AMRI reported financial and operating results for the fourth quarter and full year ended December 31, 2015.
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Total revenue for the fourth quarter of 2015 was $126.4 million, an increase of 46% compared to total revenue of $86.6 million reported in the fourth quarter of 2014.
Total contract revenue for the fourth quarter of 2015 was $123 million, an increase of 52% compared to contract revenue of $80.7 million reported in the fourth quarter of 2014.
Adjusted contract margins were 30% for the fourth quarter of 2015, compared with 23% for the fourth quarter of 2014. Margins benefited from recent acquisitions, product mix within the Drug Product segment and the impact of cost reduction initiatives and facility optimization activities.
Royalty revenue in the fourth quarter of 2015 was $3.4 million, a decrease of 43% from $5.9 million in the fourth quarter of 2014, due primarily to lower royalties on Allegra (fexofenadine) products which have ended based on the expiration of the underlying patents.
Royalty revenue for the fourth quarter of 2015 includes royalties from the net sales of certain amphetamine salts sold by Actavis and royalties from an API sourced from Spain.
Adjusted EBITDA in the fourth quarter of 2015 was $26.7 million, an increase of 51% from $17.7 million in the fourth quarter 2014.
Net income under U.S. GAAP was $1.8 million, or $0.05 per diluted share, in the fourth quarter of 2015, compared to U.S. GAAP net loss of $1.9 million, or $0.06 per share for the fourth quarter of 2014.
Net income on an adjusted basis in the fourth quarter of 2015 was $14.1 million, or $0.40 per diluted share, compared to adjusted net income of $9.3 million or $0.28 per diluted share in 2014.
Total revenue for the year ended December 31, 2015 was $402.3 million, an increase of 45% compared to total revenue of $276.6 million for the same period in 2014.
Total contract revenue for the full year 2015 was $384.7 million, an increase of 53% compared to contract revenue of $250.7 million for 2014. Adjusted contract margins were 26% for the full year 2015, compared to 20% in 2014.
Royalty revenue for the full year 2015 was $17.6 million, a decrease of 32% from $25.9 million in 2014.
Adjusted EBITDA for the full year 2015 was $75.2 million, an increase of 50% from $50.0 million in 2014.
Net loss under U.S. GAAP for the full year 2015 was $2.3 million, or $0.07 per diluted share, compared to U.S. GAAP net loss of $3.3 million, or $0.10 per diluted share in 2014.
Net income on an adjusted basis in the full year 2015 was $33.0 million or $0.96 per diluted share, compared to adjusted net income of $21.1 million or $0.65 per diluted share in 2014, an increase of 48%.
Adjusted net income in 2015 includes an $7.2 million decline in royalty income and $20.0 million of income from operations acquired during 2015. ■