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Amneal Announces Solid Second Quarter 2018 Financial Results

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Amneal Announces Solid Second Quarter 2018 Financial Results

‒ GAAP Net Revenue of $414 Million; Adjusted Net Revenue of $462 Million on a Combined Company Basis ‒

‒ GAAP Loss Per Diluted Share of $0.15; Adjusted Income Per Share of $0.24 on a Combined Company Basis ‒

‒ Integration of Amneal and Impax Advancing Ahead of Schedule; On Track to Achieve More Than $200 Million in Cost Synergies ‒

‒ Company Updates 2018 Financial Guidance ‒

PR Newswire

BRIDGEWATER, N.J., Aug. 9, 2018 /PRNewswire/ -- Amneal Pharmaceuticals, Inc. (NYSE:AMRX) (the "Company") announced its results today for the quarter ended June 30, 2018.

"We delivered solid sequential growth across our Generics and Specialty Pharma businesses on a combined adjusted basis compared to the first quarter of 2018 as we began to realize the benefits of our recent transformative combination with Impax," said Rob Stewart, President and CEO of Amneal.

"On a sequential basis, our Generics business delivered solid growth as we capitalized on the 16 product launches during the first six months of 2018, including generic versions of gConcerta®, (methylphenidate HCI ER), Mephyton® (phytonadione) and Welchol® (colesevelam). We also benefited from higher sales of generic versions of Vagifem®  (yuvafem), Aggrenox® (aspirin and extended-release dipyridamole) and Voltaren® Gel 1% (diclofenac sodium gel), which more than offset the seasonal decline in sales of generic gTamiflu® (oseltamivir phosphate).

In our Specialty Pharma business, we achieved sequential growth from sales of key products Rytary® and Zomig® nasal spray and across our anthelmintic product franchise.

We have made significant progress with the integration of Impax and continue to anticipate delivering at least $200 million in annual synergies within three years of the May 4th closing. Although we are revising our 2018 guidance to reflect the delayed timing of deliveries of our Epinephrine Auto-Injector product from our third-party manufacturer and the timing of certain key launches, we remain confident in the long-term growth potential for Amneal as we leverage our enhanced portfolio and focus on driving commercial and operational excellence initiatives to fuel organic growth, generate savings and strong cash flow, and deliver long-term returns for our shareholders."

 

Summary of GAAP and Combined Adjusted Results



Three Months Ended


Variance

(Unaudited; In thousands)

June 30,
2018

March 31,
2018

June 30,
2017


Sequential

Year/
Year

GAAP Results1







Net revenue

$413,787

$275,189

$259,871


50.4%

59.2%

Net (loss) income

$(250,090)

$51,652

$37,748


NM

NM

Diluted EPS

$(0.15)

N/A

N/A


N/A

N/A








Non-GAAP Results2







Combined net revenue

$462,328

$427,030

$474,171


8.2%

(2.5)%

Combined adjusted net income

$70,153

$38,632

$62,472


81.6%

12.3%

Combined EBITDA

$(204,048)

$14,930

$88,993


NM

NM

Combined adjusted EBITDA

$138,836

$95,904

$118,853


44.8%

16.8%

Combined adjusted diluted EPS

$0.24

$0.14

N/A


71.4%

N/A


1 Current year financials reflect the results of Amneal Pharmaceuticals LLC consolidating the results of Impax Laboratories, LLC from the transaction closing date on May 4, 2018. Prior year GAAP results represent Amneal Pharmaceuticals LLC only.

2 Assumes the combination between Amneal Pharmaceuticals LLC and Impax Laboratories, LLC occurred on the first day of the quarter presented.

"NM" is used when the variance is not meaningful because it is immaterial in absolute or percentage terms.

The Company's financial results are presented in accordance with GAAP, which includes the results of Amneal Pharmaceuticals LLC consolidating the results of Impax Laboratories, LLC ("Impax") from the transaction closing date of May 4, 2018. Management believes that using additional non-GAAP measures on a combined company basis will facilitate the evaluation of the financial performance of the Company and its ongoing operations. The adjusted results presented combine the results of Amneal with Impax as if the closing date had occurred on the first day of all periods presented. All combined business results presented in this News Release are unaudited. Such combined business results are not prepared in accordance with Article 11 of Regulation S-X. Refer to the "Non-GAAP Financial Measures" section for additional information, including reconciliations of all GAAP to non-GAAP financial measures.

GAAP Basis Results

  • GAAP net revenue in the second quarter of 2018 was $413.8 million, an increase of 59.2%, compared to the second quarter of 2017, primarily due to the combination with Impax on May 4, 2018.  
  • GAAP net loss in the second quarter of 2018 was $250.1 million, compared to net income of $37.7 million for the second quarter of 2017. The second quarter's results were impacted by the May 4th combination with Impax and include charges relating to the vesting of profit participation units ("PPUs"), special employee bonuses and restructuring charges as a result of the combination.
  • GAAP diluted EPS in the second quarter of 2018 was a loss of $0.15, due to the PPU, bonus and restructuring charges noted above. GAAP diluted EPS for the second quarter of 2017 is not available as Amneal Pharmaceuticals LLC was a privately-held company for the period presented.

Non-GAAP Combined Results

  • Combined adjusted net revenue in the second quarter of 2018 was $462.3 million, a decrease of 2.5%, compared to the second quarter of 2017, primarily due to a 6.4% decline in combined net revenue for the Generics business, partially offset by a 24.1% increase in combined net revenue for the Specialty Pharma business revenue.
  • Combined adjusted net income in the second quarter of 2018 was $70.1 million, an increase of 12.3%, compared to the second quarter of 2017, primarily due to favorable product sales mix.
  • Earnings before interest, taxes, depreciation and amortization (EBITDA) was a loss of $204.0 million in the second quarter of 2018, compared to a gain of $89.0 million in the second quarter of 2017, primarily due to the PPU, bonus and restructuring charges noted above. Combined adjusted EBITDA in the second quarter of 2018 was $138.8 million, an increase of 16.8%, compared to the second quarter of 2017, primarily due to a more favorable product sales mix.
  • Combined adjusted diluted EPS in the second quarter of 2018 was $0.24.

Business Segment Information

The Company has two reportable segments, the Generics business and the Specialty Pharma business and does not allocate general corporate services to either segment.

 

Generics Business Information
The following Consolidated Statements of Operations table reconciles the Generics Business GAAP results to combined results. (Unaudited; In thousands)



Three months ended June 30, 2018


Three months ended June 30, 2017



Add:




Add:



GAAP

Impax

Combined


GAAP

Impax

Combined

Revenues








Generics, net

$361,770

$20,995

$382,765


$259,871

$150,889

$410,760

Cost of goods sold

211,534

29,624

241,158


136,138

108,901

245,039

Gross profit

150,236

(8,629)

141,607


123,733

41,988

165,721

Selling, general, and administrative

16,621

4,340

20,961


14,845

8,034

22,879

Research and development

47,206

3,984

51,190


47,184

20,995

68,179

In-process R&D impairment charge

-

-

-


-

-

-

Intellectual property legal development
expenses

4,004

-

4,004


4,926

319

5,245

Acquisition, integration and transaction
related expenses

114,622

-

114,622


-

-

-

Restructuring

24,797

-

24,797


-

-

-

Operating profit

$(57,014)

$(16,953)

$(73,967)


$56,778

$12,640

$69,418









GAAP and combined gross margin

41.5%

(41.1)%

37.0%


47.6%

27.8%

40.3%

Adjusted gross profit

$186,848

$(1,690)

$185,158


$141,224

$64,162

$205,386

Adjusted gross margin

51.6%

(8.0)%

48.4%


54.3%

42.5%

50.0%










Six months ended June 30, 2018


Six months ended June 30, 2017



Add:




Add:



GAAP

Impax

Combined


GAAP

Impax

Combined

Revenues








Generics, net

$636,959

$102,237

$739,196


$485,552

$285,036

$770,588

Cost of goods sold

342,128

122,761

464,889


245,803

251,516

497,319

Gross profit

294,831

(20,524)

274,307


239,749

33,520

273,269

Selling, general, and administrative

27,823

11,896

39,719


29,808

14,502

44,310

Research and development

91,414

13,623

105,037


86,603

38,391

124,994

In-process R&D impairment charge

-

-

-


-

6,079

6,079

Intellectual property legal development
expenses

8,580

84,597

93,177


11,093

687

11,780

Acquisition, integration and transaction
related expenses

114,622

-

114,622


-

-

-

Restructuring

24,797

-

24,797


-

-

-

Operating profit

$27,595

$(130,640)

$(103,045)


$112,245

$(26,139)

$86,106









GAAP and combined gross margin

46.3%

(20.0)%

37.1%


49.4%

11.8%

35.5%

Adjusted gross profit

$333,203

$3,193

$336,396


258,126

$116,115

$374,281

Adjusted gross margin

52.3%

3.1%

45.5%


53.2%

40.8%

48.6%


(a) Adjusted gross profit is calculated as total revenues less adjusted cost of goods sold. Adjusted gross margin is calculated as adjusted gross profit divided by total revenues. Refer to the "Non-GAAP Financial Measures" for a reconciliation of GAAP to non-GAAP items.

 

GAAP Results

Generics business revenues increased 39.2% for the second quarter of 2018, compared to the prior year period. The increase is primarily attributable to increased sales of Aspirin Dipyridamole ER due to higher volume, higher demand for Diclofenac Sodium Gel 1%, new launches including Methylphenidate ER Tabs and Phytonadione, and additional revenue from the combination with Impax.

Gross margin for the second quarter of 2018 was 41.5%, compared to 47.6% for the second quarter of 2017, primarily due to higher cost of sales due to purchase accounting adjustments as well as the fact that the Impax portfolio contains products with relatively lower profit margins.

Non-GAAP Combined Results

Generics business combined net revenue in the second quarter of 2018 was $382.8 million, a decrease of 6.8%, compared to $410.8 million in the prior year period. The decrease is primarily due to revenue reductions from lower sales of Epinephrine Auto-Injector due to an ongoing supply shortage at the Company's third-party manufacturer, increased competition on Budesonide, Lidocaine, Yuvafem and Fenofibrate, and the impact of discontinued products. The decrease was partially offset by increased revenue from new product launches and increased sales of Aspirin Dipyridamole ER and Diclofenac Sodium Gel 1%.

Gross margin for the second quarter of 2018 on a combined basis was 37.0%, compared to 40.3% for the second quarter of 2017, primarily due to a charge for inventory step-up. Adjusted gross margin on a combined adjusted basis was 48.4% for the second quarter of 2018, compared to 50.0% in the prior year period. 

 

Specialty Pharma Business Information
The following Consolidated Statements of Operations table reconciles the Specialty Pharma business GAAP results to combined results. (Unaudited; In thousands)



Three months ended June 30, 2018


Three months ended June 30, 2017



Add:




Add:



GAAP

Impax/
Gemini

Combined


GAAP

Impax/
Gemini

Combined

Revenues








Rytary®, net

$20,520

$8,578

$29,098


$         -

$21,922

$21,922

Zomig®, net

9,695

3,933

13,628


-

12,325

12,325

All Other Specialty Pharma Products
sales,  net

21,802

15,035

36,837


-

29,164

29,164

Total revenues

52,017

27,546

79,563


-

63,411

63,411

Cost of goods sold

23,958

6,711

30,669


-

25,269

25,269

Gross profit

28,059

20,835

48,894


-

38,142

38,142

Selling, general, and administrative

13,549

7,707

21,256


-

19,693

19,693

Research and development

3,129

1,007

4,136


-

5,852

5,852

Intellectual property legal development
expenses

43

-

43


-

851

851

Restructuring

2,421

-

2,421


-

-

-

Operating profit

$8,917

$12,121

$21,038


$         -

$11,746

$11,746









GAAP and combined gross margin

53.9%

75.6%

61.5%


-

60.2%

60.2%

Adjusted gross profit

$40,660

$22,363

$63,023


$         -

$43,982

$43,982

Adjusted gross margin

78.2%

81.2%

79.2%


-

69.4%

69.4%










Six months ended June 30, 2018


Six months ended June 30, 2017



Add:




Add:



GAAP

Impax/
Gemini

Combined


GAAP

Impax/
Gemini

Combined

Revenues








Rytary®, net

$20,520

$35,086

$55,606


$        -

$41,827

$41,827

Zomig®, net

9,695

14,411

24,106


-

22,182

22,182

All Other Specialty Pharma  Products
sales, net

21,802

46,748

68,550


-

61,202

61,202

Total revenues

52,017

96,245

148,262


-

125,211

125,211

Cost of goods sold

23,958

26,731

50,689


-

47,083

47,083

Gross profit

28,059

69,514

97,573


-

78,128

78,128

Selling, general, and administrative

13,549

27,942

41,491


-

38,816

38,816

Research and development

3,129

3,664

6,793


-

10,945

10,945

Intellectual property legal development
expenses

43

23

66


-

1,555

1,555

Restructuring

2,421

940

3,361


-

-

-

Operating profit

$8,917

$36,945

$45,862


$        -

$26,812

$26,812









GAAP and combined gross margin

53.9%

72.2%

65.8%


-

62.4%

62.4%

Adjusted gross profit

$40,660

$75,626

$116,286


$        -

$87,802

$87,802

Adjusted gross margin

78.2%

78.6%

78.4%


-

70.1%

70.1%


(a) Adjusted gross profit is calculated as total revenues less adjusted cost of goods sold. Adjusted gross margin is calculated as adjusted gross profit divided by total revenues. Refer to the "Non-GAAP Financial Measures" for a reconciliation of GAAP to non-GAAP items.

 

GAAP Results

The Specialty Pharma business is comprised of the Impax Specialty business acquired on May 4, 2018 and the Gemini Laboratories, LLC business acquired on May 7, 2018. Prior to these two transactions, Amneal did not have a specialty business.

Non-GAAP Combined Results

Specialty Pharma business combined net revenue in the second quarter 2018 was $79.6 million, an increase of 25.5%, compared to $63.4 million in the prior year period, driven by higher revenue from Rytary®, Zomig® and the anthelmintic products franchise.

Gross margin for the second quarter of 2018 on a combined basis was 61.5%, compared to 60.2% for the second quarter of 2017. Adjusted gross margin on a combined adjusted basis was 79.2% for the second quarter of 2018, compared to 69.4% in the prior year period, primarily due to favorable product sales mix.

 

Corporate and Other Information
(Unaudited; In thousands)



Three months ended June 30, 2018


Three months ended June 30, 2017



Add:




Add:



GAAP

Impax

Combined


GAAP

Impax

Combined









General and administrative expenses

$(22,833)

$(8,223)

$(31,056)


$(12,093)

$(27,767)

$(39,860)

Unallocated corporate expenses

$(22,833)

$(8,223)

$(31,056)


$(12,093)

$(27,767)

$(39,860)


















Six months ended June 30, 2017


Six months ended June 30, 2017



Add:




Add:



GAAP

Impax

Combined


GAAP

Impax

Combined









General and administrative expenses

$(36,751)

$(40,404)

$(77,155)


$(24,832)

$(51,024)

$(75,856)

Unallocated corporate expenses

$(36,751)

$(40,404)

$(77,155)


$(24,832)

$(51,024)

$(75,856)










GAAP Results

General and administrative expenses in the second quarter of 2018 were $22.8 million, an increase of $10.7 million, compared to the second quarter of 2018. The increase was primarily due to general and administrative expenses of the Impax organization since the closing of the combination, which includes certain public company costs that will remain on a go-forward basis. The increase is also attributable to stock-based compensation.

Non-GAAP Combined Results

General and administrative expenses in the second quarter of 2018 were $31.1 million, a decrease of 22.1%, compared to the second quarter of 2017, primarily due to cost synergies as a result of the business combination with Impax.

Other Information
Interest expense, net for the second quarter of 2018 was $36.6 million, compared to $17.7 million in the second quarter of 2018, due to an increase in long-term debt as a result of the business combination with Impax.

2018 Financial Guidance

Amneal's full year 2018 estimates are based on management's current expectations, including with respect to prescription trends, pricing levels, inventory levels, and the anticipated timing of future product launches and events. The Company does not provide forward-looking guidance metrics as outlined below on a GAAP basis. Consequently, the Company cannot provide a reconciliation between non-GAAP expectations and corresponding GAAP measures without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. The items include, but are not limited to, acquisition-related expenses, restructuring expenses, asset impairments and certain and other gains and losses. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period. The following statements are forward looking and actual results could differ materially depending on market conditions and the factors set forth under "Safe Harbor" below.

2018 Key Guidance Assumptions

  • Revised full year 2018 adjusted EBITDA and adjusted EPS guidance primarily due to the delayed timing of deliveries of Epinephrine Auto-Injector
  • Generics business growth driven by new product launches which are expected to more than offset additional competition on existing portfolio
    • Launched 22 products through August 8, 2018. Potential opportunity to launch an additional 25 generic products the remainder of the year
    • Specialty Pharma business growth driven by Rytary®, Zomig® nasal spray and Emverm®
  • Targeting synergies of $30 to $35 million
    • Approximately 50% R&D, 30% SG&A, 20% Manufacturing

 


Financial Guidance


Full Year

2018

Adjusted Gross Margins

50% to 55%

Adjusted R&D as a % of Total Revenues

10% to 15%

Adjusted SG&A as a % of Total Revenues

13% to 16%

Adjusted EBITDA1

$580 to $620 million

(previously $600 to $650 million)

Adjusted EPS

$0.90 to $1.00

(previously $0.95 to $1.10)

Adjusted Effective Tax Rate

20% to 22%

Capital Expenditures

$80 to $100 million

Diluted Shares Outstanding

Approximately 300 million


1 Includes $30 million to $35 million of cost synergies expected to be realized in 2018.

 

Conference Call Information

Amneal will hold a conference call on August 9, 2018 at 8:30 a.m. Eastern Time to discuss its results. The call and presentation can also be accessed via a live Webcast through the Investor Relations section of Amneal's Web site at https://investors.amneal.com/investor-relations, or directly at https://event.on24.com/wcc/r/1772042/9F111678E78468805741A3106805A25B. The number to call from within the United States is (877) 356-3814 and (706) 758-0033 internationally. The conference ID is 3045719.  A replay of the conference call will be available shortly after the call for a period of seven days. To access the replay, dial (855) 859-2056 (in the U.S.) and (404) 537-3406 (international callers).

About Amneal
Amneal Pharmaceuticals, Inc. (NYSE:AMRX), headquartered in Bridgewater, NJ, is an integrated specialty pharmaceutical company focused on developing, manufacturing and distributing generic, brand and biosimilar products. The Company has approximately 6,500 employees in its operations in North America, Asia, and Europe, working together to bring high-quality medicines to patients primarily within the United States.

Amneal is one of the largest and fastest growing generic pharmaceutical manufacturers in the United States, with an expanding portfolio of generic products to include complex dosage forms in a broad range of therapeutic areas. The Company markets a portfolio of branded pharmaceutical products through its Impax Specialty Pharma division focused principally on central nervous system disorders and parasitic infections. For more information, visit www.amneal.com.

Safe Harbor Statement
Certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements (as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended). We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with the safe harbor provisions. Such forward-looking statements include statements regarding management's intentions, plans, beliefs, expectations or forecasts for the future. The words such as "may," "will," "could," "expect," "plan," "anticipate," "intend," "believe," "estimate," "assume," "continue," and similar words are intended to identify estimates and forward-looking statements.

Such forward-looking statements are based on the expectations of Amneal Pharmaceuticals, Inc. ("our" or the "Company") and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements. Such risks and uncertainties include, but are not limited to (i) the impact of global economic conditions, (ii) our ability to integrate the operations of Amneal Pharmaceuticals LLC ("Amneal") and Impax Laboratories, LLC ("Impax") pursuant to the transactions (the "Combination") contemplated by that certain Business Combination Agreement dated as of October 17, 2017 by and among the Company, Amneal, Impax and K2 Merger Sub Corporation as amended on November 21, 2017 and December 16, 2017 and our ability to realize the anticipated synergies and other benefits of the Combination, (iii) our ability to successfully develop and commercialize new products, (iv) our ability to obtain exclusive marketing rights for our products and to introduce products on a timely basis, (v) the competition we face in the pharmaceutical industry from brand and generic drug product companies, (vi) our ability to manage our growth, (vii) the illegal distribution and sale by third parties of counterfeit versions of our products or of stolen products, (viii) market perceptions of us and the safety and quality of our products, (ix) our dependence on the sales of a limited number of products for a substantial portion of our total revenues, (x) our ability to develop, license or acquire and introduce new products on a timely basis, (xi) the ability of our approved products to achieve expected levels of market acceptance, (xii) the risk that we may discontinue the manufacture and distribution of certain existing products, (xiii) the impact of manufacturing or quality control problems, (xiv) the risk of product liability and other claims against us by consumers and other third parties, (xv) risks related to changes in the regulatory environment, including United States federal and state laws related to healthcare fraud abuse and health information privacy and security and changes in such laws, (xvi) changes to FDA product approval requirements, (xvii) risks related to federal regulation of arrangements between manufacturers of branded and generic products, (xviii) the impact of healthcare reform and changes in coverage and reimbursement levels by governmental authorities and other third-party payers, (xix) our dependence on a few locations that produce a majority of our products, (xx) relationships with our major customers, (xxi) the continuing trend of consolidation of certain customer groups, (xxii) our reliance on certain licenses to proprietary technologies from time to time, (xxiii) our dependence on third party suppliers and distributors for raw materials for our products and certain finished goods, (xxiv) the time necessary to develop generic and branded drug products, (xxv) our dependence on third parties for testing required for regulatory approval of our products, (xxvi) our dependence on third party agreements for a portion of our product offerings, (xxvii) our ability to make acquisitions of or investments in complementary businesses and products on advantageous terms, (xxviii) regulatory oversight related to our international operations, (xxix) our increased exposure to tax liabilities due to our international operations and the impact of recent U.S. tax legislation, (xxx) payments required by our Tax Receivable Agreement, (xxxi) our involvement in various legal proceedings, including those brought by third parties alleging infringement of their intellectual property rights, (xxxii) legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives, (xxxiii) the significant amount of resources we expend on research and development, (xxxiv) our substantial amount of indebtedness and our ability to generate sufficient cash to service our indebtedness in the future, (xxxv) risks inherent in conducting clinical trials, (xxxvi) our reporting and payment obligations under the Medicaid rebate program and other government purchase and rebate programs, (xxxvii) quarterly fluctuations in our operating results, (xxxviii) adjustments to our reserves based on price adjustments and sales allowances, (xix) impairment of our goodwill and other intangible assets, (xl) investigations and litigation concerning the calculation of average wholesale prices, (xli) cybersecurity and data leakage risks, (xlii) our ability to attract and retain talented employees and consultants, (xliii) our ability to protect our intellectual property rights, (xliv) uncertainties involved in the preparation of our financial statements, (xlv) our ability to maintain an effective system of internal controls over financial reporting, (xlvi) the impact of terrorist attacks and other acts of violence, (xlvii) expansion of social media platforms, (xlviii) our need to raise additional funds in the future, (xlix) the restrictions imposed by the terms of our credit agreement, (l) the fact that we are a holding company with nominal net worth, (li) the volatility of the price of our Class A Common Stock, (lii) the impact from future sales of shares by our stockholders on the price of our Class A Common Stock, (liii) the high concentration of ownership of our Class A Common Stock, (liv) the fact that we are controlled by APHC Holdings, LLC, (lv) the impact of our charter specifying the Court of Chancery of the State of Delaware as the sole and exclusive forum for all disputes between us and our stockholders, (lvi) the impact of anti-takeover provisions under Delaware law, (lvii) our current expectation that we will not pay dividends in the future, (lviii) the impact of any changed recommendations regarding our Class A Common Stock from analysts and (lix) such other factors as may be set forth in our public filings with the Securities and Exchange Commission.

Forward-looking statements included herein speak only as of the date hereof and we undertake no obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.

Trademarks referenced herein are the property of their respective owners.

 

Amneal Pharmaceutical, Inc.
Consolidated Statements of Operations
(Unaudited; In thousands, except per share amounts)



Three months ended


Six months ended


June 30,
2018

June 30,
2017


June 30,
2018

June 30,
2017

Net Revenue

$ 413,787

$ 259,871


$ 688,976

$ 485,552

Cost of goods sold

235,492

136,138


366,086

245,803

Gross profit

178,295

123,733


322,890

239,749

Selling, general and administrative

53,003

26,938


78,124

54,640

Research and development

50,335

47,184


94,544

86,603

Intellectual property legal development expenses

4,047

4,926


8,623

11,093

Acquisition, transaction-related and integration expenses

207,507

82


214,642

82

Restructuring expenses

44,465

-


44,465

-

Operating (loss) income

(181,062)

44,603


(117,508)

87,331

Other (expense) income:






   Interest expense, net

(36,622)

(17,726)


(57,673)

(31,887)

   Foreign exchange (loss) gain

(25,946)

15,332


(17,381)

29,929

   Loss on extinguishment of debt

(19,667)

(2,531)


(19,667)

(2,531)

   Other income (expense)

791

(78)


1,739

22

Total other expense, net

(81,444)

(5,003)


(92,982)

(4,467)

(Loss) income before income taxes

(262,506)

39,600


(210,490)

82,864

(Benefit from) provision for income taxes

(12,416)

1,852


(12,052)

2,855

Net (loss) income

(250,090)

37,748


(198,438)

80,009

Less: Net loss (income) attributable to Amneal
Pharmaceuticals LLC pre-Combination

200,341

(37,446)


148,806

(79,299)

Less: Net loss (income) attributable to non-controlling
interests

31,885

(302)


31,768

(710)

Net loss attributable to Amneal Pharmaceuticals, Inc. before
accretion of redeemable non-controlling interest

(17,864)

-


(17,864)

-

Accretion of redeemable non-controlling interest

(1,240)

-


(1,240)

-

Net loss attributable to Amneal Pharmaceuticals, Inc.

$ (19,104)

$             -


$ (19,104)

$          -







Net Loss per share attributable to Amneal Pharmaceuticals,
Inc.'s common stockholders:






     Class A and Class B-1 basic and diluted

$    (0.15)

$             -


$    (0.15)

$             -







Weighted-average common shares outstanding:






     Class A and Class B-1 basic and diluted

127,112



127,112


 

Amneal Pharmaceutical, Inc.
Condensed Consolidated Balance Sheets
(Unaudited; In thousands)



June 30, 2018


December 31, 2017

Assets




Current assets:




Cash and cash equivalents

$        61,521


$        74,166

Restricted cash

7,069


3,756

Trade accounts receivable, net

626,491


351,367

Inventories

512,479


284,038

Prepaid expenses and other current assets

139,596


42,396

Related party receivables

738


16,210

Total current assets

1,347,894


771,933

Property, plant and equipment, net

569,328


486,758

Goodwill

386,475


26,444

Intangible assets, net

1,788,533


44,599

Deferred tax asset, net

373,705


898

Other assets

78,653


11,257

Total assets

$   4,544,588


$   1,341,889





Liabilities and Stockholders' Equity / Members' Deficit




Current liabilities:




Accounts payable and accrued expenses

$      555,634


$      194,779

Note payable-related party

77,549


-

Current portion of financing obligations

251


311

Revolving credit facility

-


75,000

Current portion of long-term debt, net

21,427


14,171

Related-party payables

14,875


12,622

Total current liabilities

669,736


296,883

Long-term debt, net

2,641,305


1,355,274

Long-term portion of financing obligations

39,220


39,987

Deferred income taxes

2,491


2,491

Liabilities under tax receivable agreement

194,825


-

Other long-term liabilities

45,667


7,793

Related-party payable- long term

-


15,043

Total long-term liabilities

2,923,508


1,420,588

Redeemable non-controlling interest

11,858


-

Total stockholders' equity / members' deficit

939,486


(375,582)

Total liabilities and stockholders' equity / members' deficit

$   4,544,588


$   1,341,889

 

Amneal Pharmaceutical, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited; In thousands)



Six Months Ended


June 30,


2018


2017

Cash flows from operating activities:




Net (loss) income

$ (198,438)


$  80,009

Adjustments to reconcile net loss to net cash provided by operating activities:




Depreciation and amortization

46,897


21,136

Unrealized foreign currency gain (loss)

17,032


(33,089)

Amortization of debt issuance costs

2,577


2,463

Loss on extinguishment and modification of debt

19,667


2,531

Gain termination of lease

(3,524)


-

Deferred tax provision

(14,993)


244

Inventory provision

17,426


2,047

Stock-based compensation and PPU expense

160,401


-

Other

927


124

Changes in assets and liabilities:

-


-

Trade accounts receivable, net

(60,051)


28,065

Inventories

(71,655)


(10,890)

Prepaid expenses and other assets

5,910


(2,692)

Accounts payable and accrued expenses

15,299


(3,811)

Other liabilities

4,331


(1,791)

Related-party payables

(13,356)


11,063

Net cash (used in) provided by operating activities

(71,550)


95,409

Investing activities:




Purchases of property, plant and equipment

(36,600)


(54,612)

Acquisition of product rights and licenses

(3,000)


-

Acquisitions, net of cash acquired

(321,324)


-

Net cash used in investing activities

(360,924)


(54,612)

Financing activities:




Payments of deferred financing costs and debt extinguishment costs

(54,955)


(4,889)

Proceeds from issuance of debt

1,325,383


250,000

Payments on financing obligations

(129)


(175)

Net (payments) borrowings on revolving credit line

(75,000)


25,000

Payments on debt

(603,543)


(6,448)

Exercise of stock options

1,977


-

Equity contributions

27,742


40

Capital contribution from non-controlling interest

360


-

Distributions to members

(182,998)


(295,265)

Repayment of related party note

(14,842)


-

          Net cash provided by (used in) financing activities

423,995


(31,737)

Effect of foreign exchange rate on cash

(853)


5,238

Net (decrease) increase in cash, cash equivalents, and restricted cash

(9,332)


14,298

Cash, cash equivalents, and restricted cash - beginning of period

77,922


37,546

Cash, cash equivalents, and restricted cash - end of period

68,590


51,844

Cash and cash equivalents - end of period

61,521


48,217

Restricted cash - end of period

7,069


3,627

Cash, cash equivalents, and restricted cash - end of period

$  68,590


$  51,844

 

Amneal Pharmaceutical, Inc.
Non-GAAP Financial Measures


Combined adjusted revenue, adjusted net income, adjusted diluted EPS, EBITDA, adjusted EBITDA and adjusted cost of goods sold are not measures of financial performance under generally accepted accounting principles (GAAP) and should not be construed as a measure of financial performance. However, management uses both GAAP financial measures and the disclosed non-GAAP financial measures internally to evaluate and manage the Company's operations and to better understand its business. Further, management believes the addition of non-GAAP financial measures provides meaningful supplementary information to, and facilitates analysis by, investors in evaluating the Company's financial performance, results of operations and trends. The Company's calculations of combined adjusted revenue, adjusted net income, adjusted diluted EPS, EBITDA, adjusted EBITDA and adjusted cost of goods sold may not be comparable to similarly designated measures reported by other companies, since companies and investors may differ as to what type of events warrant adjustment. 


The following Consolidated Statements of Operations table reconciles GAAP results to combined results: (Unaudited; In thousands)



Three months ended June 30, 2018


Three months ended June 30, 2017



Add:




Add:



GAAP

Impax/
Gemini

Combined


GAAP

Impax/
Gemini

Combined

Revenues:








Generics, net

$361,770

$20,995

$382,765


$259,871

$150,889

$410,760

Specialty Pharma, net

52,017

27,546

79,563


-

63,411

63,411

Total revenues

413,787

48,541

462,328


259,871

214,300

474,171

Cost of goods sold

235,492

36,335

271,827


136,138

134,170

270,308

Gross profit

178,295

12,206

190,501


123,733

80,130

203,863

Selling, general and administrative

53,003

20,270

73,273


26,938

54,494

81,432

Research and development

50,335

4,991

55,326


47,184

26,847

74,031

Intellectual property legal development expenses

4,047

-

4,047


4,926

1,170

6,096

Acquisition, transaction-related and integration expenses

207,507

4,381

211,888


82

-

82

Restructuring expenses

44,465

-

44,465


-

-

-

Operating (loss) income

(181,062)

(17,436)

(198,498)


44,603

(2,381)

42,222

Other (expense) income:








   Interest expense, net

(36,622)

(4,539)

(41,161)


(17,726)

(13,214)

(30,940)

   Foreign exchange (loss) gain

(25,946)

-

(25,946)


15,332

-

15,332

   Loss on extinguishment of debt

(19,667)

-

(19,667)


(2,531)

-

(2,531)

   Other income (expense)

791

(14)

777


(78)

(497)

(575)

Total other (expense) income, net

81,444)

(4,553)

(85,997)


(5,003)

(13,711)

(18,714)

(Loss) income before income taxes

(262,506)

(21,989)

(284,495)


39,600

(16,092)

23,508

Provision for income taxes

(12,416)

1,017

(11,399)


1,852

(520)

1,332

Net (loss) income

(250,090)

(23,006)

(273,096)


37,748

(15,572)

22,176

Less: Net loss (income) attributable to Amneal
Pharmaceuticals LLC pre-Combination

200,341




(37,446 )



Less: Net loss (income) attributable to non-controlling interests

31,885




(302 )



Net loss attributable to Amneal Pharmaceuticals, Inc.
before accretion of redeemable non-controlling interest

(17,864)




-



Accretion of redeemable non-controlling interest

(1,240)




-



Net income (loss) attributable to Amneal Pharmaceuticals, Inc.

$(19,104)




$          -



 

Amneal Pharmaceutical, Inc.
Non-GAAP Financial Measures


The following Consolidated Statements of Operations table reconciles GAAP results to combined results: (Unaudited; In thousands)



Six months ended June 30, 2018


Six months ended June 30, 2017



Add:




Add:



GAAP

Impax/
Gemini

Combined


GAAP

Impax/
Gemini

Combined

Revenues:








Generics, net

$636,959

$102,237

$739,196


$485,552

$285,036

$770,588

Specialty Pharma, net

52,017

96,245

148,262


-

125,211

125,211

Total revenues

$688,976

$198,482

$887,458


$485,552

$410,247

$895,799

Cost of goods sold

366,086

149,492

515,578


245,803

298,599

544,402

Gross profit

322,890

48,990

371,880


239,749

111,648

351,397

Selling, general and administrative

78,124

80,242

158,366


54,640

104,342

158,982

Research and development

94,544

17,287

111,831


86,603

49,336

135,939

In-process IPR&D impairment charge

-

-

-


-

6,079

6,079

Intellectual property legal development expenses

8,623

-

8,623


11,093

2,242

13,335

Litigation, settlements and related charges

-

85,537

85,537


-

-

-

Acquisition, transaction-related and integration expenses

214,642

4,381

219,023


82

-

82

Restructuring expenses

44,465

-

44,465


-

-

-

Operating (loss) income

(117,508)

(138,457)

(255,965)


87,331

(50,351)

36,980

Other (expense) (income):








   Interest expense, net

(57,673)

(18,231)

(75,904)


(31,887)

(26,440)

(58,327)

   Foreign exchange (loss) gain

(17,381)

921

(16,460)


29,929

-

29,929

   Loss on early extinguishment of debt

(19,667)

-

(19,667)


(2,531)

(1,215)

(3,746)

   Other income (expense)

1,739

(638)

1,101


22

(1,782)

(1,760)

Total other (expense) income, net

(92,982)

(17,948)

(110,930)


(4,467)

(29,437)

(33,904)

(Loss) income before income taxes

(210,490)

(156,405)

(366,895)


82,864

(79,788)

3,076

Provision for income taxes

(12,052)

(6,273)

(18,325)


2,855

30,381

33,236

Net (loss) income

(198,438)

(150,132)

(348,570)


80,009

(110,169)

(30,160)

Less: Net loss (income) attributable to Amneal
Pharmaceuticals LLC pre-Combination

148,806




(79,299)



Less: Net loss (income) attributable to non-
controlling interests

31,768




(710)



Net loss attributable to Amneal Pharmaceuticals,
Inc. before accretion of redeemable non-
controlling interest

(17,864)




-



Accretion of redeemable non-controlling interest

(1,240)




-



Net income (loss) attributable to Amneal Pharmaceuticals, Inc.

$(19,104)




$          -



 

 

Amneal Pharmaceutical, Inc.
Non-GAAP Financial Measures


The following table reconciles GAAP net loss to combined adjusted net income:
(Unaudited; In thousands, except per share amounts)



Three months ended June 30, 2018


Three months ended June 30, 2017



Add:




Add:



GAAP

Impax/
Gemini

Combined


GAAP

Impax/
Gemini

Combined

Net loss

$(250,090)

$(23,006)

$(273,096)


$37,748

$(15,917)

$21,831

Adjusted to add (deduct):








Non-cash interest

4,407

2,549

6,956


1,521

6,430

7,951

GAAP Income taxes

(12,416)

1,017

(11,399)


1,852

(520)

1,332

Amortization

16,694

5,462

22,156


886

17,219

18,105

Share-based compensation expense

1,644

-

1,644


-

6,225

6,225

Acquisition, transaction and integration

207,507

4,381

211,888


81

99

180

Restructuring and severance charges

44,465

223

44,688


-

13,943

13,943

Loss on extinguishment of debt

19,667

-

19,667


-

-

-

Inventory related charges

32,519

3,005

35,524


16,605

-

16,605

Litigation, settlements and related charges

-

-

-


-

7,989

7,989

(Gain)/loss on sale of assets

878

-

878


-

(12,200)

(12,200)

Asset impairment charges

-

-

-


-

1,894

1,894

Royalty expense

-

-

-


4,921

-

4,921

Exchange gain

25,946

-

25,946


(15,333)

-

(15,333)

Other

2,649

1,300

3,949


997

4,639

5,636

Income tax at 21%

(19,713)

1,064

(18,648)


(10,348)

(6,258)

(16,607)

Adjusted Net Income

$74,157

$(4,005)

$70,153


$38,930

$23,543

$62,472

Adjusted Earnings per share



$    0.24





 

Amneal Pharmaceutical, Inc.
Non-GAAP Financial Measures


The following table reconciles GAAP net loss to combined adjusted net income:
(Unaudited; In thousands, except per share amounts)



Six months ended June 30, 2018


Six months ended June 30, 2017



Add:




Add:



GAAP

Impax/
Gemini

Combined


GAAP

Impax/
Gemini

Combined

Net loss

$(198,438)

$(150,132)

$(348,570)


$80,009

$(110,198)

$(30,189)

Adjusted to add (deduct):








Non-cash interest

5,577

9,413

14,990


2,463

12,742

58,397

GAAP Income taxes

(12,052)

(6,273)

(18,325)


2,855

30,381

33,236

Amortization

18,454

19,935

38,389


1,772

34,451

36,223

Share-based compensation expense

1,644

4,816

6,460


-

13,182

13,182

Acquisition, transaction and integration

215,738

9,829

225,567


-

150

150

Restructuring and severance charges

44,465

5,123

49,588


1,761

21,718

23,479

Loss on extinguishment of debt

19,667

-

19,667


-

1,215

1,215

Inventory related charges

32,519

9,894

42,413


16,605

-

16,605

Litigation, settlements and related charges

-

90,099

90,099


-

7,494

7,494

(Gain)/loss on sale of assets

878

-

878


-

(12,200)

(12,200)

Asset impairment charges

-

53

53


-

47,253

47,253

Royalty expense

-

-

-


8,684

-

8,684

Exchange gain

17,381

(921)

16,460


(29,929)

-

(29,929)

Other

1,880

1,953

3,833


2,458

5,887

8,345

Income tax at 21%

(31,020)

1,304

(29,715)


(18,202)

(10,936)

(38,194)

Adjusted Net Income

$116,693

$(5,065)

$(111,787)


$68,476

$41,138

$143,680

Adjusted Earnings per share



$     0.37





 

Amneal Pharmaceutical, Inc.
Non-GAAP Financial Measures


The following table reconciles GAAP net loss to combined EBITDA and combined adjusted EBITDA:
(Unaudited, In thousands)



Three months ended June 30, 2018


Three months ended June 30, 2017



Add:




Add:



GAAP

Impax/
Gemini

Combined


GAAP

Impax/
Gemini

Combined

Net loss

$(250,090)

$(23,006)

$(273,096)


$37,748

$(15,917)

$21,831

Adjusted to add (deduct):








Interest expense, net

36,622

4,753

41,375


17,726

13,214

30,940

Income taxes

(12,416)

1,017

(11,399)


1,852

(520)

1,332

Depreciation and amortization

32,147

6,925

39,072


10,535

24,355

34,890

EBITDA

(193,737)

(10,311)

(204,048)


67,861

21,132

88,993









Adjusted to add (deduct):








Share-based compensation expense

1,644

-

1,644


-

6,225

6,225

Acquisition, transaction and integration

207,507

4,381

211,888


81

99

180

Restructuring and severance charges

44,465

223

44,688


-

13,943

13,943

Loss on extinguishment of debt

19,667

-

19,667


-

-

-

Inventory related charges

32,519

3,005

35,524


16,605

-

16,605

Litigation, settlements and related charges

-

-

-


-

7,989

7,989

(Gain)/loss on sale of assets

878

-

878


-

(12,200)

(12,200)

Asset impairment charges

-

-

-


-

1,894

1,894

Royalty expense

-

-

-


4,921

-

4,921

Exchange gain

25,946

-

25,946


(15,333)

-

(15,333)

Other

2,649

-

2,649


997

4,639

5,636

Adjusted EBITDA

$141,538

$(2,702)

$138,836


$75,132

$43,721

$118,853

 

Amneal Pharmaceutical, Inc.
Non-GAAP Financial Measures


The following table reconciles GAAP net loss to combined EBITDA and combined adjusted EBITDA:
(Unaudited; In thousands)



Six months ended June 30, 2018


Six months ended June 30, 2017



Add:




Add:



GAAP

Impax/
Gemini

Combined


GAAP

Impax/
Gemini

Combined

Net loss

$(198,438)

$(150,132)

$(348,570)


$80,009

$(110,198)

$(30,189)

Adjusted to add (deduct):








Interest expense, net

57,673

18,445

76,118


31,887

26,440

58,327

Income taxes

(12,052)

(6,273)

(18,325)


2,855

30,381

33,236

Depreciation and amortization

46,897

24,902

71,799


21,135

48,453

69,588

EBITDA

(105,920)

(113,058)

(218,978)


135,886

(4,924)

130,962









Adjusted to add (deduct):








Share-based compensation expense

1,644

4,816

6,460


-

13,182

13,182

Acquisition, transaction and integration

215,738

9,829

225,567


-

150

150

Restructuring and severance charges

44,465

5,123

49,588


1,761

21,718

23,479

Loss on extinguishment of debt

19,667

-

19,667


-

1,215

1,215

Inventory related charges

32,519

9,894

42,413


16,605

-

16,605

Litigation, settlements and related charges

-

90,099

90,099


-

7,494

7,494

(Gain)/loss on sale of assets

878

-

878


-

(12,200)

(12,200)

Asset impairment charges

-

53

53


-

47,253

47,253

Royalty expense

-

-

-


8,684

-

8,684

Exchange gain

17,381

(921)

16,460


29,929)

-

(29,929)

Other

1,880

653

2,533


2,458

5,887

8,345

Adjusted EBITDA

$228,252

$6,488

$234,740


$135,465

$79,774

$215,239

 

Amneal Pharmaceutical, Inc.
Non-GAAP Financial Measures


The following tables reconciles GAAP cost of goods sold to combined adjusted cost of goods sold for purposes of determining combined adjusted cost of goods sold, combined adjusted gross profit and combined adjusted gross margin: (Unaudited; In thousands)


Consolidated Total Company



Three months ended June 30, 2018


Three months ended June 30, 2017



Add:




Add:



GAAP

Impax/
Gemini

Combined


GAAP

Impax/
Gemini

Combined

Cost of goods sold

$235,492

$36,335

$271,827


$136,138

$134,170

$270,308

Adjusted to deduct:








Amortization

16,694

5,462

22,506


886

17,219

18,105

Inventory step-up

15,200

-

15,200


-

-

-

Restructuring and severance

-

-

-


-

10,795

10,795

Other inventory related charges

17,319

3,005

20,324


16,605

-

16,605

Adjusted cost of goods sold

$186,279

$27,868

$213,797


$118,647

$106,156

$224,803









Adjusted gross profit

$227,508

$20,673

$248,181


$141,224

$108,144

$249,368

Adjusted gross margin

55.0%

42.6%

53.7%


54.3%

50.5%

52.6%










Six months ended June 30, 2018


Six months ended June 30, 2017



Add:




Add:



GAAP

Impax/
Gemini

Combined


GAAP

Impax/
Gemini

Combined

Cost of goods sold

$366,086

$149,492

$515,578


$245,803

$298,599

$544,402

Adjusted to deduct:








Amortization

18,454

19,935

38,389


1,772

34,451

36,223

Restructuring

-

-

-


-

18,578

18,520

Intangible Asset impairment

-

-

-


-

39,280

39,280

Inventory step-up

15,200

-

15,200


-

-

-

Other inventory related charges

17,319

9,894

27,213


16,605

-

16,605

Adjusted cost of goods sold

$315,113

$119,663

$434,776


$227,426

$206,290

$433,774









Adjusted gross profit

$373,863

$78,819

$452,682


$258,126

$203,957

$462,083

Adjusted gross margin

54.3%

39.7%

51.0%


53.2%

49.7%

51.6%

 

Amneal Pharmaceutical, Inc.
Non-GAAP Financial Measures


The following tables reconciles the GAAP cost of goods sold to combined adjusted cost of goods sold for purposes of determining combined adjusted cost of goods sold, combined adjusted gross profit and combined adjusted gross margin: (Unaudited; In thousands)


Generics Business



Three months ended June 30, 2018


Three months ended June 30, 2017



Add:




Add:



GAAP

Impax/
Gemini

Combined


GAAP

Impax/
Gemini

Combined

Cost of goods sold

$211,534

$29,624

$241,158


$136,138

$108,901

$245,039

Adjusted to deduct:








Amortization

6,043

3,934

10,327


886

13,385

14,271

Restructuring and severance

-

-

-


-

8,789

8,789

Inventory step-up

13,250

-

13,250


-

-

-

Other inventory related charges

17,319

3,005

20,324


16,605

-

16,605

Adjusted cost of goods sold

$174,922

$22,685

$197,257


$118,647

$86,727

$205,374









Adjusted gross profit

$186,848

$(1,690)

$185,158


$141,224

$64,162

$205,386

Adjusted gross margin

51.6%

(8.0)%

48.4%


54.3%

42.5%

50.0%










Six months ended June 30, 2018


Six months ended June 30, 2017



Add:




Add:



GAAP

Impax/
Gemini

Combined


GAAP

Impax/
Gemini

Combined

Cost of goods sold

$342,128

$122,761

$464,889


$245,803

$251,516

$497,319

Adjusted to deduct:








Amortization

7,803

13,823

21,626


1,772

26,783

28,555

Restructuring and severance

-

-

-


-

16,572

16,572

Intangible Asset impairment

-

-

-


-

39,280

39,280

Inventory step-up

13,250

-

13,250


-

-

-

Other inventory related charges

17,319

9,894

27,213


16,605

-

16,605

Adjusted cost of goods sold

$303,756

$99,044

$402,800


$227,426

$168,881

$396,307









Adjusted gross profit

$333,203

$3,193

$336,396


$258,126

$116,155

$374,281

Adjusted gross margin

52.3%

3.1%

45.5%


53.2%

40.8%

48.6%

 

Amneal Pharmaceutical, Inc.
Non-GAAP Financial Measures


The following tables reconciles the GAAP cost of goods sold to combined adjusted cost of goods sold for purposes of determining combined adjusted cost of goods sold, combined adjusted gross profit and combined adjusted gross margin: (Unaudited; In thousands)


Specialty Pharma Business



Three months ended June 30, 2018


Three months ended June 30, 2017



Add:




Add:



GAAP

Impax/
Gemini

Combined


GAAP

Impax/
Gemini

Combined

Cost of goods sold

$23,958

$6,711

$30,669


$       -

$25,269

$25,269

Adjusted to deduct:








Amortization

10,651

1,528

12,179


-

3,834

3,834

Inventory step-up

1,950

-

1,950


-

-

-

Other inventory related charges

-

-

-


-

2,006

2,006

Adjusted cost of goods sold

$11,357

$5,183

$16,540


$       -

$19,429

$19,429









Adjusted gross profit

$40,660

$22,363

$63,023


$       -

$43,982

$43,982

Adjusted gross margin

78.2%

81.2%

79.2%


0.0%

69.4%

69.4%










Six months ended June 30, 2018


Six months ended June 30, 2017



Add:




Add:



GAAP

Impax/
Gemini

Combined


GAAP

Impax/
Gemini

Combined

Cost of goods sold

$23,958

$26,731

$50,689


$       -

$47,083

$47,083

Adjusted to deduct:








Amortization

10,651

6,112

16,763


-

7,668

7,668

Restructuring

-

-

-


-

2,006

2,006

Intangible Asset impairment

-

-

-


-

-

-

Inventory step-up

1,950

-

1,950


-

-

-

Other inventory related charges

-

-

-


-

-

-

Adjusted cost of goods sold

$11,357

$20,619

$31,976


$       -

$37,409

$37,409









Adjusted gross profit

$40,660

$75,626

$116,286


$       -

$87,802

$87,802

Adjusted gross margin

78.2%

78.6%

78.4%


0.0%

70.1%

70.1%

 

 

CONTACT:
Mark Donohue
(215) 558-4526   

Cision View original content:http://www.prnewswire.com/news-releases/amneal-announces-solid-second-quarter-2018-financial-results-300694592.html

SOURCE Amneal Pharmaceuticals, Inc.

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