- Strong Generic and Proprietary Revenue Growth
- Stable Alliance and Development Revenue
- $20 Million Increase in R&D Investment
WOODCLIFF LAKE, N.J., Nov. 8 /PRNewswire-FirstCall/ -- Barr
Pharmaceuticals, Inc. (NYSE: BRL) today reported net earnings of $38.9
million, or $0.36 per share, for the quarter ended September 30, 2007,
compared to net earnings of $52.8 million, or $0.49 per share, for the same
period last year. Revenues for the current quarter totaled $601 million,
compared to $332 million for the same period last year. Adjusted earnings
per share were $0.75 for the third quarter of 2007, compared to adjusted
earnings per share of $0.87 in the prior year period. A reconciliation of
GAAP-based earnings per share to adjusted earnings per share is presented
in the table at the end of this press release.
For the nine months ended September 30, 2007, net earnings were $95.8
million, or $0.88 per share, compared to $211.1 million, or $1.95 per
share, in the prior year period. Revenues for the first nine months of 2007
totaled $1.8 billion, compared to $1.0 billion for the same period last
year. Adjusted earnings per share were $2.37 for the nine months ended
September 30, 2007, compared to adjusted earnings per share of $2.64 in the
prior year period.
"Strong performances by our U.S. generic and proprietary businesses
drove a sound third quarter," said Bruce L. Downey, Barr's Chairman and
Chief Executive Officer. "We delivered $77 million in revenue growth in
U.S. generic sales, fueled by the inclusion of PLIVA's product line and
sales of Fentanyl Citrate, and $21 million in proprietary revenue growth
primarily from sales of our Plan B(R) emergency contraceptive and
Adderall(R) IR product. Outside of the U.S., our European and rest of
world, or "ROW" markets, contributed $158 million in sales in the third
quarter. Another highlight of the quarter was a $20 million increase in our
investment in new product development for both U.S. and European markets."
Revenues
Generic Product Sales
Sales of the Company's generic products were $434 million for the third
quarter of 2007, compared to $198 million in the prior year period. For the
first nine months of 2007, generic product sales increased to $1.4 billion,
compared to $620 million for the prior year period. A discussion of the
Company's generic product sales for the third quarter of 2007 compared to
the prior year period is presented below.
U.S. Generic Sales
Sales of U.S. generic products totaled $275 million for the third
quarter of 2007, compared to $198 million in the prior year period. The
increase in sales is primarily related to the inclusion of sales from
PLIVA's U.S. product line, including Azithromycin. These products are now
being sold under the Barr label. The increase also reflects strong sales of
Fentanyl Citrate, a generic version of ACTIQ(R) that we launched in late
September 2006.
Sales of generic oral contraceptives, the Company's largest single
category of generic products, were $112 million for the third quarter of
2007, compared to $121 million in the prior year period. The $9 million
decline is primarily related to decreased sales of Jolessa(TM), which the
Company launched in September 2006.
Europe and Rest of the World ("ROW") Generic Sales
Sales of generic products in Europe and the ROW through our PLIVA
subsidiary were $158 million in the third quarter of 2007. Revenues were
primarily driven by sales of PLIVA products in the key markets of Germany,
Croatia, Poland and Russia. Prior to the Company's acquisition of PLIVA in
October 2006, Barr did not have any product sales in Europe or the ROW.
Proprietary Product Sales
The Company's proprietary product sales were $125 million for the third
quarter of 2007, compared to $103 million in the prior year period. For the
first nine months of 2007, proprietary product sales were $316 million,
compared to $294 million in the prior year period. For the third quarter
and the nine months, the increase in proprietary sales was primarily
attributable to higher sales of Plan B(R) Over-the-Counter/Rx and
Adderall(R) IR, both of which were launched in the quarter ended December
31, 2006. During the nine months ended September 30, 2007, the Company's
SEASONIQUE product, which is promoted by its Women's Healthcare Sales
Force, also grew significantly. These increases more than offset lower
sales of our SEASONALE(R) extended-cycle oral contraceptive, which faced
generic competition in September 2006 following the expiration of three
years of market exclusivity.
Alliance and Development Revenue
During the third quarter of 2007, the Company reported alliance and
development revenue of $32 million, compared to $31 million in the prior
year period. The slight increase for the quarter ended September 30, 2007
reflects an increase in reimbursement under the Shire agreement that was
entered into in August 2006 and higher reimbursement from the Adenovirus
agreement with the U.S. Department of Defense, which offset a decrease in
income derived from the Company's share of the profits from sales of
fexofenadine hydrochloride tablets from Teva Pharmaceutical Industries Ltd.
For the first nine months of 2007, alliance and development revenue was
$94 million, down from $97 million in the prior year period. The decrease
for the nine months ended September 30, 2007 primarily reflects a decline
in income derived from the Company's share of the profits from sales of
fexofenadine hydrochloride tablets.
Other Revenue
Other revenue primarily includes revenue from non-core operations
acquired in connection with the PLIVA acquisition, including the
diagnostic, disinfectants, dialysis and infusions business. Other revenue
totaled $11 million for the third quarter of 2007 and $33 million for the
first nine months of 2007.
Margins
Generic: Margins in the generic segment for the third quarter of 2007
and the first nine months of 2007 were 47% and 47%, respectively, compared
to 67% and 66%, respectively, in the prior year periods. Generic margins
for the quarter ended September 30, 2007 were negatively impacted by
amortization costs arising from the PLIVA acquisition, as well as a higher
proportion of sales of non-oral contraceptive generic products.
Proprietary: Margins in the proprietary segment for the third quarter
of 2007 and the first nine months of 2007 were 76% and 73%, respectively,
compared to 77% and 72%, respectively, in the prior year periods.
Proprietary margins for the quarter ended September 30, 2007 decreased
primarily due to change in product sales mix as compared to the prior year
period.
Update on R&D Activities
Research and development investment totaled $60 million for the third
quarter of 2007, compared to $40 million in the prior year period. R&D for
the first nine months of 2007 totaled $187 million, compared to $114
million for the prior year period. The significant increases reflect
greater investment in product development activities across the Company.
Generic Products
At September 30, 2007, the Company had approximately 70 Abbreviated New
Drug Applications, including tentatively approved applications, pending at
the U.S. Food and Drug Administration (FDA) targeting branded
pharmaceutical products with an estimated $30 billion in sales. The Company
also had approximately 275 product registrations, representing 85
molecules, pending with regulatory bodies in Europe and in the ROW.
During the third quarter of 2007, the Company received three generic
product approvals in the U.S. from the FDA, including tentative approvals,
and 20 approvals, representing 13 molecules, from regulatory bodies in
Europe and in the ROW.
Proprietary Products
The Company currently has an extensive proprietary clinical development
program that includes four products in Phase III studies and two New Drug
Applications pending at the FDA.
Selling, General and Administrative
The Company's SG&A expenses totaled $190 million during the third
quarter of 2007, compared to $89 million in the prior year period. SG&A for
the first nine months of 2007 totaled $557 million, compared to $271
million for the prior year period. SG&A for the three and nine months ended
September 30, 2007 included charges of $7.3 million and $15.3 million,
respectively, for litigation related to the Ovcon(R) oral contraceptive
product.
The substantial increase in SG&A for the quarter and nine months ended
September 30, 2007 is primarily attributable to the addition of PLIVA's
sales and marketing activities, including, but not limited to, the costs
associated with approximately 1,400 sales representatives that PLIVA
utilizes to promote branded generic products to physicians and pharmacists
in many countries, and other general and administrative expenses associated
with the Company's worldwide operations.
Interest Expense/Income and Other Income
During the third quarter of 2007, the Company recorded $39 million of
interest expense, almost all of which is related to interest on the $2.6
billion of debt incurred in connection with the PLIVA acquisition. The
Company recorded $1 million of interest expense in the prior year period.
During the third quarter of 2007, interest income was $8 million,
compared to $7 million in the prior year period. This increase was
primarily related to higher interest rates and cash and marketable
securities balances.
Other income in the third quarter of 2007 totaled $6 million, compared
to a pre-tax charge of $43 million in the prior year period that was
related to the decline in the fair value of the Company's foreign currency
option acquired in connection with its acquisition of PLIVA d.d.
Stock-Based Compensation
During the third quarter of 2007, the Company recorded stock-based
compensation expenses of $7.9 million, or $0.05 per share. For the first
nine months of 2007, the Company recorded stock-based compensation expenses
of $23.4 million, or $0.14 per share. The impact for the quarter and the
nine months ended September 30, 2007 is allocated among cost of sales, SG&A
and R&D, and is reflected in the accompanying selected adjusted financial
data chart.
Tax Rate
The Company's tax rate for third quarter of 2007 was 24.4%, compared to
31.4% for the prior year period. For the first nine months of 2007, the tax
rate was 32.1%, compared to 34.1% for the prior year period.
The tax rates for the three and nine months ended September 30, 2007
include a one-time $9.6 million benefit from a reduction in deferred income
taxes as a result of Germany's enactment of a lower corporate income tax
rate.
Balance Sheet
The Company's cash, cash equivalents and marketable securities totaled
approximately $503 million and its debt totaled $2.15 billion at September
30, 2007. During the quarter ended September 30, 2007 the Company repaid
the remaining $316 million of its $417 million 364-day term facility that
was due to mature in October 2007, using cash on hand.
EBITDA
Earnings from continuing operations before interest, taxes,
depreciation and amortization, including amortization of inventory step-up
charges (EBITDA), for the third quarter of 2007 totaled $156 million,
compared to $132 million in the prior year period. For the first nine
months of 2007, EBITDA totaled $487 million, compared to $400 million for
the prior year period. Please see the reconciliation table at the end of
this press release for the calculation of EBITDA.
2007 Financial Outlook
The Company expects adjusted earnings per fully diluted share for the
fourth quarter ending December 31, 2007 to be in the range of approximately
$0.73 - $0.83, bringing its full year adjusted earnings per fully diluted
share to be in the range of approximately $3.10 - $3.20. The adjustments
are discussed in the paragraph immediately below. The Company expects total
revenues for 2007 to be in the range of $2.4 - $2.5 billion, including
total product sales in the range of $2.3 - $2.4 billion. On the expense
side, the Company expects R&D investment of approximately $250 - $255
million, and SG&A expenses to be approximately $740 - $760 million.
The Company's adjusted guidance for the fourth quarter and full year
ending December 31, 2007 excludes amortization costs associated with
acquired products, charges related to the step-up of inventory acquired
from PLIVA, contributions from operations that the Company anticipates
divesting during 2007, incremental depreciation related to the step-up of
PLIVA's assets, the tax impact related to PLIVA's U.S. net operating losses
and stock-based compensation costs. The Company's adjusted guidance also
excludes the impact of potential patent challenge outcomes, other business
development activities, and potential refinancing activities that may be
completed by December 31, 2007.
Conference Call/Webcast
The Company will host a Conference Call at 8:30 AM Eastern time on
Thursday, November 8th to discuss earnings results for the quarter and
nine-month period ended September 30, 2007. The number to call from within
the United States is: (866) 254-5941 and (651) 224-7558 Internationally. A
replay of the conference call will be available from 12 Noon Eastern time
on November 8th through 11:59 PM Eastern time November 15th, and can be
accessed by dialing (800) 475-6701 in the United States or (320) 365-3844
Internationally and using the access code 889111.
The conference call will also be webcast live on the Internet.
Investors and other interested parties may access the live webcast through
the Investors section, under Calendar of Events, on Barr's website at
http://www.barrlabs.com. Log on at least 15 minutes before the call begins to
register and download or install any necessary audio software.
About Barr Pharmaceuticals, Inc.
Barr Pharmaceuticals, Inc. is a global specialty pharmaceutical company
that operates in more than 30 countries worldwide and is engaged in the
development, manufacture and marketing of generic and proprietary
pharmaceuticals, biopharmaceuticals and active pharmaceutical ingredients.
A holding company, Barr operates through its principal subsidiaries Barr
Laboratories, Inc., Duramed Pharmaceuticals, Inc. and PLIVA d.d. The Barr
group of companies markets more than 115 generic and 25 proprietary
products in the U.S. and more than 1,200 products globally outside of the
U.S.
Forward-Looking Statements
Except for the historical information contained herein, the statements
made in this press release constitute forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements can be
identified by their use of words such as "expects," "plans," "projects,"
"will," "may," "anticipates," "believes," "should," "intends," "estimates"
and other words of similar meaning. Because such statements inherently
involve risks and uncertainties that cannot be predicted or quantified,
actual results may differ materially from those expressed or implied by
such forward-looking statements depending upon a number of factors
affecting the Company's business. These factors include, among others: the
difficulty in predicting the timing and outcome of legal proceedings,
including patent-related matters such as patent challenge settlements and
patent infringement cases; the outcome of litigation arising from
challenging the validity or non- infringement of patents covering our
products; the difficulty of predicting the timing of FDA approvals; court
and FDA decisions on exclusivity periods; the ability of competitors to
extend exclusivity periods for their products; our ability to complete
product development activities in the timeframes and for the costs we
expect; market and customer acceptance and demand for our pharmaceutical
products; our dependence on revenues from significant customers;
reimbursement policies of third party payors; our dependence on revenues
from significant products; the use of estimates in the preparation of our
financial statements; the impact of competitive products and pricing on
products, including the launch of authorized generics; the ability to
launch new products in the timeframes we expect; the availability of raw
materials; the availability of any product we purchase and sell as a
distributor; the regulatory environment in the markets where we operate;
our exposure to product liability and other lawsuits and contingencies; the
increasing cost of insurance and the availability of product liability
insurance coverage; our timely and successful completion of strategic
initiatives, including integrating companies (such as PLIVA d.d.) and
products we acquire and implementing our new SAP enterprise resource
planning system; fluctuations in operating results, including the effects
on such results from spending for research and development, sales and
marketing activities and patent challenge activities; the inherent
uncertainty associated with financial projections; our expansion into
international markets through our PLIVA acquisition, and the resulting
currency, governmental, regulatory and other risks involved with
international operations; our ability to service our significantly
increased debt obligations as a result of the PLIVA acquisition; changes in
generally accepted accounting principles; and other risks detailed in our
SEC filings, including in our Transition Report on Form 10-K/T for the six
months ended December 31, 2006.
The forward-looking statements contained in this press release speak
only as of the date the statement was made. The Company undertakes no
obligation (nor does it intend) to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except to the extent required under applicable law.
Barr Pharmaceuticals, Inc. Selected Financial Data
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
(unaudited)(unaudited)(unaudited) (unaudited)
Revenues:
Product sales $558,868 $300,881 $1,705,773 $914,021
Alliance and development
revenue 31,996 31,489 93,540 96,858
Other revenue 10,521 - 32,576 -
Total revenues 601,385 332,370 1,831,889 1,010,879
Costs and expenses:
Cost of sales 267,331 89,578 844,664 295,413
Selling, general and
administrative 190,332 88,695 557,185 271,155
Research and development 60,361 39,969 186,804 114,121
Write-off of acquired IPR&D 243 - 4,601 -
Earnings from operations 83,118 114,128 238,635 330,190
Interest income 8,462 6,782 27,201 16,729
Interest expense 38,914 1,090 122,481 1,546
Other income (expense), net 6,487 (42,865) 11,677 (25,104)
Earnings before income taxes
and minority interest 59,153 76,955 155,032 320,269
Income tax expense 14,451 24,194 49,696 109,158
Minority interest 249 - (1,662) -
Net earnings from continuing
operations 44,951 52,761 103,674 211,111
Discontinued operations
Loss from discontinued
operations, net of taxes (5,990) - (7,796) -
Loss on sales of
discontinued operations,
net of taxes (36) - (36) -
Net earnings (loss) from
discontinued operations, net
of tax (6,026) - (7,832) -
Net earnings $38,925 $52,761 $95,842 $211,111
Earnings per common share -
diluted:
Earnings per common share -
continuing operations $0.41 $0.49 $0.95 $1.95
Loss per common share -
discontinued operations (0.05) - (0.07) -
Net earnings per common share -
diluted $0.36 $0.49 $0.88 $1.95
Weighted average shares -
diluted 108,852 108,061 108,584 108,187
Stock-based compensation
expense:
Cost of sales $2,212 $2,116 $6,723 $5,873
Selling, general and
administrative 4,485 3,708 12,708 10,436
Research and development 1,250 1,300 3,948 4,013
Total stock-based compensation
expense $7,947 $7,124 $23,379 $20,322
As of As of
Select Balance Sheet Data 9/30/07 12/31/06
Cash & cash equivalents $212,329 $231,975
Marketable securities
-Current and long-term 290,564 682,692
Accounts receivable, net 473,261 511,136
Other receivables 69,215 67,461
Inventories, net 501,045 426,272
Accounts payable & accrued
liabilities 398,346 408,769
Working capital 917,098 876,106
Total assets 4,669,982 4,961,862
Total debt 2,149,764 2,677,669
Shareholders' equity 1,752,476 1,465,228
Reconciliation of Adjusted Earnings to GAAP Earnings; EBITDA
To supplement its consolidated financial statements presented in
accordance with accounting principles generally accepted in the United
States of America ("GAAP"), the Company is providing the supplemental
financial information contained below to reflect (1) the adjusted earnings
per share effect of certain unusual or infrequent charges or benefits that
were taken or received in the three and nine months ended September 30,
2007, and (2) the calculation of EBITDA for each period presented.
Adjusted earnings per share and EBITDA are non-GAAP financial measures.
The Company is providing this information, however, because it believes
that such information is useful to both management and investors in that it
facilitates analysis by both management and investors in evaluating the
Company's performance and trends. The presentation of this additional
information is not meant to be considered in isolation of, or as a
substitute for, results prepared in accordance with GAAP.
Barr Pharmaceuticals, Inc. Selected Adjusted Financial Data
(in thousands, except per share amounts)
Three Months Ended Sept 30, 2007
Adjusted
GAAP Adjustments Earnings
Revenues:
Product sales $558,868 - $558,868
Alliance and development
revenue 31,996 - 31,996
Other revenue 10,521 - 10,521
Total revenues 601,385 - 601,385
Costs and expenses:
Cost of sales 267,331 (47,458) (b)(c)(d) 219,873
Selling, general and
administrative 190,332 (12,630) (b)(c)(d)(f) 177,702
Research and development 60,361 (1,459) (b)(c)(d) 58,902
Write-off of acquired IPR&D 243 (243) (e) -
Earnings from operations 83,118 61,790 144,908
Interest income 8,462 - 8,462
Interest expense (38,914) - (38,914)
Other income (expense), net 6,487 - 6,487
Earnings before income taxes and
minority interest 59,153 61,790 719 121,662
Income tax expense 14,451 25,255 (i) 39,706
Minority interest (249) 44 14 (192)
Net earnings from continuing
operations 44,951 36,491 705 (a) 82,148
Loss from discontinued
operations, net of taxes (6,026) 6,026 (j) -
Net earnings $38,925 $42,517 $705 $82,148
Diluted
Earnings per common share -
continuing operations $0.41 $0.75
Earnings per common share -
discontinued operations $(0.05) $-
Net earnings per common share -
diluted $0.36 $0.75
Weighted average shares - diluted 108,852 108,852
Three Months Ended Sept 30, 2006
Adjusted
GAAP Adjustments Earnings
Revenues:
Product sales $300,881 $- $300,881
Alliance and development revenue 31,489 - 31,489
Other revenue - - -
Total revenues 332,370 - 332,370
Costs and expenses:
Cost of sales 89,578 (10,010) (b)(d) 79,568
Selling, general and administrative 88,695 (9,708) (d)(g) 78,987
Research and development 39,969 (1,300) (d) 38,669
Write-off of acquired IPR&D - - -
Earnings from operations 114,128 21,018 135,146
Interest income 6,782 - 6,782
Interest expense (1,090) - (1,090)
Other income (expense), net (42,865) 42,389 (h) (476)
Earnings before income taxes and
minority interest 76,955 63,407 140,362
Income tax expense 24,194 22,509 (i) 46,703
Minority interest - - -
Net earnings from continuing
operations 52,761 40,898 93,659
Loss from discontinued operations, net
of taxes - - -
Net earnings $52,761 $40,898 $93,659
Diluted
Earnings per common share - continuing
operations $0.49 $0.87
Earnings per common share -
discontinued operations $- $-
Net earnings per common share -
diluted $0.49 $0.87
Weighted average shares - diluted 108,061 108,061
Summary Of Adjustment Items:
Three Months Ended Sept 30,
2007 2006
(a) Net loss from operations
expected to be divested,
net of minority interest (705) -
To account for losses associated with
our non-core DDDI business which is
expected to be divested. The Company
believes adjusting GAAP earnings for
this loss will allow investors to
better assess our ongoing
activities.
(b) Amortization and inventory step
up adjustments:
Cost of sales (40,661) (7,894)
Selling, general and
administrative (391) -
Research and development (28) -
Total (41,080) (7,894)
(c) Incremental PLIVA Depreciation
due to purchase accounting write up
of fixed assets:
Cost of sales (4,586) -
Selling, general and administrative (504) -
Research and development (180) -
Total (5,270) -
(d) Stock option expense:
Cost of sales (2,211) (2,116)
Selling, general and administrative (4,485) (3,708)
Research and development (1,251) (1,300)
Total (7,947) (7,124)
(e) Write off of acquired IPR&D
associated with additional PLIVA
shares:
(243) -
(f) Estimated reserve for litigation
charged to SG&A (7,250) -
(g) Litigation settlements - JMI - (6,000)
(h) Loss associated with derivatives
used to hedge PLIVA acquisition
price - (42,389)
(i) Adjustments to tax expense, including:
Tax impact of adjustments (a) - (h)
above. 18,305 22,509
Tax (benefit) from recognition
of acquired NOL (2,625) -
Impact of favorable change in
German tax rate 9,575 -
Total 25,255 22,509
(j) In order to provide investors and
management a basis to evaluate the
performance of the ongoing
operations, adjusted earnings
exclude the impact of discontinued
operations
Accounted for as discontinued
operations 6,026 -
EBITDA (from continuing operations)
Calculation:
Three Months Ended Sept 30,
2007 2006
Earnings from operations $83,118 $114,128
Depreciation 31,473 9,579
Amortization 40,631 7,894
Inventory step up 449 -
EBITDA $155,671 $131,601
Barr Pharmaceuticals, Inc. Selected Adjusted Financial Data
(in thousands, except per share amounts)
Nine Months Ended Sept 30, 2007
Adjusted
GAAP Adjustments Earnings
Revenues:
Product sales $1,705,773 - $1,705,773
Alliance and development
revenue 93,540 - 93,540
Other revenue 32,576 - 32,576
Total revenues 1,831,889 - 1,831,889
Costs and expenses:
Cost of sales 844,664 (173,484) (b)(c)(d) 671,180
Selling, general and
administrative 557,185 (30,250) (b)(c)(d)(f) 526,935
Research and development 186,804 (4,463) (b)(c)(d) 182,341
Write-off of acquired
IPR&D 4,601 (4,601) (e) -
Earnings from operations 238,635 212,798 451,433
Interest income 27,201 - 27,201
Interest expense (122,481) - (122,481)
Other income (expense), net 11,677 - 11,677
Earnings before income
taxes and minority
interest 155,032 212,798 2,319 370,150
Income tax expense 49,696 61,264 (j) 110,960
Minority interest 1,662 283 49 1,994
Net earnings from
continuing operations 103,674 151,251 2,270 (a) 257,195
Loss from discontinued
operations, net of taxes (7,832) 7,832 (k) -
Net earnings $95,842 $159,083 $2,270 $257,195
Diluted
Earnings per common share
- continuing operations $0.95 $2.37
Earnings per common share
- discontinued operations $(0.07) $-
Net earnings per common
share - diluted $0.88 $2.37
Weighted average shares -
diluted 108,584 108,584
Nine Months Ended Sept 30, 2006
Adjusted
GAAP Adjustments Earnings
Revenues:
Product sales $914,021 $- $914,021
Alliance and development revenue 96,858 - 96,858
Other revenue - - -
Total revenues 1,010,879 - 1,010,879
Costs and expenses:
Cost of sales 295,413 (47,362) (b)(d) 248,051
Selling, general and administrative 271,155 (38,936) (d)(g) 232,219
Research and development 114,121 (4,013) (d) 110,108
Write-off of acquired IPR&D - - -
Earnings from operations 330,190 90,311 420,501
Interest income 16,729 - 16,729
Interest expense 1,546 - 1,546
Other income (expense), net (25,104) 25,389 (h)(i) 285
Earnings before income taxes and
minority interest 320,269 115,700 435,969
Income tax expense 109,158 41,579 (j) 150,737
Minority interest - - -
Net earnings from continuing
operations 211,111 74,121 285,232
Loss from discontinued operations,
net of taxes - - -
Net earnings $211,111 $74,121 $285,232
Diluted
Earnings per common share -
continuing operations $1.95 $2.64
Earnings per common share -
discontinued operations $- $-
Net earnings per common share -
diluted $1.95 $2.64
Weighted average shares - diluted 108,187 108,187
Summary Of Adjustment Items:
Nine Months Ended Sept 30,
2007 2006
(a) Net loss from operations
expected to be divested, net of
minority interest (2,270) -
To account for losses associated with
our non-core DDDI business which is
expected to be divested. The
Company believes adjusting GAAP
earnings for this loss will allow
investors to better assess our
ongoing activities.
(b) Amortization and inventory step
up adjustments:
Cost of sales (153,468) (41,489)
Selling, general and
administrative (1,059) -
Research and development (68) -
Total (154,595) (41,489)
(c) Incremental PLIVA Depreciation
due to purchase accounting write up
of fixed assets:
Cost of sales (13,293) -
Selling, general and
administrative (1,233) -
Research and development (447) -
Total (14,973) -
(d) Stock option expense:
Cost of sales (6,723) (5,873)
Selling, general and
administrative (12,708) (10,436)
Research and development (3,948) (4,013)
Total (23,379) (20,322)
(e) Write off of acquired IPR&D
associated with additional PLIVA
shares:
(4,601) -
(f) Estimated reserve for litigation
charged to SG&A (15,250) -
(g) Litigation settlements -
Invamed/JMI - (28,500)
(h) Unrealized gain on venture fund - 6,700
(i) Loss associated with derivatives
used to hedge PLIVA acquisition
price - (32,089)
(j) Adjustments to tax expense,
including:
Tax impact of adjustments
(a) - (i) above. 59,464 41,579
Tax (benefit) from recognition
of acquired NOL (7,775) -
Impact of favorable change in
German tax rate 9,575 -
Total 61,264 41,579
(k) In order to provide investors and
management a basis to evaluate the
performance of the ongoing
operations, adjusted earnings
exclude the impact of discontinued
operations
Accounted for as discontinued
operations 7,832 -
EBITDA (from continuing operations)
Calculation:
Nine Months Ended Sept 30,
2007 2006
Earnings from operations $238,635 $330,190
Depreciation 94,277 28,462
Amortization 121,146 25,406
Inventory step up 33,207 16,083
EBITDA $487,265 $400,141
SOURCE Barr Pharmaceuticals, Inc.
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Related links:
http://www.barrlabs.com
http://www.prnewswire.com/comp/089750.html /
CONTACT:
Carol A. Cox, +1-201-930-3720,
ccox@barrlabs.com
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