|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.
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
Feb. 24, 2017 06:00 AM EST Reads: 1,924
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Feb. 24, 2017 04:00 AM EST Reads: 3,788
SYS-CON Events announced today that DatacenterDynamics has been named “Media 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. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Feb. 24, 2017 03:00 AM EST Reads: 1,816
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Feb. 24, 2017 02:15 AM EST Reads: 13,197
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
Feb. 24, 2017 01:45 AM EST Reads: 3,773
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Ca...
Feb. 24, 2017 01:45 AM EST Reads: 9,537
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Feb. 24, 2017 01:30 AM EST Reads: 5,731
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
Feb. 24, 2017 01:15 AM EST Reads: 1,897
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Feb. 24, 2017 01:00 AM EST Reads: 1,895
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Feb. 24, 2017 01:00 AM EST Reads: 2,534
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Feb. 24, 2017 12:45 AM EST Reads: 969
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Feb. 23, 2017 11:30 PM EST Reads: 6,299
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Feb. 23, 2017 11:00 PM EST Reads: 7,020
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
Feb. 23, 2017 10:00 PM EST Reads: 4,609
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Feb. 23, 2017 09:15 PM EST Reads: 1,529