amph_Current_Folio_8K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event Reported): November 7, 2019

 

Amphastar Pharmaceuticals, Inc.

(Exact Name of Registrant as Specified in Charter)

 

 

 

 

Delaware

001-36509

33-0702205

(State or Other Jurisdiction of
Incorporation)

(Commission File Number)

(I.R.S. Employer Identification
Number)

 

 

 

 

11570 6th Street

 

Rancho Cucamonga, California

91730

(Address of Principal Executive Offices)

(Zip Code)

 

Registrant's telephone number, including area code: (909) 980-9484

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate  box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to  Rule  14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

 

 

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

 

AMPH

 

The NASDAQ Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

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.

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On November 7, 2019, Amphastar Pharmaceuticals, Inc. issued a press release announcing its financial results for the quarter ended September  30, 2019. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits:

 

 

 

 

Exhibit No.

    

Description

99.1

 

Press release, dated November 7, 2019, issued by Amphastar Pharmaceuticals, Inc.

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

Date: November 7, 2019

Amphastar Pharmaceuticals,  Inc.

 

 

 

By:

/s/ WILLIAM J. PETERS

 

 

William J. Peters

 

 

Chief Financial Officer and Senior Vice President

 

amph_Ex_99_1

EXHIBIT 99.1

 

Amphastar Pharmaceuticals Reports Financial Results for the Three Months Ended September  30, 2019

 

Reports Net Revenues of $80.1 Million for the Three Months Ended September 30, 2019

 

RANCHO CUCAMONGA, CA –  November 7, 2019  – Amphastar Pharmaceuticals, Inc. (NASDAQ: AMPH) (“Amphastar” or the “Company”) today reported results for the three months ended September  30, 2019.

 

Third Quarter Highlights

 

·

Net revenues of $80.1 million for the third quarter

·

GAAP net income of $1.3 million, or $0.03 per share, for the third quarter

·

Adjusted non-GAAP net income of $5.2 million, or $0.10 per share, for the third quarter

 

Dr. Jack Zhang, Amphastar’s Chief Executive Officer, commented: “A significant accomplishment in the third quarter was the successful ramp up of our marketing efforts for Primatene® Mist. We are pleased to announce we started shipping Primatene® Mist to Walmart in October. Meanwhile, our pipeline of both generic and proprietary candidates continues to move ahead. Additionally, we recently had another complex ANDA accepted for filing.”

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 

 

September 30, 

 

 

 

2019

 

2018

 

2019

 

2018

 

 

 

(in thousands, except per share data)

 

Net revenues

    

$

80,137

    

$

75,543

    

$

238,974

    

$

204,976

 

GAAP net income (loss) attributable to Amphastar

 

$

1,310

 

$

2,389

 

$

49,965

 

$

(7,605)

 

Adjusted non-GAAP net income attributable to Amphastar*

 

$

5,169

 

$

5,721

 

$

14,171

 

$

4,168

 

GAAP diluted EPS attributable to Amphastar shareholders

 

$

0.03

 

$

0.05

 

$

1.00

 

$

(0.16)

 

Adjusted non-GAAP diluted EPS attributable to Amphastar shareholders*

 

$

0.10

 

$

0.12

 

$

0.28

 

$

0.09

 


 * Adjusted non-GAAP net income attributable to Amphastar and Adjusted non-GAAP diluted EPS attributable to Amphastar shareholders are non-GAAP financial measures.  Please see the discussion in the section entitled “Non-GAAP Financial Measures” and the reconciliation of GAAP to non-GAAP financial measures in Table III of this press release.

 

Third Quarter Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

September 30, 

 

Change

 

 

 

2019

 

2018

 

Dollars

    

%

 

 

 

(in thousands)

 

 

 

Net revenues:

    

 

    

    

 

    

 

 

 

 

 

 

Lidocaine

 

$

11,670

 

$

9,875

 

$

1,795

 

18

%

Phytonadione

 

 

10,916

 

 

8,968

 

 

1,948

 

22

%

Naloxone

 

 

10,613

 

 

9,432

 

 

1,181

 

13

%

Enoxaparin

 

 

9,573

 

 

18,564

 

 

(8,991)

 

(48)

%

Medroxyprogesterone

 

 

7,879

 

 

7,552

 

 

327

 

 4

%

Epinephrine

 

 

3,756

 

 

1,881

 

 

1,875

 

100

%

Primatene® Mist

 

 

3,654

 

 

 —

 

 

3,654

 

N/A

 

Other finished pharmaceutical products

 

 

17,668

 

 

15,495

 

 

2,173

 

14

%

Total finished pharmaceutical products net revenues

 

$

75,729

 

$

71,767

 

$

3,962

 

 6

%

API

 

 

4,408

 

 

3,776

 

 

632

 

17

%

Total net revenues

 

$

80,137

 

$

75,543

 

$

4,594

 

 6

%

 

 

Changes in net revenues were primarily driven by:

 

·

Lidocaine sales increases due to a higher average selling price, as well as higher unit volumes

·

Phytonadione sales increases due to a  higher average selling price

·

Epinephrine and naloxone sales increases due to higher unit volumes

·

Sales of Primatene® Mist, which launched in December 2018

·

Increases in sales of other finished pharmaceutical products, including atropine, calcium chloride, and dextrose, which were in high demand due to market shortages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

September 30, 

 

Change

 

 

 

2019

 

2018

 

Dollars

    

%

 

 

 

(in thousands)

 

 

 

Net revenues

 

$

80,137

 

$

75,543

 

$

4,594

 

 6

%

Cost of revenues

 

 

44,885

 

 

46,283

 

 

(1,398)

 

(3)

%

Gross profit

 

$

35,252

 

$

29,260

 

$

5,992

 

20

%

as % of net revenues

 

 

44%

 

 

39%

 

 

 

 

 

 

 

Changes in cost of revenues and the resulting increase to gross margin were primarily driven by:

 

·

Sales of Primatene® Mist, which has higher margins

·

Increased sales of phytonadione, which has higher margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

September 30, 

 

Change

 

 

 

2019

 

2018

 

Dollars

    

%

 

 

 

(in thousands)

 

 

 

Selling, distribution and marketing

 

$

3,221

 

$

1,963

 

$

1,258

 

64

%

General and administrative

 

 

11,021

 

 

13,407

 

 

(2,386)

 

(18)

%

Research and development

 

 

18,606

 

 

11,340

 

 

7,266

 

64

%

 

·

Selling, distribution and marketing expenses increased primarily due to increased marketing expenses related to Primatene® Mist,  including the cost of a television and radio marketing campaign, which began in July 2019 

·

General and administrative expenses decreased primarily due to lower legal expenses 

·

Research and development expenses increased primarily due the development of active pharmaceutical ingredients and key components, and increased clinical trial expenses for our generic product pipeline, primarily for our inhalation abbreviated new drug applications, or ANDAs

 

Cash flow provided by operating activities for the nine months ended September  30, 2019, was $36.1 million.

Share Buyback Program

On November 4, 2019, the Company’s Board of Directors authorized an increase of $20 million to the Company’s share buyback program, which is expected to continue for an indefinite period of time. The primary goal of the program is to offset dilution created by the Company’s equity compensation programs.

Purchases may be made through the open market and private block transactions pursuant to Rule 10b5-1 plans, privately negotiated transactions, or other means, as determined by the Company’s management and in accordance with the requirements of the Securities and Exchange Commission and applicable laws.

The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, and other conditions.

Pipeline Information

 

The Company currently has five ANDAs, filed with the FDA targeting products with a market size of approximately  $1.1 billion, three biosimilar products in development targeting products with a market size of approximately $13 billion, and 11 generic products in development targeting products with a market size of approximately $13 billion. This market information is based on IQVIA data for the 12 months ended September  30, 2019. The Company’s proprietary pipeline includes a  new drug application for intranasal naloxone. The Company is currently developing three other proprietary products, which include injectable and intranasal dosage forms.

 

Amphastar’s Chinese subsidiary, ANP, currently has 14 Drug Master Files, or DMFs, on file with the FDA and is developing four additional DMFs.

 

Company Information

 

Amphastar is a specialty pharmaceutical company that focuses primarily on developing, manufacturing, marketing, and selling technically-challenging generic and proprietary injectable, inhalation, and intranasal products. Additionally, the Company sells insulin API products.  Most of the Company’s finished products are used in hospital or urgent care clinical settings and are primarily contracted and distributed through group purchasing organizations and drug wholesalers.  More information and resources are available at www.amphastar.com.

 

Amphastar’s logo and other trademarks or service marks of Amphastar, including, but not limited to Primatene®, Amphadase® and Cortrosyn®, are the property of Amphastar.

 

Non-GAAP Financial Measures

 

To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company is disclosing non-GAAP financial measures when providing financial results. The Company believes that an evaluation of its ongoing operations (and comparisons of its current operations with historical and future operations) would be difficult if the disclosure of its financial results were limited to financial measures prepared only in accordance with GAAP. As a result, the Company is disclosing certain non-GAAP results, including (i) Adjusted non-GAAP net income (loss) attributed to Amphastar and (ii) Adjusted non-GAAP diluted EPS attributed to Amphastar’s shareholders,  which exclude amortization expense, share-based compensation, impairment charges, and legal settlements, in order to supplement investors’ and other readers’ understanding and assessment of the Company’s financial performance because the Company’s management uses these measures internally for forecasting, budgeting, and measuring its operating performance. Whenever the Company uses such non-GAAP measures, it will provide a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures. Investors and other readers are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP measures to their most directly comparable GAAP measures set forth below and should consider non-GAAP measures only as a supplement to, not as a substitute for or as a superior measure to, measures of financial performance prepared in accordance with GAAP.

 

Conference Call Information

 

The Company will hold a conference call to discuss its financial results today,  November 7, 2019, at 2:00 p.m. Pacific Time.

 

To access the conference call, dial toll-free (877) 881-2595 or (315) 625-3083 for international callers, five minutes before the conference. The passcode for the conference call is 8097493. 

 

The call can also be accessed on the Investors page on the Company’s website at www.amphastar.com

 

Forward Looking Statements

 

All statements in this press release and in the conference call referenced above that are not historical are forward-looking statements, including, among other things, statements relating to the Company’s expectations regarding future financial performance, backlog, sales and marketing of its products, market size and growth, the timing of FDA filings or approvals, including the DMFs of ANP, the timing of product launches, acquisitions and other matters related to its pipeline of product candidates, its share buyback program and other future events. These statements are not historical facts but rather are based on Amphastar’s historical performance and its current expectations, estimates, and projections regarding Amphastar’s business, operations and other similar or related factors. Words such as “may,” “might,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expect,” “intend,” “plan,” “project,” “believe,” “estimate,” and other similar or related expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond Amphastar’s control.  Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in Amphastar’s filings with the Securities and Exchange Commission. You can locate these reports through the Company’s website at http://ir.amphastar.com and on the SEC’s website at www.sec.gov.  Amphastar undertakes no obligation to revise or update information in this press release or the conference call referenced above to reflect events or circumstances in the future, even if new information becomes available or if subsequent events cause Amphastar’s expectations to change.

 

Contact Information: 

 

Amphastar Pharmaceuticals, Inc.

Bill Peters

Chief Financial Officer

(909) 980-9484

Table I

Amphastar Pharmaceuticals, Inc.

Condensed Consolidated Statement of Operations

(Unaudited; in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 

 

September 30, 

 

 

    

2019

    

2018

    

2019

    

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

    

$

80,137

    

$

75,543

    

$

238,974

    

$

204,976

 

Cost of revenues

 

 

44,885

 

 

46,283

 

 

140,432

 

 

132,680

 

Gross profit

 

 

35,252

 

 

29,260

 

 

98,542

 

 

72,296

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, distribution, and marketing

 

 

3,221

 

 

1,963

 

 

9,354

 

 

5,560

 

General and administrative

 

 

11,021

 

 

13,407

 

 

39,774

 

 

36,074

 

Research and development

 

 

18,606

 

 

11,340

 

 

49,209

 

 

40,830

 

Total operating expenses

 

 

32,848

 

 

26,710

 

 

98,337

 

 

82,464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

2,404

 

 

2,550

 

 

205

 

 

(10,168)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating (expense) income, net

 

 

(822)

 

 

24

 

 

58,837

 

 

(347)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

1,582

 

 

2,574

 

 

59,042

 

 

(10,515)

 

Income tax provision (benefit)

 

 

598

 

 

958

 

 

13,292

 

 

(2,137)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

984

 

$

1,616

 

$

45,750

 

$

(8,378)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to non-controlling interests

 

$

(326)

 

$

(773)

 

$

(4,215)

 

$

(773)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Amphastar

 

$

1,310

 

$

2,389

 

$

49,965

 

$

(7,605)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to Amphastar shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.03

 

$

0.05

 

$

1.06

 

$

(0.16)

 

Diluted

 

$

0.03

 

$

0.05

 

$

1.00

 

$

(0.16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares used to compute net income (loss) per share attributable to Amphastar shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

47,239

 

 

46,241

 

 

47,030

 

 

46,437

 

Diluted

 

 

50,075

 

 

48,281

 

 

50,128

 

 

46,437

 

 

Table II

Amphastar Pharmaceuticals, Inc.

Condensed Consolidated Balance Sheet

(Unaudited; in thousands, except share data)

 

 

 

 

 

 

 

 

 

    

September 30, 

    

December 31, 

 

 

2019

 

2018

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

85,611

 

$

86,337

Restricted cash

 

 

1,865

 

 

1,865

Short-term investments

 

 

12,666

 

 

2,831

Restricted short-term investments

 

 

2,290

 

 

2,290

Accounts receivable, net

 

 

45,255

 

 

52,163

Inventories

 

 

109,854

 

 

69,322

Income tax refunds and deposits

 

 

890

 

 

49

Prepaid expenses and other assets

 

 

10,472

 

 

5,485

Total current assets

 

 

268,903

 

 

220,342

 

 

 

 

 

 

 

Property, plant, and equipment, net

 

 

222,158

 

 

210,418

Finance lease right-of-use assets

 

 

896

 

 

 —

Operating lease right-of-use assets

 

 

19,463

 

 

 —

Goodwill and intangible assets, net

 

 

41,139

 

 

42,267

Other assets

 

 

12,331

 

 

9,918

Deferred tax assets

 

 

20,746

 

 

30,618

Total assets

 

$

585,636

 

$

513,563

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

75,137

 

$

87,418

Income taxes payable

 

 

1,400

 

 

1,187

Current portion of long-term debt

 

 

6,969

 

 

18,229

Current portion of operating lease liabilities

 

 

3,090

 

 

 —

Total current liabilities

 

 

86,596

 

 

106,834

 

 

 

 

 

 

 

Long-term reserve for income tax liabilities

 

 

415

 

 

415

Long-term debt, net of current portion

 

 

38,079

 

 

31,984

Long-term operating lease liabilities, net of current portion

 

 

16,940

 

 

 —

Deferred tax liabilities

 

 

976

 

 

1,031

Other long-term liabilities

 

 

8,977

 

 

8,940

Total liabilities

 

 

151,983

 

 

149,204

Commitments and contingencies

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock: par value $0.0001; 20,000,000 shares authorized; no shares issued and outstanding

 

 

 

 

Common stock: par value $0.0001; 300,000,000 shares authorized; 52,399,044 and 47,199,907 shares issued and outstanding as of September 30, 2019 and 51,438,675 and 46,631,118 shares issued and outstanding as of December 31, 2018, respectively

 

 

 5

 

 

 5

Additional paid-in capital

 

 

361,705

 

 

344,434

Retained earnings

 

 

117,396

 

 

67,485

Accumulated other comprehensive loss

 

 

(5,848)

 

 

(4,013)

Treasury stock

 

 

(83,853)

 

 

(75,476)

Total Amphastar Pharmaceuticals, Inc. stockholders’ equity

 

 

389,405

 

 

332,435

Non-controlling interests

 

 

44,248

 

 

31,924

Total equity

 

 

433,653

 

 

364,359

Total liabilities and stockholders’ equity

 

$

585,636

 

$

513,563

 

Table III

Amphastar Pharmaceuticals, Inc.

Reconciliation of Non-GAAP Measures

(Unaudited; in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 

 

September 30, 

 

    

2019

    

2018

    

2019

    

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

    

$

984

    

$

1,616

    

$

45,750

    

$

(8,378)

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

Intangible amortization

 

 

251

 

 

271

 

 

777

 

 

1,722

Share-based compensation

 

 

4,294

 

 

3,908

 

 

13,000

 

 

12,770

Impairment of long-lived assets

 

 

11

 

 

10

 

 

194

 

 

390

Gain on litigation settlement

 

 

 —

 

 

 —

 

 

(59,900)

 

 

 —

Income tax provision (benefit) on pre-tax adjustments

 

 

(598)

 

 

(788)

 

 

10,422

 

 

(3,040)

Non-GAAP net income (loss)

 

$

4,942

 

$

5,017

 

$

10,243

 

$

3,464

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss attributable to non-controlling interests

 

$

(227)

 

$

(704)

 

$

(3,928)

 

$

(704)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income attributable to Amphastar

 

$

5,169

 

$

5,721

 

$

14,171

 

$

4,168

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share attributable to Amphastar shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.11

 

$

0.12

 

$

0.30

 

$

0.09

Diluted

 

$

0.10

 

$

0.12

 

$

0.28

 

$

0.09

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares used to compute non-GAAP net income per share attributable to Amphastar shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

47,239

 

 

46,241

 

 

47,030

 

 

46,437

Diluted

 

 

50,075

 

 

48,281

 

 

50,128

 

 

48,713

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling,

 

General

 

Research

 

Non-operating

 

Income

 

Non-controlling

 

 

Cost of

 

distribution

 

and

 

and

 

income

 

tax provision

 

interest

 

    

revenue

    

and marketing

    

administrative

    

development

    

(expense), net

    

(benefit)

    

adjustment

GAAP

 

$

44,885

 

$

3,221

 

$

11,021

 

$

18,606

 

$

(822)

 

$

598

 

$

(326)

Intangible amortization

 

 

(216)

 

 

 —

 

 

(35)

 

 

 —

 

 

 —

 

 

 —

 

 

12

Share-based compensation

 

 

(701)

 

 

(96)

 

 

(3,138)

 

 

(359)

 

 

 —

 

 

 —

 

 

107

Impairment of long-lived assets

 

 

(4)

 

 

 —

 

 

(11)

 

 

 4

 

 

 —

 

 

 —

 

 

 6

Gain on litigation settlement

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Income tax provision (benefit) on pre-tax adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

598

 

 

(26)

Non-GAAP

 

$

43,964

 

$

3,125

 

$

7,837

 

$

18,251

 

$

(822)

 

$

1,196

 

$

(227)

 

Reconciliation of Non-GAAP Measures (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling,

 

General

 

Research

 

Non-operating

 

Income

 

Non-controlling

 

 

Cost of

 

distribution

 

and

 

and

 

income

 

tax provision

 

interest

 

    

revenue

    

and marketing

    

administrative

    

development

    

(expense), net

    

(benefit)

    

adjustment

GAAP

 

$

46,283

 

$

1,963

 

$

13,407

 

$

11,340

 

$

24

 

$

958

 

$

(773)

Intangible amortization

 

 

(230)

 

 

 —

 

 

(41)

 

 

 —

 

 

 —

 

 

 —

 

 

11

Share-based compensation

 

 

(884)

 

 

(86)

 

 

(2,615)

 

 

(323)

 

 

 —

 

 

 —

 

 

68

Impairment of long-lived assets

 

 

 —

 

 

 —

 

 

 —

 

 

(10)

 

 

 —

 

 

 —

 

 

 1

Income tax provision (benefit) on pre-tax adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

788

 

 

(11)

Non-GAAP

 

$

45,169

 

$

1,877

 

$

10,751

 

$

11,007

 

$

24

 

$

1,746

 

$

(704)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling,

 

General

 

Research

 

Non-operating

 

Income

 

Non-controlling

 

 

Cost of

 

distribution

 

and

 

and

 

income

 

tax provision

 

interest

 

    

revenue

    

and marketing

    

administrative

    

development

    

(expense), net

    

(benefit)

    

adjustment

GAAP

 

$

140,432

 

$

9,354

 

$

39,774

 

$

49,209

 

$

58,837

 

$

13,292

 

$

(4,215)

Intangible amortization

 

 

(669)

 

 

 —

 

 

(108)

 

 

 —

 

 

 —

 

 

 —

 

 

34

Share-based compensation

 

 

(2,939)

 

 

(285)

 

 

(8,577)

 

 

(1,199)

 

 

 —

 

 

 —

 

 

257

Impairment of long-lived assets

 

 

(69)

 

 

 —

 

 

(23)

 

 

(102)

 

 

 —

 

 

 —

 

 

55

Gain on litigation settlement

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(59,900)

 

 

 —

 

 

 —

Income tax provision (benefit) on pre-tax adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(10,422)

 

 

(59)

Non-GAAP

 

$

136,755

 

$

9,069

 

$

31,066

 

$

47,908

 

$

(1,063)

 

$

2,870

 

$

(3,928)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling,

 

General

 

Research

 

Non-operating

 

Income

 

Non-controlling

 

 

Cost of

 

distribution

 

and

 

and

 

income

 

tax provision

 

interest

 

    

revenue

    

and marketing

    

administrative

    

development