1
EXHIBIT 1.1
SUPPLEMENTAL INFORMATION
PRINCIPAL FINANCIAL STATEMENTS IN US GAAP
THE FOLLOWING INFORMATION, PREPARED IN ACCORDANCE WITH US GAAP, IS PROVIDED
FOR THE CONVENIENCE OF US SHAREHOLDERS.
GALEN HOLDINGS PUBLIC LIMITED COMPANY
UNAUDITED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS OF US DOLLARS)
<Table>
<Caption>
JUNE 30, SEPTEMBER 30,
2001 2000
--------- -------------
ASSETS
Current Assets:
Cash and cash equivalents.............................. $ 81,509 $113,671
Accounts receivable, net............................... 44,138 44,877
Inventories............................................ 21,083 22,230
Prepaid expense and other assets....................... 14,839 12,982
-------- --------
Total current assets................................. 161,569 193,760
-------- --------
Property, plant and equipment, net........................ 125,188 118,677
Intangible assets, net.................................... 571,337 493,474
-------- --------
Total assets......................................... $858,094 $805,911
======== ========
LIABILITIES
Current Liabilities:
Accounts payable....................................... $ 16,011 $ 13,305
Accrued and other liabilities.......................... 33,628 45,774
Current installments of long-term debt................. 41,124 47,146
Current installments of obligation under capital
leases................................................ 535 525
Income taxes........................................... 6,125 3,567
Deferred consideration................................. -- 7,000
-------- --------
Total current liabilities............................ 97,423 117,317
-------- --------
Other Liabilities:
Long-term debt, excluding current installments......... 287,663 219,575
Long-term obligations under capital leases, excluding
current installments.................................. 679 445
Deferred income taxes.................................. 19,052 14,366
Other non-current liabilities.......................... 7,676 9,763
-------- --------
Total liabilities.................................... 412,493 361,466
-------- --------
Minority interest......................................... 316 176
SHAREHOLDERS' EQUITY
Ordinary shares, par value L0.10 per share; 250,000,000
(September 30, 2000; 250,000,000) shares authorized,
162,719,203 shares issued and outstanding at June 30,
2001, and 158,965,206 issued and outstanding at
September 30, 2000..................................... 26,039 25,498
Additional paid-in capital................................ 409,372 399,656
Retained earnings......................................... 45,774 42,568
Treasury stock............................................ (11,472) (11,950)
Accumulated other comprehensive loss...................... (24,428) (11,503)
-------- --------
Total shareholders' equity........................... 445,285 444,269
-------- --------
Total liabilities and shareholders' equity........... $858,094 $805,911
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</Table>
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2
GALEN HOLDINGS PUBLIC LIMITED COMPANY
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATION
(IN THOUSANDS OF US DOLLARS, EXCEPT PER SHARE DATA)
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30, JUNE 30,
--------------------------- ---------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
REVENUES
Product revenue................... $ 46,092 $ 16,465 $ 132,101 $ 54,104
Service revenue................... 20,186 16,306 59,087 47,378
------------ ------------ ------------ ------------
Total revenues................. 66,278 32,771 191,188 101,482
------------ ------------ ------------ ------------
OPERATING EXPENSES
Cost of sales..................... 21,748 16,723 63,367 48,860
Selling, general and
administrative................. 18,826 3,564 60,842 12,891
Research and development.......... 3,768 2,285 8,990 7,796
Depreciation...................... 2,282 1,941 6,455 5,256
Amortization...................... 6,335 358 19,506 1,489
------------ ------------ ------------ ------------
Total operating expenses....... 52,959 24,871 159,160 76,292
------------ ------------ ------------ ------------
OPERATING INCOME.................... 13,319 7,900 32,028 25,190
------------ ------------ ------------ ------------
OTHER INCOME (EXPENSE)
Interest income................... 962 941 3,802 2,142
Interest expense.................. (5,987) (933) (20,004) (1,975)
------------ ------------ ------------ ------------
Total other income (expense)... (5,025) 8 (16,202) 167
------------ ------------ ------------ ------------
INCOME BEFORE TAXES & MINORITY
INTEREST.......................... 8,294 7,908 15,826 25,357
------------ ------------ ------------ ------------
Provision for income taxes.......... 4,415 2,187 9,306 7,118
Minority interest in earnings of
subsidiaries...................... 41 48 150 111
------------ ------------ ------------ ------------
NET INCOME.......................... $ 3,838 $ 5,673 $ 6,370 $ 18,128
============ ============ ============ ============
NET INCOME PER ORDINARY SHARE:
Basic............................. $ 0.024 $ 0.046 $ 0.040 $ 0.150
============ ============ ============ ============
Diluted........................... $ 0.024 $ 0.046 $ 0.040 $ 0.149
============ ============ ============ ============
NET INCOME PER ADS:
Basic............................. $ 0.098 $ 0.185 $ 0.162 $ 0.599
============ ============ ============ ============
Diluted........................... $ 0.096 $ 0.185 $ 0.159 $ 0.597
============ ============ ============ ============
WEIGHTED AVERAGE ORDINARY SHARES
OUTSTANDING:
Basic............................. 157,406,120 122,346,774 157,326,345 121,140,656
============ ============ ============ ============
Diluted........................... 159,761,634 122,795,745 160,504,760 121,560,320
============ ============ ============ ============
WEIGHTED AVERAGE EQUIVALENT ADSS
OUTSTANDING:
Basic............................. 39,351,530 30,586,694 39,331,586 30,285,164
============ ============ ============ ============
Diluted........................... 39,940,408 30,698,936 40,126,190 30,390,080
============ ============ ============ ============
</Table>
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GALEN HOLDINGS PUBLIC LIMITED COMPANY
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(IN THOUSANDS OF US DOLLARS)
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30, JUNE 30,
------------------ -------------------
2001 2000 2001 2000
------ -------- -------- -------
NET INCOME....................................... $3,838 $ 5,673 $ 6,370 $18,128
------ -------- -------- -------
Other comprehensive income:
Foreign currency translation adjustment........ (4,354) (14,723) (12,925) (18,432)
------ -------- -------- -------
Other comprehensive loss.................... (4,354) (14,723) (12,925) (18,432)
------ -------- -------- -------
COMPREHENSIVE INCOME (LOSS)...................... $ (516) $ (9,050) $ (6,555) $ (304)
====== ======== ======== =======
</Table>
E-3
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GALEN HOLDINGS PUBLIC LIMITED COMPANY
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS OF US DOLLARS)
<Table>
<Caption>
NINE MONTHS ENDED
JUNE 30,
---------------------
2001 2000
--------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income................................................ $ 6,370 $ 18,128
Adjustments to reconcile net income to net cash provided
by operating activities
Depreciation........................................... 6,455 5,256
Amortisation of intangibles............................ 19,506 1,489
Loss/(gain) on sale of assets.......................... 23 (19)
Amortisation of government grants...................... (1,717) (2,399)
Stock compensation expense............................. 4,705 1,986
Minority interest...................................... 150 111
Changes in assets and liabilities:
Increase in accounts receivable, prepaid expense and
other assets........................................ (1,118) (6,530)
Decrease/(increase) in inventories................... 1,147 (2,693)
(Decrease)/increase in accounts payable, accrued
liabilities and other liabilities................... (3,583) 3,232
Income taxes........................................... 7,244 1,394
Foreign exchange gain (loss)........................... 2,142 (4,557)
--------- --------
Net cash provided by operating activities............ 41,324 15,398
--------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets.................................. (16,909) (20,741)
Purchase of intangible assets............................. (96,110) --
Proceeds from sale of fixed assets........................ 308 49
Deferred consideration and acquisition costs.............. (23,333) (15,705)
--------- --------
Net cash used in investing activities.................. (136,044) (36,397)
--------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Long-term debt obtained/(repaid), net..................... 62,065 (11,697)
Payments under capital leases............................. (426) (259)
Proceeds from share capital issue, net of expenses........ 5,809 59,304
Cash dividends paid....................................... (3,163) (2,266)
Government grants received................................ -- 1,807
--------- --------
Net cash provided by financing activities.............. 64,285 46,889
--------- --------
Net (decrease)/increase in cash and cash equivalents........ (30,435) 25,890
Cash and cash equivalents, beginning of period............ 113,671 10,459
Foreign exchange adjustment on cash and cash
equivalents............................................ (1,727) (800)
--------- --------
Cash and cash equivalents, end of period.................. $ 81,509 $ 35,549
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</Table>
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