FREMONT, Calif., March 17 /PRNewswire-FirstCall/ -- PDL BioPharma, Inc.
(PDL) (Nasdaq: PDLI) is releasing revised financial tables in conjunction with
the company's filing of its 2005 Annual Report on Form 10-K, filed on
March 16, 2006. The tables reflect certain revisions to the company's 2005
GAAP financial results, principally related to the purchase accounting for its
acquisition of ESP Pharma, Inc. in March 2005. PDL has also updated the
number of shares used in calculations of basic and diluted net loss per share
to reflect shares of common stock issued in connection with a collaboration.
These revisions have no effect on the Company's full year 2006 non-GAAP
forward looking financial guidance as provided on February 27, 2006.
A table showing the changes from PDL's previously announced results for
four quarters of fiscal 2005 is attached. Further information regarding these
financial results and the revisions described above are in PDL's Annual Report
on Form 10-K for Fiscal 2005.
PDL BioPharma, Inc. is a biopharmaceutical company focused on discovering,
developing and commercializing innovative therapies for severe or
life-threatening illnesses.
The foregoing contains forward-looking statements involving risks and
uncertainties and PDL's actual results may differ materially from those,
express or implied, in the forward-looking statements. The forward-looking
statements include our expectations regarding financial results, our
expectations regarding the continuation of existing and new collaborative
agreements, the possibility that the off-patent branded products will be sold
and the anticipated sale price for those products, and the timing of clinical
developments as well as other statements regarding our expectations. Factors
that may cause differences between current expectations and actual results
include, but are not limited to, the following: The continued successful
integration of ESP Pharma and Retavase as part of PDL, including the retention
of the sales force; changes in our development plans as we and our
collaborators consider development plans and alternatives; factors affecting
the clinical timeline such as enrollment rates and availability of clinical
materials; changes in the market due to alternative treatments or other
actions by competitors; and variability in expenses particularly on a
quarterly basis, due, in principal part, to total headcount of the
organization and the timing of expenses. In addition, PDL revenues depend in
part on the success and timing of sales of our licensees, including in
particular the continued success of Avastin and Herceptin antibody products by
Genentech, Inc. as well as the seasonality of sales of Synagis(R) from
MedImmune, Inc. Quarterly revenues may be impacted by our ability to maintain
and increase our revenues from collaborative arrangements such as our co-
development agreements with Biogen Idec and Roche. Our revenues and expenses
would be affected by new collaborations, material patent licensing
arrangements or other strategic transactions.
Other factors that may cause our actual results to differ materially from
those expressed or implied in the forward-looking statements in this press
release are discussed in our filings with the Securities and Exchange
Commission. PDL expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements contained
herein to reflect any change in our expectations with regard thereto or any
change in events, conditions or circumstances on which any such statements are
based.
NOTE: PDL BioPharma and the PDL BioPharma logo are considered trademarks
of PDL BioPharma, Inc.
The following tables reflect the adjustments to fiscal 2005 GAAP results
and revised reconciliations to non-GAAP results.
PDL BIOPHARMA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Years ended December 31,
2005
As Furnished Revised
GAAP Revisions(1) GAAP
Revenues:
Product sales, net $118,449 2,742 $121,191
Royalties 130,068 130,068
License and other 28,395 28,395
Total revenues 276,912 2,742 279,654
Costs and expenses:
Cost of product sales 60,257 60,257
Research and development 172,039 172,039
Selling, general and
administrative 82,295 91 82,386
Acquired in-process research
and development 79,417 79,417
Other acquisition-related charges -- 19,434 19,434
Asset impairment charges 31,269 31,269
Total costs and expenses 425,277 19,525 444,802
Operating income (loss) (148,365) (16,783) (165,148)
Interest and other income, net 9,616 9,616
Interest expense (10,177) (10,177)
Income (loss) before
income taxes (148,926) (16,783) (165,709)
Income taxes expense 868 868
Net income (loss) $(149,794) $(16,783) $(166,577)
Net income (loss) per
basic share $(1.45) $(1.60)
Net income (loss) per
diluted share $(1.45) $(1.60)
Shares used in computation
of net income (loss) per
basic share 103,311 104,326
Shares used in computation
of net income (loss) per
diluted share 103,311 104,326
(1) Revisions of certain amounts previously reported in our Form 10-Q for
the first and second quarters, Form 10-Q/A for the third quarter and
as furnished in our Form 8-K dated March 3, 2006 which included the
February 27, 2006 Press Release for the fourth quarter. See Note 1 to
the Consolidated Financial Statements in our Form 10-K for the year
ended December 31, 2005.
PDL BIOPHARMA, INC.
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
We use certain non-GAAP financial measures in evaluating our operating
performance. These non-GAAP financial results are based upon earnings before
interest income, interest expense, income taxes, depreciation and amortization
(EBITDA), further adjusted
(In thousands, except per share data)
Year ended December 31, 2005
Revised Revised
GAAP Adjustments Non-GAAP
Revenues:
Product sales, net $121,191 $121,191 (4)
Royalties 130,068 130,068
License and other 28,395 28,395
Total revenues 279,654 -- 279,654
Costs and expenses:
Cost of product sales 60,257 (35,434) (1) 24,823
Research and development 172,039 (16,396) (2) 155,643
Selling, general
and administrative 82,386 (2,094) (3) 80,292
Acquired in-process
research and development 79,417 (79,417) --
Other acquisition-related charges 19,434 (19,434) (4) --
Asset impairment charges 31,269 (31,269) (5) --
Total costs and expenses 444,802 (184,044) 260,758
Operating income (loss) (165,148) 184,044 18,896
Interest and other income, net 9,616 (9,664) (6) (48)
Interest expense (10,177) 10,177 --
Income (loss)
before income taxes (165,709) 184,557 18,848
Income taxes expense 868 (868) --
Net income (loss) $(166,577) $185,425 $18,848
Net income (loss)
per basic share $(1.60) $ 0.18
Net income (loss)
per diluted share $(1.60) $ 0.17
Shares used in
computation of net income
(loss) per basic share 104,326 104,326
Shares used in computation
of net income (loss)
per diluted share 104,326 109,222
(1) Amortization of intangible assets for our marketed products in 2005.
(2) Depreciation expenses for our fixed assets ($14.2M in 2005, $11.0M
in 2004), amortization of intangible assets associated with the Eos
Biotechnology, Inc. acquisition and the re-acquisition from Roche of
rights to Zenapax ($2.1M in 2005, $2.5M in 2004), r
(3) Depreciation expenses for our fixed assets ($1.2M in 2005, $0.8M in
2004), and stock-based compensation ($0.8M in 2005, $0.6M in 2004).
(4) Revisions of certain amounts previously reported in our Form 10-Q
for the first and second quarters, Form 10-Q/A for the third quarter
and as furnished in our Form 8-K dated March 3, 2006 which included
the February 27, 2006 Press Release for the fourth q
(5) Asset impairment charges for off-patent brands of $15.5M and write-
off of option to re-acquire rights to manufacture and market Zenapax
for acute renal transplant rejection of $15.8M in 2005.
(6) Interest income.
PDL BIOPHARMA, INC.
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
We use certain non-GAAP financial measures in evaluating our operating
performance. These non-GAAP financial results are based upon earnings before
interest income, interest expense, income taxes, depreciation and amortization
(EBITDA), further adjusted
(In thousands, except per share data)
Year ended December 31, 2004
GAAP Adjustments Non-GAAP
Revenues:
Product sales, net $-- $--
Royalties 83,807 83,807
License and other 12,217 12,217
Total revenues 96,024 96,024
Costs and expenses:
Cost of product sales --
Research and development 122,563 (14,280) (2) 108,283
Selling, general and administrative 31,806 (1,519) (3) 30,287
Acquired in-process
research and development -- --
Other acquisition-related charges -- --
Asset impairment charges -- --
Total costs and expenses 154,369 (15,799) 138,570
Operating income (loss) (58,345) 15,799 (42,546)
Interest and other income, net 10,212 (9,739) (5) 473
Interest expense (5,028) 5,028 --
Income (loss) before income taxes (53,161) 11,088 (42,073)
Income taxes expense 80 (80) --
Net income (loss) $(53,241) $11,168 $(42,073)
Net income (loss) per basic share $(0.56) $(0.44)
Net income (loss) per diluted share $(0.56) $(0.44)
Shares used in computation of
net income (loss) per basic share 94,982 94,982
Shares used in computation
of net income (loss)
per diluted share 94,982 94,982
(1) Amortization of intangible assets for our marketed products in 2005.
(2) Depreciation expenses for our fixed assets ($14.2M in 2005, $11.0M
in 2004), amortization of intangible assets associated with the Eos
Biotechnology, Inc. acquisition and the re-acquisition from Roche of
rights to Zenapax ($2.1M in 2005, $2.5M in 2004), r
(3) Depreciation expenses for our fixed assets ($1.2M in 2005, $0.8M in
2004), and stock-based compensation ($0.8M in 2005, $0.6M in 2004).
(4) Revisions of certain amounts previously reported in our Form 10-Q
for the first and second quarters, Form 10-Q/A for the third quarter
and as furnished in our Form 8-K dated March 3, 2006 which included
the February 27, 2006 Press Release for the fourth q
(5) Asset impairment charges for off-patent brands of $15.5M and write-
off of option to re-acquire rights to manufacture and market Zenapax
for acute renal transplant rejection of $15.8M in 2005.
(6) Interest income.
QUARTERLY FINANCIAL DATA (UNAUDITED)
(in thousands, except per share data)
2005 Quarter Ended
December 31 September 30
As As
Revenues: Revised(1) Furnished Revised(1) reported
Product sales $39,012 $39,012 $43,144 $43,144
Royalties 33,373 33,373 26,003 26,003
License and other 11,268 11,268 7,536 7,536
Total revenues 83,653 83,653 76,683 76,683
Costs and expenses:
Cost of product sales 16,776 16,776 22,209 22,209
Research and development 46,959 46,959 49,480 49,480
Selling, general
and administrative 28,119 28,028 26,795 26,795
Acquired in-process
research and development(2) -- -- --
Other acquisition-related
charges(3) 10,876 -- 5,816 --
Asset impairment charge(4) 16,044 16,044 15,225 15,225
Total costs and expenses 118,774 107,807 119,525 113,709
Gross profit
from product sales 22,236 22,236 20,935 20,935
Operating income (loss) (35,121) (25,154) (42,842) (37,026)
Interest and other income, net 2,781 2,781 2,027 2,027
Interest expense (2,655) (2,655) (2,671) (2,671)
Loss before income taxes (34,995) (24,028) (43,486) (37,670)
Income tax expense (benefit) (899) (899) 1,680 1,680
Net loss $(34,096) $(23,129) $(45,166) $(39,350)
Basic and diluted
net loss per share $(0.31) $(0.22) $(0.43) $(0.37)
Shares used in computation
of basic and diluted
net loss per share 111,571 107,512 105,272 105,272
2005
(in thousands, except per share data)
December 31 September 30
as as
revised(1) furnished revised(1) reported
Goodwill $57,783 N/A $56,714 $57,520
Total Assets 1,166,001 $1,170,262 1,176,171 1,176,977
Total Liabilities 639,936 N/A 625,003 625,003
Total Stockholders' Equity 526,065 531,144 551,168 551,974
(1) Represents revisions of certain amounts previously reported in our
Form 10-Q for the first and second quarters, Form 10-Q/A for the third
quarter and as furnished in our Form 8-K dated March 3, 2006 which
included the February 27, 2006 Press ReleasE for the fourth quarter.
See Note 1 to the Consolidated Financial Statements.
(2) Represents acquired in-process research and development. The amount
for 2005 relates to the ESP Pharma acquisition. For a description of
these charges, see Notes 1, 4 and 6 to the Consolidated Financial
Statements.
(3) Represents product sales returns, accounts receivable allowances and
other liabilities related to ESP Pharma operations prior to our
acquisition of the business. See Note 1 to the Consolidated Financial
Statements.
(4) Represents non-cash charges related to the impairment of off-patent
branded products and termination of reversion right. For a description
of these charges, see Note 4 to the Consolidated Financial Statements.
QUARTERLY FINANCIAL DATA (UNAUDITED)
(in thousands, except per share data)
2005 Quarter Ended
June 30 March 31
As As
Revenues: Revised(1) Furnished Revised(1) reported
Product sales $38,087 $35,345 $948 $948
Royalties 37,528 37,528 33,164 33,164
License and other 4,888 4,888 4,703 4,703
Total revenues 80,503 77,761 38,815 38,815
Costs and expenses:
Cost of product sales 20,135 20,135 1,137 1,137
Research and development 40,339 40,339 35,261 35,261
Selling, general
and administrative 19,806 19,806 7,666 7,666
Acquired in-process
research and development(2) -- -- 79,417 79,417
Other acquisition-related
charges(3) 2,742 -- -- --
Asset impairment charge(4) -- -- -- --
Total costs and expenses 83,022 80,280 123,481 123,481
Gross profit from product sales 17,952 15,210 -189 -189
Operating income (loss) (2,519) (2,519) (84,666) (84,666)
Interest and other income, net 1,873 1,873 2,935 2,935
Interest expense (2,709) (2,709) (2,142) (2,142)
Loss before income taxes (3,355) (3,355) (83,873) (83,873)
Income tax expense (benefit) 65 65 22 22
Net loss $ (3,420) $ (3,420) $(83,895) $(83,895)
Basic and diluted
net loss per share $(0.03) $(0.03) $(0.87) $(0.87)
Shares used in computation
of basic and diluted
net loss per share 103,705 103,705 96,754 96,754
2005
(in thousands, except per share data)
June 30 March 31
as as
revised(1) furnished revised(1) reported
Goodwill $31,262 $67,359 $31,262 $67,359
Total Assets 1,018,799 1,054,896 1,012,680 1,048,777
Total Liabilities 577,303 577,303 578,234 578,234
Total Stockholders' Equity 441,496 477,593 434,446 470,543
(1) Represents revisions of certain amounts previously reported in our
Form 10-Q for the first and second quarters, Form 10-Q/A for the third
quarter and as furnished in our Form 8-K dated March 3, 2006 which
included the February 27, 2006 Press ReleasE for the fourth quarter.
See Note 1 to the Consolidated Financial Statements.
(2) Represents acquired in-process research and development. The amount
for 2005 relates to the ESP Pharma acquisition. For a description of
these charges, see Notes 1, 4 and 6 to the Consolidated Financial
Statements.
(3) Represents product sales returns, accounts receivable allowances and
other liabilities related to ESP Pharma operations prior to our
acquisition of the business. See Note 1 to the Consolidated Financial
Statements.
(4) Represents non-cash charges related to the impairment of off-patent
branded products and termination of reversion right. For a description
of these charges, see Note 4 to the Consolidated Financial Statements.
SOURCE PDL BioPharma, Inc.
 back to top
Related links:
http://www.pdl.com
CONTACT:
Ami Knoefler, Corporate and Investor
Relations, +1-510-284-8851, or ami.knoefler@pdl.com, or Jim Goff,
Investor Relations, +1-510-574-1421, or james.goff@pdl.com, both
of PDL BioPharma, Inc.
|
