ABBV
AbbVie Reports Fourth-Quarter and Full-Year 2014 Financial Results AbbVie (NYSE:ABBV) today announced financial results for the fourth quarter and full year ended Dec. 31, 2014. AbbVie delivered exceptional...
Friday, January 30, 2015 4 min read
Key Takeaway: NORTH CHICAGO, Ill. , Jan. 30, 2015 /PRNewswire/ -- AbbVie (NYSE: ABBV ) today announced financial results for the fourth quarter and full year ended Dec. 31, 2014 .
"AbbVie delivered exceptional performance in 2014 with sales and earnings well above our original projections for
Full Press Release Details
NORTH CHICAGO, Ill. , Jan. 30, 2015 /PRNewswire/ -- AbbVie (NYSE: ABBV ) today announced financial results for the fourth quarter and full year ended Dec. 31, 2014 .
"AbbVie delivered exceptional performance in 2014 with sales and earnings well above our original projections for the year," said Richard A. Gonzalez , chairman and chief executive officer, AbbVie. "We returned to growth in 2014, a year ahead of schedule, and we expect to continue building on that momentum in 2015 with another year of strong performance. For 2015, we're focused on commercial and operational execution and the advancement of our promising pipeline as we build the company for long-term sustainable growth."
Key Events from the Fourth Quarter
Confirming Full-Year 2015 Outlook
AbbVie is confirming its adjusted diluted earnings-per-share guidance for the full-year 2015 of $4.25 to $4.45 , which reflects industry-leading growth versus the prior year. The company's 2015 adjusted diluted earnings-per-share guidance excludes $0.34 per share of intangible asset amortization expense and other specified items. Including these items, AbbVie's diluted earnings-per-share guidance is $3.91 to $4.11 on a GAAP basis.
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 more than 26,000 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.
AbbVie will host an investor conference call today at 8:00 a.m. Central time to discuss our fourth-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; Mike Severino , executive vice president, research and development and chief scientific officer; and Larry Peepo , vice president, investor relations. The call will be webcast through AbbVie's Web site at
www.abbvieinvestor.com .
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 2015 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 and in Item 1A, "Risk Factors" of Part II of AbbVie's second quarter 2014 Quarterly Report on Form 10-Q, which have 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 Dec. 31, 2014 |
| (Unaudited) |
| | | % Change vs. 4Q13 |
| | Sales (in millions) | | International | Total |
| Total Adjusted Sales | U.S. | Int'l. | Total | U.S. | Operational | Reported | Operational | Reported |
| $3,083 | $2,288 | $5,371 | 9.4% | 8.2% | (0.2%) | 8.9% | 5.1% |
| Humira | 1,932 | 1,431 | 3,363 | 15.8 | 12.7 | 4.3 | 14.4 | 10.6 |
| Synagis | -- | 298 | 298 | n/a | 4.9 | (5.0) | 4.9 | (5.0) |
| AndroGel | 230 | -- | 230 | (20.2) | n/a | n/a | (20.2) | (20.2) |
| Lupron | 160 | 47 | 207 | 2.5 | (4.6) | (11.4) | 0.6 | (1.1) |
| Kaletra | 50 | 153 | 203 | (20.5) | 2.3 | (7.5) | (4.0) | (11.1) |
| Synthroid | 186 | -- | 186 | (1.6) | n/a | n/a | (1.6) | (1.6) |
| Creon | 151 | -- | 151 | 30.6 | n/a | n/a | 30.6 | 30.6 |
| Sevoflurane | 22 | 98 | 120 | (4.6) | (18.7) | (25.8) | (16.7) | (22.7) |
| Dyslipidemia | 104 | -- | 104 | 13.6 | n/a | n/a | 13.6 | 13.6 |
| Duodopa | -- | 56 | 56 | n/a | 25.4 | 14.7 | 25.4 | 14.7 |
| Viekira | 48 | -- | 48 | n/m | n/a | n/a | n/m | n/m |
| Note: "Operational" growth reflects the percentage change over the prior year excluding the impact of exchange rate fluctuations. Dyslipidemia includes sales of TriCor/Trilipix, Niaspan, Simcor and Advicor. |
| n/a = not applicable |
| n/m = not meaningful |
| AbbVie Inc. |
| Key Product Sales |
| Twelve Months Ended Dec. 31, 2014 |
| (Unaudited) |
| | | % Change vs. 12M13 |
| | Sales (in millions) | | International | Total |
| Total Adjusted Sales | U.S. | Int'l. | Total | U.S. | Operational | Reported | Operational | Reported |
| $10,764 | $9,115 | $19,879 | 5.7% | 8.9% | 5.9% | 7.1% | 5.8% |
| Humira | 6,524 | 6,019 | 12,543 | 24.6 | 13.3 | 11.0 | 18.9 | 17.7 |
| AndroGel | 934 | -- | 934 | (9.7) | n/a | n/a | (9.7) | (9.7) |
| Kaletra | 213 | 657 | 870 | (12.7) | (4.5) | (8.5) | (6.6) | (9.6) |
| Synagis | -- | 835 | 835 | n/a | 9.3 | 1.0 | 9.3 | 1.0 |
| Lupron | 580 | 198 | 778 | 2.5 | (5.4) | (9.5) | 0.2 | (0.9) |
| Synthroid | 709 | -- | 709 | 13.9 | n/a | n/a | 13.9 | 13.9 |
| Sevoflurane | 83 | 467 | 550 | 7.1 | (1.0) | (4.7) | 0.1 | (3.1) |
| Creon | 516 | -- | 516 | 25.3 | n/a | n/a | 25.3 | 25.3 |
| Dyslipidemia | 328 | -- | 328 | (69.5) | n/a | n/a | (69.5) | (69.5) |
| Duodopa | -- | 220 | 220 | n/a | 24.7 | 23.5 | 24.7 | 23.5 |
| Viekira | 48 | -- | 48 | n/m | n/a | n/a | n/m | n/m |
| Note: "Operational" growth reflects the percentage change over the prior year excluding the impact of exchange rate fluctuations. Dyslipidemia includes sales of TriCor/Trilipix, Niaspan, Simcor and Advicor. |
| n/a = not applicable |
| n/m = not meaningful |
| AbbVie Inc. |
| Consolidated Statements of Earnings (Loss) |
| Quarter and Twelve Months Ended Dec. 31, 2014 and 2013 |
| (Unaudited) (In millions, except per share data) |
| | Fourth Quarter Ended Dec. 31 | | Twelve Months Ended Dec. 31 | |
| | 2014 | | 2013 | | 2014 | | 2013 | |
| Net sales | $5,452 | | $5,111 | | $19,960 | | $18,790 | |
| Cost of products sold | 1,119 | | 1,282 | | 4,426 | | 4,581 | |
| Selling, general and administrative | 3,341 | | 1,448 | | 7,724 | | 5,352 | |
| Research and development | 879 | | 798 | | 3,297 | | 2,855 | |
| Acquired in-process research and development | 28 | | 48 | | 352 | | 338 | |
| Other operating expense | 500 | | -- | | 750 | | -- | |
| Total operating cost and expenses | 5,867 | | 3,576 | | 16,549 | | 13,126 | |
| Operating earnings (loss) | (415) | | 1,535 | | 3,411 | | 5,664 | |
| Interest expense, net | 129 | | 68 | | 391 | | 278 | |
| Net foreign exchange loss | 496 | | 15 | | 678 | | 55 | |
| Other (income) expense, net | (3) | | 13 | | (27) | | (1) | |
| Earnings (loss) before income tax expense | (1,037) | | 1,439 | | 2,369 | | 5,332 | |
| Income tax (benefit) expense | (227) | | 311 | | 595 | | 1,204 | |
| Net earnings (loss) | ($810) | | $1,128 | | $1,774 | | $4,128 | |
| Diluted earnings (loss) per share | ($0.51) | | $0.70 | | $1.10 | | $2.56 | |
| Diluted earnings per share, excluding specified items | $0.89 | | $0.82 | | $3.32 | | $3.14 | a) |
| Average diluted shares outstanding | 1,597 | | 1,608 | | 1,610 | | 1,604 | |
| | AbbVie Inc. |
| | Reconciliation of GAAP Reported to Non-GAAP Adjusted Information |
| | Quarter Ended Dec. 31, 2014 |
| | (Unaudited) (In millions, except per share data) |
| 1. | Specified items impacted results as follows: |
| | | 4Q14 |
| | | Earnings (loss) | Diluted |
| | | Pre-tax | After-tax | EPS |
| | As reported (GAAP) | ($1,037) | ($810) | ($0.51) |
| | Adjusted for specified items: | | | |
| | Other revenue | (81) | (81) | (0.05) |
| | Intangible asset amortization | 96 | 69 | 0.04 |
| | Acquired IPR&D | 28 | 29 | 0.02 |
| | Calico collaboration | 500 | 500 | 0.31 |
| | Shire transaction costs | 2,227 | 1,623 | 1.00 |
| | Separation costs and other | 134 | 116 | 0.08 |
| | As adjusted (non-GAAP) | $1,867 | $1,446 | $0.89 |
| | Other revenue principally includes royalty income from prior periods recognized in the fourth quarter of 2014 as a result of the settlement of a licensing arrangement. Intangible asset amortization reflects costs recognized as a result of licensing and acquisition activities. Acquired IPR&D primarily reflects an upfront payment related to a licensing arrangement with a third party. Calico collaboration reflects a payment related to the previously announced Calico collaboration. Shire transaction costs are expenses related to the terminated Shire transaction. Separation costs and other is primarily related to the separation of AbbVie from Abbott. |
| 2. | The impact of the specified items by line item was as follows: |
| | | 4Q14 |
| | | Net Sales | Cost of products sold | SG&A | R&D | Acquired IPR&D | Other operating expense | Interest expense (income) | Net exchange (gain) loss |
| | As reported (GAAP) | $5,452 | $1,119 | $3,341 | $879 | $28 | $500 | $129 | $496 |
| | Adjusted for specified items: | | | | | | | | |
| | Other revenue | (81) | -- | -- | -- | -- | -- | -- | -- |
| | Intangible asset amortization | -- | (96) | -- | -- | -- | -- | -- | -- |
| | Acquired IPR&D | -- | -- | -- | -- | (28) | -- | -- | -- |
| | Calico collaboration | -- | -- | -- | -- | -- | (500) | -- | -- |
| | Shire transaction costs | -- | -- | (1,660) | -- | -- | -- | (66) | (501) |
| | Separation costs and other | -- | (15) | (117) | (2) | -- | -- | -- | -- |
| | As adjusted (non-GAAP) | $5,371 | $1,008 | $1,564 | $877 | -- | -- | $63 | ($5) |
| 3. | The adjusted tax rate for the fourth quarter of 2014 was 22.5 percent, as detailed below: |
| | | 4Q14 |
| | | Pre-tax | Income | |
| | | income (loss) | taxes | Tax rate |
| | As reported (GAAP) | ($1,037) | ($227) | 21.9% |
| | Specified items | 2,904 | 648 | 22.3% |
| | As adjusted (non-GAAP) | $1,867 | $421 | 22.5% |
| | AbbVie Inc. |
| | Reconciliation of GAAP Reported to Non-GAAP Adjusted Information |
| | Quarter Ended Dec. 31, 2013 |
| | (Unaudited) (In millions, except per share data) |
| 1. | Specified items impacted results as follows: |
| | | 4Q13 |
| | | Earnings | Diluted |
| | | Pre-tax | After-tax | EPS |
| | As reported (GAAP) | $1,439 | $1,128 | $0.70 |
| | Adjusted for specified items: | | | |
| | Intangible asset amortization | 101 | 76 | 0.05 |
| | Separation costs | 103 | 66 | 0.04 |
| | Acquired IPR&D | 48 | 48 | 0.03 |
| | Restructuring/Other | 11 | 7 | 0.00 |
| | As adjusted (non-GAAP) | $1,702 | $1,325 | $0.82 |
| 2. | The impact of the specified items by line item was as follows: |
| | | | 4Q13 |
| | | Cost of products sold | SG&A | R&D | Acquired IPR&D | Other (income) expense |
| | As reported (GAAP) | $1,282 | $1,448 | $798 | $48 | $13 |
| | Adjusted for specified items: | | | | | |
| | Intangible asset amortization | (101) | -- | -- | -- | -- |
| | Separation costs | (5) | (95) | (3) | -- | -- |
| | Acquired IPR&D | -- | -- | -- | (48) | -- |
| | Restructuring/Other | (8) | -- | -- | -- | (3) |
| | As adjusted (non-GAAP) | $1,168 | $1,353 | $795 | -- | $10 |
| 3. | The adjusted tax rate for fourth-quarter 2013 was 22.2 percent, as detailed below: |
| | | 4Q13 |
| | | Pre-tax | Income | |
| | | income | taxes | Tax rate |
| | As reported (GAAP) | $1,439 | $311 | 21.6% |
| | Specified items | 263 | 66 | 25.1% |
| | As adjusted (non-GAAP) | $1,702 | $377 | 22.2% |
| | AbbVie Inc. |
| | Reconciliation of GAAP Reported to Non-GAAP Adjusted Information |
| | Twelve Months Ended Dec. 31, 2014 |
| | (Unaudited) (In millions, except per share data) |
| 1. | Specified items impacted results as follows: |
| | | 12M14 |
| | | Earnings | Diluted |
| | | Pre-tax | After-tax | EPS |
| | As reported (GAAP) | $2,369 | $1,774 | $1.10 |
| | Adjusted for specified items: | | | |
| | Other revenue | (81) | (81) | (0.05) |
| | Intangible asset amortization | 403 | 287 | 0.18 |
| | R&D | 40 | 40 | 0.02 |
| | Acquired IPR&D | 352 | 251 | 0.15 |
| | Calico collaboration | 750 | 750 | 0.46 |
| | Shire transaction costs | 2,510 | 1,802 | 1.12 |
| | Separation costs | 445 | 385 | 0.24 |
| | Other | 136 | 167 | 0.10 |
| | As adjusted (non-GAAP) | $6,924 | $5,375 | $3.32 |
| 2. | The impact of the specified items by line item was as follows: |
| | | 12M14 |
| | | Net Sales | Cost of products sold | SG&A | R&D | Acquired IPR&D | Other operating expense | Interest expense (income) | Net exchange (gain) loss | Other (income) expense |
| | As reported (GAAP) | $19,960 | $4,426 | $7,724 | $3,297 | $352 | $750 | $391 | $678 | ($27) |
| | Adjusted for specified items: | | | | | | | | | |
| | Other revenue | (81) | -- | -- | -- | -- | -- | -- | -- | -- |
| | Intangible asset amortization | -- | (403) | -- | -- | -- | -- | -- | -- | -- |
| | R&D | -- | -- | -- | (40) | -- | -- | -- | -- | -- |
| | Acquired IPR&D | -- | -- | -- | -- | (352) | -- | -- | -- | -- |
| | Calico collaboration | -- | -- | -- | -- | -- | (750) | -- | -- | -- |
| | Shire transaction costs | -- | -- | (1,703) | -- | -- | -- | (141) | (666) | -- |
| | Separation costs | -- | (18) | (422) | (5) | -- | -- | -- | -- | -- |
| | Other | -- | (58) | (112) | -- | -- | -- | -- | -- | 34 |
| | As adjusted (non-GAAP) | $19,879 | $3,947 | $5,487 | $3,252 | -- | -- | $250 | $12 | $7 |
| 3. | The adjusted tax rate for the full-year 2014 was 22.4 percent, as detailed below: |
| | | 12M14 |
| | | Pre-tax | Income | |
| | | income | taxes | Tax rate |
| | As reported (GAAP) | $2,369 | $595 | 25.1% |
| | Specified items | 4,555 | 954 | 20.9% |
| | As adjusted (non-GAAP) | $6,924 | $1,549 | 22.4% |
| | AbbVie Inc. |
| | Reconciliation of GAAP Reported to Non-GAAP Adjusted Information |
| | Twelve Months Ended Dec. 31, 2013 |
| | (Unaudited) (In millions, except per share data) |
| 1. | Specified items impacted results as follows: |
| | | 12M13 |
| | | Earnings | Diluted |
| | | Pre-tax | After-tax | EPS |
| | As reported (GAAP) | $5,332 | $4,128 | $2.56 |
| | Adjusted for specified items: | | | |
| | Intangible asset amortization | 509 | 370 | 0.23 |
| | Separation costs | 255 | 163 | 0.10 |
| | Acquired IPR&D | 338 | 338 | 0.21 |
| | Restructuring/Other | 81 | 67 | 0.04 |
| | As adjusted (non-GAAP) | $6,515 | $5,066 | $3.14 |
| 2. | The impact of the specified items by line item was as follows: |
| | | | 12M13 |
| | | Cost of products sold | SG&A | R&D | Acquired IPR&D | Net foreign exchange (gain) loss | Other (income) expense |
| | As reported (GAAP) | $4,581 | $5,352 | $2,855 | $338 | $55 | ($1) |
| | Adjusted for specified items: | | | | | | |
| | Intangible asset amortization | (509) | -- | -- | -- | -- | -- |
| | Separation costs | (16) | (230) | (9) | -- | -- | -- |
| | Acquired IPR&D | -- | -- | -- | (338) | -- | -- |
| | Restructuring/Other | (5) | (38) | (15) | -- | (11) | (12) |
| | As adjusted (non-GAAP) | $4,051 | $5,084 | $2,831 | -- | 44 | ($13) |
| 3. | The adjusted tax rate for the full-year 2013 was 22.2 percent, as detailed below: |
| | | 12M13 |
| | | Pre-tax | Income | |
| | | income | taxes | Tax rate |
| | As reported (GAAP) | $5,332 | $1,204 | 22.6% |
| | Specified items | 1,183 | 245 | 20.7% |
| | As adjusted (non-GAAP) | $6,515 | $1,449 | 22.2% |
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