| Collegium Pharmaceutical, Inc.
Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income and Adjusted Earnings Per Share
(in thousands, except share and per share amounts)
(unaudited)
1) The income tax effect of the adjustments was calculated by applying our blended federal and state statutory rate to the items that have a tax effect. The blended federal and state statutory rate for the three
months ended June 30, 2023 and 2022 were 24% and 26%, respectively; and the blended federal and state statutory rate for the six months ended June 30, 2023 and 2022 were 25.6% and 26%, respectively. As
such, the non-GAAP effective tax rates for the three months ended June 30, 2023 and 2022 were 23.5% and 25.4%, respectively; and the non-GAAP effective tax rates for the six months ended June 30, 2023 and
2022 were 22.2% and 25.4%, respectively.
2) Adjusted weighted-average shares - diluted were calculated using the “if-converted” method for our convertible notes in accordance with ASC 260, Earnings per Share. As such, adjusted weighted-average shares –
diluted includes shares related to the assumed conversion of our convertible notes and the associated cash interest expense added-back to non-GAAP adjusted net income. For the three months ended June 30,
2023 and 2022, adjusted weighted-average shares – diluted includes 7,509,104 and 4,925,134, respectively, attributable to our convertible notes. For the six months ended June 30, 2023 and 2022, adjusted
weighted-average shares – diluted includes 6,041,036 and 4,925,134, respectively, attributable to our convertible notes. In addition, for the three and six months ended June 30, 2023 and 2022, adjusted earnings
per share also includes other potentially dilutive securities to the extent that they are not antidilutive given that non-GAAP adjusted net income was in an income position. 23
GAAP net income (loss) $ 13,007 $ (5,191) $ (4,419) $ (18,260)
Adjustments:
Non-cash interest expense 2,261 2,522 4,548 3,435
Loss on extinguishment of debt — — 23,504 —
Amortization 37,463 37,501 74,929 56,424
Stock-based compensation expense 7,072 5,692 13,107 11,827
Litigation settlements — — 8,500 —
Acquisition related expenses — 3,579 — 30,746
Recognition of step-up basis in inventory 4,748 12,638 14,918 13,241
Income tax effect of above adjustments (1) (12,100) (15,737) (30,974) (29,408)
Total adjustments $ 39,444 $ 46,195 $ 108,532 $ 86,265
Non-GAAP adjusted net income $ 52,451 $ 41,004 $ 104,113 $ 68,005
Adjusted weighted-average shares — diluted (2) 42,849,952 39,256,685 41,485,868 39,290,207
Adjusted earnings per share (2) $ 1.26 $ 1.07 $ 2.57 $ 1.78
Three Months Ended June 30,
2023 2022
Six Months Ended June 30,
2023 2022 |