Welcome!

News Feed Item

Concordia Healthcare Announces Fiscal 2013 Results (May 2013 - December 2013)

-   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
Revenue $40,447,000
Gross profit $32,109,000
Operating income $13,985,000
Net income $2,431,000
Earnings per share (basic) $0.38
Earnings per share (diluted) $0.38
EBITDA1 $9,376,000
Adjusted EBITDA2 $21,169,000
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

About Concordia

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.

Non-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.

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
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...