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Avadel Pharmaceuticals Reports Third Quarter 2017 Results
Total Revenues for the Third Quarter Were
Full Year Revenue Guidance of
Acquired License for Noctiva™
Highlights Include:
- Total revenues for the third quarter 2017 were
$39.7 million , compared to$32.1 million in the third quarter 2016. - GAAP net income for the third quarter of 2017 was
$21.7 million , or$0.52 per diluted share, compared to GAAP net loss of$20.0 million , or$0.48 per diluted share, in the third quarter of 2016. - Adjusted net income for the third quarter of 2017 was
$3.7 million , or$0.09 per diluted share, compared to an adjusted net loss of$3.5 million , or$0.08 per diluted share, in the third quarter of 2016. (1) - On
September 1, 2017 , the Company acquired the commercial license for Noctiva™, the first and only product approved by theU.S. Food & Drug Administration (FDA ) for the treatment of nocturia due to nocturnal polyuria in adults. - Cash and marketable securities at September 30, 2017 were
$115.6 million , down from$173.8 million atJune 30, 2017 , largely as a result of cash used for the Noctiva license acquisition. - Cash used for share repurchases totaled
$16.7 million for the nine months endedSeptember 30, 2017 .
Mr. Anderson continued, "In early September, we took another step forward in the continued pursuit of becoming a fully integrated specialty pharmaceutical company when we acquired the license to commercialize Noctiva. Noctiva is the first and only product approved by the
Third Quarter 2017 Results
Revenues during the third quarter of 2017 were
Research and development expenses totaled
Selling, general and administrative expenses were
Adjusted net income for the third quarter of 2017 was
2017 Guidance
The Company reiterated its full year revenue guidance of between
Conference Call
A conference call to discuss these results has been scheduled for
About
About Noctiva™
Noctiva is the first and only formulation of desmopressin acetate, a vasopressin analog, approved by the
Important Safety Information and Indication for Noctiva (desmopressin acetate)
WARNING: HYPONATREMIA
- NOCTIVA can cause hyponatremia. Severe hyponatremia can be life-threatening, leading to seizures, coma, respiratory arrest, or death.
- NOCTIVA is contraindicated in patients at increased risk of severe hyponatremia, such as patients with excessive fluid intake, illnesses that can cause fluid or electrolyte imbalances, and in those using loop diuretics or systemic or inhaled glucocorticoids.
- Ensure serum sodium concentrations are normal before starting or resuming NOCTIVA. Measure serum sodium within seven days and approximately one month after initiating therapy or increasing the dose, and periodically during treatment. More frequently monitor serum sodium in patients 65 years of age and older and in patients at increased risk of hyponatremia.
- If hyponatremia occurs, NOCTIVA may need to be temporarily or permanently discontinued.
Safe Harbor: This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words “will,” “may,” “believe,” “expect,” “anticipate,” “estimate,” “project” and similar expressions, and the negatives thereof, identify forward-looking statements, each of which speaks only as of the date the statement is made. Although we believe that our forward-looking statements are based on reasonable assumptions within the bounds of our knowledge of our business and operations, our business is subject to significant risks and as a result there can be no assurance that actual results of our research, development and commercialization activities and our results of operations will not differ materially from the results contemplated in such forward-looking statements. These risks include: (i) risks relating to our license agreement with
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, restructuring costs, foreign exchange gains and losses on assets and liabilities denominated in foreign currencies, 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.
Contacts: | Michael F. Kanan |
Chief Financial Officer | |
Phone: (636) 449-1844 | |
Email: mkanan@avadel.com | |
Lauren Stival | |
Sr. Director, Investor Relations & Corporate Communications | |
Phone: (636) 449-5866 | |
Email: lstival@avadel.com |
AVADEL PHARMACEUTICALS PLC | ||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues: | ||||||||||||||||
Product sales and services | $ | 39,147 | $ | 31,340 | $ | 138,009 | $ | 104,858 | ||||||||
License and research revenue | 528 | 747 | 484 | 2,303 | ||||||||||||
Total | 39,675 | 32,087 | 138,493 | 107,161 | ||||||||||||
Operating expenses: | ||||||||||||||||
Cost of products and services sold | 3,790 | 2,844 | 12,253 | 10,657 | ||||||||||||
Research and development expenses | 8,095 | 8,143 | 22,093 | 21,135 | ||||||||||||
Selling, general and administrative expenses | 11,563 | 12,740 | 35,804 | 33,491 | ||||||||||||
Intangible asset amortization | 564 | 3,702 | 1,692 | 10,918 | ||||||||||||
(Gain)/loss - changes in fair value of related party contingent consideration | (9,906 | ) | 20,848 | (30,107 | ) | 52,989 | ||||||||||
Restructuring (income) costs | (549 | ) | — | 3,173 | — | |||||||||||
Total operating expenses | 13,557 | 48,277 | 44,908 | 129,190 | ||||||||||||
Operating income (loss) | 26,118 | (16,190 | ) | 93,585 | (22,029 | ) | ||||||||||
Investment income, net | 1,110 | 490 | 2,689 | 1,080 | ||||||||||||
Interest expense, net | (263 | ) | (264 | ) | (789 | ) | (702 | ) | ||||||||
Other income (expense) - changes in fair value of related party payable | 768 | (1,828 | ) | 2,988 | (6,135 | ) | ||||||||||
Foreign exchange gain (loss) | (133 | ) | 1,249 | (127 | ) | (12 | ) | |||||||||
Income (loss) before income taxes | 27,600 | (16,543 | ) | 98,346 | (27,798 | ) | ||||||||||
Income tax provision | 5,921 | 3,451 | 21,830 | 18,212 | ||||||||||||
Net income (loss) | $ | 21,679 | $ | (19,994 | ) | $ | 76,516 | $ | (46,010 | ) | ||||||
Net income (loss) per share - basic | $ | 0.54 | $ | (0.48 | ) | $ | 1.87 | $ | (1.12 | ) | ||||||
Net income (loss) per share - diluted | 0.52 | (0.48 | ) | 1.81 | (1.12 | ) | ||||||||||
Weighted average number of shares outstanding - basic | 40,061 | 41,241 | 40,839 | 41,241 | ||||||||||||
Weighted average number of shares outstanding - diluted | 41,339 | 41,241 | 42,194 | 41,241 |
AVADEL PHARMACEUTICALS PLC | ||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In thousands, except per share data) | ||||||||
September 30, 2017 | December 31, 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 37,449 | $ | 39,215 | ||||
Marketable securities | 78,161 | 114,980 | ||||||
Accounts receivable | 24,080 | 17,839 | ||||||
Inventories, net | 5,870 | 3,258 | ||||||
Prepaid expenses and other current assets | 3,373 | 5,894 | ||||||
Total current assets | 148,933 | 181,186 | ||||||
Property and equipment, net | 3,180 | 3,320 | ||||||
Goodwill | 18,491 | 18,491 | ||||||
Intangible assets, net | 94,256 | 22,837 | ||||||
Research and development tax credit receivable | 3,547 | 1,775 | ||||||
Income tax deferred charge | — | 10,342 | ||||||
Other | 9,020 | 7,531 | ||||||
Total assets | $ | 277,427 | $ | 245,482 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 301 | $ | 268 | ||||
Current portion of long-term related party payable | 30,986 | 34,177 | ||||||
Accounts payable | 8,564 | 7,105 | ||||||
Deferred revenue | 1,927 | 2,223 | ||||||
Accrued expenses | 47,997 | 17,222 | ||||||
Income taxes | 7,026 | 1,200 | ||||||
Other | 507 | 226 | ||||||
Total current liabilities | 97,308 | 62,421 | ||||||
Long-term debt, less current portion | 614 | 547 | ||||||
Long-term related party payable, less current portion | 76,131 | 135,170 | ||||||
Other | 6,911 | 5,275 | ||||||
Total liabilities | 180,964 | 203,413 | ||||||
Shareholders' equity: | ||||||||
Preferred shares, $0.01 nominal value; 50,000 shares authorized; none issued or outstanding at September 30, 2017 and December 31, 2016, respectively | — | — | ||||||
Ordinary shares, nominal value of $0.01; 500,000 shares authorized; 41,435 and 41,371 issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 414 | 414 | ||||||
Treasury shares, at cost, 1,673 and 0 shares held at September 30, 2017 and December 31, 2016, respectively | (17,506 | ) | — | |||||
Additional paid-in capital | 391,416 | 385,020 | ||||||
Accumulated deficit | (254,440 | ) | (319,800 | ) | ||||
Accumulated other comprehensive loss | (23,421 | ) | (23,565 | ) | ||||
Total shareholders' equity | 96,463 | 42,069 | ||||||
Total liabilities and shareholders' equity | $ | 277,427 | $ | 245,482 |
AVADEL PHARMACEUTICALS PLC | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(In thousands) | ||||||||
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | 76,516 | (46,010 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 2,664 | 11,555 | ||||||
Loss on disposal of property and equipment | — | 110 | ||||||
Loss (gain) on sale of marketable securities | (550 | ) | 666 | |||||
Foreign exchange loss | 127 | 12 | ||||||
Grants recognized in research and development expenses | — | (70 | ) | |||||
Remeasurement of related party acquisition-related contingent consideration | (30,107 | ) | 52,989 | |||||
Remeasurement of related party financing-related contingent consideration | (2,988 | ) | 6,135 | |||||
Change in deferred tax and income tax deferred charge | 322 | (5,680 | ) | |||||
Stock-based compensation expense | 6,019 | 10,541 | ||||||
Increase (decrease) in cash from: | ||||||||
Accounts receivable | (6,240 | ) | (7,594 | ) | ||||
Inventories | (2,612 | ) | 2,080 | |||||
Prepaid expenses and other current assets | 1,924 | 671 | ||||||
Research and development tax credit receivable | (1,576 | ) | (1,794 | ) | ||||
Accounts payable & other current liabilities | 804 | 1,291 | ||||||
Deferred revenue | (283 | ) | (2,198 | ) | ||||
Accrued expenses | 9,324 | 2,700 | ||||||
Accrued income taxes | 5,826 | — | ||||||
Earn-out payments for related party contingent consideration in excess of acquisition-date fair value | (24,729 | ) | (14,486 | ) | ||||
Royalty payments for related party payable in excess of original fair value | (3,446 | ) | (1,790 | ) | ||||
Other long-term assets and liabilities | (517 | ) | 2,032 | |||||
Net cash provided by operating activities | 30,478 | 11,160 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (533 | ) | (1,000 | ) | ||||
Acquisitions of businesses | — | 628 | ||||||
Purchase of intangible assets | (52,139 | ) | — | |||||
Proceeds from sales of marketable securities | 153,398 | 46,483 | ||||||
Purchases of marketable securities | (115,893 | ) | (96,199 | ) | ||||
Net cash used in investing activities | (15,167 | ) | (50,088 | ) | ||||
Cash flows from financing activities: | ||||||||
Earn-out payments for related party contingent consideration | (961 | ) | (6,834 | ) | ||||
Royalty payments for related party payable | — | (1,117 | ) | |||||
Reimbursement of loans | — | (61 | ) | |||||
Cash proceeds from issuance of ordinary shares and warrants | 376 | — | ||||||
Share repurchases | (16,707 | ) | — | |||||
Net cash used in financing activities | (17,292 | ) | (8,012 | ) | ||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | 215 | 656 | ||||||
Net decrease in cash and cash equivalents | (1,766 | ) | (46,284 | ) | ||||
Cash and cash equivalents at January 1, | 39,215 | 65,064 | ||||||
Cash and cash equivalents at September 30, | $ | 37,449 | $ | 18,780 |
AVADEL PHARMACEUTICALS PLC | ||||||||||||||||
UNAUDITED SUPPLEMENTAL INFORMATION | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Revenues by Product: | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Bloxiverz | $ | 9,920 | $ | 15,591 | $ | 37,541 | $ | 65,958 | ||||||||
Vazculep | 9,573 | 9,340 | 29,906 | 29,167 | ||||||||||||
Akovaz | 18,561 | 5,568 | 65,110 | 5,568 | ||||||||||||
Other | 1,093 | 841 | 5,452 | 4,165 | ||||||||||||
Total product sales and services | 39,147 | 31,340 | 138,009 | 104,858 | ||||||||||||
License and research revenue | 528 | 747 | 484 | 2,303 | ||||||||||||
Total revenues | $ | 39,675 | $ | 32,087 | $ | 138,493 | $ | 107,161 |
GAAP to Non-GAAP adjustments for the three-months ended September 30, 2017 | ||||||||||||||||||||||||||||||||
Exclude | Include | |||||||||||||||||||||||||||||||
GAAP | Intangible asset amortization | Foreign exchange (gain)/loss | Restructuring impacts | Contingent related party payable fair value adjustment | Contingent related party payable paid/accrued | Total adjustments | Adjusted GAAP | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Product sales and services | $ | 39,147 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 39,147 | ||||||||||||||||
License and research revenue | 528 | — | — | — | — | — | — | 528 | ||||||||||||||||||||||||
Total | 39,675 | — | — | — | — | — | — | 39,675 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Cost of products and services sold | 3,790 | — | — | — | — | — | — | 3,790 | ||||||||||||||||||||||||
Research and development | 8,095 | — | — | — | — | — | — | 8,095 | ||||||||||||||||||||||||
Selling, general and administrative | 11,563 | — | — | — | — | — | — | 11,563 | ||||||||||||||||||||||||
Intangible asset amortization | 564 | (564 | ) | — | — | — | — | (564 | ) | — | ||||||||||||||||||||||
Changes in fair value of related party contingent consideration | (9,906 | ) | — | — | — | 9,906 | 7,264 | 17,170 | 7,264 | |||||||||||||||||||||||
Restructuring costs | (549 | ) | — | — | 549 | — | — | 549 | — | |||||||||||||||||||||||
Total | 13,557 | (564 | ) | — | 549 | 9,906 | 7,264 | 17,155 | 30,712 | |||||||||||||||||||||||
Operating income (loss) | 26,118 | 564 | — | (549 | ) | (9,906 | ) | (7,264 | ) | (17,155 | ) | 8,963 | ||||||||||||||||||||
Investment and other income | 1,110 | — | — | — | — | — | — | 1,110 | ||||||||||||||||||||||||
Interest expense | (263 | ) | — | — | — | — | — | — | (263 | ) | ||||||||||||||||||||||
Other expense - changes in fair value of related party payable | 768 | — | — | — | (768 | ) | (963 | ) | (1,731 | ) | (963 | ) | ||||||||||||||||||||
Foreign exchange gain | (133 | ) | — | 133 | — | — | — | 133 | — | |||||||||||||||||||||||
Income (loss) before income taxes | 27,600 | 564 | 133 | (549 | ) | (10,674 | ) | (8,227 | ) | (18,753 | ) | 8,847 | ||||||||||||||||||||
Income tax provision (benefit) | 5,921 | 201 | — | — | (507 | ) | (515 | ) | (821 | ) | 5,100 | |||||||||||||||||||||
Net income (loss) | $ | 21,679 | $ | 363 | $ | 133 | $ | (549 | ) | $ | (10,167 | ) | $ | (7,712 | ) | $ | (17,932 | ) | $ | 3,747 | ||||||||||||
Net income (loss) per share - diluted(1) | 0.52 | $ | 0.01 | $ | — | $ | (0.01 | ) | $ | (0.25 | ) | $ | (0.19 | ) | $ | (0.43 | ) | $ | 0.09 | |||||||||||||
Weighted average number of shares outstanding - diluted | 41,339 | 41,339 | 41,339 | 41,339 | 41,339 | 41,339 | 41,339 | 41,339 |
(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 September 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||
Exclude | Include | |||||||||||||||||||||||||||||||||||||||||
GAAP | Intangible asset amortization | Foreign exchange (gain)/loss | Contingent related party payable fair value adjustment | Contingent related party payable paid/accrued | Total adjustments | Adjusted GAAP | ||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||
Product sales and services | $ | 31,340 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 31,340 | ||||||||||||||||||||||||||||
License and research revenue | 747 | — | — | — | — | — | 747 | |||||||||||||||||||||||||||||||||||
Total | 32,087 | — | — | — | — | — | 32,087 | |||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||
Cost of products and services sold | 2,844 | — | — | — | — | — | 2,844 | |||||||||||||||||||||||||||||||||||
Research and development | 8,143 | — | — | — | — | — | 8,143 | |||||||||||||||||||||||||||||||||||
Selling, general and administrative | 12,740 | — | — | — | — | — | 12,740 | |||||||||||||||||||||||||||||||||||
Intangible asset amortization | 3,702 | (3,702 | ) | — | — | — | (3,702 | ) | — | |||||||||||||||||||||||||||||||||
Changes in fair value of related party contingent consideration | 20,848 | — | — | (20,848 | ) | 5,884 | (14,964 | ) | 5,884 | |||||||||||||||||||||||||||||||||
Restructuring costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total | 48,277 | (3,702 | ) | — | (20,848 | ) | 5,884 | (18,666 | ) | 29,611 | ||||||||||||||||||||||||||||||||
Operating income (loss) | (16,190 | ) | 3,702 | — | 20,848 | (5,884 | ) | 18,666 | 2,476 | |||||||||||||||||||||||||||||||||
Investment and other income | 490 | — | — | — | — | — | 490 | |||||||||||||||||||||||||||||||||||
Interest expense | (264 | ) | — | — | — | — | — | (264 | ) | |||||||||||||||||||||||||||||||||
Other expense - changes in fair value of related party payable | (1,828 | ) | — | — | 1,828 | (785 | ) | 1,043 | (785 | ) | ||||||||||||||||||||||||||||||||
Foreign exchange gain | 1,249 | — | (1,249 | ) | — | — | (1,249 | ) | — | |||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (16,543 | ) | 3,702 | (1,249 | ) | 22,676 | (6,669 | ) | 18,460 | 1,917 | ||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 3,451 | 1,329 | — | 1,021 | (385 | ) | 1,965 | 5,416 | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (19,994 | ) | $ | 2,373 | $ | (1,249 | ) | $ | 21,655 | $ | (6,284 | ) | $ | 16,495 | $ | (3,499 | ) | ||||||||||||||||||||||||
Net income (loss) per share - diluted(1) | (0.48 | ) | $ | 0.06 | $ | (0.03 | ) | $ | 0.53 | $ | (0.15 | ) | $ | 0.40 | $ | (0.08 | ) | |||||||||||||||||||||||||
Weighted average number of shares outstanding - diluted | 41,241 | 41,241 | 41,241 | 41,241 | 41,241 | 41,241 | 41,241 |
(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 nine-months ended September 30, 2017 | ||||||||||||||||||||||||||||||||||||||||
Exclude | Include | |||||||||||||||||||||||||||||||||||||||
GAAP | Intangible asset amortization | Foreign exchange (gain)/loss | Restructuring impacts | Purchase accounting adjustment - FSC | License revenue | Contingent related party payable fair value adjustment | Contingent related party payable paid/accrued | Total adjustments | Adjusted GAAP | |||||||||||||||||||||||||||||||
adjustment | ||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||
Product sales and services | $ | 138,009 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 138,009 | ||||||||||||||||||||
License and research revenue | 484 | — | — | — | — | 1,100 | — | — | 1,100 | 1,584 | ||||||||||||||||||||||||||||||
Total | 138,493 | — | — | — | — | 1,100 | — | — | 1,100 | 139,593 | ||||||||||||||||||||||||||||||
Operating expenses: | — | |||||||||||||||||||||||||||||||||||||||
Cost of products and services sold | 12,253 | — | — | — | (46 | ) | — | — | — | (46 | ) | 12,207 | ||||||||||||||||||||||||||||
Research and development | 22,093 | — | — | — | — | — | — | — | — | 22,093 | ||||||||||||||||||||||||||||||
Selling, general and administrative | 35,804 | — | — | — | — | — | — | — | — | 35,804 | ||||||||||||||||||||||||||||||
Intangible asset amortization | 1,692 | (1,692 | ) | — | — | — | — | — | — | (1,692 | ) | — | ||||||||||||||||||||||||||||
Changes in fair value of related party contingent consideration | (30,107 | ) | — | — | — | — | — | 30,107 | 25,396 | 55,503 | 25,396 | |||||||||||||||||||||||||||||
Restructuring charges | 3,173 | — | — | (3,173 | ) | — | — | — | — | (3,173 | ) | — | ||||||||||||||||||||||||||||
Total | 44,908 | (1,692 | ) | — | (3,173 | ) | (46 | ) | — | 30,107 | 25,396 | 50,592 | 95,500 | |||||||||||||||||||||||||||
Operating income (loss) | 93,585 | 1,692 | — | 3,173 | 46 | 1,100 | (30,107 | ) | (25,396 | ) | (49,492 | ) | 44,093 | |||||||||||||||||||||||||||
Investment and other income | 2,689 | — | — | — | — | — | — | — | — | 2,689 | ||||||||||||||||||||||||||||||
Interest expense | (789 | ) | — | — | — | — | — | — | — | — | (789 | ) | ||||||||||||||||||||||||||||
Other expense - changes in fair value of related party payable | 2,988 | — | — | — | — | — | (2,988 | ) | (3,428 | ) | (6,416 | ) | (3,428 | ) | ||||||||||||||||||||||||||
Foreign exchange gain | (127 | ) | — | 127 | — | — | — | — | — | 127 | — | |||||||||||||||||||||||||||||
Income (loss) before income taxes | 98,346 | 1,692 | 127 | 3,173 | 46 | 1,100 | (33,095 | ) | (28,824 | ) | (55,781 | ) | 42,565 | |||||||||||||||||||||||||||
Income tax provision (benefit) | 21,830 | 603 | — | — | 17 | — | (1,776 | ) | (1,822 | ) | (2,978 | ) | 18,852 | |||||||||||||||||||||||||||
Net income (loss) | $ | 76,516 | $ | 1,089 | $ | 127 | $ | 3,173 | $ | 29 | $ | 1,100 | $ | (31,319 | ) | $ | (27,002 | ) | $ | (52,803 | ) | $ | 23,713 | |||||||||||||||||
Net income (loss) per share - diluted(1) | 1.81 | $ | 0.03 | $ | — | $ | 0.08 | $ | — | $ | 0.03 | $ | (0.74 | ) | $ | (0.64 | ) | $ | (1.25 | ) | $ | 0.56 | ||||||||||||||||||
Weighted average number of shares outstanding - diluted | 42,194 | 42,194 | 42,194 | 42,194 | 42,194 | 42,194 | 42,194 | 42,194 | 42,194 | 42,194 |
(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 nine-months ended September 30, 2016 | ||||||||||||||||||||||||||||||||
Exclude | Include | |||||||||||||||||||||||||||||||
GAAP | Intangible asset amortization | Foreign exchange (gain)/loss | Purchase accounting adjustments - FSC | Contingent related party payable fair value adjustment | Contingent related party payable paid/accrued | Total adjustments | Adjusted GAAP | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Product sales and services | $ | 104,858 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 104,858 | ||||||||||||||||
License and research revenue | 2,303 | — | — | — | — | — | — | 2,303 | ||||||||||||||||||||||||
Total | 107,161 | — | — | — | — | — | — | 107,161 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Cost of products and services sold | 10,657 | — | — | (1,525 | ) | — | — | (1,525 | ) | 9,132 | ||||||||||||||||||||||
Research and development | 21,135 | — | — | — | — | — | — | 21,135 | ||||||||||||||||||||||||
Selling, general and administrative | 33,491 | — | — | — | — | — | — | 33,491 | ||||||||||||||||||||||||
Intangible asset amortization | 10,918 | (10,918 | ) | — | — | — | — | (10,918 | ) | — | ||||||||||||||||||||||
Changes in fair value of related party contingent consideration | 52,989 | — | — | — | (52,989 | ) | 19,321 | (33,668 | ) | 19,321 | ||||||||||||||||||||||
Total | 129,190 | (10,918 | ) | — | (1,525 | ) | (52,989 | ) | 19,321 | (46,111 | ) | 83,079 | ||||||||||||||||||||
Operating income (loss) | (22,029 | ) | 10,918 | — | 1,525 | 52,989 | (19,321 | ) | 46,111 | 24,082 | ||||||||||||||||||||||
Investment and other income | 1,080 | — | — | — | — | — | — | 1,080 | ||||||||||||||||||||||||
Interest expense | (702 | ) | — | — | — | — | — | — | (702 | ) | ||||||||||||||||||||||
Other expense - changes in fair value of related party payable | (6,135 | ) | — | — | — | 6,135 | (2,618 | ) | 3,517 | (2,618 | ) | |||||||||||||||||||||
Foreign exchange gain | (12 | ) | — | 12 | — | — | — | 12 | — | |||||||||||||||||||||||
Income (loss) before income taxes | (27,798 | ) | 10,918 | 12 | 1,525 | 59,124 | (21,939 | ) | 49,640 | 21,842 | ||||||||||||||||||||||
Income tax provision (benefit) | 18,212 | 3,920 | — | 533 | 2,986 | (1,165 | ) | 6,274 | 24,486 | |||||||||||||||||||||||
Net income (loss) | $ | (46,010 | ) | $ | 6,998 | $ | 12 | $ | 992 | $ | 56,138 | $ | (20,774 | ) | $ | 43,366 | $ | (2,644 | ) | |||||||||||||
Net income (loss) per share - diluted(1) | (1.12 | ) | $ | 0.17 | $ | — | $ | 0.02 | $ | 1.36 | $ | (0.50 | ) | $ | 1.05 | $ | (0.07 | ) | ||||||||||||||
Weighted average number of shares outstanding - diluted | 41,241 | 41,241 | 41,241 | 41,241 | 41,241 | 41,241 | 41,241 | 41,241 |
(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.