‒ Q1 2024 Net Revenue of $659 million; GAAP Net
Loss of $92 million; Diluted Loss per Share of $0.30 ‒ ‒ Adjusted
EBITDA of $152 million; Adjusted Diluted EPS of $0.14 ‒ ‒ Company
has reached settlement in principle on a nationwide opioids
settlement, payable over ten years ‒ ‒ Affirming 2024 Full Year
Guidance ‒
Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX) (“Amneal” or
the “Company”) announced its results today for the first quarter
ended March 31, 2024.
“We are extremely pleased with our outstanding start to the
year, as Amneal generated record levels of revenues in the first
quarter. For the first time, all three segments across our
diversified business produced double-digit top-line growth in the
same quarter. With perpetual and rising demand for medicines and
exacerbated by chronic supply shortages in the U.S. pharmaceutical
industry, Amneal is part of the solution. As we become larger, we
provide even more patients with access to high-quality, affordable,
and essential medicines as we create value for all our
stakeholders,” said Chirag and Chintu Patel, Co-Chief Executive
Officers.
First Quarter 2024 Results
Net revenue in the first quarter of 2024 was $659 million, an
increase of 18% compared to $558 million in the first quarter of
2023. Generics revenues increased 14% due to strong performance in
complex generics, our oncology biosimilars and new launches.
Specialty revenues increased 15% driven by promoted products in
Neurology and Endocrinology. AvKARE revenues increased 33% driven
by continued expansion across its channels due to new products.
Net loss attributable to Amneal Pharmaceuticals, Inc. was $92
million in the first quarter of 2024 compared to $7 million in the
first quarter of 2023, and included a pre-tax charge of $94 million
for settlement in principle on a nationwide opioids settlement.
Adjusted EBITDA in the first quarter of 2024 was $152 million,
an increase of 31% compared to the first quarter of 2023,
reflective of strong revenue performance and higher gross
margins.
Diluted loss per share in the first quarter of 2024 was $0.30
compared to $0.05 for the first quarter of 2023 due to the
aforementioned factors. Adjusted diluted earnings per share in the
first quarter of 2024 was $0.14 compared to $0.12 for the first
quarter of 2023.
The Company presents GAAP and adjusted (non-GAAP) quarterly
results. Please refer to the “Non-GAAP Financial Measures” section
for more information. In the tables below, GAAP to non-GAAP
reconciliations are presented.
Settlement in Principle on a Nationwide Opioids
Settlement
Amneal has reached a settlement in principle on the primary
financial terms, with no admission of wrongdoing, for a nationwide
resolution to the opioids cases that have been filed and that might
have been filed against the Company by states, counties,
municipalities, and Native American Tribal Nations across the
United States. The settlement in principle resolves substantially
all opioids litigation and is subject to the negotiation and
execution of a definitive settlement agreement between the parties.
The settlement would be payable over ten years. Under the
settlement, the Company would agree to pay $92.5 million in cash
and provide $180.0 million in naloxone nasal spray (valued at $125
per two-pack) to help treat opioid overdoses. In lieu of receiving
product, the settling parties can opt to receive 25% of the product
value (up to $45.0 million) in cash during the last four years of
the ten-year payment term.
In the first quarter of 2024, the Company recorded a charge of
$94 million in the consolidated statement of operations based on
full participation in the potential settlement, which reflects the
value of the cash payments and the supply of naloxone nasal spray
over the ten-year period. The settlement in principle is contingent
upon a sufficient number of settling parties electing to opt into
the final definitive agreement. We remain committed to helping
those impacted by the opioid crisis by enhancing access to naloxone
nasal spray, which is an emergency treatment for opioid overdose
and helps save lives.
Affirming Full Year 2024 Guidance
The Company is affirming its previously provided full year 2024
guidance.
Net revenue
$2.55 billion - $2.65 billion
Adjusted EBITDA (1)
$580 million - $620 million
Adjusted diluted EPS (2)
$0.53 - $0.63
Operating cash flow (3)
$260 million - $300 million
Capital expenditures
$60 million - $70 million
(1)
Includes 100% of Adjusted EBITDA from the
AvKARE acquisition.
(2)
Accounts for 35% non-controlling interest
in AvKARE. Assumes weighted-average diluted shares outstanding of
approximately 317 million for the year ending December 31,
2024.
(3)
Does not contemplate one-time and
non-recurring items such as legal settlements and other discrete
items.
Amneal’s 2024 estimates are based on management’s current
expectations, including with respect to prescription trends,
pricing levels, the timing of future product launches, the costs
incurred and benefits realized of restructuring activities, and our
long-term strategy. The Company’s financial statements are prepared
in accordance with accounting principles generally accepted in the
United States of America (“GAAP”). The Company cannot provide a
reconciliation between non-GAAP projections and the most directly
comparable measures in accordance with GAAP without unreasonable
efforts because it is unable to predict with reasonable certainty
the ultimate outcome of certain significant items required for the
reconciliation. The items include, but are not limited to,
acquisition-related expenses, restructuring expenses and benefits,
asset impairments, legal settlements, and other gains and losses.
These items are uncertain, depend on various factors, and could
have a material impact on GAAP reported results.
Conference Call Information
Amneal will host a conference call and live webcast at 8:30 am
Eastern Time today, May 3, 2024, to discuss its results. The live
webcast and presentation will be accessible through the Investor
Relations section of the Company’s website at
https://investors.amneal.com. To access the call through a
conference line, dial (833) 470-1428 (in the U.S.) with access code
172198. A replay of the conference call will be posted shortly
after the call and will be available for seven days. For a list of
toll-free international numbers, visit this website:
https://www.netroadshow.com/events/global-numbers?confId=52762.
About Amneal
Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX), headquartered in
Bridgewater, NJ, is a global pharmaceuticals company. We make
healthy possible through the development, manufacturing, and
distribution of a diverse portfolio of over 280 generic and
specialty pharmaceuticals, primarily within the United States. In
its Generics segment, the Company is expanding across a broad range
of complex product categories and therapeutic areas, including
injectables and biosimilars. In its Specialty segment, Amneal has a
growing portfolio of branded pharmaceuticals focused primarily on
central nervous system and endocrine disorders, with a pipeline
focused on unmet needs. Through its AvKARE segment, the Company is
a distributor of pharmaceuticals and other products for the U.S.
federal government, retail, and institutional markets. For more
information, please visit www.amneal.com.
Cautionary Statement on Forward-Looking Statements
Certain statements contained herein, regarding matters that are
not historical facts, may be forward-looking statements (as defined
in the U.S. Private Securities Litigation Reform Act of 1995). Such
forward-looking statements include statements regarding
management’s intentions, plans, beliefs, expectations, financial
results, or forecasts for the future, including among other things:
discussions of future operations; expected or estimated operating
results and financial performance; and statements regarding our
positioning, including our ability to drive sustainable long-term
growth, and other non-historical statements. Words such as “plans,”
“expects,” “will,” “anticipates,” “estimates,” and similar words,
or the negatives thereof, are intended to identify estimates and
forward-looking statements.
The reader is cautioned not to rely on these forward-looking
statements. These forward-looking statements are based on current
expectations of future events, including with respect to future
market conditions, company performance and financial results,
operational investments, business prospects, new strategies and
growth initiatives, the competitive environment, and other events.
If the underlying assumptions prove inaccurate or known or unknown
risks or uncertainties materialize, actual results could vary
materially from the expectations and projections of the
Company.
Such risks and uncertainties include, but are not limited to:
our ability to successfully develop, license, acquire and
commercialize new products on a timely basis; the competition we
face in the pharmaceutical industry from brand and generic drug
product companies, and the impact of that competition on our
ability to set prices; our ability to obtain exclusive marketing
rights for our products; our revenues are derived from the sales of
a limited number of products, a substantial portion of which are
through a limited number of customers; the impact of a prolonged
business interruption within our supply chain; the continuing trend
of consolidation of certain customer groups; our dependence on
third-party suppliers and distributors for raw materials for our
products and certain finished goods; legal, regulatory and
legislative efforts by our brand competitors to deter competition
from our generic alternatives; our dependence on information
technology systems and infrastructure and the potential for
cybersecurity incidents; our ability to attract, hire and retain
highly skilled personnel; risks related to federal regulation of
arrangements between manufacturers of branded and generic products;
our reliance on certain licenses to proprietary technologies from
time to time; the significant amount of resources we expend on
research and development; the risk of claims brought against us by
third parties; risks related to changes in the regulatory
environment, including U.S. federal and state laws related to
healthcare fraud abuse and health information privacy and security
and changes in such laws; changes to Food and Drug Administration
product approval requirements; the impact of healthcare reform and
changes in coverage and reimbursement levels by governmental
authorities and other third-party payers; our dependence on
third-party agreements for a portion of our product offerings; our
substantial amount of indebtedness and our ability to generate
sufficient cash to service our indebtedness in the future, and the
impact of interest rate fluctuations on such indebtedness; our
potential expansion into additional international markets
subjecting us to increased regulatory, economic, social and
political uncertainties; our ability to identify, make and
integrate acquisitions or investments in complementary businesses
and products on advantageous terms; the impact of global economic,
political or other catastrophic events; our obligations under a tax
receivable agreement may be significant; and the high concentration
of ownership of our Class A common stock and the fact that we are
controlled by the Amneal Group. The forward-looking statements
contained herein are also subject generally to other risks and
uncertainties that are described from time to time in the Company’s
filings with the Securities and Exchange Commission, including
under Item 1A, “Risk Factors” in the Company’s most recent Annual
Report on Form 10-K and in its subsequent reports on Forms 10-Q and
8-K. Investors are cautioned not to place undue reliance on any
such forward-looking statements, which speak only as of the date
they are made. Forward-looking statements included herein speak
only as of the date hereof and we undertake no obligation to revise
or update such statements to reflect the occurrence of events or
circumstances after the date hereof.
Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures,
including EBITDA, adjusted EBITDA, adjusted net income and adjusted
diluted EPS, which are intended as supplemental measures of the
Company’s performance that are not required by or presented in
accordance with GAAP. Adjusted diluted EPS reflects diluted
earnings per share based on adjusted net income, which is net loss
adjusted to (A) exclude (i) non-cash interest, (ii) GAAP provision
for income taxes, (iii) amortization, (iv) stock-based
compensation, (v) acquisition, site closure expenses, and idle
facility expenses, (vi) restructuring and other charges, (vii)
charges related to certain legal matters, including interest, net,
(viii) asset impairment charges, (ix) change in fair value of
contingent consideration, (x) increase in tax receivable agreement
liability, (xi) system implementation expense, (xii) other and
(xiii) net income attributable to non-controlling interests not
associated with Class B common stock, and (B) include non-GAAP
provision for income taxes. Non-GAAP adjusted diluted EPS for the
three months ended March 31, 2024 was calculated using the weighted
average fully diluted shares outstanding of Class A common stock.
Non-GAAP adjusted diluted EPS for the three months ended March 31,
2023 was calculated using the weighted average diluted shares
outstanding of Class A common stock and assuming all shares of
Class B common stock were converted to shares of Class A common
stock as of January 1, 2023.
Management uses these non-GAAP measures internally to evaluate
and manage the Company’s operations and to better understand its
business because they facilitate a comparative assessment of the
Company’s operating performance relative to its performance based
on results calculated under GAAP. These non-GAAP measures also
isolate the effects of some items that vary from period to period
without any correlation to core operating performance and eliminate
certain charges that management believes do not reflect the
Company’s operations and underlying operational performance. The
compensation committee of the Company’s board of directors also
uses certain of these measures to evaluate management’s performance
and set its compensation. The Company believes that these non-GAAP
measures also provide useful information to investors regarding
certain financial and business trends relating to the Company’s
financial condition and operating results facilitates an evaluation
of the financial performance of the Company and its operations on a
consistent basis. Providing this information therefore allows
investors to make independent assessments of the Company’s
financial performance, results of operations and trends while
viewing the information through the eyes of management.
These non-GAAP measures are subject to limitations. The non-GAAP
measures presented in this release may not be comparable to
similarly titled measures used by other companies because other
companies may not calculate one or more in the same manner.
Additionally, the non-GAAP performance measures exclude significant
expenses and income that are required by GAAP to be recorded in the
Company’s financial statements; do not reflect changes in, or cash
requirements for, working capital needs; and do not reflect
interest expense, or the requirements necessary to service interest
or principal payments on debt. Further, our historical adjusted
results are not intended to project our adjusted results of
operations or financial position for any future period. To
compensate for these limitations, management presents and considers
these non-GAAP measures in conjunction with the Company’s GAAP
results; no non-GAAP measure should be considered in isolation from
or as alternatives to any measure determined in accordance with
GAAP. Readers should review the reconciliations included below, and
should not rely on any single financial measure to evaluate the
Company’s business.
A reconciliation of each historical non-GAAP measure to the most
directly comparable GAAP measure is set forth below.
Amneal Pharmaceuticals, Inc.
Consolidated Statements of Operations (unaudited; $ in
thousands, except per share amounts)
Three Months Ended March
31,
2024
2023
Net revenue
$
659,191
$
557,540
Cost of goods sold
421,131
379,354
Gross profit
238,060
178,186
Selling, general and administrative
112,595
102,096
Research and development
39,298
38,690
Intellectual property legal development
expenses
984
1,644
Restructuring and other charges
1,470
510
Change in fair value of contingent
consideration
100
2,457
Charges (credit) related to legal matters,
net
94,359
(436
)
Other operating income
—
(1,224
)
Operating (loss) income
(10,746
)
34,449
Other (expense) income:
Interest expense, net
(65,703
)
(49,315
)
Foreign exchange (loss) gain, net
(1,197
)
1,901
Increase in tax receivable agreement
liability
(1,948
)
(826
)
Other income, net
4,072
4,365
Total other expense, net
(64,776
)
(43,875
)
Loss before income taxes
(75,522
)
(9,426
)
Provision for income taxes
6,156
668
Net loss
(81,678
)
(10,094
)
Less: Net (income) loss attributable to
non-controlling interests
(9,965
)
3,151
Net loss attributable to Amneal
Pharmaceuticals, Inc.
$
(91,643
)
$
(6,943
)
Net loss per share attributable to
Amneal Pharmaceuticals, Inc.'s Class A common stockholders:
Basic and diluted
$
(0.30
)
$
(0.05
)
Weighted-average common shares
outstanding:
Basic and diluted
307,279
152,109
Amneal Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheets (unaudited; $ in
thousands)
March 31, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
46,520
$
91,542
Restricted cash
5,097
7,565
Trade accounts receivable, net
668,955
613,732
Inventories
570,653
581,384
Prepaid expenses and other current
assets
87,298
82,685
Related party receivables
1,521
955
Total current assets
1,380,044
1,377,863
Property, plant and equipment, net
439,815
447,574
Goodwill
598,549
598,629
Intangible assets, net
859,272
890,423
Operating lease right-of-use assets
32,970
30,329
Operating lease right-of-use assets -
related party
12,468
12,954
Financing lease right-of-use assets
59,532
59,280
Other assets
73,747
55,517
Total assets
$
3,456,397
$
3,472,569
Liabilities and Stockholders'
(Deficiency) Equity
Current liabilities:
Accounts payable and accrued expenses
$
558,518
$
534,662
Current portion of liabilities for legal
matters
30,130
76,988
Revolving credit facility
179,000
179,000
Current portion of long-term debt, net
33,660
34,125
Current portion of operating lease
liabilities
9,508
9,207
Current portion of operating lease
liabilities - related party
3,192
2,825
Current portion of financing lease
liabilities
3,305
2,467
Related party payables - short term
17,075
7,321
Total current liabilities
834,388
846,595
Long-term debt, net
2,377,707
2,386,004
Note payable - related party
41,893
41,447
Operating lease liabilities
26,786
24,095
Operating lease liabilities - related
party
11,969
12,787
Financing lease liabilities
58,809
58,566
Related party payables - long term
11,394
11,776
Liabilities for legal matters - long
term
85,479
316
Other long-term liabilities
24,579
29,679
Total long-term liabilities
2,638,616
2,564,670
Redeemable non-controlling interests
47,022
41,293
Total stockholders' (deficiency)
equity
(63,629
)
20,011
Total liabilities and stockholders'
(deficiency) equity
$
3,456,397
$
3,472,569
Amneal Pharmaceuticals, Inc.
Consolidated Statements of Cash Flows (unaudited; $ in
thousands)
Three Months Ended March
31,
2024
2023
Cash flows from operating
activities:
Net loss
$
(81,678
)
$
(10,094
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Depreciation and amortization
55,528
58,150
Unrealized foreign currency loss
(gain)
1,511
(1,987
)
Amortization of debt issuance costs and
discount
288
2,058
Intangible asset impairment charges
920
—
Change in fair value of contingent
consideration
100
2,457
Stock-based compensation
6,722
7,596
Inventory provision
22,923
25,204
Other operating charges and credits,
net
1,250
2,047
Changes in assets and liabilities:
Trade accounts receivable, net
(55,173
)
195,970
Inventories
(12,200
)
(22,508
)
Prepaid expenses, other current assets and
other assets
(11,708
)
29,160
Related party receivables
(562
)
470
Accounts payable, accrued expenses and
other liabilities
62,174
(150,483
)
Related party payables
5,495
1,672
Net cash (used in) provided by operating
activities
(4,410
)
139,712
Cash flows from investing
activities:
Purchases of property, plant and
equipment
(9,198
)
(9,688
)
Acquisition of intangible assets
(9,700
)
(338
)
Deposits for future acquisition of
property, plant and equipment
(862
)
(1,711
)
Net cash used in investing activities
(19,760
)
(11,737
)
Cash flows from financing
activities:
Payments of principal on debt, revolving
credit facilities, financing leases and other
(63,377
)
(72,659
)
Borrowings on revolving credit
facilities
48,000
80,000
Proceeds from exercise of stock
options
28
—
Employee payroll tax withholding on
restricted stock unit vesting
(7,212
)
(2,022
)
Tax distributions to non-controlling
interests
(594
)
(18,219
)
Net cash used in financing activities
(23,155
)
(12,900
)
Effect of foreign exchange rate on
cash
(165
)
767
Net (decrease) increase in cash, cash
equivalents, and restricted cash
(47,490
)
115,842
Cash, cash equivalents, and restricted
cash - beginning of period
99,107
35,227
Cash, cash equivalents, and restricted
cash - end of period
$
51,617
$
151,069
Cash and cash equivalents - end of
period
$
46,520
$
144,674
Restricted cash - end of period
5,097
6,395
Cash, cash equivalents, and restricted
cash - end of period
$
51,617
$
151,069
Amneal Pharmaceuticals, Inc. Non-GAAP
Reconciliations (unaudited, $ in thousands)
Reconciliation of Net Loss to EBITDA
and Adjusted EBITDA
Three Months Ended March
31,
2024
2023
Net loss
$
(81,678
)
$
(10,094
)
Adjusted to add:
Interest expense, net
65,703
49,315
Provision for income taxes
6,156
668
Depreciation and amortization
55,528
58,150
EBITDA (Non-GAAP)
$
45,709
$
98,039
Adjusted to add (deduct):
Stock-based compensation expense
6,506
7,596
Acquisition, site closure, and idle
facility expenses (1)
444
2,701
Restructuring and other charges
1,470
411
Charges related to legal matters, net
(2)
94,359
4,064
Asset impairment charges
1,015
733
Foreign exchange loss (gain)
1,197
(1,901
)
Change in fair value of contingent
consideration
100
2,457
Increase in tax receivable agreement
liability
1,948
826
System implementation expense (3)
917
771
Other
(1,314
)
483
Adjusted EBITDA (Non-GAAP)
$
152,351
$
116,180
Amneal Pharmaceuticals, Inc. Non-GAAP
Reconciliations (unaudited; in thousands, except per share
amounts)
Reconciliation of Net Loss to
Adjusted Net Income and Calculation of Adjusted Diluted Earnings
Per Share
Three Months Ended March
31,
2024
2023
Net loss
$
(81,678
)
$
(10,094
)
Adjusted to add (deduct):
Non-cash interest
82
1,841
GAAP provision for income taxes
6,156
668
Amortization
38,671
39,611
Stock-based compensation expense
6,506
7,596
Acquisition, site closure expenses, and
idle facility expenses (1)
444
2,701
Restructuring and other charges
1,453
411
Charges related to legal matters,
including interest, net (2)
94,486
4,882
Asset impairment charges
1,015
733
Change in fair value of contingent
consideration
100
2,457
Increase in tax receivable agreement
liability
1,948
826
System implementation expense (3)
917
771
Other
(1,314
)
632
Provision for income taxes (4)
(14,341
)
(10,829
)
Net income attributable to non-controlling
interests not associated with our Class B common stock
(9,965
)
(5,395
)
Adjusted net income (Non-GAAP)
$
44,480
$
36,811
Weighted average diluted shares
outstanding (Non-GAAP) (5)
316,559
306,370
Adjusted diluted earnings per share
(Non-GAAP)
$
0.14
$
0.12
Amneal Pharmaceuticals, Inc. Non-GAAP
Reconciliations (unaudited)
Explanations for Reconciliations of Net Loss
to EBITDA and Adjusted EBITDA and Net Loss to Adjusted Net
Income and Calculation of Adjusted Diluted Earnings per
Share
(1)
Acquisition, site closure, and idle
facility expenses for the three months ended March 31, 2024
primarily included rent for vacated properties. Acquisition, site
closure, and idle facility expenses for the three months ended
March 31, 2023 primarily included site closure costs associated
with the planned cessation of manufacturing at our Hauppauge, NY
facility.
(2)
For the three months ended March 31, 2024,
charges related to legal matters, net were associated with a
settlement in principle on the primary financial terms for a
nationwide resolution to the opioids cases that have been filed and
that might have been filed against the Company by states, counties,
municipalities, and Native American Tribal Nations across the
United States. For the three months ended March 31, 2023 charges
related to legal matters, net included charges of $4.9 million for
legal proceedings.
(3)
System implementation expense for the
three months ended March 31, 2024 and 2023 was primarily for the
implementation of (i) indirect procurement software; (ii) sales
deduction software; and (iii) financial statement consolidation
software to further integrate our acquired businesses.
(4)
The non-GAAP effective tax rates for the
three months ended March 31, 2024 and 2023 were 24.4% and 22.7%,
respectively.
(5)
Weighted average diluted shares
outstanding for the three months ended March 31, 2024 consisted of
fully diluted Class A common stock. Weighted average diluted shares
outstanding for the three months ended March 31, 2023 consisted of
diluted Class A common stock and Class B common stock, as if all
shares of Class B common stock were converted to Class A common
stock as of January 1, 2023.
Amneal Pharmaceuticals, Inc. Generics
Segment Reconciliation of GAAP to Non-GAAP Operating Results
(1) (unaudited; $ in thousands)
Three Months Ended March 31,
2024
Three Months Ended March 31,
2023
As Reported
Adjustments
Non-GAAP
As Reported
Adjustments
Non-GAAP
Net revenue
$
391,294
$
—
$
391,294
$
343,806
$
—
$
343,806
Cost of goods sold (2)
239,922
(12,268
)
227,654
230,551
(15,442
)
215,109
Gross profit
151,372
12,268
163,640
113,255
15,442
128,697
Gross margin %
38.7
%
41.8
%
32.9
%
37.4
%
Selling, general and administrative
(3)
33,085
(1,729
)
31,356
27,600
(1,279
)
26,321
Research and development (4)
34,371
(655
)
33,716
32,359
(943
)
31,416
Intellectual property legal development
expenses
960
—
960
1,624
—
1,624
Restructuring and other charges
—
—
—
99
—
99
Charges (credit) related to legal matters,
net (5)
94,359
(94,359
)
—
(2,444
)
(2,056
)
(4,500
)
Other operating income
—
—
—
(1,224
)
—
(1,224
)
Operating (loss) income
$
(11,403
)
$
109,011
$
97,608
$
55,241
$
19,720
$
74,961
(1)
Operating results for the sale of Amneal
products by AvKARE were included in our Generics segment.
(2)
Adjustments for the three months ended
March 31, 2024 and 2023, respectively, were comprised of
stock-based compensation expense ($0.9 million and
$1.7 million), amortization expense ($10.4 million and
$10.8 million), site closure and idle facility expenses
(none and $2.1 million), asset impairment charges ($1.0
million and $0.7 million), and other (none and $0.1 million).
(3)
Adjustments for the three months ended
March 31, 2024 and 2023, respectively, were comprised of
stock-based compensation expense ($1.3 million and
$0.7 million) and site closure costs ($0.4 million and
$0.6 million).
(4)
Adjustments for the three months ended
March 31, 2024 and 2023, respectively, were comprised of
stock-based compensation expense.
(5)
Adjustments for the three months ended
March 31, 2024 were associated with a settlement in principle
on the primary financial terms for a nationwide resolution to the
opioids cases that have been filed and that might have been filed
against the Company by states, counties, municipalities, and Native
American Tribal Nations across the United States. Adjustments
for the three months ended March 31, 2023 were comprised of charges
for legal proceedings.
Amneal Pharmaceuticals, Inc. Specialty
Segment Reconciliation of GAAP to Non-GAAP Operating Results
(unaudited; $ in thousands)
Three Months Ended March 31,
2024
Three Months Ended March 31,
2023
As Reported
Adjustments
Non-GAAP
As Reported
Adjustments
Non-GAAP
Net revenue
$
105,234
$
—
$
105,234
$
91,678
$
—
$
91,678
Cost of goods sold (1)
44,800
(25,978
)
18,822
43,191
(26,183
)
17,008
Gross profit
60,434
25,978
86,412
48,487
26,183
74,670
Gross margin %
57.4
%
82.1
%
52.9
%
81.4
%
Selling, general and administrative
(2)
25,196
(271
)
24,925
22,379
(186
)
22,193
Research and development (2)
4,927
(284
)
4,643
6,331
(389
)
5,942
Intellectual property legal development
expenses
24
—
24
20
—
20
Restructuring and other charges
946
(946
)
—
—
—
—
Change in fair value of contingent
consideration (3)
100
(100
)
—
2,457
(2,457
)
—
Operating income
$
29,241
$
27,579
$
56,820
$
17,300
$
29,215
$
46,515
(1)
Adjustments for the three months ended
March 31, 2024 and 2023 were comprised of amortization expense.
(2)
Adjustments for the three months
ended March 31, 2024 and 2023 were comprised of stock-based
compensation expense.
(3)
Contingent consideration was recorded in
connection with the acquisitions of (i) the baclofen franchise from
certain entities affiliated with Saol International Limited and
(ii) Kashiv Specialty Pharmaceuticals, LLC.
Amneal Pharmaceuticals, Inc. AvKARE Segment
Reconciliation of GAAP to Non-GAAP Operating Results (1)
(unaudited; $ in thousands)
Three Months Ended March 31,
2024
Three Months Ended March 31,
2023
As Reported
Adjustments
Non-GAAP
As Reported
Adjustments
Non-GAAP
Net revenue
$
162,663
$
—
$
162,663
$
122,056
$
—
$
122,056
Cost of goods sold
136,409
—
136,409
105,612
—
105,612
Gross profit
26,254
—
26,254
16,444
—
16,444
Gross margin %
16.1
%
16.1
%
13.5
%
13.5
%
Selling, general and administrative
(2)
14,907
(3,545
)
11,362
12,940
(3,764
)
9,176
Operating income
$
11,347
$
3,545
$
14,892
$
3,504
$
3,764
$
7,268
(1)
Operating results for the sale of Amneal
products by AvKARE were included in our Generics segment.
(2)
Adjustments for the three months ended
March 31, 2024 and 2023, respectively, were comprised of
amortization expense ($3.5 million and $4.2 million) and other
(none and ($0.4) million).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240503325618/en/
Anthony DiMeo VP, Investor Relations & Media
anthony.dimeo@amneal.com
Amneal Pharmaceuticals (NYSE:AMRX)
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