United Therapeutics Corporation Reports Third Quarter 2014 Financial Results
"We are pleased with our overall core operating results for the third quarter," said
Total revenues for the quarter ended
________________________
(1) See definition of non-GAAP earnings, a non-GAAP financial measure, and a reconciliation of net income to non-GAAP earnings below.
Financial Results for the Three Months Ended
Revenues
The table below summarizes the components of net revenues (dollars in thousands):
Three Months Ended | Percentage Change | ||||||
2014 | 2013 | ||||||
Cardiopulmonary products: | |||||||
Remodulin | $ | 142,877 | $ | 132,322 | 8.0% | ||
Tyvaso | 119,685 | 120,306 | (0.5)% | ||||
Adcirca | 51,247 | 47,378 | 8.2% | ||||
Orenitram | 14,460 | — | 100.0% | ||||
Other | 1,681 | 2,219 | (24.2)% | ||||
Total net revenues | $ | 329,950 | $ | 302,225 | 9.2% |
Revenues for the quarter ended
Expenses
The table below summarizes research and development expense by major project and non-project components (dollars in thousands):
Three Months Ended | Percentage Change | ||||||
2014 | 2013 | ||||||
Project and non-project component: | |||||||
Cardiopulmonary | $ | 28,423 | $ | 28,777 | (1.2)% | ||
Share-based compensation expense | 82,513 | 30,551 | 170.1% | ||||
Other | 7,940 | 13,421 | (40.8)% | ||||
Total research and development expense | $ | 118,876 | $ | 72,749 | 63.4% | ||
Share-based compensation. The increase in share-based compensation of
Other. The decrease in other research and development expenses of
The table below summarizes selling, general and administrative expense by major categories (dollars in thousands):
Three Months Ended | Percentage Change | ||||||
2014 | 2013 | ||||||
Category: | |||||||
General and administrative | $ | 53,781 | $ | 33,253 | 61.7% | ||
Sales and marketing | 19,719 | 18,101 | 8.9% | ||||
Share-based compensation expense | 129,007 | 42,757 | 201.7% | ||||
Total selling, general and administrative expense | $ | 202,507 | $ | 94,111 | 115.2% |
General and administrative. The increase in general and administrative expense of
Share-based compensation. The increase in share-based compensation of
Income Taxes
The provision for income taxes was a
Non-GAAP Earnings
Non-GAAP earnings is defined as net income, adjusted for the following charges, as applicable: (1) interest; (2) 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):
Three Months Ended | |||||||
2014 | 2013 | ||||||
Net (loss) income, as reported | $ | (25,237) | $ | 62,685 | |||
Adjust for the following charges: | |||||||
Interest expense | 4,709 | 4,540 | |||||
License fees | — | — | |||||
Depreciation and amortization | 8,107 | 7,661 | |||||
Impairment charges | — | — | |||||
Share-based compensation expense | 220,326 | 74,385 | |||||
Non-GAAP earnings | $ | 207,905 | $ | 149,271 | |||
Non-GAAP earnings per share: | |||||||
Basic | $ | 4.40 | $ | 2.98 | |||
Diluted | $ | 3.91 | $ | 2.78 | |||
Weighted average number of common shares outstanding: | |||||||
Basic | 47,297 | 50,014 | |||||
Diluted | 53,208 | 53,688 | |||||
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About
Non-GAAP Financial Information
This press release contains a financial measure, non-GAAP earnings, that does not comply with
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 continued increases in the number of patients using our therapies and our expectations regarding Orenitram's potential. These forward-looking statements are subject to certain risks and uncertainties, such as those described in our periodic reports filed with the
Orenitram, 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 | Nine Months Ended | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
Revenues: | ||||||||||||||
Net product sales | $ | 328,269 | $ | 300,006 | $ | 934,152 | $ | 820,647 | ||||||
Other | 1,681 | 2,219 | 8,004 | 7,320 | ||||||||||
Total revenues | 329,950 | 302,225 | 942,156 | 827,967 | ||||||||||
Operating expenses: | ||||||||||||||
Research and development | 118,876 | 72,749 | 171,067 | 177,796 | ||||||||||
Selling, general and administrative | 202,507 | 94,111 | 300,753 | 236,832 | ||||||||||
Cost of product sales | 40,803 | 30,716 | 110,113 | 92,349 | ||||||||||
Total operating expenses | 362,186 | 197,576 | 581,933 | 506,977 | ||||||||||
Operating (loss) income | (32,236) | 104,649 | 360,223 | 320,990 | ||||||||||
Other (expense) income: | ||||||||||||||
Interest expense | (4,709) | (4,540) | (14,065) | (13,496) | ||||||||||
Other, net | 1,112 | 1,070 | 4,258 | 3,039 | ||||||||||
Total other (expense) income, net | (3,597) | (3,470) | (9,807) | (10,457) | ||||||||||
(Loss) income before income taxes | (35,833) | 101,179 | 350,416 | 310,533 | ||||||||||
Income tax benefit (expense) | 10,596 | (38,494) | (126,277) | (105,659) | ||||||||||
Net (loss) income | $ | (25,237) | $ | 62,685 | $ | 224,139 | $ | 204,874 | ||||||
Net (loss) income per common share: | ||||||||||||||
Basic | $ | (0.53) | $ | 1.25 | $ | 4.63 | $ | 4.10 | ||||||
Diluted | $ | (0.53) | $ | 1.17 | $ | 4.12 | $ | 3.90 | ||||||
Weighted average number of common shares outstanding: | ||||||||||||||
Basic | 47,297 | 50,014 | 48,427 | 50,007 | ||||||||||
Diluted | 47,297 | 53,688 | 54,360 | 52,570 |
SELECTED CONSOLIDATED BALANCE SHEET DATA | ||
(Unaudited, in billions) | ||
Cash, cash equivalents and marketable securities (excluding restricted amounts) | $ | 0.97 |
Total assets | 2.07 | |
Total liabilities and temporary equity | 0.89 | |
Total stockholders' equity | 1.18 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/united-therapeutics-corporation-reports-third-quarter-2014-financial-results-448347616.html
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