Valeant Pharmaceuticals International, Inc. Fourth Quarter and Full Year 2015 Supplemental Information
Forward-looking Statements Forward-looking Statements Certain statements made in this presentation may constitute forward-looking statements, including, but not limited to, statements regarding the timing of the discussion of Q1 2016 results and 2016 guidance for Valeant Pharmaceuticals International, Inc. (“the Company”). Forward- looking statements may generally be identified by the use of the words “anticipates,” “expects,” “intends,” “plans,” “should,” “could,” “would,” “may,” “will,” “believes,” “estimates,” “potential,” “target,” or “continue” and variations or si milar expressions. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in the Company's most recent annual or quarterly report and detailed from time to time in Valeant’s other filings with the Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. Valeant undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect actual outcomes, except as required by law. Non-GAAP Information To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures including (i) Adjusted earnings per share (“EPS”), and (ii) Organic growth. The reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in the tables in the appendix hereto, as well as in the tables to the Company’s press release dated April 29, 2016, a copy of which can be found on the Company’s website at www.valeant.com. Management uses these non -GAAP measures as key metrics in the evaluation of Company performance and the consolidated financial results and, in part, in the determination of cash bonuses for its executive officers. The Company believes these non-GAAP measures are useful to investors in their assessment of our operating performance and the valuation of our Company. In addition, these non-GAAP measures address questions the Company routinely receives from analysts and investors and, in order to assure that all investors have access to similar data, the Company has determined that it is appropriate to make this data available to all investors. However, non-GAAP financial measures are not prepared in accordance with GAAP, as they exclude certain items as described below. Therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Please see the appendix to this presentation for a more detailed description of each non-GAAP financial measure used by the Company herein, including the adjustments reflected in each non-GAAP measure. GAAP net income and GAAP earnings per share are significantly less than Adjusted net income (non-GAAP) and Adjusted EPS (non- GAAP). For additional information about the Company’s use of non - GAAP financial measures, please refer to the non-GAAP appendix. 1
Update Preliminary unaudited fourth quarter 2015 financial results were provided on March 15, 2016 Certain comparative metrics were not provided due to the ongoing restatement of the Company’s financials Ad Hoc Committee Review is now complete 2015 10-K with audited financials and updated press tables filed with the SEC April 29, 2016 No investor call scheduled to discuss final Q4 2015 financial results Q1 2016 results and 2016 guidance will be discussed on future conference calls This document provides updated and supplemental information to the Fourth Quarter 2015 press release and press tables and 2015 Form 10-K 2
Q4 2015 Financial Results Q4 2014 Q4 2015 Y/Y % Restated Total Revenue $2.76 B $2.24 B 23% GAAP EPS 1 ($1.12) 1.50 (175%) Adjusted EPS (non-GAAP) 2 $1.55 $2.59 (40%) GAAP Cash Flow from $562 M $816 M (31%) Operations 1 1) Q4 2014 includes investment gain of $287 million. Not included in Adjusted EPS (non-GAAP). 2) Adjusted EPS (non-GAAP) reported under discontinued tax presentation was $2.41 for Q4 2015 and $2.50 for Q4 2014 restated. This information is being provided solely to reconcile previous disclosures. See page 1 and Appendix hereto for further information on non-GAAP measures, including the reconciliation to the applicable GAAP measure. 3
Full Year 2015 Financial Results FY 2014 FY 2015 Y/Y % Restated Total Revenue $10.45 B $8.20 B 27% GAAP EPS 1 ($0.85) 2.58 (133%) Adjusted EPS (non-GAAP) 2 $8.14 $7.72 5% GAAP Cash Flow from $2.20 B $2.29 B (4%) Operations 1 1) 2014 Includes investment gain of $287 million. Not included in Adjusted EPS (non-GAAP). 2) Adjusted EPS (non-GAAP) reported under discontinued tax presentation was $10.16 for FY 2015 and $8.23 for FY 2014 restated. This information is being provided solely to reconcile previous disclosures. See page 1 and Appendix hereto for further information on non-GAAP measures, including the reconciliation to the applicable GAAP measure. 4
Q4 and FY2015 Organic Growth Same Store Sales* – Y/Y revenue growth rates for businesses that have been owned for one year or more Q4 2015 FY 2015 Total U.S. (10.7%) 15.5% Total Developed (8.7%) 11.3% Total Emerging Markets 4.9% 4.7% Total Company (5.5%) 9.6% Pro Forma* – Y/Y revenue growth rates for entire business, including businesses that have been acquired within the last year Q4 2015 FY 2015 Total U.S. 30.4% 27.8% Total Developed 23.3% 21.5% Total Emerging Markets 8.0% 6.0% Total Company 19.7% 17.9% * See page 1 and Appendix hereto for further information on non-GAAP measures, including the reconciliation to the applicable GAAP measure. 5
Adjustments Since March 15, 2016 Adjusted EPS GAAP EPS Revenue ($M) (non-GAAP) 3 Preliminary 4Q Results as of March 15, 2016 $2,788.7 ($0.98) $2.50 Addyi Revenue – shift from “sell - in” to ($0.04) ($16.2) ($0.04) “sell - through” Xifaxan - returns reserve adjustment ($0.01) ($0.01) ($5.1) Increased Professional Services Fees ($0.02) ($0.01) IP Related Adjustments ($0.04) Additional items post March 15, 2016 ($10.2) ($0.03) ($0.03) Reconciliation of 4Q Results under ($1.12) previous tax methodology 1 $2,757.2 $2.41 Effect of change in tax methodology ($0.87) ($1.12) Final 4Q Results 2 $2,757.2 $1.55 1) Reconciliation for Adjusted EPS (non-GAAP) reported under discontinued tax presentation. The prior presentation methodology is no longer being used. This information is being provided solely to reconcile previous disclosures. 2) Reflect elimination of tax effects of use of tax attributes and other timing items, which had been under discontinued tax presentation. Total for Adjusted EPS (non-GAAP) does not foot due to rounding. 3) See page 1 and Appendix hereto for further information on non-GAAP measures, including the reconciliation to the applicable GAAP measure. 6
Q4 2015 Top 30 Brands ($M) Q4 Primary Q1 Q2 Q3 Product 2015 Business Unit 2015 2015 2015 Final 1) Xifaxan 2 GI - 148 220 205 2) Wellbutrin 1 Neuro & Other 68 67 92 93 3) Glumetza 2 GI - 26 53 81 Oncology 4) Provenge 30 74 69 77 /Urology 5) SofLens 1, 2 Lens 81 84 84 73 6) Jublia Dermatology 62 102 106 68 7) Ocuvite / Consumer 60 59 57 61 Preservision 1, 2 8) Omeprazole 2 Generics - 20 17 58 9) Nitropress Neuro & Other 62 64 35 58 10) ReNu 1 Consumer 53 59 54 54 Top 30 represent 52% of total company fourth quarter revenue 1) Sales depressed on 11 of top 30 products due to F/X impact. 2) Sales changed from previous presentation on March 15, 2016 due to additional adjustment. 7
Q4 2015 Top 30 Brands ($M) Q4 Primary Q1 Q2 Q3 Product 2015 Business Unit 2015 2015 2015 Final 11) Isuprel Neuro & Other 72 49 50 53 12) Xenazine 1 Neuro & Other 57 66 73 50 13) Lotemax Ophthalmology 43 53 44 43 14) Uceris Tablets GI - 24 46 39 15) CeraVe 1 Consumer 30 30 26 38 16) PureVision 1 Consumer 44 44 42 35 17) Arestin 2 Dental 32 52 35 32 18) Apriso GI - 31 35 31 19) Biotrue MPS 1, 2 Consumer 28 29 31 27 20) Cuprimine Neuro & Other 8 8 27 27 Top 30 represent 52% of total company fourth quarter revenue 1) Sales depressed on 11 of top 30 products due to F/X impact. 2) Sales changed from previous presentation on March 15, 2016 due to additional adjustments. 8
Recommend
More recommend
