Knight Reports Fourth Quarter and Year-Ended December 31, 2016 Results
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E-mailMONTREAL, QUEBEC -- (Marketwired) -- 03/16/17 -- Knight Therapeutics Inc. (TSX: GUD) ("Knight" or the "Company"), a leading Canadian specialty pharmaceutical company, today reported financial results for its fourth quarter and year-ended December 31, 2016. All dollar amounts are in thousands except for per share amounts. All currencies are Canadian unless otherwise specified.
"In 2016, we continued to make substantial progress towards building Canada's leading speciality pharmaceutical company by strengthening our team, our product pipeline and our balance sheet," said Jonathan Ross Goodman, CEO of Knight Therapeutics Inc. "In the year ahead, we look forward to advancing our product pipeline, commercializing Movantik® in Canada and making a difference to the health of patients."
Financial Results
For the quarter ended December 31, 2016, Knight reported revenues of $1,845, an increase of $1,502 over the same period last year, and net income of $7,939, an increase of $2,385 over the same period last year.
For the year ended December 31, 2016, Knight reported revenues of $5,940, an increase of $4,903 over the same period last year, and net income of $18,560, a decrease of $15,607 over the same period last year.
As at December 31, 2016, the Company had $736,050 in cash, cash equivalents and marketable securities and 142,713,489 common shares outstanding.
2016 Highlights
-- Signed license agreements for Netildex" and Probuphine" for
Canada, and Movantik® for Canada and Israel.
-- Terminated the agreement with Paladin Labs Inc. related to the
distribution and sale of Impavido® in all countries other than the
U.S.
-- Launched Impavido® in U.S. through commercialization partner
Profounda, Inc.
-- Issued secured loans of US$23,000 to Medimetriks Pharmaceuticals Inc.
and $6,841 to Crescita Therapeutics Inc. as part of secured lending
strategy.
-- Appointed Samira Sakhia, former CFO of Paladin Labs Inc., as President
of Knight.
-- Completed two bought deals at $8 and $10 per common share for gross
proceeds of $230,000 and $100,050, respectively, including over-
allotment exercise.
Key Subsequent Events
-- Submitted Iluvien® for regulatory approval by Health Canada.
-- Announced the commercial relaunch of Movantik® in Canada.
-- Received a Notice of Deficiency Withdrawal from Heath Canada with
respect to its ATryn® regulatory submission.
Conference Call Notice
Knight will host a conference call to discuss its fourth quarter and year end results today at 8:30 am ET. Investors and other interested parties may call 1-877-223-4471 (Operator Assisted Toll-Free) or 647-788-4922 (local or international).
A taped replay of the conference call will be available from today at 11:30 a.m. ET until Sunday, April 16, 2017 at 11:59 p.m. ET. To access the replay, please call 1-800-585-8367 or 416-621-4642 and use access code 16647769.
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets. Knight Therapeutics Inc.'s shares trade on TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company's web site at www.gud-knight.com or www.sedar.com.
Forward-Looking Statement
This document contains forward-looking statements for Knight Therapeutics Inc. and its subsidiaries. These forward looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Knight Therapeutics Inc. considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions the reader that these assumptions regarding future events, many of which are beyond the control of Knight Therapeutics Inc. and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations are discussed in Knight Therapeutics Inc.'s Annual Report and in Knight Therapeutics Inc.'s Annual Information Form for the year ended December 31, 2016. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.
CONSOLIDATED BALANCE SHEETS
(In thousands of Canadian dollars)
As at December 31, 2016 2015
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ASSETS
Current
Cash and cash equivalents 514,942 237,481
Marketable securities 221,108 233,726
Trade and other receivables 6,440 2,994
Inventories 790 1,460
Other current financial assets 51,789 23,588
Income taxes receivable 4,683 231
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Total current assets 799,752 499,480
Property and equipment 32 18
Intangible assets 14,153 3,320
Other financial assets 90,643 62,616
Investment in associate 80,113 81,027
Deferred income tax assets 6,077 2,527
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Total assets 990,770 648,988
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 3,207 2,416
Income taxes payable 5,659 4,031
Other balances payable 537 -
Deferred other income 355 293
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Total current liabilities 9,758 6,740
Deferred other income 417 -
Other balances payable 877 -
Deferred income tax liabilities - 186
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Total liabilities 11,052 6,926
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Shareholders' equity
Share capital 760,447 439,148
Warrants 785 161
Contributed surplus 9,469 6,772
Accumulated other comprehensive income 30,431 35,955
Retained earnings 178,586 160,026
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Total shareholders' equity 979,718 642,062
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Total liabilities and shareholders' equity 990,770 648,988
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CONSOLIDATED STATEMENTS OF INCOME
(In thousands of Canadian dollars, except for share and per share amounts)
2016 2015
----------------------------------------------------------------------------
Revenues 5,940 1,037
Cost of goods sold 1,550 428
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Gross margin 4,390 609
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Expenses
Selling and marketing 532 -
General and administrative 9,302 9,086
Research and development 1,955 2,707
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(7,399) (11,184)
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Depreciation of property and equipment 18 30
Amortization of intangible assets 419 94
Interest income (24,414) (18,632)
Other income (3,894) (2,860)
Net gain on financial assets (1,659) (17,347)
Purchase gain on business combination - (515)
Net loss on settlement of loans receivable - 650
Share of net income of associate (2,793) (1,041)
Foreign exchange loss (gain) 1,451 (8,579)
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Income before income taxes 23,473 37,016
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Income tax expense 4,190 1,939
Deferred income tax expense 723 910
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Net income for the year 18,560 34,167
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Basic earnings per share 0.15 0.36
Diluted earnings per share 0.15 0.35
Basic 120,723,270 96,191,285
Diluted 121,263,522 96,532,104
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands of Canadian dollars)
2016 2015
----------------------------------------------------------------------------
Net income for the year 18,560 34,167
Realized gain on available for sale financial
instruments reclassified to statement of
income net of tax of $247 (2015: $1,345) (1,592) (8,654)
Other comprehensive (loss) income to be
reclassified to statement of income in
subsequent periods:
Unrealized gain on available for sale
financial instruments net of tax of $245
(2015: $528) 1,146 7,083
Unrealized (loss) gain on translation of
foreign operations (5,078) 27,559
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Other comprehensive (loss) income for the year (5,524) 25,988
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Total comprehensive income for the year 13,036 60,155
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CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(In thousands of Canadian dollars)
Share Contributed
capital Warrants surplus
----------------------------------------------------------------------------
Balance as at January 1, 2015 341,065 - 2,100
Net income for the year - - -
Realized gain reclassified to
statement of income, net of tax of
$1,345 - - -
Unrealized gain on available for sale
financial instruments, net of tax of
$528 - - -
Unrealized gain on translation of
foreign operations - - -
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Comprehensive income - - -
Share-based compensation expense - - 4,421
Issuance of shares upon financing,
net of costs and deferred tax of
$2,155 14,573 - -
Issuance upon investment in associate 80,684 - 1,100
Issuance due to share-based payments 332 - -
Exercise of stock options 1,487 - (554)
Issuance of warrants - 161 -
Exercise of compensation warrants 930 - (295)
Issuance under share purchase plan 77 - -
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Balance as at December 31, 2015 439,148 161 6,772
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Balance as at January 1, 2016 439,148 161 6,772
Net income for the year - - -
Realized gain reclassified to
statement of income, net of tax of
$247 - - -
Unrealized gain on available for sale
financial instruments, net of tax of
$245 - - -
Unrealized loss on translation of
foreign operations - - -
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Comprehensive (loss) income - - -
Share-based compensation expense - - 3,640
Issuance upon bought deals, net of
costs and includes deferred tax of
$4,465 317,616 - -
Issuance of shares to associate 2,073 - (943)
Issuance upon investment 1,846 624
Share purchase loans (350) - -
Issuance under share purchase plan 114 - -
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Balance as at December 31, 2016 760,447 785 9,469
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CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(In thousands of Canadian dollars)
Accumulated
other Total
comprehensive Retained shareholders'
income earnings equity
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Balance as at January 1, 2015 9,967 125,859 478,991
Net income for the year - 34,167 34,167
Realized gain reclassified to
statement of income, net of tax of
$1,345 (8,654) - (8,654)
Unrealized gain on available for sale
financial instruments, net of tax of
$528 7,083 - 7,083
Unrealized gain on translation of
foreign operations 27,559 - 27,559
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Comprehensive income 25,988 34,167 60,155
Share-based compensation expense - - 4,421
Issuance of shares upon financing,
net of costs and deferred tax of
$2,155 - - 14,573
Issuance upon investment in associate - - 81,784
Issuance due to share-based payments - - 332
Exercise of stock options - - 933
Issuance of warrants - - 161
Exercise of compensation warrants - - 635
Issuance under share purchase plan - - 77
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Balance as at December 31, 2015 35,955 160,026 642,062
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Balance as at January 1, 2016 35,955 160,026 642,062
Net income for the year - 18,560 18,560
Realized gain reclassified to
statement of income, net of tax of
$247 (1,592) - (1,592)
Unrealized gain on available for sale
financial instruments, net of tax of
$245 1,146 - 1,146
Unrealized loss on translation of
foreign operations (5,078) - (5,078)
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Comprehensive (loss) income (5,524) 18,560 13,036
Share-based compensation expense - - 3,640
Issuance upon bought deals, net of
costs and includes deferred tax of
$4,465 - - 317,616
Issuance of shares to associate - - 1,130
Issuance upon investment 2,470
Share purchase loans - - (350)
Issuance under share purchase plan - 114
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Balance as at December 31, 2016 30,431 178,586 979,718
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CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands of Canadian dollars)
2016 2015
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OPERATING ACTIVITIES
Net income for the year 18,560 34,167
Adjustments reconciling net income to operating
cash flows:
Deferred tax 723 910
Share-based compensation expense 3,640 4,421
Depreciation and amortization 437 124
Accretion of interest (6,201) (6,985)
Other income (1,274) -
Realized gain on financial assets (2,569) (15,381)
Unrealized loss (gain) on financial assets 910 (1,966)
Net loss on settlement of loans receivable - 535
Foreign exchange loss (gain) 1,451 (2,068)
Purchase gain on business combination - (515)
Share of net income from associate (2,793) (1,041)
Deferred other income 479 (747)
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13,363 11,454
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Changes in non-cash working capital related to
operations (3,462) (3,818)
Dividends from associate 4,837 2,015
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Cash inflowfrom operating activities 14,738 9,651
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INVESTING ACTIVITIES
Purchase of marketable securities (535,685) (583,225)
Purchase of equities (16,371) (11,360)
Purchase of property and equipment (7) -
Purchase of intangibles (9,853) (1,750)
Investment in funds (16,503) (15,694)
Issuance of loans receivable (43,274) (40,280)
Investment in associate - (217)
Proceeds from repayments of loans receivable 11,324 40,420
Proceeds from sale of marketable securities 544,812 503,935
Proceeds from distribution of funds 4,610 19,314
Proceeds from disposal of equities 9,572 19,758
Proceeds from disposal of derivatives 2,157 -
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Cash outflow from investing activities (49,218) (69,099)
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FINANCING ACTIVITIES
Proceeds from share issuance 313,574 12,424
Proceeds from exercise of compensation warrants - 635
Share option plan - 933
Share purchase plan 105 77
Share purchase loans (350) -
Cost related to prior period share issuance - (207)
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Cash inflow from financing activities 313,329 13,862
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Increase (decrease) in cash during the year 278,849 (45,586)
Cash and cash equivalents, beginning of the year 237,481 283,445
Net foreign exchange difference (1,388) (378)
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Cash and cash equivalents, end of the year 514,942 237,481
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Supplemental cash flow information:
Interest received 15,665 10,107
Income taxes paid 7,010 1,980
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Contacts: Knight Therapeutics Inc. Jeffrey Kadanoff, P.Eng., MBA Chief Financial Officer 514-484-GUD1 (4831) 514-481-4116 (FAX) [email protected] www.gudknight.com
Source: Knight Therapeutics Inc.
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