Jazz Pharmaceuticals Announces Third Quarter 2018 Financial Results
"We delivered strong top-line and bottom-line growth in the third quarter and recently achieved two significant regulatory milestones, with the receipt of marketing authorization for Vyxeos in the EU and
GAAP net income for the third quarter of 2018 was
Adjusted net income for the third quarter of 2018 was
Financial Highlights |
|||||||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended |
||||||||||||||||||||
(In thousands, except per share amounts and percentages) |
2018 |
2017 |
Change |
2018 |
2017 |
Change |
|||||||||||||||
Total revenues |
$ |
469,373 |
$ |
411,855 |
14 |
% |
$ |
1,414,465 |
$ |
1,182,294 |
20 |
% |
|||||||||
GAAP net income |
$ |
149,316 |
$ |
63,526 |
135 |
% |
$ |
287,628 |
$ |
255,641 |
13 |
% |
|||||||||
Adjusted net income |
$ |
221,655 |
$ |
197,649 |
12 |
% |
$ |
618,662 |
$ |
496,225 |
25 |
% |
|||||||||
GAAP EPS |
$ |
2.41 |
$ |
1.03 |
134 |
% |
$ |
4.68 |
$ |
4.17 |
12 |
% |
|||||||||
Adjusted EPS |
$ |
3.58 |
$ |
3.22 |
11 |
% |
$ |
10.06 |
$ |
8.09 |
24 |
% |
Total Revenues |
|||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
(In thousands) |
2018 |
2017 |
2018 |
2017 |
|||||||||||
Xyrem® (sodium oxybate) oral solution |
$ |
357,251 |
$ |
303,870 |
$ |
1,030,036 |
$ |
874,222 |
|||||||
Erwinaze® / Erwinase® (asparaginase Erwinia chrysanthemi) |
41,134 |
49,173 |
150,474 |
149,585 |
|||||||||||
Defitelio® (defibrotide sodium) / defibrotide |
36,177 |
31,213 |
111,736 |
97,351 |
|||||||||||
Vyxeos® (daunorubicin and cytarabine) liposome for injection |
21,038 |
9,719 |
75,217 |
9,719 |
|||||||||||
Prialt® (ziconotide) intrathecal infusion |
5,792 |
7,930 |
20,839 |
21,303 |
|||||||||||
Other |
3,805 |
6,066 |
13,837 |
19,124 |
|||||||||||
Product sales, net |
465,197 |
407,971 |
1,402,139 |
1,171,304 |
|||||||||||
Royalties and contract revenues |
4,176 |
3,884 |
12,326 |
10,990 |
|||||||||||
Total revenues |
$ |
469,373 |
$ |
411,855 |
$ |
1,414,465 |
$ |
1,182,294 |
Total revenues increased 14% in the third quarter of 2018 compared to the same period in 2017 due to the contribution of strong sales from Xyrem and Defitelio and the inclusion of a full quarter of Vyxeos sales.
Xyrem net product sales increased 18% in the third quarter of 2018 compared to the same period in 2017.
Erwinaze/Erwinase net product sales decreased 16% in the third quarter of 2018 compared to the same period in 2017. Ongoing supply challenges at the manufacturer,
Defitelio/defibrotide net product sales increased 16% in the third quarter of 2018 compared to the same period in 2017. The company continues to expect inter-quarter variability in Defitelio net sales given that hepatic veno-occlusive disease (VOD) is an ultra-rare disease.
Vyxeos net product sales were
Operating Expenses |
|||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
(In thousands, except percentages) |
2018 |
2017 |
2018 |
2017 |
|||||||||||
GAAP: |
|||||||||||||||
Cost of product sales |
$ |
26,574 |
$ |
31,203 |
$ |
95,207 |
$ |
84,940 |
|||||||
Gross margin |
94.3 |
% |
92.4 |
% |
93.2 |
% |
92.7 |
% |
|||||||
Selling, general and administrative |
$ |
155,873 |
$ |
124,523 |
$ |
521,665 |
$ |
401,106 |
|||||||
% of total revenues |
33.2 |
% |
30.2 |
% |
36.9 |
% |
33.9 |
% |
|||||||
Research and development |
$ |
51,160 |
$ |
47,362 |
$ |
169,959 |
$ |
132,447 |
|||||||
% of total revenues |
10.9 |
% |
11.5 |
% |
12.0 |
% |
11.2 |
% |
|||||||
Acquired in-process research and development |
$ |
— |
$ |
75,000 |
$ |
— |
$ |
77,000 |
|||||||
Impairment charges |
$ |
— |
$ |
— |
$ |
42,896 |
$ |
— |
|||||||
Income tax provision |
$ |
19,348 |
$ |
1,239 |
$ |
75,018 |
$ |
65,914 |
|||||||
Effective tax rate |
11.4 |
% |
1.9 |
% |
20.6 |
% |
20.5 |
% |
|||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
(In thousands, except percentages) |
2018 |
2017 |
2018 |
2017 |
|||||||||||
Non-GAAP adjusted: |
|||||||||||||||
Cost of product sales |
$ |
25,049 |
$ |
29,630 |
$ |
90,185 |
$ |
80,594 |
|||||||
Gross margin |
94.6 |
% |
92.7 |
% |
93.6 |
% |
93.1 |
% |
|||||||
Selling, general and administrative |
$ |
136,895 |
$ |
103,620 |
$ |
406,580 |
$ |
333,524 |
|||||||
% of total revenues |
29.2 |
% |
25.2 |
% |
28.7 |
% |
28.2 |
% |
|||||||
Research and development |
$ |
46,560 |
$ |
42,712 |
$ |
145,275 |
$ |
118,796 |
|||||||
% of total revenues |
9.9 |
% |
10.4 |
% |
10.3 |
% |
10.0 |
% |
|||||||
Income tax provision |
$ |
30,266 |
$ |
24,410 |
$ |
119,295 |
$ |
104,307 |
|||||||
Effective tax rate |
12.0 |
% |
11.0 |
% |
16.1 |
% |
17.4 |
% |
Operating expenses changed over the prior year period primarily due to the following:
- Selling, general and administrative (SG&A) expenses increased in the third quarter of 2018 compared to the same period in 2017 on a GAAP and on a non-GAAP adjusted basis due to higher expenses resulting from the expansion of the company's business, including the rolling launch of Vyxeos in the EU and pre-launch activities for solriamfetol in anticipation of
U.S. Food and Drug Administration (FDA ) approval. - Research and development (R&D) expenses increased in the third quarter of 2018 compared to the same period in 2017 on a GAAP and on a non-GAAP adjusted basis due to an increase in expenses related to the company's pre-clinical and clinical development programs and regulatory activities, including an increase in headcount to support these activities.
- Acquired in-process research and development expense in the third quarter of 2017 related to an upfront payment of
$75.0 million in connection with a collaboration and option agreement withImmunoGen, Inc.
Cash Flow and Balance Sheet
As of September 30, 2018, cash, cash equivalents and investments were
Recent Developments
In
In
In
In
In
2018 Financial Guidance |
|
Jazz Pharmaceuticals is updating its full year 2018 financial guidance as follows (in millions, except per share amounts and percentages): |
|
Revenues |
$1,860 - $1,900 |
Total net product sales |
$1,845 - $1,880 |
-Xyrem net sales |
$1,385 - $1,400 |
-Erwinaze/Erwinase net sales |
$165 - $175 |
-Defitelio/defibrotide net sales |
$145 - $165 |
-Vyxeos net sales |
$95 - $110 |
GAAP gross margin % |
93% |
Non-GAAP adjusted gross margin %1,5 |
93% |
GAAP SG&A expenses |
$671 - $694 |
Non-GAAP adjusted SG&A expenses2,5 |
$540 - $555 |
GAAP R&D expenses |
$223 - $241 |
Non-GAAP adjusted R&D expenses3,5 |
$195 - $210 |
GAAP effective tax rate |
19% - 22% |
Non-GAAP adjusted effective tax rate4,5 |
16% - 18% |
GAAP net income per diluted share |
$5.70 - $6.90 |
Non-GAAP adjusted net income per diluted share5 |
$12.75 - $13.25 |
1. |
Excludes $4-$8 million of share-based compensation expense from estimated GAAP gross margin. |
|||||||||
2. |
Excludes $74-$82 million of share-based compensation expense and $57 million of estimated loss contingency from estimated GAAP SG&A expenses. |
|||||||||
3. |
Excludes $17-$20 million of share-based compensation expense and $11 million of milestone payments from estimated GAAP R&D expenses. |
|||||||||
4. |
Excludes the income tax effect of adjustments between GAAP reported and non-GAAP adjusted net income. |
|||||||||
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 2018 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. Because of the non-standardized definitions of non-GAAP financial measures, the non-GAAP financial measures as used by
"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 September 30, |
Nine Months Ended September 30, |
||||||||||||||
2018 |
2017 |
2018 |
2017 |
||||||||||||
Revenues: |
|||||||||||||||
Product sales, net |
$ |
465,197 |
$ |
407,971 |
$ |
1,402,139 |
$ |
1,171,304 |
|||||||
Royalties and contract revenues |
4,176 |
3,884 |
12,326 |
10,990 |
|||||||||||
Total revenues |
469,373 |
411,855 |
1,414,465 |
1,182,294 |
|||||||||||
Operating expenses: |
|||||||||||||||
Cost of product sales (excluding amortization of intangible assets) |
26,574 |
31,203 |
95,207 |
84,940 |
|||||||||||
Selling, general and administrative |
155,873 |
124,523 |
521,665 |
401,106 |
|||||||||||
Research and development |
51,160 |
47,362 |
169,959 |
132,447 |
|||||||||||
Intangible asset amortization |
46,989 |
47,313 |
154,955 |
99,164 |
|||||||||||
Impairment charges |
— |
— |
42,896 |
— |
|||||||||||
Acquired in-process research and development |
— |
75,000 |
— |
77,000 |
|||||||||||
Total operating expenses |
280,596 |
325,401 |
984,682 |
794,657 |
|||||||||||
Income from operations |
188,777 |
86,454 |
429,783 |
387,637 |
|||||||||||
Interest expense, net |
(18,920) |
(19,192) |
(59,171) |
(56,330) |
|||||||||||
Foreign exchange loss |
(756) |
(2,224) |
(5,181) |
(9,115) |
|||||||||||
Loss on extinguishment and modification of debt |
— |
— |
(1,425) |
— |
|||||||||||
Income before income tax provision and equity in loss of investees |
169,101 |
65,038 |
364,006 |
322,192 |
|||||||||||
Income tax provision |
19,348 |
1,239 |
75,018 |
65,914 |
|||||||||||
Equity in loss of investees |
437 |
273 |
1,360 |
637 |
|||||||||||
Net income |
$ |
149,316 |
$ |
63,526 |
$ |
287,628 |
$ |
255,641 |
|||||||
Net income per ordinary share: |
|||||||||||||||
Basic |
$ |
2.47 |
$ |
1.06 |
$ |
4.78 |
$ |
4.26 |
|||||||
Diluted |
$ |
2.41 |
$ |
1.03 |
$ |
4.68 |
$ |
4.17 |
|||||||
Weighted-average ordinary shares used in per share calculations - basic |
60,476 |
60,108 |
60,196 |
60,030 |
|||||||||||
Weighted-average ordinary shares used in per share calculations - diluted |
61,857 |
61,436 |
61,493 |
61,360 |
JAZZ PHARMACEUTICALS PLC CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
|||||||
September 30, 2018 |
December 31, 2017 |
||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
499,018 |
$ |
386,035 |
|||
Investments |
565,000 |
215,000 |
|||||
Accounts receivable, net of allowances |
279,437 |
224,129 |
|||||
Inventories |
43,435 |
43,245 |
|||||
Prepaid expenses |
23,189 |
23,182 |
|||||
Other current assets |
54,310 |
76,686 |
|||||
Total current assets |
1,464,389 |
968,277 |
|||||
Property, plant and equipment, net |
198,053 |
170,080 |
|||||
Intangible assets, net |
2,787,281 |
2,979,127 |
|||||
Goodwill |
932,422 |
947,537 |
|||||
Deferred tax assets, net |
37,582 |
34,559 |
|||||
Deferred financing costs |
10,058 |
7,673 |
|||||
Other non-current assets |
56,003 |
16,419 |
|||||
Total assets |
$ |
5,485,788 |
$ |
5,123,672 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
37,373 |
$ |
24,368 |
|||
Accrued liabilities |
257,453 |
198,779 |
|||||
Current portion of long-term debt |
33,387 |
40,605 |
|||||
Income taxes payable |
7,139 |
21,577 |
|||||
Deferred revenue |
5,935 |
8,618 |
|||||
Total current liabilities |
341,287 |
293,947 |
|||||
Deferred revenue, non-current |
10,934 |
16,115 |
|||||
Long-term debt, less current portion |
1,560,582 |
1,540,433 |
|||||
Deferred tax liabilities, net |
337,021 |
383,472 |
|||||
Other non-current liabilities |
208,647 |
176,608 |
|||||
Total shareholders' equity |
3,027,317 |
2,713,097 |
|||||
Total liabilities and shareholders' equity |
$ |
5,485,788 |
$ |
5,123,672 |
JAZZ PHARMACEUTICALS PLC SUMMARY OF CASH FLOWS (In thousands) (Unaudited) |
|||||||
Nine Months Ended September 30, |
|||||||
2018 |
2017 |
||||||
Net cash provided by operating activities |
$ |
574,558 |
$ |
488,528 |
|||
Net cash used in investing activities |
(428,229) |
(237,072) |
|||||
Net cash used in financing activities |
(32,674) |
(369,127) |
|||||
Effect of exchange rates on cash and cash equivalents |
(672) |
4,323 |
|||||
Net increase (decrease) in cash and cash equivalents |
$ |
112,983 |
$ |
(113,348) |
JAZZ PHARMACEUTICALS PLC RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION (In thousands, except per share amounts) (Unaudited) |
|||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
2018 |
2017 |
2018 |
2017 |
||||||||||||
GAAP reported net income |
$ |
149,316 |
$ |
63,526 |
$ |
287,628 |
$ |
255,641 |
|||||||
Intangible asset amortization |
46,989 |
47,313 |
154,955 |
99,164 |
|||||||||||
Share-based compensation expense |
25,103 |
27,126 |
75,718 |
79,579 |
|||||||||||
Estimated loss contingency |
— |
— |
57,000 |
— |
|||||||||||
Impairment charges and disposal costs |
— |
— |
43,969 |
— |
|||||||||||
Upfront and milestone payments |
— |
75,000 |
11,000 |
75,000 |
|||||||||||
Expenses related to certain legal proceedings |
— |
— |
— |
6,000 |
|||||||||||
Non-cash interest expense |
11,165 |
7,855 |
32,669 |
19,234 |
|||||||||||
Income tax effect of above adjustments |
(13,786) |
(23,171) |
(47,145) |
(38,393) |
|||||||||||
U.S. Tax Cuts and Jobs Act impact |
2,868 |
— |
2,868 |
— |
|||||||||||
Non-GAAP adjusted net income |
$ |
221,655 |
$ |
197,649 |
$ |
618,662 |
$ |
496,225 |
|||||||
GAAP reported net income per diluted share |
$ |
2.41 |
$ |
1.03 |
$ |
4.68 |
$ |
4.17 |
|||||||
Non-GAAP adjusted net income per diluted share |
$ |
3.58 |
$ |
3.22 |
$ |
10.06 |
$ |
8.09 |
|||||||
Weighted-average ordinary shares used in diluted per share calculations |
61,857 |
61,436 |
61,493 |
61,360 |
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) |
|||||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||||
September 30, 2018 |
September 30, 2017 |
||||||||||||||||||||||
GAAP |
Adjustments |
Non-GAAP |
GAAP |
Adjustments |
Non-GAAP |
||||||||||||||||||
Total revenues |
$ |
469,373 |
$ |
— |
$ |
469,373 |
$ |
411,855 |
$ |
— |
$ |
411,855 |
|||||||||||
Cost of product sales (excluding amortization of intangible assets) |
26,574 |
(1,525) |
(a) |
25,049 |
31,203 |
(1,573) |
(a) |
29,630 |
|||||||||||||||
Selling, general and administrative |
155,873 |
(18,978) |
(b) |
136,895 |
124,523 |
(20,903) |
(b) |
103,620 |
|||||||||||||||
Research and development |
51,160 |
(4,600) |
(c) |
46,560 |
47,362 |
(4,650) |
(c) |
42,712 |
|||||||||||||||
Intangible asset amortization |
46,989 |
(46,989) |
— |
47,313 |
(47,313) |
— |
|||||||||||||||||
Acquired in-process research and development |
— |
— |
— |
75,000 |
(75,000) |
— |
|||||||||||||||||
Interest expense, net |
18,920 |
(11,165) |
(d) |
7,755 |
19,192 |
(7,855) |
(d) |
11,337 |
|||||||||||||||
Foreign exchange loss |
756 |
— |
756 |
2,224 |
— |
2,224 |
|||||||||||||||||
Income before income tax provision and equity in loss of investees |
169,101 |
83,257 |
(e) |
252,358 |
65,038 |
157,294 |
(e) |
222,332 |
|||||||||||||||
Income tax provision |
19,348 |
10,918 |
(f) |
30,266 |
1,239 |
23,171 |
(f) |
24,410 |
|||||||||||||||
Effective tax rate (g) |
11.4 |
% |
12.0 |
% |
1.9 |
% |
11.0 |
% |
|||||||||||||||
Equity in loss of investees |
437 |
— |
437 |
273 |
— |
273 |
|||||||||||||||||
Net income |
$ |
149,316 |
$ |
72,339 |
(h) |
$ |
221,655 |
$ |
63,526 |
$ |
134,123 |
(h) |
$ |
197,649 |
|||||||||
Net income per diluted share |
$ |
2.41 |
$ |
3.58 |
$ |
1.03 |
$ |
3.22 |
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) |
|||||||||||||||||||||||
Nine Months Ended |
|||||||||||||||||||||||
September 30, 2018 |
September 30, 2017 |
||||||||||||||||||||||
GAAP |
Adjustments |
Non-GAAP |
GAAP |
Adjustments |
Non-GAAP |
||||||||||||||||||
Total revenues |
$ |
1,414,465 |
$ |
— |
$ |
1,414,465 |
$ |
1,182,294 |
$ |
— |
$ |
1,182,294 |
|||||||||||
Cost of product sales (excluding amortization of intangible assets) |
95,207 |
(5,022) |
(i) |
90,185 |
84,940 |
(4,346) |
(i) |
80,594 |
|||||||||||||||
Selling, general and administrative |
521,665 |
(115,085) |
(j) |
406,580 |
401,106 |
(67,582) |
(j) |
333,524 |
|||||||||||||||
Research and development |
169,959 |
(24,684) |
(k) |
145,275 |
132,447 |
(13,651) |
(k) |
118,796 |
|||||||||||||||
Intangible asset amortization |
154,955 |
(154,955) |
— |
99,164 |
(99,164) |
— |
|||||||||||||||||
Impairment charges |
42,896 |
(42,896) |
— |
— |
— |
— |
|||||||||||||||||
Acquired in-process research and development |
— |
— |
— |
77,000 |
(75,000) |
2,000 |
|||||||||||||||||
Interest expense, net |
59,171 |
(32,669) |
(d) |
26,502 |
56,330 |
(19,234) |
(d) |
37,096 |
|||||||||||||||
Foreign exchange loss |
5,181 |
— |
5,181 |
9,115 |
— |
9,115 |
|||||||||||||||||
Loss on extinguishment and modification of debt |
1,425 |
— |
1,425 |
— |
— |
— |
|||||||||||||||||
Income before income tax provision and equity in loss of investees |
364,006 |
375,311 |
(l) |
739,317 |
322,192 |
278,977 |
(l) |
601,169 |
|||||||||||||||
Income tax provision |
75,018 |
44,277 |
(m) |
119,295 |
65,914 |
38,393 |
(m) |
104,307 |
|||||||||||||||
Effective tax rate (g) |
20.6 |
% |
16.1 |
% |
20.5 |
% |
17.4 |
% |
|||||||||||||||
Equity in loss of investees |
1,360 |
— |
1,360 |
637 |
— |
637 |
|||||||||||||||||
Net income |
$ |
287,628 |
$ |
331,034 |
(n) |
$ |
618,662 |
$ |
255,641 |
$ |
240,584 |
(n) |
$ |
496,225 |
|||||||||
Net income per diluted share |
$ |
4.68 |
$ |
10.06 |
$ |
4.17 |
$ |
8.09 |
|||||||||||||||
Explanation of Adjustments and Certain Line Items (in thousands): |
|||||||||
(a) |
Share-based compensation expense of $1,525 and $1,573 for the three months ended September 30, 2018 and 2017, respectively. |
||||||||
(b) |
Share-based compensation expense of $18,978 and $20,903 for the three months ended September 30, 2018 and 2017, respectively. |
||||||||
(c) |
Share-based compensation expense of $4,600 and $4,650 for the three months ended September 30, 2018 and 2017, respectively. |
||||||||
(d) |
Non-cash interest expense associated with debt discount and debt issuance costs for the respective three-month period. |
||||||||
(e) |
Sum of adjustments (a) through (d) plus the adjustments for intangible asset amortization and acquired in-process research and development, as applicable, for the respective three-month period. |
||||||||
(f) |
Income tax adjustments related to the income tax effect of adjustments between GAAP reported and non-GAAP adjusted net income of $13,786 and $23,171 offset by the impact of the U.S. Tax Cuts and Jobs Act of $2,868 and $0 for the three months ended September 30, 2018 and 2017, respectively. |
||||||||
(g) |
Income tax provision divided by income before income tax provision and equity in loss of investees for the respective three- and nine-month periods. |
||||||||
(h) |
Net of adjustments (e) and (f) for the respective three-month period. |
||||||||
(i) |
Share-based compensation expense of $5,022 and $4,346 for the nine months ended September 30, 2018 and 2017, respectively. |
||||||||
(j) |
Share-based compensation expense of $57,012 and $61,582, estimated loss contingency of $57,000 and $0, disposal costs of $1,073 and $0 and expenses related to certain legal proceedings of $0 and $6,000 for the nine months ended September 30, 2018 and 2017, respectively. |
||||||||
(k) |
Share-based compensation expense of $13,684 and $13,651 and upfront and milestone payments of $11,000 and $0 for the nine months ended September 30, 2018 and 2017, respectively. |
||||||||
(l) |
Sum of adjustments (i), (j), (k) and (d) plus the adjustments for intangible asset amortization, impairment charges and acquired in-process research and development, as applicable, for the respective nine-month period. |
||||||||
(m) |
Income tax adjustments related to the income tax effect of adjustments between GAAP reported and non-GAAP adjusted net income of $47,145 and $38,393 offset by the impact of the U.S. Tax Cuts and Jobs Act of $2,868 and $0 for the nine months ended September 30, 2018 and 2017, respectively. |
||||||||
(n) |
Net of adjustments (l) and (m) for the respective nine-month period. |
JAZZ PHARMACEUTICALS PLC RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED 2018 NET INCOME GUIDANCE (In millions, except per share amounts) (Unaudited) |
||||||||
GAAP net income* |
$350 - $420 |
|||||||
Intangible asset amortization |
200 - 220 |
|||||||
Share-based compensation expense |
95 - 110 |
|||||||
Estimated loss contingency |
57 |
|||||||
Impairment charges and disposal costs |
44 |
|||||||
Milestone payments |
11 |
|||||||
Non-cash interest expense |
40 - 50 |
|||||||
Income tax effect of above adjustments* |
(55) - (65) |
|||||||
U.S. Tax Cuts and Jobs Act impact* |
3 |
|||||||
Non-GAAP adjusted net income |
$780 - $815 |
|||||||
GAAP net income per diluted share |
$5.70 - $6.90 |
|||||||
Non-GAAP adjusted net income per diluted share |
$12.75 - $13.25 |
|||||||
Weighted-average ordinary shares used in per share calculations |
62 |
|||||||
* Updated November 6, 2018. |
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SOURCE
Investors: Kathee Littrell, Vice President, Investor Relations, Jazz Pharmaceuticals plc, Ireland, +353 1 634 7887, U.S., +1 650 496 2717; Media: Jacqueline Kirby, Vice President, Corporate Affairs & Government Relations, Jazz Pharmaceuticals plc, Ireland, +353 1 697 2141, U.S., +1 215 867 4910