United Therapeutics Corporation Reports 2011 Fourth Quarter and Annual Financial Results
"I am pleased that we met our annual revenue target for 2011, which highlighted our favorable operating results for the year," said
Total revenues for the quarter ended
(1) See definition of earnings before non-cash charges, a non-GAAP
financial measure, and a reconciliation of net income to earnings before
non-cash charges below.
Operating Results
Revenues
The table below summarizes the components of revenues (in thousands):
Three Months Ended Year Ended
December 31, December 31,
2011 2010 2011 2010
Cardiopulmonary products:
Remodulin $ 107,116 $ 101,879 $ 430,132 $ 403,598
Tyvaso 64,547 48,713 240,382 151,797
Adcirca 22,647 12,803 70,580 36,307
Other 868 294 2,089 1,197
Total revenues $ 195,178 $ 163,689 $ 743,183 $ 592,899 Revenues for the quarter ended
Expenses
The table below summarizes research and development expense by major project and non-project component (in thousands):
Three Months Ended Year Ended
December 31, December 31,
2011 2010 2011 2010
Project and non-project:
Cardiopulmonary $ 28,142 $ 31,908 $ 150,501 $ 86,161
Share-based compensation 9,687 19,774 (7,994) 45,878
Other 10,807 10,233 37,508 33,267
Total research and development
expense $ 48,636 $ 61,915 $ 180,015 $ 165,306 Cardiopulmonary. The decrease in cardiopulmonary project expenses of
Share-based compensation. The decrease in share-based compensation expense of
The table below summarizes selling, general and administrative expense by major category (in thousands):
Three Months Ended Year Ended
December 31, December 31,
2011 2010 2011 2010
Category:
General and administrative $ 26,608 $ 21,878 $ 97,785 $ 75,292
Sales and marketing 19,091 13,480 66,405 46,123
Share-based compensation 12,008 32,549 (7,708) 67,191
Total selling, general and
administrative expense $ 57,707 $ 67,907 $ 156,482 $ 188,606 General and administrative. The increase in general and administrative expenses of
Sales and marketing. The increase in sales and marketing expenses of
Share-based compensation. For the quarter ended
Income Taxes
The provision for income taxes was
2012 and 2013 Revenue Guidance
We reaffirm our 2012 and 2013 full-year revenue guidance, as we continue to expect revenues to fall within a range of 5% above or below
This forward-looking guidance is inherently subject to variability; consequently, we anticipate reaffirming or updating our expectation for 2012 when we present our quarterly results during 2012.
Discontinued Operations
Results for the quarters and years ended
Earnings Before Non-Cash Charges
Earnings before non-cash charges is defined as net income, adjusted for the following
non-cash charges, as applicable: (1) interest; (2) income taxes; (3) license fees; (4)
depreciation and amortization; (5) impairment charges; and (6) share-based compensation
(stock option and share tracking award expense).
A reconciliation of net income (loss) to earnings before non-cash charges is presented
below (in thousands, except per share data):
Three Months
Year Ended December 31, Ended December 31,
2011 2010 2009 2008 2011 2010
Net income
(loss), as
reported $ 217,868 $ 105,916 $ 19,462 $ (49,327) $ 43,189 $ 9,544
Add
(subtract)
non-cash
charges:
Interest
expense 21,372 19,714 12,875 11,439 5,112 5,459
Income tax
expense
(benefit) 82,183 41,923 (695) (34,394) 16,800 (5,040)
License fees 37,049 (1) — — 150,000 (2) (4,283) —
Depreciation
and
amortization 20,535 17,919 11,394 4,536 4,898 3,739
Impairment
charges — 7,688 5,457 1,605 (250) 6,178
Share-based
compensation
(benefit)
expense (15,715) 113,942 100,810 36,393 22,075 52,815
Earnings
before
non-cash
charges $ 363,292 $ 307,102 $ 149,303 $ 120,252 $ 87,541 $ 72,695
Earnings
before
non-cash
charges per
share:
Basic $ 6.36 $ 5.47 $ 2.80 $ 2.63 $ 1.61 $ 1.27
Diluted $ 6.12 $ 5.16 $ 2.66 $ 2.41 $ 1.56 $ 1.18
Weighted
average
number of
common
shares
outstanding:
Basic 57,163 56,142 53,314 45,802 54,424 57,187
Diluted 59,395 59,516 56,133 49,900 55,952 61,715
(1) Includes the non-cash portion of a charge to research and development expense
recognized in connection with our July
2011 amended license agreement with Toray Industries, Inc.
(2) During the year ended December 31, 2008 , we paid Eli Lilly and Company (Lilly) $150.0
million in fees as part of our
licensing arrangement for Adcirca and recognized a corresponding charge to research and
development expense. Under this
arrangement, we also issued approximately 6.3 million shares of our common stock to Lilly
for $150.0 million . As there
was no net impact on our cash flows associated with these transactions, we have presented
the payment as a non-cash
adjustment to net loss.
Conference Call
We will host a half-hour teleconference on
This teleconference is also being webcast and can be accessed via our website at http://ir.unither.com/events.cfm.
About
Non-GAAP Financial Information
This press release contains a financial measure, earnings before non-cash charges, that does not comply with
We use earnings before non-cash charges to assist us in: (1) planning, including the preparation of our annual operating budget; (2) allocating resources to enhance the financial performance of our business; (3) evaluating the effectiveness of our operational strategies; and (4) evaluating our capacity to fund capital expenditures and expand our business. We believe this non-GAAP financial measure enhances investors' understanding of our financial results by excluding certain expenses that we do not consider when evaluating and comparing the performance of our core operations and making operating decisions. In addition, we have historically reported earnings before non-cash charges to investors, and believe the inclusion of this non-GAAP financial measure provides investors with a consistent method of comparison to historical periods. However, there are limitations in the use of this non-GAAP financial measure in that it excludes certain operating expenses that are recurring in nature. In addition, our calculation of this non-GAAP financial measure may differ from the methodology used by other companies. The presentation of this non-GAAP financial measure should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of net income, the most directly comparable GAAP financial measure, to earnings before non-cash charges can be found in the table above under the heading, Earnings Before Non-Cash Charges.
Forward-looking Statements
Statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, among others, our forecasted revenues for 2012 and 2013 for our existing commercial product portfolio. These forward-looking statements are subject to certain risks and uncertainties, such as those described in our periodic reports filed with the
Remodulin and Tyvaso are registered trademarks of
Adcirca is a registered trademark of Eli Lilly and Company.
UNITED THERAPEUTICS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months Ended December 31, Year Ended December 31, 2011 2010 2011 2010 Revenues: Net product sales$ 194,310 $ 163,395 $ 741,094 $ 591,702 Other 868 294 2,089 1,197 Total revenue 195,178 163,689 743,183 592,899 Operating expenses: Research and development 48,636 61,915 180,015 165,306 Selling, general and administrative 57,707 67,907 156,482 188,606 Cost of product sales 25,327 18,534 88,904 67,674 Total operating expenses 131,670 148,356 425,401 421,586 Operating income 63,508 15,333 317,782 171,313 Other (expense) income: Interest income 929 629 3,450 2,939 Interest expense (5,112) (5,455) (21,367) (19,710) Equity loss in affiliate (9) (30) (119) (160) Other, net 673 314 (629) 769 Total other (expense) income, net (3,519) (4,542) (18,665) (16,162) Income from continuing operations before income taxes 59,989 10,791 299,117 155,151 Income tax (expense) benefit (16,800) 3,307 (81,874) (43,945) Income from continuing operations 43,189 14,098 217,243 111,206 Discontinued operations (Loss) income from discontinued operations, net of tax — (4,554) 7 (5,290) Gain on disposal of discontinued operations, net of tax — — 618 — (Loss) income from discontinued operations — (4,554) 625 (5,290) Net income$ 43,189 $ 9,544 $ 217,868 $ 105,916 Net income per common share: Basic Continuing operations$ 0.79 $ 0.25 $ 3.80 $ 1.98 Discontinued operations — (0.08) 0.01 (0.09) Net income per basic common share$ 0.79 $ 0.17 $ 3.81 $ 1.89 Diluted Continuing operations$ 0.77 $ 0.23 $ 3.66 $ 1.87 Discontinued operations — (0.08) 0.01 (0.09) Net income per diluted common share$ 0.77 $ 0.15 $ 3.67 $ 1.78 Weighted average number of common shares outstanding: Basic 54,424 57,187 57,163 56,142 Diluted 55,952 61,715 59,395 59,516
SELECTED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
December 31,
2011 2010
Cash, cash equivalents and marketable securities
(excluding restricted amounts of $5,123 and $5,122 ,
respectively) $ 747,378 $ 759,932
Total assets 1,518,079 1,431,635
Total liabilities and common stock subject to repurchase 569,591 547,749
Total stockholders' equity 948,488 883,886
SOURCE
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