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Warner Chilcott Reports Operating Results for the Quarter Ended September 30, 2012
Revenue Growth in Several Key Promoted Products and Lower SG&A Drive Growth in Adjusted Cash Net Income
DUBLIN, Ireland, November 9, 2012 Warner Chilcott plc (NASDAQ: WCRX) today announced its results for the quarter ended September 30, 2012.
Total revenue in the quarter ended September 30, 2012 was $606 million, a decrease of $49 million, or 7%, compared to the quarter ended September 30, 2011. For the quarter ended September 30, 2012, the decrease in revenues as compared to the prior year quarter was primarily driven by a decrease in ACTONEL revenues of $47 million, due in large part to continuing declines in ACTONEL rest of world (ROW) and Canadian net sales following the 2010 loss of exclusivity in Western Europe and Canada, as well as the overall declines in the U.S. oral bisphosphonate market, offset, in part, by net sales growth in certain promoted products, primarily LO LOESTRIN FE, ATELVIA and ESTRACE Cream. Combined, net sales of these three products increased $21 million, or 28%, compared to the prior year quarter.
We reported GAAP net income of $113 million, or $0.45 per diluted share, in the quarter ended September 30, 2012, compared with GAAP net income of $33 million, or $0.13 per diluted share, in the prior year quarter. Cash net income (or CNI, as defined below) for the quarter ended September 30, 2012 was $241 million, compared to $185 million in the prior year quarter. Adjusted CNI was $247 million in the quarter ended September 30, 2012, an increase of $18 million, or 8%, compared to adjusted CNI of $229 million in the prior year quarter. In computing adjusted CNI for the quarter ended September 30, 2012, we excluded a $6 million litigation-related charge, net of tax. In computing adjusted CNI for the quarter ended September 30, 2011 we excluded $44 million of restructuring costs, net of tax, related to the restructuring of certain of our Western European operations.
References in this press release to cash net income or CNI mean our GAAP net income adjusted for the after-tax effects of two non-cash items: amortization (including impairments, if any) of intangible assets and amortization (including write-offs, if any) of deferred loan costs related to our debt. Adjusted CNI represents CNI as further adjusted to exclude certain after-tax impacts from the Western European restructuring, the repurposing of our Manati facility, a litigation-related charge and the impact of a gain relating to a reversal of the liability for contingent milestone payments. Reconciliations from our reported results in accordance with Generally Accepted Accounting Principles in the U.S. (GAAP) to CNI, adjusted CNI and adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) for all periods presented are included in the tables at the end of this press release.
2012 Special Dividend Transaction and Related Financing
On August 20, 2012, certain of our subsidiaries entered into an amendment to the credit agreement governing our Initial Senior Secured Credit Facilities (as defined below), pursuant to which the lenders thereunder provided additional term loans in an aggregate principal amount of $600 million (the Additional Term Loan Facilities and, together with the Initial Senior Secured Credit Facilities, the Senior Secured Credit Facilities), which, together with cash on hand, were used to fund the 2012 Special Dividend (as defined below) and to pay related fees and expenses. On August 21, 2012, we declared a special cash dividend of $4.00 per share, or $1,002 million in the aggregate (the 2012 Special Dividend).
New Dividend Policy
On November 6, 2012, we declared our first semi-annual cash dividend under our new dividend policy (the Dividend Policy) in the amount of $0.25 per share, payable December 14, 2012 to shareholders of record on November 30, 2012. Under the Dividend Policy, we expect to pay a total annual cash dividend to our ordinary shareholders of $0.50 per share in equal semi-annual installments of $0.25 per share. Any declaration by the Board of Directors to pay future cash dividends, however, will depend on our earnings and financial condition and other relevant factors at such time.
Share Redemption Program
In November 2011, we announced that our Board of Directors had authorized the redemption of up to an aggregate of $250 million of our ordinary shares (the Prior Redemption Program). Pursuant to our Prior Redemption Program, we redeemed 1.9 million ordinary
The following information was filed by Warner Chilcott Plc (WCRX) on Friday, November 9, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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