2024 Q3 Form 10-Q Financial Statement

#000123252424000068 Filed on August 01, 2024

View on sec.gov

Income Statement

Concept 2024 Q3 2024 Q2
Revenue $1.055B $1.024B
YoY Change 8.52% 6.95%
Cost Of Revenue $111.6M $109.9M
YoY Change 9.21% 12.68%
Gross Profit $943.4M $913.9M
YoY Change 8.43% 6.3%
Gross Profit Margin 89.42% 89.27%
Selling, General & Admin $325.8M $338.5M
YoY Change 5.66% -0.68%
% of Gross Profit 34.53% 37.04%
Research & Development $199.9M $220.7M
YoY Change -14.71% 5.49%
% of Gross Profit 21.19% 24.15%
Depreciation & Amortization $165.2M $155.2M
YoY Change 1.62% -2.73%
% of Gross Profit 17.52% 16.98%
Operating Expenses $525.7M $559.3M
YoY Change -3.14% 1.67%
Operating Profit $260.2M $199.4M
YoY Change 50.94% 26.52%
Interest Expense -$58.70M -$62.02M
YoY Change -17.9% -15.58%
% of Operating Profit -22.56% -31.1%
Other Income/Expense, Net
YoY Change
Pretax Income $200.8M $137.9M
YoY Change 101.78% 68.65%
Income Tax -$14.50M -$30.70M
% Of Pretax Income -7.22% -22.26%
Net Earnings $215.1M $168.6M
YoY Change 46.48% 61.4%
Net Earnings / Revenue 20.38% 16.46%
Basic Earnings Per Share $3.50 $2.68
Diluted Earnings Per Share $3.42 $2.49
COMMON SHARES
Basic Shares Outstanding 61.75M shares 63.04M shares
Diluted Shares Outstanding 63.17M shares 69.63M shares

Balance Sheet

Concept 2024 Q3 2024 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.618B $1.981B
YoY Change 65.08% 45.4%
Cash & Equivalents $2.218B $1.356B
Short-Term Investments $400.0M $625.0M
Other Short-Term Assets $354.2M $325.9M
YoY Change 14.11% 19.6%
Inventory $539.3M $542.6M
Prepaid Expenses $155.1M $134.4M
Receivables $723.6M $698.0M
Other Receivables $0.00 $140.1M
Total Short-Term Assets $4.390B $3.682B
YoY Change 35.27% 22.32%
LONG-TERM ASSETS
Property, Plant & Equipment $253.6M $242.4M
YoY Change -11.95% -18.73%
Goodwill $1.805B $1.736B
YoY Change 5.82% -0.39%
Intangibles $5.144B $5.079B
YoY Change -5.05% -10.98%
Long-Term Investments
YoY Change
Other Assets $75.23M $71.43M
YoY Change -1.12% 8.26%
Total Long-Term Assets $7.865B $7.680B
YoY Change -1.17% -6.91%
TOTAL ASSETS
Total Short-Term Assets $4.390B $3.682B
Total Long-Term Assets $7.865B $7.680B
Total Assets $12.26B $11.36B
YoY Change 9.39% 0.9%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $85.43M $97.10M
YoY Change -22.23% -1.35%
Accrued Expenses $858.6M $801.0M
YoY Change 11.51% 7.04%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $31.00M $605.8M
YoY Change -94.87% 1854.19%
Total Short-Term Liabilities $1.030B $1.556B
YoY Change -34.54% 64.61%
LONG-TERM LIABILITIES
Long-Term Debt $6.081B $5.101B
YoY Change 18.98% -10.3%
Other Long-Term Liabilities $111.0M $99.42M
YoY Change -12.95% -21.52%
Total Long-Term Liabilities $6.192B $5.200B
YoY Change 18.2% -10.54%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.030B $1.556B
Total Long-Term Liabilities $6.192B $5.200B
Total Liabilities $7.222B $6.756B
YoY Change 6.02% -0.03%
SHAREHOLDERS EQUITY
Retained Earnings $936.2M $871.2M
YoY Change 5.87% 7.31%
Common Stock $3.838B $3.779B
YoY Change 5.43% 5.56%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $4.171B $3.763B
YoY Change
Total Liabilities & Shareholders Equity $12.26B $11.36B
YoY Change 9.39% 0.9%

Cashflow Statement

Concept 2024 Q3 2024 Q2
OPERATING ACTIVITIES
Net Income $215.1M $168.6M
YoY Change 46.48% 61.4%
Depreciation, Depletion And Amortization $165.2M $155.2M
YoY Change 1.62% -2.73%
Cash From Operating Activities $398.7M $331.4M
YoY Change 29.8% 11.65%
INVESTING ACTIVITIES
Capital Expenditures $10.79M $7.091M
YoY Change 150.88% 23.56%
Acquisitions
YoY Change
Other Investing Activities $224.9M -$250.0M
YoY Change -232.28% 212.5%
Cash From Investing Activities $214.1M -$257.1M
YoY Change -222.83% 199.85%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 246.4M -161.1M
YoY Change -414.32% 66.64%
NET CHANGE
Cash From Operating Activities 398.7M 331.4M
Cash From Investing Activities 214.1M -257.1M
Cash From Financing Activities 246.4M -161.1M
Net Change In Cash 859.3M -86.82M
YoY Change 1476.63% -175.92%
FREE CASH FLOW
Cash From Operating Activities $398.7M $331.4M
Capital Expenditures $10.79M $7.091M
Free Cash Flow $388.0M $324.3M
YoY Change 28.08% 11.42%

Facts In Submission

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<div style="margin-top:14pt;text-indent:11.25pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-top:6pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures in the condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates.</span></div>
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<div style="margin-top:14pt;text-indent:11.25pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Concentrations of Risk</span></div><div style="margin-top:6pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, investments and derivative contracts. Our investment policy permits investments in U.S. federal government and federal agency securities, corporate bonds or commercial paper issued by U.S. corporations, money market instruments, certain qualifying money market mutual funds, certain repurchase agreements, and tax-exempt obligations of U.S. states, agencies and municipalities and places restrictions on credit ratings, maturities, and concentration by type and issuer. We are exposed to credit risk in the event of a default by the financial institutions holding our cash, cash equivalents and investments to the extent recorded on the balance sheet.</span></div>We manage our foreign currency transaction risk and interest rate risk within specified guidelines through the use of derivatives. All of our derivative instruments are utilized for risk management purposes, and we do not use derivatives for speculative trading purposes.The counterparties to these contracts are large multinational commercial banks, and we believe the risk of nonperformance is not significant.We are also subject to credit risk from our accounts receivable related to our product sales. We monitor our exposure within accounts receivable and record a reserve against uncollectible accounts receivable as necessary. We extend credit to pharmaceutical wholesale distributors and specialty pharmaceutical distribution companies, primarily in the U.S., and to other international distributors and hospitals. Customer creditworthiness is monitored and collateral is not required. We monitor economic conditions in certain European countries which may result in variability of the timing of cash receipts and an increase in the average length of time that it takes to collect accounts receivable outstanding.<div style="margin-top:6pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We depend on single source suppliers for most of our products, product candidates and their active pharmaceutical ingredients, or APIs. With respect to our oxybate products, the API is manufactured for us by a single source supplier and the finished products are manufactured both by us in our facility in Athlone, Ireland and by our U.S.-based supplier.</span></div>
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