Mylan N.V. announced its financial results for the quarter ended March 31, 2015. Total revenues of $1.87 billion, up 15% on a constant currency basis versus the prior year period.
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Foreign currency exchange rates negatively impacted revenues in Q1 by $93 million.
Generics segment third party net sales were $1.64 billion for the quarter, an increase of 9% when compared to the prior year period. When translating third party net sales for the current quarter at prior year comparative period exchange rates ("constant currency"), third party net sales increased by 15%.
Specialty segment reported third party net sales of $211.1 million for the quarter, an increase of 8% when compared to the prior year period. This increase was primarily due to higher net sales of the EpiPen Auto-Injector driven by increased volume.
Adjusted gross profit was $990.6 million and adjusted gross margins were 53% for the quarter as compared to adjusted gross profit of $865.6 million and adjusted gross margins of 50% in the comparable prior year period.
The current quarter increase was due to new product introductions and net sales from acquisition. GAAP gross profit for the quarter was $830.1 million and GAAP gross margins were 44% as compared to GAAP gross profit of $737.8 million and GAAP gross margins of 43% in the comparable prior year period.
Adjusted earnings from operations for the quarter were $429.7 million, up 9% from the comparable prior year period. R&D expense increased primarily from the continued investment in our biologics and respiratory growth programs.
SG&A expense increased from the prior year period as a result of increased costs related to acquired businesses and increased selling and marketing costs, primarily stemming from the EpiPen Auto-Injector direct-to-consumer marketing campaign.
GAAP earnings from operations were $159.3 million for the quarter, a decrease of 33% from the comparable prior year period. This decrease in earnings from operations during the current quarter was primarily the result of increased acquisition related costs and increased amortization expense as a result of the acquisition of the EPD Business.
EBITDA, which is defined as net earnings (excluding the non-controlling interest and losses from equity method investees) plus income taxes, interest expense, depreciation and amortization, was $340.5 million for the quarter and $392.4 million for the comparable prior year quarter.
After adjusting for certain items, adjusted EBITDA was $504.6 million for the quarter and $459.7 million for the comparable prior year period. Adjusted net earnings attributable to Mylan N.V. increased by $48.7 million to $309.1 million compared to $260.4 million for the prior year comparable period.
Adjusted diluted EPS increased 6% to $0.70 compared to $0.66 in the prior year comparable period. GAAP net earnings attributable to Mylan N.V. decreased by $59.3 million to $56.6 million as compared to $115.9 million for the prior year comparable period. GAAP diluted EPS decreased 55% to $0.13 compared to $0.29 in the prior year comparable period.
Adjusted cash provided by operating activities was $336 million for the three months ended March 31, 2015, compared to $286 million for the comparable prior year period.
On a GAAP basis, net cash provided by operating activities was $267 million for the three months ended March 31, 2015, compared to $268 million for the comparable prior year period.
Capital expenditures were approximately $48 million for the three months ended March 31, 2015 as compared to approximately $72 million for the year ended March 31, 2014. Adjusted free cash flow was $288 million for the three months ended March 31, 2015, compared to $214 million in the prior year period. ■