News Release Detail
Mylan Reports Adjusted Diluted EPS of $0.33 for the Quarter Ended March 31, 2009
Financial Highlights
- Adjusted diluted EPS, which excludes the impact of certain purchase
accounting items as well as other non-cash and/or non-recurring items
as detailed below, was
$0.33 for the three months endedMarch 31, 2009 , compared to$0.09 for the same prior year period; - Total revenues of
$1.21 billion for the three months endedMarch 31, 2009 , an increase of$135.5 million over the same prior year period; - On a GAAP basis, the company reported diluted EPS of
$0.23 for the three months endedMarch 31, 2009 , compared to a loss per share of$1.47 in the same prior year period, which included a non-cash goodwill impairment charge of$385.0 million related to the Specialty Segment.
Coury continued: "The outstanding execution on our stated objectives
remains our primary focus. Operational excellence at
Financial Summary
Total revenues for the quarter ended
Also included in total revenues for the current quarter are other revenues
of
Generics revenues, which are derived from sales in
Total revenues from
New product launches and increased volume were primarily responsible for
the increase in revenues, partially offset by unfavorable pricing as a result
of additional generic competition on certain products. In the current quarter,
new products launched in the U.S. contributed revenues of
Total revenues from EMEA were
Specialty, consisting of
Matrix reported third-party revenues of
Matrix's revenues increased primarily as a result of higher sales of
anti-retroviral (ARV) finished dosage form (FDF) products. Current quarter
revenues included sales of first-line ARV products, which were launched
subsequent to
Gross profit for the three months ended
Gross margins in the current quarter were negatively impacted by certain
purchase accounting items of approximately
Earnings from operations were
The increase in operating income in the current quarter is due to
increased sales and gross profit, as well as lower R&D and SG&A expense.
Additionally, earnings from operations in the current quarter include
approximately
SG&A expense was higher in the prior year primarily as a result of more activity associated with the integration of the former Merck Generics business, while the timing of certain 2009 development projects was favorable to current quarter R&D. Additionally, in the current year, SG&A and R&D were both impacted by the favorable effect of the stronger U.S. dollar and by synergies realized as a result of the company's ongoing restructuring initiatives. The company's previously announced plans to optimize and rationalize its global manufacturing and R&D platforms have contributed to the decrease in operating expenses, particularly R&D.
Interest expense for the current quarter totaled
EBITDA for the quarter ended
Non-GAAP Financial Measures
Below is a reconciliation of GAAP net earnings attributable to
Three months
ended
March 31, 2009
(in millions except per share amounts) --------------
GAAP net earnings attributable to Mylan Inc.
& diluted GAAP EPS $106.1 $0.23
Purchase accounting related amortization (1) 68.2
Litigation settlements, net (2.1)
Non-cash interest expense 10.2
Integration and other non-recurring items (2) (4.4)
Tax effect of the above items (3) (28.2)
-----
Adjusted net earnings attributable to Mylan Inc. &
adjusted diluted EPS (4) $149.8 $0.33
====== =====
(1) This amount, which is included in cost of sales, consists primarily
of amortization expense related to purchased intangible assets as
well as amortization of the inventory step-up related to the
acquisition of the former Merck Generics business.
(2) Integration and other non-recurring items include charges principally
related to the acquisition and integration of the former Merck
Generics business (e.g., non-recurring professional and consulting
fees and other non-recurring expenses) as well as certain
restructuring charges, more than offset by non-recurring revenue
items. Non-recurring revenue items of $28.5 million , consisting
primarily of the acceleration of the recognition of revenue related
to certain product development agreements, are included in other
revenue on the statement of operations. Additionally, integration and
other non-recurring expenses of $7.4 million are included in cost of
sales, $13.1 million are included in SG&A and $3.6 million are
included in R&D.
(3) The tax effect is calculated assuming an annual adjusted effective
tax rate for the resulting adjusted earnings, and results in an
effective tax rate on adjusted earnings of 30% including the impact
of tax synergies.
(4) Adjusted diluted EPS and GAAP diluted EPS for the three months ended
March 31, 2009 , were calculated under the "if-converted method" which
assumes conversion of the company's preferred stock into a maximum of
152.8 million shares of common stock and excludes the preferred
dividend from the calculation. The "if-converted" method was more
dilutive to adjusted diluted EPS and GAAP diluted EPS by
approximately $0.05 per share and $0.002 per share, respectively.
Below is a reconciliation of GAAP net earnings attributable to
Three months
ended
(in millions) March 31, 2009
--------------
GAAP net earnings attributable to Mylan Inc. $106.1
Add/(Deduct):
Net earnings attributable to the
noncontrolling interest 3.0
Income from equity method investees (0.8)
Income taxes 37.5
Interest expense 85.0
Depreciation & amortization 97.1
----
EBITDA 327.9
Add/(Deduct) Adjustments:
Non-cash stock-based compensation expense 8.4
Litigation settlements, net (2.1)
Integration and other non-recurring items (8.1)
Adjusted EBITDA $326.1
======
Conference Call
About
Forward Looking Statements
This press release includes statements that constitute "forward-looking
statements", including with regard to the company's future operations and its
earnings expectations. These statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Because
such statements inherently involve risks and uncertainties, actual future
results may differ materially from those expressed or implied by such
forward-looking statements. Factors that could cause or contribute to such
differences include, but are not limited to: challenges, risks and costs
inherent in business integrations and in achieving anticipated synergies; the
effect of any changes in customer and supplier relationships and customer
purchasing patterns; general market perception of the acquisition of the
former Merck Generics business; the ability to attract and retain key
personnel; changes in third-party relationships; the impacts of competition;
changes in economic and financial conditions of the company's business;
uncertainties and matters beyond the control of management; inherent
uncertainties involved in the estimates and judgments used in the preparation
of financial statements, and the providing of estimates of financial measures,
in accordance with GAAP and related standards. These cautionary statements
should be considered in connection with any subsequent written or oral
forward-looking statements that may be made by the company or by persons
acting on its behalf and in conjunction with its periodic SEC filings. In
addition, please refer to the cautionary statements and risk factors set forth
in the company's Annual Report on Form 10-K, as amended, for the fiscal year
ended
Mylan Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
Three Months Ended
March 31, 2009 March 31, 2008
-------------- --------------
As Adjusted*
Revenues:
Net revenues $1,168,362 $1,062,413
Other revenues 41,555 12,048
------ ------
Total revenues 1,209,917 1,074,461
Cost of sales 684,184 724,240
------- -------
Gross profit 525,733 350,221
------- -------
Operating expenses:
Research and development 58,836 83,844
Impairment loss on goodwill - 385,000
Selling, general and administrative 239,556 252,913
------- -------
Total operating expenses 298,392 721,757
------- -------
Earnings (loss) from operations 227,341 (371,536)
Interest expense 85,002 96,479
Other income, net 4,189 6,961
----- -----
Earnings (loss) before income taxes and
noncontrolling interest 146,528 (461,054)
Income tax provision (benefit) 37,454 (47,121)
------ -------
Net earnings (loss) before noncontrolling
interest 109,074 (413,933)
Net earnings (loss) attributable to the
noncontrolling interest 3,016 (2,042)
----- ------
Net earnings (loss) attributable to Mylan
Inc. before preferred dividends 106,058 (411,891)
Preferred dividends 34,759 34,718
------ ------
Net earnings (loss) attributable to Mylan
Inc. common shareholders $71,299 $(446,609)
======= =========
Earnings (loss) per common share attributable
toMylan Inc. : Basic $0.23 $(1.47) ===== ====== Diluted $0.23 $(1.47) ===== ======
Weighted average common shares outstanding:
Basic 304,578 304,181
======= =======
Diluted 458,049 304,181
======= =======
* Adjusted to reflect the adoption of FSP APB No. 14-1
Mylan Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited; in thousands)
March 31, 2009 December 31, 2008
-------------- -----------------
As Adjusted*
Assets:
Current assets:
Cash and cash equivalents $453,062 $557,147
Restricted cash 40,021 40,309
Available-for-sale securities 40,371 42,260
Accounts receivable, net 1,080,319 1,164,613
Inventories 1,018,603 1,065,990
Other current assets 279,876 304,354
------- -------
Total current assets 2,912,252 3,174,673
Intangible assets, net 2,313,960 2,453,161
Goodwill 2,995,642 3,161,580
Other non-current assets 1,674,790 1,620,445
--------- ---------
Total assets $9,896,644 $10,409,859
========== ===========
Liabilities:
Current liabilities $1,339,983 $1,544,650
Long-term debt 4,964,569 5,078,937
Other non-current liabilities 942,864 999,431
------- -------
Total liabilities 7,247,416 7,623,018
Noncontrolling interest 31,450 29,108
Mylan Inc. shareholders' equity 2,617,778 2,757,733
--------- ---------
Total liabilities and shareholders'
equity $9,896,644 $10,409,859
========== ===========
* Adjusted to reflect the adoption of FSP APB No. 14-1
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