Recent Updates
Recently added Catalysts
MYGN

Ron Rogers Investor Contact: Scott Gleason (801) 584-3065 (801) 584-1143 rrogers@myriad.com sgleason@myriad.com Myriad Genetics Reports Fiscal Fourth-Quarter and Full Year 2015 Financial Resul

Key Takeaway: News Release Media Contact: Ron Rogers Investor Contact: Scott Gleason (801) 584-3065 (801) 584-1143 rrogers@myriad.com sgleason@myriad.com Myriad Genetics Reports Fiscal Fourth-Quarter and Full Year 2015 Financial Results UTAH, August 11, 2015 Myriad Genetics,

Full Press Release Details

News Release
Media Contact: Ron Rogers Investor Contact: Scott Gleason
(801) 584-3065 (801) 584-1143
rrogers@myriad.com sgleason@myriad.com
Myriad Genetics Reports Fiscal Fourth-Quarter and Full Year 2015 Financial Results
UTAH, August 11, 2015 Myriad Genetics, Inc. (NASDAQ: MYGN) today announced financial results for its fiscal fourth-quarter and fiscal full year ended June 30, 2015, provided an update on recent business highlights and provided
fiscal year 2016 and fiscal first-quarter 2016 financial guidance.
We delivered sequential growth in the fourth quarter and made
significant progress towards completing the conversion of our targeted physician base to myRisk Hereditary Cancer testing, said Mark C. Capone, president and chief executive officer of Myriad. As we look forward to fiscal year 2016, we
are confident that we are poised to generate top- and bottom-line growth beginning a trend that reflects increased investments in our product pipeline and international expansion. Over the next several years, we expect that these investments will
drive revenue growth and operating leverage as we look to transform Myriad into a worldwide personalized medicine company.
Financial Highlights
Fiscal Fourth Quarter Fiscal Year
($ in millions) 2015 2014 % Change 2015 2014 % Change
Molecular Diagnostic Testing Revenue
Hereditary cancer testing revenue $ 163.8 $ 168.4 (3%) $ 638.3 $ 720.1 (11%)
Vectra DA testing revenue 11.8 10.8 9% 43.7 14.0 212%
Other testing revenue 3.3 3.6 (8%) 13.5 14.1 (4%)
Total molecular diagnostic testing revenue 178.8 182.9 (2%) 695.5 748.2 (7%)
Pharmaceutical and clinical service revenue 11.1 5.9 88% 27.6 30.0 (8%)
Total Revenue $ 189.9 $ 188.8 1% $ 723.1 $ 778.2 (7%)
Fiscal Fourth Quarter Fiscal Year
($ in millions) 2015 2014 % Change 2015 2014 % Change
Total Revenue $ 189.9 $ 188.8 1% $ 723.1 $ 778.2 (7%)
Gross Profit 152.4 157.8 (3%) 575.7 669.0 (14%)
Gross Margin 80.3 % 83.6 % 79.6 % 86.0 %
Operating Expenses 116.2 104.5 11% 441.5 394.6 12%
Operating Income 36.2 53.3 (32%) 134.2 274.4 (51%)
Operating Margin 19.1 % 28.2 % 18.6 % 35.3 %
Adjusted Operating Income 48.2 56.3 (14%) 167.3 291.6 (43%)
Adjusted Operating Margin 25.4 % 29.8 % 23.1 % 37.5 %
Net Income 18.7 33.7 (45%) 80.2 176.2 (54%)
Diluted EPS 0.26 0.43 (40%) 1.08 2.25 (52%)
Adjusted EPS $ 0.41 $ 0.48 (15%) $ 1.45 $ 2.43 (40%)
Fiscal First-Quarter and Fiscal Full Year 2016 Financial Guidance
Below is a table summarizing Myriad s fiscal year 2016 and fiscal first-quarter 2016 financial guidance:
Revenue Adjusted Earnings Per Share GAAP Diluted Earnings Per Share
Fiscal Year 2016 $750-$770 million $1.60-$1.65 $1.45-$1.50
Fiscal First Quarter 2016 $176-$178 million $0.34-$0.36 $0.30-$0.32
These projections are forward-looking statements and are subject to the risks summarized in the safe harbor
statement at the end of this press release. The Company will provide further details on its business outlook during the conference call it is holding today to discuss its fiscal fourth quarter and full year 2015 financial results and fiscal year
2016 financial guidance.
Conference Call and Webcast
A conference call will be held today, Tuesday, August 11, 2015, at 4:30 p.m. Eastern Time to discuss Myriad s financial results for
the fiscal fourth quarter and full year 2015, business developments and financial guidance. The dial-in number for domestic callers is (800) 410-1397. International callers may dial (303) 223-2680. All callers will be asked to reference
reservation number 21772056. An archived replay of the call will be available for seven days by dialing (800) 633-8284 and entering the reservation number above. The conference call along with a slide presentation will also will be available
through a live Webcast at www.myriad.com.
About Myriad Genetics
Myriad Genetics Inc., is a leading personalized medicine company dedicated to being a trusted advisor transforming patient lives worldwide with
pioneering molecular diagnostics. Myriad discovers and commercializes molecular diagnostic tests that: determine the risk of developing disease, accurately diagnose disease, assess the risk of disease progression, and guide treatment decisions
across six major medical specialties where molecular diagnostics can significantly improve patient care and lower healthcare costs. Myriad is focused on three strategic imperatives: transitioning and expanding its hereditary cancer testing markets,
diversifying its product portfolio through the introduction of new products and increasing the revenue contribution from international markets. For more information on how Myriad is making a difference, please visit the Company s website:
Myriad, the Myriad logo, BART, BRACAnalysis, Colaris, Colaris AP, myPath, myRisk, myRisk
Hereditary Cancer, myChoice, myPlan, BRACAnalysis CDx, Tumor BRACAnalysis CDx, myChoice HRD, Vectra and Prolaris are trademarks or registered trademarks of Myriad Genetics, Inc. or its wholly owned subsidiaries in the United States and foreign
countries. MYGN-F, MYGN-G
MYRIAD GENETICS, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS (Unaudited)
Three Months Ended Twelve Months Ended
(in millions, except per share amounts) Jun. 30, 2015 Jun. 30, 2014 Jun. 30, 2015 Jun. 30, 2014
Molecular diagnostic testing $ 178.8 $ 182.9 $ 695.5 $ 748.2
Pharmaceutical and clinical services 11.1 5.9 27.6 30.0
Total revenue 189.9 188.8 723.1 778.2
Costs and expenses:
Cost of molecular diagnostic testing 32.0 28.3 132.8 96.1
Cost of pharmaceutical and clinical services 5.5 2.7 14.6 13.1
Research and development expense 18.7 20.2 75.5 67.5
Selling, general, and administrative expense 97.5 84.3 366.0 327.1
Total costs and expenses 153.7 135.5 588.9 503.8
Operating income 36.2 53.3 134.2 274.4
Other income (expense):
Interest income 0.1 0.2 0.4 5.4
Other (0.8 ) (0.9 ) 0.3 (2.0 )
Total other income (expense) (0.7 ) (0.7 ) 0.7 3.4
Income before income taxes 35.5 52.6 134.9 277.8
Income tax provision 16.8 18.9 54.7 101.6
Net income $ 18.7 $ 33.7 $ 80.2 $ 176.2
Earnings per share:
Basic $ 0.27 $ 0.45 $ 1.12 $ 2.33
Diluted $ 0.26 $ 0.43 $ 1.08 $ 2.25
Weighted average shares outstanding
Basic 69.4 74.4 71.3 75.7
Diluted 72.4 77.7 74.5 78.2
Consolidated Balance Sheets (Unaudited)
(in millions) Jun. 30, 2015 Jun. 30, 2014
Current assets:
Cash and cash equivalents $ 64.1 $ 64.8
Marketable investment securities 80.7 121.6
Prepaid expenses 12.5 6.9
Inventory 25.1 23.9
Trade accounts receivable, less allowance for doubtful accounts of $7.6 in 2015 and $9.0 in 2014 85.8 81.9
Deferred taxes 13.5 6.5
Prepaid taxes 13.6
Other receivables 1.9 3.2
Total current assets 283.6 322.4
Property, plant and equipment, net 67.2 34.6
Long-term marketable investment securities 40.6 84.1
Long-term deferred taxes 3.2
Intangibles, net 192.6 205.3
Goodwill 177.2 169.2
Other assets 5.0 5.0
Total assets $ 766.2 $ 823.8
Current liabilities:
Accounts payable $ 21.1 $ 23.1
Accrued liabilities 46.1 56.4
Deferred revenue 1.5 1.1
Total current liabilities 68.7 80.6
Unrecognized tax benefits 26.4 24.2
Other long-term liabilities 8.8
Long-term deferred taxes 0.2
Total liabilities 104.1 104.8
Stockholders equity:
Common stock, 68.9 and 73.5 shares outstanding at June 30, 2015 and 2014 respectively 0.7 0.7
Additional paid-in capital 745.4 717.8
Accumulated other comprehensive loss (7.0 ) (1.5 )
Retained earnings (accumulated deficit) (77.0 ) 2.0
Total stockholders equity 662.1 719.0
Total liabilities and stockholders equity $ 766.2 $ 823.8
Consolidated Statement of Cash Flows (Unaudited)
(in millions) Jun. 30, 2015 Jun. 30, 2014 Jun. 30, 2013
Cash flows from operating activities:
Net income $ 80.2 $ 176.2 $ 147.2
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 25.0 13.8 8.9
Loss on disposition of assets 0.5 0.9
Share-based compensation expense 45.7 27.1 26.6
Bad debt expense 31.5 39.2 33.3
Impairment of intangible assets 1.5
Deferred income taxes (0.4 ) 8.1 7.4
Unrecognized tax benefits 2.1 (0.7 ) 0.7
Accreted interest on note receivable (3.3 ) (2.7 )
Excess tax benefit from share-based compensation (3.4 ) (11.1 ) (7.9 )
Gain on sale of marketable investment securities (0.2 )
Changes in assets and liabilities:
Prepaid expenses (5.5 ) (5.5 ) 0.8
Trade accounts receivable (34.4 ) (24.4 ) (67.2 )
Other receivables 2.5 (1.9 ) (0.7 )
Inventory (0.8 ) (15.8 ) 6.6
Prepaid taxes 13.6 (12.9 )
Accounts payable (3.1 ) (1.5 ) 8.0
Accrued liabilities (13.4 ) 3.1 11.6
Deferred revenue 0.4 (1.1 )
Net cash provided by operating activities 140.5 190.2 173.9
Cash flows from investing activities:
Capital expenditure (23.9 ) (14.3 ) (11.4 )
Acquisitions, net of cash acquired (20.1 ) (223.5 )
Equity investment (5.0 )
Purchases of marketable investment securities (80.7 ) (161.8 ) (443.8 )
Proceeds from maturities and sales marketable investment securities 165.6 382.5 385.3
Net cash used in investing activities 40.9 (17.1 ) (74.9 )
Cash flows from financing activities:
Net proceeds from common stock issued under share-based compensation plans 30.0 64.8 57.8
Excess tax benefit from share-based compensation 3.4 11.1 7.9
Repurchase and retirement of common stock (210.7 ) (287.7 ) (146.3 )
Net cash used in financing activities (177.3 ) (211.8 ) (80.6 )
Effect of foreign exchange rates on cash and cash equivalents (4.8 ) (0.6 ) (0.7 )
Net increase (decrease) in cash and cash equivalents (0.7 ) (39.3 ) 17.7
Cash and cash equivalents at beginning of year 64.8 104.1 86.4
Cash and cash equivalents at end of year $ 64.1 $ 64.8 $ 104.1
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995,
including statements relating to our progress towards completing the conversion of our targeted physician base to myRisk Hereditary Cancer testing; our belief that we are poised to generate top- and bottom-line growth that reflects increased
investments in our product pipeline and international expansion; our investments driving revenue growth and operating leverage over the next several years as we look to transform the Company into a worldwide personalized medicine company; the
Company s fiscal first quarter 2016 and fiscal full year 2016 financial guidance under the caption Fiscal First-Quarter and Fiscal Full Year 2016 Financial Guidance ; and the Company s strategic directives under the caption
About Myriad Genetics. These forward-looking statements are based on management s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ
materially and adversely from those set forth in or implied by forward-looking statements. These risks and uncertainties include, but are not limited to: the risk that sales and profit margins of our molecular diagnostic tests and pharmaceutical and
clinical services may decline; risks related to our ability to transition from our existing product portfolio to our new tests, including unexpected costs and delays; risks related to decisions or changes in governmental or private insurers
reimbursement levels for our tests or our ability to obtain reimbursement for our new tests at comparable levels to our existing tests; risks related to increased competition and the development of new competing tests and services; the risk that we
may be unable to develop or achieve commercial success for additional molecular diagnostic tests and pharmaceutical and clinical services in a timely manner, or at all; the risk that we may not successfully develop new markets for our molecular
diagnostic tests and pharmaceutical and clinical services, including our ability to successfully generate revenue outside the United States; the risk that licenses to the technology underlying our molecular diagnostic tests and pharmaceutical and
clinical services and any future tests and services are terminated or cannot be maintained on satisfactory terms; risks related to delays or other problems with operating our laboratory testing facilities and our healthcare clinic; risks related to
public concern over genetic testing in general or our tests in particular; risks related to regulatory requirements or enforcement in the United States and foreign countries and changes in the structure of the healthcare system or healthcare payment
systems; risks related to our ability to obtain new corporate collaborations or licenses and acquire new technologies or businesses on satisfactory terms, if at all; risks related to our ability to successfully integrate and derive benefits from any
technologies or businesses that we license or acquire; risks related to our projections about our business, results of operations and financial condition; risks related to the potential market opportunity for our products and services; the risk that
we or our licensors may be unable to protect or
that third parties will infringe the proprietary technologies underlying our tests; the risk of patent-infringement claims or challenges to the validity of our patents or other intellectual
property; risks related to changes in intellectual property laws covering our molecular diagnostic tests and pharmaceutical and clinical services and patents or enforcement in the United States and foreign countries, such as the Supreme Court
decision in the lawsuit brought against us by the Association for Molecular Pathology et al; risks of new, changing and competitive technologies and regulations in the United States and internationally; and other factors discussed under the heading
Risk Factors contained in Item 1A of in our most recent Annual Report on Form 10-K for the fiscal year ended June 30, 2014, which has been filed with the Securities and Exchange Commission, as well as any updates to those risk
factors filed from time to time in our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. All information in this press release is as of the date of the release, and Myriad undertakes no duty to update this information unless required by
Statement regarding use of non-GAAP financial measures
In this press release, the Company s financial results and financial guidance are provided in accordance with accounting principles
generally accepted in the United States (GAAP) and using certain non-GAAP financial measures. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and
facilitates the analysis of the Company s core operating results and comparison of operating results across reporting periods. Management also uses non-GAAP financial measures to establish budgets and to manage the Company s business. A
reconciliation of the GAAP financial results to non-GAAP financial results is included in the attached financial statements.
Following is a description
of the adjustments made to GAAP financial measures:
The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the
reconciliation between these presentations, to more fully understand its business. Non-GAAP financial results are reported in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
Reconciliation of GAAP to Non-GAAP Financial Measures
for the Three and Twelve Months ended June 30, 2015 and 2014
(Unaudited data in millions, except per share amount)
Three Months Ended Twelve Months Ended
Jun. 30, 2015 Jun. 30, 2014 Jun. 30, 2015 Jun. 30, 2014
GAAP Cost of molecular diagnostic testing $ 32.0 $ 28.3 $ 132.8 $ 96.1
GAAP Cost of pharmaceutical and clinical services 5.5 2.7 14.6 13.1
Acquisition change of control payments (0.2 )
Acquisition accelerated share-based compensation (0.2 )
Acquisition amortization of intangible assets
Non-GAAP COGS $ 37.5 $ 31.0 $ 147.4 $ 108.8
Non-GAAP Gross Margin 80 % 84 % 80 % 86 %
GAAP Research and Development $ 18.7 $ 20.2 $ 75.5 $ 67.5
Acquisition change of control payments (1.7 )
Acquisition accelerated share-based compensation (2.1 )
Acquisition amortization of intangible assets (0.1 ) (0.1 ) (0.3 ) (0.3 )
Executive transition costs (0.4 )
Discontinued operations (0.1 ) (0.3 )
Non-GAAP R&D $ 18.5 $ 20.1 $ 74.5 $ 63.4
GAAP Selling, General and Administrative $ 97.5 $ 84.3 $ 366.0 $ 327.1
Acquisition change of control payments (3.7 )
Acquisition accelerated share-based compensation (4.7 )
Acquisition amortization of intangible assets (3.1 ) (2.9 ) (12.2 ) (4.3 )
Executive transition costs (8.3 ) (19.5 )
Discontinued operations (0.4 ) (0.4 )
Non-GAAP SG&A $ 85.7 $ 81.4 $ 333.9 $ 314.4
GAAP Operating Income $ 36.2 $ 53.3 $ 134.2 $ 274.4
Acquisition change of control payments 5.7
Acquisition accelerated share-based compensation 6.9
Acquisition amortization of intangible assets 3.2 3.0 12.5 4.6
Executive transition costs 8.3 19.9
Discontinued operations 0.5 0.7
Non-GAAP Operating Income $ 48.2 $ 56.3 $ 167.3 $ 291.6
Non-GAAP Operating Margin 25 % 30 % 23 % 37 %
GAAP Net Income $ 18.7 $ 33.7 $ 80.2 $ 176.2
Acquisition change of control payments 5.7
Acquisition accelerated share-based compensation 6.9
Acquisition amortization of intangible assets 3.2 3.0 12.5 4.6
Executive transition costs 8.3 19.9
Discontinued operations 0.8 0.8 1.0 0.8
Other tax expense 2.1 2.1
Tax expense associated with non-GAAP adjustments (3.7 ) (0.3 ) (7.7 ) (4.6 )
Non-GAAP Net Income $ 29.4 $ 37.2 $ 108.0 $ 189.6
GAAP Diluted EPS $ 0.26 $ 0.43 $ 1.08 $ 2.25
Non-GAAP Diluted EPS $ 0.41 $ 0.48 $ 1.45 $ 2.43
Free Cash Flow Reconciliation
(Unaudited data in thousands)
Three Months Ended Twelve Months Ended
Jun. 30, 2015 Jun. 30, 2014 Jun. 30, 2015 Jun. 30, 2014
GAAP cash flow from operations $ 51.0 $ 40.9 $ 140.5 $ 190.2
Capital expenditures (2.0 ) (4.6 ) (23.9 ) (14.3 )
Free cash flow $ 49.0 $ 36.3 $ 116.6 $ 175.9
Reconciliation of GAAP to Non-GAAP for Fiscal Year 2016 and Fiscal First Quarter 2016 Financial Guidance
The Company s future performance and financial results are subject to risks and uncertainties, and actual results could differ materially
from guidance set forth below. Some of the factors that could affect the Company s financial results are stated in the safe harbor statement of this press release. More information on potential factors that could affect the Company s
financial results are included under the heading Risk Factors contained in Item 1A in the Company s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, as well as any updates to those
risk factors filed from time to time in the Company s Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.
Fiscal Year 2016
Diluted net income per share
GAAP diluted net income per share $ 1.45 - $1.50
Acquisition amortization of intangible assets 0.15
Non-GAAP diluted net income per share $ 1.60 - $1.65
Fiscal First Quarter 2016
Diluted net income per share
GAAP diluted net income per share $ 0.30 - $0.32
Acquisition amortization of intangible assets 0.04
Non-GAAP diluted net income per share $ 0.34 - $0.36
Last updated: Aug 11, 2015