Actionable news
0
All posts from Actionable news
Actionable news in DPLO: DIPLOMAT PHARMACY Inc,

Diplomat Pharmacy: Diplomat Announces 3Rd Quarter Financial Results

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

3rd Quarter Revenue Increased 59%, Net Income Increased 251%, Adjusted EBITDA Increased 212%

Raising Full Year 2015 Guidance

FLINT, Mich., November 3, 2015 /PRNewswire/ Diplomat Pharmacy, Inc. (NYSE: DPLO), the nations largest independent specialty pharmacy, announced financial results for the quarter ended September 30, 2015. All comparisons, unless otherwise noted, are to the quarter ended September 30, 2014.

Third Quarter 2015 Highlights include:

Revenue of $947 million, an increase of 59% or $351 million

32% organic revenue growth

Total prescriptions dispensed of 24 5,000, an increase of 17%

Gross margin of 8.0% versus 6.7%

Adjusted EBITDA of $33.0 million, an increase of 212% or $22.4 million

Adjusted EBITDA margin of 3.5% versus 1.8%

Adjusted EPS of $0.26 versus $0.19

Phil Hagerman, Chairman and CEO of Diplomat, commented During the third quarter, we continued to strengthen our leadership position in the specialty pharmacy industry with 59% revenue growth and 212% adjusted EBITDA growth. In fact, the 32% growth in organic revenue was our highest organic growth quarter yet this year. Across the entire organization, this was another very successful quarter as we saw tremendous growth in our core business, including our recent acquisitions, which are performing well ahead of our expectations. We are incredibly excited about our industry and its growth potential. There remains a rich pipeline of drugs in development that lend themselves to the specialty pharmacy model and Im very confident in our ability to continue to win access to limited distribution panels. In the wake of such a strong quarter, we are raising our outlook for the remainder of 2015.

Third Quarter Financial Summary:

Revenue for the third quarter of 2015 was $947 million, compared to $596 million in the third quarter of 2014, an increase of $351 million or 59%. The increase was primarily the result of approximately $119 million of revenue from drugs that were new to the market or newly dispensed by Diplomat and approximately $159 million from our acquisitions. The remaining increase is primarily attributable to the impact of manufacturer price increases, a richer mix of those drugs that existed a year ago, and payor mix changes.

Gross profit in the third quarter of 2015 was $75.8 million, compared to $40.2 million in the third quarter of 2014 and generated gross margin of 8.0% compared to 6.7%. The gross margin improvement in the quarter was primarily due to drug mix changes, including the impact of recent acquisitions, as well as the impact of increased pharma dollars, and, to a lesser extent, continued favorable pricing trends.

Selling, general, and administrative expenses (SG&A) for the third quarter of 2015 was $48.9 million, an increase of $14.6 million, compared to $34.3 million in the third quarter of 2014. Of this increase, $12.3 million relates to employee cost, including the employee expense from our acquired entities. The increased employee expense was primarily attributable to the 20% increase in dispensed and serviced prescription volume, combined with the increased clinical and administrative complexity associated with our mix of business. We also experienced a $7.2 million increase in amortization expense from definite-lived intangible assets associated with our acquisitions. The remaining increase was in all other SG&A to support our growth including public company requirements, consulting fees, travel, and other miscellaneous expenses. These increases were partially offset by a decrease in the fair value of contingent consideration related to our acquisitions and a decrease in bad debt expense. As a percentage of revenue, SG&A, excluding acquisition-related amortization and change in contingent consideration, accounted for 5.0% of total revenues for the three months ended September 30, 2015 compared to 5.4% in the prior year period. This decrease is primarily attributable to a favorable adjustment to our allowance for doubtful accounts, and operating efficiencies. The decrease was partially offset by increased expense to support the more clinically intensive therapies from the businesses we have acquired, and increased share-based compensation expense.

Adjusted EBITDA for the third quarter of 2015 was $33.0 million versus $10.6 million in the third quarter of 2014, an increase of 212%.

Net income allocable to common shareholders for the third quarter of 2015 was $15.7 million, or $0.25 per common share, compared to $4.5 million, or $0.12 per common share for the third quarter of 2014. On a diluted basis, we had net income per common share of $0.24 in the third quarter of this year, compared to $0.11 per common share in the year ago quarter. Diluted non-GAAP Adjusted EPS (Adjusted EPS) was $0.26 in the third quarter of this year compared to $0.15 in the third quarter of 2014. Compared to the year ago period, our weighted average common shares outstanding in the third quarter of 2015 were significantly impacted by our IPO, our follow-on equity offering, the use of shares as partial consideration for our acquisitions, and certain stock option exercises and repurchases.

2015 Financial Outlook

For the full-year 2015, we are increasing our financial guidance. We now expect:

Revenue between $3.25 and $3.4 billion, up from our previous range of $3.2 to $3.4 billion

Net income between $27 and $29 million, up from our previous range of $11 to $13 million (greatly influenced by the stock-based BioRx contingent consideration valuation changes)

Adjusted EBITDA between $92 and $96 million, up from our previous range of $80 to $84 million

Adjusted EPS between $0.69 and $0.73, up from our previous range of $0.56 to $0.60

Our...


More