ALBANY, N.Y., Feb. 17, 2016 /PRNewswire/ -- AMRI (NASDAQ: AMRI)
today reported financial and operating results for the fourth
quarter and full year ended December 31,
2015 and provided an outlook for 2016.
- Fourth quarter total revenue of $126.4 million, up 46% from 2014; Full year total
revenue of $402.4 million, up
45%
- Fourth quarter adjusted contract margins expand to
30%; Full year adjusted contract margins of 26%
- Fourth quarter adjusted EBITDA of $26.7 million; Full year adjusted EBITDA of
$75.2 million
- Fourth quarter adjusted diluted EPS of $0.40; Full year adjusted diluted EPS of
$0.96
- 2016 Revenue expected to be between $465 to $490 million
- 2016 Adjusted EPS expected to be between $1.00 and $1.10 per diluted
share
"Adjusted contract margins" and "Adjusted diluted EPS" are
Non-GAAP measurements. See discussion under the heading "Non-GAAP
Adjustment Items" in this release.
"Strong performances in each of our businesses led us to finish
2015 with total revenue increasing 45% and adjusted contract
margins expanding to 26% for the year," said William S. Marth, AMRI's president and chief
executive officer. "Our strong performance demonstrates the
effectiveness of our strategy to grow both organically and
inorganically, create sustainable revenue and EBITDA, and provide
valuable and differentiating services and products for our
customers.
2015 was a transformative year for AMRI. We significantly
expanded our capabilities in API and drug product and added
valuable analytical and testing expertise that our customers are
looking for in an increasingly complex regulatory and legal
environment. In addition, we expanded our discovery service
offerings and continue to advance development programs that will
provide us new revenue opportunities.
We have built a sustainable platform for our business and as we
enter 2016, we have more visibility on our business than we have
ever had in our past. Our priority will be to maximize the value of
our acquisitions, continue to drive organic and inorganic growth
and deliver the quality, reliable and innovative services and
products our customers demand."
Fourth Quarter 2015 Results
Total revenue for the fourth quarter of 2015 was $126.4 million, an increase of 46% compared to
total revenue of $86.6 million
reported in the fourth quarter of 2014.
Total contract revenue for the fourth quarter of 2015 was
$123.0 million, an increase of 52%
compared to contract revenue of $80.7
million reported in the fourth quarter of 2014. Adjusted
contract margins were 30% for the fourth quarter of 2015, compared
with 23% for the fourth quarter of 2014. Margins benefited
from recent acquisitions, product mix within the Drug Product
segment and the impact of cost reduction initiatives and facility
optimization activities.
Royalty revenue in the fourth quarter of 2015 was $3.4 million, a decrease of 43% from $5.9 million in the fourth quarter of 2014, due
primarily to lower royalties on Allegra (fexofenadine) products
which have ended based on the expiration of the underlying patents.
Royalty revenue for the fourth quarter of 2015 includes royalties
from the net sales of certain amphetamine salts sold by Actavis and
royalties from an API sourced from Spain.
Adjusted EBITDA in the fourth quarter of 2015 was $26.7 million, an increase of 51% from
$17.7 million in the fourth quarter
2014.
Net income under U.S. GAAP was $1.8
million, or $0.05 per diluted
share, in the fourth quarter of 2015, compared to U.S. GAAP net
loss of $(1.9) million, or
$(0.06) per share for the fourth
quarter of 2014. Net income on an adjusted basis in the fourth
quarter of 2015 was $14.1 million, or
$0.40 per diluted share, compared to
adjusted net income of $9.3 million
or $0.28 per diluted share in 2014.
For a reconciliation of U.S. GAAP net income (loss), EBITDA and
earnings (loss) per diluted share to adjusted net income, EBITDA
and earnings per diluted share for the 2015 and 2014 reporting
periods, please see Tables 2 and 3 at the end of this press
release.
Full Year 2015 Results
Total revenue for the year ended December
31, 2015 was $402.3 million,
an increase of 45% compared to total revenue of $276.6 million for the same period in 2014.
Total contract revenue for the full year 2015 was $384.7 million, an increase of 53% compared to
contract revenue of $250.7 million
for 2014. Adjusted contract margins were 26% for the full year
2015, compared to 20% in 2014.
Royalty revenue for the full year 2015 was $17.6 million, a decrease of 32% from
$25.9 million in 2014.
Adjusted EBITDA for the full year 2015 was $75.2 million, an increase of 50% from
$50.0 million in 2014.
Net loss under U.S. GAAP for the full year 2015 was $(2.3) million, or $(0.07) per diluted share, compared to U.S. GAAP
net loss of $(3.3) million, or
$(0.10) per diluted share in 2014.
Net income on an adjusted basis in the full year 2015 was
$33.0 million or $0.96 per diluted share, compared to adjusted net
income of $21.1 million or
$0.65 per diluted share in 2014, an
increase of 48%. Adjusted net income in 2015 includes an
$7.2 million decline in royalty
income and $20.0 million of income
from operations acquired during 2015.
For a reconciliation of U.S. GAAP net income (loss), EBITDA and
earnings (loss) per diluted share as reported to adjusted net
income, EBITDA and earnings per diluted share for the 2015 and 2014
reporting periods, please see Tables 2 and 3 at the end of this
press release.
Segment Results
Drug Discovery
Services (DDS)
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|
|
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|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
(Unaudited; $ in
thousands)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
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|
DDS Contract
Revenue
|
|
$ 24,209
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|
$ 19,389
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$ 89,973
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|
$ 74,612
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Cost of Contract
Revenue
|
|
17,572
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|
15,010
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|
66,508
|
|
60,101
|
Contract Gross
Profit
|
|
6,637
|
|
4,379
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|
23,465
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|
14,511
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Contract Gross
Margin
|
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27.4%
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22.6%
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26.1%
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19.4%
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|
Adjusted Contract
Gross Profit (1) (2)
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7,093
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4,537
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25,083
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15,043
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Adjusted Contract
Gross Margin (1) (2)
|
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29.3%
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23.4%
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27.9%
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20.2%
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(1) Refer to Table 1
included in this release for the reconciliation of U.S. GAAP
contract gross profit and contract gross margin to adjusted
contract gross profit and adjusted contract gross margin as a
percentage of contract revenue.
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(2) A portion of the
2014 amounts were reclassified from DDS to API to better align
business activities within our reporting segments.
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Discovery and Development Services (DDS) contract revenue for
the fourth quarter of 2015 increased $4.8
million or 25% compared to the fourth quarter of 2014,
primarily due to $4.2 million of
incremental revenue from the acquisition of SSCI in February 2015. DDS adjusted gross margins
increased 6 percentage points in the fourth quarter of 2015, driven
by margins realized on SSCI revenues and higher capacity
utilization resulting from previous cost reduction initiatives.
For the full year 2015, DDS contract revenue increased
$15.4 million or 21% primarily due to
$14.9 million of incremental SSCI
revenues. DDS adjusted gross margins increased 8 percentage points,
driven by the margins realized on SSCI revenues, as well as the
benefits of cost reduction initiatives and facility
optimization.
Active
Pharmaceutical Ingredients (API)
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Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
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|
December
31,
|
(Unaudited; $ in
thousands)
|
|
2015
|
|
2014
|
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2015
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2014
|
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|
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API Contract
Revenue
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$ 70,867
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$ 46,556
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$ 204,868
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$ 146,474
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Cost of Contract
Revenue
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54,243
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34,672
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154,670
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|
114,171
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Contract Gross
Profit
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16,624
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|
11,884
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|
50,198
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|
32,303
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Contract Gross
Margin
|
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23.5%
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25.5%
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24.5%
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22.1%
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|
Adjusted Contract
Gross Profit (1) (2)
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21,739
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|
12,136
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|
59,200
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|
32,821
|
Adjusted Contract
Gross Margin (1) (2)
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|
30.7%
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|
26.1%
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|
28.9%
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22.4%
|
|
|
|
|
|
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|
(1) Refer to Table 1
included in this release for the reconciliation of U.S. GAAP
contract gross profit and contract gross margin to adjusted
contract gross profit and adjusted contract gross margin as a
percentage of contract revenue.
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(2) A portion of the
2014 amounts were reclassified from DDS to API to better align
business activities within our reporting segments.
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API contract revenue for the fourth quarter of 2015 increased
$24.3 million or 52% compared to the
third quarter of 2014 primarily due to $23.6
million of incremental revenue from the acquisition of Gadea
Pharmaceuticals in July 2015. API
adjusted contract margin for the fourth quarter of 2015 increased 5
percentage points, driven by the margins realized on Gadea's
revenues, offset by product mix within the business.
For the full year 2015, API contract revenue increased
$58.4 million or 40%, due to
$41.4 million of incremental revenue
from the acquisition of Gadea, as well as organic growth in our
business. API adjusted gross margins increased 7 percentage
points in 2015, due to the addition of Gadea and the mix of
business within the segment.
Drug Product
Manufacturing (DPM)
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Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
(Unaudited; $ in
thousands)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
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|
DPM Contract
Revenue
|
|
$ 27,956
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$ 14,767
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$ 89,897
|
|
$ 29,619
|
Cost of Contract
Revenue
|
|
20,701
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|
16,449
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|
74,349
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|
34,921
|
Contract Gross Profit
(Loss)
|
|
7,255
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|
(1,682)
|
|
15,548
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|
(5,302)
|
Contract Gross
Margin
|
|
26.0%
|
|
-11.4%
|
|
17.3%
|
|
-17.9%
|
|
|
|
|
|
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|
Adjusted Contract
Gross Profit (1)
|
|
7,827
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|
1,823
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|
16,921
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|
1,549
|
Adjusted Contract
Gross Margin (1)
|
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28.0%
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12.3%
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18.8%
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5.2%
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(1) Refer to Table 1
included in this release for the reconciliation of U.S. GAAP
contract gross loss and contract gross margin to adjusted contract
gross profit (loss) and adjusted contract gross margin as a
percentage of contract revenue.
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Drug Product Manufacturing contract revenue for the fourth
quarter of 2015 increased $13.2
million or 89% compared to the fourth quarter 2014, and
includes $4.1 million of revenue from
the Glasgow facility that was
acquired in January 2015 and
increased commercial product and services revenue in our existing
businesses. Drug Product adjusted contract margins for the fourth
quarter of 2015 increased 16 percentage points, reflecting
increased contribution from the Burlington facility and the addition of the
Glasgow business.
For the full year 2015, Drug Product contract revenue increased
$60.3 million, due primarily to
increased commercial product and services revenue and the addition
of $15.6 million in revenue from
Glasgow. Drug Product adjusted
gross margins improved 14 percentage points, due primarily to the
addition of the Glasgow business
and increased profitability at our Burlington facility.
Liquidity and Capital Resources
At December 31, 2015, AMRI had
cash, cash equivalents and restricted cash of $52.3 million, compared to $82.4 million at September
30, 2015. The decrease in cash and cash equivalents for the
quarter ended December 31, 2015 was
primarily due to the use of $54
million for the acquisition of Whitehouse Laboratories in
December 2015 and $12.3 million in capital expenditures, offset by
a $30 million draw on our line of
credit to partially fund the Whitehouse Labs acquisition and cash
generated by operating activities of $5.0
million.
At December 31, 2015, total debt
was $421.5 million and proforma debt
to trailing EBITDA ratio was 4.3 times. Total common shares
outstanding, net of treasury shares, were 35,617,218 at
December 31, 2015.
Financial Outlook
AMRI's guidance takes into account a number of factors,
including expected financial results for 2016, anticipated tax
rates and shares outstanding. Please refer to the investor
presentation included on the Investor Relations page of our website
at: ir.amriglobal.com for further information on our full year 2016
guidance.
AMRI estimates the following for full year 2016:
- Full Year 2016 revenue of $465 to $490
million, an increase of 19% at the midpoint, including
- DDS revenue growth of over 20% to approximately $104 million*
- API revenue growth of 27% to approximately $260 million
- Drug Product revenue growth of 8% to approximately $105 million*
- Adjusted contract margin of approximately 30%
- Adjusted selling, general and administrative expenses of
approximately 15% of revenue
- R&D of approximately $9
million
- Adjusted EBITDA between $91 and $97
million, an increase of 25% at the midpoint
- Adjusted diluted EPS is expected to be between $1.00 and $1.10, based on an average fully
diluted share count of between 37 and 38 million shares
- Effective tax rate of between 29% and 30%
- Capital expenditures of approximately $45 million
*The 2016 forecast for DDS and Drug Product reflects
$6.9 million in revenue that has been
reclassed from 2015 DDS revenue to Drug Product. This is
largely related to analytical services work previously booked in
development services which directly supports our finished Drug
Product activities.
Fourth Quarter and Full Year 2015 Results Conference
Call
AMRI will host a conference call and webcast today
at 8:30 a.m. ET to discuss fourth quarter 2015
results. The conference call can be accessed by dialing (866)
208-5728 (domestic calls) or (224) 633-1279 (international calls)
at 8:20 a.m. ET and entering passcode
37056515. The webcast and supplementing slides can be accessed on
the company's website at www.amriglobal.com.
A replay of the conference call can be accessed for 24 hours at
(855) 859-2056 (domestic calls) or (404)
537-3406 (international calls) and entering passcode 75749093.
Replays of the webcast can also be accessed for up to 90 days after
the call via the investor area of the company's website at
http://ir.amriglobal.com.
About AMRI
Albany Molecular Research
Inc. (AMRI) is a global contract research and manufacturing
organization that has been working with the Life Sciences industry
to improve patient outcomes and the quality of life for more than
two decades. With locations in North
America, Europe and Asia, our key business segments
include Discovery and Development Services (DDS), Active
Pharmaceutical Ingredients (API), and Drug Product Manufacturing
(DPM). Our DDS segment provides comprehensive services from hit
identification to IND, including expertise with diverse chemistry,
library design and synthesis, in vitro biology and pharmacology,
drug metabolism and pharmacokinetics, as well as natural products.
API supports the chemical development and cGMP manufacture of
complex API, including potent and cytotoxic compounds, controlled
substances, steroids, hormones, and sterile API. DPM supports
development through commercial scale production of complex
liquid-filled and lyophilized parenterals, sterile suspensions and
ophthalmic formulations
Forward-looking Statements
This press release includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties. These statements include, but
are not limited to, statements regarding the company's estimates of
revenue, contract revenue, adjusted EBITDA, adjusted diluted
earnings per share, and all information and other statements
regarding the estimates of results and financial outlook for 2016,
statements made by the company's Chief Executive Officer, and
statements under the caption "Financial Outlook", statements
regarding the strength of the company's business and prospects,
statements regarding the impact of recent acquisition activity, and
statements concerning the company's momentum and long-term growth,
including expected results for 2016. Readers should not place undue
reliance on our forward-looking statements. The company's actual
results may differ materially from such forward-looking statements
as a result of numerous factors, some of which the company may not
be able to predict and may not be within the company's control.
Factors that could cause such differences include, but are not
limited to, the finalization of the audit of the Company's
financial results for 2015 by the Company's independent accountants
and the subsequent finalization of the financial statements of the
Company for the year ended December 31,
2015; ongoing headwinds in the US economy which could lead
to overall softness in the markets we serve, difficulty in raising
new capital to support our business and a slowdown in our ability
to grow inorganically; trends in pharmaceutical and biotechnology
companies' outsourcing of manufacturing services and chemical
research and development, including softness in these markets; the
success of the sales of the products for which the company receives
royalties; the risk that the company will not be able to replicate
either in the short or long term the revenue stream that has been
derived from the royalties payable under the Allegra® license
agreements; the risk that clients may terminate or reduce demand
under any strategic or multi-year deal; the company's ability to
enforce its intellectual property and technology rights; the
company's ability to obtain financing sufficient to meet its
business needs; the company's ability to successfully comply with
heightened FDA scrutiny on aseptic fill/finish operations; the
results of further FDA inspections; the company's ability to
effectively maintain compliance with applicable FDA and DEA
regulations; the company's ability to integrate past or future
acquisitions, including the Aptuit West Lafayette and Glasgow operations, Gadea Groupo and
Whitehouse Laboratories, and make such acquisitions accretive to
the company's business model, the company's ability to take
advantage of proprietary technology and expand the scientific tools
available to it, the ability of the company's strategic investments
and acquisitions to perform as expected, as well as those risks
discussed in the company's Annual Report on Form 10-K for the year
ended December 31, 2014 as filed with
the Securities and Exchange Commission on March 17, 2014, and the company's other SEC
filings. Revenue, contract revenue, adjusted diluted EPS, adjusted
contract margin, adjusted EBITDA and other financial guidance
offered by senior management today with respect to 2016 represent a
point-in-time estimate and are based on information as of the date
of this press release. Senior management has made numerous
assumptions in providing this guidance which, while believed to be
reasonable, may not prove to be accurate. Numerous factors,
including those noted above, may cause actual results to differ
materially from the guidance provided. The company expressly
disclaims any current intention or obligation to update the
guidance provided or any other forward-looking statement in this
press release to reflect future events or changes in facts assumed
for purposes of providing this guidance or otherwise affecting the
forward-looking statements contained in this press release.
Non-GAAP Adjustment Items
To supplement our financial results prepared in accordance with
U.S. GAAP, we have presented non-GAAP measures of contract gross
profit, contract gross margin, income from operations, and net
income and income per diluted share as adjusted to exclude certain
impairment charges, restructuring charges, executive transition
costs, non-cash debt interest and amortization charges, business
acquisition costs, share-based compensation expense, non-recurring
professional fees, ERP implementation costs, purchase accounting
depreciation, amortization, and inventory adjustments, write-offs
of deferred financing costs, insurance recoveries, non-recurring
income tax adjustments, business interruption charges and related
insurance recoveries, cumulative translation adjustment losses, and
postretirement benefit plan settlement gains in the 2015 and 2014
periods. We have also presented non-GAAP measures of adjusted
EBITDA, which in addition to the items excluded above, further
excluded the impact of interest income and expense, depreciation
and amortization expense, and income tax expense or benefit.
Exclusion of these non-recurring items allows comparisons of
operating results that are consistent over time. We believe
presentation of these non-GAAP measures enhances an overall
understanding of our historical financial performance because we
believe they are an indication of the performance of our base
business. Management uses these non-GAAP measures as a basis for
evaluating our financial performance as well as for budgeting and
forecasting of future periods. For these reasons, we believe they
can be useful to investors. The presentation of this additional
information should not be considered in isolation or as a
substitute for income (loss) from operations, net income (loss) or
income (loss) per diluted share, prepared in accordance with U.S.
GAAP. Reconciliations of these non-GAAP measures to the most
directly comparable GAAP financial measures are set forth in Tables
1-3.
Albany Molecular
Research, Inc.
Condensed
Consolidated Statements of Operations (unaudited)
|
|
|
|
Three Months Ended
|
|
Year
Ended
|
(Dollars in
thousands, except for per share data)
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
|
|
|
|
|
|
Contract
revenue
|
|
$
|
123,032
|
|
$
|
80,712
|
|
$
|
384,738
|
|
$
|
250,705
|
Recurring
royalties
|
|
|
3,380
|
|
|
5,888
|
|
|
17,618
|
|
|
25,866
|
Total
revenue
|
|
|
126,412
|
|
|
86,600
|
|
|
402,356
|
|
|
276,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of contract
revenue
|
|
|
92,516
|
|
|
66,131
|
|
|
295,527
|
|
|
209,193
|
Technology incentive
award
|
|
|
-
|
|
|
344
|
|
|
554
|
|
|
1,621
|
Research and
development
|
|
|
2,696
|
|
|
229
|
|
|
5,474
|
|
|
1,004
|
Selling, general and
administrative
|
|
|
22,183
|
|
|
13,954
|
|
|
77,394
|
|
|
48,898
|
Postretirement
benefit plan settlement gain
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(1,285)
|
Restructuring
charges
|
|
|
2,160
|
|
|
146
|
|
|
5,988
|
|
|
3,582
|
Impairment
charges
|
|
|
615
|
|
|
2,885
|
|
|
3,770
|
|
|
7,835
|
Total operating
expenses
|
|
|
120,170
|
|
|
83,689
|
|
|
388,707
|
|
|
270,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
6,242
|
|
|
2,911
|
|
|
13,649
|
|
|
5,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(6,806)
|
|
|
(2,700)
|
|
|
(19,338)
|
|
|
(10,956)
|
Other income
(expense), net
|
|
|
319
|
|
|
(238)
|
|
|
2,220
|
|
|
(235)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before
income taxes
|
|
|
(245)
|
|
|
(27)
|
|
|
(3,469)
|
|
|
(5,468)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense
|
|
|
(2,030)
|
|
|
1,834
|
|
|
(1,168)
|
|
|
(2,190)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
1,785
|
|
$
|
(1,861)
|
|
$
|
(2,301)
|
|
$
|
(3,278)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
$
|
0.05
|
|
$
|
(0.06)
|
|
$
|
(0.07)
|
|
$
|
(0.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
$
|
0.05
|
|
$
|
(0.06)
|
|
$
|
(0.07)
|
|
$
|
(0.10)
|
|
Table 1:
Reconciliation of three months and year ended December 31, 2015 and
2014 reported contract gross profit (loss) and contract gross
margin to adjusted contract gross profit (loss) and adjusted
contract gross margin.
|
|
Non-GAAP
Measures
|
|
Three Months
Ended
|
|
Year
Ended
|
(Dollars in
thousands)
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Consolidated Contract
Revenue, as reported
|
|
$
123,032
|
|
$ 80,712
|
|
$ 384,738
|
|
$ 250,705
|
Consolidated Cost of
Contract Revenue, as reported
|
|
$
92,516
|
|
$ 66,131
|
|
$ 295,527
|
|
$ 209,193
|
Consolidated Contract
Gross Profit, as reported
|
|
30,516
|
|
14,581
|
|
89,211
|
|
41,512
|
|
|
|
|
|
|
|
|
|
add: Share-based
compensation expense
|
|
213
|
|
256
|
|
936
|
|
728
|
add: Purchase
accounting inventory adjustments
|
|
5,026
|
|
-
|
|
8,107
|
|
-
|
add: Purchase
accounting depreciation and amortization
|
|
615
|
|
331
|
|
2,661
|
|
694
|
add: Business
interruption charges
|
|
-
|
|
3,328
|
|
-
|
|
6,445
|
add: Business
acquisition costs
|
|
289
|
|
-
|
|
289
|
|
34
|
Consolidated Contract
Gross Profit, as adjusted
|
|
$
36,659
|
|
$ 18,496
|
|
$ 101,204
|
|
$ 49,413
|
Consolidated Contract
Gross Margin, as reported
|
|
24.8%
|
|
18.1%
|
|
23.2%
|
|
16.6%
|
Consolidated Contract
Gross Margin, as adjusted
|
|
29.8%
|
|
22.9%
|
|
26.3%
|
|
19.7%
|
|
|
|
|
|
|
|
|
|
DDS Segment Contract
Revenue, as reported
|
|
$
24,209
|
|
$ 19,389
|
|
$ 89,973
|
|
$ 74,612
|
DDS Segment Cost of
Contract Revenue, as reported
|
|
17,572
|
|
15,010
|
|
66,508
|
|
60,101
|
DDS Segment Contract
Gross Profit, as reported
|
|
6,637
|
|
4,379
|
|
23,465
|
|
14,511
|
|
|
|
|
|
|
|
|
|
add: Share-based
compensation expense
|
|
146
|
|
158
|
|
595
|
|
532
|
add: Purchase
accounting depreciation and amortization
|
|
310
|
|
-
|
|
1,023
|
|
-
|
DDS Segment Contract
Gross Profit, as adjusted
|
|
$
7,093
|
|
$ 4,537
|
|
$ 25,083
|
|
$ 15,043
|
DDS Segment Contract
Gross Margin, as reported
|
|
27.4%
|
|
22.6%
|
|
26.1%
|
|
19.4%
|
DDS Segment Contract
Gross Margin, as adjusted
|
|
29.3%
|
|
23.4%
|
|
27.9%
|
|
20.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
API Segment Contract
Revenue, as reported
|
|
$
70,867
|
|
$ 46,556
|
|
$ 204,868
|
|
$ 146,474
|
API Segment Cost of
Contract Revenue, as reported
|
|
54,243
|
|
34,672
|
|
154,670
|
|
114,171
|
API Segment Contract
Gross Profit, as reported
|
|
16,624
|
|
11,884
|
|
50,198
|
|
32,303
|
|
|
|
|
|
|
|
|
|
add: Share-based
compensation expense
|
|
41
|
|
36
|
|
230
|
|
112
|
add: Purchase
accounting inventory adjustments
|
|
5,026
|
|
-
|
|
8,107
|
|
-
|
add: Purchase
accounting depreciation and amortization
|
|
48
|
|
216
|
|
665
|
|
406
|
API Segment Contract
Gross Profit, as adjusted
|
|
$
21,739
|
|
$ 12,136
|
|
$ 59,200
|
|
$ 32,821
|
API Segment Contract
Gross Margin, as reported
|
|
23.5%
|
|
25.5%
|
|
24.5%
|
|
22.1%
|
API Segment Contract
Gross Margin, as adjusted
|
|
30.7%
|
|
26.1%
|
|
28.9%
|
|
22.4%
|
|
|
|
|
|
|
|
|
|
Drug Product Segment
Contract Revenue, as reported
|
|
$
27,956
|
|
$ 14,767
|
|
$ 89,897
|
|
$ 29,619
|
Drug Product Segment
Cost of Contract Revenue, as reported
|
|
20,701
|
|
16,449
|
|
74,349
|
|
34,921
|
Drug Product Segment
Contract Gross Profit (Loss), as reported
|
|
7,255
|
|
(1,682)
|
|
15,548
|
|
(5,302)
|
|
|
|
|
|
|
|
|
|
add: Share-based
compensation expense
|
|
26
|
|
62
|
|
111
|
|
84
|
add: Purchase
accounting depreciation and amortization
|
|
257
|
|
115
|
|
973
|
|
288
|
add: Business
interruption charges
|
|
-
|
|
3,328
|
|
-
|
|
6,445
|
add: Business
acquisition costs
|
|
289
|
|
-
|
|
289
|
|
34
|
Drug Product Segment
Contract Gross Profit, as adjusted
|
|
$
7,827
|
|
$ 1,823
|
|
$ 16,921
|
|
$ 1,549
|
Drug Product Segment
Contract Margin, as reported
|
|
26.0%
|
|
-11.4%
|
|
17.3%
|
|
-17.9%
|
Drug Product Segment
Contract Margin, as adjusted
|
|
28.0%
|
|
12.3%
|
|
18.8%
|
|
5.2%
|
|
|
|
|
|
|
|
|
|
Table 2:
Reconciliation of three months and year ended December 31, 2015 and
2014 reported income from operations, net income (loss) and
earnings (loss) per diluted share to adjusted income from
operations, adjusted net income and adjusted earnings per
share:
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Income from
operations, as reported
|
|
$
6,242
|
|
$
2,911
|
|
$
13,649
|
|
$
5,723
|
Impairment
charges
|
|
615
|
|
2,885
|
|
3,770
|
|
7,835
|
Restructuring
charges
|
|
2,160
|
|
146
|
|
5,988
|
|
3,582
|
Business interruption
charges
|
|
-
|
|
3,511
|
|
-
|
|
6,628
|
Executive transition
costs
|
|
7
|
|
-
|
|
1,412
|
|
626
|
Business acquisition
costs
|
|
2,362
|
|
994
|
|
5,664
|
|
3,632
|
Purchase accounting
inventory adjustments
|
|
5,026
|
|
-
|
|
8,107
|
|
|
Purchase accounting
depreciation and amortization
|
|
2,337
|
|
913
|
|
7,094
|
|
1,941
|
Postretirement
benefit plan settlement gain
|
|
-
|
|
-
|
|
-
|
|
(1,285)
|
ERP Implementation
costs
|
|
660
|
|
144
|
|
1,425
|
|
144
|
Non-recurring
professional fees
|
|
66
|
|
165
|
|
892
|
|
165
|
Share-based
compensation expense
|
|
1,555
|
|
1,147
|
|
6,371
|
|
4,122
|
Income from
operations, as adjusted
|
|
$
21,030
|
|
$
12,816
|
|
$
54,372
|
|
$
33,113
|
|
|
|
|
|
|
|
|
|
Net income (loss), as
reported
|
|
$
1,785
|
|
$
(1,861)
|
|
$
(2,301)
|
|
$
(3,278)
|
Impairment
charges
|
|
615
|
|
2,885
|
|
3,770
|
|
7,835
|
Restructuring
charges
|
|
2,160
|
|
146
|
|
5,988
|
|
3,582
|
Business interruption
charges
|
|
-
|
|
3,511
|
|
-
|
|
6,628
|
Executive transition
costs
|
|
7
|
|
-
|
|
1,412
|
|
626
|
Business acquisition
costs
|
|
2,362
|
|
994
|
|
5,664
|
|
3,632
|
Purchase accounting
inventory adjustments
|
|
5,026
|
|
-
|
|
8,107
|
|
|
Purchase accounting
depreciation and amortization
|
|
2,337
|
|
913
|
|
7,094
|
|
1,941
|
Postretirement
benefit plan settlement gain
|
|
-
|
|
-
|
|
-
|
|
(1,285)
|
ERP Implementation
costs
|
|
660
|
|
144
|
|
1,425
|
|
144
|
Non-recurring
professional fees
|
|
66
|
|
165
|
|
892
|
|
165
|
Non-cash debt
interest and amortization charges
|
|
2,712
|
|
1,723
|
|
8,932
|
|
6,742
|
Share-based
compensation expense
|
|
1,555
|
|
1,147
|
|
6,371
|
|
4,122
|
Insurance recovery -
business interruption
|
|
-
|
|
-
|
|
(600)
|
|
-
|
Write-off of deferred
financing costs
|
|
-
|
|
-
|
|
-
|
|
439
|
Cumulative
translation adjustment loss - Hungary
|
|
-
|
|
734
|
|
-
|
|
734
|
Tax effect for above
items
|
|
(5,180)
|
|
(3,904)
|
|
(13,785)
|
|
(10,973)
|
Non-recurring income
tax adjustments
|
|
-
|
|
2,739
|
|
-
|
|
24
|
Net income (loss), as
adjusted
|
|
$
14,105
|
|
$
9,336
|
|
$
32,969
|
|
$
21,078
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share, as reported
|
|
$
0.05
|
|
$
(0.06)
|
|
$
(0.07)
|
|
$
(0.10)
|
Impairment
charges
|
|
0.01
|
|
0.06
|
|
0.10
|
|
0.18
|
Restructuring
charges
|
|
0.05
|
|
-
|
|
0.15
|
|
0.09
|
Business interruption
charges
|
|
-
|
|
0.07
|
|
-
|
|
0.13
|
Executive transition
costs
|
|
-
|
|
-
|
|
0.03
|
|
0.01
|
Business acquisition
costs
|
|
0.05
|
|
0.02
|
|
0.11
|
|
0.08
|
Purchase accounting
inventory adjustments
|
|
0.10
|
|
-
|
|
0.17
|
|
-
|
Purchase accounting
depreciation and amortization
|
|
0.05
|
|
0.02
|
|
0.14
|
|
0.04
|
Postretirement
benefit plan settlement gain
|
|
-
|
|
-
|
|
-
|
|
(0.03)
|
ERP Implementation
costs
|
|
0.01
|
|
-
|
|
0.03
|
|
-
|
Non-recurring
professional fees
|
|
-
|
|
-
|
|
0.02
|
|
-
|
Non-cash debt
interest and amortization charges
|
|
0.05
|
|
0.03
|
|
0.17
|
|
0.13
|
Share-based
compensation expense
|
|
0.03
|
|
0.03
|
|
0.12
|
|
0.09
|
Insurance recovery -
business interruption
|
|
-
|
|
-
|
|
(0.01)
|
|
-
|
Write-off of deferred
financing costs
|
|
-
|
|
-
|
|
-
|
|
0.01
|
Cumulative
translation adjustment loss - Hungary
|
|
-
|
|
0.02
|
|
-
|
|
0.02
|
Non-recurring income
tax adjustments
|
|
-
|
|
0.09
|
|
-
|
|
-
|
Earnings (loss) per
diluted share, as adjusted
|
|
$
0.40
|
|
$
0.28
|
|
$
0.96
|
|
$
0.65
|
|
Table 3:
Reconciliation of three months and year ended December 31, 2015 and
2014 reported income (loss) from operations to adjusted
EBITDA:
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net loss, as
reported
|
|
$
1,785
|
|
$
(1,861)
|
|
$
(2,301)
|
|
$
(3,278)
|
Income tax (benefit)
expense
|
|
(2,030)
|
|
1,834
|
|
(1,168)
|
|
(2,190)
|
Interest expense,
net
|
|
6,806
|
|
2,700
|
|
19,338
|
|
10,956
|
Depreciation and
amortization
|
|
8,421
|
|
5,287
|
|
27,091
|
|
18,353
|
EBITDA
|
|
14,982
|
|
7,960
|
|
42,960
|
|
23,841
|
Impairment
charges
|
|
615
|
|
2,885
|
|
3,770
|
|
7,835
|
Restructuring
charges
|
|
1,382
|
|
146
|
|
5,210
|
|
3,582
|
Business interruption
charges
|
|
-
|
|
3,511
|
|
-
|
|
6,628
|
Executive transition
costs
|
|
7
|
|
-
|
|
1,412
|
|
626
|
Business acquisition
costs
|
|
2,362
|
|
994
|
|
5,664
|
|
3,632
|
Purchase accounting
inventory adjustments
|
|
5,026
|
|
-
|
|
8,107
|
|
-
|
Postretirement
benefit plan settlement gain
|
|
-
|
|
-
|
|
-
|
|
(1,285)
|
ERP Implementation
costs
|
|
660
|
|
144
|
|
1,425
|
|
144
|
Non-recurring
professional fees
|
|
66
|
|
165
|
|
892
|
|
165
|
Share-based
compensation expense
|
|
1,555
|
|
1,147
|
|
6,371
|
|
4,122
|
Cumulative
translation adjustment loss - Hungary
|
|
|
|
734
|
|
-
|
|
734
|
Insurance recovery -
business interruption
|
|
-
|
|
-
|
|
(600)
|
|
-
|
Adjusted
EBITDA
|
|
$
26,655
|
|
$
17,686
|
|
$
75,211
|
|
$
50,024
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/amri-announces-fourth-quarter-and-full-year-2015-results-and-provides-2016-outlook-300221189.html
SOURCE AMRI