Jazz Pharmaceuticals Announces Full Year And Fourth Quarter 2016 Financial Results
"In 2016, we delivered solid growth for two of our key products, Xyrem and Defitelio, completed multiple corporate development transactions, including the Celator acquisition, received NDA approval and launched Defitelio in the U.S., began the rolling NDA submission for Vyxeos, and advanced and expanded our development pipeline, including two new oxybate product candidates that may offer new therapeutic options for narcolepsy patients," said
GAAP net income attributable to
Adjusted net income attributable to
Financial Highlights
Three Months Ended |
Year Ended December 31, |
||||||||||||||||||||
(In thousands, except per share amounts and percentages) |
2016 |
2015 |
Change |
2016 |
2015 |
Change |
|||||||||||||||
Total revenues |
$ |
396,621 |
$ |
340,881 |
16.4 |
% |
$ |
1,487,973 |
$ |
1,324,803 |
12.3 |
% |
|||||||||
GAAP net income attributable to Jazz Pharmaceuticals plc1 |
$ |
116,689 |
$ |
82,761 |
41.0 |
% |
$ |
396,831 |
$ |
329,535 |
20.4 |
% |
|||||||||
Adjusted net income attributable to Jazz Pharmaceuticals plc1,2 |
$ |
165,637 |
$ |
176,516 |
(6.2) |
% |
$ |
627,162 |
$ |
595,484 |
5.3 |
% |
|||||||||
GAAP EPS attributable to Jazz Pharmaceuticals plc1 |
$ |
1.91 |
$ |
1.32 |
44.7 |
% |
$ |
6.41 |
$ |
5.23 |
22.6 |
% |
|||||||||
Adjusted EPS attributable to Jazz Pharmaceuticals plc1,2 |
$ |
2.71 |
$ |
2.81 |
(3.6) |
% |
$ |
10.14 |
$ |
9.45 |
7.3 |
% |
1. |
In the fourth quarter of 2016, the company adopted Accounting Standards Update (ASU) No. 2016-09, "Improvements to Employee Share-Based Payment Accounting" effective as of January 1, 2016. See footnote 1 to the table titled "Reconciliations of GAAP Reported to Non-GAAP Adjusted Information" at the end of this press release. |
||||
2. |
Commencing with the second quarter of 2016, the company modified the calculation of its non-GAAP income tax provision in connection with the Securities and Exchange Commission's May 2016 guidance pertaining to non-GAAP financial measures. This modification is reflected in the company's 2015 and 2016 non-GAAP period results in the table above. See "Non-GAAP Financial Measures" below. |
Total Revenues
Three Months Ended |
Year Ended |
||||||||||||||
(In thousands) |
2016 |
2015 |
2016 |
2015 |
|||||||||||
Xyrem® (sodium oxybate) oral solution |
$ |
291,204 |
$ |
251,752 |
$ |
1,107,616 |
$ |
955,187 |
|||||||
Erwinaze® / Erwinase® (asparaginase Erwinia chrysanthemi) |
56,771 |
50,440 |
200,678 |
203,261 |
|||||||||||
Defitelio® (defibrotide sodium) / defibrotide |
29,672 |
18,472 |
108,952 |
70,731 |
|||||||||||
Prialt® (ziconotide) intrathecal infusion |
6,055 |
6,496 |
29,120 |
26,440 |
|||||||||||
Psychiatry |
2,909 |
8,760 |
17,653 |
37,135 |
|||||||||||
Other |
6,003 |
3,004 |
13,242 |
24,065 |
|||||||||||
Product sales, net |
392,614 |
338,924 |
1,477,261 |
1,316,819 |
|||||||||||
Royalties and contract revenues |
4,007 |
1,957 |
10,712 |
7,984 |
|||||||||||
Total revenues |
$ |
396,621 |
$ |
340,881 |
$ |
1,487,973 |
$ |
1,324,803 |
Net product sales increased 12% in 2016 and 16% in the fourth quarter of 2016 compared to the same periods in 2015 primarily due to higher net product sales of Xyrem and Defitelio.
Xyrem net product sales increased 16% in both 2016 and in the fourth quarter of 2016 compared to the same periods in 2015.
Erwinaze/Erwinase net product sales decreased 1% in 2016 and increased 13% in the fourth quarter of 2016 compared to the same periods in 2015. In 2016, the company continued to experience supply challenges, which resulted in fluctuations in inventory levels and temporary disruptions to the company's ability to supply certain markets, including the U.S. The company expects that these temporary supply interruptions will continue in 2017.
Defitelio/defibrotide net product sales increased 54% in 2016 and 61% in the fourth quarter of 2016 compared to the same periods in 2015 primarily due to the U.S. launch of Defitelio in
Operating Expenses
Three Months Ended |
Year Ended |
||||||||||||||
(In thousands, except percentages) |
2016 |
2015 |
2016 |
2015 |
|||||||||||
GAAP: |
|||||||||||||||
Cost of product sales |
$ |
33,656 |
$ |
24,030 |
$ |
105,386 |
$ |
102,526 |
|||||||
Gross margin |
91.4 |
% |
92.9 |
% |
92.9 |
% |
92.2 |
% |
|||||||
Selling, general and administrative |
$ |
127,141 |
$ |
125,555 |
$ |
502,892 |
$ |
449,119 |
|||||||
% of total revenues |
32.1 |
% |
36.8 |
% |
33.8 |
% |
33.9 |
% |
|||||||
Research and development |
$ |
44,158 |
$ |
29,455 |
$ |
162,297 |
$ |
135,253 |
|||||||
% of total revenues |
11.1 |
% |
8.6 |
% |
10.9 |
% |
10.2 |
% |
|||||||
Acquired in-process research and development |
$ |
— |
$ |
— |
$ |
23,750 |
$ |
— |
|||||||
Impairment charges |
$ |
— |
$ |
31,523 |
$ |
— |
$ |
31,523 |
|||||||
Three Months Ended |
Year Ended |
||||||||||||||
(In thousands, except percentages) |
2016 |
2015 |
2016 |
2015 |
|||||||||||
Non-GAAP adjusted: |
|||||||||||||||
Cost of product sales |
$ |
32,177 |
$ |
22,209 |
$ |
100,797 |
$ |
98,452 |
|||||||
Gross margin |
91.8 |
% |
93.4 |
% |
93.2 |
% |
92.5 |
% |
|||||||
Selling, general and administrative |
$ |
108,204 |
$ |
87,409 |
$ |
404,837 |
$ |
355,422 |
|||||||
% of total revenues |
27.3 |
% |
25.6 |
% |
27.2 |
% |
26.8 |
% |
|||||||
Research and development |
$ |
39,619 |
$ |
26,017 |
$ |
146,466 |
$ |
96,678 |
|||||||
% of total revenues |
10.0 |
% |
7.6 |
% |
9.8 |
% |
7.3 |
% |
Operating expenses changed over the prior year periods primarily due to the following:
- Selling, general and administrative (SG&A) expenses increased in 2016 and in the fourth quarter of 2016 compared to the same periods in 2015 on a GAAP and on a non-GAAP adjusted basis primarily due to higher headcount and other expenses resulting from the expansion of the company's business, and included a one-time contract termination fee of
$11.6 million to eliminate potential future royalty payments related to VyxeosTM (cytarabine and daunorubicin liposome injection). - Research and development (R&D) expenses increased in 2016 and in the fourth quarter of 2016 compared to the same periods in 2015 on a GAAP and on a non-GAAP adjusted basis primarily due to increased expenses for the development of JZP-110; increased investments in oxybate-related R&D programs; the initiation of a clinical study of defibrotide for the prevention of veno-occlusive disease (VOD); costs related to the rolling new drug application (NDA) submission for Vyxeos; and an increase in headcount required to support these activities. GAAP R&D expenses for 2015 included a
$25.0 million milestone in connection with the acceptance for filing by theU.S. Food and Drug Administration (FDA ) of the NDA for defibrotide. - Acquired in-process research and development expense in 2016 related to upfront and option payments totaling
$15.0 million toPfenex Inc. under an agreement in which the company was granted worldwide rights to develop and commercialize multiple early-stage hematology product candidates and an upfront payment of$8.8 million that the company made in connection with its acquisition of intellectual property and know-how related to recombinant crisantaspase. - Impairment charges of
$31.5 million in 2015 resulted from the termination of the JZP-416 study.
Cash Flow and Balance Sheet
As of December 31, 2016, cash, cash equivalents and investments were
Recent Developments
In
In
2017 Financial Guidance
Revenues |
$1,625-$1,700 |
Total net product sales |
$1,617-$1,692 |
-Xyrem net sales |
$1,220-$1,250 |
-Erwinaze/Erwinase net sales |
$205-$225 |
-Defitelio/defibrotide net sales |
$130-$150 |
-Vyxeos (CPX-351) net sales1 |
$10-$20 |
GAAP gross margin % |
93% |
Non-GAAP adjusted gross margin %2,5 |
93% |
GAAP SG&A expenses |
$515-$550 |
Non-GAAP adjusted SG&A expenses3,5 |
$440-$460 |
GAAP R&D expenses |
$195-$220 |
Non-GAAP adjusted R&D expenses4,5 |
$165-$180 |
GAAP net income per diluted share |
$6.55-$7.55 |
Non-GAAP adjusted net income per diluted share5 |
$10.70-$11.30 |
1. |
Guidance assumes FDA approval and launch of Vyxeos (CPX-351) in the U.S. in 2017. |
|||
2. |
Excludes $5 million of share-based compensation expense from estimated GAAP gross margin. |
|||
3. |
Excludes $75-$90 million of share-based compensation expense from estimated GAAP SG&A expenses. |
|||
4. |
Excludes $20-$25 million of share-based compensation expense and $10-$15 million of milestone payments from estimated GAAP R&D expenses. |
|||
5. |
See "Non-GAAP Financial Measures" below. Reconciliations of non-GAAP adjusted guidance measures are included above and in the table titled "Reconciliation of GAAP to Non-GAAP Adjusted 2017 Net Income Guidance" at the end of this press release. |
Conference Call Details
A replay of the conference call will be available through
About
Non-GAAP Financial Measures
To supplement
The company believes that each of these non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors and analysts. In particular, the company believes that each of these non-GAAP financial measures, when considered together with the company's financial information prepared in accordance with GAAP, can enhance investors' and analysts' ability to meaningfully compare the company's results from period to period and to its forward-looking guidance, and to identify operating trends in the company's business. In addition, these non-GAAP financial measures are regularly used by investors and analysts to model and track the company's financial performance.
These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures; should be read in conjunction with the company's condensed consolidated financial statements prepared in accordance with GAAP; have no standardized meaning prescribed by GAAP; and are not prepared under any comprehensive set of accounting rules or principles. In addition, from time to time in the future there may be other items that the company may exclude for purposes of its non-GAAP financial measures; and the company has ceased, and may in the future cease, to exclude items that it has historically excluded for purposes of its non-GAAP financial measures. Likewise, the company may determine to modify the nature of its adjustments to arrive at its non-GAAP financial measures. In this regard, the company modified the calculation of its non-GAAP income tax provision commencing in the second quarter of 2016, and accordingly, the income tax effect of the adjustments between GAAP reported and non-GAAP adjusted results takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). For purposes of comparability, the non-GAAP income tax provision and the corresponding income tax adjustment to arrive at non-GAAP adjusted net income attributable to
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements, including, but not limited to, statements related to
JAZZ PHARMACEUTICALS PLC |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||
Revenues: |
|||||||||||||||
Product sales, net |
$ |
392,614 |
$ |
338,924 |
$ |
1,477,261 |
$ |
1,316,819 |
|||||||
Royalties and contract revenues |
4,007 |
1,957 |
10,712 |
7,984 |
|||||||||||
Total revenues |
396,621 |
340,881 |
1,487,973 |
1,324,803 |
|||||||||||
Operating expenses: |
|||||||||||||||
Cost of product sales (excluding amortization and impairment of intangible assets) |
33,656 |
24,030 |
105,386 |
102,526 |
|||||||||||
Selling, general and administrative |
127,141 |
125,555 |
502,892 |
449,119 |
|||||||||||
Research and development |
44,158 |
29,455 |
162,297 |
135,253 |
|||||||||||
Acquired in-process research and development |
— |
— |
23,750 |
— |
|||||||||||
Intangible asset amortization |
26,162 |
23,690 |
101,994 |
98,162 |
|||||||||||
Impairment charges |
— |
31,523 |
— |
31,523 |
|||||||||||
Total operating expenses |
231,117 |
234,253 |
896,319 |
816,583 |
|||||||||||
Income from operations |
165,504 |
106,628 |
591,654 |
508,220 |
|||||||||||
Interest expense, net |
(19,131) |
(12,210) |
(61,942) |
(56,917) |
|||||||||||
Foreign currency gain |
4,940 |
2,091 |
3,372 |
1,445 |
|||||||||||
Loss on extinguishment and modification of debt |
— |
— |
(638) |
(16,815) |
|||||||||||
Income before income tax provision and equity in loss of investee |
151,313 |
96,509 |
532,446 |
435,933 |
|||||||||||
Income tax provision |
34,348 |
13,748 |
135,236 |
106,399 |
|||||||||||
Equity in loss of investee |
276 |
— |
379 |
— |
|||||||||||
Net income |
116,689 |
82,761 |
396,831 |
329,534 |
|||||||||||
Net loss attributable to noncontrolling interests |
— |
— |
— |
(1) |
|||||||||||
Net income attributable to Jazz Pharmaceuticals plc |
$ |
116,689 |
$ |
82,761 |
$ |
396,831 |
$ |
329,535 |
|||||||
Net income attributable to Jazz Pharmaceuticals plc per ordinary share: |
|||||||||||||||
Basic |
$ |
1.95 |
$ |
1.35 |
$ |
6.56 |
$ |
5.38 |
|||||||
Diluted |
$ |
1.91 |
$ |
1.32 |
$ |
6.41 |
$ |
5.23 |
|||||||
Weighted-average ordinary shares used in per share calculations - basic |
59,930 |
61,492 |
60,500 |
61,232 |
|||||||||||
Weighted-average ordinary shares used in per share calculations - diluted |
61,033 |
62,928 |
61,870 |
63,036 |
JAZZ PHARMACEUTICALS PLC |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In thousands) |
|||||||
(Unaudited) |
|||||||
December 31, |
|||||||
2016 |
2015 |
||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
365,963 |
$ |
988,785 |
|||
Investments |
60,000 |
— |
|||||
Accounts receivable, net of allowances |
234,244 |
209,685 |
|||||
Inventories |
34,051 |
19,451 |
|||||
Prepaid expenses |
24,501 |
20,699 |
|||||
Other current assets |
29,310 |
19,047 |
|||||
Total current assets |
748,069 |
1,257,667 |
|||||
Property and equipment, net |
107,490 |
85,572 |
|||||
Intangible assets, net |
3,012,001 |
1,185,606 |
|||||
Goodwill |
893,810 |
657,139 |
|||||
Deferred tax assets, net, non-current |
15,060 |
130,148 |
|||||
Deferred financing costs |
9,737 |
7,209 |
|||||
Other non-current assets |
14,060 |
9,271 |
|||||
Total assets |
$ |
4,800,227 |
$ |
3,332,612 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
22,415 |
$ |
21,807 |
|||
Accrued liabilities |
193,268 |
164,070 |
|||||
Current portion of long-term debt |
36,094 |
37,587 |
|||||
Income taxes payable |
4,506 |
1,808 |
|||||
Deferred revenue |
1,123 |
1,370 |
|||||
Total current liabilities |
257,406 |
226,642 |
|||||
Deferred revenue, non-current |
2,601 |
3,721 |
|||||
Long-term debt, less current portion |
1,993,531 |
1,150,857 |
|||||
Deferred tax liability, net, non-current |
556,733 |
283,493 |
|||||
Other non-current liabilities |
112,617 |
69,253 |
|||||
Total shareholders' equity |
1,877,339 |
1,598,646 |
|||||
Total liabilities and shareholders' equity |
$ |
4,800,227 |
$ |
3,332,612 |
JAZZ PHARMACEUTICALS PLC |
|||||||||||||||
RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION |
|||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||
GAAP reported net income attributable to Jazz Pharmaceuticals plc (1) |
$ |
116,689 |
$ |
82,761 |
$ |
396,831 |
$ |
329,535 |
|||||||
Intangible asset amortization |
26,162 |
23,690 |
101,994 |
98,162 |
|||||||||||
Share-based compensation expense |
24,281 |
24,317 |
98,771 |
91,550 |
|||||||||||
Impairment charges |
— |
31,523 |
— |
31,523 |
|||||||||||
Upfront and milestone payments |
— |
— |
23,750 |
25,000 |
|||||||||||
Transaction and integration related costs |
674 |
18,000 |
13,644 |
18,155 |
|||||||||||
Expenses related to certain legal proceedings and restructuring |
— |
1,088 |
6,060 |
1,641 |
|||||||||||
Non-cash interest expense |
5,715 |
5,390 |
22,133 |
22,738 |
|||||||||||
Loss on extinguishment and modification of debt |
— |
— |
638 |
16,815 |
|||||||||||
Income tax effect of adjustments (2) |
(7,884) |
(10,253) |
(36,659) |
(39,633) |
|||||||||||
Adjustments for amount attributable to noncontrolling interests (3) |
— |
— |
— |
(2) |
|||||||||||
Non-GAAP adjusted net income attributable to Jazz Pharmaceuticals plc (1)(4) |
$ |
165,637 |
$ |
176,516 |
$ |
627,162 |
$ |
595,484 |
|||||||
GAAP reported net income attributable to Jazz Pharmaceuticals plc per diluted share (1) |
$ |
1.91 |
$ |
1.32 |
$ |
6.41 |
$ |
5.23 |
|||||||
Non-GAAP adjusted net income attributable to Jazz Pharmaceuticals plc per diluted share (1)(4) |
$ |
2.71 |
$ |
2.81 |
$ |
10.14 |
$ |
9.45 |
|||||||
Weighted-average ordinary shares used in diluted per share calculations |
61,033 |
62,928 |
61,870 |
63,036 |
(1) |
In the fourth quarter of 2016, the company early adopted ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting", which requires that all excess tax benefits and tax deficiencies be recognized as income tax benefit or expense in the income statement and no longer delays recognition of a tax benefit until the tax benefit is realized through a reduction to taxes payable. Upon adoption, we recorded a $107.7 million cumulative-effect adjustment to opening retained earnings and non-current deferred tax assets as of January 1, 2016 for previously unrecognized excess tax benefits and recognized excess tax benefits of $7.7 million in our income tax provision for the year ended December 31, 2016. As a result, both GAAP reported net income and non-GAAP adjusted net income increased by $7.7 million, and GAAP reported net income per diluted share and non-GAAP adjusted net income per diluted share increased by $0.11 and $0.10, respectively, for the year ended December 31, 2016. |
The following table sets forth the effect of the adoption of ASU No. 2016-09 on amounts previously reported: |
|||||||||||
2016 |
|||||||||||
March 31 |
June 30 |
September 30 |
|||||||||
GAAP net income, as previously reported |
$ |
74,121 |
$ |
111,282 |
$ |
87,145 |
|||||
Adoption of ASU No. 2016-09 |
1,691 |
3,220 |
2,683 |
||||||||
GAAP net income, as recast |
$ |
75,812 |
$ |
114,502 |
$ |
89,828 |
|||||
GAAP net income per diluted share, as previously reported |
$ |
1.19 |
$ |
1.80 |
$ |
1.41 |
|||||
Adoption of ASU No. 2016-09 |
0.02 |
0.05 |
0.04 |
||||||||
GAAP net income per diluted share, as recast |
$ |
1.21 |
$ |
1.85 |
$ |
1.45 |
|||||
2016 |
|||||||||||
March 31 |
June 30 |
September 30 |
|||||||||
Non-GAAP adjusted net income, as previously reported |
$ |
132,877 |
$ |
162,584 |
$ |
158,470 |
|||||
Adoption of ASU No. 2016-09 |
1,691 |
3,220 |
2,683 |
||||||||
Non-GAAP adjusted net income, as recast |
$ |
134,568 |
$ |
165,804 |
$ |
161,153 |
|||||
Non-GAAP adjusted net income per diluted share, as previously reported |
$ |
2.13 |
$ |
2.63 |
$ |
2.57 |
|||||
Adoption of ASU No. 2016-09 |
0.02 |
0.04 |
0.04 |
||||||||
Non-GAAP adjusted net income per diluted share, as recast |
$ |
2.15 |
$ |
2.67 |
$ |
2.61 |
(2) |
The income tax effect of the adjustments between GAAP reported and non-GAAP adjusted net income takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). |
(3) |
The noncontrolling interests' share of the above adjustments, as applicable. |
(4) |
Commencing with the second quarter of 2016, the company modified the calculation of its non-GAAP income tax provision in connection with the Securities and Exchange Commission's May 2016 guidance pertaining to non-GAAP financial measures. This modification is reflected in the company's 2015 and 2016 non-GAAP period results in the table above. See "Non-GAAP Financial Measures". |
JAZZ PHARMACEUTICALS PLC |
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RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION |
|||||||||||||||||||||||
CERTAIN LINE ITEMS AND OTHER INFORMATION |
|||||||||||||||||||||||
(In thousands, except per share amounts and percentages) |
|||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||||
December 31, 2016 |
December 31, 2015 |
||||||||||||||||||||||
GAAP |
Adjustments |
Non-GAAP |
GAAP |
Adjustments |
Non-GAAP |
||||||||||||||||||
Total revenues |
$ |
396,621 |
$ |
— |
$ |
396,621 |
$ |
340,881 |
$ |
— |
$ |
340,881 |
|||||||||||
Cost of product sales (excluding amortization and impairment of intangible assets) |
33,656 |
(1,479) |
(a) |
32,177 |
24,030 |
(1,821) |
(a) |
22,209 |
|||||||||||||||
Selling, general and administrative |
127,141 |
(18,937) |
(b) |
108,204 |
125,555 |
(38,146) |
(b) |
87,409 |
|||||||||||||||
Research and development |
44,158 |
(4,539) |
(c) |
39,619 |
29,455 |
(3,438) |
(c) |
26,017 |
|||||||||||||||
Intangible asset amortization |
26,162 |
(26,162) |
— |
23,690 |
(23,690) |
— |
|||||||||||||||||
Impairment charges |
— |
— |
— |
31,523 |
(31,523) |
— |
|||||||||||||||||
Interest expense, net |
19,131 |
(5,715) |
(d) |
13,416 |
12,210 |
(5,390) |
(d) |
6,820 |
|||||||||||||||
Foreign currency gain |
(4,940) |
— |
(4,940) |
(2,091) |
— |
(2,091) |
|||||||||||||||||
Income before income tax provision and equity in loss of investee |
151,313 |
56,832 |
(e) |
208,145 |
96,509 |
104,008 |
(e) |
200,517 |
|||||||||||||||
Income tax provision |
34,348 |
7,884 |
(f) |
42,232 |
13,748 |
10,253 |
(f) |
24,001 |
|||||||||||||||
Effective tax rate (g) |
22.7 |
% |
20.3 |
% |
14.2 |
% |
12.0 |
% |
|||||||||||||||
Equity in loss of investee |
276 |
— |
276 |
— |
— |
— |
|||||||||||||||||
Net income |
$ |
116,689 |
$ |
48,948 |
(h) |
$ |
165,637 |
$ |
82,761 |
$ |
93,755 |
(h) |
$ |
176,516 |
|||||||||
Net income per diluted share |
$ |
1.91 |
$ |
2.71 |
$ |
1.32 |
$ |
2.81 |
JAZZ PHARMACEUTICALS PLC |
|||||||||||||||||||||||
RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION |
|||||||||||||||||||||||
CERTAIN LINE ITEMS AND OTHER INFORMATION |
|||||||||||||||||||||||
(In thousands, except per share amounts and percentages) |
|||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||
Year Ended |
|||||||||||||||||||||||
December 31, 2016 |
December 31, 2015 |
||||||||||||||||||||||
GAAP |
Adjustments |
Non-GAAP |
GAAP |
Adjustments |
Non-GAAP |
||||||||||||||||||
Total revenues |
$ |
1,487,973 |
$ |
— |
$ |
1,487,973 |
$ |
1,324,803 |
$ |
— |
$ |
1,324,803 |
|||||||||||
Cost of product sales (excluding amortization and impairment of intangible assets) |
105,386 |
(4,589) |
(i) |
100,797 |
102,526 |
(4,074) |
(i) |
98,452 |
|||||||||||||||
Selling, general and administrative |
502,892 |
(98,055) |
(j) |
404,837 |
449,119 |
(93,697) |
(j) |
355,422 |
|||||||||||||||
Research and development |
162,297 |
(15,831) |
(k) |
146,466 |
135,253 |
(38,575) |
(k) |
96,678 |
|||||||||||||||
Acquired in-process research and development |
23,750 |
(23,750) |
— |
— |
— |
— |
|||||||||||||||||
Intangible asset amortization |
101,994 |
(101,994) |
— |
98,162 |
(98,162) |
— |
|||||||||||||||||
Impairment charges |
— |
— |
— |
31,523 |
(31,523) |
— |
|||||||||||||||||
Interest expense, net |
61,942 |
(22,133) |
(d) |
39,809 |
56,917 |
(22,738) |
(d) |
34,179 |
|||||||||||||||
Foreign currency gain |
(3,372) |
— |
(3,372) |
(1,445) |
— |
(1,445) |
|||||||||||||||||
Loss on extinguishment and modification of debt |
638 |
(638) |
— |
16,815 |
(16,815) |
— |
|||||||||||||||||
Income before income tax provision and equity in loss of investee |
532,446 |
266,990 |
(l) |
799,436 |
435,933 |
305,584 |
(l) |
741,517 |
|||||||||||||||
Income tax provision |
135,236 |
36,659 |
(f) |
171,895 |
106,399 |
39,633 |
(f) |
146,032 |
|||||||||||||||
Effective tax rate (g) |
25.4 |
% |
21.5 |
% |
24.4 |
% |
19.7 |
% |
|||||||||||||||
Equity in loss of investee |
379 |
— |
379 |
— |
— |
— |
|||||||||||||||||
Net income |
396,831 |
230,331 |
(m) |
627,162 |
329,534 |
265,951 |
(m) |
595,485 |
|||||||||||||||
Net income (loss) attributable to noncontrolling interests |
— |
— |
(n) |
— |
(1) |
2 |
(n) |
1 |
|||||||||||||||
Net income attributable to Jazz Pharmaceuticals plc |
$ |
396,831 |
$ |
230,331 |
(o) |
$ |
627,162 |
$ |
329,535 |
$ |
265,949 |
(o) |
$ |
595,484 |
|||||||||
Net income attributable to Jazz Pharmaceuticals plc per diluted share |
$ |
6.41 |
$ |
10.14 |
$ |
5.23 |
$ |
9.45 |
|||||||||||||||
Explanation of Adjustments and Certain Line Items (in thousands): |
|||||||||||
(a) |
Share-based compensation expense of $1,479 and $1,288 and expenses related to certain legal proceedings and restructuring of $0 and $533 for the three months ended December 31, 2016 and 2015, respectively. |
||||||||||
(b) |
Share-based compensation expense of $18,373 and $19,810, transaction and integration related costs of $564 and $18,000 and expenses related to certain legal proceedings and restructuring of $0 and $336 for the three months ended December 31, 2016 and 2015, respectively. |
||||||||||
(c) |
Share-based compensation expense of $4,429 and $3,219, transaction and integration related costs of $110 and $0 and expenses related to certain legal proceedings and restructuring of $0 and $219 for the three months ended December 31, 2016 and 2015, respectively. |
||||||||||
(d) |
Non-cash interest expense associated with debt discount and debt issuance costs for the respective three- and twelve-month periods. |
||||||||||
(e) |
Sum of adjustments (a) through (d) plus the adjustments for intangible asset amortization and impairment charges for the respective three-month period. |
||||||||||
(f) |
Income tax effect of the adjustments between GAAP reported and non-GAAP adjusted net income takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s) in the respective three-and twelve-month periods. |
||||||||||
(g) |
Income tax provision divided by income before income tax provision and equity in loss of investee for the respective three- and twelve-month periods. |
||||||||||
(h) |
Net of adjustments (e) and (f) for the respective three-month period. |
||||||||||
(i) |
Share-based compensation expense of $4,438 and $3,541, expenses related to certain legal proceedings and restructuring of $110 and $533 and transaction and integration related costs of $41 and $0 for the years ended December 31, 2016 and 2015, respectively. |
||||||||||
(j) |
Share-based compensation expense of $79,037 and $74,653, expenses related to certain legal proceedings and restructuring of $5,950 and $889 and transaction and integration related costs of $13,068 and $18,155 for the years ended December 31, 2016 and 2015, respectively. |
||||||||||
(k) |
Share-based compensation expense of $15,296 and $13,356, transaction and integration related costs of $535 and $0, milestone of $0 and $25,000 and expenses related to certain legal proceedings and restructuring of $0 and $219 for the years ended December 31, 2016 and 2015, respectively. |
||||||||||
(l) |
Sum of adjustments (i), (j), (k) and (d) plus the adjustments for acquired in-process research and development expenses, intangible asset amortization, impairment charges and loss on extinguishment and modification of debt, as applicable, for the respective twelve-month period. |
||||||||||
(m) |
Net of adjustments (l) and (f) for the respective twelve-month period. |
||||||||||
(n) |
Adjustments for amount attributable to noncontrolling interests for the respective twelve-month period. |
||||||||||
(o) |
Net of adjustments (m) and (n) for the respective twelve-month period. |
JAZZ PHARMACEUTICALS PLC |
|
RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED 2017 NET INCOME GUIDANCE |
|
(In millions, except per share amounts) |
|
(Unaudited) |
|
GAAP net income |
$400 - $460 |
Intangible asset amortization |
130 - 165 |
Share-based compensation expense |
100 - 120 |
Milestone payments |
10 - 15 |
Non-cash interest expense |
20 - 25 |
Income tax effect of adjustments |
(40) - (60) |
Non-GAAP adjusted net income |
$650 - $690 |
GAAP net income per diluted share |
$6.55-$7.55 |
Non-GAAP adjusted net income per diluted share |
$10.70-$11.30 |
Weighted-average ordinary shares used in per share calculations |
61 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/jazz-pharmaceuticals-announces-full-year-and-fourth-quarter-2016-financial-results-300415179.html
SOURCE
Investors, Kathee Littrell, Vice President, Investor Relations, Jazz Pharmaceuticals plc, Ireland, +353 1 634 7887, U.S., +1 650 496 2717; Jacqueline Kirby, Vice President, Corporate Affairs & Government Relations, Jazz Pharmaceuticals plc, Ireland, +353 1 634 7894, U.S., +1 215 867 4910