United Therapeutics Reports First Quarter 2009 Financial Results
- Revenues of
- Earnings Per Share of
Results for the first quarter of 2008 have been adjusted for the retrospective adoption of Financial Accounting Standards Board Staff Position No. APB 14-1 (FSP APB 14-1), which became effective
“I am pleased that we started the year with an extremely strong first quarter,” said
Research and Development Expenses
The table below summarizes research and development expenses by major project and non-project components (dollars in thousands):
Three Months Ended March 31, Percentage
2009 2008 Change
Program:
Cardiovascular $11,418 $14,485 (21.2)%
Other 4,885 3,324 47.0%
Share-based compensation 4,656 3,267 42.5%
Total research and development
expense $20,959 $21,076 (0.6)%
Cardiovascular. Cardiovascular expenses for the three months ended
Selling, General and Administrative Expenses
The table below summarizes selling, general and administrative expenses by major category (dollars in thousands):
Three Months Ended March 31, Percentage
2009 2008 Change
Category:
General and administrative $11,383 $8,839 28.8%
Sales and marketing 8,459 6,884 22.9%
Share-based compensation 9,376 3,608 159.9%
Total selling, general and
administrative expense $29,218 $19,331 51.2%
General and administrative. During the three months ended
Share-based compensation. Share-based compensation increased for the three months ended
Earnings Before Non-Cash Charges
The following table provides a reconciliation of net income to earnings before non-cash charges for the three-month periods ending
Three Months Ended March 31,
2009 2008
(as adjusted)(1)
Net income, as reported $13,197 $9,936
Add back:
Amortization of debt discount 2,637 2,684
Income tax expense 5,401 5,337
Depreciation and amortization 1,765 974
Impairment charges - -
Share-based compensation 14,055 6,891
Earnings before non-cash charges $37,055 $25,822
Earnings before non-cash charges
per share(2):
Basic $1.40 $1.16
Diluted $1.36 $1.07
(1) Adjusted for the retrospective adoption of FSP APB 14-1.
(2) Calculated by dividing earnings before non-cash charges by the
weighted average number of common shares outstanding, as reported
below in our Consolidated Statements of Operations.
Conference Call
United Therapeutics will host a half-hour teleconference on
This teleconference is also being webcast and can be accessed via United Therapeutics’ website at http://ir.unither.com/events.cfm.
About United Therapeutics
United Therapeutics is a biotechnology company focused on the development and commercialization of unique products to address the unmet medical needs of patients with chronic and life-threatening cardiovascular and infectious diseases and cancer.
Non-GAAP Financial Information
This press release contains a financial measure that does not comply with U.S. generally accepted accounting principals (GAAP). This measure supplements our financial results prepared in accordance with GAAP as reported below.
We use earnings before non-cash charges, a financial non-GAAP measure, internally for operating, budgeting and financial planning purposes and as a metric to determine the efficiency of our operations and in calculating our employees’ bonus compensation. We believe this measure enhances our investors’ understanding of our performance. The presentation of this non-GAAP financial measure is not to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP.
Forward-looking Statements
Statements included in this press release that are not historical in nature are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, among others, our expectations and intentions related to financial performance and results, including the growth and market prominence of our Remodulin business and our belief about the future prospects for Remodulin. These forward-looking statements are subject to certain risks and uncertainties, such as those described in our periodic reports filed with the Securities and Exchange Commission, that could cause actual results to differ materially from anticipated results. Consequently, such forward-looking statements are qualified by the cautionary statements, cautionary language and risk factors set forth in our periodic reports and documents filed with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and current reports on Form 8-K. We claim the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We are providing this information as of
Remodulin is a registered trademark of United Therapeutics Corporation. [uthr-g]
UNITED THERAPEUTICS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended
March 31,
2009 2008
(as adjusted)(1)
(unaudited)
Revenues:
Net product sales $76,858 $59,153
Service sales 2,530 2,227
License fees 342 667
Total revenues 79,730 62,047
Operating expenses:
Research and development 20,959 21,076
Selling, general and administrative 29,218 19,331
Cost of product sales 8,066 6,175
Cost of service sales 920 711
Total operating expenses 59,163 47,293
Income from operations 20,567 14,754
Other income (expense):
Interest income 1,721 3,716
Interest expense (2,637) (2,792)
Equity loss in affiliate (19) (113)
Other, net 364 (292)
Total other income (expense), net (571) 519
Income before income tax 19,996 15,273
Income tax expense (6,799) (5,337)
Net income $13,197 $9,936
Net income per common share:
Basic $0.50 $0.44
Diluted $0.49 $0.41
Weighted average number of common
shares outstanding:
Basic 26,440 22,333
Diluted 27,152 24,076
(1) Adjusted for the retrospective adoption of FSP APB 14-1.
CONSOLIDATED BALANCE SHEET DATA
As of March 31, 2009
(unaudited, in thousands)
Cash, cash equivalents and marketable investments
(excluding restricted amounts of $45,945) $319,365
Total assets $902,813
Total liabilities & common stock subject to repurchase $325,531
Total stockholders' equity $577,282
SOURCE United Therapeutics Corporation
