Concordia International (CXRX) Reports Q3 Loss of $1.36, Beats on Revenues

Concordia International (NASDAQ: CXRX) reported Q3 EPS of ($1.36), versus $0.08 reported last year. Revenue for the quarter came in at $154.6 million versus the consensus estimate of $149.5 million.

Consolidated Third Quarter 2017 Financial and Operational Results and Recent Events

• Reported revenue of $154.6 million, compared to $185.5 million for the same period in 2016 and $160.8 million for the second quarter of 2017.
• Reported third quarter adjusted EBITDA1 of $78.6 million, compared to $104.4 million for the same period in 2016, and $81.8 million in the second quarter of 2017.
• Generated cash flows from operating activities of $227.4 million in the first nine months of 2017, compared to $313.1 million for the same period in 2016.
• As of September 30, 2017, the Company's liquidity consisted of $341.3 million of cash and cash equivalents.
• Subsequent to quarter end, on October 20, 2017, Concordia announced its intention to realign its capital structure by commencing a court proceeding under the Canada Business Corporations Act (the "CBCA"). The CBCA is a Canadian corporate statute that contains provisions allowing Canadian corporations to restructure certain debt obligations. The CBCA is not a bankruptcy or insolvency statute. Under the CBCA process, Concordia's management continues to lead day-to-day operations and operate its business as usual, while meeting its commitments to employees, suppliers and customers.
• The commencement of the CBCA proceedings resulted in an event of default under the Company's credit agreement dated October 21, 2015, the indenture governing the Company's 9.00% senior secured notes, and the Company's currency swaps, which defaults are subject to the stay of proceedings issued by the Ontario Superior Court of Justice.
• As contemplated by the CBCA order, the following payments owed to unsecured lenders were not paid as scheduled, and are instead expected to be addressed (or have been settled) as part of the proposed recapitalization transaction under the CBCA proceeding: approximately $26 million of interest due on October 16, 2017 under Concordia's 7.00% unsecured senior notes; approximately $2.5 million of interest under Concordia's unsecured, extended bridge facility due on October 23, 2017; and approximately $34 million of principal and accrued interest due on October 20, 2017 under the Company's unsecured, two-year equity bridge facility. Subsequent to quarter end, the Company agreed to settle the principal amount and accrued interest due on the two-year equity bridge at a significant discount to par.
• On October 20, 2017, the counterparty to the Company's currency swaps, which Concordia entered into in August and November of 2016, notified the Company that it would be terminating the currency swaps effective October 23, 2017 due to the commencement of the CBCA proceedings. In addition, as part of the CBCA process, the Company agreed to terminate the revolving commitments under its credit agreement.

For earnings history and earnings-related data on Concordia International (CXRX) click here.

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