Attached files
| file | filename |
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| EX-99.1 - PRESS RELEASE - PATHEON INC | d408917dex991.htm |
| 8-K - FORM 8-K - PATHEON INC | d408917d8k.htm |
 Patheon
Fiscal 2012 Third Quarter
Results
September 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; and (2) “Adjusted EBITDA
Excluding Certain Items,”
which is “Adjusted EBITDA”
excluding the consulting fees associated with the strategic initiatives.
Since Adjusted EBITDA and Adjusted EBITDA before certain items 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 income (loss) before discontinued operations 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. |
 •
Highlights
•
Financial results
•
Transformation update
•
Conclusion
Agenda
2 |
 Third Quarter
Highlights 18 percent revenue growth
115 percent gross profit –
236 percent Adjusted EBITDA increases
Increasing revenue guidance –
exceeding $735 million
Transformation continues to yield benefits
3 |
 Continued
Quarterly Growth Revenue
(U.S. $ in millions)
4
172.7
181.6
153.9
181.5
203.7
100
120
140
160
180
200
220
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
18% yr-yr revenue growth |
 Strong
Conversion To Gross Profit Gross Profit
(U.S. $ in millions)
115% yr-yr gross profit growth
5
25.8
33.5
14.4
34.0
55.5
10
15
20
25
30
35
40
45
50
55
60
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012 |
 Solid Progress
With Adjusted EBITDA Adjusted EBITDA
(U.S. $ in millions)
Adjusted EBITDA Excluding Certain Items
(U.S. $ in millions)
6
-15
-5
5
15
25
35
45
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
-15
-5
5
15
25
35
45
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
10.3
14.5
(9.2)
9.7
34.6
12.8
21.0
(2.9)
15.7
35.6 |
 Sufficient
Liquidity to Manage Business $ in Millions
7
39.5
33.4
32.5
19.6
35.4
98.2
94.9
93.8
60.1
63.0
137.7
128.3
126.3
79.7
98.4
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
3Q11
4Q11
1Q12
2Q12
3Q12
Cash
Availability
Liquidity |
 8
Summary Financial Results
Three months ended July 31,
Statement of Operations
2012
2011
(in millions of U.S. dollars)
$
$
Revenues
203.7
172.7
Gross Profit
55.5
25.8
Selling, general and administrative expenses
29.9
31.7
Operating income (loss)
25.5
(7.7)
Income before discontinued operations
15.5
0.6
Adjusted EBITDA
34.6
10.3
Balance Sheets
Q3 2012
Q4 2011
Cash
35.4
33.4
Total Debt (LT & ST)
317.0
287.3
Undrawn lines of credit
63.0
94.9 |
 9
Strategic Roll Out is Advancing
•
OE programs have de-bottlenecked
revenue capacity
•
Drove gross profit and adjusted
EBITDA increased in Q3
•
Clinical packaging business sale
•
Rolled-out Solupath and Sterile
Back-up Supply programs
•
Patheon Certified Consultants
STRENGTHEN CORE
OPERATIONS
•
Early development lab
•
P-Gels brand softgel offering
launched in Q2
ENTER LOGICAL
ADJACENCIES
•
The CMO market will consolidate
–
but progress has been slow
DRIVE INDUSTRY
CONSOLIDATION
SELL BUSINESS
DIFFERENTLY |
 10
Summary
•
Growing revenues and improving margins
•
Transformation activities continue to benefit our
financial results and are on track
•
Balance sheet and liquidity are good
•
Raising top-line guidance |
 11
Thank You |
 12
Appendix
Adjusted EBITDA and Adjusted EBITDA Excluding Certain Items
(unaudited)
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
(in millions of U.S. dollars)
$
$
$
$
$
Income (loss) before discontinued operations
0.6
(9.8)
(19.3)
(79.6)
15.5
Depreciation and amortization
12.6
12.2
10.6
10.8
9.3
Repositioning expenses
1.9
3.5
0.8
6.0
0.1
Interest expense, net
6.3
6.6
6.5
6.5
6.8
Impairment charge
-
-
-
57.9
-
(Gain) loss on sale of capital assets
(0.1)
0.1
-
-
-
(Benefit from) provision for income taxes
(4.7)
1.0
(7.7)
8.0
3.3
Other
(6.3)
0.9
(0.1)
0.1
(0.4)
Adjusted EBITDA
10.3
14.5
(9.2)
9.7
34.6
Consulting
2.5
6.5
6.3
6.0
1.0
Adjusted EBITDA excluding certain items
12.8
21.0
(2.9)
15.7
35.6 |