Paladin Reports Record Third Quarter 2012 Results
(firmenpresse) - MONTREAL, CANADA -- (Marketwire) -- 11/13/12 -- Paladin Labs Inc. (TSX: PLB), a leading specialty pharmaceutical company, today reported its financial results for the quarter ended September 30, 2012.
2012 Third Quarter Highlights
Financial
Corporate Development
Subsequent to the Quarter
"In Q3 we expanded our pipeline and reported our best results to date, driven by record EBITDA in our Canadian business and the addition of incremental sales and EBITDA from our acquisition of Litha," said Mark Beaudet, interim President and CEO of Paladin Labs. "Looking forward, we look to build from this position by driving increased results in both the domestic and international segments of our business."
Financial Results
Adjusted(2) revenues increased $14.0 million or 38% to $50.7 million for the third quarter of 2012 from $36.7 million for the same period in 2011. The increase is mostly attributable to the proportionate consolidation of Litha's revenues of $13.0 million. In addition, revenues further increased as a result of incremental revenues from products acquired and/or launched by Paladin including corporate acquisitions since 2011, which contributed $2.7 million to the quarter ended September 30, 2012. The growth in the Canadian business was negatively impacted by the supply issues related to Twinject® and certain other products.
Consolidated revenues for the third quarter were $66.9 million, an increase of 82% over the same period last year. The increase is mostly attributable to the consolidation of Litha's revenues of $29.2 million.
Third quarter 2012 adjusted(2) EBITDA(1) increased 16% or $2.8 million to $20.9 million, compared to EBITDA(1) of $18.1 million in the third quarter of 2011. This increase is primarily due to the acquisition of Litha, which contributed $1.5 million to adjusted EBITDA(1). The increase in adjusted adjusted(2) EBITDA(1) for Paladin was driven by the strong sales performance of our promoted products, partially offset by increased costs associated with the launch of new products, including Oralair®. Litha's adjusted(2) EBITDA(1) includes certain integration and acquisition costs related to Pharmaplan as well as the impact of the decline in the South African Rand. In addition, Litha's adjusted(2) EBITDA(1) was negatively impacted by fair value adjustments on acquisition by Paladin.
Consolidated EBITDA(1) was $22.7 million, an increase of 25% over the consolidated EBITDA(1) for the quarter ended September 30, 2011. This increase is primarily due to the consolidation of Litha, which contributed $3.3 million in consolidated EBITDA(1) for the quarter.
Net income attributable to shareholders for the quarter was $24.9 million or $1.19 per fully diluted share, compared to net income attributable to shareholders of $9.5 million or $0.46 per fully diluted share in the same quarter a year ago.
As at September 30, 2012, Paladin's cash, cash equivalents and investments in marketable securities totaled $231.2 million. From this strong cash position, Paladin continues to pursue acquisition opportunities.
Corporate Developments
Effective July 2 2012, Paladin completed its most significant strategic investment to date through its investment in Litha, a JSE-listed, diversified healthcare company located in South Africa. Under the terms of the agreement, Paladin acquired the 55.01% of Pharmaplan which it did not previously own and sold 100% of the share capital of Pharmaplan to Litha in exchange for cash of and the issuance of 169,090,909 shares in Litha at ZAR2.75 per share. Paladin also acquired an additional 73,083,214 shares of Litha from third parties at ZAR2.75 per share. Paladin deployed $47.5 million in cash and issued 88,948 shares at $44.97 per share. As a result Paladin owns 44.5% of the outstanding shares of Litha and, through various shareholder agreements, effectively controls 58% of the outstanding shares of Litha.
This move into South Africa provides a stronger, more diversified platform from which Paladin is able to commercialize its South African and sub-Saharan portfolio of 10 products.
Subsequent to the quarter
Subsequent to the quarter, Paladin took steps to enrich both its over-the-counter and pain portfolios through two separate agreements.
In early October, Paladin entered into a licensing agreement with QRxPharma Limited, an Australian-based specialty pharmaceutical company, whereby Paladin received the exclusive rights to market and sell MoxDuo in Canada. MoxDuo is a novel, patented, immediate release, fixed dose formulation of morphine and oxycodone for the treatment of acute pain.
On October 18, 2012, Paladin entered into a licensing and distribution agreement with Dynamiclear Australia, an Australian-based natural healthcare company, under which Paladin received the exclusive rights to market and sell Dynamiclear Rapid in Canada. Dynamiclear Rapid is a novel, OTC product for the symptomatic treatment of cold sores. In addition, Paladin received an option to acquire the same territorial rights to Dynamiclear's antiviral formulation for Herpes Simplex Virus-2 infections which is currently under development.
(1) EBITDA - Non-IFRS Financial Measures
The term EBITDA (earnings before interest, taxes, depreciation and amortization) does not have any standardized meaning under International Financial Reporting Standards ("IFRS") and therefore may not be comparable to similar measures presented by other companies. The Company defines EBITDA as earnings before interest expense, other expense (income), taxes, depreciation and amortization, foreign exchange gains (losses), share of net income (loss) in associate and joint venture and unusual items; such as write-downs and gains (losses) on intellectual property and investments. EBITDA is calculated and presented consistently from period to period and agrees, on a consolidated basis, with the amount disclosed as "Earnings before under-noted items" on the consolidated statements of income. The Company believes EBITDA to be an important measurement that allows it to assess the operating performance of its ongoing business on a consistent basis without the impact of amortization expenses. The Company excludes amortization expenses because their level depends substantially on non-operating factors such as the historical cost of intangible assets. The Company's method for calculating EBITDA may differ from that used by other issuers and, accordingly, this measure may not be comparable to EBITDA used by other issuers.
(2) Adjusted
The term "adjusted" refers to the proportional consolidation of Litha's results for the period beginning July 2, 2012. Given that Litha is being accounted for on a consolidated basis, the consolidated results include amounts attributable to minority shareholders. Consequently, adjusted results have been provided to highlight Paladin's interest in Litha's results.
Conference Call Notice
Paladin will host a conference call to discuss its third quarter results today at 10:00 a.m. EST. The dial-in number for the conference call is 1-800-736-4594 or 416-981-9000. The call will be audio-cast live and archived for 30 days at .
About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets. With this strategy, a focused Canadian national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. For more information, please visit the Company's web site at .
This press release may contain forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the Company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the annual report as well as in the Company's Annual Information Form for the year ended December 31, 2011. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Company's ongoing quarterly filings, annual report and Annual Information Form and other fillings found on SEDAR at .
Contacts:
Samira Sakhia
Chief Financial Officer
Paladin Labs Inc.
Tel: 514-669-5367
514-344-4675 (FAX)
Email:
Website:
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Datum: 13.11.2012 - 12:30 Uhr
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