Actionable news
0
All posts from Actionable news
Actionable news in TEVA: TEVA PHARMACEUTICAL INDUSTRIES LIMITED AMERICAN DEPOSITARY SHARES,

Teva Pharmaceutical Industries: Teva Reports Third Quarter 2015 Results

The following excerpt is from the company's SEC filing.

Revenues of $4.8 billion, down 5% compared to the third quarter of 2014. Excluding the impact of foreign exchange fluctuations, revenues grew 3%.

Revenues for the first nine months of 2015 amounted to $14.8 billion, a decrease of 2% compared to the first nine months of 2014. In local currency terms, revenues increased 5%

Non-GAAP operating income of $1.6 billion, an increase of 2% compared to the third quarter of 2014. GAAP operating income of $1.0 billion.

Non-GAAP net income of $1.2 billion, up 1%. GAAP net income of $103 million.

Quarterly non-GAAP EPS of $1.35, an increase of 2%; GAAP diluted EPS of $0.12.

Non-GAAP EPS for the first nine months of 2015 amounted to $4.14, up 9% compared to $3.82 in the first nine months of 2014. GAAP EPS for the period was $1.27, compared to $2.76 in 2014.

Quarterly EBITDA of $1.7 billion, up 2% compared to the third quarter of 2014.

Strong cash flow from operations of $1.1 billion, despite payments of approximately $1.0 billion related to the modafinil settlement. Free cash flow of $1.0 billion.

Exchange rate fluctuations reduced revenues by $371 million and reduced non-GAAP operating profit by $72 million.

Raising EPS guidance for full-year 2015 to $5.40-5.45 from $5.15-5.40.

JERUSALEM--(BUSINESS WIRE)--October 29, 2015--Teva Pharmaceutical Industries Ltd. (NYSE and TASE:TEVA) today reported results for the quarter ended September 30, 2015.

“This was a transformative quarter for Teva as we continued to deliver on all financial, operational and strategic promises. We continue to focus efforts on our pending acquisition of Actavis Generics and the acquisition of Rimsa, while continuing to bolster our specialty pipeline, especially our late-stage assets, and further evolving our business model to position Teva for long-term, sustainable growth,” stated Erez Vigodman, Teva's President and CEO.

Vigodman continued, “Through all this, we have taken great steps towards changing Teva profoundly, in a way that further highlights what makes us unique in this industry, allows us to better serve patients and enables us to provide significant value for all of our stakeholders. We are pleased to announce we have raised our EPS guidance for full-year 2015 to $5.40-5.45 from $5.15-5.40 further supporting our continued belief in the strength of our business and continued momentum for growth as we look towards 2016.”

Third Quarter 2015 Results

in the third quarter of 2015 amounted to $4.8 billion, down 5% compared to the third quarter of 2014. Excluding the impact of foreign exchange fluctuations, revenues grew 3%.

Exchange rate

differences (net of profits from certain hedging transactions) between the third quarter of 2015 and the third quarter of 2014 decreased our revenues by $371 million, our non-GAAP operating income by $72 million and our GAAP operating income by $56 million.

Non-GAAP

gross profit

was $3.0 billion in the third quarter of 2015, down 3% from the third quarter of 2014. Non-GAAP

gross profit margin

was 61.8% in the third quarter of 2015, compared to 60.6% in the third quarter of 2014. GAAP gross profit was $2.8 billion in the third quarter of 2015, down 1% compared to the third quarter of 2014. GAAP gross profit margin was 57.5% in the quarter, compared to 55.5% in the third quarter of 2014.

Research and Development (R&D)

expenditures (excluding equity compensation expenses and expenses related to the cancellation of R&D projects in 2014) in the third quarter of 2015 amounted to $356 million, compared to $357 million in the third quarter of 2014. R&D expenses were 7.4% of revenues in the quarter, compared to 7.1% in the third quarter of 2014. R&D expenses related to our generic medicines segment amounted to $132 million, compared to $133 million in the third quarter of 2014. In local currency terms, expenses increased 3% as a result of additional development activities for the U.S. market. R&D expenses related to our specialty medicines segment amounted to $220 million, compared to $221 million in the third quarter of 2014. In local currency terms, expenses increased 1%, mainly as a result of development costs related to assets acquired in the Labrys and Auspex transactions.

Selling and Marketing (S&M)

expenditures (excluding amortization of purchased intangible assets and equity compensation expenses) amounted to $766 million, or 15.9% of revenues, in the third quarter of 2015, compared to $903 million, or 17.9% of revenues, in the third quarter of 2014. S&M expenses related to our generic medicines segment amounted to $295 million, a decrease of 24% compared to $387 million in the third quarter of 2014. In local currency terms, S&M expenses decreased 13%, mainly due to lower royalties related to our sales of budesonide (Pulmicort

) in the United States. S&M expenses related to our specialty medicines segment amounted to $417 million, a decrease of 11% compared to $470 million in the third quarter of 2014. In local currency terms, S&M expenses decreased 6%.

General and Administrative (G&A)

expenditures (excluding equity compensation expenses) amounted to $307 million in the third quarter of 2015, or 6.4% of revenues, compared to $283 million and 5.6% in the third quarter of 2014.

Quarterly non-GAAP

was $1.6 billion, an increase of 2% compared to the third quarter of 2014. Quarterly GAAP operating income was $1.0 billion in the third quarter of 2015, a decrease of 9% compared to $1.1 billion in the third quarter of 2014.

We calculate EBITDA as non-GAAP operating income (which already excludes amortization and certain other items) plus non-GAAP depreciation expenses for the period. In the third quarter of 2015, non-GAAP depreciation amounted to $111 million, compared to $113 million in the third quarter of 2014.

for the third quarter of 2015 amounted to $1.7 billion, up 2% compared to the third quarter of 2014.

financial expenses

amounted to $65 million in the third quarter of 2015, compared to $77 million in the third quarter of 2014. GAAP financial expenses for the third quarter of 2015 amounted to $697 million, compared to $84 million in the third quarter of 2014. The high expenses, on a GAAP basis, were mainly the result of a $623 million loss on our shares of Mylan, reflecting the price of Mylan’s shares as of September 30, 2015.

The provision for

for the third quarter of 2015 amounted to $319 million on pre-tax non-GAAP income of $1.5 billion, for a quarterly tax rate of 21%. The provision for non-GAAP tax in the third quarter of 2014 was $304 million on pre-tax non-GAAP income of $1.4 billion, for a quarterly tax rate of 21%. The provision for

GAAP tax

for the third quarter of 2015 amounted to $193 million, or 62%, on pre-tax income of $313 million. In the third quarter of 2014, the provision for GAAP tax amounted to $160 million, or 16%, on pre-tax income of $1.0 billion.

Non-GAAP net income

non-GAAP diluted EPS

were $1.2 billion and $1.35, respectively, in the third quarter of 2015, up 1% and 2%, respectively, compared to $1.1 billion and $1.33 in the third quarter of 2014. GAAP

and GAAP

were $103 million and $0.12, respectively, in the third quarter of 2015, compared to $876 million and $1.02, respectively, in the third quarter of 2014.

Non-GAAP information

: Net non-GAAP adjustments in the third quarter of 2015 amounted to $1,062 million. Non-GAAP net income and non-GAAP EPS for the quarter were adjusted to exclude the following items:

Financial expenses of $632 million, mainly reflecting the decline in the Mylan share price during the quarter;

Amortization of purchased intangible assets totaling $203 million, of which $196 million is included in cost of goods sold and the remaining $7 million in selling and marketing expenses;

Impairment of long-lived assets of $187 million;

Restructuring expenses of $70 million;

Contingent consideration of $67 million;

Acquisition expenses of $61 million;

Equity compensation of $24 million;

Costs related to regulatory actions taken in facilities and other non-GAAP items of $24 million;

Income from legal settlements and loss contingencies of $80 million; and

Related tax benefit of $126 million.

Teva believes that excluding such items facilitates investors' understanding of its business. See the attached tables for a reconciliation of the U.S. GAAP results to the adjusted non-GAAP figures.

Cash flow

from operations generated during the third quarter of 2015 amounted to $1.1 billion, compared to $1.4 billion in the third quarter of 2014, a decrease of 23%. The decrease was mainly due to payments of approximately $1.0 billion related to the modafinil antitrust settlement payment. Free cash flow, excluding net capital expenditures, amounted to $1.0 billion compared to $1.2 billion in the third quarter of 2014, a decrease of 19%.

Cash and investments

at September 30, 2015 decreased to $2.0 billion, compared to $2.8 billion at June 30, 2015, mainly due to the modafinil antitrust settlement payments and the decline in the price of our Mylan shares, as well as repayments of short term borrowings, partially offset by cash generated during the quarter.

For the third quarter of 2015, the weighted average

outstanding shares

for the fully diluted earnings per share calculation was 862 million on both a GAAP and non-GAAP basis. At September 30, 2015, the outstanding shares for calculating Teva's market capitalization were approximately 852 million.

Shareholders’ equity

was $22.9 billion at September 30, 2015, compared to $23.1 billion at June 30, 2015.

Segment Results for the Third Quarter 2015

Generic Medicines Segment

Three Months Ended September 30,

U.S.$ in millions / % of Segment Revenues

Revenues

2,202

100.0%

2,432

Gross profit

1,005

45.6%

1,078

44.3%

R&D expenses

132

6.0%

133

5.5%

S&M expenses

295

13.4%

387

15.9%

Segment profit*

578

26.2%

558

22.9%

* Segment profit consists of gross profit for the segment, less R&D and S&M expenses related to the segment. Segment profit does not include G&A expenses, amortization and certain other items.

Beginning in 2015, expenses related to equity compensation are excluded from our segment results. The data presented have been conformed to reflect the exclusion of equity compensation expenses for all periods.

Generic Medicines Revenues

Generic medicines revenues in the third quarter of 2015 amounted to $2.2 billion, a decrease of 9% compared to the third quarter of 2014. In local currency terms, revenues decreased 1%.

Generic revenues consisted of:

U.S. revenues of $1.0 billion, a decrease of 8% compared to the third quarter of 2014. The decrease resulted mainly from a decline in sales of budesonide (Pulmicort

), niacin ER (Niapsan

) and capecitabine (Xeloda

). These decreases were partially offset by sales of products sold in the third quarter of 2015 that were not sold in the third quarter of 2014, the most significant of which were esomeprazole (Nexium

) and...


More