From the Wires
Barr Reports Third Quarter 2008 GAAP Earnings of $0.28 Per Share; Adjusted Earnings of $0.83 Per Share
- Higher Generic Oral Contraceptive Sales Drive Generic Revenue Growth
Nov. 6, 2008 07:30 AM
MONTVALE, N.J., Nov. 6 /PRNewswire-FirstCall/ -- Barr Pharmaceuticals,
Inc. (NYSE: BRL) today reported net earnings of $31 million, or $0.28 per
share, on revenues of $737 million for the quarter ended September 30, 2008.
The current quarter results compare with prior year net earnings of $39
million, or $0.36 per share, on revenues of $602 million. On a non-GAAP basis,
adjusted earnings per share were $0.83 for the third quarter of 2008, as
compared to $0.71 for the prior year period. A reconciliation of GAAP-based
earnings per share to adjusted earnings per share is presented in the table at
the end of this press release.
For the nine months ended September 30, 2008, net earnings were $111
million, or $1.01 per share, compared to $96 million, or $0.88 per share, in
the prior year period. Revenues for the first nine months of 2008 totaled $2.1
billion, compared to $1.8 billion for the same period last year. Adjusted
earnings per share were $2.05 for the nine months ended September 30, 2008,
compared to adjusted earnings per share of $2.22 in the prior year period.
"Our third quarter results reflect continued strong performance by our
women's healthcare portfolio, both generic and proprietary," said Bruce L.
Downey, Barr's Chairman and CEO. "In the United States, we saw a significant
increase in sales of our generic oral contraceptives, primarily driven by
sales of our newest product, Ocella(TM), the generic version of Yasmin(R),
which we launched in June 2008. In addition, sales of our SEASONIQUE(R)
extended-cycle oral contraceptive, PLAN B(R) emergency contraceptive and
PARAGARD(R) IUC proprietary products also contributed to the performance in
the quarter. In October, we received approval of our LoSEASONIQUE(R)
extended-cycle oral contraceptive, further expanding the extended-cycle
contraceptive category we created. In markets outside of North America, our
sales were positively impacted by higher year-over-year sales in all of our
key markets."
"We are pleased that we continued to make progress during the quarter
toward completion of the acquisition of Barr by Teva, and we and Teva continue
to anticipate completing this transaction prior to the end of the year,"
Downey continued. "On October 27th we announced that Barr and its syndicate of
banks, led by Bank of America, successfully negotiated amendments to Barr's
credit agreements that will permit Barr's existing credit facilities to remain
in place once the transaction is closed. In addition, Barr's special
shareholder meeting to vote on the pending transaction is scheduled for
November 21, 2008."
Revenues
Generic Product Sales
The Company's generic product sales were $562 million for the third
quarter of 2008, compared to $434 million in the prior year period. For the
first nine months of 2008, generic product sales were $1.6 billion, compared
to $1.4 billion for the prior year period. A discussion of the Company's
generic product sales for the third quarter of 2008 compared to the prior year
period is presented below.
North American
Sales of North American generic products totaled $350 million for the
third quarter of 2008, compared to $276 million in the prior year period. The
increase in sales is primarily related to higher sales of generic oral
contraceptives.
Sales of generic oral contraceptives were $159 million in the third
quarter of 2008, compared to $112 million in the prior year period. The
increase primarily reflects sales of Ocella(TM), the Company's generic version
of Yasmin(R) that was launched at the end of the second quarter of 2008, which
more than offset lower sales of other oral contraceptive products.
Europe and Rest of the World ("ROW") Generic Sales
Sales of European and ROW generic products were $212 million in the third
quarter of 2008, compared to $158 million in the prior year period. The $54
million increase as compared to last year reflected higher sales in most of
our ROW markets including increases in Poland, Russia and Germany as well as
the positive impact of foreign currency fluctuations which accounted for $22
million of the increase.
Proprietary Product Sales
The Company's proprietary product sales were $133 million for the third
quarter of 2008, compared to $125 million in the prior year period. For the
first nine months of 2008, proprietary product sales were $347 million,
compared to $316 million in the prior year period. The increase in proprietary
sales for the quarter and the nine month period was primarily attributable to
increased sales of several products, including SEASONIQUE(R) extended-cycle
oral contraceptive, Plan B(R) emergency contraceptive and the PARAGARD(R) IUC.
Alliance and Development Revenue
During the third quarter of 2008, the Company reported alliance and
development revenue of $33.1 million, compared to $32.5 million in the prior
year period. The slight increase reflects higher reimbursements from the
Company's development agreement with Shire plc which more than offset
decreased royalties earned from the Company's agreement with Teva
Pharmaceuticals on fexofenadine hydrochloride tablets, the generic version of
Allegra(R) tablets, and lower reimbursements under its Adenovirus agreement
with the Department of Defense.
For the first nine months of 2008, alliance and development revenue was
$158 million, compared to $94 million in the prior year period. The increase
is primarily related to the $53 million payment made by Allergan to Barr in
May 2008 related to Allergan's buy-out of all future financial obligations
related to the Sanctura(R) product that PLIVA divested in 2005 to Esprit
Pharma, which has since been acquired by Allergan.
Other Revenue
Other revenue primarily includes revenue from the Company's non-core
operations, including the diagnostic, disinfectants, dialysis and infusions
(DDD&I) business. Other revenue totaled $9 million for the third quarter of
2008 and $31 million for the first nine months of 2008, as compared to $10
million and $32 million recorded in the prior year periods, respectively.
Margins
Generic: Margins in the generic segment for the third quarter of 2008 and
the first nine months of 2008 were 46% and 47%, respectively, compared to 47%
and 47%, respectively, in the prior year periods.
Proprietary: Margins in the proprietary segment for both the third quarter
of 2008 and the first nine months of 2008 were 76% and 71%, respectively,
compared to 76% and 73% in the prior year periods, respectively.
Update on R&D Activities
Research and development expenses totaled $69 million for the third
quarter of 2008, compared to $62 million in the prior year period. R&D for the
first nine months of 2008 totaled $214 million, compared to $191 million for
the prior year period. The increases reflect greater investment in generic and
bio-generic development activities, both in the U.S. and Europe, and
investment in proprietary development activities in the United States, as well
as the impact of foreign currency fluctuations, which accounted for $2.9
million of the increase in the third quarter.
Generic Products
At September 30, 2008, the Company had approximately 70 Abbreviated New
Drug Applications, including tentatively approved applications, pending at the
U.S. Food and Drug Administration (FDA) targeting branded pharmaceutical
products with an estimated $29 billion in sales. The Company also had
approximately 350 product registrations, representing 87 molecules, pending
with regulatory bodies in Europe and ROW.
During the third quarter of 2008, the Company received four generic
product approvals in the U.S. from the FDA, and approximately 30 approvals,
representing 27 molecules, from regulatory bodies in Europe and ROW.
Proprietary Products
The Company currently has an extensive proprietary clinical development
program that includes four products in Phase III studies and three New Drug
Applications pending at the FDA.
Selling, General and Administrative
The Company's SG&A expenses totaled $234 million during the third quarter
of 2008, compared to $190 million in the prior year period. SG&A for the first
nine months of 2008 totaled $649 million, compared to $557 million for the
prior year period. SG&A for the quarter and nine months ended September 30,
2008 included a one time settlement charge of $26.4 million related to the
Company's offer to settle litigation regarding fexofenadine hydrochloride
tablets. In addition, the increase for the quarter ended September 30, 2008 is
attributable to changes in foreign currency rates, transaction costs related
to the proposed acquisition of Barr by Teva and higher IT and legal costs that
were partially offset by reduced sales and marketing costs. The increase for
the nine months ended September 30, 2008 was attributable to foreign currency
fluctuations, as well as higher legal fees and sales and marketing costs.
Interest Expense/Income and Other (Expense) Income
During the third quarter of 2008, the Company recorded $24 million of
interest expense partially offset by interest income of $3 million. Other
expense totaled $11 million in the quarter reflecting net foreign exchange
transaction losses realized by the Company's PLIVA subsidiary.
Tax Rate
The Company's effective tax rate increased in the current quarter to 43.6%
from 24.4% in the third quarter of 2007 and increased to 44.6% for the nine
months ended September 30, 2008 from 32.1% in the similar period for 2007. The
rate for the three month period ended September 30, 2008 was higher than last
year primarily reflecting a change in the mix of income between certain U.S.
and foreign taxing jurisdictions, a shift in the Company's investment
portfolio from tax-exempt to taxable securities and the inability to utilize
the expired U.S. research and development tax credit which was not reenacted
until after the close of the current quarter. In addition, last year's rate
was reduced by a $9.6 million reduction in our German deferred tax liability
that was not repeated in the current year.
Balance Sheet
The Company's cash, cash equivalents and short-term marketable securities
totaled approximately $602 million at September 30, 2008.
EBITDA
Earnings before interest, taxes, depreciation and amortization (EBITDA)
for the third quarter of 2008 totaled $170 million, compared to $155 million
in the prior year period. Please see the EBITDA reconciliation table at the
end of this press release.
2008 Financial Outlook
The Company is updating its forecasted adjusted earnings per fully diluted
share for 2008 to be in the range of approximately $2.85 - $2.95. The Company
expects total revenues for 2008 to be approximately $2.8 billion, including
total product sales of approximately $2.6 billion.
The Company's adjusted earnings guidance for 2008 excludes: the impact of
amortization costs associated with acquired products; contributions and/or
losses from the DDD&I operations that the Company plans to divest; incremental
depreciation related to purchase accounting; the impact of any unscheduled
launches resulting from patent challenges; other business development
activities; refinancing activities that may be completed after the date hereof
and on or before December 31, 2008; and, expenses incurred resulting from the
pending acquisition of Barr by Teva.
Conference Call/Webcast
The Company will host a Conference Call at 9:00 AM Eastern time on
Thursday, November 6, 2008 to discuss earnings results for the quarter ended
September 30, 2008. The number to call from within the United States remains
(800) 230-1059 and (612) 288-0337 Internationally. A replay of the conference
call will be available from 11:00 AM Eastern time on November 6 through 11:59
PM Eastern time on November 13 and can be accessed by dialing (800) 475-6701
in the United States or (320) 365-3844 Internationally and using the access
code 961801.
The Conference Call will also be Webcast live on the Internet. Investors
and other interested parties may access the live webcast through the Investors
section, under Calendar of Events, on Barr's website at www.barrlabs.com.
Log on at least 15 minutes before the call begins to register and download
or install any necessary audio software.
About Barr Pharmaceuticals, Inc.
Barr Pharmaceuticals, Inc. is a global specialty pharmaceutical company
that operates in more than 30 countries worldwide and is engaged in the
development, manufacture and marketing of generic and proprietary
pharmaceuticals, biopharmaceuticals and active pharmaceutical ingredients. A
holding company, Barr operates through its principal subsidiaries: Barr
Laboratories, Inc., Duramed Pharmaceuticals, Inc. and PLIVA d.d. and its
subsidiaries. The Barr Group of companies markets more than 120 generic and 27
proprietary products in the U.S. and approximately 1,025 products globally
outside of the U.S. For more information, visit www.barrlabs.com.
Forward-Looking Statements
This communication contains "forward-looking statements" which represent
the current expectations and beliefs of management of Barr Pharmaceuticals,
Inc. (the "Company") concerning the proposed merger of the Company (the
"merger") with Boron Acquisition Corp., a wholly-owned subsidiary of Teva
Pharmaceutical Industries Ltd. (the "Teva") and other future events and their
potential effects on the Company. The statements, analyses, and other
information contained herein relating to the proposed merger, as well as other
statements including words such as "anticipate," "believe," "plan,"
"estimate," "expect," "intend," "will," "should," "may," and other similar
expressions, are "forward-looking statements" under the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are not
guarantees of future results and are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
anticipated. Those factors include, without limitation: the difficulty in
predicting the timing and outcome of legal proceedings, including patent-
related matters such as patent challenge settlements and patent infringement
cases; the difficulty of predicting the timing of FDA approvals; court and FDA
decisions on exclusivity periods; the ability of competitors to extend
exclusivity periods for their products; market and customer acceptance and
demand for our pharmaceutical products; our dependence on revenues from
significant customers; reimbursement policies of third party payors; our
dependence on revenues from significant products; the use of estimates in the
preparation of our financial statements; the impact of competitive products
and pricing on products, including the launch of authorized generics; the
ability to launch new products in the timeframes we expect; the availability
of raw materials; the availability of any product we purchase and sell as a
distributor; the regulatory environment in the markets where we operate; our
exposure to product liability and other lawsuits and contingencies; the
increasing cost of insurance and the availability of product liability
insurance coverage; our timely and successful completion of strategic
initiatives, including integrating companies (such as PLIVA d.d.) and products
we acquire; fluctuations in operating results, including the effects on such
results from spending for research and development, sales and marketing
activities and patent challenge activities; the inherent uncertainty
associated with financial projections; our expansion into international
markets through our PLIVA acquisition, and the resulting currency,
governmental, regulatory and other risks involved with international
operations; our ability to service our significantly increased debt
obligations as a result of the PLIVA acquisition; changes in generally
accepted accounting principles; the reactions of the Company's customers and
suppliers to the merger; and diversion of management time on merger-related
issues. These and other applicable risks, cautionary statements and factors
that could cause actual results to differ from the Company's forward-looking
statements are included in the Company's filings with the U.S. Securities and
Exchange Commission ("SEC"), specifically as described in the Company's annual
report on Form 10-K for the fiscal year ended December 31, 2007. The Company
undertakes no obligation to update or revise any forward-looking statements to
reflect subsequent events or circumstances.
Important Legal Information
In connection with the proposed merger, Teva has filed with the SEC a
registration statement on Form F-4 containing a proxy statement/prospectus for
shareholders of the Company, and the Company and Teva may be filing other
documents regarding the proposed transaction with the SEC as well. Before
making any voting or investment decision, investors are urged to read the
proxy statement/prospectus regarding the proposed transaction, as well as the
other documents referred to in the proxy statement/prospectus carefully in
their entirety when they become available because they will contain important
information about the proposed transaction. The definitive proxy
statement/prospectus has been mailed to the Company's shareholders.
Shareholders may obtain a free copy of the proxy statement/prospectus, as well
as other filings containing information about Teva and the Company, without
charge, at the SEC's Internet site (http://www.sec.gov). Copies of the proxy
statement/prospectus and the filings with the SEC that are incorporated by
reference in the proxy statement/prospectus can also be obtained, without
charge, by directing a request by mail or telephone to Barr Pharmaceuticals,
Inc., 225 Summit Avenue, Montvale, NJ, 07645 - Attention: Investor Relations.
The Company and its directors and officers may be deemed to be
participants in the solicitation of proxies from the Company's stockholders
with respect to the proposed merger. Information about the Company's directors
and executive officers and their ownership of the Company's common stock is
set forth in the Company's annual report on Form 10-K for the fiscal year
ended December 31, 2007 and the Company's proxy statement for the Company's
2008 Annual Meeting of Stockholders. Stockholders may obtain additional
information regarding the interests of the Company and its directors and
executive officers in the merger, which may be different than those of the
Company's stockholders generally, by reading the proxy statement and other
relevant documents regarding the proposed merger filed with the SEC.
Barr Pharmaceuticals, Inc. Selected Financial Data
(in millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
Revenues:
Product sales $695 $559 $1,935 $1,706
Alliance and development revenue 33 33 158 94
Other revenue 9 10 31 32
Total revenues 737 602 2,124 1,832
Costs and expenses:
Cost of sales 342 267 970 841
Selling, general and administrative 234 190 649 557
Research and development 69 62 214 191
Write-off of acquired IPR&D - 1 - 5
Earnings from operations 92 82 291 238
Interest income 3 8 15 27
Interest expense 24 38 83 122
Other (expense) income, net (11) 8 (19) 13
Earnings before income taxes and
minority interest 60 60 204 156
Income tax expense 26 15 91 50
Minority interest income (loss), net
of taxes - - 1 (2)
Net earnings from continuing
operations 34 45 114 104
Net loss from discontinued
operations, net of taxes (3) (6) (3) (8)
Net earnings $31 $39 $111 $96
Earnings per common share - diluted:
Earnings per common share -
continuing operations $0.31 $0.41 $1.04 $0.95
Loss per common share - discontinued
operations (0.03) (0.05) (0.03) (0.07)
Net earnings per common share -
diluted $0.28 $0.36 $1.01 $0.88
Weighted average shares - assuming
dilution 111 109 110 109
Stock-based compensation expense:
Cost of sales $3 $2 $8 $7
Selling, general and administrative 5 5 13 12
Research and development 1 1 4 4
Total stock-based compensation
expense $9 $8 $25 $23
$ in millions As of As of
September December
30, 2008 31, 2007
Cash & cash equivalents $587 $246
Marketable securities - current 15 288
Accounts receivable, net 594 497
Other receivables 91 86
Inventories 431 454
Marketable securities - long-term 19 17
Accounts payable & accrued
liabilities 460 443
Working capital 1,160 923
Total assets 4,769 4,762
Total debt 1,946 2,080
Shareholders' equity 2,069 1,866
Reconciliation of Adjusted Earnings to GAAP Earnings; EBITDA
To supplement its consolidated financial statements presented in
accordance with accounting principles generally accepted in the United States
of America ("GAAP"), the Company is providing the supplemental financial
information contained below to reflect (1) the adjusted earnings per share
effect of certain unusual or infrequent charges or benefits that were taken or
received in the quarter ended September 30, 2008, and (2) the calculation of
EBITDA for each period presented.
Adjusted earnings per share and EBITDA are non-GAAP financial measures.
The Company is providing this information, however, because it believes that
such information is useful to both management and investors in that it
facilitates analysis by both management and investors in evaluating the
Company's performance and trends. The presentation of this additional
information is not meant to be considered in isolation of, or as a substitute
for, results prepared in accordance with GAAP.
Barr Pharmaceuticals, Inc. Selected Adjusted Financial Data
(in millions, except per share data)
Three Months Ended September 30, 2008
Adjusted
GAAP Adjustments Earnings
Revenues:
Product sales $695 - $695
Alliance and development revenue 33 - 33
Other revenue 9 (5) (b) 4
Total revenues 737 (5) 732
Costs and expenses:
Cost of sales 342 (53) (b),(c),(d) 289
Selling, general and
administrative 234 (37) (b),(d),(e),(f) 197
Research and development 69 - 69
Write-off of acquired IPR&D - - -
Earnings from operations 92 85 177
Interest income 3 - 3
Interest expense 24 - 24
Other (expense) income, net (11) - (11)
Earnings before income taxes and
minority interest 60 85 145
Income tax expense 26 27 (g) 53
Minority interest income (loss),
net of taxes - - -
Net earnings from continuing
operations 34 58 92
Net loss from discontinued
operations, net of taxes (3) 3 (a) -
Net earnings $31 $61 $92
Diluted:
Earnings per common share -
continuing operations $0.31 $0.83
Loss per common share -
discontinued operations $(0.03) $-
Net earnings per common share -
diluted $0.28 $0.83
Weighted average shares - diluted 111 111
Three Months Ended September 30, 2007
Adjusted
GAAP Adjustments Earnings
Revenues:
Product sales $559 - $559
Alliance and development revenue 33 - 33
Other revenue 10 (5) (b) 5
Total revenues 602 (5) 597
Costs and expenses:
Cost of sales 267 (50) (b),(c),(d) 217
Selling, general and
administrative 190 (9) (b),(f) 181
Research and development 62 - 62
Write-off of acquired IPR&D 1 - 1
Earnings from operations 82 54 136
Interest income 8 - 8
Interest expense 38 - 38
Other (expense) income, net 8 - 8
Earnings before income taxes and
minority interest 60 54 114
Income tax expense 15 22 (g) 37
Minority interest income (loss),
net of taxes - - -
Net earnings from continuing
operations 45 32 77
Net loss from discontinued
operations, net of taxes (6) 6 (a) -
Net earnings $39 $38 $77
Diluted:
Earnings per common share -
continuing operations $0.41 $0.71
Loss per common share -
discontinued operations $(0.05) $-
Net earnings per common share -
diluted $0.36 $0.71
Weighted average shares - diluted 109 109
Summary of Adjustment Items:
Three Months Ended September 30,
2008 2007
(a) In order to provide investors
and management a basis to
evaluate the performance of the
ongoing operations, adjusted
earnings exclude the impact of
discontinued operations for Spain
in 2008 and Italy, Spain and
Veterina in 2007. Accounted for
as discontinued operations $(3) $(6)
(b) Net results from operations
expected to be divested, net of
minority interest:
Other revenue $(5) $(5)
Less:
Cost of sales (5) (4)
Selling, general and administrative (1) (2)
Total $1 $1
To adjust for the results of
operations of our non-core DDD&I
business which is expected to be
divested. The Company believes
adjusting GAAP earnings for this loss
will allow investors to better assess
our ongoing activities.
(c) Amortization and inventory step
up adjustments $(41) $(41)
(d) Incremental PLIVA Depreciation
due to purchase accounting write
up of fixed assets:
Cost of sales $(7) $(5)
Selling, general and administrative (1) -
Total $(8) $(5)
(e) Costs incurred in connection with
proposed acquisition by Teva $(4) $-
(f) To record the net impact of
proposed settlement offer on Allegra
litigation with Sanofi-Aventis and to
increase estimated costs related to
Ovcon litigation $(31) $(7)
(g) Adjustments to tax expense, including:
Tax impact of adjustments (a) - (f)
above $27 $15
Tax (benefit) from recognition of
acquired NOL - (3)
Impact of favorable change in German
tax rate - 10
Total $27 $22
EBITDA (from continuing operations)
Calculation:
Three Months Ended September 30,
2008 2007
Earnings from operations $92 $82
Depreciation 37 32
Amortization 41 41
EBITDA $170 $155
Barr Pharmaceuticals, Inc. Selected Adjusted Financial Data
(in millions, except per share data)
Nine Months Ended September 30, 2008
Adjusted
GAAP Adjustments Earnings
Revenues:
Product sales $1,935 - $1,935
Alliance and development revenue 158 (53) (f) 105
Other revenue 31 (16) (b) 15
Total revenues 2,124 (69) 2,055
Costs and expenses:
Cost of sales 970 (171) (b),(c),(d),(g) 799
Selling, general and
administrative 649 (42) (b),(c),(d),(h),(i) 607
Research and development 214 (1) (d) 213
Write-off of acquired IPR&D - - -
Earnings from operations 291 145 436
Interest income 15 - 15
Interest expense 83 - 83
Other (expense) income, net (19) - (19)
Earnings before income taxes and
minority interest 204 145 349
Income tax expense 91 34 (j) 125
Minority interest income (loss),
net of taxes 1 - 1
Net earnings from continuing
operations 114 111 225
Net loss from discontinued
operations, net of taxes (3) 3 (a) -
Net earnings $111 $114 $225
Diluted:
Earnings per common share -
continuing operations $1.04 $2.05
Loss per common share -
discontinued operations $(0.03) $-
Net earnings per common share -
diluted $1.01 $2.05
Weighted average shares - diluted 110 110
Nine Months Ended September 30, 2007
Adjusted
GAAP Adjustments Earnings
Revenues:
Product sales $1,706 - $1,706
Alliance and development revenue 94 - 94
Other revenue 32 (15) (b) 17
Total revenues 1,832 (15) 1,817
Costs and expenses:
Cost of sales 841 (179) (b),(c),(d) 662
Selling, general and
administrative 557 (21) (b),(c),(d),(h) 536
Research and development 191 (2) (b),(d) 189
Write-off of acquired IPR&D 5 (5) (e) -
Earnings from operations 238 192 430
Interest income 27 - 27
Interest expense 122 - 122
Other (expense) income, net 13 - 13
Earnings before income taxes and
minority interest 156 192 348
Income tax expense 50 54 (j) 104
Minority interest income (loss),
net of taxes (2) - (2)
Net earnings from continuing
operations 104 138 242
Net loss from discontinued
operations, net of taxes (8) 8 (a) -
Net earnings $96 $146 $242
Diluted:
Earnings per common share -
continuing operations $0.95 $2.22
Loss per common share -
discontinued operations $(0.07) $-
Net earnings per common share -
diluted $0.88 $2.22
Weighted average shares - diluted 109 109
Summary of Adjustment Items:
Nine Months Ended September 30,
2008 2007
(a) In order to provide investors
and management a basis to
evaluate the performance of the
ongoing operations, adjusted
earnings exclude the impact of
discontinued operations for Spain
in 2008 and Italy, Spain and
Veterina in 2007. Accounted for
as discontinued operations $(3) $(8)
(b) Net results from operations
expected to be divested, net of
minority interest:
Other revenue $(16) $(15)
Less:
Cost of sales (15) (12)
Selling, general and administrative (4) (4)
Research and development - (1)
Total $3 $2
To adjust for the results of
operations of our non-core DDD&I
business which is expected to be
divested. The Company believes
adjusting GAAP earnings for this loss
will allow investors to better assess
our ongoing activities.
(c) Amortization and inventory step
up adjustments:
Cost of sales $(135) $(154)
Selling, general and administrative (1) (1)
Total $(136) $(155)
(d) Incremental PLIVA Depreciation
due to purchase accounting write up
of fixed assets:
Cost of sales $(20) $(13)
Selling, general and administrative (1) (1)
Research and development (1) (1)
Total $(22) $(15)
(e) Write off of acquired IPR&D
associated with additional PLIVA
shares $- $(5)
(f) Product settlement - Sanctura $(53) $-
(g) Product Royalty contingency $(1) $-
(h) To record the net impact of
proposed settlement offer on Allegra
litigation with Sanofi-Aventis and to
increase estimated costs related to
Ovcon litigation $(32) $(15)
(i) Costs incurred in connection with
proposed acquisition by Teva $(4) $-
(j) Adjustments to tax expense, including:
Tax impact of adjustments (a) - (i)
above $34 $52
Tax (benefit) from recognition of
acquired NOL - (8)
Impact of favorable change in German
tax rate - 10
Total $34 $54
EBITDA (from continuing operations)
Calculation:
Nine Months Ended September 30,
2008 2007
Earnings from operations $291 $238
Depreciation 107 94
Amortization 136 122
Inventory Step up - 33
EBITDA $534 $487
SOURCE Barr Pharmaceuticals, Inc.
About PR NewswireCopyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
.gif)
This article looks at the basic interoperability requirements when communicating with the Cloud, and in particular at techniques and standards used to express and enforce wire-level contracts between communicating parties, as these parties are increasingly also contracting partie...
In the interest of selling more widgetry to more people, IBM has transformed one of its mainframes into what it calls Blue Insight, a private cloud packed initially with a petabyte of structured and unstructured data that 200,000 of its sales, product development and manufacturin...
RightScale, the cloud manager, plans to support Windows Azure and let customers deploy RightScale-managed applications and take advantage of Azure’s particular properties. It said it would support Azure infrastructure-level services through its new Service Management API like it ...
Joyent, whose customers include ABC Disney, CNN, The Gap, Facebook, LinkedIn and Yahoo, developed its own custom OS and data center virtualization technology, which creates a multi-tenant cloud. It’s supposed to deliver more than 70% utilization, which is eight times more than in...
Salesforce.com is going the way of Facebook and Twitter with a reportedly secure private social networking application called Chatter that companies are supposed to use internally so their people can “collaborate” in real-time, but potentially the techzoid equivalent of the old-f...
