DUBLIN, Ireland -
Elan Corporation, plc today announced its full-year and fourth quarter
2007 financial results and provided guidance for its financial outlook
for 2008. Commenting on Elan
’s business, Kelly
Martin, Elan
’s president and chief executive
officer, said,
“Our key operating principles
of patient focus, disciplined execution, and delivery of tangible
results and outcomes were achieved in 2007. The continued traction for
Tysabri in MS and the approval for Crohn
’s
disease in the US; the advancement of our AD clinical programs for
AAB-001 and ELND-005; and the on-going progress in our preclinical
discovery efforts all provide a strong foundation to maintain and
potentially increase our positive momentum in 2008. We remain completely
committed to advancing our science for patients and clinicians around
the world, increasing therapeutic options for those who are directly
affected by chronic diseases such as Alzheimer
’s,
Parkinson
’s, Multiple Sclerosis and Crohn
’s.
”
Commenting on Elan’s 2007 financial results
and 2008 outlook, Shane Cooke, Elan’s
executive vice president and chief financial officer, said, “We
are very pleased with the robust financial performance of the business
during 2007, reflecting excellent progress across our businesses and
development pipeline. Revenues grew by 36% driven by the continued
strong growth of Tysabri, with over 21,000 patients on therapy at the
end of 2007, which was key in reducing our Adjusted EBITDA losses by
two-thirds to $30.4 million in 2007. The 2007 net loss of $405.0 million
was, however, higher than in 2006 mainly due to the inclusion of $103.4
million in charges in 2007 related to the introduction of a generic
competitor to Maxipime, the consolidation of our activities on the west
coast of the US and the early repayment of debt. In 2006, the net loss
benefited from the inclusion of $63.4 million in net gains related
principally to a gain on the sale of the EU rights to Prialt and an
arbitration award.”
Mr. Cooke added, “With the recent approval of
Tysabri in Crohn’s disease in the US and the
growing number of MS patients benefiting from Tysabri use, we remain
confident that we will achieve our target of having 100,000 patients on
Tysabri therapy by the end of 2010. We look forward to 2008 with great
optimism and see revenues growing by over 30% towards the $1 billion
mark.”
|
Unaudited Consolidated Income Statement Data
|
|
|
|
Three Months Ended December 31
|
|
|
|
Twelve Months Ended December 31
|
|
2006
US$m
|
|
2007
US$m
|
|
|
|
2006
US$m
|
|
2007
US$m
|
|
|
|
|
|
Revenue (see page 8)
|
|
|
|
|
|
161.4
|
|
206.7
|
|
Product revenue
|
|
532.9
|
|
728.6
|
|
5.0
|
|
11.6
|
|
Contract revenue
|
|
27.5
|
|
30.8
|
|
166.4
|
|
218.3
|
|
Total revenue
|
|
560.4
|
|
759.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses (see page 14)
|
|
|
|
|
|
67.2
|
|
97.2
|
|
Cost of goods sold
|
|
211.2
|
|
337.9
|
|
89.6
|
|
79.8
|
|
Selling, general and administrative
|
|
363.1
|
|
341.8
|
|
58.4
|
|
82.0
|
|
Research and development
|
|
215.9
|
|
260.4
|
|
0.2
|
|
—
|
|
Net (gains)/losses on divestment of products
and businesses
|
|
(43.1)
|
|
—
|
|
(43.4)
|
|
3.2
|
|
Other net (gains)/charges
|
|
(20.3)
|
|
84.6
|
|
172.0
|
|
262.2
|
|
Total operating expenses
|
|
726.8
|
|
1,024.7
|
|
(5.6)
|
|
(43.9)
|
|
Operating loss
|
|
(166.4)
|
|
(265.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest and Investment Gains and Losses
|
|
|
|
|
|
27.6
|
|
33.5
|
|
Net interest expense
|
|
111.5
|
|
113.1
|
|
2.6
|
|
2.4
|
|
Net investment (gains)/losses
|
|
(1.6)
|
|
0.9
|
|
—
|
|
—
|
|
Net charge on debt retirement
|
|
—
|
|
18.8
|
|
30.2
|
|
35.9
|
|
Net interest and investment gains and losses
|
|
109.9
|
|
132.8
|
|
|
|
|
|
|
|
|
|
|
|
(35.8)
|
|
(79.8)
|
|
Net loss from continuing operations before tax
|
|
(276.3)
|
|
(398.1)
|
|
(9.3)
|
|
3.7
|
|
Provision for/(benefit from) income taxes
|
|
(9.0)
|
|
6.9
|
|
(26.5)
|
|
(83.5)
|
|
Net loss
|
|
(267.3)
|
|
(405.0)
|
|
|
|
|
|
|
|
|
|
|
|
(0.06)
|
|
(0.18)
|
|
Basic and diluted net loss per ordinary share
|
|
(0.62)
|
|
(0.86)
|
|
443.1
|
|
469.9
|
|
Basic and diluted weighted average number of ordinary shares
outstanding (in millions)
|
|
433.3
|
|
468.3
|
|
Unaudited Non-GAAP Financial Information –
EBITDA
|
|
|
|
Three Months Ended
December 31
|
|
Non-GAAP Financial Information
Reconciliation Schedule
|
|
Twelve Months Ended
December 31
|
|
2006
US$m
|
|
2007
US$m
|
|
|
|
2006
US$m
|
|
2007
US$m
|
|
|
|
|
|
|
|
|
|
|
|
(26.5)
|
|
(83.5)
|
|
Net loss
|
|
(267.3)
|
|
(405.0)
|
|
27.6
|
|
33.5
|
|
Net interest expense
|
|
111.5
|
|
113.1
|
|
(9.3)
|
|
3.7
|
|
Provision for/(benefit from) income taxes
|
|
(9.0)
|
|
6.9
|
|
36.9
|
|
28.6
|
|
Depreciation and amortization
|
|
135.6
|
|
170.3
|
|
(7.3)
|
|
(1.6)
|
|
Amortized fees
|
|
(44.0)
|
|
(11.2)
|
|
21.4
|
|
(19.3)
|
|
EBITDA
|
|
(73.2)
|
|
(125.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31
|
|
Non-GAAP Financial Information
Reconciliation Schedule
|
|
Twelve Months Ended
December 31
|
|
2006
US$m
|
|
2007
US$m
|
|
|
|
2006
US$m
|
|
2007
US$m
|
|
21.4
|
|
(19.3)
|
|
EBITDA
|
|
(73.2)
|
|
(125.9)
|
|
10.0
|
|
10.7
|
|
Share-based compensation
|
|
47.1
|
|
43.4
|
|
0.2
|
|
—
|
|
Net (gains)/losses on divestment of products and businesses
|
|
(43.1)
|
|
—
|
|
(43.4)
|
|
3.2
|
|
Other net (gains)/charges
|
|
(20.3)
|
|
32.4
|
|
2.6
|
|
2.4
|
|
Net investment (gains)/losses
|
|
(1.6)
|
|
0.9
|
|
—
|
|
—
|
|
Net charge on debt retirement
|
|
—
|
|
18.8
|
|
(9.2)
|
|
(3.0)
|
|
Adjusted EBITDA
|
|
(91.1)
|
|
(30.4)
|
To supplement its consolidated financial statements presented on a US
GAAP basis, Elan provides readers with EBITDA (Earnings Before Interest,
Taxes, Depreciation and Amortization) and Adjusted EBITDA, non-GAAP
measures of operating results. EBITDA is defined as net loss plus or
minus depreciation and amortization of costs and revenues, provisions
for income tax and net interest expense. Adjusted EBITDA is defined as
EBITDA plus or minus share-based compensation, net gains or losses on
divestment of products and businesses, other net gains or charges, net
investment gains or losses and net charge on debt retirement. EBITDA
and Adjusted EBITDA are not presented as, and should not be considered
alternative measures of, operating results or cash flow from operations,
as determined in accordance with US GAAP. Elan’s
management uses EBITDA and Adjusted EBITDA to evaluate the operating
performance of Elan and its business and these measures are among the
factors considered as a basis for Elan’s
planning and forecasting for future periods. Elan believes EBITDA and
Adjusted EBITDA are measures of performance used by some investors,
equity analysts and others to make informed investment decisions. EBITDA
and Adjusted EBITDA are used as analytical indicators of income
generated to service debt and to fund capital expenditures. EBITDA and
Adjusted EBITDA do not give effect to cash used for interest payments
related to debt service requirements and do not reflect funds available
for investment in the business of Elan or for other discretionary
purposes. EBITDA and Adjusted EBITDA, as defined by Elan and presented
in this press release, may not be comparable to similarly titled
measures reported by other companies. Reconciliations of EBITDA and
Adjusted EBITDA to net loss from continuing operations are set out in
the tables above titled, “Non-GAAP Financial
Information Reconciliation Schedule.”
|
Unaudited Consolidated US GAAP Balance Sheet Data
|
|
|
|
|
|
December 31
2006
US$m
|
|
December 31
2007
US$m
|
|
Assets
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
1,510.6
|
|
423.5
|
|
Restricted cash — current
|
|
23.2
|
|
20.1
|
|
Investment securities — current(1)
|
|
11.2
|
|
276.9
|
|
Prepaid and other current assets
|
|
211.3
|
|
195.9
|
|
Total current assets
|
|
1,756.3
|
|
916.4
|
|
|
|
|
|
|
|
Non-Current Assets
|
|
|
|
|
|
Intangible assets, net
|
|
575.9
|
|
448.8
|
|
Property, plant and equipment, net
|
|
349.0
|
|
337.7
|
|
Investment securities — non-current
|
|
9.2
|
|
22.5
|
|
Restricted cash — non-current
|
|
—
|
|
9.5
|
|
Other assets
|
|
55.9
|
|
46.5
|
|
Total Assets
|
|
2,746.3
|
|
1,781.4
|
|
|
|
|
|
|
|
Liabilities and Shareholders’
Equity/(Deficit)
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
266.9
|
|
246.4
|
|
Deferred income
|
|
16.1
|
|
4.7
|
|
Long-term debt (due November 2011 & November 2013)
|
|
2,378.2
|
|
1,765.0
|
|
Shareholders’ equity/(deficit)(2)
(see page 16)
|
|
85.1
|
|
(234.7)
|
|
Total Liabilities and Shareholders’
Equity/(Deficit)
|
|
2,746.3
|
|
1,781.4
|
(1) At December 31, 2007, all of Elan’s
liquidity was invested in bank deposits and money funds. In
December 2007, due to the dislocations in the capital markets, one of
these money funds was closed. As a result, at December 31, 2007,
the amount invested in this fund of $275 million was no longer included
as cash and cash equivalents and was presented as an investment. Since
December 31, 2007, Elan has reduced the amount invested in this fund to
approximately $100 million and has moved approximately $175 million into
bank deposits and United States treasury funds. As a consequence,
at January 31, 2008, Elan had cash and cash equivalents and restricted
cash of approximately $625 million and current investment securities of
approximately $100 million.
(2) Our debt covenants do not require us to
maintain or adhere to any specific financial ratios. Consequently,
the shareholders’ deficit has no impact on
our ability to comply with our debt covenants.
|
Unaudited Consolidated US GAAP Cash Flow Data
|
|
Three Months Ended
December 31
|
|
|
|
Twelve Months Ended
December 31
|
|
2006
US$m
|
|
2007
US$m
|
|
|
|
2006
US$m
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Copyright © 2008 Business Wire. All rights reserved.
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