2019 Q3 Form 10-Q Financial Statement

#000143853319000024 Filed on August 06, 2019

View on sec.gov

Income Statement

Concept 2019 Q3 2019 Q2 2018 Q2
Revenue $44.37M $44.71M $41.34M
YoY Change 9.01% 8.15% 6.54%
Cost Of Revenue $1.513M $979.0K $1.178M
YoY Change 33.54% -16.89% 47.8%
Gross Profit $42.86M $43.73M $40.16M
YoY Change 8.31% 8.89% 5.67%
Gross Profit Margin 96.59% 97.81% 97.15%
Selling, General & Admin $29.78M $38.97M $25.10M
YoY Change 14.07% 55.26% -12.95%
% of Gross Profit 69.48% 89.12% 62.5%
Research & Development $33.22M $37.93M $34.46M
YoY Change 2.38% 10.08% 76.88%
% of Gross Profit 77.51% 86.75% 85.81%
Depreciation & Amortization $5.380M $4.840M $4.640M
YoY Change 12.08% 4.31% 4.5%
% of Gross Profit 12.55% 11.07% 11.55%
Operating Expenses $78.81M $81.24M $62.90M
YoY Change 3.3% 29.16% 20.04%
Operating Profit -$34.44M -$36.53M -$21.56M
YoY Change -3.22% 69.43% 58.55%
Interest Expense -$4.547M -$4.817M -$1.057M
YoY Change 79.51% 355.72% 60.64%
% of Operating Profit
Other Income/Expense, Net -$2.576M -$2.103M -$602.0K
YoY Change -86.09% 249.34% -61.31%
Pretax Income -$37.01M -$38.63M -$22.16M
YoY Change -31.59% 74.32% 46.25%
Income Tax -$523.0K $69.00K $167.0K
% Of Pretax Income
Net Earnings -$36.49M -$38.70M -$22.33M
YoY Change -33.07% 73.32% 68.79%
Net Earnings / Revenue -82.23% -86.57% -54.02%
Basic Earnings Per Share -$0.56
Diluted Earnings Per Share -$849.8K -$922.3K -$0.56
COMMON SHARES
Basic Shares Outstanding 42.95M shares 41.44M shares 39.94M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q3 2019 Q2 2018 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $296.1M $298.4M $255.7M
YoY Change -15.61% 16.7% -13.61%
Cash & Equivalents $65.19M $75.66M $89.31M
Short-Term Investments $230.9M $222.7M $166.4M
Other Short-Term Assets $10.60M $10.60M $5.500M
YoY Change 89.29% 92.73% -8.33%
Inventory $5.264M $5.050M $5.388M
Prepaid Expenses
Receivables $16.80M $15.50M $12.32M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $439.7M $457.0M $278.9M
YoY Change -12.58% 63.85% -12.75%
LONG-TERM ASSETS
Property, Plant & Equipment $2.910M $3.015M $3.455M
YoY Change -12.43% -12.74% 36.02%
Goodwill $936.0K $936.0K $936.0K
YoY Change 0.0% 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments $0.00 $15.00M $15.00M
YoY Change -100.0% 0.0%
Other Assets $12.45M $12.70M $5.351M
YoY Change 68.44% 137.38% 47.49%
Total Long-Term Assets $174.1M $190.6M $212.2M
YoY Change -18.34% -10.21% 13.2%
TOTAL ASSETS
Total Short-Term Assets $439.7M $457.0M $278.9M
Total Long-Term Assets $174.1M $190.6M $212.2M
Total Assets $613.8M $647.6M $491.1M
YoY Change -14.29% 31.85% -3.15%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $13.83M $12.52M $7.847M
YoY Change 48.51% 59.54% -13.54%
Accrued Expenses $47.87M $50.56M $35.27M
YoY Change 10.44% 43.34% 27.8%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $0.00 $45.40M
YoY Change -100.0% -100.0%
Total Short-Term Liabilities $88.02M $90.59M $103.5M
YoY Change -11.87% -12.47% 29.98%
LONG-TERM LIABILITIES
Long-Term Debt $202.4M $199.9M $0.00
YoY Change 4.98% -100.0%
Other Long-Term Liabilities $21.49M $22.10M $4.880M
YoY Change 339.86% 352.91% 26.72%
Total Long-Term Liabilities $21.49M $22.10M $4.880M
YoY Change 339.86% 352.91% 26.72%
TOTAL LIABILITIES
Total Short-Term Liabilities $88.02M $90.59M $103.5M
Total Long-Term Liabilities $21.49M $22.10M $4.880M
Total Liabilities $367.9M $370.5M $203.2M
YoY Change -7.37% 82.37% -3.86%
SHAREHOLDERS EQUITY
Retained Earnings -$386.2M -$349.7M -$208.0M
YoY Change 47.08% 68.09% 46.26%
Common Stock $631.0M $626.0M $497.2M
YoY Change 8.28% 25.91% 13.35%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $246.0M $277.1M $288.0M
YoY Change
Total Liabilities & Shareholders Equity $613.8M $647.6M $491.1M
YoY Change -14.29% 31.85% -3.15%

Cashflow Statement

Concept 2019 Q3 2019 Q2 2018 Q2
OPERATING ACTIVITIES
Net Income -$36.49M -$38.70M -$22.33M
YoY Change -33.07% 73.32% 68.79%
Depreciation, Depletion And Amortization $5.380M $4.840M $4.640M
YoY Change 12.08% 4.31% 4.5%
Cash From Operating Activities -$14.12M -$19.11M -$2.760M
YoY Change 262.05% 592.39% -150.46%
INVESTING ACTIVITIES
Capital Expenditures -$4.220M -$3.390M -$3.730M
YoY Change 9.61% -9.12% 23.92%
Acquisitions
YoY Change
Other Investing Activities $8.680M $28.62M $31.65M
YoY Change -105.5% -9.57% -32.36%
Cash From Investing Activities $4.460M $25.23M $27.91M
YoY Change -102.76% -9.6% -36.22%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -740.0K -320.0K 3.080M
YoY Change -100.32% -110.39% -262.11%
NET CHANGE
Cash From Operating Activities -14.12M -19.11M -2.760M
Cash From Investing Activities 4.460M 25.23M 27.91M
Cash From Financing Activities -740.0K -320.0K 3.080M
Net Change In Cash -10.40M 5.800M 28.23M
YoY Change -115.88% -79.45% -40.35%
FREE CASH FLOW
Cash From Operating Activities -$14.12M -$19.11M -$2.760M
Capital Expenditures -$4.220M -$3.390M -$3.730M
Free Cash Flow -$9.900M -$15.72M $970.0K
YoY Change 19700.0% -1720.62% -88.56%

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DESCRIPTION OF BUSINESS<div style="line-height:120%;padding-bottom:8px;padding-top:16px;font-size:12pt;"><span style="font-family:Arial;font-size:12pt;color:#006ebf;font-style:normal;font-weight:bold;text-decoration:none;">Organization and Description of Business</span></div><div style="line-height:120%;padding-bottom:8px;padding-top:4px;text-align:justify;font-size:9.5pt;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">Retrophin, Inc. (“we”, “our”, “us”, “Retrophin” and the “Company”) refers to Retrophin, Inc., a Delaware corporation, as well as our direct and indirect subsidiaries. Retrophin is a biopharmaceutical company headquartered in San Diego, California, focused on identifying, developing and delivering life-changing therapies to people living with rare diseases. We regularly evaluate and, where appropriate, act on opportunities to expand our product pipeline through licenses and acquisitions of products in areas that will serve patients with rare diseases and that we believe offer attractive growth characteristics.</span></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;font-size:10.5pt;"><span style="font-family:Arial;font-size:10.5pt;color:#666666;font-style:italic;font-weight:bold;text-decoration:none;">The Company is developing the following pipeline products:</span></div><div style="line-height:120%;padding-bottom:8px;padding-top:4px;font-size:9.5pt;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">The Company is developing fosmetpantotenate (RE-024), a novel small molecule, as a potential treatment for </span><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">pantothenate kinase-associated neurodegeneration (“PKAN”)</span><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">. PKAN is a genetic neurodegenerative disorder that is typically diagnosed in the first decade of life.</span></div><div style="line-height:120%;padding-bottom:8px;padding-top:4px;font-size:9.5pt;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">Sparsentan</span><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;font-style:italic;">,</span><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;"> also known as RE-021, is an investigational product candidate with a dual mechanism of action, a potent angiotensin receptor blocker (“ARB”) and selective endothelin receptor antagonist (“ERA”), with in vitro selectivity toward endothelin receptor type A. Sparsentan is currently being evaluated in two pivotal Phase 3 clinical studies in the following indications:</span></div><table cellpadding="0" cellspacing="0" style="padding-top:12px;padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"/><td/></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:9.5pt;padding-left:24px;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#4c4c4c;font-weight:bold;">•</span></div></td><td style="vertical-align:top;"><div style="line-height:120%;font-size:9.5pt;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">Focal segmental glomerulosclerosis ("FSGS") is a rare kidney disease characterized by proteinuria where the glomeruli become progressively scarred. FSGS is a leading cause of end-stage renal disease.</span></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"/><td/></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:9.5pt;padding-left:24px;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#4c4c4c;font-weight:bold;">•</span></div></td><td style="vertical-align:top;"><div style="line-height:120%;font-size:9.5pt;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">Immunoglobulin A nephropathy ("IgAN") is an immune-complex-mediated glomerulonephritis characterized by hematuria, proteinuria, and variable rates of progressive renal failure. IgAN is the most common primary glomerular disease.</span></div></td></tr></table><div style="line-height:120%;padding-bottom:8px;padding-top:4px;font-size:9.5pt;"><span style="font-family:Arial Narrow;font-size:9.5pt;"><br/></span></div><div style="line-height:120%;padding-bottom:8px;padding-top:4px;font-size:9.5pt;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">In September 2017, the Company entered into a three-way Cooperative Research and Development Agreement ("CRADA") with the National Institutes of Health’s National Center for Advancing Translational Sciences ("NCATS") and patient advocacy foundation NGLY1.org to collaborate on research efforts aimed at the identification of potential small molecule therapeutics for NGLY1 deficiency.</span></div><div style="line-height:120%;padding-bottom:8px;padding-top:4px;font-size:9.5pt;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">In June 2019, the Company announced that it has entered into a three-way CRADA with NCATS and patient advocacy foundation Alagille Syndrome Alliance ("ALGSA") to collaborate on research efforts aimed at the identification and development of potentially novel therapeutics for Alagille syndrome ("ALGS"). </span></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;font-size:10.5pt;"><span style="font-family:Arial;font-size:10.5pt;color:#666666;font-style:italic;font-weight:bold;text-decoration:none;">The Company sells the following </span><span style="font-family:Arial;font-size:10.5pt;color:#666666;font-style:italic;font-weight:bold;text-decoration:none;"><span>three</span></span><span style="font-family:Arial;font-size:10.5pt;color:#666666;font-style:italic;font-weight:bold;text-decoration:none;"> products:</span></div><table cellpadding="0" cellspacing="0" style="padding-top:4px;padding-bottom:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"/><td/></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:9.5pt;padding-left:24px;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">•</span></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:9.5pt;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">Chenodal (chenodiol tablets) is approved in the United States for the treatment of patients suffering from gallstones in whom surgery poses an unacceptable health risk due to disease or advanced age. Chenodal has been the standard of care for cerebrotendinous xanthomatosis ("CTX") patients for more than three decades and the Company is currently pursuing adding this indication to the label.</span></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:4px;padding-bottom:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"/><td/></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:9.5pt;padding-left:24px;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">•</span></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:9.5pt;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">Cholbam (cholic acid capsules) is approved in the United States for the treatment of bile acid synthesis disorders due to single enzyme defects and is further indicated for adjunctive treatment of patients with peroxisomal disorders.</span></div></td></tr></table><div style="line-height:120%;font-size:9.5pt;padding-left:24px;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">•</span></div><div style="line-height:120%;text-align:justify;font-size:9.5pt;"><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">Thiola (tiopronin tablets) is approved in the United States for the prevention of cystine (kidney) stone formation in patients with severe homozygous cystinuria. On June 28, 2019, the Company </span><span style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">announced that the U.S. Food and Drug Administration ("FDA") approved 100 mg and 300 mg tablets of THIOLA® EC (tiopronin), a new enteric-coated formulation of THIOLA® (tiopronin), to be used for the treatment of cystinuria.</span></div>
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DebtSecuritiesAvailableForSaleUnrealizedGainCurrent
358000 USD
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DebtSecuritiesAvailableForSaleUnrealizedGainNoncurrent
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2831000 USD
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19922000 USD
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P5Y7M
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2613000 USD
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2486000 USD
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2560000 USD
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2637000 USD
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CY2019Q2 us-gaap Lessee Operating Lease Liability Payments Due
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200000 USD
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500000 USD
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400000 USD
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4220000 USD
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4689000 USD
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830000 USD
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930000 USD
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5050000 USD
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5619000 USD
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2000000.0 USD
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1800000 USD
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15500000 USD
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12700000 USD
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1000000.0 USD
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25500000 USD
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18000000.0 USD
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500000 USD
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25000000.0 USD

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