AKRX 27.29+4.56 (20.06%)
Off a few days and 54 cents.....
Posted on our website:
"Akorn Completes 2014 Financial Statement Restatement and Reports Audited 2015 and Restated 2014 Results
- Sets Date for 2016 Annual Meeting
- Affirms 2016 Net Revenue and Earnings per Share Guidance
LAKE FOREST, Ill., May 10, 2016 (GLOBE NEWSWIRE) -- Akorn, Inc. (Nasdaq:AKRX), a leading specialty generic pharmaceutical company, today announced that it has filed its Annual Report on Form 10-K for the fiscal year December 31, 2015 (“Form 10-K”). The Company is now up to date on filing its periodic reports with the Securities and Exchange Commission (the “SEC”). The Company also announced plans to hold its 2016 annual meeting of shareholders on July 1, 2016.
The Company’s comprehensive Form 10-K filed today contains the following:
- consolidated financial statements for the year ended December 31, 2015, and unaudited quarterly financial information for the quarters in 2015; and
- consolidated restated financial statements for the year ended December 31, 2014 and unaudited restated quarterly financial information for the quarters in 2014.
Raj Rai, Akorn’s Chief Executive Officer, said, “The completion of the restatement of 2014 financial statements and the audit of the 2015 financial statements are important milestones for our Company. This allows our Company to shift its focus on executing on the strategic objectives and growth opportunities. I would like to thank the Akorn team members under the leadership of Duane Portwood and Randy Pollard for their perseverance and hard work throughout this process.”
Duane Portwood, Akorn’s Chief Financial Officer, added, “We filed our Annual Report on Form 10-K for 2015 and have scheduled our annual shareholders meeting for July 1, 2016, for compliance with the Listing Rules exception granted by theNASDAQ Listing Panel. As we move forward in 2016, we look forward to completing the remediation of our internal control weaknesses while helping the Company execute on its strategic objectives and growth opportunities.”
Financial Restatement for the Year Ended December 31, 2014
As discussed in the Form 10-K, the Company identified accounting errors primarily associated with rebates and contractual allowances for 2014. Net revenue for 2014 as previously reported of $593 million was overstated by $38 million and is now restated to be $555 million. Income from continuing operations before income taxes for 2014 as previously reported of $59 million was overstated by $34 million and is now restated to be $25 million.
On May 7, 2016, the Audit Committee of the Board of Directors of Akorn, Inc., upon the recommendation of the Company’s management, concluded that the unaudited financial information for the quarterly period ended March 31, 2014 contained an error related to commitment fees incurred to consummate term loan debt. Specifically, the fees were incorrectly expensed in the quarter rather than amortized over the life of the term loan debt. Income from continuing operations before income taxes for the quarter ended March 31, 2014 as previously reported of $16 million is now restated to be $18 million. The unaudited restated quarterly financial information for the quarter ended March 31, 2014 was included in the Form 10-K.
Key Financial Highlights for the Year Ended December 31, 2015
Revenues. Consolidated revenue for 2015 was $985 million, an increase of 77% over 2014 revenue of $555 million (as restated).
Gross Margin. Consolidated gross margin for 2015 was 60.5%, compared to 47.1% (as restated) for 2014. Excluding $6.3 million in costs from amortization of inventory step up and other items, non-GAAP gross margin was 61.1%, up from 51.2% (as restated) in 2014.
EBITDA. Earnings before interest, taxes, depreciation and amortization was $370 million in 2015, compared to $119 million(as restated) in 2014. Adjusted EBITDA, which is a non-GAAP measure used by management to evaluate the continuing operations of the Akorn business, was $460 million in 2015, compared to $182 million (as restated) in 2014. A full reconciliation of adjusted EBITDA adjustments can be found at the end of this press release.
Net Income per Share. Fully diluted earnings per share (EPS) was $1.22 in 2015 compared to $0.13 (as restated) in 2014. Including a net adjustment of $100 million to net income for non-GAAP items, adjusted fully diluted EPS was $2.02 in 2015. Including a net adjustment of $64 million to net income, adjusted fully diluted EPS was $0.63 (as restated) for 2014. Adjustments to net income in 2015 and 2014 included a number of items detailed at the end of this press release. Please refer to this table for a full reconciliation of GAAP to non-GAAP items."
