— Revenues From the Company’s Five Key Commercial Products Grew 22%
Year-Over-Year to
— Company Reports Non-GAAP Diluted EPS of
“This was another strong quarter for
“Alkermes’ strong financial foundation from our commercial product
portfolio, coupled with our expanding pipeline of development
candidates, creates opportunities for exceptional value and growth,”
commented Richard Pops, Chief Executive Officer of
Quarter Ended
-
Total revenues for the quarter were
$138.6 million . This compared to total revenues of$152.2 million for the same period in the prior year, which included$20.0 million of intellectual property license revenue unrelated to key development programs. -
Revenues from the company’s five key commercial products for the
quarter grew 22% to
$98.9 million , from$81.2 million for the same period in the prior year. -
Non-GAAP net income for the quarter was
$42.9 million , or a non-GAAP diluted earnings per share (EPS) of$0.30 . This compared to non-GAAP net income of$53.0 million , or a non-GAAP diluted EPS of$0.39 , for the same period in the prior year, which included$20.0 million , or$0.15 per diluted share, of intellectual property license revenue. -
GAAP net income for the quarter was
$7.3 million , or a basic and diluted GAAP EPS of$0.05 . This compared to GAAP net income of$22.4 million , or a basic and diluted GAAP EPS of$0.17 , for the same period in the prior year, which included$20.0 million , or$0.15 per diluted share, of intellectual property license revenue. -
Free cash flow for the quarter was
$39.2 million . This compared to$46.2 million for the same period in the prior year, which included$20.0 million of intellectual property license revenue. -
The company reiterated its financial expectations for the nine-month
period ending
Dec. 31, 2013 , which were originally provided onMay 23, 2013 .
Quarter Ended
Revenues
-
Manufacturing and royalty revenues from the company’s long-acting
atypical antipsychotic franchise, RISPERDAL® CONSTA®
and INVEGA® SUSTENNA®/XEPLION®, were
$56.2 million , compared to$48.6 million for the same period in the prior year. Worldwide end-market sales of RISPERDAL CONSTA and INVEGA SUSTENNA/XEPLIONwere approximately$627 million , compared to approximately$550 million in the same period in the prior year. -
Manufacturing and royalty revenues from AMPYRA®/FAMPYRA®1
were
$19.9 million , compared to$17.2 million for the same period in the prior year. -
Net sales of VIVITROL® were
$17.4 million , compared to$12.4 million for the same period in the prior year, representing an increase of approximately 40% year over year. -
Royalty revenue from BYDUREON® was
$5.4 million , compared to$3.0 million for the same period in the prior year. -
Additionally, results for the quarter included RITALIN LA®/FOCALIN
XR® revenues of
$11.2 million , VERELAN® revenues of$6.5 million andTRICOR ® 145 revenues of$4.1 million . This compared to RITALIN LA/FOCALIN XR revenues of$10.9 million , VERELAN revenues of$6.0 million andTRICOR 145 revenues of$12.0 million for the same period in the prior year.
Costs and Expenses
-
Operating expenses were
$125.1 million . This compared to operating expenses of$120.1 million for the same period in the prior year. -
Net interest expense was
$3.3 million . This compared to net interest expense of$9.9 million for the same period in the prior year. The reduction was driven by the successful refinancing and repricing of the company’s term loans completed in 2012 and 2013, respectively.
Balance Sheet
-
At
June 30, 2013 ,Alkermes recorded cash and total investments of$325.0 million , compared to$304.2 million atMarch 31, 2013 .
Conference Call
About
Non-GAAP Financial Measures
This press release includes information about certain financial measures that are not prepared in accordance with generally accepted accounting principles in the U.S. (GAAP), including non-GAAP net income, non-GAAP diluted earnings per share and free cash flow. These non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies.
Management defines its non-GAAP financial measures as follows:
- Non-GAAP net income adjusts for one-time and non-cash charges by excluding from GAAP results: share-based compensation expense; amortization; depreciation; non-cash net interest expense; non-cash tax expense; deferred revenue; and certain other one-time or non-cash items.
- Free cash flow represents non-GAAP net income less capital expenditures.
Management believes that these non-GAAP financial measures, when viewed with our results under GAAP and the accompanying reconciliations, better indicate underlying trends in ongoing operations and cash flows. However, non-GAAP net income, non-GAAP diluted earnings per share and free cash flow are not measures of financial performance under GAAP and, accordingly, should not be considered as alternatives to GAAP measures as indicators of operating performance.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release.
Note Regarding Forward-Looking Statements
Certain statements set forth above may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to: statements concerning future financial and operating performance, business plans or prospects; the likelihood of continued revenue growth from the company’s commercial products; the therapeutic and commercial value of the company’s products; and our expectations concerning the timing and results of our clinical development activities. These statements are neither promises nor guarantees and are subject to a variety of risks and uncertainties, many of which are beyond the company’s control, which could cause actual results to differ materially from those contemplated in these forward-looking statements.
These risks and uncertainties include, among others: clinical
development activities may not be completed on time or at all and the
results of such activities may not be predictive of real-world results
or of results in subsequent clinical trials; the company, and its
partners, may not be able to continue to successfully commercialize its
products; there may occur a reduction in payment rate or reimbursement
for the company’s products or an increase in the company’s financial
obligations to governmental payers; adverse decisions by the
VIVITROL® is a registered trademark of
1AMPYRA® (dalfampridine) Extended Release Tablets,
10 mg is developed and marketed in the U.S. by
Alkermes plc and Subsidiaries Selected Financial Information (Unaudited) |
||||||
Three Months | Three Months | |||||
Ended | Ended | |||||
Condensed Consolidated Statements of Operations - GAAP | June 30, | June 30, | ||||
(In thousands, except per share data) | 2013 | 2012 | ||||
Revenues: | ||||||
Manufacturing and royalty revenues | $ 119,788 | $ 138,380 | ||||
Product sales, net | 17,379 | 12,372 | ||||
Research and development revenue | 1,464 | 1,487 | ||||
Total Revenues | 138,631 | 152,239 | ||||
Expenses: | ||||||
Cost of goods manufactured and sold | 45,991 | 42,070 | ||||
Research and development | 33,462 | 37,806 | ||||
Selling, general and administrative | 32,933 | 29,784 | ||||
Amortization of acquired intangible assets | 12,716 | 10,434 | ||||
Total Expenses | 125,102 | 120,094 | ||||
Operating Income | 13,529 | 32,145 | ||||
Other (Expense), net: | ||||||
Interest income | 161 | 299 | ||||
Interest expense | (3,468 | ) | (10,170 | ) | ||
Other (expense) income, net | (170 | ) | 923 | |||
Total Other (Expense), net | (3,477 | ) | (8,948 | ) | ||
Income Before Income Taxes | 10,052 | 23,197 | ||||
Provision for Income Taxes | 2,718 | 764 | ||||
Net Income — GAAP | $ 7,334 | $ 22,433 | ||||
Earnings Per Share: | ||||||
GAAP earnings per share — basic and diluted | $ 0.05 | $ 0.17 | ||||
Non-GAAP earnings per share — basic | $ 0.32 | $ 0.41 | ||||
Non-GAAP earnings per share — diluted | $ 0.30 | $ 0.39 | ||||
Weighted Average Number of Ordinary Shares Outstanding: | ||||||
Basic — GAAP and Non-GAAP | 134,602 | 130,434 | ||||
Diluted — GAAP and Non-GAAP | 143,369 | 134,945 | ||||
An itemized reconciliation between net income on a GAAP basis and non-GAAP net income and free cash flow is as follows: | ||||||
Net Income — GAAP | $ 7,334 | $ 22,433 | ||||
Adjustments: | ||||||
Non-cash net interest expense | 268 | 1,528 | ||||
Non-cash taxes | 2,814 | (145 | ) | |||
Depreciation expense | 11,011 | 7,584 | ||||
Amortization expense | 12,716 | 10,434 | ||||
Share-based compensation | 8,809 | 8,162 | ||||
Deferred revenue | (97 | ) | 2,970 | |||
Non-GAAP Net Income | $ 42,855 | $ 52,966 | ||||
Capital expenditure | 3,625 | 6,733 | ||||
Free Cash Flow | $ 39,230 | $ 46,233 | ||||
Condensed Consolidated Balance Sheets | June 30, | March 31, | ||||||
(In thousands) | 2013 | 2013 | ||||||
Cash, cash equivalents and total investments | $ 324,990 | $ 304,179 | ||||||
Receivables | 130,578 | 124,620 | ||||||
Inventory | 39,128 | 43,483 | ||||||
Prepaid expenses and other current assets | 23,838 | 19,133 | ||||||
Property, plant and equipment, net | 281,253 | 288,435 | ||||||
Intangible assets, net and goodwill | 656,017 | 668,733 | ||||||
Other assets | 22,050 | 21,708 | ||||||
Total Assets | $ 1,477,854 | $ 1,470,291 | ||||||
Long-term debt — current portion | $ 6,750 | $ 6,750 | ||||||
Other current liabilities | 65,848 | 79,180 | ||||||
Long-term debt | 360,690 | 362,258 | ||||||
Deferred revenue - long-term | 8,911 | 8,866 | ||||||
Other long-term liabilities | 53,715 | 60,863 | ||||||
Total shareholders' equity | 981,940 | 952,374 | ||||||
Total Liabilities and Shareholders' Equity | $ 1,477,854 | $ 1,470,291 | ||||||
Ordinary shares outstanding (in thousands) | 135,262 | 133,752 | ||||||
|
This selected financial information should be read in conjunction with
the consolidated financial statements and notes thereto included in
Source:
Alkermes Contacts:
For Investors:
Rebecca
Peterson, +1 781-609-6378
or
For Media:
Jennifer Snyder,
+1 781-609-6166