Please wait while we load the requested 10-K report or click the link below:
Warner Chilcott Reports Operating Results for the Quarter and Year Ended December 31, 2012
Revenue Growth in Several Key Promoted Products and Lower SG&A Drive Strong Earnings
DUBLIN, Ireland, February 22, 2013 Warner Chilcott plc (NASDAQ: WCRX) today announced its results for the quarter and year ended December 31, 2012.
Total revenue in the quarter ended December 31, 2012 was $612 million, a decrease of $34 million, or 5%, compared to the quarter ended December 31, 2011. For the quarter ended December 31, 2012, the decrease in revenues as compared to the prior year quarter was primarily driven by a decrease in ACTONEL revenues of $76 million, due in large part to the overall declines in the U.S. oral bisphosphonate market, as well as the continuing declines in ACTONEL net sales in Western Europe and Canada following the 2010 loss of exclusivity in both regions, and a decline in DORYX net sales of $27 million following the introduction of generic competition for our DORYX 150 mg product in early May 2012. The decrease was offset, in part, by net sales growth in certain promoted products, primarily ASACOL and LO LOESTRIN FE. Combined, net sales of these products increased $47 million, or 24%, compared to the prior year quarter.
We reported GAAP net income of $124 million, or $0.49 per diluted share, in the quarter ended December 31, 2012, compared with GAAP net income of $90 million, or $0.36 per diluted share, in the prior year quarter. Cash net income (or CNI, as defined below) for the quarter ended December 31, 2012 was $242 million, compared to $240 million in the prior year quarter. Adjusted CNI was $228 million in the quarter ended December 31, 2012, a decrease of $12 million, or 5%, compared to adjusted CNI of $240 million in the prior year quarter. In computing adjusted CNI for the quarter ended December 31, 2012, we excluded (i) $12 million of income tax benefits related to the reversal of reserves associated with our entry into two advance pricing agreements (the APAs) with the Internal Revenue Service (IRS) and (ii) $2 million, net of tax, of pension-related curtailment gains relating 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 the impact, on an after-tax basis (as applicable), of the Western European restructuring, the repurposing of our Manati facility, a litigation-related charge, a gain relating to the reversal of a liability for contingent milestone payments and the income tax benefits related to the reversal of reserves associated with our entry into the APAs. 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.
New Product Approval
On February 5, 2013, we announced that the U.S. Food and Drug Administration (FDA) approved DELZICOL (mesalamine) 400 mg delayed-release capsules, our new mesalamine product indicated for the treatment of mildly to moderately active ulcerative colitis and for the maintenance of remission of ulcerative colitis. We anticipate that we will commercially launch DELZICOL in March 2013, and that DELZICOL will become the promotional priority for our gastroenterology sales force upon launch.
Advance Pricing Agreements
In December 2012, we signed two APAs with the IRS. The first APA specifies the agreed upon terms under which our U.S. entities are compensated for distribution and service transactions between our U.S. and non-U.S. entities for the calendar years 2011 through 2017. The second APA reflects our agreement with the IRS in respect of the transfer of certain intangible assets from one of our U.S. subsidiaries to our Puerto Rican subsidiary. The effects of the new APAs have been recorded in our financial statements for the quarter ended December 31, 2012, including $12 million of income tax benefits related to the reversal of reserves under Financial Accounting Standards Board Accounting Standards Codification Topic 740 Income Taxes.
New Dividend Policy
In August 2012, we announced a new dividend policy under which 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 (the Dividend Policy). On December 14, 2012, we paid our first semi-annual cash dividend under the Dividend Policy in the amount of $0.25 per share, or $62 million in the aggregate, to our shareholders. Any declaration by our Board of Directors to pay future cash dividends will depend on our earnings and financial condition and other relevant factors at such time.
The following information was filed by Warner Chilcott Plc (WCRX) on Friday, February 22, 2013 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
View differences made from one year to another to evaluate Warner Chilcott Plc's financial trajectory
Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were
removed , and by Warner Chilcott Plc.