Mylan Laboratories Inc. Q1 2010 Earnings Call Transcript

Mylan Laboratories Inc. Q1 2010 Earnings Call Transcript
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Mylan Laboratories Inc. (MYL)

Q1 2010 Earnings Call

April 29, 2010 10:00 am ET

Executives

Dan Crookshank - VP, Global IR

Robert Coury - Chairman & CEO

Heather Bresch - President

John Sheehan - EVP & CFO

Rajiv Malik - EVP & COO

Dan Rizzo - SVP, CAO & Corporate Controller

Analysts

Chris Schott - JPMorgan

Randall Stanicky - Goldman Sachs

Gregg Gilbert - Banc of America/Merrill Lynch

Marc Goodman - UBS

John Boris - Citi

Ann Trimble - Barclays Capital

Ronny Gal - Bernstein

Jim Dawson - Buckingham Research

Michael Tong - Wells Fargo

Ken Cacciatore - Cowen and Company

Presentation

Operator

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Previous Statements by MYL
» Mylan Inc. Q4 2009 Earnings Call Transcript
» Mylan Inc. Q2 2009 Earnings Call Transcript
» Mylan Inc. Q1 2009 Earnings Call Transcript

Good day everyone and welcome to today’s Mylan’s 2010 first quarter earnings conference call. Today’s conference is being recorded and now it is my pleasure to turn the conference over to Mr. Dan Crookshank, Mylan’s Vice President of Global Investor Relations. Please go ahead, sir.

Dan Crookshank

Thank you, Kelsey. Good morning, everyone. Joining me for today’s call are Mylan’s Chairman and Chief Executive Officer, Robert J. Coury, President, Heather Bresch, Executive Vice President and Chief Financial Officer; John Sheehan, Executive Vice President and Chief Operating Officer Rajiv Malik, and Senior Vice President, Corporate Controller and Principal Accounting Officer, Dan Rizzo.

During today’s call, including the Q-and-A, we will be making forward-looking statements, including those relating to our anticipated business levels, our future earnings, our planned activities, our anticipated growth and other expectations and targets for future periods.

Note that these statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Because these statements are forward-looking, they inherently involve risks and uncertainties and accordingly our actual results may differ materially from those expressed or implied by such forward-looking statements.

Factors that could cause or contribute to such differences include, but are not limited to, the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2009 and in our other Securities and Exchange Commission filings. You can access our Form 10-K and other SEC filings through the SEC website at www.sec.gov and we encourage you to do so.

In addition, during this call, we will be referring to certain actual and projected financial metrics of Mylan on an adjusted basis, which are non-GAAP measures. It should be noted that non-GAAP financial measures such as adjusted revenues, adjusted gross margin and adjusted diluted EPS should be used only as a supplement to, not as a substitute for or as a superior measure to measures of financial performance prepared in accordance with GAAP.

Please refer to today’s earnings press release, which is available on our website as it contains detailed GAAP to non-GAAP reconciliations of our actual 2010 and 2009 first quarter results, including the allocation of each reconciled item to specific income statement line items.

Before I turn the call over to Robert, let me also remind you that the material in the call, with the exception of the participant questions, is the property of Mylan and cannot be recorded or rebroadcast without Mylan’s expressed written permission.

With that I’ll now turn the call over to Robert.

Robert Coury

Thank you, Dan. Welcome everyone and thank you for taken the time to join us today. I’d especially like to welcome and thank our employees around the world for another great quarter. The phenomenal execution and continued dedication for Mylan’s core values combined with the exceptional leadership provided by our senior management team that made it possible for us to report yet another strong quarter results.

I’m behalf of the Board of Directors and our Executive Management team I’d like to thank each and everyone of your contribution. I’d also like to take a moment and welcome John Sheehan this morning as all of you know we've announced John’s appointment as Executive Vice President and Chief Financial Officer on our last call and today he joined us for the first earnings report here with Mylan. Welcome John.

Early this morning we reported adjusted diluted and earnings per share $0.36 and reaffirmed our 2010 guidance of the $1.50 to $1.70. These strong results of set the stage for yet another exceptional year at Mylan and they reflect the positive momentum that continues to build from 2009. While this quarter came in slightly better than expected looking forward and as we had guided on our last earnings call, we expect the second quarter results to come in at a comparable level with the majority of our 2010 growth coming in the second half of this year.

Before I turn the call over to our President Heather Bresch, I would like to make another brief comment about the historic healthcare legislation enacted recently in Washington. Even though the reforms did have a financial impact on Mylan, this impact has been fully absorbed in our guidance.

With that said we also anticipate incremental positives due to the passage of this legislation beginning in 2014 when more than 30 million uninsured Americans begin to receive healthcare benefits.

I’ll look forward to answer in your questions. Now let me turn the call over to Heather.

Heather Bresch

Thank you, Robert. Good morning everyone. As Robert stated Mylan is off to a great start for the year. We are very please with our first quarter results and remain on track to achieve the 2010 guidance we reported in February and are reiterating today. During the first quarter we generated total revenues of $1.29 billion compared to last years first quarter adjusted revenues of $1.18 billion an increase of almost 10% and approximately 4% on a constant currency basis.

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