ANIP - Earnings call transcript Q1 2020 | ANI Pharmaceuticals, Inc.

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Operator

Good morning, everyone, and welcome to ANI's First Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode.

It is now my pleasure to turn today's program over to Mr. Arthur Przybyl, President and CEO of ANI Pharmaceuticals. Please go ahead, sir.

Arthur Przybyl

Tasha. you, Thank everyone. Good morning, to quarter ANI's for welcome conference earnings XXXX. first of the And call My Przybyl, is name Art I'm the CEO. today an who And and my departure. as me is our upon Carey, joining Financial Interim Patrick CEO Walsh, be ANI will Member, Board stepping in Stephen Officer;

Before I as conference you of to refer it carefully want everyone statements this the forward-looking each we in and this ask context begin, important call. for language morning's to to press release review

financial certain with include our Discussions that Principles. were of accordance also will dated financial in in prepared measures be Generally Reconciliation today. not earnings release found Accounting Accepted measures those non-GAAP can

and quarter of earnings per adjusted adjusted XXXX first of revenues share non-GAAP of reported $X.XX. $XX.X $XX.X XX% EBITDA or million, revenues, non-GAAP ANI million diluted net net of

Our our numbers with commentary expectations, on will Steve financial met additional and provide results. you our first quarter internal

products our our nine total product In Amerigen's we including of offerings January, The offerings, marketed first expanding the generic XX portfolio launched XX and by to XX pipeline. product commercialized closed brands, product quarter, five increased families. products, our we products to XX. Throughout generic further and generic acquisition to from our acquisition commercialized

letter and our the supplement prior FDA with file In plan the as order request refusal and meeting our XX, March, we FDA, of filed letter PDUFA Type discuss the file for received and each to them. in will the Cortrophin a date After result, filing, from approval identified a as to to received we to A address deficiencies in refusal Gel a that the XXXX. July of announced, we

the will to this both and of as Board as enhance in This joined and experience, experience my Board last our ANI. as extensive commercialization to would As complement CEO has as XXXX serve Pat Walsh the you know, a welcome to industry a like day Pat ANI. member. of pharmaceutical CEO ANI opportunity I and efforts. Interim is Friday take CEO

of built our success XX-year business. small ANI I thank Finally, public have to thriving pharmaceutical their our sincerely tenure a want for my Together, employees staff and to as we specialty CEO. from a contributions all company private to my senior during

reported increasing frame, from have $XX net revenues nearly since that to During record million in XXXX time annual in we revenues XXXX, million $XXX XXXX.

are the to environment for $X.X million XXXX leverage to same flows has reasonable they XXXX. the from a $XX testament to a cash results against maintaining positive At over at continue million backdrop adjusted further non-GAAP time, ANI generated team balance tough solid while increased a EBITDA pharmaceuticals. With sheet, as of business in generate These levels. in the generic were

opportunity we continue to Cortrophin Gel ANI. that compelling for have Finally, for transformational a remains still portfolio

future. about remain As ANI's continue excited I I to depart,

will I our details our conference now Stephen Financial Officer, provide the financial Carey, Chief to call who with will more on over turn results. you

Stephen Carey

Art, everyone morning you, the call. Thank good on and to

March, the to our requesting to marked to for was first is in months, the over Gel health the a of integrating address of a File deficiencies Type public a identified the pandemic. the a care to of team XXX dedicated COVID-XX the received recently In product of sNDA generic busy, And FDA employees the continue in of activity with team system Throughout sizable in successfully A our Cortrophin meeting process the Refusal Cortrophin has our XXXX ANI. at recent team The quarter significant acquisition. currently rallied quarter, development serve in letter. filed period midst and have

ANI I the company senior his thank Directors, of company endeavors. Board departing Arthur the numerous to of Przybyl, and wish years this departing of the effective contributions behalf future our well ANI, is who after also the On Art him this growth of we and time, XX President for During in say over employees Sunday, CEO, XX. leading to past May management goodbye the and all

he His of he management highlighted leaves who company a the such, legacy assembled. by to has remain and strong in is stakeholders. And the hands in team the ANI tirelessly organization committed its

Our Board currently our as member Art's the Patrick conducting search & Heidrick of for Interim Directors to Struggles, welcome Walsh, the interim, a serve replacement and in CEO. is of with we Board

We the In separately acquired inventory, GAAP allocation in day generic consideration product one million Amerigen intangible of of for $XX.X a includes a the capitalization market $X.X million January we as million, in well U.S. portfolio this value $X.X million resulting and as a fair product-related of resulted in-process purchased The for million $XX.X of $X.X year, purchase of assets step-up development. in total which of Pharmaceuticals and research charge U.S. of $XX.X $X.X price of million. inventory, million. of

our million $X.X million $X.X of this back goods been added charge, quarter, inventory to March our year with purpose X% non-GAAP million calculating prior million the along levels, reduction the of sales. brand Net the for R&D for measures. IP the ended from During expensed XXXX sold, down and by the $XX.X driven were quarter $X.X cost or in million, step-up revenues $X.X have was XX, of an

prior which the Ezetimibe-Simvastatin, were addition tempered by by of were portfolio. offerings Solution Oral impacts of the million our all driven declines launch past and $X.X Amerigen up sustained of EES Vancomycin levels, competitive gains year. These or the over over EEMT, Sales year generic of year-over-year the and product XX% in

margin net or to the period. increased year the $XX.X and the X-point was sharing $XX.X for ago accounting and principally XX% of XX% negative inventory Gross of The arrangements mix adjusted purchase of profit of in an the reduction Bretylium result or the against due profit revenues compared million million impact products as reserve in Amerigen. approximate to was $XXX,XXX from net goods royalties, acquired revenues $X.X gross million finished on

in as related compared was the to $X.X to in of year, as project development to million Cortrophin charges IP our complete the aforementioned $X.X we a research R&D development quarter, the efforts. and prior Excluding in the million begin expense decrease expense reflective

and During we FDA and $X.X amounts an These basis in filings. of inventories built raw for ensure expensed a the have approval our an Cortrophin API quantities to material to adequate of our of anticipation were back added launch on the GAAP measures. quarter, that we additional P&L million non-GAAP

Adjusted non-GAAP EBITDA down prior million from of our due reduction $X.X year, the gross and $XX.X corresponding net million to was revenues profit. principally in

of of GAAP Amerigen quarter first share $X.X loss accounting-related Our purchase includes million diluted charges. per $X.XX

table As of in $X.XX as release, period. this our press earnings $X.XX compared the year ago non-GAAP for to diluted morning's quarter detailed adjusted is per share on X the

$XX.X $X.X This balance XX March unrestricted million sheet $XX.X $XX paid cash. of reflective expenditures and million purchase of under quarter agreement. revolving we cash had million As the of the date, of balance borrowings capital portfolio, million in the Amerigen credit to is of of our

as of The related receivables million This initial a the until the directly sales was collected we anticipate paying amount figure than the share down is million our of quarter. these this ANI. quarter, quarter $X.X to currently the to portfolio, attributable sales of revolver will that Amerigen cash lower the and year product of fact generated progresses. $XX from we Due for had typical the we Amerigen, the significant purchase lion's be to operations. During the on drawdown not while second

by $XXX.X date to leverage as figure million XX-month cash on use driven purchase balance net to sheet $XXX.X Amerigen. This basis. X.Xx Total to net as XX, compared debt represents a increased trailing million, XXXX, of December of the hand the on on

opportunities. business to development Looking cash flow from operations expect forward, we and our reinvest continue to

us million with addition, In million pursue portion $XX facility of further in revolver and flexibility to continuing credit of transactions business XXXX. development undrawn the our provides in $XX remains

Regarding on business. monitoring forward-looking guidance, the novel impact of coronavirus we are pandemic closely our the

condition not on ended XXXX, March significant to unable the pandemic three-month numerous the disruptions will While COVID-XX uncertainties. due during business, XX, impact to we our future and results have incur operations we are of that the predict financial did

These the and impact containment to and pandemic or direct of scope, duration and the measures pandemic effects of mitigate among contain actions the economic uncertainties and pandemic, indirect its others. the taken include the severity the

this guidance are financial we suspending Given these at uncertainties, time.

I President point, CEO. like ANI's currently would Directors on be and to will who introduce Walsh, and Board of stepping Pat? Interim as this At Patrick serves in

Patrick Walsh

Art. XXXX, objectives. and the an served CEO the as Director Interim company. having and of I'm I serve to obviously since believe Steve growth you, mission Thank as in Independent And delighted company's the

director background. my on high-growth in organizations, have as bit XX and years organizations. pharmaceutical XX industry in career served little stands companies the in a variety a My roles five pharma A over including of in CEO

at while ANI, I currently a pharmaceutical two operating an In part-time an as private businesses, equity also Ampersand serving addition health serve for capital, a independent organization. director basis to on partner care as

the the with filing, to leadership during the in process company. outlined is I bio forward CEO new summary the recent executive the for working look of and company's team My search

through Finally, growth exceptional personal it and inherit to Art thanks an phase, my to stable company to business. new as well I'd a allows leader like express positioned a leading for the

it to I'll Art, over for closing you turn remarks.

Arthur Przybyl

nice all forward Pat, Have continued long-term attending you, our growth a Bye-bye. Thank you I'd thank today a thank of like to look call success. Steve. as morning. I and for conference continued and you, to shareholder ANI's

Operator

does This and that ladies disconnect line. your today's you We now you, conclude Thank call. conference gentlemen. ask

ANI Pharmaceuticals (ANIP) 9 May 202020 Q1 Earnings call transcript