Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - Oxford Immunotec Global PLC | ex_128964.htm |
| 8-K - FORM 8-K - Oxford Immunotec Global PLC | oxfd20181108b_8k.htm |
Exhibit 99.2
The following unaudited pro forma condensed combined financial statements of Oxford Immunotec Global PLC (the "Company") are presented to reflect the effect of the previously announced sale of the Company’s U.S. laboratory services business (the “Laboratory Services Business”) for gross proceeds of $170 million in cash (the “Transaction”) to Quest Diagnostics Incorporated, a Delaware corporation (“Quest”), pursuant to a Limited Liability Company Interest Purchase Agreement (the “Purchase Agreement”), as described in Item 1.01 of the Current Report on Form 8-K filed with the Securities and Exchange Commission on September 25, 2018. The unaudited pro forma financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes contained in the Company’s 2017 Annual Report on Form 10-K, as filed on February 27, 2018 and the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, as filed on November 9, 2018.
The pro forma adjustments are based on the best information available and assumptions that management believes are factually supportable and reasonable; however, such adjustments are subject to change. In addition, such adjustments are estimates. The unaudited pro forma consolidated information is for illustrative and informational purposes only and is not intended to reflect what our consolidated financial position and results of operations would have been had the disposition occurred on the dates indicated and is not necessarily indicative of our future consolidated financial position and results of operations.
The pro forma adjustments remove all of Oxford LLC’s assets, liabilities and results of operations, and give effect to an adjustment to reflect the net cash proceeds and gain from the sale of Oxford LLC.
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Oxford Immunotec Global PLC |
|
Unaudited pro forma condensed combined statement of operations |
|
Year ended December 31, 2015 |
|
(in thousands) |
Historical |
Disposition (a) |
Pro forma |
|||||||||
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Revenue |
||||||||||||
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Product |
$ | 30,207 | $ | 6,006 | $ | 36,213 | ||||||
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Service |
32,575 | (30,199 | ) | 2,376 | ||||||||
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Total revenue |
62,782 | (24,193 | ) | 38,589 | ||||||||
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Cost of revenue |
||||||||||||
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Product |
13,297 | — | 13,297 | |||||||||
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Service |
16,247 | (15,036 | ) | 1,211 | ||||||||
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Total cost of revenue |
29,544 | (15,036 | ) | 14,508 | ||||||||
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Gross profit |
33,238 | (9,157 | ) | 24,081 | ||||||||
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Operating expenses |
||||||||||||
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Research and development |
10,381 | (3,275 | ) | 7,106 | ||||||||
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Sales and marketing |
30,402 | (7,160 | ) | 23,242 | ||||||||
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General and administrative |
16,010 | (1,969 | ) | 14,041 | ||||||||
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Change in fair value of contingent purchase price consideration |
202 | — | 202 | |||||||||
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Intangible assets impairment charges |
419 | — | 419 | |||||||||
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Total operating expenses |
57,414 | (12,404 | ) | 45,010 | ||||||||
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Loss from operations |
(24,176 | ) | 3,247 | (20,929 | ) | |||||||
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Other expense: |
||||||||||||
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Interest expense, net |
(67 | ) | — | (67 | ) | |||||||
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Foreign exchange losses |
(143 | ) | — | (143 | ) | |||||||
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Other income |
54 | — | 54 | |||||||||
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Loss before income taxes |
(24,332 | ) | 3,247 | (21,085 | ) | |||||||
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Income tax (expense) benefit |
(146 | ) | — | (146 | ) | |||||||
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Net loss |
$ | (24,478 | ) | $ | 3,247 | $ | (21,231 | ) | ||||
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Net loss per ordinary share—basic and diluted |
$ | (1.12 | ) | $ | 0.15 | $ | (0.97 | ) | ||||
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Weighted-average shares used to compute net loss per ordinary share—basic and diluted |
21,781,933 | 21,781,933 | 21,781,933 | |||||||||
See accompanying note to the unaudited pro forma condensed combined financial statements.
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Oxford Immunotec Global PLC |
|
Unaudited pro forma condensed combined statement of operations |
|
Year ended December 31, 2016 |
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(in thousands) |
Historical |
Disposition (a) |
Pro forma |
|||||||||
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Revenue |
||||||||||||
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Product |
$ | 36,430 | $ | 6,640 | $ | 43,070 | ||||||
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Service |
49,648 | (45,730 | ) | 3,918 | ||||||||
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Total revenue |
86,078 | (39,090 | ) | 46,988 | ||||||||
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Cost of revenue |
||||||||||||
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Product |
13,956 | (149 | ) | 13,807 | ||||||||
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Service |
25,516 | (22,832 | ) | 2,684 | ||||||||
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Total cost of revenue |
39,472 | (22,981 | ) | 16,491 | ||||||||
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Gross profit |
46,606 | (16,109 | ) | 30,497 | ||||||||
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Operating expenses |
||||||||||||
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Research and development |
13,881 | (4,511 | ) | 9,370 | ||||||||
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Sales and marketing |
34,964 | (8,106 | ) | 26,858 | ||||||||
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General and administrative |
23,181 | (4,145 | ) | 19,036 | ||||||||
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Change in fair value of contingent purchase price consideration |
(1,208 | ) | — | (1,208 | ) | |||||||
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Intangible assets impairment charges |
1,765 | — | 1,765 | |||||||||
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Total operating expenses |
72,583 | (16,762 | ) | 55,821 | ||||||||
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Loss from operations |
(25,977 | ) | 653 | (25,324 | ) | |||||||
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Other expense: |
||||||||||||
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Interest expense, net |
(864 | ) | — | (864 | ) | |||||||
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Foreign exchange gains |
1,364 | — | 1,364 | |||||||||
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Other expense |
(646 | ) | — | (646 | ) | |||||||
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Loss before income taxes |
(26,123 | ) | 653 | (25,470 | ) | |||||||
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Income tax benefit |
3,774 | — | 3,774 | |||||||||
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Net loss |
$ | (22,349 | ) | $ | 653 | $ | (21,696 | ) | ||||
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Net loss per ordinary share—basic and diluted |
$ | (1.00 | ) | $ | 0.03 | $ | (0.97 | ) | ||||
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Weighted-average shares used to compute net loss per ordinary share—basic and diluted |
22,353,713 | 22,353,713 | 22,353,713 | |||||||||
See accompanying note to the unaudited pro forma condensed combined financial statements.
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Oxford Immunotec Global PLC |
|
Unaudited pro forma condensed combined statement of operations |
|
Year ended December 31, 2017 |
|
(in thousands) |
Historical |
Disposition (a) |
Pro forma |
|||||||||
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Revenue |
||||||||||||
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Product |
$ | 40,522 | $ | 8,377 | $ | 48,899 | ||||||
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Service |
62,558 | (56,724 | ) | 5,834 | ||||||||
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Total revenue |
103,080 | (48,347 | ) | 54,733 | ||||||||
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Cost of revenue |
||||||||||||
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Product |
13,794 | 70 | 13,864 | |||||||||
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Service |
32,937 | (28,331 | ) | 4,606 | ||||||||
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Total cost of revenue |
46,731 | (28,261 | ) | 18,470 | ||||||||
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Gross profit |
56,349 | (20,086 | ) | 36,263 | ||||||||
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Operating expenses |
||||||||||||
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Research and development |
16,701 | (5,866 | ) | 10,835 | ||||||||
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Sales and marketing |
38,016 | (8,963 | ) | 29,053 | ||||||||
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General and administrative |
30,366 | (4,916 | ) | 25,450 | ||||||||
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Change in fair value of contingent purchase price consideration |
(3,475 | ) | — | (3,475 | ) | |||||||
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Intangible assets impairment charges |
18,300 | — | 18,300 | |||||||||
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Settlement expense |
10,028 | — | 10,028 | |||||||||
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Total operating expenses |
109,936 | (19,745 | ) | 90,191 | ||||||||
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Loss from operations |
(53,587 | ) | (341 | ) | (53,928 | ) | ||||||
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Other expense: |
||||||||||||
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Interest expense, net |
(3,105 | ) | — | (3,105 | ) | |||||||
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Foreign exchange losses |
(1,850 | ) | — | (1,850 | ) | |||||||
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Other expense |
(209 | ) | — | (209 | ) | |||||||
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Litigation settlement income |
27,500 | — | 27,500 | |||||||||
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Loss before income taxes |
(31,251 | ) | (341 | ) | (31,592 | ) | ||||||
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Income tax (expense) benefit |
(1,634 | ) | — | (1,634 | ) | |||||||
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Net loss |
$ | (32,885 | ) | $ | (341 | ) | $ | (33,226 | ) | |||
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Net loss per ordinary share—basic and diluted |
$ | (1.38 | ) | $ | (0.02 | ) | $ | (1.40 | ) | |||
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Weighted-average shares used to compute net loss per ordinary share—basic and diluted |
23,757,902 | 23,757,902 | 23,757,902 | |||||||||
See accompanying note to the unaudited pro forma condensed combined financial statements.
|
(a) |
Amounts reflect the pro forma effect of eliminating the results of discontinued operations for the years ended December 31, 2015, 2016, and 2017 from the presentation of continuing operations in the unaudited pro forma condensed combined statements of operations. |