Questcor Reports Fourth Quarter and Full Year 2011 Financial Results
-Q4 2011 Net Sales of $75.5M vs. $29.3M in Q4 2010- -Q4 2011 Net Income per
Diluted Share of $0.48 vs. $0.10 in Q4 2010- -2011 Net Sales of $218.2 Million
vs. $115.1M in 2010- -2011 Net Income per Diluted Share of $1.21 vs. $0.54 in
2010- -Conference Call and Webcast to Be Held Today at 4:30 p.m. ET, 1:30 p.m.
PT-
ANAHEIM, Calif., Feb. 22, 2012 /PRNewswire via COMTEX/ -- Questcor
Pharmaceuticals, Inc. (QCOR) today reported financial results for the fourth
quarter and full year ended December 31, 2011.
Net sales for the fourth quarter were $75.5 million, reflecting continued
physician acceptance of H.P. Acthar? Gel (Acthar) for treating serious,
difficult-to-treat medical conditions. Net sales in the fourth quarter 2010 were
$29.3 million.
GAAP net income for the fourth quarter of 2011 was $31.6 million or $0.48 per
diluted common share. GAAP net income for the fourth quarter of 2010 was $6.4
million, or $0.10 per diluted common share. Non-GAAP net income (which excludes
non-cash share-based compensation expense, depreciation and amortization expense,
tax adjustments and a goodwill impairment charge) for the quarter ended December
31, 2011 was $31.6 million or $0.47 per diluted common share. Non-GAAP net income
for the year ago quarter was $8.0 million, or $0.12 per diluted common share.
For the year ended December 31, 2011, net sales totaled $218.2 million, compared
to $115.1 million in the prior year. GAAP net income for the year ended December
31, 2011 was $79.6 million or $1.21 per diluted share, compared to GAAP net
income of $35.1 million or $0.54 per diluted share for the year ended December
31, 2010. Non-GAAP net income was $84.0 million or $1.27 per diluted share for
the year ended December 31, 2011, compared to non-GAAP net income of $39.0
million or $0.60 per diluted share for the year ended December 31, 2010.
"Net sales growth in the fourth quarter was driven by the increasing numbers of
physicians who are recognizing the potential for Acthar to help patients with MS
and NS," said Don M. Bailey, President and CEO of Questcor. "We are particularly
encouraged by the growing number of physicians who recognize the therapeutic
value of Acthar in their practices, especially for those patients who have not
adequately responded to other treatments. At the same time, we are continuing to
build our understanding of the potential immune-modulating properties of Acthar,
and are considering how best to study the broader possible therapeutic
applications in other inflammatory and autoimmune diseases, many of which are
already in the list of approved indications on the Acthar label."
"The planned expansion of our nephrology sales force from 28 to 58
representatives is underway and should be completed during the second quarter,
ahead of our original schedule," noted Steve Cartt, Chief Operating Officer. "We
are also planning to increase the number of neurology representatives after the
nephrology expansion is complete. Furthermore, a possible pilot commercial effort
in rheumatology is being carefully considered for the fourth quarter of this
year."
"Paid prescriptions in IS were higher in the fourth quarter, reflecting a growing
recognition of the important role of Acthar in treating this devastating
condition. As announced yesterday, we were pleased to accept the award from the
Child Neurology Foundation (CNF) for outstanding corporate responsibility and
leadership, and have further increased our funding to CNF so that they can
continue their important research and education efforts related to childhood
neurological conditions like IS," added Mr. Cartt.
"Our scientific research and investments continue to expand. In addition to our
ongoing studies in NS and MS, we are planning new efforts in Lupus, Diabetic
Nephropathy and other auto-immune and inflammatory conditions with unmet medical
need," commented Dr. David Young, Chief Scientific Officer. "We have also
increased our investigation into better understanding how Acthar works and how
its biological activity differs from that of corticosteriods such as
methylprednisolone and prednisone."
The Company continues to invest in its management systems and infrastructure,
including those related to scientific research, medical affairs, and compliance.
Last week, Questcor announced the appointment of Scott Whitcup, M.D., Chief
Scientific Officer of Allergan, Inc., to Questcor's Board of Directors. Also, the
Company has recently promoted:
Steve Cartt to Chief Operating Officer -Dave Medeiros to Executive Vice President
and Chief Technical Officer -Eldon Mayer to Senior Vice President of Commercial
Operations -Ray Furey to Vice President, Compliance and Chief Compliance Officer
-Gary Hogge, PhD, to Vice President, Medical Affairs.
In addition, Questcor has recently hired Darlene Romine as Vice President, Sales
Operations.
"These promotions and additions reflect the expanded needs of Questcor as our
sales and headcount have grown and are expected to continue to increase," noted
Don Bailey. "I want to congratulate all of these executives on their
well-deserved promotions."
Acthar Label Information
The label for Acthar was modernized in October 2010 and has 19 approved
indications. Substantially all of the Company's net sales result from
prescriptions written by physicians for the following on-label indications for
Acthar:
Multiple Sclerosis (MS): "for the treatment of acute exacerbations of multiple
sclerosis in adults. Clinical controlled trials have shown H.P. Acthar Gel to be
effective in speeding the resolution of acute exacerbations of multiple
sclerosis. However, there is no evidence that it affects the ultimate outcome or
natural history of the disease." Typically Acthar is used as second line
treatment for patients with MS exacerbations.
Nephrotic Syndrome (NS): "to induce a diuresis or a remission of proteinuria in
the nephrotic syndrome without uremia of the idiopathic type or that due to lupus
erythematosus." NS can result from several underlying conditions, and prescribing
physicians indicate that Acthar is most commonly being used in patients who
suffer from NS due to idiopathic membranous nephropathy, focal segmental
glomerulosclerosis (FSGS), IgA nephropathy, minimal change disease and lupus.
Infantile Spasms (IS): "as monotherapy for the treatment of infantile spasms in
infants and children under 2 years of age."
The Company is currently planning to explore the potential initiation of a
commercial effort in rheumatology in late 2012, as Acthar is approved for the
following rheumatology-related conditions:
Collagen Diseases: "during an exacerbation or as maintenance therapy in selected
cases of: systemic lupus erythematosus, systemic dermatomyositis (polymyositis)."
Rheumatic Disorders: "as adjunctive therapy for short-term administration (to
tide the patient over an acute episode or exacerbation) in: Psoriatic arthritis,
Rheumatoid arthritis, including juvenile rheumatoid arthritis (selected cases may
require low-dose maintenance therapy), Ankylosing spondylitis."
Shipped Acthar Vial and Prescription Trend Information
During the fourth quarter of 2011, Questcor shipped 3,360 vials of Acthar,
compared to 1,680 vials in the year ago quarter. For the full year of 2011,
Questcor shipped 10,710 vials of Acthar compared to 6,696 vials in 2010. The
Company's quarterly vial shipments continue to be subject to significant
variation due to the size and timing of individual orders received from
Questcor's distributor, and the timing of when these orders are received and
filled can significantly affect net sales and net income in any particular
quarter. Fourth quarter-ending inventory levels in the channel appear to have
remained relatively unchanged compared to the levels at the end of the third
quarter of 2011. The Company believes that investors should consider the
Company's results over several quarters when analyzing the Company's performance.
Because Acthar prescriptions are filled at specialty pharmacies, the Company does
not receive complete information regarding either the number of prescriptions or
the number of vials by therapeutic area for all of the patients being treated
with Acthar. However, Questcor is able to monitor trends in payer mix and areas
of therapeutic use for new Acthar prescriptions based on data it receives from
its reimbursement support center. Questcor estimates that over 90% of new Acthar
prescriptions are processed by this support center, but believes that very few
refill prescriptions are processed there.
In an effort to help investors better understand historical trends in the
prescriptions written for Acthar within each of its current three key therapeutic
areas, MS, NS, and IS, Questcor has grouped prescriptions processed by its
reimbursement center into two groups -- "Paid" and "Fully Rebated." "Paid"
prescriptions include those prescriptions for which Questcor retains its full
selling price for Acthar, as well as Tricare prescriptions that subject Questcor
to a rebate obligation of up to 24% of its selling price. "Fully Rebated"
prescriptions are those for which Questcor can identify that it has recorded a
rebate liability approximately equal to (or for periods prior to January 1, 2010
greater than) Questcor's selling price. From time to time during the past several
years, the rebate liability for some government insurance programs has shifted
between these two categories.
Therefore, the prescriptions that fall into the "Paid" and "Fully Rebated"
categories have also shifted over time as follows:
"Paid" prescriptions (Rxs) include all prescriptions in the following payer
categories:
Commercial--For all time periods.
Tricare--For 2010 and 2011, but not 2009.
Medicaid Managed Care--For all time periods through March 22, 2010 (see Note 1
below the tables).
"Fully Rebated" prescriptions (Rxs) include:
Those reimbursed by fee-for-service Medicaid insurance and other state programs
eligible for full rebates as Medicaid Waivers Programs for all time periods.
Tricare--For 2009.
Medicaid Managed Care--For all time periods beginning March 23, 2010 (see Note 1
below the tables).
The following tables show, for each of the three key Acthar therapeutic uses, the
number of new prescriptions shipped grouped into "Paid" and "Fully Rebated":
Multiple Sclerosis (and related conditions) New Rxs
PaidYear-Over-YearFully Rebated Total
Growth in Paid Rx
-------- ----------------- ------------- --------
2009
----------
Q1-0978225%886
---------- -------- ----------------- ------------- --------
Q2-09124254%17141
---------- -------- ----------------- ------------- --------
Q3-09141176%20161
---------- -------- ----------------- ------------- --------
Q4-09213209%15228
---------- -------- ----------------- ------------- --------
Total 2009 556211%60616
---------- -------- ----------------- ------------- --------
2010
----------
Q1-10231196%12243
---------- -------- ----------------- ------------- --------
Q2-10304145%24328
---------- -------- ----------------- ------------- --------
Q3-10323129%19342
---------- -------- ----------------- ------------- --------
Q4-1035466%24378
---------- -------- ----------------- ------------- --------
Total 2010 1,212118%791,291
---------- -------- ----------------- ------------- --------
2011
----------
Q1-11508120%49557
---------- -------- ----------------- ------------- --------
Q2-11751147%58809
---------- -------- ----------------- ------------- --------
Q3-11886174%46932
---------- -------- ----------------- ------------- --------
Q4-11945167%44989
---------- -------- ----------------- ------------- --------
Total 2011 3,090155%1973,287
---------- -------- ----------------- ------------- --------
Nephrotic Syndrome (and related conditions) New Rxs *
PaidFully Rebated Total
------------- ------------- -------------
2010
-------------
Q1-1011011
------------- ------------- ------------- -------------
Q2-10415
------------- ------------- ------------- -------------
Q3-10808
------------- ------------- ------------- -------------
Q4-10707
------------- ------------- ------------- -------------
Total 201030131
------------- ------------- ------------- -------------
2011
-------------
Q1-1118119
------------- ------------- ------------- -------------
Q2-1145449
------------- ------------- ------------- -------------
Q3-1160262
------------- ------------- ------------- -------------
Q4-1114619165
------------- ------------- ------------- -------------
Total 201126926295
------------- ------------- ------------- -------------
* Questcor commenced commercial efforts in NS in the second quarter of 2011.
Infantile Spasms (and related conditions) New Rxs**
PaidFully Rebated Total
------------ ------------- ------------
2009
------------
Q1-0910475179
------------ ------------ ------------- ------------
Q2-099168159
------------ ------------ ------------- ------------
Q3-096058118
------------ ------------ ------------- ------------
Q4-099445139
------------ ------------ ------------- ------------
Total 2009349246595
------------ ------------ ------------- ------------
2010
------------
Q1-108948137
------------ ------------ ------------- ------------
Q2-109566161
------------ ------------ ------------- ------------
Q3-109278170
------------ ------------ ------------- ------------
Q4-109168159
------------ ------------ ------------- ------------
Total 2010367260627
------------ ------------ ------------- ------------
2011
------------
Q1-118971160
------------ ------------ ------------- ------------
Q2-1110679185
------------ ------------ ------------- ------------
Q3-1111269181
------------ ------------ ------------- ------------
Q4-1112051171
------------ ------------ ------------- ------------
Total 2011427270697
------------ ------------ ------------- ------------
** Questcor commenced commercial efforts in IS in the fourth quarter of 2010.
Notes:
(1) Because the March 2010 health care legislation made Medicaid Managed Care
Organization (MCO) prescriptions rebate eligible effective March 23, 2010, a
rebate liability for the MCO prescriptions estimated to be filled on or after
March 23, 2010 has been accrued. The Company does not have the ability to
accurately identify every Medicaid Managed Care prescription so it is possible
that some prescriptions identified as "Paid" in the tables may subsequently be
reclassified as "Fully Rebated."
(2) "Related Conditions" includes diagnoses that are either alternate
descriptions of the medical condition or are closely related to the medical
condition which is the focus of the table. For example, a prescription for
"demyelinating disease of the central nervous system" would be included as an
MS-related condition for purpose of this table. About 5% of the prescriptions in
the tables are for related conditions.
(3) A prescription may or may not represent a new patient or a new therapy for
the patient receiving the prescription. This can more frequently be the case for
NS prescriptions due to the longer treatment regimen for NS. Questcor uses
business rules to determine whether a prescription should be included in this
table. From time to time the Company may modify these rules which could cause
some changes to the historic numbers in the tables above.
(4) Historical trend information is not necessarily indicative of future results.
Additionally, paid prescriptions should not be viewed as predictive of Questcor's
net sales due to a variety of factors, including changes in the number of vials
used in connection with each prescription.
Cash and Share Repurchase Program
As of February 15, 2012, Questcor's cash, cash equivalents and short-term
investments totaled $226 million, and its accounts receivable totaled $44
million.
The Company did not repurchase any shares during the fourth quarter. As of
December 31, 2011, Questcor had 63.6 million shares of common stock outstanding,
with 4.3 million shares remaining under its common stock repurchase program.
Sales Reserves
Questcor's sales reserves during the quarter ended December 31, 2011, including
the Company's reserves for Medicaid rebates, represented 12% of gross sales of
$86.1 million.
As required by federal regulations, Questcor provides rebates to state Medicaid
programs for Acthar dispensed to Medicaid patients covered under Medicaid
rebate-eligible insurance plans. Since the Company does not receive rebate claims
from the various state Medicaid agencies until well after the close of the
quarter in which the underlying sales of vials to its distributor took place, the
Company establishes reserves for expected rebate claims on a quarterly basis. As
a result of the adoption of health care reform, for periods after March 23, 2010,
the Company has also included in this reserve an estimate for the liability due
to states related to prescriptions of Acthar for patients covered under state
Medicaid Managed Care Organizations (Medicaid MCO), which prescriptions were not
previously rebate eligible.
Questcor experienced a decrease in sales reserves as a percentage of gross sales
during each of the four quarters of 2011. The principal reasons for these
decreases have been (1) an increase in the percentage of total Acthar
prescriptions written to treat adults suffering from MS and NS relative to the
percentage used to treat infants suffering from IS, as there is a very high
percentage of infants enrolled in Medicaid, and (2) an increase in the number of
IS prescriptions being fulfilled through the Acthar free drug program
administered by the National Organization for Rare Disorders. Since September
2007, Questcor has provided $124 million in value through this free drug program.
Conference Call Details
The Company will host a conference call and slide presentation via webcast today,
February 22, 2012, at 4:30 p.m. ET/ 1:30 p.m. PT, to discuss fourth quarter and
full year 2011 results. Don Bailey, President and Chief Executive Officer, and
other members of the management team will host the call.
To participate in the live call by telephone, please dial (877) 941-0844 for
domestic participants and (480) 629-9835 for international participants.
Participants are asked to call the above numbers 5-10 minutes prior to the start
time. A listen-only webcast of the conference call including the presentation
slides will be accessible in the "Investor Relations" section under "Events &
Presentations" at ir.questcor.com. If listening via telephone,
to view the accompanying presentation slides, navigate to the live webcast as
noted above and choose the "No Audio -- Slides Only" option to view the slides in
conjunction with the live conference call. Listeners should go to the website at
least 15 minutes prior to the live conference call to install any necessary
software.
An audio replay of the call will be available for 7 days following the call. This
replay can be accessed by dialing (800) 406-7325 for domestic callers and (303)
590-3030 for international callers, both using passcode 4509827#. An archived
webcast will also be available at ir.questcor.com.
Use of Non-GAAP Net Income
The Company believes it is important to share non-GAAP financial metrics with
shareholders as these metrics may better represent the ongoing economics of the
business and reflect how we manage the business. Accordingly, management believes
investors' understanding of the Company's financial performance is enhanced as a
result of our disclosing these non-GAAP financial metrics. Non-GAAP net income
should not be viewed in isolation, or as a substitute for, or as superior to,
reported GAAP net income. The reconciliation between GAAP and Non-GAAP net income
is provided with the financial tables included with this release.
About Questcor
Questcor Pharmaceuticals, Inc. is a biopharmaceutical company whose primary
product helps patients with serious, difficult-to-treat medical conditions.
Questcor's primary product is H.P. Acthar? Gel (repository corticotropin
injection), an injectable drug that is approved by the FDA for the treatment of
19 indications. Questcor currently generates substantially all of its net sales
from: the treatment of patients with acute exacerbations of multiple sclerosis in
adults, the treatment of patients with nephrotic syndrome, and the treatment of
patients with infantile spasms in children under two years of age. With respect
to nephrotic syndrome, the FDA has approved Acthar to "induce a diuresis or a
remission of proteinuria in the nephrotic syndrome without uremia of the
idiopathic type or that due to lupus erythematosus." Questcor is also currently
planning to explore the potential initiation of a commercial effort in
rheumatology, as Acthar is approved for several rheumatology-related conditions
including Lupus, and Dermatomyositis (Polymyositis). Questcor is also exploring
the possibility of developing markets for other on-label indications and the
possibility of pursuing FDA approval of additional indications not currently on
the Acthar label where there is high unmet medical need. In October 2011, Forbes
magazine ranked Questcor number one in its annual rankings of America's Best
Small Companies. For more information about Questcor, please visit
questcor.com.
Note: Except for the historical information contained herein, this press release
contains forward-looking statements that have been made pursuant to the Private
Securities Litigation Reform Act of 1995. These statements relate to future
events or our future financial performance. In some cases, you can identify
forward-looking statements by terminology such as "believes," "continue,"
"could," "estimates," "expects," "growth," "may," "plans," "potential," "should,"
"substantial" or "will" or the negative of such terms and other comparable
terminology. These statements are only predictions. Actual events or results may
differ materially. Factors that could cause or contribute to such differences
include, but are not limited to, the following:
Our reliance on Acthar for substantially all of our net sales and profits;
Reductions in vials used per prescription resulting from changes in treatment
regimens by physicians or patient compliance with physician recommendations;
The complex nature of our manufacturing process and the potential for supply
disruptions or other business disruptions;
The lack of patent protection for Acthar; and the possible FDA approval and
market introduction of competitive products;
Our ability to continue to generate revenue from sales of Acthar to treat
on-label indications associated with NS, and our ability to develop other
therapeutic uses for Acthar;
Research and development risks, including risks associated with Questcor's work
in the area of NS and potential work in the area of Lupus, and our reliance on
third-parties to conduct research and development and the ability of research and
development to generate successful results;
Our ability to comply with federal and state regulations, including regulations
relating to pharmaceutical sales and marketing practices;
Regulatory changes or other policy actions by governmental authorities and other
third parties in connection with U.S. health care reform or efforts to reduce
federal and state government deficits;
Our ability to receive high reimbursement levels from third party payers;
An increase in the proportion of our Acthar unit sales comprised of
Medicaid-eligible patients and government entities;
Our ability to estimate reserves required for Acthar used by government entities
and Medicaid-eligible patients and the impact that unforeseen invoicing of
historical Medicaid prescriptions may have upon our results;
Our ability to effectively manage our growth, including the expansion of our NS
selling effort, and our reliance on key personnel;
The impact to our business caused by economic conditions;
Our ability to protect our proprietary rights;
The risk of product liability lawsuits;
Unforeseen business interruptions and security breaches;
Volatility in Questcor's monthly and quarterly Acthar shipments and end-user
demand, as well as volatility in our stock price; and
Other risks discussed in Questcor's annual report on Form 10-K for the year ended
December 31, 2011 as filed with the Securities and Exchange Commission, or SEC,
on February 22, 2012, and other documents filed with the SEC.
The risk factors and other information contained in these documents should be
considered in evaluating Questcor's prospects and future financial performance.
Questcor undertakes no obligation to publicly release the result of any revisions
to these forward-looking statements, which may be made to reflect events or
circumstances after the date of this release.
For more information, please visit questcor.com or
acthar.com.
Questcor Pharmaceuticals, Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
Three Months EndedTwelve Months Ended
December 31,December 31,
2011201020112010
--------- --------- ---------- ---------
Revenue
Net sales$75,535$29,296 $218,169 $115,131
Cost of sales (exclusive of amortization of purchased technology) 4,0131,72312,4598,013
--------- --------- ---------- ---------
Gross profit71,52227,573205,710107,118
Operating expenses:
Selling and marketing16,99811,16356,72831,519
General and administrative5,7662,39317,74310,279
Research and development5,7303,06616,77810,934
Depreciation and amortization2921541,044546
Impairment of goodwill--299-
--------- --------- ---------- ---------
Total operating expenses28,78616,77692,59253,278
--------- --------- ---------- ---------
Income from operations42,73610,797113,11853,840
Interest and other income, net145147627533
---------
Income before income taxes42,88110,944113,74554,373
Income tax expense11,2404,52734,15419,302
Net income$ 31,641$6,417$79,591$35,071
Net income per share:
Basic$0.50$0.10$1.27$0.56
Diluted$0.48$0.10$1.21$0.54
Shares used in computing net income per share:
Basic63,23662,25262,49862,112
Diluted66,56565,39066,01064,741
Reconciliation of Non-GAAP Adjusted Financial Disclosure
Adjusted net income$31,584$8,021$83,956$38,988
Share-based compensation expense (1)(1,416)(598)(5,128)(2,649)
Depreciation and amortization expense (2)(216)(90)(731)(352)
Tax adjustments (3)1,689(916)1,703(916)
Impairment of goodwill (4)--(209)-
--------- --------- ---------- ---------
Net income - GAAP$31,641 $6,417$79,591$35,071
Adjusted net income per share - basic$0.50$0.13$1.34$0.63
Share-based compensation expense (1)(0.02)(0.01)(0.08)(0.04)
Depreciation and amortization expense (2)(0.00)(0.00)(0.01)(0.01)
Tax adjustments (3)0.03(0.01)0.03(0.01)
Impairment of goodwill (4)(0.00)(0.00)(0.00)(0.00)
--------- --------- ---------- ---------
Net income per share - basic$0.50$0.10$1.27$0.56
Adjusted net income per share - diluted$0.47$0.12$1.27$0.60
Share-based compensation expense (1)(0.02)(0.01)(0.08)(0.04)
Depreciation and amortization expense (2)(0.00)(0.00)(0.01)(0.01)
Tax adjustments (3)0.03(0.01)0.03(0.01)
Impairment of goodwill (4)(0.00)(0.00)(0.00)(0.00)
--------- --------- ---------- ---------
Net income per share - diluted$0.48$0.10$1.21$0.54
Net income per share - basic and diluted may not foot due to rounding.
Use of Non-GAAP Financial Measures
Our "non-GAAP adjusted net income" excludes the following items from GAAP net
income:
(1) Share-based compensation expense.
(2) Depreciation and amortization expense
(3) Tax adjustments include: (1) the valuation allowance we established in the fourth quarter of 2010 relating to our single sales factor apportionment election which was made in 2011 for California; (2) the recording of a one-time tax credit in 2011 for the orphan drug designation; and (3) the reserve for the liability associated with the Ohio Commercial Activity Tax for the period 2007 - 2010 (the expense associated with this reserve is included in operating expenses).
(4) Impairment of goodwill related to the write-off of goodwill associated with an acquisition transaction completed in 1999.
Questcor Pharmaceuticals, Inc.
Consolidated Balance Sheets
(In thousands, except share amounts)
December 31,December 31,
20112010
------------------ ------------
ASSETS
Current assets:
Cash and cash equivalents$88,469 $41,508
Short-term investments121,68073,324
------------------ ------------
Total cash, cash equivalents and short-term investments210,149114,832
Accounts receivable, net of allowances of $0 and $25 at December 31, 2011 and 2010, respectively27,80111,128
Inventories, net of allowances of $0 and $158 at December 31, 2011 and 2010, respectively5,2263,726
Prepaid income taxes6,9403,532
Prepaid expenses and other current assets3,3911,864
Deferred tax assets12,0938,417
Total current assets265,600143,499
Property and equipment, net1,970872
Purchased technology, net2,7783,074
Goodwill-299
Deposits and other assets5665
Deferred tax assets5,4044,184
------------------ ------------
Total assets$275,808$151,993
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable$5,503$3,869
Accrued compensation11,5904,158
Sales-related reserves34,11921,511
Other accrued liabilities4,5091,973
Total current liabilities55,72131,511
Lease termination, deferred rent and other non-current liabilities261355
Total liabilities55,98231,866
------------------ ------------
Shareholders' equity:
Preferred stock, no par value, 7,500,000 shares authorized; none outstanding--
Common stock, no par value, 105,000,000 shares authorized, 63,645,781 and 62,418,464 shares issued and outstanding at December 31, 2011 and 2010, respectively 94,97674,809
Retained earnings124,88645,295
Accumulated other comprehensive income(36)23
------------------ ------------
Total shareholders' equity219,826120,127
------------------ ------------
Total liabilities and shareholders' equity$275,808$151,993
Questcor Pharmaceuticals, Inc.
Consolidated Statements of Cash Flows
(In thousands)
Year Ended
December 31,
20112010
------------- -------------
OPERATING ACTIVITIES
Net income$79,591$35,071
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense7,3263,739
Deferred income taxes(4,896)(1,029)
Amortization of investments1,250678
Depreciation and amortization1,044546
Impairment of goodwill299-
Loss on disposal of property and equipment11-
Changes in operating assets and liabilities:
Accounts receivable(16,673)3,705
Inventories(1,500)(348)
Prepaid income taxes(3,408)(3,532)
Prepaid expenses and other current assets(1,527)(702)
Accounts payable1,634(9,052)
Accrued compensation7,4322,018
Sales-related reserves12,6086,589
Other accrued liabilities2,526(255)
Other non-current liabilities(118)(871)
Net cash flows provided by operating activities85,59936,557
INVESTING ACTIVITIES
Purchase of property and equipment(1,823)(713)
Purchase of short-term investments(162,301)(106,647)
Proceeds from maturities of short-term investments112,63662,560
Deposits and other assets9645
Net cash flows used in investing activities(51,479)(44,155)
FINANCING ACTIVITIES
Income tax benefit realized from share-based compensation plans17,7121,335
Issuance of common stock, net6,5821,942
Repurchase of common stock(11,453)-
Net cash flows provided by financing activities12,8413,277
------------- -------------
Increase (decrease) in cash and cash equivalents46,961(4,321)
Cash and cash equivalents at beginning of period41,50845,829
Cash and cash equivalents at end of period$88,469$41,508
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest$16 $7
Cash paid for income taxes$25,278$23,185
Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Capital lease obligation$34 $- |
