Kensey Nash Acquires Assets of Synthes' Norian Subsidiary
Kensey Nash Corporation
Adjusted Earnings Per Share Reconciliation
Fiscal Year Ending
Fiscal Year Ending
Year over Year
June 30, 2011
June 30, 2012
Diluted Earnings Per Share - GAAP (a)
Acquired In-Process Research & Development (b)
Adjusted Diluted Earnings Per Share
(a) Diluted Earnings Per Share for the fiscal years ended June 30, 2011 and 2012 excludes the impact of any related step-up in inventory values required under acquisition accounting.
(b) Diluted Earnings Per Share for the fiscal year ended June 30, 2011 included acquired in-process research and development (IPR&D) pre-tax charges of approximately $18.2 million ($11.8 million net of tax), or $1.32 diluted per share tax-effected. This acquired IPR&D charge was incurred in connection with the acquisition of the net assets of Nerites Corporation, a developer of medical adhesives and anti-fouling coatings during the third quarter of fiscal 2011.
Note: To supplement our consolidated financial statements presented in accordance with GAAP, Kensey Nash Corporation uses non-GAAP measures, such as Adjusted Diluted Earnings Per Share. Adjusted Diluted Earnings Per Share is adjusted from our GAAP results to exclude certain expenses described above. This non-GAAP measure was provided to enhance the user's overall understanding of our historical and current financial performance. We believe the non-GAAP results provide useful information to both management and investors by excluding certain non-operating items, non-cash expenses and expenses that we believe are not indicative of our core operating results.
This non-GAAP measure provides investors and management with an alternative method for assessing Kensey Nash’s operating results. Further, this non-GAAP measure is one of several primary indicators management uses for planning and forecasting. The presentation of this additional information should not be considered in isolation of, or as a substitute for, results prepared in accordance with GAAP.