2020 Q4 Form 10-K Financial Statement

#000139681421000014 Filed on March 01, 2021

View on sec.gov

Income Statement

Concept 2020 Q4 2020 Q3 2020 Q2
Revenue $131.0M $117.5M $75.51M
YoY Change 6.98% 12.23% -26.41%
Cost Of Revenue $35.30M $29.99M $22.31M
YoY Change 10.64% 34.47% -11.49%
Gross Profit $95.68M $87.49M $53.20M
YoY Change 5.7% 6.2% -31.27%
Gross Profit Margin 73.05% 74.47% 70.46%
Selling, General & Admin $52.80M $52.56M $43.34M
YoY Change -2.58% 4.85% -11.77%
% of Gross Profit 55.19% 60.08% 81.47%
Research & Development $15.30M $14.65M $13.62M
YoY Change -22.34% -27.67% -23.6%
% of Gross Profit 15.99% 16.75% 25.6%
Depreciation & Amortization $5.060M $3.100M $3.000M
YoY Change -0.59% -13.89% -14.29%
% of Gross Profit 5.29% 3.54% 5.64%
Operating Expenses $70.10M $67.21M $56.96M
YoY Change -41.93% -34.28% -41.47%
Operating Profit $25.58M $17.62M -$7.147M
YoY Change -184.71% 630.21% -235.49%
Interest Expense -$6.400M $7.132M $5.456M
YoY Change 48.84% 20.07% -7.18%
% of Operating Profit -25.02% 40.48%
Other Income/Expense, Net $300.0K -$11.47M -$164.0K
YoY Change -133.33% 39.39% -96.05%
Pretax Income $12.70M $6.150M -$7.311M
YoY Change -462.86% -205.74% -748.71%
Income Tax -$1.800M -$124.0M -$42.00K
% Of Pretax Income -14.17% -2016.26%
Net Earnings $14.51M $130.1M -$7.269M
YoY Change -396.93% -2237.65% -366.26%
Net Earnings / Revenue 11.08% 110.75% -9.63%
Basic Earnings Per Share $0.33 $3.03 -$0.17
Diluted Earnings Per Share $0.32 $2.94 -$0.17
COMMON SHARES
Basic Shares Outstanding 43.44M shares 42.93M shares 42.22M shares
Diluted Shares Outstanding 44.28M shares 42.22M shares

Balance Sheet

Concept 2020 Q4 2020 Q3 2020 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $521.7M $532.1M $326.8M
YoY Change 78.66% 100.34% 11.84%
Cash & Equivalents $99.96M $125.2M $78.55M
Short-Term Investments $421.7M $406.9M $248.2M
Other Short-Term Assets $12.30M $11.70M $18.30M
YoY Change 13.89% 12.5% 115.29%
Inventory $64.65M $68.54M $66.69M
Prepaid Expenses
Receivables $53.05M $46.14M $44.01M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $651.6M $658.5M $455.8M
YoY Change 59.49% 73.82% 15.51%
LONG-TERM ASSETS
Property, Plant & Equipment $136.7M $125.5M $113.3M
YoY Change 30.58% 19.71% 7.4%
Goodwill $99.55M $99.50M $99.50M
YoY Change 0.0% -0.05% -1.03%
Intangibles $96.52M $98.49M $100.5M
YoY Change -7.54% -7.4% -7.26%
Long-Term Investments $109.5M $12.80M $10.00M
YoY Change 995.0% -84.41% -76.42%
Other Assets $106.2M $104.1M
YoY Change
Total Long-Term Assets $622.9M $561.7M $410.3M
YoY Change 47.43% 31.05% 4.34%
TOTAL ASSETS
Total Short-Term Assets $651.6M $658.5M $455.8M
Total Long-Term Assets $622.9M $561.7M $410.3M
Total Assets $1.275B $1.220B $866.1M
YoY Change 53.36% 51.12% 9.93%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $10.43M $13.01M $9.160M
YoY Change -18.5% -19.02% -31.37%
Accrued Expenses $70.97M $60.40M $47.68M
YoY Change 0.78% -0.98% -8.14%
Deferred Revenue
YoY Change
Short-Term Debt $149.6M $0.00 $0.00
YoY Change
Long-Term Debt Due $149.6M
YoY Change
Total Short-Term Liabilities $253.3M $86.27M $70.58M
YoY Change 135.28% -9.98% -14.96%
LONG-TERM LIABILITIES
Long-Term Debt $313.0M $456.5M $314.2M
YoY Change 2.29% 51.11% 5.37%
Other Long-Term Liabilities $3.832M $4.219M $2.984M
YoY Change 155.13% 81.85% -66.82%
Total Long-Term Liabilities $3.832M $4.219M $2.984M
YoY Change 155.13% 81.85% -66.82%
TOTAL LIABILITIES
Total Short-Term Liabilities $253.3M $86.27M $70.58M
Total Long-Term Liabilities $3.832M $4.219M $2.984M
Total Liabilities $654.8M $635.6M $478.0M
YoY Change 37.53% 37.77% 7.12%
SHAREHOLDERS EQUITY
Retained Earnings -$253.9M -$268.4M -$398.5M
YoY Change -36.44% -31.97% 2.6%
Common Stock $44.00K $43.00K $43.00K
YoY Change 4.76% 2.38% 2.38%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $619.7M $584.7M $388.1M
YoY Change
Total Liabilities & Shareholders Equity $1.275B $1.220B $866.1M
YoY Change 53.36% 51.12% 9.93%

Cashflow Statement

Concept 2020 Q4 2020 Q3 2020 Q2
OPERATING ACTIVITIES
Net Income $14.51M $130.1M -$7.269M
YoY Change -396.93% -2237.65% -366.26%
Depreciation, Depletion And Amortization $5.060M $3.100M $3.000M
YoY Change -0.59% -13.89% -14.29%
Cash From Operating Activities $46.66M $39.79M -$15.63M
YoY Change 80.15% 116.72% -168.67%
INVESTING ACTIVITIES
Capital Expenditures -$14.41M -$7.760M -$8.910M
YoY Change 220.22% 388.05% 334.63%
Acquisitions
YoY Change
Other Investing Activities -$67.91M -$195.1M $45.03M
YoY Change 158.21% -2802.08% -125.05%
Cash From Investing Activities -$82.32M -$202.9M $36.13M
YoY Change 167.27% -3703.02% -119.87%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 10.36M 209.8M 3.460M
YoY Change -612.87% 14671.83% -7.49%
NET CHANGE
Cash From Operating Activities 46.66M 39.79M -15.63M
Cash From Investing Activities -82.32M -202.9M 36.13M
Cash From Financing Activities 10.36M 209.8M 3.460M
Net Change In Cash -25.30M 46.70M 23.96M
YoY Change 265.61% 83.79% -115.43%
FREE CASH FLOW
Cash From Operating Activities $46.66M $39.79M -$15.63M
Capital Expenditures -$14.41M -$7.760M -$8.910M
Free Cash Flow $61.07M $47.55M -$6.720M
YoY Change 100.89% 138.35% -127.09%

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CY2019 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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CY2019 us-gaap Proceeds From Stock Options Exercised
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CY2019 pcrx Proceeds From Shares Issued Under Employee Stock Purchase Plan
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1784000 USD
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CY2019 us-gaap Net Cash Provided By Used In Financing Activities
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CY2018 us-gaap Net Cash Provided By Used In Financing Activities
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CY2020 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2019 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2018 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2018Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2020Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2019Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2020 pcrx Increase Decrease In Contingent Consideration
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CY2019 pcrx Increase Decrease In Contingent Consideration
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CY2020 us-gaap Use Of Estimates
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<div style="margin-bottom:8pt;margin-top:8pt"><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-bottom:8pt;margin-top:8pt;text-indent:22.5pt"><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 GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and contingent liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, among other things, revenue recognition, stock-based compensation, inventory costs, impairments of equity investments, long-lived assets, goodwill, liabilities and accruals, including contingent consideration, convertible senior notes, and the valuation of deferred tax assets. The Company’s critical accounting policies are those that are both most important to the Company’s consolidated financial condition and results of operations and require the most difficult, subjective or complex judgments on the part of management in their application, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Because of the uncertainty of factors surrounding the estimates or judgments used in the preparation of the consolidated financial statements, actual results could differ from these estimates.</span></div>
CY2019Q4 us-gaap Money Market Funds At Carrying Value
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CY2020Q4 us-gaap Money Market Funds At Carrying Value
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CY2020 us-gaap Number Of Reportable Segments
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CY2020 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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RECENT ACCOUNTING PRONOUNCEMENTS<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Recently Adopted Accounting Pronouncements </span></div><div style="margin-top:0.5pt;text-indent:22.5pt"><span><br/></span></div><div style="margin-bottom:10pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-13, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The Company now includes forward-looking information to better form its credit loss estimates. This update also required enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. This standard became effective for the Company beginning January 1, 2020 and there were no credit losses recognized upon adoption.</span></div><div style="margin-bottom:10pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In August 2018, the FASB issued ASU 2018-13, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Fair Value Measurement (Topic 820): Disclosure Framework</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">. The update added the following disclosures: (i) changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and (ii) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The standard became effective for the Company beginning January 1, 2020 and the Company has applied these new disclosure requirements in its consolidated financial statements for the year ended December 31, 2020.</span></div><div style="margin-bottom:10pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In August 2018, the FASB issued ASU 2018-15, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Intangibles—Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update provides guidance to determine which implementation costs to capitalize as they relate to the service contract and which costs to expense. Any expense related to the capitalized implementation costs should be recorded in the same financial statement line item in the consolidated statements of operations as the fees associated with the hosting element of the arrangement, and the payments for capitalized implementation costs should be classified in the same manner as payments made for fees associated with the hosting element in the consolidated statements of cash flows. This standard became effective for the Company beginning January 1, 2020. The amendments have been applied prospectively to implementation costs incurred after the date of adoption. The Company did not incur implementation costs in a hosting arrangement that were required to be capitalized during the year ended December 31, 2020.</span></div><div style="margin-bottom:10pt;text-align:justify;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In February 2016, the FASB issued ASU 2016-02, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Leases (Topic 842)</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, which was adopted by the Company on January 1, 2019 using the effective date method. There were practical expedients available to the Company that it elected to apply upon adoption. The Company did not re-assess (i) whether its contracts contained a lease under the new definition of a lease and (ii) the classification of those leases. There were no initial direct costs previously capitalized on the consolidated balance sheet. In addition, the Company applied hindsight in the determination of the lease terms, in the assessment of the likelihood that a lease renewal, termination or purchase option will be exercised, and in the assessment of any potential impairments that existed on the ROU assets recognized at adoption. The Company also elected not to recognize a ROU asset and lease liability for those leases with a remaining lease term of 12 months or less.</span></div><div style="margin-bottom:10pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">At adoption, the Company recorded $36.5 million of lease liabilities and $27.6 million of ROU assets as of January 1, 2019, the difference representing previously recorded lease-related assets and liabilities. There was a cumulative-effect adjustment to accumulated deficit of $0.2 million upon adoption. </span></div><div style="margin-bottom:10pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In May 2014, the FASB, issued ASU 2014-09, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Revenue from Contracts with Customers</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">. The Company adopted this standard on January 1, 2018 using the modified retrospective method and recorded a cumulative effect adjustment of $1.4 million to accumulated deficit upon adoption—the impact related to the acceleration of $1.0 million of deferred revenue and $0.4 million of royalties. The implementation of Accounting Standards Codification, or ASC, 606 did not have a material impact on the Company’s consolidated statements of operations because the timing of revenue recognition for EXPAREL product sales did not change. Refer to Note 4, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Revenue</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, for further information on the Company’s revenue.</span></div><div style="margin-bottom:10pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In June 2018, the FASB issued ASU 2018-07, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, which aligned accounting for share-based payments issued to nonemployees to that of employees under the existing guidance of Topic 718, with certain exceptions. The Company adopted ASU 2018-07 in June 2018 and recorded a cumulative effect adjustment of less than $0.1 million to accumulated deficit upon adoption.</span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Recent Accounting Pronouncements Not Adopted as of December 31, 2020</span></div><div><span><br/></span></div><div style="text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In December 2019, the FASB issued ASU 2019-12, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, which amends the approaches and methodologies in accounting for income taxes during interim periods and makes changes to certain income tax classifications. The new standard allows certain exceptions, including an exception to the use of the incremental approach for intra-period tax allocations, when there is a loss from continuing operations and income or a gain from other items, and to the general methodology for calculating income taxes in an interim period, when a year-to-date loss exceeds the anticipated loss for the year. The standard also requires franchise or similar taxes partially based on income to be reported as income tax and to reflect the effects of enacted changes in tax laws or rates in the annual effective tax rate computation from the date of enactment. Lastly, in any future acquisition, the Company would be required to evaluate when the step-up in the tax basis of goodwill is part of the business combination and when it should be considered a separate transaction. The standard became effective for the Company January 1, 2021 and the Company does not anticipate any material impact to its consolidated financial statements.</span></div><div><span><br/></span></div><div style="text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In August 2020, the FASB issued ASU 2020-06, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40), </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">which limits the number of convertible instruments that require separate accounting to (i) those with embedded conversion features that are not clearly and closely related to the debt, that meet the definition of a derivative, and that do not qualify for the scope exception from derivative accounting and (ii) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid in capital. In addition, the new guidance requires diluted earnings per share calculations to be prepared using the if-converted method, instead of the treasury stock method. The guidance must be applied in fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, with early adoption permitted no earlier than for fiscal years beginning after December 15, 2020. The Company has the option to adopt the new guidance using a modified retrospective method of transition, which would then be applied to transactions outstanding at the time of adoption, or the full retrospective method. The Company is evaluating the impact from the adoption of ASU 2020-06 on its consolidated financial statements.</span></div>
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