BRIDGEWATER, N.J., March 1, 2018 /PRNewswire/ -- Impax
Laboratories, Inc. (NASDAQ: IPXL), today announced
fourth quarter and full year 2017 financial results.
Fourth Quarter 2017
- Total revenues in the fourth quarter 2017 were $182.9 million, a decrease of 7.8%, compared to
$198.4 million in the prior year
period due to a decrease in sales of generic products, partially
offset by an increase in sales of specialty products.
- GAAP net loss was $301.1 million
or a loss of $4.18 per share for the
fourth quarter 2017, compared to a loss of $279.6 million or a loss of $3.91 per share in the prior year period. The
fourth quarter of 2017 includes $230.7
million of non-cash intangible asset impairment charges on a
few currently marketed and in-development generic products
primarily due to competition, and a $74.1
million impairment charge associated with the sale of the
Taiwan manufacturing facility. The
fourth quarter of 2016 includes non-cash intangible asset
impairment charges of $253.9 million
due to competition and product discontinuations primarily related
to certain products acquired in the Company's acquisition of Tower
Holdings, Inc. and subsidiaries in March
2015 (the "Tower Acquisition").
- Adjusted net income was $7.6
million or $0.11 per share in
the fourth quarter 2017, compared to $11.6
million or $0.16 per share in
the prior year period, primarily due to lower generic product
revenue. Refer to the attached "Non-GAAP Financial Measures" for a
reconciliation of all GAAP to non-GAAP items.
- EBITDA (earnings before interest, taxes, depreciation and
amortization) was a loss of $274.8
million in the fourth quarter 2017, compared to a loss of
$234.0 million in the prior year
period, primarily as a result of the charges noted above. Adjusted
EBITDA was $33.1 million, compared to
$37.3 million in the prior year
period.
Full Year 2017
- Total revenues for the full year 2017 were $775.8 million, a decrease of 5.9%, compared to
$824.4 million in the prior year due
to a decrease in sales of generic products, partially offset by an
increase in sales of specialty products.
- GAAP net loss was $469.3 million
or a loss of $6.53 per share for the
full year 2017, compared to a loss of $472.0
million or a loss of $6.63 per
share in the prior year, primarily a result of the items noted
above. The full year 2017 GAAP results include $289.7 million of non-cash intangible asset
impairment charges on a few currently marketed and in- development
generic products primarily due to competition, and a $74.1 million impairment charge associated with
the sale of the Taiwan
manufacturing facility. The GAAP results for 2016 include non-cash
intangible asset impairment charges of $541.6 million related to certain products
acquired from Teva Pharmaceuticals Industries Ltd. and affiliates
of Allergan plc in August 2016 (the
"Teva Transaction") and from the Tower Acquisition.
- Adjusted net income was $45.2
million or $0.63 per share for
the full year 2017, compared to $83.7
million or $1.16 per share in
the prior year, primarily due to lower generic product revenue
caused by buyer consolidation and additional competition. Refer to
the attached "Non-GAAP Financial Measures" for a reconciliation of
all GAAP to non-GAAP items.
- EBITDA for the full year 2017 was a loss of $303.8 million, compared to a loss of
$453.0 million in the prior year,
primarily as a result of the charges noted above. Adjusted EBITDA
was $149.8 million, compared to
$200.4 million in the prior
year.
"2017 was a year of transition for Impax," said Paul Bisaro, President and Chief Executive
Officer of Impax. "Throughout the year we successfully executed on
our Path Forward growth strategy. We continued to build momentum in
our Specialty Pharma franchise which delivered strong sales growth
of Rytary® with an increase of 24% over 2016. Our
Generics franchise, facing a challenging generic market
environment, worked hard to mitigate the impact of those challenges
on our business. "
"We also completed our operational and cost improvement program
nearly one year ahead of schedule," continued Bisaro. "Key
highlights included the sale of our Taiwan manufacturing subsidiary for
$18.5 million, completing the closure
of our Middlesex, New Jersey
R&D and packaging facility, and completing our product
optimization strategies across our generic portfolio. These actions
are expected to generate run-rate savings of approximately
$85 million."
"We made significant progress in preparing for our combination
with Amneal Pharmaceuticals. Integration planning teams are
finalizing key Day 1 plans to ensure business continuity following
the close of the transaction. We remain excited about the value of
this combination, which will create a more diversified company with
one of the industry's leading high-value generic product pipelines.
We are currently on track to close the transaction in the second
quarter of 2018 and expect to provide combined company full year
2018 guidance after the close of the transaction."
Business Segment Information
The Company has two reportable segments, the Impax Generics
division and the Impax Specialty Pharma division and does not
allocate general corporate services to either segment. All
information presented is on a GAAP basis unless otherwise
noted.
Impax Generics
Division Information
(Unaudited; In
thousands)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
|
|
|
Impax Generics Product
sales, net
|
$ 112,943
|
|
$ 139,226
|
|
$ 549,077
|
|
$ 606,320
|
Cost of
revenues
|
106,801
|
|
109,380
|
|
454,911
|
|
417,316
|
Cost of revenues
impairment charges
|
43,961
|
|
206,312
|
|
96,865
|
|
464,319
|
Gross loss
|
(37,819)
|
|
(176,466)
|
|
(2,699)
|
|
(275,315)
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
8,223
|
|
8,066
|
|
28,294
|
|
20,508
|
Research and
development
|
12,612
|
|
15,868
|
|
63,245
|
|
61,980
|
In-process research
and development impairment charges
|
186,731
|
|
11,275
|
|
192,809
|
|
27,765
|
Fixed asset impairment
charges
|
5,577
|
|
-
|
|
8,380
|
|
-
|
Change in fair value
of contingent consideration
|
(38,123)
|
|
-
|
|
(31,048)
|
|
-
|
Patent litigation
expense
|
112
|
|
413
|
|
827
|
|
829
|
Total operating
expenses
|
175,132
|
|
35,622
|
|
262,507
|
|
111,082
|
Loss from
operations
|
$
(212,951)
|
|
$
(212,088)
|
|
$
(265,206)
|
|
$
(386,397)
|
|
|
|
|
|
|
|
|
Gross
margin
|
(33.5%)
|
|
(126.7%)
|
|
(0.5%)
|
|
(45.4%)
|
Adjusted gross profit
(a)
|
$
35,401
|
|
$
45,730
|
|
$ 209,073
|
|
$ 238,364
|
Adjusted gross margin
(a)
|
31.3%
|
|
32.8%
|
|
38.1%
|
|
39.3%
|
(a) Adjusted gross profit is calculated as total
revenues less adjusted cost of revenues. Adjusted gross margin is
calculated as adjusted gross profit divided by total revenues.
Refer to the "Non-GAAP Financial Measures" for a reconciliation of
GAAP to non-GAAP items.
Fourth Quarter 2017
Total revenues for the Generics division in the fourth quarter
2017 were $112.9 million, a decrease
of 18.9%, compared to the prior year period. The decrease compared
to the prior year period was primarily due to revenue reductions
from increased competition on a few key products including
diclofenac sodium gel, budesonide, fenofibrate and metaxalone,
partially offset by higher revenue from epinephrine auto-injector
and new product launches.
Gross margin in the fourth quarter 2017 was a loss of 33.5%,
compared to a loss of 126.7% in the prior year period, primarily
due to significantly lower impairment charges during the fourth
quarter 2017. Adjusted gross margin in the fourth quarter 2017
declined to 31.3%, compared to 32.8% in the prior year period,
primarily due to product sales mix.
Total operating expenses in the fourth quarter 2017 were
$175.1 million, compared to
$35.6 million in the prior year
period, primarily due to significantly higher in-process research
and development impairment charges as a result of either delays in
the anticipated launch or additional competition on a few products
acquired in the Teva Transaction. The Company also incurred
fixed asset impairment charges related to the planned closure of
the Middlesex, New Jersey
manufacturing facility, which the Company subsequently sold in
early 2018. The increase was partially offset by a change in
the fair value of contingent consideration for generic Concerta®
based on the Company's review of the anticipated timing and
probability of the products launch and an assessment of the number
of competitors expected in the market.
Full Year 2017
Total revenues for the Generics division for the full year 2017
were $549.1 million, a decrease of
9.4%, over the prior year. The decrease compared to the prior year
was primarily due to increased competition on diclofenac sodium
gel, metaxalone, generic Adderall XR® and fenofibrate. These
decreases were partially offset by increased revenues from
epinephrine auto-injector, budesonide and other products acquired
as part of the Teva Transaction compared to the prior year.
Gross margin for the full year 2017 was a loss of 0.5%, compared
to a loss of 45.4% in the prior year, primarily due to lower
impairment charges during 2017. Adjusted gross margin for the full
year 2017 declined to 38.1%, compared to 39.3% in the prior year,
primarily due to product sales mix.
Total operating expenses for the full year 2017 were
$262.5 million, compared to
$111.1 million in the prior year. The
increase was primarily due to in-process research and development
impairment charges and fixed assets impairment charges, partially
offset by a change in the fair value of contingent consideration,
as noted above, compared to the prior year.
Impax Specialty
Pharma Division Information
(Unaudited; In
thousands)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
|
|
|
Rytary® sales,
net
|
$
28,290
|
|
$
21,803
|
|
$
91,637
|
|
$
73,833
|
Zomig® sales,
net
|
15,034
|
|
13,576
|
|
51,115
|
|
53,539
|
All Other Specialty
Pharma Product sales, net
|
26,643
|
|
23,817
|
|
83,958
|
|
90,737
|
Total
revenues
|
69,967
|
|
59,196
|
|
226,710
|
|
218,109
|
Cost of
revenues
|
19,679
|
|
19,667
|
|
80,212
|
|
69,583
|
Cost of revenues
impairment charges
|
-
|
|
24,313
|
|
-
|
|
24,313
|
Gross
profit
|
50,288
|
|
15,216
|
|
146,498
|
|
124,213
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
18,670
|
|
15,139
|
|
67,949
|
|
61,448
|
Research and
development
|
3,077
|
|
4,662
|
|
17,602
|
|
18,486
|
In-process research
and development impairment charges
|
-
|
|
11,973
|
|
-
|
|
25,200
|
Fixed asset impairment
charges
|
74,128
|
|
-
|
|
74,128
|
|
-
|
Patent litigation
expense
|
1,111
|
|
879
|
|
4,278
|
|
6,990
|
Total operating
expenses
|
96,986
|
|
32,653
|
|
163,957
|
|
112,124
|
(Loss) income from
operations
|
$(46,698)
|
|
$(17,437)
|
|
$(17,459)
|
|
$
12,089
|
|
|
|
|
|
|
|
|
Gross
margin
|
71.9%
|
|
25.7%
|
|
64.6%
|
|
56.9%
|
Adjusted gross profit
(a)
|
$
55,940
|
|
$
46,945
|
|
$ 170,916
|
|
$ 174,417
|
Adjusted gross margin
(a)
|
80.0%
|
|
79.3%
|
|
75.4%
|
|
80.0%
|
(a) Adjusted gross profit is calculated as total
revenues less adjusted cost of revenues. Adjusted gross margin is
calculated as adjusted gross profit divided by total revenues.
Refer to the "Non-GAAP Financial Measures" for a reconciliation of
GAAP to non-GAAP items.
Fourth Quarter 2017
Total revenues for the Specialty Pharma division in the fourth
quarter 2017 were $70.0 million, an
increase of 18.2%, compared to the prior year period, driven by
higher revenue from Rytary®, Zomig® and the
anthelmintic products franchise.
Gross margin in the fourth quarter 2017 was 71.9%, compared to
25.7% in the prior year period, primarily due to impairment charges
in the fourth quarter 2016 for which there were no comparable
amounts in the fourth quarter of 2017. Adjusted gross margin in the
fourth quarter 2017 was 80.0%, compared to 79.3% in the prior year
period, primarily due to product sales mix.
Total operating expenses in the fourth quarter 2017 were
$97.0 million, compared to
$32.7 million in the prior year
period. The increase was primarily due to fixed asset impairment
charges associated with the Company's entry into an agreement with
a third party to sell its Taiwan
subsidiary and Taiwan operations,
partially offset by lower in-process research and development
impairment charges, compared to the prior year period.
Additionally, selling, general and administrative expenses in the
fourth quarter 2017 increased compared to the prior year period due
to restructuring and severance-related charges as a result of a
reorganization within the division.
Full Year 2017
Total revenues for the Specialty Pharma division for the full
year 2017 were $226.7 million, an
increase of 3.9% over the prior year. The increase from the prior
year was primarily due to higher revenue from Rytary, partially
offset by lower sales of our anthelmintic products franchise and
Zomig.
Gross margin for the full year 2017 was 64.6%, compared to 56.9%
in the prior year primarily due to impairment charges in 2016 for
which there were no comparable amounts in 2017. Adjusted gross
margin for the full year 2017 was 75.4%, compared to 80.0% in the
prior year, primarily due to product sales mix.
Total operating expenses for the full year 2017 were
$164.0 million, compared to
$112.1 million in the prior year. The
increase was primarily due to fixed asset impairment charges,
partially offset by lower in-process research and development
impairment charges, as noted above, compared to the prior year.
Corporate and
Other Information
(Unaudited; In
thousands)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
General and
administrative expenses
|
$
37,123
|
|
$
34,381
|
|
$
120,027
|
|
$
119,874
|
Unallocated corporate
expenses
|
$ (37,123)
|
|
$ (34,381)
|
|
$
(120,027)
|
|
$
(119,874)
|
Fourth Quarter 2017
General and administrative expenses in the fourth quarter 2017
were $37.1 million, compared to
$34.4 million in the prior year
period, primarily due to higher business development expenses
partially offset by lower restructuring and severance related
charges.
Full Year 2017
General and administrative expenses for the full year 2017 were
$120.0 million, compared to
$119.9 million for the full year
2016.
Interest expense, net for the full year 2017 was $53.4 million, an increase of $13.0 million compared to the prior year, due to
the $400.0 million Term Loan Facility
entered into by the Company in the third quarter 2016 to finance
the Teva Transaction.
Conference Call Information
The Company will host a conference call with a slide
presentation on March 1, 2018 at
8:30 a.m. ET to discuss its results.
The call and presentation can also be accessed via a live Webcast
through the Investor Relations section of the Company's Web site,
www.impaxlabs.com. The number to call from within the United States is (877) 356-3814 and (706)
758-0033 internationally. The conference ID is 7677287. A replay of
the conference call will be available shortly after the call for a
period of seven days. To access the replay, dial (855) 859-2056 (in
the U.S.) and (404) 537-3406 (international callers).
About Impax Laboratories, Inc.
Impax Laboratories, Inc. (Impax) is a specialty pharmaceutical
company applying its formulation expertise and drug delivery
technology to the development of controlled-release and specialty
generics in addition to the development of central nervous system
disorder branded products. Impax markets its generic products
through its Impax Generics division and markets its branded
products through the Impax Specialty Pharma division. Additionally,
where strategically appropriate, Impax develops marketing
partnerships to fully leverage its technology platform and pursues
partnership opportunities that offer alternative dosage form
technologies, such as injectables, nasal sprays, inhalers, patches,
creams, and ointments. For more information, please visit the
Company's Web site at: www.impaxlabs.com.
"Safe Harbor" statement under the Private Securities
Litigation Reform Act of 1995:
To the extent any statements
made in this news release contain information that is not
historical; these statements are forward-looking in nature and
express the beliefs and expectations of management. Such statements
are based on current expectations and involve a number of known and
unknown risks and uncertainties that could cause the Company's
future results, performance, or achievements to differ
significantly from the results, performance, or achievements
expressed or implied by such forward-looking statements. Such risks
and uncertainties include, but are not limited to, fluctuations in
the Company's operating results and financial condition, the
volatility of the market price of the Company's common stock, the
Company's ability to successfully develop and commercialize
pharmaceutical products in a timely manner, the impact of
competition, the effect of any manufacturing or quality control
problems, the Company's ability to manage its growth, risks related
to acquisitions of or investments in technologies, products or
businesses, risks relating to goodwill and intangibles, the
reduction or loss of business with any significant customer, the
substantial portion of the Company's total revenues derived from
sales of a limited number of products, the impact of continuing
consolidation of the Company's customer base, the Company's ability
to sustain profitability and positive cash flows, the impact of any
valuation allowance on the Company's deferred tax assets, the
restrictions imposed by the Company's credit facility and
indenture, the Company's level of indebtedness and liabilities and
the potential impact on cash flow available for operations, the
availability of additional funds in the future, any delays or
unanticipated expenses in connection with the operation of the
Company's manufacturing facilities or at its third party suppliers,
the effect of foreign economic, political, legal and other risks on
the Company's operations abroad, the uncertainty of patent
litigation and other legal proceedings, the increased government
scrutiny on the Company's agreements to settle patent litigations,
product development risks and the difficulty of predicting FDA
filings and approvals, consumer acceptance and demand for new
pharmaceutical products, the impact of market perceptions of the
Company and the safety and quality of its products, the Company's
determinations to discontinue the manufacture and distribution of
certain products, the Company's ability to achieve returns on its
investments in research and development activities, changes to FDA
approval requirements, the Company's ability to successfully
conduct clinical trials, the Company's reliance on third parties to
conduct clinical trials and testing, the Company's lack of a
license partner for commercialization of Numient® (IPX066) outside
of the United States and
Taiwan, the impact of illegal
distribution and sale by third parties of counterfeits or stolen
products, the availability of raw materials and impact of
interruptions in the Company's supply chain, the Company's policies
regarding returns, rebates, allowances and chargebacks, the use of
controlled substances in the Company's products, the effect of
global economic conditions on the Company's industry, business,
results of operations and financial condition, disruptions or
failures in the Company's information technology systems and
network infrastructure caused by cyber-attacks or other third party
breaches or other events, the Company's reliance on alliance and
collaboration agreements, the Company's reliance on licenses to
proprietary technologies, the Company's dependence on certain
employees, the Company's ability to comply with legal and
regulatory requirements governing the healthcare industry, the
regulatory environment, the effect of certain provisions in the
Company's government contracts, the Company's ability to protect
its intellectual property, exposure to product liability claims,
changes in tax regulations, uncertainties involved in the
preparation of the Company's financial statements, the Company's
ability to maintain an effective system of internal control over
financial reporting, the effect of terrorist attacks on the
Company's business, the location of the Company's manufacturing and
research and development facilities near earthquake fault lines,
expansion of social media platforms, risks related to the Company's
proposed business combination with Amneal Pharmaceuticals, Inc.
("Amneal"), including whether the transactions (the "Combination")
contemplated by the Business Combination Agreement dated as of
October 17, 2017 by and among us,
Amneal, Atlas Holdings, Inc., and K2 Merger Sub Corporation as
amended by Amendment No. 1, dated November
21, 2017 and Amendment No. 2 dated December 16, 2017 (the "Business Combination
Agreement") will be completed on the terms or timeline
contemplated, if at all, the risk that governmental entities could
take actions under antitrust laws to enjoin the completion of the
Combination, business uncertainties and contractual restrictions
while the Combination is pending, challenges related to the
Company's integration with Amneal after the closing, the fact that
ownership interests will not be adjusted if there is a change in
value of the Company or Amneal, provisions in the Business
Combination Agreement that may discourage other companies from
acquiring the Company, transaction related costs related to the
Combination and integration, the lower ownership and voting
interests that the Company's stockholders will have in New Amneal
after the closing, the pending litigation related to the
Combination and other risks described in the Company's periodic
reports filed with the Securities and Exchange Commission.
Forward-looking statements speak only as to the date on which they
are made, and the Company undertakes no obligation to update
publicly or revise any forward-looking statement, regardless of
whether new information becomes available, future developments
occur or otherwise.
Company Contact:
Mark
Donohue
Investor Relations and Corporate
Communications
(215) 558-4526
www.impaxlabs.com
Impax
Laboratories, Inc.
Consolidated
Statements of Operations
(Unaudited; In
thousands, except share and per share data)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
|
|
|
Impax Generics,
net
|
$ 112,943
|
|
$
139,226
|
|
$549,077
|
|
$
606,320
|
Impax Specialty
Pharma, net
|
69,967
|
|
59,196
|
|
226,710
|
|
218,109
|
Total
revenues
|
182,910
|
|
198,422
|
|
775,787
|
|
824,429
|
Cost of
revenues
|
126,480
|
|
129,047
|
|
535,123
|
|
486,899
|
Cost of revenues
impairment charges
|
43,961
|
|
230,625
|
|
96,865
|
|
488,632
|
Gross profit
(loss)
|
12,469
|
|
(161,250)
|
|
143,799
|
|
(151,102)
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
64,016
|
|
57,586
|
|
216,270
|
|
201,830
|
Research and
development
|
15,689
|
|
20,530
|
|
80,847
|
|
80,466
|
In-process research
and development impairment charges
|
186,731
|
|
23,248
|
|
192,809
|
|
52,965
|
Fixed asset impairment
charges
|
79,705
|
|
-
|
|
82,508
|
|
-
|
Change in fair value
of contingent consideration
|
(38,123)
|
|
-
|
|
(31,048)
|
|
-
|
Patent litigation
expense
|
1,223
|
|
1,292
|
|
5,105
|
|
7,819
|
Total operating
expenses
|
309,241
|
|
102,656
|
|
546,491
|
|
343,080
|
Loss from
operations
|
(296,772)
|
|
(263,906)
|
|
(402,692)
|
|
(494,182)
|
|
|
|
|
|
|
|
|
Other expense,
net:
|
|
|
|
|
|
|
|
Interest
expense, net
|
(13,672)
|
|
(13,440)
|
|
(53,412)
|
|
(40,419)
|
Reserve
for Turing receivable
|
(1,328)
|
|
7,731
|
|
(3,999)
|
|
(40,312)
|
Gain on
sale of assets
|
656
|
|
-
|
|
17,236
|
|
175
|
Loss on
debt extinguishment
|
-
|
|
-
|
|
(1,215)
|
|
-
|
Other,
net
|
1,036
|
|
(1,398)
|
|
(6,879)
|
|
(1,587)
|
Loss before income
taxes
|
(310,080)
|
|
(271,013)
|
|
(450,961)
|
|
(576,325)
|
(Benefit from)
provision for income taxes
|
(9,010)
|
|
8,572
|
|
18,326
|
|
(104,294)
|
Net loss
|
$(301,070)
|
|
$(279,585)
|
|
$(469,287)
|
|
$(472,031)
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
(4.18)
|
|
$
(3.91)
|
|
$
(6.53)
|
|
$
(6.63)
|
Diluted
|
$
(4.18)
|
|
$
(3.91)
|
|
$
(6.53)
|
|
$
(6.63)
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
72,098,533
|
|
71,487,071
|
|
71,856,950
|
|
71,147,397
|
Diluted
|
72,098,533
|
|
71,487,071
|
|
71,856,950
|
|
71,147,397
|
Impax
Laboratories, Inc.
Condensed
Consolidated Balance Sheets
(Unaudited; In
thousands)
|
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
$
181,778
|
|
$
180,133
|
Accounts
receivable, net
|
240,753
|
|
257,368
|
Inventory, net
|
158,471
|
|
175,230
|
Prepaid
expenses and other current assets
|
21,086
|
|
14,897
|
Income
tax receivable
|
61,201
|
|
3,513
|
Assets
held for sale
|
32,266
|
|
-
|
Total
current assets
|
695,555
|
|
631,141
|
Property, plant and
equipment, net
|
124,813
|
|
233,372
|
Intangible assets,
net
|
262,467
|
|
620,466
|
Goodwill
|
207,329
|
|
207,329
|
Deferred income
taxes, net
|
-
|
|
69,866
|
Other non-current
assets
|
61,136
|
|
60,844
|
Total
assets
|
$
1,351,300
|
|
$
1,823,018
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable and accrued expenses
|
$
329,220
|
|
$
303,605
|
Liabilities held for sale
|
7,170
|
|
-
|
Current
portion of long-term debt, net
|
17,848
|
|
17,719
|
Total
current liabilities
|
354,238
|
|
321,324
|
Long-term debt,
net
|
769,524
|
|
813,545
|
Deferred income
taxes
|
3,226
|
|
-
|
Other non-current
liabilities
|
37,111
|
|
64,175
|
Total
liabilities
|
1,164,099
|
|
1,199,044
|
Total stockholders'
equity
|
187,201
|
|
623,974
|
Total liabilities and
stockholders' equity
|
$
1,351,300
|
|
$
1,823,018
|
Impax
Laboratories, Inc.
Condensed
Consolidated Statements of Cash Flows
(Unaudited; In
thousands)
|
|
|
|
Year
Ended
|
|
|
December
31,
|
|
|
2017
|
|
2016
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
(469,287)
|
|
$
(472,031)
|
Adjustments to
reconcile loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
109,449
|
|
88,348
|
|
Non-cash interest
expense
|
25,950
|
|
22,845
|
|
Share-based
compensation expense
|
26,258
|
|
32,180
|
|
Deferred income
taxes, net and uncertain tax positions
|
74,873
|
|
(127,405)
|
|
Intangible asset
impairment charges
|
289,674
|
|
541,597
|
|
Reserve for Turing
receivable
|
3,999
|
|
40,312
|
|
Gain on sale of
assets
|
(17,236)
|
|
(175)
|
|
Loss on debt
extinguishment
|
1,215
|
|
-
|
|
Change in fair value
of contingent consideration
|
(31,048)
|
|
-
|
|
Fixed asset
impairment charges
|
82,508
|
|
-
|
|
Other
|
(1,018)
|
|
2,853
|
|
Changes in assets and
liabilities which used cash
|
(11,115)
|
|
(44,674)
|
|
Net cash provided by
operating activities
|
84,222
|
|
83,850
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Payment for business
acquisition
|
(121)
|
|
(585,800)
|
|
Purchases of
property, plant and equipment
|
(26,749)
|
|
(49,402)
|
|
Proceeds from sale of
property, plant and equipment
|
9,111
|
|
1,360
|
|
Payments for
licensing agreements
|
(50)
|
|
(3,500)
|
|
Investment in cash
surrender value of insurance
|
(4,750)
|
|
(4,750)
|
|
Proceeds from cash
surrender value of life insurance policy
|
529
|
|
-
|
|
Proceeds from
repayment of Tolmar loan
|
-
|
|
15,000
|
|
Proceeds from sale of
intangible assets
|
12,350
|
|
-
|
|
Net cash used in
investing activities
|
(9,680)
|
|
(627,092)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
issuance of term loan
|
-
|
|
400,000
|
|
Repayment of term
loan
|
(70,000)
|
|
(5,000)
|
|
Payment of deferred
financing fees
|
(818)
|
|
(11,867)
|
|
Payment of
withholding taxes related to restricted stock awards
|
(4,231)
|
|
(9,842)
|
|
Proceeds from
exercise of stock options and ESPP
|
1,379
|
|
9,239
|
|
Net cash (used in)
provided by financing activities
|
(73,670)
|
|
382,530
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
773
|
|
494
|
Net increase
(decrease) in cash and cash equivalents
|
1,645
|
|
(160,218)
|
Cash and cash
equivalents, beginning of period
|
180,133
|
|
340,351
|
Cash and cash
equivalents, end of period
|
$
181,778
|
|
$
180,133
|
Impax
Laboratories, Inc.
Non-GAAP Financial
Measures
|
|
Adjusted net income,
adjusted net income per diluted share, EBITDA, adjusted EBITDA,
adjusted cost of revenues, adjusted research and development
expenses and adjusted selling, general and administrative expenses
are not measures of financial performance under generally accepted
accounting principles (GAAP) and should not be construed as
substitutes for, or superior to, GAAP net loss, GAAP net loss per
diluted share, GAAP cost of revenues, GAAP research and development
expenses and GAAP selling, general and administrative expenses as a
measure of financial performance. However, management uses both
GAAP financial measures and the disclosed non-GAAP financial
measures internally to evaluate and manage the Company's operations
and to better understand its business. Further, management believes
the addition of non-GAAP financial measures provides meaningful
supplementary information to, and facilitates analysis by,
investors in evaluating the Company's financial performance,
results of operations and trends. The Company's calculations of
adjusted net income, adjusted net income per diluted share, EBITDA,
adjusted EBITDA, adjusted cost of revenues, adjusted research and
development expenses and adjusted selling, general and
administrative expenses, may not be comparable to similarly
designated measures reported by other companies, since companies
and investors may differ as to what type of events warrant
adjustment.
|
|
The following table
reconciles reported net loss to adjusted net income:
|
(Unaudited; In
thousands, except per share data)
|
|
|
Three months
ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net loss
|
$(301,070)
|
|
$(279,585)
|
|
$(469,287)
|
|
$(472,031)
|
Adjusted to add
(deduct):
|
|
|
|
|
|
|
|
Amortization
(a)
|
16,909
|
|
16,886
|
|
68,375
|
|
56,490
|
Non-cash interest
expense (b)
|
6,660
|
|
6,241
|
|
25,950
|
|
22,846
|
Business development
expenses (c)
|
8,061
|
|
251
|
|
11,097
|
|
4,540
|
Intangible asset
impairment charges (d)
|
230,692
|
|
253,873
|
|
289,674
|
|
541,597
|
Fixed asset impairment
charges (e)
|
79,705
|
|
-
|
|
82,508
|
|
-
|
Reserve for Turing
receivable (f)
|
1,328
|
|
(7,731)
|
|
3,999
|
|
40,312
|
Turing legal expenses
(g)
|
642
|
|
2,111
|
|
451
|
|
7,554
|
Restructuring and
severance charges (h)
|
13,483
|
|
11,705
|
|
49,563
|
|
24,040
|
Gain on sale of assets
(i)
|
(656)
|
|
-
|
|
(17,236)
|
|
-
|
Loss on extinguishment
of debt
|
-
|
|
-
|
|
1,215
|
|
-
|
Inventory related
charges (j)
|
6,224
|
|
-
|
|
26,702
|
|
-
|
Change in fair value
of contingent consideration (k)
|
(38,123)
|
|
-
|
|
(31,048)
|
|
-
|
Legal
settlements
|
-
|
|
-
|
|
7,900
|
|
-
|
Other
|
-
|
|
2,762
|
|
2,534
|
|
3,684
|
Income tax effect
(l)
|
(16,213)
|
|
5,136
|
|
(7,205)
|
|
(145,368)
|
Adjusted net
income
|
$
7,642
|
|
$
11,649
|
|
$
45,192
|
|
$
83,664
|
|
|
|
|
|
|
|
|
Adjusted net income
per diluted share
|
$
0.11
|
|
$
0.16
|
|
$
0.63
|
|
$
1.16
|
Net loss per diluted
share
|
$
(4.18)
|
|
$
(3.91)
|
|
$
(6.53)
|
|
$
(6.63)
|
|
|
|
|
|
|
|
|
Adjusted diluted
weighted-average common shares outstanding
|
72,634,828
|
|
71,488,634
|
|
71,857,096
|
|
71,829,749
|
Impax
Laboratories, Inc.
Non-GAAP Financial Measures
|
|
|
(a)
|
Reflects amortization
of intangible assets from the portfolio of products acquired from
Teva Pharmaceuticals Industries Ltd. and affiliates of Allergan plc
(the "Teva Transaction") in August 2016 and from the acquisition of
Tower Holdings, Inc. and its subsidiaries in March 2015 (the "Tower
Acquisition").
|
(b)
|
Related to non-cash
accretion of debt discount attributable to deferred financing costs
associated with the $400.0 million term loan facility (the "Term
Loan Facility") to finance the Teva Transaction and the $600.0
million of outstanding 2% convertible senior notes, as well as
bifurcation of the conversion option of the convertible
notes.
|
(c)
|
Business development
expenses are professional fees primarily related to the Teva
Transaction and the proposed combination with Amneal
Pharmaceuticals that the Company announced in the fourth quarter of
2017.
|
(d)
|
The Company
recognized $186.7 million of impairment charges on in process
research and development (IPR&D) product rights in the fourth
quarter 2017, primarily related to two products acquired in the
Teva Transaction, resulting from delays in launch and increased
competition. The Company additionally incurred $44.0 million of
fourth quarter impairment charges on two marketed products acquired
in the Teva Transaction and Tower Acquisition, due to increased
competition and related price erosion.
|
(e)
|
During the fourth
quarter 2017, the Company recorded fixed asset impairment charges
of $79.7 million primarily related to the Taiwan and Middlesex, New
Jersey facilities. Sales of both the Taiwan and Middlesex
facilities were completed during the first quarter 2018.
|
(f)
|
During the fourth
quarter 2017, the Company increased the estimated receivable due
from Turing Pharmaceuticals AG ("Turing") by $1.3 million to
reflect additional estimated Medicaid rebate claims due from
Turing.
|
(g)
|
The Company recorded a charge
in the fourth quarter 2017 for legal fees incurred as a result of
the Company's litigation against Turing alleging breach of the
terms of the Turing Asset Purchase Agreement in the Company's sale
of Daraprim® resulting from Turing's failure to
reimburse the Company for chargebacks and Medicaid rebate
liability.
|
(h)
|
During the fourth
quarter 2017, the Company recorded restructuring, severance and
other plant-related charges of $13.5 million related to the closure
of its manufacturing, packaging and R&D operations at the
Middlesex, New Jersey site as well as charges related to the
reorganization of its Specialty Pharma division.
|
(i)
|
During the fourth
quarter 2017, the Company recorded a gain on the sale of an ANDA
related to the Company's Middlesex, New Jersey facility.
|
(j)
|
During the fourth
quarter 2017, the Company recorded an approximate $6.2 million
charge related to an unfavorable supply agreement associated with
its exit of the Middlesex site.
|
(k)
|
Represents the
reduction in contingent consideration liability related to a
product acquired in the Teva Transaction. Based on timing and
probability of product launch, and number of competitors expected
in the market, the Company concluded that fair value of the
contingent consideration was zero at December 31, 2017.
|
(l)
|
Adjusted income taxes
are calculated by tax effecting adjusted pre-tax income at the
applicable effective tax rate that will be determined by reference
to statutory tax rates in the relevant jurisdiction in which the
Company operates and includes current and deferred income tax
expense commensurate with the non-GAAP measure of
profitability.
|
The following table
reconciles reported net loss to adjusted EBITDA:
(Unaudited, In
thousands)
|
|
|
Three months
ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net loss
|
$(301,070)
|
|
$(279,585)
|
|
$(469,287)
|
|
$(472,031)
|
Adjusted to add
(deduct):
|
|
|
|
|
|
|
|
Interest expense,
net
|
13,672
|
|
13,440
|
|
53,412
|
|
40,419
|
Income
taxes
|
(9,010)
|
|
8,572
|
|
18,326
|
|
(104,294)
|
Depreciation and
amortization
|
21,570
|
|
23,573
|
|
93,731
|
|
82,879
|
EBITDA
|
(274,838)
|
|
(234,000)
|
|
(303,818)
|
|
(453,027)
|
|
|
|
|
|
|
|
|
Adjusted to add
(deduct):
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
6,586
|
|
8,334
|
|
26,258
|
|
31,709
|
Business development
expenses
|
8,061
|
|
251
|
|
11,097
|
|
4,540
|
Intangible asset
impairment charges
|
230,692
|
|
253,873
|
|
289,674
|
|
541,597
|
Fixed asset impairment
charges
|
79,705
|
|
-
|
|
82,508
|
|
-
|
Reserve for Turing receivable
|
1,328
|
|
(7,731)
|
|
3,999
|
|
40,312
|
Turing legal
expenses
|
642
|
|
2,111
|
|
451
|
|
7,554
|
Restructuring and
severance charges
|
13,483
|
|
11,705
|
|
49,563
|
|
24,040
|
Gain on sale of
intangible assets
|
(656)
|
|
-
|
|
(17,236)
|
|
-
|
Loss on extinguishment
of debt
|
-
|
|
-
|
|
1,215
|
|
-
|
Inventory related
charges
|
6,224
|
|
-
|
|
26,702
|
|
-
|
Change in fair value
of contingent consideration
|
(38,123)
|
|
-
|
|
(31,048)
|
|
-
|
Legal
settlements
|
-
|
|
-
|
|
7,900
|
|
-
|
Other
|
-
|
|
2,762
|
|
2,534
|
|
3,684
|
Adjusted
EBITDA
|
$
33,104
|
|
$
37,305
|
|
$ 149,799
|
|
$ 200,409
|
Impax
Laboratories, Inc.
Non-GAAP Financial
Measures
(Unaudited; In
thousands)
|
|
The following
Adjusted Consolidated Statements of Operations reflects the impact
of the items reconciling reported net loss to adjusted net
income.
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
|
|
|
Impax Generics,
net
|
$ 112,943
|
|
$ 139,226
|
|
$ 549,077
|
|
$ 606,320
|
Impax Specialty
Pharma, net
|
69,967
|
|
59,196
|
|
226,710
|
|
218,109
|
Total revenues,
net
|
182,910
|
|
198,422
|
|
775,787
|
|
824,429
|
Cost of
revenues
|
91,569
|
|
105,747
|
|
395,798
|
|
411,648
|
Gross
profit
|
91,341
|
|
92,675
|
|
379,989
|
|
412,781
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
51,637
|
|
49,933
|
|
200,376
|
|
184,281
|
Research and
development
|
15,591
|
|
19,930
|
|
74,935
|
|
78,944
|
Patent
litigation
|
1,223
|
|
1,292
|
|
5,105
|
|
7,819
|
Total operating
expenses
|
68,451
|
|
71,155
|
|
280,416
|
|
271,044
|
Income from
operations
|
22,890
|
|
21,520
|
|
99,573
|
|
141,737
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense, net
|
(7,012)
|
|
(7,199)
|
|
(27,462)
|
|
(17,573)
|
Other,
net
|
(1,033)
|
|
764
|
|
(1,388)
|
|
574
|
Income before income
taxes
|
14,845
|
|
15,085
|
|
70,723
|
|
124,738
|
Provision for income
taxes
|
7,203
|
|
3,436
|
|
25,531
|
|
41,074
|
Adjusted net
income
|
$
7,642
|
|
$
11,649
|
|
$
45,192
|
|
$
83,664
|
|
|
|
|
|
|
|
|
Adjusted net income
per common share:
|
|
|
|
|
|
|
|
Diluted
|
$
0.11
|
|
$
0.16
|
|
$
0.63
|
|
$
1.16
|
|
|
|
|
|
|
|
|
Adjusted
weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
Diluted
|
72,634,828
|
|
71,488,634
|
|
71,857,096
|
|
71,829,749
|
Impax
Laboratories, Inc.
Non-GAAP Financial
Measures
(Unaudited; In
thousands)
|
|
The following table
reconciles reported cost of revenues, research and development
expenses, and selling, general and administrative expenses to
adjusted cost of revenues, adjusted gross profit, adjusted gross
margin, adjusted research and development expenses, and adjusted
selling, general and administrative expenses:
|
|
|
Three months
ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cost of
revenues
|
$ 126,480
|
|
$ 129,047
|
|
$
535,123
|
|
$ 486,899
|
Cost of revenues
impairment charges
|
43,961
|
|
230,625
|
|
96,865
|
|
488,632
|
Adjusted to
deduct:
|
|
|
|
|
|
|
|
Amortization
|
16,909
|
|
16,886
|
|
68,375
|
|
56,490
|
Intangible asset
impairment charges
|
43,961
|
|
230,625
|
|
96,865
|
|
488,632
|
Business
development
|
-
|
|
-
|
|
112
|
|
-
|
Restructuring and
severance charges
|
11,778
|
|
6,414
|
|
44,136
|
|
18,761
|
Inventory related
charges
|
6,224
|
|
-
|
|
26,702
|
|
-
|
Adjusted cost of
revenues
|
$
91,569
|
|
$ 105,747
|
|
$
395,798
|
|
$ 411,648
|
|
|
|
|
|
|
|
|
Adjusted gross profit
(a)
|
$
91,341
|
|
$
92,675
|
|
$
379,989
|
|
$ 412,781
|
Adjusted gross margin
(a)
|
49.9%
|
|
46.7%
|
|
49.0%
|
|
50.1%
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
$
15,689
|
|
$
20,530
|
|
$
80,847
|
|
$
80,466
|
In-process research
and development impairment charges
|
186,731
|
|
23,248
|
|
192,809
|
|
52,965
|
Adjusted to
deduct:
|
|
|
|
|
|
|
|
Intangible asset
impairment charges
|
186,731
|
|
23,248
|
|
192,809
|
|
52,965
|
Restructuring and
severance charges
|
98
|
|
-
|
|
3,378
|
|
-
|
Other
|
-
|
|
600
|
|
2,534
|
|
1,522
|
Adjusted research and
development expenses
|
$
15,591
|
|
$
19,930
|
|
$
74,935
|
|
$
78,944
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
$
64,016
|
|
$
57,586
|
|
$
216,270
|
|
$ 201,830
|
Adjusted to
deduct:
|
|
|
|
|
|
|
|
Business development
expenses
|
8,061
|
|
251
|
|
10,985
|
|
4,540
|
Turing legal
expenses
|
642
|
|
2,111
|
|
451
|
|
7,554
|
Restructuring and
severance charges
|
3,676
|
|
5,291
|
|
4,458
|
|
5,455
|
Adjusted selling,
general and administrative expenses
|
$
51,637
|
|
$
49,933
|
|
$ 200,376
|
|
$ 184,281
|
|
(a) Adjusted gross profit is
calculated as total revenues less adjusted cost of revenues.
Adjusted gross margin is
calculated as adjusted gross
profit divided by total revenues.
|
Impax
Laboratories, Inc.
Non-GAAP Financial
Measures
(Unaudited; In
thousands)
|
|
The following tables
reconcile the Impax Generics and Impax Specialty Pharma divisions
reported cost of revenues to adjusted cost of revenues, adjusted
gross profit and adjusted gross margin:
|
|
Impax Generics
Division Information
|
|
Three months
ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cost of
revenues
|
$ 106,801
|
|
$ 109,380
|
|
$ 454,911
|
|
$ 417,316
|
Cost of revenues
impairment charges
|
43,961
|
|
206,312
|
|
96,865
|
|
464,319
|
Adjusted to
deduct:
|
|
|
|
|
|
|
|
Amortization
|
13,075
|
|
9,470
|
|
53,039
|
|
30,599
|
Intangible asset
impairment charges
|
43,961
|
|
206,312
|
|
96,865
|
|
464,319
|
Restructuring and
severance charges
|
9,960
|
|
6,414
|
|
35,054
|
|
18,761
|
Inventory related
charges
|
6,224
|
|
-
|
|
26,702
|
|
-
|
Business
development
|
-
|
|
-
|
|
112
|
|
-
|
Adjusted cost of
revenues
|
$
77,542
|
|
$
93,496
|
|
$ 340,004
|
|
$ 367,956
|
|
|
|
|
|
|
|
|
Adjusted gross profit
(a)
|
$
35,401
|
|
$
45,730
|
|
$ 209,073
|
|
$ 238,364
|
Adjusted gross margin
(a)
|
31.3%
|
|
32.8%
|
|
38.1%
|
|
39.3%
|
|
Impax Specialty
Pharma Division Information
|
|
Three months
ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cost of
revenues
|
$
19,679
|
|
$
19,667
|
|
$
80,212
|
|
$
69,583
|
Cost of revenues
impairment charges
|
-
|
|
24,313
|
|
-
|
|
24,313
|
Adjusted to
deduct:
|
|
|
|
|
|
|
|
Amortization
|
3,834
|
|
7,416
|
|
15,336
|
|
25,891
|
Restructuring and
severance charges
|
1,818
|
|
-
|
|
9,082
|
|
-
|
Intangible asset
impairment charges
|
-
|
|
24,313
|
|
-
|
|
24,313
|
Adjusted cost of
revenues
|
$
14,027
|
|
$
12,251
|
|
$
55,794
|
|
$
43,692
|
|
|
|
|
|
|
|
|
Adjusted gross profit
(a)
|
$
55,940
|
|
$
46,945
|
|
$ 170,916
|
|
$174,417
|
Adjusted gross margin
(a)
|
80.0%
|
|
79.3%
|
|
75.4%
|
|
80.0%
|
|
Corporate
General and Administrative
|
|
Three months
ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
General and
administrative expenses
|
$
37,123
|
|
$
34,381
|
|
$
120,027
|
|
$ 119,874
|
Adjusted to
deduct:
|
|
|
|
|
|
|
|
Business development
expenses
|
8,061
|
|
251
|
|
10,985
|
|
4,540
|
Turing legal
expenses
|
642
|
|
2,111
|
|
451
|
|
7,554
|
Restructuring and
severance charges
|
669
|
|
5,291
|
|
1,341
|
|
5,363
|
Adjusted general and
administrative expenses
|
$
27,751
|
|
$
26,728
|
|
$
107,250
|
|
$ 102,417
|
|
(a) Adjusted gross profit is
calculated as total revenues less adjusted cost of revenues.
Adjusted gross margin is
calculated as adjusted gross profit
divided by total revenues.
|
Impax
Laboratories, Inc.
Non-GAAP Financial
Measures
(Unaudited; In
thousands)
|
|
The following tables
reconcile the Impax Generics and Impax Specialty Pharma divisions
reported (loss) income from operations to adjusted income from
operations:
|
|
Impax Generics
Division Information
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
$(212,951)
|
|
$(212,088)
|
|
$(265,206)
|
|
$(386,397)
|
Adjusted to add
(deduct):
|
|
|
|
|
|
|
|
Amortization
|
13,075
|
|
9,470
|
|
53,039
|
|
30,599
|
Intangible asset
impairment charges
|
230,692
|
|
217,587
|
|
289,674
|
|
492,084
|
Restructuring and
severance
|
10,058
|
|
6,414
|
|
38,433
|
|
18,852
|
Inventory related
charges
|
6,224
|
|
-
|
|
26,702
|
|
-
|
Fixed asset impairment
charges
|
6,486
|
|
-
|
|
8,380
|
|
-
|
Change in fair value
of contingent consideration
|
(38,123)
|
|
-
|
|
(31,048)
|
|
-
|
Business development
expenses
|
-
|
|
-
|
|
112
|
|
-
|
Other
|
-
|
|
600
|
|
2,535
|
|
1,522
|
Adjusted income from
operations
|
$
15,461
|
|
$
21,983
|
|
$ 122,621
|
|
$ 156,660
|
|
Impax Specialty
Pharma Division Information
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
GAAP (loss) income
from operations
|
$ (46,698)
|
|
$ (17,437)
|
|
$ (17,459)
|
|
$ 12,089
|
Adjusted to
add:
|
|
|
|
|
|
|
|
Amortization
|
3,834
|
|
7,416
|
|
15,336
|
|
25,891
|
Intangible asset
impairment charges
|
-
|
|
36,286
|
|
-
|
|
49,513
|
Restructuring and
severance
|
4,825
|
|
-
|
|
12,199
|
|
-
|
Fixed asset impairment
charges
|
74,128
|
|
-
|
|
74,128
|
|
-
|
Adjusted income from
operations
|
$
36,089
|
|
$
26,265
|
|
$
84,204
|
|
$ 87,493
|
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SOURCE Impax Laboratories, Inc.