Alere Files Form 10-K, Reports Fourth Quarter And Full Year 2016 Financial Results

WALTHAM, Mass., June 5, 2017/PRNewswire/ -- Alere Inc.(NYSE: ALR), a global leader in rapid diagnostic tests, today announced that it has filed its Form 10-K and reported its financial results for the fourth quarter and full year ended December 31, 2016.

Full Year 2016 Results

• Revenue for the full year 2016 was $2.38 billion, a 3% decrease compared to $2.46 billion in the prior year period.
• Non-GAAP organic growth for the full year 2016 was +0.3% or +2.5% excluding Arriva*.
• Strong performance in Infectious Disease led by international growth on a constant currency basis included double-digit growth in Latin America, Asia Pacific and Africa. Patient self-testing also achieved double-digit growth in 2016.
• Negative impact of foreign currency exchange was $41 million in 2016.
• GAAP loss from continuing operations was $(137) million, or $(1.83) per diluted share, for the full year 2016, compared to $(15) million, or $(0.43) per diluted share in the prior year period.
• Non-GAAP adjusted EBITDA of $347 million for the full year 2016, a 30% decrease compared to $495 million in the prior year period. The decrease was primarily due to approximately $135 million in merger-related costs, audit and legal fees related to ongoing investigations and legal settlements, as detailed in the Supplemental Financial Information table.

*During the period from November 4, 2016 to December 31, 2016, the Company furnished $9.8 million of Arriva products and services that were subject to the CMS revocation to customers but did not recognize any revenue for such products and services because they were not eligible for reimbursement by CMS at the time the Company furnished them.

"Alere delivered solid 2016 results by maintaining our discipline and staying focused on core business growth as a leader in point-of-care diagnostics. Excluding extraordinary costs and the impact of foreign currency exchange and divestitures, our operating earnings in 2016 were roughly in line with 2015," said Namal Nawana, CEO of Alere. "We successfully accelerated growth in our global Infectious Disease business in 2016, achieving near double-digit sales growth driven by the success of the Alere i molecular platform with an expanded menu of three assays. In addition, we continued to invest in global operations and infrastructure to strengthen the enterprise. We have seen a strong start to 2017 in each of our global business units and look forward to reporting our progress in the first quarter results."

Fourth Quarter 2016 Results                                                                                                  

• Total revenue was $597 million, a 3% decrease compared to $617 million in the prior year period.
• Global influenza sales were $39 million in the fourth quarter of 2016, a 60% increase compared to $24 million in the prior year period.
• Non-GAAP organic growth during the fourth quarter of 2016 was -0.9%, or +3.7% excluding Arriva.
• Negative impact of foreign currency exchange was $8 million in the fourth quarter of 2016.
• GAAP loss from continuing operations during the fourth quarter of 2016 was $(114) million, or $(1.38) per diluted share, compared to $(22) million, or $(0.31) per diluted share in the prior year period.
• Non-GAAP adjusted EBITDA was $82 million in the fourth quarter of 2016, a 10% decrease compared to $91 million in the prior year period. The decrease was primarily due to higher costs as detailed in the Supplemental Financial Information table.

Non-GAAP Information
To supplement the financial measures prepared in accordance with U.S. GAAP, the Company uses Non-GAAP adjusted EBITDA and Non-GAAP organic growth, which are non-GAAP financial measures.  The reconciliations of Non-GAAP adjusted EBITDA to net income (loss) from continuing operations and Non-GAAP organic growth to revenue, the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP, are shown in the table in this press release. The Company believes Non-GAAP adjusted EBITDA and Non-GAAP organic growth are useful to investors because these metrics are commonly used by investors to assess the unleveraged, pre-tax financial performance and operating results of ongoing business operations. The Company's management also uses Non-GAAP adjusted EBITDA and Non-GAAP organic growth because the Company's management also believes that these are useful measures to evaluate the financial performance of the Company based on operational factors. It should also be noted that not all companies calculate Non-GAAP adjusted EBITDA and Non-GAAP organic growth in the same manner and, accordingly, these measures presented in this press release may not be comparable to similar measures used by other companies.

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