|
|
|
|
|
|
|
|
|
|
Gross | Gross | |||||||||||||||
(in $000’s) | Amortized | Unrecognized | Unrecognized | Fair | ||||||||||||
March 31, 2011 | Cost | Gains | Losses | Value | ||||||||||||
Commercial paper
|
$ | 96,253 | $ | 26 | $ | (1 | ) | $ | 96,278 | |||||||
Government sponsored
enterprise obligations
|
55,190 | 24 | — | 55,214 | ||||||||||||
Corporate bonds
|
39,596 | 4 | (15 | ) | 39,585 | |||||||||||
Certificates of deposit
|
18,186 | 13 | (2 | ) | 18,197 | |||||||||||
|
||||||||||||||||
Total short-term investments
|
$ | 209,225 | $ | 67 | $ | (18 | ) | $ | 209,274 | |||||||
|
Gross | Gross | |||||||||||||||
(in $000’s) | Amortized | Unrecognized | Unrecognized | Fair | ||||||||||||
December 31, 2010 | Cost | Gains | Losses | Value | ||||||||||||
Commercial paper
|
$ | 168,260 | $ | 36 | $ | (7 | ) | $ | 168,289 | |||||||
Government sponsored
enterprise obligations
|
56,866 | 40 | (1 | ) | 56,905 | |||||||||||
Corporate bonds
|
18,316 | 15 | (13 | ) | 18,318 | |||||||||||
Certificates of deposit
|
13,163 | 13 | — | 13,176 | ||||||||||||
|
||||||||||||||||
Total short-term investments
|
$ | 256,605 | $ | 104 | $ | (21 | ) | $ | 256,688 | |||||||
|
|
March 31, | December 31, | |||||||
(in $000’s) | 2011 | 2010 | ||||||
Gross accounts receivable
|
$ | 125,945 | $ | 123,941 | ||||
Less: Chargeback reserve
|
(9,743 | ) | (14,918 | ) | ||||
Less: Rebate reserve
|
(16,174 | ) | (20,892 | ) | ||||
Less: Other deductions
|
(5,748 | ) | (6,077 | ) | ||||
|
||||||||
Accounts receivable, net
|
$ | 94,280 | $ | 82,054 | ||||
|
(in $000’s) | March 31, | December 31, | ||||||
Chargeback reserve | 2011 | 2010 | ||||||
Beginning balance
|
$ | 14,918 | $ | 21,448 | ||||
Provision recorded during the period
|
35,216 | 181,566 | ||||||
Credits issued during the period
|
(40,391 | ) | (188,096 | ) | ||||
|
||||||||
Ending balance
|
$ | 9,743 | $ | 14,918 | ||||
|
(in $000’s) | March 31, | December 31 | ||||||
Rebate reserve | 2011 | 2010 | ||||||
Beginning balance
|
$ | 20,892 | $ | 37,781 | ||||
Provision recorded during the period
|
12,709 | 91,064 | ||||||
Credits issued during the period
|
(17,427 | ) | (107,953 | ) | ||||
|
||||||||
Ending balance
|
$ | 16,174 | $ | 20,892 | ||||
|
|
March 31, | December 31, | |||||||
(in $000’s) | 2011 | 2010 | ||||||
Raw materials
|
$ | 27,609 | $ | 27,871 | ||||
Work in process
|
3,174 | 2,575 | ||||||
Finished goods
|
23,482 | 20,545 | ||||||
|
||||||||
Total inventory, net
|
$ | 54,265 | $ | 50,991 | ||||
Less: Non-current inventory, net
|
(5,425 | ) | (6,442 | ) | ||||
|
||||||||
Total inventory-current, net
|
$ | 48,840 | $ | 44,549 | ||||
|
|
March 31, | December 31, | |||||||
(in $000’s) | 2011 | 2010 | ||||||
Land
|
$ | 3,670 | $ | 2,270 | ||||
Buildings and improvements
|
83,913 | 82,836 | ||||||
Equipment
|
70,610 | 70,785 | ||||||
Office furniture and equipment
|
9,188 | 9,077 | ||||||
Construction-in-progress
|
7,083 | 3,958 | ||||||
|
||||||||
Property, plant and equipment, gross
|
$ | 174,463 | $ | 168,926 | ||||
Less: Accumulated depreciation
|
(65,290 | ) | (62,646 | ) | ||||
|
||||||||
Property, plant and equipment, net
|
$ | 109,173 | $ | 106,280 | ||||
|
|
March 31, | December 31 | |||||||
(in $000’s) | 2011 | 2010 | ||||||
Payroll-related expenses
|
$ | 11,179 | $ | 16,796 | ||||
Product returns
|
30,275 | 33,755 | ||||||
Medicaid rebates
|
10,812 | 12,475 | ||||||
Physician detailing sales force fees
|
1,625 | 2,308 | ||||||
Legal and professional fees
|
6,033 | 3,143 | ||||||
Shelf stock adjustments
|
1,328 | 281 | ||||||
Other
|
8,095 | 4,030 | ||||||
|
||||||||
Total accrued expenses
|
$ | 69,347 | $ | 72,788 | ||||
|
March 31, | December 31, | |||||||
Product Return Reserve | 2011 | 2010 | ||||||
(in $000’s) | ||||||||
Beginning balance
|
$ | 33,755 | $ | 22,114 | ||||
Provision related to
sales recorded in the period
|
2,706 | 15,821 | ||||||
Credits issued during the period
|
(6,186 | ) | (4,180 | ) | ||||
|
||||||||
Ending balance
|
$ | 30,275 | $ | 33,755 | ||||
|
|
|
• | The outstanding principal amount of all revolving credit loans, together with accrued and unpaid interest thereon, will be due and payable on the maturity date, which will occur four years following the February 11, 2011 closing date. |
• | Borrowings under the Revolving Credit Facility will bear interest, at the Company’s option, at either an Alternate Base Rate (as defined in the Credit Agreement) plus the applicable margin in effect from time to time ranging from 0.5% to 1.5%, or a LIBOR Rate (as defined in the Credit Agreement) plus the applicable margin in effect from time to time ranging from 1.5% to 2.5%. The Company is also required to pay an unused commitment fee ranging from 0.25% to 0.45% per annum based on the daily average undrawn portion of the Revolving Credit Facility. The applicable margin described above and the unused commitment fee in effect at any given time will be determined based on the Company’s Total Net Leverage Ratio (as defined in the Credit Agreement), which is based upon the Company’s consolidated total debt, net of unrestricted cash in excess of $100 million, compared to Consolidated EBITDA (as defined in the Credit Agreement) for the immediately preceding four quarters. |
• | The Company may prepay any outstanding loan under the Revolving Credit Facility without premium or penalty. |
• | The Company is required under the Credit Agreement and the Security Agreement to comply with a number of affirmative, negative and financial covenants. Among other things, these covenants (i) require the Company to provide periodic reports, notices of material events and information regarding collateral, (ii) restrict the Company’ ability, subject to certain exceptions and baskets, to incur additional indebtedness, grant liens on assets, undergo fundamental changes, change the nature of its business, make investments, undertake acquisitions, sell assets, make restricted payments (including the ability to pay dividends and repurchase stock) or engage in affiliate transactions, and (iii) require the Company to maintain a Total Net Leverage Ratio (which is, generally, total funded debt, net of unrestricted cash in excess of $100 million, over EBITDA for the preceding four quarters) of less than 3.75 to 1.00, a Senior Secured Leverage Ratio (which is, generally, total senior secured debt over EBITDA for the preceding four quarters) of less than 2.50 to 1.00 and a Fixed Charge Coverage Ratio (which is, generally, EBITDA for the preceding four quarters over the sum of cash interest expense, cash tax payments, scheduled funded debt payments and capital expenditures during such four quarter period) of at least 2.00 to 1.00 (with each such ratio as more particularly defined as set forth in the Credit Agreement). As of March 31, 2011, the Company was in compliance with the various covenants contained in the Credit Agreement and the Security Agreement. |
• | The Credit Agreement contains customary events of default (subject to customary grace periods, cure rights and materiality thresholds), including, among others, failure to pay principal, interest or fees, violation of covenants, material inaccuracy of representations and warranties, cross-default and cross-acceleration of material indebtedness and other obligations, certain bankruptcy and insolvency events, certain judgments, certain events related to the Employee Retirement Income Security Act of 1974, as amended, and a change of control. |
• | Following an event of default under the Credit Agreement, the Administrative Agent would be entitled to take various actions, including the acceleration of amounts due under the Credit Agreement and seek other remedies that may be taken by secured creditors. |
|
Three Months | ||||||||
Ended | Inception | |||||||
(in $000’s) | March 31, | Through | ||||||
Deferred revenue | 2011 | Dec 31, 2010 | ||||||
Beginning balance
|
$ | 4,410 | $ | — | ||||
Additions:
|
||||||||
Product-related and cost sharing
|
— | 427,365 | ||||||
Exclusivity charges
|
— | (50,600 | ) | |||||
All other
|
— | 12,527 | ||||||
|
||||||||
Total additions
|
$ | — | $ | 389,292 | ||||
|
||||||||
Less:
|
||||||||
Amount recognized
|
(288 | ) | (188,442 | ) | ||||
Accounting adjustment
|
— | (196,440 | ) | |||||
|
||||||||
Total deferred revenue
|
$ | 4,122 | $ | 4,410 | ||||
|
Three Months | ||||||||
(in $000’s) | Ended | Inception | ||||||
Deferred product | March 31, | Through | ||||||
manufacturing costs | 2011 | Dec 31, 2010 | ||||||
Beginning balance
|
$ | — | $ | — | ||||
Additions
|
— | 182,981 | ||||||
Less:
|
||||||||
Amount recognized
|
— | (87,555 | ) | |||||
Accounting adjustment
|
— | (95,426 | ) | |||||
|
||||||||
Total deferred product
manufacturing costs
|
$ | — | $ | — | ||||
|
Three Months | ||||||||
Ended | Inception | |||||||
(in $000’s) | March 31, | Through | ||||||
Deferred revenue | 2011 | Dec 31, 2010 | ||||||
Beginning balance
|
$ | 11,382 | $ | — | ||||
Additions:
|
||||||||
Upfront fees and milestone
payments
|
— | 8,436 | ||||||
Cost-sharing and other
|
— | 1,642 | ||||||
Product-related deferrals
|
910 | 87,934 | ||||||
|
||||||||
Total additions
|
$ | 910 | $ | 98,012 | ||||
|
||||||||
Less: amount recognized
|
(1,943 | ) | (86,630 | ) | ||||
|
||||||||
Total deferred revenue
|
$ | 10,349 | $ | 11,382 | ||||
|
Three Months | ||||||||
(in $000’s) | Ended | Inception | ||||||
Deferred product | March 31, | Through | ||||||
manufacturing costs | 2011 | Dec 31, 2010 | ||||||
Beginning balance
|
$ | 10,235 | $ | — | ||||
Additions
|
478 | 81,093 | ||||||
Less: amount recognized
|
(1,357 | ) | (70,858 | ) | ||||
|
||||||||
Total deferred product
manufacturing costs
|
$ | 9,356 | $ | 10,235 | ||||
|
|
|
Three Months Ended: | ||||||||
March 31, | March 31, | |||||||
(in $000’s) | 2011 | 2010 | ||||||
|
||||||||
Net income
|
$ | 13,863 | $ | 131,485 | ||||
Currency translation adjustments
|
(426 | ) | 347 | |||||
|
||||||||
Comprehensive income
|
13,437 | 131,832 | ||||||
|
||||||||
Comprehensive income attributable to
the noncontrolling interest
|
— | — | ||||||
|
||||||||
|
||||||||
Comprehensive income attributable
to Impax Laboratories, Inc.
|
$ | 13,437 | $ | 131,832 | ||||
|
|
(in $000’s) | Global | Impax | Corporate | Total | ||||||||||||
Three Months Ended March 31, 2011 | Division | Division | and Other | Company | ||||||||||||
Revenue, net
|
$ | 103,348 | $ | 5,303 | $ | — | $ | 108,651 | ||||||||
Cost of revenue
|
47,174 | 2,940 | — | 50,114 | ||||||||||||
Research and development
|
9,776 | 9,714 | — | 19,490 | ||||||||||||
Patent Litigation
|
1,774 | — | — | 1,774 | ||||||||||||
Income (loss) before provision for income taxes
|
$ | 41,693 | $ | (8,458 | ) | $ | (12,233 | ) | $ | 21,002 |
(in $000’s) | Global | Impax | Corporate | Total | ||||||||||||
Three Months Ended March 31, 2010 | Division | Division | and Other | Company | ||||||||||||
Revenue, net
|
$ | 319,830 | $ | 3,503 | $ | — | $ | 323,333 | ||||||||
Cost of revenue
|
76,432 | 3,144 | — | 79,576 | ||||||||||||
Research and development
|
9,435 | 8,874 | — | 18,309 | ||||||||||||
Patent Litigation
|
1,984 | — | — | 1,984 | ||||||||||||
Income (loss) before provision for income taxes
|
$ | 228,645 | $ | (9,324 | ) | $ | (8,324 | ) | $ | 210,997 |
|
Daiichi Sankyo, Inc. et al. v. Impax Laboratories, Inc. (Colesevelam Powder) |
|
Quarter Ended: | ||||
(in $000’s except per share amounts) | March 31, 2011 | |||
Revenue:
|
||||
Global Product sales, gross
|
$ | 151,440 | ||
Less:
|
||||
Chargebacks
|
35,216 | |||
Rebates
|
12,709 | |||
Product Returns
|
2,706 | |||
Other credits
|
8,863 | |||
|
||||
Global Product sales, net
|
91,946 | |||
|
||||
|
||||
Private Label Product sales
|
392 | |||
Rx Partner
|
4,120 | |||
OTC Partner
|
1,943 | |||
Research Partner
|
6,715 | |||
Promotional Partner
|
3,535 | |||
|
||||
Total revenues
|
108,651 | |||
|
||||
|
||||
Gross profit
|
58,537 | |||
|
||||
Net income
|
$ | 13,863 | ||
|
||||
|
||||
Net income per share (basic)
|
$ | 0.22 | ||
|
||||
Net income per share (diluted)
|
$ | 0.21 | ||
|
||||
|
||||
Weighted Average:
|
||||
common shares outstanding:
|
||||
Basic
|
63,390,527 | |||
|
||||
Diluted
|
67,044,266 | |||
|
Quarter Ended: | ||||
(in $000’s except per share amounts) | March 31, 2010 | |||
Revenue:
|
||||
Global Product sales, gross
|
$ | 425,986 | ||
Less:
|
||||
Chargebacks
|
56,168 | |||
Rebates
|
29,425 | |||
Product Returns
|
7,400 | |||
Other credits
|
23,888 | |||
|
||||
Global Product sales, net
|
309,105 | |||
|
||||
|
||||
Private Label Product sales
|
672 | |||
Rx Partner
|
4,903 | |||
OTC Partner
|
1,765 | |||
Research Partner
|
3,385 | |||
Promotional Partner
|
3,503 | |||
|
||||
Total revenues
|
323,333 | |||
|
||||
|
||||
Gross profit
|
243,757 | |||
|
||||
Net income
|
$ | 131,485 | ||
|
||||
|
||||
Net income per share (basic)
|
$ | 2.16 | ||
|
||||
Net income per share (diluted)
|
$ | 2.06 | ||
|
||||
|
||||
Weighted Average:
|
||||
common shares outstanding:
|
||||
Basic
|
61,008,015 | |||
|
||||
Diluted
|
63,865,678 | |||
|