HERTFORDSHIRE, England
and PITTSBURGH, Aug. 9, 2016 /PRNewswire/ -- Mylan
N.V. (NASDAQ, TASE: MYL) today announced its financial results for
the quarter and six months ended June 30, 2016.
Second Quarter 2016 Financial Highlights
- Total revenues of $2.56 billion,
up 8% compared to the prior year period
- Generics segment third party net sales of $2.14 billion, up 4% compared to the prior year
period
- Specialty segment third party net sales of $402.5 million, up 33% compared to the prior year
period
- Current quarter total revenues were not significantly impacted
by the effect of foreign currency translation
- U.S. GAAP diluted earnings per ordinary share ("EPS") of
$0.33, up 3% compared to the prior
year period primarily due to higher sales and gross margins,
partially offset by increased non-operating expenses driven mainly
by certain Meda transaction related acquisition and financing
costs
- Adjusted diluted earnings per ordinary share ("adjusted EPS")
of $1.16, up 28% compared to the
prior year period
Six Months Ended June 30, 2016
Financial Highlights
- Total revenues of $4.75 billion,
up 12% compared to the prior year period
- Generics segment third party net sales of $4.07 billion, up 10% compared to the prior year
period
- Specialty segment third party net sales of $650.4 million, up 27% compared to the prior year
period
- The unfavorable impact of foreign currency translation on
current year total revenues was approximately $33 million, or 1%
- U.S. GAAP diluted EPS of $0.36,
down 22% compared to the prior year period primarily due to higher
operating expenses, driven mainly by certain Meda transaction
related acquisition and financing costs
- Adjusted EPS of $1.92, up 19%
compared to the prior year period
Mylan CEO Heather Bresch
commented, "Our strong second quarter results delivered
year-over-year total revenue growth of 8% and adjusted EPS growth
of 28%. This solid performance, which included continued strength
in our generics business and double digit revenue growth in our
Specialty business, yet again underscores the strategic value of
Mylan's diversification and scale as well as our differentiation
within our industry. Given our performance to date this year and
our current trajectory, we are committed to our 2016 adjusted EPS
guidance range of $4.85 to $5.15.
"We also are very excited about the completion of our Meda
transaction, as well as the Renaissance topicals transaction that
we completed in June, which continue to build on our unique global
platform to create even greater scale, breadth, diversity and
access across products, geographies and sales channels. These
transactions also further strengthen our already very strong cash
flows. We see significant opportunities to further differentiate
Mylan for our customers, patients and other stakeholders as we
bring these assets together."
Total Revenues
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
(Unaudited; in
millions)
|
2016
|
|
2015
|
|
Percent
Change
|
|
2016
|
|
2015
|
|
Percent
Change
|
Total
Revenues
|
$
|
2,560.7
|
|
|
$
|
2,371.7
|
|
|
8%
|
|
$
|
4,752.0
|
|
|
$
|
4,243.4
|
|
|
12%
|
Generics Third Party
Net Sales
|
2,137.4
|
|
|
2,055.1
|
|
|
4%
|
|
4,065.6
|
|
|
3,698.7
|
|
|
10%
|
North
America*
|
1,010.0
|
|
|
948.5
|
|
|
6%
|
|
1,929.7
|
|
|
1,803.5
|
|
|
7%
|
Europe
|
604.2
|
|
|
571.0
|
|
|
6%
|
|
1,191.9
|
|
|
977.3
|
|
|
22%
|
Rest of
World*
|
523.2
|
|
|
535.6
|
|
|
(2)%
|
|
944.0
|
|
|
917.9
|
|
|
3%
|
Specialty Third Party
Net Sales
|
402.5
|
|
|
301.9
|
|
|
33%
|
|
650.4
|
|
|
512.9
|
|
|
27%
|
Other
Revenues
|
20.8
|
|
|
14.7
|
|
|
41%
|
|
36.0
|
|
|
31.8
|
|
|
13%
|
*Beginning in the first quarter of 2016, the Company
reclassified sales from its Brazilian operation from Rest of World
to North America. The amount
reclassified for the three and six months ended June 30, 2015 was approximately $11.1 million and $21.3
million, respectively.
Second Quarter
2016 Financial Results
|
Total Revenue
Generics segment third party net sales were
$2.14 billion for the quarter, an
increase of 4% when compared to the prior year period. Generics
third party net sales were not significantly impacted by the effect
of foreign currency translation in the second quarter of
2016.
- Third party net sales from North
America were $1.01 billion
for the quarter, an increase of 6% when compared to the prior year
period. This increase was principally due to net sales from
significant new products launched since July
1, 2015 ("new products") as a result of leveraging our
strong global platform, partially offset by lower pricing and
volumes on existing products. The unfavorable impact of foreign
currency translation on current period third party net sales was
approximately $4.8 million, or 1%
within North America.
- Third party net sales from Europe were $604.2
million for the quarter, an increase of 6% when compared to
the prior year period. This increase was primarily the result of
net sales from new products combined with higher volumes on
existing products, while pricing was essentially flat in the
current period as a result of our diversified product portfolio.
The favorable impact of foreign currency translation on current
period third party net sales was approximately $5.6 million, or 1% within Europe.
- Third party net sales from Rest of World were
$523.2 million for the quarter, a
decrease of 2% when compared to the prior year period. New product
introductions across the region and higher sales in Japan and emerging markets positively impacted
sales in the quarter. Lower pricing and sales volumes in the
region, including the anti-retroviral ("ARV") franchise,
unfavorably impacted third party net sales. However, sales within
our ARV franchise progressively improved throughout the quarter as
HIV tender volumes increased, resulting in sales growth on a
sequential basis of more than 30% compared to the first quarter of
2016. Third party net sales from Rest of World were not
significantly impacted by the effect of foreign currency
translation during the second quarter of 2016.
Specialty segment third party net sales were
$402.5 million for the quarter, an
increase of 33% when compared to the prior year period. This
increase was primarily the result of higher unit volumes and the
realization of the benefits of customer contract negotiations over
the last several quarters related to the EpiPen®
Auto-Injector, and higher sales of the Perforomist®
Inhalation Solution and ULTIVA®.
Total Gross Profit
Gross profit was $1.17 billion and
$1.01 billion for the second quarter
of 2016 and 2015, respectively. Gross margins were 46% and 43% in
the second quarter of 2016 and 2015, respectively. Adjusted gross
profit was $1.45 billion and adjusted
gross margins were 56% for the quarter compared to adjusted gross
profit of $1.28 billion and adjusted
gross margins of 54% in the prior year period. Gross margins and
adjusted gross margins were both positively impacted primarily by
new product introductions and favorable Specialty sales in the
second quarter of 2016.
Total Profitability
Earnings from operations were $410.9
million for the quarter, an increase of 49% from the
comparable prior year period. This increase was primarily due to
higher revenues and higher gross profit.
R&D expense increased from the comparable prior year period
due to the continued development of our respiratory, insulin and
biologics programs and expenses incurred during the current quarter
related to the Company's collaboration with Momenta
Pharmaceuticals, Inc. ("Momenta"). SG&A expense increased from
the comparable prior year period as we invested in our continued
growth. These increases were partially offset by decreases in
consulting and professional services expense and legal expense due
to higher acquisition related costs incurred in the prior year
period.
U.S. GAAP net earnings attributable to Mylan N.V. ordinary
shareholders ("net earnings") increased by $0.6 million to $168.4
million for the quarter ended June 30, 2016, as
compared to $167.8 million for the
prior year period. Second quarter 2016 net earnings were negatively
impacted by increased non-operating expenses including unrealized
mark-to-market losses on the Company's SEK denominated foreign
currency contracts and the write off of financing fees related to
the termination of the Bridge Credit Agreement originally entered
into on February 10, 2016 (the "2016
Bridge Credit Agreement") in connection with Mylan's public offer
to the shareholders of Meda to acquire all of the outstanding
shares of Meda (the "Offer"). U.S. GAAP diluted EPS increased from
$0.32 to $0.33 as a result of higher earnings from
operations and a lower average share count, partially offset by
higher non-operating expenses. Adjusted net earnings increased by
$118.1 million to $592.4 million compared to $474.3 million for the prior year period.
Adjusted EPS increased 28% to $1.16
compared to $0.91 in the prior year
period.
EBITDA, which is defined as net earnings (excluding the
non-controlling interest and losses from equity method investees)
plus income taxes, interest expense, depreciation and amortization,
was $621.7 million for the quarter
ended June 30, 2016, and $558.3
million for the comparable prior year quarter. After
adjusting for certain items as further detailed in the
reconciliation below, adjusted EBITDA was $821.4 million for the quarter ended
June 30, 2016 and $693.5 million
for the comparable prior year quarter.
Six Months
Ended June 30, 2016 Financial Results
|
Total Revenue
Generics segment third party net sales were
$4.07 billion for the six months
ended June 30, 2016, an increase of
10% when compared to the prior year period. The unfavorable impact
of foreign currency translation on Generics third party net sales
was approximately $32.7 million, or
1% for the six months ended June 30,
2016.
- Third party net sales from North
America were $1.93 billion
for the six months ended June 30,
2016, an increase of 7% when compared to the prior year
period. This increase was principally due to net sales from
significant new product introductions as a result of our strong
global platform, and to a lesser extent, the two additional months
of net sales from our established products ("incremental
established products sales") when compared to the six months ended
June 30, 2015. This increase was
partially offset by lower pricing and volumes on existing products.
The unfavorable impact of foreign currency translation on the
current period third party net sales was approximately $12.0 million or 1% within North America.
- Third party net sales from Europe were $1.19
billion for the six months ended June
30, 2016, an increase of 22% when compared to the prior year
period. This increase was primarily the result of the incremental
established products sales, and to a lesser extent, net sales from
new products. In addition, there were higher volumes on existing
products, while pricing was essentially flat in the first half of
2016 as a result of our diversified product portfolio. Third party
net sales from Europe were not
significantly impacted by the effect of foreign currency
translation during the six months ended June
30, 2016.
- Third party net sales from Rest of World were
$944.0 million for the six months
ended June 30, 2016, an increase of
3% when compared to the prior year period. This increase was
primarily driven by the incremental established products sales, and
to a lesser extent, new product introductions, as well as higher
sales in Japan and emerging
markets. These increases were partially offset by lower pricing and
sales volumes in the region, including the ARV franchise. However,
sales within our ARV franchise progressively grew throughout the
first half of the year, and on a sequential basis second quarter
sales increased over 30% from the first quarter of 2016. The
unfavorable impact of foreign currency translation on current year
third party net sales was approximately $18.4 million, or 2% within Rest of World.
Specialty segment third party net sales were
$650.4 million for the six months
ended June 30, 2016, an increase of
27% when compared to the prior year period. This increase was
primarily the result of higher unit volumes and the realization of
the benefits of customer contract negotiations over the last
several quarters related to the EpiPen® Auto-Injector, and
higher sales of the Perforomist® Inhalation Solution and
ULTIVA®.
Total Gross Profit
Gross profit was $2.08 billion and
$1.84 billion for the six months
ended June 30, 2016 and 2015,
respectively. Gross margins were 44% and 43% for the six months
ended June 30, 2016 and 2015,
respectively. Gross margins were positively impacted primarily by
new product introductions and favorable Specialty sales, partially
offset by higher amortization expense due to acquisitions completed
in 2015. Adjusted gross profit was $2.63
billion and adjusted gross margins were 55% for the six
months ended June 30, 2016 compared
to adjusted gross profit of $2.27
billion and adjusted gross margins of 54% in the prior year
period. Adjusted gross margins were positively impacted primarily
by new product introductions and favorable Specialty sales in the
first half of 2016.
Total Profitability
Earnings from operations were $516.5
million for the six months ended June
30, 2016, an increase of 18% from the comparable prior year
period. This increase was primarily due to higher revenue,
including third party net sales growth of 10% and 27% in the
Generics and Specialty segments from the comparable prior year
period, respectively, and higher gross profit.
R&D expense for the six months ended June 30, 2016 increased from the comparable prior
year period due to an upfront payment to Momenta for $45.0 million and additional expenses incurred in
the current period related to the Company's collaboration
agreement. In addition, R&D expense increased due to the two
additional months of expense related to our established products in
the current year and our continued investment in the development of
our respiratory, insulin and biologics programs. SG&A expense
increased from the comparable prior year period principally due to
the two additional months of expense related to our established
products in the current year. These increases were partially
offset by decreases in consulting and professional services expense
and legal expense due to higher acquisition related costs incurred
in the prior year period.
U.S. GAAP net earnings decreased by $42.1
million to $182.3 million for
the six months ended June 30, 2016,
compared to $224.4 million for the
prior year period. U.S. GAAP diluted EPS decreased from
$0.46 to $0.36 as a result of higher operating expenses,
including higher amortization expense related to acquisitions
completed during 2015, unrealized mark-to-market losses related to
the Company's SEK denominated foreign currency contracts, the write
off of financing fees related to the termination of the 2016 Bridge
Credit Agreement and a higher average share count due to the impact
of ordinary shares issued in the prior year in the transaction in
which Mylan N.V. acquired Mylan Inc. and Abbott Laboratories'
non-U.S. developed markets specialty and branded generics business
(the "EPD Transaction"). Adjusted net earnings increased by
$195.3 million to $978.7 million for the six months ended
June 30, 2016 compared to
$783.4 million for the prior year
period. Adjusted EPS increased 19% to $1.92 for the six months ended June 30, 2016 compared to $1.62 in the prior year period.
EBITDA was $1.04 billion for the
six months ended June 30, 2016, and
$898.8 million for the comparable
prior year period. After adjusting for certain items as further
detailed in the reconciliation below, adjusted EBITDA was
$1.41 billion for the six months
ended June 30, 2016 and $1.20 billion for the comparable prior year
period.
Cash Flow
Net cash provided by operating activities was $497.1 million for the six months ended
June 30, 2016 compared to $381.7
million for the prior year period. The increase in net cash
provided by operating activities was primarily the result of higher
earnings from operations. Capital expenditures were approximately
$121 million for the six months ended
June 30, 2016 compared to approximately $122 million for the comparable prior year
period. Adjusted cash provided by operating activities was
$686.5 million for the six months
ended June 30, 2016 compared to $489.9
million for the prior year period. Adjusted free cash flow,
defined as adjusted cash provided by operating activities less
capital expenditures, was $565.5
million for the six months ended June 30, 2016,
compared to $367.9 million in the
prior year period.
Conference Call
Mylan will host a conference call and live webcast, today,
August 9, 2016, at 4:30 pm ET,
in conjunction with this release of its financial results. The
dial-in number to access the call is 800.514.4861 or 678.809.2405
for international callers. To access the live webcast, please log
onto Mylan's website (www.mylan.com) at least 15 minutes before the
event is to begin to register and download or install any necessary
software.
Non-GAAP Financial Measures
This press release includes the presentation and discussion of
certain financial information that differs from what is reported
under accounting principles generally accepted in the United States ("U.S. GAAP"). These
non-GAAP financial measures, including, but not limited to,
adjusted EPS, adjusted cash provided by operating activities,
adjusted gross profit, adjusted gross margins, adjusted net
earnings, EBITDA, adjusted EBITDA, and adjusted free cash flow, are
presented in order to supplement investors' and other readers'
understanding and assessment of the financial performance of Mylan
N.V. ("Mylan" or the "Company"). Management uses these measures
internally for forecasting, budgeting, measuring its operating
performance, and incentive-based awards. We believe that non-GAAP
financial measures are useful supplemental information for our
investors and when considered together with our U.S. GAAP financial
measures and the reconciliation to the most directly comparable
U.S. GAAP financial measure, provide a more complete understanding
of the factors and trends affecting our operations. The financial
performance of the Company is measured by senior management, in
part, using the adjusted metrics included herein, along with other
performance metrics. Management's annual incentive compensation is
derived, in part, based on the adjusted EPS metric. In addition,
primarily due to acquisitions, Mylan believes that an evaluation of
its ongoing operations (and comparisons of its current operations
with historical and future operations) would be difficult if the
disclosure of its financial results were limited to financial
measures prepared only in accordance with U.S. GAAP. In addition,
the Company believes that including EBITDA and supplemental
adjustments applied in presenting adjusted EBITDA pursuant to our
debt agreements is appropriate to provide additional information to
investors to demonstrate the Company's ability to comply with
financial debt covenants (which are calculated using a measure
similar to adjusted EBITDA) and assess the Company's ability to
incur additional indebtedness. We also report sales performance
using the non-GAAP financial measure of "constant currency" total
revenues and third party net sales. This measure provides
information on the change in net sales assuming that foreign
currency exchange rates had not changed between the prior and
current period. The comparisons presented as constant currency
rates reflect comparative local currency sales at the prior year's
foreign exchange rates. We routinely evaluate our third party net
sales performance at constant currency so that sales results can be
viewed without the impact of foreign currency exchange rates,
thereby facilitating a period-to-period comparison of our
operational activities, and we believe that this presentation also
provides useful information to investors for the same reason. The
"Summary of Total Revenues by Segment" table below compares third
party net sales on an actual and constant currency basis for each
reportable segment and the geographic regions within the Generics
segment for the three and six months ended June 30, 2016 and
2015. Also, other than as described, set forth below, Mylan has
provided reconciliations of such non-GAAP financial measures to the
most directly comparable U.S. GAAP financial measures. Investors
and other readers are encouraged to review the related U.S. GAAP
financial measures and the reconciliations of the non-GAAP measures
to their most directly comparable U.S. GAAP measures set forth
below, and investors and other readers should consider non-GAAP
measures only as supplements to, not as substitutes for or as
superior measures to, the measures of financial performance
prepared in accordance with U.S. GAAP.
For additional information regarding the components and uses of
Non-GAAP financial measures refer to Management's Discussion and
Analysis of Financial Condition and Results of Operations-- Use of
Non-GAAP Financial Measures section of Mylan's Quarterly Report on
Form 10-Q for the quarter ended June 30,
2016.
Mylan is not reaffirming or providing forward looking guidance
for U.S. GAAP reported financial measures or a reconciliation of
forward-looking non-GAAP financial measures to the most directly
comparable U.S. GAAP measure because it is unable to predict with
reasonable certainty the ultimate outcome of certain significant
items without unreasonable effort. These items include, but are not
limited to, acquisition-related expenses including those related to
the recently closed Meda transaction, restructuring expenses, asset
impairments, litigation settlements, changes to contingent
consideration and certain other gains or losses. These items are
uncertain, depend on various factors, and could have a material
impact on U.S. GAAP reported results for the guidance period.
Reconciliation of Adjusted Earnings and Adjusted
EPS
Below is a reconciliation of U.S. GAAP net earnings attributable
to Mylan N.V. and U.S. GAAP diluted EPS to adjusted earnings
attributable to Mylan N.V. and adjusted EPS for the three and six
months ended June 30, 2016 compared to the respective prior
year period:
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
(In millions,
except per share amounts)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
U.S. GAAP net
earnings attributable to Mylan N.V. and U.S. GAAP diluted
EPS
|
$
|
168.4
|
|
|
$
|
0.33
|
|
|
$
|
167.8
|
|
|
$
|
0.32
|
|
|
$
|
182.3
|
|
|
$
|
0.36
|
|
|
$
|
224.4
|
|
|
$
|
0.46
|
|
Purchase accounting
related amortization (primarily included in cost of
sales)
|
255.4
|
|
|
|
|
246.6
|
|
|
|
|
504.7
|
|
|
|
|
390.6
|
|
|
|
Litigation
settlements, net
|
(0.1)
|
|
|
|
|
(0.9)
|
|
|
|
|
(1.6)
|
|
|
|
|
16.8
|
|
|
|
Interest
expense
|
7.7
|
|
|
|
|
16.2
|
|
|
|
|
13.4
|
|
|
|
|
28.4
|
|
|
|
Non-cash accretion of
contingent consideration liability
|
10.3
|
|
|
|
|
9.6
|
|
|
|
|
20.3
|
|
|
|
|
18.8
|
|
|
|
Clean energy
investments pre-tax loss (a)
|
20.1
|
|
|
|
|
21.7
|
|
|
|
|
45.6
|
|
|
|
|
44.2
|
|
|
|
Acquisition related
costs (primarily included in other expense, net)
(b)
|
174.6
|
|
|
|
|
72.6
|
|
|
|
|
236.2
|
|
|
|
|
151.4
|
|
|
|
Restructuring and other special items included
in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
11.0
|
|
|
|
|
6.7
|
|
|
|
|
26.2
|
|
|
|
|
14.7
|
|
|
|
Research and
development expense (c)
|
10.4
|
|
|
|
|
—
|
|
|
|
|
76.5
|
|
|
|
|
17.9
|
|
|
|
Selling, general and
administrative expense
|
12.2
|
|
|
|
|
24.9
|
|
|
|
|
19.0
|
|
|
|
|
32.7
|
|
|
|
Other expense,
net
|
0.5
|
|
|
|
|
1.1
|
|
|
|
|
2.7
|
|
|
|
|
8.1
|
|
|
|
Tax effect of the
above items and other income tax related items
|
(78.1)
|
|
|
|
|
(92.0)
|
|
|
|
|
(146.6)
|
|
|
|
|
(164.6)
|
|
|
|
Adjusted net earnings
attributable to Mylan N.V. and adjusted diluted EPS
|
$
|
592.4
|
|
|
$
|
1.16
|
|
|
$
|
474.3
|
|
|
$
|
0.91
|
|
|
$
|
978.7
|
|
|
$
|
1.92
|
|
|
$
|
783.4
|
|
|
$
|
1.62
|
|
Weighted average
diluted ordinary shares outstanding
|
509.7
|
|
|
|
|
521.9
|
|
|
|
|
509.6
|
|
|
|
|
482.8
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Adjustment represents
exclusion of the pre-tax loss related to Mylan's clean energy
investments and related financing, the activities of which qualify
for income tax credits under Section 45 of the Code. The amount is
included in other expense, net in the Condensed Consolidated
Statements of Operations.
|
(b)
|
Acquisition related
costs primarily relate to ongoing acquisition and integration
activities. Acquisition related costs included in other expense,
net include approximately $84.2 million of unrealized
mark-to-market losses related to the Company's SEK non-designated
foreign currency contracts and approximately $37.9 million and
$45.2 million related to the amortization and write off of deferred
financing fees related to the termination of the 2016 Bridge Credit
Agreement for the three and six months ended June 30, 2016,
respectively. Acquisition related costs for the three and six
months ended June 30, 2016, also includes approximately $12.5
million of interest expense, net of interest income, related to the
issuance of $1.00 billion aggregate principal amount of 2.500%
Senior Notes due 2019, $2.25 billion aggregate principal amount of
3.150% Senior Notes due 2021, $2.25 billion aggregate principal
amount of 3.950% Senior Notes due 2026 and $1.00 billion aggregate
principal amount of 5.250% Senior Notes due 2046 (collectively, the
"June 2016 Senior Notes") for the period prior to the anticipated
completion date of the Offer.
|
(c)
|
R&D expense
includes a $45 million upfront payment to Momenta and $15 million
of milestone payments to Theravance Biopharma, Inc. for the six
months ended June 30, 2016. In addition, included in this amount
for the three and six months ended June 30, 2016 is approximately
$9.4 million and $13.3 million, respectively, of R&D expense
incurred related to the Company's collaboration with
Momenta.
|
Below is a reconciliation of U.S. GAAP net earnings attributable
to Mylan N.V. to EBITDA and adjusted EBITDA for the three and six
months ended June 30, 2016 compared to the respective prior
year period (in millions):
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
U.S. GAAP net
earnings attributable to Mylan N.V
|
$
|
168.4
|
|
|
$
|
167.8
|
|
|
$
|
182.3
|
|
|
$
|
224.4
|
|
Add
adjustments:
|
|
|
|
|
|
|
|
Net contribution
attributable to the noncontrolling interest and equity method
investments
|
24.9
|
|
|
25.1
|
|
|
55.8
|
|
|
49.8
|
|
Income
taxes
|
34.7
|
|
|
12.8
|
|
|
39.8
|
|
|
17.5
|
|
Interest
expense
|
90.3
|
|
|
93.9
|
|
|
160.6
|
|
|
173.4
|
|
Depreciation and
amortization
|
303.4
|
|
|
258.7
|
|
|
600.5
|
|
|
433.7
|
|
EBITDA
|
$
|
621.7
|
|
|
$
|
558.3
|
|
|
$
|
1,039.0
|
|
|
$
|
898.8
|
|
Add / (deduct)
adjustments:
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
25.4
|
|
|
15.9
|
|
|
51.9
|
|
|
50.3
|
|
Litigation
settlements, net
|
(0.1)
|
|
|
(0.9)
|
|
|
(1.6)
|
|
|
16.8
|
|
Restructuring & other special
items
|
174.4
|
|
|
120.2
|
|
|
315.8
|
|
|
232.1
|
|
Adjusted
EBITDA
|
$
|
821.4
|
|
|
$
|
693.5
|
|
|
$
|
1,405.1
|
|
|
$
|
1,198.0
|
|
About Mylan
Mylan is a global pharmaceutical company committed to setting
new standards in healthcare. Working together around the world to
provide 7 billion people access to high quality medicine, we
innovate to satisfy unmet needs; make reliability and service
excellence a habit; do what's right, not what's easy; and impact
the future through passionate global leadership. We offer a growing
portfolio of more than 2,700 generic and branded pharmaceuticals,
including antiretroviral therapies on which approximately 50% of
people being treated for HIV/AIDS in the developing world depend.
We market our products in more than 165 countries and territories.
Our global R&D and manufacturing platform includes more than 50
facilities, and we are one of the world's largest producers of
active pharmaceutical ingredients. Every member of our more than
40,000-strong workforce is dedicated to creating better health for
a better world, one person at a time. Learn more at mylan.com.
FORWARD-LOOKING STATEMENTS
This release contains "forward-looking statements." These
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements may include, without limitation,
statements that, given its performance to date this year and its
current trajectory, Mylan is committed to its 2016 adjusted diluted
EPS guidance range of $4.85 to $5.15,
the acquisition of Meda AB (publ.) ("Meda") by Mylan (the "Meda
Transaction"), as well as the Renaissance topicals transaction
which Mylan completed in June, continue to build on Mylan's unique
global platform to create even greater scale, breadth and diversity
across products, geographies and sales channels; Mylan sees
significant opportunities to further differentiate Mylan among its
customers and patients as Mylan brings the Meda and Renaissance
topicals transaction assets together; and, as Mylan looks to the
future, led by its strong and dedicated board and leadership team,
it continues to be well-positioned to deliver exceptional value to
shareholders and other stakeholders. These may often be identified
by the use of words such as "will," "may," "could," "should,"
"would," "project," "believe," "anticipate," "expect," "plan,"
"estimate," "forecast," "potential," "intend," "continue," "target"
and variations of these words or comparable words. Because
forward-looking statements inherently involve risks and
uncertainties, actual future results may differ materially from
those expressed or implied by such forward-looking statements.
Factors that could cause or contribute to such differences include,
but are not limited to: uncertainties related to the Meda
Transaction; the possibility that Mylan will not be able to
repurchase, repay or refinance Meda's outstanding debt obligations
on favorable terms or at all; the ability to meet expectations
regarding the accounting and tax treatments of the EPD Transaction
and the Meda Transaction; changes in relevant tax and other laws,
including but not limited to changes in the U.S. tax code and
healthcare and pharmaceutical laws and regulations in the U.S. and
abroad; the integration of the EPD Business and Meda being more
difficult, time-consuming, or costly than expected; operating
costs, customer loss, and business disruption (including, without
limitation, difficulties in maintaining relationships with
employees, customers, clients, or suppliers) being greater than
expected following the EPD Transaction and the Meda Transaction;
the retention of certain key employees of the EPD Business and Meda
being difficult; the possibility that Mylan may be unable to
achieve expected synergies and operating efficiencies in connection
with the EPD Transaction and the Meda Transaction within the
expected time-frames or at all and to successfully integrate the
EPD Business and Meda; expected or targeted future financial and
operating performance and results; the capacity to bring new
products to market, including but not limited to where Mylan uses
its business judgment and decides to manufacture, market, and/or
sell products, directly or through third parties, notwithstanding
the fact that allegations of patent infringement(s) have not been
finally resolved by the courts (i.e., an "at-risk launch"); any
regulatory, legal, or other impediments to Mylan's ability to bring
new products to market; success of clinical trials and Mylan's
ability to execute on new product opportunities; any changes in or
difficulties with our inventory of, and our ability to manufacture
and distribute, the EpiPen® Auto-Injector to meet anticipated
demand; the scope, timing, and outcome of any ongoing legal
proceedings and the impact of any such proceedings on financial
condition, results of operations, and/or cash flows; the ability to
protect intellectual property and preserve intellectual property
rights; the effect of any changes in customer and supplier
relationships and customer purchasing patterns; the ability to
attract and retain key personnel; changes in third-party
relationships; the impact of competition; changes in the economic
and financial conditions of the businesses of Mylan; the inherent
challenges, risks, and costs in identifying, acquiring, and
integrating complementary or strategic acquisitions of other
companies, products, or assets and in achieving anticipated
synergies; uncertainties and matters beyond the control of
management; and inherent uncertainties involved in the estimates
and judgments used in the preparation of financial statements, and
the providing of estimates of financial measures, in accordance
with U.S. GAAP and related standards or on an adjusted basis. For
more detailed information on the risks and uncertainties associated
with Mylan's business activities, see the risks described in
Mylan's Annual Report on Form 10-K for the year ended December 31, 2015, as amended, Mylan's Quarterly
Report on Form 10-Q for the quarter ended March 31, 2016, and our other filings with the
Securities and Exchange Commission (the "SEC"). These risks and
uncertainties also include those risks and uncertainties that are
discussed in the offer document that was approved by the Swedish
Financial Supervisory Authority and published by Mylan on
June 16, 2016 (the "Offer Document"),
the Registration Statement on Form S-4 which was declared effective
on June 16, 2016, and the EU
Prospectus that was approved by the Netherlands Authority for the
Financial Markets and published by Mylan on June 16, 2016 (the "EU Prospectus"). On
July 21, 2016, Mylan published
supplements to each of the Offer Document and the EU Prospectus.
You can access Mylan's filings with the SEC through the SEC website
at www.sec.gov, and Mylan strongly encourages you to do so. Mylan
undertakes no obligation to update any statements herein for
revisions or changes after the date of this release.
Mylan N.V. and
Subsidiaries
Condensed
Consolidated Statements of Operations
(Unaudited; in
millions, except per share amounts)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues:
|
|
|
|
|
|
|
|
Net sales
|
$
|
2,539.9
|
|
|
$
|
2,357.0
|
|
|
$
|
4,716.0
|
|
|
$
|
4,211.6
|
|
Other
revenues
|
20.8
|
|
|
14.7
|
|
|
36.0
|
|
|
31.8
|
|
Total
revenues
|
2,560.7
|
|
|
2,371.7
|
|
|
4,752.0
|
|
|
4,243.4
|
|
Cost of
sales
|
1,389.0
|
|
|
1,363.6
|
|
|
2,673.3
|
|
|
2,405.2
|
|
Gross
profit
|
1,171.7
|
|
|
1,008.1
|
|
|
2,078.7
|
|
|
1,838.2
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
179.5
|
|
|
168.2
|
|
|
433.1
|
|
|
338.1
|
|
Selling, general and
administrative
|
581.4
|
|
|
564.2
|
|
|
1,130.7
|
|
|
1,047.4
|
|
Litigation
settlements, net
|
(0.1)
|
|
|
(0.9)
|
|
|
(1.6)
|
|
|
16.8
|
|
Total operating
expenses
|
760.8
|
|
|
731.5
|
|
|
1,562.2
|
|
|
1,402.3
|
|
Earnings from
operations
|
410.9
|
|
|
276.6
|
|
|
516.5
|
|
|
435.9
|
|
Interest
expense
|
90.3
|
|
|
93.9
|
|
|
160.6
|
|
|
173.4
|
|
Other expense,
net
|
117.5
|
|
|
2.0
|
|
|
133.8
|
|
|
20.5
|
|
Earnings before
income taxes and noncontrolling interest
|
203.1
|
|
|
180.7
|
|
|
222.1
|
|
|
242.0
|
|
Income tax
provision
|
34.7
|
|
|
12.8
|
|
|
39.8
|
|
|
17.5
|
|
Net
earnings
|
168.4
|
|
|
167.9
|
|
|
182.3
|
|
|
224.5
|
|
Net earnings
attributable to the noncontrolling interest
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
Net earnings
attributable to Mylan N.V. ordinary shareholders
|
$
|
168.4
|
|
|
$
|
167.8
|
|
|
$
|
182.3
|
|
|
$
|
224.4
|
|
Earnings per ordinary
share attributable to Mylan N.V. ordinary shareholders:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.33
|
|
|
$
|
0.34
|
|
|
$
|
0.37
|
|
|
$
|
0.49
|
|
Diluted
|
$
|
0.33
|
|
|
$
|
0.32
|
|
|
$
|
0.36
|
|
|
$
|
0.46
|
|
Weighted average
ordinary shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
504.4
|
|
|
490.1
|
|
|
497.1
|
|
|
454.0
|
|
Diluted
|
509.7
|
|
|
521.9
|
|
|
509.6
|
|
|
482.8
|
|
Mylan N.V. and
Subsidiaries Condensed Consolidated Balance
Sheets
(Unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
December 31,
2015
|
ASSETS
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
|
6,361.9
|
|
|
$
|
1,236.0
|
|
Accounts receivable,
net
|
|
|
|
2,917.4
|
|
|
2,689.1
|
|
Inventories
|
|
|
|
2,191.3
|
|
|
1,951.0
|
|
Other current
assets
|
|
|
|
716.1
|
|
|
596.6
|
|
Total current
assets
|
|
|
|
12,186.7
|
|
|
6,472.7
|
|
Intangible assets,
net
|
|
|
|
7,716.5
|
|
|
7,221.9
|
|
Goodwill
|
|
|
|
5,830.2
|
|
|
5,380.1
|
|
Other non-current
assets
|
|
|
|
3,102.9
|
|
|
3,193.0
|
|
Total
assets
|
|
|
|
$
|
28,836.3
|
|
|
$
|
22,267.7
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
$
|
3,774.6
|
|
|
$
|
4,122.2
|
|
Long-term
debt
|
|
|
|
12,772.8
|
|
|
6,295.6
|
|
Other non-current
liabilities
|
|
|
|
1,957.6
|
|
|
2,084.1
|
|
Total
liabilities
|
|
|
|
18,505.0
|
|
|
12,501.9
|
|
Noncontrolling
interest
|
|
|
|
1.4
|
|
|
1.4
|
|
Mylan N.V.
shareholders' equity
|
|
|
|
10,329.9
|
|
|
9,764.4
|
|
Total liabilities and
equity
|
|
|
|
$
|
28,836.3
|
|
|
$
|
22,267.7
|
|
Mylan N.V. and
Subsidiaries
Reconciliation of
Non-GAAP Financial Measures
(Unaudited; in
millions)
|
Summary of Total
Revenues by Segment
|
|
|
Three Months
Ended
|
|
June
30,
|
|
2016
|
|
2015
|
|
%
Change
|
|
2016
Currency
Impact (1)
|
|
2016
Constant
Currency
Revenues (2)
|
|
%
Change
|
Generics:
|
|
|
|
|
|
|
|
|
|
|
|
Third party net
sales
|
|
|
|
|
|
|
|
|
|
|
|
North America
(3)
|
$
|
1,010.0
|
|
|
$
|
948.5
|
|
|
6
|
%
|
|
$
|
4.8
|
|
|
$
|
1,014.8
|
|
|
7
|
%
|
Europe
|
604.2
|
|
|
571.0
|
|
|
6
|
%
|
|
(5.6)
|
|
|
598.6
|
|
|
5
|
%
|
Rest of World
(3)
|
523.2
|
|
|
535.6
|
|
|
(2)
|
%
|
|
1.0
|
|
|
524.2
|
|
|
(2)
|
%
|
Total third party net
sales
|
2,137.4
|
|
|
2,055.1
|
|
|
4
|
%
|
|
0.2
|
|
|
2,137.6
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other third party
revenues
|
10.2
|
|
|
8.6
|
|
|
19
|
%
|
|
—
|
|
|
10.2
|
|
|
19
|
%
|
Total third party
revenues
|
2,147.6
|
|
|
2,063.7
|
|
|
4
|
%
|
|
0.2
|
|
|
2,147.8
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment sales
(4)
|
(0.4)
|
|
|
2.3
|
|
|
|
NM
|
|
0.1
|
|
|
(0.3)
|
|
|
|
NM
|
Generics total
revenues
|
2,147.2
|
|
|
2,066.0
|
|
|
4
|
%
|
|
0.3
|
|
|
2,147.5
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty:
|
|
|
|
|
|
|
|
|
|
|
|
Third party net
sales
|
402.5
|
|
|
301.9
|
|
|
33
|
%
|
|
—
|
|
|
402.5
|
|
|
33
|
%
|
Other third party
revenues
|
10.6
|
|
|
6.1
|
|
|
74
|
%
|
|
—
|
|
|
10.6
|
|
|
74
|
%
|
Total third party
revenues
|
413.1
|
|
|
308.0
|
|
|
34
|
%
|
|
—
|
|
|
413.1
|
|
|
34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment sales
(4)
|
3.1
|
|
|
2.6
|
|
|
|
NM
|
|
—
|
|
|
3.1
|
|
|
|
NM
|
Specialty total
revenues
|
416.2
|
|
|
310.6
|
|
|
34
|
%
|
|
—
|
|
|
416.2
|
|
|
34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Elimination of
intersegment sales (4)
|
(2.7)
|
|
|
(4.9)
|
|
|
|
NM
|
|
—
|
|
|
(2.7)
|
|
|
|
NM
|
Consolidated total
revenues
|
$
|
2,560.7
|
|
|
$
|
2,371.7
|
|
|
8
|
%
|
|
$
|
0.3
|
|
|
$
|
2,561.0
|
|
|
8
|
%
|
|
Six Months
Ended
|
|
June
30,
|
|
2016
|
|
2015
|
|
%
Change
|
|
2016
Currency
Impact (1)
|
|
2016
Constant
Currency
Revenues (2)
|
|
%
Change
|
Generics:
|
|
|
|
|
|
|
|
|
|
|
|
Third party net
sales
|
|
|
|
|
|
|
|
|
|
|
|
North America
(3)
|
$
|
1,929.7
|
|
|
$
|
1,803.5
|
|
|
7
|
%
|
|
$
|
12.0
|
|
|
$
|
1,941.7
|
|
|
8
|
%
|
Europe
|
1,191.9
|
|
|
977.3
|
|
|
22
|
%
|
|
2.3
|
|
|
1,194.2
|
|
|
22
|
%
|
Rest of World
(3)
|
944.0
|
|
|
917.9
|
|
|
3
|
%
|
|
18.4
|
|
|
962.4
|
|
|
5
|
%
|
Total third party net
sales
|
4,065.6
|
|
|
3,698.7
|
|
|
10
|
%
|
|
32.7
|
|
|
4,098.3
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other third party
revenues
|
18.8
|
|
|
20.2
|
|
|
(7)
|
%
|
|
0.3
|
|
|
19.1
|
|
|
(5)
|
%
|
Total third party
revenues
|
4,084.4
|
|
|
3,718.9
|
|
|
10
|
%
|
|
33.0
|
|
|
4,117.4
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment sales
(4)
|
2.2
|
|
|
3.8
|
|
|
|
NM
|
|
0.2
|
|
|
2.4
|
|
|
|
NM
|
Generics total
revenues
|
4,086.6
|
|
|
3,722.7
|
|
|
10
|
%
|
|
33.2
|
|
|
4,119.8
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty:
|
|
|
|
|
|
|
|
|
|
|
|
Third party net
sales
|
650.4
|
|
|
512.9
|
|
|
27
|
%
|
|
—
|
|
|
650.4
|
|
|
27
|
%
|
Other third party
revenues
|
17.2
|
|
|
11.6
|
|
|
48
|
%
|
|
—
|
|
|
17.2
|
|
|
48
|
%
|
Total third party
revenues
|
667.6
|
|
|
524.5
|
|
|
27
|
%
|
|
—
|
|
|
667.6
|
|
|
27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment sales
(4)
|
6.4
|
|
|
4.6
|
|
|
|
NM
|
|
—
|
|
|
6.4
|
|
|
|
NM
|
Specialty total
revenues
|
674.0
|
|
|
529.1
|
|
|
27
|
%
|
|
—
|
|
|
674.0
|
|
|
27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Elimination of
intersegment sales (4)
|
(8.6)
|
|
|
(8.4)
|
|
|
|
NM
|
|
(0.2)
|
|
|
(8.8)
|
|
|
|
NM
|
Consolidated total
revenues
|
$
|
4,752.0
|
|
|
$
|
4,243.4
|
|
|
12
|
%
|
|
$
|
33.0
|
|
|
$
|
4,785.0
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
(1)
|
Currency impact is
shown as unfavorable (favorable).
|
(2)
|
The constant currency
revenue change is derived by translating third party net sales for
the current period at prior year comparative period exchange
rates.
|
(3)
|
Beginning in the
first quarter of 2016, the Company reclassified sales from its
Brazilian operation from Rest of World to North America. The amount
reclassified for the three and six months ended June 30, 2015 was
approximately $11.1 million and $21.3 million,
respectively.
|
(4)
|
The percentage
changes in intersegment sales are considered not meaningful (or,
"NM") in terms of the Company's total revenue as intersegment sales
eliminate in consolidation.
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
U.S. GAAP cost of
sales
|
$
|
1,389.0
|
|
|
$
|
1,363.6
|
|
|
$
|
2,673.3
|
|
|
$
|
2,405.2
|
|
Deduct:
|
|
|
|
|
|
|
|
Purchase accounting
related amortization
|
(249.7)
|
|
|
(242.7)
|
|
|
(493.3)
|
|
|
(382.9)
|
|
Acquisition related
costs
|
(12.8)
|
|
|
(26.5)
|
|
|
(31.3)
|
|
|
(38.8)
|
|
Restructuring and
other special items
|
(11.0)
|
|
|
(6.7)
|
|
|
(26.2)
|
|
|
(14.7)
|
|
Adjusted cost of
sales
|
$
|
1,115.5
|
|
|
$
|
1,087.7
|
|
|
$
|
2,122.5
|
|
|
$
|
1,968.8
|
|
|
|
|
|
|
|
|
|
Adjusted gross profit
(a)
|
$
|
1,445.2
|
|
|
$
|
1,284.0
|
|
|
$
|
2,629.5
|
|
|
$
|
2,274.6
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin
(a)
|
56
|
%
|
|
54
|
%
|
|
55
|
%
|
|
54
|
%
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
U.S. GAAP
R&D
|
$
|
179.5
|
|
|
$
|
168.2
|
|
|
$
|
433.1
|
|
|
$
|
338.1
|
|
Deduct:
|
|
|
|
|
|
|
|
Acquisition related
costs
|
(0.1)
|
|
|
(0.5)
|
|
|
(0.2)
|
|
|
(0.5)
|
|
Restructuring &
other special items
|
(10.4)
|
|
|
—
|
|
|
(76.5)
|
|
|
(17.9)
|
|
Adjusted
R&D
|
$
|
169.0
|
|
|
$
|
167.7
|
|
|
$
|
356.4
|
|
|
$
|
319.7
|
|
|
|
|
|
|
|
|
|
Adjusted R&D as %
of total revenues
|
7
|
%
|
|
7
|
%
|
|
8
|
%
|
|
8
|
%
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
U.S. GAAP
SG&A
|
$
|
581.4
|
|
|
$
|
564.2
|
|
|
$
|
1,130.7
|
|
|
$
|
1,047.4
|
|
Deduct:
|
|
|
|
|
|
|
|
Acquisition related
costs
|
(27.0)
|
|
|
(33.8)
|
|
|
(62.7)
|
|
|
(100.3)
|
|
Restructuring and
other special items
|
(12.2)
|
|
|
(24.9)
|
|
|
(19.0)
|
|
|
(32.7)
|
|
Adjusted
SG&A
|
$
|
542.2
|
|
|
$
|
505.5
|
|
|
$
|
1,049.0
|
|
|
$
|
914.4
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A as
% of total revenues
|
21
|
%
|
|
21
|
%
|
|
22
|
%
|
|
22
|
%
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
U.S. GAAP total
operating expenses
|
$
|
760.8
|
|
|
$
|
731.5
|
|
|
$
|
1,562.2
|
|
|
$
|
1,402.3
|
|
Add /
(Deduct):
|
|
|
|
|
|
|
|
Litigation
settlements, net
|
0.1
|
|
|
0.9
|
|
|
1.6
|
|
|
(16.8)
|
|
R&D
adjustments
|
(10.5)
|
|
|
(0.5)
|
|
|
(76.7)
|
|
|
(18.4)
|
|
SG&A
adjustments
|
(39.2)
|
|
|
(58.7)
|
|
|
(81.7)
|
|
|
(132.9)
|
|
Adjusted total
operating expenses
|
$
|
711.2
|
|
|
$
|
673.2
|
|
|
$
|
1,405.4
|
|
|
$
|
1,234.2
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
from operations (b)
|
$
|
734.0
|
|
|
$
|
610.8
|
|
|
$
|
1,224.1
|
|
|
$
|
1,040.4
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
U.S. GAAP interest
expense
|
$
|
90.3
|
|
|
$
|
93.9
|
|
|
$
|
160.6
|
|
|
$
|
173.4
|
|
Deduct:
|
|
|
|
|
|
|
|
Interest expense
related to clean energy
investments
|
(3.6)
|
|
|
(4.1)
|
|
|
(7.4)
|
|
|
(8.4)
|
|
Accretion of
contingent consideration liability
|
(10.3)
|
|
|
(9.6)
|
|
|
(20.3)
|
|
|
(18.8)
|
|
Acquisition related
costs
|
(21.6)
|
|
|
(11.9)
|
|
|
(25.9)
|
|
|
(11.9)
|
|
Other special
items
|
(4.0)
|
|
|
(12.0)
|
|
|
(5.9)
|
|
|
(19.9)
|
|
Adjusted interest
expense
|
$
|
50.8
|
|
|
$
|
56.3
|
|
|
$
|
101.1
|
|
|
$
|
114.4
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
U.S. GAAP other
expense, net
|
$
|
117.5
|
|
|
$
|
2.0
|
|
|
$
|
133.8
|
|
|
$
|
20.5
|
|
(Add) /
Deduct:
|
|
|
|
|
|
|
|
Clean energy
investments pre-tax loss
|
(20.1)
|
|
|
(21.7)
|
|
|
(45.6)
|
|
|
(44.2)
|
|
Purchase accounting
related amortization
|
(5.6)
|
|
|
(3.9)
|
|
|
(11.3)
|
|
|
(7.7)
|
|
Acquisition related
costs
|
(84.2)
|
|
|
—
|
|
|
(84.2)
|
|
|
—
|
|
Financing related
costs
|
(30.2)
|
|
|
—
|
|
|
(33.2)
|
|
|
—
|
|
Other
items
|
0.6
|
|
|
(1.1)
|
|
|
(1.6)
|
|
|
(8.1)
|
|
Adjusted other
income
|
$
|
(22.0)
|
|
|
$
|
(24.7)
|
|
|
$
|
(42.1)
|
|
|
$
|
(39.5)
|
|
|
Three Months
Ended
|
|
Six months
ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
U.S. GAAP net cash
provided by
operating activities
|
$
|
416.6
|
|
|
$
|
114.7
|
|
|
$
|
497.1
|
|
|
$
|
381.7
|
|
Add /
(Deduct):
|
|
|
|
|
|
|
|
Financing related
expenses
|
66.9
|
|
|
9.9
|
|
|
66.9
|
|
|
9.9
|
|
Acquisition related
costs
|
26.8
|
|
|
16.3
|
|
|
88.3
|
|
|
84.3
|
|
R&D
expense
|
—
|
|
|
12.0
|
|
|
60.0
|
|
|
12.0
|
|
Income tax
items
|
(25.8)
|
|
|
—
|
|
|
(25.8)
|
|
|
—
|
|
Other
|
—
|
|
|
1.1
|
|
|
—
|
|
|
2.0
|
|
Adjusted cash
provided by operating activities
|
$
|
484.5
|
|
|
$
|
154.0
|
|
|
$
|
686.5
|
|
|
$
|
489.9
|
|
|
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
Capital
expenditures
|
(69.2)
|
|
|
(73.9)
|
|
|
(121.0)
|
|
|
(122.0)
|
|
Adjusted free cash
flow
|
$
|
415.3
|
|
|
$
|
80.1
|
|
|
$
|
565.5
|
|
|
$
|
367.9
|
|
|
|
|
|
|
|
|
|
(a)
|
U.S. GAAP gross
profit is calculated as U.S. GAAP total revenues less U.S. GAAP
cost of sales. U.S. GAAP gross margin is calculated as U.S. GAAP
gross profit divided by U.S. GAAP total revenues. Adjusted gross
profit is calculated as total revenues less adjusted cost of sales.
Adjusted gross margin is calculated as adjusted gross profit
divided by total revenues.
|
(b)
|
U.S. GAAP earnings
from operations is calculated as U.S. GAAP gross profit less U.S.
GAAP total operating expenses. Adjusted earnings from operations is
calculated as adjusted gross profit less adjusted total operating
expenses.
|
(c)
|
Adjustment represents
exclusion of activity related to Mylan's clean energy investments,
the activities of which qualify for income tax credits under
section 45 of the Code.
|
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SOURCE Mylan N.V.