|By PR Newswire||
|March 31, 2014 07:00 AM EDT||
- Company's board approves an annualized US$0.30 dividend -
TORONTO, March 31, 2014 /PRNewswire/ - Concordia Healthcare Corp. (Concordia or the Company) (TSX: CXR) (OTCQX: CHEHF), a diverse healthcare company focused on legacy pharmaceutical products, orphan drugs, and medical devices for the diabetic population, today announced its financial and operational results for the year ended December 31, 2013.
This is Concordia's first reporting period since the Company began
trading on the Toronto Stock Exchange on December 24, 2013. Financial
references are in U.S. dollars unless otherwise indicated.
These results represent the Company's financials from the start of its operational and economic activity in May 2013.
2013 Financial Highlights
|(in US$)||8 Months Ended December 31, 2013|
|Earnings per share (basic)||$0.38|
|Earnings per share (diluted)||$0.38|
|Cash and cash equivalents||$42,899,000|
|Senior and subordinate debt||$14,966,000|
2013 Operational Highlights
- On May 6, 2013, acquired Shionogi, Inc.'s legacy pharmaceutical business assets consisting of three U.S. Food and Drug Administration-approved drugs: Kapvay, which is used to effectively treat attention deficit hyperactivity disorder (ADHD), Ulesfia, a topical treatment for head lice, and Orapred, an anti-inflammatory used in the treatment of pulmonary diseases such as asthma. The purchase price paid to Shionogi was $28,704,000.
- On October 25, 2013, acquired specialty healthcare distribution assets from Global Medical Direct, Inc. for $13,157,000.
- In December 2013, completed a reverse merger and began trading on the Toronto Stock Exchange. Concurrent with the reverse merger, Concordia issued the equivalent of 5,520,000 common shares at a price of Cdn$6.25 per for total gross proceeds of Cdn$34,500,000.
- On December 19, 2013, acquired Pinnacle Biologics Inc. The primary asset acquired in the Pinnacle transaction was Photofrin for PDT. Photofrin for PDT is FDA approved as a treatment for esophageal cancer, Barrett's Esophagus and non-small cell lung cancer. The purchase price paid to Pinnacle was $58,017,000. Subsequent to year end, on January 13, 2014, the FDA granted the Company a Special Protocol Assessment for a Phase 3 clinical trial to evaluate PDT with Photofrin as a treatment for perihilar cholangiocarcinoma, an orphan indication. Also subsequent to year end, on March 26, 2014, the FDA granted the company premarket supplemental approval (PMA) for its Optiguide® DCYL700 Fiber Optic Diffuser Series flexible fiber.
- Subsequent to year end, on January 6, 2014, signed a five year exclusive distribution agreement with Lachlan Pharma Holdings for the distribution of Ulesfia® Lotion in the United States;
- Subsequent to year end, on March 11, 2014, completed a short-form prospectus offering, on a bought deal basis of 5,750,000 common shares of Concordia, which includes the exercise by the Underwriters of an over-allotment option of 15 percent, for net proceeds to the Company, after the deduction of underwriters' fees of Cdn$63,508,750.
- Subsequent to year end, on March 20, 2014, entered into a definitive agreement to acquire Donnatal®, an adjunctive therapy in the treatment of irritable bowel syndrome and acute enterocolitis, from a privately held specialty pharmaceutical company carrying on business as Revive Pharmaceuticals. The Company has agreed to acquire Donnatal® for $200,000,000 in cash and an aggregate of 4,605,833 common shares of Concordia and is subject to customary closing conditions and acceptable financing. In the 2013 calendar year, Donnatal generated approximately $49,800,000 in revenues.
- Subsequent to year end, on March 28, 2014, the Company paid in full its senior and subordinate debt as at December 31, 2013, of $14,966,000. On March 20, 2014, the Company announced it had a commitment letter with GE Capital, Healthcare Financial Services and its affiliated entities whereby GE agreed to provide a secured credit facility having a principal amount of up to $195,000,000, consisting of a $170,000,000 term loan and a $25,000,000 operating line, such credit facility being subject to a number of customary conditions, including entering into definitive documentation.
- Subsequent to year end, on March 30, 2014, due to the Company's continued confidence in its financial strength, Concordia's board of directors approved a $0.30 per common share annualized 'eligible' dividend with $0.075 per common share being paid to shareholders on a quarterly basis. With respect to the second quarter of 2014, a record date of April 15, 2014 will be declared with distribution of proceeds on April 30, 2014. Declarations and payments will be made in U.S. dollars. All future quarterly dividends will be subject to quarterly financial review and board approval.
"2013 was a landmark year for Concordia as we achieved all of our corporate goals that we set for ourselves," said Mark Thompson, Chief Executive Officer of Concordia. "For the remainder of 2014 and beyond, we will continue to focus on the effective execution of our growth strategy while we concurrently integrate the assets we acquired into our business."
Going forward, the Company plans to grow its existing businesses by:
- supplementing its existing portfolio by acquiring or in-licensing additional legacy products
- expanding its Specialty Healthcare Distribution Division by acquiring additional product offerings including specialty pharmacy
- developing Photofrin for new indications including CCA; and
- the acquisition of additional orphan drugs
2013 Financial Results
The Company's net revenue for the reporting period was $40,447,000 while gross profit for the reporting period was $32,109,000.
Net revenue and gross profit are derived from Concordia's Legacy Pharmaceuticals Division, its Orphan Drugs Division, and its Specialty Healthcare Distribution.
Legacy Pharmaceuticals Division
Net revenues for the Legacy Pharmaceuticals Division were $36,900,000 for the period ended December 31, 2013 and related to the sales of Kapvay, Orapred ODT, Orapred OS and Ulesfia after subtracting deductions from Gross Sales such as chargebacks, returns and allowances, rebates and other deductions that are customary in the industry.
Cost of sales for the period ended December 31, 2013 were $7,400,000 million and reflect the costs of active pharmaceutical ingredients, excipients, packaging and freight costs and royalties.
Gross Profit for the period ended December 31, 2013 was $29,500,000 million.
Orphan Drugs Division
The operations of Concordia's Orphan Drugs Division commenced on December 20, 2013 with the acquisition of Pinnacle Biologics Inc. As a result, there were no material revenues, profits or expenses incurred in this reportable segment for the year ended December 31, 2013.
Specialty Healthcare Distribution Division
Net revenues for the Specialty Healthcare Distribution division were $3,600,000 for the period ended December 31, 2013 and related primarily to sales and distribution of diabetes testing supplies and orthotics for diabetic patients.
Costs of sales for the period ended December 31, 2013 were $900,000 and reflect the cost of products, warehousing and freight.
Gross profit for the period ended December 31, 2013 was $2,600,000.
For the Company, operating income for the period ending December 31, 2013, was $13,985,000.
Operating expenses for the period ended December 31, 2013 were $18,124,000, including general and administrative expenses, which were $8,476,000, selling expenses of $2,464,000, acquisition-related costs of $3,692,000, share-based compensation of $1,070,000 and exchange listing expenses of $2,404,000.
Net cash provided by operating activities was $49,863,000 million for the year ended December 31, 2013 and was driven by the operations of the Legacy Pharmaceuticals division.
As at December 31, 2013 and March 31, 2014 the Company had 17,985,889 and 23,861,246 common shares issued and outstanding, respectively.
Conference Call and Webcast
Management will host a conference call to discuss the 2013 results on Monday, March 31, 2014 at 8:30 am ET. Following management's presentation, there will be a question-and-answer session. To participate in the conference call, please dial (888) 231-8191 or (647) 427-7450.
A digital conference call replay will be available until midnight on April 14, 2014 (ET) by calling (855) 859-2056 or (416) 849-0833. Please enter the password 15804692 when instructed. A webcast replay will be available for 365 days by accessing a link through the Events section at visit www.concordiarx.com
Concordia is a diverse healthcare company focused on legacy pharmaceutical products, orphan drugs, and medical devices for the diabetic population. The company's legacy pharmaceutical business consists of an ADHD-treatment drug, Kapvay® (clonidine extended release tablets), Ulesfia® (benzyl alcohol) Lotion a Head Lice Treatment, and an Asthma-related medication, Orapred ODT® (prednisolone sodium phosphate orally disintegrating tablets). Concordia's Specialty Healthcare Distribution (SHD) division (Complete Medical Homecare) distributes medical supplies targeting diabetes and related conditions. Concordia's orphan division, Pinnacle, markets Photofrin® in the United States.
Concordia operates out of facilities in Oakville, Ontario, Lenexa, Kansas (near Kansas City, Missouri), Bannockburn, (near Chicago), Illinois and Bridgetown, Barbados.
1As used herein, EBITDA is defined as net income adjusted for net interest expense, income tax expense, depreciation and amortization. Management uses EBITDA to assess the Company's operating performance. A reconciliation of net income to EBITDA is provided below
2As used herein, adjusted EBITDA is defined as EBITDA adjusted for one-time charges associated with acquisitions, one-time charges associated with the Company's listing on the TSX, non-cash items such as unrealized gains / losses on derivative instruments, and realized / unrealized gains/losses related to foreign exchange revaluation. Management uses adjusted EBITDA as a key metric in assessing business performance when comparing actual results to budgets and forecasts. Management believes adjusted EBITDA is an important measure of operating performance and cash flow, and provides useful information to investors because it highlights trends in the underlying business that may not otherwise be apparent when relying solely on IFRS measures.
This press release makes reference to certain non-IFRS measures. These non-IFRS measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. When used, these measures are defined in such terms as to allow the reconciliation to the closest IFRS measure. These measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analyses of the Company's financial information reported under IFRS. Management uses non-IFRS measures such as EBITDA and Adjusted EBITDA to provide investors with a supplemental measure of the Company's operating performance and thus highlight trends in the Company's core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets, and to assess its ability to meet future debt service, capital expenditure, and working capital requirements.
Notice regarding forward-looking statements:
This release includes forward-looking statements regarding Concordia and its business, which may include, but is not limited to, statements with respect to the acquisition, the impact of the acquisition on Concordia's financial performance, Concordia's growth and other factors. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of Concordia's management, and are based on assumptions and subject to risks and uncertainties. Although Concordia's management believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Concordia, including risks regarding the pharmaceutical industry, the failure to obtain regulatory approvals, economic factors, market conditions, the equity markets generally, risks associated with growth and competition, risks associated with the acquisition and many other factors beyond the control of Concordia. Although Concordia has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Concordia undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE Concordia Healthcare Corp.
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
Aug. 29, 2015 01:00 PM EDT
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...
Aug. 29, 2015 12:00 PM EDT
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!
Aug. 29, 2015 11:45 AM EDT Reads: 119
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
Aug. 29, 2015 11:30 AM EDT Reads: 174
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
Aug. 29, 2015 11:00 AM EDT Reads: 219
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...
Aug. 29, 2015 11:00 AM EDT Reads: 187
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
Aug. 29, 2015 10:30 AM EDT
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Aug. 29, 2015 10:15 AM EDT Reads: 411
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 29, 2015 09:30 AM EDT Reads: 840
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
Aug. 29, 2015 09:30 AM EDT Reads: 431
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
Aug. 29, 2015 09:15 AM EDT Reads: 163
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
Aug. 29, 2015 08:45 AM EDT Reads: 571
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of tech...
Aug. 29, 2015 08:45 AM EDT Reads: 169
Everyone talks about continuous integration and continuous delivery but those are just two ends of the pipeline. In the middle of DevOps is continuous testing (CT), and many organizations are struggling to implement continuous testing effectively. After all, without continuous testing there is no delivery. And Lab-As-A-Service (LaaS) enhances the CT with dynamic on-demand self-serve test topologies. CT together with LAAS make a powerful combination that perfectly serves complex software developm...
Aug. 29, 2015 08:00 AM EDT Reads: 166
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
Aug. 29, 2015 07:45 AM EDT Reads: 552