BUENA, N.J., May 08, 2018 (GLOBE NEWSWIRE) -- Teligent, Inc. (NASDAQ:TLGT), a New Jersey-based specialty generic
pharmaceutical company, today announced its financial results for the first quarter ended March 31, 2018.
First Quarter 2018 Highlights
- The Company adopted ASC 606: Revenue from Contracts with Customers ("ASC 606") issued by the Financial Accounting
Standards Board on January 1, 2018. To understand the financial impact of adopting ASC 606, see the Reconciliation of Revenue
(net), Cost of Revenue and Gross Margin table included
- After adoption of ASC 606, total revenue of $14.5 million in the first quarter of 2018, a decrease of 26% over the same
period in 2017. Total revenue was driven primarily by $8.9 million of sales generated by our U.S. generic topical and injectable
pharmaceutical products, a decrease of 34% over the same quarter in 2017 and $4.3 million of international revenues, an increase
of 46% over the same quarter in 2017
- After adoption of ASC 606, gross margin of 36% for the first quarter of 2018, a decrease from the 55% reported in the same
period in 2017
- Operating loss of $3.5 million in the first quarter of 2018, compared to operating income of $3.0 million in the same period
in 2017
- $3.4 million of product development and research expenses in the first quarter of 2018, compared to $3.7 million for the same
period in 2017
- Due to the fluctuation in foreign exchange rates during the first quarter of 2018, we recorded a non-cash gain in the amount
of $1.3 million related to the foreign currency translation of our intercompany loans to three of our wholly-owned subsidiaries;
and other balances held in currencies other than local currency, compared to a non-cash gain in the amount of $1.1 million in the
same period in 2017
- Adjusted EBITDA, before product development and research expenses, in the first quarter of 2018 was $1.9 million, compared to
$8.6 million for the same period in 2017
- Year to date, the Company received approval for four ANDAs in the U.S.
- Year to date, the Company launched four new products in the U.S.
“We are pleased with our solid first quarter 2018 financial results, particularly the performance of our US
portfolio of topical and injectable pharmaceutical products as well as the continued strong performance and further growth
opportunities for our Canadian operations,” said Jason Grenfell-Gardner, President and Chief Executive Officer.
Mr. Grenfell-Gardner continued, “The expansion of our Buena, New Jersey manufacturing facility continues to
progress, achieving two major milestones. I am proud to report the facility went clean on April 20th and manufactured our
first injectable engineering batch on April 24th. In addition, we received four ANDA approvals year to date, Betamethasone
Dipropionate Lotion USP (Augmented) 0.05%, Halobetasol Propionate Ointment, 0.05%, Ciclopirox Shampoo, 1%, and Clobetasol
Propionate Cream USP, 0.05%. Collectively, these four products represent $189.6 million of addressable market per IQVIA
data.”
“We now have 29 ANDAs on file with the US FDA. Based on IQVIA data as of March 2018, these 29 ANDAs represent a
total addressable market of approximately $1.8 billion. We remain confident in the growth of our business, our plans to work
closely with all members of the organization to improve profitability, and our ability to deliver gross margin and EBITDA in line
with our 2018 guidance.” Mr. Grenfell-Gardner concluded.
About Teligent, Inc.
Teligent is a specialty generic pharmaceutical company. Our mission is to be a leading player in the specialty
generic prescription drug market. Learn more on our website www.teligent.com.
Forward-Looking Statements
This press release includes certain “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, plans, objectives, expectations
and intentions, and other statements contained in this press release that are not historical facts and statements identified by
words such as “plan,” “believe,” “continue,” “should” or words of similar meaning. Factors that could cause actual results to
differ materially from these expectations include, but are not limited to: our inability to meet current or future regulatory
requirements in connection with existing or future ANDAs; our inability to achieve profitability; our failure to obtain FDA
approvals as anticipated; our inability to execute and implement our business plan and strategy; the potential lack of market
acceptance of our products; our inability to protect our intellectual property rights; changes in global political, economic,
business, competitive, market and regulatory factors; and our inability to complete successfully future product acquisitions. These
statements are based on our current beliefs or expectations and are inherently subject to various risks and uncertainties,
including those set forth under the caption “Risk Factors” in Teligent, Inc.’s most recent Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and other periodic reports we file with the Securities and Exchange Commission. Teligent, Inc. does not
undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future
events or otherwise, except as required by law.
Non-GAAP Financial Measures
In addition to reporting financial information required in accordance with U.S. generally accepted accounting
principles (GAAP), Teligent is also presenting EBITDA and Adjusted EBITDA which are non-GAAP financial measures. Since EBITDA,
Adjusted EBITDA and Adjusted EBITDA before product development and research costs are non-GAAP financial measures, they should not
be used in isolation or as a substitute for consolidated statements of operations and cash flow data prepared in accordance with
GAAP. In addition, Teligent's definition of Adjusted EBITDA may not be comparable to similarly titled non-GAAP financial measures
reported by other companies.
Adjusted EBITDA, as defined by the Company, is calculated as follows:
Net income (loss), plus:
Depreciation expense
Amortization of intangibles
Loss on impairment
Interest expense, net
Non-cash interest expense
Provision for income taxes
Inventory step up and acquisition costs related to acquisitions
Foreign currency exchange gain/loss
Non-cash expenses, such as share-based compensation expense
The Company believes that Adjusted EBITDA is a meaningful indicator, to both Company management and investors,
of the past and expected ongoing operating performance of the Company. EBITDA is a commonly used and widely accepted measure of
financial performance. Adjusted EBITDA is deemed by the Company to be a useful performance indicator because it includes an add
back of non-cash and non-recurring operating expenses which have little to no bearing on cash flows and may be subject to
uncontrollable factors not reflective of the Company's true operational performance.
While the Company uses EBITDA, Adjusted EBITDA and Adjusted EBITDA before product development and research costs
in managing and analyzing its business and financial condition and believes these non-GAAP financial measures to be useful to
investors in evaluating the Company's performance, it is open to certain shortcomings. EBITDA and Adjusted EBITDA do not take
into account the impact of capital expenditures on either the liquidity or the financial performance of the Company and likewise
omit share-based compensation expenses, which may vary over time and may represent a material portion of overall compensation
expense. Due to the inherent limitations of EBITDA, Adjusted EBITDA and Adjusted EBITDA before product development and
research costs, the Company's management utilizes comparable GAAP financial measures to evaluate the business in conjunction with
EBITDA and Adjusted EBITDA and encourages investors to do likewise.
The Company also presents a non-GAAP financial measure of adjusted net income (loss) and adjusted net income
(loss) per diluted share, to show the adjusted net income when EBITDA adjustments are added back or subtracted out of the
traditional GAAP reported net income (loss). Adjusted diluted earnings per share, as defined by the Company, is equal to
adjusted net income divided by the actual or anticipated diluted share count for the applicable period.
| |
TELIGENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except shares and per share information) |
| |
|
| |
Three months ended March 31, |
| |
2018 |
|
2017 |
| Revenue, net |
$ |
14,545 |
|
|
$ |
19,891 |
|
| |
|
|
|
| Costs and Expenses: |
|
|
|
| Cost of revenues |
9,325 |
|
|
8,957 |
|
| Selling, general and administrative expenses |
5,360 |
|
|
4,299 |
|
| Product development and research expenses |
3,391 |
|
|
3,668 |
|
| Total costs and expenses |
18,076 |
|
|
16,924 |
|
| Operating (loss) income |
(3,531 |
) |
|
2,967 |
|
| |
|
|
|
| Other Income (Expense): |
|
|
|
| Foreign currency exchange gain/(loss) |
1,325 |
|
|
1,079 |
|
| Interest and other expense, net |
(2,572 |
) |
|
(3,132 |
) |
| (Loss) income before income tax expense |
(4,778 |
) |
|
914 |
|
| |
|
|
|
| Income tax expense |
24 |
|
|
83 |
|
| |
|
|
|
| Net (loss) income attributable to common shareholders |
$ |
(4,802 |
) |
|
$ |
831 |
|
| |
|
|
|
| Basic and diluted (loss) income per share |
$ |
(0.09 |
) |
|
$ |
0.02 |
|
| |
|
|
|
| Weighted average shares of common stock outstanding: |
|
|
|
| Basic and diluted shares |
53,458,513 |
|
|
53,195,580 |
|
TELIGENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except shares and per share information)
|
| |
March 31,
2018 |
|
December 31,
2017 |
| |
|
|
(Audited) |
| ASSETS |
|
|
|
| Current assets: |
|
|
|
| Cash and cash equivalents |
$ |
13,235 |
|
|
$ |
26,692 |
|
| Accounts receivable, net |
13,415 |
|
|
18,143 |
|
| Inventories |
17,786 |
|
|
16,075 |
|
| Prepaid expenses and other receivables |
2,631 |
|
|
3,622 |
|
| Total current assets |
47,067 |
|
|
64,532 |
|
| Property, plant and equipment, net |
76,708 |
|
|
68,355 |
|
| Intangible assets, net |
56,588 |
|
|
56,017 |
|
| Goodwill |
452 |
|
|
471 |
|
| Other |
277 |
|
|
611 |
|
| Total assets |
$ |
181,092 |
|
|
$ |
189,986 |
|
| |
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
| Current liabilities: |
|
|
|
| Accounts payable |
$ |
5,937 |
|
|
$ |
10,595 |
|
| Accrued expenses |
11,138 |
|
|
13,502 |
|
| Total current liabilities |
17,075 |
|
|
24,097 |
|
| |
|
|
|
| Convertible 3.75% senior notes, net of debt discount and debt issuance costs (face
of $143,750) |
123,571 |
|
|
120,977 |
|
| Deferred tax liability |
153 |
|
|
159 |
|
| Total liabilities |
140,799 |
|
|
145,233 |
|
| |
|
|
|
| Stockholders’ equity: |
|
|
|
| Common stock, $0.01 par value, 100,000,000 shares
authorized; |
|
|
|
| 53,496,889 and 53,400,281 shares issued and outstanding |
|
|
|
| as of March 31, 2018 and December 31, 2017,
respectively |
554 |
|
|
554 |
|
| Additional paid-in capital |
106,958 |
|
|
106,312 |
|
| Accumulated deficit |
(64,896 |
) |
|
(60,094 |
) |
| Accumulated other comprehensive loss, net of taxes |
(2,323 |
) |
|
(2,019 |
) |
| Total stockholders’ equity |
40,293 |
|
|
44,753 |
|
| Total liabilities and stockholders' equity |
$ |
181,092 |
|
|
$ |
189,986 |
|
TELIGENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2018 and 2017
(in thousands)
|
| |
March 31,
2018 |
|
March 31,
2017 |
| Cash flows from operating activities: |
|
|
|
| Net (loss) income |
$ |
(4,802 |
) |
|
$ |
831 |
|
| Non-cash expenses |
3,865 |
|
|
3,395 |
|
| Changes in operating assets and liabilities |
(2,475 |
) |
|
(2,340 |
) |
| |
|
|
|
| Net cash (used in) provided by operating activities |
(3,412 |
) |
|
1,886 |
|
| |
|
|
|
| Net cash used in investing activities |
(9,758 |
) |
|
(8,551 |
) |
| |
|
|
|
| Net cash provided by financing activities |
— |
|
|
5 |
|
| |
|
|
|
| Effect of exchange rate on cash and cash equivalents |
(287 |
) |
|
132 |
|
| Net decrease in cash and cash equivalents |
(13,170 |
) |
|
(6,660 |
) |
| Cash and cash equivalents at beginning of period |
26,692 |
|
|
66,006 |
|
| |
|
|
|
| Cash and cash equivalents at end of period |
$ |
13,235 |
|
|
$ |
59,478 |
|
TELIGENT, INC. AND SUBSIDIARIES
GROSS TO NET DEDUCTIONS
(in thousands) |
| |
Three months ended March 31, |
| |
2018 |
|
2017 |
| |
|
|
|
| Gross product sales |
$ |
36,548 |
|
|
$ |
54,300 |
|
| |
|
|
|
| Reduction to gross product sales: |
|
|
|
| Chargebacks and billbacks |
16,915 |
|
|
30,015 |
|
| Wholesaler fees for service |
635 |
|
|
— |
|
| Sales discounts and other allowances |
5,762 |
|
|
7,849 |
|
| Total reduction to gross product sales |
23,312 |
|
|
37,864 |
|
| |
|
|
|
| Product sales, net |
13,236 |
|
|
16,436 |
|
| Contract manufacturing product sales |
1,298 |
|
|
3,417 |
|
| Research and development services and other income |
11 |
|
|
38 |
|
| |
|
|
|
| Total revenue, net |
$ |
14,545 |
|
|
$ |
19,891 |
|
TELIGENT, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(in thousands) |
| |
|
| |
Three months ended March 31, |
| |
2018 |
|
2017 |
| |
|
|
|
| Net (loss) income |
$ |
(4,802 |
) |
|
$ |
831 |
|
| |
|
|
|
| Depreciation |
561 |
|
|
395 |
|
| Amortization of intangibles |
791 |
|
|
687 |
|
| Loss on impairment |
22 |
|
|
— |
|
| Interest (income)/expense, net |
(22 |
) |
|
851 |
|
| Non-cash interest expense |
2,594 |
|
|
2,281 |
|
| Provision for income taxes |
24 |
|
|
83 |
|
| EBITDA |
(832 |
) |
|
5,128 |
|
| |
|
|
|
| Foreign currency exchange gain |
(1,325 |
) |
|
(1,079 |
) |
| Non-cash stock-based compensation expense |
620 |
|
|
843 |
|
| Adjusted EBITDA |
(1,537 |
) |
|
4,892 |
|
| |
|
|
|
| Product development and research expenses |
3,391 |
|
|
3,668 |
|
| |
|
|
|
| Adjusted EBITDA, before product development and research expenses |
1,854 |
|
|
8,560 |
|
TELIGENT, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP ADJUSTED NET (LOSS) INCOME
(in thousands, except share and per share information) |
| |
|
| |
Three months ended March 31, |
| |
2018 |
|
2017 |
| |
|
|
|
| Net (loss) income |
$ |
(4,802 |
) |
|
$ |
831 |
|
| |
|
|
|
| Non-cash interest expense |
2,594 |
|
|
2,281 |
|
| Provision for income taxes |
24 |
|
|
83 |
|
| Amortization of intangibles |
791 |
|
|
687 |
|
| Loss on impairment |
22 |
|
|
— |
|
| Foreign currency exchange gain |
(1,325 |
) |
|
(1,079 |
) |
| Non-cash stock-based compensation expense |
620 |
|
|
843 |
|
| Adjusted net (loss) income |
$ |
(2,076 |
) |
|
$ |
3,646 |
|
| |
|
|
|
| Non-GAAP adjusted net (loss) income per diluted share |
$ |
(0.04 |
) |
|
$ |
0.07 |
|
TELIGENT, INC. AND SUBSIDIARIES
RECONCILIATION OF REVENUE, NET, COST OF REVENUES AND GROSS MARGIN
(in thousands) |
| |
|
| |
Three months ended March 31, |
| |
2018 |
|
2018 * |
|
2017 |
| |
|
|
|
|
|
| Revenue, net |
$ |
15,180 |
|
|
$ |
15,180 |
|
|
$ |
19,891 |
|
| Wholesaler fees for service |
635 |
|
|
— |
|
|
— |
|
| Revenue, net |
14,545 |
|
|
15,180 |
|
|
19,891 |
|
| |
|
|
|
|
|
| Cost of revenue |
9,960 |
|
|
9,960 |
|
|
8,957 |
|
| Wholesaler fees for service |
635 |
|
|
— |
|
|
— |
|
| Cost of revenue |
9,325 |
|
|
9,960 |
|
|
8,957 |
|
| |
|
|
|
|
|
| Gross margin |
34 |
% |
|
34 |
% |
|
55 |
% |
| Wholesaler fees for service |
2 |
% |
|
0 |
% |
|
7 |
% |
| Gross margin |
36 |
% |
|
34 |
% |
|
62 |
% |
* These figures represent financial results for the three months ended March 31, 2018 had ASC 606 not been adopted.
