United Therapeutics Corporation Reports First Quarter 2012 Financial Results
"I am pleased with our strong first quarter results," remarked
Total revenues for the quarter ended
Financial Results for the Three Months Ended
Revenues
The table below summarizes the components of net revenues (dollars in thousands):
Three Months Ended
March 31, Percentage
Change
2012 2011
Cardiopulmonary products:
Remodulin $ 110,546 $ 103,205 7.1 %
Tyvaso 70,067 47,695 46.9 %
Adcirca 22,330 11,318 97.3 %
Other 1,271 294 332.3 %
Total net revenues $ 204,214 $ 162,512 25.7 %
Revenues for the quarter ended
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(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.
Expenses
The table below summarizes research and development expense by major project and non-project components (dollars in thousands):
Three Months Ended
March 31, Percentage
Change
2012 2011
Project and non-project component:
Cardiopulmonary $ 25,577 $ 23,744 7.7 %
Share-based compensation (1,078) 14,841 (107.3) %
Other 9,158 9,122 0.4 %
Total research and development expense $ 33,657 $ 47,707 (29.5) %
Share-based compensation. The decrease in share-based compensation for the quarter ended
The table below summarizes selling, general and administrative expense by major categories (dollars in thousands):
Three Months Ended
March 31, Percentage
Change
2012 2011
Category:
General and administrative $ 21,624 $ 21,937 (1.4) %
Sales and marketing 17,067 14,420 18.4 %
Share-based compensation 1,098 21,906 (95.0) %
Total selling, general and administrative $ 39,789 $ 58,263 (31.7) %
expense
Sales and marketing. The increase in sales and marketing expense for the quarter ended
Share-based compensation. The decrease in share-based compensation for the quarter ended
Income Taxes
The provision for income taxes was
2012 Revenue Guidance
We reaffirm our 2012 full-year revenue guidance for our three commercial products (Remodulin, Tyvaso and Adcirca), as we continue to expect related revenues to fall within a range of 5% above or below
Note Regarding Discontinued Operations
For the quarter 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 to earnings before non-cash charges is presented below (in thousands, except per share data):
Three Months Ended
March 31,
2012 2011
Net income, as reported $ 70,760 $ 16,390
Adjust for non-cash charges:
Interest expense 3,886 5,413
Income tax expense 33,176 10,436
License fees — —
Depreciation and amortization 6,648 5,809
Impairment charges — 5,814 (1)
Share-based compensation (24) 36,856
Earnings before non-cash charges $ 114,446 $ 80,718
Earnings before non-cash charges per share:
Basic $ 2.13 $ 1.40
Diluted $ 2.08 $ 1.29
Weighted average number of common shares outstanding:
Basic 53,631 57,753
Diluted 55,009 62,623
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(1) Includes a
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 expectations about future operating results, including our revenue guidance for 2012 and 2013. 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 March 31, 2012 2011 (Unaudited) Revenues: Net product sales$ 202,943 $ 162,218 Other 1,271 294 Total revenues 204,214 162,512 Operating expenses: Research and development 33,657 47,707 Selling, general and administrative 39,789 58,263 Cost of product sales 24,031 19,739 Total operating expenses 97,477 125,709 Operating income 106,737 36,803 Other (expense) income: Interest income 1,033 666 Interest expense (3,886) (5,410) Equity loss in affiliate (20) (37) Other, net 72 41 Total other (expense) income, net (2,801) (4,740) Income from continuing operations before income taxes 103,936 32,063 Income tax expense (33,176) (12,446) Income from continuing operations 70,760 19,617 Discontinued operations: Income from discontinued operations, net of tax — 29 Loss on disposal of discontinued operations, net of tax — (3,256) Income (loss) from discontinued operations — (3,227) Net income$ 70,760 $ 16,390 Net income per common share: Basic Continuing operations$ 1.32 $ 0.34 Discontinued operations$ 0.00 $ (0.06) Net income per basic common share$ 1.32 $ 0.28 Diluted Continuing operations$ 1.29 $ 0.31 Discontinued operations$ 0.00 $ (0.05) Net income per diluted common share$ 1.29 $ 0.26 Weighted average number of common shares outstanding: Basic 53,631 57,753 Diluted 55,009 62,623
SELECTED CONSOLIDATED BALANCE SHEET DATAMarch 31, 2012 (Unaudited, in thousands) Cash, cash equivalents and marketable securities (excluding$ 745,927 restricted amounts of$5.4 million ) Total assets 1,561,435 Total liabilities and common stock subject to repurchase 536,786 Total stockholders' equity 1,024,649
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