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8-K - FORM 8-K - MEDICIS PHARMACEUTICAL CORP | p18676e8vk.htm |
Exhibit 99.1
CONTACT: | ||
Kara Stancell (media) | 7720 N. Dobson Road | |
(480) 291-5454 | Scottsdale, AZ 85256 | |
Sean Andrews (investors) | (602) 808-8800 | |
(480) 291-5854 | www.Medicis.com |
MEDICIS REPORTS FOURTH QUARTER AND YEAR-END 2010 RESULTS
LIPOSONIX AND BUSINESS DEVELOPMENT UPDATES
SCOTTSDALE, Ariz.February 25, 2011
2010 Financial Highlights
| Revenues increased approximately 22.4% | ||
| Non-GAAP net income increased approximately 40.3% | ||
| Non-GAAP EPS increased approximately 36.2% | ||
| GAAP net income increased approximately 62.4% | ||
| GAAP EPS increased approximately 56.7% | ||
| Gross profit margin of approximately 90.0% | ||
| Cash, cash equivalents and short- and long-term investments of approximately $725 million | ||
| Cash flow from operations of approximately $178.4 million | ||
| Dividend increase of 50% |
Fourth Quarter 2010 Highlights
| Revenues of $182 million | ||
| Non-GAAP EPS of $0.60 | ||
| GAAP EPS of $0.37 |
Medicis (NYSE:MRX) today announced revenues of approximately $700.0 million for the twelve months
ended December 31, 2010, compared to revenues of approximately $571.9 million for the twelve months
ended December 31, 2009, which represents an increase of approximately $128.1 million, or
approximately 22.4%.
Non-generally accepted accounting principles (non-GAAP, defined below) diluted earnings per share
(EPS, defined below) for the twelve months ended December 31, 2010, was $2.28, compared to non-GAAP
diluted EPS of $1.68 for the twelve months ended December 31, 2009, which represents an increase of
$0.60 per diluted share, or approximately 36.2% (see Unaudited Reconciliation of Non-GAAP
Adjustments in the financial tables of this press release). GAAP diluted EPS for the twelve
months ended December 31, 2010, was $1.89, compared to GAAP diluted EPS of $1.21 for the twelve
months ended December 31, 2009, which represents an increase of $0.68 per diluted share, or
approximately 56.7%.
The Companys achievement of approximately $700.0 million in revenues and non-GAAP diluted EPS of
$2.28 is consistent with the Companys published guidance of $698-$703 million in revenues and
$2.25-$2.30 in non-GAAP diluted EPS for the twelve months ended December 31, 2010.
We are pleased to announce solid fourth quarter and year-end 2010 results, said Jonah Shacknai,
Chairman and Chief Executive Officer. During 2010, we were able to defend, fortify and grow our
leading dermatological franchises. We also experienced healthy growth in the aesthetics brands
with the improvement of the U.S. economy and the success of our promotional efforts. The U.S. Food
and Drug
Administration (FDA) approved additional strengths of SOLODYN®, RESTYLANE-L®
and PERLANE-L®. Additionally, the U.S. Patent and Trademark Office completed
re-examination of a foundational patent for SOLODYN with validation of the Medicis position.
Medicis secured an additional patent for SOLODYN and received a Notice of Allowance for another
patent related to SOLODYN and a reissued patent for ZIANA®. In 2011, we will focus on
opportunities to leverage our experience in our core dermatology and facial aesthetic franchises
and further enhance our development pipeline. We are grateful to our physicians and our
shareholders for their continued support as we build on the strength of our heritage for the
future.
Non-GAAP net income for the twelve months ended December 31, 2010, was approximately $149.5
million, compared to non-GAAP net income of approximately $106.5 million for the twelve months
ended December 31, 2009, which represents an increase of approximately $43.0 million, or
approximately 40.3%. Non-GAAP net income for the twelve months ended December 31, 2010, excludes
charges totaling approximately $31.9 million (pre-tax), consisting of research and development
(R&D) milestone payments to Medicis partners and related transaction costs totaling approximately
$19.8 million, a $9.8 million charge related to the write-down of long-lived assets associated with
the LipoSonix business, based on expected future cash flows, and a $2.3 million charge related to
the write-down of an intangible asset associated with the planned discontinuation of certain
non-primary products. Non-GAAP net income for the twelve months ended December 31, 2009, excluded
charges totaling approximately $33.5 million (pre-tax), consisting of R&D milestone payments to
Medicis partners and related transaction costs totaling $32.8 million and a $2.9 million
(non-deductible) charge related to the Companys investment in Revance, partially offset by a $2.2
million net gain on the sale of Medicis Pediatrics to BioMarin Pharmaceutical, Inc. (BioMarin).
GAAP net income for the twelve months ended December 31, 2010, was approximately $123.3 million,
compared to GAAP net income of approximately $76.0 million for the twelve months ended December 31,
2009, which represents an increase of approximately $47.3 million, or approximately 62.4%.
Fourth Quarter 2010
For the three months ended December 31, 2010, Medicis recorded revenues of approximately $182.1
million, compared to revenues of approximately $179.0 million for the three months ended December
31, 2009, representing an increase of approximately $3.1 million, or approximately 1.7%.
Non-GAAP diluted EPS for the three months ended December 31, 2010, was $0.60, compared to non-GAAP
diluted EPS of $0.68 for the three months ended December 31, 2009, which represents a decrease of
$0.08 per diluted share, or approximately 12.9% (see Unaudited Reconciliation of Non-GAAP
Adjustments in the financial tables of this press release). GAAP diluted EPS for the three months
ended December 31, 2010, was $0.37, compared to GAAP diluted EPS of $0.60 for the three months
ended December 31, 2009, which represents a decrease of $0.23 per diluted share, or approximately
38.9%.
The Companys achievement of approximately $182.1 million in revenues and non-GAAP diluted EPS of
$0.60 is consistent with the Companys published guidance of $180-$185 million in revenues and
$0.57-$0.62 in non-GAAP diluted EPS for the three months ended December 31, 2010.
Non-GAAP net income for the three months ended December 31, 2010, was approximately $39.4 million,
compared to non-GAAP net income of approximately $44.5 million for the three months ended December
31, 2009, which represents a decrease of approximately $5.1 million, or approximately 11.6%.
Non-GAAP net income for the three months ended December 31, 2010, excludes charges totaling
approximately $23.7 million (pre-tax), consisting of R&D milestone payments to Medicis partners
totaling approximately $13.9 million and a $9.8 million charge related to the write-down of
long-lived assets associated with the LipoSonix business, based on expected future cash flows.
Non-GAAP net income for the three months ended December 31, 2009, excluded charges totaling
approximately $7.8 million (pre-tax), consisting of R&D milestone payments to Medicis partners and
related transaction costs.
GAAP net income for the three months ended December 31, 2010, was approximately $23.9 million,
compared to GAAP net income of approximately $38.9 million for the three months ended December 31,
2009, which represents a decrease of approximately $15.0 million, or approximately 38.6%.
Acne Products
Medicis recorded revenues of approximately $482.4 million from sales of its acne products for the
twelve months ended December 31, 2010, compared to revenues of approximately $398.9 million for the
twelve months ended December 31, 2009, which represents an increase of approximately $83.5 million,
or approximately 20.9%. This increase is due primarily to the strong demand for SOLODYN,
TRIAZ® and ZIANA, resulting in increased sales. For the three months ended December 31,
2010, the Company recorded revenues of approximately $118.9 million from sales of its acne
products, compared to revenues of approximately $131.4 million for the three months ended December
31, 2009, which represents a decrease of approximately $12.5 million, or approximately 9.5%. This
decrease is due primarily to increased returns reserves associated with the newest three strengths
of SOLODYN, and planning for the early 2011 discontinuation of TRIAZ and the Companys decision to
no longer promote PLEXION®. The Medicis Acne Products category includes primarily
SOLODYN and ZIANA.
Non-Acne Products
Medicis recorded revenues of approximately $175.0 million associated with its non-acne products for
the twelve months ended December 31, 2010, compared to revenues of approximately $133.6 million for
the twelve months ended December 31, 2009, which represents an increase of approximately $41.4
million, or approximately 31.0%. This increase is due primarily to increased sales of
DYSPORT®, the RESTYLANE® franchise and VANOS®, offset by decreased
sales of LOPROX® due to the introduction of generic competition. For the three months
ended December 31, 2010, the Company recorded revenues of approximately $50.2 million associated
with its non-acne products, compared to revenues of approximately $37.5 million for the three
months ended December 31, 2009, which represents an increase of approximately $12.7 million, or
approximately 33.8%. This increase is due primarily to increased sales of DYSPORT and the
RESTYLANE franchise. The Medicis Non-Acne Products category includes primarily DYSPORT,
PERLANE®, RESTYLANE and VANOS.
Other Non-Dermatological Products
Medicis recorded revenues of approximately $42.6 million associated with its other
non-dermatological products for the twelve months ended December 31, 2010, compared to revenues of
approximately $39.5 million for the twelve months ended December 31, 2009, which represents an
increase of approximately $3.1 million, or approximately 8.0%. For the three months ended December
31, 2010, the Company recorded revenues of approximately $13.0 million associated with its other
non-dermatological products, compared to revenues of approximately $10.1 million for the three
months ended December 31, 2009, which represents an increase of approximately $2.9 million, or
approximately 28.9%. The Medicis Other Non-Dermatological Products category includes primarily
AMMONUL®, BUPHENYL®, the LipoSonix system1 and contract revenue.
Other Income Statement Items
Gross profit margin for the twelve months ended December 31, 2010, was approximately 90.0%, and
approximately 89.2% for the three months ended December 31, 2010.
Selling, general and administrative (SG&A) expense for the twelve months ended December 31, 2010,
was approximately $323.1 million, or approximately 46.2% of revenues, compared to approximately
$282.2 million, or approximately 49.3% of revenues, for the twelve months ended December 31, 2009.
For the three months ended December 31, 2010, the Company recorded SG&A expense of
approximately $83.0 million, or approximately 45.6% of revenues, compared to approximately $68.2
million, or approximately 38.1% of revenues, for the three months ended December 31, 2009.
R&D expense for the twelve months ended December 31, 2010, was approximately $58.3 million,
compared to approximately $72.5 million for the twelve months ended December 31, 2009. R&D expense
for the twelve months ended December 31, 2010, includes purchased R&D charges totaling $18.9
million associated with milestone payments to Medicis partners. R&D expense for the twelve months
ended December 31, 2009, included purchased R&D charges totaling $32.5 million associated with
milestone payments to Medicis partners. For the three months ended December 31, 2010, the Company
recorded R&D expense of approximately $25.2 million, compared to approximately $19.7 million for
the three months ended December 31, 2009. R&D expense for the three months ended December 31,
2010, includes purchased R&D charges totaling $13.9 million associated with milestone payments to
Medicis partners. R&D expense for the three months ended December 31, 2009, included purchased R&D
charges totaling $7.5 million associated with milestone payments to Medicis partners.
Other income for the twelve months ended December 31, 2009, was $0.9 million, which consisted of a
$2.2 million (pre-tax) net gain on the sale of Medicis Pediatrics to BioMarin and a $1.5 million
gain related to our auction rate securities investments that had been other-than-temporarily
impaired in 2008, partially offset by a $2.9 million (non-deductible) charge related to our
investment in Revance.
Cash Flow
The Companys cash flow from operations was approximately $178.4 million for the twelve months
ended December 31, 2010, and approximately $57.5 million for the three months ended December 31,
2010.
LipoSonix and Business Development Updates
As a result of the Companys strategic planning process and the current regulatory and commercial
capital equipment environment, the Company has determined to explore strategic alternatives as it
relates to its LipoSonix business including but not limited to the sale of the stand-alone
business. The LipoSonix system1 is a nonsurgical, noninvasive fat reduction technology
that is used to destroy targeted abdominal fat just beneath the skin. The average waistline
reduction after a single treatment is approximately 2.8 cm which could equal one dress or pant
size. Results are typically seen in 8 to 12 weeks. The LipoSonix system is currently marketed in
Europe and Canada, and multiple systems have been sold in Japan. The Company will continue to seek
FDA approval for the LipoSonix system in the United States.
In addition to other factors, the Company is cultivating several business development transactions
relating more closely to its core dermatology franchise that we believe will yield a higher return
on investment than the LipoSonix unit. The Company plans to pursue those opportunities vigorously
while supporting its existing LipoSonix customers worldwide during the transition. Current sales,
marketing and service operations will remain unchanged in the interim. We believe that the
LipoSonix business can offer an attractive opportunity to an organization focused on the capital
equipment market or medical device business. As a result of this decision, the Company will
classify the LipoSonix business as a discontinued operation for financial statement reporting
purposes beginning in the first quarter of 2011.
Shacknai continued, As we consider strategic alternatives for LipoSonix, we would like to thank
the employees of LipoSonix for their contributions to the significant innovations and technological
progress we have achieved in the rapidly growing body contouring market.
Medicis has engaged Deutsche Bank to assist the Company in its exploration of strategic
alternatives for LipoSonix.
2011 Guidance
Based upon information available currently to the Companys management, the Companys financial
guidance for 2011 is anticipated as follows:
Calendar 2011
(in millions, except per share amounts)
First | Second | Third | Fourth | Calendar | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year-End | ||||||||||||||||
(3/31/11) | (6/30/11) | (9/30/11) | (12/31/11) | 2011 | ||||||||||||||||
Estimated | Estimated | Estimated | Estimated | Estimated | ||||||||||||||||
Revenue |
$ | 160-$170 | $ | 185-$195 | $ | 190-$200 | $ | 195-$205 | $ | 730-$770 | ||||||||||
Non-GAAP diluted
EPS objectives |
$ | 0.45-$0.50 | $ | 0.61-$0.66 | $ | 0.63-$0.68 | $ | 0.71-$0.76 | $ | 2.40-$2.60 |
Additional 2011 Guidance Considerations
| Revenue and non-GAAP diluted EPS objectives include certain assumptions associated with: |
| continued acceptance of newer strengths of SOLODYN by physicians; | ||
| the FDAs requirement, effective March 2011, that prescription benzoyl peroxide products that are not approved through a New Drug Application, such as TRIAZ, not be sold as prescription products, which will affect sales in the Acne Products category; | ||
| the Companys decision to no longer promote PLEXION; | ||
| the exclusion of all revenue and expenses associated with the LipoSonix unit as the Company is classifying the LipoSonix business as a discontinued operation beginning in the first quarter of 2011; | ||
| competition in the dermal filler and botulinum toxin markets; | ||
| gross profit margins of approximately 90-92% of revenues; | ||
| SG&A expenses of approximately 45-47% of revenues; | ||
| R&D expenses of approximately 6-7% of revenues; |
| depreciation and amortization of approximately $30-$32 million for the year; | ||
| effective tax rate of approximately 38-39%; and | ||
| fully diluted weighted average shares outstanding of approximately 65-66 million shares. |
The above guidance does not take into account the following:
| special charges associated with R&D milestones or contract payments; | ||
| additional recognized losses on our auction rate securities investments; | ||
| recognized losses resulting from impairments on our intangible assets; | ||
| the impact of accounting for new collaborative arrangements with Medicis partners; | ||
| the financial impact of changes in accounting or governmental pronouncements; | ||
| charges related to the accounting for our investment in Revance or Hyperion; | ||
| material changes to the demand for ZIANA associated with the launch of a competitive product; | ||
| material changes to our assumptions regarding the demand for SOLODYN associated with the anticipated November 2011 launch of generic versions of SOLODYN in 45 mg, 90 mg and 135 mg strengths; | ||
| material changes to our assumptions regarding prescription trends toward the newer strengths of SOLODYN; | ||
| the timing of additional SOLODYN patent allowances, if any; | ||
| uncertainty relating to the reduction of the average selling price, including reserves, for covered products as a result of the rise in costs associated with consumer rebate programs, including MediSAVE, RESTYLANE Rewards® and other point-of-sale offers; | ||
| changes in reimbursement policies of health plans and other health insurers; | ||
| the impact of the U.S. economy on the Companys aesthetic and therapeutic franchises; and | ||
| significant changes in assumptions and estimates used for calculating various sales reserves. |
At the time of this disclosure, Medicis believes these objectives are attainable based upon
information currently available to the Companys management.
Diluted Earnings Per Share
Diluted earnings per share amounts are calculated using the if-converted method of accounting
regardless of whether the Companys outstanding convertible bonds meet the criteria for conversion
and regardless of whether the bondholders actually convert their bonds into shares.
Use of Non-GAAP Financial Information
The Company has disclosed non-GAAP financial information in this press release to provide
meaningful supplemental information regarding its operational performance and to enhance its
investors overall
understanding of its core financial performance. Management measures the
Companys performance
using non-GAAP financial measures, such as those that are disclosed in this press release. This
information facilitates managements internal comparisons to the Companys historical core
operating results and competitors core operating results, and is a basis for financial decision
making. Management believes that Medicis investors benefit from seeing the Companys results on
the same basis as management, in addition to the GAAP presentation. In our view, the non-GAAP
financial measures are informative to investors, allowing them to focus on the ongoing operations
and core results of Medicis business. Historically, Medicis has reported similar non-GAAP
information to its investors and believes that the inclusion of comparative numbers provides
consistency in the Companys financial disclosures. This information is not in accordance with, or
an alternative for, information prepared using GAAP. Non-GAAP net income excludes certain items,
such as R&D charges which result from payments made to Medicis partners, transaction costs, the
impairment of long-lived assets, gains resulting from the sale of subsidiaries, charges related to
the accounting for our investment in Revance or Hyperion and litigation reserves. These items may
have a material effect on the Companys net income and diluted earnings per common share calculated
in accordance with GAAP. The Company excludes such charges and the related tax benefits when
analyzing its financial results as the items are distinguishable events. Management believes that,
by viewing the Companys results of operations excluding these charges, investors are given an
indication of the ongoing results of the Companys operations.
About Medicis
Medicis is the leading independent specialty pharmaceutical company in the United States focusing
primarily on the treatment of dermatological and aesthetic conditions. The Company is dedicated to
helping patients attain a healthy and youthful appearance and self-image. Medicis has leading
branded prescription products in a number of therapeutic and aesthetic categories. The Companys
products have earned wide acceptance by both physicians and patients due to their clinical
effectiveness, high quality and cosmetic elegance.
The Companys products include the brands DYSPORT® (abobotulinumtoxinA) 300 Units for
Injection, PERLANE® Injectable Gel, PERLANE-L® Injectable Gel with 0.3%
Lidocaine, RESTYLANE® Injectable Gel, RESTYLANE-L® Injectable Gel with 0.3%
Lidocaine, DYNACIN® (minocycline HCl Tablets, USP), LOPROX® (ciclopirox) Gel
0.77% and Shampoo 1%, PLEXION® (sodium sulfacetamide 10% and sulfur 5%) Cleanser,
Cleansing Cloths and SCT, SOLODYN® (minocycline HCl, USP) Extended Release Tablets,
TRIAZ® (benzoyl peroxide) 3%, 6% and 9% Cleansers, Pads and Foaming Cloths,
VANOS® (fluocinonide) Cream 0.1%, ZIANA® (clindamycin phosphate 1.2% and
tretinoin 0.025%) Gel, AMMONUL® (sodium phenylacetate and sodium benzoate) Injection
10%/10%, BUPHENYL® (sodium phenylbutyrate) Tablets and Powder, the LIPOSONIX
system1 and the over-the-counter brand ESOTERICA®.
For more information about Medicis, please visit the Companys website at www.Medicis.com. Printed
copies of the Companys complete audited financial statements are available free of charge upon
request.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act. All statements included in this press release that address
activities, events or developments that Medicis expects, believes or anticipates will or may occur
in the future are forward-looking statements, including:
| the Companys future prospects; |
| revenues, gross profit margin, expense, tax rate and earnings guidance; | ||
| information regarding business development activities and future regulatory approval of the Companys products; | ||
| timing of FDA approval of the LipoSonix system1, if at all; | ||
| the commercial success of the Companys products; | ||
| the patentability of certain intellectual property; | ||
| the potential for generic competition to SOLODYN and other Medicis products; | ||
| the future expansion of the aesthetics market; | ||
| the occurrence, timing and financial terms or effect of the Companys proposed disposition of LipoSonix and other potential business development transactions; and | ||
| expectations relating to the Companys product development pipeline. |
These statements are based on certain assumptions made by the Company based on its experience and
perception of historical trends, current conditions, expected future developments and other factors
it believes are appropriate in the circumstances. No assurances can be given, however, that these
activities, events or developments will occur or that such results will be achieved. Such
statements are subject to a number of assumptions, risks and uncertainties, many of which are
beyond the control of the Company. The Companys business is subject to all risk factors outlined
in the Companys most recent annual report on Form 10-K for the year ended December 31, 2009, and
other documents we file with the Securities and Exchange Commission (SEC). At the time of this
press release, the Company cannot, among other things, assess the likelihood, timing or forthcoming
results of R&D projects, the risks associated with the FDA approval process and risks associated
with significant competition within the Companys industry, nor can the Company validate its
assumptions of the full impact on its business of the approval of competitive generic versions of
the Companys primary brands, and any future competitive product approvals that may affect the
Companys brands.
Additionally, Medicis may acquire and/or license products or technologies from third parties to
enter into new strategic markets. The Company periodically makes up-front, non-refundable payments
to third parties for R&D work that has been completed and periodically makes additional
non-refundable payments for the achievement of various milestones. There can be no certainty about
the periods in which these potential payments could be made, nor if any payments such as these will
be made at all. Any estimated future guidance does not include, among other things, the potential
payments associated with any such transactions.
There are a number of additional important factors that could cause actual results to differ
materially from those projected, including:
| the anticipated size of the markets and demand for the Companys products; | ||
| the availability of product supply or changes in the costs of raw materials; | ||
| the receipt of required regulatory approvals; | ||
| competitive developments affecting our products; | ||
| product liability claims; |
| the introduction of federal and/or state regulations relating to the Companys business; | ||
| dependence on sales of key products; | ||
| changes in the treatment practices of physicians that currently prescribe the Companys products, including prescription levels; | ||
| the uncertainty of future financial results and fluctuations in operating results, and the factors that may attribute to such fluctuations as set forth in our SEC filings; | ||
| dependence on the Companys strategy (including the uncertainty of license payments and/or other payments due from third parties); | ||
| changes in reimbursement policies of health plans and other health insurers; | ||
| decreases in revenues associated with the FDAs requirement, effective March 2011, that prescription benzoyl peroxide products that are not approved through a New Drug Application, such as TRIAZ, not be sold as prescription products; | ||
| the timing and success of new product development by the Company or third parties; | ||
| the inability to secure patent protection from filed patent applications, inadequate protection of the Companys intellectual property or challenges to the validity or enforceability of the Medicis proprietary rights; | ||
| the risks of pending and future litigation or government investigations; and | ||
| other risks described from time to time in the Companys filings with the SEC. |
Forward-looking statements represent the judgment of the Companys management as of the date of
this release and the Company disclaims any intent or obligation to update any forward-looking
statements contained herein, which speak as of the date hereof.
NOTE: Full prescribing information for any of the Companys prescription products is available by
contacting the Company. All trademarks are the property of their respective owners.
1 | The LipoSonix system is not approved or cleared for sale in the U.S. |
Medicis Pharmaceutical Corporation
Summary Statements of Operations (Unaudited)
(in thousands, except per share data)
(in thousands, except per share data)
Three months ended | Twelve months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Product revenues |
$ | 180,080 | $ | 176,157 | $ | 691,602 | $ | 561,761 | ||||||||
Contract revenues |
2,039 | 2,883 | 8,366 | 10,154 | ||||||||||||
Total revenues |
182,119 | 179,040 | 699,968 | 571,915 | ||||||||||||
Cost of revenues |
19,669 | 20,780 | 69,981 | 56,833 | ||||||||||||
Gross profit |
162,450 | 158,260 | 629,987 | 515,082 | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling, general and administrative |
82,965 | 68,203 | 323,074 | 282,218 | ||||||||||||
Research and development |
25,192 | 19,745 | 58,282 | 72,497 | ||||||||||||
Depreciation and amortization |
7,804 | 6,859 | 29,344 | 29,047 | ||||||||||||
Impairment of long-lived assets |
9,791 | | 12,084 | | ||||||||||||
Total operating expenses |
125,752 | 94,807 | 422,784 | 383,762 | ||||||||||||
Operating income |
36,698 | 63,453 | 207,203 | 131,320 | ||||||||||||
Interest (income) expense, net |
(58 | ) | (386 | ) | 118 | (3,403 | ) | |||||||||
Other (income) expense, net |
| (5 | ) | 257 | (867 | ) | ||||||||||
Income tax expense |
12,868 | 24,962 | 83,493 | 59,639 | ||||||||||||
Net income |
$ | 23,888 | $ | 38,882 | $ | 123,335 | $ | 75,951 | ||||||||
Basic net income per common share |
$ | 0.39 | $ | 0.65 | $ | 2.05 | $ | 1.29 | ||||||||
Diluted net income per common share |
$ | 0.37 | $ | 0.60 | $ | 1.89 | $ | 1.21 | ||||||||
Shares used in basic net income per common share |
58,881 | 57,698 | 58,430 | 57,252 | ||||||||||||
Shares used in diluted net income per common share |
65,172 | 63,890 | 64,601 | 63,172 | ||||||||||||
Cash flow from operations |
$ | 57,483 | $ | 40,449 | $ | 178,407 | $ | 177,885 |
Medicis Pharmaceutical Corporation
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands, except per share data)
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands, except per share data)
Three months ended | Three months ended | |||||||||||||||
December 31, 2010 | December 31, 2009 | |||||||||||||||
Dollar Value | EPS Impact | Dollar Value | EPS Impact | |||||||||||||
GAAP net income |
$ | 23,888 | $ | 38,882 | ||||||||||||
Less: income allocated to participating securities |
(679 | ) | (1,254 | ) | ||||||||||||
GAAP net income attributable to common shareholders |
23,209 | $ | 0.39 | 37,628 | $ | 0.65 | ||||||||||
Less: net undistributed earnings allocated to unvested
shareholders |
(4 | ) | (7 | ) | ||||||||||||
Interest expense and associated bond offering costs
(tax-effected) |
666 | {a} | 666 | {a} | ||||||||||||
GAAP if-converted net income and diluted EPS |
23,871 | $ | 0.37 | 38,287 | $ | 0.60 | ||||||||||
Non-GAAP adjustments: |
||||||||||||||||
Research and development
expenses related to our
collaborations |
13,900 | $ | 0.21 | 7,800 | $ | 0.12 | ||||||||||
Impairment of long-lived assets |
9,791 | $ | 0.15 | | | |||||||||||
Income tax effects related to
the above transactions |
(8,207 | ) | $ | (0.13 | ) | (2,140 | ) | $ | (0.04 | ) | ||||||
Less: income allocated to
participating securities and
net undistributed earnings
allocated to unvested
shareholders related to the
above transactions |
(462 | ) | | (185 | ) | | ||||||||||
Non-GAAP if-converted net income and diluted EPS |
$ | 38,893 | $ | 0.60 | $ | 43,762 | $ | 0.68 | ||||||||
Shares used in basic net
income per common share |
58,881 | 57,698 | ||||||||||||||
Shares used in diluted net
income per common share |
65,172 | 63,890 |
{a} | In order to determine if-converted net income, the tax-effected net interest on the 2.5% and 1.5% contingent convertible notes of $0.7 million are added back to GAAP net income for the three months ended December 31, 2010 and December 31, 2009. |
Medicis Pharmaceutical Corporation
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands, except per share data)
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands, except per share data)
Twelve months ended | Twelve months ended | |||||||||||||||
December 31, 2010 | December 31, 2009 | |||||||||||||||
Dollar Value | EPS Impact | Dollar Value | EPS Impact | |||||||||||||
GAAP net income |
$ | 123,335 | $ | 75,951 | ||||||||||||
Less: income allocated to participating securities |
(3,807 | ) | (2,363 | ) | ||||||||||||
GAAP net income attributable to common shareholders |
119,528 | $ | 2.05 | 73,588 | $ | 1.29 | ||||||||||
Less: net undistributed earnings allocated to unvested shareholders |
(20 | ) | (3 | ) | ||||||||||||
Interest expense and associated bond offering costs (tax-effected) |
2,666 | {a} | 2,666 | {a} | ||||||||||||
GAAP if-converted net income and diluted EPS |
122,174 | $ | 1.89 | 76,251 | $ | 1.21 | ||||||||||
Non-GAAP adjustments: |
||||||||||||||||
Research and development expenses related
to our collaborations |
18,900 | $ | 0.29 | 32,800 | $ | 0.52 | ||||||||||
Professional fees related to a strategic
collaboration agreement with a Medicis
partner |
877 | $ | 0.01 | | | |||||||||||
Impairment of long-lived assets |
12,084 | $ | 0.19 | | | |||||||||||
Charge related to our investment in Revance |
| | 2,886 | $ | 0.05 | |||||||||||
Gain related to the sale of Medicis
Pediatrics, net of professional fees |
| | (2,210 | ) | $ | (0.04 | ) | |||||||||
Income tax effects related to the above
transactions |
(5,738 | ) | $ | (0.09 | ) | (2,892 | ) | $ | (0.05 | ) | ||||||
Less: income allocated to participating
securities and net undistributed earnings
allocated to unvested shareholders related
to the above transactions |
(832 | ) | $ | (0.01 | ) | (968 | ) | $ | (0.01 | ) | ||||||
Non-GAAP if-converted net income and diluted EPS |
$ | 147,465 | $ | 2.28 | $ | 105,867 | $ | 1.68 | ||||||||
Shares used in basic net income per common
share |
58,430 | 57,252 | ||||||||||||||
Shares used in diluted net income per
common share |
64,601 | 63,172 |
{a} | In order to determine if-converted net income, the tax-effected net interest on the 2.5% and 1.5% contingent convertible notes of $2.7 million are added back to GAAP net income for the twelve months ended December 31, 2010 and December 31, 2009. |
Medicis Pharmaceutical Corporation
Balance Sheets
(in thousands)
Balance Sheets
(in thousands)
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
(unaudited) | ||||||||
Assets |
||||||||
Cash, cash equivalents & short-term
Investments |
$ | 704,182 | $ | 528,280 | ||||
Accounts receivable, net |
130,751 | 95,222 | ||||||
Inventory, net |
39,777 | 25,985 | ||||||
Deferred tax assets |
76,702 | 66,321 | ||||||
Other current assets |
15,662 | 16,525 | ||||||
Total current assets |
967,074 | 732,333 | ||||||
Property & equipment, net |
24,553 | 25,247 | ||||||
Intangible assets, net |
287,706 | 321,122 | ||||||
Deferred tax assets |
37,986 | 64,947 | ||||||
Long-term investments |
21,480 | 25,524 | ||||||
Other assets |
3,025 | 3,025 | ||||||
Total assets |
$ | 1,341,824 | $ | 1,172,198 | ||||
Liabilities and stockholders equity |
||||||||
Total current liabilities |
$ | 339,892 | $ | 297,694 | ||||
Contingent convertible senior notes 2.5%,
due 2032 |
169,145 | 169,145 | ||||||
Contingent convertible senior notes 1.5%,
due 2033 |
181 | 181 | ||||||
Other liabilities |
5,084 | 9,919 | ||||||
Stockholders equity |
827,522 | 695,259 | ||||||
Total liabilities and stockholders equity |
$ | 1,341,824 | $ | 1,172,198 | ||||
Working capital |
$ | 627,182 | $ | 434,639 | ||||
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