This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Gilead Sciences Announces Third Quarter 2012 Financial Results

We own or have rights to various trademarks, copyrights and trade names used in our business, including the following: GILEAD ® , GILEAD SCIENCES ® , TRUVADA ® , VIREAD ® , HEPSERA ® , AMBISOME ® , EMTRIVA ® , COMPLERA ® , EVIPLERA ® , STRIBILD TM , VISTIDE ® , LETAIRIS ® , VOLIBRIS ® , RANEXA ® , CAYSTON ® and RAPISCAN ® . ATRIPLA ® is a registered trademark belonging to Bristol-Myers Squibb & Gilead Sciences, LLC.

LEXISCAN ® is a registered trademark belonging to Astellas U.S. LLC.

MACUGEN ® is a registered trademark belonging to Valeant Pharmaceuticals International, Inc.

SUSTIVA ® is a registered trademark of Bristol-Myers Squibb Pharma Company.

TAMIFLU ® is a registered trademark belonging to Hoffmann-La Roche Inc.

For more information on Gilead Sciences, Inc., please visit www.gilead.com or call the Gilead Public Affairs Department at 1-800-GILEAD-5 (1-800-445-3235).

   

GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(in thousands, except per share amounts)

   
2012   2011 2012   2011
Revenues:
Product sales $ 2,357,978 $ 2,065,859 $ 6,887,560 $ 5,969,025
Royalty, contract and other revenues 68,619   55,801   226,672   215,982  
Total revenues 2,426,597   2,121,660   7,114,232   6,185,007  
Costs and expenses:
Cost of goods sold 597,269 531,989 1,795,545 1,539,963
Research and development 465,831 290,066 1,320,286 826,915
Selling, general and administrative 319,583   295,927   1,095,209   895,764  
Total costs and expenses 1,382,683   1,117,982   4,211,040   3,262,642  
Income from operations 1,043,914 1,003,678 2,903,192 2,922,365
Interest expense (89,322 ) (43,097 ) (275,010 ) (130,420 )
Other income (expense), net (3,505 ) 14,406   (38,665 ) 40,216  
Income before provision for income taxes 951,087 974,987 2,589,517 2,832,161
Provision for income taxes 280,052   237,449   774,877   704,861  
Net income 671,035 737,538 1,814,640 2,127,300
Net loss attributable to noncontrolling interest 4,470   3,586   14,385   11,192  
Net income attributable to Gilead $ 675,505   $ 741,124   $ 1,829,025   $ 2,138,492  
Net income per share attributable to Gilead common stockholders - basic $ 0.89   $ 0.97   $ 2.42   $ 2.72  
Net income per share attributable to Gilead common stockholders - diluted $ 0.85   $ 0.95   $ 2.33   $ 2.66  
Shares used in per share calculation - basic 757,385   767,033   757,032   787,272  
Shares used in per share calculation - diluted 792,304   781,312   783,824   802,762  
 

GILEAD SCIENCES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

(unaudited)

(in thousands, except percentages and per share amounts)

       
2012   2011 2012   2011
Cost of goods sold reconciliation:
GAAP cost of goods sold $ 597,269 $ 531,989 $ 1,795,545 $ 1,539,963
Stock-based compensation expenses (1,864 ) (2,234 ) (6,084 ) (7,765 )
Acquisition related-amortization of purchased intangibles (15,837 ) (17,407 ) (47,509 ) (52,222 )
Non-GAAP cost of goods sold $ 579,568   $ 512,348   $ 1,741,952   $ 1,479,976  
 
Product gross margin reconciliation:
GAAP product gross margin 74.7 % 74.3 % 74.0 % 74.3 %
Stock-based compensation expenses 0.1 % 0.1 % 0.1 % 0.1 %
Acquisition related-amortization of purchased intangibles 0.7 % 0.8 % 0.7 % 0.9 %
Non-GAAP product gross margin (1) 75.5 % 75.3 % 74.8 % 75.3 %
 
Research and development expenses reconciliation:
GAAP research and development expenses $ 465,831 $ 290,066 $ 1,320,286 $ 826,915
Stock-based compensation expenses (23,236 ) (18,389 ) (162,214 ) (54,529 )
Restructuring expenses (232 ) (806 ) (7,322 ) (1,360 )
Acquisition related-transaction costs (345 ) (446 )
Acquisition related-contingent consideration remeasurement (58,810 ) (1,616 ) (64,116 ) (1,198 )
Non-GAAP research and development expenses $ 383,553   $ 269,255   $ 1,086,289   $ 769,382  
 
Selling, general and administrative expenses reconciliation:
GAAP selling, general and administrative expenses $ 319,583 $ 295,927 $ 1,095,209 $ 895,764
Stock-based compensation expenses (29,364 ) (25,897 ) (177,237 ) (83,821 )
Restructuring expenses (2,792 ) (4,388 ) (13,199 ) (6,054 )
Acquisition related-transaction costs (222 ) (535 ) (11,096 ) (1,278 )
Non-GAAP selling, general and administrative expenses $ 287,205   $ 265,107   $ 893,677   $ 804,611  
 
Operating margin reconciliation:
GAAP operating margin 43.0 % 47.3 % 40.8 % 47.2 %
Stock-based compensation expenses 2.2 % 2.2 % 4.9 % 2.4 %
Restructuring expenses 0.1 % 0.2 % 0.3 % 0.1 %
Acquisition related-transaction costs 0.0 % 0.0 % 0.2 % 0.0 %
Acquisition related-amortization of purchased intangibles 0.7 % 0.8 % 0.7 % 0.8 %
Acquisition related-contingent consideration remeasurement 2.4 % 0.1 % 0.9 % 0.0 %
Non-GAAP operating margin (1) 48.5 % 50.7 % 47.7 % 50.6 %
 
Interest expense reconciliation:
GAAP interest expense $ (89,322 ) $ (43,097 ) $ (275,010 ) $ (130,420 )
Acquisition related-transaction costs     7,333    
Non-GAAP interest expense $ (89,322 ) $ (43,097 ) $ (267,677 ) $ (130,420 )
 
Net income attributable to Gilead reconciliation:
GAAP net income attributable to Gilead, net of tax $ 675,505 $ 741,124 $ 1,829,025 $ 2,138,492
Stock-based compensation expenses 39,442 35,221 304,282 109,750
Restructuring expenses 2,165 3,908 14,937 5,569
Acquisition related-transaction costs 123 535 13,665 1,724
Acquisition related-amortization of purchased intangibles 11,462 13,172 34,581 39,225
Acquisition related-contingent consideration remeasurement 60,243   1,213   64,116   900  
Non-GAAP net income attributable to Gilead, net of tax $ 788,940   $ 795,173   $ 2,260,606   $ 2,295,660  
 
Diluted earnings per share reconciliation:
GAAP diluted earnings per share $ 0.85 $ 0.95 $ 2.33 $ 2.66
Stock-based compensation expenses 0.05 0.05 0.39 0.14
Restructuring expenses 0.00 0.01 0.02 0.01
Acquisition related-transaction costs 0.00 0.00 0.02 0.00
Acquisition related-amortization of purchased intangibles 0.01 0.02 0.04 0.05
Acquisition related-contingent consideration remeasurement 0.08   0.00   0.08   0.00  
Non-GAAP diluted earnings per share (1) $ 1.00   $ 1.02   $ 2.89   $ 2.87  
 
Shares used in per share calculation (diluted) reconciliation:
GAAP shares used in per share calculation (diluted) 792,304 781,312 783,824 802,762
Share impact of current stock-based compensation rules (1,310 ) (2,096 ) (1,427 ) (2,007 )
Non-GAAP shares used in per share calculation (diluted) 790,994   779,216   782,397   800,755  
 
Non-GAAP adjustment summary:
Cost of goods sold adjustments $ 17,701 $ 19,641 $ 53,593 $ 59,987
Research and development expenses adjustments 82,278 20,811 233,997 57,533
Selling, general and administrative expenses adjustments 32,378 30,820 201,532 91,153
Interest expense adjustments     7,333    
Total non-GAAP adjustments before tax 132,357 71,272 496,455 208,673
Income tax effect (18,922 ) (17,223 ) (64,874 ) (51,505 )
Total non-GAAP adjustments after tax $ 113,435   $ 54,049   $ 431,581   $ 157,168  
 
Note:
(1) Amounts may not sum due to rounding
 

GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

   
September 30, December 31,
2012 2011
(unaudited) (Note 1)
Cash, cash equivalents and marketable securities $ 2,651,088 $ 9,963,972
Accounts receivable, net 1,766,091 1,951,167
Inventories 1,617,369 1,389,983
Property, plant and equipment, net 856,184 774,406
Intangible assets, net 11,735,354 1,062,864
Goodwill 1,078,919 1,004,102
Other assets 1,258,824   1,156,640
Total assets $ 20,963,829   $ 17,303,134
 
Current liabilities $ 4,802,148 $ 2,514,790
Long-term liabilities 7,411,519 7,920,995
Stockholders’ equity (Note 2) 8,750,162   6,867,349
Total liabilities and stockholders’ equity $ 20,963,829   $ 17,303,134
Notes:
(1) Derived from the audited consolidated financial statements as of December 31, 2011.
(2) As of September 30, 2012, there were 757,933 shares of common stock issued and outstanding.
 

GILEAD SCIENCES, INC.

PRODUCT SALES SUMMARY

(unaudited)

(in thousands)

       
2012   2011 2012   2011
Antiviral products:
Atripla – U.S. $ 539,797 $ 501,576 $ 1,672,676 $ 1,474,580
Atripla – Europe 270,273 254,957 821,094 775,167
Atripla – Other International 55,308   38,166   163,227   111,456
865,378   794,699   2,656,997   2,361,203
 
Truvada – U.S. 414,452 357,660 1,180,791 1,011,837
Truvada – Europe 329,936 319,149 980,626 940,312
Truvada – Other International 59,802   67,918   186,969   176,990
804,190   744,727   2,348,386   2,129,139
 
Viread – U.S. 98,969 87,712 282,737 240,420
Viread – Europe 81,962 82,927 250,955 245,062
Viread – Other International 33,978   22,248   88,324   61,517
214,909   192,887   622,016   546,999
 
Complera / Eviplera – U.S. 82,099 19,044 195,742 19,044
Complera / Eviplera – Europe 14,306 24,771
Complera / Eviplera – Other International 2,892     3,873  
99,297   19,044   224,386   19,044
 
Stribild – U.S. 17,511     17,511  
 
Hepsera – U.S. 12,615 14,170 33,596 42,809
Hepsera – Europe 11,999 18,223 41,384 60,293
Hepsera – Other International 2,705   3,238   7,827   9,281
27,319   35,631   82,807   112,383
 
Emtriva – U.S. 4,717 4,666 13,580 12,482
Emtriva – Europe 1,617 1,772 5,169 5,162
Emtriva – Other International 895   1,229   3,070   3,331
7,229   7,667   21,819   20,975
 
Total Antiviral products – U.S. 1,170,160 984,828 3,396,633 2,801,172
Total Antiviral products – Europe 710,093 677,028 2,123,999 2,025,996
Total Antiviral products – Other International 155,580   132,799   453,290   362,575
2,035,833   1,794,655   5,973,922   5,189,743
 
Letairis 105,054 78,954 293,976 214,765
Ranexa 95,066 81,983 273,822 236,353
AmBisome 87,448 82,241 255,865 249,372
Other products 34,577   28,026   89,975   78,792
322,145   271,204   913,638   779,282
 
Total product sales $ 2,357,978   $ 2,065,859   $ 6,887,560   $ 5,969,025




Stock quotes in this article: GILD 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,428.51 +19.97 0.12%
S&P 500 1,868.33 +3.48 0.19%
NASDAQ 4,102.2110 +6.6950 0.16%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs