The Medicines Company Reports First Quarter 2011 Earnings per Share of $0.45 vs. $0.18 in 2010
PARSIPPANY, NJ--(Marketwire - April 27, 2011) - The Medicines Company (NASDAQ: MDCO), a global pharmaceutical company focused on advancing the treatment of critical care patients through the delivery of innovative, cost-effective medicines, today announced that earnings per share rose to $0.45 in the first quarter of 2011, compared with $0.18 in the first quarter of 2010.
Net revenues in the first quarter of 2011 were $112.1 million versus $102.1 million in the comparable 2010 period.
"2011 first quarter results represent further proof that the Company's business model is built to deliver performance and real growth," said Clive Meanwell, Chairman and Chief Executive Officer. "Our market-leading product Angiomax and Angiox performed as expected. Late-stage pipeline products again showed meaningful progress. Cangrelor and oritavancin Phase 3 trials are each ahead of enrollment schedule. Our global operating leverage drove strong cash flow throughout the period."
Financial highlights for the first quarter of 2011:
-- Net revenue increased by 9.8% to $112.1 million for the first quarter
of 2011 from $102.1 million in the first quarter of 2010.
- Angiomax U.S. sales increased by 9.7% to $105.0 million in the
first quarter of 2011 compared to $95.7 million in the first
quarter of 2010.
- Angiomax/Angiox international net revenue in the first quarter of
2011 increased by 26.9% to $7.1 million compared with $5.6
million in the first quarter of 2010.
-- Net income for the first quarter of 2011 was $24.2 million, or $0.45
per share, compared with net income of $9.4 million, or $0.18 per
share, for the first quarter of 2010.
-- Non-GAAP net income for the first quarter of 2011 was $34.5 million, or
$0.64 per share, compared to non-GAAP net income of $12.5 million, or
$0.24 per share for the first quarter 2010. Non-GAAP net income
excludes stock-based compensation expense and non-cash income taxes.
The following table provides reconciliations between GAAP and non-GAAP net income for first quarter (Q1) of 2011 and 2010. Non-GAAP net income excludes stock-based compensation expense and non-cash income taxes:
ASC 718
Stock-Based Non-cash
Reported GAAP Compensation Provision for Non-GAAP Net
(in millions) Net Income Expense Income Taxes Income(1)
------------- ------------- ------------- -------------
Q1 2011 $ 24.2 $ 2.3 $ 8.0 $ 34.5
Q1 2010 $ 9.4 $ 2.7 $ 0.3 $ 12.5
Note: Amounts may not sum due to rounding.
(1) Excluding stock-based compensation expense and the non-cash provision
for income taxes.
Reconciliations between GAAP and non-GAAP fully diluted earnings per share (EPS) for the first quarter (Q1) of 2011 and 2010 are provided in the following table:
ASC 718
Stock-Based Non-cash
Reported GAAP Compensation Provision for Non-GAAP EPS
(per share) EPS Expense Income Taxes (1)
------------- ------------- ------------- -------------
Q1 2011 $ 0.45 $ 0.04 $ 0.15 $ 0.64
Q1 2010 $ 0.18 $ 0.05 $ 0.01 $ 0.24
Note: Amounts may not sum due to rounding.
(1) Excluding stock-based compensation expense and the non-cash provision
for income taxes.
The Company believes that presenting the non-GAAP information contained in the financial tables and in this press release assists investors and others in gaining a better understanding of the Company's core operating results and future prospects, expected growth rates or forecasted guidance, stock-based compensation expense and non-cash income taxes. Management uses this non-GAAP information, in addition to the GAAP information, as the basis for measuring the Company's core operating performance and comparing such performance to that of prior periods and to the performance of its competitors. Such measures are also used by management in its financial and operating decision-making. Non-GAAP information is not meant to be considered superior to or a substitute for the Company's results of operations prepared in accordance with GAAP. A reconciliation of GAAP results with non-GAAP results may also be found in the attached financial tables.
There will be a conference call with management today at 8:30 a.m. Eastern Time to discuss financial results and operational developments. The conference call will be available via phone and webcast. The webcast can be accessed at The Medicines Company website at www.themedicinescompany.com.
The dial in information is listed below:
Domestic Dial In: 800-659-2037 International Dial In: 617-614-2713 Passcode for both dial in numbers: 46998178
Replay is available from 11:30 a.m. Eastern Time following the conference call through May 11, 2011. To hear a replay of the call dial 888-286-8010 (domestic) and 617-801-6888 (international). Passcode for both dial in numbers is 13510765.
About The Medicines Company
The Medicines Company (NASDAQ: MDCO) provides medical solutions to improve health outcomes for patients in acute and intensive care hospitals worldwide. These solutions comprise medicines and knowledge that directly impact the survival and well being of critically ill patients. The Medicines Company's website is www.themedicinescompany.com.
Statements contained in this press release about The Medicines Company that are not purely historical, and all other statements that are not purely historical, may be deemed to be forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Without limiting the foregoing, the words "believes," "anticipates" and "expects" and similar expressions, including the Company's preliminary revenue results, are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. Important factors that may cause or contribute to such differences include the extent of the commercial success of Angiomax, the Company's ability to develop its global operations and penetrate foreign markets, whether the Company's products will advance in the clinical trials process on a timely basis or at all, whether the Company will make regulatory submissions for product candidates on a timely basis, whether its regulatory submissions will receive approvals from regulatory agencies on a timely basis or at all, whether physicians, patients and other key decision makers will accept clinical trial results, risks associated with the establishment of international operations, and such other factors as are set forth in the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission including, without limitation, the risk factors detailed in the Company's Annual Report on Form 10-K filed on March 15, 2011, which are incorporated herein by reference. The Company specifically disclaims any obligation to update these forward-looking statements.
The Medicines Company
Condensed Consolidated Statements of Operations
(unaudited)
Three months ended
(in thousands, except per share data) March 31
------------------
2011 2010
-------- --------
Net revenue $112,137 $102,088
Operating expenses:
Cost of revenue 35,570 28,769
Research and development 23,792 16,877
Selling, general and administrative 37,928 46,121
-------- --------
Total operating expenses 97,290 91,767
-------- --------
Income from operations 14,847 10,321
Legal settlement 17,984 -
Other income (loss) 811 (311)
-------- --------
Income before income taxes 33,642 10,010
Provision for income taxes (9,401) (578)
-------- --------
Net income $ 24,241 $ 9,432
======== ========
Basic earnings per common share $ 0.46 $ 0.18
======== ========
Shares used in computing basic earnings per common
share 53,224 52,496
======== ========
Diluted earnings per common share $ 0.45 $ 0.18
======== ========
Shares used in computing diluted earnings per common
share 54,109 52,719
======== ========
The Medicines Company
Condensed Consolidated Balance Sheets
March 31, December 31,
(in thousands) 2011 2010
----------- -------------
(unaudited)
ASSETS
Cash, cash equivalents and available for sales
securities $ 265,772 $ 246,644
Accrued interest receivable 707 1,279
Accounts receivable, net 49,089 46,551
Inventory 32,365 25,343
Prepaid expenses and other current assets 15,168 4,804
----------- -------------
Total current assets 363,101 324,621
----------- -------------
Fixed assets, net 20,073 20,662
Intangible assets, net 82,332 82,925
Restricted cash 5,784 5,778
Deferred tax assets 24,985 25,197
Goodwill 14,671 14,671
Other assets 276 270
----------- -------------
Total assets $ 511,222 $ 474,124
=========== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 92,855 $ 85,370
Contingent purchase price 26,650 25,387
Other long term liabilities 5,811 5,769
Stockholders' equity 385,906 357,598
----------- -------------
Total liabilities and stockholders' equity $ 511,222 $ 474,124
=========== =============
The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(unaudited)
Three Months Ended March 31
-----------------------------------------------------
2011
-----------------------------------------------------
Non-cash Non-GAAP
Stock-Based Tax (4) As
GAAP(1) Compensation Provision Adjusted
--------- ------------ ---------- ---------
Net revenue $ 112,137 $ - $ - $ 112,137
Operating expenses:
Cost of revenue 35,570 (43) (2) - 35,527
Research and
development 23,792 (427) (2) - 23,365
Selling, general
and administrative 37,928 (1,790) (2) - 36,138
--------- ------------ ---------- ---------
Total operating
expenses 97,290 (2,260) - 95,030
Income from
operations 14,847 2,260 - 17,107
Legal settlement 17,984 - - 17,984
Other income 811 - - 811
--------- ------------ ---------- ---------
Income before income
taxes 33,642 2,260 - 35,902
(Provision for)
Benefit from
income taxes (9,401) - 7,991 (3) (1,410)
--------- ------------ ---------- ---------
Net income 24,241 2,260 7,991 34,492
Basic earnings per
common share $ 0.46 $ 0.04 $ 0.15 $ 0.65
========= ============ ========== =========
Shares used in
computing basic
earnings per common
share 53,224 53,224 53,224 53,224
========= ============ ========== =========
Diluted earnings per
common share $ 0.45 $ 0.04 $ 0.15 $ 0.64
========= ============ ========== =========
Shares used in
computing diluted
earnings per common
share 54,109 54,109 54,109 54,109
========= ============ ========== =========
(1) GAAP Results
(2) Non-cash stock compensation expense
(3) Non-cash income taxes
(4) Non-GAAP Results
The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(unaudited)
Three Months Ended March 31,
-------------------------------------------------------
2010
-------------------------------------------------------
Non-cash Non-GAAP
Stock-Based Tax (4) As
GAAP(1) Compensation Provision Adjusted
--------- ------------ ---------- ---------
Net revenue $ 102,088 $ - $ - $ 102,088
Operating expenses:
Cost of revenue 28,769 (89) (2) - 28,680
Research and
development 16,877 (796) (2) - 16,081
Selling, general
and administrative 46,121 (1,858) (2) - 44,263
--------- ------------ ---------- ---------
Total operating
expenses 91,767 (2,743) - 89,024
Income from
operations 10,321 2,743 - 13,064
Other loss (311) - - (311)
--------- ------------ ---------- ---------
Income before
income taxes 10,010 2,743 - 12,753
(Provision for)
benefit for
income taxes (578) - 326 (3) (252)
--------- ------------ ---------- ---------
Net income 9,432 2,743 326 12,501
Basic earnings per
common share $ 0.18 $ 0.05 $ 0.01 $ 0.24
========= ============ ========== =========
Shares used in
computing basic
earnings per common
share 52,496 52,496 52,496 52,496
========= ============ ========== =========
Diluted earnings per
common share $ 0.18 $ 0.05 $ 0.01 $ 0.24
========= ============ ========== =========
Shares used in
computing diluted
earnings per common
share 52,719 52,719 52,719 52,719
========= ============ ========== =========
(1) GAAP Results
(2) Non-cash stock compensation expense
(3) Non-cash income taxes
(4) Non-GAAP Results