Exhibit 99.1
AMNEAL PHARMACEUTICALS LLC AND SUBSIDIARIES
FINANCIAL STATEMENTS
AMNEAL PHARMACEUTICALS LLC AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEET | ||||||||
(Unaudited; in thousands except unit amounts) | ||||||||
March 31, 2018 | December 31, 2017 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 48,224 | $ | 74,166 | ||||
Restricted cash | 4,393 | 3,756 | ||||||
Trade accounts receivable – net | 346,680 | 351,367 | ||||||
Inventories | 327,886 | 284,038 | ||||||
Prepaid expenses and other current assets | 37,299 | 42,396 | ||||||
Related-party receivables | 10,982 | 16,210 | ||||||
Total current assets | 775,464 | 771,933 | ||||||
Property, plant, and equipment – net | 489,947 | 486,758 | ||||||
Goodwill | 26,338 | 26,444 | ||||||
Intangible assets – net | 48,166 | 44,599 | ||||||
Other assets | 18,873 | 12,155 | ||||||
Total assets | $ | 1,358,788 | $ | 1,341,889 | ||||
Liabilities and members’ deficit | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 84,221 | $ | 70,013 | ||||
Accrued liabilities | 79,887 | 78,742 | ||||||
Accrued returns allowance | 49,084 | 45,175 | ||||||
Current portion of financing obligations | 244 | 311 | ||||||
Taxes payable | 1,076 | 849 | ||||||
Revolving credit facility | 75,000 | 75,000 | ||||||
Current portion of long-term debt | 14,171 | 14,171 | ||||||
Related-party payables | 9,368 | 12,622 | ||||||
Total current liabilities | 313,051 | 296,883 | ||||||
Long-term debt, net | 1,352,901 | 1,355,274 | ||||||
Long-term portion of financing obligations | 39,286 | 39,987 | ||||||
Deferred income taxes | 2,091 | 2,491 | ||||||
Other long-term liabilities | 4,726 | 7,793 | ||||||
Related party payable – long-term | 15,552 | 15,043 | ||||||
Total long-term liabilities | $ | 1,414,556 | $ | 1,420,588 | ||||
Members’ equity (189,000,000 units authorized, issued and outstanding at March 31, 2018 and December 31, 2017) | 2,716 | 2,716 | ||||||
Additional paid-in capital | — | 8,562 | ||||||
Accumulated other comprehensive loss | (24,189) | (14,232) | ||||||
Accumulated deficit | (357,980) | (382,785) | ||||||
Subtotal – members’ deficit | (379,453) | (385,739) | ||||||
Non-controlling interest | 10,634 | 10,157 | ||||||
Total members’ deficit | (368,819) | (375,582) | ||||||
Total liabilities and members’ deficit | $ | 1,358,788 | $ | 1,341,889 |
AMNEAL PHARMACEUTICALS LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME | |||||||||
(Unaudited; in thousands) | |||||||||
Three months ended | |||||||||
March 31, 2018 | March 31, 2017 | ||||||||
Net revenue | $ | 275,189 | $ | 225,681 | |||||
Cost of goods sold | 121,371 | 104,435 | |||||||
Depreciation and amortization | 9,223 | 5,230 | |||||||
Gross profit | 144,595 | 116,016 | |||||||
Selling, general, and administrative | 23,739 | 26,360 | |||||||
Research and development | 40,063 | 35,391 | |||||||
Intellectual property legal development expenses | 4,576 | 6,167 | |||||||
Depreciation | 5,528 | 5,370 | |||||||
Acquisition and transaction-related expenses | 7,135 | — | |||||||
Operating profit | 63,554 | 42,728 | |||||||
Interest expense | (21,051) | (14,161) | |||||||
Foreign exchange gain | 8,565 | 14,597 | |||||||
Other income | 948 | 100 | |||||||
Total other (expense) income , net | (11,538) | 536 | |||||||
Income before tax | 52,016 | 43,264 | |||||||
Income tax provision | 364 | 1,003 | |||||||
Net income | 51,652 | 42,261 | |||||||
Less net income attributable to non-controlling interest | (117) | (408) | |||||||
Net income attributable to Amneal Pharmaceuticals LLC and Subsidiaries | $ | 51,535 | $ | 41,853 |
AMNEAL PHARMACEUTICALS LLC AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited; in thousands) | |||||||
Three months ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Operating activities: | |||||||
Net income | $ | 51,652 | $ | 42,261 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 14,751 | 10,600 | |||||
Unrealized foreign currency gain | (8,327) | (14,245) | |||||
Amortization of debt issuance costs | 1,170 | 942 | |||||
Gain on termination of lease | (3,524) | — | |||||
Deferred tax provision | (512) | (577) | |||||
Inventory provision | 2,845 | 1,137 | |||||
Allowance for doubtful accounts provision | 93 | (120) | |||||
Changes in assets and liabilities: | |||||||
Trade accounts receivable – net | 4,981 | 41,064 | |||||
Inventories | (47,589) | (18,120) | |||||
Prepaid expenses and other current assets | 8,185 | (45) | |||||
Related-party receivables | 5,215 | 4,280 | |||||
Other assets | (6,694) | (200) | |||||
Accounts payable | 14,318 | (382) | |||||
Accrued returns allowance | 3,804 | 2,166 | |||||
Taxes payable | 189 | 653 | |||||
Accrued expenses and other current liabilities | (3,846) | 1,485 | |||||
Other liabilities | 860 | (1,224) | |||||
Related-party payables | (10,542) | (267) | |||||
Net cash provided by operating activities | $ | 27,029 | $ | 69,408 | |||
Investing activities: | |||||||
Purchases of property, plant, and equipment | (19,499) | (24,757) | |||||
Net cash used in investing activities | $ | (19,499 | ) | $ | (24,757 | ) | |
Financing activities: | |||||||
Payments on capital leases | — | (22 | ) | ||||
Repayments on financing obligations | (63 | ) | (61 | ) | |||
Net (payments) borrowings from revolving credit line | — | (25,000 | ) | ||||
Payments on term loan debt | (3,543 | ) | (2,905 | ) | |||
Equity contributions | — | 40 | |||||
Dividend to non-controlling interest | 360 | — | |||||
Distribution to members | (30,000 | ) | — | ||||
Net cash used in financing activities | $ | (33,246 | ) | $ | (27,948 | ) | |
Effect of foreign exchange rate on cash | 411 | 1,080 | |||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (25,305) | 17,783 | |||||
Cash, cash equivalents, and restricted cash – beginning of period | 77,922 | 37,546 | |||||
Cash, cash equivalents, and restricted cash – end of period | $ | 52,617 | $ | 55,329 | |||
Cash, and cash equivalents – end of period | 48,224 | 50,297 | |||||
Restricted cash – end of period | 4,393 | 5,032 | |||||
Cash, cash equivalents, and restricted cash – end of period | $ | 52,617 | $ | 55,329 | |||
Schedule of Non-Cash Investing and Financing Activities: | |||||||
Purchases of property, plant, and equipment | 1,849 | 2,083 | |||||
Additions to intangible assets | 5,000 | — | |||||
Distribution to members | 8,562 | — |