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PRNewswire 14-Mar-2019 4:05 PM
INCLINE VILLAGE, Nev., March 14, 2019 /PRNewswire/ -- PDL BioPharma, Inc. ("PDL" or "the Company") (NASDAQ:PDLI) reports financial results for the three and 12 months ended December 31, 2018:
Financial Highlights
"We are pursuing a strategy of acquiring pharmaceutical products and companies to secure assets with good growth prospects," said Dominique Monnet, president and CEO of PDL. "Our focus is on commercial-stage assets with multi-year sales growth potential, or pharmaceutical products in late-stage clinical development. Our strong, liquid balance sheet allows for the quick deployment of funds to secure transactions that meet our stringent investment parameters. Our goal is to build growing and profitable revenue streams from a balanced portfolio of operating company cash flow and, when appropriate, capture further market value through optimally timed exit strategies.
"The commercial launch of an authorized generic of Tekturna® now underway in the U.S., gives us and our partner Prasco laboratories a first-to-market competitive advantage," he added. "With the expectation of a generic entry, we do not expect to pay any additional milestone payments to Novartis, and eliminated our remaining contingent liability of $19.2 million related to future milestones, which is reflected in our fourth quarter financial results."
"We are reporting progress in the $100 million share repurchase program we announced in late September 2018, which we believe reflects a balanced approach to capital allocation and an appropriate means of creating shareholder value," said Peter Garcia, vice president and CFO of PDL. "Since initiating this current program, we have repurchased a total of 19.4 million shares at a cost of $61.0 million."
Revenue Highlights
Operating Expense Highlights
Stock Repurchase Programs
Other Financial Highlights
Conference Call and Webcast Details
PDL will hold a conference call to discuss financial results and provide a business update at 4:30 p.m. Eastern time today. Slides to accompany the conference call will be available in the Investor Relations section of www.pdl.com.
To access the live conference call via phone, please dial 844-535-4071 from the U.S. and Canada or 706-679-2458 internationally. The conference ID is 5577359. A telephone replay will be available beginning approximately one hour after the call through one week following the call and may be accessed by dialing 855-859-2056 from the U.S. and Canada or 404-537-3406 internationally. The replay passcode is 5577359.
To access the live and subsequently archived webcast of the conference call, go to the Investor Relations section of www.pdl.com and select "Events & Presentations."
About PDL BioPharma, Inc.
PDL BioPharma seeks to provide a significant return for its stockholders by acquiring commercial stage pharmaceutical assets with multiple year revenue growth potential as well as late clinical stage pharmaceutical products. For more information please visit www.pdl.com
NOTE: PDL, PDL BioPharma, the PDL logo and associated logos and the PDL BioPharma logo are trademarks or registered trademarks of, and are proprietary, to PDL BioPharma, Inc. which reserves all rights therein. Noden, Noden Pharma, Tekturna, Tekturna HCT, Rasilez and Rasilez HCT and associated logos are trademarks or registered trademarks of, and are proprietary to, Noden Pharma DAC, which reserves all right therein. LENSAR, LENSAR Cataract Laser with Augmented Reality, Streamline and Intelliaxis and associated logos are trademarks or registered trademarks of, and are proprietary to, LENSAR, Inc., which reserves all rights therein.
Forward-looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Each of these forward-looking statements involves risks and uncertainties. Actual results may differ materially from those, express or implied, in these forward-looking statements. Important factors that could impair the value of the Company's assets and business are disclosed in the risk factors contained in the Company's Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 16, 2018 and subsequent filings, including risks relating to our ability to realize the anticipated benefits of an authorized generic of Tekturna and the potential for other generic competition for Tekturna; and potential price erosion for Tekturna, whether due to competing products or governmental pricing pressures. All forward-looking statements are expressly qualified in their entirety by such factors. We do not undertake any duty to update any forward-looking statement except as required by law.
TABLE 1 |
||||||||||||||||
PDL BIOPHARMA, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA |
||||||||||||||||
(In thousands, except per share amounts) |
||||||||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||||||||
December 31, |
December 31, |
|||||||||||||||
2018 |
2017 |
2018 |
2017 |
|||||||||||||
Revenues |
||||||||||||||||
Royalties from Queen et al. patents |
$ |
2 |
$ |
4,531 |
$ |
4,536 |
$ |
36,415 |
||||||||
Royalty rights - change in fair value |
19,139 |
30,103 |
85,256 |
162,327 |
||||||||||||
Interest revenue |
83 |
776 |
2,337 |
17,744 |
||||||||||||
Product revenue, net |
25,976 |
32,646 |
105,448 |
84,123 |
||||||||||||
License and other |
(81) |
(20) |
533 |
19,451 |
||||||||||||
Total revenues |
45,119 |
68,036 |
198,110 |
320,060 |
||||||||||||
Operating Expenses |
||||||||||||||||
Cost of product revenue (excluding amortization and impairment of intangible assets) |
11,444 |
17,905 |
48,460 |
30,537 |
||||||||||||
Amortization of intangible assets |
1,577 |
6,251 |
15,831 |
24,689 |
||||||||||||
General and administrative expenses |
6,019 |
9,788 |
45,420 |
45,641 |
||||||||||||
Sales and marketing |
2,772 |
6,489 |
17,139 |
17,683 |
||||||||||||
Research and development |
806 |
729 |
2,955 |
7,381 |
||||||||||||
Impairment of intangible assets |
— |
— |
152,330 |
— |
||||||||||||
Asset impairment loss |
8,200 |
— |
8,200 |
— |
||||||||||||
Change in fair value of anniversary payment and contingent consideration |
(19,198) |
(3,000) |
(41,631) |
349 |
||||||||||||
Total operating expenses |
11,620 |
38,162 |
248,704 |
126,280 |
||||||||||||
Operating income (loss) |
33,499 |
29,874 |
(50,594) |
193,780 |
||||||||||||
Non-operating expense, net |
||||||||||||||||
Interest and other income, net |
1,958 |
933 |
6,065 |
1,659 |
||||||||||||
Interest expense |
(2,895) |
(5,139) |
(12,157) |
(20,221) |
||||||||||||
Gain on bargain purchase |
— |
5,314 |
— |
9,309 |
||||||||||||
Gain on investments |
— |
— |
764 |
— |
||||||||||||
Total non-operating expense, net |
(937) |
1,108 |
(5,328) |
(9,253) |
||||||||||||
Income (loss) before income taxes |
32,562 |
30,982 |
(55,922) |
184,527 |
||||||||||||
Income tax expense |
16,283 |
8,646 |
12,937 |
73,826 |
||||||||||||
Net income (loss) |
16,279 |
22,336 |
(68,859) |
110,701 |
||||||||||||
Less: Net loss attributable to noncontrolling interests |
— |
— |
— |
(47) |
||||||||||||
Net income (loss) attributable to PDL's shareholders |
$ |
16,279 |
$ |
22,336 |
$ |
(68,859) |
$ |
110,748 |
||||||||
Net income (loss) per share |
||||||||||||||||
Basic |
$ |
0.12 |
$ |
0.15 |
$ |
(0.47) |
$ |
0.71 |
||||||||
Diluted |
$ |
0.11 |
$ |
0.15 |
$ |
(0.47) |
$ |
0.71 |
||||||||
Shares used to compute income per basic share |
141,247 |
151,217 |
145,669 |
155,394 |
||||||||||||
Shares used to compute income per diluted share |
142,608 |
152,592 |
145,669 |
156,257 |
TABLE 2 |
||||||||
PDL BIOPHARMA, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEET DATA |
||||||||
(Unaudited) |
||||||||
(In thousands) |
||||||||
December 31, |
December 31, |
|||||||
2018 |
2017 |
|||||||
Cash, cash equivalents and short-term investments |
$ |
394,590 |
$ |
532,114 |
||||
Total notes receivable |
$ |
63,813 |
$ |
70,737 |
||||
Total royalty rights - at fair value |
$ |
376,510 |
$ |
349,223 |
||||
Total assets |
$ |
963,736 |
$ |
1,243,123 |
||||
Total convertible notes payable |
$ |
124,644 |
$ |
243,481 |
||||
Total stockholders' equity |
$ |
729,779 |
$ |
845,890 |
TABLE 3 |
||||||||||||||||
PDL BIOPHARMA, INC. |
||||||||||||||||
GAAP to NON-GAAP RECONCILIATION: |
||||||||||||||||
NET INCOME (LOSS) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(In thousands) |
||||||||||||||||
A reconciliation between net income (loss) on a GAAP basis and on a non-GAAP basis is as follows: |
||||||||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||||||||
December 31, |
December 31, |
|||||||||||||||
2018 |
2017 |
2018 |
2017 |
|||||||||||||
GAAP net income (loss) attributed to PDL's stockholders as reported |
$ |
16,279 |
$ |
22,336 |
$ |
(68,859) |
$ |
110,748 |
||||||||
Adjustments to Non-GAAP net income (loss) (as detailed below) |
(1,208) |
2,445 |
125,559 |
(10,040) |
||||||||||||
Non-GAAP net income attributed to PDL's stockholders |
$ |
15,071 |
$ |
24,781 |
$ |
56,700 |
$ |
100,708 |
||||||||
An itemized reconciliation between net income (loss) on a GAAP basis and on a non-GAAP basis is as follows: |
||||||||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||||||||
December 31, |
December 31, |
|||||||||||||||
2018 |
2017 |
2018 |
2017 |
|||||||||||||
GAAP net income (loss) attributed to PDL's stockholders as reported |
$ |
16,279 |
$ |
22,336 |
$ |
(68,859) |
$ |
110,748 |
||||||||
Adjustments: |
||||||||||||||||
Mark-to-market adjustment to fair value assets |
1,781 |
(2,746) |
(7,287) |
(55,074) |
||||||||||||
Non-cash interest revenues |
(83) |
(101) |
(312) |
(924) |
||||||||||||
Non-cash stock-based compensation expense |
(56) |
124 |
4,758 |
3,138 |
||||||||||||
Non-cash debt offering costs |
1,864 |
2,843 |
7,609 |
11,038 |
||||||||||||
Mark-to-market adjustment on warrants held |
81 |
20 |
(33) |
49 |
||||||||||||
Impairment of intangible assets |
— |
— |
152,330 |
— |
||||||||||||
Amortization of intangible assets |
1,577 |
6,251 |
15,831 |
24,689 |
||||||||||||
Mark-to-market adjustment of anniversary payment and contingent consideration |
(19,198) |
(3,000) |
(41,631) |
349 |
||||||||||||
Valuation allowance on deferred tax assets |
11,384 |
— |
11,226 |
— |
||||||||||||
Income tax effect related to above items |
1,442 |
(946) |
(16,932) |
6,695 |
||||||||||||
Total adjustments |
(1,208) |
2,445 |
125,559 |
(10,040) |
||||||||||||
Non-GAAP net income |
$ |
15,071 |
$ |
24,781 |
$ |
56,700 |
$ |
100,708 |
Use of Non-GAAP Financial Measures
We supplement our consolidated financial statements presented on a GAAP basis by providing an additional measure which may be considered a "non-GAAP" financial measure under applicable rules of the Securities and Exchange Commission. We believe that the disclosure of this non-GAAP financial measures provides our investors with additional information that reflects the amounts and financial basis upon which our management assesses and operates our business. This non-GAAP financial measures is not in accordance with generally accepted accounting principles and should not be viewed in isolation or as a substitute for reported, or GAAP, net income, and is not a substitute for, or superior to, measures of financial performance performed in conformity with GAAP.
"Non-GAAP net income" is not based on any standardized methodology prescribed by GAAP and represent GAAP net income (loss) adjusted to exclude (1) mark-to-market adjustments related to the fair value election for our investments in royalty rights presented in our earnings, which include the fair value re-measurement of future discounted cash flows for each of the royalty rights assets we have acquired, (2) non-cash interest revenue from notes receivable (3) stock-based compensation expense, (4) non-cash interest expense related to PDL debt offering costs, (5) mark-to-market adjustments related to warrants held, (6) impairment of intangible assets, (7) amortization of intangible assets, (8) mark-to-market adjustment related to acquisition-related contingent considerations, and to adjust (9) the related tax effect of all reconciling items within our reconciliation of our GAAP to Non-GAAP net income (loss). Non-GAAP financial measures used by PDL may be calculated differently from, and therefore may not be comparable to, non-GAAP measures used by other companies.
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SOURCE PDL BioPharma, Inc.