Horizon Pharma announced its fourth-quarter and full-year 2015 financial results and confirmed its full-year 2016 net sales and adjusted EBITDA guidance.
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Fourth-quarter 2015 net sales of $244.5 million increased 135 percent compared to the fourth quarter of 2014. Adjusted EBITDA was $122.5 million; GAAP net income $24 million; adjusted operating cash flow $154 million; and GAAP operating cash flow $134.9 million.
Full-year 2015 net sales were $757 million, up 155 percent. Adjusted EBITDA was $362.1 million; GAAP net income $39.5 million; full-year 2016 net sales guidance is $1.025 to $1.050 billion and full-year 2016 Adjusted EBITDA guidance is $505 to $520 million.
Under U.S. generally accepted accounting principles (GAAP) in the fourth quarter of 2015, the gross profit ratio was 72.4 percent compared to 68.5 percent in the fourth quarter of 2014. The adjusted gross profit ratio in the fourth quarter of 2015 was 91.6 percent compared to 88.1 percent in the fourth quarter of 2014.
On a GAAP basis in the fourth quarter of 2015, total operating expenses were 56.8 percent of sales, research & development (R&D) expenses were 5.6 percent of sales, sales & marketing (S&M) expenses were 25.9 percent of sales and general & administration (G&A) expenses were 25.3 percent of sales.
Adjusted total operating expenses in the fourth quarter of 2015 were 41.4 percent of sales, adjusted R&D expenses were 4.5 percent of sales, adjusted S&M expenses were 22.8 percent of sales and adjusted G&A expenses were 14.1 percent of sales.
On a GAAP basis in the fourth quarter of 2015, net income was $24.0 million compared to a loss of $31.6 million in the fourth quarter of 2014. Adjusted net income in the fourth quarter of 2015 was $102.4 million compared to $25.9 million in the fourth quarter of 2014.
On an unadjusted basis in the fourth quarter of 2015, EBITDA was $60.1 million, or 24.6 percent of sales. Adjusted EBITDA in the fourth quarter of 2015 was $122.5 million, or 50.1 percent of sales, compared to $34.8 million, or 33.5 percent of sales, in the fourth quarter of 2014.
On a GAAP basis in the fourth quarter of 2015 and 2014, diluted earnings (loss) per share were $0.15 and ($0.27), respectively. Adjusted diluted earnings per share in the fourth quarter of 2015 and 2014 were $0.63 and $0.20, respectively, representing growth of 215 percent.
Weighted average shares outstanding used for calculating earnings per share in the fourth quarter of 2015 were 159.4 million and 163.8 million for basic and diluted earnings per share, respectively.
On a GAAP basis in the fourth quarter of 2015, operating cash flow was $134.9 million. Adjusted operating cash flow in the fourth quarter of 2015 was $154.0 million, which excludes cash payments for transaction-related costs.
The company had cash and cash equivalents of $859.6 million as of December 31, 2015, an increase of $640.8 million from December 31, 2014. In January 2016, the Company used approximately $510 million for the acquisition of Crealta Holdings LLC in an all cash transaction.
Total principal amount of debt outstanding was $1.273 billion as of December 31, 2015, which is comprised of $475 million in 6.625 percent senior notes due 2023, $398 million in senior secured term loans due 2021, and $400 million of 2.5 percent exchangeable senior notes due 2022.
As of December 31, 2015, the Company had a total debt to last 12 months (LTM) adjusted EBITDA leverage ratio of 3.5x and a net debt to LTM adjusted EBITDA leverage ratio of 1.1x. ■