Akorn, Inc. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2016; Reaffirms Earnings Guidance for the Full Year of Fiscal 2016; Reports Impairment of Intangible Assets for the First Quarter Ended March 31, 2016
Akorn, Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2016. Consolidated revenue for the first quarter of 2016 was $268.35 million, an increase of $41 million or 18% over the first quarter 2015 consolidated revenue of $227.38 million. The increase in consolidated revenue was largely driven by organic growth. GAAP net income for the first quarter 2016 was $41.89 million, compared to $37.54 million in the first quarter of 2015. Earnings before interest, taxes, depreciation and amortization were $100.09 million in the first quarter 2016, compared to $93.2 million in the first quarter 2015. Adjusted EBITDA, which is another non-GAAP measure used by management to evaluate the continuing operations of the Akorn business, was $124.16 million in the first quarter of 2016, compared to $103.91 million in the first quarter of 2015. GAAP fully diluted earnings per share (EPS) was $0.34 in the first quarter of 2016, compared to $0.31 in the first quarter of 2015. Including a net adjustment of $26 million to net income for non-GAAP items, adjusted fully diluted EPS was $0.54 in the first quarter of 2016. Including a net adjustment of $18 million to net income for non-GAAP items, adjusted fully diluted EPS was $0.45 in the first quarter of 2015. Operating income was $87.579 million against $73.267 million a year ago. Income before income taxes was $66.572 million against $58.328 million a year ago. Net cash provided by operating activities was $8.985 million against $45.266 million a year ago. The primary drivers of the change were timing of receivables collections and increased income tax payment. Purchases of property, plant and equipment was $9.918 million against $7.088 million a year ago. Adjusted income before income tax was $108.014 million against $86.589 million a year ago. Adjusted net income was $67.961 million or $0.54 diluted against $56.246 million or $0.45 diluted per share a year ago. Net debt was $734,155,000.
The company reaffirms 2016 guidance as reported on March 22, 2016 including the net revenue range of $1,060 million - $1,080 million, diluted GAAP earnings per share range of $1.56 - $1.66 and diluted adjusted non-GAAP earnings per share range of $2.10 - $2.20. The company expects its adjusted tax rate to be approximately 37.0% for the full year 2016. The company expects $70 million to $95 million of capital expenditures in 2016.
The company reported impairment of intangible assets was $0.158 million for the first quarter ended March 31, 2016.