PARSIPPANY, N.J., Nov. 1, 2011 /PRNewswire/ -- Watson Pharmaceuticals, Inc. (NYSE: WPI) today reported net revenue of $1.1 billion for the third quarter ended September 30, 2011, an increase of 23 percent when compared to $882.4 million in the third quarter 2010. On a non-GAAP basis, net income for the third quarter 2011 increased 31 percent to $138.7 million or $1.09 per diluted share, compared to $105.9 million or $0.85 per diluted share in the third quarter 2010. GAAP diluted earnings per share for the third quarter 2011 were $0.54, compared to $0.21 in the prior year period. Refer to the attached reconciliation tables for adjustments to GAAP earnings.
For the third quarter 2011, adjusted EBITDA increased 22 percent to $258.2 million, compared to $211.1 million for the third quarter 2010. Cash and marketable securities were $172.5 million as of September 30, 2011.
“Our exceptional performance in the third quarter, as measured by double-digit revenue and earnings growth, was driven once again by our focus on the execution of our business growth strategies in Global Generics and Brands and our continued focus on operational excellence,” said Paul Bisaro, President and CEO. “Revenue growth of nearly 40 percent in our Global Generics segment came from sales of our extended release and oral contraceptive franchises in the US, and increased international product sales including the addition of Specifar. Growth in our Global Brands segment came from continued strong sales of our key promoted products including RAPAFLO®, which reached a milestone of more than 500,000 prescriptions dispensed since launch.”
“With revenues exceeding $1 billion for the second consecutive quarter, we are utilizing our earnings and cash flow to continue our strategic investment into future growth drivers, while strengthening our balance sheet to drive further expansion. Our results have allowed for continued investments in R&D and in sales and marketing, including preparations for the launch of several of our brand products outside of the U.S., as well as continued investment in preparation for the anticipated February 2012 PDUFA date for our progesterone gel product for prevention of preterm birth for women with a shortened cervix.”
“Cash from operations for the third quarter 2011 was $118.4 million and we ended the quarter with $172.5 million in cash and marketable securities and a debt to adjusted EBITDA ratio of just 1.2x. This low level of debt provides us with a great deal of flexibility as we continue to pursue opportunities to expand Watson’s businesses,” concluded Bisaro.
