United Therapeutics Corporation Reports 2013 Fourth Quarter And Annual Financial Results
- Total Annual Revenues of
$1.1 billion - Annual Earnings per Share of
$3.49 per Basic Share or$3.28 per Diluted Share - Annual Non-GAAP Earnings of
$10.88 per Basic Share or$10.23 per Diluted Share
"
Total revenues for the quarter ended December 31, 2013 were
________________________
(1) See definition of non-GAAP earnings, a non-GAAP financial measure, and a reconciliation of net income to non-GAAP earnings below.
Operating Results
Revenues
The table below summarizes the components of revenues (in thousands):
Three Months Ended | Year Ended | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Cardiopulmonary products: | |||||||||||||||
Remodulin | $ | 119,865 | $ | 116,214 | $ | 491,179 | $ | 457,969 | |||||||
Tyvaso | 114,385 | 86,036 | 438,793 | 325,614 | |||||||||||
Adcirca | 52,047 | 38,182 | 176,972 | 122,540 | |||||||||||
Other | 2,720 | 3,385 | 10,040 | 9,953 | |||||||||||
Total revenues | $ | 289,017 | $ | 243,817 | $ | 1,116,984 | $ | 916,076 |
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 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Project and non-project: | |||||||||||||||
Cardiopulmonary | $ | 32,242 | $ | 30,892 | $ | 116,137 | $ | 122,350 | |||||||
Share-based compensation expense (benefit) | 76,422 | (3,722) | 134,706 | 11,237 | |||||||||||
Other | 12,888 | 10,306 | 48,505 | 39,800 | |||||||||||
Total research and development expense | $ | 121,552 | $ | 37,476 | $ | 299,348 | $ | 173,387 |
Share-based compensation. The
The table below summarizes selling, general and administrative expense by major category (in thousands):
Three Months Ended | Year Ended | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Category: | |||||||||||||||
General and administrative | $ | 38,112 | $ | 31,118 | $ | 140,235 | $ | 116,899 | |||||||
Sales and marketing | 21,038 | 15,788 | 73,871 | 67,220 | |||||||||||
Share-based compensation expense (benefit) | 98,028 | (6,833) | 179,904 | 17,627 | |||||||||||
Total selling, general and administrative expense | $ | 157,178 | $ | 40,073 | $ | 394,010 | $ | 201,746 |
General and administrative. The
Sales and marketing. The
Share-based compensation. The
Non-GAAP Earnings
Non-GAAP earnings is defined as net income, adjusted for the following non-cash charges, as applicable: (1) interest; (2) non-cash license fees; (3) depreciation and amortization; (4) impairment charges; and (5) share-based compensation (stock option, share tracking award and employee stock purchase plan expense).
A reconciliation of net income to non-GAAP earnings is presented below (in thousands, except per share data):
Year Ended | Three Months Ended | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2013 | 2012 | ||||||||||||||||||
Net income (loss), as reported | $ | 174,560 | $ | 304,442 | $ | 217,868 | $ | 105,916 | $ | (30,314) | $ | 83,255 | |||||||||||
Add (subtract) non-cash charges | |||||||||||||||||||||||
Interest expense | 18,058 | 16,639 | 21,372 | 19,714 | 4,562 | 4,490 | |||||||||||||||||
Non-cash license fees | — | — | 37,049 | — | — | — | |||||||||||||||||
Depreciation and amortization | 31,259 | 27,145 | 20,535 | 17,919 | 7,753 | 7,290 | |||||||||||||||||
Impairment charges | — | 4,839 | — | 7,688 | — | — | |||||||||||||||||
Share-based compensation | 320,786 | 30,115 | (15,715) | 113,942 | 178,202 | (10,453) | |||||||||||||||||
Non-GAAP earnings | $ | 544,663 | $ | 383,180 | $ | 281,109 | $ | 265,179 | $ | 160,203 | $ | 84,582 | |||||||||||
Non-GAAP earnings per share: | |||||||||||||||||||||||
Basic | $ | 10.88 | $ | 7.36 | $ | 4.92 | $ | 4.72 | $ | 3.19 | $ | 1.67 | |||||||||||
Diluted | $ | 10.23 | $ | 7.19 | $ | 4.73 | $ | 4.46 | $ | 2.88 | $ | 1.62 | |||||||||||
Weighted average number of | |||||||||||||||||||||||
Basic | 50,076 | 52,093 | 57,163 | 56,142 | 50,281 | 50,503 | |||||||||||||||||
Diluted | 53,231 | 53,280 | 59,395 | 59,516 | 55,648 | 52,133 | |||||||||||||||||
Conference Call
We will host a half-hour teleconference on Tuesday, February 25, 2014, at 9:00 a.m. Eastern Time. The teleconference is accessible by dialing 1-877-351-5881, with international callers dialing 1-970-315-0533. A rebroadcast of the teleconference will be available for one week by dialing 1-855-859-2056, with international callers dialing 1-404-537-3406 and using access code 58833697.
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, non-GAAP earnings, that does not comply with generally accepted accounting principles in
We use non-GAAP earnings to assist us in: (1) planning, including the preparation of our annual operating budget; (2) allocating resources in an effort to enhance the financial performance of our business; (3) evaluating the effectiveness of our operational strategies; and (4) assessing our capacity to fund capital expenditures and expand our business. We believe this non-GAAP financial measure improves 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. 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 non-GAAP earnings can be found in the table above under the heading, Non-GAAP Earnings.
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 the growing demand for our products, the impact of the
Orenitram is a trademark, and Remodulin and Tyvaso are registered trademarks, of
Adcirca is a registered trademark of Eli Lilly and Company.
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues: | |||||||||||||||
Net product sales | $ | 286,297 | $ | 240,431 | $ | 1,106,944 | $ | 906,123 | |||||||
Other | 2,720 | 3,386 | 10,040 | 9,953 | |||||||||||
Total revenue | 289,017 | 243,817 | 1,116,984 | 916,076 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 121,552 | 37,476 | 299,348 | 173,387 | |||||||||||
Selling, general and administrative | 157,178 | 40,073 | 394,010 | 201,746 | |||||||||||
Cost of product sales | 38,778 | 37,665 | 131,127 | 119,297 | |||||||||||
Total operating expenses | 317,508 | 115,214 | 824,485 | 494,430 | |||||||||||
Operating (loss) income | (28,491) | 128,603 | 292,499 | 421,646 | |||||||||||
Other (expense) income: | |||||||||||||||
Interest income | 1,111 | 716 | 3,827 | 3,941 | |||||||||||
Interest expense | (4,562) | (4,490) | (18,058) | (16,639) | |||||||||||
Other, net | 312 | 123 | 635 | 31,723 | |||||||||||
Total other (expense) income, net | (3,139) | (3,651) | (13,596) | 19,025 | |||||||||||
(Losses) earnings before income taxes | (31,630) | 124,952 | 278,903 | 440,671 | |||||||||||
Income tax benefit (expense) | 1,316 | (41,697) | (104,343) | (136,229) | |||||||||||
Net (loss) income | $ | (30,314) | $ | 83,255 | $ | 174,560 | $ | 304,442 | |||||||
Net (loss) income per common share: | |||||||||||||||
Basic | $ | (0.60) | $ | 1.65 | $ | 3.49 | $ | 5.84 | |||||||
Diluted | $ | (0.60) | $ | 1.60 | $ | 3.28 | $ | 5.71 | |||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 50,281 | 50,503 | 50,076 | 52,093 | |||||||||||
Diluted | 50,281 | 52,133 | 53,231 | 53,280 |
SELECTED CONSOLIDATED BALANCE SHEET DATA | |||||||
(In millions) | |||||||
2013 | 2012 | ||||||
Cash, cash equivalents and marketable securities (excluding restricted amounts of | $ | 1,136.7 | $ | 784.9 | |||
Total assets | 2,087.6 | 1,626.6 | |||||
Total liabilities and temporary equity | 828.3 | 542.6 | |||||
Total stockholders' equity | 1,259.3 | 1,084.0 |
SOURCE