THOUSAND OAKS, Calif.,
April 28, 2016 /PRNewswire/ -- Amgen
(NASDAQ:AMGN) today announced financial results for the first
quarter of 2016. Key results include:
- Total revenues increased 10 percent versus the first quarter of
2015 to $5,527 million, with 7
percent product sales growth driven by Enbrel®
(etanercept), Prolia® (denosumab), Aranesp®
(darbepoetin alfa), Neulasta® (pegfilgrastim),
Kyprolis® (carfilzomib) and XGEVA®
(denosumab).
- Adjusted EPS grew 17 percent versus the first quarter of 2015
to $2.90 driven by higher revenues
and higher operating margins.
- Adjusted operating income increased 17 percent to $2,859 million and adjusted operating margin
improved by 4.4 percentage points to 54.6 percent.
- GAAP EPS were $2.50 compared to
$2.11 and GAAP operating income was
$2,402 million compared to
$2,022 million.
- Free cash flow was $1.8 billion
compared to $1.4 billion in the first
quarter of 2015 driven by higher revenues and higher operating
income.
"We are off to a strong start in 2016 delivering results
for the year and laying groundwork for our long-term growth with
innovative new product launches globally," said Robert A. Bradway, chairman and chief executive
officer.
$Millions, except EPS
and percentages
|
|
Q1'16
|
|
Q1'15
|
|
YOY
Δ
|
|
|
|
|
|
|
|
Total
Revenues
|
|
$ 5,527
|
|
$ 5,033
|
|
10%
|
Adjusted Operating
Income
|
|
$ 2,859
|
|
$ 2,449
|
|
17%
|
Adjusted Net
Income
|
|
$ 2,203
|
|
$ 1,911
|
|
15%
|
Adjusted
EPS
|
|
$ 2.90
|
|
$ 2.48
|
|
17%
|
|
|
|
|
|
|
|
GAAP Operating
Income
|
|
$ 2,402
|
|
$ 2,022
|
|
19%
|
GAAP Net
Income
|
|
$ 1,900
|
|
$ 1,623
|
|
17%
|
GAAP EPS
|
|
$ 2.50
|
|
$ 2.11
|
|
18%
|
References in this
release to "adjusted" measures, measures presented "on an adjusted
basis" and to free cash flow refer to non-GAAP financial
measures. These adjustments and other items are presented on
the attached reconciliations.
|
Product Sales Performance
- Total product sales increased 7 percent for the first
quarter of 2016 versus the first quarter of 2015. The increase was
driven by ENBREL, Prolia, Aranesp, Neulasta, Kyprolis and
XGEVA.
- ENBREL sales increased 24 percent driven by net selling
price and declining inventory levels in the prior year period,
offset partially by the impact of competition.
- Neulasta sales increased 4 percent driven by both higher
unit demand and net selling price in the
United States (U.S.).
- Aranesp sales increased 11 percent. Unit demand grew due
to a shift by some U.S. dialysis customers from
EPOGEN® (epoetin alfa) to Aranesp. Unit demand
growth was offset partially by unfavorable changes in net selling
price.
- XGEVA sales increased 11 percent driven by higher unit
demand.
- Sensipar/Mimpara® (cinacalcet) sales
increased 10 percent driven by net selling price and higher unit
demand, offset partially by unfavorable changes in inventory
levels.
- Prolia sales increased 29 percent driven by higher unit
demand.
- EPOGEN sales decreased 44 percent driven by the impact
of competition and, to a lesser extent, a shift by some U.S.
dialysis customers to Aranesp.
- NEUPOGEN® (filgrastim) sales decreased 13
percent driven by the impact of competition in the U.S.
- Kyprolis sales increased 43 percent driven by higher
unit demand.
- Vectibix® (panitumumab) sales increased 18
percent driven by higher unit demand.
- Nplate® (romiplostim) sales increased 12
percent driven by higher unit demand.
- BLINCYTO® (blinatumomab) sales increased 80
percent driven by higher unit demand.
Product Sales
Detail by Product and Geographic Region
|
|
$Millions, except
percentages
|
|
Q1'16
|
|
Q1'15
|
|
YOY
Δ
|
|
|
US
|
ROW
|
TOTAL
|
|
TOTAL
|
|
TOTAL
|
|
|
|
|
|
|
|
|
|
Enbrel®
|
|
$1,326
|
$59
|
$1,385
|
|
$1,116
|
|
24%
|
Neulasta®
|
|
996
|
187
|
1,183
|
|
1,134
|
|
4%
|
Aranesp®
|
|
261
|
271
|
532
|
|
480
|
|
11%
|
XGEVA®
|
|
271
|
107
|
378
|
|
340
|
|
11%
|
Sensipar®
/ Mimpara®
|
|
278
|
89
|
367
|
|
334
|
|
10%
|
Prolia®
|
|
221
|
131
|
352
|
|
272
|
|
29%
|
EPOGEN®
|
|
300
|
0
|
300
|
|
534
|
|
(44%)
|
NEUPOGEN®
|
|
150
|
63
|
213
|
|
246
|
|
(13%)
|
Kyprolis®
|
|
129
|
25
|
154
|
|
108
|
|
43%
|
Vectibix®
|
|
56
|
88
|
144
|
|
122
|
|
18%
|
Nplate®
|
|
86
|
55
|
141
|
|
126
|
|
12%
|
BLINCYTO®
|
21
|
6
|
27
|
|
15
|
|
80%
|
Repatha®
|
14
|
2
|
16
|
|
0
|
|
*
|
Other**
|
|
10
|
37
|
47
|
|
47
|
|
0%
|
|
|
|
|
|
|
|
|
|
Total product
sales
|
|
$4,119
|
$1,120
|
$5,239
|
|
$4,874
|
|
7%
|
|
|
|
|
|
|
|
|
|
* Not
meaningful
|
|
** Other includes MN
Pharma, Bergamo, IMLYGIC™ and
Corlanor®
|
|
Operating Expense, Operating Margin and Tax Rate Analysis, on
an Adjusted Basis
- Cost of Sales margin improved by 1.6 percentage points
driven by manufacturing efficiencies, higher net selling price and
lower royalties.
- Research & Development (R&D) expenses were
flat.
- Selling, General & Administrative (SG&A)
expenses increased 11 percent driven by investments in new product
launches.
- Operating Expenses increased 3 percent, with all expense
categories reflecting savings from our transformation and process
improvement efforts.
- Operating Margin improved by 4.4 percentage points to
54.6 percent.
- Tax Rate increased 1.9 percentage points due to changes
in the geographic mix of earnings and the prior year benefit of a
state tax audit settlement, offset partially by the benefit in the
first quarter of 2016 of adopting the new Accounting Standard
Update 2016-09, Improvements to Employee Share-Based Payment
Accounting.
$Millions, except
percentages
|
|
|
|
|
|
On an Adjusted
Basis
|
Q1'16
|
|
Q1'15
|
|
YOY
Δ
|
|
|
|
|
|
|
|
|
|
Cost of
Sales*
|
$707
|
|
$735
|
|
(4%)
|
|
% of sales
|
13.5%
|
|
15.1%
|
|
(1.6) pts.
|
Research &
Development
|
$858
|
|
$856
|
|
0%
|
|
% of sales
|
16.4%
|
|
17.6%
|
|
(1.2) pts.
|
Selling, General
& Administrative
|
$1,103
|
|
$993
|
|
11%
|
|
% of sales
|
21.1%
|
|
20.4%
|
|
0.7 pts.
|
TOTAL Operating
Expenses
|
$2,668
|
|
$2,584
|
|
3%
|
|
|
|
|
|
|
|
|
|
Operating
Margin
|
|
|
|
|
|
|
operating income as a
% of sales
|
54.6%
|
|
50.2%
|
|
4.4 pts.
|
|
|
|
|
|
|
|
|
|
Tax
Rate*
|
18.9%
|
|
17.0%
|
|
1.9
pts.
|
|
|
|
|
|
|
|
|
|
pts: percentage
points
|
|
|
|
|
|
|
*
|
Impact of Puerto Rico
excise tax is included in Cost of Sales and Tax Rate. Excluding
Puerto Rico excise tax, Cost of Sales would be 1.7 pts. and 1.9
pts. lower for 2016 and 2015, respectively; and the Tax Rate would
be 2.4 pts. and 2.8 pts. higher for 2016 and 2015,
respectively.
|
Cash Flow and Balance Sheet
- The Company generated $1.8
billion of free cash flow in the first quarter of 2016
versus $1.4 billion in the first
quarter of 2015 driven by higher revenues and higher operating
income.
- The Company's second quarter 2016 dividend of $1.00 per share declared on March 2, 2016, will be paid on June 8, 2016, to all stockholders of record as of
May 17, 2016.
- During the first quarter, the Company repurchased 4.7 million
shares of common stock at a total cost of $690 million. At the end of the first quarter,
the Company had $4.2 billion
remaining under its stock repurchase authorization.
$Billions, except
shares
|
|
Q1'16
|
|
Q1'15
|
|
YOY
Δ
|
|
|
|
|
|
|
|
|
|
Operating Cash
Flow
|
$1.9
|
|
$1.5
|
|
$0.4
|
Capital
Expenditures
|
0.2
|
|
0.1
|
|
0.0
|
Free Cash
Flow
|
1.8
|
|
1.4
|
|
0.4
|
Dividends
Paid
|
0.8
|
|
0.6
|
|
0.2
|
Share
Repurchase
|
0.7
|
|
0.5
|
|
0.2
|
Avg. Diluted Shares
(millions)
|
760
|
|
770
|
|
(10)
|
|
|
|
|
|
|
|
|
|
Cash and
Investments
|
34.7
|
|
27.1
|
|
7.6
|
Debt
Outstanding
|
34.3
|
|
30.2
|
|
4.1
|
Stockholders'
Equity
|
28.7
|
|
26.5
|
|
2.2
|
|
|
|
|
|
|
|
|
|
|
Note: Numbers may not
add due to rounding
|
2016 Guidance
For the full year 2016, the Company now
expects:
- Total revenues in the range of $22.2 billion to $22.6 billion and adjusted
EPS in the range of $10.85 to
$11.20. Previously, the Company expected total revenues in
the range of $22.0 billion to $22.5
billion and adjusted EPS in the range of $10.60 to $11.00.
- Adjusted tax rate in the range of 19 percent to 20
percent.
- Capital expenditures to be approximately $700 million.
First Quarter
Product and Pipeline Update
|
Key 2016 development
milestones:
|
|
Clinical
Program
|
Indication
|
Milestone
|
Repatha®
(evolocumab)
|
Hyperlipidemia
|
Phase 3 coronary
imaging data expected H2
Phase 3 CV outcomes
data expected H2*
|
Kyprolis
|
Relapsed multiple
myeloma
|
EU regulatory review
(ENDEAVOR)
|
Parsabiv™
(etelcalcetide)†
|
Secondary
hyperparathyroidism
|
Global regulatory
reviews
|
XGEVA
|
Prevention of SREs in
multiple myeloma
|
Phase 3 data expected
H2*
|
AMG 334
|
Migraine
Prophylaxis
|
Phase 2b chronic
migraine data expected mid-year
Phase 3 episodic
migraine data expected H2
|
ABP 215
(biosimilar
bevacizumab)
|
Oncology
|
Global regulatory
submissions expected
|
ABP 501
(biosimilar
adalimumab)
|
Inflammatory
diseases
|
Global regulatory
reviews
|
ABP 980
(biosimilar
trastuzumab)
|
Breast
Cancer
|
Phase 3 data expected
H2
|
*Event driven
study; †Trade name provisionally approved by FDA;
CV = cardiovascular
|
The Company provided the following updates on selected product
and pipeline programs:
Repatha
- In February, a Phase 3 study evaluating Repatha in patients
with high cholesterol who cannot tolerate statins met the
co-primary endpoints: the mean percent reductions from baseline in
low-density lipoprotein cholesterol (LDL-C) at weeks 22 and 24, and
the percent reduction from baseline in LDL-C at week 24.
BLINCYTO
- In March, a supplemental Biologics License Application (sBLA)
was submitted to the U.S. Food and Drug Administration (FDA) for
the treatment of pediatric and adolescent patients with
Philadelphia chromosome-negative
relapsed or refractory B-cell precursor acute lymphoblastic
leukemia (ALL).
- In February, a Phase 3 open-label study evaluating the efficacy
of BLINCYTO versus standard of care in adult patients with
Philadelphia chromosome-negative
relapsed or refractory B-cell precursor ALL met the primary
endpoint of improved overall survival at a prespecified interim
analysis.
IMLYGIC™ (talimogene laherparepvec)
- In February, enrollment initiated for a Phase 3 study
evaluating IMLYGIC in combination with KEYTRUDA®
(pembrolizumab) in patients with unresectable metastatic
melanoma.
XGEVA
- In March, enrollment completed for a Phase 3 event-driven study
evaluating XGEVA compared with zoledronic acid for the prevention
of skeletal-related events in patients with newly diagnosed
multiple myeloma. Data from the study are expected in H2
2016.
ENBREL
- In March, an sBLA for the treatment of pediatric patients with
chronic severe plaque psoriasis was accepted for review by
FDA.
Romosozumab
- In March, a Phase 3 study evaluating romosozumab in men with
osteoporosis met the primary endpoint by increasing bone mineral
density at the lumbar spine at 12 months.
- In February, a Phase 3 study evaluating romosozumab in
postmenopausal women with osteoporosis met the co-primary endpoints
by reducing the incidence of new vertebral fracture through months
12 and 24. The study also met a secondary endpoint by reducing the
incidence of clinical fractures through 12 months.
AMG 334
- Data from a Phase 2b study in patients with chronic migraine
are expected mid-year 2016.
- Data from two Phase 3 studies in patients with episodic
migraine are expected in H2 2016.
Romosozumab is developed in collaboration with UCB globally,
as well as Astellas in Japan
AMG 334 is developed in
collaboration with Novartis
KEYTRUDA® is a
registered trademark of Merck Sharp & Dohme Corp., a subsidiary
of Merck & Co., Inc.
Non-GAAP Financial Measures
In this news release,
management has presented its operating results for the first
quarters of 2016 and 2015 in accordance with U.S. Generally
Accepted Accounting Principles (GAAP) and on an adjusted (or
non-GAAP) basis. In addition, management has presented its full
year 2016 EPS and tax rate guidance in accordance with GAAP and on
an adjusted (or non-GAAP) basis. These non-GAAP financial measures
are computed by excluding certain items related to acquisitions,
restructuring and certain other items from the related GAAP
financial measures. Management has also presented Free Cash Flow
(FCF), which is a non-GAAP financial measure, for the first
quarters of 2016 and 2015. FCF is computed by subtracting capital
expenditures from operating cash flow, each as determined in
accordance with GAAP. Reconciliations for these non-GAAP financial
measures to the most directly comparable GAAP financial measures
are included in the news release.
The Company believes that its presentation of non-GAAP financial
measures provides useful supplementary information to and
facilitates additional analysis by investors. The Company uses
certain non-GAAP financial measures to enhance an investor's
overall understanding of the financial performance and prospects
for the future of the Company's core business activities by
facilitating comparisons of results of core business operations
among current, past and future periods. In addition, the Company
believes that excluding the non-cash amortization of intangible
assets, including developed product technology rights, acquired in
business combinations treats those assets as if the Company had
developed them internally in the past, and thus provides a
supplemental measure of profitability in which the Company's
acquired intellectual property is treated in a comparable manner to
its internally developed intellectual property. The Company
believes that FCF provides a further measure of the Company's
liquidity.
The Company uses the non-GAAP financial measures set forth in
the news release in connection with its own budgeting and financial
planning. The non-GAAP financial measures are in addition to, not a
substitute for, or superior to, measures of financial performance
prepared in accordance with GAAP.
About Amgen
Amgen is committed to unlocking the
potential of biology for patients suffering from serious illnesses
by discovering, developing, manufacturing and delivering innovative
human therapeutics. This approach begins by using tools like
advanced human genetics to unravel the complexities of disease and
understand the fundamentals of human biology.
Amgen focuses on areas of high unmet medical need and leverages
its biologics manufacturing expertise to strive for solutions that
improve health outcomes and dramatically improve people's lives. A
biotechnology pioneer since 1980, Amgen has grown to be one of the
world's leading independent biotechnology companies, has reached
millions of patients around the world and is developing a pipeline
of medicines with breakaway potential.
For more information, visit www.amgen.com and follow us on
www.twitter.com/amgen.
Forward-Looking Statements
This news release contains
forward-looking statements that are based on the current
expectations and beliefs of Amgen. All statements, other than
statements of historical fact, are statements that could be deemed
forward-looking statements, including estimates of revenues,
operating margins, capital expenditures, cash, other financial
metrics, expected legal, arbitration, political, regulatory or
clinical results or practices, customer and prescriber patterns or
practices, reimbursement activities and outcomes and other such
estimates and results. Forward-looking statements involve
significant risks and uncertainties, including those discussed
below and more fully described in the Securities and Exchange
Commission reports filed by Amgen, including our most recent annual
report on Form 10-K and any subsequent periodic reports on Form
10-Q and Form 8-K. Unless otherwise noted, Amgen is providing this
information as of the date of this news release and does not
undertake any obligation to update any forward-looking statements
contained in this document as a result of new information, future
events or otherwise.
No forward-looking statement can be guaranteed and actual
results may differ materially from those we project. Our results
may be affected by our ability to successfully market both new and
existing products domestically and internationally, clinical and
regulatory developments involving current and future products,
sales growth of recently launched products, competition from other
products including biosimilars, difficulties or delays in
manufacturing our products and global economic conditions. In
addition, sales of our products are affected by pricing pressure,
political and public scrutiny and reimbursement policies imposed by
third-party payers, including governments, private insurance plans
and managed care providers and may be affected by regulatory,
clinical and guideline developments and domestic and international
trends toward managed care and healthcare cost containment.
Furthermore, our research, testing, pricing, marketing and other
operations are subject to extensive regulation by domestic and
foreign government regulatory authorities. We or others could
identify safety, side effects or manufacturing problems with our
products after they are on the market. Our business may be impacted
by government investigations, litigation and product liability
claims. In addition, our business may be impacted by the adoption
of new tax legislation or exposure to additional tax liabilities.
If we fail to meet the compliance obligations in the corporate
integrity agreement between us and the U.S. government, we could
become subject to significant sanctions. Further, while we
routinely obtain patents for our products and technology, the
protection offered by our patents and patent applications may be
challenged, invalidated or circumvented by our competitors, or we
may fail to prevail in present and future intellectual property
litigation. We perform a substantial amount of our commercial
manufacturing activities at a few key facilities and also depend on
third parties for a portion of our manufacturing activities, and
limits on supply may constrain sales of certain of our current
products and product candidate development. In addition, we compete
with other companies with respect to many of our marketed products
as well as for the discovery and development of new products.
Discovery or identification of new product candidates cannot be
guaranteed and movement from concept to product is uncertain;
consequently, there can be no guarantee that any particular product
candidate will be successful and become a commercial product.
Further, some raw materials, medical devices and component parts
for our products are supplied by sole third-party suppliers. The
discovery of significant problems with a product similar to one of
our products that implicate an entire class of products could have
a material adverse effect on sales of the affected products and on
our business and results of operations. Our efforts to acquire
other companies or products and to integrate the operations of
companies we have acquired may not be successful. We may not be
able to access the capital and credit markets on terms that are
favorable to us, or at all. We are increasingly dependent on
information technology systems, infrastructure and data security.
Our stock price is volatile and may be affected by a number of
events. Our business performance could affect or limit the ability
of our Board of Directors to declare a dividend or our ability to
pay a dividend or repurchase our common stock.
Amgen
Inc.
|
Consolidated
Statements of Income - GAAP
|
(In millions,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
March
31,
|
|
|
|
|
2016
|
|
2015
|
Revenues:
|
|
|
|
|
|
Product
sales
|
|
$ 5,239
|
|
$ 4,874
|
|
Other
revenues
|
|
288
|
|
159
|
|
|
Total
revenues
|
|
5,527
|
|
5,033
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Cost of
sales
|
|
1,018
|
|
1,033
|
|
Research and
development
|
|
872
|
|
894
|
|
Selling, general and
administrative
|
|
1,203
|
|
1,026
|
|
Other
|
|
32
|
|
58
|
|
|
Total operating
expenses
|
|
3,125
|
|
3,011
|
|
|
|
|
|
|
|
Operating
income
|
|
2,402
|
|
2,022
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
294
|
|
252
|
Interest and other
income, net
|
|
150
|
|
106
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
2,258
|
|
1,876
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
358
|
|
253
|
|
|
|
|
|
|
|
Net income
|
|
$ 1,900
|
|
$ 1,623
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic
|
|
$ 2.52
|
|
$ 2.13
|
|
Diluted
|
|
$ 2.50
|
|
$ 2.11
|
|
|
|
|
|
|
|
Weighted average
shares used in calculation of earnings per share:
|
|
|
|
|
|
Basic
|
|
753
|
|
761
|
|
Diluted
|
|
760
|
|
770
|
Amgen
Inc.
|
Consolidated
Balance Sheets - GAAP
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash, cash
equivalents and marketable securities
|
|
$ 34,740
|
|
$
31,382
|
|
Trade receivables,
net
|
|
3,078
|
|
2,995
|
|
Inventories
|
|
2,572
|
|
2,435
|
|
Other current
assets
|
|
1,816
|
|
1,703
|
|
|
Total current
assets
|
|
42,206
|
|
38,515
|
Property, plant and
equipment, net
|
|
4,885
|
|
4,907
|
Intangible assets,
net
|
|
11,448
|
|
11,641
|
Goodwill
|
|
14,804
|
|
14,787
|
Other
assets
|
|
1,773
|
|
1,599
|
Total
assets
|
|
$ 75,116
|
|
$
71,449
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$ 6,276
|
|
$
6,417
|
|
Current portion of
long-term debt
|
|
2,247
|
|
2,247
|
|
|
Total current
liabilities
|
|
8,523
|
|
8,664
|
Long-term
debt
|
|
32,060
|
|
29,182
|
Long-term deferred
tax liability
|
|
2,202
|
|
2,239
|
Other noncurrent
liabilities
|
|
3,649
|
|
3,281
|
Stockholders'
equity
|
|
28,682
|
|
28,083
|
Total liabilities and
stockholders' equity
|
|
$ 75,116
|
|
$
71,449
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
|
751
|
|
754
|
Amgen
Inc.
|
GAAP to Adjusted
Reconciliations
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
GAAP cost of
sales
|
$1,018
|
|
$ 1,033
|
|
Adjustments to
cost of sales:
|
|
|
|
|
Acquisition-related
expenses (a)
|
(311)
|
|
(284)
|
|
Certain net charges
pursuant to our restructuring initiative
|
-
|
|
(14)
|
|
Total adjustments
to cost of sales
|
(311)
|
|
(298)
|
|
Adjusted cost of
sales
|
$ 707
|
|
$ 735
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and
development expenses
|
$ 872
|
|
$ 894
|
|
Adjustments to
research and development expenses:
|
|
|
|
|
Acquisition-related
expenses (a)
|
(19)
|
|
(21)
|
|
Certain net charges
pursuant to our restructuring initiative
|
5
|
|
(17)
|
|
Total adjustments
to research and development expenses
|
(14)
|
|
(38)
|
|
Adjusted research
and development expenses
|
$ 858
|
|
$ 856
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling,
general and administrative expenses
|
$1,203
|
|
$ 1,026
|
|
Adjustments to
selling, general and administrative expenses:
|
|
|
|
|
Acquisition-related
expenses (b)
|
(101)
|
|
(29)
|
|
Certain net charges
pursuant to our restructuring initiative
|
1
|
|
(4)
|
|
Total adjustments
to selling, general and administrative expenses
|
(100)
|
|
(33)
|
|
Adjusted selling,
general and administrative expenses
|
$1,103
|
|
$ 993
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$3,125
|
|
$ 3,011
|
|
Adjustments to
operating expenses:
|
|
|
|
|
Adjustments to cost
of sales
|
(311)
|
|
(298)
|
|
Adjustments to
research and development expenses
|
(14)
|
|
(38)
|
|
Adjustments to
selling, general and administrative expenses
|
(100)
|
|
(33)
|
|
Certain net charges
pursuant to our restructuring initiative (c)
|
(2)
|
|
(57)
|
|
Expense related to a
legal proceeding
|
(27)
|
|
-
|
|
Other
|
(3)
|
|
(1)
|
|
Total adjustments
to operating expenses
|
(457)
|
|
(427)
|
|
Adjusted operating
expenses
|
$2,668
|
|
$ 2,584
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$2,402
|
|
$ 2,022
|
|
Adjustments to
operating expenses
|
457
|
|
427
|
|
Adjusted operating
income
|
$2,859
|
|
$ 2,449
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income before
income taxes
|
$2,258
|
|
$ 1,876
|
|
Adjustments to
operating expenses
|
457
|
|
427
|
|
Adjusted income
before income taxes
|
$2,715
|
|
$ 2,303
|
|
|
|
|
|
|
|
|
|
|
|
GAAP provision for
income taxes
|
$ 358
|
|
$ 253
|
|
Adjustments to
provision for income taxes:
|
|
|
|
|
Income tax effect of
the above adjustments (d)
|
139
|
|
139
|
|
Other income tax
adjustments (e)
|
15
|
|
-
|
|
Total adjustments
to provision for income taxes
|
154
|
|
139
|
|
Adjusted provision
for income taxes
|
$ 512
|
|
$ 392
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$1,900
|
|
$ 1,623
|
|
Adjustments to net
income:
|
|
|
|
|
Adjustments to income
before income taxes, net of the income tax effect of the above
adjustments
|
318
|
|
288
|
|
Other income tax
adjustments (e)
|
(15)
|
|
-
|
|
Total adjustments
to net income
|
303
|
|
288
|
|
Adjusted net
income
|
$2,203
|
|
$ 1,911
|
|
|
|
|
|
Amgen
Inc.
|
GAAP to Adjusted
Reconciliations
|
(In millions,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
presents the computations for GAAP and Adjusted diluted
EPS.
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
|
March 31,
2016
|
|
March 31,
2015
|
|
|
GAAP
|
|
Adjusted
|
|
GAAP
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$1,900
|
|
$ 2,203
|
|
$1,623
|
|
$ 1,911
|
|
Weighted-average
shares for diluted EPS
|
760
|
|
760
|
|
770
|
|
770
|
|
Diluted
EPS
|
$ 2.50
|
|
$ 2.90
|
|
$ 2.11
|
|
$ 2.48
|
(a)
|
The adjustments
related primarily to non-cash amortization of intangible assets
acquired in business combinations.
|
|
|
(b)
|
The 2016 adjustments
related primarily to a $73-million charge resulting from the
reacquisition of Prolia®, XGEVA® and
Vectibix® license agreements in certain markets from
Glaxo Group Limited, as well as non-cash amortization of intangible
assets acquired in business combinations. The 2015
adjustments related primarily to non-cash amortization of
intangible assets acquired in business combinations.
|
|
|
(c)
|
The 2015 adjustments
related primarily to severance expenses.
|
|
|
(d)
|
The tax effect of the
adjustments between our GAAP and Adjusted results takes into
account the tax treatment and related tax rate(s) that apply to
each adjustment in the applicable tax jurisdiction(s). Generally,
this results in a tax impact at the U.S. marginal tax rate for
certain adjustments, including the majority of amortization of
intangible assets, whereas the tax impact of other adjustments,
including restructuring expense, depends on whether the amounts are
deductible in the respective tax jurisdictions and the applicable
tax rate(s) in those jurisdictions. Due to these factors, the
effective tax rates for the adjustments to our GAAP income before
income taxes, for the three months ended March 31, 2016 and 2015,
were 30.4% and 32.6%, respectively.
|
|
|
(e)
|
The adjustments
related to certain prior period items excluded from adjusted
earnings.
|
Amgen
Inc.
|
Reconciliations of
Free Cash Flow
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
|
Operating Cash
Flow
|
$ 1,915
|
|
$ 1,482
|
(a)
|
|
Capital
Expenditures
|
(156)
|
|
(118)
|
|
|
Free Cash
Flow
|
$ 1,759
|
|
$ 1,364
|
|
|
|
|
|
|
|
|
|
|
(a) Restated
to include $153 million, which was previously included in cash
flows from financing activities, as a result of the adoption of
Accounting Standard Update 2016-09.
|
Amgen
Inc.
|
Reconciliation of
GAAP EPS Guidance to Adjusted
|
EPS Guidance for
the Year Ending December 31, 2016
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
GAAP diluted EPS
guidance
|
|
$ 9.34
|
-
|
$ 9.74
|
|
|
|
|
|
|
|
|
|
Known adjustments
to arrive at Adjusted earnings*:
|
|
|
|
|
|
|
|
Acquisition-related
expenses
|
(a)
|
1.37
|
|
|
|
Restructuring
charges
|
|
0.09
|
-
|
0.14
|
|
|
|
Legal proceeding
charge
|
|
|
0.02
|
|
|
|
|
Tax
adjustments
|
(b)
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS guidance
|
|
$ 10.85
|
-
|
$ 11.20
|
|
|
|
|
|
|
|
|
|
*
|
|
The known adjustments
are presented net of their related tax impact which amount to
approximately $0.68 to $0.70 per
share, in the aggregate.
|
|
|
|
|
|
|
|
|
(a)
|
|
The adjustments
relate primarily to non-cash amortization of intangible assets
acquired in prior year business combinations.
|
|
|
|
|
|
|
|
|
(b)
|
|
The adjustments
relate to certain prior period items excluded from adjusted
earnings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP Tax Rate Guidance to Adjusted
|
Tax Rate Guidance
for the Year Ending December 31, 2016
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
GAAP tax rate
guidance
|
|
16.5%
|
-
|
17.5%
|
|
|
|
|
|
|
|
|
|
|
Tax rate effect of
known adjustments discussed above
|
|
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
Adjusted tax rate
guidance
|
|
19.0%
|
-
|
20.0%
|
|
|
|
|
|
|
|
|
|
CONTACT: Amgen, Thousand
Oaks
Trish Hawkins, 805-447-5631
(media)
Arvind Sood, 805-447-1060
(investors)
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/amgens-first-quarter-2016-revenues-increased-10-percent-to-55-billion-and-adjusted-earnings-per-share-eps-increased-17-percent-to-290-300259675.html
SOURCE Amgen