On Feb. 28, Barr Pharmaceuticals
- Barr Pharmaceuticals acquired Pliva for $2.5 billion after Federal Trade Commission (FTC) approval.
- Net sales increased by 79.4%, driven by higher sales in the oral-contraceptive portfolio, the introduction of generic Actiq, and the addition of Pliva's global product line and proprietary products.
- Gross and operating margin were negatively affected by amortization costs from the Pliva acquisition and by a charge of $57 million inventory acquired from Pliva.
- There was a huge rise in long-term debt, led by $2.4 billion incurred in connection with the Pliva acquisition. Barr's balance sheet is highly leveraged and could limit its flexibility in making significant future acquisitions.
- Management forecasted EPS of approximately $3-$3.30 and total revenues to be in the range of $2.3 billion-$2.4 billion for fiscal year 2007.
(Figures in millions, except per-share data)
Income Statement Highlights
Q2 2006 |
Q2 2005 |
Change |
|
---|---|---|---|
Sales |
$584.0 |
$325.5 |
79.4% |
Net Profit |
($390.9) |
$94.9 |
N/A |
EPS |
($3.67) |
$0.88 |
N/A |
Diluted Shares |
106.4 |
107.4 |
(0.9%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q2 2006 |
Q2 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
51.1% |
72.7% |
(21.6) |
Operating Margin |
(56.2%) |
44.5% |
(100.6) |
Net Margin |
(66.9%) |
29.2% |
(96.1) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q2 2006 |
Q2 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$914.7 |
$421.8 |
116.9% |
Accounts Rec. |
$533.1 |
$192.7 |
176.7% |
Inventory |
$452.4 |
$144.0 |
214.2% |
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
---|---|---|---|
Accounts Payable* |
$439.8 |
$142.0 |
209.7% |
Long-Term Debt** |
$2,679.7 |
$11.5 |
23,201% |
**Includes total debt.
Learn the ways of the balance sheet.
Cash Flow Highlights
YTD 2006 |
YTD 2005 |
Change |
|
---|---|---|---|
Cash From Ops. |
$187.0 |
$104.8 |
78.5% |
Capital Expenditures |
$31.7 |
$36.0 |
(12.0%) |
Free Cash Flow |
$155.3 |
$68.7 |
126.0% |
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