Form 8-K PERNIX THERAPEUTICS HOLD For: Aug 06
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E-mailUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
________________
FORM 8-K
________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2015
PERNIX THERAPEUTICS HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
|
Maryland |
|
001-14494 |
|
33-0724736 |
|
(State or Other Jurisdiction |
|
(Commission File Number) |
|
(IRS Employer Identification No.) |
|
10 North Park Place, Suite 201, Morristown, NJ |
|
07960 |
|
(Address of principal executive offices) |
|
(Zip Code) |
|
Registrant's telephone number, including area code: (800) 793-2145 |
|
(Former Name or Former Address, if Changed Since Last Report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
2.02 Results of Operations and Financial Condition On August 6, 2015, Pernix Therapeutics Holdings, Inc. ("Pernix") issued a press release announcing financial results for the quarter ended June 30, 2015 and certain
other information. A copy of the press release is furnished with this Report as Exhibit 99.1. The information provided in this Item 2.02, including Exhibit 99.1, is intended to be "furnished" and shall not be deemed "filed" for purposes of Section 18
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by
reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing. Pernix is also disclosing that it may use its website, pernitx.com, as a means of disclosing material non-public information and for complying with its disclosure obligations under
Regulation FD. Forward-Looking Statements Certain statements in this Current Report on Form 8-K, including but not limited to statements set forth in the attached press release, may constitute forward-looking
statements. These forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that may cause such forward-looking
statements not to be realized and that could cause actual results to differ materially from Pernix's expectations in these statements. For more information about other risks that could
affect the forward-looking statements herein, please see Pernix's most recent quarterly report on Form 10-Q, annual report on Form 10-K and other filings made with the Securities
and Exchange Commission. Pernix expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any changes in
expectations, or any change in events or circumstances on which those statements are based, unless otherwise required by law. 9.01 Financial Statements and Exhibits (d) Exhibits. 99.1 Press Release dated August 6, 2015
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized. PERNIX THERAPEUTICS HOLDINGS, INC. Date: August 6, 2015 By: /s/ Sanjay S. Patel Sanjay S. Patel Chief Financial Officer
EXHIBIT INDEX Exhibit No. Description 99.1
Exhibit 99.1 Pernix Therapeutics Inc. Reports Second Quarter 2015 Financial Results Revenues Increase Over 150% Year-Over-Year Company Provides Updated Financial Guidance MORRISTOWN, NJ -
August 6, 2015 - Pernix Therapeutics Holdings, Inc. (NASDAQ: PTX)
("Pernix" or "the Company"), a specialty pharmaceutical company, today announced financial results for the second quarter
ended June 30, 2015. Second Quarter and Recent Business Highlights: Second Quarter Financial Highlights: "Pernix is focused on driving value. During the quarter, we continued to
positively direct the trajectory of the Treximet business and we are encouraged by the product's
recent performance as we continue to take aggressive steps to grow this franchise. We have dealt with the issues we faced at the re-launch, including the lack of
samples, and the perception by physicians of limited insurance coverage. While navigating an increasingly challenging managed care environment, we maintained good commercial coverage for over 86% of
2. Pernix Therapeutics Reports Second Quarter 2015 Financial Results
prescriptions, while stabilizing gross-to-nets. As a result of these efforts, combined with improved promotional efforts by our field force, volumes are
increasing, and we are pleased by the recent prescription growth, said Doug Drysdale, Chairman and Chief Executive Officer. "We executed a successful re-launch of Zohydro ER with BeadTek in the
second quarter. Today, all major US pharmacy chains are filling prescriptions for Zohydro ER with BeadTek and our efforts on the payer access front continue. To date, we have
submitted over 30 managed care proposals and responses to date have been encouraging. We remain optimistic about our ability to obtain broad and favorable coverage. The
removal of Zohydro ER with BeadTek from Express Scripts' 2016 Exclusion List for its
National Preferred Formulary is also a significant step. This will eliminate a significant hurdle to growth for the Zohydro ER franchise next year. "As we move into the second half of the year, we will continue our focus on
positioning our branded portfolio for continued growth, maximizing the potential of our sales force and strengthening the Company's
balance sheet," concluded Drysdale. Financial Results - Second Quarter 2015 For the second quarter of 2015, net revenues were $47.0 million, an increase of $29.6 million, or 151%, versus $17.4 million for the second quarter of 2014. A summary of
net revenues is outlined below (in millions): The year over year comparison benefits from the September Treximet and May Zohydro launches, and a continued focus on
our Silenor selling and marketing strategy, which included a price increase in April of 2014. These increases were partially offset by increased rebates for managed care, the
discontinuation of certain less profitable products, and the termination of certain distribution contracts. We recorded no manufacturing revenue during the second quarter of 2015 compared with $154,000 for the same period in 2014, due to the sale of our manufacturing subsidiary
PML in April 2014. Co-promotion and other revenue decreased by $490,000 to $223,000 due to the Natroba co-promotion agreement termination.
3. Pernix Therapeutics Reports Second Quarter 2015 Financial Results Gross profit margin as a percentage of net revenues was 71% versus 46% in the second quarter of 2014, excluding the impact of acquired inventory step up. The increase was
primarily due to the Treximet and Zohydro ER launches. Cost of product sales will increase with Silenor, Treximet, and Zohydro ER sales growth, as well as associated higher
royalty expenses. Selling, general and administrative (SG&A) expenses in the second quarter of 2015 increased to $24.9 million, compared to $13.2 million for the same period in 2014,
driven primarily by higher Silenor, Treximet, and Zohydro marketing costs, and increases in personnel due to the addition of nearly 100 sales representatives through the acquisition
of Zohydro ER, legal settlement, and training. These increases were partially offset by savings related to the sale of our manufacturing facility in April 2014. Bad debt expense,
consulting and insurance costs decreased in the quarter. Research and Development expenses grew to $1.5 million, versus $345,000 last year, in the second quarter of 2015. The increase was mostly due to on-going work related to
Treximet lifecycle management and Zohydro ER. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, a non-GAAP measure) was $7.9 million for the second quarter of 2015 and a loss of $4.0
million in the second quarter of 2014. See the table at the end of this press release for a reconciliation of net income to Adjusted EBITDA. Depreciation and amortization expense was $22.3 million versus $2.0 million in the same period last year. The increase was primarily a result of $17.5 million in Treximet
acquisition amortization and $2.7 million in Zohydro ER acquisition amortization, partially offset by a decline in depreciation expense, mostly due to the PML sale in April 2014. Interest expense for the three months ended June 30, 2015 was $9.9 million compared to $2.3 million last year. The increase was primarily driven by $6.6 million in interest
related to our $220.0 million Treximet Notes, issued in August 2014 and $1.7 million in interest related to our $130 million 4.25% Convertible Notes, issued in April 2015. This
increase was partially offset by the conversion of the outstanding 8.00% Convertible Notes, which reduced interest expense by $1.0 million. Pernix recognized an income tax benefit of $3.6 million in the second quarter of 2015, versus a $3.7 million income tax benefit for the same period last year. The net loss for the second quarter of 2015 was $32.2 million, or $0.62 per basic and diluted share, compared to net loss of $6.2 million, or $0.16 per basic and diluted share,
last year. Weighted average common shares outstanding were 52.4 million and 37.8 million per basic and diluted shares in the second quarter of 2015 and 2014, respectively. On a
non-GAAP basis, 2Q 2015 adjusted net loss was $5.4 million versus an adjusted net loss of $3.6 million in 2Q 2014.
4. Pernix Therapeutics Reports Second Quarter 2015 Financial Results Financial Results - Six Months ending June 30, 2015 For the six month period ended June 30, 2015, net revenues were $80.9 million versus net revenues of $36.4 million for the same period last year. Gross profit margin was
69% of net revenues, up from 46% for the prior period. On a GAAP basis, net loss was $55.9 million, or $1.23 per share versus a net loss of $15.8 million, or $0.42 per share last
year. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $12.5 million for the six months ended June 30, 2015, compared to a loss of $5.9 million
for the same period last year. Liquidity As of June 30, 2015, the Company had $66.8 million of cash and approximately $11.3 million available under its revolving line of credit, subject to borrowing base capacity.
Total principal amount of debt outstanding at the end of the quarter was $357.9 million, including $18.0 million of current debt and $339.9 million of long term debt. Guidance Pernix announced that it is revising its full year financial guidance based on the Company's
performance to date, and what Pernix believes is a reasonable estimate for the balance of the year. The Company now expects net revenue for 2015 to be in the
range of $170 to $180 million. Adjusted EBITDA is expected to be in the range of $30 to $35 million. 2015 represents an investment year for Pernix. While these investments are expected to impact the Company's 2015
performance, Pernix anticipates their effectiveness towards driving long-term value will begin in 2016. These investment actions include: Consistent with the Pernix's regular practice, its guidance does not account for one-time charges, legal settlements and other non-cash items.
5. Pernix Therapeutics Reports Second Quarter 2015 Financial Results Conference Call The webcast of the call will be archived for 30 days via the Investors section of the Company's website (click here). About Pernix Therapeutics Pernix Therapeutics is a specialty pharmaceutical business with a focus on acquiring, developing and commercializing prescription drugs primarily for the U.S. market. The
Company targets underserved therapeutic areas such as CNS, including neurology and psychiatry, and has an interest in expanding into additional specialty segments. The
Company promotes its branded products to physicians through its Pernix sales force, uses contracted sales organizations to market its non-core, cough and cold products, and
markets its generic portfolio through its wholly owned subsidiaries, Macoven Pharmaceuticals, LLC and Cypress Pharmaceutical, Inc. To learn more about Pernix Therapeutics, visit www.pernixtx.com. Treximet® and Silenor®
are registered trademarks of Pernix Therapeutics Holdings, Inc.
Zohydro® ER is a registered
trademark of Pernix Therapeutics Holdings, Inc.
BeadTek™ is a trademark used by Pernix under license. Non-GAAP Financial Measures Pernix is disclosing non-GAAP financial measures in this press release. We believe that these non-GAAP financial measures provide meaningful supplemental information
regarding our operating results because they exclude amounts that management and the board of directors do not consider part of core operating results or that are non-recurring
when assessing the performance of the organization. Primarily due to acquisitions, Pernix believes that an evaluation of its ongoing operations (and comparisons of its current
operations with historical and future operations) would be difficult if the disclosure of its financial results were limited to financial measures prepared only in accordance with U.S.
generally accepted accounting principles (GAAP). In addition to disclosing its financial results determined in accordance with GAAP, Pernix is disclosing non-GAAP results that
exclude items such as amortization expense and certain other expense and revenue items in order to supplement investors' and other readers' understanding and
assessment of the Company's financial performance. Whenever Pernix uses a non-GAAP measure, it will provide a reconciliation of non-GAAP financial
6. Pernix Therapeutics Reports Second Quarter 2015 Financial Results
measures to the most closely applicable GAAP financial measure. Investors and other readers are encouraged
to review the related GAAP financial measures and the reconciliation of non-GAAP measures set forth herein and should consider non-GAAP measures only as a supplement to, not
as a substitute for or as a superior measure to, measures of financial performance prepared in accordance with GAAP. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as
"estimate," "plan," "project," "forecast,"
"intend," "expect," "anticipate," "believe," "seek," "target"
or similar expressions are forward-looking statements. Because these statements reflect the Company's current views, expectations and beliefs concerning future events, these forward-looking statements
involve risks and uncertainties. Investors should note that many factors, as more fully described under the caption "Risk Factors" in our Form 10-K, Form 10-Q and
Form 8-K filings with the Securities and Exchange Commission and as otherwise enumerated herein or therein, could affect the Company's future
financial results and could cause actual results to differ materially from those expressed in forward-looking
statements contained in the Company's Annual Report on Form 10-K. The forward-looking statements
in this press release are qualified by these risk factors. These are factors that, individually or in the aggregate, could cause our actual results to differ materially
from expected and historical results. The Company assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future
developments or otherwise. Contact Investor Relations Media Relations (tables follow)
7. Pernix Therapeutics Reports Second Quarter 2015 Financial Results PERNIX THERAPEUTICS HOLDINGS, INC. AND SUBSIDIARIES
8. Pernix Therapeutics Reports Second Quarter 2015 Financial Results PERNIX THERAPEUTICS HOLDINGS, INC. AND SUBSIDIARIES
9. Pernix Therapeutics Reports Second Quarter 2015 Financial Results PERNIX THERAPEUTICS HOLDINGS, INC. AND SUBSIDIARIES
10. Pernix Therapeutics Reports Second Quarter 2015 Financial Results Supplemental Financial Information The following table presents a reconciliation of Pernix's
net loss to adjusted EBITDA. The Company defines EBITDA as net income plus interest, income tax expense, depreciation and amortization and
presents these measures to assist investors in evaluating Pernix's operating
performance and comparing the Company's results with those of other companies.
Adjusted EBITDA should not be considered in isolation from or as a substitute for net income. PERNIX THERAPEUTICS HOLDINGS, INC. AND SUBSIDIARIES
(1)
To include impact of change in estimates related to gross to net accruals of $3.3 million and $0 for the three months ended June 30, 2015 and 2014,
respectively. Also, to include impact of change in estimates related to gross to net accruals of $3.3 million and $0; and to exclude impact on returns from FDA reclass of
Hydrocodone products from C3 to C2 classification of $303,000 and $0, for the six months ended June 30, 2015 and 2014, respectively.
(2)
To exclude amortization of inventory step-up from acquisitions.
(3)
To exclude deal costs of $3.2 million and $471,000; stock compensation expense of $1.2 million and $740,000; ParaPro stock compensation expense of $0 and $(1.3 million)
and severance expense of $0 and $743,000 for the three months ended June 30, 2015 and 2014, respectively. Also, to exclude deal costs of $3.9 million and $473,000; stock
compensation expense of $2.4 million and $2.5 million; ParaPro stock compensation expense of $0 and $(1.2 million); severance expense of $0 and $766,000 and litigation
settlement expenses of $1.4 million and $0, for the six months ended June 30, 2015 and 2014, respectively.
(4)
To exclude the accrued cost related to the initiative to restructure operations and shut down the Charleston, South Carolina site.
11. Pernix Therapeutics Reports Second Quarter 2015 Financial Results PERNIX THERAPEUTICS HOLDINGS, INC. AND SUBSIDIARIES
(1)
To include impact of change in estimates related to gross to net accruals of $3.3 million and $0 for the three months ended June 30, 2015 and 2014,
respectively. Also, to include impact of change in estimates related to gross to net accruals of $3.3 million and $0; and to exclude impact on returns from FDA reclass of
Hydrocodone products from C3 to C2 classification of $303,000 and $0, for the six months ended June 30, 2015 and 2014, respectively.
(2)
To exclude amortization of inventory step-up from acquisitions.
(3)
To exclude deal costs of $3.2 million and $471,000; stock compensation expense of $1.2 million and $740,000; ParaPro stock compensation expense of $0 and $(1.3 million)
and severance expense of $0 and $743,000 for the three months ended June 30, 2015 and 2014, respectively. Also, to exclude deal costs of $3.9 million and $473,000; stock
compensation expense of $2.4 million and $2.5 million; ParaPro stock compensation expense of $0 and $(1.2 million); severance expense of $0 and $766,000 and litigation
settlement expenses of $1.4 million and $0, for the six months ended June 30, 2015 and 2014, respectively.
(4)
To exclude the accrued cost related to the initiative to restructure operations and shut down the Charleston, South Carolina site.
(5)
To exclude amortization expense for the three and six months ended June 30, 2015 and 2015, respectively.
(6)
To exclude the recognition of deferred financing costs during the three and six months ended June 30, 2015 and 2014 respectively.
(7)
To exclude the aggregate income tax impact of the adjustments utilized to calculate adjusted net income/ (loss).
Three Months Ended
June 30,
Increase
2015
2014
(Decrease)
Product sales, net
Treximet
$
25.5
$
0.0
$
25.5
Silenor
6.0
3.6
2.4
Zohydro
4.0
0.0
4.0
Other products
11.3
12.9
(1.6)
Net product sales
46.8
16.5
30.3
Manufacturing revenue
0.0
0.2
(0.2)
Co-promotion and other revenue
0.2
0.7
(0.5)
Total net revenues
$
47.0
$
17.4
$
29.6
As previously announced, Pernix will hold a conference call to discuss results for the second quarter of 2015 as follows:
Lisa Wilson, (212) 452-2793
In-Site Communications
[email protected]
Marianne Lambertson, (800) 793-2145 ext. 1012
Vice President, Marketing and Corporate Communications
[email protected]
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
June 30,
December 31,
2015
2014
ASSETS
Current assets:
Cash and cash equivalents
$
66,831
$
34,855
Restricted cash
10,002
-
Accounts receivable, net
46,395
44,127
Inventory, net
9,065
10,479
Prepaid expenses and other current assets
17,947
16,550
Income tax receivable
3,047
2,590
Note receivable, net of unamortized discount of $32
and $127, respectively
4,818
4,723
Deferred income tax assets - current
17,619
15,933
Total current assets
175,724
129,257
Property and equipment, net
2,093
1,514
Goodwill
45,080
44,900
Intangible assets, net
381,877
300,489
Other
11,927
11,253
Total assets
$
616,701
$
487,413
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses
$
27,531
$
27,569
Accrued allowances
52,198
52,604
Interest payable
12,200
10,159
Debt - current
7,941
7,345
Senior secured notes - Treximet - current
10,013
-
Restricted cash payable
10,002
-
Total current liabilities
119,885
97,677
Convertible notes - long-term
102,136
65,000
Derivative liability
19,777
-
Contingent consideration
29,327
-
Senior secured notes - Treximet - long-term
209,987
220,000
Deferred income tax liability - long-term
3,651
9,389
Other liabilities
9,405
11,755
Total liabilities
494,168
403,821
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, authorized 10,000,000 shares; no shares issued and outstanding
-
-
Common stock, $0.01 par value, 90,000,000 shares authorized, 63,357,332 and
40,805,659 issued and 60,791,180 and 38,341,352 outstanding
at June 30, 2015 and December 31, 2014, respectively
608
383
Treasury stock, at cost, 2,566,152 and 2,464,307 shares held at June 30, 2015
and December 31, 2014, respectively
(5,540)
(5,431)
Additional paid-in capital
223,862
129,128
Accumulated deficit
(96,397)
(40,488)
Total stockholders' equity
122,533
83,592
Total liabilities and stockholders' equity
$
616,701
$
487,413
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2015
2014
2015
2014
Net revenues
$
46,977
$
17,382
$
80,866
$
36,434
Costs and operating expenses:
Cost of product sales
13,794
9,380
24,870
19,726
Selling, general and administrative expense
24,857
13,222
45,843
26,455
Research and development expense
1,470
345
2,464
1,314
Loss on sale of PML (including impairment charge)
-
215
-
6,672
Depreciation and amortization expense
22,326
1,969
40,759
4,160
Restructuring costs
(108)
-
1,197
-
Total costs and operating expenses
62,339
25,131
115,133
58,327
Loss from operations
(15,362)
(7,749)
(34,267)
(21,893)
Other income (expense):
Interest income
244
100
300
192
Cost of inducement
(19,500)
-
(19,500)
-
Change in fair value of derivative liability
8,703
-
8,703
-
Interest expense
(9,923)
(2,334)
(19,321)
(3,690)
Total other expense, net
(20,476)
(2,234)
(29,818)
(3,498)
Loss before income tax benefit
(35,838)
(9,983)
(64,085)
(25,391)
Income tax benefit
(3,603)
(3,749)
(8,176)
(9,615)
Net loss
$
(32,235)
$
(6,234)
$
(55,909)
$
(15,776)
Net loss per common and potential common share
Basic
$
(0.62)
$
(0.16)
$
(1.23)
$
(0.42)
Diluted
$
(0.62)
$
(0.16)
$
(1.23)
$
(0.42)
Weighted-average common and potential common
shares outstanding:
Basic
52,399
37,828
45,481
37,551
Diluted
52,399
37,828
45,481
37,551
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
2015
2014
Cash flows used in operating activities:
Net loss
$
(55,909)
$
(15,776)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation
147
209
Amortization of intangibles and interest accretion of contingent consideration
40,612
3,951
Amortization of deferred financing costs
1,393
777
Interest accretion of notes receivable
(95)
(171)
Deferred income tax benefit
(7,424)
(5,999)
Loss on disposal of equipment
-
153
Stock compensation expense
3,085
2,519
Fair market value change in derivative liability
(8,703)
-
Accretion of debt discount
616
-
Issuance of stock for inducement
19,500
-
Expense for stock options issued in exchange for services
-
119
Loss on sale of PML (including impairment)
-
6,672
Cancellation of ParaPRO stock options in connection with termination of contract
-
(1,294)
(Increase) decrease in operating assets:
Accounts receivable
(2,268)
2,924
Income taxes
(457)
(4,030)
Inventory
1,414
696
Prepaid expenses and other assets
(1,644)
36
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses
(38)
(982)
Accrued allowances
(406)
-
Interest payable
2,588
-
Other liabilities
(2,334)
-
Net cash used in operating activities
(9,923)
(10,196)
Cash flows from investing activities:
Proceeds from sale of PML
-
1,177
Acquisition of Zohydro ER
(80,927)
-
Proceeds from sale of property and equipment
-
41
Purchase of equipment
(726)
(419)
Net cash (used in) provided by investing activities
(81,653)
799
Cash flows from financing activities:
Net proceeds from issuance of Convertible Notes
130,000
65,000
Net drawdowns (payments) on revolving credit facility
596
(3,731)
Payments for financing costs
(5,045)
(6,231)
Payment of consent fee
(2,150)
-
Payments on mortgages and capital leases
(13)
(46)
Payments on contracts payable
-
(1,500)
Proceeds from issuance of common stock, net of tax
285
1,949
Stock issuance costs
(9)
-
Tax benefit on stock-based awards
-
(147)
Shares withheld for the payment of taxes
(112)
(753)
Net cash provided by financing activities
123,552
54,541
Net increase in cash and cash equivalents
31,976
45,144
Cash and cash equivalents, beginning of period
34,855
15,647
Cash and cash equivalents, end of period
$
66,831
$
60,791
GAAP Net Loss to Adjusted EBITDA Reconciliation Table
(in thousands, except per share data, Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2015
2014
2015
2014
GAAP net loss
$
(32,235)
$
(6,234)
$
(55,909)
$
(15,776)
Adjustments:
Interest expense, net
9,679
2,234
19,021
3,498
Cost of inducement
19,500
-
19,500
-
Change in fair value of derivative liability
(8,703)
-
(8,703)
-
Depreciation and amortization
22,326
1,969
40,759
4,160
Income tax benefit
(3,603)
(3,749)
(8,176)
(9,615)
EBITDA
6,964
(5,780)
6,492
(17,733)
Net revenue adjustments (1)
(3,286)
-
(2,983)
-
Cost of product sales adjustments (2)
-
775
97
2,397
Selling, general and administrative adjustments (3)
4,376
836
7,734
2,758
Loss on sale of PML (including impairment charge)
-
215
-
6,672
Restructuring costs (4)
(108)
-
1,197
-
Adjusted EBITDA
$
7,946
$
(3,954)
$
12,537
$
(5,906)
GAAP Net Loss to Adjusted Net Income Reconciliation Table
(in thousands, except per share data, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2015
2014
2015
2014
GAAP net loss
$
(32,235)
$
(6,234)
$
(55,909)
$
(15,776)
Adjustments:
Net revenues adjustments (1)
(3,286)
-
(2,983)
-
Cost of product sales adjustments (2)
-
775
97
2,397
Selling, general and administrative adjustments (3)
4,376
836
7,734
2,758
Cost of inducement
19,500
-
19,500
-
Change in fair value of derivative liability
(8,703)
-
(8,703)
-
Loss on sale of PML (including impairment charge)
-
215
-
6,672
Restructuring costs (4)
(108)
-
1,197
-
Depreciation and amortization (5)
22,250
1,910
40,614
3,951
Interest expense, net (6)
725
464
1,518
777
Income tax benefit (7)
(7,920)
(1,554)
(12,514)
(6,117)
Adjusted net income/(loss)
$
(5,401)
$
(3,588)
$
(9,449)
$
(5,338)
Basic adjusted net income/(loss) per common share
$
(0.10)
$
(0.09)
$
(0.21)
$
(0.14)
Diluted adjusted net income/(loss) per common share
$
(0.10)
$
(0.09)
$
(0.21)
$
(0.14)
Weighted average number common shares outstanding
52,399
37,828
45,481
37,551
Weighted average number common shares outstanding
assuming dilution
52,399
37,828
45,481
37,551
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