- Q3 2022 revenue of $15.7
million, Adjusted EBITDA of $6.0
million and cash from operations of $4.2 million.
- Total Vascepa prescriptions grew 14% sequentially and 89%
year-over-year.
- 2,800 physicians have prescribed Vascepa, up 16%
sequentially and 105% year-over-year: 9,885 patients have taken
Vascepa, up 17% sequentially and 96% year-over-year.
TORONTO, Nov. 10,
2022 /CNW/ - HLS Therapeutics Inc. ("HLS" or the
"Company") (TSX: HLS), a pharmaceutical company focusing on central
nervous system ("CNS") and cardiovascular markets, announces its
financial results for the three- and nine-month periods ended
September 30, 2022. All amounts are
in thousands of United States
("U.S.") dollars unless otherwise stated.
Q3 FISCAL 2022 HIGHLIGHTS
- Revenue was $15.7 million
compared to $15.1 million in Q3 2021,
and up 7% to $16.1 million measured
at constant currency.
- Canadian Product Sales were $9.6
million, up 11% from Q3 2021 (up 15% in constant
currency).
- Adjusted EBITDA was $6.0 million
compared to $6.9 million in Q3
2021.
- Net loss was ($4.4) million, or
($0.14) per common share, compared to
net loss of ($2.0) million, or
($0.06) per common share, in Q3
2021.
- Gained public reimbursement for Vascepa in Ontario and Saskatchewan increasing the total of publicly
covered lives in Canada to
70%.
- Favorably updated certain terms of the credit facility to
provide additional capital flexibility for the business.
SUBSEQUENT TO QUARTER-END
- October Vascepa shipments increased 19% over September 2022 and 39% over the average month in
Q3 2022 and October total prescriptions ("TRx") exceeded Q3 2022
monthly average by 11%.
- Quebec Vascepa new prescriptions ("NRx") grew 20% in the most
recent four-week period ending October 28,
2022, compared to the previous four-week period.
- Ontario Vascepa NRx grew 12% in the most recent four-week
period ending October 28, 2022,
compared to the previous four-week period.
- Released on November 6, 2022, at
the American Heart Association Scientific Sessions, the results of
the independent RESPECT-EPA Study are the third in a series of
trials to underscore cardiovascular risk reduction benefits of
Eicosapentaenoic Acid ("EPA").
- Share repurchases under the Company's Normal Course Issuer Bid
("NCIB") in the most recent six months through October totaled
C$1.0 million.
"Our operating metrics are strong. On a constant currency basis,
setting aside the negative impact of exchange rates, Q3 product
revenue in Canada grew 15% and
consolidated revenue would have been $16.1
million. The Company generated solid and reliable levels of
Adjusted EBITDA and cash flow from operations, which were
$6.0 million and $4.2 million, respectively, in the quarter," said
Gilbert Godin, CEO of HLS.
"Operationally, we signed product listing agreements in
Ontario and Saskatchewan, bringing public market
reimbursement coverage for Vascepa to approximately 70% of
Canadians on public plans, while more than 95% of Canadians on
private health plans, who are in-label, have reimbursement coverage
for the product."
"Vascepa prescription activity ramped-up toward the end of the
quarter with record prescription volumes generated in the final
week of September. Data from other leading indicators, such as
October shipments, have shown continued strength that we believe
signals a more pronounced increase in prescription volumes for the
product is underway. For example, sales volume grew by more in
October alone than it did in the entire third quarter."
"90% of target physicians have been reached at least once by our
Vascepa sales teams," added Mr. Godin. "Increasing the frequency of
calls on those physicians will raise awareness of the product and
help generate trial and adoption."
Mr. Godin continued: "Clozaril continues to generate steady and
reliable financial results. Clozaril revenue in Canada increased 3% in the third quarter as
reported in U.S. Dollars, or up 7% on a constant currency basis,
making up for a slower start to the year. The broader market
remains stable and continues to recover from the impact the
pandemic had on the access to treatment for existing patients and
on new patient enrollment. We continue to maintain our leading
market share and are working to further expand that with the
ongoing deployment of CSAN Pronto."
RENEWAL OF NORMAL COURSE ISSUER BID
The Company
announced today that it has filed with the Toronto Stock Exchange
(the "TSX"), and the TSX has accepted,
the Company's notice of intention to renew its Normal Course Issuer
Bid (the "NCIB") for its issued and outstanding
common shares (each a "Common Share"). Pursuant to the
NCIB, HLS may, if considered advisable, purchase
for cancellation through the facilities of the TSX
and/or alternative Canadian trading systems, from time to
time over the next 12 months, up to an aggregate of 1,620,366
Common Shares, representing 5% of the 32,407,318 issued and
Outstanding Common Shares as of October 31,
2022.
HLS may commence purchases of Common Shares under the NCIB on
November 14, 2022, and the NCIB will
remain in effect until the earliest of: (i) the close of trading on
November 13, 2023, (ii) the date upon
which HLS acquires the maximum number of Common Shares permitted
under the NCIB, and (iii) the date upon which HLS provides written
notice of termination of the NCIB to the TSX. Daily purchases
pursuant to the NCIB will be limited to 3,699 Common Shares, other
than purchases made pursuant to the block purchase exception, based
on the average daily trading volume on the TSX for six months
ending October 31, 2022 of 14,798
Common Shares.
Purchases of Common Shares under the NCIB will be made by
Haywood Securities Inc. ("Haywood") based on the parameters
prescribed by the TSX, the provisions of the Company's credit
agreement and applicable Canadian securities laws at a price per
Common Share equal to the market price at the time of acquisition.
All Common Shares acquired by the Company under the NCIB will be
cancelled.
The Company also intends to renew the automatic share purchase
plan (the "ASPP") with Haywood to
allow for the purchase of Common Shares under the NCIB at times
when the Company would ordinarily not be permitted to purchase
shares due to regulatory restrictions or self-imposed blackout
periods.
HLS believes that any purchases pursuant to the NCIB, if
considered advisable, will be in the best interests of the Company
and will be a desirable use of corporate funds. HLS previously
sought and received approval of the TSX to purchase up to 1,622,559
Common Shares in a normal course issuer bid (the "Previous
Bid") that commenced on November 9,
2021 and expired on November 8,
2022. As of October 31, 2022,
HLS had purchased 90,500 Common Shares on the open market at an
average purchase price of C$11.68 per
Common Share under the Previous Bid.
DIVIDEND
On November 9,
2022, the Company's Board of Directors declared a dividend
of C$0.05 per outstanding common
share to be paid on March 15, 2023,
to shareholders of record as of January 31,
2023.
These dividends paid on the Company's common shares are
designated to be "eligible dividends" for purposes of section 89(1)
of the Income Tax Act (Canada).
Q3 & YEAR-TO-DATE FISCAL 2022 FINANCIAL REVIEW
The
Company's Management's Discussion and Analysis and Consolidated
Financial Statements for the three- and nine-month periods ended
September 30, 2022 are available at
the Company's website and at its profile at SEDAR.
Revenue
The following table provides revenue
segmentation by revenue type for the three- and nine-month periods
ended September 30, 2022:
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
Product
sales
|
|
|
|
|
Canada
|
9,570
|
8,619
|
27,500
|
25,364
|
United
States
|
3,590
|
4,214
|
10,751
|
12,010
|
|
13,160
|
12,833
|
38,251
|
37,374
|
Royalty
revenue
|
2,544
|
2,227
|
7,541
|
6,945
|
|
15,704
|
15,060
|
45,792
|
44,319
|
Product Sales
Record Q3 2022 product sales in Canada grew 15% in Canadian currency (11%
growth in reported U.S. dollars), led by increased sales of
Vascepa, which grew 48% year-over-year.
Clozaril continues to be the leading treatment for
treatment-resistant schizophrenia with the number of active
patients growing modestly year-over-year in a relatively flat
market. Revenues in the quarter and year-to-date period remain
consistent with the prior year periods and have shown gradual
improvement during 2022 following the removal of pandemic
restrictions in Canada during the
first quarter of the year. In the US, Clozaril had a decrease of
$0.6 million in net sales in Q3 2022
reflecting a one-time benefit in Q3 2021 from the successful
resolution of a state rebate matter, while current year revenues
benefited from favorable gross-to-net trends and pricing change to
offset modest volume erosion.
Royalty revenues
Royalty revenues of $2.5 million in Q3 2022 increased from
$2.2 million in Q3 2021 reflecting
stability in the marketed products in the portfolio.
Commercialization for the product underlying the fourth royalty
interest in the portfolio is now in its early stages following
approvals in Japan and
Europe earlier in 2022 and in
the United States in Q3 2022.
Operating Expenses
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
Cost of product
sales
|
1,357
|
1,180
|
3,464
|
2,850
|
Selling and
marketing
|
4,306
|
3,354
|
12,677
|
10,253
|
Medical, regulatory and
patient support
|
1,498
|
1,337
|
4,121
|
4,171
|
General and
administrative
|
2,527
|
2,266
|
7,040
|
6,893
|
|
9,688
|
8,137
|
27,302
|
24,167
|
Operating expenses in Q3 2022 increased 19% from Q3 2021. Cost of
product sales increased due to the year-over-year growth in Vascepa
sales. The increase in the selling and marketing activities for
Vascepa includes the primary care salesforce expansion begun in
Fall 2021 as well as a return to increased activities following
removal of public health restrictions in late Q1 2022. Increased
Selling and marketing expenses also reflect additional marketing
support costs for Vascepa following the achievement of public
market access in several key provinces, including Ontario and Quebec, as well as introductory spending
related to MyCare. Medical, regulatory and patient support costs
and General and administrative costs have increased modestly
year-over-year.
Adjusted EBITDA (1)
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
Net loss for the
period
|
(4,410)
|
(1,979)
|
(17,169)
|
(8,929)
|
Stock-based
compensation
|
125
|
(113)
|
2,170
|
1,825
|
Amortization and
depreciation
|
8,834
|
7,372
|
25,710
|
22,219
|
Finance and related
costs, net
|
1,489
|
1,448
|
2,852
|
4,307
|
Transaction and other
costs
|
69
|
8
|
4,956
|
92
|
Income tax expense
(recovery)
|
(91)
|
187
|
(29)
|
638
|
Adjusted
EBITDA
|
6,016
|
6,923
|
18,490
|
20,152
|
Adjusted EBITDA in Q3 2022 was 13% lower year-over-year due
primarily to the increased selling and marketing expense and
increased cost of product sales related to the growth in sales of
Vascepa.
1 See
"Cautionary Note Regarding Non-IFRS Measures" section of this press
release.
|
Net Loss
Net loss for Q3 2022 was ($4.4 million), or ($0.14) per share, compared to a net loss of
($2.0 million), or ($0.06) per share, in Q3 2021. Net loss increased
as higher revenue was offset by an increase in cost of product
sales and sales and marketing expense related to the expansion of
Vascepa, as well as higher Amortization and depreciation.
Cash from Operations and Financial
Position
Cash generated from operations was $4.2 million in Q3 2022, compared to $3.6 million in Q3 2021. Cash and cash
equivalents was $21.3 million at
September 30, 2022 compared to
$21.2 million at December 31, 2021. In the year-to-date period
through September 2022, HLS has made
dividend payments totaling $3.8
million, share buybacks under the NCIB of $0.6 million and $7.4
million in repayments on the senior secured term loan.
On September 30, 2022, HLS updated
its credit agreement and senior secured term loan with its existing
syndicate of lenders. The updates extend the maturity of the loan
by one year and increase the financial flexibility for the Company
as it executes on its strategic priorities. Total borrowing and
unused borrowing capacity remain unchanged.
As at September 30, 2022, HLS has
a strong financial position with $21.3
million of cash and cash equivalents, $25.0 million of revolving facility which remains
undrawn, and the Company may also request to be provided with
incremental loans, up to a maximum amount of $70.0 million, to support acquisitions and other
growth opportunities.
Q3 FISCAL 2022 CONFERENCE CALL
HLS will hold a
conference call today at 8:30 am Eastern
Time to discuss its Q3 2022 financial results. The call will
be hosted by Mr. Gilbert Godin,
Chief Executive Officer and Mr. Tim
Hendrickson, Chief Financial Officer. To view the slides
that accompany management's discussion, please use the webcast
link.
CONFERENCE
ID:
|
70968021
|
DATE:
|
Thursday, November 10,
2022
|
TIME:
|
8:30 a.m. ET
|
DIAL-IN
NUMBER:
|
1-888-664-6392 or
416-764-8659
|
WEBCAST
LINK:
|
https://app.webinar.net/Lj7XWoRZYo5
|
TAPED
REPLAY:
|
1-888-390-0541 or
416-764-8677
|
REPLAY
CODE:
|
968021
|
The taped replay will be available for 14 days and the archived
webcast will be available for 365 days.
A link to the live audio webcast of the conference call will
also be available on the events page of the investors section of
HLS Therapeutics' website at www.hlstherapeutics.com. Please
connect at least 15 minutes prior to the conference call to ensure
adequate time for any software download that may be required to
hear the webcast.
ABOUT HLS THERAPEUTICS INC.
Formed in 2015, HLS is a
pharmaceutical company focused on the acquisition and
commercialization of late-stage development, commercial stage
promoted and established branded pharmaceutical products in the
North American markets. HLS's focus is on products targeting the
central nervous system and cardiovascular therapeutic areas. HLS's
management team is composed of seasoned pharmaceutical executives
with a strong track record of success in these therapeutic areas
and at managing products in each of these lifecycle stages. For
more information visit: www.hlstherapeutics.com
1CAUTIONARY NOTE REGARDING NON-IFRS
MEASURES
This press release refers to certain non-IFRS
measures. These measures are not recognized measures under IFRS, do
not have a standardized meaning prescribed by IFRS and are
therefore unlikely to be comparable to similar measures presented
by other companies. Rather, these measures are provided as
additional information to complement those IFRS measures by
providing further understanding of HLS's results of operations from
management's perspective. Accordingly, they should not be
considered in isolation nor as a substitute for analysis of HLS's
financial information reported under IFRS. HLS uses non-IFRS
measures to provide investors with supplemental measures of its
operating performance and thus highlight trends in its core
business that may not otherwise be apparent when relying solely on
IFRS financial measures. HLS also believes that securities
analysts, investors and other interested parties frequently use
non-IFRS measures in the evaluation of issuers. HLS's management
also uses non-IFRS measures in order to facilitate operating
performance comparisons from period to period, prepare annual
operating budgets and assess HLS's ability to meet its future debt
service, capital expenditure and working capital
requirements.
In particular, management uses Adjusted EBITDA as a
measure of HLS's performance. To reconcile net income (loss)
for the period with Adjusted EBITDA, each of (i) "stock-based
compensation", (ii) "amortization and depreciation", (iii)
"transaction costs and other charges", (iv) "finance and related
costs", and (v) "income tax expense (recovery)" appearing in the
Consolidated Statement of Net Income (Loss) are added to net income
(loss) for the period to determine Adjusted EBITDA. Adjusted EBITDA
does not have any standardized meaning prescribed by IFRS and is
not necessarily comparable to similar measures presented by other
companies. Adjusted EBITDA should not be considered in
isolation or as a substitute for net income (loss) prepared in
accordance with IFRS as issued by the IASB.
FORWARD LOOKING INFORMATION
This release includes
forward-looking statements regarding HLS and its business. Such
statements are based on the current expectations and views of
future events of HLS's management. In some cases the
forward-looking statements can be identified by words or phrases
such as "may", "will", "expect", "plan", "anticipate", "intend",
"potential", "estimate", "believe" or the negative of these terms,
or other similar expressions intended to identify forward-looking
statements, including, among others, statements with respect to
HLS's pursuit of additional product and pipeline opportunities in
certain therapeutic markets, statements regarding growth
opportunities, expectations regarding financial performance, and
the NCIB and ASPP. The forward-looking events and circumstances
discussed in this release may not occur and could differ materially
as a result of known and unknown risk factors and uncertainties
affecting HLS, including risks relating to the specialty
pharmaceutical industry, risks related to the regulatory approval
process, economic factors and many other factors beyond the control
of HLS. Forward-looking statements and information by their nature
are based on assumptions and involve known and unknown risks,
uncertainties and other factors which may cause HLS's actual
results, performance or achievements, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statement
or information. Accordingly, readers should not place undue
reliance on any forward-looking statements or information. A
discussion of the material risks and assumptions associated with
this release can be found in the Company's Annual Information Form
dated March 16, 2022, and
Management's Discussion and Analysis dated November 9, 2022, both of which have been filed
on SEDAR and can be accessed at www.sedar.com. Accordingly, readers
should not place undue reliance on any forward-looking statements
or information. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they
are made and HLS undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
HLS THERAPEUTICS
INC.
|
INTERIM CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
|
Unaudited
|
[in thousands of U.S.
dollars]
|
|
|
|
|
|
As at
|
As at
|
|
|
September 30,
2022
|
December 31,
2021
|
|
|
|
|
ASSETS
|
|
|
|
Current
|
|
|
|
Cash and cash
equivalents
|
|
21,279
|
21,179
|
Accounts
receivable
|
|
10,167
|
11,511
|
Inventories
|
|
10,075
|
8,925
|
Income taxes
recoverable
|
|
167
|
—
|
Prepaid expenses and
other current assets
|
|
3,903
|
2,136
|
Total current
assets
|
|
45,591
|
43,751
|
Property, plant and
equipment
|
|
1,266
|
1,569
|
Intangible
assets
|
|
202,267
|
229,181
|
Deferred tax
asset
|
|
551
|
690
|
Other non-current
assets
|
|
660
|
714
|
Total assets
|
|
250,335
|
275,905
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Current
|
|
|
|
Accounts payable and
accrued liabilities
|
|
13,285
|
10,596
|
Provisions
|
|
2,751
|
3,472
|
Debt and other
liabilities
|
|
15,139
|
13,507
|
Income taxes
payable
|
|
—
|
97
|
Total current
liabilities
|
|
31,175
|
27,672
|
Debt and other
liabilities
|
|
86,967
|
86,844
|
Deferred tax
liability
|
|
747
|
653
|
Total
liabilities
|
|
118,889
|
115,169
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Share
capital
|
|
265,629
|
265,917
|
Contributed
surplus
|
|
13,325
|
11,717
|
Accumulated other
comprehensive income (loss)
|
|
(6,605)
|
2,959
|
Deficit
|
|
(140,903)
|
(119,857)
|
Total shareholders'
equity
|
|
131,446
|
160,736
|
Total liabilities and
shareholders' equity
|
250,335
|
275,905
|
HLS THERAPEUTICS
INC.
|
INTERIM CONSOLIDATED
STATEMENTS OF LOSS
|
Unaudited
|
[in thousands of U.S.
dollars, except per share amounts]
|
|
|
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
|
Revenue
|
|
15,704
|
15,060
|
45,792
|
44,319
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
Cost of product
sales
|
|
1,357
|
1,180
|
3,464
|
2,850
|
Selling and
marketing
|
|
4,306
|
3,354
|
12,677
|
10,253
|
Medical, regulatory and
patient support
|
|
1,498
|
1,337
|
4,121
|
4,171
|
General and
administrative
|
|
2,527
|
2,266
|
7,040
|
6,893
|
Stock-based
compensation
|
|
125
|
(113)
|
2,170
|
1,825
|
Amortization and
depreciation
|
|
8,834
|
7,372
|
25,710
|
22,219
|
Finance and related
costs, net
|
|
1,489
|
1,448
|
2,852
|
4,307
|
Transaction and other
costs
|
|
69
|
8
|
4,956
|
92
|
Loss before income
taxes
|
|
(4,501)
|
(1,792)
|
(17,198)
|
(8,291)
|
Income tax expense
(recovery)
|
|
(91)
|
187
|
(29)
|
638
|
Net loss for the
period
|
|
(4,410)
|
(1,979)
|
(17,169)
|
(8,929)
|
|
|
|
|
Net loss per
share:
|
|
|
|
Basic and
diluted
|
|
$(0.14)
|
$(0.06)
|
$(0.53)
|
$(0.28)
|
HLS THERAPEUTICS
INC.
|
INTERIM CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
|
Unaudited
|
[in thousands of U.S.
dollars]
|
|
|
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
Net loss for the
period
|
(4,410)
|
(1,979)
|
(17,198)
|
(8,929)
|
|
|
|
|
|
Item that may be
reclassified subsequently to net loss
|
|
|
|
|
Unrealized
foreign currency translation adjustment
|
(7,578)
|
(4,039)
|
(9,564)
|
141
|
Comprehensive loss
for the period
|
(11,988)
|
(6,018)
|
(26,733)
|
(8,788)
|
HLS THERAPEUTICS
INC.
|
INTERIM CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
|
Unaudited
|
[in thousands of U.S.
dollars]
|
|
|
|
|
|
|
|
Share
capital
|
Contributed
surplus
|
Accumulated
other
comprehensive
income (loss)
|
Deficit
|
Total
|
|
|
|
|
|
|
|
Balance, December
31, 2021
|
|
265,917
|
11,717
|
2,959
|
(119,857)
|
160,736
|
Stock options
exercised
|
|
251
|
(67)
|
—
|
—
|
184
|
Shares
repurchased
|
|
(539)
|
—
|
—
|
(109)
|
(648)
|
Share purchase
obligation
|
|
—
|
(255)
|
—
|
—
|
(255)
|
Stock option
expense
|
|
—
|
1,930
|
—
|
—
|
1,930
|
Net loss for the
period
|
|
—
|
—
|
—
|
(17,169)
|
(17,169)
|
Dividends
declared
|
|
—
|
—
|
—
|
(3,768)
|
(3,768)
|
Unrealized foreign
currency
translation adjustment
|
|
—
|
—
|
(9,564)
|
—
|
(9,564)
|
Balance, September
30, 2022
|
|
265,629
|
13,325
|
(6,605)
|
(140,903)
|
131,446
|
|
|
|
|
|
|
|
Balance, December
31, 2020
|
|
257,411
|
11,393
|
2,020
|
(101,575)
|
169,249
|
Warrants
exercised
|
|
3,203
|
(192)
|
—
|
—
|
3,011
|
Stock options
exercised
|
|
4,976
|
(1,314)
|
—
|
—
|
3,662
|
Shares
repurchased
|
|
(29)
|
—
|
—
|
(18)
|
(47)
|
Stock option
expense
|
|
—
|
1,490
|
—
|
—
|
1,490
|
Net loss for the
period
|
|
—
|
—
|
—
|
(8,929)
|
(8,929)
|
Dividends
declared
|
|
—
|
—
|
—
|
(3,878)
|
(3,878)
|
Unrealized foreign
currency
translation adjustment
|
|
—
|
—
|
141
|
—
|
141
|
Balance, September
30, 2021
|
|
265,561
|
11,377
|
2,161
|
(114,400)
|
164,699
|
HLS THERAPEUTICS
INC.
|
INTERIM CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
Unaudited
|
[in thousands of U.S.
dollars]
|
|
|
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
Net loss for the
period
|
(4,410)
|
(1,979)
|
(17,169)
|
(8,929)
|
Adjustments to
reconcile net loss to cash provided
by operating
activities
|
|
|
Stock-based
compensation
|
125
|
(113)
|
2,170
|
1,825
|
Amortization and
depreciation
|
8,834
|
7,372
|
25,710
|
22,219
|
Impairment
charge
|
—
|
—
|
3,051
|
—
|
Accreted
interest
|
200
|
209
|
612
|
577
|
Fair value adjustment
on financial assets and liabilities
|
(397)
|
(478)
|
(2,567)
|
(1,173)
|
Deferred income
taxes
|
(196)
|
254
|
233
|
519
|
Net change in non-cash
working capital balances related to operations
|
(5)
|
(1,714)
|
1,381
|
(2,587)
|
Cash provided by
operating activities
|
4,151
|
3,551
|
13,421
|
12,451
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
Additions to property,
plant and equipment
|
(12)
|
(10)
|
(36)
|
(25)
|
Royalty milestone
payment
|
(10,000)
|
—
|
(10,000)
|
—
|
Rights
acquisitions
|
—
|
—
|
—
|
(3,820)
|
Other additions to
intangible assets
|
—
|
(192)
|
(92)
|
(243)
|
Cash used in
investing activities
|
(10,012)
|
(202)
|
(10,128)
|
(4,088)
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
Stock options
exercised
|
12
|
1,531
|
184
|
3,662
|
Warrants
exercised
|
—
|
66
|
—
|
986
|
Shares
repurchased
|
(270)
|
(47)
|
(648)
|
(47)
|
Dividends
paid
|
(1,220)
|
(1,276)
|
(3,769)
|
(3,853)
|
Revolver
drawdown
|
10,000
|
—
|
10,000
|
—
|
Repayment of credit
agreement borrowing
|
(1,389)
|
(3,000)
|
(7,389)
|
(7,500)
|
Debt costs
|
(639)
|
—
|
(639)
|
—
|
Lease
payments
|
(162)
|
(159)
|
(501)
|
(476)
|
Cash used in
(provided by) financing activities
|
6,332
|
(2,885)
|
(2,762)
|
(7,228)
|
|
|
|
|
|
Net increase in cash
and cash equivalents during the period
|
471
|
464
|
531
|
1,135
|
Foreign currency
translation
|
(352)
|
(75)
|
(431)
|
(11)
|
Cash and cash
equivalents, beginning of period
|
21,160
|
21,347
|
21,179
|
20,612
|
Cash and cash
equivalents, end of period
|
21,279
|
21,736
|
21,279
|
21,736
|
|
|
|
SOURCE HLS Therapeutics Inc.