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Gilead Sciences Announces Third Quarter 2013 Financial Results

Gilead owns or has rights to various trademarks, copyrights and trade names used in our business, including the following:GILEAD ®, GILEAD SCIENCES ®, STRIBILD ®, COMPLERA ®, EVIPLERA ®, TRUVADA ®, VIREAD ®, TYBOST ®, HEPSERA ®, EMTRIVA ®, LETAIRIS ®, RANEXA ®, AMBISOME ®, CAYSTON ® and VISTIDE ®.

ATRIPLA ® is a registered trademark belonging to Bristol-Myers Squibb & Gilead Sciences, LLC.

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.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)
 
Three Months Ended Nine Months Ended
September 30, September 30,
  2013     2012     2013     2012  
Revenues:
Product sales $ 2,709,652 $ 2,357,978 $ 7,760,505 $ 6,887,560
Royalty, contract and other revenues   73,181     68,619     321,357     226,672  
Total revenues   2,782,833     2,426,597     8,081,862     7,114,232  
Costs and expenses:
Cost of goods sold 681,868 597,269 2,000,979 1,795,545
Research and development 546,244 465,831 1,567,778 1,320,286
Selling, general and administrative   406,860     319,583     1,186,147     1,095,209  
Total costs and expenses   1,634,972     1,382,683     4,754,904     4,211,040  
Income from operations 1,147,861 1,043,914 3,326,958 2,903,192
Interest expense (73,949 ) (89,322 ) (233,744 ) (275,010 )
Other income (expense), net   5,777     (3,505 )   2,222     (38,665 )
Income before provision for income taxes 1,079,689 951,087 3,095,436 2,589,517
Provision for income taxes   294,473     280,052     824,892     774,877  
Net income 785,216 671,035 2,270,544 1,814,640
Net loss attributable to noncontrolling interest   3,390     4,470     12,853     14,385  
Net income attributable to Gilead $ 788,606   $ 675,505   $ 2,283,397   $ 1,829,025  
Net income per share attributable to Gilead common stockholders

- basic

$ 0.51   $ 0.45   $ 1.50   $ 1.21  
Net income per share attributable to Gilead common stockholders

- diluted

$ 0.47   $ 0.43   $ 1.35   $ 1.17  
Shares used in per share calculation - basic   1,532,105     1,514,770     1,526,847     1,514,064  
Shares used in per share calculation - diluted   1,691,898     1,584,608     1,689,647     1,567,648  
 
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(unaudited)
(in thousands, except percentages and per share amounts)
                   
Three Months Ended Nine Months Ended
September 30, September 30,
  2013     2012     2013     2012  
Cost of goods sold reconciliation:
GAAP cost of goods sold $ 681,868 $ 597,269 $ 2,000,979 $ 1,795,545
Stock-based compensation expenses (1,823 ) (1,864 ) (6,296 ) (6,084 )
Acquisition related-amortization of purchased intangibles   (21,264 )   (15,837 )   (63,792 )   (47,509 )
Non-GAAP cost of goods sold $ 658,781   $ 579,568   $ 1,930,891   $ 1,741,952  
 
Product gross margin reconciliation:
GAAP product gross margin 74.8 % 74.7 % 74.2 % 74.0 %
Stock-based compensation expenses 0.1 % 0.1 % 0.1 % 0.1 %
Acquisition related-amortization of purchased intangibles   0.8 %   0.7 %   0.8 %   0.7 %
Non-GAAP product gross margin (1)   75.7 %   75.5 %   75.1 %   74.8 %
 
Research and development expenses reconciliation:
GAAP research and development expenses $ 546,244 $ 465,831 $ 1,567,778 $ 1,320,286
Stock-based compensation expenses (27,740 ) (23,236 ) (79,261 ) (162,214 )
Restructuring expenses 31 (232 ) (4,793 ) (7,322 )
Acquisition related-transaction costs (345 )
Acquisition related-contingent consideration remeasurement   (30,000 )   (58,810 )   (47,442 )   (64,116 )
Non-GAAP research and development expenses $ 488,535   $ 383,553   $ 1,436,282   $ 1,086,289  
 
Selling, general and administrative expenses reconciliation:
GAAP selling, general and administrative expenses $ 406,860 $ 319,583 $ 1,186,147 $ 1,095,209
Stock-based compensation expenses (33,010 ) (29,364 ) (94,736 ) (177,237 )
Restructuring expenses 2,972 (2,792 ) 2,534 (13,199 )
Acquisition related-transaction costs 300 (222 ) (6,860 ) (11,096 )
Acquisition related-amortization of purchased intangibles   (281 )       (844 )    
Non-GAAP selling, general and administrative expenses $ 376,841   $ 287,205   $ 1,086,241   $ 893,677  
 
Operating margin reconciliation:
GAAP operating margin 41.2 % 43.0 % 41.2 % 40.8 %
Stock-based compensation expenses 2.2 % 2.2 % 2.2 % 4.9 %
Restructuring expenses (0.1 )% 0.1 % 0.0 % 0.3 %
Acquisition related-transaction costs 0.0 % 0.0 % 0.1 % 0.2 %
Acquisition related-amortization of purchased intangibles 0.8 % 0.7 % 0.8 % 0.7 %
Acquisition related-contingent consideration remeasurement   1.1 %   2.4 %   0.6 %   0.9 %
Non-GAAP operating margin (1)   45.2 %   48.5 %   44.9 %   47.7 %
 
Interest expense reconciliation:
GAAP interest expense $ (73,949 ) $ (89,322 ) $ (233,744 ) $ (275,010 )
Acquisition related-transaction costs               7,333  
Non-GAAP interest expense $ (73,949 ) $ (89,322 ) $ (233,744 ) $ (267,677 )
 
Net income attributable to Gilead reconciliation:
GAAP net income attributable to Gilead, net of tax $ 788,606 $ 675,505 $ 2,283,397 $ 1,829,025
Stock-based compensation expenses 46,576 39,442 132,335 304,282
Restructuring expenses (2,076 ) 2,165 3,048 14,937
Acquisition related-transaction costs (300 ) 123 6,860 13,665
Acquisition related-amortization of purchased intangibles 16,275 11,462 47,667 34,581
Acquisition related-contingent consideration remeasurement   30,000     60,243     47,442     64,116  
Non-GAAP net income attributable to Gilead, net of tax $ 879,081   $ 788,940   $ 2,520,749   $ 2,260,606  
 
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION - (Continued)
(unaudited)
(in thousands, except percentages and per share amounts)
                   
Three Months Ended Nine Months Ended
September 30, September 30,
  2013     2012     2013     2012  
Diluted earnings per share reconciliation:
GAAP diluted earnings per share $ 0.47 $ 0.43 $ 1.35 $ 1.17
Stock-based compensation expenses 0.03 0.02 0.08 0.19
Restructuring expenses (0.00 ) 0.00 0.00 0.01
Acquisition related-transaction costs (0.00 ) 0.00 0.00 0.01
Acquisition related-amortization of purchased intangibles 0.01 0.01 0.03 0.02
Acquisition related-contingent consideration remeasurement   0.02     0.04     0.03     0.04  
Non-GAAP diluted earnings per share (1) $ 0.52   $ 0.50   $ 1.49   $ 1.44  
 
Shares used in per share calculation (diluted) reconciliation:
GAAP shares used in per share calculation (diluted) 1,691,898 1,584,608 1,689,647 1,567,648
Share impact of current stock-based compensation rules   (1,139 )   (2,620 )   (1,281 )   (2,854 )
Non-GAAP shares used in per share calculation (diluted)   1,690,759     1,581,988     1,688,366     1,564,794  
 
Non-GAAP adjustment summary:
Cost of goods sold adjustments $ 23,087 $ 17,701 $ 70,088 $ 53,593
Research and development expenses adjustments 57,709 82,278 131,496 233,997
Selling, general and administrative expenses adjustments 30,019 32,378 99,906 201,532
Interest expense adjustments               7,333  
Total non-GAAP adjustments before tax 110,815 132,357 301,490 496,455
Income tax effect   (20,340 )   (18,922 )   (64,138 )   (64,874 )
Total non-GAAP adjustments after tax $ 90,475   $ 113,435   $ 237,352   $ 431,581  
 
(1) Amounts may not sum due to rounding.
 
GILEAD SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
           
September 30, December 31,
  2013   2012 (1)
(unaudited)
Cash, cash equivalents and marketable securities $ 2,755,557 $ 2,582,086
Accounts receivable, net 1,971,926 1,751,388
Inventories 1,946,048 1,744,982
Property, plant and equipment, net 1,133,032 1,100,259
Intangible assets, net 12,034,457 11,736,393
Goodwill 1,188,157 1,060,919
Other assets   1,439,251   1,263,811
Total assets $ 22,468,428 $ 21,239,838
 
Current liabilities $ 4,895,124 $ 4,270,020
Long-term liabilities 6,380,831 7,418,949
Stockholders’ equity (2)   11,192,473   9,550,869
Total liabilities and stockholders’ equity $ 22,468,428 $ 21,239,838
 
(1) Derived from the audited consolidated financial statements as of December 31, 2012.
(2) As of September 30, 2013, there were 1,534,028 shares of common stock issued and outstanding.
 
GILEAD SCIENCES, INC.
PRODUCT SALES SUMMARY
(unaudited)
(in thousands)
                   
Three Months Ended Nine Months Ended
September 30, September 30,
  2013   2012   2013   2012
Antiviral products:
Atripla – U.S. $ 575,533 $ 539,797 $ 1,740,689 $ 1,672,676
Atripla – Europe 256,853 270,273 805,848 821,094
Atripla – Other International   67,283   55,308   168,313   163,227
  899,669   865,378   2,714,850   2,656,997
 
Truvada – U.S. 430,173 414,452 1,153,575 1,180,791
Truvada – Europe 313,963 329,936 970,982 980,626
Truvada – Other International   69,516   59,802   197,116   186,969
  813,652   804,190   2,321,673   2,348,386
 
Viread – U.S. 108,718 98,969 305,311 282,737
Viread – Europe 86,177 81,962 262,425 250,955
Viread – Other International   36,660   33,978   124,339   88,324
  231,555   214,909   692,075   622,016
 
Complera / Eviplera – U.S. 126,888 82,099 350,372 195,742
Complera / Eviplera – Europe 74,025 14,306 172,288 24,771
Complera / Eviplera – Other   9,823   2,892   24,948   3,873
  210,736   99,297   547,608   224,386
 
Stribild – U.S. 134,700 17,511 323,639 17,511
Stribild – Europe 7,911 9,759
Stribild – Other International   1,342     2,097  
  143,953   17,511   335,495   17,511
 
Hepsera – U.S. 8,578 12,615 31,399 33,596
Hepsera – Europe 9,760 11,999 30,251 41,384
Hepsera – Other International   1,978   2,705   6,545   7,827
  20,316   27,319   68,195   82,807
 
Emtriva – U.S. 5,127 4,717 14,424 13,580
Emtriva – Europe 1,560 1,617 4,895 5,169
Emtriva – Other International   159   895   837   3,070
  6,846   7,229   20,156   21,819
 
Total Antiviral products – U.S. 1,389,717 1,170,160 3,919,409 3,396,633
Total Antiviral products – Europe 750,249 710,093 2,256,448 2,123,999
Total Antiviral products – Other International   186,761   155,580   524,195   453,290
  2,326,727   2,035,833   6,700,052   5,973,922
 
Letairis 135,072 105,054 381,436 293,976
Ranexa 115,815 95,066 318,698 273,822
AmBisome 97,812 87,448 258,224 255,865
Other products   34,226   34,577   102,095   89,975
  382,925   322,145   1,060,453   913,638
 
Total product sales $ 2,709,652 $ 2,357,978 $ 7,760,505 $ 6,887,560




Stock quotes in this article: GILD 

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