LAVAL, Quebec, Aug. 8, 2017 /CNW/ --
Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) ("Valeant" or the "Company" or "we") today announced its second-quarter 2017 financial results.
"The investments we are making in our core business are delivering results," said Joseph C. Papa, chairman and chief executive officer, Valeant. "The Bausch + Lomb/International segment and Salix business, which together represented 73 percent of our revenue in the quarter, delivered strong organic growth1, and we are continuing to reduce debt and resolve legacy issues."
"Additionally, we confirm that we are maintaining our 2017 full-year Adjusted EBITDA guidance range despite the impact of divestitures we've made this year," added Mr. Papa.
Company Highlights
Strengthening the Balance Sheet
Executing on Core Businesses
Second-Quarter Revenue Performance
Total revenues were $2.233 billion for the second quarter of 2017, as compared to $2.420 billion in the second quarter of 2016, a decrease of $187 million, or 8%. The decrease was primarily driven by decreases in volume and price in our U.S. Diversified Products segment, attributed to the previously reported loss of exclusivity for a basket of products, and the dermatology business. The decline also reflects the unfavorable impact of divestitures and discontinuations, primarily the skincare divestiture within the Bausch + Lomb/International segment.3
Revenues by segment for the second quarter of 2017 were as follows:
| $ in millions |
2017 |
2016 |
Reported |
Reported |
Change at |
Organic |
| Segment |
||||||
| Bausch + Lomb/International |
$1,241 |
$1,277 |
$(36) |
(3%) |
1% |
6% |
| Branded Rx |
$636 |
$653 |
$(17) |
(3%) |
(3%) |
0% |
| U.S. Diversified Products |
$356 |
$490 |
$(134) |
(27%) |
(27%) |
(27%) |
| Total Revenues |
$2,233 |
$2,420 |
$(187) |
(8%) |
(5%) |
(3%) |
Bausch + Lomb/International Segment
The Bausch + Lomb/International segment revenues were $1.241 billion for the second quarter of 2017, as compared to $1.277 billion for second quarter of 2016, a decrease of $36 million, or 3%. Excluding the impact of the skincare divestiture and foreign exchange, the Bausch + Lomb/International segment organically grew1 by approximately 6% compared to the second quarter of 2016, driven by performance in China, Europe and Africa/Middle East and the Global Ophthalmology business.
Branded Rx Segment
The Branded Rx segment revenues were $636 million for the second quarter of 2017, as compared to $653 million for second quarter of 2016, a decrease of $17 million, or 3%. The decrease in sales primarily was due to lower volumes in the dermatology business and the impact of divestitures and discontinuations in the Salix business. The decline was largely offset by 13% revenue growth in the Salix business compared to the second quarter of 2016, despite the impact of the divestiture of Ruconest, and organic growth1 in the Salix business of 16% compared to the second quarter of 2016.
U.S. Diversified Products Segment
The U.S. Diversified Products segment revenues were $356 million for the second quarter of 2017, as compared to $490 million for second quarter of 2016, a decrease of $134 million, or 27%. The decline was primarily driven by decreases in volume and price attributed to the previously reported loss of exclusivity for a basket of products.
Operating Income
Operating income was $175 million for the second quarter of 2017 as compared to $81 million for the second quarter of 2016, an increase of $94 million. The increase in operating income primarily reflects lower asset impairments and amortization charges partially offset by a decrease in contribution margin as a result of the decline in product sales from existing businesses.
Net loss for the three months ended June 30, 2017 was $38 million, as compared to $302 million for the same period in 2016, an improvement of $264 million. The decrease in net loss primarily reflects the increase in recovery for income taxes, increase in operating income and the net change in foreign exchange.
Cash provided by operating activities was $268 million for the second quarter of 2017. Cash flows from operations were negatively affected by $190 million of net payments made in resolution of the Salix securities class action litigation.5 Excluding these payments, the Company generated a normalized cash flow of $458 million.
GAAP Earnings Per Share (EPS) Diluted – for the second quarter of 2017 came in at $(0.11) as compared to $(0.88) in the second quarter of 2016.
Adjusted EBITDA (non-GAAP)
Adjusted EBITDA (non-GAAP) was $951 million for the second quarter of 2017, as compared to $1.087 billion for the second quarter of 2016, a decrease of $136 million, primarily due to lower revenues attributed to the previously reported loss of exclusivity for a basket of products, divestitures and discontinuations, and declines in our dermatology business, partially offset by strong organic growth1 in the Bausch + Lomb/International segment and the Salix business. Adjusted EBITDA grew by 10% sequentially versus the prior quarter.
2017 Guidance
Valeant has updated guidance for 2017, as follows:
The Company confirms we will maintain our full-year Adjusted EBITDA (non-GAAP) guidance range of $3.60 - $3.75 billion despite the impact of divestitures that have closed in 2017.
This updated guidance reflects the impact of the sale of the CeraVe®, AcneFree™ and AMBI® skincare brands and the sale of Dendreon Pharmaceuticals LLC. This guidance does not reflect the impact of the sales of the iNova Pharmaceuticals and Obagi Medical Products businesses, which are both expected to close in the second half of the year.
Other than with respect to GAAP Revenues, the Company only provides guidance on a non-GAAP basis. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP) to GAAP net income (loss), due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. In periods where significant acquisitions or divestitures are not expected, the Company believes it might have a basis for forecasting the GAAP equivalent for certain costs, such as amortization, which would otherwise be treated as non-GAAP to calculate projected GAAP net income (loss). However, because other deductions (such as restructuring, gain or loss on extinguishment of debt and litigation and other matters) used to calculate projected net income (loss) vary dramatically based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amount of these deductions may be material and, therefore, could result in projected GAAP net income (loss) being materially less than projected Adjusted EBITDA (non-GAAP).
Additional Highlights
Conference Call Details
| Date: |
Tuesday, Aug. 8, 2017 |
| Time: |
8:00 a.m. EDT |
| Webcast: |
|
| Participant Event Dial-in: |
(877) 876-8393 (North America) |
| (443) 961-0178 (International) |
|
| Participant Passcode: |
35736021 |
| Replay Dial-in: |
(855) 859-2056 (North America) |
| (404) 537-3406 (International) |
|
| Replay Passcode: |
31833 (replay available until Oct. 8, 2017) |
About Valeant
Valeant Pharmaceuticals International, Inc. (NYSE/TSX:VRX) is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, gastrointestinal disorders, eye health, neurology and branded generics. More information about Valeant can be found at www.valeant.com.
Forward-looking Statements
This press release contains forward-looking information and statements, within the meaning of applicable securities laws (collectively, "forward-looking statements"), including, but not limited to, statements regarding Valeant's future prospects and performance (including the Company's updated 2017 full-year guidance), the expected date for the completion of the redemption of certain of the Company's senior notes and the anticipated impact of such redemption, the Company's expectations with respect to debt paydown, the anticipated timing of the closing of the divestitures of the iNova Pharmaceuticals and Obagi Medical Products businesses and the Company's plans and expectations for 2017. Forward-looking statements may generally be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "target," or "continue" and variations or similar expressions. These forward-looking statements, including the Company's updated full-year guidance, are based upon the current expectations and beliefs of management and are provided for the purpose of providing additional information about such expectations and beliefs and readers are cautioned that these statements may not be appropriate for other purposes. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results and events to differ materially from those described in these forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties discussed in the Company's most recent annual and quarterly reports and detailed from time to time in the Company's other filings with the Securities and Exchange Commission and the Canadian Securities Administrators, which risks and uncertainties are incorporated herein by reference. In addition, certain material factors and assumptions have been applied in making these forward-looking statements (including the Company's 2017 full-year guidance), including that the risks and uncertainties outlined above will not cause actual results or events to differ materially from those described in these forward-looking statements, and additional information regarding certain of these material factors and assumptions may also be found in the Company's filings described above. The Company believes that the material factors and assumptions reflected in these forward-looking statements are reasonable, but readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. Valeant undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect actual outcomes, unless required by law.
Non-GAAP Information
Recent Evaluation of Financial Performance Measures
Recently, the Company's new management team undertook an evaluation of how it would measure the financial performance of the Company going forward. In evaluating its financial performance measures, the Company considered its recent changes to its strategy (which included a transition away from growth by acquisition with a greater focus on R&D activity, strengthening of the balance sheet through the paydown of debt and rationalization of the product portfolio through divestitures of non-core assets) and sought to identify performance measures that best reflect the Company's current business operations, strategy and goals. As a result of that evaluation, new management identified the following primary financial performance measures for the Company: GAAP Revenues (measure for both guidance and actual results), GAAP Net Income (measure for actual results), Adjusted EBITDA (non-GAAP) (measure for both guidance and actual results) and GAAP Cash Flow from Operations (measure for actual results). These measures were selected as the Company believes that these measures most appropriately reflect how the Company measures the business internally and sets operational goals and incentives. For example, the Company believes that Adjusted EBITDA (non-GAAP) focuses management on the Company's underlying operational results and business performance, while GAAP Revenue focuses management on the overall growth of the business.
In addition, in connection with this evaluation of financial performance measures, the Company assessed the methodology with which it was calculating non-GAAP measures and made updates where it deemed appropriate to better reflect the underlying business. For example, commencing with the first quarter of 2017, Adjusted EBITDA (non-GAAP) no longer includes adjustments for Foreign exchange gain/loss arising from intercompany transactions.
The Company began to use these new non-GAAP measures, and the new methodologies used to calculate these non-GAAP measures, commencing with the first quarter of 2017. For the purposes of the Company's actual results for the first half and second quarter of 2016, the Company has calculated and presented the non-GAAP measures using the historic methodologies in place as of the applicable historic dates; however, the Company has also provided a reconciliation that calculates the non-GAAP measures using the new methodologies, to allow investors and readers to evaluate the non-GAAP measures (such as Adjusted EBITDA) on the same basis for the periods presented.
Use of Non-GAAP Generally
To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures including (i) Adjusted EBITDA (non-GAAP), (ii) Adjusted Net Income (non-GAAP) and (iii) organic growth. These measures do not have any standardized meaning under GAAP and other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to similar non-GAAP measures. We caution investors not to place undue reliance on such non-GAAP measures, but instead to consider them with the most directly comparable GAAP measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
The reconciliations of these historic non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in the tables below. However, for guidance purposes, the Company does not provide reconciliations of projected Adjusted EBITDA (non-GAAP) to projected GAAP net income (loss), due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. In periods where significant acquisitions or divestitures are not expected, the Company believes it might have a basis for forecasting the GAAP equivalent for certain costs, such as amortization, that would otherwise be treated as a non-GAAP adjustment to calculate projected GAAP net income (loss). However, because other deductions (e.g., restructuring, gain or loss on extinguishment of debt and litigation and other matters) used to calculate projected net income (loss) may vary significantly based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amounts of these deductions may be material and, therefore, could result in GAAP net income (loss) being materially different from (including materially less than) projected Adjusted EBITDA (non-GAAP).
Management uses these non-GAAP measures as key metrics in the evaluation of Company performance and the consolidated financial results and, in part, in the determination of cash bonuses for its executive officers. The Company believes these non-GAAP measures are useful to investors in their assessment of our operating performance and the valuation of our Company. In addition, these non-GAAP measures address questions the Company routinely receives from analysts and investors and, in order to assure that all investors have access to similar data, the Company has determined that it is appropriate to make this data available to all investors. However, non-GAAP financial measures are not prepared in accordance with GAAP, as they exclude certain items as described herein. Therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
Specific Non-GAAP Measures
Adjusted EBITDA (non-GAAP)
Adjusted EBITDA (non-GAAP) is GAAP net income (its most directly comparable GAAP financial measure) adjusted for certain items, as further described below. The Company has historically used Adjusted EBITDA to evaluate current performance. As indicated above, following an evaluation of the Company's financial performance measures, new management of the Company identified certain new primary financial performance measures that it is now using to evaluate the Company's financial performance. One of those measures is Adjusted EBITDA (non-GAAP), which the Company uses for both actual results and guidance purposes. As described above, management of the Company believes that Adjusted EBITDA (non-GAAP), along with the other new measures, most appropriately reflect how the Company measures the business internally and sets operational goals and incentives, especially in light of the Company's new strategies. In particular, the Company believes that Adjusted EBITDA (non-GAAP) focuses management on the Company's underlying operational results and business performance. As a result, the Company is now using Adjusted EBITDA (non-GAAP) both to assess the actual financial performance of the Company and to forecast future results as part of its guidance. Management believes Adjusted EBITDA (non-GAAP) is a useful measure to evaluate current performance. Adjusted EBITDA (non-GAAP) is intended to show our unleveraged, pre-tax operating results and therefore reflects our financial performance based on operational factors. In addition, commencing in 2017, cash bonuses for the Company's executive officers and other key employees will be based, in part, on the achievement of certain Adjusted EBITDA (non-GAAP) targets.
Adjusted EBITDA reflect adjustments based on the following items:
Finally, to the extent not already adjusted for above, Adjusted EBITDA (non-GAAP) reflects adjustments for interest, taxes, depreciation and amortization (EBITDA represents earnings before interest, taxes, depreciation and amortization).
As indicated above, in addition to identifying new primary financial performance measures, the Company also assessed the methodology with which it was calculating these non-GAAP measures and made updates where it deemed appropriate to better reflect the underlying business. As a result, commencing with the first quarter actual results of 2017, there are certain differences in the calculation of Adjusted EBITDA (non-GAAP) between the current presentation and the historic presentation. In particular, Adjusted EBITDA (non-GAAP) no longer includes adjustments for Foreign exchange gain/loss arising from intercompany transactions. For the purposes of the Company's actual results for the first half and second quarter of 2016, the Company has calculated and presented the non-GAAP measures using the historic methodologies in place as of the applicable historic dates; however, the Company has also provided a reconciliation that calculates the non-GAAP measure using the new methodology, to allow investors and readers to evaluate the non-GAAP measure (such as Adjusted EBITDA) on the same basis for the periods presented.
Please also see the reconciliation tables below for further information as to how these non-GAAP measures are calculated for the periods presented.
Adjusted Net Income (Loss) (non-GAAP)
Historically, management has used adjusted net income (loss) (non-GAAP) (the most directly comparable GAAP financial measure for which is GAAP net income (loss)) for strategic decision making, forecasting future results and evaluating current performance. This non-GAAP measure excludes the impact of certain items (as further described below) that may obscure trends in the Company's underlying performance. By disclosing this non-GAAP measure, it was management's intention to provide investors with a meaningful, supplemental comparison of the Company's operating results and trends for the periods presented. It was management belief that this measure was also useful to investors as such measure allowed investors to evaluate the Company's performance using the same tools that management had used to evaluate past performance and prospects for future performance. Accordingly, it was the Company's belief that adjusted net income (loss) (non-GAAP) was useful to investors in their assessment of the Company's operating performance and the valuation of the Company. It is also noted that, in recent periods, our GAAP net income was significantly lower than our adjusted net income (non-GAAP). As indicated above, following an assessment of the Company's financial performance measures, new management of the Company identified certain new primary financial performance measures that will be used to assess Company financial performance going forward. As a result, the Company no longer uses or relies on adjusted net income (loss) (non-GAAP) in assessing the financial performance of the Company. However, a reconciliation of GAAP net income (loss) to adjusted net income (loss) (non-GAAP) is presented in the tables below for the information of readers to provide readers comparable information for prior periods.
Adjusted net income (non-GAAP) reflects adjustments based on the following items:
As indicated above, in addition to identifying new primary financial performance measures, the Company also assessed the methodology with which it was calculating these non-GAAP measures and made updates where it deemed appropriate to better reflect the underlying business. As a result, commencing with the first-quarter results of 2017, there are certain differences in the calculation of adjusted net income (loss) (non-GAAP) between the current presentation and the historic presentation. In particular, adjusted net income (loss) (non-GAAP) no longer includes Foreign exchange gain/loss arising from intercompany transactions and amortization of deferred financing costs and debt discounts In addition, as of the third quarter of 2016, adjusted net income (loss) (non-GAAP) no longer includes adjustments for the following items: Depreciation resulting from a PP&E step-up resulting from acquisitions and Previously accelerated vesting of certain share-based equity adjustments. For the purposes of the Company's actual results for the first half and second quarter of 2016, the Company has calculated and presented the non-GAAP measures using the historic methodologies in place as of the applicable historic dates; however, the Company has also provided a reconciliation that calculates the non-GAAP measure using the new methodology, to allow investors and readers to evaluate the non-GAAP measure (such as adjusted net income (loss)) on the same basis for the periods presented.
Organic Growth
Organic Growth is growth in GAAP Revenue (its most directly comparable GAAP financial measure) adjusted for certain items, as further described below. Organic growth provides growth rates for businesses that have been owned for one or more years. The Company uses organic revenue and organic growth to assess performance of its business units and operating and reportable segments, and the Company in total, without the impact of foreign currency exchange fluctuations and recent acquisitions, divestitures and product discontinuations. The Company believes that such measures are useful to investors as it provides a supplemental period-to-period comparison.
Organic Growth reflects adjustments based on the following items:
Please also see the reconciliation tables below for further information as to how these non-GAAP measures are calculated for the periods presented.
| 1 Organic growth, a non-GAAP metric, is defined as an increase on a year-over-year basis in revenues on a constant currency basis (if applicable) excluding the impact of divestitures and discontinuations. |
||
| 2 Provisional name |
||
| 3 In March 2017, Valeant sold the CeraVe® brand, which had been reported within the Bausch + Lomb/International segment, as part of the skincare divestiture to L'Oréal. |
||
| 4 To assist investors in evaluating the Company's performance, we have adjusted for changes in foreign currency exchange rates. Change at constant currency, a non-GAAP metric, is determined by comparing 2017 reported amounts adjusted to exclude currency impact, calculated using 2016 monthly average exchange rates, to the actual 2016 reported amounts. |
||
| 5 On Feb. 8, 2017, the Company agreed to settle the Salix securities class action litigation for $210 million. The settlement has been approved by the court. Reflective of insurance refunds received as of June 30, 2017, the Company made $190 million in net payments during the second quarter of 2017. The Company expects to receive a total of $60 million of insurance refund proceeds related to this matter. |
||
FINANCIAL TABLES FOLLOW
| Valeant Pharmaceuticals International, Inc. |
Table 1 |
|||||||
| Condensed Consolidated Statements of Operations |
||||||||
| For the Three and Six Months Ended June 30, 2017 and 2016 |
||||||||
| (unaudited) |
||||||||
| (In millions) |
||||||||
| Three Months Ended |
Six Months Ended |
|||||||
| June 30, |
June 30, |
|||||||
| 2017 |
2016 |
2017 |
2016 |
|||||
| Product sales |
$ 2,200 |
$ 2,389 |
$ 4,276 |
$ 4,725 |
||||
| Other revenues |
33 |
31 |
66 |
67 |
||||
| Total revenues |
2,233 |
2,420 |
4,342 |
4,792 |
||||
| Cost of goods sold (excluding amortization and impairments of intangible assets) |
635 |
648 |
1,219 |
1,268 |
||||
| Cost of other revenues |
11 |
10 |
23 |
20 |
||||
| Selling, general and administrative |
659 |
671 |
1,320 |
1,484 |
||||
| Research and development |
94 |
124 |
190 |
227 |
||||
| Amortization of intangible assets |
623 |
673 |
1,258 |
1,351 |
||||
| Asset impairments |
85 |
230 |
223 |
246 |
||||
| Restructuring and integration costs |
18 |
20 |
36 |
58 |
||||
| Acquired in-process research and development costs |
1 |
2 |
5 |
3 |
||||
| Acquisition-related contingent consideration |
(49) |
7 |
(59) |
9 |
||||
| Other income |
(19) |
(46) |
(259) |
(21) |
||||
| 2,058 |
2,339 |
3,956 |
4,645 |
|||||
| Operating income |
175 |
81 |
386 |
147 |
||||
| Interest expense, net |
(456) |
(470) |
(927) |
(896) |
||||
| Loss on extinguishment of debt |
- |
- |
(64) |
- |
||||
| Foreign exchange and other |
39 |
12 |
68 |
6 |
||||
| Loss before recovery for income taxes |
(242) |
(377) |
(537) |
(743) |
||||
| Recovery of income taxes |
(205) |
(73) |
(1,129) |
(66) |
||||
| Net (loss) income |
(37) |
(304) |
592 |
(677) |
||||
| Less: Net income (loss) attributable to noncontrolling interest |
1 |
(2) |
2 |
(1) |
||||
| Net (loss) income attributable to Valeant Pharmaceuticals International, Inc. |
$ (38) |
$ (302) |
$ 590 |
$ (676) |
||||
| Valeant Pharmaceuticals International, Inc. |
Table 2 |
|||||||
| Reconciliation of GAAP Net (loss) Income to Adjusted Net Income (non-GAAP) |
||||||||
| For the Three and Six Months Ended June 30, 2017 and 2016 |
||||||||
| (unaudited) |
||||||||
| (In millions) |
||||||||
| Three Months Ended |
Six Months Ended |
|||||||
| June 30, |
June 30, |
|||||||
| 2017 |
2016 |
2017 |
2016 |
|||||
| Net (loss) income attributable to Valeant Pharmaceuticals International, Inc. |
$ (38) |
$ (302) |
$ 590 |
$ (676) |
||||
| Non-GAAP adjustments: (a) |
||||||||
| Acquisition-related adjustments excluding amortization of intangible assets (b) (d) |
(49) |
19 |
(59) |
53 |
||||
| Amortization of intangible assets |
623 |
673 |
1,258 |
1,351 |
||||
| Restructuring and integration costs |
18 |
20 |
36 |
58 |
||||
| Acquired in-process research and development costs |
1 |
2 |
5 |
3 |
||||
| Asset impairments |
85 |
230 |
223 |
246 |
||||
| Other non-GAAP charges (c) (d) |
(6) |
(17) |
(236) |
85 |
||||
| Amortization of deferred financing costs and debt discounts |
- |
36 |
- |
57 |
||||
| Loss on extinguishment of debt |
- |
- |
64 |
- |
||||
| Foreign exchange and other (d) |
- |
(13) |
- |
(15) |
||||
| Tax effect of non-GAAP adjustments |
(272) |
(161) |
(1,246) |
(232) |
||||
| Total non-GAAP adjustments |
400 |
789 |
45 |
1,606 |
||||
| Adjusted net income non-GAAP attributable to Valeant Pharmaceuticals International, Inc. |
$ 362 |
$ 487 |
$ 635 |
$ 930 |
||||
| Depreciation resulting from a PP&E step-up resulting from acquisitions |
(5) |
(8) |
||||||
| Previously accelerated vesting of certain share-based equity adjustments |
1 |
(23) |
||||||
| Foreign exchange loss/gain on intercompany transactions |
13 |
15 |
||||||
| Amortization of deferred financing costs and debt discounts |
(36) |
(57) |
||||||
| Adjusted net income non-GAAP attributable to Valeant Pharmaceuticals International, Inc. |
$ 362 |
$ 460 |
$ 635 |
$ 857 |
||||
| (a) The components of (and further details respecting) each of these non-GAAP adjustments and the financial statement line item to which each component relates can be found on Table 2a. |
||||||||
| (b) Due to the nature of Acquisition-related adjustments excluding amortization of intangible assets, the components of this non-GAAP adjustment are reflected in various financial statement line items, as follows: Cost of goods sold, Selling, general and administrative, Research and development, and Acquisition-related contingent consideration. |
||||||||
| (c) Due to the nature of Other non-GAAP charges, the components of this non-GAAP adjustment are reflected in various financial statement line items, as follows: Product Sales, Cost of goods sold, Selling, general and administrative, Research and development, and Other expense. |
||||||||
| (d) This subtotal reflects the Adjusted Net income(loss) (non-GAAP) reported by the Company for the three and six months ended June 30, 2016 using the methodology for calculating Adjusted Net Income(loss) (non-GAAP) as of that date. |
||||||||
| (e) As of the third quarter of 2016, Adjusted net income(loss) (non-GAAP) no longer includes adjustments for the following items: Depreciation resulting from a PP&E step-up resulting from acquisitions and Previously accelerated vesting of certain share-based equity adjustments. Depreciation resulting from a PP&E step-up resulting from acquisitions was a component of Acquisition-related adjustments excluding amortization of intangible assets. Previously accelerated vesting of certain share-based equity adjustments was a component of Other non-GAAP charges. As of the first quarter of 2017, Adjusted net income(loss) (non-GAAP) also no longer includes adjustments for Foreign exchange loss/gain on intercompany transactions and Amortization of deferred financing costs and debt discounts. For the purpose of allowing investors to evaluate Adjusted net income(loss) (non-GAAP) on the same basis for the periods presented, these adjustments have been removed from the results for the three months and six months ended June 30, 2016. |
||||||||
| Valeant Pharmaceuticals International, Inc. |
Table 2a |
|||||||||||
| Reconciliation of GAAP to Non-GAAP Financial Information |
||||||||||||
| For the Three and Six Months Ended June 30, 2017 and 2016 |
||||||||||||
| (unaudited) |
||||||||||||
| (In millions) |
||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||
| June 30, |
June 30, |
|||||||||||
| 2017 |
2016 |
2017 |
2016 |
|||||||||
| Total Revenues reconciliation: |
||||||||||||
| GAAP Revenues |
$ |
2,233 |
$ |
2,420 |
$ |
4,342 |
$ |
4,792 |
||||
| Philidor Rx Services, LLC sales through deconsolidation as of January 31, 2016 (a) |
- |
- |
- |
(2) |
||||||||
| Adjusted revenues (non-GAAP) |
$ |
2,233 |
$ |
2,420 |
$ |
4,342 |
$ |
4,790 |
||||
| Cost of goods sold and other revenues reconciliation: |
||||||||||||
| GAAP cost of goods sold and Cost of Other revenues |
$ |
646 |
$ |
658 |
$ |
1,242 |
$ |
1,288 |
||||
| % of GAAP total revenues |
29% |
27% |
29% |
27% |
||||||||
| Fair value inventory step-up resulting from acquisitions (b) (k) |
- |
(7) |
- |
(36) |
||||||||
| Depreciation resulting from a PP&E step-up resulting from acquisitions (b) (k) |
- |
(3) |
- |
(6) |
||||||||
| Integration related inventory and technology transfer costs (a) |
- |
(6) |
- |
(9) |
||||||||
| Adjusted cost of goods and Cost of Other revenues (non-GAAP) (k) |
$ |
646 |
$ |
642 |
$ |
1,242 |
$ |
1,237 |
||||
| % of Non-GAAP total revenues |
29% |
27% |
29% |
26% |
||||||||
| Selling, general and administrative reconciliation: |
||||||||||||
| GAAP selling, general and administrative |
$ |
659 |
$ |
671 |
$ |
1,320 |
$ |
1,484 |
||||
| % of GAAP total revenues |
30% |
28% |
30% |
31% |
||||||||
| Depreciation resulting from a PP&E step-up resulting from acquisitions (b) (k) |
- |
- |
- |
(8) |
||||||||
| CEO termination costs (a) |
- |
- |
- |
(35) |
||||||||
| Legal and other professional fees (a) (j) |
(13) |
(9) |
(23) |
(38) |
||||||||
| Philidor Rx Services, LLC expenses through deconsolidation as of January 31, 2016 (a) |
- |
- |
- |
(5) |
||||||||
| Previously accelerated vesting of certain share-based equity instruments (a) (k) |
- |
1 |
- |
2 |
||||||||
| Adjusted selling, general and administrative (non-GAAP) (k) |
$ |
646 |
$ |
663 |
$ |
1,297 |
$ |
1,400 |
||||
| % of Non-GAAP total revenues |
29% |
27% |
30% |
29% |
||||||||
| Research and development reconciliation: |
||||||||||||
| GAAP research and development |
$ |
94 |
$ |
124 |
$ |
190 |
$ |
227 |
||||
| % of GAAP total revenues |
4% |
5% |
4% |
5% |
||||||||
| Depreciation resulting from a PP&E step-up resulting from acquisitions (b) (k) |
- |
(1) |
- |
(1) |
||||||||
| Settlement of certain disputed invoices related to transition services (a) |
- |
(16) |
- |
(16) |
||||||||
| Adjusted research and development (non-GAAP) |
$ |
94 |
$ |
107 |
$ |
190 |
$ |
210 |
||||
| % of Non-GAAP total revenues |
4% |
4% |
4% |
4% |
||||||||
| Amortization of intangible assets reconciliation: |
||||||||||||
| GAAP Amortization of intangible assets |
$ |
623 |
$ |
673 |
$ |
1,258 |
$ |
1,351 |
||||
| Amortization of intangible assets (c) |
(623) |
(673) |
(1,258) |
(1,351) |
||||||||
| Adjusted Amortization of intangible assets (non-GAAP) |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
||||
| Restructuring and integration costs reconciliation: |
||||||||||||
| GAAP Restructuring and integration costs (See Table 4.2) |
$ |
18 |
$ |
20 |
$ |
36 |
$ |
58 |
||||
| Restructuring and integration costs (d) |
(18) |
(20) |
(36) |
(58) |
||||||||
| Adjusted Restructuring and integration costs (non-GAAP) |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
||||
| Acquired in-process research and development costs reconciliation: |
||||||||||||
| GAAP Acquired in-process research and development costs |
$ |
1 |
$ |
2 |
$ |
5 |
$ |
3 |
||||
| Acquired in-process research and development costs (e) |
(1) |
(2) |
(5) |
(3) |
||||||||
| Adjusted Acquired in-process research and development costs (non-GAAP) |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
||||
| Asset Impairments reconciliation: |
||||||||||||
| GAAP Asset Impairments |
$ |
85 |
$ |
230 |
$ |
223 |
$ |
246 |
||||
| Asset Impairments (l) |
(85) |
(230) |
(223) |
(246) |
||||||||
| Adjusted Asset Impairments (non-GAAP) |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
||||
| Acquisition-related contingent consideration reconciliation: |
||||||||||||
| GAAP acquisition-related contingent consideration |
$ |
(49) |
$ |
7 |
$ |
(59) |
$ |
9 |
||||
| Acquisition-related contingent consideration (b) |
49 |
(7) |
59 |
(9) |
||||||||
| Adjusted acquisition-related contingent consideration (non-GAAP) |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
||||
| Other income reconciliation: |
||||||||||||
| GAAP other income |
$ |
(19) |
$ |
(46) |
$ |
(259) |
$ |
(21) |
||||
| Legal settlements and related fees (a) |
(31) |
35 |
(108) |
33 |
||||||||
| Net gain/(loss) on sale of assets (a) |
50 |
11 |
367 |
9 |
||||||||
| Acquisition related transaction costs (a) (k) |
- |
- |
- |
(2) |
||||||||
| Other (primarily loss recognized upon deconsolidation of Philidor Rx Services, LLC as of January 31, 2016) (a) |
- |
- |
- |
(19) |
||||||||
| Adjusted other (income) expense (non-GAAP) |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
||||
| Interest expense, net reconciliation: |
||||||||||||
| GAAP interest expense, net |
$ |
(456) |
$ |
(470) |
$ |
(927) |
$ |
(896) |
||||
| Amortization of debt discounts (f) (k) |
- |
30 |
- |
48 |
||||||||
| Amortization of deferred financing costs (f) (k) |
- |
4 |
- |
6 |
||||||||
| Write-down of deferred financing costs (f) (k) |
- |
2 |
- |
3 |
||||||||
| Adjusted interest expense, net (non-GAAP) |
$ |
(456) |
$ |
(434) |
$ |
(927) |
$ |
(839) |
||||
| Loss on extinguishment of debt reconciliation: |
||||||||||||
| GAAP loss on extinguishment of debt |
$ |
- |
$ |
- |
$ |
(64) |
$ |
- |
||||
| Loss on extinguishment of debt (g) |
- |
- |
64 |
- |
||||||||
| Adjusted loss on extinguishment of debt (non-GAAP) |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
||||
| Foreign exchange and other reconciliation: |
||||||||||||
| GAAP foreign exchange and other |
$ |
39 |
$ |
12 |
$ |
68 |
$ |
6 |
||||
| Foreign exchange loss/gain on intercompany transactions (h) (k) |
- |
(13) |
- |
(15) |
||||||||
| Adjusted foreign exchange and other (non-GAAP) |
$ |
39 |
$ |
(1) |
$ |
68 |
$ |
(9) |
||||
| Recovery of income taxes reconciliation: |
||||||||||||
| GAAP Recovery of income taxes |
$ |
(205) |
$ |
(73) |
$ |
(1,129) |
$ |
(66) |
||||
| Effective GAAP tax rate |
85% |
19% |
210% |
9% |
||||||||
| Tax effect of non-GAAP adjustments (i) |
272 |
161 |
1,246 |
232 |
||||||||
| Adjusted Provision for income taxes (non-GAAP) |
$ |
67 |
$ |
88 |
$ |
117 |
$ |
166 |
||||
| Effective Non-GAAP tax rate |
16% |
15% |
16% |
15% |
||||||||
| (a) Represents a component of the non-GAAP adjustment of "Other non-GAAP charges" (see Table 2). The identified components, in the aggregate, represent all components of this non-GAAP adjustment. |
||||||||||||
| (b) Represents a component of the non-GAAP adjustment of "Acquisition-related adjustments excluding amortization of intangible assets" (see Table 2). The identified components, in the aggregate, represent all components of this non-GAAP adjustment. |
||||||||||||
| (c) Represents the sole component of the non-GAAP adjustment of "Amortization of intangible assets" (see Table 2). |
||||||||||||
| (d) Represents the sole component of the non-GAAP adjustment of "Restructuring and Integration costs" (see Table 2). |
||||||||||||
| (e) Represents the sole component of the non-GAAP adjustment of "Acquired in-process research and development costs" (see Table 2). |
||||||||||||
| (f) Represents a component of the non-GAAP adjustment of "Amortization of deferred financing costs and debt discounts" (see Table 2). The identified components, in the aggregate, represent all components of this non-GAAP adjustment. |
||||||||||||
| (g) Represents the sole component of the non-GAAP adjustment of "Loss on extinguishment of debt" (see Table 2). |
||||||||||||
| (h) Represents a component of the non-GAAP adjustment of "Foreign exchange and other" (see Table 2). The identified components, in the aggregate, represent all components of this non-GAAP adjustment. |
||||||||||||
| (i) Represents the sole component of the non-GAAP adjustment of "Tax effect of non-GAAP adjustments" (see Table 2). |
||||||||||||
| (j) Legal and other professional fees incurred in connection with recent legal and governmental proceedings, investigations and information requests related to, among other matters, our distribution, marketing, pricing, disclosure and accounting practices for the three months and six months ended June 30, 2016 and June 30, 2017. |
||||||||||||
| (k) As of the third quarter of 2016, Adjusted net income(loss) (non-GAAP) no longer includes adjustments for the following items: Depreciation resulting from a PP&E step-up resulting from acquisitions and Previously accelerated vesting of certain share-based equity adjustments. Depreciation resulting from a PP&E step-up resulting from acquisitions was a component of Acquisition-related adjustments excluding amortization of intangible assets. Previously accelerated vesting of certain share-based equity adjustments was a component of Other non-GAAP charges. As of the first quarter of 2017, Adjusted net income(loss) (non-GAAP) also no longer includes adjustments for Foreign exchange loss/gain on intercompany transactions and Amortization of deferred financing costs and debt discounts. For the purpose of allowing investors to evaluate Adjusted net income(loss) (non-GAAP) on the same basis for the periods presented, these adjustments have been removed from the results for the three months and six months ended June 30, 2016. See reconciliation on Table 2. |
||||||||||||
| (l) Represents the sole component of the non-GAAP adjustment of "Asset Impairments" (see Table 2). Asset impairments were $85 million and $230 million for the three months ended June 30, 2017 and 2016, respectively, a decrease of $145 million. We continue to critically evaluate our businesses and product portfolios and as a result identified assets that are not aligned with our core objectives. Asset impairments for the three months ended June 30, 2017 includes (i) impairments of $44 million, in aggregate, to certain product/patent assets associated with the discontinuance of specific product lines not aligned with the focus of the Company's core business, (ii) an impairment of $17 million reflecting a decrease in forecasted sales for a specific product line and (iii) impairments of $16 million to assets reclassified as held for sale. Asset impairments for the three months ended June 30, 2016 includes an impairment loss of $199 million associated with the Ruconest® business which was reclassified as held for sale as of June 30, 2016. |
||||||||||||
| Valeant Pharmaceuticals International, Inc. |
Table 2b |
||||||||
| Reconciliation of GAAP Net Income to Adjusted EBITDA (non-GAAP) |
|||||||||
| For the Three and Six Months Ended June 30, 2017 and 2016 |
|||||||||
| (unaudited) |
|||||||||
| (In millions) |
|||||||||
| Adjusted EBITDA (non-GAAP) |
|||||||||
| Three Months Ended |
Six Months Ended |
||||||||
| June 30, |
June 30, |
||||||||
| 2017 |
2016 |
2017 |
2016 |
||||||
| Net (loss) income attributable to Valeant Pharmaceuticals International, Inc. |
$ (38) |
$ (302) |
$ 590 |
$ (676) |
|||||
| Interest expense, net |
456 |
470 |
927 |
896 |
|||||
| Recovery of income taxes |
(205) |
(73) |
(1,129) |
(66) |
|||||
| Depreciation and amortization |
666 |
720 |
1,340 |
1,451 |
|||||
| EBITDA |
879 |
815 |
1,728 |
1,605 |
|||||
| Adjustments: |
|||||||||
| Restructuring and integration costs |
18 |
20 |
36 |
58 |
|||||
| Acquired in-process research and development costs |
1 |
2 |
5 |
3 |
|||||
| Asset impairments (d) |
85 |
230 |
223 |
246 |
|||||
| Share-based compensation |
23 |
33 |
51 |
97 |
|||||
| Acquisition-related adjustments excluding amortization of intangible assets, net of depreciation expense |
(49) |
14 |
(59) |
45 |
|||||
| Loss on extinguishment of debt |
- |
- |
64 |
- |
|||||
| Foreign exchange and other |
- |
(13) |
- |
(15) |
|||||
| Other non-GAAP charges (a) |
(6) |
(14) |
(236) |
56 |
|||||
| Adjusted EBITDA (non-GAAP) (As Reported) (e) |
$ 951 |
$ 1,087 |
$ 1,812 |
$ 2,095 |
|||||
| Foreign exchange loss/gain on intercompany transactions |
13 |
15 |
|||||||
| Adjusted EBITDA (non-GAAP) (Revised basis) (f) |
$ 951 |
$ 1,100 |
$ 1,812 |
$ 2,110 |
|||||
| (a) Other non-GAAP charges include: |
$ (6) |
$ (14) |
$ (236) |
$ 56 |
|||||
| Integration related inventory and technology transfer costs |
- |
6 |
- |
9 |
|||||
| CEO termination costs (cash severance payment) |
- |
- |
- |
10 |
|||||
| Legal and other professional fees (b) |
13 |
9 |
23 |
38 |
|||||
| Settlement of certain disputed invoices related to transition services |
- |
16 |
- |
16 |
|||||
| Litigation and other matters |
31 |
(35) |
108 |
(33) |
|||||
| Net (gain)/loss on sale of assets (c) |
(50) |
(11) |
(367) |
(9) |
|||||
| Acquisition related transaction costs |
- |
- |
- |
2 |
|||||
| Philidor Rx Services, LLC net loss through deconsolidation as of January 31, 2016 |
- |
- |
- |
3 |
|||||
| Other |
- |
1 |
- |
20 |
|||||
| (b) Legal and other professional fees incurred in connection with recent legal and governmental proceedings, investigations and information requests related to, among other matters, our distribution, marketing, pricing, disclosure and accounting practices. |
|||||||||
| (c) For the three months and six months ended June 30, 2017, Net (gain)/loss on sale of assets of $50M and $367 million respectively were primarily due to $73M gain on the Oncology sale and $319 million gain on the Skincare sale. |
|||||||||
| (d) Asset impairments were $85 million and $230 million for the three months ended June 30, 2017 and 2016, respectively, a decrease of $145 million. We continue to critically evaluate our businesses and product portfolios and as a result identified assets that are not aligned with our core objectives. Asset impairments for the three months ended June 30, 2017 includes (i) impairments of $44 million, in aggregate, to certain product/patent assets associated with the discontinuance of specific product lines not aligned with the focus of the Company's core business, (ii) an impairment of $17 million reflecting a decrease in forecasted sales for a specific product line and (iii) impairments of $16 million to assets reclassified as held for sale. Asset impairments for the three months ended June 30, 2016 includes an impairment loss of $199 million associated with the Ruconest® business which was reclassified as held for sale as of June 30, 2016. |
|||||||||
| (e) This subtotal reflects the Adjusted EBITDA (non-GAAP) reported by the Company for the three months and six months ended June 30, 2016 using the methodology for calculating Adjusted EBITDA (non-GAAP) as of that date. |
|||||||||
| (f) As of the first quarter of 2017, non-GAAP adjustments no longer include adjustments for Foreign exchange gain/loss arising from intercompany transactions. For the purpose of allowing investors to evaluate Adjusted EBITDA on the same basis for the periods presented, this adjustment has been removed from the results for the three months and six months ended June 30, 2016. |
|||||||||
| Valeant Pharmaceuticals International, Inc. |
Table 3 |
||||||||||||
| Organic Growth (non-GAAP) - by Segment |
|||||||||||||
| For the Three and Six Months Ended June 30, 2017 and 2016 |
|||||||||||||
| (In Millions) |
|||||||||||||
| As reported |
|||||||||||||
| For the Three Months Ended June 30, |
|||||||||||||
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
Organic Growth |
|||||||
| Global Vision Care |
187 |
196 |
(3) |
190 |
-3% |
3 |
-2% |
||||||
| Global Surgical |
178 |
180 |
(3) |
181 |
1% |
- |
1% |
||||||
| Global Consumer Products |
379 |
410 |
(1) |
380 |
-7% |
40 |
3% |
||||||
| Global Ophthalmology RX |
167 |
162 |
(2) |
169 |
4% |
- |
4% |
||||||
| International |
330 |
329 |
(45) |
375 |
14% |
8 |
17% |
||||||
| Other revenue |
- |
- |
- |
- |
0% |
- |
0% |
||||||
| Bausch + Lomb / International (d) |
1,241 |
1,277 |
(54) |
1,295 |
1% |
51 |
6% |
||||||
| Salix (GI) |
387 |
341 |
- |
387 |
13% |
8 |
16% |
||||||
| Dermatology |
130 |
188 |
- |
130 |
-31% |
- |
-31% |
||||||
| Dendreon |
83 |
77 |
- |
83 |
8% |
5 |
15% |
||||||
| Dentistry |
35 |
45 |
- |
35 |
-22% |
1 |
-20% |
||||||
| Other revenue |
1 |
2 |
- |
1 |
-50% |
- |
-50% |
||||||
| Branded Rx |
636 |
653 |
- |
636 |
-3% |
14 |
0% |
||||||
| Neuro |
248 |
344 |
- |
248 |
-28% |
- |
-28% |
||||||
| Generics |
82 |
122 |
- |
82 |
-33% |
- |
-33% |
||||||
| Solta |
9 |
6 |
- |
9 |
50% |
- |
50% |
||||||
| Obagi |
16 |
14 |
- |
16 |
14% |
- |
14% |
||||||
| Other revenue |
1 |
4 |
- |
1 |
-75% |
4 |
100% |
||||||
| U.S. Diversified Products |
356 |
490 |
- |
356 |
-27% |
4 |
-27% |
||||||
| Total revenues |
$ 2,233 |
$ 2,420 |
$ (54) |
$ 2,287 |
-5% |
$ 69 |
-3% |
||||||
| As reported |
|||||||||||||
| For the Six Months Ended June 30, |
|||||||||||||
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
Organic Growth |
|||||||
| Global Vision Care |
357 |
368 |
(4) |
361 |
-2% |
5 |
-1% |
||||||
| Global Surgical |
335 |
348 |
(7) |
342 |
-2% |
- |
-2% |
||||||
| Global Consumer Products |
754 |
778 |
1 |
753 |
-3% |
54 |
4% |
||||||
| Global Ophthalmology RX |
310 |
303 |
(4) |
314 |
4% |
1 |
4% |
||||||
| International |
635 |
626 |
(81) |
716 |
14% |
12 |
17% |
||||||
| Other revenue |
- |
- |
- |
- |
0% |
- |
0% |
||||||
| Bausch + Lomb / International |
2,391 |
2,423 |
(95) |
2,486 |
3% |
72 |
6% |
||||||
| Salix (GI) |
689 |
681 |
- |
689 |
1% |
14 |
3% |
||||||
| Dermatology |
322 |
403 |
- |
322 |
-20% |
- |
-20% |
||||||
| Dendreon |
164 |
149 |
- |
164 |
10% |
5 |
14% |
||||||
| Dentistry |
63 |
83 |
- |
63 |
-24% |
1 |
-23% |
||||||
| Other revenue |
2 |
2 |
- |
2 |
0% |
- |
0% |
||||||
| Branded Rx |
1,240 |
1,318 |
- |
1,240 |
-6% |
20 |
-4% |
||||||
| Neuro |
491 |
766 |
- |
491 |
-36% |
- |
-36% |
||||||
| Generics |
167 |
242 |
- |
167 |
-31% |
- |
-31% |
||||||
| Solta |
17 |
12 |
- |
17 |
42% |
- |
42% |
||||||
| Obagi |
33 |
24 |
- |
33 |
38% |
- |
38% |
||||||
| Other revenue |
3 |
7 |
- |
3 |
-57% |
4 |
0% |
||||||
| U.S. Diversified Products |
711 |
1,051 |
- |
711 |
-32% |
4 |
-32% |
||||||
| Total revenues |
$ 4,342 |
$ 4,792 |
$ (95) |
$ 4,437 |
-7% |
$ 96 |
-6% |
||||||
| (a) Currency impact for constant currency sales is determined by comparing 2017 reported amounts adjusted to exclude currency impact, calculated using 2016 monthly average exchange rates, to the actual 2016 reported amounts. |
|||||||||||||
| (b) To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures. |
|||||||||||||
| (c) Organic Growth Definitions: This measure provides growth rates for businesses that have been owned for one year or more. |
|||||||||||||
| ((Current Year Total sales – acquisitions within the last year - YoY FX impact)- (Prior Year Total sales – divestitures & discontinuations))/( Prior Year Total sales – divestitures & discontinuations) |
|||||||||||||
| (d) Includes China and Europe, Africa/Middle East Organic Growth: |
|||||||||||||
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
Organic Growth |
|||||||
| China |
81 |
78 |
(4) |
85 |
9% |
- |
9% |
||||||
| Europe, Africa/Middle East |
459 |
457 |
(47) |
506 |
11% |
2 |
11% |
||||||
| Valeant Pharmaceuticals International, Inc. |
Table 4 |
||||
| Consolidated Balance Sheet and Other Data |
|||||
| (unaudited) |
|||||
| (In millions) |
|||||
| As of |
As of |
||||
| June 30, |
December 31, |
||||
| 2017 |
2016 |
||||
| Cash |
|||||
| Cash and cash equivalents |
$ 1,214 |
$ 542 |
|||
| Restricted cash |
811 |
- |
|||
| Cash, cash equivalents and restricted cash |
$ 2,025 |
$ 542 |
|||
| Debt |
|||||
| Revolving Credit Facility |
$ 525 |
$ 875 |
|||
| Series A-3 Tranche A Term Loan Facility |
- |
1,016 |
|||
| Series A-4 Tranche A Term Loan Facility |
- |
658 |
|||
| Series D-2 Tranche B Term Loan Facility |
- |
1,048 |
|||
| Series C-2 Tranche B Term Loan Facility |
- |
805 |
|||
| Series E-1 Tranche B Term Loan Facility |
- |
2,429 |
|||
| Series F Tranche B Term Loan Facility |
6,472 |
3,815 |
|||
| Senior Notes |
21,450 |
19,188 |
|||
| Other |
14 |
12 |
|||
| Total long-term debt |
28,461 |
29,846 |
|||
| Less: current portion |
(813) |
(1) |
|||
| Non-current portion of long-term debt |
$ 27,648 |
$ 29,845 |
|||
| Three Months Ended |
|||||
| June 30, |
|||||
| GAAP Cash Flow |
2017 |
2016 |
|||
| Cash provided by operating activities |
$ 268 |
$ 448 |
|||
| Restructuring and integration costs |
|||||
| Three Months Ended |
|||||
| June 30, 2017 |
|||||
| by project type |
Cash Paid |
Expense |
|||
| Restructuring initiatives |
$ 15 |
$ 7 |
|||
| Salix Pharmaceuticals, Ltd. |
2 |
5 |
|||
| Other |
4 |
6 |
|||
| Total |
$ 21 |
$ 18 |
|||
| by expense type |
Cash Paid |
Expense |
|||
| Consulting, duplicative labor, transition services, and other |
$ 13 |
$ 3 |
|||
| Severance payments |
3 |
4 |
|||
| Facility closure costs |
5 |
11 |
|||
| Total |
$ 21 |
$ 18 |
|||
| Investor Contact: |
Media Contact: |
| Arthur Shannon |
Lainie Keller |
| (514) 856-3855 |
(908) 927-0617 |
| (877) 281-6642 (toll free) |
SOURCE Valeant Pharmaceuticals International, Inc.
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