Endo Pharmaceuticals Reports Second Quarter Revenues and Updates Financial Guidance, Reflecting the Acquisition of American Medical Systems

Aug 09, 2011, 07:00 ET from Endo Pharmaceuticals

CHADDS FORD, Pa., Aug. 9, 2011 /PRNewswire/ --

  • Total quarterly revenues of $608 million increase 53 percent versus prior year;
  • Reported quarterly diluted EPS of $0.44 versus $0.44 for prior year;
  • Adjusted diluted EPS of $1.05 reflecting growth of 30 percent from 2010;
  • Company increases 2011 revenue guidance to a range of $2.72 to $2.80 billion; and
  • Company increases 2011 adjusted diluted EPS guidance to a range of $4.55 to $4.65 and Reported or GAAP diluted EPS to a range $2.22 to $2.32 reflecting continued strong growth in core operations and the recent acquisition of American Medical Systems.

Endo Pharmaceuticals (Nasdaq: ENDP) today reported financial results for the second quarter of 2011.

Total revenues during the second quarter of 2011 increased 53 percent to $607.6 million, compared with $396.5 million in the same quarter of 2010.  Net income for the three months ended June 30, 2011 was $54.6 million, compared with $51.5 million in the comparable 2010 period.  As detailed in the supplemental financial information below, adjusted net income for the three months ended June 30, 2011, was $128.7 million, compared with $94.7 million in the same period in 2010.  Reported diluted earnings per share for the quarter ended June 30, 2011 were $0.44 compared with $0.44 in the second quarter of 2010. Adjusted diluted earnings per share for the same period were $1.05 compared with $0.81 reported in 2010.

($ in thousands, except per share amounts)

2nd Quarter

Six Months Ended June 30

2011

2010

Change

2011

2010

Change

Total Revenues

$607,611

$396,524

53%

$1,167,637

$760,936

53%

Reported Net Income

54,583

51,460

6%

110,370

111,815

-1%

Reported Diluted EPS

0.44

0.44

0%

0.91

0.95

-4%

Adjusted Net Income

128,700

94,699

36%

248,878

181,881

37%

Adjusted Diluted EPS

1.05

$0.81

30%

2.04

$1.55

32%

"Endo had a strong second quarter, with record revenues and earnings in our legacy branded pharmaceuticals pain franchise, which had double-digit revenue growth year-over-year," said Dave Holveck, president and CEO of Endo. "I remain very positive about the growth prospects of our new integrated business in branded pharmaceuticals, generics, and devices and services.  I believe our strategy has positioned us well in the new healthcare environment to provide the right path to sustainable, long-term growth and to becoming one of our industry's premier providers of comprehensive healthcare solutions."

BRANDED PHARMACEUTICALS

Branded pharmaceutical sales of $398.3 million for the second quarter represented an increase of 8% versus the prior year. These results reflect strong commercial performance in our branded pain franchise where net sales grew 13% year-over-year, with a strong second quarter performance by OPANA® ER, and Voltaren® Gel.  OPANA ER net sales grew 64% on prescription growth of 57%.  Voltaren Gel net sales grew 39%.  These are robust results for established brands that continue to produce cash flows that enable us to invest in our future growth.

GENERICS

Generic sales of $133.0 million for the second quarter represented an increase of 381% versus the prior year.  Quarter-over-quarter, generic sales declined $1.4 million, primarily as a result of tornadoes in April near our facility in Huntsville, Alabama that created power outages and disrupted operations for approximately one week. At June 30, 2011, we are the fifth-largest US generics manufacturer as measured by the number of prescriptions filled.  We continue to execute on our ANDA pipeline in multiple therapeutic areas with 49 ANDAs currently under active FDA review.  We anticipate 14 ANDAs being filed in 2011 and expect to receive 14 product approvals in 2011, of which we have received 5 year-to-date.  

DEVICES AND SERVICES

Our devices and services sales were $76.3 million for the second quarter and demonstrate our increased diversification.  Revenues from our device and services segment include $26.8 million from our recent acquisition of American Medical Systems, (AMS), which furthers Endo's evolution from a product-driven company to a healthcare solutions provider.  We believe that AMS strengthens Endo's core urology franchise, diversifies revenue and improves gross margin. The acquisition of AMS is immediately accretive to earnings on an adjusted basis and along with HealthTronics, supports Endo's strategy to build scale in our devices and services segment.  Additional details of net sales performance within Endo's devices and services segment are located in the attached tables at the end of this press release.

2011 Financial Guidance

Endo's estimates are based on actual results for the six months ended June 30, 2011 and management's current belief about prescription trends, pricing levels, inventory levels and the anticipated timing of future product launches and events.  Our guidance takes into account that we closed our acquisition of American Medical Systems on June 17, 2011.  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 December 31, 2011 Endo estimates:

  • Total revenue to be between $2.72 billion and $2.80 billion
  • Total Branded Pharmaceuticals segment revenue to be between $1.625 billion and $1.69 billion
  • Total Generics segment revenue to be between $550 million and $575 million
  • Total Device and Services segment revenue to be between $520 million and $550 million
  • Reported (GAAP) diluted earnings per share to be between $2.22 and $2.32
  • Adjusted diluted earnings per share to be between $4.55 and $4.65

The company's 2011 guidance is based on certain assumptions including:

  • Adjusted gross margin of between 69% and 71%
  • Adjusted effective tax rate of approximately 28%
  • Weighted average number of common shares outstanding of 123 million shares for the year ended December 31, 2011; and
  • No generic competition for Voltaren Gel in 2011

Selected Operating Highlights

Opana® ER Complete Response

On June 23, 2011, Endo Pharmaceuticals announced that it received notification from the U.S. Food and Drug Administration (FDA) that Endo's complete response to the FDA's Jan. 7, 2011 Action Letter relating to Endo's new drug application (NDA) for a new formulation of Opana ER has been accepted.  The new formulation was developed in partnership with Grunenthal GmbH and is designed to provide some resistance to certain types of product manipulation.  FDA has set a Prescription Drug User Fee Act (PDUFA) date of Dec. 13, 2011.

Completion of Acquisition of American Medical Systems

On June 17, 2011, Endo Pharmaceuticals acquired American Medical Systems, Inc. (AMS), for approximately $2.9 billion. AMS brings Endo scale in its device and services business segment, and the combination of AMS with Endo's existing platform will provide additional cost-effective solutions across the entire urology spectrum.  It is expected that the combined company will deliver more comprehensive healthcare solutions across its diversified business in branded pharmaceuticals, generics, and devices and services in key therapeutic areas including pain and urology.

Pricing of Private Offering of Senior Notes and 2011 Credit Facility

On June 3, 2011, Endo Pharmaceuticals announced that it priced $500 million aggregate principal amount of 7% senior unsecured notes due 2019 at an issue price of par and $400 million aggregate principal amount 7 1/4% senior unsecured notes due 2022 at an issue price of par (collectively, the "notes") in connection with the previously announced private offering.

On June 17, 2011, we established a $1.5 billion, five-year senior secured term loan facility (the Term Loan A Facility) and a $700 million, seven-year senior secured term loan facility (the Term Loan B Facility).

The net proceeds of the notes offerings, together with cash on hand and borrowings under Endo's new credit facility, were used to finance Endo's acquisition of AMS, refinance Endo's existing credit facility and existing AMS indebtedness, as well as pay related fees and expenses.

Approval of Generic Products

On May 18, 2011, we received approval from the FDA for dexamethasone elixir, USP, 0.5 mg/ 5 mL and Orsythia™ Tablets (levonorgestrel and ethinyl estradiol tablets, USP, 0.1 mg/0.02 mg). On June 3, 2011 we received approval from the FDA for telmisartan/HCTZ tablets.

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 866-203-2528 (domestic) or 617-213-8847 (international) and enter passcode 76257989.  Please dial in 10 minutes prior to the scheduled start time.

A replay of the call will be available from August 9 at 12:00 p.m. ET until 12:30 p.m. ET on August 23, 2011 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and entering passcode 82161745.

A simultaneous webcast of the call may be accessed by visiting www.endo.com.  In addition, a replay of the webcast will be available until 12:00 p.m. ET on August 23, 2011.  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, 2011 and June 30, 2010 (in thousands, except per share data):

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 items

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 TAXES

$  100,332

$  88,855

$  189,187

INCOME TAXES

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 PHARMACEUTICALS HOLDINGS INC.

$  54,583

74,117

$  128,700

DILUTED 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 start-up 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 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.

Three Months Ended June 30, 2010 (unaudited)

Actual Reported (GAAP)

Adjustments

Adjusted

REVENUES

$  396,524

$  —

$  396,524

COSTS AND EXPENSES:

 Cost of revenues

107,216

(17,135)

(1)

90,081

 Selling, general and administrative

133,251

(4,006)

(2)

129,245

 Research and development

44,656

(15,911)

(3)

28,745

 Impairment of other intangible assets

13,000

(13,000)

(4)

 Acquisition-related items

4,796

(4,796)

(5)

OPERATING INCOME

$  93,605

$  54,848

$  148,453

INTEREST EXPENSE, NET

9,984

(4,212)

(6)

5,772

OTHER EXPENSE, NET

(201)

(35)

(7)

(236)

INCOME BEFORE INCOME TAXES

$  83,822

$  59,095

$  142,917

INCOME TAXES

32,362

15,856

(8)

48,218

NET INCOME ATTRIBUTABLE TO ENDO PHARMACEUTICALS HOLDINGS INC.

$  51,460

$  43,239

$  94,699

DILUTED EARNINGS PER SHARE

$  0.44

$  0.81

DILUTED WEIGHTED AVERAGE SHARES

116,660

116,660

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.

(2) To exclude certain costs incurred with connection with continued efforts to enhance the Company's operations.

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

(4) To exclude an impairment of other intangible assets.

(5) To exclude acquisition-related costs of $4,566 as well as the impact, under purchasing accounting, of a loss recorded to reflect the change in the company's current estimate of fair value, in accordance with GAAP, of the contingent consideration associated with the Indevus acquisition of $230.

(6) To exclude additional interest expense as a result of adopting ASC 470-20 of $4,306 and to exclude amortization of the premium on debt acquired from Indevus of ($94).

(7) To exclude changes in fair value of financial instruments, net.

(8) To reflect the cash tax savings resulting from the Indevus acquisition 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, 2011 and June 30, 2010 (in thousands, except per share data):

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 items

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 EXPENSE, NET

223

223

INCOME BEFORE INCOME TAXES

$  202,073

$  164,929

$  367,002

INCOME TAXES

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 PHARMACEUTICALS HOLDINGS INC.

$  110,370

138,508

$  248,878

DILUTED 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 start-up 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 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.

Six Months Ended June 30, 2010 (unaudited)

Actual Reported (GAAP)

Adjustments

Adjusted

REVENUES

$  760,936

$  —

$  760,936

COSTS AND EXPENSES:

 Cost of revenues

201,289

(34,352)

(1)

166,937

 Selling, general and administrative

266,586

(9,008)

(2)

257,578

 Research and development

73,824

(19,403)

(3)

54,421

 Impairment of other intangible assets

13,000

(13,000)

(4)

 Acquisition-related items

6,325

(6,325)

(5)

OPERATING INCOME

$  199,912

$  82,088

$  282,000

INTEREST EXPENSE, NET

19,788

(8,262)

(6)

11,526

OTHER INCOME, NET

(420)

(239)

(7)

(659)

INCOME BEFORE INCOME TAXES

$  180,544

$  90,589

$  271,133

INCOME TAXES

68,729

20,523

(8)

89,252

NET INCOME ATTRIBUTABLE TO ENDO PHARMACEUTICALS HOLDINGS INC.

$  111,815

$  70,066

$  181,881

DILUTED EARNINGS PER SHARE

$  0.95

$  1.55

DILUTED WEIGHTED AVERAGE SHARES

117,346

117,346

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.

(2) To exclude certain costs incurred with connection with continued efforts to enhance the Company's operations.

(3) To exclude milestone-like payment and milestone and upfront payments to partners of $18,891 and certain costs incurred in connection with continued efforts to enhance the cost structure of the company of $512.

(4) To exclude an impairment of other intangible assets.

(5) To exclude Indevus related costs of $5,205 as well as the impact, under purchasing accounting, of a loss recorded to reflect the change in the company's current estimate of fair value, in accordance with GAAP, of the contingent consideration associated with the Indevus acquisition of $1,120.

(6) To exclude additional interest expense as a result of adopting ASC 470-20 of $8,450 and to exclude amortization of the premium on debt acquired from Indevus of ($188).

(7) To exclude changes in fair value of financial instruments, net.

(8) To reflect the cash tax savings resulting from the Indevus acquisition and the tax effect of the pre-tax adjustments above at applicable tax rates.

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

Reconciliation of Projected GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share Guidance for 2011

Year Ending

December 31, 2011

Projected GAAP diluted income per common share

$2.22

To

$2.32

Upfront and milestone-related payments to partners

$0.27

$0.27

Amortization of commercial intangible assets and inventory step-up

$1.94

$1.94

Acquisition and integration costs related to recent acquisitions

$0.40

$0.40

Interest expense adjustment for ASC 470-20 and the amortization of the premium on debt acquired from Indevus

$0.16

$0.16

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

($0.44)

($0.44)

Diluted adjusted income per common share guidance

$4.55

To

$4.65

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 August 9, 2011.

About Endo

Endo Pharmaceuticals is a U.S.-based, specialty healthcare solutions company with a diversified business model, operating in three key business segments – branded pharmaceuticals, generics and devices and services.  We deliver an innovative suite of complementary products and services to meet the needs of patients in areas such as pain management, pelvic health, urology, endocrinology and oncology. For more information about Endo Pharmaceuticals, and its wholly owned subsidiaries American Medical Systems, HealthTronics, Inc. and Qualitest Pharmaceuticals, please visit http://www.endo.com/.

(Tables Attached)

The following tables present Endo's unaudited Net Revenues for the three and six months ended June 30, 2011 and 2010:

Endo Pharmaceuticals Holdings Inc. Net Revenues (unaudited) (in thousands)

Three Months Ended

June 30

Six Months Ended

June 30

2011

2010

Percent Growth

2011

2010

Percent Growth

Branded Pharmaceuticals

LIDODERM®

$195,840

$196,090

0%

$385,565

$378,697

2%

OPANA® ER

92,853

56,555

64%

177,468

106,321

67%

Voltaren® Gel

36,655

26,323

39%

67,953

46,685

46%

PERCOCET®

27,675

31,805

-13%

54,635

60,478

-10%

FROVA®

14,163

14,680

-4%

27,371

29,762

-8%

SUPPRELIN® LA

$      12,515

12,209

3%

23,737

22,796

4%

VANTAS®

2,054

4,960

-59%

5,599

9,349

-40%

VALSTAR™

5,124

4,016

28%

9,925

7,766

28%

FORTESTA™ Gel

2,028

NM

1,059

NM

Other Branded Products(1)

$   5,609

$  19,799

-72%

$  12,579

$  39,056

-68%

Royalty and Other Revenue

3,751

2,403

56%

7,890

6,466

22%

Total Branded Pharmaceuticals

$398,267

$  368,840

8%

$  773,781

$707,376

9%

Total Generics

$133,047

$  27,684

381%

$267,456

$  53,560

399%

Device and Services

HealthTronics

$        49,485

NM

$           99,588

NM

AMS

Men's Health

$   9,768

$  —

NM

$    9,768

$  —

NM

Women's Health

7,787

NM

7,787

NM

BPH Therapy

9,257

NM

9,257

NM

Uterine Health(2)

NM

NM

Sub-total

$      26,812

$  —

NM

$  26,812

$  —

NM

Total Device and Services

$      76,297

$  —

NM

$126,400

$  —

NM

Total Revenue

$    607,611

$396,524

53%

$1,167,637

$760,936

53%

(1) To conform to current year presentation, net sales from our non-time released formulation of Opana® have been reclassified and are now included within other branded product results.

(2)The uterine health product line, Her Option® was sold in February 2010.  Revenues for 2010 consist of end-customer revenue earned prior to the date of sale, in addition to revenue earned as part of the product supply agreement with CooperSurgical, Inc., which continued through the fourth quarter of 2010.

The following table presents Endo's unaudited Net Pro forma Revenues for the six quarters ended June 30, 2011 giving effect to the  AMS acquisition, the Qualitest acquisition, the Penwest acquisition and the HealthTronics, Inc. acquisition as if they had occurred on January 1, 2010 :

Endo Pharmaceuticals Holdings Inc. Net Pro Forma Revenues (unaudited) (in thousands)

2010

2011

Q1

Q2

Q3

Q4

Q1

Q2

Branded Pharmaceuticals

LIDODERM®

$182,607

$196,090

$196,263

$207,649

$189,725

$195,840

OPANA® ER

49,765

56,555

58,810

74,735

84,615

92,853

Voltaren® Gel

20,362

26,323

26,947

31,309

31,298

36,655

PERCOCET®

28,673

31,805

29,950

30,919

26,960

27,675

FROVA®

15,082

14,680

14,136

15,401

13,208

14,163

SUPPRELIN® LA

$  10,587

$  12,209

$  11,018

$  13,096

$11,222

$  12,515

VANTAS®

4,389

4,960

3,640

4,001

3,545

2,054

VALSTAR™

3,749

4,016

1,598

4,757

4,801

5,124

FORTESTA™ Gel

(969)

2,028

Other Branded Products(1)

$  19,259

$  19,799

$  19,471

$10,069

$6,970

$5,609

Royalty and Other Revenue

$    5,911

$    3,647

$    4,101

$    3,325

$ 4,139

$    3,751

Total Branded Pharmaceuticals

$340,384

$370,084

$365,934

$395,261

$375,596

$398,267

Total Generics

$105,809

$112,075

$126,663

$122,791

$134,409

$133,047

Device and Services

HealthTronics

$  48,389

$  50,300

$  51,686

$  50,458

$  50,103

$  49,485

AMS

Men's Health

$  64,480

$  61,361

$  55,177

$  65,221

$  67,407

$  47,790

Women's Health

42,748

44,491

41,192

48,816

45,325

46,689

BPH Therapy

25,911

29,176

26,890

32,615

28,054

29,784

Uterine Health(2)

1,787

1,340

770

341

Sub-total

$134,926

$136,368

$124,029

$146,993

$140,786

$124,263

Total Device and Services

$183,315

$186,668

$175,715

$197,451

$190,889

$173,748

Total Revenue

$629,508

$668,827

$668,312

$715,503

$700,894

$705,062

(1) To conform to current year presentation, net sales from our non-time released formulation of Opana® have been reclassified and are now included within other branded product results.

(2) The uterine health product line, Her Option® was sold in February 2010.  Revenues for 2010 consist of end-customer revenue earned prior to the date of sale, in addition to revenue earned as part of the product supply agreement with CooperSurgical, Inc., which continued through the fourth quarter of 2010.

The following table presents unaudited condensed consolidated Balance Sheet data at June 30, 2011 and December 31, 2010:

June 30,

2011

December 31, 2010

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$  621,869

$  466,214

Marketable securities

71,003

Accounts receivable, net

654,056

547,807

Inventories, net

303,658

178,805

Other assets

243,048

166,708

Total current assets

$  1,893,634

$  1,359,534

PROPERTY, PLANT AND EQUIPMENT, NET

271,833

215,295

GOODWILL

2,474,669

715,005

OTHER INTANGIBLES, NET

2,837,928

1,531,760

OTHER ASSETS

164,758

90,795

TOTAL ASSETS

$  7,642,822

$  3,912,389

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Current liabilities

$  1,439,264

$  735,828

Total current liabilities

$  1,439,264

$  735,828

ACQUISITION-RELATED CONTINGENT CONSIDERATION

2,490

16,050

LONG-TERM DEBT, LESS CURRENT PORTION, NET

3,428,675

1,045,801

OTHER LIABILITIES

839,359

311,381

STOCKHOLDERS' EQUITY:

Total Endo Pharmaceuticals Holdings Inc. stockholders' equity

$  1,872,156

1,741,591

Noncontrolling interests

60,878

61,738

Total stockholders' equity

$  1,933,034

1,803,329

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$  7,642,822

$  3,912,389

The following table presents unaudited condensed consolidated statement of cash flow data for the six months ended June 30, 2011 and 2010:

Six Months Ended March 31,

2011

2010

OPERATING ACTIVITIES:

Consolidated net income

$    135,847

$    111,815

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

Depreciation and amortization

97,739

42,955

Stock-based compensation

18,772

10,391

Amortization of debt issuance costs and premium / discount

14,345

11,564

Other

9,366

15,475

Changes in assets and liabilities which provided cash:

(61,756)

(15,844)

Net cash provided by operating activities

214,313

176,356

INVESTING ACTIVITIES:

Purchases of property, plant and equipment, net

(23,905)

(6,166)

Acquisition, net of cash acquired

(2,342,556)

Other

(2,133)

160,951

Net cash provided by (used in) investing activities

(2,368,594)

154,785

FINANCING ACTIVITIES:

Proceeds from debt, net of principal payments

2,426,835

Deferred financing fees

(81,753)

Purchase of common stock

(34,701)

(50,064)

Other

(549)

2,732

Net cash used in financing activities

2,309,832

(47,332)

Effect of foreign exchange rate

104

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

155,655

283,809

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

466,214

708,462

CASH AND CASH EQUIVALENTS, END OF PERIOD

$    621,869

$    992,271

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.

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

SOURCE Endo Pharmaceuticals



RELATED LINKS

http://www.endo.com