Welcome!

News Feed Item

United Therapeutics Corporation Reports 2013 Fourth Quarter And Annual Financial Results

SILVER SPRING, Md., Feb. 25, 2014 /PRNewswire/ -- 

  • Total Annual Revenues of $1.1 billion
  • Annual Earnings per Share of $3.49 per Basic Share or $3.28 per Diluted Share
  • Annual Non-GAAP Earnings of $10.88 per Basic Share or $10.23 per Diluted Share

United Therapeutics Corporation (NASDAQ: UTHR) today announced its financial results for the fourth quarter and year ended December 31, 2013.

"United Therapeutics continued to deliver strong results in 2013, reflecting growing demand for our Remodulin®, Tyvaso® and Adcirca® products," remarked Martine Rothblatt, Ph.D., United Therapeutics' Chairman and Chief Executive Officer. "In addition we successfully brought a fourth product, Orenitram, to FDA approval and continued enrolling patients in two pivotal trials with the goal of demonstrating that our oral prostacyclin analogues reduce morbidity and mortality in patients with pulmonary arterial hypertension. We feel blessed to be able to help PAH patients with medicines that have leading shares of their market segments, and are excited about our pipeline of several promising new therapies."

Total revenues for the quarter ended December 31, 2013 were $289.0 million, up from $243.8 million for the quarter ended December 31, 2012. Net loss for the quarter ended December 31, 2013 was $30.3 million or $0.60 net loss per basic share, compared to net income of $83.3 million or $1.65 per basic share for the quarter ended December 31, 2012. For the year ended December 31, 2013, we had net income of $174.6 million, or $3.49 per basic share and $3.28 per diluted share, compared to $304.4 million, or $5.84 per basic share and $5.71 per diluted share, for the year ended December 31, 2012. Non-GAAP earnings(1) for the quarter ended December 31, 2013, were $160.2 million or $3.19 per basic share, compared to $84.6 million or $1.67 per basic share for the quarter ended December 31, 2012.   Non-GAAP earnings for the year ended December 31, 2013, were $544.7 million or $10.88 per basic share, compared to $383.2 million or $7.36 per basic share for the year ended December 31, 2012.

________________________

(1)    See definition of non-GAAP earnings, a non-GAAP financial measure, and a reconciliation of net income to non-GAAP earnings below.  

Operating Results

Revenues

The table below summarizes the components of revenues (in thousands):

 


Three Months Ended
December 31,


Year Ended
December 31,


2013


2012


2013


2012

Cardiopulmonary products:








Remodulin

$

119,865



$

116,214



$

491,179



$

457,969


Tyvaso

114,385



86,036



438,793



325,614


Adcirca

52,047



38,182



176,972



122,540


Other

2,720



3,385



10,040



9,953


Total revenues

$

289,017



$

243,817



$

1,116,984



$

916,076


 

Revenues for the quarter ended December 31, 2013 increased by $45.2 million compared to the quarter ended December 31, 2012. The growth in revenues corresponded to the continued increase in the number of patients being treated with our cardiopulmonary products.

Expenses

The table below summarizes research and development expense by major project and non-project component (in thousands):

 


Three Months Ended
December 31,


Year Ended
December 31,


2013


2012


2013


2012

Project and non-project:








Cardiopulmonary

$

32,242



$

30,892



$

116,137



$

122,350


Share-based compensation expense (benefit)

76,422



(3,722)



134,706



11,237


Other

12,888



10,306



48,505



39,800


Total research and development expense

$

121,552



$

37,476



$

299,348



$

173,387


 

Share-based compensation.  The $80.1 million increase in share-based compensation expense for the quarter ended December 31, 2013 over the same quarter in 2012 reflects the 43 percent appreciation in the price of our common stock during the quarter ended December 31, 2013, compared to a 4 percent decline in our stock price for the same quarter in 2012.

The table below summarizes selling, general and administrative expense by major category (in thousands):

 


Three Months Ended
December 31,


Year Ended
December 31,


2013


2012


2013


2012

Category:








General and administrative

$

38,112



$

31,118



$

140,235



$

116,899


Sales and marketing

21,038



15,788



73,871



67,220


Share-based compensation expense (benefit)

98,028



(6,833)



179,904



17,627


Total selling, general and administrative expense

$

157,178



$

40,073



$

394,010



$

201,746


 

General and administrative. The $7.0 million increase in general and administrative expenses for the quarter ended December 31, 2013 compared to the same quarter in 2012 was attributable principally to increases of $3.1 million in professional and consulting fees and $1.2 million in salaries and related expenses as a result of general corporate growth during 2013.

Sales and marketing. The $5.3 million increase in sales and marketing expenses for the quarter ended December 31, 2013 compared to the same quarter in 2012 was driven by an increase of $3.2 million in marketing and advertising expenses, as well as a $1.8 million increase in salaries and related expenses due to the growth of our sales force.

Share-based compensation.  The $104.9 million increase in share-based compensation expense for the quarter ended December 31, 2013 compared to the same quarter in 2012 reflects the 43 percent appreciation in the price of our common stock during the quarter ended December 31, 2013, compared to a 4 percent decline in the price of our common stock for the same quarter in 2012.

Non-GAAP Earnings

Non-GAAP earnings is defined as net income, adjusted for the following non-cash charges, as applicable: (1) interest; (2) non-cash license fees; (3) depreciation and amortization; (4) impairment charges; and (5) share-based compensation (stock option, share tracking award and employee stock purchase plan expense). 

A reconciliation of net income to non-GAAP earnings is presented below (in thousands, except per share data):

 


Year Ended
December 31,


Three Months Ended
December 31,


2013


2012


2011


2010


2013


2012













Net income (loss), as reported

$

174,560



$

304,442



$

217,868



$

105,916



$

(30,314)



$

83,255


Add (subtract) non-cash charges
(benefits):












Interest expense

18,058



16,639



21,372



19,714



4,562



4,490


Non-cash license fees





37,049








Depreciation and amortization

31,259



27,145



20,535



17,919



7,753



7,290


Impairment charges



4,839





7,688






Share-based compensation 
    expense (benefit)

320,786



30,115



(15,715)



113,942



178,202



(10,453)


Non-GAAP earnings

$

544,663



$

383,180



$

281,109



$

265,179



$

160,203



$

84,582














Non-GAAP earnings per share:












Basic

$

10.88



$

7.36



$

4.92



$

4.72



$

3.19



$

1.67


Diluted

$

10.23



$

7.19



$

4.73



$

4.46



$

2.88



$

1.62














Weighted average number of
common shares outstanding:












Basic

50,076



52,093



57,163



56,142



50,281



50,503


Diluted

53,231



53,280



59,395



59,516



55,648



52,133














 

Conference Call

We will host a half-hour teleconference on Tuesday, February 25, 2014, at 9:00 a.m. Eastern Time. The teleconference is accessible by dialing 1-877-351-5881, with international callers dialing 1-970-315-0533.  A rebroadcast of the teleconference will be available for one week by dialing 1-855-859-2056, with international callers dialing 1-404-537-3406 and using access code 58833697.

This teleconference is also being webcast and can be accessed via our website at http://ir.unither.com/events.cfm.

About United Therapeutics

United Therapeutics Corporation is a biotechnology company focused on the development and commercialization of unique medicinal products.

Non-GAAP Financial Information

This press release contains a financial measure, non-GAAP earnings, that does not comply with generally accepted accounting principles in the United States (GAAP). This measure supplements our financial results prepared in accordance with GAAP as reported below.

We use non-GAAP earnings to assist us in: (1) planning, including the preparation of our annual operating budget; (2) allocating resources in an effort to enhance the financial performance of our business; (3) evaluating the effectiveness of our operational strategies; and (4) assessing our capacity to fund capital expenditures and expand our business. We believe this non-GAAP financial measure improves investors' understanding of our financial results by excluding certain expenses that we do not consider when evaluating and comparing the performance of our core operations and making operating decisions. However, there are limitations in the use of this non-GAAP financial measure in that it excludes certain operating expenses that are recurring in nature. In addition, our calculation of this non-GAAP financial measure may differ from the methodology used by other companies. The presentation of this non-GAAP financial measure should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP.  A reconciliation of net income, the most directly comparable GAAP financial measure, to non-GAAP earnings can be found in the table above under the heading, Non-GAAP Earnings.

Forward-looking Statements

Statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, among others, our expectations about the growing demand for our products, the impact of the FDA's approval of Orenitram, the goal of our two pivotal trials of our oral prostacyclin analogues, and the potential of our pipeline to deliver promising new therapies. These forward-looking statements are subject to certain risks and uncertainties, such as those described in our periodic reports filed with the Securities and Exchange Commission, that could cause actual results to differ materially from anticipated results. Consequently, such forward-looking statements are qualified by the cautionary statements, cautionary language and risk factors set forth in our periodic reports and documents filed with the Securities and Exchange Commission,  including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. We claim the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We are providing this information as of February 25, 2014, and assume no obligation to update or revise the information contained in this press release whether as a result of new information, future events or any other reason. [uthr-g]

Orenitram is a trademark, and Remodulin and Tyvaso are registered trademarks, of United Therapeutics Corporation. 

Adcirca is a registered trademark of Eli Lilly and Company.

 

UNITED THERAPEUTICS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)



Three Months Ended December 31,


Year Ended December 31,


2013


2012


2013


2012

Revenues:








Net product sales

$

286,297



$

240,431



$

1,106,944



$

906,123


Other

2,720



3,386



10,040



9,953


Total revenue

289,017



243,817



1,116,984



916,076


Operating expenses:








Research and development

121,552



37,476



299,348



173,387


Selling, general and administrative

157,178



40,073



394,010



201,746


Cost of product sales

38,778



37,665



131,127



119,297


Total operating expenses

317,508



115,214



824,485



494,430


Operating (loss) income

(28,491)



128,603



292,499



421,646


Other (expense) income:








Interest income

1,111



716



3,827



3,941


Interest expense

(4,562)



(4,490)



(18,058)



(16,639)


Other, net

312



123



635



31,723


Total other (expense) income, net

(3,139)



(3,651)



(13,596)



19,025


(Losses) earnings before income taxes

(31,630)



124,952



278,903



440,671


Income tax benefit (expense)

1,316



(41,697)



(104,343)



(136,229)


Net (loss) income

$

(30,314)



$

83,255



$

174,560



$

304,442


Net (loss) income per common share:








Basic

$

(0.60)



$

1.65



$

3.49



$

5.84


Diluted

$

(0.60)



$

1.60



$

3.28



$

5.71


Weighted average number of common shares outstanding:








Basic

50,281



50,503



50,076



52,093


Diluted

50,281



52,133



53,231



53,280


 

 

SELECTED CONSOLIDATED BALANCE SHEET DATA

(In millions)



December 31,


2013


2012

Cash, cash equivalents and marketable securities (excluding restricted amounts of $5.4 million as
of December 31, 2013 and 2012)

$

1,136.7



$

784.9


Total assets

2,087.6



1,626.6


Total liabilities and temporary equity

828.3



542.6


Total stockholders' equity

1,259.3



1,084.0


 

SOURCE United Therapeutics Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, explored HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great dea...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...