‒ Q2 2024 Net Revenue of $702 million; GAAP Net
Income of $6 million; Diluted Income per Share of $0.02 ‒
‒ Adjusted EBITDA of $162 million; Adjusted
Diluted EPS of $0.16 ‒
‒ Raising 2024 Full Year Guidance ‒
‒ CREXONT® U.S. FDA approval represents an
exciting new long-term growth driver ‒
Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX) (“Amneal” or
the “Company”) announced its results today for the second quarter
ended June 30, 2024.
“Amneal achieved strong revenues and adjusted EBITDA in the
second quarter, and we are pleased to raise full year 2024 guidance
driven by broad-based growth across our business. Amneal is a
diversified and growing global pharmaceuticals company built on our
core strengths in quality, innovation and operational execution.
Coupled with this week’s approval of CREXONT for Parkinson’s
disease, Amneal is well positioned to continue delivering durable
long-term growth. We are excited about the big opportunities ahead
as we focus on the most important areas of medicine to create value
for patients, providers and all stakeholders,” said Chirag and
Chintu Patel, Co-Chief Executive Officers.
Second Quarter 2024 Results
Net revenue in the second quarter of 2024 was $702 million, an
increase of 17% compared to $599 million in the second quarter of
2023. Generics net revenue increased 14% driven primarily by
biosimilars and new product launches. Specialty net revenue
increased 7% driven by promoted products in Neurology and
Endocrinology. AvKARE net revenue increased 33% driven by continued
growth across its sales channels.
Net income attributable to Amneal Pharmaceuticals, Inc. was $6
million in the second quarter of 2024 compared to $12 million in
the second quarter of 2023.
Adjusted EBITDA in the second quarter of 2024 was $162 million,
an increase of 11% compared to the second quarter of 2023,
reflective of strong revenue performance partially offset by the
impact of business mix on gross margins and higher commercial spend
to support new products.
Diluted income per share in the second quarter of 2024 was $0.02
compared to $0.08 for the second quarter of 2023, primarily due to
lower net income. Adjusted diluted earnings per share in the second
quarter of 2024 was $0.16 compared to $0.19 for the second quarter
of 2023 due to the aforementioned factor.
The Company presents GAAP and adjusted (non-GAAP) quarterly
results. Please refer to the “Non-GAAP Financial Measures” section
for more information. In the tables provided below, GAAP to
non-GAAP reconciliations are presented.
Raising Full Year 2024 Guidance
The Company is raising its previously provided full year 2024
guidance.
Updated
Guidance
Prior
Guidance
Net revenue
$2.70 billion - $2.80 billion
$2.55 billion - $2.65 billion
Adjusted EBITDA (1)
$610 million - $630 million
$580 million - $620 million
Adjusted diluted EPS (2)
$0.57 - $0.63
$0.53 - $0.63
Operating cash flow (3)
$280 million - $320 million
$260 million - $300 million
Capital expenditures
$60 million - $70 million
$60 million - $70 million
(1)
Includes 100% of Adjusted EBITDA
from the AvKARE acquisition.
(2)
Accounts for 35% non-controlling
interest in AvKARE. Updated guidance and prior guidance assume
weighted-average diluted shares outstanding of approximately 320
million and 317 million for the year ending December 31, 2024,
respectively.
(3)
Does not contemplate one-time and
non-recurring items such as legal settlements and other discrete
items.
Amneal’s 2024 estimates are based on management’s current
expectations, including with respect to prescription trends,
pricing levels, the timing of future product launches, the costs
incurred and benefits realized of restructuring activities, and our
long-term strategy. The Company’s financial statements are prepared
in accordance with accounting principles generally accepted in the
United States of America (“GAAP”). The Company cannot provide a
reconciliation between non-GAAP projections and the most directly
comparable measures in accordance with GAAP 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 and benefits,
asset impairments, legal settlements, and other gains and losses.
These items are uncertain, depend on various factors, and could
have a material impact on GAAP reported results.
Conference Call Information
Amneal will host a conference call and live webcast at 8:30 am
Eastern Time today, August 9, 2024, to discuss its results. The
live webcast and presentation will be accessible through the
Investor Relations section of the Company’s website at
https://investors.amneal.com. To access the call through a
conference line, dial (833) 470-1428 (in the U.S.) with access code
462066. A replay of the conference call will be posted shortly
after the call and will be available for seven days. For a list of
toll-free international numbers, visit this website:
https://www.netroadshow.com/events/global-numbers?confId=52762.
About Amneal
Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX), headquartered in
Bridgewater, NJ, is a global pharmaceuticals company. We make
healthy possible through the development, manufacturing, and
distribution of a diverse portfolio of over 280 generic and
specialty pharmaceuticals, primarily within the United States. In
its Generics segment, the Company is expanding across a broad range
of complex product categories and therapeutic areas, including
injectables and biosimilars. In its Specialty segment, Amneal has a
growing portfolio of branded pharmaceuticals focused primarily on
central nervous system and endocrine disorders, with a pipeline
focused on unmet needs. Through its AvKARE segment, the Company is
a distributor of pharmaceuticals and other products for the U.S.
federal government, retail, and institutional markets. For more
information, please visit www.amneal.com.
Cautionary Statement on Forward-Looking Statements
Certain statements contained herein, regarding matters that are
not historical facts, may be forward-looking statements (as defined
in the U.S. Private Securities Litigation Reform Act of 1995). Such
forward-looking statements include statements regarding
management’s intentions, plans, beliefs, expectations, financial
results, or forecasts for the future, including among other things:
discussions of future operations; expected or estimated operating
results and financial performance; and statements regarding our
positioning, including our ability to drive sustainable long-term
growth, and other non-historical statements. Words such as “plans,”
“expects,” “will,” “anticipates,” “estimates,” and similar words,
or the negatives thereof, are intended to identify estimates and
forward-looking statements.
The reader is cautioned not to rely on these forward-looking
statements. These forward-looking statements are based on current
expectations of future events, including with respect to future
market conditions, company performance and financial results,
operational investments, business prospects, new strategies and
growth initiatives, the competitive environment, and other events.
If the underlying assumptions prove inaccurate or known or unknown
risks or uncertainties materialize, actual results could vary
materially from the expectations and projections of the
Company.
Such risks and uncertainties include, but are not limited to:
our ability to successfully develop, license, acquire and
commercialize new products on a timely basis; the competition we
face in the pharmaceutical industry from brand and generic drug
product companies, and the impact of that competition on our
ability to set prices; our ability to obtain exclusive marketing
rights for our products; our revenues are derived from the sales of
a limited number of products, a substantial portion of which are
through a limited number of customers; the impact of a prolonged
business interruption within our supply chain; the continuing trend
of consolidation of certain customer groups; our dependence on
third-party suppliers and distributors for raw materials for our
products and certain finished goods; legal, regulatory and
legislative efforts by our brand competitors to deter competition
from our generic alternatives; our dependence on information
technology systems and infrastructure and the potential for
cybersecurity incidents; our ability to attract, hire and retain
highly skilled personnel; risks related to federal regulation of
arrangements between manufacturers of branded and generic products;
our reliance on certain licenses to proprietary technologies from
time to time; the significant amount of resources we expend on
research and development; the risk of claims brought against us by
third parties; risks related to changes in the regulatory
environment, including U.S. federal and state laws related to
healthcare fraud abuse and health information privacy and security
and changes in such laws; changes to Food and Drug Administration
product approval requirements; the impact of healthcare reform and
changes in coverage and reimbursement levels by governmental
authorities and other third-party payers; our dependence on
third-party agreements for a portion of our product offerings; our
substantial amount of indebtedness and our ability to generate
sufficient cash to service our indebtedness in the future, and the
impact of interest rate fluctuations on such indebtedness; our
potential expansion into additional international markets
subjecting us to increased regulatory, economic, social and
political uncertainties; our ability to identify, make and
integrate acquisitions or investments in complementary businesses
and products on advantageous terms; the impact of global economic,
political or other catastrophic events; our obligations under a tax
receivable agreement may be significant; and the high concentration
of ownership of our Class A common stock and the fact that we are
controlled by the Amneal Group. The forward-looking statements
contained herein are also subject generally to other risks and
uncertainties that are described from time to time in the Company’s
filings with the Securities and Exchange Commission, including
under Item 1A, “Risk Factors” in the Company’s most recent Annual
Report on Form 10-K and in its subsequent reports on Forms 10-Q and
8-K. Investors are cautioned not to place undue reliance on any
such forward-looking statements, which speak only as of the date
they are made. 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 the occurrence of events or
circumstances after the date hereof.
Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures,
including EBITDA, adjusted EBITDA, adjusted net income and adjusted
diluted EPS, which are intended as supplemental measures of the
Company’s performance that are not required by or presented in
accordance with GAAP. Adjusted diluted EPS reflects diluted
earnings (loss) per share based on adjusted net income (loss),
which is net loss adjusted to (A) exclude (i) non-cash interest,
(ii) GAAP provision for (benefit from) income taxes, (iii)
amortization, (iv) stock-based compensation, (v) acquisition, site
closure expenses, and idle facility expenses, (vi) restructuring
and other charges, (vii) charges related to certain legal matters,
including interest, net, (viii) asset impairment charges, (ix)
change in fair value of contingent consideration, (x) increase in
tax receivable agreement liability, (xi) system implementation
expense, (xii) other and (xiii) net income attributable to
non-controlling interests not associated with our Class B common
stock, and (B) include non-GAAP provision for income taxes.
Non-GAAP adjusted diluted EPS for the three and six months ended
June 30, 2024 was calculated using the weighted average fully
diluted shares outstanding of Class A common stock. Non-GAAP
adjusted diluted EPS for the three and six months ended June 30,
2023 was calculated using the weighted average diluted shares
outstanding of Class A common stock and assuming all shares of
Class B common stock were converted to shares of Class A common
stock as of January 1, 2023.
Management uses these non-GAAP measures internally to evaluate
and manage the Company’s operations and to better understand its
business because they facilitate a comparative assessment of the
Company’s operating performance relative to its performance based
on results calculated under GAAP. These non-GAAP measures also
isolate the effects of some items that vary from period to period
without any correlation to core operating performance and eliminate
certain charges that management believes do not reflect the
Company’s operations and underlying operational performance. The
compensation committee of the Company’s board of directors also
uses certain of these measures to evaluate management’s performance
and set its compensation. The Company believes that these non-GAAP
measures also provide useful information to investors regarding
certain financial and business trends relating to the Company’s
financial condition and operating results facilitates an evaluation
of the financial performance of the Company and its operations on a
consistent basis. Providing this information therefore allows
investors to make independent assessments of the Company’s
financial performance, results of operations and trends while
viewing the information through the eyes of management.
These non-GAAP measures are subject to limitations. The non-GAAP
measures presented in this release may not be comparable to
similarly titled measures used by other companies because other
companies may not calculate one or more in the same manner.
Additionally, the non-GAAP performance measures exclude significant
expenses and income that are required by GAAP to be recorded in the
Company’s financial statements; do not reflect changes in, or cash
requirements for, working capital needs; and do not reflect
interest expense, or the requirements necessary to service interest
or principal payments on debt. Further, our historical adjusted
results are not intended to project our adjusted results of
operations or financial position for any future period. To
compensate for these limitations, management presents and considers
these non-GAAP measures in conjunction with the Company’s GAAP
results; no non-GAAP measure should be considered in isolation from
or as alternatives to any measure determined in accordance with
GAAP. Readers should review the reconciliations included below, and
should not rely on any single financial measure to evaluate the
Company’s business.
A reconciliation of each historical non-GAAP measure to the most
directly comparable GAAP measure is set forth below.
Amneal Pharmaceuticals,
Inc.
Consolidated Statements of
Operations
(unaudited; $ in thousands,
except per share amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net revenue
$
701,780
$
599,046
$
1,360,971
$
1,156,586
Cost of goods sold
451,833
379,025
872,964
758,379
Gross profit
249,947
220,021
488,007
398,207
Selling, general and administrative
116,462
105,570
229,057
207,666
Research and development
36,054
37,799
75,352
76,489
Intellectual property legal development
expenses
1,042
820
2,026
2,464
Restructuring and other charges
220
82
1,690
592
Change in fair value of contingent
consideration
—
(6,364
)
100
(3,907
)
Charges related to legal matters, net
699
2,017
95,058
1,581
Other operating expense (income)
—
13
—
(1,211
)
Operating income
95,470
80,084
84,724
114,533
Other (expense) income:
Interest expense, net
(65,719
)
(50,857
)
(131,422
)
(100,172
)
Foreign exchange (loss) gain, net
(262
)
421
(1,459
)
2,322
Increase in tax receivable agreement
liability
(13,444
)
(405
)
(15,392
)
(1,231
)
Other income, net
4,360
417
8,432
4,782
Total other expense, net
(75,065
)
(50,424
)
(139,841
)
(94,299
)
Income (loss) before income taxes
20,405
29,660
(55,117
)
20,234
Provision for (benefit from) income
taxes
3,618
(23
)
9,774
645
Net income (loss)
16,787
29,683
(64,891
)
19,589
Less: Net income attributable to
non-controlling interests
(10,793
)
(17,766
)
(20,758
)
(14,615
)
Net income (loss) attributable to
Amneal Pharmaceuticals, Inc.
$
5,994
$
11,917
$
(85,649
)
$
4,974
Net income (loss) per share
attributable to Amneal Pharmaceuticals, Inc.'s Class A common
stockholders:
Basic
$
0.02
$
0.08
$
(0.28
)
$
0.03
Diluted
$
0.02
$
0.08
$
(0.28
)
$
0.03
Weighted-average common shares
outstanding(1):
Basic
309,117
153,738
308,198
152,928
Diluted
318,957
154,887
308,198
154,575
(1)
Following the implementation of
the Reorganization on November 7, 2023, all outstanding shares of
Old PubCo Class A Common Stock and Old PubCo Class B Common Stock
were exchanged for an equivalent number of shares of Class A common
stock of the Company. Refer to Note 1. Nature of Operations and
Note 8. (Loss) Earnings per Share to the consolidated financial
statements in the Company’s 2023 Annual Report on Form 10-K for
additional information.
Amneal Pharmaceuticals,
Inc.
Condensed Consolidated Balance
Sheets
(unaudited; $ in
thousands)
June 30, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
43,769
$
91,542
Restricted cash
5,853
7,565
Trade accounts receivable, net
769,871
613,732
Inventories
575,624
581,384
Prepaid expenses and other current
assets
81,596
82,685
Related party receivables
8,767
955
Total current assets
1,485,480
1,377,863
Property, plant and equipment, net
425,380
447,574
Goodwill
598,533
598,629
Intangible assets, net
819,944
890,423
Operating lease right-of-use assets
33,284
30,329
Operating lease right-of-use assets -
related party
11,974
12,954
Financing lease right-of-use assets
58,299
59,280
Other assets
77,028
55,517
Total assets
$
3,509,922
$
3,472,569
Liabilities and Stockholders'
(Deficiency) Equity
Current liabilities:
Accounts payable and accrued expenses
$
619,194
$
534,662
Current portion of liabilities for legal
matters
30,740
76,988
Revolving credit facility
179,000
179,000
Current portion of long-term debt, net
225,156
34,125
Current portion of operating lease
liabilities
9,669
9,207
Current portion of operating lease
liabilities - related party
3,259
2,825
Current portion of financing lease
liabilities
3,199
2,467
Related party payables - short term
12,773
7,321
Current portion of notes payable - related
party
31,363
—
Total current liabilities
1,114,353
846,595
Long-term debt, net
2,177,578
2,386,004
Note payable - related party
—
41,447
Operating lease liabilities
26,782
24,095
Operating lease liabilities - related
party
11,126
12,787
Financing lease liabilities
58,007
58,566
Related party payables - long term
16,146
11,776
Liabilities for legal matters - long
term
85,479
316
Other long-term liabilities
24,518
29,679
Total long-term liabilities
2,399,636
2,564,670
Redeemable non-controlling interests
53,422
41,293
Total stockholders' (deficiency)
equity
(57,489
)
20,011
Total liabilities and stockholders'
(deficiency) equity
$
3,509,922
$
3,472,569
Amneal Pharmaceuticals,
Inc.
Consolidated Statements of
Cash Flows
(unaudited; $ in
thousands)
Six Months Ended June
30,
2024
2023
Cash flows from operating
activities:
Net (loss) income
$
(64,891
)
$
19,589
Adjustments to reconcile net (loss) income
to net cash provided by operating activities:
Depreciation and amortization
111,100
115,261
Unrealized foreign currency loss
(gain)
2,080
(1,561
)
Amortization of debt issuance costs and
discount
1,221
4,523
Intangible asset impairment charges
920
1,283
Change in fair value of contingent
consideration
100
(3,907
)
Stock-based compensation
13,446
14,157
Inventory provision
41,493
41,806
Other operating charges and credits,
net
(1,531
)
3,364
Changes in assets and liabilities:
Trade accounts receivable, net
(155,843
)
66,976
Inventories
(35,447
)
(60,526
)
Prepaid expenses, other current assets and
other assets
(8,418
)
31,898
Related party receivables
(628
)
351
Accounts payable, accrued expenses and
other liabilities
122,026
(107,760
)
Related party payables
9,619
2,913
Net cash provided by operating
activities
35,247
128,367
Cash flows from investing
activities:
Purchases of property, plant and
equipment
(19,824
)
(21,691
)
Acquisition of intangible assets
(10,450
)
(1,488
)
Deposits for future acquisition of
property, plant and equipment
(940
)
(842
)
Proceeds from sale of subsidiary
4,989
—
Net cash used in investing activities
(26,225
)
(24,021
)
Cash flows from financing
activities:
Payments of principal on debt, revolving
credit facilities, financing leases and other
(78,877
)
(87,566
)
Borrowings on revolving credit
facilities
48,000
100,000
Proceeds from exercise of stock
options
386
—
Employee payroll tax withholding on
restricted stock unit vesting
(7,371
)
(2,033
)
Tax distributions to non-controlling
interests
(8,883
)
(35,557
)
Payment of principal on notes payable -
related party
(11,496
)
—
Net cash used in financing activities
(58,241
)
(25,156
)
Effect of foreign exchange rate on
cash
(266
)
165
Net (decrease) increase in cash, cash
equivalents, and restricted cash
(49,485
)
79,355
Cash, cash equivalents, and restricted
cash - beginning of period
99,107
35,227
Cash, cash equivalents, and restricted
cash - end of period
$
49,622
$
114,582
Cash and cash equivalents - end of
period
$
43,769
$
109,284
Restricted cash - end of period
5,853
5,298
Cash, cash equivalents, and restricted
cash - end of period
$
49,622
$
114,582
Amneal Pharmaceuticals,
Inc.
Non-GAAP
Reconciliations
(unaudited, $ in
thousands)
Reconciliation of Net Income
(Loss) to EBITDA and Adjusted EBITDA
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income (loss)
$
16,787
$
29,683
$
(64,891
)
$
19,589
Adjusted to add:
Interest expense, net
65,719
50,857
131,422
100,172
Provision for (benefit from) income
taxes
3,618
(23
)
9,774
645
Depreciation and amortization
55,572
57,111
111,100
115,261
EBITDA (Non-GAAP)
$
141,696
$
137,628
$
187,405
$
235,667
Adjusted to add (deduct):
Stock-based compensation expense
6,725
6,561
13,231
14,157
Acquisition, site closure, and idle
facility expenses (1)
579
1,579
1,023
4,280
Restructuring and other charges
131
82
1,601
493
Charges related to legal matters, net
(2)
699
2,017
95,058
6,081
Asset impairment charges
—
1,338
1,015
2,071
Foreign exchange loss (gain)
262
(421
)
1,459
(2,322
)
Change in fair value of contingent
consideration
—
(6,364
)
100
(3,907
)
Increase in tax receivable agreement
liability
13,444
405
15,392
1,231
System implementation expense (3)
855
1,641
1,772
2,413
Other
(2,180
)
1,622
(3,494
)
2,104
Adjusted EBITDA (Non-GAAP)
$
162,211
$
146,088
$
314,562
$
262,268
Amneal Pharmaceuticals,
Inc.
Non-GAAP
Reconciliations
(unaudited; in thousands,
except per share amounts)
Reconciliation of Net Income
(Loss) to Adjusted Net Income and Calculation of Adjusted Diluted
Earnings Per Share
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income (loss)
$
16,787
$
29,683
$
(64,891
)
$
19,589
Adjusted to add (deduct):
Non-cash interest
547
2,112
629
3,953
GAAP provision for (benefit from) income
taxes
3,618
(23
)
9,774
645
Amortization
38,818
39,309
77,489
78,920
Stock-based compensation expense
6,725
6,561
13,231
14,157
Acquisition, site closure expenses, and
idle facility
expenses (1)
579
1,579
1,023
4,280
Restructuring and other charges
131
82
1,584
493
Charges related to legal matters,
including interest, net (2)
699
2,725
95,185
7,607
Asset impairment charges
—
1,331
1,015
2,064
Change in fair value of contingent
consideration
—
(6,364
)
100
(3,907
)
Increase in tax receivable agreement
liability
13,444
405
15,392
1,231
System implementation expense (3)
855
1,641
1,772
2,413
Other
(2,180
)
1,620
(3,494
)
2,251
Provision for income taxes (4)
(17,800
)
(16,495
)
(32,141
)
(27,324
)
Net income attributable to non-controlling
interests not
associated with our Class B common
stock
(10,793
)
(7,292
)
(20,758
)
(12,687
)
Adjusted net income (Non-GAAP)
$
51,430
$
56,874
$
95,910
$
93,685
Weighted average diluted shares
outstanding (Non-GAAP) (5)
318,957
307,004
317,758
306,691
Adjusted diluted earnings per share
(Non-GAAP)
$
0.16
$
0.19
$
0.30
$
0.31
Amneal Pharmaceuticals, Inc. Non-GAAP
Reconciliations (unaudited)
Explanations for Reconciliations of Net
Income (Loss) to EBITDA and Adjusted EBITDA and Net Income (Loss)
to Adjusted Net Income and Calculation of Adjusted Diluted Earnings
per Share
(1)
Acquisition, site closure, and
idle facility expenses for the three and six months ended June 30,
2024 primarily included rent for vacated properties. Acquisition,
site closure, and idle facility expenses for the three and six
months ended June 30, 2023 primarily included site closure costs
associated with the planned cessation of manufacturing at our
Hauppauge, NY facility.
(2)
For the six months ended June 30,
2024, charges related to legal matters, net were primarily
associated with a settlement in principle on the primary financial
terms for a nationwide resolution to the opioids cases that have
been filed and that might have been filed against the Company by
political subdivisions and Native American tribes across the United
States.
(3)
System implementation expense for
the three and six months ended June 30, 2024 and 2023 was primarily
for the implementation of software to further integrate our
acquired businesses.
(4)
The non-GAAP effective tax rates
for the three and six months ended June 30, 2024 were 25.7% and
25.1%, respectively. The non-GAAP effective tax rates for the three
and six months ended June 30, 2023 were 22.5% and 22.6%,
respectively.
(5)
Weighted average diluted shares
outstanding for the three and six months ended June 30, 2024
consisted of fully diluted Class A common stock. Weighted average
diluted shares outstanding for the three and six months ended June
30, 2023 consisted of diluted Class A common stock and Class B
common stock, as if all shares of Class B common stock were
converted to Class A common stock as of January 1, 2023.
Amneal Pharmaceuticals,
Inc.
Generics Segment
Reconciliation of GAAP to
Non-GAAP Operating Results (1)
(unaudited; $ in
thousands)
Three Months Ended June 30,
2024
Three Months Ended June 30,
2023
As Reported
Adjustments
Non-GAAP
As Reported
Adjustments
Non-GAAP
Net revenue
$
427,328
$
—
$
427,328
$
373,701
$
—
$
373,701
Cost of goods sold (2)
260,903
(11,444
)
249,459
225,189
(13,404
)
211,785
Gross profit
166,425
11,444
177,869
148,512
13,404
161,916
Gross margin %
38.9
%
41.6
%
39.7
%
43.3
%
Selling, general and administrative
(3)
31,627
(1,591
)
30,036
28,040
(2,597
)
25,443
Research and development (4)
31,703
(584
)
31,119
31,108
(325
)
30,783
Intellectual property legal development
expenses
1,032
—
1,032
801
—
801
Restructuring and other charges
53
(53
)
—
—
—
—
Charges related to legal matters, net
699
(699
)
—
2,017
(2,017
)
—
Other operating income
—
—
—
13
—
13
Operating income
$
101,311
$
14,371
$
115,682
$
86,533
$
18,343
$
104,876
(1)
Operating results for the sale of
Amneal products by AvKARE were included in our Generics
segment.
(2)
Adjustments for the three months
ended June 30, 2024 and 2023, respectively, were comprised of
stock-based compensation expense ($0.9 million and $0.3 million),
amortization expense ($10.5 million and $10.8 million), site
closure and idle facility expenses (none and $1.0 million), and
asset impairment charges (none and $1.3 million).
(3)
Adjustments for the three months
ended June 30, 2024 and 2023, respectively, were comprised of
stock-based compensation expense ($1.0 million and $2.0 million)
and site closure costs ($0.6 million in each period).
(4)
Adjustments for the three months
ended June 30, 2024 and 2023 were comprised of stock-based
compensation expense.
Amneal Pharmaceuticals,
Inc.
Generics Segment
Reconciliation of GAAP to
Non-GAAP Operating Results (1)
(unaudited; $ in
thousands)
Six Months Ended June 30,
2024
Six Months Ended June 30,
2023
As Reported
Adjustments
Non-GAAP
As Reported
Adjustments
Non-GAAP
Net revenue
$
818,622
$
—
$
818,622
$
717,507
$
—
$
717,507
Cost of goods sold (2)
500,825
(23,712
)
477,113
455,740
(28,846
)
426,894
Gross profit
317,797
23,712
341,509
261,767
28,846
290,613
Gross margin %
38.8
%
41.7
%
36.5
%
40.5
%
Selling, general and administrative
(3)
64,712
(3,320
)
61,392
55,640
(3,876
)
51,764
Research and development (4)
66,074
(1,239
)
64,835
63,467
(1,268
)
62,199
Intellectual property legal development
expenses
1,992
—
1,992
2,425
—
2,425
Restructuring and other charges
53
(53
)
—
99
—
99
Charges (credit) related to legal matters,
net (5)
95,058
(95,058
)
—
(427
)
(4,073
)
(4,500
)
Other operating income
—
—
—
(1,211
)
—
(1,211
)
Operating income
$
89,908
$
123,382
$
213,290
$
141,774
$
38,063
$
179,837
(1)
Operating results for the sale of
Amneal products by AvKARE were included in our Generics
segment.
(2)
Adjustments for the six months
ended June 30, 2024 and 2023, respectively, were comprised of
stock-based compensation expense ($1.8 million and $2.0 million),
amortization expense ($20.9 million and $21.6 million), site
closure and idle facility expenses (none and $3.1 million), asset
impairment charges ($1.0 million and $2.0 million), and other (none
and $0.1 million).
(3)
Adjustments for the six months
ended June 30, 2024 and 2023, respectively, were comprised of
stock-based compensation expense ($2.3 million and $2.7 million)
and site closure costs ($1.0 million and $1.2 million).
(4)
Adjustments for the six months
ended June 30, 2024 and 2023 were comprised of stock-based
compensation expense.
(5)
Adjustments for the six months
ended June 30, 2024 were associated with a settlement in principle
on the primary financial terms for a nationwide resolution to the
opioids cases that have been filed and that might have been filed
against the Company by political subdivisions and Native American
tribes across the United States.
Amneal Pharmaceuticals,
Inc.
Specialty Segment
Reconciliation of GAAP to
Non-GAAP Operating Results
(unaudited; $ in
thousands)
Three Months Ended June 30,
2024
Three Months Ended June 30,
2023
As Reported
Adjustments
Non-GAAP
As Reported
Adjustments
Non-GAAP
Net revenue
$
104,041
$
—
$
104,041
$
96,994
$
—
$
96,994
Cost of goods sold (1)
46,142
(25,977
)
20,165
46,512
(25,844
)
20,668
Gross profit
57,899
25,977
83,876
50,482
25,844
76,326
Gross margin %
55.7
%
80.6
%
52.0
%
78.7
%
Selling, general and administrative
(2)
26,610
(317
)
26,293
22,759
(228
)
22,531
Research and development (2)
4,351
(259
)
4,092
6,691
(487
)
6,204
Intellectual property legal development
expenses
10
—
10
19
—
19
Restructuring and other charges
78
(78
)
—
82
(82
)
—
Change in fair value of contingent
consideration (3)
—
—
—
(6,364
)
6,364
—
Operating income
$
26,850
$
26,631
$
53,481
$
27,295
$
20,277
$
47,572
(1)
Adjustments for the three months ended June 30, 2024 and 2023
were comprised of amortization expense.
(2)
Adjustments for the three months ended June 30, 2024 and 2023
were comprised of stock-based compensation expense.
(3)
Contingent consideration was recorded in connection with the
acquisitions of (i) the baclofen franchise from certain entities
affiliated with Saol International Limited and (ii) Kashiv
Specialty Pharmaceuticals, LLC.
Amneal Pharmaceuticals,
Inc.
Specialty Segment
Reconciliation of GAAP to
Non-GAAP Operating Results
(unaudited; $ in
thousands)
Six Months Ended June 30,
2024
Six Months Ended June 30,
2023
As Reported
Adjustments
Non-GAAP
As Reported
Adjustments
Non-GAAP
Net revenue
$
209,275
$
—
$
209,275
$
188,672
$
—
$
188,672
Cost of goods sold (1)
90,942
(51,955
)
38,987
89,703
(52,027
)
37,676
Gross profit
118,333
51,955
170,288
98,969
52,027
150,996
Gross margin %
56.5
%
81.4
%
52.5
%
80.0
%
Selling, general and administrative
(2)
51,806
(588
)
51,218
45,138
(414
)
44,724
Research and development (2)
9,278
(543
)
8,735
13,022
(876
)
12,146
Intellectual property legal development
expenses
34
—
34
39
—
39
Restructuring and other charges
1,024
(1,024
)
—
82
(82
)
—
Change in fair value of contingent
consideration (3)
100
(100
)
—
(3,907
)
3,907
—
Operating income
$
56,091
$
54,210
$
110,301
$
44,595
$
49,492
$
94,087
(1)
Adjustments for the six months
ended June 30, 2024 and 2023 were comprised of amortization
expense.
(2)
Adjustments for the six months
ended June 30, 2024 and 2023 were comprised of stock-based
compensation expense.
(3)
Contingent consideration was
recorded in connection with the acquisitions of (i) the baclofen
franchise from certain entities affiliated with Saol International
Limited and (ii) Kashiv Specialty Pharmaceuticals, LLC.
Amneal Pharmaceuticals,
Inc.
AvKARE Segment
Reconciliation of GAAP to
Non-GAAP Operating Results (1)
(unaudited; $ in
thousands)
Three Months Ended June 30,
2024
Three Months Ended June 30,
2023
As Reported
Adjustments
Non-GAAP
As Reported
Adjustments
Non-GAAP
Net revenue
$
170,411
$
—
$
170,411
$
128,351
$
—
$
128,351
Cost of goods sold
144,788
—
144,788
107,324
—
107,324
Gross profit
25,623
—
25,623
21,027
—
21,027
Gross margin %
15.0
%
15.0
%
16.4
%
16.4
%
Selling, general and administrative
(2)
14,642
(3,546
)
11,096
14,015
(4,188
)
9,827
Operating income
$
10,981
$
3,546
$
14,527
$
7,012
$
4,188
$
11,200
(1)
Operating results for the sale of
Amneal products by AvKARE were included in our Generics
segment.
(2)
Adjustments for the three months
ended June 30, 2024 and 2023 were comprised of amortization
expense.
Amneal Pharmaceuticals,
Inc.
AvKARE Segment
Reconciliation of GAAP to
Non-GAAP Operating Results (1)
(unaudited; $ in
thousands)
Six Months Ended June 30,
2024
Six Months Ended June 30,
2023
As Reported
Adjustments
Non-GAAP
As Reported
Adjustments
Non-GAAP
Net revenue
$
333,074
$
—
$
333,074
$
250,407
$
—
$
250,407
Cost of goods sold
281,197
—
281,197
212,936
—
212,936
Gross profit
51,877
—
51,877
37,471
—
37,471
Gross margin %
15.6
%
15.6
%
15.0
%
15.0
%
Selling, general and administrative
(2)
29,549
(7,091
)
22,458
26,955
(7,952
)
19,003
Operating income
$
22,328
$
7,091
$
29,419
$
10,516
$
7,952
$
18,468
(1)
Operating results for the sale of
Amneal products by AvKARE were included in our Generics
segment.
(2)
Adjustments for the six months
ended June 30, 2024 and 2023, respectively, were comprised of
amortization expense ($7.1 million and $8.4 million) and other
(none and ($0.4) million).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240809079166/en/
Contact Anthony DiMeo VP, Investor Relations & Media
anthony.dimeo@amneal.com
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