PARSIPPANY, N.J., Feb. 14, 2012 /PRNewswire/ -- Watson Pharmaceuticals, Inc. (NYSE: WPI) today reported net revenue increased 62 percent to $1.5 billion for the fourth quarter ended December 31, 2011, compared to $952.7 million in the fourth quarter 2010. On a non-GAAP basis, net income for the fourth quarter 2011 was $225.2 million or $1.77 per share, an increase of 93 percent, compared to $116.5 million or $0.93 per share in the fourth quarter 2010. GAAP earnings per share for the fourth quarter 2011 were $0.75, compared to $0.15 in the prior year period.
For the fourth quarter 2011, adjusted EBITDA increased 78 percent to $393.4 million, compared to $220.8 million for the fourth quarter 2010. Cash and marketable securities were $224.2 million as of December 31, 2011. Refer to the attached reconciliation tables for adjustments to GAAP earnings.
Full Year 2011 Results
For the full year 2011, net revenue increased 29 percent to $4.6 billion, compared to net revenue of $3.6 billion for full year 2010. On a non-GAAP basis, net income increased 42 percent to $603.8 million, or $4.77 per share for the full year 2011, compared to 2010 net income of $425.4 million, or $3.42 per share. GAAP earnings per share were $2.06 for the full year 2011, compared to $1.48 in 2010.
For the full year 2011, adjusted EBITDA was $1.1 billion, an increase of 33 percent from the full year 2010 adjusted EBITDA of $838.2 million. Cash flow from operations was $632.0 million.
“2011 continued a track record of success and growth for Watson. Revenues for the fourth quarter grew by 62 percent and non-GAAP earnings per share increased by 90 percent versus 2010. Additionally, strong cash flow from operations for the year of more than $630 million enabled us to reduce our debt to adjusted EBITDA ratio to below 1.0x at year end, putting us in a strong position to continue to execute on our strategies including investments in acquisitions that provide long-term growth for the Company and its shareholders,” said Paul Bisaro, President and CEO. “We saw continued growth in our Global Generics and Global Brands businesses, driven largely by key product launches throughout the year. In 2011, we launched 189 generic products globally, with significant revenue contributions from the U.S. launches of generic versions of Concerta®, Seasonique®, Kadian® and Lipitor®. Investments in our future growth resulted in the filing of 30 new Abbreviated New Drug Applications in the U.S. and more than 130 applications globally.”
“In our Global Brands business, we experienced growth from U.S. sales of Rapaflo®, Gelnique® and Crinone®; launched Generess® Fe and Androderm® 2mg, 4mg in the U.S.; and focusing on the long-term future of this business, announced a collaboration with Amgen to develop a portfolio of biosimilar monoclonal antibody (mAb) oncology products,” Bisaro continued.
“In 2011, we also continued to utilize our strong balance sheet to expand our global footprint by investing in key growth markets with the expansion of our brand business in Canada and the addition of Specifar Pharmaceuticals to our European operations. We also realized significant enhancements to our global supply chain through our Operational Excellence framework and announced expansions to our Goa, Malta and Salt Lake City facilities,” concluded Bisaro.
