LAVAL, Quebec, Aug. 8, 2017 /PRNewswire/ --
- Second-Quarter 2017 Financial Results
-
- Revenues of $2.233
Billion
- GAAP Net Loss of $38
Million
- Adjusted Net Income (non-GAAP) of $362 Million
- Year-to-Date GAAP Cash Flow from Operations of $1.222 Billion
- Adjusted EBITDA (non-GAAP) Sequential Increase of 10% to
$951 Million
- Delivered Strong Organic
Growth1 (non-GAAP) in Bausch +
Lomb/International Segment and Salix Business
- Expects to Exceed $5 Billion
Debt Reduction Commitment Early
- Updates 2017 Full-Year Revenue Guidance Range and Maintains
2017 Full-Year Adjusted EBITDA (non-GAAP) Guidance
Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX:
VRX) ("Valeant" or the "Company" or "we") today announced its
second-quarter 2017 financial results.
"The investments we are making in our core business are
delivering results," said Joseph C.
Papa, chairman and chief executive officer, Valeant. "The
Bausch + Lomb/International segment and Salix business, which
together represented 73 percent of our revenue in the quarter,
delivered strong organic growth1, and we are continuing
to reduce debt and resolve legacy issues."
"Additionally, we confirm that we are maintaining our 2017
full-year Adjusted EBITDA guidance range despite the impact of
divestitures we've made this year," added Mr. Papa.
Company Highlights
Strengthening the Balance Sheet
- Completed sale of Dendreon Pharmaceuticals LLC and used net
proceeds to pay down $811 million of
senior secured term loans
- Announced that Valeant will redeem the remaining $500 million aggregate principal amount of our
outstanding 6.75% Senior Notes due 2018, using cash on hand, on
Aug. 15, 2017. Upon redemption, the
Company expects to:
-
- Have reduced total debt by more than $4.8 billion since the end of the first quarter
of 2016
- Have no debt maturities and no mandatory amortization
requirements until 2020
- Announced agreements to sell iNova Pharmaceuticals and Obagi
Medical Products businesses for $930
million and $190 million in
cash, respectively; both remain on track to close in the second
half of 2017
- Generated $268 million and
$1.222 billion in cash flow from
operations in the second quarter and for the six months that ended
June 30, 2017, respectively
- Delivered GAAP net loss of $38
million and Adjusted EBITDA (non-GAAP) of $951 million
- Achieving positive outcomes in resolving and managing
litigation and investigations, including settling the Salix
securities class action litigation
- Expects to exceed commitment to pay down $5 billion in debt from divestiture proceeds and
free cash flow before February
2018
Executing on Core Businesses
- Grew revenue in the Salix business by 13% compared to the
second quarter of 2016 and organically grew1 revenue in
the Salix business by 16% compared to the second quarter of
2016
-
- XIFAXAN® (rifaximin) revenues rose by 16% compared to the
second quarter of 2016
- Strong XIFAXAN® growth, with prescriptions up 6% sequentially
and 2% versus the second quarter of 2016, and extended Rx unit
volume up 4% versus second quarter of 2016
- APRISO® (mesalamine) prescriptions grew by 7% compared to the
second quarter of 2016
- RELISTOR® (methylnaltrexone bromide) prescriptions grew by 33%
compared to the second quarter of 2016
- Revenue of the Bausch + Lomb/International segment decreased by
3% compared to the second quarter of 2016; however, the segment
revenue increased organically1 by approximately 6%
compared to the second quarter of 2016
-
- Grew revenue in the Bausch + Lomb business in China by 4% compared to the second quarter of
2016 despite currency headwinds and organically grew1
revenue in this business by 9%, compared to the second quarter of
2016, driven by volume
- Advanced Bausch + Lomb business
-
- Introduced Bausch + Lomb AQUALOX® bi-weekly contact lenses in
Japan in June
- Introduced Bausch + Lomb renu® Advanced Formula multi-purpose
contact lens solution
- Received filing acceptance from the U.S. Food and Drug
Administration (FDA) for the New Drug Application (NDA) for
Luminesse™2 (brimonidine tartrate ophthalmic solution,
0.025%) with a PDUFA action date of Dec. 27,
2017
- Received FDA 510(k) clearances for Vitesse™ and Stellaris
Elite™ Vision Enhancement System
- Continued to focus on stabilizing the dermatology business
-
- Launched SILIQ™ (brodalumab) injection in July as the
lowest-priced injectable biologic for moderate-to-severe plaque
psoriasis in the United
States
- Rebranded the business as Ortho Dermatologics in July
- Received FDA filing acceptance for the NDA for
PLENVU®2 (NER1006), a novel, low volume polyethylene
glycol-based bowel preparation for colonoscopies
Second-Quarter Revenue Performance
Total revenues were
$2.233 billion for the second quarter
of 2017, as compared to $2.420
billion in the second quarter of 2016, a decrease of
$187 million, or 8%. The decrease was
primarily driven by decreases in volume and price in our
U.S. Diversified Products segment, attributed to the previously
reported loss of exclusivity for a basket of products, and the
dermatology business. The decline also reflects the unfavorable
impact of divestitures and discontinuations, primarily the skincare
divestiture within the Bausch + Lomb/International
segment.3
Revenues by segment for the second quarter of 2017 were as
follows:
$ in
millions
|
2017
|
2016
|
Reported
Change
|
Reported
Change
|
Change at
Constant
Currency4
|
Organic
Growth1
|
Segment
|
|
|
|
|
|
|
Bausch +
Lomb/International
|
$1,241
|
$1,277
|
$(36)
|
(3%)
|
1%
|
6%
|
Branded Rx
|
$636
|
$653
|
$(17)
|
(3%)
|
(3%)
|
0%
|
U.S. Diversified
Products
|
$356
|
$490
|
$(134)
|
(27%)
|
(27%)
|
(27%)
|
Total
Revenues
|
$2,233
|
$2,420
|
$(187)
|
(8%)
|
(5%)
|
(3%)
|
Bausch + Lomb/International Segment
The Bausch +
Lomb/International segment revenues were $1.241 billion for the second quarter of 2017, as
compared to $1.277 billion for second
quarter of 2016, a decrease of $36
million, or 3%. Excluding the impact of the skincare
divestiture and foreign exchange, the Bausch + Lomb/International
segment organically grew1 by approximately 6% compared
to the second quarter of 2016, driven by performance in
China, Europe and Africa/Middle
East and the Global Ophthalmology business.
Branded Rx Segment
The Branded Rx segment
revenues were $636 million for the
second quarter of 2017, as compared to $653
million for second quarter of 2016, a decrease of
$17 million, or 3%. The decrease in
sales primarily was due to lower volumes in the dermatology
business and the impact of divestitures and discontinuations in the
Salix business. The decline was largely offset by 13% revenue
growth in the Salix business compared to the second quarter of
2016, despite the impact of the divestiture of Ruconest, and
organic growth1 in the Salix business of 16% compared to
the second quarter of 2016.
U.S. Diversified Products Segment
The U.S.
Diversified Products segment revenues were $356 million for the second quarter of 2017, as
compared to $490 million for second
quarter of 2016, a decrease of $134
million, or 27%. The decline was primarily driven by
decreases in volume and price attributed to the previously reported
loss of exclusivity for a basket of products.
Operating Income
Operating income was $175 million for the second quarter of 2017 as
compared to $81 million for the
second quarter of 2016, an increase of $94
million. The increase in operating income primarily reflects
lower asset impairments and amortization charges partially offset
by a decrease in contribution margin as a result of the decline in
product sales from existing businesses.
Net loss for the three months ended June
30, 2017 was $38 million, as
compared to $302 million for the same
period in 2016, an improvement of $264
million. The decrease in net loss primarily reflects the
increase in recovery for income taxes, increase in operating income
and the net change in foreign exchange.
Cash provided by operating activities was $268 million for the second quarter of 2017. Cash
flows from operations were negatively affected by $190 million of net payments made in resolution
of the Salix securities class action litigation.5
Excluding these payments, the Company generated a normalized cash
flow of $458 million.
GAAP Earnings Per Share (EPS) Diluted – for the second quarter
of 2017 came in at $(0.11) as
compared to $(0.88) in the second
quarter of 2016.
Adjusted EBITDA (non-GAAP)
Adjusted EBITDA
(non-GAAP) was $951 million
for the second quarter of 2017, as compared to $1.087 billion for the second quarter of 2016, a
decrease of $136 million, primarily
due to lower revenues attributed to the previously reported loss of
exclusivity for a basket of products, divestitures and
discontinuations, and declines in our dermatology business,
partially offset by strong organic growth1 in the Bausch
+ Lomb/International segment and the Salix business. Adjusted
EBITDA grew by 10% sequentially versus the prior quarter.
2017 Guidance
Valeant has updated guidance for 2017,
as follows:
- Full-Year Revenues in the range of $8.70 - $8.90 billion from $8.90 - $9.10 billion
The Company confirms we will maintain our full-year Adjusted
EBITDA (non-GAAP) guidance range of $3.60 -
$3.75 billion despite the impact of divestitures that have
closed in 2017.
This updated guidance reflects the impact of the sale of the
CeraVe®, AcneFree™ and AMBI® skincare brands and the sale of
Dendreon Pharmaceuticals LLC. This guidance does not reflect the
impact of the sales of the iNova Pharmaceuticals and Obagi Medical
Products businesses, which are both expected to close in the second
half of the year.
Other than with respect to GAAP Revenues, the Company only
provides guidance on a non-GAAP basis. The Company does not provide
a reconciliation of forward-looking Adjusted EBITDA (non-GAAP) to
GAAP net income (loss), due to the inherent difficulty in
forecasting and quantifying certain amounts that are necessary for
such reconciliation. In periods where significant acquisitions or
divestitures are not expected, the Company believes it might have a
basis for forecasting the GAAP equivalent for certain costs, such
as amortization, which would otherwise be treated as non-GAAP to
calculate projected GAAP net income (loss). However, because other
deductions (such as restructuring, gain or loss on extinguishment
of debt and litigation and other matters) used to calculate
projected net income (loss) vary dramatically based on actual
events, the Company is not able to forecast on a GAAP basis with
reasonable certainty all deductions needed in order to provide a
GAAP calculation of projected net income (loss) at this time. The
amount of these deductions may be material and, therefore, could
result in projected GAAP net income (loss) being materially less
than projected Adjusted EBITDA (non-GAAP).
Additional Highlights
- Valeant's cash, cash equivalents and restricted cash were
$2.025 billion at June 30, 2017
- The Company's availability under the Revolving Credit Facility
was approximately $930 million at
June 30, 2017
- Valeant's corporate credit ratings remained unchanged during
the second quarter of 2017
- John Paulson, president of
Paulson & Co., Inc., a New
York-based investment firm, joined the Company's Board of
Directors
Conference Call Details
Date:
|
Tuesday, Aug. 8,
2017
|
Time:
|
8:00 a.m.
EDT
|
Webcast:
|
http://ir.valeant.com/events-and-presentations
|
Participant Event
Dial-in:
|
(877) 876-8393 (North
America)
|
|
(443) 961-0178
(International)
|
Participant
Passcode:
|
35736021
|
Replay
Dial-in:
|
(855) 859-2056 (North
America)
|
|
(404) 537-3406
(International)
|
Replay
Passcode:
|
31833 (replay
available until Oct. 8, 2017)
|
About Valeant
Valeant Pharmaceuticals International,
Inc. (NYSE/TSX:VRX) is a multinational specialty pharmaceutical
company that develops, manufactures and markets a broad range of
pharmaceutical products primarily in the areas of dermatology,
gastrointestinal disorders, eye health, neurology and branded
generics. More information about Valeant can be found at
www.valeant.com.
Forward-looking Statements
This press release contains
forward-looking information and statements, within the meaning of
applicable securities laws (collectively, "forward-looking
statements"), including, but not limited to, statements regarding
Valeant's future prospects and performance (including the Company's
updated 2017 full-year guidance), the expected date for the
completion of the redemption of certain of the Company's senior
notes and the anticipated impact of such redemption, the Company's
expectations with respect to debt paydown, the anticipated timing
of the closing of the divestitures of the iNova Pharmaceuticals and
Obagi Medical Products businesses and the Company's plans and
expectations for 2017. Forward-looking statements may generally be
identified by the use of the words "anticipates," "expects,"
"intends," "plans," "should," "could," "would," "may," "will,"
"believes," "estimates," "potential," "target," or "continue" and
variations or similar expressions. These forward-looking
statements, including the Company's updated full-year guidance, are
based upon the current expectations and beliefs of management and
are provided for the purpose of providing additional information
about such expectations and beliefs and readers are cautioned that
these statements may not be appropriate for other purposes. These
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results and events to differ
materially from those described in these forward-looking
statements. These risks and uncertainties include, but are not
limited to, the risks and uncertainties discussed in the Company's
most recent annual and quarterly reports and detailed from time to
time in the Company's other filings with the Securities and
Exchange Commission and the Canadian Securities Administrators,
which risks and uncertainties are incorporated herein by reference.
In addition, certain material factors and assumptions have been
applied in making these forward-looking statements (including the
Company's 2017 full-year guidance), including that the risks and
uncertainties outlined above will not cause actual results or
events to differ materially from those described in these
forward-looking statements, and additional information regarding
certain of these material factors and assumptions may also be found
in the Company's filings described above. The Company believes that
the material factors and assumptions reflected in these
forward-looking statements are reasonable, but readers are
cautioned not to place undue reliance on any of these
forward-looking statements. These forward-looking statements speak
only as of the date hereof. Valeant undertakes no obligation to
update any of these forward-looking statements to reflect events or
circumstances after the date of this press release or to reflect
actual outcomes, unless required by law.
Non-GAAP Information
Recent Evaluation of
Financial Performance Measures
Recently, the Company's
new management team undertook an evaluation of how it would measure
the financial performance of the Company going forward. In
evaluating its financial performance measures, the Company
considered its recent changes to its strategy (which included a
transition away from growth by acquisition with a greater focus on
R&D activity, strengthening of the balance sheet through the
paydown of debt and rationalization of the product portfolio
through divestitures of non-core assets) and sought to identify
performance measures that best reflect the Company's current
business operations, strategy and goals. As a result of that
evaluation, new management identified the following primary
financial performance measures for the Company: GAAP Revenues
(measure for both guidance and actual results), GAAP Net Income
(measure for actual results), Adjusted EBITDA (non-GAAP) (measure
for both guidance and actual results) and GAAP Cash Flow from
Operations (measure for actual results). These measures were
selected as the Company believes that these measures most
appropriately reflect how the Company measures the business
internally and sets operational goals and incentives. For example,
the Company believes that Adjusted EBITDA (non-GAAP) focuses
management on the Company's underlying operational results and
business performance, while GAAP Revenue focuses management on the
overall growth of the business.
In addition, in connection with this evaluation of financial
performance measures, the Company assessed the methodology with
which it was calculating non-GAAP measures and made updates where
it deemed appropriate to better reflect the underlying business.
For example, commencing with the first quarter of 2017, Adjusted
EBITDA (non-GAAP) no longer includes adjustments for Foreign
exchange gain/loss arising from intercompany transactions.
The Company began to use these new non-GAAP measures, and the
new methodologies used to calculate these non-GAAP measures,
commencing with the first quarter of 2017. For the purposes of the
Company's actual results for the first half and second quarter of
2016, the Company has calculated and presented the non-GAAP
measures using the historic methodologies in place as of the
applicable historic dates; however, the Company has also provided a
reconciliation that calculates the non-GAAP measures using the new
methodologies, to allow investors and readers to evaluate the
non-GAAP measures (such as Adjusted EBITDA) on the same basis for
the periods presented.
Use of Non-GAAP Generally
To supplement the
financial measures prepared in accordance with U.S. generally
accepted accounting principles (GAAP), the Company uses certain
non-GAAP financial measures including (i) Adjusted EBITDA
(non-GAAP), (ii) Adjusted Net Income (non-GAAP) and (iii) organic
growth. These measures do not have any standardized meaning under
GAAP and other companies may use similarly titled non-GAAP
financial measures that are calculated differently from the way we
calculate such measures. Accordingly, our non-GAAP financial
measures may not be comparable to similar non-GAAP measures. We
caution investors not to place undue reliance on such non-GAAP
measures, but instead to consider them with the most directly
comparable GAAP measures. Non-GAAP financial measures have
limitations as analytical tools and should not be considered in
isolation. They should be considered as a supplement to, not a
substitute for, or superior to, the corresponding measures
calculated in accordance with GAAP.
The reconciliations of these historic non-GAAP measures to the
most directly comparable financial measures calculated and
presented in accordance with GAAP are shown in the tables below.
However, for guidance purposes, the Company does not provide
reconciliations of projected Adjusted EBITDA (non-GAAP) to
projected GAAP net income (loss), due to the inherent difficulty in
forecasting and quantifying certain amounts that are necessary for
such reconciliations. In periods where significant acquisitions or
divestitures are not expected, the Company believes it might have a
basis for forecasting the GAAP equivalent for certain costs, such
as amortization, that would otherwise be treated as a non-GAAP
adjustment to calculate projected GAAP net income (loss). However,
because other deductions (e.g., restructuring, gain or loss on
extinguishment of debt and litigation and other matters) used to
calculate projected net income (loss) may vary significantly based
on actual events, the Company is not able to forecast on a GAAP
basis with reasonable certainty all deductions needed in order to
provide a GAAP calculation of projected net income (loss) at this
time. The amounts of these deductions may be material and,
therefore, could result in GAAP net income (loss) being materially
different from (including materially less than) projected Adjusted
EBITDA (non-GAAP).
Management uses these non-GAAP measures as key metrics in the
evaluation of Company performance and the consolidated financial
results and, in part, in the determination of cash bonuses for its
executive officers. The Company believes these non-GAAP measures
are useful to investors in their assessment of our operating
performance and the valuation of our Company. In addition, these
non-GAAP measures address questions the Company routinely receives
from analysts and investors and, in order to assure that all
investors have access to similar data, the Company has determined
that it is appropriate to make this data available to all
investors. However, non-GAAP financial measures are not prepared in
accordance with GAAP, as they exclude certain items as described
herein. Therefore, the information is not necessarily comparable to
other companies and should be considered as a supplement to, not a
substitute for, or superior to, the corresponding measures
calculated in accordance with GAAP.
Specific Non-GAAP Measures
Adjusted EBITDA (non-GAAP)
Adjusted EBITDA (non-GAAP) is GAAP net income (its most directly
comparable GAAP financial measure) adjusted for certain items, as
further described below. The Company has historically used Adjusted
EBITDA to evaluate current performance. As indicated above,
following an evaluation of the Company's financial performance
measures, new management of the Company identified certain new
primary financial performance measures that it is now using to
evaluate the Company's financial performance. One of those measures
is Adjusted EBITDA (non-GAAP), which the Company uses for both
actual results and guidance purposes. As described above,
management of the Company believes that Adjusted EBITDA (non-GAAP),
along with the other new measures, most appropriately reflect how
the Company measures the business internally and sets operational
goals and incentives, especially in light of the Company's new
strategies. In particular, the Company believes that Adjusted
EBITDA (non-GAAP) focuses management on the Company's underlying
operational results and business performance. As a result, the
Company is now using Adjusted EBITDA (non-GAAP) both to assess the
actual financial performance of the Company and to forecast future
results as part of its guidance. Management believes Adjusted
EBITDA (non-GAAP) is a useful measure to evaluate current
performance. Adjusted EBITDA (non-GAAP) is intended to show our
unleveraged, pre-tax operating results and therefore reflects our
financial performance based on operational factors. In addition,
commencing in 2017, cash bonuses for the Company's executive
officers and other key employees will be based, in part, on the
achievement of certain Adjusted EBITDA (non-GAAP) targets.
Adjusted EBITDA reflect adjustments based on the following
items:
- Restructuring and integration costs: Prior to 2016, the Company
completed a number of acquisitions, which resulted in operating
expenses which varied significantly from period to period and which
would not otherwise have been incurred. The type, nature, size and
frequency of the Company's acquisitions have varied considerably
period to period. As a result, the type and amount of the
restructuring, integration and deal costs have also varied
significantly from acquisition to acquisition. In addition, the
costs associated with an acquisition varied significantly from
quarter to quarter, with most costs generally decreasing over time.
Consequently, given the variability and volatility of these costs
from acquisition to acquisition and period to period and because
these costs are incremental and directly related to the
acquisition, the Company does not view these costs as normal
operating expenses. Furthermore, due to the volatility of these
costs and due to the fact that they are directly related to the
acquisitions, the Company believes that such costs should be
excluded when assessing or estimating the long-term performance of
the acquired businesses or assets as part of the Company. Also, the
size, complexity and/or volume of past acquisitions, which often
drove the magnitude of such expenses, were not necessarily
indicative of the size, complexity and/or volume of any future
acquisitions. In addition, since 2016 and for the foreseeable
future, while the Company has undertaken fewer acquisitions, the
Company has incurred (and anticipates continuing to incur)
additional restructuring costs as it implements its new strategies,
which will involve, among other things, internal reorganizations
and divestiture of assets and businesses. The amount, size and
timing of these costs fluctuates, depending on the reorganization
or transaction and, as a result, the Company does not believe that
such costs (and their impact) are truly representative of the
underlying business. In each case, by excluding these expenses from
its non-GAAP measures, management believes it provided supplemental
information that assisted investors with their evaluation of the
Company's ability to utilize its existing assets and with its
estimation of the long-term value that acquired assets would
generate for the Company. Furthermore, the Company believes that
the adjustments of these items provided supplemental information
with regard to the sustainability of the Company's operating
performance, allowed for a comparison of the financial results to
historical operations and forward-looking guidance and, as a
result, provided useful supplemental information to investors.
- Acquired in-process research and development costs: The Company
has excluded expenses associated with acquired in-process research
and development, as these amounts are inconsistent in amount and
frequency and are significantly impacted by the timing, size and
nature of acquisitions. Furthermore, as these amounts are
associated with research and development acquired, they are not a
representation of the Company's research and development efforts
during the period.
- Asset Impairments: The Company has excluded the impact of
impairments of finite-lived and indefinite-lived intangibles, as
well as impairments of assets held for sale, as such amounts are
inconsistent in amount and frequency and are significantly impacted
by the timing and/or size of acquisitions and divestitures. The
Company believes that the adjustments of these items correlate with
the sustainability of the Company's operating performance. Although
the Company excludes intangible impairments from its non-GAAP
expenses, the Company believes that it is important for investors
to understand that intangible assets contribute to revenue
generation.
- Share-based Compensation: The Company excludes the impact of
costs relating to share-based compensation. The Company believes
that the exclusion of share-based compensation expense assists
investors in the comparisons of operating results to peer
companies. Share-based compensation expense can vary significantly
based on the timing, size and nature of awards granted.
- Acquisition- related adjustments excluding amortization of
intangible assets and depreciation expense: The Company has
excluded the impact of acquisition-related contingent consideration
non-cash adjustments due to the inherent uncertainty and volatility
associated with such amounts based on changes in assumptions with
respect to fair value estimates, and the amount and frequency of
such adjustments is not consistent and is significantly impacted by
the timing and size of the Company's acquisitions, as well as the
nature of the agreed-upon consideration. In addition, the Company
has excluded the impact of fair value inventory step-up resulting
from acquisitions as the amount and frequency of such adjustments
are not consistent and are significantly impacted by the timing and
size of its acquisitions.
- Loss on extinguishment of debt: The Company has excluded loss
on extinguishment of debt as this represents a cost of refinancing
our existing debt and is not a reflection of our operations for the
period. Further, the amount and frequency of such charges are not
consistent and are significantly impacted by the timing and size of
debt financing transactions and other factors in the debt market
out of management's control.
- Other Non-GAAP Charges: The Company has excluded certain other
amounts including integration related inventory and technology
transfer costs, CEO termination costs, legal and other professional
fees incurred in connection with recent legal and governmental
proceedings, investigations and information requests respecting
certain of our distribution, marketing, pricing, disclosure and
accounting practices, litigation and other matters, net (gain)/loss
on sale of assets, acquisition-related transaction costs and
certain costs associated with the wind-down of the arrangements
with Philidor Rx Services, LLC ("Philidor"). In addition, the
Company has excluded certain other expenses that are the result of
other, non-comparable events to measure operating performance.
These events arise outside of the ordinary course of continuing
operations. Given the unique nature of the matters relating to
these costs, the Company believes these items are not normal
operating expenses. For example, legal settlements and judgments
vary significantly, in their nature, size and frequency, and, due
to this volatility, the Company believes the costs associated with
legal settlements and judgments are not normal operating expenses.
In addition, as opposed to more ordinary course matters, the
Company considers that each of the recent proceedings,
investigations and information requests, given their nature and
frequency, are outside of the ordinary course and relate to unique
circumstances. The Company believes that the exclusion of such
out-of-the-ordinary-course amounts provides supplemental
information to assist in the comparison of the financial results of
the Company from period to period and, therefore, provides useful
supplemental information to investors. However, investors should
understand that many of these costs could recur and that companies
in our industry often face litigation.
Finally, to the extent not already adjusted for above, Adjusted
EBITDA (non-GAAP) reflects adjustments for interest, taxes,
depreciation and amortization (EBITDA represents earnings before
interest, taxes, depreciation and amortization).
As indicated above, in addition to identifying new primary
financial performance measures, the Company also assessed the
methodology with which it was calculating these non-GAAP measures
and made updates where it deemed appropriate to better reflect the
underlying business. As a result, commencing with the first quarter
actual results of 2017, there are certain differences in the
calculation of Adjusted EBITDA (non-GAAP) between the current
presentation and the historic presentation. In particular, Adjusted
EBITDA (non-GAAP) no longer includes adjustments for Foreign
exchange gain/loss arising from intercompany transactions. For the
purposes of the Company's actual results for the first half and
second quarter of 2016, the Company has calculated and presented
the non-GAAP measures using the historic methodologies in place as
of the applicable historic dates; however, the Company has also
provided a reconciliation that calculates the non-GAAP measure
using the new methodology, to allow investors and readers to
evaluate the non-GAAP measure (such as Adjusted EBITDA) on the same
basis for the periods presented.
Please also see the reconciliation tables below for further
information as to how these non-GAAP measures are calculated for
the periods presented.
Adjusted Net Income (Loss) (non-GAAP)
Historically, management has used adjusted net income (loss)
(non-GAAP) (the most directly comparable GAAP financial measure for
which is GAAP net income (loss)) for strategic decision making,
forecasting future results and evaluating current performance. This
non-GAAP measure excludes the impact of certain items (as further
described below) that may obscure trends in the Company's
underlying performance. By disclosing this non-GAAP measure, it was
management's intention to provide investors with a meaningful,
supplemental comparison of the Company's operating results and
trends for the periods presented. It was management belief that
this measure was also useful to investors as such measure allowed
investors to evaluate the Company's performance using the same
tools that management had used to evaluate past performance and
prospects for future performance. Accordingly, it was the Company's
belief that adjusted net income (loss) (non-GAAP) was useful to
investors in their assessment of the Company's operating
performance and the valuation of the Company. It is also noted
that, in recent periods, our GAAP net income was significantly
lower than our adjusted net income (non-GAAP). As indicated above,
following an assessment of the Company's financial performance
measures, new management of the Company identified certain new
primary financial performance measures that will be used to assess
Company financial performance going forward. As a result, the
Company no longer uses or relies on adjusted net income (loss)
(non-GAAP) in assessing the financial performance of the Company.
However, a reconciliation of GAAP net income (loss) to adjusted net
income (loss) (non-GAAP) is presented in the tables below for the
information of readers to provide readers comparable information
for prior periods.
Adjusted net income (non-GAAP) reflects adjustments based on the
following items:
- Acquisition- related adjustments excluding amortization of
intangible assets: The Company has excluded the impact of
acquisition-related contingent consideration non-cash adjustments
due to the inherent uncertainty and volatility associated with such
amounts based on changes in assumptions with respect to fair value
estimates, and the amount and frequency of such adjustments is not
consistent and is significantly impacted by the timing and size of
the Company's acquisitions, as well as the nature of the
agreed-upon consideration. In addition, the Company has excluded
the impact of fair value inventory step-up resulting from
acquisitions as the amount and frequency of such adjustments are
not consistent and are significantly impacted by the timing and
size of its acquisitions.
- Amortization of intangible assets: The Company has excluded the
impact of amortization of intangible assets, as such amounts are
inconsistent in amount and frequency and are significantly impacted
by the timing and/or size of acquisitions. The Company believes
that the adjustments of these items correlate with the
sustainability of the Company's operating performance. Although the
Company excludes amortization of intangible assets from its
non-GAAP expenses, the Company believes that it is important for
investors to understand that such intangible assets contribute to
revenue generation. Amortization of intangible assets that relate
to past acquisitions will recur in future periods until such
intangible assets have been fully amortized. Any future
acquisitions may result in the amortization of additional
intangible assets.
- Restructuring and integration costs: Prior to 2016, the Company
completed a number of acquisitions, which resulted in operating
expenses which varied significantly from period to period and which
would not otherwise have been incurred. The type, nature, size and
frequency of the Company's acquisitions have varied considerably
period to period. As a result, the type and amount of the
restructuring, integration and deal costs have also varied
significantly from acquisition to acquisition. In addition, the
costs associated with an acquisition varied significantly from
quarter to quarter, with most costs generally decreasing over time.
Consequently, given the variability and volatility of these costs
from acquisition to acquisition and period to period and because
these costs are incremental and directly related to the
acquisition, the Company does not view these costs as normal
operating expenses. Furthermore, due to the volatility of these
costs and due to the fact that they are directly related to the
acquisitions, the Company believes that such costs should be
excluded when assessing or estimating the long-term performance of
the acquired businesses or assets as part of the Company. Also, the
size, complexity and/or volume of past acquisitions, which often
drove the magnitude of such expenses, were not necessarily
indicative of the size, complexity and/or volume of any future
acquisitions. In addition, since 2016 and for the foreseeable
future, while the Company has undertaken fewer acquisitions, the
Company has incurred (and anticipates continuing to incur)
additional restructuring costs as it implements its new strategies,
which will involve, among other things, internal reorganizations
and divestiture of assets and businesses. The amount, size and
timing of these costs fluctuates, depending on the reorganization
or transaction and, as a result, the Company does not believe that
such costs (and their impact) are truly representative of the
underlying business. In each case, by excluding these expenses from
its non-GAAP measures, management believes it provided supplemental
information that assisted investors with their evaluation of the
Company's ability to utilize its existing assets and with its
estimation of the long-term value that acquired assets would
generate for the Company. Furthermore, the Company believes that
the adjustments of these items provided supplemental information
with regard to the sustainability of the Company's operating
performance, allowed for a comparison of the financial results to
historical operations and forward-looking guidance and, as a
result, provided useful supplemental information to investors.
- Acquired in-process research and development costs: The Company
has excluded expenses associated with acquired in-process research
and development, as these amounts are inconsistent in amount and
frequency and are significantly impacted by the timing, size and
nature of acquisitions. Furthermore, as these amounts are
associated with research and development acquired, they are not a
representation of the Company's research and development efforts
during the period.
- Asset Impairments: The Company has excluded the impact of
impairments of finite-lived and indefinite-lived intangibles, as
well as impairments of assets held for sale, as such amounts are
inconsistent in amount and frequency and are significantly impacted
by the timing and/or size of acquisitions and divestitures. The
Company believes that the adjustments of these items correlate with
the sustainability of the Company's operating performance. Although
the Company excludes intangible impairments from its non-GAAP
expenses, the Company believes that it is important for investors
to understand that intangible assets contribute to revenue
generation.
- Other Non-GAAP Charges: The Company has excluded certain other
amounts including integration related inventory and technology
transfer costs, CEO termination costs, legal and other professional
fees incurred in connection with recent legal and governmental
proceedings, investigations and information requests respecting
certain of our distribution, marketing, pricing, disclosure and
accounting practices, litigation and other matters, net (gain)/loss
on sale of assets, acquisition-related transaction costs and
certain costs associated with the wind-down of the arrangements
with Philidor. In addition, the Company has excluded certain other
expenses that are the result of other, non-comparable events to
measure operating performance. These events arise outside of the
ordinary course of continuing operations. Given the unique nature
of the matters relating to these costs, the Company believes these
items are not normal operating expenses. For example, legal
settlements and judgments vary significantly, in their nature, size
and frequency, and, due to this volatility, the Company believes
the costs associated with legal settlements and judgments are not
normal operating expenses. In addition, as opposed to more ordinary
course matters, the Company considers that each of the recent
proceedings, investigations and information requests, given their
nature and frequency, are outside of the ordinary course and relate
to unique circumstances. The Company believes that the exclusion of
such out-of-the-ordinary-course amounts provides supplemental
information to assist in the comparison of the financial results of
the Company from period to period and, therefore, provides useful
supplemental information to investors. However, investors should
understand that many of these costs could recur and that companies
in our industry often face litigation.
- Loss on extinguishment of debt: The Company has excluded loss
on extinguishment of debt as this represents a cost of refinancing
our existing debt and is not a reflection of our operations for the
period. Further, the amount and frequency of such charges are not
consistent and are significantly impacted by the timing and size of
debt financing transactions and other factors in the debt market
out of management's control.
- Tax: The Company has included the tax impact of the non-GAAP
adjustments using an annualized effective tax rate.
As indicated above, in addition to identifying new primary
financial performance measures, the Company also assessed the
methodology with which it was calculating these non-GAAP measures
and made updates where it deemed appropriate to better reflect the
underlying business. As a result, commencing with the first-quarter
results of 2017, there are certain differences in the calculation
of adjusted net income (loss) (non-GAAP) between the current
presentation and the historic presentation. In particular, adjusted
net income (loss) (non-GAAP) no longer includes Foreign exchange
gain/loss arising from intercompany transactions and amortization
of deferred financing costs and debt discounts In addition,
as of the third quarter of 2016, adjusted net income (loss)
(non-GAAP) no longer includes adjustments for the following items:
Depreciation resulting from a PP&E step-up resulting from
acquisitions and Previously accelerated vesting of certain
share-based equity adjustments. For the purposes of the Company's
actual results for the first half and second quarter of 2016, the
Company has calculated and presented the non-GAAP measures using
the historic methodologies in place as of the applicable historic
dates; however, the Company has also provided a reconciliation that
calculates the non-GAAP measure using the new methodology, to allow
investors and readers to evaluate the non-GAAP measure (such as
adjusted net income (loss)) on the same basis for the periods
presented.
Organic Growth
Organic Growth is growth in GAAP Revenue (its most directly
comparable GAAP financial measure) adjusted for certain items, as
further described below. Organic growth provides growth rates for
businesses that have been owned for one or more years. The Company
uses organic revenue and organic growth to assess performance of
its business units and operating and reportable segments, and the
Company in total, without the impact of foreign currency exchange
fluctuations and recent acquisitions, divestitures and product
discontinuations. The Company believes that such measures are
useful to investors as it provides a supplemental period-to-period
comparison.
Organic Growth reflects adjustments based on the following
items:
- Foreign Exchange: To assist investors in evaluating the
Company's performance, we have adjusted for changes in foreign
currency exchange rates. Change at constant currency is determined
by comparing 2017 reported amounts adjusted to exclude currency
impact, calculated using 2016 monthly average exchange rates, to
the actual 2016 reported amounts.
- Acquisitions, Divestitures and Discontinuations: The Company
has excluded revenue from businesses and products that have been
acquired within the last year and that have been sold or
discontinued.
Please also see the reconciliation tables below for further
information as to how these non-GAAP measures are calculated for
the periods presented.
|
|
|
|
1 Organic
growth, a non-GAAP metric, is defined as an increase on a
year-over-year basis in revenues on a constant currency basis (if
applicable) excluding the impact of divestitures and
discontinuations.
|
2
Provisional name
|
3 In March
2017, Valeant sold the CeraVe® brand, which had been reported
within the Bausch + Lomb/International segment, as part of the
skincare divestiture to L'Oréal.
|
4 To
assist investors in evaluating the Company's performance, we have
adjusted for changes in foreign currency exchange rates. Change at
constant currency, a non-GAAP metric, is determined by comparing
2017 reported amounts adjusted to exclude currency impact,
calculated using 2016 monthly average exchange rates, to the actual
2016 reported amounts.
|
5 On Feb.
8, 2017, the Company agreed to settle the Salix securities class
action litigation for $210 million. The settlement has been
approved by the court. Reflective of insurance refunds received as
of June 30, 2017, the Company made $190 million in net payments
during the second quarter of 2017. The Company expects to receive a
total of $60 million of insurance refund proceeds related to this
matter.
|
FINANCIAL TABLES FOLLOW
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
|
|
|
|
Table
1
|
Condensed
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
For the Three and
Six Months Ended June 30, 2017 and 2016
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Product
sales
|
|
$
2,200
|
|
$
2,389
|
|
$
4,276
|
|
$
4,725
|
Other
revenues
|
|
33
|
|
31
|
|
66
|
|
67
|
Total
revenues
|
|
2,233
|
|
2,420
|
|
4,342
|
|
4,792
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
(excluding amortization and impairments of intangible
assets)
|
|
635
|
|
648
|
|
1,219
|
|
1,268
|
Cost of other
revenues
|
|
11
|
|
10
|
|
23
|
|
20
|
Selling, general and
administrative
|
|
659
|
|
671
|
|
1,320
|
|
1,484
|
Research and
development
|
|
94
|
|
124
|
|
190
|
|
227
|
Amortization of
intangible assets
|
|
623
|
|
673
|
|
1,258
|
|
1,351
|
Asset
impairments
|
|
85
|
|
230
|
|
223
|
|
246
|
Restructuring and
integration costs
|
|
18
|
|
20
|
|
36
|
|
58
|
Acquired in-process
research and development costs
|
|
1
|
|
2
|
|
5
|
|
3
|
Acquisition-related
contingent consideration
|
|
(49)
|
|
7
|
|
(59)
|
|
9
|
Other
income
|
|
(19)
|
|
(46)
|
|
(259)
|
|
(21)
|
|
|
2,058
|
|
2,339
|
|
3,956
|
|
4,645
|
Operating
income
|
|
175
|
|
81
|
|
386
|
|
147
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(456)
|
|
(470)
|
|
(927)
|
|
(896)
|
Loss on
extinguishment of debt
|
|
-
|
|
-
|
|
(64)
|
|
-
|
Foreign exchange and
other
|
|
39
|
|
12
|
|
68
|
|
6
|
|
|
|
|
|
|
|
|
|
Loss before recovery
for income taxes
|
|
(242)
|
|
(377)
|
|
(537)
|
|
(743)
|
|
|
|
|
|
|
|
|
|
Recovery of income
taxes
|
|
(205)
|
|
(73)
|
|
(1,129)
|
|
(66)
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(37)
|
|
(304)
|
|
592
|
|
(677)
|
|
|
|
|
|
|
|
|
|
Less: Net
income (loss) attributable to noncontrolling interest
|
|
1
|
|
(2)
|
|
2
|
|
(1)
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Valeant Pharmaceuticals International,
Inc.
|
|
$
(38)
|
|
$
(302)
|
|
$
590
|
|
$
(676)
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
|
|
|
|
Table
2
|
Reconciliation of
GAAP Net (loss) Income to Adjusted Net Income
(non-GAAP)
|
|
|
|
|
|
|
|
|
For the Three and
Six Months Ended June 30, 2017 and 2016
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Valeant Pharmaceuticals International,
Inc.
|
|
$
(38)
|
|
$
(302)
|
|
$
590
|
|
$
(676)
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments: (a)
|
|
|
|
|
|
|
|
|
Acquisition-related
adjustments excluding amortization of intangible assets (b)
(d)
|
|
(49)
|
|
19
|
|
(59)
|
|
53
|
Amortization of
intangible assets
|
|
623
|
|
673
|
|
1,258
|
|
1,351
|
Restructuring and
integration costs
|
|
18
|
|
20
|
|
36
|
|
58
|
Acquired in-process
research and development costs
|
|
1
|
|
2
|
|
5
|
|
3
|
Asset
impairments
|
|
85
|
|
230
|
|
223
|
|
246
|
Other non-GAAP
charges (c) (d)
|
|
(6)
|
|
(17)
|
|
(236)
|
|
85
|
Amortization of
deferred financing costs and debt discounts
|
|
-
|
|
36
|
|
-
|
|
57
|
Loss on
extinguishment of debt
|
|
-
|
|
-
|
|
64
|
|
-
|
Foreign exchange and
other (d)
|
|
-
|
|
(13)
|
|
-
|
|
(15)
|
Tax effect of
non-GAAP adjustments
|
|
(272)
|
|
(161)
|
|
(1,246)
|
|
(232)
|
Total non-GAAP
adjustments
|
|
400
|
|
789
|
|
45
|
|
1,606
|
|
|
|
|
|
|
|
|
|
Adjusted net
income non-GAAP attributable to Valeant Pharmaceuticals
International, Inc.
(As Reported) (d)
|
|
$
362
|
|
$
487
|
|
$
635
|
|
$
930
|
|
|
|
|
|
|
|
|
|
Depreciation
resulting from a PP&E step-up resulting from
acquisitions
|
|
|
|
(5)
|
|
|
|
(8)
|
Previously
accelerated vesting of certain share-based equity
adjustments
|
|
|
|
1
|
|
|
|
(23)
|
Foreign exchange
loss/gain on intercompany transactions
|
|
|
|
13
|
|
|
|
15
|
Amortization of
deferred financing costs and debt discounts
|
|
|
|
(36)
|
|
|
|
(57)
|
|
Adjusted net
income non-GAAP attributable to Valeant Pharmaceuticals
International, Inc.
(Revised basis) (e)
|
|
$
362
|
|
$
460
|
|
$
635
|
|
$
857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The components of
(and further details respecting) each of these non-GAAP adjustments
and the financial statement line item to which each component
relates can be found on Table 2a.
|
|
(b) Due to the nature
of Acquisition-related adjustments excluding amortization of
intangible assets, the components of this non-GAAP adjustment are
reflected in various financial statement line items, as follows:
Cost of goods sold, Selling, general and administrative, Research
and development, and Acquisition-related contingent
consideration.
|
|
(c) Due to the nature
of Other non-GAAP charges, the components of this non-GAAP
adjustment are reflected in various financial statement line items,
as follows: Product Sales, Cost of goods sold, Selling, general and
administrative, Research and development, and Other
expense.
|
|
(d) This subtotal
reflects the Adjusted Net income(loss) (non-GAAP) reported by the
Company for the three and six months ended June 30, 2016 using the
methodology for calculating Adjusted Net Income(loss) (non-GAAP) as
of that date.
|
|
(e) As of the third
quarter of 2016, Adjusted net income(loss) (non-GAAP) no longer
includes adjustments for the following items: Depreciation
resulting from a PP&E step-up resulting from acquisitions and
Previously accelerated vesting of certain share-based equity
adjustments. Depreciation resulting from a PP&E step-up
resulting from acquisitions was a component of Acquisition-related
adjustments excluding amortization of intangible assets. Previously
accelerated vesting of certain share-based equity adjustments was a
component of Other non-GAAP charges. As of the first quarter of
2017, Adjusted net income(loss) (non-GAAP) also no longer includes
adjustments for Foreign exchange loss/gain on intercompany
transactions and Amortization of deferred financing costs and debt
discounts. For the purpose of allowing investors to evaluate
Adjusted net income(loss) (non-GAAP) on the same basis for the
periods presented, these adjustments have been removed from the
results for the three months and six months ended June 30,
2016.
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
|
|
|
|
Table
2a
|
Reconciliation of
GAAP to Non-GAAP Financial Information
|
|
|
|
|
|
|
|
|
For the Three and
Six Months Ended June 30, 2017 and 2016
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Total Revenues
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP
Revenues
|
|
$
|
2,233
|
|
$
|
2,420
|
|
$
|
4,342
|
|
$
|
4,792
|
Philidor Rx Services,
LLC sales through deconsolidation as of January 31, 2016
(a)
|
|
|
-
|
|
-
|
|
-
|
|
(2)
|
Adjusted revenues
(non-GAAP)
|
|
$
|
2,233
|
|
$
|
2,420
|
|
$
|
4,342
|
|
$
|
4,790
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
and other revenues reconciliation:
|
|
|
|
|
|
|
|
|
GAAP cost of goods
sold and Cost of Other revenues
|
|
$
|
646
|
|
$
|
658
|
|
$
|
1,242
|
|
$
|
1,288
|
% of GAAP
total revenues
|
|
|
29%
|
|
27%
|
|
29%
|
|
27%
|
Fair value inventory
step-up resulting from acquisitions (b) (k)
|
|
|
-
|
|
(7)
|
|
-
|
|
(36)
|
Depreciation
resulting from a PP&E step-up resulting from acquisitions (b)
(k)
|
|
|
-
|
|
(3)
|
|
-
|
|
(6)
|
Integration related
inventory and technology transfer costs (a)
|
|
|
-
|
|
(6)
|
|
-
|
|
(9)
|
Adjusted cost of
goods and Cost of Other revenues (non-GAAP) (k)
|
|
$
|
646
|
|
$
|
642
|
|
$
|
1,242
|
|
$
|
1,237
|
% of
Non-GAAP total revenues
|
|
|
29%
|
|
27%
|
|
29%
|
|
26%
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative reconciliation:
|
|
|
|
|
|
|
|
|
GAAP selling, general
and administrative
|
|
$
|
659
|
|
$
|
671
|
|
$
|
1,320
|
|
$
|
1,484
|
% of GAAP
total revenues
|
|
|
30%
|
|
28%
|
|
30%
|
|
31%
|
Depreciation
resulting from a PP&E step-up resulting from acquisitions (b)
(k)
|
|
|
-
|
|
-
|
|
-
|
|
(8)
|
CEO termination costs
(a)
|
|
|
-
|
|
-
|
|
-
|
|
(35)
|
Legal and other
professional fees (a) (j)
|
|
|
(13)
|
|
(9)
|
|
(23)
|
|
(38)
|
Philidor Rx Services,
LLC expenses through deconsolidation as of January 31, 2016
(a)
|
|
|
-
|
|
-
|
|
-
|
|
(5)
|
Previously
accelerated vesting of certain share-based equity instruments (a)
(k)
|
|
|
-
|
|
1
|
|
-
|
|
2
|
Adjusted selling,
general and administrative (non-GAAP) (k)
|
|
$
|
646
|
|
$
|
663
|
|
$
|
1,297
|
|
$
|
1,400
|
% of
Non-GAAP total revenues
|
|
|
29%
|
|
27%
|
|
30%
|
|
29%
|
|
|
|
|
|
|
|
|
|
Research and
development reconciliation:
|
|
|
|
|
|
|
|
|
GAAP research and
development
|
|
$
|
94
|
|
$
|
124
|
|
$
|
190
|
|
$
|
227
|
% of GAAP
total revenues
|
|
|
4%
|
|
5%
|
|
4%
|
|
5%
|
Depreciation
resulting from a PP&E step-up resulting from acquisitions (b)
(k)
|
|
|
-
|
|
(1)
|
|
-
|
|
(1)
|
Settlement of certain
disputed invoices related to transition services (a)
|
|
|
-
|
|
(16)
|
|
-
|
|
(16)
|
Adjusted research and
development (non-GAAP)
|
|
$
|
94
|
|
$
|
107
|
|
$
|
190
|
|
$
|
210
|
% of
Non-GAAP total revenues
|
|
|
4%
|
|
4%
|
|
4%
|
|
4%
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Amortization of
intangible assets
|
|
$
|
623
|
|
$
|
673
|
|
$
|
1,258
|
|
$
|
1,351
|
Amortization of
intangible assets (c)
|
|
|
(623)
|
|
(673)
|
|
(1,258)
|
|
(1,351)
|
Adjusted Amortization
of intangible assets (non-GAAP)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Restructuring and
integration costs reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Restructuring
and integration costs (See Table 4.2)
|
|
$
|
18
|
|
$
|
20
|
|
$
|
36
|
|
$
|
58
|
Restructuring and
integration costs (d)
|
|
|
(18)
|
|
(20)
|
|
(36)
|
|
(58)
|
Adjusted
Restructuring and integration costs (non-GAAP)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Acquired
in-process research and development costs
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Acquired
in-process research and development costs
|
|
$
|
1
|
|
$
|
2
|
|
$
|
5
|
|
$
|
3
|
Acquired in-process
research and development costs (e)
|
|
|
(1)
|
|
(2)
|
|
(5)
|
|
(3)
|
Adjusted Acquired
in-process research and development costs (non-GAAP)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Asset Impairments
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Asset
Impairments
|
|
$
|
85
|
|
$
|
230
|
|
$
|
223
|
|
$
|
246
|
Asset Impairments
(l)
|
|
|
(85)
|
|
(230)
|
|
(223)
|
|
(246)
|
Adjusted Asset
Impairments (non-GAAP)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Acquisition-related contingent consideration
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP
acquisition-related contingent consideration
|
|
$
|
(49)
|
|
$
|
7
|
|
$
|
(59)
|
|
$
|
9
|
Acquisition-related
contingent consideration (b)
|
|
|
49
|
|
(7)
|
|
59
|
|
(9)
|
Adjusted
acquisition-related contingent consideration (non-GAAP)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Other income
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP other
income
|
|
$
|
(19)
|
|
$
|
(46)
|
|
$
|
(259)
|
|
$
|
(21)
|
Legal settlements and
related fees (a)
|
|
|
(31)
|
|
35
|
|
(108)
|
|
33
|
Net gain/(loss) on
sale of assets (a)
|
|
|
50
|
|
11
|
|
367
|
|
9
|
Acquisition related
transaction costs (a) (k)
|
|
|
-
|
|
-
|
|
-
|
|
(2)
|
Other (primarily loss
recognized upon deconsolidation of Philidor Rx Services, LLC as of
January 31, 2016) (a)
|
|
|
-
|
|
-
|
|
-
|
|
(19)
|
Adjusted other
(income) expense (non-GAAP)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Interest expense,
net reconciliation:
|
|
|
|
|
|
|
|
|
GAAP interest
expense, net
|
|
$
|
(456)
|
|
$
|
(470)
|
|
$
|
(927)
|
|
$
|
(896)
|
Amortization of debt
discounts (f) (k)
|
|
|
-
|
|
30
|
|
-
|
|
48
|
Amortization of
deferred financing costs (f) (k)
|
|
|
-
|
|
4
|
|
-
|
|
6
|
Write-down of
deferred financing costs (f) (k)
|
|
|
-
|
|
2
|
|
-
|
|
3
|
Adjusted interest
expense, net (non-GAAP)
|
|
$
|
(456)
|
|
$
|
(434)
|
|
$
|
(927)
|
|
$
|
(839)
|
|
|
|
|
|
|
|
|
|
Loss on
extinguishment of debt reconciliation:
|
|
|
|
|
|
|
|
|
GAAP loss on
extinguishment of debt
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(64)
|
|
$
|
-
|
Loss on
extinguishment of debt (g)
|
|
|
-
|
|
-
|
|
64
|
|
-
|
Adjusted loss on
extinguishment of debt (non-GAAP)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Foreign exchange
and other reconciliation:
|
|
|
|
|
|
|
|
|
GAAP foreign exchange
and other
|
|
$
|
39
|
|
$
|
12
|
|
$
|
68
|
|
$
|
6
|
Foreign exchange
loss/gain on intercompany transactions (h) (k)
|
|
|
-
|
|
(13)
|
|
-
|
|
(15)
|
Adjusted foreign
exchange and other (non-GAAP)
|
|
$
|
39
|
|
$
|
(1)
|
|
$
|
68
|
|
$
|
(9)
|
|
|
|
|
|
|
|
|
|
Recovery of income
taxes reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Recovery of
income taxes
|
|
$
|
(205)
|
|
$
|
(73)
|
|
$
|
(1,129)
|
|
$
|
(66)
|
Effective
GAAP tax rate
|
|
|
85%
|
|
19%
|
|
210%
|
|
9%
|
Tax effect of
non-GAAP adjustments (i)
|
|
|
272
|
|
161
|
|
1,246
|
|
232
|
Adjusted Provision
for income taxes (non-GAAP)
|
|
$
|
67
|
|
$
|
88
|
|
$
|
117
|
|
$
|
166
|
Effective
Non-GAAP tax rate
|
|
|
16%
|
|
15%
|
|
16%
|
|
15%
|
|
|
|
|
|
|
|
|
|
(a) Represents a
component of the non-GAAP adjustment of "Other non-GAAP charges"
(see Table 2). The identified components, in the aggregate,
represent all components of this non-GAAP adjustment.
|
|
(b) Represents a
component of the non-GAAP adjustment of "Acquisition-related
adjustments excluding amortization of intangible assets" (see Table
2). The identified components, in the aggregate, represent all
components of this non-GAAP adjustment.
|
|
(c) Represents the
sole component of the non-GAAP adjustment of "Amortization of
intangible assets" (see Table 2).
|
|
(d) Represents the
sole component of the non-GAAP adjustment of "Restructuring and
Integration costs" (see Table 2).
|
|
(e) Represents the
sole component of the non-GAAP adjustment of "Acquired in-process
research and development costs" (see Table 2).
|
|
(f) Represents a
component of the non-GAAP adjustment of "Amortization of deferred
financing costs and debt discounts" (see Table 2). The identified
components, in the aggregate, represent all components of this
non-GAAP adjustment.
|
|
(g) Represents the
sole component of the non-GAAP adjustment of "Loss on
extinguishment of debt" (see Table 2).
|
|
(h) Represents a
component of the non-GAAP adjustment of "Foreign exchange and
other" (see Table 2). The identified components, in the aggregate,
represent all components of this non-GAAP adjustment.
|
|
(i) Represents the
sole component of the non-GAAP adjustment of "Tax effect of
non-GAAP adjustments" (see Table 2).
|
|
(j) Legal and other
professional fees incurred in connection with recent legal and
governmental proceedings, investigations and information requests
related to, among other matters, our distribution, marketing,
pricing, disclosure and accounting practices for the three months
and six months ended June 30, 2016 and June 30, 2017.
|
|
(k) As of the third
quarter of 2016, Adjusted net income(loss) (non-GAAP) no longer
includes adjustments for the following items: Depreciation
resulting from a PP&E step-up resulting from acquisitions and
Previously accelerated vesting of certain share-based equity
adjustments. Depreciation resulting from a PP&E step-up
resulting from acquisitions was a component of Acquisition-related
adjustments excluding amortization of intangible assets. Previously
accelerated vesting of certain share-based equity adjustments was a
component of Other non-GAAP charges. As of the first quarter of
2017, Adjusted net income(loss) (non-GAAP) also no longer includes
adjustments for Foreign exchange loss/gain on intercompany
transactions and Amortization of deferred financing costs and debt
discounts. For the purpose of allowing investors to evaluate
Adjusted net income(loss) (non-GAAP) on the same basis for the
periods presented, these adjustments have been removed from the
results for the three months and six months ended June 30, 2016.
See reconciliation on Table 2.
|
|
(l) Represents the
sole component of the non-GAAP adjustment of "Asset Impairments"
(see Table 2). Asset impairments were $85 million and $230 million
for the three months ended June 30, 2017 and 2016, respectively, a
decrease of $145 million. We continue to critically evaluate our
businesses and product portfolios and as a result identified assets
that are not aligned with our core objectives. Asset impairments
for the three months ended June 30, 2017 includes (i) impairments
of $44 million, in aggregate, to certain product/patent assets
associated with the discontinuance of specific product lines not
aligned with the focus of the Company's core business, (ii) an
impairment of $17 million reflecting a decrease in forecasted sales
for a specific product line and (iii) impairments of $16 million to
assets reclassified as held for sale. Asset impairments for the
three months ended June 30, 2016 includes an impairment loss of
$199 million associated with the Ruconest® business which was
reclassified as held for sale as of June 30, 2016.
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
|
|
|
|
Table
2b
|
Reconciliation of
GAAP Net Income to Adjusted EBITDA (non-GAAP)
|
|
|
|
|
|
|
|
|
For the Three and
Six Months Ended June 30, 2017 and 2016
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(non-GAAP)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net (loss) income
attributable to Valeant Pharmaceuticals International,
Inc.
|
|
$
(38)
|
|
$
(302)
|
|
$
590
|
|
$
(676)
|
|
Interest expense,
net
|
|
456
|
|
470
|
|
927
|
|
896
|
|
Recovery of income
taxes
|
|
(205)
|
|
(73)
|
|
(1,129)
|
|
(66)
|
|
Depreciation and
amortization
|
|
666
|
|
720
|
|
1,340
|
|
1,451
|
EBITDA
|
|
879
|
|
815
|
|
1,728
|
|
1,605
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Restructuring and
integration costs
|
|
18
|
|
20
|
|
36
|
|
58
|
|
Acquired in-process
research and development costs
|
|
1
|
|
2
|
|
5
|
|
3
|
|
Asset impairments
(d)
|
|
85
|
|
230
|
|
223
|
|
246
|
|
Share-based
compensation
|
|
23
|
|
33
|
|
51
|
|
97
|
|
Acquisition-related
adjustments excluding amortization of intangible assets, net of
depreciation expense
|
|
(49)
|
|
14
|
|
(59)
|
|
45
|
|
Loss on
extinguishment of debt
|
|
-
|
|
-
|
|
64
|
|
-
|
|
Foreign exchange and
other
|
|
-
|
|
(13)
|
|
-
|
|
(15)
|
|
Other non-GAAP
charges (a)
|
|
(6)
|
|
(14)
|
|
(236)
|
|
56
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(non-GAAP) (As Reported) (e)
|
|
$
951
|
|
$
1,087
|
|
$
1,812
|
|
$
2,095
|
|
Foreign exchange
loss/gain on intercompany transactions
|
|
|
|
13
|
|
|
|
15
|
Adjusted EBITDA
(non-GAAP) (Revised basis) (f)
|
|
$
951
|
|
$
1,100
|
|
$
1,812
|
|
$
2,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Other non-GAAP
charges include:
|
|
$
(6)
|
|
$
(14)
|
|
$
(236)
|
|
$
56
|
|
Integration related
inventory and technology transfer costs
|
|
-
|
|
6
|
|
-
|
|
9
|
|
CEO termination costs
(cash severance payment)
|
|
-
|
|
-
|
|
-
|
|
10
|
|
Legal and other
professional fees (b)
|
|
13
|
|
9
|
|
23
|
|
38
|
|
Settlement of certain
disputed invoices related to transition services
|
|
-
|
|
16
|
|
-
|
|
16
|
|
Litigation and other
matters
|
|
31
|
|
(35)
|
|
108
|
|
(33)
|
|
Net (gain)/loss on
sale of assets (c)
|
|
(50)
|
|
(11)
|
|
(367)
|
|
(9)
|
|
Acquisition related
transaction costs
|
|
-
|
|
-
|
|
-
|
|
2
|
|
Philidor Rx Services,
LLC net loss through deconsolidation as of January 31,
2016
|
|
-
|
|
-
|
|
-
|
|
3
|
|
Other
|
|
-
|
|
1
|
|
-
|
|
20
|
|
|
|
|
|
|
|
|
|
|
(b) Legal and other
professional fees incurred in connection with recent legal and
governmental proceedings, investigations and information requests
related to, among other matters, our distribution, marketing,
pricing, disclosure and accounting practices.
|
|
(c) For the three
months and six months ended June 30, 2017, Net (gain)/loss on sale
of assets of $50M and $367 million respectively were primarily due
to $73M gain on the Oncology sale and $319 million gain on the
Skincare sale.
|
|
(d) Asset impairments
were $85 million and $230 million for the three months ended June
30, 2017 and 2016, respectively, a decrease of $145 million. We
continue to critically evaluate our businesses and product
portfolios and as a result identified assets that are not aligned
with our core objectives. Asset impairments for the three months
ended June 30, 2017 includes (i) impairments of $44 million, in
aggregate, to certain product/patent assets associated with the
discontinuance of specific product lines not aligned with the focus
of the Company's core business, (ii) an impairment of $17 million
reflecting a decrease in forecasted sales for a specific product
line and (iii) impairments of $16 million to assets reclassified as
held for sale. Asset impairments for the three months ended June
30, 2016 includes an impairment loss of $199 million associated
with the Ruconest® business which was reclassified as held for sale
as of June 30, 2016.
|
|
(e) This subtotal
reflects the Adjusted EBITDA (non-GAAP) reported by the Company for
the three months and six months ended June 30, 2016 using the
methodology for calculating Adjusted EBITDA (non-GAAP) as of that
date.
|
|
(f) As of the first
quarter of 2017, non-GAAP adjustments no longer include adjustments
for Foreign exchange gain/loss arising from intercompany
transactions. For the purpose of allowing investors to evaluate
Adjusted EBITDA on the same basis for the periods presented, this
adjustment has been removed from the results for the three months
and six months ended June 30, 2016.
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
Table
3
|
Organic Growth
(non-GAAP) - by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three and
Six Months Ended June 30, 2017 and 2016
|
|
|
|
|
|
|
|
|
(In
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
|
|
|
For the
Three Months Ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Q2 2017
|
|
(2)
Q2 2016
|
|
(3)
Currency
impact
(a)
|
|
(4)
2017
excluding
currency
impact
(b)
|
|
(5)
% Change
|
|
(6)
Divestitures /
Discontinuations
|
|
Organic
Growth
4/(2-6)
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Vision
Care
|
187
|
|
196
|
|
(3)
|
|
190
|
|
-3%
|
|
3
|
|
-2%
|
Global
Surgical
|
178
|
|
180
|
|
(3)
|
|
181
|
|
1%
|
|
-
|
|
1%
|
Global Consumer
Products
|
379
|
|
410
|
|
(1)
|
|
380
|
|
-7%
|
|
40
|
|
3%
|
Global Ophthalmology
RX
|
167
|
|
162
|
|
(2)
|
|
169
|
|
4%
|
|
-
|
|
4%
|
International
|
330
|
|
329
|
|
(45)
|
|
375
|
|
14%
|
|
8
|
|
17%
|
Other
revenue
|
-
|
|
-
|
|
-
|
|
-
|
|
0%
|
|
-
|
|
0%
|
Bausch + Lomb /
International (d)
|
1,241
|
|
1,277
|
|
(54)
|
|
1,295
|
|
1%
|
|
51
|
|
6%
|
Salix (GI)
|
387
|
|
341
|
|
-
|
|
387
|
|
13%
|
|
8
|
|
16%
|
Dermatology
|
130
|
|
188
|
|
-
|
|
130
|
|
-31%
|
|
-
|
|
-31%
|
Dendreon
|
83
|
|
77
|
|
-
|
|
83
|
|
8%
|
|
5
|
|
15%
|
Dentistry
|
35
|
|
45
|
|
-
|
|
35
|
|
-22%
|
|
1
|
|
-20%
|
Other
revenue
|
1
|
|
2
|
|
-
|
|
1
|
|
-50%
|
|
-
|
|
-50%
|
Branded Rx
|
636
|
|
653
|
|
-
|
|
636
|
|
-3%
|
|
14
|
|
0%
|
Neuro
|
248
|
|
344
|
|
-
|
|
248
|
|
-28%
|
|
-
|
|
-28%
|
Generics
|
82
|
|
122
|
|
-
|
|
82
|
|
-33%
|
|
-
|
|
-33%
|
Solta
|
9
|
|
6
|
|
-
|
|
9
|
|
50%
|
|
-
|
|
50%
|
Obagi
|
16
|
|
14
|
|
-
|
|
16
|
|
14%
|
|
-
|
|
14%
|
Other
revenue
|
1
|
|
4
|
|
-
|
|
1
|
|
-75%
|
|
4
|
|
100%
|
U.S. Diversified
Products
|
356
|
|
490
|
|
-
|
|
356
|
|
-27%
|
|
4
|
|
-27%
|
Total
revenues
|
$
2,233
|
|
$
2,420
|
|
$
(54)
|
|
$
2,287
|
|
-5%
|
|
$
69
|
|
-3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
|
|
|
For the Six
Months Ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Q2 2017
|
|
(2)
Q2 2016
|
|
(3)
Currency impact
(a)
|
|
(4)
2017
excluding
currency
impact
(b)
|
|
(5)
% Change
|
|
(6)
Divestitures /
Discontinuations
|
|
Organic Growth
4/(2-6)
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Vision
Care
|
357
|
|
368
|
|
(4)
|
|
361
|
|
-2%
|
|
5
|
|
-1%
|
Global
Surgical
|
335
|
|
348
|
|
(7)
|
|
342
|
|
-2%
|
|
-
|
|
-2%
|
Global Consumer
Products
|
754
|
|
778
|
|
1
|
|
753
|
|
-3%
|
|
54
|
|
4%
|
Global Ophthalmology
RX
|
310
|
|
303
|
|
(4)
|
|
314
|
|
4%
|
|
1
|
|
4%
|
International
|
635
|
|
626
|
|
(81)
|
|
716
|
|
14%
|
|
12
|
|
17%
|
Other
revenue
|
-
|
|
-
|
|
-
|
|
-
|
|
0%
|
|
-
|
|
0%
|
Bausch + Lomb /
International
|
2,391
|
|
2,423
|
|
(95)
|
|
2,486
|
|
3%
|
|
72
|
|
6%
|
Salix (GI)
|
689
|
|
681
|
|
-
|
|
689
|
|
1%
|
|
14
|
|
3%
|
Dermatology
|
322
|
|
403
|
|
-
|
|
322
|
|
-20%
|
|
-
|
|
-20%
|
Dendreon
|
164
|
|
149
|
|
-
|
|
164
|
|
10%
|
|
5
|
|
14%
|
Dentistry
|
63
|
|
83
|
|
-
|
|
63
|
|
-24%
|
|
1
|
|
-23%
|
Other
revenue
|
2
|
|
2
|
|
-
|
|
2
|
|
0%
|
|
-
|
|
0%
|
Branded Rx
|
1,240
|
|
1,318
|
|
-
|
|
1,240
|
|
-6%
|
|
20
|
|
-4%
|
Neuro
|
491
|
|
766
|
|
-
|
|
491
|
|
-36%
|
|
-
|
|
-36%
|
Generics
|
167
|
|
242
|
|
-
|
|
167
|
|
-31%
|
|
-
|
|
-31%
|
Solta
|
17
|
|
12
|
|
-
|
|
17
|
|
42%
|
|
-
|
|
42%
|
Obagi
|
33
|
|
24
|
|
-
|
|
33
|
|
38%
|
|
-
|
|
38%
|
Other
revenue
|
3
|
|
7
|
|
-
|
|
3
|
|
-57%
|
|
4
|
|
0%
|
U.S. Diversified
Products
|
711
|
|
1,051
|
|
-
|
|
711
|
|
-32%
|
|
4
|
|
-32%
|
Total
revenues
|
$
4,342
|
|
$
4,792
|
|
$
(95)
|
|
$
4,437
|
|
-7%
|
|
$
96
|
|
-6%
|
|
|
|
(a) Currency impact
for constant currency sales is determined by comparing 2017
reported amounts adjusted to exclude currency impact, calculated
using 2016 monthly average exchange rates, to the actual 2016
reported amounts.
|
|
|
|
|
|
(b) To supplement the
financial measures prepared in accordance with U.S. generally
accepted accounting principles (GAAP), the Company uses certain
non-GAAP financial measures.
For additional information about the Company's use of such non-GAAP
financial measures, please refer to the body of the press release
to which these tables are attached.
|
|
|
|
|
|
(c) Organic Growth
Definitions: This measure provides growth
rates for businesses that have been owned for one year or
more.
|
|
|
((Current Year
Total sales – acquisitions within the last year - YoY FX impact)-
(Prior Year Total sales – divestitures
& discontinuations))/( Prior Year Total sales –
divestitures & discontinuations)
|
|
|
|
|
|
|
|
|
|
(d) Includes China
and Europe, Africa/Middle East Organic Growth:
|
|
|
|
|
|
|
(1)
Q2 2017
|
|
(2)
Q2 2016
|
|
(3)
Currency
impact
(a)
|
|
(4)
2017
excluding
currency
impact
(b)
|
|
(5)
% Change
|
|
(6)
Divestitures /
Discontinuations
|
|
Organic
Growth
4/(2-6)
(c)
|
China
|
81
|
|
78
|
|
(4)
|
|
85
|
|
9%
|
|
-
|
|
9%
|
Europe, Africa/Middle
East
|
459
|
|
457
|
|
(47)
|
|
506
|
|
11%
|
|
2
|
|
11%
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
Table
4
|
Consolidated
Balance Sheet and Other Data
|
|
|
|
|
(unaudited)
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
As
of
|
|
As
of
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
Cash
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,214
|
|
$
542
|
Restricted
cash
|
|
811
|
|
-
|
Cash, cash
equivalents and restricted cash
|
|
$
2,025
|
|
$
542
|
|
|
|
|
|
|
Debt
|
|
|
|
|
Revolving Credit
Facility
|
|
$
525
|
|
$
875
|
Series A-3 Tranche A
Term Loan Facility
|
|
-
|
|
1,016
|
Series A-4 Tranche A
Term Loan Facility
|
|
-
|
|
658
|
Series D-2 Tranche B
Term Loan Facility
|
|
-
|
|
1,048
|
Series C-2 Tranche B
Term Loan Facility
|
|
-
|
|
805
|
Series E-1 Tranche B
Term Loan Facility
|
|
-
|
|
2,429
|
Series F Tranche B
Term Loan Facility
|
|
6,472
|
|
3,815
|
Senior
Notes
|
|
21,450
|
|
19,188
|
Other
|
|
14
|
|
12
|
Total long-term
debt
|
|
28,461
|
|
29,846
|
Less: current
portion
|
|
(813)
|
|
(1)
|
Non-current portion
of long-term debt
|
|
$
27,648
|
|
$
29,845
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
June
30,
|
GAAP Cash
Flow
|
|
2017
|
|
2016
|
Cash provided by
operating activities
|
|
$
268
|
|
$
448
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
integration costs
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
June 30,
2017
|
by project
type
|
|
Cash
Paid
|
|
Expense
|
|
|
|
|
|
|
Restructuring
initiatives
|
|
|
$
15
|
|
$
7
|
Salix
Pharmaceuticals, Ltd.
|
|
|
2
|
|
5
|
Other
|
|
|
4
|
|
6
|
Total
|
|
|
$
21
|
|
$
18
|
|
|
|
|
|
|
|
|
|
|
|
|
by expense
type
|
|
Cash
Paid
|
|
Expense
|
|
|
|
|
|
|
Consulting,
duplicative labor, transition services, and other
|
|
|
$
13
|
|
$
3
|
Severance
payments
|
|
|
3
|
|
4
|
Facility closure
costs
|
|
|
5
|
|
11
|
Total
|
|
$
21
|
|
$
18
|
Investor
Contact:
|
Media
Contact:
|
Arthur
Shannon
|
Lainie
Keller
|
arthur.shannon@valeant.com
|
lainie.keller@valeant.com
|
(514)
856-3855
|
(908)
927-0617
|
(877) 281-6642 (toll
free)
|
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/valeant-announces-second-quarter-2017-results-300500818.html
SOURCE Valeant Pharmaceuticals International, Inc.