2021 Q1 Form 10-Q Financial Statement

#000090670921000008 Filed on May 07, 2021

View on sec.gov

Income Statement

Concept 2021 Q1 2020 Q1
Revenue $23.65M $50.57M
YoY Change -53.24% 79.2%
Cost Of Revenue $5.756M $3.811M
YoY Change 51.04% -29.94%
Gross Profit $17.89M $46.76M
YoY Change -61.74% 105.26%
Gross Profit Margin 75.66% 92.46%
Selling, General & Admin $31.70M $26.20M
YoY Change 20.99% 4.8%
% of Gross Profit 177.18% 56.03%
Research & Development $95.60M $109.0M
YoY Change -12.28% -8.0%
% of Gross Profit 534.37% 233.07%
Depreciation & Amortization $3.500M $4.500M
YoY Change -22.22% 45.16%
% of Gross Profit 19.56% 9.62%
Operating Expenses $95.60M $109.0M
YoY Change -12.28% -8.0%
Operating Profit -$109.4M -$133.6M
YoY Change -18.14% 10.73%
Interest Expense $0.00 $6.204M
YoY Change -100.0% 18.71%
% of Operating Profit
Other Income/Expense, Net -$13.48M -$4.820M
YoY Change 179.73% -504.36%
Pretax Income -$122.9M -$138.5M
YoY Change -11.25% 15.86%
Income Tax $92.00K $200.0K
% Of Pretax Income
Net Earnings -$123.0M -$138.7M
YoY Change -11.31% 15.9%
Net Earnings / Revenue -520.01% -274.16%
Basic Earnings Per Share -$0.68 -$0.78
Diluted Earnings Per Share -$0.68 -$0.78
COMMON SHARES
Basic Shares Outstanding 181.4M shares 177.6M shares
Diluted Shares Outstanding 181.4M shares

Balance Sheet

Concept 2021 Q1 2020 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.037B $1.346B
YoY Change -22.93% -3.08%
Cash & Equivalents $150.2M $227.0M
Short-Term Investments $887.2M $1.119B
Other Short-Term Assets $15.77M $13.81M
YoY Change 14.19% -70.49%
Inventory $16.81M $14.32M
Prepaid Expenses
Receivables $29.16M $42.03M
Other Receivables $0.00 $0.00
Total Short-Term Assets $1.099B $1.429B
YoY Change -23.11% -4.08%
LONG-TERM ASSETS
Property, Plant & Equipment $58.51M $62.31M
YoY Change -6.09% -56.0%
Goodwill $76.50M $76.50M
YoY Change 0.0%
Intangibles
YoY Change
Long-Term Investments $96.10M $185.9M
YoY Change -48.31% -59.22%
Other Assets $1.435M
YoY Change
Total Long-Term Assets $357.5M $458.6M
YoY Change -22.04% -32.2%
TOTAL ASSETS
Total Short-Term Assets $1.099B $1.429B
Total Long-Term Assets $357.5M $458.6M
Total Assets $1.457B $1.888B
YoY Change -22.85% -12.86%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $22.43M $21.79M
YoY Change 2.96% 98.08%
Accrued Expenses $101.2M $97.10M
YoY Change 4.22% 25.13%
Deferred Revenue $3.007M
YoY Change -72.89%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $254.1M
YoY Change
Total Short-Term Liabilities $123.6M $377.5M
YoY Change -67.25% 278.61%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities $4.130M $214.0M
YoY Change -98.07% 15.12%
Total Long-Term Liabilities $4.130M $214.0M
YoY Change -98.07% -50.61%
TOTAL LIABILITIES
Total Short-Term Liabilities $123.6M $377.5M
Total Long-Term Liabilities $4.130M $214.0M
Total Liabilities $462.1M $591.5M
YoY Change -21.89% 10.98%
SHAREHOLDERS EQUITY
Retained Earnings -$2.432B -$2.003B
YoY Change 21.4%
Common Stock $3.430B $3.307B
YoY Change 3.72%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $994.5M $1.296B
YoY Change
Total Liabilities & Shareholders Equity $1.457B $1.888B
YoY Change -22.85% -12.86%

Cashflow Statement

Concept 2021 Q1 2020 Q1
OPERATING ACTIVITIES
Net Income -$123.0M -$138.7M
YoY Change -11.31% 15.9%
Depreciation, Depletion And Amortization $3.500M $4.500M
YoY Change -22.22% 45.16%
Cash From Operating Activities -$77.09M -$78.08M
YoY Change -1.27% -3.49%
INVESTING ACTIVITIES
Capital Expenditures $2.876M $900.0K
YoY Change 219.56% -84.07%
Acquisitions
YoY Change
Other Investing Activities $13.30M $198.7M
YoY Change -93.31% -3156.92%
Cash From Investing Activities $10.46M $197.8M
YoY Change -94.71% -1729.32%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $17.86M $11.08M
YoY Change 61.2% 126.34%
NET CHANGE
Cash From Operating Activities -$77.09M -$78.08M
Cash From Investing Activities $10.46M $197.8M
Cash From Financing Activities $17.86M $11.08M
Net Change In Cash -$48.79M $130.7M
YoY Change -137.34% -248.23%
FREE CASH FLOW
Cash From Operating Activities -$77.09M -$78.08M
Capital Expenditures $2.876M $900.0K
Free Cash Flow -$79.96M -$78.98M
YoY Change 1.25% -8.74%

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CY2021Q1 us-gaap Increase Decrease In Other Accrued Liabilities
IncreaseDecreaseInOtherAccruedLiabilities
-7345000 USD
CY2020Q1 us-gaap Increase Decrease In Other Accrued Liabilities
IncreaseDecreaseInOtherAccruedLiabilities
7483000 USD
CY2021Q1 us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
-605000 USD
CY2020Q1 us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
-2510000 USD
CY2021Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-77085000 USD
CY2020Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-78075000 USD
CY2021Q1 us-gaap Payments To Acquire Available For Sale Securities Debt
PaymentsToAcquireAvailableForSaleSecuritiesDebt
295314000 USD
CY2020Q1 us-gaap Payments To Acquire Available For Sale Securities Debt
PaymentsToAcquireAvailableForSaleSecuritiesDebt
241068000 USD
CY2021Q1 us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
303612000 USD
CY2020Q1 us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
439735000 USD
CY2021Q1 us-gaap Proceeds From Sale Of Available For Sale Securities Debt
ProceedsFromSaleOfAvailableForSaleSecuritiesDebt
5036000 USD
CY2020Q1 us-gaap Proceeds From Sale Of Available For Sale Securities Debt
ProceedsFromSaleOfAvailableForSaleSecuritiesDebt
0 USD
CY2021Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
2876000 USD
CY2020Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
900000 USD
CY2021Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
10458000 USD
CY2020Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
197767000 USD
CY2021Q1 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlans
17106000 USD
CY2020Q1 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlans
11077000 USD
CY2021Q1 us-gaap Proceeds From Derivative Instrument Financing Activities
ProceedsFromDerivativeInstrumentFinancingActivities
750000 USD
CY2020Q1 us-gaap Proceeds From Derivative Instrument Financing Activities
ProceedsFromDerivativeInstrumentFinancingActivities
0 USD
CY2021Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
17856000 USD
CY2020Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
11077000 USD
CY2021Q1 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
-20000 USD
CY2020Q1 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
-97000 USD
CY2021Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-48791000 USD
CY2020Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
130672000 USD
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
198955000 USD
CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
96363000 USD
CY2021Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
150164000 USD
CY2020Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
227035000 USD
CY2021Q1 us-gaap Interest Paid Net
InterestPaidNet
0 USD
CY2020Q1 us-gaap Interest Paid Net
InterestPaidNet
4951000 USD
CY2021Q1 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
1057000 USD
CY2020Q1 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
2133000 USD
CY2021Q1 nktr Cash Restricted Cash Cash Equivalents And Available For Sale Investments
CashRestrictedCashCashEquivalentsAndAvailableForSaleInvestments
1100000000 USD
CY2021Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="margin-top:18pt"><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:31.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Accounting estimates and assumptions are inherently uncertain. </span></div><div style="margin-top:10pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Actual results could differ materially from those estimates and assumptions. As appropriate, we assess our estimates each period, update them to reflect current information and generally recognize any changes in such estimates in the period first identified.</span></div>
CY2021Q1 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="margin-top:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Reclassifications</span></div><div style="margin-top:6pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain items previously reported in specific financial statement captions have been reclassified to conform to the current period presentation. Such reclassifications do not materially impact previously reported revenue, operating loss, net loss, total assets, liabilities or stockholders’ equity.</span></div>
CY2021Q1 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 segment
CY2021Q1 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 segment
CY2021Q1 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="margin-top:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Significant Concentrations</span></div><div style="margin-top:6pt;text-indent:31.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our customers are primarily pharmaceutical and biotechnology companies that are located in the U.S. and Europe and with whom we have multi-year arrangements. Our accounts receivable balance contains billed and unbilled trade receivables from product sales, milestones (to the extent that they have been achieved and are due from the counterparty), and other contingent payments, as well as reimbursable costs from collaborative research and development agreements. As of March 31, 2021, our accounts receivable includes $26.2 million for unbilled net expense reimbursements from our collaboration partner Bristol-Myers Squibb Company (BMS) and $2.9 million under customer contracts from our collaboration partners. As of December 31, 2020, our accounts receivable included $38.7 million for unbilled net expense reimbursements from BMS and $0.2 million from customer contracts. We generally do not require collateral from our customers. We perform a regular review of our customers’ credit risk and payment histories, including payments made after period end. Historically, we have not experienced credit losses from our accounts receivable and recorded no bad debt expense for the three months ended March 31, 2021 and 2020. We have not recorded a reserve for credit losses at March 31, 2021 or December 31, 2020.</span></div><div style="margin-top:10pt;text-indent:31.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We are dependent on our suppliers and contract manufacturers to provide raw materials and drugs of appropriate quality and reliability and to meet applicable contract and regulatory requirements. In certain cases, we rely on single sources of supply of one or more critical materials. Consequently, in the event that supplies are delayed or interrupted for any reason, including as a result of the COVID-19 pandemic, our ability to develop and produce our drug candidates, our ability to supply comparator drugs for our clinical trials, or our ability to meet our supply obligations could be significantly impaired, which could have a material adverse effect on our business, financial condition and results of operations.</span></div><div style="margin-top:10pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">For our available-for-sale securities, we have significant concentrations of issuers in the banking and financial services industry. While our investment policy requires that we only invest in highly-rated securities and limit our exposure to any single issuer, a deterioration in this industry could have a material effect on our results of operations and financial position. Additionally, pursuant to our investment policy, we may sell securities before maturity if the issuer’s credit rating has been downgraded below our minimum credit rating requirements, which may result in a loss on the sale. Accordingly, if factors, including the effects of the COVID-19 pandemic, result in downgrades below our minimum credit rating requirements and if we decide to sell these securities, we may experience losses on such sales.</span></div>
CY2021Q1 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
0 USD
CY2020Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
0 USD
CY2021Q1 nktr Sale Of Stock Value Authorized In Transaction
SaleOfStockValueAuthorizedInTransaction
300000000.0 USD
CY2021Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
150164000 USD
CY2020Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
198955000 USD
CY2021Q1 us-gaap Available For Sale Securities Debt Securities Current
AvailableForSaleSecuritiesDebtSecuritiesCurrent
887152000 USD
CY2020Q4 us-gaap Available For Sale Securities Debt Securities Current
AvailableForSaleSecuritiesDebtSecuritiesCurrent
862941000 USD
CY2021Q1 us-gaap Available For Sale Securities Debt Securities Noncurrent
AvailableForSaleSecuritiesDebtSecuritiesNoncurrent
96093000 USD
CY2020Q4 us-gaap Available For Sale Securities Debt Securities Noncurrent
AvailableForSaleSecuritiesDebtSecuritiesNoncurrent
136662000 USD
CY2021Q1 nktr Cash Restricted Cash Cash Equivalents And Available For Sale Investments
CashRestrictedCashCashEquivalentsAndAvailableForSaleInvestments
1133409000 USD
CY2020Q4 nktr Cash Restricted Cash Cash Equivalents And Available For Sale Investments
CashRestrictedCashCashEquivalentsAndAvailableForSaleInvestments
1198558000 USD
CY2021Q1 nktr Debt Investment Maximum Maturity Period
DebtInvestmentMaximumMaturityPeriod
P2Y
CY2021Q1 nktr Debt Investment Maturity Term
DebtInvestmentMaturityTerm
P1Y
CY2021Q1 us-gaap Cash
Cash
7559000 USD
CY2020Q4 us-gaap Cash
Cash
6285000 USD
CY2021Q1 nktr Cash Restricted Cash Cash Equivalents And Available For Sale Investments
CashRestrictedCashCashEquivalentsAndAvailableForSaleInvestments
1133409000 USD
CY2020Q4 nktr Cash Restricted Cash Cash Equivalents And Available For Sale Investments
CashRestrictedCashCashEquivalentsAndAvailableForSaleInvestments
1198558000 USD
CY2020Q4 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Gain Before Tax
AvailableForSaleDebtSecuritiesAccumulatedGrossUnrealizedGainBeforeTax
1100000 USD
CY2020Q4 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Loss Before Tax
AvailableForSaleDebtSecuritiesAccumulatedGrossUnrealizedLossBeforeTax
200000 USD
CY2021Q1 us-gaap Inventory Raw Materials Net Of Reserves
InventoryRawMaterialsNetOfReserves
1920000 USD
CY2020Q4 us-gaap Inventory Raw Materials Net Of Reserves
InventoryRawMaterialsNetOfReserves
2422000 USD
CY2021Q1 us-gaap Inventory Work In Process Net Of Reserves
InventoryWorkInProcessNetOfReserves
13082000 USD
CY2020Q4 us-gaap Inventory Work In Process Net Of Reserves
InventoryWorkInProcessNetOfReserves
10703000 USD
CY2021Q1 us-gaap Inventory Finished Goods Net Of Reserves
InventoryFinishedGoodsNetOfReserves
1806000 USD
CY2020Q4 us-gaap Inventory Finished Goods Net Of Reserves
InventoryFinishedGoodsNetOfReserves
2167000 USD
CY2021Q1 us-gaap Inventory Net
InventoryNet
16808000 USD
CY2020Q4 us-gaap Inventory Net
InventoryNet
15292000 USD
CY2021Q1 nktr License Collaboration Other Revenue
LicenseCollaborationOtherRevenue
54000 USD
CY2020Q1 nktr License Collaboration Other Revenue
LicenseCollaborationOtherRevenue
27515000 USD
CY2021Q1 us-gaap Contract With Customer Performance Obligation Satisfied In Previous Period
ContractWithCustomerPerformanceObligationSatisfiedInPreviousPeriod
18800000 USD
CY2020Q1 us-gaap Contract With Customer Performance Obligation Satisfied In Previous Period
ContractWithCustomerPerformanceObligationSatisfiedInPreviousPeriod
44600000 USD
CY2021Q1 nktr Potential Development And Regulatory Milestones
PotentialDevelopmentAndRegulatoryMilestones
1700000000 USD
CY2021Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
23898000 USD
CY2020Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
25236000 USD
CY2021Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod
121000 shares
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod
49000 shares
CY2021Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
10.82
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
11.88
CY2021Q1 us-gaap Stock Issued During Period Shares Share Based Compensation
StockIssuedDuringPeriodSharesShareBasedCompensation
2199000 shares
CY2020Q1 us-gaap Stock Issued During Period Shares Share Based Compensation
StockIssuedDuringPeriodSharesShareBasedCompensation
1358000 shares
CY2021Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
19393000 shares
CY2020Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
18816000 shares

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