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EX-99.1 - PRESS RELEASE - PATHEON INC | d365451dex991.htm |
8-K - FORM 8-K - PATHEON INC | d365451d8k.htm |
Patheon
Fiscal 2012 Second Quarter Earnings
June 13, 2012
Exhibit 99.2 |
1
Forward-Looking Statements
This presentation contains forward-looking statements or information which reflect our
expectations regarding possible events,
conditions, our future growth, results of operations, performance, and business prospects and
opportunities. All statements, other than statements of historical fact, are
forward-looking statements. Forward-looking statements necessarily involve
significant known and unknown risks, assumptions and uncertainties that may cause our
actual results in future periods to differ materially from those expressed or implied
by such forward-looking statements. These risks are described in our 2011 Form 10-K, and our
other filings with the U.S. Securities and Exchange Commission and with the Canadian
Securities Administrators. Accordingly, you are cautioned not to place undue reliance on
forward-looking statements. These forward-looking statements are made as of the
date hereof, and except as required by law, we assume no obligation to update or revise them
to reflect new events or circumstances.
Use of Non-GAAP Financial Measures
These slides contain references to the following non-GAAP measures: (1) Adjusted
EBITDA which is income (loss) before
discontinued operations before repositioning expenses, interest expense, foreign exchange
losses reclassified from other comprehensive income, refinancing expenses, gains and
losses on sale of fixed assets, gain on extinguishment of debt, income taxes, asset
impairment charge, depreciation and amortization and other income and expenses; (2) Adjusted EBITDA Excluding
Certain Items,
which is Adjusted EBITDA
excluding the benefit from the contract cancellation recorded in fiscal 2011 and the
consulting fees associated with the strategic initiatives; and (3) Adjusted
Revenue and Adjusted Gross Profit,
which each
exclude the benefit from the contract cancellation recorded in fiscal 2011. Since Adjusted
EBITDA, Adjusted EBITDA before certain items, Adjusted Revenue and Adjusted Gross
Profit are non-GAAP measures that do not have a standardized meaning, they may not
be comparable to similar measures presented by other issuers. You are cautioned that
these non-GAAP measures should not be substituted for their comparable GAAP
measures as indicators of performance. We have included these measures
because we believe that this information is used by certain investors to assess our financial
performance, before non-cash charges and certain costs that we do not believe are
reflective of our underlying business. In addition, Adjusted EBITDA is used by
management as an internal measure of profitability.
Reconciliations of these non-GAAP measures to the closest U.S. GAAP
measures are included in the Appendix to this presentation. |
2
Highlights
Financial results
Transformation update
Conclusion
Agenda |
Second Quarter
Highlights 18.9% revenue growth*
Significant increase in gross profit*
* Excluding the $17.4M benefit from the contract cancellation
recorded in the second quarter of fiscal 2011
Raising
revenue
guidance
-
in excess of $725M
Transformation on track
3 |
4
100
120
140
160
180
200
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Revenue Overview
18.9% yr-yr revenue growth excluding the
benefit from contract cancellation
Revenue
(U.S. $ in millions)
Adjusted Revenue
(U.S. $ in millions)
100
120
140
160
180
200
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012 |
5
10
15
20
25
30
35
40
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Gross Profit Overview
Gross Profit
(U.S. $ in millions)
10
15
20
25
30
35
40
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Gross profit growth from $13M to $34M
excluding the benefit from contract
cancellation
Adjusted Gross Profit
(U.S. $ in millions) |
6
Adjusted EBITDA Overview
-15
-5
5
15
25
35
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Adjusted EBITDA
(U.S. $ in millions)
Adjusted EBITDA Excluding Certain Items
(U.S. $ in millions)
-15
-5
5
15
25
35
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012 |
7
Summary Financial Results
Three months ended
April 30,
Statement of Operations
2012
2011
(in millions of U.S. dollars)
$
$
Revenues
181.5
170.0
Gross profit
34.0
30.4
Selling, general and administrative expenses
34.7
24.8
Operating (loss) income
(64.6)
4.7
Loss before discontinued operations
(79.6)
(10.3)
Adjusted EBITDA
9.7
12.9
Balance Sheet
Q2 --
2012
Q4 --
2011
Cash
19.6
33.4
Total debt (LT and ST)
314.8
287.3
Undrawn lines of credit
60.1
94.9 |
8
Strengthen
core operations
Sell business
differently
Enter logical
adjacencies
Drive industry
consolidation
Strategy |
9
Mindsets
& Behaviors
Infrastructure
Leveraging global network
Swindon announcement
Clinical packaging
Puerto Rico consolidation on track
Improving resource coordination
Lab design and work flow
Expanding operational capacity
Italy pre-filled syringe line
G&A and procurement
Coordinated vendor management
and leverage purchase spend
Global pricing
Working capital
Consulting spend minimal in Q3
Operating efficiencies have improved capacity
Strengthen
core operations
Footprint
9 |
Value-drive solutions for our customers:
Expanded CMC and Scientific Consulting offerings
to position the brand differently:
Patheon Certified Consultants
Sell business
differently
10 |
11
Leverages expertise of both
companies
Patheon
sales
and
marketing
reach
and
largest development pipeline
ProCaps
softgel
related
technology,
formulation and manufacturing expertise, and
infrastructure
Launched P-Gels in May
Enter logical
adjacencies |
Summary
Underlying business is strong with growing
revenues and improving margins
Transformation activities are on track
Balance sheet and liquidity are good
Raising top-line guidance
12 |
13
Thank You |
Appendix
Adjusted Revenue
(unaudited)
Q211
Q311
Q411
Q112
Q212
(in millions of U.S. dollars)
$
$
$
$
$
Revenues
170.0
172.7
181.6
153.9
181.5
Contract cancellation
(17.4)
-
-
-
-
Adjusted Revenue
152.6
172.7
181.6
153.9
181.5
Adjusted Gross Profit
(unaudited)
Q211
Q311
Q411
Q112
Q212
(in millions of U.S. dollars)
$
$
$
$
$
Gross Profit
30.4
25.8
33.5
14.4
34.0
Contract cancellation
(17.4)
-
-
-
-
Adjusted Gross Profit
13.0
25.8
33.5
14.4
34.0
14 |
15
Adjusted EBITDA and Adjusted EBITDA Excluding Certain Items
(unaudited)
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
(in millions of U.S. dollars)
$
$
$
$
$
Loss before discontinued operations
(10.3)
0.6
(9.8)
(19.3)
(79.6)
Depreciation and amortization
13.5
12.6
12.2
10.6
10.8
Repositioning expenses
0.7
1.9
3.5
0.8
6.0
Interest expense, net
6.4
6.3
6.6
6.5
6.5
Impairment charge
-
-
-
-
57.9
Gain (loss) on sale of fixed assets
0.2
(0.1)
0.1
-
-
Benefit from (provision for) income taxes
2.1
(4.7)
1.0
(7.7)
8.0
Other income (expense), net
0.3
(6.3)
0.9
(0.1)
0.1
Adjusted EBITDA
12.9
10.3
14.5
(9.2)
9.7
Contract cancellation
(17.4)
-
-
-
-
Consulting
-
2.5
6.5
6.3
6.0
Adjusted EBITDA Excluding Certain Items
(4.5)
12.8
21.0
(2.9)
15.7
Appendix |