2018 Q4 Form 10-K Financial Statement

#000088559019000006 Filed on February 20, 2019

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2018 Q2
Revenue $2.121B $2.136B $2.128B
YoY Change -1.94% -3.74% -4.7%
Cost Of Revenue $602.0M $582.0M $584.0M
YoY Change -6.96% -10.46% -8.03%
Gross Profit $1.519B $1.554B $1.544B
YoY Change 0.2% -0.96% -3.38%
Gross Profit Margin 71.62% 72.75% 72.56%
Selling, General & Admin $626.0M $614.0M $642.0M
YoY Change -2.03% -1.44% -2.58%
% of Gross Profit 41.21% 39.51% 41.58%
Research & Development $120.0M $107.0M $94.00M
YoY Change 33.33% 32.1% 0.0%
% of Gross Profit 7.9% 6.89% 6.09%
Depreciation & Amortization $546.0M $703.0M $784.0M
YoY Change -33.33% 0.72% 17.54%
% of Gross Profit 35.94% 45.24% 50.78%
Operating Expenses $1.248B $721.0M $736.0M
YoY Change -17.13% 2.41% -2.26%
Operating Profit $25.00M $117.0M -$245.0M
YoY Change -107.76% 207.89% -240.0%
Interest Expense -$407.0M -$417.0M -$441.0M
YoY Change -4.24% -4.58% 5.76%
% of Operating Profit -1628.0% -356.41%
Other Income/Expense, Net $15.00M $0.00
YoY Change -95.38% -100.0%
Pretax Income -$426.0M -$300.0M -$734.0M
YoY Change -47.01% -25.0% 203.31%
Income Tax -$84.00M $51.00M $138.0M
% Of Pretax Income
Net Earnings -$344.0M -$351.0M -$872.0M
YoY Change -167.06% -127.0% 2256.76%
Net Earnings / Revenue -16.22% -16.43% -40.98%
Basic Earnings Per Share -$0.98 -$1.00 -$2.49
Diluted Earnings Per Share -$0.98 -$1.00 -$2.49
COMMON SHARES
Basic Shares Outstanding 349.8M shares 351.5M shares 351.3M shares
Diluted Shares Outstanding 351.5M shares 351.3M shares

Balance Sheet

Concept 2018 Q4 2018 Q3 2018 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $721.0M $973.0M $838.0M
YoY Change 0.14% 0.93% -30.97%
Cash & Equivalents $721.0M $973.0M $838.0M
Short-Term Investments
Other Short-Term Assets $691.0M $757.0M $835.0M
YoY Change -18.51% -54.94% -47.75%
Inventory $934.0M $971.0M $993.0M
Prepaid Expenses
Receivables $1.865B $2.041B $1.973B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $4.211B $4.742B $4.639B
YoY Change -11.27% -20.22% -22.58%
LONG-TERM ASSETS
Property, Plant & Equipment $1.353B $1.341B $1.355B
YoY Change -3.56% -4.08% -1.31%
Goodwill $13.14B $13.29B $13.28B
YoY Change -15.72% -14.66% -16.42%
Intangibles $12.00B $12.66B $13.39B
YoY Change -21.1% -21.02% -23.54%
Long-Term Investments
YoY Change
Other Assets $109.0M $108.0M $124.0M
YoY Change -1.8% -28.95% 11.71%
Total Long-Term Assets $28.28B $29.04B $29.81B
YoY Change -13.65% -14.68% -16.6%
TOTAL ASSETS
Total Short-Term Assets $4.211B $4.742B $4.639B
Total Long-Term Assets $28.28B $29.04B $29.81B
Total Assets $32.49B $33.78B $34.45B
YoY Change -13.35% -15.5% -17.46%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $411.0M $440.0M $417.0M
YoY Change 12.6% 8.11% 12.4%
Accrued Expenses $3.197B $3.424B $3.427B
YoY Change -13.45% 0.82% 5.15%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $720.0M
YoY Change -100.0% -100.0%
Long-Term Debt Due $228.0M $298.0M $230.0M
YoY Change 9.09% -67.78% -71.71%
Total Short-Term Liabilities $3.836B $4.162B $4.074B
YoY Change -10.12% -11.97% -8.76%
LONG-TERM LIABILITIES
Long-Term Debt $24.08B $24.43B $24.86B
YoY Change -4.59% -6.8% -10.09%
Other Long-Term Liabilities $581.0M $532.0M $518.0M
YoY Change 10.46% 421.57% 398.08%
Total Long-Term Liabilities $24.66B $24.97B $25.38B
YoY Change -4.28% -5.14% -8.56%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.836B $4.162B $4.074B
Total Long-Term Liabilities $24.66B $24.97B $25.38B
Total Liabilities $29.68B $30.54B $30.89B
YoY Change -5.95% -11.61% -18.07%
SHAREHOLDERS EQUITY
Retained Earnings -$5.664B -$5.320B -$4.970B
YoY Change 107.85% 64.25% 9.5%
Common Stock $10.53B $10.53B $10.51B
YoY Change 0.61% 0.69% 0.67%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.733B $3.153B $3.467B
YoY Change
Total Liabilities & Shareholders Equity $32.49B $33.78B $34.45B
YoY Change -13.35% -15.5% -17.46%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2018 Q2
OPERATING ACTIVITIES
Net Income -$344.0M -$351.0M -$872.0M
YoY Change -167.06% -127.0% 2256.76%
Depreciation, Depletion And Amortization $546.0M $703.0M $784.0M
YoY Change -33.33% 0.72% 17.54%
Cash From Operating Activities $319.0M $522.0M $222.0M
YoY Change -44.81% 6.53% -17.16%
INVESTING ACTIVITIES
Capital Expenditures -$64.00M -$27.00M -$89.00M
YoY Change -11.11% -43.75% 89.36%
Acquisitions
YoY Change
Other Investing Activities $2.000M $32.00M -$2.000M
YoY Change -98.77% -96.51% -100.24%
Cash From Investing Activities -$62.00M $5.000M -$91.00M
YoY Change -168.89% -99.42% -111.67%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -502.0M -386.0M -177.0M
YoY Change -72.75% -73.01% -28.92%
NET CHANGE
Cash From Operating Activities $319.0M $522.0M $222.0M
Cash From Investing Activities -62.00M 5.000M -91.00M
Cash From Financing Activities -502.0M -386.0M -177.0M
Net Change In Cash $319.0M $522.0M $222.0M
YoY Change -44.81% 6.53% -17.16%
FREE CASH FLOW
Cash From Operating Activities $319.0M $522.0M $222.0M
Capital Expenditures -$64.00M -$27.00M -$89.00M
Free Cash Flow $383.0M $549.0M $311.0M
YoY Change -41.08% 2.04% -1.27%

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25000000 USD
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110000000 USD
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102000000 USD
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4000000 USD
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1000000 USD
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2000000 USD
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0.027
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55000000 USD
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273000000 USD
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345000000 USD
CY2017Q4 us-gaap Valuation Allowances And Reserves Balance
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2546000000 USD
CY2018Q4 us-gaap Valuation Allowances And Reserves Balance
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2384000000 USD
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5887000000 USD
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6049000000 USD
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347300000 shares
CY2017 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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351800000 shares
CY2018 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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351300000 shares
CY2016 us-gaap Weighted Average Number Of Shares Outstanding Basic
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347300000 shares
CY2017 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2018 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2018 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Concentrations of Credit Risk </font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and trade receivables.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company invests its excess cash in high-quality, money market instruments and term deposits with varying maturities, but typically less than </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> months.</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s cash and cash equivalents are invested in various investment grade institutional money market accounts and bank term deposits. Cash deposited at banks may exceed the amount of insurance provided on such deposits. Generally, these cash deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate such risks by spreading its risk across multiple counterparties and monitoring the risk profiles of these counterparties.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s trade receivables primarily represent amounts due from wholesale distributors, retail pharmacies, government entities and group purchasing organizations. Outside of the U.S., concentrations of credit risk with respect to trade receivables, which are typically unsecured, are limited due to the number of customers using the Company&#8217;s products, as well as their dispersion across many different geographic regions. The Company performs periodic credit evaluations of customers and does not require collateral. The Company monitors economic conditions, including volatility associated with international economies, and related impacts on the relevant financial markets and its business, especially in light of sovereign credit issues. The credit and economic conditions within Portugal, Greece, among other members of the European Union, Brazil, Egypt, Argentina, Turkey and Ukraine have been weak in recent years. In November 2016, as a result of the Egyptian government&#8217;s decision to float the Egyptian pound and un-peg it to the U.S. Dollar, the Egyptian pound was significantly devalued.&#160; The Company's exposure to the Egyptian pound is with respect to the Amoun Pharmaceutical Company S.A.E. business acquired in October 2015, which represented approximately </font><font style="font-family:inherit;font-size:10pt;">2%</font><font style="font-family:inherit;font-size:10pt;"> of the Company's revenue in each of the years 2018, 2017 and 2016 total revenues. These conditions have increased, and may continue to increase, the average length of time that it takes to collect on the Company&#8217;s trade receivables outstanding in these countries. </font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">An allowance for doubtful accounts is maintained for potential credit losses based on the aging of trade receivables, historical bad debts experience and changes in customer payment patterns. Trade receivable balances are written off against the allowance when it is deemed probable that the receivable will not be&#160;collected.</font></div></div>
CY2018 us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">DESCRIPTION OF BUSINESS</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Bausch Health Companies Inc. (the &#8220;Company&#8221;), formerly known as Valeant Pharmaceuticals International, Inc., is a multinational, specialty pharmaceutical and medical device company that develops, manufactures and markets a broad range of branded, generic and branded generic pharmaceuticals, over-the-counter (&#8220;OTC&#8221;) products and medical devices (contact lenses, intraocular lenses, ophthalmic surgical equipment and aesthetics devices) which are marketed directly or indirectly in over </font><font style="font-family:inherit;font-size:10pt;">90</font><font style="font-family:inherit;font-size:10pt;"> countries. Effective August 9, 2013, the Company continued from the federal jurisdiction of Canada to the Province of British Columbia, meaning that the Company became a company registered under the laws of the Province of British Columbia as if it had been incorporated under the laws of the Province of British Columbia. As a result of this continuance, the legal domicile of the Company became the Province of British Columbia, the Canada Business Corporations Act ceased to apply to the Company and the Company became subject to the British Columbia Business Corporations Act.</font></div></div>

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