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PRNewswire 9-May-2019 4:05 PM
INCLINE VILLAGE, Nev., May 9, 2019 /PRNewswire/ -- PDL BioPharma, Inc. ("PDL" or "the Company") (NASDAQ:PDLI) reports financial results for the three months ended March 31, 2019:
First Quarter and Recent Financial Highlights
"This is a very exciting time at PDL as we report strong first quarter financial results while we consider expanding our strategic transaction with Evofem Biosciences, as announced on April 11," said Dominique Monnet, president and CEO of PDL. "The elements of this transaction fit with our commitment to creating shareholder value by entering into strategic collaborations with pharmaceutical companies with innovative products and technologies. Evofem Biosciences provides us with an attractive opportunity to make a contribution to women's healthcare, which presents many unmet medical needs that have been largely underserved by large pharmaceutical companies. Evofem's lead investigational drug product, Amphora®, offers a novel non-hormonal approach to contraception for women. Additionally, we are confident that Evofem's team has the talent, expertise and dedication to execute successfully its commercial plan for Amphora®.
"Should we make the second $30 million tranche of our proposed investment in Evofem, our team at PDL would bring significant value to the Amphora launch by contributing our capital and expertise in commercializing products in the U.S. and internationally," he added.
First Quarter Revenue Highlights
First Quarter 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 1099595. 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 1099595.
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 entering into strategic transactions involving late clinical- or early commercial-stage pharmaceutical companies or products with attractive revenue growth potential. 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 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 15, 2019 and subsequent filings. 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 INCOME DATA |
||||||||
(In thousands, except per share amounts) |
||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
2019 |
2018 |
|||||||
Revenues |
||||||||
Product revenue, net |
$ |
26,686 |
$ |
23,324 |
||||
Royalty rights - change in fair value |
12,257 |
11,091 |
||||||
Royalties from Queen et al. patents |
3 |
2,783 |
||||||
Interest revenue |
— |
749 |
||||||
License and other |
(33) |
571 |
||||||
Total revenues |
38,913 |
38,518 |
||||||
Operating Expenses |
||||||||
Cost of product revenue (excluding intangible asset amortization) |
12,810 |
10,566 |
||||||
Amortization of intangible assets |
1,572 |
6,293 |
||||||
General and administrative |
10,462 |
11,661 |
||||||
Sales and marketing |
2,730 |
5,513 |
||||||
Research and development |
869 |
793 |
||||||
Change in fair value of contingent consideration |
— |
(600) |
||||||
Total operating expenses |
28,443 |
34,226 |
||||||
Operating income |
10,470 |
4,292 |
||||||
Non-operating expense, net |
||||||||
Interest and other income, net |
1,874 |
1,914 |
||||||
Interest expense |
(2,955) |
(3,585) |
||||||
Total non-operating expense, net |
(1,081) |
(1,671) |
||||||
Income before income taxes |
9,389 |
2,621 |
||||||
Income tax expense |
2,772 |
1,019 |
||||||
Net income |
6,617 |
1,602 |
||||||
Less: Net loss attributable to noncontrolling interests |
(63) |
— |
||||||
Net income attributable to PDL's shareholders |
$ |
6,680 |
$ |
1,602 |
||||
Net income per share |
||||||||
Basic |
$ |
0.05 |
$ |
0.01 |
||||
Diluted |
$ |
0.05 |
$ |
0.01 |
||||
Shares used to compute income per basic share |
128,799 |
151,473 |
||||||
Shares used to compute income per diluted share |
129,390 |
152,579 |
TABLE 2 |
||||||||
PDL BIOPHARMA, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEET DATA |
||||||||
(Unaudited) |
||||||||
(In thousands) |
||||||||
March 31, |
December 31, |
|||||||
2019 |
2018 |
|||||||
Cash and cash equivalents |
$ |
366,324 |
$ |
394,590 |
||||
Total notes receivable |
$ |
63,704 |
$ |
63,813 |
||||
Total royalty rights - at fair value |
$ |
376,147 |
$ |
376,510 |
||||
Total assets |
$ |
923,533 |
$ |
963,736 |
||||
Total convertible notes payable |
$ |
126,567 |
$ |
124,644 |
||||
Total stockholders' equity |
$ |
693,784 |
$ |
729,779 |
TABLE 3 |
||||||||
PDL BIOPHARMA, INC. |
||||||||
GAAP to NON-GAAP RECONCILIATION: |
||||||||
NET INCOME |
||||||||
(Unaudited) |
||||||||
(In thousands) |
||||||||
A reconciliation between net income on a GAAP basis and on a non-GAAP basis is as follows: |
||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
2019 |
2018 |
|||||||
GAAP net income attributed to PDL's stockholders as reported |
$ |
6,680 |
$ |
1,602 |
||||
Adjustments to Non-GAAP net income (as detailed below) |
5,175 |
12,507 |
||||||
Non-GAAP net income attributed to PDL's stockholders |
$ |
11,855 |
$ |
14,109 |
||||
An itemized reconciliation between net income on a GAAP basis and on a non-GAAP basis is as follows: |
||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
2019 |
2018 |
|||||||
GAAP net income attributed to PDL's stockholders, as reported |
$ |
6,680 |
$ |
1,602 |
||||
Adjustments: |
||||||||
Mark-to-market adjustment to fair value assets |
363 |
7,532 |
||||||
Non-cash interest revenues |
— |
(74) |
||||||
Non-cash stock-based compensation expense |
1,169 |
957 |
||||||
Non-cash debt offering costs |
1,923 |
2,132 |
||||||
Non-cash depreciation and amortization expense |
1,128 |
1,004 |
||||||
Mark-to-market adjustment on warrants held |
33 |
(71) |
||||||
Non-cash amortization of intangible assets |
1,572 |
6,293 |
||||||
Mark-to-market adjustment of contingent consideration |
— |
(600) |
||||||
Income tax effect related to above items |
(1,013) |
(4,666) |
||||||
Total adjustments |
5,175 |
12,507 |
||||||
Non-GAAP net income |
$ |
11,855 |
$ |
14,109 |
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. These non-GAAP financial measures are 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 represents GAAP net income 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) non-cash 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) non-cash amortization of intangible assets, (7) mark-to-market adjustment related to acquisition-related contingent consideration, (8) non-cash depreciation and amortization expense and (9) the related tax effect of all reconciling items within our reconciliation. 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.