2023 Q1 Form 10-K Financial Statement

#000135657623000016 Filed on March 09, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $153.8M $167.3M $667.2M
YoY Change 0.82% 5.2% 15.09%
Cost Of Revenue $23.46M $22.95M $87.22M
YoY Change 30.83% 35.07% 16.2%
Gross Profit $130.3M $144.4M $580.0M
YoY Change -3.17% 1.63% 14.92%
Gross Profit Margin 84.74% 86.28% 86.93%
Selling, General & Admin $85.60M $73.97M $377.2M
YoY Change -5.37% -6.88% 23.78%
% of Gross Profit 65.69% 51.24% 65.04%
Research & Development $21.21M $17.77M $74.55M
YoY Change 1.79% -15.68% -17.59%
% of Gross Profit 16.28% 12.31% 12.85%
Depreciation & Amortization $20.60M $20.85M $85.54M
YoY Change -3.56% 64.07% 162.44%
% of Gross Profit 15.81% 14.44% 14.75%
Operating Expenses $106.8M $110.0M $451.8M
YoY Change -4.03% -3.18% 14.31%
Operating Profit $5.176M $34.33M $46.12M
YoY Change 163.14% 20.9% -46.39%
Interest Expense $1.505M $1.234M $17.04M
YoY Change -22.5% -138.37% -13.51%
% of Operating Profit 29.08% 3.59% 36.93%
Other Income/Expense, Net $3.841M -$428.0K $14.62M
YoY Change -69.89% -48.5% -213.73%
Pretax Income $9.017M $35.14M $60.74M
YoY Change -38.76% 1613.31% -16.99%
Income Tax -$7.900M $9.659M $32.00K
% Of Pretax Income -87.61% 27.49% 0.05%
Net Earnings $16.95M $25.48M $60.71M
YoY Change -33.84% 943.45% 13.64%
Net Earnings / Revenue 11.02% 15.23% 9.1%
Basic Earnings Per Share $0.31 $1.13
Diluted Earnings Per Share $0.29 $0.41 $1.04
COMMON SHARES
Basic Shares Outstanding 54.38M shares 54.06M shares 53.67M shares
Diluted Shares Outstanding 62.45M shares 61.68M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $228.6M $461.3M $461.3M
YoY Change -26.79% 35.81% 35.81%
Cash & Equivalents $58.44M $93.12M $93.12M
Short-Term Investments $170.1M $368.2M $368.2M
Other Short-Term Assets $420.1M $15.78M $15.78M
YoY Change 1777.6% -41.6% -41.6%
Inventory $91.15M $91.54M $91.54M
Prepaid Expenses
Receivables $143.6M $165.5M $165.5M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $883.3M $734.2M $734.2M
YoY Change 55.38% 22.04% 22.04%
LONG-TERM ASSETS
Property, Plant & Equipment $14.61M $15.17M $44.08M
YoY Change -15.13% -10.51% -15.75%
Goodwill $117.0M $117.0M
YoY Change 1.39% -0.42%
Intangibles $682.5M $702.5M
YoY Change -10.67% -10.48%
Long-Term Investments $54.16M $93.90M $93.90M
YoY Change -56.79% -21.21% -21.21%
Other Assets $40.18M $39.81M $10.90M
YoY Change -17.97% -19.15% -21.38%
Total Long-Term Assets $908.5M $968.4M $968.4M
YoY Change -15.18% -10.96% -10.96%
TOTAL ASSETS
Total Short-Term Assets $883.3M $734.2M $734.2M
Total Long-Term Assets $908.5M $968.4M $968.4M
Total Assets $1.792B $1.703B $1.703B
YoY Change 9.29% 0.79% 0.79%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $11.54M $10.54M $10.54M
YoY Change -6.32% 12.99% 12.99%
Accrued Expenses $95.35M $96.34M $237.5M
YoY Change 6.61% -18.13% -1.5%
Deferred Revenue
YoY Change
Short-Term Debt $480.9M $402.0M $402.0M
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $731.5M $688.0M $688.0M
YoY Change 157.08% 118.14% 118.14%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0% -100.0% -100.0%
Other Long-Term Liabilities $8.614M $8.692M $78.54M
YoY Change -39.1% -46.94% -15.84%
Total Long-Term Liabilities $8.614M $8.692M $78.54M
YoY Change -39.1% -97.8% -83.38%
TOTAL LIABILITIES
Total Short-Term Liabilities $731.5M $688.0M $688.0M
Total Long-Term Liabilities $8.614M $8.692M $78.54M
Total Liabilities $879.7M $816.3M $816.3M
YoY Change 8.46% -6.53% -6.53%
SHAREHOLDERS EQUITY
Retained Earnings $498.2M $481.2M
YoY Change 11.66% 26.67%
Common Stock $54.00K $54.00K
YoY Change 1.89% 1.89%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $912.2M $886.2M $886.2M
YoY Change
Total Liabilities & Shareholders Equity $1.792B $1.703B $1.703B
YoY Change 9.29% 0.79% 0.79%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income $16.95M $25.48M $60.71M
YoY Change -33.84% 943.45% 13.64%
Depreciation, Depletion And Amortization $20.60M $20.85M $85.54M
YoY Change -3.56% 64.07% 162.44%
Cash From Operating Activities $49.13M $27.56M $116.8M
YoY Change 1041.93% -43.47% -8.1%
INVESTING ACTIVITIES
Capital Expenditures $278.0K -$10.00K $412.0K
YoY Change -132.67% -75.0% -120.15%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities $240.1M -$48.78M -$216.3M
YoY Change -447.23% -164.03% 170.76%
Cash From Investing Activities $239.8M -$48.77M -$216.7M
YoY Change -442.61% -164.05% 164.5%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $12.42M
YoY Change 75.1%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $80.17M 2.829M -$10.48M
YoY Change -463.86% -102.07% -91.97%
NET CHANGE
Cash From Operating Activities $49.13M 27.56M $116.8M
Cash From Investing Activities $239.8M -48.77M -$216.7M
Cash From Financing Activities $80.17M 2.829M -$10.48M
Net Change In Cash $369.1M -18.37M -$110.3M
YoY Change -520.75% 55.08% 29.47%
FREE CASH FLOW
Cash From Operating Activities $49.13M $27.56M $116.8M
Capital Expenditures $278.0K -$10.00K $412.0K
Free Cash Flow $48.85M $27.57M $116.4M
YoY Change 847.95% -43.5% -9.88%

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Organization and Business<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%">Supernus Pharmaceuticals, Inc. (the Company) was incorporated in Delaware and commenced operations in 2005. The Company is a biopharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases. The Company's diverse neuroscience portfolio includes approved treatments for epilepsy, migraine, attention-deficit hyperactivity disorder (ADHD), hypomobility in Parkinson's Disease (PD), cervical dystonia, chronic sialorrhea, dyskinesia in PD patients receiving levodopa-based therapy, and drug induced extrapyramidal reactions in adult patients. The Company is developing a broad range of novel CNS product candidates including new potential treatments for hypomobility in PD, epilepsy, depression, and other CNS disorders.</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%">The Company has eight commercial products: Trokendi XR</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, Oxtellar XR</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, Qelbree</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, APOKYN</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, XADAGO</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, MYOBLOC</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, GOCOVRI</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, and Osmolex ER</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">. In addition, SPN-830 (apomorphine infusion device) is a late-stage drug/device combination product candidate for the continuous treatment of motor fluctuations ("off" episodes) in PD patients that are not adequately controlled with oral levodopa and one or more adjunct PD medications.</span></div><div style="margin-top:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Adamas Acquisition and Reorganization</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%">On October 10, 2021, the Company entered into an Agreement and Plan of Merger by and among the Company, Adamas Pharmaceuticals, Inc. (Adamas) and Supernus Reef, Inc., a Delaware corporation and a wholly-owned subsidiary of the Company (Purchaser) (Adamas Agreement). On November 24, 2021 (the Closing Date), the Company completed its purchase of all of the outstanding equity of Adamas, pursuant to the Adamas Agreement dated October 10, 2021, and the Purchaser was merged with and into Adamas (the Merger), with Adamas continuing as the surviving corporation in the Merger as a wholly-owned subsidiary of the Company (Adamas Acquisition). On the Closing Date, Adamas owned two marketed products: GOCOVRI (amantadine) extended-release capsules, the first and only FDA approved medicine indicated for the treatment of both "off" episodes and dyskinesia in patients with PD receiving levodopa-based therapy and as an adjunctive treatment to levodopa/carbidopa in patients with PD experiencing "off" episodes; and Osmolex ER (amantadine) extended-release tablets, approved for the treatment of PD and drug-induced extrapyramidal reactions in adult patients. Adamas also owns the right to receive royalties from Allergan plc for sales of Namzaric (memantine hydrochloride extended-release and donepezil hydrochloride) in the U.S.</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%">In the first quarter of 2022 and subsequent to the Adamas Acquisition, the Company completed a reorganization of the Adamas legal entities in an effort to obtain operational, legal and other benefits that also resulted in certain state tax efficiencies. The reorganization had no effect on the consolidated financial statements other than certain state tax efficiencies. (See Note 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</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">.)</span></div>
CY2022 supn Number Of Commercial Products
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<div style="margin-top:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Use of Estimates</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%">The Company bases its estimates on: historical experience; forecasts; information received from its service providers; information from other sources, including public and proprietary sources; and other assumptions that the Company believes are reasonable under the circumstances. Actual results could differ materially from the Company’s estimates. The Company periodically evaluates the methodologies employed in making its estimates.</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%">The extent to which the COVID-19 pandemic may directly or indirectly impact our business, financial condition and results of operations is highly uncertain and subject to change. As a result, certain of our estimates and assumptions, including the provision for sales deductions, the fair values of financial instruments and the recoverability of intangible assets, require increased judgment and carry a higher degree of variability and volatility that could result in material changes to our estimates in future periods.</span></div>
CY2021Q4 us-gaap Contract With Customer Asset Net
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<div style="margin-top:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Concentration of Credit Risk</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%">Financial instruments that potentially subject the Company to credit risk concentrations consist of cash, cash equivalents, marketable securities, and accounts receivable. The counterparties are various corporations, governmental institutions, and financial institutions of high credit standing.</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%">Substantially all of the Company's cash, cash equivalents, and marketable securities are maintained in U.S. government agency debt and debt of well-known, investment grade corporations. Deposits held with banks may exceed the amount of governmental insurance provided on such deposits. Generally, these deposits may be redeemed upon demand, and therefore, these bear minimal default risk.</span></div>
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CY2022 supn Sales Return Period Prior To Expiration
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CY2021 supn Revenue From Royalty Agreement
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CY2021Q4 us-gaap Debt Securities Available For Sale Excluding Accrued Interest
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DebtSecuritiesAvailableForSaleFairValueMaturityAllocatedAndSingleMaturityDateYearOneToYearTwo
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CY2022Q4 us-gaap Debt Securities Available For Sale Excluding Accrued Interest
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CY2022 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Settlements
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CY2022Q4 us-gaap Business Combination Contingent Consideration Liability
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CY2021Q4 us-gaap Goodwill
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CY2022Q4 us-gaap Goodwill
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SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueVested
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CY2022Q4 us-gaap Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1
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CY2021 us-gaap Income Tax Reconciliation Other Adjustments
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CY2022Q4 us-gaap Deferred Tax Asset Interest Carryforward
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CY2021Q4 us-gaap Deferred Tax Asset Interest Carryforward
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CY2021Q4 us-gaap Deferred Tax Assets Other
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CY2022Q4 us-gaap Deferred Tax Assets Gross
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