Full Press Release Details
NORTH CHICAGO, Ill. , April 25, 2014 /PRNewswire/ -- AbbVie (NYSE: ABBV ) announced financial results for the first quarter ended March 31, 2014 .
"AbbVie delivered strong first-quarter results, with sales and earnings per share above our original guidance, significant margin expansion, and increased R&D and SG&A investment to support our existing portfolio and our promising pipeline opportunities," said Richard A. Gonzalez , chairman and chief executive officer, AbbVie. "As we look ahead to the remainder of 2014, we continue to expect a significant amount of progress from our pipeline. This includes key data presentations, phase transitions, regulatory submissions, and U.S. approval of our interferon-free HCV combination in 2014."
First-Quarter Results
Key Events from the First Quarter
Full-Year 2014 Outlook
AbbVie is confirming its diluted earnings-per-share guidance for the full-year 2014 of $3.00 to $3.10 on an adjusted basis, or $2.63 to $2.73 on a GAAP basis. The company's 2014 adjusted diluted earnings-per-share guidance excludes $0.37 per share of intangible asset amortization expense and other specified items primarily associated with certain separation-related costs and ongoing restructuring activities. AbbVie continues to expect 2014 revenue of approximately $19 billion , excluding any potential revenue from the expected 2014 U.S. launch of its HCV therapy.
AbbVie is a global, research-based biopharmaceutical company formed in 2013 following separation from Abbott Laboratories. The company's mission is to use its expertise, dedicated people and unique approach to innovation to develop and market advanced therapies that address some of the world's most complex and serious diseases. AbbVie employs approximately 25,000 people worldwide and markets medicines in more than 170 countries. For further information on the company and its people, portfolio and commitments, please visit www.abbvie.com . Follow @abbvie on Twitter or view careers on our Facebook or LinkedIn page.
Conference Call
AbbVie will host an investor conference call today at 8:00 a.m. Central time to discuss our first-quarter performance. Participating on the call will be Rick Gonzalez , chairman and chief executive officer; Bill Chase, executive vice president and chief financial officer; Laura Schumacher, executive vice president, business development, external affairs and general counsel; Scott Brun , vice president of clinical development; and Larry Peepo , vice president of investor relations. The call will be webcast through AbbVie's Investor Relations Web site at www.abbvieinvestor.com . An archived edition of the call will be available after 11:00 a.m. Central time .
Non-GAAP Financial Results
Financial results for 2013 and 2014 are presented on both a reported and a non-GAAP basis. Reported results were prepared in accordance with GAAP and include all revenue and expenses recognized during the period. Non-GAAP results adjust for certain non-cash items and for factors that are unusual or unpredictable, and exclude those costs, expenses, and other specified items presented in the reconciliation tables later in this release. AbbVie's management believes non-GAAP financial measures provide useful information to investors regarding AbbVie's results of operations and assist management, analysts, and investors in evaluating the performance of the business. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. The company's 2014 financial guidance is also being provided on both a reported and a non-GAAP basis.
Forward-Looking Statements
Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "project" and similar expressions, among others, generally identify forward-looking statements. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to, challenges to intellectual property, competition from other products, difficulties inherent in the research and development process, adverse litigation or government action, and changes to laws and regulations applicable to our industry. Additional information about the economic, competitive, governmental, technological and other factors that may affect AbbVie's operations is set forth in Item 1A, "Risk Factors," in AbbVie's 2013 Annual Report on Form 10-K, which has been filed with the Securities and Exchange Commission. AbbVie undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
| AbbVie Inc. | ||||||||
| Key Product Sales | ||||||||
| Quarter Ended March 31, 2014 | ||||||||
| (Unaudited) | ||||||||
| % Change vs. 1Q13 | ||||||||
| Sales (in millions) | International | Total | ||||||
| U.S. | Int'l. | Total | U.S. | Operational | Reported | Operational | Reported | |
| TOTAL SALES | $2,226 | $2,337 | $4,563 | 4.9% | 8.5% | 5.9% | 6.7% | 5.4% |
| Humira | 1,192 | 1,445 | 2,637 | 24.7 | 13.9 | 12.2 | 18.4 | 17.5 |
| Synagis | -- | 354 | 354 | n/a | 9.3 | 2.7 | 9.3 | 2.7 |
| AndroGel | 254 | -- | 254 | 6.0 | n/a | n/a | 6.0 | 6.0 |
| Kaletra | 54 | 141 | 195 | 2.2 | (12.6) | (15.5) | (9.1) | (11.3) |
| Lupron | 140 | 49 | 189 | 11.8 | (8.2) | (13.5) | 5.6 | 3.9 |
| Synthroid | 157 | -- | 157 | 31.5 | n/a | n/a | 31.5 | 31.5 |
| Sevoflurane | 19 | 123 | 142 | 15.9 | 5.2 | 1.5 | 6.5 | 3.2 |
| Creon | 107 | -- | 107 | 18.4 | n/a | n/a | 18.4 | 18.4 |
| Duodopa | -- | 52 | 52 | n/a | 29.4 | 32.2 | 29.4 | 32.2 |
| Niaspan | 47 | -- | 47 | (75.0) | n/a | n/a | (75.0) | (75.0) |
| TriCor/Trilipix | 23 | -- | 23 | (81.8) | n/a | n/a | (81.8) | (81.8) |
| Note: | "Operational" growth reflects the percentage change over the prior year excluding the impact of exchange rate fluctuations. |
| n/a = | not applicable |
| AbbVie Inc. | ||||
| Consolidated Statements of Earnings | ||||
| Quarter Ended March 31, 2014 and 2013 | ||||
| (Unaudited) (In millions, except per share data) | ||||
| 2014 | 2013 | |||
| Net sales | $4,563 | $4,329 | ||
| Cost of products sold | 1,100 | 1,153 | ||
| Selling, general and administrative | 1,340 | 1,237 | ||
| Research and development | 772 | 634 | ||
| Total operating cost and expenses | 3,212 | 3,024 | ||
| Operating earnings | 1,351 | 1,305 | ||
| Interest expense, net | 65 | 66 | ||
| Net foreign exchange loss | 3 | 15 | ||
| Other income, net | (3) | (15) | ||
| Earnings before income tax expense | 1,286 | 1,239 | ||
| Income tax expense | 306 | 271 | ||
| Net earnings | $980 | $968 | ||
| Diluted earnings per share | $0.61 | $0.60 | ||
| Diluted earnings per share, excluding specified items | $0.71 | $0.68 | a) | |
| Average diluted shares outstanding | 1,609 | 1,605 |
| a) | Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details. |
| Note: | The computation of diluted earnings per share for the quarter ended March 31, 2014 was calculated pursuant to the two-class method which requires the allocation of net earnings between common stockholders and participating security holders. |
| AbbVie Inc. | |||
| Reconciliation of GAAP Reported to Non-GAAP Adjusted Information | |||
| Quarter Ended March 31, 2014 | |||
| (Unaudited) (In millions, except per share data) | |||
| 1. Specified items impacted results as follows: | |||
| 1Q14 | |||
| Earnings | Diluted | ||
| Pre-tax | After-tax | EPS | |
| As reported (GAAP) | $1,286 | $980 | $0.61 |
| Adjusted for specified items: | |||
| Intangible asset amortization | 110 | 80 | 0.05 |
| Separation costs | 80 | 88 | 0.05 |
| Restructuring/Other | 4 | 2 | 0.00 |
| As adjusted (non-GAAP) | $1,480 | $1,150 | $0.71 |
| 1Q14 | |||
| Cost of products sold | SG&A | R&D | |
| As reported (GAAP) | $1,100 | $1,340 | $772 |
| Adjusted for specified items: | |||
| Intangible asset amortization | (110) | -- | -- |
| Separation costs | (2) | (77) | (1) |
| Restructuring/Other | (2) | (2) | -- |
| As adjusted (non-GAAP) | $986 | $1,261 | $771 |
| 1Q14 | |||
| Pre-tax | Income | ||
| income | taxes | Tax rate | |
| As reported (GAAP) | $1,286 | $306 | 23.8% |
| Specified items | 194 | 24 | 12.4% |
| As adjusted (non-GAAP) | $1,480 | $330 | 22.3% |
| AbbVie Inc. | |||
| Reconciliation of GAAP Reported to Non-GAAP Adjusted Information | |||
| Quarter Ended March 31, 2013 | |||
| (Unaudited) (In millions, except per share data) | |||
| 1. Specified items impacted results as follows: | |||
| 1Q13 | |||
| Earnings | Diluted | ||
| Pre-tax | After-tax | EPS | |
| As reported (GAAP) | $1,239 | $968 | $0.60 |
| Adjusted for specified items: | |||
| Intangible asset amortization | 135 | 98 | 0.06 |
| Separation costs | 34 | 22 | 0.01 |
| Restructuring/Other | (1) | 7 | 0.01 |
| As adjusted (non-GAAP) | $1,407 | $1,095 | $0.68 |
| 1Q13 | |||||
| Cost of products sold | SG&A | R&D | Net foreign exchange loss | Other income, net | |
| As reported (GAAP) | $1,153 | $1,237 | $634 | $15 | ($15) |
| Adjusted for specified items: | |||||
| Intangible asset amortization | (135) | -- | -- | -- | -- |
| Separation costs | (3) | (29) | (2) | -- | -- |
| Restructuring/Other | 17 | (2) | -- | (11) | (3) |
| As adjusted (non-GAAP) | $1,032 | $1,206 | $632 | $4 | ($18) |
| 1Q13 | |||
| Pre-tax | Income | ||
| income | taxes | Tax rate | |
| As reported (GAAP) | $1,239 | $271 | 21.9% |
| Specified items | 168 | 41 | 24.4% |
| As adjusted (non-GAAP) | $1,407 | $312 | 22.2% |