Total Revenues of $204 Million in Fourth Quarter,
$843 Million in Full-Year 2007;
GAAP EPS Loss of $0.20 in Fourth Quarter, EPS of $1.22 in
Full-Year 2007
EPS Excluding Specific Items of $0.45 in Fourth Quarter, $1.86 in
Full-Year 2007;
Cash Flows From Operations of $79 Million in Fourth Quarter,
$341 Million in Full-Year 2007;
Year-End Cash Balances in Excess of $430 Million
TORONTO--(BUSINESS WIRE)--March 13, 2008--Biovail Corporation
(NYSE: BVF) (TSX: BVF) today announced financial results for the
three-month and 12-month periods ending December 31, 2007. To the
extent that this press release contains forward-looking statements,
investors are cautioned that these are based on our current views, and
actual outcomes are not certain. Please see the note on
forward-looking information following the conference-call details
below.
Total revenues for the three months ended December 31, 2007 were
$203.9 million, compared with $307.6 million for the fourth quarter of
2006. Total revenues for the 12 months ended December 31, 2007 were
$842.8 million, compared with $1.07 billion for the full year of 2006,
a decrease of 21%. In accordance with United States Generally Accepted
Accounting Principles (GAAP), Biovail reported a net loss of $32.0
million in the fourth quarter of 2007, compared with net income of
$118.0 million for the corresponding 2006 period. For the 12 months
ended December 31, 2007, net income was $195.5 million, compared with
$211.6 million for the same period a year earlier. For the fourth
quarter of 2007, Biovail reported a GAAP net loss per share of $0.20,
versus EPS of $0.74 for the fourth quarter of 2006. For the full year
of 2007, GAAP EPS were $1.22, versus EPS of $1.32 for the full year of
2006.
Specific Items Affecting Fourth-Quarter Results
GAAP net income and EPS figures for the fourth quarter of 2007
were negatively impacted by a $83.1-million charge (net of anticipated
insurance recoveries) related to the December 2007 proposed settlement
of U.S. class-action shareholder litigation; a $10-million provision
related to a potential settlement of the Securities and Exchange
Commission (SEC) investigation; an impairment charge of $9.9 million
related to the write-down of certain product rights and technology
assets, including Ultram(R) ODT and Zolpidem ODT; an $8.9-million loss
on impairment of investments, which includes a $6.0-million charge
related to Biovail's investment in auction-rate securities; and a
$1.2-million equity loss related to an investment in Western Life
Sciences Venture Fund (WLS). These charges were partially offset by a
gain of $8.6 million upon Biovail's sale of shares of Reliant
Pharmaceuticals, Inc. (Reliant) further to that company's acquisition
by GlaxoSmithKline (GSK). In aggregate, these items negatively
impacted fourth-quarter 2007 net income by $104.4 million, and diluted
EPS by $0.65. Accordingly, Net Income Excluding Specific Items and EPS
Excluding Specific Items in the fourth quarter of 2007 were $72.5
million and $0.45, respectively. GAAP net income and EPS figures for
the fourth quarter of 2006 were negatively impacted by total charges
of $33.1 million primarily related to restructuring costs and legal
settlements. For more information concerning Net Income Excluding
Specific Items and EPS Excluding Specific items, please refer below to
Table 1 - Reconciliation of U.S. GAAP Net Income and EPS to Net Income
Excluding Specific Items and EPS Excluding Specific Items, and "Use of
Non-GAAP Financial Measures".
Specific Items Affecting Full-Year 2007 Results
GAAP net income and EPS figures for the full year of 2007 were
negatively impacted by $95.1 million in charges (net of anticipated
insurance recoveries) related to legal settlements; a loss of $12.5
million on the extinguishment of the Company's Senior Subordinated
Notes, which included a $7.9-million premium for the early redemption,
and the write-off of $4.6 million in deferred financing and other
associated costs; an impairment charge of $9.9 million related to the
write-down of certain product rights and technology assets, including
Ultram(R) ODT and Zolpidem ODT; an $8.9-million loss on impairment of
investments; a $2.5-million equity loss related to an investment in
WLS, and a $0.7-million restructuring charge. These charges were
partially offset by a $24.4-million net gain related to the disposal
of investments in Ethypharm S.A. and Reliant; and $1.7 million in cost
recoveries, primarily related to the Wellbutrin XL(R) agreement as a
result of additional sample purchases by GSK in the second quarter of
2007. In aggregate, these items negatively impacted net income and EPS
in 2007 by $103.5 million and $0.64, respectively. Accordingly, Net
Income Excluding Specific Items and EPS Excluding Specific Items in
the full year of 2007 were $299.1 million and $1.86, respectively.
GAAP net income and EPS figures for the full year of 2006 were
negatively impacted by total net charges of $228.9 million primarily
related to a write-down of intangible assets and to contract costs in
the Wellbutrin XL(R) agreement with GSK. For more information
concerning Net Income Excluding Specific Items and EPS Excluding
Specific items, please refer below to Table 1 - Reconciliation of U.S.
GAAP Net Income and EPS to Net Income Excluding Specific Items and EPS
Excluding Specific Items, and "Use of Non-GAAP Financial Measures".
"While I am proud of our employees and their many accomplishments
in a period of significant challenge, 2007 was a very difficult year
for Biovail and its shareholders," said Biovail Interim Chairman and
Chief Executive Officer Dr. Douglas Squires. "However, the Company
remains strong and an exciting opportunity now exists to implement
meaningful changes to the business - changes that could facilitate a
new growth trajectory for Biovail. I am very confident in the
Company's long-term prospects and in our ability to strategically
adapt to a changing marketplace."
Strategy Update
Biovail believes that 2008 represents an inflection point in the
Company's strategic direction and focus. Biovail's senior management
team will be undertaking a comprehensive review of the Company's core
strategies, including its global infrastructure, commercialization
model, product-development pipeline, acquisition targets, litigation
strategy and capital structure. The objective of this wide-ranging
analysis is to optimize all facets of Biovail's business model, to
ensure the Company's core competencies are fully exploited, and to
ensure the Company's investments are targeted towards opportunities
that provide an appropriate return. An immediate action being taken in
this regard is the termination of BVF-146, a once-daily combination
product consisting of tramadol and a non-steroidal anti-inflammatory
drug, following a reassessment of the commercial opportunity for this
product.
Biovail remains committed to enhancing shareholder value and to
maximizing the potential of the Company, using its strong fundamental
base business as a starting point. In 2007, Biovail's management team
and Board of Directors began exploring potential strategic and
business opportunities to enhance shareholder value and will continue
to do so. A committee of independent members of the Board of Directors
has been established to work closely with management and external
advisors to facilitate these and other considerations. In addition,
Biovail anticipates further strengthening its management team through
the addition of executives with operational, scientific, business
and/or financial expertise.
Fourth-Quarter 2007 Financial Performance
Product revenues for the fourth quarter of 2007 were $194.0
million, compared with $296.0 million in the fourth quarter of 2006, a
decrease of 34% that primarily reflects the impact of generic
competition for Wellbutrin XL(R) 300mg tablets, and lower revenues
from Biovail's generic pharmaceutical products. Partially offsetting
factors include increases in revenues from Zovirax(R), Ultram(R) ER,
Biovail Pharmaceuticals Canada (BPC) and the Company's Legacy products
portfolio. Product revenues for full-year 2007 were $801.0 million
compared with $1.02 billion for 2006, a decrease of 22%.
Product revenues for Wellbutrin XL(R) were $44.4 million in the
fourth quarter of 2007, and $212.3 million in the full year of 2007,
compared with $148.1 million and $450.3 million in the corresponding
periods in 2006, respectively. These decreases reflect the December
2006 introduction of generic competition for the 300mg dosage strength
of the product. Under the terms of a comprehensive settlement
agreement entered into with a number of generic pharmaceutical
companies, a generic version of the 150mg strength of Wellbutrin XL(R)
could be launched commencing the earlier of May 30, 2008 or upon an
adverse decision of Biovail's appeal of the non-infringement summary
judgment previously granted to Anchen Pharmaceuticals LLP. Partially
offsetting this decline were revenues from the launch of the product
in a number of European countries in 2007, including Germany, Italy,
Spain, Sweden, the Netherlands, Norway, Austria, Iceland, Poland,
Portugal and Greece.
Launched in February 2006 by Biovail's strategic partner
Ortho-McNeil, Inc. (OMI), Ultram(R) ER generated revenues of $23.4
million in the fourth quarter of 2007 and $86.7 million in the full
year of 2007, compared with $19.2 million and $53.7 million in the
corresponding periods in 2006, respectively. The year-over-year
changes reflect higher prescription volumes, an increase in Biovail's
supply price from 27.5% of net sales in 2006 to 37.5% in 2007, and the
impact of a price increase in the first quarter of 2007, partially
offset by a reduction in inventory levels during 2007.
Revenues for Biovail's Zovirax(R) franchise were $43.6 million in
the fourth quarter of 2007, and $147.1 million in the full year of
2007, representing increases of 40% and 31%, respectively, when
compared with $31.1 million and $112.4 million in the prior-year
periods. Revenue growth in 2007 was favourably impacted by price
increases and a one-month increase in wholesaler inventory levels -
from 0.5 months at the end of 2006 to 1.5 months at the end of 2007.
In the fourth quarter of 2007, Zovirax(R) Ointment and Zovirax(R)
Cream held a combined 73.1% share of the U.S. topical herpes market,
an increase of 2.4% in market share versus fourth-quarter 2006 levels.
Fourth-quarter 2007 revenues for BPC were $19.3 million, compared
with $15.7 million in the prior-year period, an increase of 23% that
reflects year-over-year increases in total prescription volume of 108%
and 33% for Wellbutrin(R) XL and Tiazac(R) XC, respectively. BPC
revenues for the full year of 2007 were $61.9 million, compared with
$68.7 million in the full year of 2006. The year-over-year declines
reflect the continued erosion of Wellbutrin(R) SR and Tiazac(R) as a
result of generic competition.
In the U.S., Cardizem(R) LA generated revenues of $8.2 million in
the fourth quarter of 2007, compared with $12.4 million for the
corresponding period in 2006. In the full year of 2007, Cardizem(R) LA
generated revenues of $69.3 million, compared with $56.5 million in
the full year of 2006. The decrease in the fourth quarter of 2007
reflects lower prescription volumes. The amortization of deferred
revenues associated with the May 2005 Kos transaction positively
impacted Cardizem(R) LA revenues by $3.8 million and $15.1 million in
the fourth quarter and full year, respectively, of both 2006 and 2007.
Biovail's Legacy products generated revenues of $35.7 million for
the fourth quarter of 2007, compared with $28.9 million in the fourth
quarter of 2006, an increase of 23% that represents the impact of
price increases and the timing of wholesaler purchases. In the full
year of 2007, Legacy products generated revenues of $136.9 million,
compared with $139.9 million in the full year of 2006, a decrease of
2% that primarily reflects lower sales volumes of Tiazac(R) due to the
increased generic competition.
Product revenue for Biovail's portfolio of generic products
(distributed by a subsidiary of Teva) was $19.4 million in the fourth
quarter of 2007 and $86.8 million in the full year of 2007, compared
with $41.0 million and $141.1 million in the corresponding periods in
2006, respectively. The decreases in 2007 reflect a loss of market
share, lower pricing and price adjustments by Teva to its customers.
Performance Summary
The following table summarizes Biovail's product revenue
performance by category in the fourth quarter and full year of 2007:
($000s) Q4/07 Q4/06 Change 2007 2006 Change
Revenues Revenues (%) Revenues Revenues (%)
----------------------------------------------------------------------
Wellbutrin XL(R) 44,356 148,081 (70) 212,325 450,329 (53)
Ultram(R) ER 23,368 19,152 22 86,714 53,724 61
Zovirax(R) 43,603 31,051 40 147,120 112,388 31
Biovail
Pharmaceuticals
Canada 19,338 15,721 23 61,889 68,723 (10)
Cardizem(R) LA 8,236 12,378 (33) 69,300 56,509 23
Legacy Products 35,692 28,912 23 136,855 139,853 (2)
Generics 19,364 40,967 (53) 86,843 141,075 (38)
Teveten - (265) NM - (1,323) NM
----------------------------------------------------------------------
Total Product
Revenues 193,957 295,997 (34) 801,046 1,021,278 (22)
----------------------------------------------------------------------
NM = Not Meaningful
Research-and-development (R&D) revenue in the fourth quarter of
2007 was $5.4 million, compared with $7.0 million in the fourth
quarter of 2006, reflecting lower activity levels at the Company's
Contract Research Division (CRD). In the full year of 2007, R&D
revenues were $23.8 million, compared with $21.6 million for the full
year of 2006, a 10% increase that reflects a 1% increase in CRD
revenues (where the impact of higher activity levels was offset by
lower pricing), and a $1.9-million payment from Kos in the second
quarter of 2007 related to development activity for Vasocard(TM) prior
to the project's termination.
Royalty and other revenue was down 1% to $4.6 million in the
fourth quarter of 2007, and down 28% to $17.9 million in the full year
of 2007, which primarily reflects the elimination of co-promotion
revenues associated with Ultram(R) ER and Zoladex(R) 3.6mg.
Cost of goods sold for the fourth quarter of 2007 was $62.3
million, compared with $49.6 million in the fourth quarter of 2006.
Gross margins based on product sales were 68% and 72% in the fourth
quarter and full year of 2007, respectively, compared with 83% and 79%
in the fourth quarter and full year of 2006, respectively. The decline
in 2007 reflects lower gross margins associated with Wellbutrin(R) XL
revenues, which remained at the lowest tier of pricing as per the
supply-and-distribution agreement with GSK until December 2007; the
inclusion of Biovail's one-third share of the costs associated with
GSK's license agreement with Watson Pharmaceuticals, Inc. related to
Wellbutrin XL(R) 150mg; and lower gross margins associated with the
Company's generic products. These items were partially offset by price
increases implemented across a number of product lines, and the
increase in Biovail's supply price for Ultram(R) ER from 27.5% of net
sales in 2006 to 37.5% in 2007.
R&D expenditures were $29.3 million for the fourth quarter of 2007
and $118.1 million for the full year of 2007, compared with $28.4
million and $95.5 million for the corresponding periods in 2006,
respectively. The year-over-year increase in 2007 reflects higher
spending for BVF-033 (bupropion salt); BVF-146 (combination of
tramadol and a non-steroidal anti-inflammatory drug); and BVF-012
(enhanced absorption, alcohol-resistant venlafaxine). R&D expenditures
in 2007 reflect a 50% year-over-year increase in expenses associated
with feasibility programs in Biovail's development pipeline.
Selling, general and administrative (SG&A) expenses for the fourth
quarter and full year of 2007 were $31.4 million and $161.0 million,
respectively, compared with $65.1 million in the fourth quarter of
2006, and $238.4 million in the full year of 2006. The decreases in
2007 reflect the impact of the December 2006 restructuring of the
Company's U.S. commercial operations, lower advertising and
promotional expenses, lower legal expenses (net of insurance
recoveries), lower stock-based compensation expenses, and overall
cost-containment initiatives.
Amortization expense in the fourth quarter of 2007 was $12.1
million, which is consistent with the level in the fourth quarter of
2006. In the full year of 2007, amortization expense was $48.0
million, compared with $56.5 million in the full year of 2006, a 15%
decrease that primarily reflects the third-quarter 2006 write-down of
intangible assets associated with Vasotec(R) and Glumetza(R).
In 2007, we recorded a charge of $95.1 million related to legal
settlements, of which $83.1 million (net of expected insurance
recoveries) pertained to the settlement of the U.S. securities class
action complaint, and $10.0 million to a potential settlement of the
SEC investigation.
Specific Items Affecting Operations
Specific Items impacting net income and EPS in the fourth quarter
and full-year 2007 are outlined below.
Table 1. Reconciliation of U.S. GAAP Net Income and EPS to Net
Income Excluding Specific Items and EPS Excluding Specific Items
Amounts expressed in thousands of dollars, except per share data
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31, 2007 December 31, 2007
----------------------------------------------------------------------
GAAP Net Income (Loss) (31,971) 195,539
GAAP Diluted EPS ($0.20) $1.22
Adjustments:
Legal settlements 93,052 95,114
Intangible asset impairments,
net of gain on disposal 9,910 9,910
Restructuring costs (recovery) (44) 668
Contract costs (recovery) - (1,735)
Gain on disposal of
investments (8,640) (24,356)
Loss on early extinguishment
of debt - 12,463
Loss on impairment of
investments 8,949 8,949
Equity loss 1,203 2,528
----------------------------------------------------------------------
Total Adjustments 104,430 103,541
Diluted EPS Impact of Total
Adjustments $0.65 $0.64
Net Income Excluding Specific
items 72,459 299,080
----------------------------------------------------------------------
Diluted EPS Excluding Specific
Items $0.45 $1.86
----------------------------------------------------------------------
Use of Non-GAAP Financial Measures
Net income excluding specific items ("Net Income Excluding
Specific Items") and earnings per share excluding specific items ("EPS
Excluding Specific Items") have been provided as Biovail believes they
are useful measures for investors and management that facilitate, on
an aggregate and on a per-share basis, respectively, operating
comparisons between periods. Net Income Excluding Specific Items and
EPS Excluding Specific Items exclude the effects of non-cash write
downs of certain intangible assets, charges related to contract-loss
contingencies and lost-profits provisions in certain agreements,
restructuring costs, legal settlements and gains or losses on
investments. The items are excluded in the determination of such
measures because they are either non-cash in nature, non-recurring, or
otherwise not considered to be in the ordinary course of business.
Such measures do not have any standardized meanings prescribed by
GAAP, and are therefore unlikely to be comparable to similar measures
presented by other companies. Net Income Excluding Specific Items and
EPS Excluding Specific Items are not measures of performance under
GAAP, and should not be considered in isolation of or as substitutes
for net income or earnings per share prepared in accordance with GAAP.
Biovail has provided a reconciliation of Net Income Excluding Specific
Items to GAAP net income and of EPS Excluding Specific Items to GAAP
earnings per share above.
Balance Sheet, Cash Flow
At the end of 2007, Biovail had cash balances of $433.6 million,
marketable securities valued at $28.3 million, no long-term
obligations and no outstanding borrowings under its credit facility.
Biovail currently has $26.8 million of principal invested in
auction-rate securities (ARS), all of which were rated Aaa/AAA at the
time of purchase. However, given declines in underlying collateral
values, three ARS holdings with an aggregate principal amount of $9.0
million were downgraded in the fourth quarter of 2007. Although these
securities continue to pay cash interest, Biovail has been unable to
liquidate its ARS portfolio. As such, the Company has recorded this
portfolio at its estimated fair value of $18.0 million as at December
31, 2007. Biovail has recorded an impairment charge of $6.0 million in
the fourth quarter of 2007, and a $2.8-million unrealized loss in
other comprehensive income. Biovail has discontinued additional
investments in ARS.
Cash flows from continuing operations were $79.3 million in the
fourth quarter of 2007 and $340.9 million in the full year of 2007,
compared with $235.6 million and $522.5 million in the corresponding
periods of 2006. The year-over-year decreases are largely attributable
to lower gross profit in the 2007 periods.
Net capital expenditures were $11.4 million in the fourth quarter
of 2007, and $35.1 million in the full year of 2007, which reflects
the recently completed expansion of the Company's corporate
headquarters in Mississauga, Ontario, and upgrades to the Company's
manufacturing facility in Dorado, Puerto Rico.
Conference Call
Biovail management will host a conference call and Webcast on
Thursday, March 13, 2008, at 8:30 a.m. EDT for Company executives to
discuss 2007 fourth-quarter and full-year 2007 financial results.
Following the discussion, Biovail executives will address inquiries
from research analysts.
A live Webcast of this call will be available through the Investor
Relations section of Biovail's Web site at www.biovail.com. To access
the call live, please dial 416-641-6136 (Toronto and International
callers) and 1-866-225-9256 (U.S. and Canada). Listeners are
encouraged to dial in 10 minutes before the call begins to avoid
delays.
A replay of the conference call will be available until 7 p.m. EDT
on Thursday, March 20, 2008, by dialing 416-695-5800 (Toronto and
International callers) and 1-800-408-3053 (U.S. and Canada), using
access code, 3253431#.
Caution Regarding Forward-Looking Information and "Safe Harbor"
Statement
To the extent any statements made in this release contain
information that is not historical, these statements are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and may be forward-looking
information under applicable Canadian provincial securities
legislation (collectively, "forward-looking statements"). These
forward-looking statements relate to, among other things, our
objectives, goals, targets, strategies, intentions, plans, beliefs,
estimates, outlook and guidance, including, without limitation,
statements concerning the Company's intention and ability to implement
changes to its business and strategy, its intention to review its core
strategies and the expected results of this review, expected changes
to its management team and its ability to recruit management
candidates, the continued exploration of strategic and business
opportunities, timing of the launch of a generic version of the 150mg
strength of Wellbutrin XL(R), the status of its partnership
discussions for its pipeline programs and its intent and timing
regarding the liquidation of its ARS holdings, and can generally be
identified by the use of words such as "guidance", "believe,"
"anticipate," "expect," "intend," "plan," "will," "may" and other
similar expressions. In addition, any statements that refer to
expectations, projections or other characterizations of future events
or circumstances are forward-looking statements.
Although Biovail believes that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties, and undue reliance should not be placed on
such statements. Certain material factors or assumptions are applied
in making forward-looking statements, and actual results may differ
materially from those expressed or implied in such statements.
Important factors that could cause actual results to differ materially
from these expectations include, among other things: the difficulty of
predicting U.S. Food and Drug Administration, Canadian Therapeutic
Products Directorate and European regulatory approvals, acceptance and
demand for new pharmaceutical products, the impact of competitive
products and pricing, new product development and launch, reliance on
key strategic alliances, availability of raw materials and finished
products, infringement and alleged infringement of our intellectual
property rights and those of others, the regulatory environment, tax
rate assumptions, the outcome of legal proceedings and settlements
thereto, fluctuations in operating results and other risks detailed
from time to time in the Company's filings with the Securities and
Exchange Commission and the Ontario Securities Commission, as well as
the Company's ability to anticipate and manage the risks associated
with the foregoing. Additional information about these factors and
about the material factors or assumptions underlying such
forward-looking statements may be found in the body of this news
release, as well as under the heading "Risk Factors" contained in Item
3(D) of Biovail's most recent Annual Report on Form 20-F.
The Company cautions that the foregoing list of important factors
that may affect future results is not exhaustive. When relying on
Biovail's forward-looking statements to make decisions with respect to
the Company, investors and others should carefully consider the
foregoing factors and other uncertainties and potential events.
Biovail undertakes no obligation to update or revise any
forward-looking statement.
About Biovail Corporation
Biovail Corporation is a specialty pharmaceutical company, engaged
in the formulation, clinical testing, registration, manufacture and
commercialization of pharmaceutical products utilizing advanced
drug-delivery technologies. For more information about Biovail, visit
the Company's Web site at www.biovail.com.
For further information, please contact Nelson F. Isabel at
905-286-3000 or send inquiries to [email protected].
BIOVAIL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(All dollar amounts are expressed in thousands of U.S. dollars, except
per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
------------------- ---------------------
2007 2006 2007 2006
--------- --------- --------- -----------
REVENUE
Product sales $193,957 $295,997 $801,046 $1,021,278
Research and development 5,372 7,042 23,828 21,593
Royalty and other 4,567 4,609 17,944 24,851
--------- --------- --------- -----------
203,896 307,648 842,818 1,067,722
--------- --------- --------- -----------
EXPENSES
Cost of goods sold 62,272 49,583 223,680 211,152
Research and development 29,274 28,399 118,117 95,479
Selling, general and
administrative 31,418 65,053 161,001 238,441
Amortization 12,107 11,984 48,049 56,457
Legal settlements, net of
insurance recoveries 93,052 14,400 95,114 14,400
Intangible asset impairments,
net of gain on disposal 9,910 - 9,910 143,000
Restructuring costs
(recovery) (44) 15,126 668 15,126
Contract costs (recovery) - 3,500 (1,735) 54,800
--------- --------- --------- -----------
237,989 188,045 654,804 828,855
--------- --------- --------- -----------
Operating income (loss) (34,093) 119,603 188,014 238,867
Interest income 4,943 10,310 24,563 29,199
Interest expense (370) (8,743) (9,745) (35,203)
Gain on disposal of
investments 8,640 - 24,356 -
Loss on impairment of
investments (8,949) - (8,949) -
Loss on early extinguishment
of debt - - (12,463) -
Foreign exchange gain (loss) (239) (1,838) 5,491 (2,360)
Equity loss (1,203) (56) (2,528) (529)
--------- --------- --------- -----------
Income (loss) from continuing
operations before provision
for income taxes (31,271) 119,276 208,739 229,974
Provision for income taxes 700 1,300 13,200 14,500
--------- --------- --------- -----------
Income (loss) from continuing
operations (31,971) 117,976 195,539 215,474
Loss from discontinued
operation - - - (3,848)
--------- --------- --------- -----------
Net income (loss) $(31,971) $117,976 $195,539 $211,626
========= ========= ========= ===========
Basic and diluted earnings
(loss) per share
Income (loss) from continuing
operations $(0.20) $0.74 $1.22 $1.35
Loss from discontinued
operation - - - (0.03)
--------- --------- --------- -----------
Net income (loss) $(0.20) $0.74 $1.22 $1.32
========= ========= ========= ===========
Weighted average number of
common shares outstanding
(000s)
Basic 161,024 160,265 160,839 160,060
========= ========= ========= ===========
Diluted 161,024 160,265 160,875 160,078
========= ========= ========= ===========
BIOVAIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(All dollar amounts are expressed in thousands of U.S. dollars)
(Unaudited)
At
December 31
---------------------
2007 2006
---------- ----------
ASSETS
Cash and cash equivalents $433,641 $834,540
Other current assets 273,376 223,084
Marketable securities 24,417 5,677
Long-term investments 24,834 56,442
Property, plant and equipment, net 238,457 211,979
Intangible assets, net 630,514 697,645
Goodwill 100,294 100,294
Deferred tax assets, net of valuation
allowance 20,700 -
Other long-term assets, net 35,882 62,781
---------- ----------
$1,782,115 $2,192,442
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $367,578 $410,287
Long-term obligations - 399,379
Other long-term liabilities 116,718 80,519
Shareholders' equity 1,297,819 1,302,257
---------- ----------
$1,782,115 $2,192,442
========== ==========
BIOVAIL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All dollar amounts are expressed in thousands of U.S. dollars)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
------------------- -------------------
2007 2006 2007 2006
--------- --------- --------- ---------
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income (loss) $(31,971) $117,976 $195,539 $211,626
Adjustments to reconcile net
income (loss) to net cash
provided by continuing
operating activities
Depreciation and amortization 27,504 21,737 94,985 92,150
Amortization and write-down of
deferred financing costs 130 531 4,821 2,300
Amortization and write-down of
discounts on long-term
obligations - 201 962 1,291
Accrued legal settlements, net
of insurance recoveries 93,052 14,400 78,652 14,400
Gains on disposal of
investments and intangible
assets (8,640) - (24,356) (4,000)
Impairment charges and asset
write-offs 21,468 4,140 21,468 151,140
Stock-based compensation 1,862 2,154 10,633 14,794
Accrued contract costs - 3,500 (9,735) 54,800
Premium paid on early
extinguishment of debt - - 7,854 -
Equity loss 1,203 56 2,528 529
Loss from discontinued
operation - - - 3,848
Other 2,762 (2) 5,578 2,083
Changes in operating assets and
liabilities (28,037) 70,944 (48,076) (22,444)
--------- --------- --------- ---------
Net cash provided by continuing
operating activities 79,333 235,637 340,853 522,517
Net cash provided by (used in)
continuing investing
activities 1,497 (7,076) (15,045) (40,447)
Net cash used in continuing
financing activities (60,438) (23,402) (728,650) (92,256)
Net cash used in discontinued
operation - - - (558)
Effect of exchange rate changes
on cash and cash equivalents 1,343 (119) 1,943 (5)
--------- --------- --------- ---------
Net increase (decrease) in cash
and cash equivalents 21,735 205,040 (400,899) 389,251
Cash and cash equivalents,
beginning of period 411,906 629,500 834,540 445,289
--------- --------- --------- ---------
Cash and cash equivalents, end
of period $433,641 $834,540 $433,641 $834,540
========= ========= ========= =========
CONTACT: Biovail Corporation
Nelson F. Isabel, 905-286-3000
Vice-President, Investor Relations
& Corporate Communications
SOURCE: Biovail Corporation
