2023 Q1 Form 10-K Financial Statement

#000179204423000008 Filed on February 27, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $3.729B $3.876B $16.26B
YoY Change -11.04% -10.72% -9.08%
Cost Of Revenue $2.187B $2.286B $9.766B
YoY Change -9.65% -10.67% -20.67%
Gross Profit $1.542B $1.590B $6.497B
YoY Change -12.93% -10.81% 16.53%
Gross Profit Margin 41.36% 41.02% 39.95%
Selling, General & Admin $958.9M $1.056B $4.179B
YoY Change 4.76% 9.3% -7.73%
% of Gross Profit 62.18% 66.44% 64.32%
Research & Development $182.9M $180.9M $662.2M
YoY Change 28.53% -7.09% -11.84%
% of Gross Profit 11.86% 11.38% 10.19%
Depreciation & Amortization $730.0M $869.8M $3.028B
YoY Change -0.82% 16.0% -32.82%
% of Gross Profit 47.33% 54.7% 46.6%
Operating Expenses $1.142B $1.237B $4.882B
YoY Change 7.39% 6.55% -12.97%
Operating Profit $399.8M $352.8M $1.615B
YoY Change -43.48% -43.24% -4849.71%
Interest Expense $147.0M -$147.1M $592.4M
YoY Change 0.55% -5.22% -6.88%
% of Operating Profit 36.77% -41.7% 36.68%
Other Income/Expense, Net $69.90M $1.813B $1.791B
YoY Change -307.42% 5139.6% 30774.14%
Pretax Income $322.7M $1.469B $2.813B
YoY Change -38.82% -820.4% -523.42%
Income Tax $98.00M $457.7M $734.6M
% Of Pretax Income 30.37% 31.16% 26.11%
Net Earnings $224.7M $1.011B $2.079B
YoY Change -43.71% -483.32% -263.79%
Net Earnings / Revenue 6.03% 26.09% 12.78%
Basic Earnings Per Share $0.19 $1.71
Diluted Earnings Per Share $0.19 $0.83 $1.71
COMMON SHARES
Basic Shares Outstanding 1.197B shares 1.213B shares 1.212B shares
Diluted Shares Outstanding 1.206B shares 1.217B shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $587.6M $1.295B $1.338B
YoY Change -29.8% 75.17% 69.26%
Cash & Equivalents $506.6M $1.260B $1.260B
Short-Term Investments $81.00M $35.30M $77.90M
Other Short-Term Assets $1.350B $1.404B $1.964B
YoY Change 11.78% -4.3% 5.1%
Inventory $3.664B $3.520B $3.520B
Prepaid Expenses $239.7M $194.6M
Receivables $3.498B $3.815B $3.244B
Other Receivables $475.6M $570.7M $570.7M
Total Short-Term Assets $9.630B $10.64B $10.64B
YoY Change -18.0% -2.45% -2.45%
LONG-TERM ASSETS
Property, Plant & Equipment $3.008B $3.025B $3.284B
YoY Change -4.52% -5.15% -5.62%
Goodwill $10.57B $10.43B
YoY Change -3.69% -13.93%
Intangibles $22.70B $22.61B
YoY Change -10.1% -13.5%
Long-Term Investments $94.00M $94.00M
YoY Change
Other Assets $2.418B $2.404B $2.976B
YoY Change 129.0% 105.3% 34.51%
Total Long-Term Assets $39.66B $39.39B $39.39B
YoY Change -4.94% -10.36% -10.36%
TOTAL ASSETS
Total Short-Term Assets $9.630B $10.64B $10.64B
Total Long-Term Assets $39.66B $39.39B $39.39B
Total Assets $49.29B $50.02B $50.02B
YoY Change -7.81% -8.79% -8.79%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.415B $1.158B $1.158B
YoY Change 52.46% 9.65% 9.65%
Accrued Expenses $2.130B $2.189B $2.189B
YoY Change -25.22% -32.16% -32.16%
Deferred Revenue
YoY Change
Short-Term Debt $204.6M $0.00 $0.00
YoY Change -68.78% -100.0% -100.0%
Long-Term Debt Due $508.7M $1.259B $1.251B
YoY Change -80.48% -32.94% -32.78%
Total Short-Term Liabilities $6.108B $6.746B $6.746B
YoY Change -36.66% -31.75% -31.75%
LONG-TERM LIABILITIES
Long-Term Debt $18.07B $18.02B $18.02B
YoY Change -3.69% -8.63% -8.63%
Other Long-Term Liabilities $1.720B $1.757B $1.757B
YoY Change -8.73% -9.16% -9.16%
Total Long-Term Liabilities $19.79B $19.77B $19.77B
YoY Change -4.15% -8.68% -8.68%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.108B $6.746B $6.746B
Total Long-Term Liabilities $19.79B $19.77B $19.77B
Total Liabilities $28.36B $28.95B $28.95B
YoY Change -14.1% -15.72% -15.72%
SHAREHOLDERS EQUITY
Retained Earnings $5.253B $5.176B
YoY Change 33.26% 40.31%
Common Stock $12.20M $12.10M
YoY Change 0.83% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $251.8M $0.00
YoY Change
Treasury Stock Shares
Shareholders Equity $20.93B $21.07B $21.07B
YoY Change
Total Liabilities & Shareholders Equity $49.29B $50.02B $50.02B
YoY Change -7.81% -8.79% -8.79%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income $224.7M $1.011B $2.079B
YoY Change -43.71% -483.32% -263.79%
Depreciation, Depletion And Amortization $730.0M $869.8M $3.028B
YoY Change -0.82% 16.0% -32.82%
Cash From Operating Activities $971.2M $142.6M $2.953B
YoY Change -14.69% -72.74% -2.13%
INVESTING ACTIVITIES
Capital Expenditures $47.80M $165.9M $406.0M
YoY Change -25.89% -174.93% -11.2%
Acquisitions $667.7M $0.00
YoY Change -100.0%
Other Investing Activities $34.70M $1.950B $37.00M
YoY Change 368.92% 84700.0% -29.12%
Cash From Investing Activities -$749.5M $1.785B $1.521B
YoY Change 1020.33% -914.47% -1390.75%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $3.300M
YoY Change
Debt Paid & Issued, Net $750.1M $3.663B
YoY Change 750000.0% -12.82%
Cash From Financing Activities -$974.7M -1.331B -$3.878B
YoY Change -3.4% 281.04% 28.75%
NET CHANGE
Cash From Operating Activities $971.2M 142.6M $2.953B
Cash From Investing Activities -$749.5M 1.785B $1.521B
Cash From Financing Activities -$974.7M -1.331B -$3.878B
Net Change In Cash -$751.8M 596.5M $556.3M
YoY Change -1568.36% -1419.69% -486.86%
FREE CASH FLOW
Cash From Operating Activities $971.2M $142.6M $2.953B
Capital Expenditures $47.80M $165.9M $406.0M
Free Cash Flow $923.4M -$23.30M $2.547B
YoY Change -14.02% -103.13% -0.51%

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CY2022 us-gaap Nature Of Operations
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Nature of Operations<div style="margin-bottom:12pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Viatris is a global healthcare company formed in November 2020 whose mission is to empower people worldwide to live healthier at every stage of life, regardless of geography or circumstance. Improving the ability of patients to gain access to sustainable and high-quality healthcare is our relentless pursuit. One that rests on visionary thinking, determination and best-in-class capabilities that were strategically built to remove barriers across the health spectrum and advance access globally. </span></div><div style="margin-bottom:12pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Viatris’ portfolio comprises more than 1,400 approved molecules across a wide range of key therapeutic areas, including globally recognized iconic and key brands, generics, and complex generics, including biosimilars prior to the Biocon Biologics Transaction. The Company operates approximately 40 manufacturing sites worldwide that produce oral solid doses, injectables, complex dosage forms and APIs. We conduct our business through four segments: Developed Markets, Greater China, JANZ, and Emerging Markets. Viatris is headquartered in the U.S., with global centers in Pittsburgh, Pennsylvania, Shanghai, China and Hyderabad, India.</span></div><div style="margin-bottom:12pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain reclassifications were made to conform the prior period consolidated financial statements to the current period presentation. Upfront and milestone-related charges in connection with collaboration and licensing arrangements made prior to regulatory approval of a development product that were previously presented in </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Research and Development</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> are now presented in </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Acquired IPR&amp;D</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> in the consolidated statements of operations.</span></div><div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In accordance with </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">ASC 805, Business Combinations</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, Mylan is considered the accounting acquirer of the Upjohn Business and all historical financial information of the Company prior to November 16, 2020 represents Mylan’s historical results and the Company’s thereafter.</span></div>
CY2022Q4 vtrs Number Of Molecules
NumberOfMolecules
1400 molecule
CY2022Q4 vtrs Number Of Manufacturing Sites
NumberOfManufacturingSites
40 site
CY2022 us-gaap Use Of Estimates
UseOfEstimates
<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 in the Preparation of Financial Statements.</span><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 and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because of the uncertainty inherent in such estimates, actual results could differ from those estimates.</span>
CY2022 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="margin-bottom:12pt;text-indent:36pt"><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 Credit Risk.</span><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 consist principally of interest-bearing investments, derivatives and accounts receivable.</span></div><div style="margin-bottom:12pt;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Viatris invests its excess cash in high-quality, liquid money market instruments, principally overnight deposits and highly rated money market funds. The Company maintains deposit balances at certain financial institutions in excess of federally insured amounts. Periodically, the Company reviews the creditworthiness of its counterparties to derivative transactions, and it does not expect to incur a loss from failure of any counterparties to perform under agreements it has with such counterparties.</span></div>
CY2022 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1212100000 shares
CY2021 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2020 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2022 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.71
CY2021 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
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CY2020 us-gaap Earnings Per Share Basic
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CY2021 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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WeightedAverageNumberOfSharesOutstandingBasic
601200000 shares
CY2022 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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5300000 shares
CY2021 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 shares
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0 shares
CY2022 vtrs Revenuefrom Contractwith Customer Gross
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CY2022 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2021 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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WeightedAverageNumberOfDilutedSharesOutstanding
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CY2022 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.71
CY2021 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
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CY2020 us-gaap Earnings Per Share Diluted
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-1.11
CY2022 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2020 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2021Q3 us-gaap Common Stock Dividends Per Share Cash Paid
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CY2021Q4 us-gaap Common Stock Dividends Per Share Cash Paid
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0.12
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CY2022 vtrs Chargebacks
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CY2022 vtrs Medicaidandothergovernmentalrebates
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CY2022Q4 vtrs Number Of Insulin Analog Products
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CY2022Q4 us-gaap Indefinite Lived Intangible Assets Excluding Goodwill
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