Valeant Pharmaceuticals International Reports Second Quarter 2014 Financial Results

LAVAL, Quebec, July 31, 2014 /PRNewswire/ -- 

• 2014 Second Quarter Total Revenue $2.0 billion; an increase of 86% over the prior year
  • Overall organic growth was 4% for same store sales and 8% pro forma, excluding divested facial injectable products; Bausch + Lomb grew 12%
  • 2014 Second Quarter GAAP EPS $0.37; Cash EPS $1.91, an increase of 43%
  • 2014 Second Quarter GAAP Operating Cash Flow $376 million; Adjusted Operating Cash Flow $500 million
• Highlights of the Second Quarter
  • Launched 17 new products in the U.S. year-to-date
  • Sold facial injectable assets to Galderma S.A. for approximately $1.4 billion; $300+ million gain
  • Proceeds will be used to fund Allergan and/or deploy on additional business development opportunities
  • Received FDA approval for Jublia® earlier than expected; stronger than anticipated label
  • Reached agreement with Irish Government and Unions to successfully restructure the Bausch + Lomb contact lens plant in Ireland
  • Signed three small, but critical business development deals in Indonesia, the Middle East and North Africa, and Asian colored contact lens
• Items to Be Discussed on the Conference Call Scheduled for 8:00 am ET Today
  • Second Quarter 2014 review
  • Financial guidance for 2014
  • Financial outlook for 2015 - 2016
  • Allergan update
• Presentation immediately available under the Investor Relations tab at www.valeant.com

Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) announces second quarter financial results for 2014.

"Valeant once again delivered strong quarterly results and, as expected, organic growth has accelerated from the first quarter," stated J. Michael Pearson, chairman and chief executive officer.  "As we look across the entire business, I have never been more confident about the growth trajectory across the entire company.  For the first time, we are providing a financial outlook for revenue and organic growth, by business unit and geography, for 2015 and 2016 so that investors can both model and track our performance going forward." 

Valeant Second Quarter Financial Results

Valeant's total revenues were $2.0 billion, up 86% compared to the second quarter of 2013 driven by strong growth in almost all of our businesses, including a rebound in our emerging markets in Europe (same store sales organic growth of 13%), continued strong results in Asia (same store sales organic growth of 17%), and robust performance in the U.S. contact lens business (organic growth of 37%) and the U.S. Bausch + Lomb consumer businesses (organic growth of 12%).

Same store organic product sales growth for Valeant was 4% in the second quarter of 2014, while pro forma organic growth was 8%, both which exclude certain aesthetic products that were divested to Galderma S.A., as well as 12% organic growth in our Bausch + Lomb businesses.  Excluding the impact of generics, same store sales organic product sales growth was 10% and pro forma organic product sales growth for Valeant was 11%.  As mentioned in previous conference calls, we continue to expect a significant acceleration of organic growth in the second half of the year.

The Company reported net income of $126 million for the second quarter of 2014, or $0.37 per diluted share. On a Cash EPS basis, adjusted income was $651 million or $1.91 per diluted share, an increase of 43% over the prior year.

GAAP cash flow from operations was $376 million in the second quarter of 2014, an increase of 23% over the second quarter of 2013, and adjusted cash flow from operations was $500 million, an increase of 18% over the prior year.

Conference Call and Webcast Information

The Company will host a conference call and a live Internet webcast along with a slide presentation today at 8:00 a.m. ET (5:00 a.m. PT), July 31, 2014 to discuss its second quarter financial results for 2014. The dial-in number to participate on this call is (877) 876-8393 confirmation code 72826220. International callers should dial (973) 200-3961, confirmation code 72826220. A replay will be available approximately two hours following the conclusion of the conference call through August 9, 2014 and can be accessed by dialing (855) 859-2056, or (404) 537-3406, confirmation code 72826220. The live webcast of the conference call may be accessed through the investor relations section of the Company's corporate website at www.valeant.com.

About Valeant

Valeant Pharmaceuticals International, Inc. (NYSE/TSX:VRX) is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, eye health, neurology and branded generics. More information about Valeant can be found at www.valeant.com.

Forward-looking Statements

This press release may contain forward-looking statements, including, but not limited to, statements regarding expectations with respect to future organic growth and matters expected to be discussed in the scheduled conference call. Forward-looking statements may generally be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "target," or "continue" and variations or similar expressions. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in the Company's most recent annual or quarterly report and detailed from time to time in Valeant's other filings with the Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof.  Valeant undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect actual outcomes.

Non-GAAP Information 

To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the company uses non-GAAP financial measures that exclude certain items, such as amortization of inventory step-up, amortization of alliance product assets & property, plant and equipment step up, stock-based compensation step-up, contingent consideration fair value adjustments, restructuring, acquisition-related and other costs, In-process research and development, impairments and other charges, ("IPR&D"), legal settlements outside the ordinary course of business, the impact of currency fluctuations, amortization and other non-cash charges, amortization including intangible asset impairments and write-down of deferred financing costs, debt discounts and ASC 470-20 (FSP APB 14-1) interest, loss on extinguishment of debt, (gain) loss on assets sold/held for sale/impairment, net, (gain) loss on investments, net, and adjusts tax expense to cash taxes. Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a meaningful, consistent comparison of the company's core operating results and trends for the periods presented. Non-GAAP financial measures are not prepared in accordance with GAAP.  Therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Financial Tables follow.