Company Reiterates 2009 Earnings Guidance and Introduces Q1 2009 Guidance
FRAZER, Pa., Feb. 12 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) today reported 2008 sales of $1.943 billion, compared to sales of $1.727 billion for 2007, exceeding the company's previously issued guidance. Basic income per common share for the full year 2008 was $3.27. Excluding amortization expense and certain other items, basic adjusted income per common share for the full year was $5.39, compared to $4.60 for 2007 and exceeds the high end of the company's earnings guidance range of $5.20 to $5.30.
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Central nervous system (CNS) franchise sales for 2008 increased 15 percent compared to 2007 to $1.049 billion. Pain franchise sales declined to $501.2 million from $512.6 million in 2007 due primarily to generic competition for ACTIQ(R) (oral transmucosal fentanyl citrate) [C-II]. AMRIX(R) (cyclobenzaprine hydrochloride extended-release capsules) sales continued to ramp up with an increase of 28 percent over the third quarter of 2008. Oncology sales were $185.6 million, an increase of 100 percent over 2007 driven by the launch of TREANDA(R) (bendamustine hydrochloride) for Injection. Sales of other products were $207.6 million compared to $212.4 million for 2007.
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"The growth of AMRIX and the launch of TREANDA helped 2008 sales achieve a new record for the company," said Frank Baldino, Jr., Ph.D., Chairman and CEO. "As pleased as I am with our performance in 2008, I am even more excited about our new opportunities in the field of inflammatory diseases. Recently we announced a number of deals including the worldwide license for the drug candidate LUPUZORTM, for the treatment of systemic lupus erythematosus and the option to acquire Ception Therapeutics including its drug candidate reslizumab for eosinophilic esophagitis. Our ability to move quickly when opportunities present themselves coupled with our internal pipeline positions Cephalon favorably for future growth."
The company is reiterating its guidance for 2009 total sales of $2.175 - $2.225 billion, adjusted net income of $452 - $459 million and its basic adjusted income per common share guidance of $6.50 - $6.60.
Cephalon is introducing first quarter 2009 sales guidance of $510 - $530 million, adjusted net income guidance of $89.7 - $96.6 million and basic adjusted income per common share guidance of $1.30 - $1.40.
Basic adjusted income per common share guidance for both the first quarter 2009 and full-year 2009 is reconciled below and is subject to the assumptions set forth therein.
Cephalon's management will discuss the company's fourth quarter and full year 2008 performance in a conference call with investors beginning at 5:00 p.m. U.S. EST on Thursday, February 12, 2009. To participate in the conference call, dial +1-913-661-9178 and refer to conference code number 9540364. Investors can listen to the call live by logging on to the company's website at www.cephalon.com and clicking on "Investor Information," then "Webcast." The conference call will be archived and available to investors for one week after the call.
About Cephalon, Inc.
Founded in 1987, Cephalon, Inc. is an international biopharmaceutical company dedicated to the discovery, development and commercialization of many unique products in three core therapeutic areas: central nervous system, pain, and oncology. A member of the Fortune 1000 and the S&P 500 Index, Cephalon currently employs approximately 3,000 people in the United States and Europe. U.S. sites include the company's headquarters in Frazer, Pennsylvania, and offices, laboratories or manufacturing facilities in West Chester, Pennsylvania, Salt Lake City, Utah, and suburban Minneapolis, Minnesota. The company's European headquarters are located in Maisons-Alfort, France.
The company's proprietary products in the United States include: AMRIX, TREANDA, FENTORA(R) (fentanyl buccal tablet) [C-II], PROVIGIL(R) (modafinil) Tablets [C-IV], TRISENOX(R) (arsenic trioxide) injection, GABITRIL(R) (tiagabine hydrochloride), NUVIGIL(R) (armodafinil) Tablets [C-IV] and ACTIQ. The company also markets numerous products internationally. Full prescribing information on its U.S. products is available at http://www.cephalon.com or by calling 1-800-896-5855.
In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. Forward-looking statements provide Cephalon's current expectations or forecasts of future events. These may include statements regarding our opportunities in the field of inflammatory disease, current or potential drivers for our future growth, anticipated scientific progress on its research programs, development of potential pharmaceutical products, interpretation of clinical results, prospects for regulatory approval, manufacturing development and capabilities, market prospects for its products, sales and earnings guidance, and other statements regarding matters that are not historical facts. You may identify some of these forward-looking statements by the use of words in the statements such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" or other words and terms of similar meaning. Cephalon's performance and financial results could differ materially from those reflected in these forward-looking statements due to general financial, economic, regulatory and political conditions affecting the biotechnology and pharmaceutical industries as well as more specific risks and uncertainties facing Cephalon such as those set forth in its reports on Form 8-K, 10-Q and 10-K filed with the U.S. Securities and Exchange Commission. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements. Furthermore, Cephalon does not intend to update publicly any forward-looking statement, except as required by law. The Private Securities Litigation Reform Act of 1995 permits this discussion.
This press release and/or the financial results attached to this press release include "Adjusted Net Income," "Basic Adjusted Income per Common Share," "Adjusted Net Income Guidance," "Basic Adjusted Income per Common Share Guidance," and "Diluted Adjusted Income Per Common Share," amounts that are considered "non-GAAP financial measures" under SEC rules. As required, we have provided reconciliations of these measures. Additional required information is located in the Form 8-K furnished to the SEC in connection with this press release.
CEPHALON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended Year Ended December 31, December 31, ------------ ------------ As As adjusted adjusted 2008(a,b) 2007(b) 2008(a,b) 2007(b) -------- --------- -------- --------- REVENUES: Sales $534,861 $439,497 $1,943,464 $1,727,299 Other revenues 5,277 10,474 31,090 45,339 ----- ------ ------ ------ 540,138 449,971 1,974,554 1,772,638 ------- ------- --------- --------- COSTS AND EXPENSES: Cost of sales 99,523 93,721 412,234 345,691 Research and development 112,039 95,037 362,208 369,115 Selling, general and administrative 209,041 207,837 840,873 735,799 Settlement reserve - - 7,450 425,000 Restructuring charge 1,442 - 8,415 - Impairment charge 99,719 - 99,719 - Acquired in-process research and development 31,955 - 41,955 - Loss on sale of equipment 17,178 - 17,178 1,022 ------ - ------ ----- 570,897 396,595 1,790,032 1,876,627 ------- ------- --------- --------- INCOME (LOSS) FROM OPERATIONS (30,759) 53,376 184,522 (103,989) ------- ------ ------- -------- OTHER INCOME (EXPENSE): Interest income 1,386 9,331 16,901 32,816 Interest expense (2,796) (4,561) (28,493) (19,833) Gain on extinguishment of debt - - - 5,319 Gain on sale of investment - - - 5,791 Other income (expense), net 6,392 2,884 7,880 7,653 ----- ----- ----- ----- 4,982 7,654 (3,712) 31,746 ----- ----- ------ ------ INCOME (LOSS) BEFORE INCOME TAXES AND MINORITY INTEREST (25,777) 61,030 180,810 (72,243) INCOME TAX EXPENSE (BENEFIT) (16,290) 19,269 (20,665) 121,882 ------- ------ ------- ------- NET INCOME (LOSS) BEFORE MINORITY INTEREST (9,487) 41,761 201,475 (194,125) NET LOSS ATTRIBUTABLE TO MINORITY INTEREST 21,073 - 21,073 - ------ -- ------ -- NET INCOME (LOSS) $11,586 $41,761 $222,548 $(194,125) ======= ======= ======== ========= BASIC INCOME (LOSS) PER COMMON SHARE $0.17 $0.62 $3.27 $(2.91) ===== ===== ===== ====== DILUTED INCOME (LOSS) PER COMMON SHARE $0.15 $0.53 $2.92 $(2.91) ===== ===== ===== ====== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 68,505 67,187 68,018 66,597 ====== ====== ====== ====== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING- ASSUMING DILUTION 77,823 78,734 76,097 66,597 ====== ====== ====== ====== a) We have included the operating results for Acusphere in our consolidated statements of operations beginning on November 3, 2008 because Acusphere is considered a variable interest entity to which we are the primary beneficiary. However, we do not have an equity interest in Acusphere and, therefore, we have allocated the losses attributable to the minority interest in Acusphere to minority interest. For 2008, the losses allocated to the minority interest have been limited to the value of the minority interest recorded as of November 3, 2008 but will not be limited starting January 1, 2009. For the year ended December 31, 2008, a total of $21.1 million of net losses were allocated to the minority interest and $11.7 million of net losses exceeded the minority interest value. b) Effective October 1, 2008, we changed our method of accounting for inventories previously valued using the last-in, first-out (LIFO) method to the first-in, first-out (FIFO) method and adjusted our results for all of the periods presented. CEPHALON, INC. AND SUBSIDIARIES Reconciliation of GAAP Net Income to Adjusted Net Income (In thousands, except per share data) (Unaudited) Three Months Ended December 31, ------------- As adjusted 2008 2007* ---- ----------- GAAP NET INCOME $11,586 $41,761 ------- ------- Cost of sales adjustments 27,804 (1) 26,306 (1) Research and development adjustments 255 (2) 2,000 (2) Selling, general and administrative adjustments 13,215 (3) 11,191 (3) Restructuring charges 1,442 (4) - Acquired in-process research and development 31,955 (5) - Impairment charges 99,719 (6) - Minority interest (14,567)(7) - Loss on sale of equipment 17,178 (8) - Income taxes (74,918)(9) (18,149)(9) ------- ------- 102,083 21,348 ADJUSTED NET INCOME $113,669 $63,109 ======== ======= BASIC ADJUSTED INCOME PER COMMON SHARE $1.66 $0.94 ===== ===== DILUTED ADJUSTED INCOME PER COMMON SHARE $1.46 $0.80 ===== ===== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 68,505 67,187 ====== ====== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-ASSUMING DILUTION 77,823 78,734 ====== ====== * As adjusted for the retrospective application of a change in accounting method for inventory from LIFO to FIFO. Notes to Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (1) To exclude the on-going amortization of acquired intangible assets ($23.7 million in 2008; $26.3 million in 2007), accelerated depreciation related to the CIMA LABS restructuring ($1.6 million in 2008), and accelerated depreciation related to the proposed divestiture at the Mitry-Mory facility ($2.5 million in 2008). (2) To exclude charges related to payments for research and development collaborations ($2.0 million in 2007) and accelerated depreciation related to the proposed divestiture at the Mitry-Mory facility ($0.2 million in 2008). (3) To exclude charges related to certain employee severance costs ($7.2 million in 2007), charges related to the termination payments due to Takeda Pharmaceuticals North America, Inc. ($1.0 million in 2008), charges related to the termination payment due to Alkermes ($11.0 million in 2008) and related severance ($1.2 million in 2008), and a significant one-time charitable contribution ($4.0 million in 2007). (4) To exclude costs related to the CIMA LABS restructuring announced in January 2008. (5)To exclude charges related to the acquisition of licensed technology from Acusphere ($17.0 million) and license rights to LUPUZOR from ImmuPharma PLC ($15.0 million). (6) To exclude the impairment of the VIVITROL intangible assets ($90.4 million) and charges related to the impairment of Acusphere fixed assets ($9.3 million). (7) To exclude the portion of non-cash charges related to our agreement with Acusphere that are reflected in adjustments (5) and (6) above but do not affect net income because they are attributed to minority interests. (8) To exclude the loss on sale of equipment related to the VIVITROL termination. (9) To reflect the tax effect of pre-tax adjustments at the applicable tax rates and certain other tax adjustments primarily related to changes in valuation allowances and other changes in tax assets and liabilities. CEPHALON, INC. AND SUBSIDIARIES Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (In thousands, except per share data) (Unaudited) Year Ended December 31 ----------- As adjusted 2008 2007* ---- ------------- GAAP NET INCOME (LOSS) $222,548 $(194,125) ======== ========= Cost of sales adjustments 139,153 (1) 90,542 (1) Research and development adjustments 8,268 (2) 43,500 (2) Selling, general and administrative adjustments 43,339 (3) 11,191 (3) Settlement reserve 7,450 (4) 425,000 (4) Gain on sale of investment - (5) (5,791)(5) Gain on extinguishment of debt - (6) (5,319)(6) Interest expense adjustment 11,250 (7) - Restructuring expense 8,415 (8) - Acquired in-process research and development 41,955 (9) - Impairment charge 99,719 (10) - Minority interest (14,567)(11) - Loss on sale of equipment 17,178 (12) - Income taxes (218,080)(13) (58,608)(13) -------- ------- 144,080 500,515 ADJUSTED NET INCOME $366,628 $306,390 ======== ======== BASIC ADJUSTED INCOME PER COMMON SHARE $5.39 $4.60 ===== ===== DILUTED ADJUSTED INCOME PER COMMON SHARE $4.82 $3.89 ===== ===== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 68,018 66,597 ====== ====== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-ASSUMING DILUTION 76,097 78,684 ====== ====== * As adjusted for the retrospective application of a change in accounting method for inventory from LIFO to FIFO. Notes to Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (1) To exclude the on-going amortization of acquired intangible assets ($100.7 million in 2008; $90.5 million in 2007), accelerated depreciation related to the CIMA LABS restructuring ($7.0 million in 2008), accelerated depreciation related to the proposed divestiture at the Mitry-Mory facility ($5.4 million in 2008), and the write-off of purchase commitments in excess of estimated requirements ($26.0 million in 2008). (2) To exclude charges related to payments for research and development collaborations ($6.0 million in 2008; $28.5 million in 2007), other charges related to employee severance costs ($1.8 million in 2008), and accelerated depreciation related to the proposed divestiture at the Mitry-Mory facility ($0.5 million in 2008). In 2007, we also excluded the recognition of a milestone ($15.0 million) related to the FDA's acceptance of our NDA filing for TREANDA. (3) To exclude charges related to certain employee severance costs ($3.0 million in 2008; $7.2 million in 2007), charges related to the termination payments due to Takeda Pharmaceuticals North America, Inc. ($28.2 million in 2008), charges related to the termination payment due to Alkermes ($11.0 million in 2008) and related severance ($1.2 million in 2008), and a significant one-time charitable contribution ($4.0 million in 2007). (4) In 2008, to exclude charges related to the settlement of investigations by the Offices of the Attorney General of Connecticut and Massachusetts and relator attorney fees. In 2007, to exclude the reserve related to the terms of the agreement in principle reached with the U.S. Attorney's Office. (5) To exclude the pre-tax gain related to the sale of certain investments. (6) To exclude the forgiveness of a mortgage loan by the Pennsylvania Industrial Development Board. (7) To exclude the accrued interest related to the settlement reached with the U.S. Attorney's Office. (8) To exclude costs related to the CIMA LABS restructuring announced in January 2008. (9) To exclude charges related to the acquisition of licensed technology from Acusphere ($27.0 million) and license rights to LUPUZOR from ImmuPharma PLC ($15.0 million). (10) To exclude the impairment of the VIVITROL intangible assets ($90.4 million) and charges related to the impairment of Acusphere fixed assets ($9.3 million). (11) To exclude the portion of non-cash charges related to our agreement with Acusphere that are reflected in adjustments (9) and (10) above but do not affect net income because they are attributed to minority interests. (12) To exclude the loss on sale of equipment related to the VIVITROL termination. (13) To reflect the tax effect of pre-tax adjustments at the applicable tax rates and certain other tax adjustments primarily related to changes in valuation allowances, the settlement of the investigations by the U.S. Attorney's Office and other changes in tax assets and liabilities. The 2008 amount includes $82.3 million of tax benefits for the settlement with the U.S. Attorney's Office, for which the related expense was recorded in 2007. CEPHALON, INC. AND SUBSIDIARIES CONSOLIDATED SALES DETAIL (In thousands) (Unaudited) Three Months Ended December 31 ----------- 2008 2007 ----------------------- ------------------------- United United States Europe Total States Europe Total ------ ------ ----- ------ ------ ----- Sales: PROVIGIL $266,209 $15,004 $281,213 $208,245 $11,237 $219,482 GABITRIL 14,827 1,587 16,414 10,828 400 11,228 ------ ----- ------ ------ --- ------ CNS 281,036 16,591 297,627 219,073 11,637 230,710 ACTIQ 26,020 12,807 38,827 42,310 12,027 54,337 Generic OTFC 19,915 - 19,915 31,471 - 31,471 FENTORA 38,609 - 38,609 33,912 - 33,912 AMRIX 26,242 - 26,242 8,401 - 8,401 ------ - ------ ----- - ----- Pain 110,786 12,807 123,593 116,094 12,027 128,121 TREANDA 36,200 - 36,200 - - - Other Oncology 4,307 21,082 25,389 3,517 19,671 23,188 ----- ------ ------ ----- ------ ------ Oncology 40,507 21,082 61,589 3,517 19,671 23,188 Other 11,672 40,380 52,052 11,879 45,599 57,478 ------ ------ ------ ------ ------ ------ $444,001 $90,860 $534,861 $350,563 $88,934 $439,497 ======== ======= ======== ======== ======= ======== % Increase (Decrease) ---------- United States Europe Total ------- ------ ----- Sales: PROVIGIL 28 34 28 GABITRIL 37 297 46 CNS 28 43 29 ACTIQ (39) 6 (29) Generic OTFC (37) - (37) FENTORA 14 - 14 AMRIX 212 - 212 Pain (5) 6 (4) TREANDA - - - Other Oncology 22 7 9 Oncology 1052 7 166 Other (2) (11) (9) 27 2 22 Year Ended December 31 ------------------------ 2008 2007 ------------------------ --------------------------- United United States Europe Total States Europe Total ------ ------ ----- ------ ------ ----- Sales: PROVIGIL $924,986 $63,432 $988,418 $801,639 $50,408 $852,047 GABITRIL 52,441 8,256 60,697 50,642 6,668 57,310 ------ ----- ------ ------ ----- ------ CNS 977,427 71,688 1,049,115 852,281 57,076 909,357 ACTIQ 122,980 53,541 176,521 199,407 40,665 240,072 Generic OTFC 95,760 - 95,760 129,033 - 129,033 FENTORA 155,246 - 155,246 135,136 - 135,136 AMRIX 73,641 - 73,641 8,401 - 8,401 ------ - ------ ----- - ----- Pain 447,627 53,541 501,168 471,977 40,665 512,642 TREANDA 75,132 - 75,132 - - - Other Oncology 18,566 91,919 110,485 16,561 76,316 92,877 ------ ------ ------- ------ ------ ------ Oncology 93,698 91,919 185,617 16,561 76,316 92,877 Other 49,667 157,897 207,564 52,702 159,721 212,423 ------ ------- ------- ------ ------- ------- $1,568,419 $375,045 $1,943,464 $1,393,521 $333,778 $1,727,299 ========== ======== ========== ========== ======== ========== % Increase (Decrease) ---------- United States Europe Total ------- ------ ----- Sales: PROVIGIL 15 26 16 GABITRIL 4 24 6 CNS 15 26 15 ACTIQ (38) 32 (26) Generic OTFC (26) - (26) FENTORA 15 - 15 AMRIX 777 - 777 Pain (5) 32 (2) TREANDA - - - Other Oncology 12 20 19 Oncology 466 20 100 Other (6) (1) (2) 13 12 13 CEPHALON, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) As adjusted December 31, December 31, 2008 2007* ---- ---- CURRENT ASSETS: Cash and cash equivalents $524,459 $818,669 Investments - 7,596 Receivables, net 409,580 276,776 Inventory, net 117,297 98,996 Deferred tax assets, net 224,066 182,268 Other current assets 54,120 43,267 ------ ------ Total current assets 1,329,522 1,427,572 PROPERTY AND EQUIPMENT, net 467,449 500,396 GOODWILL 445,332 476,515 INTANGIBLE ASSETS, net 607,332 817,828 DEFERRED TAX ASSETS, net 142,775 141,752 OTHER ASSETS 176,778 132,463 ------- ------- $3,169,188 $3,496,526 ========== ========== CURRENT LIABILITIES: Current portion of long-term debt $1,030,021 $1,237,169 Accounts payable 87,079 91,437 Accrued expenses 304,415 677,184 ------- ------- Total current liabilities 1,421,515 2,005,790 LONG-TERM DEBT 3,692 3,788 DEFERRED TAX LIABILITIES, net 77,932 56,540 OTHER LIABILITIES 163,123 138,084 ------- ------- Total liabilities 1,666,262 2,204,202 --------- --------- MINORITY INTEREST - - -- -- STOCKHOLDERS' EQUITY: Common stock, $0.01 par value 717 700 Additional paid-in capital 2,071,607 1,934,965 Treasury stock, at cost (201,705) (158,173) Accumulated deficit (411,323) (633,871) Accumulated other comprehensive income 43,630 148,703 ------ ------- Total stockholders' equity 1,502,926 1,292,324 --------- --------- $3,169,188 $3,496,526 ========== ========== * As adjusted for the retrospective application of a change in accounting method for inventory from LIFO to FIFO. CEPHALON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Year Ended December 31, As adjusted 2008 2007* ---- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $222,548 $(194,125) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred income tax benefit (50,889) (2,361) Shortfall tax benefits from stock- based compensation (511) (360) Depreciation and amortization 172,457 141,358 Stock-based compensation expense 43,975 46,695 Gain on forgiveness of debt - (5,319) Gain on sale of investment - (5,791) Loss on sales of property and equipment 17,178 1,022 Impairment charges 99,719 - Acquired in-process research and development 16,955 - Minority interest in variable interest entity (21,073) - Changes in operating assets and liabilities: Receivables (144,975) (601) Inventory (37,397) (2,328) Other assets 11,792 (54,838) Accounts payable and accrued expenses (376,232) 385,463 Other liabilities 44,576 76,041 ------ ------ Net cash provided by (used for) operating activities (1,877) 384,856 ------ ------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (75,871) (96,867) Proceeds from sale of property and equipment 16,000 - Investment in third party (31,692) - Cash balance from consolidation of variable interest entity 1,654 - Acquisition of intangible assets (25,825) (107,246) Proceeds from sale of investment - 12,291 Sales and maturities of available- for-sale investments 7,596 99,131 Purchases of available-for-sale investments - (80,255) - ------- Net cash used for investing activities (108,138) (172,946) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercises of common stock options 43,962 93,900 Windfall tax benefits from stock-based compensation 7,834 13,993 Acquisition of treasury stock (6,947) (7,105) Payments on and retirements of long- term debt (217,743) (3,853) -------- ------ Net cash (used for) provided by financing activities (172,894) 96,935 -------- ------ EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (11,301) 13,312 ------- ------ NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (294,210) 322,157 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 818,669 496,512 ------- ------- CASH AND CASH EQUIVALENTS, END OF PERIOD $524,459 $818,669 ======== ======== * As adjusted for the retrospective application of a change in accounting method for inventory from LIFO to FIFO. CEPHALON, INC. AND SUBSIDIARIES Reconciliation of Projected GAAP Basic Income per Common Share to Basic Adjusted Income Per Common Share Guidance (Unaudited) Three Months Twelve Months Ended Ended March 31, 2009 December 31, 2009 -------------- ----------------- Projected GAAP basic income per common share $0.93 - $1.03 $5.02 - $5.12 ===== ===== ===== ===== Amortization of current intangibles $0.31 - $0.31 $1.23 - $1.23 Accelerated depreciation adjustment- CIMA $0.02 - $0.02 $0.09 - $0.09 Accelerated depreciation adjustment- Mitry-Mory $0.06 - $0.06 $0.22 - $0.22 Restructuring adjustments $0.02 - $0.02 $0.07 - $0.07 Interest expense adjustment for APB 14-1 $0.16 - $0.16 $0.67 - $0.67 Tax effect of pre-tax adjustments at the applicable tax rates $(0.20) - $(0.20) $(0.80) - $(0.80) ------ ------ ------ ------ Basic adjusted income per common share guidance $1.30 - $1.40 $6.50 - $6.60 ===== ===== ===== ===== The company's guidance is being issued based on certain assumptions including: -- Adjusted effective tax rate of approximately 35.0 percent in 2009; and -- Weighted average number of common shares outstanding of 69.0 and 69.5 million shares for the three months ended March 31, 2009 and the twelve months ended December 31, 2009, respectively.
SOURCE Cephalon, Inc.
