BAUDETTE, Minn., March 2, 2017 /PRNewswire/ --
For the full year ended December 31,
2016:
- Record net revenues of $128.6
million, an increase of 69% versus the prior year
- GAAP net income of $3.9
million, including $6.7
million non-cash impairment charge for a non-core
asset
- Diluted GAAP earnings per share of $0.34, including impact of non-cash impairment
charge of $0.36, net of tax
- Adjusted non-GAAP EBITDA of $61.1
million
- Adjusted non-GAAP net income per diluted share of
$3.78 (previous methodology)
For the fourth quarter 2016:
- Net revenues of $38.2 million,
an increase of 112% as compared to the same period in 2015
- GAAP net loss of $1.1 million,
including $6.7 million non-cash
impairment charge for a non-core asset
- Diluted GAAP loss per share of $0.09, including impact of non-cash impairment
charge of $0.36, net of tax
- Adjusted non-GAAP EBITDA of $17.9
million
- Adjusted non-GAAP net income per diluted share of
$0.84 (previous methodology)
Guidance for 2017:
- Net revenues of $181 million to $190
million
- Adjusted non-GAAP EBITDA of $73.1
million to $77.2 million
- New adjusted non-GAAP diluted earnings per share methodology
yielding $3.58 to $3.94 per share, as
compared to $2.96 per share for 2016
as calculated under the new methodology
ANI Pharmaceuticals, Inc. ("ANI") (NASDAQ: ANIP) today
reported its financial results for the three and twelve months
ended December 31, 2016, and provided
its financial guidance for the 2017 year. The Company will host its
earnings conference call this morning, March
2, 2017, at 10:30 AM ET.
Investors and other interested parties can join the call by dialing
(866) 776-8875. The conference ID is 51451144.
Financial Summary
(in thousands,
except per share data)
|
|
Q4
2016
|
|
Q4
2015
|
|
2016
|
|
2015
|
Net
revenues
|
|
$ 38,205
|
|
$18,035
|
|
$128,622
|
|
$
76,322
|
Net
(loss)/income
|
|
$(1,080)
|
|
$
2,876
|
|
$
3,934
|
|
$
15,375
|
GAAP
(loss)/earnings per diluted share
|
|
$
(0.09)
|
|
$
0.25
|
|
$
0.34
|
|
$
1.32
|
Adjusted non-GAAP
EBITDA(a)
|
|
$ 17,933
|
|
$
9,518
|
|
$
61,112
|
|
$
43,456
|
Adjusted non-GAAP
net income per diluted share(b)
|
|
$
0.84
|
|
$
0.52
|
|
$
3.78
|
|
$
2.72
|
|
|
(a)
|
See Table 2 for US
GAAP reconciliation.
|
(b)
|
Previous methodology;
see Table 4 for US GAAP reconciliation.
|
Arthur S. Przybyl, President and
CEO, stated,
"ANI had a record year in 2016.
Our annual revenues increased 69% to $128.6 million and our annual
adjusted non-GAAP EBITDA increased 41% to $61.1 million. In the fourth quarter, revenue
increased 112% to $38.2
million and adjusted non-GAAP EBITDA increased 88%
to $17.9 million. We continue to
regard revenue and adjusted non-GAAP EBITDA as important
valuation metrics for ANI. In fact, our reported revenues,
adjusted non-GAAP EBITDA, and operating cash flows all
established new records for ANI in 2016. ANI generated $27.5 million in operating cash
flows and we invested $4.6
million in capital expenditures in 2016.
"Our revenue and
adjusted non-GAAP EBITDA growth in 2016 was fueled by several
important factors: we launched several products, acquired the NDA
for Inderal® LA, and acquired licenses to distribute HC rectal
cream and the authorized generic of Lipofen®. We exited 2016 with
25 commercial products, up from 16 at the beginning of the year. To
support this growth, and our future growth plans, we hired 45 full
time employees in 2016, increasing our overall headcount by 32%
primarily to support our manufacturing facilities in Minnesota. All but one of our finished
dosage form products are manufactured in the United States. Importantly, we acquired
the NDAs for Corticotropin and Corticotropin-Zinc in early 2016 and
have advanced the re-commercialization project by hiring our
project team, establishing our analytical labs, sourcing porcine
pituitaries, and selecting our raw material manufacturer. As a
result, work has already begun on the manufacturing of development
lots of raw material and advancing chemistry and analytical
development, as we reference in our Corticotropin
Re-commercialization Update.
"Forecasting 2017, we are
providing annual guidance that indicates continued revenue and
adjusted non-GAAP EBITDA growth. The midpoint of our
2017 guidance assumes revenue growth of 44% to $185.5 million and adjusted non-GAAP EBITDA
growth of 23% to $75.1 million. We
have a robust pipeline of product opportunities and anticipate
launching several new products in 2017. We remain
strategically committed to advancing our growth through
selective acquisitions, and to this end, we recently acquired the
Inderal® XL and InnoPran XL® products. We are forecasting
approximately $40 to $45 million in
operating cash flow and expect to invest upwards of $11 million in capital expenditures in 2017. Our
investment in R&D is increasing primarily due to Corticotropin
project activities. The balance sheet remains strong; we are
levered approximately two times and have access to additional
liquidity for potential future transactions.
"Management's 2017 commitment
to our shareholders remains the same as 2016: to continue to grow
revenues and adjusted non-GAAP EBITDA and to advance
Corticotropin to an eventual sNDA filing."
2017 Financial Guidance
ANI's estimates are based on projected results for the twelve
months ending December 31, 2017 and
reflect management's current beliefs about product pricing, market
size, market share, inventory levels, cost of sales, operating
costs, taxes, and the anticipated timing of future product launches
and events. Beginning in 2017, management is changing the method
under which it calculates adjusted non-GAAP net income per diluted
share to reflect the estimated tax impact of adjustments utilizing
an estimated federal and state statutory rate, which is currently
projected to be approximately 37%. Management believes that the new
methodology will more appropriately reflect adjusted non-GAAP net
income per diluted share as a performance measure. In addition, we
will refer to this measure as adjusted non-GAAP diluted earnings
per share on a go-forward basis. Table 3 provides a reconciliation
of 2016 adjusted non-GAAP diluted earnings per share, calculated in
accordance with the new methodology, to the most directly
comparable US GAAP measure.
The following table shows 2017 guidance as compared with 2016
actual results.
(in millions,
except per share data and percentages)
|
2016
|
|
2017
Guidance
|
|
%
Increase
|
Net
revenues
|
$128.6
|
|
$181 to
$190
|
|
41% to 48%
|
Cost of sales as a
percent of revenues (excluding impact of inventory
step-up)
|
33%
|
|
42% to 44%
|
|
n/a
|
Sales, general, and
administrative
|
$
27.8
|
|
$30.2 to
$30.9
|
|
8% to 11%
|
Research and
development
|
$
2.9
|
|
$6.5 to
$6.8
|
|
125% to
134%
|
Adjusted non-GAAP
EBITDA(c)
|
$
61.1
|
|
$73.1 to
$77.2
|
|
20% to 26%
|
Adjusted non-GAAP
diluted earnings per share(d)
|
$
2.96
|
|
$3.58 to
$3.94
|
|
21% to 33%
|
|
|
(c)
|
See Table 2 for US
GAAP reconciliation.
|
(d)
|
New methodology; see
Table 3 for US GAAP reconciliation.
|
Corticotropin Re-commercialization Update
Corticotropin API Manufacturing Update
In the 4th quarter of 2016, ANI's contract active pharmaceutical
ingredient ("API") manufacturer has initiated the manufacturing of
R&D development batches of Corticotropin API. Work has
begun to re-establish each of the individual process steps
necessary for the API manufacturing process. Immediately
following the completion of these R&D development batches, work
will then begin to scale up the API manufacturing process towards
commercial scale manufacturing. ANI has initiated a search to
identify a finished dosage form contract manufacturer for the
Corticotropin drug product. Once identified, ANI will begin
work to initiate Corticotropin finished dosage form product
manufacturing.
Corticotropin Analytics Update
The ANI Corticotropin team has continued to make substantial
progress towards developing approximately 20 different analytical
methods. Some of these methods are being re-established from
previously existing methods that were part of the monograph from
the original API manufacturer, Diosynth. ANI recognizes that
analytical technologies have improved over time, so included in the
method development is a range of new, state of the art analytical
methods that include molecular biological methods, such as SDS-PAGE
electrophoresis, Western Blot, and ELISA, and instrumental methods,
such as HPLC/UV and LC/MS/MS. Several of these methods will be
used to prepare a comprehensive characterization package for ANI's
newly manufactured Corticotropin API and other methods will be used
to test and release new batches of API as they are
manufactured.
Corticotropin Project Team Update
ANI has continued to advance its Corticotropin project team,
which now includes analytical expertise, API and drug product
manufacturing expertise, and extensive experience with the
development and manufacturing of animal-derived pharmaceutical
products. The Corticotropin project team also includes
resources with previous hands-on experience in manufacturing
Corticotropin API at Diosynth, where it was previously manufactured
in the Netherlands. ANI has recently hired Karen Quinn, Ph.D. to lead its Corticotropin
Regulatory Affairs group, whose primary responsibility will be to
lead ANI's regulatory strategy for Corticotropin with the FDA and
subsequently file an sNDA to re-commercialize Corticotropin in the
U.S. market.
Fourth Quarter Results
Net
Revenues
(in
thousands)
|
|
Three Months
Ended
December 31,
|
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
%
Change
|
Generic
pharmaceutical products
|
|
$
|
29,296
|
|
$
|
14,047
|
|
$
|
15,249
|
|
109%
|
Branded
pharmaceutical products
|
|
|
6,524
|
|
|
2,341
|
|
|
4,183
|
|
179%
|
Contract
manufacturing
|
|
|
1,560
|
|
|
1,307
|
|
|
253
|
|
19%
|
Contract services and
other income
|
|
|
825
|
|
|
340
|
|
|
485
|
|
143%
|
Total net
revenues
|
|
$
|
38,205
|
|
$
|
18,035
|
|
$
|
20,170
|
|
112%
|
For the three months ended December 31,
2016, ANI reported net revenues of $38.2 million, an increase of 112% from
$18.0 million in the prior year
period, due to the following factors:
- Revenues from sales of generic pharmaceuticals increased 109%,
to $29.3 million from $14.0 million in the prior period, primarily due
to sales of the ten generic products launched during the 2016
year.
- Revenues from sales of branded pharmaceuticals increased 179%,
to $6.5 million from $2.3 million in the prior period, primarily due
to sales of Inderal® LA, which was launched in Q2 2016.
- Contract manufacturing revenue increased by 19% to $1.6 million from $1.3
million in the prior year period, primarily as a result of
the timing and volume of customer orders.
- Contract services and other income increased by 143%, to
$0.8 million from
$0.3 million, primarily due to a
$0.6 million royalty payment related
to a license for patent rights.
Operating expenses increased to $36.9
million for the three months ended December 31, 2016, from $11.8 million in the prior year period. The
increase was primarily due to a $13.4
million increase in cost of sales as compared with the prior
period, as a result of a higher mix of sales of products with
profit-sharing arrangements, increased volume, and $2.8 million of cost of sales related to the
inventory step-up on Inderal® LA and Propranolol ER inventory. In
the fourth quarter of 2016, an impairment charge of $6.7 million was recognized in relation to ANI's
testosterone gel NDA intangible asset, which was initially
recognized as part of the accounting for the merger with BioSante.
In addition, depreciation and amortization increased by
$3.7 million as compared with the
prior period, driven by amortization of a higher intangible asset
base.
Excluding the $2.8 million of
costs related to the Inderal® LA inventory step-up, cost of sales
increased as a percentage of net revenues to 37% from 20%,
primarily as a result of increased sales of products with
profit-sharing arrangements.
Net loss was $1.1 million for the
three months ended December 31, 2016,
as compared to net income of $2.9
million in the prior year period. The effective tax rate for
the three months ended December 31,
2016 was 33%.
Diluted loss per share for the three months ended December 31, 2016 was $0.09, based on 11,516 thousand diluted shares
outstanding, as compared to diluted earnings per share of
$0.25 in the prior year period.
Adjusted non-GAAP net income per diluted share was $0.84 (previous methodology), as compared to
adjusted non-GAAP net income per diluted share of $0.52 in the prior year period. For a
reconciliation of adjusted non-GAAP net income per diluted share to
the most directly comparable GAAP financial measure, please see
Table 4.
Results for the Year Ended December
31, 2016
Net
Revenues
(in
thousands)
|
|
Year Ended
December 31,
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
%
Change
|
Generic
pharmaceutical products
|
|
$
|
95,201
|
|
$
|
55,169
|
|
$
|
40,032
|
|
73%
|
Branded
pharmaceutical products
|
|
|
26,443
|
|
|
11,003
|
|
|
15,440
|
|
140%
|
Contract
manufacturing
|
|
|
5,537
|
|
|
4,883
|
|
|
654
|
|
13%
|
Contract services and
other income
|
|
|
1,441
|
|
|
5,267
|
|
|
(3,826)
|
|
(73)%
|
Total net
revenues
|
|
$
|
128,622
|
|
$
|
76,322
|
|
$
|
52,300
|
|
69%
|
For the year ended December 31,
2016, ANI reported net revenues of $128.6 million, an increase of 69%
from $76.3 million in the prior year
period, due to the following factors:
- Revenues from sales of generic pharmaceuticals increased 73%,
to $95.2 million from $55.2 million in the prior period, primarily due
to sales of the ten generic products launched during 2016.
- Revenues from sales of branded pharmaceuticals increased 140%,
to $26.4 million from $11.0 million in the prior period, primarily due
to sales of Inderal® LA, which was launched in Q2 2016.
- Contract manufacturing revenue increased by 13% to $5.5 million from $4.9
million in the prior year period, primarily as a result of
the timing and volume of customer orders.
- Contract services and other income decreased by 73%, to
$1.4 million from $5.3 million, primarily because sales of
Vancomycin in the ANI label have replaced the royalties previously
received on the product. This decrease was partially offset by a
$0.6 million royalty payment related
to a license for patent rights.
Operating expenses increased to $108.5
million for the year ended December
31, 2016, from $43.6 million
in the prior year period. The increase was primarily due to a
$36.1 million increase in cost of
sales as compared with the prior period, as a result of a higher
mix of sales of products with profit-sharing arrangements,
increased volumes, and $5.9 million
of cost of sales related to the inventory step-up on Inderal® LA
and Propranolol ER inventory. In the fourth quarter of 2016, an
impairment charge of $6.7 million was
recognized in relation to ANI's testosterone gel NDA intangible
asset, which was initially recognized as part of the accounting for
the merger with BioSante. In addition, depreciation and
amortization increased by $15.4
million as compared with the prior period, driven by
amortization of a higher intangible asset base. Selling, general,
and administrative expenses for the period includes $1.3 million of principally non-cash expense,
representing the entire cost of ANI's second quarter CFO
transition.
Excluding the $5.9 million of
costs related to the Inderal® LA inventory step-up, cost of sales
increased as a percentage of net revenues to 33% from 17%,
primarily as a result of increased sales of products with
profit-sharing arrangements.
Net income was $3.9 million for the year ended
December 31, 2016, as compared to net
income of $15.4 million in the prior
year period. The effective tax rate for the year ended December 31, 2016 was 55%.
Diluted earnings per share for the year ended December 31, 2016 was $0.34, based on 11,573 thousand diluted shares
outstanding, as compared to diluted earnings per share of
$1.32 in the prior year period.
Adjusted non-GAAP net income per diluted share was $3.78 (previous methodology), as compared to
adjusted non-GAAP net income per diluted share of $2.72 in the prior year period. For a
reconciliation of adjusted non-GAAP net income per diluted share to
the most directly comparable GAAP financial measure, please see
Table 4.
Selected Balance Sheet Data
(in
thousands)
|
|
December 31,
2016
|
December 31,
2015
|
Cash
|
$
27,365
|
$
154,684
|
Accounts receivable,
net
|
$
45,895
|
$
21,932
|
Inventory,
net
|
$
26,183
|
$
13,387
|
Current
assets
|
$
103,007
|
$
192,583
|
Current
liabilities
|
$
31,948
|
$
11,756
|
ANI generated $27.5 million of
positive cash flows from operations in the year ended December 31, 2016. In January 2016, ANI purchased from Merck the NDAs
for Corticotropin and Corticotropin-Zinc for $75.0 million and a percentage of future net
sales on products sold under the NDAs. Also in January 2016, ANI purchased from H2-Pharma, LLC
the exclusive U.S. distribution rights for two products, as well as
an early stage development project for a generic injectable drug
product, for $8.8 million in cash and
the assumption of an accrued royalty of $1.2
million. In April 2016, ANI
purchased from Cranford Pharmaceuticals, LLC the rights, title, and
interest in the NDA for Inderal® LA, as well as certain
documentation, trademark rights, and finished goods for
$60.0 million in cash and milestone
payments based on future gross profits from sales of products under
the NDA. ANI also transferred $5.0
million to an escrow account to secure the future milestone
payments. As a result of the net effect of these sources and uses
of cash, ANI had $27.4 million of
cash at December 31, 2016.
ANI Product Development Pipeline
ANI's pipeline consists of 78 products, addressing a total
annual market size of $3.7 billion,
based on data from IMS Health. Of these 78 products, 54 were
acquired and of these acquired products ANI expects that 47 can be
commercialized based on either CBE-30s or prior approval
supplements filed with the FDA.
Non-GAAP Financial Measures
The Company's fiscal 2017 guidance for adjusted non-GAAP EBITDA
and adjusted non-GAAP diluted earnings per share is not reconciled
to the most comparable GAAP measure. This is due to the inherent
difficulty of forecasting the timing or amount of items that would
be included in a reconciliation to the most directly comparable
forward-looking GAAP financial measures. Because a reconciliation
is not available without unreasonable effort, it is not included in
this release.
Adjusted non-GAAP EBITDA
ANI's management considers adjusted non-GAAP EBITDA to be an
important financial indicator of ANI's operating performance,
providing investors and analysts with a useful measure of operating
results unaffected by non-cash stock-based compensation and
differences in capital structures, tax structures, capital
investment cycles, ages of related assets, and compensation
structures among otherwise comparable companies. Management uses
adjusted non-GAAP EBITDA when analyzing Company performance.
Adjusted non-GAAP EBITDA is defined as net income/(loss),
excluding tax expense, interest expense, depreciation,
amortization, the excess of fair value over cost of acquired
inventory, stock-based compensation expense, other income/expense,
non-cash impairment charges, and other significant non-cash or
unusual charges as determined and disclosed by management. Adjusted
non-GAAP EBITDA should be considered in addition to, but not in
lieu of, net income or loss reported under GAAP. A reconciliation
of adjusted non-GAAP EBITDA to the most directly comparable GAAP
financial measure is provided in Table 2.
Adjusted non-GAAP Net Income (new methodology, 2017
onward)
ANI's management considers adjusted non-GAAP net income to be an
important financial indicator of ANI's operating performance,
providing investors and analysts with a useful measure of operating
results unaffected by purchase accounting adjustments, non-cash
stock-based compensation, non-cash interest expense, depreciation
and amortization, and non-cash impairment charges. Management uses
adjusted non-GAAP net income when analyzing Company
performance.
Adjusted non-GAAP net income is defined as net income/(loss),
plus the excess of fair value over cost of acquired inventory,
stock-based compensation expense, non-cash interest expense,
depreciation and amortization expense, and non-cash impairment
charges, less the tax impact of these adjustments calculated using
an estimated statutory tax rate. Management will continually
analyze this metric and may include additional adjustments in the
calculation in order to provide further understanding of ANI's
results. Adjusted non-GAAP net income should be considered in
addition to, but not in lieu of, net income reported under GAAP. A
reconciliation of adjusted non-GAAP net income to the most directly
comparable GAAP financial measure is provided in Table 3.
Adjusted non-GAAP Diluted Earnings per Share (new
methodology, 2017 onward)
ANI's management considers adjusted non-GAAP diluted earnings
per share to be an important financial indicator of ANI's operating
performance, providing investors and analysts with a useful measure
of operating results unaffected by purchase accounting adjustments,
non-cash stock-based compensation, non-cash interest expense,
depreciation and amortization, and non-cash impairment charges.
Management uses adjusted non-GAAP diluted earnings per share when
analyzing Company performance.
Adjusted non-GAAP diluted earnings per share is defined as
adjusted non-GAAP net income, as defined above, divided by the
diluted weighted average shares outstanding during the period.
Management will continually analyze this metric and may include
additional adjustments in the calculation in order to provide
further understanding of ANI's results. Adjusted non-GAAP diluted
earnings per share should be considered in addition to, but not in
lieu of, diluted earnings or loss per share reported under GAAP. A
reconciliation of adjusted non-GAAP diluted earnings per share to
the most directly comparable GAAP financial measure is provided in
Table 3.
Adjusted non-GAAP Net Income (2016 and prior
methodology)
ANI's management considers adjusted non-GAAP net income to be an
important financial indicator of ANI's operating performance,
providing investors and analysts with a useful measure of operating
results unaffected by purchase accounting adjustments, non-cash
stock-based compensation, non-cash interest expense, depreciation
and amortization, non-cash impairment charges, and deferred tax
expenses and benefits. Management uses adjusted non-GAAP net income
when analyzing Company performance.
Adjusted non-GAAP net income is defined as net income/(loss),
plus tax expense, the excess of fair value over cost of acquired
inventory, stock-based compensation expense, non-cash interest
expense, depreciation and amortization expense, and non-cash
impairment charges, less the current portion of the tax provision.
Adjusted non-GAAP net income should be considered in addition to,
but not in lieu of, net income reported under GAAP. A
reconciliation of adjusted non-GAAP net income to the most directly
comparable GAAP financial measure is provided in Table 4.
Adjusted non-GAAP Net Income per Diluted Share (2016 and
prior methodology)
ANI's management considers adjusted non-GAAP net income per
diluted share to be an important financial indicator of ANI's
operating performance, providing investors and analysts with a
useful measure of operating results unaffected by non-cash
stock-based compensation, non-cash interest expense, depreciation
and amortization, non-cash impairment charges, and deferred tax
expenses and benefits. Management uses adjusted non-GAAP net income
per diluted share when analyzing Company performance.
Adjusted non-GAAP net income per diluted share is defined as
adjusted non-GAAP net income, as defined above, divided by the
diluted weighted average shares outstanding during the period.
Adjusted non-GAAP net income per diluted share should be considered
in addition to, but not in lieu of, earnings or loss per share
reported under GAAP. A reconciliation of adjusted non-GAAP net
income per diluted share to the most directly comparable GAAP
financial measure is provided in Table 4.
About ANI
ANI Pharmaceuticals, Inc. (the "Company" or "ANI") is an
integrated specialty pharmaceutical company focused on delivering
value to our customers by developing, manufacturing, and marketing
high quality branded and generic prescription pharmaceuticals. The
Company's targeted areas of product development currently include
controlled substances, oncolytics (anti-cancers), hormones and
steroids, and complex formulations involving extended release and
combination products. For more information, please visit the
Company's website www.anipharmaceuticals.com.
Forward-Looking Statements
To the extent any statements made in this release deal with
information that is not historical, these are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements include, but are not limited
to, statements about price increases, the Company's future
operations, products financial position, operating results and
prospects, the Company's pipeline or potential markets therefor,
and other statements that are not historical in nature,
particularly those that utilize terminology such as "anticipates,"
"will," "expects," "plans," "potential," "future," "believes,"
"intends," "continue," other words of similar meaning, derivations
of such words and the use of future dates.
Uncertainties and risks may cause the Company's actual results
to be materially different than those expressed in or implied by
such forward-looking statements. Uncertainties and risks include,
but are not limited to, the risk that the Company may face with
respect to importing raw materials; increased competition;
acquisitions; contract manufacturing arrangements; delays or
failure in obtaining product approvals from the U.S. Food and Drug
Administration; general business and economic conditions; market
trends; products development; regulatory and other approvals; and
marketing.
More detailed information on these and additional factors that
could affect the Company's actual results are described in the
Company's filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K and quarterly
reports on Form 10-Q, as well as its proxy statement. All
forward-looking statements in this news release speak only as of
the date of this news release and are based on the Company's
current beliefs, assumptions, and expectations. The Company
undertakes no obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
For more information about ANI, please contact:
Investor Relations
IR@anipharmaceuticals.com
ANI
Pharmaceuticals, Inc. and Subsidiaries
|
Table 1: US GAAP
Income Statement
|
(unaudited, in
thousands, except per share amounts)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Net
Revenues
|
$38,205
|
|
$18,035
|
|
$128,622
|
|
$76,322
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Cost of
sales (excl. depreciation
|
|
|
|
|
|
|
|
and
amortization)
|
16,906
|
|
3,540
|
|
48,780
|
|
12,692
|
Research
and development
|
135
|
|
661
|
|
2,906
|
|
2,874
|
Selling,
general, and administrative
|
7,369
|
|
5,455
|
|
27,829
|
|
21,156
|
Depreciation and amortization
|
5,812
|
|
2,111
|
|
22,343
|
|
6,900
|
Intangible asset impairment charge
|
6,685
|
|
-
|
|
6,685
|
|
-
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
36,907
|
|
11,767
|
|
108,543
|
|
43,622
|
|
|
|
|
|
|
|
|
Operating Income
|
1,298
|
|
6,268
|
|
20,079
|
|
32,700
|
|
|
|
|
|
|
|
|
Other Expense,
Net
|
|
|
|
|
|
|
|
Interest
expense, net
|
(2,859)
|
|
(2,768)
|
|
(11,327)
|
|
(11,008)
|
Other
(expense)/income, net
|
(43)
|
|
1
|
|
(74)
|
|
41
|
|
|
|
|
|
|
|
|
(Loss)/Income Before
Benefit/(Provision) for Income Taxes
|
(1,604)
|
|
3,501
|
|
8,678
|
|
21,733
|
|
|
|
|
|
|
|
|
Benefit/(Provision)
for Income Taxes
|
524
|
|
(625)
|
|
(4,744)
|
|
(6,358)
|
|
|
|
|
|
|
|
|
Net
(Loss)/Income
|
$ (1,080)
|
|
$
2,876
|
|
$
3,934
|
|
$15,375
|
|
|
|
|
|
|
|
|
(Loss)/Earnings
Per Share
|
|
|
|
|
|
|
|
Basic (Loss)/Earnings
Per Share
|
$
(0.09)
|
|
$
0.25
|
|
$
0.34
|
|
$
1.34
|
Diluted
(Loss)/Earnings Per Share
|
$
(0.09)
|
|
$
0.25
|
|
$
0.34
|
|
$
1.32
|
|
|
|
|
|
|
|
|
Basic
Weighted-Average Shares Outstanding
|
11,516
|
|
11,423
|
|
11,445
|
|
11,370
|
Diluted
Weighted-Average Shares Outstanding
|
11,516
|
|
11,552
|
|
11,573
|
|
11,557
|
ANI
Pharmaceuticals, Inc. and Subsidiaries
|
Table 2: Adjusted
non-GAAP EBITDA Calculation and US GAAP to Non-GAAP
Reconciliation
|
(unaudited, in
thousands)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Net
(Loss)/Income
|
$ (1,080)
|
|
$2,876
|
|
$
3,934
|
|
$15,375
|
|
|
|
|
|
|
|
|
Add back
|
|
|
|
|
|
|
|
Interest expense, net
|
2,859
|
|
2,768
|
|
11,327
|
|
11,008
|
Other
income/(expense), net
|
43
|
|
(1)
|
|
74
|
|
(41)
|
(Benefit)/Provision for income taxes
|
(524)
|
|
625
|
|
4,744
|
|
6,358
|
Depreciation and
amortization
|
5,812
|
|
2,111
|
|
22,343
|
|
6,900
|
Intangible asset impairment
charge
|
6,685
|
|
-
|
|
6,685
|
|
-
|
|
|
|
|
|
|
|
|
Add back
|
|
|
|
|
|
|
|
Stock-based compensation
|
1,380
|
|
1,139
|
|
6,067
|
|
3,856
|
Excess
of fair value over cost of acquired inventory
|
2,758
|
|
-
|
|
5,938
|
|
-
|
Adjusted
non-GAAP EBITDA
|
$17,933
|
|
$9,518
|
|
$61,112
|
|
$43,456
|
ANI
Pharmaceuticals, Inc. and Subsidiaries
|
Table 3: Adjusted
non-GAAP Net Income and Adjusted non-GAAP Diluted Earnings per
Share Reconciliation (New Methodology)
|
(unaudited, in
thousands, except per share amounts)
|
|
|
Three Months
Ended March 31,
2016
|
|
Three Months
Ended June 30,
2016
|
|
Three Months
Ended September 30,
2016
|
|
Three Months
Ended December 31,
2016
|
|
Year
Ended
December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income/(Loss)
|
$
1,346
|
|
$
1,125
|
|
$
2,543
|
|
$
(1,080)
|
|
$
3,934
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back
|
|
|
|
|
|
|
|
|
|
|
Excess of fair value over cost of acquired inventory
|
-
|
|
2,078
|
|
1,102
|
|
2,758
|
|
5,938
|
|
Non-cash interest expense
|
1,725
|
|
1,757
|
|
1,782
|
|
1,784
|
|
7,048
|
|
Stock-based compensation
|
1,105
|
|
2,217
|
|
1,365
|
|
1,380
|
|
6,067
|
|
Depreciation and amortization expense
|
4,609
|
|
5,956
|
|
5,966
|
|
5,812
|
|
22,343
|
|
Intangible asset
impairment charge
|
-
|
|
-
|
|
-
|
|
6,685
|
|
6,685
|
|
Less
|
|
|
|
|
|
|
|
|
|
|
Tax
impact of adjustments
|
(2,752)
|
|
(4,443)
|
|
(3,780)
|
|
(6,815)
|
|
(17,790)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP Net
Income
|
$
6,033
|
|
$
8,690
|
|
$
8,978
|
|
$
10,524
|
|
$
34,225
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Weighted-Average
|
|
|
|
|
|
|
|
|
|
|
Shares
Outstanding
|
11,489
|
|
11,541
|
|
11,625
|
|
11,635
|
|
11,573
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
non-GAAP
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per Share
|
$
0.53
|
|
$
0.75
|
|
$
0.77
|
|
$
0.90
|
|
$
2.96
|
|
ANI
Pharmaceuticals, Inc. and Subsidiaries
|
Table 4: Adjusted
non-GAAP Net Income and Adjusted non-GAAP Net Income per Diluted
Share Reconciliation (Previous Methodology)
|
(unaudited, in
thousands, except per share amounts)
|
|
|
Three Months
Ended December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Net
(Loss)/Income
|
$
(1,080)
|
|
$
2,876
|
|
$
3,934
|
|
$15,375
|
|
|
|
|
|
|
|
|
Add back
|
|
|
|
|
|
|
|
(Benefit)/Provision for income taxes
|
(524)
|
|
625
|
|
4,744
|
|
6,358
|
Depreciation and amortization expense
|
5,812
|
|
2,111
|
|
22,343
|
|
6,900
|
Intangible asset
impairment charge
|
6,685
|
|
-
|
|
6,685
|
|
-
|
Non-cash interest expense
|
1,784
|
|
1,722
|
|
7,048
|
|
6,831
|
Stock-based compensation
|
1,380
|
|
1,139
|
|
6,067
|
|
3,856
|
Excess of fair value over cost of acquired inventory
|
2,758
|
|
-
|
|
5,938
|
|
-
|
Less
|
|
|
|
|
|
|
|
Current
Provision
|
(6,993)
|
|
(2,431)
|
|
(13,038)
|
|
(7,875)
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP Net
Income
|
$
9,822
|
|
$
6,042
|
|
$
43,721
|
|
$31,445
|
|
|
|
|
|
|
|
|
Diluted
Weighted-Average
|
|
|
|
|
|
|
|
Shares
Outstanding
|
11,635
|
|
11,552
|
|
11,573
|
|
11,557
|
|
|
|
|
|
|
|
|
Adjusted
non-GAAP
|
|
|
|
|
|
|
|
Net Income Per Diluted Share
|
$
0.84
|
|
$
0.52
|
|
$
3.78
|
|
$
2.72
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ani-pharmaceuticals-reports-full-year-2016-results-and-fourth-quarter-results-and-provides-2017-guidance-300416422.html
SOURCE ANI Pharmaceuticals, Inc.