PITTSBURGH, Aug. 7, 2014
/PRNewswire/ -- Mylan Inc. (Nasdaq: MYL) today announced its
financial results for the three and six months ended June 30,
2014.
Second Quarter 2014 Highlights
- Total revenues of $1.84 billion,
up 8% versus the prior year period with positive growth across all
regions and businesses
- Generics segment third party sales of $1.53 billion, up 6% on a constant currency
basis
- Specialty segment third party sales of $287.8 million, up 22%
- Adjusted gross profit of $923.4
million, up 11%; GAAP gross profit of $808.8 million, up 9%
- Adjusted gross margin of 50%, up from 49% in the prior year
period; GAAP gross margin of 44%
- Adjusted diluted earnings per share (EPS) of $0.69, an increase of 1% and in line with company
guidance; GAAP diluted EPS of $0.32
- Total revenue guidance for 2014 narrowed to $7.8 billion to $8.0 billion; adjusted diluted
EPS guidance for 2014 narrowed to $3.25 to
$3.45
- Reaffirms opportunity to accelerate target of at least
$6.00 in adjusted diluted EPS in
2018.(1)
Mylan CEO Heather Bresch
commented, "We continued to deliver strong results in the second
quarter of 2014, driven by double-digit revenue growth in our
Specialty business and Rest of World region, and continued solid
performance in Europe and
North America. We were able to
achieve these results, which were right in line with our
expectations, despite ongoing delays in approvals of key products
by the U.S. Food and Drug Administration, once again demonstrating
our ability to execute and maximize our global platform and
commercial opportunities.
"Further, the recently-announced strategic acquisition of
Abbott's non-U.S. developed
markets specialty and branded generics business builds on our
strong momentum, expands and further diversifies our business in
our largest markets outside of the U.S., and clearly positions
Mylan for the next phase of our growth. The anticipated enhanced
financial flexibility created by this transaction immediately
positions us to execute on additional highly strategic and
financially accretive transactions in the near term. As a result,
we see opportunities to accelerate achievement of our $6.00 adjusted diluted EPS target in 2018.
"With that said, given the pendency of the Abbott transaction and management's current
activities around additional strategic opportunities, we will be
postponing our Investor Day until a later date."
Mylan CFO John Sheehan added,
"Our second quarter results saw continued growth across all of our
regions and businesses, and we look forward to a strong second half
of 2014. In addition, during the second quarter, we continued to
generate strong cash flows which further improves our financial
flexibility—flexibility that will be additionally enhanced through
the proposed Abbott
transaction."
Total
Revenue
|
|
|
Three Months
Ended
|
|
|
|
|
June
30,
|
|
|
|
(Unaudited; in
millions)
|
2014
|
|
|
2013
|
|
|
Percent
Change
|
Total
Revenues
|
$
|
1,837.3
|
|
|
$
|
1,701.7
|
|
|
8
|
%
|
Generics Third Party
Net Sales
|
1,528.5
|
|
|
1,450.4
|
|
|
5
|
%
|
North
America
|
736.6
|
|
|
716.5
|
|
|
3
|
%
|
Europe
|
395.9
|
|
|
359.4
|
|
|
10
|
%
|
Rest of
World
|
396.0
|
|
|
374.5
|
|
|
6
|
%
|
Specialty Third Party
Net Sales
|
287.8
|
|
|
236.9
|
|
|
22
|
%
|
Other
Revenue
|
21.0
|
|
|
14.4
|
|
|
46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Generics Segment Revenue
Generics segment third party net sales were
$1.53 billion for the quarter, an
increase of 5% when compared to the prior year period. When
translating third party net sales for the current quarter at prior
year comparative period exchange rates ("constant currency"), third
party net sales would have increased by 6%.
- Third party net sales from North America were $736.6 million for the quarter, an increase of
3%. The increase was due principally to sales from new products,
and to a lesser extent, net sales from acquired businesses
partially offset by pricing and volume on the base business. The
effect of constant currency on third party net sales was
insignificant in North
America.
- Third party net sales from Europe were $395.9
million for the quarter, an increase of 10%, or 5% on a
constant currency basis. This increase was primarily the result of
increased volumes in Italy and
France combined with sales from
new products, and to a lesser extent, net sales from acquired
businesses within the region. These increases were offset partially
by lower pricing throughout Europe
as a result of government-imposed pricing reductions and
competitive market conditions.
- Third party net sales from the Rest of
World were $396.0 million for the
quarter, up 6%, or 11% on a constant currency basis. This increase
was driven primarily by higher third party sales volumes from our
operations in India, in particular
strong growth in the anti-retroviral (ARV) franchise, which
manufactures products used in the treatment of HIV/AIDS. Sales also
were impacted positively by volume growth and new product
introductions in Japan. In
Australia, local currency third
party net sales decreased versus the comparable prior year period
as a result of significant government-imposed pricing reform and
lower volumes on existing products, partially offset by new
products.
Specialty Segment Revenue
Specialty segment reported third party net sales
of $287.8 million for the quarter, an
increase of 22% when compared to the prior year period. The
increase was due to higher sales of the EpiPen®
Auto-Injector driven by market expansion, as well as price. The
effect of constant currency on Specialty segment third party net
sales was insignificant. The EpiPen® Auto-Injector remains on track
to become a billion dollar product in 2014.
Total Gross Profit
Adjusted gross profit was $923.4
million and adjusted gross margins were 50% as
compared to adjusted gross profit of $834.2
million and adjusted gross margins of 49% in the comparable
prior year period. Strong adjusted gross margins were the result of
growth in the EpiPen® Auto-Injector combined with the benefits and
efficiencies of Mylan's vertically integrated operating
platform. These increases were offset partially by
unfavorable pricing on existing products, including products
launched in the prior year. GAAP gross profit for the
quarter was $808.8 million and
GAAP gross margins were 44% as compared to GAAP gross profit
of $742.4 million and GAAP gross
margins of 44% in the comparable prior year period.
Total Profitability
Adjusted earnings from operations for the quarter were
$409.9 million, down less than 1%
from the comparable prior year period. The decrease in adjusted
earnings from operations was due to an increase in SG&A
and R&D. The increase in SG&A was impacted by our
direct-to-consumer marketing campaign for the EpiPen®
Auto-Injector, and to a lesser extent, by increases in legal and
marketing costs in the North American region of the Generics
business to support anticipated new product launches. R&D was
at the high end of the guidance range as we continued to progress
our biologics and respiratory growth platforms. GAAP earnings
from operations were $226.1
million for the quarter, a decrease of 27% from the
comparable prior year period.
EBITDA, which is defined as net income (excluding the
non-controlling interest and losses from equity method investees)
plus income taxes, interest expense, depreciation and amortization,
was $371.8 million for the
quarter and $423.1 million for
the comparable prior year period. After adjusting for certain items
as further detailed in the reconciliation below, adjusted
EBITDA was $488.1 million for the
quarter and $461.0 million for the
comparable prior year period. GAAP net earnings
attributable to Mylan Inc. decreased by $52.5 million, or 29.5%, to $125.2 million as compared to $177.7 million for the prior year comparable
period.
Cash Flow
Adjusted cash provided by operating activities was
$559 million for the six months ended
June 30, 2014, compared to
$283 million for the comparable prior
year period. The increase in adjusted cash provided by operating
activities is the result of working capital improvement. On a GAAP
basis, cash provided by operating activities was
$448 million for the six months ended
June 30, 2014, compared to
$274 million for the comparable prior
year period. Capital expenditures were approximately
$153 million for the six months ended
June 30, 2014 as compared to
approximately $126 million in the
comparable period in 2013. The increase in capital expenditures is
the result of expenditures to expand our global operating platform,
including capital investments in our strategic growth drivers.
Guidance
Given delays in approvals of key products by the U.S. Food and
Drug Administration, Mylan is narrowing its 2014 guidance range for
total revenue to $7.8 billion to $8.0
billion and adjusted diluted EPS to $3.25 to $3.45. The guidance ranges include the
fourth quarter launches of generic Copaxone® and generic
Celebrex®.
Furthermore, Mylan expects third quarter adjusted diluted EPS in
the range of $0.90 to $0.95. Given
the anticipated launches of key products mentioned above, the
fourth quarter is expected to be the strongest quarter of the
year.
The following table provides a full summary of Mylan's 2014 full
year guidance ranges on an adjusted basis.
|
2014
|
|
2014
|
(In millions,
except EPS and %'s)
|
Current
Guidance
|
|
Prior
Guidance**
|
Total
Revenue
|
$7,800 -
$8,000
|
|
$7,800 -
$8,200
|
Gross Profit
Margin*
|
51% - 53%
|
|
51% - 53%
|
SG&A as % of
Total Revenue*
|
18% - 20%
|
|
18% - 20%
|
R&D as % of Total
Revenue*
|
7% - 8%
|
|
7% - 8%
|
EBITDA*
|
$2,200 -
$2,400
|
|
$2,200 -
$2,400
|
Net
Income*
|
$1,265 -
$1,370
|
|
$1,265 -
$1,460
|
Diluted
EPS*
|
$3.25 -
$3.45
|
|
$3.25 -
$3.60
|
Operating Cash
Flow*
|
$1,200 -
$1,400
|
|
$1,200 -
$1,400
|
Capital
Expenditures
|
$350 -
$400
|
|
$350 -
$450
|
Tax Rate*
|
24% - 26%
|
|
24% - 26%
|
Average Diluted
Shares Outstanding
|
390 - 400
|
|
389 - 405
|
|
* Adjusted
metrics
|
|
** Prior guidance
communicated on Feb. 27, 2014 during Mylan's Q4 and FY13 earnings
conference call.
|
Conference Call
Mylan will host a conference call and live webcast, today,
August 7, 2014, at 10:00 a.m.
ET, in conjunction with the release of its financial
results. The dial-in number to access the call is 800.514.4861 or
678.809.2405 for international callers. To access the live webcast
please log onto Mylan's website (www.mylan.com) at least 15 minutes
before the event is to begin to register and download or install
any necessary software. A replay of the webcast will be available
at www.mylan.com/investors for a limited time.
Non-GAAP Financial Measures
This press release includes the presentation and discussion of
certain financial information that differs from what is reported
under accounting principles generally accepted in the United States ("GAAP"). These non-GAAP
financial measures, including, but not limited to, adjusted diluted
EPS, adjusted cash provided by operating activities, adjusted gross
profit, adjusted gross margins, adjusted earnings from operations,
adjusted interest expense, adjusted net earnings, constant currency
total revenue, constant currency third party net sales, adjusted
R&D, adjusted SG&A, adjusted tax rate, EBITDA and adjusted
EBITDA, are presented in order to supplement investors' and other
readers' understanding and assessment of the Company's financial
performance. Management uses these measures internally for
forecasting, budgeting and measuring its operating performance. In
addition, primarily due to acquisitions, Mylan believes that an
evaluation of its ongoing operations (and comparisons of its
current operations with historical and future operations) would be
difficult if the disclosure of its financial results were limited
to financial measures prepared only in accordance with GAAP. In
addition, the Company believes that including EBITDA and
supplemental adjustments applied in presenting adjusted EBITDA
pursuant to our credit agreement is appropriate to provide
additional information to investors to demonstrate the Company's
ability to comply with financial debt covenants (which are
calculated using a measure similar to adjusted EBITDA) and assess
the Company's ability to incur additional indebtedness. Set forth
below, Mylan has provided reconciliations of such non-GAAP
financial measures to the most directly comparable GAAP financial
measure. Investors and other readers are encouraged to review the
related GAAP financial measures and the reconciliations of the
non-GAAP measures to their most directly comparable GAAP measures
set forth below, and investors and other readers should consider
non-GAAP measures only as supplements to, not as substitutes for or
as superior measures to, the measures of financial performance
prepared in accordance with GAAP.
Below is a reconciliation of GAAP net earnings attributable to
Mylan Inc. (the "Company") and GAAP diluted EPS to adjusted net
earnings attributable to Mylan Inc. and adjusted diluted EPS for
the quarter and six month period compared to the respective prior
year period (in millions, except per share amounts):
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
GAAP net earnings
attributable to Mylan Inc. and
GAAP
diluted
EPS
|
$
|
125.2
|
|
|
$
|
0.32
|
|
|
$
|
177.7
|
|
|
$
|
0.46
|
|
|
$
|
241.1
|
|
|
$
|
0.61
|
|
|
$
|
284.6
|
|
|
$
|
0.72
|
|
Purchase accounting
related amortization (primarily
included in cost of
sales) (a)
|
90.8
|
|
|
|
|
|
85.5
|
|
|
|
|
|
194.5
|
|
|
|
|
|
177.6
|
|
|
|
|
Litigation
settlements, net
|
23.2
|
|
|
|
|
|
6.9
|
|
|
|
|
|
26.3
|
|
|
|
|
|
8.7
|
|
|
|
|
Interest expense,
primarily amortization of convertible
debt
discount
|
11.5
|
|
|
|
|
|
8.9
|
|
|
|
|
|
22.4
|
|
|
|
|
|
16.6
|
|
|
|
|
Non-cash accretion
and fair value adjustments of
contingent
consideration liability
|
8.7
|
|
|
|
|
|
(2.0)
|
|
|
|
|
|
17.1
|
|
|
|
|
|
3.8
|
|
|
|
|
Clean energy
investments pre-tax loss (b)
|
17.2
|
|
|
|
|
|
3.5
|
|
|
|
|
|
36.6
|
|
|
|
|
|
7.9
|
|
|
|
|
Financing related
costs (included in other income, net)
|
—
|
|
|
|
|
|
8.7
|
|
|
|
|
|
—
|
|
|
|
|
|
8.7
|
|
|
|
|
Acquisition related
costs (primarily included in cost of
sales and selling,
general and administrative expense)
|
26.0
|
|
|
|
|
|
5.2
|
|
|
|
|
|
49.4
|
|
|
|
|
|
24.6
|
|
|
|
|
Restructuring and other special items included
in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
9.9
|
|
|
|
|
|
6.3
|
|
|
|
|
|
20.2
|
|
|
|
|
|
17.6
|
|
|
|
|
Research and
development expense
|
16.0
|
|
|
|
|
|
0.9
|
|
|
|
|
|
16.9
|
|
|
|
|
|
24.2
|
|
|
|
|
Selling, general and
administrative expense
|
21.9
|
|
|
|
|
|
11.7
|
|
|
|
|
|
41.3
|
|
|
|
|
|
35.3
|
|
|
|
|
Other income
(expense), net
|
3.3
|
|
|
|
|
|
(2.9)
|
|
|
|
|
|
0.3
|
|
|
|
|
|
3.9
|
|
|
|
|
Tax effect of the
above items and other income tax
related
items
|
(80.4)
|
|
|
|
|
|
(48.8)
|
|
|
|
|
|
(132.4)
|
|
|
|
|
|
(106.0)
|
|
|
|
|
Adjusted net earnings
attributable to Mylan Inc. and
adjusted diluted
EPS
|
$
|
273.3
|
|
|
$
|
0.69
|
|
|
$
|
261.6
|
|
|
$
|
0.68
|
|
|
$
|
533.7
|
|
|
$
|
1.34
|
|
|
$
|
507.5
|
|
|
$
|
1.29
|
|
Weighted average
diluted common shares outstanding
|
397.4
|
|
|
|
|
|
387.1
|
|
|
|
|
|
397.0
|
|
|
|
|
|
393.0
|
|
|
|
|
|
|
(a) Purchase
accounting related amortization expense for the six months ended
June 30, 2013, includes $5.1 million of in-process
research
and development asset
impairment charges.
|
|
|
|
(b) Adjustment
represents exclusion of the pre-tax loss related to Mylan's
investments in clean energy investments, the activities of
which
qualify for income tax
credits under section 45 of the U.S. Internal Revenue Code. The
amount is included in other expense, net.
|
|
Below is a reconciliation of GAAP net earnings attributable to
Mylan Inc. to EBITDA and adjusted EBITDA for the quarter and six
month period compared to the respective prior year period (in
millions):
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
GAAP net earnings
attributable to Mylan Inc.
|
$
|
125.2
|
|
|
$
|
177.7
|
|
|
$
|
241.1
|
|
|
$
|
284.6
|
|
Add
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Net contribution
attributable to the noncontrolling interest and equity method
investments
|
21.6
|
|
|
4.5
|
|
|
45.1
|
|
|
10.0
|
|
Income
taxes
|
11.2
|
|
|
41.0
|
|
|
46.3
|
|
|
72.7
|
|
Interest
expense
|
84.6
|
|
|
81.8
|
|
|
167.3
|
|
|
159.8
|
|
Depreciation and
amortization
|
129.2
|
|
|
118.1
|
|
|
264.4
|
|
|
247.0
|
|
EBITDA
|
$
|
371.8
|
|
|
$
|
423.1
|
|
|
$
|
764.2
|
|
|
$
|
774.1
|
|
Add
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
17.1
|
|
|
11.2
|
|
|
32.5
|
|
|
23.3
|
|
Litigation
settlements, net
|
23.2
|
|
|
6.9
|
|
|
26.3
|
|
|
8.7
|
|
Restructuring & other special
items
|
76.0
|
|
|
19.8
|
|
|
124.8
|
|
|
98.8
|
|
Adjusted
EBITDA
|
$
|
488.1
|
|
|
$
|
461.0
|
|
|
$
|
947.8
|
|
|
$
|
904.9
|
|
About Mylan
Mylan is a global pharmaceutical company committed to setting
new standards in health care. Working together around the world to
provide 7 billion people access to high quality medicine, we
innovate to satisfy unmet needs; make reliability and service
excellence a habit; do what's right, not what's easy; and impact
the future through passionate global leadership. We offer a growing
portfolio of more than 1,300 generic pharmaceuticals and several
brand medications. In addition, we offer a wide range of
antiretroviral therapies, upon which approximately 40% of HIV/AIDS
patients in developing countries depend. We also operate one of the
largest active pharmaceutical ingredient manufacturers and
currently market products in approximately 140 countries and
territories. Our workforce of more than 20,000 people is dedicated
to improving the customer experience and increasing pharmaceutical
access to consumers around the world. But don't take our word for
it. See for yourself. See inside. mylan.com
Forward-Looking Statements
This press release may contain "forward-looking statements."
These statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements may include, without limitation,
statements about the proposed acquisition (the "Transaction") by
the Company of Abbott Laboratories ("Abbott") non-U.S. developed markets specialty
and branded generics business (the "Acquired Business"), the
expected timetable for completing the Transaction, benefits and
synergies of the Transaction, future opportunities for the combined
company and products and any other statements regarding the
Company's and the Acquired Business' future operations, anticipated
business levels, future earnings, planned activities, anticipated
growth, market opportunities, strategies, competition, and other
expectations and targets for future periods. These often may be
identified by the use of words such as "will", "may," "could,"
"should," "would," "project," "believe," "anticipate," "expect,"
"plan," "estimate," "forecast," "potential," "intend," "continue,"
"target" and variations of these words or comparable words. Because
forward-looking statements inherently involve risks and
uncertainties, actual future results may differ materially from
those expressed or implied by such forward-looking statements.
Factors that could cause or contribute to such differences include,
but are not limited to: the Company and Abbott's ability to meet expectations
regarding the accounting and tax treatments and the timing and
completion of the Transaction; changes in relevant tax and other
laws; the Company and Abbott's
ability to consummate the Transaction; the conditions to the
completion of the Transaction, including the receipt of approval of
the Company's shareholders; the regulatory approvals required for
the Transaction not being obtained on the terms expected or on the
anticipated schedule; the integration of the Acquired Business by
the Company being more difficult, time-consuming or costly than
expected; operating costs, customer loss and business disruption
(including, without limitation, difficulties in maintaining
relationships with employees, customers, clients or suppliers)
being greater than expected following the transaction; the
retention of certain key employees of the Acquired Business being
difficult; the possibility that the Company may be unable to
achieve expected synergies and operating efficiencies in connection
with the transaction within the expected time-frames or at all and
to successfully integrate the Acquired Business; the Company's and
the Acquired Business' expected or targeted future financial and
operating performance and results; the Company's (prior to or after
the close of the Transaction) capacity to bring new products to
market, including but not limited to where the Company uses its
business judgment and decides to manufacture, market, and/or sell
products, directly or through third parties, notwithstanding the
fact that allegations of patent infringement(s) have not been
finally resolved by the courts (i.e., an "at-risk launch"); the
scope, timing and outcome of any ongoing legal proceedings and the
impact of any such proceedings on the Company's and the Acquired
Business' consolidated financial condition, results of operations
or cash flows; the ability to protect the intellectual property and
preserve the intellectual property rights of the Company and the
Acquired Business; the effect of any changes in customer and
supplier relationships and customer purchasing patterns; the
ability to attract and retain key personnel; changes in third-party
relationships; the impacts of competition; changes in economic and
financial conditions of the Company's business or the Acquired
Business; the inherent challenges, risks and costs in the Company's
ability to identify, acquire and integrate complementary or
strategic acquisitions of other companies, products or assets and
in achieving anticipated synergies; uncertainties and matters
beyond the control of management; and inherent uncertainties
involved in the estimates and judgments used in the preparation of
financial statements, and the providing of estimates of financial
measures, in accordance with GAAP and related standards or on an
adjusted basis. For more detailed information on the risks and
uncertainties associated with the Company's business activities,
see the risks described in the Company's Annual Report on Form 10-K
for the year ended December 31, 2013 and its other filings
with the Securities and Exchange Commission ("SEC"). You can access
the Company's Form 10-K and other filings with the SEC through the
SEC website at www.sec.gov, and the Company strongly encourages you
to do so. The Company undertakes no obligation to update any
statements herein for revisions or changes after the date of this
release. Further, uncertainties or other circumstances, or matters
outside of the Company's control between the date of this release
and the date that its Form 10-Q for the quarter ended June 30,
2014, is filed with the SEC could potentially result in adjustments
to reported results. Long-term targets, including, but not limited
to, 2018 targets, do not reflect Company guidance.
Additional Information and Where to Find It
In connection with the Transaction, New Moon B.V., a private
limited liability company (besloten vennootschap met beperkte
aansprakelijkheid) organized under the laws of the Netherlands ("New Mylan") and a
wholly-owned subsidiary of the Company and the Company intend to
file relevant materials with the SEC, including a New Mylan
registration statement on Form S-4 that will include a proxy
statement of the Company that also constitutes a prospectus of New
Mylan. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY
STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS WHEN THEY
BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION
ABOUT THE COMPANY, NEW MYLAN, THE ACQUIRED BUSINESS AND THE
TRANSACTION. A definitive proxy statement will be sent to
shareholders of the Company seeking approval of the Transaction.
The proxy statement/prospectus and other documents relating to the
Transaction (when they are available) can be obtained free of
charge from the SEC's website at www.sec.gov. These documents (when
they are available) can also be obtained free of charge from the
Company upon written request to the Company at 724-514-1813 or
investor.relations@mylan.com.
Participants in Solicitation
This communication is not a solicitation of a proxy from any
investor or shareholder. However, the Company, New Mylan and
certain of their directors and executive officers may be deemed to
be participants in the solicitation of proxies in connection with
the Transaction under the rules of the SEC. Information regarding
the Company's directors and executive officers may be found in its
definitive proxy statement relating to its 2014 Annual Meeting of
Shareholders filed with the SEC on March 10,
2014. This document can be obtained free of charge from the
sources indicated above. Additional information regarding the
interests of these participants will also be included in the proxy
statement/prospectus when it becomes available.
Non-Solicitation
This communication shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to
buy any securities, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offer of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended.
Mylan Inc. and
Subsidiaries
|
Condensed
Consolidated Statements of Operations
|
(Unaudited; in
millions, except per share amounts)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,816.4
|
|
|
$
|
1,687.3
|
|
|
$
|
3,519.4
|
|
|
$
|
3,306.7
|
|
Other
revenues
|
20.9
|
|
|
14.4
|
|
|
33.5
|
|
|
26.5
|
|
Total
revenues
|
1,837.3
|
|
|
1,701.7
|
|
|
3,552.9
|
|
|
3,333.2
|
|
Cost of
sales
|
1,028.5
|
|
|
959.3
|
|
|
2,006.3
|
|
|
1,897.3
|
|
Gross
profit
|
808.8
|
|
|
742.4
|
|
|
1,546.6
|
|
|
1,435.9
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
155.4
|
|
|
111.4
|
|
|
273.4
|
|
|
237.9
|
|
Selling, general and
administrative
|
404.1
|
|
|
315.4
|
|
|
781.8
|
|
|
666.8
|
|
Litigation
settlements, net
|
23.2
|
|
|
6.9
|
|
|
26.3
|
|
|
8.7
|
|
Total operating
expenses
|
582.7
|
|
|
433.7
|
|
|
1,081.5
|
|
|
913.4
|
|
Earnings from
operations
|
226.1
|
|
|
308.7
|
|
|
465.1
|
|
|
522.5
|
|
Interest
expense
|
84.6
|
|
|
81.8
|
|
|
167.3
|
|
|
159.8
|
|
Other expense,
net
|
3.7
|
|
|
7.2
|
|
|
8.3
|
|
|
3.8
|
|
Earnings before
income taxes and noncontrolling interest
|
137.8
|
|
|
219.7
|
|
|
289.5
|
|
|
358.9
|
|
Income tax
provision
|
11.2
|
|
|
41.0
|
|
|
46.3
|
|
|
72.7
|
|
Net
earnings
|
126.6
|
|
|
178.7
|
|
|
243.2
|
|
|
286.2
|
|
Net earnings
attributable to the noncontrolling interest
|
(1.4)
|
|
|
(1.0)
|
|
|
(2.1)
|
|
|
(1.6)
|
|
Net earnings
attributable to Mylan Inc. common shareholders
|
$
|
125.2
|
|
|
$
|
177.7
|
|
|
$
|
241.1
|
|
|
$
|
284.6
|
|
Earnings per common
share attributable to Mylan Inc. common
shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.34
|
|
|
$
|
0.47
|
|
|
$
|
0.65
|
|
|
$
|
0.73
|
|
Diluted
|
$
|
0.32
|
|
|
$
|
0.46
|
|
|
$
|
0.61
|
|
|
$
|
0.72
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
373.8
|
|
|
381.2
|
|
|
373.1
|
|
|
387.2
|
|
Diluted
|
397.4
|
|
|
387.1
|
|
|
397.0
|
|
|
393.0
|
|
Mylan Inc. and
Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(Unaudited; in
millions)
|
|
|
June 30,
2014
|
|
December
31,
2013(1)
|
|
ASSETS
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
193.9
|
|
|
$
|
291.3
|
|
Accounts receivable,
net
|
1,761.6
|
|
|
1,820.0
|
|
Inventories
|
1,791.1
|
|
|
1,656.9
|
|
Other current
assets
|
730.5
|
|
|
703.0
|
|
Total current
assets
|
4,477.1
|
|
|
4,471.2
|
|
Intangible assets,
net
|
2,416.2
|
|
|
2,517.9
|
|
Goodwill
|
4,392.8
|
|
|
4,340.5
|
|
Other non-current
assets
|
4,316.7
|
|
|
3,965.2
|
|
Total
assets
|
$
|
15,602.8
|
|
|
$
|
15,294.8
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Current
liabilities
|
$
|
2,601.3
|
|
|
$
|
2,964.0
|
|
Long-term
debt
|
7,918.2
|
|
|
7,586.5
|
|
Other non-current
liabilities
|
1,730.6
|
|
|
1,784.4
|
|
Total
liabilities
|
12,250.1
|
|
|
12,334.9
|
|
Noncontrolling
interest
|
18.7
|
|
|
18.1
|
|
Mylan Inc.
shareholders' equity
|
3,334.0
|
|
|
2,941.8
|
|
Total liabilities and
equity
|
$
|
15,602.8
|
|
|
$
|
15,294.8
|
|
|
(1) As
updated by the Form 8-K filed by the Company on August 6,
2014.
|
|
Mylan Inc. and
Subsidiaries
|
Recast of
Geographical Regions
|
(Unaudited; in
millions)
|
|
As previously
disclosed, beginning in 2014, the regions within the Generics
segment have been revised to North America, Europe and Rest of
World. The Rest of World region includes the former Asia Pacific
region, Brazil and the export sales to emerging markets, which were
previously included in the EMEA and North America regions within
the Generics segment. The following table provides a summary of the
Generics segment's 2013 total third party net sales and total
revenues recast for the change in its geographic regions to conform
to the presentation for the current period. The recast had no
impact on total third party sales or total revenues for the
Generics segment.
|
|
Recast for
Geographic Changes Within the Generics Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Year
Ended
|
|
March 31,
2013
|
|
June 30,
2013
|
|
September 30,
2013
|
|
December 31,
2013
|
|
June 30,
2013
|
|
December 31,
2013
|
Generics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
$
|
731.5
|
|
|
$
|
716.5
|
|
|
$
|
705.5
|
|
|
$
|
853.1
|
|
|
$
|
1,448.0
|
|
|
$
|
3,006.6
|
|
Europe
|
348.5
|
|
|
359.4
|
|
|
346.5
|
|
|
375.3
|
|
|
707.9
|
|
|
1,429.7
|
|
Rest of
World
|
327.8
|
|
|
374.5
|
|
|
346.9
|
|
|
389.4
|
|
|
702.3
|
|
|
1,438.6
|
|
Total third-party
net sales
|
1,407.8
|
|
|
1,450.4
|
|
|
1,398.9
|
|
|
1,617.8
|
|
|
2,858.2
|
|
|
5,874.9
|
|
Other third-party
revenues
|
5.0
|
|
|
7.8
|
|
|
5.5
|
|
|
7.5
|
|
|
12.8
|
|
|
25.8
|
|
Intersegment
revenues
|
0.6
|
|
|
1.9
|
|
|
1.7
|
|
|
1.5
|
|
|
2.5
|
|
|
5.7
|
|
Generics total
revenues
|
$
|
1,413.4
|
|
|
$
|
1,460.1
|
|
|
$
|
1,406.1
|
|
|
$
|
1,626.8
|
|
|
$
|
2,873.5
|
|
|
$
|
5,906.4
|
|
Mylan Inc. and
Subsidiaries
|
Summary of
Revenues by Segment
|
(Unaudited; in
millions)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
Percent
Change
|
|
Percent
Change
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
Total
|
|
Constant
Currency(1)
|
|
Total
|
|
Constant
Currency(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Generics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third party net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
$
|
736.6
|
|
|
$
|
716.5
|
|
|
$
|
1,518.8
|
|
|
$
|
1,448.0
|
|
|
3
|
%
|
|
3
|
%
|
|
5
|
%
|
|
5
|
%
|
Europe
|
395.9
|
|
|
359.4
|
|
|
751.8
|
|
|
707.9
|
|
|
10
|
%
|
|
5
|
%
|
|
6
|
%
|
|
2
|
%
|
Rest of
World
|
396.0
|
|
|
374.5
|
|
|
766.2
|
|
|
702.3
|
|
|
6
|
%
|
|
11
|
%
|
|
9
|
%
|
|
18
|
%
|
Total third party net
sales
|
1,528.5
|
|
|
1,450.4
|
|
|
3,036.8
|
|
|
2,858.2
|
|
|
5
|
%
|
|
6
|
%
|
|
6
|
%
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other third party
revenues
|
16.0
|
|
|
7.8
|
|
|
22.2
|
|
|
12.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total third party
revenues
|
1,544.5
|
|
|
1,458.2
|
|
|
3,059.0
|
|
|
2,871.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment
revenues
|
1.3
|
|
|
1.9
|
|
|
2.6
|
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Generics total
revenues
|
1,545.8
|
|
|
1,460.1
|
|
|
3,061.6
|
|
|
2,873.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third party net
sales
|
287.8
|
|
|
236.9
|
|
|
482.5
|
|
|
448.5
|
|
|
22
|
%
|
|
22
|
%
|
|
8
|
%
|
|
8
|
%
|
Other third party
revenues
|
5.0
|
|
|
6.6
|
|
|
11.4
|
|
|
13.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total third party
revenues
|
292.8
|
|
|
243.5
|
|
|
493.9
|
|
|
462.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment
revenues
|
2.7
|
|
|
5.9
|
|
|
4.4
|
|
|
13.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty total
revenues
|
295.5
|
|
|
249.4
|
|
|
498.3
|
|
|
476.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Elimination of
intersegment revenues
|
(4.0)
|
|
|
(7.8)
|
|
|
(7.0)
|
|
|
(16.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated total
revenues
|
$
|
1,837.3
|
|
|
$
|
1,701.7
|
|
|
$
|
3,552.9
|
|
|
$
|
3,333.2
|
|
|
8
|
%
|
|
8
|
%
|
|
7
|
%
|
|
8
|
%
|
|
(1) The
constant currency percent change is derived by translating third
party net sales for the current period at prior year comparative
period exchange rates.
|
Mylan Inc. and
Subsidiaries
|
Reconciliation of
Non-GAAP Financial Measures
|
(Unaudited; in
millions)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
GAAP cost of
sales
|
$
|
1,028.5
|
|
|
$
|
959.3
|
|
|
$
|
2,006.3
|
|
|
$
|
1,897.3
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
Purchase accounting
related amortization
|
(86.9)
|
|
|
(85.5)
|
|
|
(186.8)
|
|
|
(177.6)
|
|
Acquisition related
costs
|
(17.8)
|
|
|
—
|
|
|
(35.4)
|
|
|
—
|
|
Restructuring &
other special items
|
(9.9)
|
|
|
(6.3)
|
|
|
(20.2)
|
|
|
(17.6)
|
|
Adjusted cost of
sales
|
$
|
913.9
|
|
|
$
|
867.5
|
|
|
$
|
1,763.9
|
|
|
$
|
1,702.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross profit
(a)
|
$
|
923.4
|
|
|
$
|
834.2
|
|
|
$
|
1,789.0
|
|
|
$
|
1,631.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin
(a)
|
50
|
%
|
|
49
|
%
|
|
50
|
%
|
|
49
|
%
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
GAAP
R&D
|
$
|
155.4
|
|
|
$
|
111.4
|
|
|
$
|
273.4
|
|
|
$
|
237.9
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring &
other special items
|
(16.1)
|
|
|
(1.0)
|
|
|
(17.1)
|
|
|
(24.2)
|
|
Adjusted
R&D
|
$
|
139.3
|
|
|
$
|
110.4
|
|
|
$
|
256.3
|
|
|
$
|
213.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted R&D as %
of total revenue
|
7.6
|
%
|
|
6.5
|
%
|
|
7.2
|
%
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
GAAP
SG&A
|
$
|
404.1
|
|
|
$
|
315.4
|
|
|
$
|
781.8
|
|
|
$
|
666.8
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related
costs
|
(8.1)
|
|
|
(3.6)
|
|
|
(13.9)
|
|
|
(22.4)
|
|
Restructuring &
other special items
|
(21.8)
|
|
|
(2.0)
|
|
|
(41.1)
|
|
|
(23.9)
|
|
Adjusted
SG&A
|
$
|
374.2
|
|
|
$
|
309.8
|
|
|
$
|
726.8
|
|
|
$
|
620.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A as
% of total revenue
|
20.4
|
%
|
|
18.2
|
%
|
|
20.5
|
%
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
GAAP total
operating expenses
|
$
|
582.7
|
|
|
$
|
433.7
|
|
|
$
|
1,081.5
|
|
|
$
|
913.4
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
Litigation
settlements, net
|
(23.2)
|
|
|
(6.9)
|
|
|
(26.3)
|
|
|
(8.7)
|
|
Acquisition related
costs
|
(8.1)
|
|
|
(3.6)
|
|
|
(13.9)
|
|
|
(22.4)
|
|
Restructuring &
other special items
|
(37.9)
|
|
|
(3.0)
|
|
|
(58.2)
|
|
|
(48.1)
|
|
Adjusted total
operating expenses
|
$
|
513.5
|
|
|
$
|
420.2
|
|
|
$
|
983.1
|
|
|
$
|
834.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
from operations (b)
|
$
|
409.9
|
|
|
$
|
414.0
|
|
|
$
|
805.9
|
|
|
$
|
796.9
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
GAAP interest
expense
|
$
|
84.6
|
|
|
$
|
81.8
|
|
|
$
|
167.3
|
|
|
$
|
159.8
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
related to clean energy investments
(c)
|
(3.9)
|
|
|
(2.6)
|
|
|
(7.8)
|
|
|
(4.1)
|
|
Non-cash accretion of
contingent consideration liability
|
(8.7)
|
|
|
(8.0)
|
|
|
(17.1)
|
|
|
(15.7)
|
|
Non-cash interest,
primarily amortization of convertible debt discount
|
(7.6)
|
|
|
(6.3)
|
|
|
(14.6)
|
|
|
(12.5)
|
|
Adjusted interest
expense
|
$
|
64.4
|
|
|
$
|
64.9
|
|
|
$
|
127.8
|
|
|
$
|
127.5
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
GAAP other
expense
|
$
|
(3.7)
|
|
|
$
|
(7.2)
|
|
|
$
|
(8.3)
|
|
|
$
|
3.8
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Equity method losses
from clean energy investments
|
17.2
|
|
|
3.5
|
|
|
36.6
|
|
|
7.9
|
|
Purchase accounting
related amortization
|
3.9
|
|
|
—
|
|
|
7.7
|
|
|
—
|
|
Acquisition related
costs
|
—
|
|
|
1.7
|
|
|
—
|
|
|
2.2
|
|
Restructuring &
other special items
|
3.3
|
|
|
5.7
|
|
|
0.3
|
|
|
12.5
|
|
Adjusted other
income
|
$
|
20.7
|
|
|
$
|
3.7
|
|
|
$
|
36.3
|
|
|
$
|
18.8
|
|
Reconciliation of
cash provided by operating activities
|
|
|
Six Months Ended
June 30,
|
|
2014
|
|
|
2013
|
|
GAAP cash provided
by operating
activities
|
$
|
448
|
|
|
$
|
274
|
|
Add:
|
|
|
|
|
|
Payment of litigation
settlements
|
54
|
|
|
1
|
|
Payment of interest
rate swap settlement
|
—
|
|
|
1
|
|
Acquisition related
costs
|
37
|
|
|
6
|
|
Increase in deferred
revenue
|
—
|
|
|
1
|
|
R&D
expense
|
20
|
|
|
—
|
|
Adjusted cash
provided by operating activities
|
$
|
559
|
|
|
$
|
283
|
|
(a)
|
Adjusted gross profit
is calculated as total revenues less adjusted cost of sales.
Adjusted gross margin is calculated as adjusted gross profit
divided by total revenue.
|
|
|
(b)
|
Adjusted earnings
from operations is calculated as adjusted gross profit less
adjusted total operating expenses.
|
|
|
(c)
|
Adjustment represents
exclusion of activity related to Mylan's investments in clean
energy investments, the activities of which qualify for income tax
credits under section 45 of the U.S. Internal Revenue
Code.
|
Reconciliation of forecasted guidance
The reconciliations below are based on management's estimate of
adjusted net earnings and adjusted diluted EPS, adjusted EBITDA and
adjusted cash provided by operating activities for the year ending
December 31, 2014. Mylan expects
certain known GAAP charges for 2014, as presented in the
reconciliation below. Other GAAP charges, including those related
to potential litigation, asset impairments and restructuring
programs that would be excluded from the adjusted results are
possible, but their amounts are dependent on numerous factors that
we currently cannot ascertain with sufficient certainty or are
presently unknown. These GAAP charges are dependent upon future
events and valuations that have not yet occurred or been performed.
The unaudited forecasted amounts presented below are stated in
millions, except for earnings per share data.
Reconciliation of
forecasted net earnings and EPS to adjusted net
earnings
|
|
|
Twelve Months
Ended December 31, 2014
|
|
Lower
|
|
Upper
|
GAAP net earnings
attributable to Mylan Inc. and diluted GAAP
EPS
|
$
|
805
|
|
|
$
|
2.05
|
|
|
$
|
885
|
|
|
$
|
2.20
|
|
Purchase accounting
related amortization
|
375
|
|
|
|
|
|
390
|
|
|
|
|
Interest expense,
primarily amortization of convertible debt discount
|
44
|
|
|
|
|
|
46
|
|
|
|
|
Non-cash accretion of
contingent consideration liability
|
35
|
|
|
|
|
|
38
|
|
|
|
|
Pre-tax loss of clean
energy investments
|
77
|
|
|
|
|
|
80
|
|
|
|
|
Restructuring and other special items
|
260
|
|
|
|
|
|
280
|
|
|
|
|
Tax effect of the
above items and other income tax related items
|
(331)
|
|
|
|
|
|
(349)
|
|
|
|
|
Adjusted net earnings
attributable to Mylan Inc. and adjusted diluted EPS
|
$
|
1,265
|
|
|
$
|
3.25
|
|
|
$
|
1,370
|
|
|
$
|
3.45
|
|
|
|
|
Three Months Ended
September 30, 2014
|
|
Lower
|
|
Upper
|
GAAP net earnings
attributable to Mylan Inc. and diluted GAAP
EPS
|
$
|
270
|
|
|
$
|
0.68
|
|
|
$
|
285
|
|
|
$
|
0.71
|
|
Purchase accounting
related amortization
|
94
|
|
|
|
|
|
98
|
|
|
|
|
Interest expense,
primarily amortization of convertible debt discount
|
10
|
|
|
|
|
|
12
|
|
|
|
|
Non-cash accretion of
contingent consideration liability
|
9
|
|
|
|
|
|
11
|
|
|
|
|
Pre-tax loss of clean
energy investment
|
19
|
|
|
|
|
|
22
|
|
|
|
|
Restructuring & other special
items
|
40
|
|
|
|
|
|
45
|
|
|
|
|
Tax effect of the
above items and other income tax related items
|
(92)
|
|
|
|
|
|
(96)
|
|
|
|
|
Adjusted net earnings
attributable to Mylan Inc. and adjusted diluted EPS
|
$
|
350
|
|
|
$
|
0.90
|
|
|
$
|
377
|
|
|
$
|
0.95
|
|
Reconciliation of
forecasted net earnings to adjusted EBITDA
|
|
|
Lower
|
|
Upper
|
GAAP net earnings
attributable to Mylan Inc.
|
$
|
805
|
|
|
$
|
885
|
|
Add
adjustments:
|
|
|
|
|
|
Net contribution
attributable to the noncontrolling interest and equity method
investees
|
90
|
|
|
100
|
|
Income
taxes
|
110
|
|
|
165
|
|
Interest
expense
|
340
|
|
|
350
|
|
Depreciation and
amortization
|
535
|
|
|
550
|
|
EBITDA
|
$
|
1,880
|
|
|
$
|
2,050
|
|
Add
adjustments:
|
|
|
|
|
|
Stock-based
compensation expense
|
60
|
|
|
70
|
|
Restructuring & other special
items
|
260
|
|
|
280
|
|
Adjusted
EBITDA
|
$
|
2,200
|
|
|
$
|
2,400
|
|
Reconciliation of
forecasted cash provided by operating activities
|
|
|
Lower
|
|
Upper
|
GAAP cash provided
by operating
activities
|
$
|
1,055
|
|
|
$
|
1,215
|
|
Add:
|
|
|
|
|
|
Estimated payment of
legal settlements
|
55
|
|
|
55
|
|
R&D
Expense
|
20
|
|
|
40
|
|
Acquisition related
costs
|
40
|
|
|
60
|
|
Other
items
|
30
|
|
|
30
|
|
Adjusted cash
provided by operating activities
|
$
|
1,200
|
|
|
$
|
1,400
|
|
SOURCE Mylan Inc.