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TheStreet Open House

Elan Reports Fourth Quarter And Full-Year 2012 Financial Results

Stocks in this article: ELN

Quarter 4, 2012 Operating Performance (excluding Tysabri)

Adjusted EBITDA losses from continuing operations were $41.5 million for the fourth quarter of 2012, compared to $47.4 million for the fourth quarter of 2011. Operating loss excluding other net charges for the fourth quarter of 2012 decreased to $48.1 million, compared to $56.0 million for the fourth quarter of 2011. These improvements principally reflect the impact of the operations restructuring in the fourth quarter of 2012.

The net income from continuing operations for the fourth quarter of 2012 of $91.3 million includes other charges of $59.3 million (see page 13), a net charge on debt retirement of $76.1 million (see page 14) and a $304.2 million tax credit primarily related to the recognition of a deferred tax asset expected to be utilized in relation to the expected gain on sale of Tysabri in 2013 (see page 16). The net loss from continuing operations for the fourth quarter of 2011 of $189.9 million includes other charges of $21.4 million and a net charge on debt retirement of $47.0 million.

The net income of $152.8 million (2011: $134.7 million net loss) includes net income from discontinued operations of $61.5 million (2011: $55.2 million), related to the Tysabri, Prothena and EDT businesses. For further information please refer to page 17 and Appendix III on page 24.

Full-Year 2012 Operating Performance (excluding Tysabri)

Adjusted EBITDA losses from continuing operations decreased to $168.1 million for the full year 2012, from $174.9 million for the full-year 2011. Operating loss excluding other net charges for the full-year 2012 decreased to $208.6 million, from $210.8 million for the full-year 2011. These improvements reflect lower operating expenses, following the operations restructuring in the fourth quarter of 2012.

The net loss from continuing operations for the full-year 2012 of $372.7 million includes other net charges of $168.9 million (see page 13), a net charge on debt retirement of $76.1 million (see page 14), an impairment charge of $117.3 million related to the Janssen AI equity method investment (see page 15) and a $304.2 million tax credit related primarily to the recognition of a deferred tax asset expected to be utilized in relation to the expected gain on sale of Tysabri in 2013 (see page 16). The net loss from continuing operations for the full-year 2011 of $453.5 million includes other net charges of $24.3 million and a net charge on debt retirement of $47.0 million.

The net loss of $137.4 million (2011: $560.5 million net income) includes net income from discontinued operations of $235.3 million (2011: $1,014.0 million), related to the Tysabri, Prothena and EDT businesses. For further information please refer to page 17 and Appendix IV on page 25.

Pro Forma Revenue (including Tysabri)

For the fourth quarter of 2012, revenue increased by 18% to $319.8 million from $271.0 million for the fourth quarter of 2011. For the full-year 2012, revenue increased by 13% to $1,202.8 million from $1,068.1 million for the full-year 2011.

Three Months Ended December 31

   

Twelve Months Ended December 31

2011 US$m

 

2012 US$m

     

2011 US$m

 

2012 US$m

  Product revenue  
(0.4) Maxipime 0.4
0.4 Azactam 0.9 (0.5)
0.4 0.2 Royalties 2.7 0.7
0.4 0.2 Total revenue from continuing operations 4.0 0.2
196.4 243.0 Tysabri – U.S. 746.5 886.0
74.2 76.6 Tysabri – ROW 317.6 316.6
270.6 319.6 Total Tysabri 1,064.1 1,202.6
271.0 319.8 Total pro forma revenue 1,068.1 1,202.8
 

Elan ceased distributing Azactam and Maxipime in 2010. The revenue and adjustments for these products in 2011 and 2012 relates to adjustments to discounts and allowances associated with sales prior to the cessation of distribution.

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