QLT Inc. (Nasdaq:QLTI) (TSX:QLT) ("QLT" or the "Company") is a
biotechnology company dedicated to the development and
commercialization of innovative ocular products that address the
unmet medical needs of patients and clinicians worldwide. The
Company reported financial results today for the fourth quarter and
year ended December 31, 2013. Unless otherwise specified, all
amounts are reported in U.S. dollars and in accordance with U.S.
GAAP.
2013 FINANCIAL RESULTS
QLT Expenses / Other Income
Research and Development (R&D) expenses relate to QLT's
synthetic retinoid program. During the fourth quarter of 2013, QLT
incurred R&D expense of $4.8 million, compared to $5.0 million
for the same period in 2012. For the full year, R&D expense was
$18.5 million compared to $24.6 million in 2012. The $6.1 million
net decrease was primarily due to reduced staffing resulting from
the Company's 2012 restructuring initiatives.
During the fourth quarter of 2013, Selling, General and
Administrative (SG&A) expense was $1.4 million compared to $2.4
million for the same period in 2012. For the full year, SG&A
expense was $7.0 million compared to $15.1 million in 2012. For
both periods, the decrease was primarily due to savings from the
Company's 2012 restructuring initiatives.
Investment and Other Income was $1.1 million and $3.3 million
for the quarter and year ended December 31, 2013, respectively. For
both periods, this primarily related to a gain of $1.0 million and
$2.9 million, respectively, for the Fair Value Change in Contingent
Consideration. This gain occurred primarily because our current
contingent consideration asset is recorded as the present value of
future expected payments with respect to Eligard®, and therefore as
each quarter elapses, even if no changes are made to the underlying
Eligard forecast, we will book a gain related to the time value of
money as we move one quarter closer to realizing the full face
value of the assets.
Operating Losses
The operating loss for the fourth quarter was $6.6 million,
compared to a $10.1 million operating loss recorded during the same
period in 2012. The full year operating loss for 2013 was $28.5
million, compared to $54.7 million in 2012. The improvement in
operating results of $3.5 million for the fourth quarter, and $26.2
million for the full year, in comparison to the same periods in
2012, are primarily due to savings related to the Company's 2012
restructuring initiatives and restructuring charges recorded in
2012.
Income from Discontinued Operations, Net of Income
Taxes
During the fourth quarter of 2013, we earned $0.9 million of
income from discontinued operations, net of income taxes, compared
to a $1.1 million loss incurred from discontinued operations in the
fourth quarter of 2012. For the full year, we earned $1.0 million
of income from discontinued operations, net of income taxes,
compared to $88.0 million of income from discontinued operations in
2012. The decrease was primarily due to a pre-tax gain of $101.4
million related to the divestment of the Visudyne® business
recorded in the third quarter of 2012.
(Loss) / Income Per Share
Loss per share from continuing operations was $0.11 in the
fourth quarter of 2013, compared to a loss per share from
continuing operations of $0.16 in the fourth quarter of 2012. The
improvement was primarily due to higher restructuring charges
recorded in 2012 and savings related to the Company's 2012
restructuring initiatives. These improvements were partially offset
by a lower gain from the Fair Value Change in Contingent
Consideration in the current period. For the full year, loss per
share from continuing operations was $0.51 in 2013, compared to a
loss per share of $0.84 in 2012. The improvement was due to the
same factors described above as well as the 2012 income tax
recovery resulting from the recognition of the tax benefit of our
operating losses from continuing operations.
Income per share from discontinued operations was $0.02 for the
fourth quarter of 2013, compared to a $0.02 loss per share from
discontinued operations in the fourth quarter of 2012. For the full
year, income per share from discontinued operations was $0.02,
compared to $1.75 in 2012. The difference was primarily due to a
pre-tax gain of $101.4 million related to the divestment of the
Visudyne® business recorded in the third quarter of 2012.
Cash and Cash Equivalents
As at December 31, 2013, the Company's consolidated cash and
cash equivalents was $118.5 million compared to $307.4 million of
cash and cash equivalents at the end of 2012. The decrease was
largely due to the $200.0 million special cash distribution to the
Company's shareholders completed in June 2013, which was partially
offset by $7.5 million of funds that were released to us from
escrow on September 26, 2013. During the fourth quarter of 2013,
proceeds received in connection with collection of the Eligard
Contingent Consideration totaled $10.5 million ($38.7 million
collected in 2013). In addition, we still have up to $38.0 million
of Eligard Contingent Consideration remaining to be collected.
Passive Foreign Investment Company
The Company believes that it was classified as a Passive Foreign
Investment Company (PFIC) for 2008 – 2013, and that it may be
classified as a PFIC in 2014, which could have adverse tax
consequences for U.S. shareholders. Please refer to our Annual
Report on Form 10-K for additional information.
QLT Inc. - Financial
Highlights |
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)
INCOME |
In accordance with United States
generally accepted accounting principles |
(Unaudited) |
|
Three months
ended |
Year
ended |
|
December
31, |
December
31, |
(In thousands of U.S. dollars
except share and per share information) |
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
Expenses |
|
|
|
|
Research and development |
$4,794 |
$4,958 |
$18,509 |
$24,578 |
Selling, general and
administrative |
1,418 |
2,434 |
6,986 |
15,082 |
Depreciation |
247 |
237 |
964 |
1,165 |
Restructuring
charges |
184 |
2,448 |
2,031 |
13,850 |
|
6,643 |
10,077 |
28,490 |
54,675 |
|
|
|
|
|
Operating loss |
(6,643) |
(10,077) |
(28,490) |
(54,675) |
|
|
|
|
|
Investment and other
income |
|
|
|
|
Net foreign exchange gains
(losses) |
4 |
76 |
(32) |
(8) |
Interest income |
36 |
97 |
211 |
244 |
Fair value change in contingent
consideration |
961 |
1,783 |
2,865 |
8,215 |
Other gains |
107 |
(42) |
207 |
60 |
|
1,108 |
1,914 |
3,251 |
8,511 |
|
|
|
|
|
Loss from continuing operations
before income taxes |
(5,535) |
(8,163) |
(25,239) |
(46,164) |
|
|
|
|
|
(Provision for) recovery of income
taxes |
(165) |
102 |
(599) |
3,900 |
Loss from continuing
operations |
(5,700) |
(8,061) |
(25,838) |
(42,264) |
|
|
|
|
|
Income from discontinued operations, net of
income taxes |
851 |
(1,120) |
967 |
87,962 |
|
|
|
|
|
Net (loss) income and
comprehensive (loss) income |
($4,849) |
($9,181) |
($24,871) |
$45,698 |
|
|
|
|
|
Basic and diluted net (loss) income
per common share |
|
|
|
|
Continuing
operations |
($0.11) |
($0.16) |
($0.51) |
($0.84) |
Discontinued
operations |
$0.02 |
($0.02) |
$0.02 |
$1.75 |
Net (loss) income per
common share |
($0.10) |
($0.18) |
($0.49) |
$0.91 |
|
|
|
|
|
Weighted average number of common
shares outstanding (thousands) |
|
|
|
|
Basic and diluted |
51,082 |
51,674 |
50,909 |
50,112 |
|
CONSOLIDATED BALANCE
SHEETS |
(In thousands of U.S.
dollars) |
As at December 31, |
2013 |
2012 |
ASSETS |
|
|
Current assets |
|
|
Cash and cash equivalents |
$ 118,521 |
$ 307,384 |
Restricted cash |
-- |
7,500 |
Accounts receivable, net of
allowances for doubtful accounts |
4,590 |
3,960 |
Contingent consideration -
current |
36,582 |
41,255 |
Income taxes receivable |
77 |
554 |
Deferred income tax assets -
current |
191 |
644 |
Assets held for sale |
-- |
300 |
Prepaid and other
assets |
1,863 |
1,442 |
Total current assets |
161,824 |
363,039 |
|
|
|
Property, plant and equipment |
1,866 |
2,655 |
Deferred income tax assets - non-current |
177 |
370 |
Contingent consideration -
non-current |
-- |
35,154 |
Total assets |
163,867 |
401,218 |
|
|
|
LIABILITIES |
|
|
Current liabilities |
|
|
Accounts payable |
$ 2,609 |
$ 6,121 |
Accrued liabilities |
1,498 |
2,515 |
Accrued restructuring
charge |
130 |
1,933 |
Deferred income |
-- |
456 |
Total current
liabilities |
4,237 |
11,025 |
|
|
|
Uncertain tax position liabilities |
1,846 |
1,875 |
Total liabilities |
6,083 |
12,900 |
|
|
|
SHAREHOLDERS' EQUITY |
|
|
Share capital (Note
8) |
|
|
Authorized |
|
|
500,000,000 common shares
without par value |
|
|
5,000,000 first preference
shares without par value, issuable in series |
|
|
Issued and outstanding Common
shares |
$ 466,229 |
$ 471,712 |
December 31, 2013 – 51,081,878
shares |
|
|
December 31, 2012 – 51,589,405
shares |
|
|
Additional paid-in capital |
95,844 |
296,024 |
Accumulated deficit |
(507,258) |
(482,387) |
Accumulated other comprehensive
income |
102,969 |
102,969 |
Total shareholders'
equity |
157,784 |
388,318 |
Total shareholders' equity and
liabilities |
$ 163,867 |
$ 401,218 |
About QLT
QLT is a biotechnology company dedicated to the development and
commercialization of innovative ocular products that address the
unmet medical needs of patients and clinicians worldwide. We are
focused on developing our synthetic retinoid program for the
treatment of certain inherited retinal diseases.
QLT's head office is based in Vancouver, Canada and the Company
is publicly traded on NASDAQ Stock Market (symbol: QLTI) and the
Toronto Stock Exchange (symbol: QLT). For more information about
the Company's products and developments, please visit our web site
at www.qltinc.com.
Visudyne® is a registered trademark of Novartis AG Eligard® is a
registered trademark of Sanofi S.A.
Certain statements in this press release constitute
"forward-looking statements" of QLT within the meaning of the
Private Securities Litigation Reform Act of 1995 and constitute
"forward-looking information" within the meaning of applicable
Canadian securities laws. Forward-looking statements include, but
are not limited to: statements concerning our PFIC status; and
statements which contain language such as: "assuming," "prospects,"
"goal," "future," "projects," "potential," "believes," "expects,"
"hopes," and "outlook." Forward-looking statements are predictions
only which involve known and unknown risks, uncertainties and other
factors that may cause actual results to be materially different
from those expressed in such statements. Many such risks,
uncertainties and other factors are taken into account as part of
our assumptions underlying these forward-looking statements and
include, among others, the following: the Company's future
operating results are uncertain and likely to fluctuate; currency
fluctuations; the risk that sales of Visudyne or Eligard may be
less than expected thereby impacting our contingent consideration;
the risk that we may not receive any or as much additional
contingent consideration as we might expect under our agreements
with respect to the sale of Visudyne, Eligard and the PPDS
Technology; risks and uncertainties concerning the impact that
QLT's success or failure in completing strategic initiatives will
have on the market price of our securities; risks resulting from
the potential loss of key personnel; uncertainties relating to our
development plans, timing and results of the clinical development
and commercialization of our products and technologies; assumptions
related to continued enrollment trends, efforts and success, and
the associated costs of these programs; outcomes for our clinical
trials may not be favorable or may be less favorable than
interim/preliminary results and/or previous trials; there may be
varying interpretations of data produced by one or more of our
clinical trials; risks and uncertainties associated with the safety
and effectiveness of our technology; the timing, expense and
uncertainty associated with the regulatory approval process for
products to advance through development stages; risks and
uncertainties related to the scope, validity, and enforceability of
our intellectual property rights and the impact of patents and
other intellectual property of third parties; and general economic
conditions and other factors described in detail in QLT's Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and other
filings with the U.S. Securities and Exchange Commission and
Canadian securities regulatory authorities. Forward-looking
statements are based on the current expectations of QLT and QLT
does not assume any obligation to update such information to
reflect later events or developments except as required by law.
This press release also contains "forward looking information"
that constitutes "financial outlooks" within the meaning of
applicable Canadian securities laws. This information is provided
to give investors general guidance on management's current
expectations of certain factors affecting our business, including
our financial results. Given the uncertainties, assumptions and
risk factors associated with this type of information, including
those described above, investors are cautioned that the information
may not be appropriate for other purposes.
CONTACT: QLT Inc. Contacts:
Investor & Media Relations
Andrea Rabney or David Pitts
Argot Partners
212-600-1902
andrea@argotpartners.com
david@argotpartners.com
Novelion Therapeutics (NASDAQ:NVLN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Novelion Therapeutics (NASDAQ:NVLN)
Historical Stock Chart
From Sep 2023 to Sep 2024