreciation and amortization |
|
28,321 |
|
|
22,222 |
|
||||||||||||||||||||||||||||||
| Contingent consideration fair value adjustment |
|
(342 |
) |
|
- |
|
||||||||||||||||||||||||||||||
| Legal settlement expense |
|
- |
|
|
8,400 |
|
||||||||||||||||||||||||||||||
| Intangible asset impairment charge |
|
112 |
|
|
- |
|
||||||||||||||||||||||||||||||
| Restructuring activities |
|
2,570 |
|
|
- |
|
||||||||||||||||||||||||||||||
| Impact of |
|
1,820 |
|
|
- |
|
Impact of |
|
(1,045 |
) |
|
(1,249 |
) |
|
(1,545 |
) |
|
(71 |
) |
|||||||||||||||||
| Cortrophin pre-launch charges and sales & marketing expenses(3) |
|
- |
|
|
3,044 |
|
Cortrophin pre-launch charges and sales & marketing expenses(3) |
|
- |
|
|
- |
|
|
- |
|
|
(2,490 |
) |
|
- |
|
|
- |
|
|||||||||||
| Stock-based compensation |
|
6,992 |
|
|
4,713 |
|
Stock-based compensation |
|
(288 |
) |
|
(10 |
) |
|
(6,338 |
) |
|
(4,429 |
) |
|
(366 |
) |
|
(274 |
) |
|||||||||||
| Excess of fair value over cost of acquired inventory |
|
4,802 |
|
|
1,492 |
|
Excess of fair value over cost of acquired inventory |
|
(4,802 |
) |
|
(1,492 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||||||
| Novitium transaction expenses |
|
1,217 |
|
|
4,633 |
|
Novitium transaction expenses |
|
- |
|
|
- |
|
|
(1,217 |
) |
|
(4,633 |
) |
|
- |
|
|
- |
|
|||||||||||
| Adjusted non-GAAP EBITDA |
$ |
14,134 |
|
$ |
31,996 |
|
As adjusted: |
$ |
137,287 |
|
$ |
103,146 |
$ |
63,226 |
|
$ |
40,797 |
|
$ |
51,675 |
|
$ |
24,855 |
|
$ |
9,002 |
|
$ |
5,499 |
|
||||||
| (1) Adjustment to Other (income)/expense, net excludes |
||||||||||||||||||||||||||||||||||||
| (2) Impact of |
||||||||||||||||||||||||||||||||||||
| (3) Beginning in 2022, we no longer adjust for "Cortrophin pre-launch charges and sales and marketing expenses" in arriving at Adjusted non-GAAP EBITDA. | ||||||||||||||||||||||||||||||||||||
| Table 4: Adjusted non-GAAP Net Income and Adjusted non-GAAP Diluted Earnings per Share Reconciliation | ||||||||||||||||
| (unaudited, in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||
| Net Loss Available to Common Shareholders |
$ |
(15,330 |
) |
$ |
(14,106 |
) |
$ |
(35,865 |
) |
$ |
(14,020 |
) |
||||
| Add/(Subtract): | ||||||||||||||||
| Non-cash interest expense |
|
967 |
|
|
539 |
|
|
1,920 |
|
|
1,085 |
|
||||
| Depreciation and amortization expense |
|
13,764 |
|
|
11,324 |
|
|
28,321 |
|
|
22,222 |
|
||||
| Contingent consideration fair value adjustment |
|
(1,095 |
) |
|
- |
|
|
(342 |
) |
|
- |
|
||||
| Restructuring activities |
|
2,570 |
|
|
- |
|
|
2,570 |
|
|
- |
|
||||
| Legal settlement expense |
|
- |
|
|
8,400 |
|
|
- |
|
|
8,400 |
|
||||
| Intangible asset impairment charge |
|
112 |
|
|
- |
|
|
112 |
|
|
- |
|
||||
| Impact of |
|
1,820 |
|
|
- |
|
|
1,820 |
|
|
- |
|
||||
| Cortrophin pre-launch charges and sales & marketing expenses(2) |
|
- |
|
|
2,902 |
|
|
- |
|
|
3,044 |
|
||||
| Stock-based compensation |
|
3,756 |
|
|
2,844 |
|
|
6,992 |
|
|
4,713 |
|
||||
| Excess of fair value over cost of acquired inventory |
|
973 |
|
|
1,492 |
|
|
4,802 |
|
|
1,492 |
|
||||
| Novitium transaction expenses |
|
124 |
|
|
1,690 |
|
|
1,217 |
|
|
4,633 |
|
||||
| Less: | ||||||||||||||||
| Estimated tax impact of adjustments (calc. at 24%) |
|
(5,518 |
) |
|
(7,006 |
) |
|
(11,379 |
) |
|
(10,941 |
) |
||||
| Adjusted non-GAAP Net Income Available to Common Shareholders |
$ |
2,143 |
|
$ |
8,080 |
|
$ |
168 |
|
$ |
20,627 |
|
||||
| Diluted Weighted-Average | ||||||||||||||||
| Shares Outstanding |
|
16,272 |
|
|
12,085 |
|
|
16,205 |
|
|
12,045 |
|
||||
| Adjusted Diluted Weighted-Average | ||||||||||||||||
| Shares Outstanding |
|
16,282 |
|
|
12,100 |
|
|
16,218 |
|
|
12,059 |
|
||||
| Adjusted non-GAAP | ||||||||||||||||
| Diluted Earnings per Share |
$ |
0.13 |
|
$ |
0.67 |
|
$ |
0.01 |
|
$ |
1.71 |
|
||||
| (1) Impact of |
||||||||||||||||
| (2) Beginning in 2022, we no longer adjust for "Cortrophin pre-launch charges and sales and marketing expenses" in arriving at Adjusted non-GAAP Net Loss. | ||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220808005200/en/
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