Revised Full Year 2022 Guidance | Prior Full Year 2022 Guidance | |||||||
Net revenue | $2.15 billion - $2.25 billion | $2.15 billion - $2.25 billion | ||||||
Adjusted EBITDA (1) | $500 million - $520 million | $540 million - $560 million | ||||||
Adjusted diluted EPS (2) | $0.65 - $0.70 | $0.80 - $0.85 | ||||||
Operating cash flow (3) | $200 million - $225 million | $225 million - $250 million | ||||||
Capital expenditures | $65 million - $75 million | $75 million - $85 million | ||||||
Weighted average diluted shares outstanding (4) | Approximately 305 million | Approximately 307 million |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenue | $ | 559,355 | $ | 535,075 | $ | 1,056,988 | $ | 1,028,180 | |||||||||||||||
Cost of goods sold | 353,724 | 322,577 | 676,786 | 624,120 | |||||||||||||||||||
Cost of goods sold impairment charges | 5,112 | — | 5,112 | — | |||||||||||||||||||
Gross profit | 200,519 | 212,498 | 375,090 | 404,060 | |||||||||||||||||||
Selling, general and administrative | 98,806 | 86,157 | 197,471 | 176,883 | |||||||||||||||||||
Research and development | 50,748 | 52,864 | 103,546 | 101,046 | |||||||||||||||||||
In-process research and development impairment charges | — | 710 | — | 710 | |||||||||||||||||||
Intellectual property legal development expenses | 821 | 1,365 | 1,585 | 4,947 | |||||||||||||||||||
Acquisition, transaction-related and integration expenses | 241 | 4,283 | 675 | 7,085 | |||||||||||||||||||
Charges related to legal matters, net | 251,877 | — | 249,551 | — | |||||||||||||||||||
Insurance recoveries for property losses and associated expenses | (1,911) | — | (1,911) | — | |||||||||||||||||||
Restructuring and other charges | — | — | 731 | 363 | |||||||||||||||||||
Change in fair value of contingent consideration | (270) | — | (70) | — | |||||||||||||||||||
Other operating income | (1,175) | — | (1,175) | — | |||||||||||||||||||
Operating (loss) income | (198,618) | 67,119 | (175,313) | 113,026 | |||||||||||||||||||
Other (expense) income: | |||||||||||||||||||||||
Interest expense, net | (35,623) | (34,083) | (68,958) | (67,968) | |||||||||||||||||||
Foreign exchange loss, net | (5,429) | (2,244) | (7,442) | (156) | |||||||||||||||||||
Loss on refinancing | (291) | — | (291) | — | |||||||||||||||||||
Other income, net | 7,230 | 4,032 | 9,352 | 4,826 | |||||||||||||||||||
Total other expense, net | (34,113) | (32,295) | (67,339) | (63,298) | |||||||||||||||||||
(Loss) income before income taxes | (232,731) | 34,824 | (242,652) | 49,728 | |||||||||||||||||||
Provision for income taxes | 7,350 | 2,648 | 3,889 | 3,007 | |||||||||||||||||||
Net (loss) income | (240,081) | 32,176 | (246,541) | 46,721 | |||||||||||||||||||
Less: Net loss (income) attributable to non-controlling interests | 119,273 | (17,644) | 124,015 | (25,483) | |||||||||||||||||||
Net (loss) income attributable to Amneal Pharmaceuticals, Inc. before accretion of redeemable non-controlling interest | (120,808) | 14,532 | (122,526) | 21,238 | |||||||||||||||||||
Accretion of redeemable non-controlling interest | — | — | (438) | — | |||||||||||||||||||
Net (loss) income attributable to Amneal Pharmaceuticals, Inc. | $ | (120,808) | $ | 14,532 | $ | (122,964) | $ | 21,238 | |||||||||||||||
Net (loss) income per share attributable to Amneal Pharmaceuticals, Inc.'s class A common stockholders: | |||||||||||||||||||||||
Basic | $ | (0.80) | $ | 0.10 | $ | (0.82) | $ | 0.14 | |||||||||||||||
Diluted | $ | (0.80) | $ | 0.10 | $ | (0.82) | $ | 0.14 | |||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||||
Basic | 150,993 | 148,996 | 150,445 | 148,507 | |||||||||||||||||||
Diluted | 150,993 | 151,986 | 150,445 | 151,606 |
June 30, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 91,979 | $ | 247,790 | |||||||
Restricted cash | 6,203 | 8,949 | |||||||||
Trade accounts receivable, net | 688,849 | 662,583 | |||||||||
Inventories | 533,028 | 489,389 | |||||||||
Prepaid expenses and other current assets | 232,204 | 110,218 | |||||||||
Related party receivables | 1,338 | 1,179 | |||||||||
Total current assets | 1,553,601 | 1,520,108 | |||||||||
Property, plant and equipment, net | 483,625 | 514,158 | |||||||||
Goodwill | 600,974 | 593,017 | |||||||||
Intangible assets, net | 1,204,224 | 1,166,922 | |||||||||
Operating lease right-of-use assets | 36,490 | 39,899 | |||||||||
Operating lease right-of-use assets - related party | 19,212 | 20,471 | |||||||||
Financing lease right-of-use assets | 63,443 | 64,475 | |||||||||
Other assets | 79,836 | 20,614 | |||||||||
Total assets | $ | 4,041,405 | $ | 3,939,664 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | 561,692 | $ | 525,345 | |||||||
Current portion of liabilities for legal matters | 275,338 | 58,000 | |||||||||
Revolving credit facility | 85,000 | — | |||||||||
Current portion of long-term debt, net | 29,920 | 30,614 | |||||||||
Current portion of operating lease liabilities | 10,096 | 9,686 | |||||||||
Current portion of operating and financing lease liabilities - related party | 2,796 | 2,636 | |||||||||
Current portion of financing lease liabilities | 3,318 | 3,101 | |||||||||
Related party payables - short term | 24,904 | 47,861 | |||||||||
Total current liabilities | 993,064 | 677,243 | |||||||||
Long-term debt, net | 2,622,447 | 2,680,053 | |||||||||
Note payable - related party | 38,856 | 38,038 | |||||||||
Operating lease liabilities | 28,904 | 32,894 | |||||||||
Operating lease liabilities - related party | 17,380 | 18,783 | |||||||||
Financing lease liabilities | 60,011 | 60,251 | |||||||||
Related party payables - long term | 10,654 | 9,619 | |||||||||
Other long-term liabilities | 79,213 | 38,903 | |||||||||
Total long-term liabilities | 2,857,465 | 2,878,541 | |||||||||
Redeemable non-controlling interests | 17,885 | 16,907 | |||||||||
Total stockholders' equity | 172,991 | 366,973 | |||||||||
Total liabilities and stockholders' equity | $ | 4,041,405 | $ | 3,939,664 |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) income | $ | (246,541) | $ | 46,721 | |||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||||||
Depreciation and amortization | 117,511 | 112,037 | |||||||||
Unrealized foreign currency loss | 8,014 | 124 | |||||||||
Amortization of debt issuance costs and discount | 4,388 | 4,473 | |||||||||
Loss on refinancing | 291 | — | |||||||||
Intangible asset impairment charges | 5,112 | 710 | |||||||||
Insurance recoveries for property and equipment losses | (1,000) | — | |||||||||
Stock-based compensation | 16,327 | 12,962 | |||||||||
Inventory provision | 17,748 | 25,805 | |||||||||
Change in fair value of contingent consideration | (70) | — | |||||||||
Other operating charges and credits, net | 3,449 | 2,764 | |||||||||
Changes in assets and liabilities: | |||||||||||
Trade accounts receivable, net | (26,561) | (13,167) | |||||||||
Inventories | (65,395) | (54,580) | |||||||||
Prepaid expenses, other current assets and other assets | (119,747) | (23,988) | |||||||||
Related party receivables | (159) | 7,383 | |||||||||
Accounts payable, accrued expenses and other liabilities | 273,947 | (21,137) | |||||||||
Related party payables | 7,508 | (3,912) | |||||||||
Net cash (used in) provided by operating activities | (5,178) | 96,195 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property, plant and equipment | (15,842) | (19,585) | |||||||||
Deposits for future acquisition of property, plant, and equipment | (3,955) | (1,667) | |||||||||
Acquisition of intangible assets | (10,000) | (500) | |||||||||
Acquisitions of businesses, net of cash acquired | (84,714) | (73,828) | |||||||||
Proceeds from insurance recoveries for property and equipment losses | 1,000 | — | |||||||||
Net cash used in investing activities | (113,511) | (95,580) | |||||||||
Cash flows from financing activities: | |||||||||||
Payments of deferred financing and refinancing costs | (1,622) | — | |||||||||
Payments of principal on debt, financing leases and other | (63,010) | (33,876) | |||||||||
Borrowings on revolving credit facility | 85,000 | — | |||||||||
Proceeds from exercise of stock options | 239 | 681 | |||||||||
Employee payroll tax withholding on restricted stock unit vesting | (3,291) | (2,378) | |||||||||
Tax distributions to non-controlling interests | (9,917) | (27,551) | |||||||||
Acquisition of redeemable non-controlling interest | (1,722) | — | |||||||||
Payments of deferred consideration for acquisitions - related party | (43,998) | — | |||||||||
Payments of principal on financing lease - related party | — | (93) | |||||||||
Repayment of related party note | — | (1,000) | |||||||||
Net cash used in financing activities | (38,321) | (64,217) | |||||||||
Effect of foreign exchange rate on cash | (1,547) | (366) | |||||||||
Net decrease in cash, cash equivalents, and restricted cash | (158,557) | (63,968) | |||||||||
Cash, cash equivalents, and restricted cash - beginning of period | 256,739 | 347,121 | |||||||||
Cash, cash equivalents, and restricted cash - end of period | $ | 98,182 | $ | 283,153 | |||||||
Cash and cash equivalents - end of period | $ | 91,979 | $ | 278,306 | |||||||
Restricted cash - end of period | 6,203 | 4,847 | |||||||||
Cash, cash equivalents, and restricted cash - end of period | $ | 98,182 | $ | 283,153 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net (loss) income | $ | (240,081) | $ | 32,176 | $ | (246,541) | $ | 46,721 | |||||||||||||||
Adjusted to add: | |||||||||||||||||||||||
Interest expense, net | 35,623 | 34,083 | 68,958 | 67,968 | |||||||||||||||||||
Provision for income taxes | 7,350 | 2,648 | 3,889 | 3,007 | |||||||||||||||||||
Depreciation and amortization | 59,696 | 56,487 | 117,511 | 112,037 | |||||||||||||||||||
EBITDA (Non-GAAP) | $ | (137,412) | $ | 125,394 | $ | (56,183) | $ | 229,733 | |||||||||||||||
Adjusted to add (deduct): | |||||||||||||||||||||||
Stock-based compensation expense | 8,262 | 7,632 | 16,327 | 12,962 | |||||||||||||||||||
Acquisition, site closure, and idle facility expenses (2) | 3,173 | 5,964 | 8,762 | 11,756 | |||||||||||||||||||
Restructuring and other charges (3) | — | — | 731 | 363 | |||||||||||||||||||
Loss on refinancing | 291 | — | 291 | — | |||||||||||||||||||
Inventory related charges | — | 87 | — | 201 | |||||||||||||||||||
Charges related to legal matters, net (4) | 251,877 | — | 249,551 | — | |||||||||||||||||||
Asset impairment charges | 5,250 | 741 | 5,250 | 1,064 | |||||||||||||||||||
Foreign exchange loss | 5,429 | 2,244 | 7,442 | 156 | |||||||||||||||||||
Regulatory approval milestone | — | — | 5,000 | — | |||||||||||||||||||
Change in fair value of contingent consideration | (270) | — | (70) | — | |||||||||||||||||||
Insurance recoveries for property losses and associated expenses | (1,911) | — | (1,911) | — | |||||||||||||||||||
Other | (104) | 807 | (745) | 1,806 | |||||||||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 134,585 | $ | 142,869 | $ | 234,445 | $ | 258,041 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net (loss) income | $ | (240,081) | $ | 32,176 | $ | (246,541) | $ | 46,721 | |||||||||||||||
Adjusted to add (deduct): | |||||||||||||||||||||||
Non-cash interest | 1,966 | 2,077 | 3,948 | 4,049 | |||||||||||||||||||
GAAP provision for income taxes | 7,350 | 2,648 | 3,889 | 3,007 | |||||||||||||||||||
Amortization | 40,216 | 41,361 | 79,368 | 80,875 | |||||||||||||||||||
Stock-based compensation expense | 8,262 | 7,632 | 16,327 | 12,962 | |||||||||||||||||||
Acquisition, site closure expenses, and idle facility expenses (2) | 3,173 | 5,964 | 8,762 | 11,756 | |||||||||||||||||||
Restructuring and other charges (3) | — | — | 731 | 363 | |||||||||||||||||||
Loss on refinancing | 291 | — | 291 | — | |||||||||||||||||||
Inventory related charges | — | 87 | — | 201 | |||||||||||||||||||
Charges related to legal matters, including interest, net (4) | 252,230 | — | 249,904 | — | |||||||||||||||||||
Asset impairment charges | 5,250 | 741 | 5,250 | 1,064 | |||||||||||||||||||
Regulatory approval milestone | — | — | 5,000 | — | |||||||||||||||||||
Change in fair value of contingent consideration | (270) | — | (70) | — | |||||||||||||||||||
Insurance recoveries for property losses and associated expenses | (1,911) | — | (1,911) | — | |||||||||||||||||||
Other | (103) | 807 | (603) | 1,806 | |||||||||||||||||||
Provision for income taxes (5) | (17,451) | (20,132) | (27,659) | (35,185) | |||||||||||||||||||
Net income attributable to non-controlling interests not associated with our class B common stock | (1,889) | (2,054) | (4,088) | (3,850) | |||||||||||||||||||
Adjusted net income (Non-GAAP) | $ | 57,033 | $ | 71,307 | $ | 92,598 | $ | 123,769 | |||||||||||||||
Weighted average diluted shares outstanding (Non-GAAP) (6) | 304,278 | 304,103 | 304,456 | 303,722 | |||||||||||||||||||
Adjusted diluted earnings per share (Non-GAAP) | $ | 0.19 | $ | 0.23 | $ | 0.30 | $ | 0.41 |
(1) | Beginning in the first quarter of 2022, we will no longer exclude research and development milestone expenses related to license and collaboration agreements from our non-GAAP financial measures and our line item components, including adjusted research and development, adjusted EBITDA, adjusted operating income, adjusted net income and adjusted earnings per share. Prior period adjusted results have been revised to reflect this change. Refer to our Form 8-K filed on May 4, 2022 for additional information. | |||||||||||||
(2) | Acquisition, site closure, and idle facility expenses for the three months ended June 30, 2022 primarily included: (i.) integration costs associated with the acquisition of the baclofen franchise from certain entities affiliated with Saol International Limited which closed on February 9, 2022 (the “Saol Acquisition”) and (ii) site closure costs associated with the planned cessation of manufacturing at our Hauppauge, NY facility. Acquisition, site closure, and idle facility expenses for the six months ended June 30, 2022 primarily included (i) transaction and integration costs associated with the Saol Acquistion; (ii.) integration costs associated with the acquisition of Puniska Healthcare Pvt. Ltd. which closed on November 2, 2021; and (iii) site closure costs associated with the planned cessation of manufacturing at our Hauppauge, NY facility. Acquisition, site closure and idle facility expenses for the three and six months ended June 30, 2021 primarily included (i) transaction and integration costs associated with the acquisition of Kashiv Specialty Pharmaceuticals, LLC, which closed on April 2, 2021; (ii) integration costs associated with the acquisition of AvKARE; and (iii) site closure expenses associated with the planned cessation of manufacturing at our Hauppauge, NY facility. | |||||||||||||
(3) | For the three and six months ended June 30, 2021, restructuring and other charges primarily consisted of cash severance charges associated with the cost of benefits for former management employees. | |||||||||||||
(4) | For the three and six months ended June 30, 2022, charges related to legal matters, net, primarily included charges for the preliminary settlement of the Opana ER® antitrust litigation, net of insurance recoveries associated with class action shareholder lawsuits. | |||||||||||||
(5) | The non-GAAP effective tax rates for the three and six months ended June 30, 2022 were 23.4% and 23.0%, respectively. The non-GAAP effective tax rates for the three and six months ended June 30, 2021 were 21.0%. | |||||||||||||
(6) | Weighted average diluted shares outstanding consisted of class A common stock and class B common stock under the if-converted method. |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||
As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | |||||||||||||||||||||||||||||||||
Net revenue | $ | 364,895 | $ | — | $ | 364,895 | $ | 360,437 | $ | — | $ | 360,437 | ||||||||||||||||||||||||||
Cost of goods sold (2) | 223,423 | (13,961) | 209,462 | 204,154 | (13,637) | 190,517 | ||||||||||||||||||||||||||||||||
Cost of goods sold impairment charges | 5,112 | (5,112) | — | — | — | — | ||||||||||||||||||||||||||||||||
Gross profit | 136,360 | 19,073 | 155,433 | 156,283 | 13,637 | 169,920 | ||||||||||||||||||||||||||||||||
Gross margin % | 37.4 | % | 42.6 | % | 43.4 | % | 47.1 | % | ||||||||||||||||||||||||||||||
Selling, general and administrative (3) | 26,558 | (1,200) | 25,358 | 11,797 | 9 | 11,806 | ||||||||||||||||||||||||||||||||
Research and development (4) | 44,174 | (1,406) | 42,768 | 43,431 | (1,196) | 42,235 | ||||||||||||||||||||||||||||||||
In-process research and development impairment charges | — | — | — | 710 | (710) | — | ||||||||||||||||||||||||||||||||
Intellectual property legal development expense | 778 | — | 778 | 1,340 | — | 1,340 | ||||||||||||||||||||||||||||||||
Acquisition, transaction-related and integration expenses | 8 | (8) | — | — | — | — | ||||||||||||||||||||||||||||||||
Charges related to legal matters | 483 | (483) | — | — | — | — | ||||||||||||||||||||||||||||||||
Insurance recoveries for property losses and associated expenses | (1,911) | 1,911 | — | — | — | — | ||||||||||||||||||||||||||||||||
Other operating income | (1,175) | — | (1,175) | — | — | — | ||||||||||||||||||||||||||||||||
Operating income | $ | 67,445 | $ | 20,259 | $ | 87,704 | $ | 99,005 | $ | 15,534 | $ | 114,539 |
(1) | Operating results for the sale of Amneal products by AvKARE were included in our Generics segment. | |||||||||||||
(2) | Adjustments for the three months ended June 30, 2022 and 2021, respectively, were comprised of stock-based compensation expense ($1.3 million and $1.4 million), amortization expense ($10.2 million and $9.8 million), site closure and idle facility expenses ($2.4 million and $2.2 million), inventory related charges (none and $0.1 million), asset impairment charges ($0.1 million and none), and other (none and $0.1 million). | |||||||||||||
(3) | Adjustments for the three months ended June 30, 2022 and 2021, respectively, were comprised of stock-based compensation expense ($0.6 million and $0.4 million), site closure costs ($0.6 million and $(0.5) million), and other (none and $0.1 million). | |||||||||||||
(4) | Adjustments for the three months ended June 30, 2022 and 2021, respectively, were comprised of stock-based compensation expense ($1.4 million and $1.0 million) and other (none and $0.2 million). Non-GAAP adjusted research and development for the three months ended June 30, 2021, as previously reported, has been revised to include $7.8 million of research and development milestone expenses previously excluded. | |||||||||||||
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||
As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | |||||||||||||||||||||||||||||||||
Net revenue | $ | 682,642 | $ | — | $ | 682,642 | $ | 672,945 | $ | — | $ | 672,945 | ||||||||||||||||||||||||||
Cost of goods sold (2) | 422,453 | (29,052) | 393,401 | 389,452 | (25,656) | 363,796 | ||||||||||||||||||||||||||||||||
Cost of goods sold impairment charges | 5,112 | (5,112) | — | — | — | — | ||||||||||||||||||||||||||||||||
Gross profit | 255,077 | 34,164 | 289,241 | 283,493 | 25,656 | 309,149 | ||||||||||||||||||||||||||||||||
Gross margin % | 37.4 | % | 42.4 | % | 42.1 | % | 45.9 | % | ||||||||||||||||||||||||||||||
Selling, general and administrative (3) | 54,151 | (7,450) | 46,701 | 30,559 | (815) | 29,744 | ||||||||||||||||||||||||||||||||
Research and development (4) | 87,395 | (2,565) | 84,830 | 79,548 | (2,198) | 77,350 | ||||||||||||||||||||||||||||||||
In-process research and development impairment charges | — | — | — | 710 | (710) | — | ||||||||||||||||||||||||||||||||
Intellectual property legal development expenses | 1,550 | — | 1,550 | 4,922 | — | 4,922 | ||||||||||||||||||||||||||||||||
Acquisition, transaction-related and integration expenses | 8 | (8) | — | — | — | — | ||||||||||||||||||||||||||||||||
Charges related to legal matters | 2,157 | (2,157) | — | — | — | — | ||||||||||||||||||||||||||||||||
Insurance recoveries for property losses and associated expenses | (1,911) | 1,911 | — | — | — | — | ||||||||||||||||||||||||||||||||
Restructuring and other charges | 206 | (206) | — | |||||||||||||||||||||||||||||||||||
Other operating income | (1,175) | — | (1,175) | 80 | (80) | — | ||||||||||||||||||||||||||||||||
Operating income | $ | 112,696 | $ | 44,639 | $ | 157,335 | $ | 167,674 | $ | 29,459 | $ | 197,133 |
(1) | Operating results for the sale of Amneal products by AvKARE were included in our Generics segment. | |||||||||||||
(2) | Adjustments for the six months ended June 30, 2022 and 2021, respectively, were comprised of stock-based compensation expense ($2.8 million and $2.0 million), amortization expense ($19.5 million and $17.8 million), site closure and idle facility expenses ($7.0 million and $4.7 million), inventory related charges (none and $0.2 million), asset impairment charges ($0.1 and $0.4 million), and other ($(0.3) million and $0.6 million). | |||||||||||||
(3) | Adjustments for the six months ended June 30, 2022 and 2021, respectively, were comprised of stock-based compensation expense ($1.3 million and $0.8 million), a regulatory approval milestone ($5.0 million and none), and site closure costs ($1.1 million and immaterial). | |||||||||||||
(4) | Adjustments for the six months ended June 30, 2022 and 2021, respectively, were comprised of stock-based compensation expense ($2.6 million and $1.8 million) and other (none and $0.3 million). Non-GAAP adjusted research and development for the six months ended June 30, 2021, as previously reported, has been revised to include $11.3 million of research and development milestone expenses previously excluded. | |||||||||||||
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||
As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
Net revenue | $ | 97,001 | $ | — | $ | 97,001 | $ | 88,635 | $ | — | $ | 88,635 | |||||||||||||||||||||||
Cost of goods sold (1) | 42,791 | (26,878) | 15,913 | 48,683 | $ | (27,500) | 21,183 | ||||||||||||||||||||||||||||
Gross profit | 54,210 | 26,878 | 81,088 | 39,952 | 27,500 | 67,452 | |||||||||||||||||||||||||||||
Gross margin % | 55.9 | % | 83.6 | % | 45.1 | % | 76.1 | % | |||||||||||||||||||||||||||
Selling, general and administrative (2) | 23,171 | 199 | 23,370 | 20,656 | (741) | 19,915 | |||||||||||||||||||||||||||||
Research and development (2) | 6,574 | (403) | 6,171 | 9,433 | (289) | 9,144 | |||||||||||||||||||||||||||||
Intellectual property legal development expenses | 43 | — | 43 | 25 | — | 25 | |||||||||||||||||||||||||||||
Acquisition, transaction-related and integration expenses | 32 | (32) | — | 16 | (16) | — | |||||||||||||||||||||||||||||
Change in fair value of contingent consideration (3) | (270) | 270 | — | — | — | — | |||||||||||||||||||||||||||||
Operating income | $ | 24,660 | $ | 26,844 | $ | 51,504 | $ | 9,822 | $ | 28,546 | $ | 38,368 |
(1) | Adjustments for the three months ended June 30, 2022 and 2021 were comprised of amortization expense. | |||||||||||||
(2) | Adjustments for the three months ended June 30, 2022 and 2021 were comprised of stock-based compensation expense. | |||||||||||||
(3) | Contingent consideration was recorded in connection with the acquisition of Kashiv Specialty Pharmaceuticals, LLC. |
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||
As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
Net revenue | $ | 182,087 | $ | — | $ | 182,087 | $ | 184,566 | $ | — | $ | 184,566 | |||||||||||||||||||||||
Cost of goods sold (1) | 86,644 | (53,532) | 33,112 | 96,881 | (54,993) | 41,888 | |||||||||||||||||||||||||||||
Gross profit | 95,443 | 53,532 | 148,975 | 87,685 | 54,993 | 142,678 | |||||||||||||||||||||||||||||
Gross margin % | 52.4 | % | 81.8 | % | 47.5 | % | 77.3 | % | |||||||||||||||||||||||||||
Selling, general and administrative (2) | 47,571 | (414) | 47,157 | 40,537 | (1,332) | 39,205 | |||||||||||||||||||||||||||||
Research and development (3) | 16,151 | (729) | 15,422 | 21,498 | (469) | 21,029 | |||||||||||||||||||||||||||||
Intellectual property legal development expenses | 35 | — | 35 | 25 | — | 25 | |||||||||||||||||||||||||||||
Acquisition, transaction-related and integration expenses | 32 | (32) | — | 16 | (16) | — | |||||||||||||||||||||||||||||
Change in fair value of contingent consideration (4) | (70) | 70 | — | — | — | — | |||||||||||||||||||||||||||||
Operating income | $ | 31,724 | $ | 54,637 | $ | 86,361 | $ | 25,609 | $ | 56,810 | $ | 82,419 |
(1) | Adjustments for the six months ended June 30, 2022 and 2021 were comprised of amortization expense. | |||||||||||||
(2) | Adjustments for the six months ended June 30, 2022 and 2021 were comprised of stock-based compensation expense. | |||||||||||||
(3) | Adjustments for the six months ended June 30, 2022 and 2021 were comprised of stock-based compensation expense. Non-GAAP adjusted research and development for the six months ended June 30, 2021, as previously reported, has been revised to include $7.4 million of research and development milestone expenses previously excluded. | |||||||||||||
(4) | Contingent consideration was recorded in connection with the acquisition of Kashiv Specialty Pharmaceuticals, LLC. |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||
As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
Net revenue | $ | 97,459 | $ | — | $ | 97,459 | $ | 86,003 | $ | — | $ | 86,003 | |||||||||||||||||||||||
Cost of goods sold | 87,510 | — | 87,510 | 69,740 | — | 69,740 | |||||||||||||||||||||||||||||
Gross profit | 9,949 | — | 9,949 | 16,263 | — | 16,263 | |||||||||||||||||||||||||||||
Gross margin % | 10.2 | % | 10.2 | % | 18.9 | % | 18.9 | % | |||||||||||||||||||||||||||
Selling, general and administrative (2) | 12,735 | (4,933) | 7,802 | 13,599 | (6,183) | 7,416 | |||||||||||||||||||||||||||||
Acquisition, transaction-related and integration expenses (3) | — | — | — | 491 | (491) | — | |||||||||||||||||||||||||||||
Operating (loss) income | $ | (2,786) | $ | 4,933 | $ | 2,147 | $ | 2,173 | $ | 6,674 | $ | 8,847 |
(1) | Operating results for the sale of Amneal products by AvKARE were included in our Generics segment. | |||||||||||||
(2) | Adjustments for the three months ended June 30, 2022 and 2021 were comprised of amortization expense. | |||||||||||||
(3) | Adjustments for the three months ended June 30, 2021 were comprised of finance integration expenses. |
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||
As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
Net revenue | $ | 192,259 | $ | — | $ | 192,259 | $ | 170,669 | $ | — | $ | 170,669 | |||||||||||||||||||||||
Cost of goods sold | 167,689 | — | 167,689 | 137,787 | — | 137,787 | |||||||||||||||||||||||||||||
Gross profit | 24,570 | — | 24,570 | 32,882 | — | 32,882 | |||||||||||||||||||||||||||||
Gross margin % | 12.8 | % | 12.8 | % | 19.3 | % | 19.3 | % | |||||||||||||||||||||||||||
Selling, general and administrative (2) | 26,145 | (9,459) | 16,686 | 27,303 | (12,367) | 14,936 | |||||||||||||||||||||||||||||
Acquisition, transaction-related and integration expenses (3) | — | — | — | 1,422 | (1,422) | — | |||||||||||||||||||||||||||||
Operating income | $ | (1,575) | $ | 9,459 | $ | 7,884 | $ | 4,157 | $ | 13,789 | $ | 17,946 |
(1) | Operating results for the sale of Amneal products by AvKARE were included in our Generics segment. | |||||||||||||
(2) | Adjustments for the six months ended June 30, 2022 and 2021, respectively, were comprised of amortization expense ($9.9 million and $12.4 million) and other ($(0.4) million and none). | |||||||||||||
(3) | Adjustments for the six months ended June 30, 2021 were comprised of finance integration expenses. |