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Endo Pharmaceuticals Reports Strong Third-Quarter Financial Results and Reaffirms 2011 Financial Guidance

October 27, 2011

CHADDS FORD, Pa., Oct. 27, 2011 /PRNewswire/ —

  • Total quarterly revenues of $759 million increase 71 percent versus prior year; branded pharmaceuticals revenues grow 17 Percent, reflecting strong performance of OPANA® ER, Voltaren® Gel and LIDODERM®;
  • Reported quarterly diluted EPS of $0.34 versus $0.46 for prior year
  • Adjusted diluted EPS of $1.25 reflecting growth of 45 percent from 2010
  • Company reaffirms 2011 guidance for revenue of $2.72 to $2.80 billion and adjusted diluted EPS of $4.55 to $4.65; now expects reported or GAAP diluted EPS of $1.87 to $1.97
  • Company makes progress on integration and build-out of its urology franchise

Endo Pharmaceuticals (Nasdaq: ENDP) today reported financial results for the third quarter of 2011.

Total revenues during the third quarter of 2011 increased 71 percent to $759.1 million, compared with $444.1 million in the same quarter of 2010. Net income for the three months ended Sept. 30, 2011, was $40.6 million, compared with $54.2 million in the comparable 2010 period.

Additionally, adjusted net income for the three months ended Sept. 30, 2011, was $151.1 million, up 50 percent compared with $100.8 million in the same period in 2010. Reported diluted earnings per share for the quarter ended Sept. 30, 2011, were $0.34 compared with $0.46 reported in the third quarter of 2010. Adjusted diluted earnings per share for the same period were $1.25, up 45 percent from $0.86 reported in 2010.

“Endo had another strong quarter, with record revenues and adjusted earnings, led by Opana ER, generics and AMS’s Men’s Health business,” said Dave Holveck, president and CEO of Endo. “This performance is a testament to our diversified business model, and our commitment to enhancing healthcare delivery, which allows us to continue to bring together the aggregate capabilities of all our companies to create more solutions for patients, payors and physicians particularly across the entire urology spectrum.”

FINANCIAL PERFORMANCE AT A GLANCE


    ($ in thousands, except per share
     amounts)
                                                 Nine Months
                                                              Ended
                                                            September
                  3rd Quarter                                    30
                   2011      2010   Change        2011        2010   Change
    Total
     Revenues  $759,078  $444,103       71% $1,926,715  $1,205,039       60%
     Reported
     Net
     Income      40,649    54,206      -25%    151,019     166,021       -9%
     Reported
     Diluted
     EPS           0.34      0.46      -26%       1.24        1.42      -13%
     Adjusted
     Net
     Income     151,089   100,839       50%    399,967     282,720       41%
     Adjusted
     Diluted
     EPS           1.25      0.86       45%       3.29        2.41       37%

BRANDED PHARMACEUTICALS

Branded pharmaceutical sales of $425.5 million for the third quarter 2011 represented an increase of 17 percent versus the prior year. These results reflect strong commercial performance in our branded pain franchise, where net sales grew 18 percent year over year, with a strong third-quarter performance by OPANA® ER, Voltaren® Gel and LIDODERM®. OPANA® ER net sales grew 66 percent on prescription growth of 56 percent. Voltaren® Gel net sales grew 35 percent. FORTESTA® Gel, a topical gel for the treatment of hypogonadism, recorded approximately $8 million in revenue, which includes the recognition of roughly $4 million previously classified as deferred revenue.

GENERICS

Generic sales of $148 million for the third quarter 2011 represented an increase of 439 percent over last year, driven by our acquisition of Qualitest. Quarter over quarter, generic sales increased $14.9 million, primarily as a result of having the operational flexibility to capitalize on certain market conditions that created new business opportunities for Endo’s Qualitest business. The company continues to execute on its ANDA pipeline in multiple therapeutic areas, with 50 ANDAs currently under U.S. Food and Drug Administration (FDA) review.

DEVICES AND SERVICES

Devices and services sales, driven by our June 2011 acquisition of American Medical System (AMS), were $185.6 million for the third quarter, an increase of 259 percent over the prior year. Men’s Health, led by strong sales of the AMS 800 Artificial Urinary Sphincter, grew 21 percent on a pro forma basis in the third quarter of 2011, compared with same period last year. In early September, an FDA advisory panel met to discuss the use of surgical mesh products in the repair of pelvic organ prolapse and stress urinary incontinence, which the company believes led to reduced procedural volumes during the quarter. However, the company believes that the advisory panel addressed the questions raised and that a recovery in procedural volumes will emerge in the near term.

UROLOGY CHANNEL STRATEGY

Endo Pharmaceuticals believes that strong relationships with urologists are an important component in the growth of its urology franchise, and the company continues to take steps to further strengthen these relationships. During the third quarter of 2011, the AMS integration effort developed plans to deliver revenue and cost synergies associated with the transaction. The company is launching commercial pilot programs to advance cross-selling initiatives for the AMS’s Men’s Health Products and Endo’s Fortesta® Gel. In addition, the company is exploring opportunities to expand the utilization of Endocare® cryoablation therapy and AMS’ BPH laser through our HealthTronics franchise.

As part of an effort to increase and broaden the relationships within the urology community, HealthTronics recently committed to strategic investments in Intuitive Medical Software (IMS) and meridianEMR, Inc., two providers of electronic medical records for urologists. Together, IMS and meridianEMR provide access to approximately 1,800 urologists using data platforms that will enhance service offerings in urology practice management.

Balance Sheet Update

During the third-quarter of 2011, Endo made payments of $151 million to reduce the outstanding principal of term loan debt associated with the acquisition of AMS. This action is consistent with the company’s objective of reducing its debt to EBITDA ratio to 2.0 to 2.5 times by 2013.

2011 FINANCIAL GUIDANCE

Endo’s estimates are based on actual results for the nine months ended Sept. 30, 2011. The company’s guidance for reported (GAAP) earnings per share does not include any estimates for the potential future changes in the fair value of contingent consideration, certain separation benefits, any asset impairment charges or for potential new corporate development transactions. For the full year ended Dec. 31, 2011, Endo estimates:

  • Total revenue between $2.72 billion and $2.80 billion
  • Total Branded Pharmaceuticals segment revenue between $1.625 billion and $1.69 billion
  • Total Generics segment revenue between $550 million and $575 million
  • Total Device and Services segment revenue between $520 million and $550 million
  • Reported (GAAP) diluted earnings per share between $1.87 and $1.97
  • Adjusted diluted earnings per share between $4.55 and $4.65

The company’s 2011 guidance is based on certain assumptions including:

  • Adjusted gross margin between 69 percent and 71 percent
  • Adjusted effective tax rate of approximately 28 percent
  • Weighted average number of common shares outstanding of 121 million shares for the year ended Dec. 31, 2011
  • No generic competition for Voltaren Gel in 2011

Conference Call Information

Endo will conduct a conference call with financial analysts to discuss this news release today at 10:00 a.m. ET. Investors and other interested parties may call 800-901-5241 (domestic) or +1 617-786-2963 (international) and enter passcode 11948354. Please dial in 10 minutes prior to the scheduled start time.

A replay of the call will be available from Oct. 27 at 1:00 p.m. ET until 12:00 p.m. ET on Nov. 10, 2011 by dialing 888-286-8010 (domestic) or +1 617-801-6888 (international) and entering passcode 77092041.

A simultaneous webcast of the call can be accessed by visiting www.endo.com. In addition, a replay of the webcast will be available until 12:00 p.m. ET on Nov. 10, 2011. The replay can be accessed by clicking on “Events” in the Investor Relations section of the website.

Supplemental Financial Information

The following tables provide a reconciliation of our reported (GAAP) statements of operations to our adjusted statements of operations for each of the three months ended Sept. 30, 2011 and Sept. 30, 2010 (in thousands, except per share data):


    Three Months Ended
     September 30, 2011
     (unaudited)              Actual    Adjustments         Adjusted
                              ------    -----------         --------
                             Reported
                             --------
                              (GAAP)
                              ------
    REVENUES                 $759,078            $-         $759,078

    COSTS AND EXPENSES:
      Cost of revenues        302,172       (80,625)   (1)   221,547
      Selling, general and
       administrative         244,359       (15,761)   (2)   228,598
      Research and
       development             43,884        (2,355)   (3)    41,529
      Impairment of long-
       lived assets            22,691       (22,691)   (4)         -
      Acquisition-related
       items                    5,818        (5,818)   (5)         -
                                -----        ------              ---

    OPERATING INCOME         $140,154      $127,250         $267,404
                             --------      --------         --------

    INTEREST EXPENSE, NET      52,792        (4,754)   (6)    48,038
    OTHER INCOME, NET          (3,000)        2,636    (7)      (364)
                               ------         -----             ----

    INCOME BEFORE INCOME
     TAXES                    $90,362      $129,368         $219,730
                              -------      --------         --------

    INCOME TAXES               34,057        18,928    (8)    52,985
                               ------        ------           ------

    CONSOLIDATED NET
     INCOME                   $56,305      $110,440         $166,745
                              -------      --------         --------

      Less: Net income
       attributable to
       noncontrolling
       interests              (15,656)            -          (15,656)
                              -------           ---          -------

    NET INCOME
     ATTRIBUTABLE TO ENDO
     PHARMACEUTICALS
     HOLDINGS INC.            $40,649       110,440         $151,089
                              =======       =======         ========

    DILUTED EARNINGS PER
     SHARE                      $0.34                          $1.25
    DILUTED WEIGHTED
     AVERAGE SHARES           120,847                        120,847

Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations:


         To exclude amortization of commercial intangible assets related to
         marketed products of $55,337, the impact of inventory step-up recorded
         as part of acquisition accounting of $23,937, and certain integration
         costs and separation benefits incurred in connection with continued
    (1)  efforts to enhance the company's operations of $1,351.
         To exclude certain integration costs and separation benefits incurred in
         connection with continued efforts to enhance the company's operations
    (2)  of $12,252 and amortization of customer relationships of $3,509.
    (3) To exclude milestone and upfront payments to partners.
    (4) To exclude an impairment on long-lived assets.
         To exclude acquisition-related costs of $6,046 and a gain of $228
         recorded to reflect the change in fair value of the contingent
    (5)  consideration associated with the Qualitest acquisition.
         To exclude additional interest expense as a result of adopting ASC
    (6)  470-20.
    (7) To exclude the gain on hedging activities for foreign currencies.
         To reflect the cash tax savings results from our recent acquisitions and
         the tax effect of the pre-tax adjustments above at applicable tax
    (8)  rates.


    Three Months Ended
     September 30, 2010
     (unaudited)              Actual    Adjustments         Adjusted
                              ------    -----------         --------
                             Reported
                             --------
                              (GAAP)
                              ------
    REVENUES                 $444,103            $-         $444,103

    COSTS AND EXPENSES:
                                            (20,792
      Cost of revenues        133,920             )    (1)   113,128
      Selling, general and
       administrative         137,816        (7,050)   (2)   130,766
      Research and
       development             31,445          (309)   (3)    31,136
      Acquisition-related
       items                   24,990       (24,990)   (4)         -
                               ------       -------              ---

    OPERATING INCOME         $115,932       $53,141         $169,073
                             --------       -------         --------

    INTEREST EXPENSE, NET      12,979        (4,245)   (5)     8,734
    OTHER INCOME, NET             (59)            -              (59)
                                  ---           ---              ---

    INCOME BEFORE INCOME
     TAXES                   $103,012       $57,386         $160,398
                             --------       -------         --------

    INCOME TAXES               33,540        10,753    (6)    44,293
                               ------        ------           ------

    CONSOLIDATED NET
     INCOME                   $69,472       $46,633         $116,105
                              -------       -------         --------

      Less: Net income
       attributable to
       noncontrolling
       interests              (15,266)            -          (15,266)
                              -------           ---          -------

    NET INCOME
     ATTRIBUTABLE TO ENDO
     PHARMACEUTICALS
     HOLDINGS INC.            $54,206        46,633         $100,839
                              =======        ======         ========

    DILUTED EARNINGS PER
     SHARE                      $0.46                          $0.86
    DILUTED WEIGHTED
     AVERAGE SHARES           116,597                        116,597

Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations:


         To exclude amortization of commercial intangible assets related to
         marketed products of $19,378 and the impact of a HealthTronics
         inventory step-up recorded as part of acquisition accounting of
    (1)  $1,414.
         To exclude certain costs incurred with connection with continued efforts
    (2)  to enhance the Company's operations.
    (3) To exclude milestone and upfront payments to partners.
         To exclude acquisition-related costs of $23,960 as well as the impact,
         under purchasing accounting, of a loss recorded to reflect the change
         in the company's current estimate of fair value, in accordance with
         GAAP, of the contingent consideration associated with the Indevus
    (4)  acquisition of $1,030.
         To exclude additional interest expense as a result of adopting ASC
         470-20 of $4,338 and to exclude amortization of the premium on debt
    (5)  acquired from Indevus of ($93).
         To reflect the cash tax savings resulting from the Indevus,
         HealthTronics and Penwest acquisitions and the tax effect of the pre-
    (6)  tax adjustments above at applicable tax rates.

The following tables provide a reconciliation of our reported (GAAP) statements of operations to our adjusted statements of operations for each of the nine months ended Sept. 30, 2011 and Sept. 30, 2010 (in thousands, except per share data):


    Nine Months Ended
     September 30,
     2011(unaudited)           Actual    Adjustments         Adjusted
                               ------    -----------         --------
                             Reported
                             --------
                               (GAAP)
                               ------
    REVENUES                $1,926,715            $-        $1,926,715

    COSTS AND EXPENSES:
      Cost of revenues         770,427      (183,640)   (1)    586,787
      Selling, general and
       administrative          581,878       (20,177)   (2)    561,701
      Research and
       development             126,854       (18,346)   (3)    108,508
      Impairment of long-
       lived assets             22,691       (22,691)   (4)          -
      Acquisition-related
       items                    29,517       (29,517)   (5)          -
                                ------       -------               ---

    OPERATING INCOME          $395,348      $274,371          $669,719
                              --------      --------          --------

    INTEREST EXPENSE, NET       97,142       (14,014)   (6)     83,128
    GAIN ON EXTINGUISHMENT
     OF DEBT, NET                8,548        (8,548)   (7)          -
    OTHER INCOME, NET           (2,777)        2,636    (8)       (141)
                                ------         -----              ----

    INCOME BEFORE INCOME
     TAXES                    $292,435      $294,297          $586,732
                              --------      --------          --------

    INCOME TAXES               100,283        45,349    (9)    145,632
                               -------        ------           -------

    CONSOLIDATED NET
     INCOME                   $192,152      $248,948          $441,100
                              --------      --------          --------

      Less: Net income
       attributable to
       noncontrolling
       interests               (41,133)            -           (41,133)
                               -------           ---           -------

    NET INCOME
     ATTRIBUTABLE TO ENDO
     PHARMACEUTICALS
     HOLDINGS INC.            $151,019       248,948          $399,967
                              ========       =======          ========

    DILUTED EARNINGS PER
     SHARE                       $1.24                           $3.29
    DILUTED WEIGHTED
     AVERAGE SHARES            121,432                         121,432

Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations:


         To exclude amortization of commercial intangible assets related to
         marketed products of $132,571, the impact of inventory step-up
         recorded as part of acquisition accounting of $40,718, certain
         integration costs and separation benefits incurred in connection with
         continued efforts to enhance the company's operations of $1,351 and
    (1)  milestone payments to partners of $9,000.
         To exclude certain integration costs and separation benefits incurred in
         connection with continued efforts to enhance the company's operations
    (2)  of $16,247 and amortization of customer relationships of $3,930.
    (3) To exclude milestone and upfront payments to partners.
    (4) To exclude an impairment on long-lived assets.
         To exclude acquisition-related costs of $36,975 and a gain of $7,458
         recorded to reflect the change in fair value of the contingent
    (5)  consideration associated with the Indevus and Qualitest acquisitions.
         To exclude additional interest expense as a result of adopting ASC
    (6)  470-20.
         To exclude the unamortized debt issuance costs written off and recorded
         as a loss on extinguishment of debt upon the early termination of our
    (7)  2010 Credit Facility.
    (8) To exclude the gain on hedging activities for foreign currencies.
         To reflect the cash tax savings results from our recent acquisitions and
         the tax effect of the pre-tax adjustments above at applicable tax
    (9)  rates.


    Nine Months Ended
     September 30, 2010
     (unaudited)                Actual    Adjustments         Adjusted
                                ------    -----------         --------
                              Reported
                              --------
                                (GAAP)
                                ------
    REVENUES                 $1,205,039            $-        $1,205,039

    COSTS AND EXPENSES:
       Cost of revenues         335,209       (55,144)   (1)    280,065
       Selling, general and
        administrative          404,402       (16,058)   (2)    388,344
       Research and
        development             105,269       (19,712)   (3)     85,557
       Impairment of other
        intangible assets        13,000       (13,000)   (4)          -
       Acquisition-related
        items                    31,315       (31,315)   (5)          -
                                 ------       -------               ---

    OPERATING INCOME           $315,844      $135,229          $451,073
                               --------      --------          --------

    INTEREST EXPENSE, NET        32,767       (12,507)   (6)     20,260
    OTHER INCOME, NET              (479)         (239)   (7)       (718)
                                   ----          ----              ----

    INCOME BEFORE INCOME
     TAXES                     $283,556      $147,975          $431,531
                               --------      --------          --------

    INCOME TAXES                102,269        31,276    (8)    133,545
                                -------        ------           -------

    CONSOLIDATED NET
     INCOME                    $181,287      $116,699          $297,986
                               --------      --------          --------

      Less: Net income
       attributable to
       noncontrolling
       interests                (15,266)            -           (15,266)
                                -------           ---           -------

    NET INCOME
     ATTRIBUTABLE TO ENDO
     PHARMACEUTICALS
     HOLDINGS INC.             $166,021       116,699          $282,720
                               ========       =======          ========

    DILUTED EARNINGS PER
     SHARE                        $1.42                           $2.41
    DILUTED WEIGHTED
     AVERAGE SHARES             117,096                         117,096

Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations:


         To exclude amortization of commercial intangible assets related to
         marketed products of $53,730 and the impact of a HealthTronics
         inventory step-up recorded as part of acquisition accounting of
    (1)  $1,414.
         To exclude certain costs incurred with connection with continued efforts
    (2)  to enhance the Company's operations.
         To exclude a milestone-like payment and milestone and upfront payments
         to partners of $19,200 and certain costs incurred in connection with
    (3)  continued efforts to enhance the cost structure of the company of $512.
    (4) To exclude an impairment of other intangible assets.
         To exclude acquisition-related costs of $29,165 as well as the impact,
         under purchase accounting, of a loss recorded to reflect the change in
         the company's current estimate of fair value, in accordance with GAAP,
         of the contingent consideration associated with the Indevus acquisition
    (5)  of $2,150.
         To exclude additional interest expense as a result of adopting ASC
         470-20 of $12,788 and to exclude amortization of the premium on debt
    (6)  acquired from Indevus of ($281).
    (7) To exclude changes in fair value of financial instruments, net.
         To reflect the cash tax savings resulting from the Indevus,
         HealthTronics and Penwest acquisitions and the tax effect of the pre-
    (8)  tax adjustments above at applicable tax rates.

For an explanation of Endo’s reasons for using non-GAAP measures, see Endo’s Current Report on Form 8-K filed today with the Securities and Exchange Commission.


                Reconciliation of Projected GAAP Diluted Earnings Per Share
                  to Adjusted Diluted Earnings Per Share Guidance for 2011

                                                                       Year Ending
                                                                       December 31,
                                                                             2011

    Projected GAAP diluted income per common
     share                                                           $1.87   To     $1.97
    Upfront and milestone-related payments to
     partners                                                        $0.25          $0.25
    Amortization of commercial intangible
     assets and inventory step-up                                    $2.10          $2.10
    Acquisition and integration costs related
     to recent acquisitions.                                         $0.48          $0.48
    Impairment of long-lived assets through
     September 30, 2011                                              $0.19          $0.19
    Interest expense adjustment for ASC 470-20                       $0.16          $0.16
    Tax effect of pre-tax adjustments at the
     applicable tax rates and certain other
     expected cash tax savings as a result of
     recent acquisitions                                            ($0.50)        ($0.50)
    Diluted adjusted income per common share
     guidance                                                        $4.55   To     $4.65

    The company's guidance is being issued based on certain
     assumptions including:
    --Certain of the above amounts are based on estimates and
     there can be no assurance that Endo will achieve these
     results.
    --Includes all completed business development transactions
     as of October 27, 2011.

About Endo

Endo Pharmaceuticals is a U.S.-based, specialty healthcare solutions company with a diversified business model, operating in three key business segments – branded pharmaceuticals, generics and devices and services. We deliver an innovative suite of complementary products and services to meet the needs of patients in areas such as pain management, pelvic health, urology, endocrinology and oncology. For more information about Endo Pharmaceuticals, and its wholly owned subsidiaries American Medical Systems, HealthTronics, Inc. and Qualitest Pharmaceuticals, please visit http://www.endo.com/.


                                   (Tables Attached)

The following tables present Endo’s unaudited Net Revenues for the three and nine months ended Sept. 30, 2011 and 2010:


                                Endo Pharmaceuticals Holdings Inc.
                                     Net Revenues (unaudited)
                                          (in thousands)

                                     Three Months Ended                  Nine Months Ended
                                     ------------------                  -----------------
                                        September 30                       September 30
                                        ------------                       ------------
                                  2011       2010  Percent             2011         2010  Percent
                                  ----       ----  -------             ----         ----  -------
                                                    Growth                                Growth
                                                    ------                                ------

     Branded
     Pharmaceuticals

    LIDODERM(R)               $207,364   $196,263         6%       $592,929     $574,960        3%
     OPANA(R)
     ER                         97,753     58,809        66%        275,221      165,130       67%
     Voltaren(R)
     Gel                        36,260     26,947        35%        104,213       73,632       42%
    PERCOCET(R)                 28,130     29,950        -6%         82,765       90,428       -8%
    FROVA(R)                    14,815     14,136         5%         42,186       43,898       -4%

     SUPPRELIN(R)
     LA                         12,695     11,018        15%         36,432       33,814        8%
    VANTAS(R)                    5,013      3,640        38%         10,612       12,989      -18%
    VALSTAR(R)                   6,295      1,598       294%         16,220        9,364       73%
     FORTESTA(R)
     Gel                         8,409          -        NM           9,468            -       NM

     Other
     Branded
     Products(1)                 4,948    $19,472       -75%         17,527      $58,528      -70%
     Royalty
     and
     Other
     Revenue                     3,829      3,153        21%         11,719        9,619       22%
                                 -----      -----                    ------        -----

     Total
     Branded
     Pharmaceuticals          $425,511   $364,986        17%     $1,199,292   $1,072,362       12%

     Total
     Generics                 $147,975    $27,431       439%       $415,431      $80,991      413%

     Devices
     and
     Services
    HealthTronics              $54,073    $51,686         5%       $153,661      $51,686      197%

    AMS
     Men's
     Health                    $66,548         $-        NM         $76,316           $-       NM
     Women's
     Health                     38,240          -        NM          46,027            -       NM
     BPH
     Therapy                    26,731          -        NM          35,988            -       NM
                                ------        ---                    ------          ---

     Sub-
     total                    $131,519         $-        NM        $158,331           $-       NM
                              --------        ---                  --------          ---

     Total
     Device
     and
     Services                 $185,592    $51,686       259%       $311,992      $51,686      504%
                              --------    -------                  --------      -------

     Total
     Revenue                  $759,078   $444,103        71%     $1,926,715   $1,205,039       60%
                              ========   ========                ==========   ==========

    (1) To conform to current year presentation, net
     sales from our non-time released formulation of
     OPANA(R) have been reclassified and are now included
     within other branded product results.

The following table presents Endo’s unaudited Pro forma Net Revenues for the seven quarters ended Sept. 30, 2011 giving effect to the AMS acquisition, the Qualitest acquisition, the Penwest acquisition and the HealthTronics, Inc acquisition as if they had occurred on Jan. 1, 2010 :


                                  Endo Pharmaceuticals Holdings Inc.
                                  Net Pro Forma Revenues (unaudited)
                                            (in thousands)

                                                            2010                 2011
                          Q1         Q2         Q3         Q4         Q1        Q2       Q3
                         ---        ---        ---        ---        ---       ---      ---

     Branded
     Pharmaceuticals

    LIDODERM(R)        $182,607   $196,090   $196,263   $207,649   $189,725  $195,840 $207,364
    OPANA(R) ER          49,765     56,555     58,809     74,735     84,615    92,853   97,753
    Voltaren(R) Gel      20,362     26,323     26,947     31,309     31,298    36,655   36,260
    PERCOCET(R)          28,673     31,805     29,950     30,919     26,960    27,675   28,130
    FROVA(R)             15,082     14,680     14,136     15,401     13,208    14,163   14,815

    SUPPRELIN(R) LA      10,587     12,209     11,018     13,096     11,222    12,515   12,695
    VANTAS(R)             4,389      4,960      3,640      4,001      3,545     2,054    5,013
    VALSTAR(R)            3,749      4,016      1,598      4,757      4,801     5,124    6,295
    FORTESTA(R) Gel           -          -          -          -       (969)    2,028    8,409

    Other Branded
     Products(1)         19,259     19,799     19,472     10,069      6,970     5,609    4,948
    Royalty and
     Other Revenue        5,911      3,647      4,101      3,325      4,221     3,751    3,829
                          -----      -----      -----      -----      -----     -----    -----

    Total Branded
     Pharmaceuticals   $340,384   $370,084   $365,934   $395,261   $375,596  $398,267 $425,511

    Total Generics     $105,809   $112,075   $126,663   $122,791   $134,409  $133,047 $147,975

     Device
     and
     Services
    HealthTronics       $48,389    $50,300    $51,686    $50,458    $50,103   $49,485  $54,073

    AMS
    Men's Health        $64,480    $61,361    $55,177    $65,221    $67,407   $47,790  $66,548
    Women's Health       42,748     44,491     41,192     48,816     45,325    46,689   38,240
    BPH Therapy          25,911     29,176     26,890     32,615     28,054    29,784   26,731
    Uterine
     Health(2)            1,787      1,340        770        341          -         -        -
                          -----      -----        ---        ---        ---       ---      ---

    Sub-total          $134,926   $136,368   $124,029   $146,993   $140,786  $124,263 $131,519
                       --------   --------   --------   --------   --------  -------- --------

    Total Device
     and Services      $183,315   $186,668   $175,715   $197,451   $190,889  $173,748 $185,592
                       --------   --------   --------   --------   --------  -------- --------

    Total Revenue      $629,508   $668,827   $668,312   $715,503   $700,894  $705,062 $759,078
                       ========   ========   ========   ========   ========  ======== ========

    (1) To conform to current year presentation, net sales
     from our non-time released formulation of Opana(R) have
     been reclassified and are now included within other
     branded product results.

    (2) The uterine health product line, Her Option(R) was sold
     in February 2010.  Revenues for 2010 consist of end-
     customer revenue earned prior to the date of sale, in
     addition to revenue earned as part of the product supply
     agreement with CooperSurgical, Inc., which continued
     through the fourth quarter of 2010.

The following table presents unaudited condensed consolidated Balance Sheet data at Sept. 30, 2011 and Dec. 31, 2010:


                                                      September   December
                                                         30,         31,
                                                     ----------  ---------
                                                           2011        2010
                                                           ----        ----
    ASSETS
    CURRENT ASSETS:
        Cash and cash equivalents                      $419,671    $466,214
        Marketable securities                            41,010           -
        Accounts receivable, net                        721,984     547,807
        Inventories, net                                282,540     178,805
        Other assets                                    211,899     166,708
                                                        -------     -------

            Total current assets                     $1,677,104  $1,359,534

    PROPERTY, PLANT AND EQUIPMENT, NET                  273,488     215,295
    GOODWILL                                          2,496,859     715,005
    OTHER INTANGIBLES, NET                            2,766,049   1,531,760
    OTHER ASSETS                                        147,343      90,795
                                                        -------      ------

    TOTAL ASSETS                                     $7,360,843  $3,912,389
                                                     ==========  ==========

    LIABILITIES AND STOCKHOLDERS' EQUITY
    CURRENT LIABILITIES:
        Current liabilities                            $993,636    $735,828
                                                       --------    --------

            Total current liabilities                  $993,636    $735,828

    ACQUISITION-RELATED CONTINGENT CONSIDERATION          2,529      16,050
    LONG-TERM DEBT, LESS CURRENT PORTION, NET         3,565,184   1,045,801
    OTHER LIABILITIES                                   811,929     311,381

    STOCKHOLDERS' EQUITY:
    Total Endo Pharmaceuticals Holdings Inc.
     stockholders' equity                            $1,924,488   1,741,591

    Noncontrolling interests                             63,077      61,738
                                                         ------      ------

    Total stockholders' equity                       $1,987,565   1,803,329
                                                     ----------   ---------

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $7,360,843  $3,912,389
                                                     ==========  ==========

The following table presents unaudited condensed consolidated statement of cash flow data for the nine months ended Sept. 30, 2011 and 2010:


                                                       Nine Months Ended
                                                         September 30,
                                                         -------------
                                                            2011        2010
                                                            ----        ----
    OPERATING ACTIVITIES:
        Consolidated net income                         $192,152    $181,287
        Adjustments to reconcile consolidated
         net income to net cash provided by
         operating activities:
            Depreciation and amortization                169,187      69,859
            Stock-based compensation                      34,224      16,753
            Amortization of debt issuance costs
             and premium /discount                        24,283      17,484
            Other                                         10,433       2,071
        Changes in assets and liabilities
         which provided cash:                            (11,748)     (4,470)
                                                         -------      ------

                Net cash provided by operating
                 activities                              418,531     282,984
                                                         -------     -------

    INVESTING ACTIVITIES:
        Purchases of property, plant and
         equipment, net                                  (38,462)    (11,318)
        Acquisition, net of cash acquired             (2,368,357)   (333,349)
        Other                                             39,631     229,219
                                                          ------     -------

                Net cash provided by (used in)
                 investing activities                 (2,367,188)   (115,448)
                                                      ----------    --------

    FINANCING ACTIVITIES:
        Proceeds from debt, net of principal
         payments                                      2,030,449     (38,770)
        Deferred financing fees                          (81,535)          -
        Purchase of common stock                         (34,702)    (58,974)
        Other                                            (12,495)     (4,179)
                                                         -------      ------

                Net cash used in financing activities  1,901,717    (101,923)
                                                       ---------    --------

    Effect of foreign exchange rate                          397           -
    NET INCREASE (DECREASE) IN CASH AND
     CASH EQUIVALENTS                                    (46,453)     65,613
    CASH AND CASH EQUIVALENTS, BEGINNING
     OF PERIOD                                           466,214     708,462
                                                         -------     -------

    CASH AND CASH EQUIVALENTS, END OF
     PERIOD                                             $419,671    $774,075
                                                        ========    ========

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plan,” “will,” “may,” “look forward,” “intend,” “guidance,” “future” or similar expressions are forward-looking statements. Because these statements reflect our 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 our future financial results and could cause our actual results to differ materially from those expressed in forward-looking statements contained in our 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. We assume no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

SOURCE Endo Pharmaceuticals


Source: PR Newswire