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ANI 2016 results, 2017 guidance

March 2, 2017

For the full year ended December 31, 2016:

  • Record net revenues of $128.6 million, an increase of 69% versus the prior year
  • GAAP net income of $3.9 million, including $6.7 million non-cash impairment charge for a non-core asset
  • Diluted GAAP earnings per share of $0.34, including impact of non-cash impairment charge of $0.36, net of tax
  • Adjusted non-GAAP EBITDA of $61.1 million
  • Adjusted non-GAAP net income per diluted share of $3.78 (previous methodology)

For the fourth quarter 2016:

  • Net revenues of $38.2 million, an increase of 112% as compared to the same period in 2015
  • GAAP net loss of $1.1 million, including $6.7 million non-cash impairment charge for a non-core asset
  • Diluted GAAP loss per share of $0.09, including impact of non-cash impairment charge of $0.36, net of tax
  • Adjusted non-GAAP EBITDA of $17.9 million
  • Adjusted non-GAAP net income per diluted share of $0.84 (previous methodology)

Guidance for 2017:

  • Net revenues of $181 million to $190 million
  • Adjusted non-GAAP EBITDA of $73.1 million to $77.2 million
  • New adjusted non-GAAP diluted earnings per share methodology yielding $3.58 to $3.94 per share, as compared to $2.96 per share for 2016 as calculated under the new methodology

ANI Pharmaceuticals, Inc. (“ANI”) (ANIP) today reported its financial results for the three and twelve months ended December 31, 2016, and provided its financial guidance for the 2017 year. The Company will host its earnings conference call this morning, March 2, 2017, at 10:30 AM ET. Investors and other interested parties can join the call by dialing (866) 776-8875. The conference ID is 51451144.

Financial Summary

(in thousands, except per share data)

Q4 2016

Q4 2015

2016

2015

Net revenues

$ 38,205

$18,035

$128,622

$   76,322

Net (loss)/income

$(1,080)

$  2,876

$    3,934

$  15,375

GAAP (loss)/earnings per diluted share

$  (0.09)

$    0.25

$      0.34

$      1.32

Adjusted non-GAAP EBITDA(a)

$ 17,933

$  9,518

$  61,112

$  43,456

Adjusted non-GAAP net income per diluted share(b)

$     0.84

$    0.52

$      3.78

$      2.72

(a)

See Table 2 for US GAAP reconciliation.

(b)

Previous methodology; see Table 4 for US GAAP reconciliation.

Arthur S. Przybyl, President and CEO, stated,

“ANI had a record year in 2016. Our annual revenues increased 69% to $128.6 million and our annual adjusted non-GAAP EBITDA increased 41% to $61.1 million. In the fourth quarter, revenue increased 112% to $38.2 million and adjusted non-GAAP EBITDA increased 88% to $17.9 million. We continue to regard revenue and adjusted non-GAAP EBITDA as important valuation metrics for ANI. In fact, our reported revenues, adjusted non-GAAP EBITDA, and operating cash flows all established new records for ANI in 2016. ANI generated $27.5 million in operating cash flows and we invested $4.6 million in capital expenditures in 2016.

“Our revenue and adjusted non-GAAP EBITDA growth in 2016 was fueled by several important factors: we launched several products, acquired the NDA for Inderal® LA, and acquired licenses to distribute HC rectal cream and the authorized generic of Lipofen®. We exited 2016 with 25 commercial products, up from 16 at the beginning of the year. To support this growth, and our future growth plans, we hired 45 full time employees in 2016, increasing our overall headcount by 32% primarily to support our manufacturing facilities in Minnesota. All but one of our finished dosage form products are manufactured in the United States. Importantly, we acquired the NDAs for Corticotropin and Corticotropin-Zinc in early 2016 and have advanced the re-commercialization project by hiring our project team, establishing our analytical labs, sourcing porcine pituitaries, and selecting our raw material manufacturer. As a result, work has already begun on the manufacturing of development lots of raw material and advancing chemistry and analytical development, as we reference in our Corticotropin Re-commercialization Update.

“Forecasting 2017, we are providing annual guidance that indicates continued revenue and adjusted non-GAAP EBITDA growth. The midpoint of our 2017 guidance assumes revenue growth of 44% to $185.5 million and adjusted non-GAAP EBITDA growth of 23% to $75.1 million. We have a robust pipeline of product opportunities and anticipate launching several new products in 2017. We remain strategically committed to advancing our growth through selective acquisitions, and to this end, we recently acquired the Inderal® XL and InnoPran XL® products. We are forecasting approximately $40 to $45 million in operating cash flow and expect to invest upwards of $11 million in capital expenditures in 2017. Our investment in R&D is increasing primarily due to Corticotropin project activities. The balance sheet remains strong; we are levered approximately two times and have access to additional liquidity for potential future transactions.

“Management’s 2017 commitment to our shareholders remains the same as 2016: to continue to grow revenues and adjusted non-GAAP EBITDA and to advance Corticotropin to an eventual sNDA filing.”

2017 Financial Guidance

ANI’s estimates are based on projected results for the twelve months ending December 31, 2017 and reflect management’s current beliefs about product pricing, market size, market share, inventory levels, cost of sales, operating costs, taxes, and the anticipated timing of future product launches and events. Beginning in 2017, management is changing the method under which it calculates adjusted non-GAAP net income per diluted share to reflect the estimated tax impact of adjustments utilizing an estimated federal and state statutory rate, which is currently projected to be approximately 37%. Management believes that the new methodology will more appropriately reflect adjusted non-GAAP net income per diluted share as a performance measure. In addition, we will refer to this measure as adjusted non-GAAP diluted earnings per share on a go-forward basis. Table 3 provides a reconciliation of 2016 adjusted non-GAAP diluted earnings per share, calculated in accordance with the new methodology, to the most directly comparable US GAAP measure.

https://yhoo.it/2lzA90z

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