Endo Reports Second Quarter Financial Results and Updates 2012 Financial Guidance

07 Aug, 2012, 07:00 ET from Endo Health Solutions Inc.

CHADDS FORD, Pa., Aug 7, 2012  /PRNewswire/ --

  • Total quarterly revenues of $785 million, increased 29 percent versus prior year
  • Qualitest grows quarterly sales by 20 percent versus prior year
  • Commercial conversion of  OPANA® ER to new formulation designed to be crush-resistant  completed during second quarter
  • Company maintains adjusted diluted EPS in the range of $5.00 to $5.20; Now expects reported diluted (GAAP) EPS in the range of $1.07 to $1.27
  • Company now expects revenues of $3.05 to $3.175 billion in 2012

Endo Health Solutions (Nasdaq: ENDP) today reported a 29 percent increase in total revenues during the second quarter of 2012 to $785 million, compared with $608 million in the same quarter of 2011, reflecting organic growth and the acquisition of American Medical Systems (AMS) in June 2011.  Net income for the three months ended June 30, 2012, was $9 million, compared with net income of $55 million reported in the comparable 2011 period.  Reported net income includes the effect of a non-cash, pre-tax charge of $131 million for the period to reflect the estimated fair value of the settlement component of Endo's 2012 settlement and license agreement with Watson Pharmaceuticals (Watson), which settled all ongoing patent litigation among the parties relating to Watson's generic version of LIDODERM® (lidocaine patch 5%).   

As detailed in the supplemental financial information below, adjusted net income for the three months ended June 30, 2012, was $154 million, compared with $129 million in the same period in 2011.  Reported diluted earnings per share for the quarter ended June 30, 2012 were $0.08, compared with $0.44 in the second quarter of 2011.  Adjusted diluted earnings per share for the same period were $1.27 compared with $1.05 reported in 2011.

"Endo had a strong second quarter, as our diversified business produced the opportunities needed to deliver better than expected earnings per share," said Dave Holveck, president and CEO of Endo. "I remain very positive about the growth prospects across the board.  More importantly, I am proud of the introduction and receptivity of the new formulation of OPANA ER, which is designed to be crush resistant, as a positive step in the battle against inappropriate use.  Endo has been a long-time responsible partner in the pain management space, and we believe the reformulated OPANA ER is an important step in supporting appropriate use of the product."

FINANCIAL PERFORMANCE AT A GLANCE

($ in thousands, except per share amounts)

2nd Quarter

Six Months Ended June 30,

2012

2011

Change

2012

2011

Change

Total Revenues

$

785,188

$

607,611

29

%

$

1,475,821

$

1,167,637

26

%

Reported Net Income

$

9,465

$

54,583

(83)

%

$

(77,880)

$

110,370

NM

Reported Diluted EPS

$

0.08

$

0.44

(82)

%

$

(0.67)

$

0.91

NM

Adjusted Net Income

$

154,153

$

128,700

20

%

$

260,453

$

248,878

5

%

Adjusted Diluted EPS

$

1.27

$

1.05

21

%

$

2.14

$

2.04

5

%

ENDO PHARMACEUTICALS Branded pharmaceutical sales of $443 million for the second quarter represented an increase of 11 percent versus the prior year.  

Net sales of LIDODERM increased 16 percent on 2 percent prescription growth.  The increase in LIDODERM net sales is primarily a result of changes from November 2011, with respect to royalty obligations among Endo, Hind Healthcare Inc., and Teikoku Seiyaku Co. Ltd.; changes that have been previously described in our filings with the U.S. Securities and Exchange Commission.

During second quarter 2012, Endo announced that it had reached an agreement with Watson resolving two patent infringement lawsuits related to LIDODERM. The agreement resolved the inherent uncertainties of this litigation and reflects the uncertainty created by the regulatory challenges facing generic manufacturers seeking to market a generic version of LIDODERM. 

In addition, in March 2012, Endo submitted an amended Citizen Petition (CP) highlighting the scientific and regulatory support for requiring generic manufacturers to conduct comparative clinical endpoint studies to demonstrate bioequivalence to locally acting topical products like LIDODERM. The CP, which can be found at www.endo.com/investors/overview, is currently under review by the U.S. Food and Drug Administration (FDA), and the company continues to believe in the merits of the arguments set forth in the CP. 

During the second quarter of 2012, Endo announced the completion of the company's transition of its OPANA ER franchise to the new formulation designed to be crush-resistant.  In connection with the completion of this transition, the FDA moved all the strengths of the old formulation of OPANA ER to the Orange Book Discontinued List.  The result is that the new formulation designed to be crush-resistant (under NDA 201655) remains on the approved prescription drug product list and is the only commercially available formulation of OPANA ER.

QUALITEST Generic product sales of $160 million for the second quarter 2012 represented an increase of 20 percent over the same period last year.  The increase was driven by strong demand for Qualitest's diversified product portfolio and favorable pricing, resulting in gross profit of approximately 40 percent.  Strong net sales growth is expected for Qualitest for the remainder of 2012.  Sales growth is expected to be driven by strong demand for its commercial products and a stable pricing environment.  Qualitest remains focused on process improvements and increased efficiencies in order to enhance manufacturing capacity.

In July, Qualitest announced that it had received FDA approval for its Abbreviated New Drug Application (ANDA) for Levetiracetam extended-release tablets, 500mg and 750mg, the generic equivalent of UCB's Keppra XR®.  Additionally, on Aug. 6, the company announced its launch of a generic version of Singulair® (montelukast sodium) Tablets and Chewable Tablets.  Total combined branded sales for Montelukast Sodium Tablets and Chewables in the U.S. for the 12 months ending June 30, 2012 were approximately $4.9 billion, according to IMS Health.        

AMS Devices sales, driven by the June 2011 acquisition of AMS, were $128 million for the second quarter.  Men's Health, led by sales of the AMS 800® Artificial Urinary Sphincter, increased 40 percent on a pro forma basis in the second quarter of 2012, compared with same period last year. The sales growth rate for the period primarily benefits from the temporary withdrawal of the AMS 800 Artificial Urinary Sphincter from the market during second quarter 2011. Benign prostatic hyperplasia (BPH), although led by the increasing share of procedural volumes for the GreenLight XPS console and the accompanying MoXy fiber, decreased 4 percent on a pro forma basis in the second quarter of 2012.  Women's Health sales decreased 30 percent on a pro forma basis in the second quarter of 2012, compared with same period last year.  Net sales declines in Women's Health were driven by year-over-year declines in procedural volumes reflecting recent industry shifts following the FDA's advisory committee meeting regarding the use of surgical mesh.  AMS remains focused on physician and patient education activities as part of an overall effort to continue to encourage physicians and patients to discuss the risks and benefits of the company's surgical mesh devices as an important treatment option for patients who suffer from stress urinary incontinence and pelvic organ prolapse.

HEALTHTRONICS Services sales of $54 million for the second quarter 2012 represented an increase of 10 percent over last year.  Second quarter growth for HealthTronics was driven by the increasing sales of lab services and the strategic addition of its electronic medical records offering.  The company expects improved top-line growth from the Services segment in 2012 and beyond from the recent addition of its electronic medical records offering that is focused on practices specializing in urology and an expanding set of partnerships in its Endocare® cryoablation therapy business.

2012 Financial Guidance Endo's estimates are based on actual results for the six months ended June 30, 2012 and management's current belief about prescription trends, pricing levels, inventory levels and the anticipated timing of future product launches and events.  The company's guidance for reported (GAAP) earnings per share does not include any estimates for the potential future changes in the fair value of contingent consideration or for potential new corporate development transactions.  For the full year ended Dec 31, 2012 Endo estimates:

  • Total revenue to be between $3.05 billion and $3.175 billion
  • Total Endo Pharmaceuticals segment revenue to be between $1.675 billion and $1.73 billion
  • Total Qualitest segment revenue to be between $640 million and $670 million
  • Total AMS segment revenue to be between $515 million and $535 million
  • Total HealthTronics segment revenue to be between $220 million and $240 million
  • Reported (GAAP) diluted earnings per share to be between $1.07 and $1.27
  • Adjusted diluted earnings per share to be between $5.00 and $5.20
  • Cash flow from operations between $700 million and $800 million
  • Capital expenditures to be approximately $120 million

The company's 2012 guidance is based on certain assumptions including:

  • Adjusted gross margin of between 68 percent and 69 percent
  • Adjusted effective tax rate of between 30.5 percent and 31.5 percent
  • Weighted average number of common shares outstanding of 121 million shares for the year ended Dec 31, 2012

Balance Sheet Update During the second quarter of 2012, Endo made the mandatory payments of approximately $14 million to reduce the outstanding principal of term loan debt associated with the acquisition of AMS.  This brings the total repayments on this debt to approximately $523 million, inclusive of $465 million in cumulative voluntary prepayments, through second quarter 2012.  We believe that we will achieve our objective of reducing our debt to adjusted EBITDA ratio to 2.0 to 2.5 times in 2013. 

Conference Call Information Endo will conduct a conference call with financial analysts to discuss this news release today at 8:30 a.m. ET.  Investors and other interested parties may call 866-510-0707 (domestic) or +1 617-597-5376 (international) and enter passcode 14424394.  Please dial in 10 minutes prior to the scheduled start time.

A replay of the call will be available from Aug 7 at 10:30 p.m. ET until 12:00 p.m. ET on Aug. 21, 2012 by dialing 888-286-8010 (domestic) or +1 617-801-6888 (international) and entering passcode 91401586.

A simultaneous webcast of the call can be accessed by visiting www.endo.com.  In addition, a replay of the webcast will be available until 12:00 p.m. ET on Aug. 21, 2012.  The replay can be accessed by clicking on "Events" in the Investor Relations section of the website.

Supplemental Financial Information The following tables provide a reconciliation of our reported (GAAP) statements of operations to our adjusted statements of operations for each of the three months ended June 30, 2012 and 2011 (in thousands, except per share data):

 

Three Months Ended June 30, 2012 (unaudited)

 Actual Reported  (GAAP)

Adjustments

Adjusted

REVENUES

$

785,188

$

$

785,188

COSTS AND EXPENSES:

Cost of revenues

294,570

(58,857)

(1)

235,713

Selling, general and administrative

233,622

(5,697)

(2)

227,925

Research and development

45,427

(2,808)

(3)

42,619

Patent litigation settlement expense

131,361

(131,361)

(4)

Asset impairment charges

3,000

(3,000)

(5)

Acquisition-related and integration items, net

7,055

(7,055)

(6)

OPERATING INCOME

$

70,153

$

208,778

$

278,931

INTEREST EXPENSE, NET

45,985

(5,169)

(7)

40,816

LOSS ON EXTINGUISHMENT OF DEBT, NET

OTHER EXPENSE, NET

297

(300)

(8)

(3)

[INCOME] BEFORE INCOME TAX

$

23,871

$

214,247

$

238,118

INCOME TAX

1,776

69,559

(9)

71,335

CONSOLIDATED NET INCOME

$

22,095

$

144,688

$

166,783

Less: Net income attributable to noncontrolling interests

12,630

12,630

NET INCOME ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC.

$

9,465

$

144,688

$

154,153

DILUTED (LOSS) EARNINGS PER SHARE

$

0.08

$

1.27

DILUTED WEIGHTED AVERAGE SHARES

121,080

121,080

Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations:

(1) To exclude amortization of commercial intangible assets related to marketed products of $55,812, the impact of inventory step-up recorded as part of acquisition accounting of ($382), net milestone payments of $2,618 and certain integration costs and separation benefits incurred in connection with continued efforts to enhance the company's operations of $809.

(2) To exclude certain integration costs and separation benefits incurred in connection with continued efforts to enhance the company's operations of $2,945 and amortization of customer relationships of $2,752.

(3) To exclude milestone payments to partners.

(4) To exclude the impact of the Watson litigation settlement.

(5) To exclude asset impairment charges.

(6) To exclude acquisition-related and integration costs of $6,996 and a loss of $59 recorded to reflect the change in fair value of the contingent consideration associated with the Qualitest acquisition.

(7) To exclude additional interest expense as a result of adopting ASC 470-20.

(8) To exclude milestone payments to partners.

(9) To reflect the cash tax savings results from our recent acquisitions and the tax effect of the pre-tax adjustments above at applicable tax rates. 

 

Three Months Ended June 30, 2011 (unaudited)

 Actual Reported  (GAAP)

Adjustments

Adjusted

REVENUES

$

607,611

$

$

607,611

COSTS AND EXPENSES:

Cost of revenues

236,697

(52,018)

(1)

184,679

Selling, general and administrative

178,133

(954)

(2)

177,179

Research and development

40,840

(4,990)

(3)

35,850

Acquisition-related and integration items, net

17,626

(17,626)

(4)

OPERATING INCOME

$

134,315

$

75,588

$

209,903

INTEREST EXPENSE, NET

25,560

(4,719)

(5)

20,841

LOSS ON EXTINGUISHMENT OF DEBT, NET

8,548

(8,548)

(6)

OTHER INCOME, NET

(125)

(125)

INCOME BEFORE INCOME TAX

$

100,332

$

88,855

$

189,187

INCOME TAX

32,780

14,738

(7)

47,518

CONSOLIDATED NET INCOME

$

67,552

$

74,117

$

141,669

Less: Net income attributable to noncontrolling interests

12,969

12,969

NET INCOME ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC.

$

54,583

$

74,117

$

128,700

DILUTED (LOSS) EARNINGS PER SHARE

$

0.44

$

1.05

DILUTED WEIGHTED AVERAGE SHARES

122,686

122,686

Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations:

(1) To exclude amortization of commercial intangible assets related to marketed products of $40,023, the impact of inventory step-up recorded as part of acquisition accounting of $2,995, and milestone payments to partners of $9,000.

(2) To exclude certain integration costs and separation benefits incurred in connection with continued efforts to enhance the company's operations of $533 and amortization of customer relationships of $421.

(3) To exclude milestone and upfront payments to partners.

(4) To exclude acquisition-related and integration costs of $24,171 and a gain of $(6,545) recorded to reflect the change in fair value of the contingent consideration associated with the Indevus and Qualitest acquisitions.

(5) To exclude additional interest expense as a result of adopting ASC 470-20.

(6) To exclude the unamortized debt issuance costs written off and recorded as a loss on extinguishment of debt upon the early termination of our 2010 Credit Facility.

(7) To reflect the cash tax savings results from our recent acquisitions and the tax effect of the pre-tax adjustments above at applicable tax rates. 

The following tables provide a reconciliation of our reported (GAAP) statements of operations to our adjusted statements of operations for each of the six months ended June 30, 2012 and 2011 (in thousands, except per share data):

 

Six Months Ended June 30, 2012 (unaudited)

 Actual Reported  (GAAP)

Adjustments

Adjusted

REVENUES

$

1,475,821

$

$

1,475,821

COSTS AND EXPENSES:

Cost of revenues

659,390

(220,095)

(1)

439,295

Selling, general and administrative

488,076

(19,564)

(2)

468,512

Research and development

134,115

(49,780)

(3)

84,335

Patent litigation settlement expense

131,361

(131,361)

(4)

Asset impairment charges

43,000

(43,000)

(5)

Acquisition-related and integration items, net

10,804

(10,804)

(6)

OPERATING INCOME

$

9,075

$

474,604

$

483,679

INTEREST EXPENSE, NET

92,881

(10,145)

(7)

82,736

LOSS ON EXTINGUISHMENT OF DEBT, NET

5,426

(5,426)

(8)

OTHER EXPENSE, NET

748

(300)

(9)

448

(LOSS) INCOME BEFORE INCOME TAX

$

(89,980)

$

490,475

$

400,495

INCOME TAX

(37,550)

152,142

(10)

114,592

CONSOLIDATED NET (LOSS) INCOME

$

(52,430)

$

338,333

$

285,903

Less: Net income attributable to noncontrolling interests

25,450

25,450

NET INCOME ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC.

$

(77,880)

$

338,333

$

260,453

DILUTED (LOSS) EARNINGS PER SHARE

$

(0.67)

$

2.14

DILUTED WEIGHTED AVERAGE SHARES

117,022

121,836

Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations:

(1) To exclude amortization of commercial intangible assets related to marketed products of $106,415, the impact of inventory step-up recorded as part of acquisition accounting of $880, the accrual for the payment to Impax related to sales of OPANA ER of $110,000, net milestone payments of $1,487 and certain integration costs and separation benefits incurred in connection with continued efforts to enhance the company's operations of $1,313.

(2) To exclude certain integration costs and separation benefits incurred in connection with continued efforts to enhance the company's operations of $14,055 and amortization of customer relationships of $5,509.

(3) To exclude milestone payments to partners.

(4) To exclude the impact of the Watson litigation settlement.

(5) To exclude asset impairment charges.

(6) To exclude acquisition-related and integration costs of $10,872 and a gain of $(68) recorded to reflect the change in fair value of the contingent consideration associated with the Qualitest acquisition.

(7) To exclude additional interest expense as a result of adopting ASC 470-20.

(8) To exclude the unamortized debt issuance costs written off and recorded as a loss on extinguishment of debt upon our 2012 prepayments on our Term Loan indebtedness.

(9) To exclude milestone payments to partners.

(10) To reflect the cash tax savings results from our recent acquisitions and the tax effect of the pre-tax adjustments above at applicable tax rates.

 

Six Months Ended June 30, 2011 (unaudited)

 Actual Reported  (GAAP)

Adjustments

Adjusted

REVENUES

$

1,167,637

$

$

1,167,637

COSTS AND EXPENSES:

Cost of revenues

468,255

(103,015)

(1)

365,240

Selling, general and administrative

337,519

(4,416)

(2)

333,103

Research and development

82,970

(15,991)

(3)

66,979

Acquisition-related and integration items, net

23,699

(23,699)

(4)

OPERATING INCOME

$

255,194

$

147,121

$

402,315

INTEREST EXPENSE, NET

44,350

(9,260)

(5)

35,090

LOSS ON EXTINGUISHMENT OF DEBT, NET

8,548

(8,548)

(6)

OTHER INCOME, NET

223

223

INCOME BEFORE INCOME TAX

$

202,073

$

164,929

$

367,002

INCOME TAX

66,226

26,421

(7)

92,647

CONSOLIDATED NET INCOME

$

135,847

$

138,508

$

274,355

Less: Net income attributable to noncontrolling interests

25,477

25,477

NET INCOME ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC.

$

110,370

$

138,508

$

248,878

DILUTED (LOSS) EARNINGS PER SHARE

$

0.91

$

2.04

DILUTED WEIGHTED AVERAGE SHARES

121,724

121,724

Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations:

(1) To exclude amortization of commercial intangible assets related to marketed products of $77,234, the impact of inventory step-up recorded as part of acquisition accounting of $16,781, and milestone payments to partners of $9,000.

(2) To exclude certain integration costs and separation benefits incurred in connection with continued efforts to enhance the company's operations of $3,995 and amortization of customer relationships of $421.

(3) To exclude milestone and upfront payments to partners.

(4) To exclude acquisition-related and integration costs of $30,929 and a gain of $(7,230) recorded to reflect the change in fair value of the contingent consideration associated with the Indevus and Qualitest acquisitions. 

(5) To exclude additional interest expense as a result of adopting ASC 470-20.

(6) To exclude the unamortized debt issuance costs written off and recorded as a loss on extinguishment of debt upon the early termination of our 2010 Credit Facility.

(7) To reflect the cash tax savings results from our recent acquisitions and the tax effect of the pre-tax adjustments above at applicable tax rates.

See Endo's Current Report on Form 8-K filed today with the Securities and Exchange Commission for an explanation of Endo's reasons for using non-GAAP measures.

Reconciliation of Projected GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share Guidance for 2012

Year Ending

December 31, 2012

Projected GAAP diluted income per common share

$

1.07

To

$

1.27

Upfront and milestone-related payments to partners

0.64

0.64

Amortization of commercial intangible assets and inventory step-up

1.89

1.89

Acquisition and integration costs related to recent acquisitions.

0.35

0.35

One-time payment now expected to be made to Impax Labs

0.91

0.91

Watson litigation settlement

1.09

1.09

Impairment of long-lived assets

0.33

0.33

Interest expense adjustment for ASC 470-20 and other treasury related items

0.22

0.22

Tax effect of pre-tax adjustments at the applicable tax rates and certain other expected cash tax savings as a result of recent acquisitions

(1.50)

(1.50)

Diluted adjusted income per common share guidance

$

5.00

To

$

5.20

The company's guidance is being issued based on certain assumptions including:

  • Certain of the above amounts are based on estimates and there can be no assurance that Endo will achieve these results.
  • Includes all completed business development transactions as of Aug 7, 2012.

About Endo Endo Health Solutions Inc. (Endo) is a US-based diversified healthcare company that is redefining healthcare value by finding solutions for the unmet needs of patients along care pathways for pain management, pelvic health, urology, endocrinology and oncology. Through our operating companies: Endo Pharmaceuticals, Qualitest, AMS and HealthTronics, Endo is dedicated to improving care through a combination of branded products, generics, devices, technology and services that creates maximum value for patients, providers and payers alike. Learn more at www.endo.com.

(Tables Attached)

The following tables present Endo's unaudited Net Revenues for the three and six months ended June 30, 2012 and 2011:

 

 

Endo Health Solutions Inc. Net Revenues (unaudited) (in thousands)

Three Months Ended June 30,

Percent Growth

Six Months Ended June 30,

Percent Growth

2012

2011

2012

2011

Endo Pharmaceuticals:

LIDODERM®

$

228,006

$

195,840

16

%

$

438,020

$

385,565

14

%

OPANA® ER

93,413

92,853

1

%

174,499

177,468

(2)

%

Voltaren® Gel

43,690

36,655

19

%

43,690

67,953

(36)

%

PERCOCET®

25,824

27,675

(7)

%

49,204

54,635

(10)

%

FROVA®

14,002

14,163

(1)

%

29,646

27,371

8

%

SUPPRELIN® LA

14,797

12,515

18

%

28,243

23,737

19

%

VANTAS®

4,346

2,054

112

%

8,238

5,599

47

%

VALSTAR®

6,087

5,124

19

%

12,323

9,925

24

%

FORTESTA® Gel

6,881

2,028

239

%

12,703

1,059

1,100

%

Other Branded Products

1,120

5,609

(80)

%

855

12,579

(93)

%

Royalty and Other Revenue

4,620

3,751

23

%

8,939

7,890

13

%

Total Endo Pharmaceuticals

$

442,786

$

398,267

11

%

$

806,360

$

773,781

4

%

Total Qualitest

$

159,895

$

133,047

20

%

$

305,240

$

267,456

14

%

American Medical Systems:

Men's Health

66,972

9,768

586

%

134,412

9,768

1,276

%

Women's Health

32,466

7,787

317

%

66,364

7,787

752

%

BPH Therapy

28,693

9,257

210

%

57,521

9,257

521

%

Total AMS

128,131

26,812

378

%

258,297

26,812

863

%

HealthTronics

54,376

49,485

10

%

105,924

99,588

6

%

Total Revenue

785,188

607,611

29

%

1,475,821

1,167,637

26

%

The following table presents Endo's unaudited Pro forma Net Revenues for the six quarters ended June 30, 2012 giving effect to the AMS acquisition as if it had occurred on January 1, 2011:

 

Endo Health Solutions Inc.

Net Pro Forma Revenues (unaudited)

(in thousands)

 

2011

2012

Endo Pharmaceuticals:

Q1

Q2

Q3

Q4

Q1

Q2

LIDODERM®

$

189,725

$

195,840

$

207,364

$

232,252

$

210,014

$

228,006

OPANA® ER

84,615

92,853

97,753

109,118

81,086

93,413

Voltaren® Gel

31,298

36,655

36,260

38,488

43,690

PERCOCET®

26,960

27,675

28,130

21,835

23,380

25,824

FROVA®

13,208

14,163

14,815

15,994

15,644

14,002

SUPPRELIN® LA

11,222

12,515

12,695

13,683

13,446

14,797

VANTAS®

3,545

2,054

5,013

8,366

3,892

4,346

VALSTAR®

4,801

5,124

6,295

5,301

6,236

6,087

FORTESTA® Gel

(969)

2,028

8,409

5,401

5,822

6,881

Other Branded Products

6,970

5,609

4,948

4,224

(265)

1,120

Royalty and Other Revenue

4,221

3,751

3,829

3,813

4,319

4,620

Total Endo Pharmaceuticals

$

375,596

$

398,267

$

425,511

$

458,475

$

363,574

$

442,786

Total Qualitest

$

134,409

$

133,047

$

147,975

$

151,423

$

145,345

$

159,895

American Medical Systems:

Men's Health

67,407

47,790

66,548

69,520

67,440

66,972

Women's Health

45,325

46,689

38,240

39,482

33,898

32,466

BPH Therapy

28,054

29,784

26,731

32,966

28,828

28,693

Total AMS

$

140,786

$

124,263

$

131,519

$

141,968

$

130,166

$

128,131

HealthTronics(1)

50,103

49,485

54,073

51,540

51,548

54,376

Total Revenue

$

700,894

$

705,062

$

759,078

$

803,406

$

690,633

$

785,188

(1) The HealthTronics segment does not include the pro forma impact of pre-acquisition revenues from the recently acquired electronic medical records providers, Intuitive Medical Software (IMS) and meridianEMR, Inc.

The following table presents unaudited condensed consolidated Balance Sheet data at June 30, 2012 and December 31, 2011:

June 30, 2012

December 31, 2011

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

391,946

$

547,620

Accounts receivable, net

721,850

733,222

Inventories, net

327,603

262,419

Other assets

297,049

244,835

Total current assets

$

1,738,448

$

1,788,096

PROPERTY, PLANT AND EQUIPMENT, NET

319,543

297,731

GOODWILL

2,565,253

2,558,041

OTHER INTANGIBLES, NET

2,353,455

2,504,124

OTHER ASSETS

125,176

144,591

TOTAL ASSETS

$

7,101,875

$

7,292,583

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable and accrued expenses

$

1,140,072

$

993,216

Other current liabilities

121,938

128,562

Total current liabilities

$

1,262,010

$

1,121,778

DEFERRED INCOME TAXES

551,128

617,677

LONG-TERM DEBT, LESS CURRENT PORTION, NET

3,174,140

3,424,329

OTHER LIABILITIES

161,977

89,208

STOCKHOLDERS' EQUITY:

Total Endo Health Solutions Inc. stockholders' equity

$

1,892,908

$

1,977,690

Noncontrolling interests

59,712

61,901

Total stockholders' equity

$

1,952,620

$

2,039,591

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

7,101,875

$

7,292,583

The following table presents unaudited condensed consolidated Statement of Cash Flow data for the six months ended June 30, 2012 and 2011:

Six Months Ended June 30,

2012

2011

OPERATING ACTIVITIES:

Consolidated net (loss) income

$

(52,430)

$

135,847

Adjustments to reconcile consolidated net (loss) income to net cash provided by operating activities:

Depreciation and amortization

139,563

97,739

Stock-based compensation

33,346

18,772

Amortization of debt issuance costs and premium / discount

17,521

14,345

Other

(26,591)

9,366

Changes in assets and liabilities which provided (used) cash:

64,930

(61,756)

Net cash provided by operating activities

176,339

214,313

INVESTING ACTIVITIES:

Purchases of property, plant and equipment, net

(46,414)

(23,324)

Other

14,243

(2,345,270)

Net cash used in investing activities

(32,171)

(2,368,594)

FINANCING ACTIVITIES:

Purchase of common stock, net of issuance of common stock from treasury

(53,101)

(34,701)

Distributions to noncontrolling interests

(26,158)

(25,813)

Principal (payments) on indebtedness, net of proceeds

(233,445)

2,427,228

Exercise of Endo Health Solutions Inc. stock options

10,819

20,328

Other

1,752

(77,210)

Net cash (used in) provided by financing activities

(300,133)

2,309,832

Effect of foreign exchange rate

291

104

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

(155,674)

155,655

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

547,620

466,214

CASH AND CASH EQUIVALENTS, END OF PERIOD

$

391,946

$

621,869

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Statements including words such as "believes," "expects," "anticipates," "intends," "estimates," "plan," "will," "may," "look forward," "intend," "guidance," "future" or similar expressions are forward-looking statements.  Because these statements reflect our current views, expectations and beliefs concerning future events, these forward-looking statements involve risks and uncertainties. Investors should note that many factors, as more fully described under the caption "Risk Factors" in our Form 10-K, Form 10-Q and Form 8-K filings with the Securities and Exchange Commission and as otherwise enumerated herein or therein, could affect our future financial results and could cause our actual results to differ materially from those expressed in forward-looking statements contained in our Annual Report on Form 10-K. The forward-looking statements in this press release are qualified by these risk factors. These are factors that, individually or in the aggregate, could cause our actual results to differ materially from expected and historical results. We assume no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

SOURCE Endo Health Solutions Inc.



RELATED LINKS

http://www.endo.com