Sucampo Provides Update to 2015 and Confirms 2016 Financial Guidance Post Closing of R-Tech Ueno Acquisition
January 07 2016 - 7:00AM
Sucampo Pharmaceuticals, Inc. (Sucampo) (NASDAQ:SCMP), a global
biopharmaceutical company, today provided additional detail
regarding its previously announced guidance for 2015 and 2016, to
include expected non-cash purchase accounting adjustments and
expenses related to the R-Tech Ueno (RTU) acquisition that closed
in the fourth quarter of 2015.
For the full year ended December 31, 2015,
Sucampo expects to achieve adjusted net income in the range of
$30.0 million to $35.0 million, adjusted EPS of $0.65 to $0.75 per
diluted share, and adjusted EBITDA of $55.0 million to $60.0
million. Adjusted net income includes approximately $5.3
million in interest and debt issuance expense and $5.7 million in
one-time charges to be expensed in the fourth quarter of 2015,
related to the RTU acquisition. Adjusted net income excludes
the non-cash amortization of intangibles of approximately $2.9
million and the amortization of inventory step-up costs of
approximately $3.5 million, both related to the RTU
acquisition. Inventory step-up costs are amortized
straight-line over seven months, which is the expected turn of
inventory. In 2015, the company will recognize two months of
amortized inventory step-up costs, with the remaining five months
expensed in the first half of 2016. For the full year 2015,
GAAP net income including non-cash amortization is expected to be
in the range of $24 million to $29 million, or $0.51 to $0.61 per
diluted share.
Sucampo is also confirming its previous guidance
for 2016 of total revenue of $195.0 million to $205.0 million,
adjusted net income of $45.0 million to $50.0 million, adjusted EPS
of $0.97 to $1.07, and adjusted EBITDA of $100.0 million to $105.0
million. Adjusted net income guidance excludes amortization
of acquired intangibles of approximately $17.6 million and
amortization of the remaining inventory step-up costs of
approximately $8.9 million.
Sucampo will separately file an amended Current
Report on Form 8-K to provide historical RTU financial statements
and pro forma combined financial information relating to the
acquisition. Sucampo had previously expected to file this
amendment by January 5, 2016. This filing has been delayed
pending completion of required additional US-GAAS audit procedures
and Japanese GAAP-to-US-GAAP conversion. As a result, the
purchase accounting and the completion of the valuation for the
acquired intangible assets have not been finalized and are subject
to further review.
Non-GAAP Financial Measures
This press release contains various non-GAAP
measures. Adjusted EBITDA is GAAP net income before interest,
tax, depreciation, amortization, stock option expense and
intangible amortization and inventory step-up costs. Adjusted
net income and adjusted EPS exclude intangible amortization and
inventory step-up costs. Sucampo believes that these non-GAAP
measures of financial results provide useful information to
management and investors relating to its results of operations.
Sucampo's management uses these non-GAAP measures to compare
Sucampo's performance to that of prior periods for trend analyses,
and for budgeting and planning purposes. Sucampo believes that the
use of non-GAAP financial measures provides an additional tool for
investors to use in evaluating ongoing operating results and trends
and in comparing Sucampo's financial measures with other companies
in its industry, many of which present similar non-GAAP financial
measures to investors, and that it allows for greater transparency
with respect to key metrics used by management in its financial and
operational decision-making.
Management of the company does not consider
non-GAAP measures in isolation or as an alternative to financial
measures determined in accordance with GAAP. The principal
limitation of non-GAAP financial measures is that they exclude
significant expenses that are required by GAAP to be recorded in
Sucampo's financial statements. Non-GAAP measures should be
considered in addition to results and guidance prepared in
accordance with GAAP, but should not be considered a substitute
for, or superior to, GAAP results. Sucampo urges investors not to
rely on any single financial measure to evaluate Sucampo's
business. In addition, other companies, including companies
in our industry, may calculate similarly named non-GAAP measures
differently than we do, which limits their usefulness in comparing
our financial results with theirs.
About Sucampo Pharmaceuticals,
Inc.
Sucampo Pharmaceuticals, Inc. is focused on the
development and commercialization of medicines that meet major
unmet medical needs of patients worldwide. Sucampo has one marketed
product – AMITIZA – and a pipeline of product candidates in
clinical development. A global company, Sucampo is headquartered in
Rockville, Maryland, and has operations in Japan, Switzerland and
the U.K. For more information, please visit www.sucampo.com.
The Sucampo logo and the tagline, The Science of
Innovation, are registered trademarks of Sucampo AG. AMITIZA is a
registered trademark of Sucampo AG.
Follow us on Twitter (@Sucampo_Pharma). Follow
us on LinkedIn (Sucampo Pharmaceuticals).
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Sucampo Forward-Looking
Statement
This press release contains "forward-looking
statements" as that term is defined in the Private Securities
Litigation Reform Act of 1995. These statements are based on
management's current expectations and involve risks and
uncertainties, which may cause results to differ materially from
those set forth in the statements. The forward-looking statements
include statements regarding expected financial results for the
full years ending December 31, 2015 and 2016, as well as statements
regarding the acquisition of R-Tech Ueno (including the accounting
treatment thereof). The following factors, among others, could
cause actual results to differ from those set forth in the
forward-looking statements: the impact of pharmaceutical industry
regulation and health care legislation; the ability of Sucampo to
continue to develop the market for AMITIZA; the ability of Sucampo
to develop, commercialize or license existing pipeline products or
compounds or license or acquire non-prostone products or drug
candidates; Sucampo's ability to accurately predict future market
conditions; dependence on the effectiveness of Sucampo's patents
and other protections for innovative products; the risk of new and
changing regulation and health policies in the U.S. and
internationally; the effects of competitive products on Sucampo's
products; risks relating to Sucampo's financing for the R-Tech Ueno
acquisition, including the restrictive covenants undertaken by
Sucampo as part of the financing; Sucampo's ability to successfully
integrate R-Tech Ueno's operations; and the exposure to litigation
and/or regulatory actions.
No forward-looking statement can be guaranteed
and actual results may differ materially from those projected.
Sucampo undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events, or otherwise. Forward-looking statements in this
press release should be evaluated together with the many
uncertainties that affect Sucampo's business, particularly those
mentioned in the risk factors and cautionary statements in
Sucampo's most recent Form 10-K as filed with the Securities and
Exchange Commission on March 9, 2015 as well as its filings with
the Securities and Exchange Commission on Forms 8-K and 10-Q since
the filing of the Form 10-K, all of which Sucampo incorporates by
reference.
Contact:
Sucampo Pharmaceuticals, Inc.
Silvia Taylor
Senior Vice President, Investor Relations and Corporate Affairs
1-240-223-3718
staylor@sucampo.com
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