UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C.
20549
FORM
10-Q
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☒
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QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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FOR
THE QUARTERLY PERIOD ENDED MARCH 31, 2020
or
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◻
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TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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For
the transition period from
to
Commission
file number 001-36509
AMPHASTAR
PHARMACEUTICALS, INC.
(Exact
name of Registrant as specified in its charter)
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Delaware
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33-0702205
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(State
or other jurisdiction of
incorporation
or organization)
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(I.R.S.
Employer
Identification No.)
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11570
6th
Street
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Rancho
Cucamonga, CA
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91730
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(Address
of principal executive offices)
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(zip
code)
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(909)
980-9484
(Registrant’s
telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted
electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter)
during the preceding 12 months (or for such shorter period that the
registrant was required to submit such files). Yes ☒ No ☐
Indicate
by check mark whether the registrant is a large accelerated filer,
an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of
“large accelerated filer,” “accelerated filer,” “smaller reporting
company,” and “emerging growth company” in Rule 12b-2 of the
Exchange Act.
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Large accelerated filer
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☐
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Accelerated
filer
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☒
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Non-accelerated
filer
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☐
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Smaller reporting company
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☐
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Emerging
growth company
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☐
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If an emerging growth
company, indicate by check mark if the registrant has elected not
to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section
13(a) of the Exchange Act. ☐
Indicate
by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange
Act). Yes ☐ No ☒
Securities registered
pursuant to Section 12(b) of the Act:
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T
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Title of
each class
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Trading
Symbol(s)
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Name of
each exchange on which registered
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Common
Stock, par value $0.0001 per share
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AMPH
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The
NASDAQ Stock Market LLC
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The
number of shares outstanding of the registrant’s only class of
common stock as of May 6, 2020 was 46,198,304.
SPECIAL NOTE ABOUT
FORWARD-LOOKING STATEMENTS
This Quarterly Report
on Form 10-Q, or Quarterly Report, contains “forward-looking
statements” that involve substantial risks and uncertainties. In
some cases, you can identify forward-looking statements by the
following words: “may,” “might,” “will,” “could,” “would,”
“should,” “expect,” “intend,” “plan,” “anticipate,” “believe,”
“estimate,” “predict,” “project,” “potential,” “continue,”
“ongoing” or the negative of these terms or other comparable
terminology, although not all forward-looking statements contain
these identifying words. Forward-looking statements relate to
future events or future financial performance or condition and
involve known and unknown risks, uncertainties and other factors
that could cause actual results, levels of activity, performance or
achievement to differ materially from those expressed or implied by
the forward-looking statements. These forward-looking statements
include, but are not limited to, statements about:
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·
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our expectations
regarding the sales and marketing of our products;
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·
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our expectations
regarding our manufacturing and production and the integrity of our
supply chain for our products, including the risks associated with
our single source suppliers;
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·
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the impact of the
COVID-19 pandemic and related responses of business and governments
to the pandemic on our operations and personnel, and on commercial
activity and demand across our business operations and results of
operations;
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·
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interruptions to our
manufacturing and production as a result of natural catastrophic
events or other causes beyond our control such as power disruptions
or widespread disease outbreaks, such as the COVID-19
pandemic;
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·
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global, national and
local economic and market conditions, specifically with respect to
geopolitical uncertainty, and the COVID-19 pandemic;
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·
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the timing and
likelihood of U.S. Food and Drug Administration, or FDA, approvals
and regulatory actions on our product candidates, manufacturing
activities and product marketing activities;
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·
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our ability to advance
product candidates in our platforms into successful and completed
clinical trials and our subsequent ability to successfully
commercialize our product candidates;
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·
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our ability to compete
in the development and marketing of our products and product
candidates;
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·
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our expectations
regarding the business expansion plans for our Chinese subsidiary,
ANP;
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·
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the potential for
adverse application of environmental, health and safety and other
laws and regulations on our operations;
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·
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our expectations for
market acceptance of our new products and proprietary drug delivery
technologies, as well as those of our active pharmaceutical
ingredient, or API, customers;
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·
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the potential for our
marketed products to be withdrawn due to patient adverse events or
deaths, or if we fail to secure FDA approval for products subject
to the Prescription Drug Wrap-Up program;
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·
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our expectations in
obtaining insurance coverage and adequate reimbursement for our
products from third-party payers;
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·
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the amount of price
concessions or exclusion of suppliers adversely affecting our
business;
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·
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our ability to
establish and maintain intellectual property protection for our
products and our ability to successfully defend our intellectual
property in cases of alleged infringement;
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·
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the implementation of
our business strategies, product development strategies and
technology utilization;
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·
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the potential for
exposure to product liability claims;
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·
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future acquisitions,
divestitures or investments, including the anticipated benefits of
such acquisitions, divestitures or investments;
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·
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our ability to expand
internationally;
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·
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economic and industry
trends and trend analysis;
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·
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our ability to remain
in compliance with laws and regulations that currently apply or
become applicable to our business both in the United States and
internationally;
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·
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the impact of trade
tariffs, export or import restrictions, or other trade
barriers;
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·
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the impact of Patient
Protection and Affordable Care Act (as amended) and other
legislative and regulatory healthcare reforms in the countries in
which we operate including the potential for drug price
controls;
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·
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the impact of global
and domestic tax reforms, including the Tax Cuts and Jobs Act of
2017, or the Tax Act, as amended by the Coronavirus Aid, Relief,
and Economic Security Act, or the CARES Act;
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·
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the timing for
completion and the validation of the new construction at our ANP
and Amphastar facilities; and
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·
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our financial
performance expectations, including our expectations regarding our
backlog, revenue, cost of revenue, gross profit or gross margin,
operating expenses, including changes in research and development,
sales and marketing and general and administrative expenses, and
our ability to achieve and maintain future
profitability.
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You should read this
Quarterly Report and the documents that we reference elsewhere in
this Quarterly Report completely and with the understanding that
our actual results may differ materially from what we expect as
expressed or implied by our forward-looking
statements. In light of
the significant risks and uncertainties to which our
forward-looking statements are subject, you should not place undue
reliance on or regard these statements as a representation or
warranty by us or any other person that we will achieve our
objectives and plans in any specified timeframe, or at all. In
particular, the extent of COVID-19’s impact on our business will
depend on several factors, including the severity, duration and
extent of the pandemic, as well as actions taken by governments,
businesses, and consumers in response to the pandemic, all of which
continue to evolve and remain uncertain at this time. We
discuss many of these risks and uncertainties in greater detail in
this Quarterly Report and in our Annual Report on Form 10-K for the
year ended December 31, 2019, particularly in Item 1A. “Risk
Factors.” These forward-looking statements represent our estimates
and assumptions only as of the date of this Quarterly Report
regardless of the time of delivery of this Quarterly Report, and
such information may be limited or incomplete, and our statements
should not be read to indicate that we have conducted an exhaustive
inquiry into, or review of, all potentially available relevant
information. Except as required by law, we undertake no obligation
to update or revise publicly any forward-looking statements,
whether as a result of new information, future events or otherwise
after the date of this Quarterly Report.
Unless expressly
indicated or the context requires otherwise, references in this
Quarterly Report to “Amphastar,” “the Company,” “we,” “our,” and
“us” refer to Amphastar Pharmaceuticals, Inc. and our
subsidiaries.
PART I
– FINANCIAL INFORMATION
ITEM
1. FINANCIAL STATEMENTS
AMPHASTAR
PHARMACEUTICALS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in
thousands, except share data)
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March 31,
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December 31,
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2020
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2019
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(unaudited)
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ASSETS
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Current
assets:
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Cash and cash
equivalents
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$
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54,845
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$
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73,685
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Restricted
cash
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1,865
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1,865
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Short-term
investments
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12,203
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11,675
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Restricted short-term
investments
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2,290
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2,290
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Accounts receivable,
net
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57,784
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45,376
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Inventories
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107,900
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110,501
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Income tax refunds and
deposits
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814
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311
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Prepaid expenses and
other assets
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9,023
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9,538
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Total current
assets
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246,724
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255,241
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Property, plant, and
equipment, net
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231,476
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233,856
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Finance lease
right-of-use assets
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798
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887
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Operating lease
right-of-use assets
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17,934
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18,805
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Goodwill and intangible
assets, net
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40,472
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41,153
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Other assets
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11,192
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11,156
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Deferred tax
assets
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24,235
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25,873
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Total assets
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$
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572,831
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$
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586,971
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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Current
liabilities:
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Accounts payable and
accrued liabilities
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$
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65,438
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$
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77,051
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Income taxes
payable
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2,994
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2,042
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Current portion of
long-term debt
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11,458
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7,741
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Current portion of
operating lease liabilities
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3,481
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3,175
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Total current
liabilities
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83,371
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90,009
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Long-term reserve for
income tax liabilities
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3,425
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3,425
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Long-term debt, net of
current portion
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36,410
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39,394
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Long-term operating
lease liabilities, net of current portion
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15,230
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16,315
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Deferred tax
liabilities
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765
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|
867
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Other long-term
liabilities
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10,257
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9,433
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Total
liabilities
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149,458
|
|
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159,443
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Commitments and
contingencies
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Stockholders’
equity:
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Preferred stock: par
value $0.0001; 20,000,000 shares authorized; no shares issued
and outstanding
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—
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—
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Common stock: par value
$0.0001; 300,000,000 shares authorized; 52,864,991 and
46,306,103 shares issued and outstanding as of March 31, 2020 and
52,495,483 and 46,576,968 shares issued and outstanding as of
December 31, 2019, respectively
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5
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5
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Additional paid-in
capital
|
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371,144
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367,305
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Retained
earnings
|
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120,319
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116,370
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Accumulated other
comprehensive loss
|
|
|
(5,461)
|
|
|
(4,687)
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Treasury
stock
|
|
|
(108,493)
|
|
|
(97,627)
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Total Amphastar
Pharmaceuticals, Inc. stockholders’ equity
|
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|
377,514
|
|
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381,366
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Non-controlling
interests
|
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|
45,859
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|
|
46,162
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Total equity
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423,373
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427,528
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Total liabilities and
stockholders’ equity
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$
|
572,831
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$
|
586,971
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See
Accompanying Notes to Condensed Consolidated Financial
Statements.
AMPHASTAR
PHARMACEUTICALS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in
thousands, except per share data)
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Three
Months Ended
|
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March 31,
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2020
|
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2019
|
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Net revenues
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$
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84,688
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$
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79,790
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Cost of
revenues
|
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47,865
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|
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48,887
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Gross profit
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36,823
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30,903
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Operating
expenses:
|
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Selling, distribution,
and marketing
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3,294
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3,141
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General and
administrative
|
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10,746
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16,327
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Research and
development
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15,303
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14,607
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Total operating
expenses
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29,343
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34,075
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Income (loss) from
operations
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7,480
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(3,172)
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Non-operating
(expenses) income:
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Interest
income
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153
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148
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Interest
expense
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(76)
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(30)
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Other expenses,
net
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(1,752)
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(579)
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Total non-operating
expenses, net
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(1,675)
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(461)
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|
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Income (loss) before
income taxes
|
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5,805
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(3,633)
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Income tax provision
(benefit)
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2,280
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(1,479)
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Net income
(loss)
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$
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3,525
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|
$
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(2,154)
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Net loss attributable
to non-controlling interests
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$
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(424)
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$
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(3,022)
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Net income attributable
to Amphastar Pharmaceuticals, Inc.
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$
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3,949
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$
|
868
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Net income per share
attributable to Amphastar Pharmaceuticals, Inc.
shareholders:
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Basic
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$
|
0.09
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|
$
|
0.02
|
|
|
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Diluted
|
|
$
|
0.08
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|
$
|
0.02
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|
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Weighted-average shares
used to compute net income per share attributable to Amphastar
Pharmaceuticals, Inc. shareholders:
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|
|
|
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Basic
|
|
|
46,408
|
|
|
46,744
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|
|
|
|
|
|
|
|
|
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|
Diluted
|
|
|
48,248
|
|
|
50,416
|
|
See
Accompanying Notes to Condensed Consolidated Financial
Statements.
AMPHASTAR
PHARMACEUTICALS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
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|
Three
Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2020
|
|
2019
|
|
|
Net income attributable
to Amphastar Pharmaceuticals, Inc.
|
|
$
|
3,949
|
|
$
|
868
|
|
|
|
|
|
|
|
|
|
|
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Other comprehensive
loss attributable to Amphastar Pharmaceuticals, Inc., net of income
taxes
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(774)
|
|
|
(113)
|
|
|
Total other
comprehensive loss attributable to Amphastar Pharmaceuticals,
Inc.
|
|
|
(774)
|
|
|
(113)
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income attributable to Amphastar Pharmaceuticals, Inc.
|
|
$
|
3,175
|
|
$
|
755
|
|
See
Accompanying Notes to Condensed Consolidated Financial
Statements.
AMPHASTAR
PHARMACEUTICALS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited; in
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
|
|
|
|
|
|
Accumulated
|
|
Treasury
Stock
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
|
|
Other
|
|
|
|
|
|
|
Amphastar
|
|
Non-
|
|
|
|
|
|
|
|
|
|
|
|
Paid-in
|
|
Retained
|
|
Comprehensive
|
|
|
|
|
|
|
Stockholders'
|
|
controlling
|
|
|
|
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Earnings
|
|
loss
|
|
Shares
|
|
Amount
|
|
Equity
|
|
Interest
|
|
Total
|
|
Balance
as of December 31, 2019
|
|
52,495,483
|
|
$
|
5
|
|
$
|
367,305
|
|
$
|
116,370
|
|
$
|
(4,687)
|
|
(5,918,515)
|
|
$
|
(97,627)
|
|
$
|
381,366
|
|
$
|
46,162
|
|
$
|
427,528
|
|
Net
income attributable to Amphastar Pharmaceuticals, Inc.
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,949
|
|
|
—
|
|
—
|
|
|
—
|
|
|
3,949
|
|
|
—
|
|
|
3,949
|
|
Other
comprehensive loss attributable to Amphastar Pharmaceuticals,
Inc.
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(774)
|
|
—
|
|
|
—
|
|
|
(774)
|
|
|
—
|
|
|
(774)
|
|
Net loss
attributable to non-controlling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(424)
|
|
|
(424)
|
|
Purchase
of treasury stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(647,246)
|
|
|
(10,950)
|
|
|
(10,950)
|
|
|
—
|
|
|
(10,950)
|
|
Issuance
of treasury stock in connection with the Company's equity
plans
|
|
—
|
|
|
—
|
|
|
(84)
|
|
|
—
|
|
|
—
|
|
6,873
|
|
|
84
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Issuance
of common stock in connection with the Company's equity
plans
|
|
369,508
|
|
|
—
|
|
|
(1,238)
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
(1,238)
|
|
|
—
|
|
|
(1,238)
|
|
Share-based
compensation expense
|
|
—
|
|
|
—
|
|
|
5,161
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
5,161
|
|
|
121
|
|
|
5,282
|
|
Balance
as of March 31, 2020
|
|
52,864,991
|
|
$
|
5
|
|
$
|
371,144
|
|
$
|
120,319
|
|
$
|
(5,461)
|
|
(6,558,888)
|
|
$
|
(108,493)
|
|
$
|
377,514
|
|
$
|
45,859
|
|
$
|
423,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
|
|
|
|
|
|
Accumulated
|
|
Treasury
Stock
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
|
|
Other
|
|
|
|
|
|
|
Amphastar
|
|
Non-
|
|
|
|
|
|
|
|
|
|
|
|
Paid-in
|
|
Retained
|
|
Comprehensive
|
|
|
|
|
|
|
Stockholders'
|
|
controlling
|
|
|
|
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Earnings
|
|
loss
|
|
Shares
|
|
Amount
|
|
Equity
|
|
Interest
|
|
Total
|
|
Balance
as of December 31, 2018
|
|
51,438,675
|
|
$
|
5
|
|
$
|
344,434
|
|
$
|
67,485
|
|
$
|
(4,013)
|
|
(4,807,557)
|
|
$
|
(75,476)
|
|
$
|
332,435
|
|
$
|
31,924
|
|
$
|
364,359
|
|
Beginning
balance adjustment as a result of the adoption of new accounting
standards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(54)
|
|
|
—
|
|
—
|
|
|
—
|
|
|
(54)
|
|
|
—
|
|
|
(54)
|
|
Net
income attributable to Amphastar Pharmaceuticals, Inc.
|
|
—
|
|
|
—
|
|
|
—
|
|
|
868
|
|
|
—
|
|
—
|
|
|
—
|
|
|
868
|
|
|
—
|
|
|
868
|
|
Other
comprehensive loss attributable to Amphastar Pharmaceuticals,
Inc.
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(113)
|
|
—
|
|
|
—
|
|
|
(113)
|
|
|
—
|
|
|
(113)
|
|
Proceeds
from the private placement of ANP
|
|
—
|
|
|
—
|
|
|
2,588
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
2,588
|
|
|
16,378
|
|
|
18,966
|
|
Net loss
attributable to non-controlling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,022)
|
|
|
(3,022)
|
|
Purchase
of treasury stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(145,479)
|
|
|
(3,015)
|
|
|
(3,015)
|
|
|
—
|
|
|
(3,015)
|
|
Issuance
of treasury stock in connection with the Company's equity
plans
|
|
—
|
|
|
—
|
|
|
(98)
|
|
|
—
|
|
|
—
|
|
8,334
|
|
|
98
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Issuance
of common stock in connection with the Company's equity
plans
|
|
604,651
|
|
|
—
|
|
|
(2,397)
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
(2,397)
|
|
|
—
|
|
|
(2,397)
|
|
Share-based
compensation expense
|
|
—
|
|
|
—
|
|
|
4,674
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
4,674
|
|
|
—
|
|
|
4,674
|
|
Balance
as of March 31, 2019
|
|
52,043,326
|
|
$
|
5
|
|
$
|
349,201
|
|
$
|
68,299
|
|
$
|
(4,126)
|
|
(4,944,702)
|
|
$
|
(78,393)
|
|
$
|
334,986
|
|
$
|
45,280
|
|
$
|
380,266
|
See
Accompanying Notes to Condensed Consolidated Financial
Statements
AMPHASTAR
PHARMACEUTICALS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2020
|
|
2019
|
|
|
Cash
Flows From Operating Activities:
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
|
$
|
3,525
|
|
$
|
(2,154)
|
|
|
Reconciliation to net
cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Loss on
impairment and disposal of assets
|
|
|
14
|
|
|
805
|
|
|
Depreciation of
property, plant, and equipment
|
|
|
4,716
|
|
|
4,158
|
|
|
Amortization of
product rights, trademarks, and patents
|
|
|
258
|
|
|
270
|
|
|
Operating
lease right-of-use asset amortization
|
|
|
848
|
|
|
704
|
|
|
Share-based
compensation expense
|
|
|
5,282
|
|
|
4,674
|
|
|
Changes
in deferred taxes, net
|
|
|
1,638
|
|
|
—
|
|
|
Changes
in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable, net
|
|
|
(12,487)
|
|
|
(1,061)
|
|
|
Inventories
|
|
|
2,241
|
|
|
(9,507)
|
|
|
Prepaid
expenses and other assets
|
|
|
1,494
|
|
|
(4,729)
|
|
|
Income
tax refund, deposits, and payable
|
|
|
451
|
|
|
(1,713)
|
|
|
Operating
lease liabilities
|
|
|
(824)
|
|
|
(614)
|
|
|
Accounts
payable and accrued liabilities
|
|
|
(5,679)
|
|
|
5,557
|
|
|
Net cash
provided by (used in) operating activities
|
|
|
1,477
|
|
|
(3,610)
|
|
|
|
|
|
|
|
|
|
|
|
Cash
Flows From Investing Activities:
|
|
|
|
|
|
|
|
|
Purchases
and construction of property, plant, and equipment
|
|
|
(8,006)
|
|
|
(14,744)
|
|
|
Purchase
of intangible assets
|
|
|
—
|
|
|
(151)
|
|
|
Purchase
of short-term investments
|
|
|
(510)
|
|
|
—
|
|
|
Payment
of deposits and other assets
|
|
|
(206)
|
|
|
11
|
|
|
Net cash
used in investing activities
|
|
|
(8,722)
|
|
|
(14,884)
|
|
|
|
|
|
|
|
|
|
|
|
Cash
Flows From Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds
from the private placement of ANP
|
|
|
—
|
|
|
18,298
|
|
|
Proceeds
from equity plans, net of withholding tax payments
|
|
|
(1,238)
|
|
|
(2,397)
|
|
|
Purchase
of treasury stock
|
|
|
(10,950)
|
|
|
(3,015)
|
|
|
Proceeds
from issuance of long-term debt
|
|
|
3,067
|
|
|
—
|
|
|
Principal
payments on long-term debt
|
|
|
(2,328)
|
|
|
(1,657)
|
|
|
Net cash
(used in) provided by financing activities
|
|
|
(11,449)
|
|
|
11,229
|
|
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash
|
|
|
(146)
|
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
Net
decrease in cash, cash equivalents, and restricted cash
|
|
|
(18,840)
|
|
|
(7,241)
|
|
|
|
|
|
|
|
|
|
|
|
Cash,
cash equivalents, and restricted cash at beginning of
period
|
|
|
75,550
|
|
|
88,202
|
|
|
|
|
|
|
|
|
|
|
|
Cash,
cash equivalents, and restricted cash at end of period
|
|
$
|
56,710
|
|
$
|
80,961
|
|
|
|
|
|
|
|
|
|
|
|
Noncash
Investing and Financing Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditure included in accounts payable
|
|
$
|
5,840
|
|
$
|
6,511
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information:
|
|
|
|
|
|
|
|
|
Interest
paid, net of capitalized interest
|
|
$
|
559
|
|
$
|
898
|
|
|
Income
taxes paid
|
|
$
|
209
|
|
$
|
234
|
|
See
Accompanying Notes to Condensed Consolidated Financial
Statements.
AMPHASTAR
PHARMACEUTICALS, INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note
1. General
Amphastar
Pharmaceuticals, Inc., a Delaware corporation (together with
its subsidiaries, hereinafter referred to as the “Company”) is a
specialty pharmaceutical company that develops, manufactures,
markets, and sells generic and proprietary injectable, inhalation,
and intranasal products, including products with high technical
barriers to market entry. Additionally, the Company sells insulin
active pharmaceutical ingredient, or API, products. Most of the
Company’s products are used in hospital or urgent care clinical
settings and are primarily contracted and distributed through group
purchasing organizations and drug wholesalers. The Company’s
insulin API products are sold to other pharmaceutical companies for
use in their own products and are being used by the Company in the
development of injectable finished pharmaceutical
products. The Company’s inhalation product,
Primatene®
Mist is primarily
distributed through drug retailers.
The
accompanying unaudited condensed consolidated financial statements
should be read in conjunction with the audited consolidated
financial statements of the Company for the year ended December 31,
2019 and the notes thereto as filed with the Securities and
Exchange Commission, or SEC, in the Company’s Annual Report on Form
10-K for the year ended December 31, 2019. Certain information and
footnote disclosures normally included in annual financial
statements prepared in accordance with generally accepted
accounting principles, or GAAP, have been condensed or omitted from
the accompanying condensed consolidated financial statements. The
accompanying year-end condensed consolidated balance sheet was
derived from the audited financial statements. The accompanying
interim financial statements are unaudited, but reflect all
adjustments which are, in the opinion of management, necessary for
a fair statement of the Company’s consolidated financial position,
results of operations, comprehensive income (loss), stockholders’
equity, and cash flows for the periods presented. Unless
otherwise noted, all such adjustments are of a normal, recurring
nature. The Company’s results of operations, comprehensive income
(loss) and cash flows for the interim periods are not necessarily
indicative of the results of operations and cash flows that it may
achieve in future periods.
Note
2. Summary of Significant Accounting Policies
Basis of
Presentation
The unaudited
condensed consolidated financial statements include the accounts of
the Company and its subsidiaries, and are prepared in accordance
with United States generally accepted accounting principles, or
GAAP. Certain prior period amounts have been reclassified within
the operating activities of the statement of cash flows to conform
to the current period presentation. All intercompany activity has
been eliminated in the preparation of the condensed consolidated
financial statements. In the opinion of management, the
accompanying unaudited condensed consolidated financial statements
include all adjustments necessary to present fairly the
consolidated financial position, results of operations, and cash
flows of the Company.
The Company’s
subsidiaries include: (1) International Medication Systems,
Limited, or IMS, (2) Armstrong Pharmaceuticals, Inc., or
Armstrong, (3) Amphastar Nanjing Pharmaceuticals Inc., or ANP, (4)
Nanjing Letop Biological Technology Co., Ltd., or Letop, (5)
Nanjing Hanxin Pharmaceutical Technology Co., Ltd., or Hanxin, (6)
Nanjing Baixin Trading Co., Ltd., or Baixin, (7) Amphastar France
Pharmaceuticals, S.A.S., or AFP, (8) Amphastar UK Ltd., or AUK, and
(9) International Medication Systems (UK) Limited, or IMS
UK.
In July 2018, the
Company’s Chinese subsidiary, ANP, completed a private placement of
its common equity interest to accredited investors for aggregate
gross proceeds of approximately $57 million, a portion of which was
received in 2019. The Company has retained approximately 58% of the
equity interest in ANP following the private placement and
continues to consolidate the financial results of ANP with the
Company’s results of operations. ANP’s net income after July 2,
2018, was attributed to the Company in accordance with the
Company’s equity interest of approximately 58% in ANP.
AMPHASTAR
PHARMACEUTICALS, INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
COVID-19
Pandemic
The Company is subject to risks and
uncertainties as a result of the novel coronavirus pandemic, or
COVID-19. The extent of the impact of the COVID-19 pandemic on the
Company’s business is highly uncertain and difficult to predict, as
the response to the pandemic is in its incipient stages and
information is rapidly evolving. The Company considered the impact
of COVID-19 on
the assumptions and estimates used to determine the results
reported and asset valuations as of March 31, 2020.
In March 2020, the World Health
Organization declared the outbreak of a novel coronavirus, or
COVID-19, as a pandemic, which continues to spread throughout the
world, including locations where the Company operates, such as the
United States, China and France. The Company has been actively
monitoring the COVID-19 pandemic and its impact globally. In late
January 2020, China implemented extensive curfews and travel
restrictions to control the outbreak, and started easing these
restrictions in March. Our business operations in China experienced
a temporary disruption but resumed full operation in February 2020.
In March 2020, France also implemented a stay-at-home order
limiting movement and restricting travel, however, the Company was
deemed to be an essential business and was not impacted by the
restrictions. In March 2020, the Governors of the States of
California and Massachusetts declared a health emergency and issued
orders to close all nonessential businesses; as a specialty
pharmaceutical company, the Company was deemed to be an essential
business. Nonetheless, out of concern for the Company’s workers and
pursuant to the government order in the United States certain
workers began telecommuting from their homes. Except for the
increased sales of Primatene®
Mist and some hospital products, the
financial results for the three months ended March 31, 2020, were
not significantly impacted by the COVID-19 pandemic. Other than a
temporary delay in re-opening the Company’s facility in China after
the Lunar New Year celebration, the Company’s production facilities
in all of its locations continued to operate in substantially the
same manner during the quarter as they had prior to the COVID-19
pandemic with the adoption of enhanced safety measures intended to
prevent the spread of the coronavirus. While the Company does not
expect this matter to negatively impact its results of operations,
cash flows and financial position in the near term, the related
long term impact cannot be reasonably estimated at this time. The
Company will continue to monitor the impact of COVID-19 on all
aspects of its business.
Use of
Estimates
The preparation of
condensed consolidated financial statements in accordance with GAAP
requires management to make estimates and assumptions that affect
the amounts reported in the condensed consolidated financial
statements and accompanying notes. Actual results could differ from
those estimates. The principal accounting estimates include:
determination of allowances for credit losses, allowance for
discounts, provision for chargebacks and rebates, provision for
product returns, adjustment of inventory to their net realizable
values, impairment of long-lived and intangible assets and
goodwill, self-insured claims, workers’ compensation liabilities,
litigation reserves, stock price volatilities for share-based
compensation expense, valuation allowances for deferred tax assets,
and liabilities for uncertain income tax positions.
Foreign
Currency
The functional
currency of the Company, its domestic subsidiaries, its Chinese
subsidiary, ANP, and its U.K. subsidiary, AUK, is the USD. ANP
maintains its books of record in Chinese yuan. These books are
remeasured into the functional currency of USD using the current or
historical exchange rates. The resulting currency remeasurement
adjustments and other transactional foreign currency exchange gains
and losses are reflected in the Company’s condensed consolidated
statements of operations.
The Company’s
French
subsidiary, AFP, maintains its book of record in euros. ANP’s other
Chinese subsidiaries maintain their books of record in Chinese
yuan. AUK’s subsidiary, IMS UK, maintains its book of record in
British
AMPHASTAR
PHARMACEUTICALS, INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
pounds.
These local currencies have been determined to be the subsidiaries’
respective functional currencies. These books of record are
translated into USD using average exchange rates during the period.
Assets and liabilities are translated at the rate of exchange
prevailing on the balance sheet date. Equity is translated at the
prevailing rate of exchange at the date of the equity transactions.
Translation adjustments are reflected in stockholders’ equity and
are included as a component of other accumulated comprehensive
income (loss). The unrealized gains or losses of intercompany
foreign currency transactions that are of a long-term investment
nature are reported in other accumulated comprehensive income
(loss). The unrealized losses of intercompany foreign currency
transactions that are of a long-term investment nature for the
three months ended March 31, 2020 and 2019 were $0.6 million and
$0.7 million, respectively.
Comprehensive
Income (Loss)
For the three months
ended March 31, 2020 and 2019, the Company included its foreign
currency translation gain or loss as part of its comprehensive
income (loss). There was no material income tax expense (benefit)
allocated to other comprehensive income (loss) for the three months
ended March 31, 2020 and 2019.
Advertising
Costs
In connection with the
launch of Primatene®
Mist, in July 2019,
the Company began to incur advertising costs. Advertising costs are
expensed as incurred, except for costs related to the development
of a major commercial or media campaign, which are expensed in the
period in which the commercial or campaign is first presented, and
is reflected as a component of selling, distribution and marketing
in the Company’s condensed consolidated statement of operations.
For the three months ended March 31, 2020, advertising cost was
$1.0 million.
Financial
Instruments
The carrying amounts
of cash and cash equivalents, short-term investments, restricted
cash and short-term investments, accounts receivable, accounts
payable, accrued expenses, and short-term borrowings approximate
fair value due to the short maturity of these items. The majority
of the Company’s long-term obligations consist of variable rate
debt, and their carrying value approximates fair value as the
stated borrowing rates are comparable to rates currently offered to
the Company for instruments with similar maturities. The Company at
times enters into fixed interest rate swap contracts to exchange
the variable interest rates for fixed interest rates without the
exchange of the underlying notional debt amounts. Such interest
rate swap contracts are recorded at their fair values.
Cash
and Cash Equivalents
Cash and cash
equivalents consist of cash, money market accounts, certificates of
deposit and highly liquid investments purchased with original
maturities of three months or less.
Short-Term
Investments
Short-term investments
as of March 31, 2020 and December 31, 2019 consisted of
certificates of deposit and investment grade corporate bonds with
original expiration dates within 12 months.
Restricted
Cash
Restricted cash is
collateral required for the Company to guarantee certain vendor
payments in France. As of March 31, 2020 and December 31, 2019, the
restricted cash balance was $1.9 million.
AMPHASTAR
PHARMACEUTICALS, INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Restricted
Short-Term Investments
Restricted short-term
investments consist of certificates of deposit that are collateral
for standby letter of credit to qualify for workers’ compensation
self-insurance. The certificates of deposit have original
maturities greater than three months. As of March 31, 2020 and
December 31, 2019, the balance of restricted short-term investments
was $2.3 million.
Deferred Income
Taxes
The Company utilizes the liability
method of accounting for income taxes, under which deferred taxes
are determined based on the temporary differences between the
financial statements and the tax basis of assets and liabilities
using enacted tax rates. A valuation allowance is recorded when it
is more likely than not that the deferred tax assets will not be
realized.
Recent
Accounting Pronouncements
In June 2016, the Financial
Accounting Standards Board, or FASB, issued Accounting Standard
Update, or ASU, No. 2016-13 Financial Instruments – Credit
Losses, which is aimed at
providing financial statement users with more useful information
about the expected credit losses on financial instruments and other
commitments to extend credit. The standard update changes the
impairment model for financial assets measured at amortized cost,
requiring presentation at the net amount expected to be collected.
The measurement of expected credit losses requires consideration of
a broader range of reasonable and supportable information to inform
credit loss estimates. Available-for-sale debt securities with
unrealized losses will be recorded through an allowance for credit
losses. The ASU and the related clarifications subsequently issued
by FASB are effective for the Company’s interim and annual
reporting periods during the year ending December 31, 2020. This
new guidance applies to the Company’s held-to-maturity investments
and trade receivables. The adoption of this accounting guidance did
not have a material impact on the Company’s condensed consolidated
financial statements and related disclosures.
In January 2017, the FASB issued ASU
No. 2017-04 Simplifying the Test for
Goodwill Impairment, which
eliminates the requirement to calculate the implied fair value of
goodwill. An entity should perform its annual, or interim, goodwill
impairment test by comparing the fair value of a reporting unit
with its carrying amount. An entity should recognize an impairment
charge for the amount by which the carrying amount exceeds the
reporting unit’s fair value; however, the loss recognized should
not exceed the total amount of goodwill allocated to that reporting
unit. The update also eliminated the requirements for any reporting
unit with a zero or negative carrying amount to perform a
qualitative assessment and, if it fails that qualitative test, to
perform Step 2 of the goodwill impairment test. An entity is
required to disclose the amount of goodwill allocated to each
reporting unit with a zero or negative carrying amount of net
assets. The guidance is effective for the Company’s interim and
annual reporting periods during the year ending December 31, 2020.
The adoption of this guidance did not have a material impact on the
Company’s condensed consolidated financial statements and related
disclosures.
In August 2018, the FASB issued ASU
No. 2018-13 Disclosure Framework – Changes
to the Disclosure Requirements for Fair Value
Measurement, which removes,
modifies, and adds certain disclosure requirements to Accounting
Standard Codification, or ASC, 820, Fair Value Measurement. The
guidance is effective for the Company’s interim and annual
reporting periods during the year ending December 31, 2020. The
adoption of this guidance did not have a material impact on the
Company’s condensed consolidated financial statements and related
disclosures.
In August 2018, the FASB issued ASU
No. 2018-14 Disclosure Framework – Changes
to the Disclosure Requirements for Defined Benefit
Plans, which removes,
modifies, and adds certain disclosure requirements to ASC 715-20,
Defined Benefit Plans. The guidance is effective for the Company’s
interim and annual reporting periods during the year ending
December 31, 2020. The adoption of this guidance did not have a
material impact on the Company’s condensed
AMPHASTAR
PHARMACEUTICALS, INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
consolidated financial statements and
related disclosures.
In August 2018, the FASB issued ASU
No. 2018-15 Customer’s Accounting for
Implementation Cost Incurred in a Cloud Computing Arrangement that
is a Service Contract, which
aligns the requirements for capitalizing implementation costs
incurred in a hosting arrangement that is a service contract with
the requirements for capitalized implementation cost incurred to
develop or obtain internal-use software (and hosting arrangements
that include an internal use software license). The guidance also
requires the entity to expense the capitalized implementation cost
of a hosting arrangement that is a service contract over the term
of the hosting arrangement, which includes reasonably certain
renewals. This guidance is effective for the Company’s interim and
annual reporting periods during the year ended December 31, 2020.
The adoption of this guidance did not have a material impact on the
Company’s condensed consolidated financial statements and related
disclosures.
In October 2018, the FASB issued ASU
No. 2018-17 Targeted Improvements to
Related Party Guidance for Variable Interest
Entities, which requires
indirect interests held through related parties in common control
arrangements be considered on a proportional basis for determining
whether fees paid to decision makers and service providers are
variable interests. The guidance is effective for the Company’s
interim and annual reporting periods during the year ending
December 31, 2020. The adoption of this guidance did not have a
material impact on the Company’s condensed consolidated financial
statements and related disclosures.
In November 2018, the FASB issued ASU
No. 2018-18 Clarifying the Interaction
between Topic 808 and Topic 606, which requires transactions in collaborative
arrangements to be accounted for under ASC 606, Revenue from Contracts with
Customers, or ASC 606, if the
counterparty is a customer for a good or service that is a distinct
unit of account. The amendments also preclude entities from
presenting consideration from transactions with a collaborator that
is not a customer together with revenue recognized from contracts
with customers. The guidance is effective for the Company’s interim
and annual reporting periods during the year ending December 31,
2020. The adoption of this guidance did not have a material impact
on the Company’s condensed consolidated financial statements and
related disclosures.
In December 2019, the FASB issued ASU
No. 2019-12 Simplifying the Accounting for
Income Taxes (Topic 740),
which simplifies various aspects related to accounting for income
taxes. The amendment also improves consistent application of and
simplify GAAP for other areas of Topic 740 by clarifying and
amending existing guidance. The guidance is effective for the
Company’s interim and annual reporting periods during the year
ended December 31, 2021, with early adoption permitted. The Company
is currently evaluating the impact that the adoption of this
guidance will have on its condensed consolidated financial
statements and related disclosures.
Note
3. Revenue
Recognition
In accordance with ASC
606, revenue is recognized at the time that the Company’s customers
obtain control of the promised goods.
Generally, revenue is
recognized at the time of product delivery to the Company’s
customers. In some cases, revenue is recognized at the time of
shipment when stipulated by the terms of the sale
agreements.
The consideration the
Company receives in exchange for its goods or services is only
recognized when it is probable that a significant reversal will not
occur. The consideration to which the Company expects to be
entitled includes a stated list price, less various forms of
variable consideration. The Company makes significant estimates for
related variable consideration at the point of sale, including
chargebacks, rebates, product returns, other discounts and
allowances.
Provisions for
estimated chargebacks, rebates, discounts, product returns and
credit losses are made at the time of sale and are analyzed
and adjusted, if necessary, at each balance sheet date.
AMPHASTAR
PHARMACEUTICALS, INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Revenues derived from
contract manufacturing services are recognized when third-party
products are shipped to customers, and after the customer has
accepted test samples of the products to be shipped.
The Company’s
accounting policy is to review each agreement involving contract
development and manufacturing services to determine if there are
multiple revenue-generating activities that constitute more than
one unit of accounting. Revenues are recognized for each unit of
accounting based on revenue recognition criteria relevant to that
unit. The Company does not have any revenue arrangements with
multiple performance obligations.
Provision for
Chargebacks and Rebates
The provision for
chargebacks and rebates is a significant estimate used in the
recognition of revenue. Wholesaler chargebacks relate to sales
terms under which the Company agrees to reimburse wholesalers for
differences between the gross sales prices at which the Company
sells its products to wholesalers and the actual prices of such
products that wholesalers resell under the Company’s various
contractual arrangements with third parties such as hospitals and
group purchasing organizations in the United States. Rebates
include primarily amounts paid to retailers, payers, and providers
in the United States, including those paid to state Medicaid
programs, and are based on contractual arrangements or statutory
requirements. The Company estimates chargebacks and rebates using
the expected value method at the time of sale to wholesalers based
on wholesaler inventory stocking levels, historic chargeback and
rebate rates, and current contract pricing.
The provision for
chargebacks and rebates is reflected as a component of net
revenues. The following table is an analysis of the chargeback and
rebate provision:
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2020
|
|
2019
|
|
|
|
|
(in
thousands)
|
|
|
Beginning
balance
|
|
$
|
21,644
|
|
$
|
22,423
|
|
|
Provision for
chargebacks and rebates
|
|
|
35,987
|
|
|
26,982
|
|
|
Credits and payments
issued to third parties
|
|
|
(39,353)
|
|
|
(28,861)
|
|
|
Ending
balance
|
|
$
|
18,278
|
|
$
|
20,544
|
|
Changes in the
chargeback provision from period to period are primarily dependent
on the Company’s sales to its wholesalers, the level of inventory
held by wholesalers, and the wholesalers’ customer mix. Changes in
the rebate provision from period to period are primarily dependent
on retailer’s and other indirect customers’ purchases. The approach
that the Company uses to estimate chargebacks has been consistently
applied for all periods presented. Variations in estimates have
been historically small. The Company continually monitors the
provision for chargebacks and rebates and makes adjustments when it
believes that the actual chargebacks and rebates may differ from
the estimates. The settlement of chargebacks and rebates generally
occurs within 30 days to 60 days after the sale to
wholesalers. Accounts receivable and/or accounts payable and
accrued liabilities are reduced and/or increased by the chargebacks
and rebate amounts depending on whether the Company has the right
to offset with the customer. Of the provision for chargebacks and
rebates as of March 31, 2020 and December 31, 2019, $13.4
million and $15.4 million were included in accounts receivable,
net, on the condensed consolidated balance sheets, respectively.
The remaining provision as of March 31, 2020 and December 31, 2019
of $4.9 million and $6.2 million, respectively, were included
in accounts payable and accrued liabilities.
Accrual for Product
Returns
The Company offers
most customers the right to return qualified excess or expired
inventory for partial credit; however, API product sales are
generally non-returnable. The Company’s product returns primarily
consist of the returns of expired products from sales made in prior
periods. Returned products
cannot be resold. At the time product revenue
is
AMPHASTAR
PHARMACEUTICALS, INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
recognized, the
Company records an accrual for product returns estimated using the
expected value method. The accrual is based, in part, upon the
historical relationship of product returns to sales and customer
contract terms. The Company also assesses other factors that could
affect product returns including market conditions, product
obsolescence, and the introduction of new competition. Although
these factors do not normally give the Company’s customers the
right to return products outside of the regular return policy, the
Company realizes that such factors could ultimately lead to
increased returns. The Company analyzes these situations on a
case-by-case basis and makes adjustments to the product return
reserve as appropriate.
The provision for product returns is
reflected as a component of net revenues. The following
table is an analysis of the product return liability:
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2020
|
|
2019
|
|
|
|
|
(in
thousands)
|
|
|
Beginning
balance
|
|
$
|
10,339
|
|
$
|
8,030
|
|
|
Provision for product
returns
|
|
|
3,099
|
|
|
1,968
|
|
|
Credits issued to third
parties
|
|
|
(2,239)
|
|
|
(1,275)
|
|
|
Ending
balance
|
|
$
|
11,199
|
|
$
|
8,723
|
|
Of the provision of
product returns as of March 31, 2020 and December 31, 2019, $7.3
million and $7.1 million, respectively, were included in accounts
payable and accrued liabilities on the condensed consolidated
balance sheets. The remaining provision as of March 31, 2020 and
December 31, 2019 of $3.9 million and $3.2 million, respectively,
were included in other long-term liabilities. For the three months
ended March 31, 2020 and 2019,
the
Company’s aggregate product return rate was 1.1% and
1.4% of
qualified sales, respectively.
Note
4. Income
(Loss) per Share Attributable to Amphastar Pharmaceuticals, Inc.
Shareholders
Basic net income
(loss) per share attributable to Amphastar Pharmaceuticals, Inc.
shareholders is calculated based upon the weighted-average number
of shares outstanding during the period. Diluted net income (loss)
per share attributable to Amphastar Pharmaceuticals, Inc.
shareholders gives effect to all potential dilutive shares
outstanding during the period, such as stock options, non-vested
restricted stock units and shares issuable under the Company’s
Employee Stock Purchase Plan, or ESPP and to reallocation of net
income attributable to non-controlling interest from the assumed
dilutive effect of stock options issued under the 2018 ANP Equity
Incentive Plan, or the 2018 Plan.
For the three months ended March 31,
2020, options to purchase 1,999,083 shares of stock with a
weighted-average exercise price of $20.81 per share, and the
reallocation of net income attributable to non-controlling
interests were excluded in the computation of diluted net income
per share attributable to Amphastar Pharmaceuticals, Inc.
shareholders because the effect would be
anti-dilutive.
For the three months
ended March 31, 2019, the reallocation of net income attributable
to non-controlling interest were excluded in the computation of
diluted net income per share attributable to Amphastar
Pharmaceuticals, Inc. shareholders because the effect would be
anti-dilutive.
AMPHASTAR
PHARMACEUTICALS, INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The following table
provides the calculation of basic and diluted net income (loss) per
share attributable to Amphastar Pharmaceuticals, Inc. shareholders
for each of the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2020
|
|
2019
|
|
|
|
|
(in
thousands, except per share data)
|
|
|
Basic and dilutive
numerator:
|
|
|
|
|
|
|
|
|
Net income attributable
to Amphastar Pharmaceuticals, Inc.
|
|
$
|
3,949
|
|
$
|
868
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding — basic
|
|
|
46,408
|
|
|
46,744
|
|
|
|
|
|
|
|
|
|
|
|
Net effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
Incremental shares from
equity awards
|
|
|
1,840
|
|
|
3,672
|
|
|
Weighted-average shares
outstanding — diluted
|
|
|
48,248
|
|
|
50,416
|
|
|
Net income per share
attributable to Amphastar Pharmaceuticals, Inc. shareholders —
basic
|
|
$
|
|