Thursday, August 28, 2014 Last update: 5:33 PM
FreshNews.com - All Company Technology News Since 1996

The Medicines Company Reports Full Year and Fourth Quarter 2011 Financial Results

Companies mentioned in this article: The Medicines Company

PARSIPPANY, NJ -- (Marketwire) -- 02/22/12 -- The Medicines Company (NASDAQ: MDCO) today announced its financial results for the fourth quarter and full year of 2011.

Financial highlights for the fourth quarter of 2011:

  • Net revenue increased by 10.5% to $132.2 million for the fourth quarter of 2011 from $119.7 million in the fourth quarter of 2010.
    • Angiomax U.S. sales increased by 10.9% to $124.2 million in the fourth quarter of 2011 compared to $112.0 million in the fourth quarter of 2010.
    • Angiomax/Angiox international net revenue in the fourth quarter of 2011 was $7.9 million compared with $7.7 million in the fourth quarter of 2010.
  • Net income for the fourth quarter of 2011 was $19.6 million, or $0.36 per share, compared to $58.6 million, or $1.09 per share, for the fourth quarter of 2010.
  • Non-GAAP net income for the fourth quarter of 2011 was $28.7 million, or $0.52 per share, compared to non-GAAP net income of $16.0 million, or $0.30 per share, for 2010.

Financial highlights for the full year of 2011:

  • Net revenue increased by 10.8% to $484.7 million in 2011 from $437.6 million in 2010.
    • Angiomax U.S. sales increased by 9.7% to $452.3 million in 2011 compared with $412.3 million in 2010.
    • Angiomax/Angiox international net revenue in 2011 increased by 28.3% with $31.6 million compared with $24.6 million in 2010.
  • Net income for 2011 was $127.9 million, or $2.35 per share, compared with net income of $104.6 million, or $1.97 per share, for 2010.
  • Non-GAAP net income for 2011 was $85.7 million, or $1.57 per share, compared to non-GAAP net income of $69.7 million, or $1.31 per share, for 2010.

Glenn Sblendorio, Executive Vice President and Chief Financial Officer, stated, "We sustained consistent growth in the fourth quarter 2011, both on the revenue and profit target, and met all of our significant financial objectives in 2011. Our uniquely positioned business model is realizing significant progress in helping deliver acute intensive care in hospitals worldwide. We are also consistently delivering the operating and financial results that build value. We plan continued focus on optimizing R&D and SG&A to provide operating and geographic leverage and further expand the opportunities available to us."

The following table provides reconciliations between GAAP and non-GAAP net income for the full year (FY) and fourth quarter (Q4) of 2011 and 2010.


                                                  Non-cash
                                                 (Benefit)
                    Reported     Stock-Based     Provision       Non-GAAP
                    GAAP Net     Compensation    for Income         Net
(in millions)        Income        Expense         Taxes         Income(1)
                 -------------  -------------  -------------   -------------

FY 2011          $       127.9  $        11.0  $       (53.2)  $        85.7

FY 2010          $       104.6  $         8.3  $       (43.3)  $        69.7

Q4 2011          $        19.6  $         2.6  $         6.5   $        28.7

Q4 2010          $        58.6  $         1.5  $       (44.0)  $        16.0

Note: Amounts may not sum due to rounding.
(1) Excluding stock-based compensation
 expense and the non-cash (benefit) provision
 for income taxes

Reconciliations between GAAP and non-GAAP fully diluted earnings per share (EPS) for the full year (FY) and fourth quarter (Q4) of 2011 and 2010 are provided in the following table:


                                                  Non-cash
                                                 (Benefit)
                                 Stock-Based     Provision
                    Reported     Compensation    for Income       Non-GAAP
(per share)         GAAP EPS       Expense         Taxes           EPS(1)
                 -------------  -------------  -------------   -------------

FY 2011          $        2.35  $        0.20  $       (0.98)  $        1.57

FY 2010          $        1.97  $        0.16  $       (0.81)  $        1.31

Q4 2011          $        0.36  $        0.05  $        0.12   $        0.52

Q4 2010          $        1.09  $        0.03  $       (0.82)  $        0.30

Note: Amounts may not sum due to rounding.
(1) Excluding stock-based compensation
 expense and non-cash (benefit) provision for
 income taxes.

The Company believes that presenting the non-GAAP information contained in the financial tables and in this press release assists investors and others in gaining a better understanding of the Company's core operating results and future prospects, expected growth rates or forecasted guidance, particularly as related to stock-based compensation expense and non-cash income taxes. Management uses this non-GAAP information, in addition to the GAAP information, as the basis for measuring the Company's core operating performance and comparing such performance to that of prior periods and to the performance of its competitors. Such measures are also used by management in its financial and operating decision-making. Non-GAAP information is not meant to be considered superior to or a substitute for the Company's results of operations prepared in accordance with GAAP. A reconciliation of GAAP results with non-GAAP results may also be found in the attached financial tables.

There will be a conference call with management today at 8:30 a.m. Eastern Time to discuss full year and fourth quarter 2011 financial results and operational developments. The conference call will be available via phone and webcast. The webcast can be accessed at The Medicines Company website at www.themedicinescompany.com.

The dial in information is listed below:
Domestic Dial In: 866-510-0705
International Dial In: 617-597-5363
Passcode for both dial in numbers: 54805335

Replay is available from 10:30 a.m. Eastern Time following the conference call through March 7, 2012. To hear a replay of the call dial 888-286-8010 (domestic) and 617-801-6888 (international). Passcode for both dial in numbers is 95010339.

About The Medicines Company
The Medicines Company (NASDAQ: MDCO) provides medical solutions to improve health outcomes for patients in acute and intensive care hospitals worldwide. These solutions comprise medicines and knowledge that directly impact the survival and well being of critically ill patients. The Medicines Company's website is www.themedicinescompany.com.

Statements contained in this press release about The Medicines Company that are not purely historical, and all other statements that are not purely historical, may be deemed to be forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Without limiting the foregoing, the words "believes," "anticipates" and "expects" and similar expressions, including the Company's preliminary revenue results, are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. Important factors that may cause or contribute to such differences include the Company's ability to develop its global operations and penetrate foreign markets, whether the Company's products will advance in the clinical trials process on a timely basis or at all, whether the Company will make regulatory submissions for product candidates on a timely basis, whether its regulatory submissions will receive approvals from regulatory agencies on a timely basis or at all, whether physicians, patients and other key decision makers will accept clinical trial results, risks associated with the establishment of international operations, whether the Company is able to obtain or maintain patent protection for the intellectual property relating to the Company's products; and such other factors as are set forth in the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission including, without limitation, the risk factors detailed in the Company's Quarterly Report on Form 10-Q filed on November 9, 2011, which are incorporated herein by reference. The Company specifically disclaims any obligation to update these forward-looking statements.


                           The Medicines Company
              Condensed Consolidated Statements of Operations
                                (unaudited)

(in thousands, except per share data)       Three months ended December 31,
                                            -------------------------------
                                                 2011             2010
                                            --------------   --------------

Net revenue                                 $      132,231   $      119,679

Operating expenses:
  Cost of revenue                                   44,007           35,394
  Research and development                          33,302           31,113
  Selling, general and administrative               34,916           37,372
                                            --------------   --------------
    Total operating expenses                       112,225          103,879
                                            --------------   --------------
Income from operations                              20,006           15,800
  Other income                                         340             (322)
                                            --------------   --------------
Income before income taxes                          20,346           15,478
(Provision) benefit for income taxes                  (764)          43,094
                                            --------------   --------------
Net income                                  $       19,582   $       58,572
                                            ==============   ==============

Basic earnings per common share             $         0.36   $         1.10
                                            ==============   ==============
Shares used in computing basic earnings per
 common share                                       53,739           53,041
                                            ==============   ==============

Diluted earnings per common share           $         0.36   $         1.09
                                            ==============   ==============
Shares used in computing diluted earnings
 per common share                                   54,899           53,714
                                            ==============   ==============




                           The Medicines Company
              Condensed Consolidated Statements of Operations

(in thousands, except per share data)            Year Ended December 31,
                                             ------------------------------
                                                  2011            2010
                                             --------------  --------------
Net revenue                                  $      484,732  $      437,645
Operating expenses:
  Cost of revenue                                   156,866         129,299
  Research and development                          110,180          85,241
  Selling, general and administrative               159,617         158,690
                                             --------------  --------------
    Total operating expenses                        426,663         373,230
                                             --------------  --------------
Income from operations                               58,069          64,415
  Legal settlement                                   17,984               -
  Other income                                        1,790            (267)
                                             --------------  --------------
Income before income taxes                           77,843          64,148
Benefit from income taxes                            50,034          40,487
                                             --------------  --------------
Net income                                   $      127,877  $      104,635
                                             ==============  ==============

Basic earnings per common share              $         2.39  $         1.98
                                             ==============  ==============
Shares used in computing basic earnings per
 common share                                        53,496          52,842
                                             ==============  ==============

Diluted earnings per common share            $         2.35  $         1.97
                                             ==============  ==============
Shares used in computing diluted earnings
 per common share                                    54,407          53,184
                                             ==============  ==============




                            The Medicines Company
                    Condensed Consolidated Balance Sheets

                                               December 31,    December 31,
(in thousands)                                     2011            2010
                                              --------------  --------------

                    ASSETS
Cash, cash equivalents and available for
 sales securities                             $      340,512  $      246,644
Accrued interest receivable                              374           1,279
Accounts receivable, net                              74,559          46,551
Inventory                                             45,145          25,343
Deferred tax assets                                    9,395               -
Prepaid expenses and other current assets             11,738           4,804
                                              --------------  --------------
    Total current assets                             481,723         324,621

Fixed assets, net                                     17,979          20,662
Intangible assets, net                                87,329          82,925
Restricted cash                                        4,714           5,778
Deferred tax assets                                   78,441          25,197
Goodwill                                              14,671          14,671
Other assets                                           7,790             270
                                              --------------  --------------
    Total assets                              $      692,647  $      474,124
                                              ==============  ==============

     LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                           $      154,635  $       85,370
  Contingent purchase price                           20,431          25,387
  Other Long Term Liabilities                          5,939           5,769
Stockholders' equity                                 511,642         357,598
                                              --------------  --------------
    Total liabilities and stockholders'
     equity                                   $      692,647  $      474,124
                                              ==============  ==============




The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)

                                  Three Months Ended December 31
                     -------------------------------------------------------
                                            2011
                     -------------------------------------------------------
                                                   Non-cash
                                  Stock-Based         Tax        Non-GAAP(4)
                       GAAP(1)   Compensation      Provision     As Adjusted
                     ----------- ------------     -----------    -----------
Net revenue          $   132,231 $          -     $         -    $   132,231

Operating expenses:
  Cost of revenue         44,007          (27) (2)          -         43,980
  Research and
   development            33,302         (385) (2)          -         32,917
  Selling, general
   and administrative     34,916       (2,230) (2)          -         32,686
                     ----------- ------------     -----------    -----------
    Total operating
     expenses            112,225       (2,642)              -        109,583
                     ----------- ------------     -----------    -----------

Income from
 operations               20,006        2,642               -         22,648

  Legal settlement             -            -               -              -
  Other income               340            -               -            340
                     ----------- ------------     -----------    -----------
Income before income
 taxes                    20,346        2,642               -         22,988
  (Provision) benefit
   for income taxes         (764)           -           6,507 (3)      5,743
                     ----------- ------------     -----------    -----------
Net income           $    19,582 $      2,642     $     6,507    $    28,731
                     =========== ============     ===========    ===========

Basic earnings per
 common share        $      0.36 $       0.05     $      0.12    $      0.53
                     =========== ============     ===========    ===========

Shares used in
 computing basic
 earnings per common
 share                    53,739       53,739          53,739         53,739
                     =========== ============     ===========    ===========

Diluted earnings per
 common share        $      0.36 $       0.05     $      0.12    $      0.52
                     =========== ============     ===========    ===========

Shares used in
 computing diluted
 earnings per common
 share                    54,899       54,899          54,899         54,899
                     =========== ============     ===========    ===========

Note: Amounts may not sum due to rounding.
(1) GAAP Results
(2) Non-cash stock compensation expense
(3) Non-cash income taxes
(4) Non-GAAP Results




The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)

                                Year Ended December 31
                   --------------------------------------------------------
                                         2011
                   --------------------------------------------------------
                                                Non-cash
                               Stock-Based         Tax         Non-GAAP(4)
                    GAAP(1)   Compensation      Provision      As Adjusted
                   ---------  ------------     ----------     -------------
Net revenue        $ 484,732  $          -     $        -     $     484,732

Operating expenses:
  Cost of revenue    156,866          (125) (2)         -           156,741
  Research and
   development       110,180        (1,870) (2)         -           108,310
  Selling, general
   and
   administrative    159,617        (9,022) (2)         -           150,595
                   ---------  ------------     ----------     -------------
    Total operating
     expenses        426,663       (11,017)             -           415,646
                   ---------  ------------     ----------     -------------

Income from
 operations           58,069        11,017              -            69,086

  Legal settlement    17,984             -              -            17,984
  Other income         1,790             -              -             1,790
                   ---------  ------------     ----------     -------------
Income before
 income taxes         77,843        11,017              -            88,860
  Benefit
   (provision) for
   income taxes       50,034             -        (53,236) (3)       (3,202)
                   ---------  ------------     ----------     -------------
Net income         $ 127,877  $     11,017     $  (53,236)    $      85,658
                   =========  ============     ==========     =============

Basic earnings per
 common share      $    2.39  $       0.21     $    (1.00)    $        1.60
                   =========  ============     ==========     =============

Shares used in
 computing basic
 earnings per
 common share         53,496        53,496         53,496            53,496
                   =========  ============     ==========     =============

Diluted earnings
 per common share  $    2.35  $       0.20     $    (0.98)    $        1.57
                   =========  ============     ==========     =============

Shares used in
 computing diluted
 earnings per
 common share         54,407        54,407         54,407            54,407
                   =========  ============     ==========     =============

Note: Amounts may not sum due to rounding.
(1) GAAP Results
(2) Non-cash stock compensation expense
(3) Non-cash income taxes
(4) Non-GAAP Results




The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)

                                Three Months Ended December 31,
                   --------------------------------------------------------
                                          2010
                   --------------------------------------------------------
                                                 Non-cash
                                Stock-Based         Tax         Non-GAAP(4)
                     GAAP(1)   Compensation      Provision      As Adjusted
                   ----------- ------------     -----------     -----------
Net revenue        $   119,679 $          -     $         -     $   119,679

Operating expenses:
  Cost of revenue       35,394          (33) (2)          -          35,361
  Research and
   development          31,113         (231) (2)          -          30,882
  Selling, general
   and
   administrative       37,372       (1,217) (2)          -          36,155
                   ----------- ------------     -----------     -----------
    Total operating
     expenses          103,879       (1,481)              -         102,398

Income from
 operations             15,800        1,481               -          17,281

  Other
   (loss)/income          (322)           -               -            (322)
                   ----------- ------------     -----------     -----------
  Income before
   income taxes         15,478        1,481               -          16,959
  Benefit
   (provision) for
   income taxes         43,094            -         (44,010) (3)       (916)
                   ----------- ------------     -----------     -----------
Net income              58,572        1,481         (44,010)         16,043

Basic earnings per
 common share      $      1.10 $       0.03     $     (0.83)    $      0.30
                   =========== ============     ===========     ===========

Shares used in
 computing basic
 earnings per
 common share           53,041       53,041          53,041          53,041
                   =========== ============     ===========     ===========

Diluted earnings
 per common share  $      1.09 $       0.03     $     (0.82)    $      0.30
                   =========== ============     ===========     ===========

Shares used in
 computing diluted
 earnings per
 common share           53,714       53,714          53,714          53,714
                   =========== ============     ===========     ===========

(1) GAAP Results
(2) Non-cash stock compensation expense
(3) Non-cash income taxes
(4) Non-GAAP Results




The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)

                              Twelve Months Ended December 31,
                 ----------------------------------------------------------
                                            2010
                 ----------------------------------------------------------
                                                Non-cash
                   GAAP(1)    Stock-Based          Tax          Non-GAAP(4)
                 As Reported Compensation       Provision       As Adjusted
                 ----------- ------------      -----------      -----------
Net revenue      $   437,645 $          -      $         -      $   437,645

Costs and
 expenses:
  Cost of revenue    129,299         (250) (2)           -          129,049
  Research and
   development        85,241       (1,801) (2)           -           83,440
  Selling,
   general and
   administrative    158,690       (6,285) (2)           -          152,405
                 ----------- ------------      -----------      -----------
    Total
     operating
     expenses        373,230       (8,336)               -          364,894

Income from
 operations           64,415        8,336                -           72,751

  Other
   (loss)/income        (267)           -                -             (267)
                 ----------- ------------      -----------      -----------
  Income before
   income taxes       64,148        8,336                -           72,484
  Benefit
   (provision)
   for income
   taxes              40,487            -          (43,300) (3)      (2,813)
                 ----------- ------------      -----------      -----------
Net income           104,635        8,336          (43,300)          69,671

Basic earnings
 per common share$      1.98 $       0.16      $     (0.82)     $      1.32
                 =========== ============      ===========      ===========

Shares used in
 computing basic
 earnings per
 common share         52,842       52,842           52,842           52,842
                 =========== ============      ===========      ===========

Diluted earnings
 per common share$      1.97 $       0.16      $     (0.81)     $      1.31
                 =========== ============      ===========      ===========

Shares used in
 computing
 diluted earnings
 per common share     53,184       53,184           53,184           53,184
                 =========== ============      ===========      ===========

(1) GAAP Results
(2) Non-cash stock compensation expense
(3) Non-cash income taxes
(4) Non-GAAP Results





Contact:

Contact:
Michael Mitchell
The Medicines Company
973-290-6000
investor.relations@themedco.com