Watson Pharmaceuticals, Inc. Second Quarter 2012 Non-GAAP Diluted EPS Increases 41% to $1.42; Net Revenue Increases 25% to Over $1.3 Billion
PARSIPPANY, N.J., July 26, 2012 /PRNewswire/ -- Watson Pharmaceuticals, Inc. (NYSE: WPI) today reported net income for the second quarter 2012 increased 42 percent to $181.4 million or $1.42 per diluted share on a non-GAAP basis, compared to $127.9 million or $1.01 per diluted share in the second quarter 2011. Net revenue increased 25 percent to $1.36 billion, compared to $1.08 billion in the second quarter 2011. On a GAAP basis, the Company recorded a loss of $62.2 million or $0.49 per share compared to earnings of $52.7 million or $0.42 per diluted share in the prior year period. The current quarter loss for GAAP purposes includes $183.2 million or $1.33 per share of charges related to the pending acquisition of Actavis. See Table 4 for a complete reconciliation of GAAP and Non-GAAP results.
For the second quarter 2012, adjusted EBITDA increased 37 percent to $333.0 million, compared to $243.3 million for the second quarter 2011. For the second quarter 2012, cash flow from operations was $199.7 million and cash and marketable securities were $225.0 million as of June 30, 2012. Refer to the attached reconciliation tables for adjustments to GAAP earnings.
"Double-digit growth of non-GAAP EPS, revenue and adjusted EBITDA resulted from solid execution across all three of our businesses," said Paul Bisaro, President and CEO. "I'm pleased to report that at the half-way point of the year, we are executing well on our strategies to deliver on our stand-alone 2012 growth plan and to drive continued growth over the long-term.
"Global Generics and Anda Distribution revenues increased 26 percent and 37 percent respectively, while our Global Brands business delivered $119 million in revenues, an increase of 6 percent. Looking beyond the numbers, we saw significant achievements against our integrated growth strategies," Bisaro continued.
"Following the April 25th announcement of the proposed acquisition of Actavis, we are making excellent progress in planning for a successful integration with an anticipated close in the fourth quarter, so that we can maximize the global value of this transformative transaction," concluded Bisaro.
Business Segment Results