Navigation Links
Mylan Third Quarter 2015 Constant Currency Adjusted Total Revenues Increase 36% and Adjusted Diluted EPS Increases 23% to $1.43
Date:10/30/2015

HERTFORDSHIRE, ENGLAND and PITTSBURGH, Oct. 30, 2015 /PRNewswire/ -- Mylan N.V. (Nasdaq: MYL) today announced its financial results for the quarter ended September 30, 2015.

Third Quarter 2015 Highlights

  • Adjusted total revenues of $2.71 billion, up 36% on a constant currency basis versus the prior year period. GAAP total revenues of $2.70 billion.
  • Excluding the impact of the acquisition of Abbott's non-U.S. developed markets specialty and branded generics business ("EPD Business"), adjusted total revenues increased 14% on a constant currency basis, reflecting the continued strength in our legacy business. Foreign currency exchange rates unfavorably impacted adjusted total revenues in Q3 by $122 million.
  • Generics segment adjusted third party net sales of $2.26 billion, up 48% on a constant currency basis. GAAP Generics segment third party net sales of $2.24 billion. Excluding the EPD Business, Generics segment adjusted third party net sales increased 19% on a constant currency basis. Both including and excluding the EPD Business, all regions in the generics segment showed positive growth.
  • Specialty segment third party net sales of $437.8 million, down 5%
  • Adjusted gross profit of $1.58 billion, up 39%; GAAP gross profit of $1.32 billion, up 30%
  • Adjusted gross margin of 58%, up 400 basis points; GAAP gross margin of 49%, flat
  • Adjusted diluted earnings per ordinary share ("EPS") of $1.43, up 23%; GAAP diluted EPS of $0.83, down 34%
  • Adjusted cash provided by operating activities for Q3 of $1.13 billion, up 139%; GAAP net cash provided by operating activities for Q3 of $975 million, up 122%
  • Adjusted free cash flow for Q3 of $1.04 billion, up 158%
  • Mylan CEO Heather Bresch commented, "Our outstanding third quarter results underscore the diversity of Mylan's platform and organic growth capabilities, which allows us to successfully identify and integrate strategic acquisitions and drive sustainable long-term growth and shareholder value creation. With our business continuing to hit on all cylinders, as well as the recent developments with respect to EpiPen® Auto-Injector, we are expecting to be at the high end of our 2015 guidance of $4.15 to $4.35 in adjusted diluted EPS."

    Mylan CFO John Sheehan added, "Mylan's exceptional third quarter results reflect double digit growth in our legacy business as well as enhanced double digit growth with the addition of the EPD Business. As of the end of the third quarter, our debt to adjusted EBITDA leverage was 2.0 times and our adjusted cash provided by operating activities was an impressive record of $1.62 billion year-to-date. Mylan continues to have ample borrowing capacity and financial firepower to execute on strategic opportunities while maintaining our commitment to an investment grade credit rating."Adjusted Total RevenuesThree Months EndedSeptember 30,(Unaudited; in millions)20152014Percent ChangeAdjusted Total Revenues*

    $

    2,712.3$

    2,084.030%Generics Adjusted Third Party Net Sales*

    2,255.51,607.440%North America

    1,079.6841.828%Europe (adjusted)*

    629.0351.579%Rest of World

    546.9414.132%Specialty Third Party Net Sales

    437.8462.0(5)%Other Revenues

    19.014.630%*For the three months ended September 30, 2015, GAAP total revenues were $2,695.2 million, GAAP Generics third party net sales were $2,238.4 million and GAAP third party net sales from Europe were $611.9 million. Refer to the non-GAAP reconciliations for the third party net sales from Europe, Generics third party net sales and total revenues in the non-GAAP financial measures for the directly comparable GAAP financial measures.


    Generics Segment Revenues

    Generics segment adjusted third party net sales were $2.26 billion for the quarter, an increase of 40% when compared to the prior year period. GAAP Generics segment third party net sales were $2.24 billion. When translating adjusted third party net sales for the current quarter at prior year comparative period exchange rates ("constant currency"), adjusted third party net sales increased by 48%.

  • Third party net sales from North America were $1.08 billion for the quarter, an increase of 28% when compared to the prior year period. This increase was primarily driven by net sales from new products, and to a lesser extent, net sales from the acquired EPD Business of approximately $42 million. Also contributing to the increase were higher volumes on existing products, partially offset by lower pricing. The effect of foreign currency translation on third party net sales was insignificant in North America.
  • Adjusted third party net sales from Europe were $629.0 million for the quarter, an increase of 79% when compared to the prior year period. GAAP third party net sales from Europe were $611.9 million. Excluded from adjusted revenues during the quarter is a one-time customer incentive of $17.1 million that was provided in Europe as a result of the acquired EPD Business. Constant currency adjusted third party net sales increased by 95%. This increase was primarily driven by net sales from the acquired EPD Business of approximately $314 million, and to a lesser extent, net sales from new products. Higher volumes on existing products, primarily in France and Italy, were offset by lower pricing throughout Europe.
  • Third party net sales from Rest of World were $546.9 million for the quarter, an increase of 32% when compared to the prior year period. Constant currency third party net sales increased by 47%. This increase was primarily driven by net sales from the acquired EPD Business of approximately $105 million, new product launches in Australia and Japan and higher third party net sales volumes in India, predominately from growth in our anti-retroviral franchise, and Brazil. These increases were partially offset by lower volumes on existing products in Japan and lower pricing throughout this region.
  • Specialty Segment Revenues

    Specialty segment reported third party net sales of $437.8 million for the quarter, a decrease of 5% when compared to the prior year period. This decrease was primarily due to a lower average net selling price for the EpiPen® Auto-Injector as a result of competitive market conditions.

    Total Gross Profit

    Adjusted gross profit was $1.58 billion and adjusted gross margins were 58% for the quarter as compared to adjusted gross profit of $1.13 billion and adjusted gross margins of 54% in the comparable prior year period. The current quarter increase was primarily due to net sales from the acquired EPD Business, new product introductions and increased margins on existing products in North America. GAAP gross profit was $1.32 billion and $1.01 billion for the third quarter of 2015 and 2014, respectively. GAAP gross margins were 49% in both periods.

    Total Profitability

    Adjusted earnings from operations for the quarter were $911.9 million, up 38% from the comparable prior year period. GAAP earnings from operations were $601.1 million for the quarter, an increase of 21% from the comparable prior year period. R&D expense increased due to the impact of the acquired EPD Business. SG&A expense increased from the prior year period as a result of the impact the acquired EPD Business as well as acquisition and integration related costs.

    EBITDA, which is defined as net earnings (excluding the non-controlling interest and losses from equity method investees) plus income taxes, interest expense, depreciation and amortization, was $835.7 million for the quarter and $652.7 million for the comparable prior year quarter. After adjusting for certain items as further detailed in the reconciliation below, adjusted EBITDA was $986.9 million for the quarter and $736.0 million for the comparable prior year period. Adjusted net earnings attributable to Mylan N.V. increased by $271.0 million to $733.8 million compared to $462.8 million for the prior year comparable period. Adjusted diluted EPS increased 23% to $1.43 compared to $1.16 in the prior year comparable period. GAAP net earnings attributable to Mylan N.V. decreased by $70.5 million to $428.6 million as compared to $499.1 million for the prior year comparable period. This decrease is partially attributable to a tax benefit recorded in the prior year period of approximately $156 million related to the merger of the Company's wholly owned subsidiaries, Agila Specialties Private Limited and Onco Therapies Limited, into Mylan Laboratories Limited. GAAP diluted EPS decreased from $1.26 to $0.83 when compared to the prior year comparable period due to the impact of ordinary shares issued in the acquisition of the EPD Business, transaction costs incurred in the current year period and a gain related to the resolution of certain contingent consideration in the prior year period.

    Cash Flow

    Adjusted cash provided by operating activities was $1.13 billion for the three months ended September 30, 2015 compared to $470 million for the comparable prior year period. On a GAAP basis, net cash provided by operating activities was $975 million for the three months ended September 30, 2015 compared to $440 million for the comparable prior year period. Capital expenditures were approximately $85 million for the three months ended September 30, 2015 as compared to approximately $67 million for the comparable prior year period. Adjusted free cash flow was $1.04 billion for the three months ended September 30, 2015 compared to $403 million in the prior year period.

    Adjusted cash provided by operating activities was $1.62 billion for the nine months ended September 30, 2015 compared to $1.03 billion for the comparable prior year period. On a GAAP basis, net cash provided by operating activities was $1.36 billion for the nine months ended September 30, 2015 compared to $888 million for the comparable prior year period. The increase in net cash provided by operating activities for the quarter and year to date period was primarily due to an increase in adjusted earnings combined with our ongoing working capital initiatives. Capital expenditures were approximately $207 million for the nine months ended September 30, 2015 as compared to approximately $220 million for the nine months ended September 30, 2014. Adjusted free cash flow was $1.41 billion for the nine months ended September 30, 2015 compared to $818 million in the prior year period.

    Conference Call

    Mylan will host a conference call and live webcast, today, October 30, 2015, at 10:00 am ET, in conjunction with the release of its financial results. The dial-in number to access the call is 800.514.4861 or 678.809.2405 for international callers. To access the live webcast and slide presentation, please log onto Mylan's website (www.mylan.com) at least 15 minutes before the event is to begin to register and download or install any necessary software.

    Non-GAAP Financial Measures

    This press release includes the presentation and discussion of certain financial information that differs from what is reported under accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures, including, but not limited to, adjusted diluted EPS, adjusted cash provided by operating activities, adjusted third party net sales from Europe, adjusted Generics segment third party net sales, adjusted third party net sales, adjusted total revenues, adjusted gross profit, adjusted gross margins, adjusted earnings from operations, adjusted net earnings attributable to Mylan N.V. ("Mylan" or the "Company"), adjusted constant currency total revenues, adjusted constant currency third party net sales, constant currency adjusted total revenues, constant currency adjusted third party net sales, EBITDA, adjusted EBITDA, debt to adjusted EBITDA leverage, and adjusted free cash flow, are presented in order to supplement investors' and other readers' understanding and assessment of the Company's financial performance. Management uses these measures internally for forecasting, budgeting and measuring its operating performance. In addition, primarily due to acquisitions, Mylan believes that an evaluation of its ongoing operations (and comparisons of its current operations with historical and future operations) would be difficult if the disclosure of its financial results were limited to financial measures prepared only in accordance with GAAP. In addition, the Company believes that including EBITDA and supplemental adjustments applied in presenting adjusted EBITDA pursuant to our debt agreements is appropriate to provide additional information to investors to demonstrate the Company's ability to comply with financial debt covenants (which are calculated using a measure similar to adjusted EBITDA) and assess the Company's ability to incur additional indebtedness. We also report sales performance using the non-GAAP financial measure of "constant currency" total revenues, adjusted total revenues, third party net sales, and adjusted third party net sales. This measure provides information on the change in net sales assuming that foreign currency exchange rates had not changed between the prior and current period. The comparisons presented as constant currency rates reflect comparative local currency sales at the prior year's foreign exchange rates. We routinely evaluate our third party net sales performance at constant currency so that sales results can be viewed without the impact of foreign currency exchange rates, thereby facilitating a period-to-period comparison of our operational activities, and we believe that this presentation also provides useful information to investors for the same reason. The "Summary of Adjusted Revenues by Segment" table below compares adjusted third party net sales on an actual and constant currency basis for each reportable segment and the geographic regions within the Generics segment for the three and nine months ended September 30, 2015 and 2014. Also, set forth below, Mylan has provided reconciliations of such non-GAAP financial measures to the most directly comparable GAAP financial measures. Investors and other readers are encouraged to review the related GAAP financial measures and the reconciliations of the non-GAAP measures to their most directly comparable GAAP measures set forth below, and investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with GAAP.

    Below is a reconciliation of GAAP net earnings attributable to Mylan N.V. and GAAP diluted EPS to adjusted net earnings attributable to Mylan N.V. and adjusted diluted EPS for the three and nine month period compared to the respective prior year period (in millions, except per share amounts):Three Months Ended September 30,Nine Months Ended September 30,2015201420152014GAAP net earnings attributable to Mylan N.V. and GAAP diluted EPS

    $

    428.6$

    0.83$

    499.1$

    1.26$

    653.0$

    1.32$

    740.2$

    1.86Purchase accounting related amortization (primarily included in cost of sales)

    219.295.3609.8289.8Litigation settlements, net

    2.320.919.147.2Interest expense, primarily amortization of convertible debt discount

    11.511.739.934.1Non-cash accretion and fair value adjustments of contingent consideration liability

    9.79.028.526.1Clean energy investments pre-tax loss (a)

    24.119.868.356.4Financing related costs (included in other expense (income), net)

    40.840.8Acquisition related costs (primarily included in cost of sales and selling, general and administrative expense)

    92.331.5243.781.0Acquisition related customer incentive (included in third party net sales)

    17.117.1Restructuring and other special items included in:Cost of sales

    5.111.819.832.0Research and development expense

    0.61.018.517.9Selling, general and administrative expense

    8.67.741.348.9Other income (expense), net

    (1.2)(4.0)6.9(3.7)Tax effect of the above items and other income tax related items (b)

    (124.9)(241.0)(289.5)(373.4)Adjusted net earnings attributable to Mylan N.V. and adjusted diluted EPS

    $

    733.8$

    1.43$

    462.8$

    1.16$

    1,517.2$

    3.08$

    996.5$

    2.51Weighted average diluted ordinary shares outstanding

    514.0397.3493.2397.1(a)

    Adjustment represents exclusion of the pre-tax loss related to Mylan's clean energy investments, the activities of which qualify for income
    tax credits under Section 45 of the Internal Revenue Code of 1986, as amended (the "Code"). The amount is included in other expense
    (income), net in the Condensed Consolidated Statements of Operations.(b) 

    Adjustment for other income tax related items includes the exclusion from adjusted net earnings for the three and nine months ended
    September 30, 2014 of the tax benefit of approximately $156 million related to the merger of the Company's wholly owned subsidiaries,
    Agila Specialties Private Limited and Onco Therapies Limited, into Mylan Laboratories Limited.

    Below is a reconciliation of GAAP net earnings attributable to Mylan N.V. to EBITDA and adjusted EBITDA for the three and nine month period compared to the respective prior year period (in millions):

    Three Months EndedNine Months EndedSeptember 30,September 30,2015201420152014GAAP net earnings attributable to Mylan N.V.

    $

    428.6$

    499.1$

    653.0$

    740.2Add / (deduct) adjustments:Net contribution attributable to the noncontrolling interest and equity method investments

    27.822.877.767.9Income taxes

    26.5(86.8)44.0(40.5)
    '/>"/>

    SOURCE Mylan N.V.
    Copyright©2015 PR Newswire.
    All rights reserved


    Related medicine technology :

    1. Mylan Specialty L.P. Announces Partnership with Baseball Teams Across Country to Raise Awareness of Potentially Life-Threatening Allergies
    2. New Breakthroughs Allow Companies to Expand their Reach - Research Report on Perrigo, Auxilium, Actavis, Mylan, and Salix
    3. Mylan to Speak at the Goldman Sachs 34th Annual Global Healthcare Conference
    4. Mylan Specialty L.P. Joins Forces with Adrian Peterson and Jo Frost to Launch Anaphylaxis Preparedness Campaign
    5. Roger Graham Named President of Mylan Specialty
    6. Mylan to Host Investor Day on Aug. 1, 2013 in New York City
    7. Third Circuit Rules in Mylans Favor Regarding Paroxetine Hydrochloride Extended-Release Tablets, Sending Mylans Breach of Contract Claim Against GSK to Trial
    8. Mylan Reports a 13% Increase in Second Quarter 2013 Adjusted Diluted EPS to $0.68
    9. Mylan Confirms Approval of sANDA for Bupropion Hydrochloride Extended-Release Tablets USP (XL), 300 mg
    10. Mylan Acquisition of Agila Receives Approval from Indias Foreign Investment Promotion Board and Cabinet Committee on Economic Affairs
    11. Mylan Announces Completion of Transdermal Patch Facility Expansion Project in St. Albans, Vt.
    Post Your Comments:
    *Name:
    *Comment:
    *Email:
    (Date:10/11/2019)... ... ... Based on data for the first eight months of the year, 2019 is on ... August 31, 7,786 deceased donors have provided 23,797 organs for transplant according to the ... Association of Organ Procurement Organizations (AOPO) projects 2019 could see an additional 1,000 donors ...
    (Date:10/10/2019)... PLEASANTVILLE, N.Y. (PRWEB) , ... October 10, 2019 ... ... Ping Pong Parkinson Championships , 2019 ITTF Parkinson World Table Tennis Championships, ... unable to play music and perform in public. So, he sought to find ...
    (Date:10/9/2019)... ... October 09, 2019 , ... The 11th annual ... Yoga Science and AMI Meditation for the relief and prevention of physician burnout. ... October 22-26, 2019 at the Cranwell Resort and Spa in Lenox, Massachusetts, is ...
    Breaking Medicine Technology:
    (Date:10/10/2019)... SAN MATEO, Calif. (PRWEB) , ... October 10, 2019 , ... ... 2019 Senior Living Report on the Best and Worst Places for Seniors to Live. ... housing options, community engagement, transportation, quality of life and workforce development. , According ...
    (Date:10/8/2019)... HUNTINGTON BEACH, Calif. (PRWEB) , ... October 08, 2019 , ... ... CA. , "We are happy to announce the expansion of our services to better ... "We had the opportunity over this last year to see the extraordinary impact this ...
    (Date:10/8/2019)... (PRWEB) , ... October 08, 2019 , ... ... in West Hartford, CT, help patients with missing teeth restore their smiles with ... team of oral surgeons relies on advanced i-CAT® 3D Cone Beam CT imaging, ...
    (Date:10/8/2019)... ... October 08, 2019 , ... At the ... 4medica® President Gregg Church will inform conference attendees how the 4medica ... management-by starting with the right, clean patient data. The single platform interfaces to ...
    (Date:10/8/2019)... , ... October 08, 2019 , ... ... Healthcare to seamlessly integrate skills and procedures content from Dynamic Health™ ... help nurses and allied health professionals master critical skills. MCN provides custom policy ...
    Breaking Medicine News(10 mins):