Alere (ALR) Reports Q4 Loss of $0.28; Announces Revenue Revisions Following Review

August 8, 2016 6:34 AM EDT
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Alere (NYSE: ALR) reported Q4 EPS of ($0.28), versus ($0.43) reported last year. Revenue for the quarter came in at $623 million, versus $662.04 million reported last year.

The Company also announced that it concluded the analysis of certain aspects of revenue recognition for the years ended December 31, 2015, 2014, and 2013 (and each of the quarters in those annual periods). As a result of the review, the Company has revised its financial statements for the interim periods of 2015 and the years ended December 31, 2014 and 2013 to correct immaterial errors in its previously issued financial statements.

The revisions include the impact to gross profit related to the revenue adjustments and the movement of other previously recorded out-of-period adjustments into the periods in which they originated. Most notably, the Company recognized additional income tax expense of $8 million in 2015 (nine months YTD) and a reduction in income tax expense of $7 million in 2014 related to the timing of recognition of certain tax-specific items. These tax-related revisions resulted in a decrease of $0.09 in basic and diluted earnings per share in 2015 (nine months YTD) and an increase of $0.07 in basic and diluted earnings per share in 2014. None of these revisions impacted the Company's cash flow or cash balances.

The impact of the revisions is as follows:

Revision Impact (in millions, except per share)

2015 (9 mos)

2014

2013

Revenue

$

1

$

(13)

$

(8)

Gross Profit

-

(7)

(5)

Operating Expenses

1

(1)

-

(Provision) Benefit for Income Taxes

(8)

11

3

Income (loss) Per Share From

Continuing Operations

$

(0.14)

$

0.05

$

(0.03)

The table below shows revenue and EPS as previously reported, the impact of the revision adjustments and as revised:

(in millions, except per share)

Nine Months Ended Sept 30, 2015

Twelve Months Ended Dec 31, 2014

Twelve Months Ended Dec 31, 2013

Net Revenue As Previously Reported

$

1,839

$

2, 589

$

2,616

Revision Adjustments

$

1

$

(13)

$

(8)

Net revenue As Revised

$

1,840

$

2,575

$

2,609

GAAP Basic and Diluted EPS As Previously Reported

$

2.53

$

(0.71)

$

(1.15)

Revision Adjustments

$

(0.14)

$

0.05

$

(0.03)

GAAP Basic and Diluted EPS As Revised

$

2.39

$

(0.66)

$

(1.18)

Certain amounts presented may not recalculate directly, due to rounding.

"We are pleased to announce the completion of a thorough and diligent review of our historical revenue recognition processes," said Namal Nawana, CEO of Alere. "Following our review, we made immaterial revisions to our previously issued financial statements for 2013, 2014 and 2015 with the filing of our current 2015 Form 10-K. We are in the process of implementing a remediation plan and remain committed to providing accurate and transparent financial reporting."

Alere expects to file its first quarter 2016 Form 10-Q by August 18, 2016. The Company does not currently expect to file its second quarter 2016 Form 10-Q by August 9, 2016. Alere expects to file its second quarter 2016 Form 10-Q as soon as practicable.

For earnings history and earnings-related data on Alere (ALR) click here.



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