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Avadel Pharmaceuticals Reports Fourth Quarter and Full Year 2016 Results
Strong Fourth Quarter Revenues of
Reaffirms 2017 Revenue Guidance of
Highlights Include:
- Total revenues for fourth quarter and full year 2016 were
$43.1 million and$150.2 million , compared to$44.6 million and$173.0 million in the prior year periods. - GAAP net income for the fourth quarter was
$4.7 million , or$0.11 per diluted share, compared to GAAP net income of$73.5 million , or$1.69 per diluted share, during the same period last year. GAAP net loss for the full year 2016 was$41.3 million or$1.00 per diluted share compared to GAAP net income of$41.8 million or$0.96 per diluted share during the same period last year. - Adjusted net income for the fourth quarter was
$0.1 million , or$0.00 per diluted share, compared to an adjusted net income of$10.8 million , or$0.25 per diluted share, during the same period last year. (1) - Cash and marketable securities at
December 31, 2016 were$154.2 million , up from$149.7 million , atSeptember 30, 2016 and$144.8 million atDecember 31 , 2015.
Kanan continued, “I'm also pleased to report that our cash and marketable securities increased
Fourth Quarter 2016 Results
The Company generated revenues during the fourth quarter 2016 of
2017 Guidance
“We are reaffirming the guidance we issued in
Conference Call
A conference call to discuss these results has been scheduled for
About REST-ON Phase III Clinical Trial
REST-ON is a double-blind, randomized, placebo controlled study of 264 patients to assess the efficacy and safety of a once nightly formulation of sodium oxybate for extended-release oral suspension for the treatment of excessive daytime sleepiness and cataplexy in patients suffering from narcolepsy. For more information, please visit clinicaltrial.avadel.com.
About
Safe Harbor: This release may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements herein that are not clearly historical in nature are forward-looking, and the words “anticipate, “assume,” “believe,” “expect,” “estimate,” “plan,” “will,” “may,” and the negative of these and similar expressions generally identify forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond Avadel's control and could cause actual results to differ materially from the results contemplated in such forward-looking statements. These risks, uncertainties and contingencies include the risks relating to: our dependence on a small number of products and customers for the majority of our revenues; the possibility that our Bloxiverz®,Vazculep® and Akovaz® products, which are not patent protected, could face substantial competition resulting in a loss of market share or forcing us to reduce the prices we charge for those products; the possibility that we could fail to successfully complete the research and development for pipeline products we are evaluating for potential application to the
Non-GAAP Disclosures and Adjustments
Avadel discloses certain non-GAAP financial measures, including adjusted net income and loss and adjusted net income and loss per diluted share, as management believes that a comparison of its current and historical results would be difficult if the disclosures were limited to financial measures prepared only in accordance with generally accepted accounting principles (GAAP) in the U.S. In addition to reporting its financial results in accordance with GAAP, Avadel reports certain non-GAAP results that exclude, if any, fair value remeasurements of its contingent consideration, impairment of intangible assets, amortization of intangible assets, foreign exchange gains and losses on assets and liabilities denominated in foreign currency, but includes the operating cash flows plus any unpaid accrued amounts associated with the contingent consideration, in order to supplement investors' and other readers' understanding and assessment of the Company's financial performance. The Company's management uses these non-GAAP measures internally for forecasting, budgeting and measuring its operating performance. Investors and other readers should review the related GAAP financial measures and the reconciliation of non-GAAP measures to their most closely applicable GAAP measure set forth below and should consider non-GAAP measures only as a supplement to, not as a substitute for or as a superior measure to, measures of financial performance prepared in accordance with GAAP. The table provided within the following “Supplemental Information” section reconciles GAAP net income and loss and diluted earnings or loss per share to the corresponding adjusted amounts.
1Non-GAAP financial measure. Descriptions of Avadel’s non-GAAP financial measures are included under the caption Non-GAAP Disclosures and Adjustments included within this press release and reconciliations of such non-GAAP financial measures to their most closely applicable GAAP financial measures are found in the Supplemental Information section herein.
AVADEL PHARMACEUTICALS PLC CONSOLIDATED STATEMENTS OF INCOME (LOSS) (In thousands, except per share data) |
||||||||||||||||
Three-Months Ended | Twelve-Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenues: | ||||||||||||||||
Product sales and services | $ | 42,364 | $ | 43,847 | $ | 147,222 | $ | 172,288 | ||||||||
License and research revenue | 721 | 721 | 3,024 | 721 | ||||||||||||
Total | 43,085 | 44,568 | 150,246 | 173,009 | ||||||||||||
Operating expenses: | ||||||||||||||||
Cost of products and services sold | 2,591 | 2,937 | 13,248 | 11,410 | ||||||||||||
Research and development | 13,476 | 5,161 | 34,611 | 25,608 | ||||||||||||
Selling, general and administrative | 10,688 | 6,808 | 44,179 | 21,712 | ||||||||||||
Intangible asset amortization | 2,970 | 3,141 | 13,888 | 12,564 | ||||||||||||
Changes in fair value of related party contingent consideration | (3,704 | ) | (51,079 | ) | 49,285 | 30,957 | ||||||||||
Total | 26,021 | (33,032 | ) | 155,211 | 102,251 | |||||||||||
Operating income (loss) | 17,064 | 77,600 | (4,965 | ) | 70,758 | |||||||||||
Investment and other income | 555 | 65 | 1,635 | 1,236 | ||||||||||||
Interest expense | (261 | ) | — | (963 | ) | — | ||||||||||
Other income (expense) - changes in fair value of related party payable | (413 | ) | 4,746 | (6,548 | ) | (4,883 | ) | |||||||||
Foreign exchange gain | 1,135 | 2,498 | 1,123 | 10,594 | ||||||||||||
Income (loss) before income taxes | 18,080 | 84,909 | (9,718 | ) | 77,705 | |||||||||||
Income tax provision | 13,346 | 11,391 | 31,558 | 35,907 | ||||||||||||
Net income (loss) | $ | 4,734 | $ | 73,518 | $ | (41,276 | ) | $ | 41,798 | |||||||
Earnings (loss) per share - basic: | $ | 0.11 | $ | 1.79 | $ | (1.00 | ) | $ | 1.03 | |||||||
Earnings (loss) per share - diluted: | $ | 0.11 | $ | 1.69 | $ | (1.00 | ) | $ | 0.96 | |||||||
Weighted average number of shares outstanding - basic | 41,269 | 41,125 | 41,248 | 40,580 | ||||||||||||
Weighted average number of shares outstanding - diluted | 42,808 | 43,430 | 41,248 | 43,619 |
AVADEL PHARMACEUTICALS PLC CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) |
||||||||
As of December 31, | ||||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 39,215 | $ | 65,064 | ||||
Marketable securities | 114,980 | 79,738 | ||||||
Accounts receivable | 17,839 | 7,487 | ||||||
Inventories | 3,258 | 3,666 | ||||||
Research and development tax credit receivable | — | 2,382 | ||||||
Prepaid expenses and other current assets | 5,894 | 8,064 | ||||||
Total current assets | 181,186 | 166,401 | ||||||
Property and equipment, net | 3,320 | 2,616 | ||||||
Goodwill | 18,491 | 18,491 | ||||||
Intangible assets, net | 22,837 | 15,825 | ||||||
Research and development tax credit receivable | 1,775 | — | ||||||
Income tax deferred charge | 10,342 | 11,581 | ||||||
Other | 7,531 | 167 | ||||||
Total assets | $ | 245,482 | $ | 215,081 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 268 | $ | 434 | ||||
Current portion of long-term related party payable | 34,177 | 25,204 | ||||||
Accounts payable | 7,105 | 5,048 | ||||||
Deferred revenue | 2,223 | 5,121 | ||||||
Accrued expenses | 17,222 | 9,308 | ||||||
Income taxes | 1,200 | — | ||||||
Other | 226 | 133 | ||||||
Total current liabilities | 62,421 | 45,248 | ||||||
Long-term debt | 547 | 684 | ||||||
Long-term related party payable | 135,170 | 97,489 | ||||||
Other | 5,275 | 2,526 | ||||||
Total liabilities | 203,413 | 145,947 | ||||||
Shareholders' equity: | ||||||||
Preferred shares, $0.01 nominal value; 50,000 shares authorized at December 31, 2016, none authorized at December 31, 2015; none issued or outstanding at December 31, 2016 and December 31, 2015, respectively | — | — | ||||||
Ordinary shares, nominal value of $0.01 and €0.122; 500,000 and 53,178 shares authorized; 41,371 and 41,241 issued and outstanding at December 31, 2016 and 2015, respectively | 414 | 6,331 | ||||||
Additional paid-in capital | 385,020 | 363,984 | ||||||
Accumulated deficit | (319,800 | ) | (278,524 | ) | ||||
Accumulated other comprehensive loss | (23,565 | ) | (22,657 | ) | ||||
Total shareholders' equity | 42,069 | 69,134 | ||||||
Total liabilities and shareholders' equity | $ | 245,482 | $ | 215,081 |
AVADEL PHARMACEUTICALS PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) |
||||||||
Twelve-Months Ended December 31, | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (41,276 | ) | $ | 41,798 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 14,489 | 13,132 | ||||||
Loss on disposal of property and equipment | 110 | — | ||||||
Loss on sale of marketable securities | 826 | 779 | ||||||
Unrealized foreign currency exchange gain | (349 | ) | (8,969 | ) | ||||
Gains on waiver of research and development grants and other | — | (1,498 | ) | |||||
Remeasurement of related party acquisition-related contingent consideration | 49,285 | 30,957 | ||||||
Remeasurement of related party financing-related royalty agreements | 6,548 | 4,883 | ||||||
Change in deferred tax and income tax deferred charge | (4,000 | ) | 69 | |||||
Stock-based compensation expense | 14,679 | 7,741 | ||||||
Increase (decrease) in cash from: | ||||||||
Accounts receivable | (10,050 | ) | (8,440 | ) | ||||
Inventories | 1,831 | 3,036 | ||||||
Prepaid expenses and other current assets | 3,412 | (684 | ) | |||||
Research and development tax credit receivable | 397 | 2,975 | ||||||
Accounts payable & other current liabilities | (434 | ) | (8,533 | ) | ||||
Deferred revenue | (2,923 | ) | 3,815 | |||||
Accrued expenses | 6,764 | 3,376 | ||||||
Accrued income taxes | 1,778 | (393 | ) | |||||
Earn-out payments for related party contingent consideration in excess of acquisition-date fair value | (20,252 | ) | — | |||||
Royalty payments for related party payable in excess of original fair value | (2,469 | ) | — | |||||
Other long-term assets and liabilities | 535 | 249 | ||||||
Net cash provided by operating activities | 18,901 | 84,293 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (1,201 | ) | (1,629 | ) | ||||
Acquisitions of businesses, including cash acquired and other adjustments | 628 | — | ||||||
Proceeds from sales of marketable securities | 71,546 | 48,308 | ||||||
Purchases of marketable securities | (107,603 | ) | (78,409 | ) | ||||
Net cash used in investing activities | (36,630 | ) | (31,730 | ) | ||||
Cash flows from financing activities: | ||||||||
Reimbursement of loans | — | (4,911 | ) | |||||
Reimbursement of conditional R&D grants | (277 | ) | (747 | ) | ||||
Earn-out payments for related party contingent consideration | (6,892 | ) | (24,526 | ) | ||||
Royalty payments for related party payable | (1,225 | ) | (3,371 | ) | ||||
Excess tax benefit from stock-based compensation | — | 2,814 | ||||||
Cash proceeds from issuance of ordinary shares and warrants | 440 | 6,990 | ||||||
Net cash used in financing activities | (7,954 | ) | (23,751 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (166 | ) | (3,508 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (25,849 | ) | 25,304 | |||||
Cash and cash equivalents - beginning balance | 65,064 | 39,760 | ||||||
Cash and cash equivalents - ending balance | $ | 39,215 | $ | 65,064 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Income tax paid | $ | 27,180 | $ | 42,121 | ||||
Interest paid | 788 | 4,738 |
AVADEL PHARMACEUTICALS PLC UNAUDITED SUPPLEMENTAL INFORMATION (In thousands, except per share data) |
||||||||||||||||
Three-Months Ended December 31, | Twelve-Months Ended December 31, | |||||||||||||||
Revenues | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Bloxiverz | $ | 16,938 | $ | 36,009 | $ | 82,896 | $ | 150,083 | ||||||||
Vazculep | 10,629 | 7,394 | 39,796 | 20,151 | ||||||||||||
Akovaz | 11,263 | — | 16,831 | — | ||||||||||||
Other | 3,534 | 444 | 7,699 | 2,054 | ||||||||||||
Total product sales and services | 42,364 | 43,847 | 147,222 | 172,288 | ||||||||||||
License and research revenue | 721 | 721 | 3,024 | 721 | ||||||||||||
Total revenues | $ | 43,085 | $ | 44,568 | $ | 150,246 | $ | 173,009 |
GAAP to Non-GAAP adjustments for the three-months ended December 31, 2016 | ||||||||||||||||||||||||||||||||||||
Exclude | Include | |||||||||||||||||||||||||||||||||||
GAAP | Intangible asset amortization | Foreign exchange (gain)/loss | Cross - border merger impacts | Purchase accounting adjustments - FSC | Contingent related party payable fair value remeasurements | Contingent related party payable paid/accrued | Total adjustments | Adjusted GAAP | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||
Product sales and services | $ | 42,364 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 42,364 | ||||||||||||||||||
License and research revenue | 721 | — | — | — | — | — | — | — | 721 | |||||||||||||||||||||||||||
Total | 43,085 | — | — | — | — | — | — | — | 43,085 | |||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||
Cost of products and services sold | 2,591 | — | — | — | 1,019 | — | — | 1,019 | 3,610 | |||||||||||||||||||||||||||
Research and development | 13,476 | — | — | — | — | — | — | — | 13,476 | |||||||||||||||||||||||||||
Selling, general and administrative | 10,688 | — | — | — | — | — | — | — | 10,688 | |||||||||||||||||||||||||||
Intangible asset amortization | 2,970 | (2,970 | ) | — | — | — | — | — | (2,970 | ) | — | |||||||||||||||||||||||||
Changes in fair value of related party contingent consideration | (3,704 | ) | — | — | — | — | 3,704 | 7,645 | 11,349 | 7,645 | ||||||||||||||||||||||||||
Total | 26,021 | (2,970 | ) | — | — | 1,019 | 3,704 | 7,645 | 9,398 | 35,419 | ||||||||||||||||||||||||||
Operating income (loss) | 17,064 | 2,970 | — | — | (1,019 | ) | (3,704 | ) | (7,645 | ) | (9,398 | ) | 7,666 | |||||||||||||||||||||||
Investment and other income | 555 | — | — | — | — | — | — | — | 555 | |||||||||||||||||||||||||||
Interest expense | (261 | ) | — | — | — | — | — | — | — | (261 | ) | |||||||||||||||||||||||||
Other expense - changes in fair value of related party payable | (413 | ) | — | — | — | — | 413 | (1,018 | ) | (605 | ) | (1,018 | ) | |||||||||||||||||||||||
Foreign exchange gain | 1,135 | — | (1,135 | ) | — | — | — | — | (1,135 | ) | — | |||||||||||||||||||||||||
Income (loss) before income taxes | 18,080 | 2,970 | (1,135 | ) | — | (1,019 | ) | (3,291 | ) | (8,663 | ) | (11,138 | ) | 6,942 | ||||||||||||||||||||||
Income tax provision (benefit) | 13,346 | 1,066 | — | (6,754 | ) | (366 | ) | 82 | (499 | ) | (6,471 | ) | 6,875 | |||||||||||||||||||||||
Net income (loss) | $ | 4,734 | $ | 1,904 | $ | (1,135 | ) | $ | 6,754 | $ | (653 | ) | $ | (3,373 | ) | $ | (8,164 | ) | $ | (4,667 | ) | $ | 67 | |||||||||||||
Net income (loss) per share - diluted(1) | $ | 0.11 | $ | 0.04 | $ | (0.03 | ) | $ | 0.16 | $ | (0.02 | ) | $ | (0.08 | ) | $ | (0.19 | ) | $ | (0.11 | ) | $ | — | |||||||||||||
Weighted average number of shares outstanding - diluted | 42,808 | 42,808 | 42,808 | 42,808 | 42,808 | 42,808 | 42,808 | 42,808 | 42,808 |
(1) Net income (loss) per share - diluted is calculated by dividing Net income (loss) by the Weighted average number of shares outstanding - diluted. Note, when recalculated using this method, the balances in the Total adjustment and Adjusted GAAP columns may not cross-foot as a result of rounding to full precision.
GAAP to Non GAAP adjustments for the three-months ended December 31, 2015 | ||||||||||||||||||||||||||||
Exclude | Include | |||||||||||||||||||||||||||
GAAP | Intangible asset amortization | Foreign exchange (gain)/loss | Contingent related party payable fair value remeasurements | Contingent related party payable paid/accrued | Total adjustments | Adjusted GAAP | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Product sales and services | $ | 43,847 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 43,847 | ||||||||||||||
License and research revenue | 721 | — | — | — | — | — | 721 | |||||||||||||||||||||
Total | 44,568 | — | — | — | — | — | 44,568 | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Cost of products and services sold | 2,937 | — | — | — | — | — | 2,937 | |||||||||||||||||||||
Research and development | 5,161 | — | — | — | — | — | 5,161 | |||||||||||||||||||||
Selling, general and administrative | 6,808 | — | — | — | — | — | 6,808 | |||||||||||||||||||||
Intangible asset amortization | 3,141 | (3,141 | ) | — | — | — | (3,141 | ) | — | |||||||||||||||||||
Changes in fair value of related party contingent consideration | (51,079 | ) | — | — | 51,079 | 8,158 | 59,237 | 8,158 | ||||||||||||||||||||
Total | (33,032 | ) | (3,141 | ) | — | 51,079 | 8,158 | 56,096 | 23,064 | |||||||||||||||||||
Operating income (loss) | 77,600 | 3,141 | — | (51,079 | ) | (8,158 | ) | (56,096 | ) | 21,504 | ||||||||||||||||||
Investment and other income | 65 | — | — | — | — | — | 65 | |||||||||||||||||||||
Interest expense | — | — | — | — | — | — | — | |||||||||||||||||||||
Other expense - changes in fair value of related party payable | 4,746 | — | — | (4,746 | ) | (1,123 | ) | (5,869 | ) | (1,123 | ) | |||||||||||||||||
Foreign exchange gain | 2,498 | — | (2,498 | ) | — | — | (2,498 | ) | — | |||||||||||||||||||
Income (loss) before income taxes | 84,909 | 3,141 | (2,498 | ) | (55,825 | ) | (9,281 | ) | (64,463 | ) | 20,446 | |||||||||||||||||
Income tax provision (benefit) | 11,391 | 1,099 | (749 | ) | (1,661 | ) | (393 | ) | (1,704 | ) | 9,687 | |||||||||||||||||
Net income (loss) | $ | 73,518 | $ | 2,042 | $ | (1,749 | ) | $ | (54,164 | ) | $ | (8,888 | ) | $ | (62,759 | ) | $ | 10,759 | ||||||||||
Net (loss) income per share - diluted (1) | $ | 1.69 | $ | 0.05 | $ | (0.04 | ) | $ | (1.25 | ) | $ | (0.20 | ) | $ | (1.45 | ) | $ | 0.25 | ||||||||||
Weighted average number of shares outstanding - diluted | 43,430 | 43,430 | 43,430 | 43,430 | 43,430 | 43,430 | 43,430 |
(1) Net income (loss) per share - diluted is calculated by dividing Net income (loss) by the Weighted average number of shares outstanding - diluted. Note, when recalculated using this method, the balances in the Total adjustment and Adjusted GAAP columns may not cross-foot as a result of rounding to full precision.
GAAP to Non-GAAP adjustments for the twelve-months ended December 31, 2016 | ||||||||||||||||||||||||||||||||||||
Exclude | Include | |||||||||||||||||||||||||||||||||||
GAAP | Intangible asset amortization | Foreign exchange (gain)/loss | Cross - border merger impacts | Purchase accounting adjustments - FSC | Contingent related party payable fair value remeasurements | Contingent related party payable paid/accrued | Total adjustments | Adjusted GAAP | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||
Product sales and services | $ | 147,222 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 147,222 | ||||||||||||||||||
License and research revenue | 3,024 | — | — | — | — | — | — | — | 3,024 | |||||||||||||||||||||||||||
Total | 150,246 | — | — | — | — | — | — | — | 150,246 | |||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||
Cost of products and services sold | 13,248 | — | — | — | (506 | ) | — | — | (506 | ) | 12,742 | |||||||||||||||||||||||||
Research and development | 34,611 | — | — | — | — | — | — | — | 34,611 | |||||||||||||||||||||||||||
Selling, general and administrative | 44,179 | — | — | — | — | — | — | — | 44,179 | |||||||||||||||||||||||||||
Intangible asset amortization | 13,888 | (13,888 | ) | — | — | — | — | — | (13,888 | ) | — | |||||||||||||||||||||||||
Changes in fair value of related party contingent consideration | 49,285 | — | — | — | — | (49,285 | ) | 26,966 | (22,319 | ) | 26,966 | |||||||||||||||||||||||||
Total | 155,211 | (13,888 | ) | — | — | (506 | ) | (49,285 | ) | 26,966 | (36,713 | ) | 118,498 | |||||||||||||||||||||||
Operating income (loss) | (4,965 | ) | 13,888 | — | — | 506 | 49,285 | (26,966 | ) | 36,713 | 31,748 | |||||||||||||||||||||||||
Investment and other income | 1,635 | — | — | — | — | — | — | — | 1,635 | |||||||||||||||||||||||||||
Interest expense | (963 | ) | — | — | — | — | — | — | — | (963 | ) | |||||||||||||||||||||||||
Other expense - changes in fair value of related party payable | (6,548 | ) | — | — | — | — | 6,548 | (3,636 | ) | 2,912 | (3,636 | ) | ||||||||||||||||||||||||
Foreign exchange gain | 1,123 | — | (1,123 | ) | — | — | — | — | (1,123 | ) | — | |||||||||||||||||||||||||
Income (loss) before income taxes | (9,718 | ) | 13,888 | (1,123 | ) | — | 506 | 55,833 | (30,602 | ) | 38,502 | 28,784 | ||||||||||||||||||||||||
Income tax provision (benefit) | 31,558 | 4,986 | — | (6,754 | ) | 182 | 3,068 | (1,667 | ) | (185 | ) | 31,373 | ||||||||||||||||||||||||
Net income (loss) | $ | (41,276 | ) | $ | 8,902 | $ | (1,123 | ) | $ | 6,754 | $ | 324 | $ | 52,765 | $ | (28,935 | ) | $ | 38,687 | $ | (2,589 | ) | ||||||||||||||
Net (loss) income per share - diluted (1) | $ | (1.00 | ) | $ | 0.22 | $ | (0.03 | ) | $ | 0.16 | $ | 0.01 | $ | 1.28 | $ | (0.70 | ) | $ | 0.94 | $ | (0.06 | ) | ||||||||||||||
Weighted average number of shares outstanding - diluted | 41,248 | 41,248 | 41,248 | 41,248 | 41,248 | 41,248 | 41,248 | 41,248 | 41,248 |
(1) Net income (loss) per share - diluted is calculated by dividing Net income (loss) by the Weighted average number of shares outstanding - diluted. Note, when recalculated using this method, the balances in the Total adjustment and Adjusted GAAP columns may not cross-foot as a result of rounding to full precision.
GAAP to Non-GAAP adjustments for the twelve-months ended December 31, 2015 | ||||||||||||||||||||||||||||
Exclude | Include | |||||||||||||||||||||||||||
GAAP | Intangible asset amortization | Foreign exchange (gain)/loss | Contingent related party payable fair value remeasurements | Contingent related party payable paid/accrued | Total adjustments | Adjusted GAAP | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Product sales and services | $ | 172,288 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 172,288 | ||||||||||||||
License and research revenue | 721 | — | — | — | — | — | 721 | |||||||||||||||||||||
Total | 173,009 | — | — | — | — | — | 173,009 | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Cost of products and services sold | 11,410 | — | — | — | — | — | 11,410 | |||||||||||||||||||||
Research and development | 25,608 | — | — | — | — | — | 25,608 | |||||||||||||||||||||
Selling, general and administrative | 21,712 | — | — | — | — | — | 21,712 | |||||||||||||||||||||
Intangible asset amortization | 12,564 | (12,564 | ) | — | — | — | (12,564 | ) | — | |||||||||||||||||||
Changes in fair value of related party contingent consideration | 30,957 | — | — | (30,957 | ) | 32,081 | 1,124 | 32,081 | ||||||||||||||||||||
Total | 102,251 | (12,564 | ) | — | (30,957 | ) | 32,081 | (11,440 | ) | 90,811 | ||||||||||||||||||
Operating income (loss) | 70,758 | 12,564 | — | 30,957 | (32,081 | ) | 11,440 | 82,198 | ||||||||||||||||||||
Investment and other income | 1,236 | — | — | — | — | — | 1,236 | |||||||||||||||||||||
Interest expense | — | — | — | — | — | — | — | |||||||||||||||||||||
Other expense - changes in fair value of related party payable | (4,883 | ) | — | — | 4,883 | (4,414 | ) | 469 | (4,414 | ) | ||||||||||||||||||
Foreign exchange gain | 10,594 | — | (10,594 | ) | — | — | (10,594 | ) | — | |||||||||||||||||||
Income (loss) before income taxes | 77,705 | 12,564 | (10,594 | ) | 35,840 | (36,495 | ) | 1,315 | 79,020 | |||||||||||||||||||
Income tax provision (benefit) | 35,907 | 4,397 | (3,178 | ) | 1,709 | (1,545 | ) | 1,383 | 37,290 | |||||||||||||||||||
Net income (loss) | $ | 41,798 | $ | 8,167 | $ | (7,416 | ) | $ | 34,131 | $ | (34,950 | ) | $ | (68 | ) | $ | 41,730 | |||||||||||
Net (loss) income per share - diluted (1) | $ | 0.96 | $ | 0.19 | $ | (0.17 | ) | $ | 0.78 | $ | (0.80 | ) | $ | — | $ | 0.96 | ||||||||||||
Weighted average number of shares outstanding - diluted | 43,619 | 43,619 | 43,619 | 43,619 | 43,619 | 43,619 | 43,619 |
(1) Net income (loss) per share - diluted is calculated by dividing Net income (loss) by the Weighted average number of shares outstanding - diluted. Note, when recalculated using this method, the balances in the Total adjustment and Adjusted GAAP columns may not cross-foot as a result of rounding to full precision.
Contacts:Michael F. Kanan Chief Financial Officer Phone: (636) 449-1844 Email : mkanan@avadel.comLauren Stival Sr. Director, Investor Relations & Corporate Communications Phone: (636) 449-5866 Email: lstival@avadel.com