LAKE FOREST, Ill., May 1, 2013 /PRNewswire/ -- Hospira, Inc.
(NYSE: HSP), the world's leading provider of injectable drugs and
infusion technologies, today reported results for the first quarter
ended March 31, 2013. Adjusted* net
sales for the quarter were $988
million and adjusted* diluted earnings per share were
$0.52. (Adjusted* measures exclude
certain specified items as described later in this press release
and the attached schedules.) On a U.S. Generally Accepted
Accounting Principles (GAAP) basis, net sales were $884 million and diluted loss per share was
$0.46.
"Hospira delivered adjusted first-quarter results in line with
our expectations," said F. Michael
Ball, chief executive officer. "We continued to advance our
quality-improvement efforts as well as position our business for
the future, including announcing our new device strategy,
progressing with our global expansion initiative, and launching new
premix versions of our proprietary sedation agent Precedex™ in
the United States. We believe our
efforts and investments are positioning Hospira to be even more
competitive longer term, driving greater value for our customers
and shareholders alike."
First-Quarter 2013 Results
The following table highlights selected financial results for
the first quarter of 2013 compared to the same period in 2012:
|
In $
millions,
except per
share
amounts
|
GAAP
Three
Months Ended March 31,
|
%
Change
|
Adjusted*
Three
Months Ended March 31,
|
%
Change
|
|
2013
|
2012
|
2013
|
2012
|
|
Net
Sales
|
$884.0
|
$965.9
|
(8.5)%
|
$988.3
|
$965.9
|
2.3%
|
|
Gross
Profit (Net Sales less
Cost of
Products Sold)
|
$150.1
|
$300.0
|
(50.0)%
|
$359.5
|
$357.5
|
0.6%
|
|
(Loss)
Income from
Operations
|
$(118.6)
|
$46.7
|
(354.0)%
|
$101.2
|
$104.2
|
(2.9)%
|
|
Diluted
(Loss) Earnings per Share
|
$(0.46)
|
$0.24
|
(291.7)%
|
$0.52
|
$0.47
|
10.6%
|
|
Statistics (as a % of Net Sales)
|
|
Gross
Profit (Net Sales less
Cost of
Products Sold)
|
17.0%
|
31.1%
|
|
36.4%
|
37.0%
|
|
|
(Loss)
Income from
Operations
|
(13.4)%
|
4.8%
|
|
10.2%
|
10.8%
|
|
Results under GAAP include items as detailed in the schedules
attached to this press release.
Adjusted* net sales (excluding the impact of customer sales
allowances associated with the company's device strategy) were
$988 million in the first quarter of
2013, an increase of 2.3 percent compared to the first quarter of
2012. Continued strong U.S. sales of Precedex™ and higher pricing
on certain Specialty Injectable Pharmaceuticals (SIP) products in
the U.S. drove the majority of the increase. These factors more
than offset pricing erosion of certain newer U.S. SIP products and
lower device sales as a result of an expanded import alert by the
U.S. Food and Drug Administration, announced on February 14, 2013. On a GAAP basis, net sales in
the quarter were $884 million and
include the impact of charges associated with the company's device
strategy, announced May 1, 2013.
Adjusted* income from operations decreased 2.9 percent to
$101 million in the first quarter of
2013, compared to $104 million in the
first quarter of 2012. The decline primarily reflects the impact of
costs associated with higher year-over-year manufacturing costs
related to quality initiatives and higher research and development
(R&D) spending. On a GAAP basis, loss from operations was
$119 million compared to income from
operations of $47 million in the
first quarter of 2012. The decrease was mainly due to the impact of
charges related to the company's new device strategy.
The effective tax rate on an adjusted basis* in the quarter was
1.0 percent compared to 19.0 percent in the first quarter of 2012.
The decrease is primarily due to a 2013 tax benefit related to the
retroactive reinstatement of the U.S. federal R&D tax credit
and other corporate provisions for 2012 and 2013. On a GAAP basis,
the first-quarter 2013 effective tax rate was a benefit of 41.6
percent compared to a benefit of 17.3 percent in the first quarter
of 2012. The benefit during both periods resulted from higher
quality- and device-related charges incurred in higher tax-rate
jurisdictions.
Cash Flow
Cash flow from operations for the first quarter of 2013 was
$21 million compared to $87 million in the first quarter of 2012. The
decrease is primarily due to lower income from operations in 2013
primarily related to investments in the company's
quality-improvement initiatives, as well as to higher inventory
levels and other payments.
Capital expenditures were $69
million for the first quarter of 2013, compared to
$67 million for the same period in
2012.
2013 Projections
For full-year 2013, Hospira expects the year-over-year change to
adjusted* net sales to be negative 1 percent to positive 1 percent.
On a GAAP basis, the year-over-year change to net sales is expected
to range between negative 4 percent and negative 2 percent, due to
the impact of customer sales allowances associated with the
company's device strategy. Foreign exchange is not expected to
impact net sales on an adjusted* or reported basis.
Adjusted* diluted earnings per share for 2013 are expected to be
in a range of $2.00 to $2.10,
representing flat to 5 percent growth. The reconciliation between
the projected 2013 adjusted* diluted earnings per share and
projected GAAP diluted earnings per share follows:
|
Diluted
earnings per share --
adjusted*
|
$2.00-
$2.10
|
|
|
|
Estimated
charges related to the company's device
|
|
|
strategy
(mid-point of an estimated range of
|
|
|
$0.91 to
$0.99 per diluted
share)
|
$(0.95)
|
|
|
|
Estimated
amortization of intangible assets related
to
|
|
|
certain
acquisitions (mid-point of an estimated
range
|
|
|
of $0.29
to $0.33 per diluted
share)
|
$(0.31)
|
|
|
|
Impairment
of certain
assets
|
$(0.01)
|
|
|
|
Estimated
charges for certain quality and product-related
|
|
|
matters
(mid-point of an estimated range
of
|
|
|
$0.33 to
$0.41 per diluted
share)
|
$(0.37)
|
|
|
|
Estimated
charges related to capacity
expansion
|
|
|
(mid-point
of an estimated range of $0.11 to
$0.13
|
|
|
per
diluted
share)
|
$(0.12)
|
|
|
|
Estimated
acquisition and integration-related charges
|
|
|
associated
with the pending acquisition of an
API-related
|
|
|
business
from Orchid Chemicals &
Pharmaceuticals
|
|
|
(mid-point
of an estimated range of $0.04 to
$0.06
|
|
|
per
diluted
share)
|
$(0.05)
|
|
|
|
Other
restructuring
charges
|
$(0.02)
|
|
|
|
Diluted
earnings per share --
GAAP
|
$0.17-
$0.27
|
The adjusting items are shown net of tax in aggregate of
$128 million, which is calculated for
the specified adjustments stated above, based on the statutory tax
rates in the various tax jurisdictions in which the items are
expected to occur.
The company projects that cash flow from operations in 2013 will
be between $200 million and $250
million. Depreciation and amortization is expected to be
between $255 million and $275
million, and capital expenditures are projected to range
between $425 million and $475
million.
*Use of Non-GAAP Financial Measures
Adjusted* measures used in this press release are reconciled to
the most comparable measures calculated in accordance with GAAP in
the schedules attached to this release. For more information
regarding these non-GAAP financial measures, please see Hospira's
Current Report on Form 8-K furnished to the Securities and Exchange
Commission on the date of this press release.
Webcast/Complementary Material
Hospira will hold a conference call for investors and media at
8 a.m. Central time on Wednesday, May 1, 2013. A live webcast of the
conference call will be available on Hospira's website at
www.hospirainvestor.com. Listeners should log on approximately 10
minutes in advance to ensure proper setup for receiving the
webcast. In addition, complementary information will be available
on the presentations page of the Investor Relations website at the
beginning of the conference call. A replay will be available on the
Hospira website for 30 days following the call.
About Hospira
Hospira, Inc. is the world's leading provider of injectable
drugs and infusion technologies. Through its broad, integrated
portfolio, Hospira is uniquely positioned to Advance Wellness™ by
improving patient and caregiver safety while reducing healthcare
costs. The company is headquartered in Lake Forest, Ill., and has approximately
16,000 employees. Learn more at www.hospira.com.
Private Securities Litigation Reform Act of 1995 --
A Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including projections of certain measures of Hospira's
results of operations; projections of certain charges, expenses,
and cash flow; and other statements regarding Hospira's goals,
plans and strategy. Hospira cautions that these forward-looking
statements are subject to risks and uncertainties, including
adequate and sustained progress on the company's quality
initiatives, continuous improvement activities and device
strategy, that may cause actual results to differ materially
from those indicated in the forward-looking statements. Economic,
competitive, governmental, regulatory, legal, technological,
manufacturing supply, quality and other factors that may affect
Hospira's operations and may cause actual results to be materially
different from expectations include the risks, uncertainties and
factors discussed under the headings "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in Hospira's latest Annual Report on Form
10-K and subsequent Forms 10-Q, filed with the Securities and
Exchange Commission, which are incorporated by reference. Hospira
undertakes no obligation to release publicly any revisions to
forward-looking statements as the result of subsequent events or
developments.
|
Hospira, Inc.
|
|
Condensed Consolidated Statements of (Loss)
Income
|
|
(Unaudited)
|
|
(dollars and shares in millions, except for per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31,
|
|
%
Change
|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
Net
sales
|
$
884.0
|
|
|
$
965.9
|
|
|
(8.5)%
|
|
|
|
|
|
|
|
|
|
Cost of
products sold
|
733.9
|
|
|
665.9
|
|
|
10.2
%
|
|
Restructuring and impairment
|
8.8
|
|
|
—
|
|
|
nm
|
|
Research
and development
|
73.8
|
|
|
69.1
|
|
|
6.8
%
|
|
Selling,
general and administrative
|
186.1
|
|
|
184.2
|
|
|
1.0
%
|
|
Total operating costs and
expenses
|
1,002.6
|
|
|
919.2
|
|
|
9.1
%
|
|
(Loss)
Income From Operations
|
(118.6)
|
|
|
46.7
|
|
|
(354.0)%
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
19.6
|
|
|
22.2
|
|
|
(11.7)%
|
|
Other
expense, net
|
2.3
|
|
|
1.4
|
|
|
64.3
%
|
|
(Loss)
Income Before Income Taxes
|
(140.5)
|
|
|
23.1
|
|
|
(708.2)%
|
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
(58.4)
|
|
|
(4.0)
|
|
|
nm
|
|
Equity
income from affiliates, net
|
(5.5)
|
|
|
(13.1)
|
|
|
(58.0)%
|
|
Net (Loss)
Income
|
$
(76.6)
|
|
|
$
40.2
|
|
|
(290.5)%
|
|
|
|
|
|
|
|
|
|
(Loss)
Earnings Per Common Share:
|
|
|
|
|
|
|
|
|
Basic
|
$
(0.46)
|
|
|
$
0.24
|
|
|
(291.7)%
|
|
Diluted
|
$
(0.46)
|
|
|
$
0.24
|
|
|
(291.7)%
|
|
|
|
|
|
|
|
|
|
Weighted
Average Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
165.3
|
|
|
164.6
|
|
|
0.4
%
|
|
Diluted
|
165.3
|
|
|
165.8
|
|
|
(0.3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Net Sales (1)(2)
|
$
988.3
|
|
|
$
965.9
|
|
|
2.3
%
|
|
Adjusted
Gross Profit (1)(3)
|
$
359.5
|
|
|
$
357.5
|
|
|
0.6
%
|
|
Adjusted
Income From Operations (1)
|
$
101.2
|
|
|
$
104.2
|
|
|
(2.9)%
|
|
Adjusted
Net Income (1)
|
$
86.1
|
|
|
$
78.4
|
|
|
9.8
%
|
|
Adjusted
Diluted Earnings Per Share (1)
|
$
0.52
|
|
|
$
0.47
|
|
|
10.6
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistics
(as a % of net sales, except for income tax rate):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Three
Months Ended March 31,
|
|
|
Adjusted(1) Three Months Ended March
31,
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Gross
Profit (3)
|
17.0
%
|
|
31.1
%
|
|
|
36.4
%
|
|
|
37.0
%
|
|
(Loss)
Income From Operations
|
(13.4)%
|
|
4.8
%
|
|
|
10.2
%
|
|
|
10.8
%
|
|
Net (Loss)
Income
|
(8.7)%
|
|
4.2
%
|
|
|
8.7
%
|
|
|
8.1
%
|
|
Income Tax
Rate
|
(41.6)%
|
|
(17.3)%
|
|
|
1.0
%
|
|
|
19.0
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted
financial measures exclude certain specified items as described and
reconciled to comparable GAAP financial measures in the
Reconciliation of GAAP to Non-GAAP Financial Measures contained in
this press release.
|
|
(2)
|
There were
no adjustments included in GAAP Net sales for the three months
ended March 31, 2012.
|
|
(3)
|
Gross
profit is defined as Net sales less Cost of products sold. Adjusted
gross profit excludes certain specified items, as indicated in the
previous footnote.
|
|
nm -
Percentage change is not meaningful.
|
|
Hospira, Inc.
|
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
|
(Unaudited)
|
|
(dollars in millions, except for per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended March 31, 2013 Reconciliation of GAAP to Non-GAAP
Financial Measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
Gross
Profit(1)
|
|
(Loss)
Income From
Operations
|
|
Net (Loss)
Income(2)
|
|
Diluted
EPS
|
|
GAAP
Financial Measures
|
|
$
884.0
|
|
$
150.1
|
|
$
(118.6)
|
|
$
(76.6)
|
|
$
(0.46)
|
|
Specified
Items:
|
|
|
|
|
|
|
|
|
|
|
|
Device strategy charges
(A)
|
|
104.3
|
|
176.8
|
|
181.5
|
|
134.3
|
|
0.81
|
|
Amortization of certain intangible assets
(B)
|
|
—
|
|
18.2
|
|
18.2
|
|
12.6
|
|
0.08
|
|
Impairment of certain assets
(C)
|
|
—
|
|
—
|
|
—
|
|
2.1
|
|
0.01
|
|
Certain quality and product
related charges (D)
|
|
—
|
|
10.7
|
|
10.7
|
|
7.4
|
|
0.04
|
|
Capacity expansion related
charges (E)
|
|
—
|
|
3.7
|
|
3.7
|
|
2.4
|
|
0.01
|
|
Acquisition and integration
related charges (F)
|
|
—
|
|
—
|
|
1.6
|
|
1.1
|
|
0.01
|
|
Other restructuring charges
(G)
|
|
—
|
|
—
|
|
4.1
|
|
2.8
|
|
0.02
|
|
Adjusted
financial measures (3)
|
|
$
988.3
|
|
$
359.5
|
|
$
101.2
|
|
$
86.1
|
|
$
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP results for the three months ended March
31, 2013 include:
|
|
(A)
|
Device
strategy charges: $104.3 million reported in Net sales, $72.5
million in Cost of product sold and $4.7 million in Restructuring
and impairment. These charges include device related customer sales
allowances, contract termination, collection and destruction costs,
inventory charges and other asset impairments associated with
Hospira's device strategy.
|
|
(B)
|
Amortization of certain intangible assets reported in
Cost of products sold resulting from acquisitions including Mayne
Pharma Limited ("Mayne Pharma") and a generic injectable business
by Hospira Healthcare India Private Limited ("Hospira
India").
|
|
(C)
|
Impairment
of certain assets: $2.1 million reported in Other expense, net,
related to a marketable equity investment.
|
|
(D)
|
Certain
quality and product related charges reported in Cost of products
sold primarily include third party oversight and consulting costs,
extended production downtime related costs, failure to supply
penalties, device product review and remediation costs to address
identified issues, and costs for corrective actions including
product recalls. These charges are primarily associated with
Hospira's response to the United States Food and Drug
Administration ("FDA") warning letters and charges related to
certain device related remediation activities.
|
|
(E)
|
Capacity
expansion related charges reported in Cost of products sold include
start-up charges related to manufacturing capacity expansion in
India.
|
|
(F)
|
Acquisition and integration related charges reported
in Selling, general, and administrative include costs for the
pending acquisition and integration of an active pharmaceutical
ingredient business.
|
|
(G)
|
Other
Restructuring Charges: $4.1 million reported in Restructuring and
impairment. These charges include severance charges associated with
Hospira's commercial reorganization.
|
|
|
|
|
|
|
|
Three
months ended March 31, 2012 Reconciliation of GAAP to Non-GAAP
Financial Measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit(1)
|
|
Income
From
Operations
|
|
Net
Income(2)
|
|
Diluted
EPS
|
|
GAAP
Financial Measures
|
|
|
|
$
300.0
|
|
$
46.7
|
|
$
40.2
|
|
$
0.24
|
|
Specified
Items:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of certain
intangible assets(A)
|
|
|
|
18.7
|
|
18.7
|
|
13.0
|
|
0.08
|
|
Certain quality and product
related charges
(B)
|
|
|
|
36.9
|
|
36.9
|
|
23.9
|
|
0.14
|
|
Capacity expansion
related charges (C)
|
|
|
|
1.9
|
|
1.9
|
|
1.3
|
|
0.01
|
|
Adjusted
financial measures (3)
|
|
|
|
$
357.5
|
|
$
104.2
|
|
$
78.4
|
|
$
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
results for the three months ended March 31, 2012
include:
|
|
(A)
|
Amortization of certain intangible assets reported in
Cost of products sold resulting from acquisitions including Mayne
Pharma, Javelin Pharmaceuticals, Inc. and a generic injectable
business by Hospira India.
|
|
(B)
|
Certain
quality and product related charges reported in Cost of products
sold primarily include third party oversight and consulting costs,
extended production downtime related costs, failure to supply
penalties, device product review and remediation costs to address
identified issues, and costs for corrective actions including
product recalls. These charges are directly associated with
Hospira's response to the FDA 2010 warning letter and subsequent
Form 483 observations and charges related to Hospira's
comprehensive device product review and certain device related
remediation activities.
|
|
(C)
|
Capacity
expansion related charges reported in Cost of products sold include
start-up charges related to manufacturing capacity expansion in
India.
|
|
|
|
|
|
(1)
|
Gross
profit is defined as Net sales less Cost of products
sold.
|
|
(2)
|
Adjusted
net income is shown net of tax of $59.2 million and $19.3 million
for the three months ended March 31, 2013 and 2012, respectively,
based on the statutory tax rates in the various tax jurisdictions
in which the items occurred.
|
|
(3)
|
The
Non-GAAP financial measures contained in this press release
(including adjusted net sales, adjusted gross profit, adjusted
income from operations, adjusted net income and adjusted diluted
Earnings Per Share) adjust for certain specified items. All
Non-GAAP financial measures are intended to supplement the
applicable GAAP measures and should not be considered in isolation
from, or a replacement for, financial measures prepared in
accordance with GAAP. Refer to Hospira's Form 8-K furnished
on May 1, 2013.
|
|
Hospira, Inc.
|
|
Condensed Consolidated Balance
Sheets
|
|
(Unaudited)
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash equivalents
|
$
726.8
|
|
$
772.1
|
|
Trade receivables, less allowances of
$13.2 in 2013 and $12.7 in 2012
|
617.5
|
|
646.9
|
|
Inventories, net
|
995.3
|
|
997.8
|
|
Deferred income taxes
|
181.7
|
|
214.4
|
|
Prepaid expenses
|
65.0
|
|
53.9
|
|
Other receivables
|
80.8
|
|
75.3
|
|
Total
Current Assets
|
2,667.1
|
|
2,760.4
|
|
Property
and equipment, net
|
1,450.5
|
|
1,445.1
|
|
Intangible
assets, net
|
251.5
|
|
266.8
|
|
Goodwill
|
1,080.6
|
|
1,079.1
|
|
Deferred
income taxes
|
376.0
|
|
296.8
|
|
Investments
|
76.1
|
|
71.8
|
|
Other
assets
|
166.7
|
|
168.6
|
|
Total
Assets
|
$
6,068.5
|
|
$
6,088.6
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Short-term borrowings
|
$
41.1
|
|
$
28.9
|
|
Trade accounts payable
|
258.4
|
|
276.0
|
|
Salaries, wages and
commissions
|
126.0
|
|
144.0
|
|
Other accrued liabilities
|
579.7
|
|
580.3
|
|
Total
Current Liabilities
|
1,005.2
|
|
1,029.2
|
|
Long-term
debt
|
1,704.5
|
|
1,706.8
|
|
Deferred
income taxes
|
3.1
|
|
4.4
|
|
Post-retirement obligations and other long-term
liabilities
|
372.5
|
|
306.5
|
|
Commitments and Contingencies
|
|
|
|
|
Total
Shareholders' Equity
|
2,983.2
|
|
3,041.7
|
|
Total
Liabilities and Shareholders' Equity
|
$
6,068.5
|
|
$
6,088.6
|
|
Hospira, Inc.
|
|
Condensed Consolidated Statements of Cash
Flows
|
|
(Unaudited)
|
|
(dollars in millions)
|
|
|
|
Three
Months Ended March 31,
|
|
Cash Flow
From Operating Activities:
|
2013
|
|
2012
|
|
Net
(loss) income
|
$
(76.6)
|
|
$
40.2
|
|
Adjustments to reconcile net (loss) income to net cash from
operating activities-
|
|
|
|
|
Depreciation
|
41.7
|
|
40.8
|
|
Amortization of intangible assets
|
21.9
|
|
21.3
|
|
Stock-based compensation expense
|
11.5
|
|
10.4
|
|
Undistributed equity income from
affiliates
|
(5.5)
|
|
(13.1)
|
|
Deferred
income taxes
|
(43.9)
|
|
(6.4)
|
|
Impairment
and other asset charges
|
55.5
|
|
1.6
|
|
Changes in assets and liabilities-
|
|
|
|
|
Trade
receivables
|
20.5
|
|
22.2
|
|
Inventories
|
(51.5)
|
|
(35.3)
|
|
Prepaid
expenses and other assets
|
(20.8)
|
|
(10.5)
|
|
Trade
accounts payable
|
(12.5)
|
|
(3.8)
|
|
Other
liabilities
|
75.8
|
|
18.9
|
|
Other, net
|
4.7
|
|
0.7
|
|
Net Cash
Provided by Operating Activities
|
20.8
|
|
87.0
|
|
|
|
|
|
Cash Flow
From Investing Activities:
|
|
|
|
|
Capital expenditures (including
instruments placed with or leased to customers)
|
(68.6)
|
|
(67.3)
|
|
Purchases of intangibles and other investments
|
(7.9)
|
|
(3.6)
|
|
Proceeds from disposition of businesses and assets
|
1.4
|
|
3.1
|
|
Net Cash
Used in Investing Activities
|
(75.1)
|
|
(67.8)
|
|
|
|
|
|
Cash Flow
From Financing Activities:
|
|
|
|
|
Other borrowings, net
|
11.2
|
|
27.5
|
|
Excess tax benefit from stock-based
compensation arrangements
|
0.2
|
|
1.7
|
|
Proceeds from stock options exercised
|
2.7
|
|
3.4
|
|
Net Cash
Provided by Financing Activities
|
14.1
|
|
32.6
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents
|
(5.1)
|
|
6.6
|
|
|
|
|
|
Net change
in cash and cash equivalents
|
(45.3)
|
|
58.4
|
|
Cash and
cash equivalents at beginning of period
|
772.1
|
|
597.5
|
|
Cash and
cash equivalents at end of period
|
$
726.8
|
|
$
655.9
|
|
|
|
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
Cash paid
(received) during the period-
|
|
|
|
|
Interest
|
$
14.4
|
|
$
31.1
|
|
Income
taxes, net of refunds
|
$
6.1
|
|
$
(8.4)
|
|
Hospira, Inc.
|
|
Net
Sales by Product Line
|
|
(Unaudited)
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31,
|
|
|
|
|
|
|
|
|
Reported
|
|
Adjusted(1)(3)
|
|
|
GAAP Net
Sales
2013
|
|
Adjusted
Net Sales
2013(1)(3)
|
|
GAAP Net
Sales
2012
|
|
% Change
at
Actual Currency
Rates
|
|
% Change
at
Constant Currency
Rates(2)
|
|
% Change
at
Actual Currency
Rates
|
|
% Change
at
Constant Currency
Rates(2)
|
|
Americas—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
Injectable Pharmaceuticals
|
$
511.0
|
|
$
511.0
|
|
$
457.7
|
|
11.6
%
|
|
11.9
%
|
|
11.6
%
|
|
11.9
%
|
|
Medication
Management
|
98.8
|
|
187.2
|
|
213.2
|
|
(53.7)%
|
|
(53.4)%
|
|
(12.2)%
|
|
(12.0)%
|
|
Other
Pharma
|
88.6
|
|
88.6
|
|
99.4
|
|
(10.9)%
|
|
(10.8)%
|
|
(10.9)%
|
|
(10.8)%
|
|
Total
Americas
|
698.4
|
|
786.8
|
|
770.3
|
|
(9.3)%
|
|
(9.1)%
|
|
2.1
%
|
|
2.4
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe,
Middle East & Africa ("EMEA")—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
Injectable Pharmaceuticals
|
82.3
|
|
82.3
|
|
76.2
|
|
8.0
%
|
|
7.0
%
|
|
8.0
%
|
|
7.0
%
|
|
Medication
Management
|
18.3
|
|
31.5
|
|
30.8
|
|
(40.6)%
|
|
(41.6)%
|
|
2.3
%
|
|
1.3
%
|
|
Other
Pharma
|
16.5
|
|
16.5
|
|
20.9
|
|
(21.1)%
|
|
(20.6)%
|
|
(21.1)%
|
|
(20.6)%
|
|
Total
EMEA
|
117.1
|
|
130.3
|
|
127.9
|
|
(8.4)%
|
|
(9.1)%
|
|
1.9
%
|
|
1.2
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific ("APAC")—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
Injectable Pharmaceuticals
|
58.2
|
|
58.2
|
|
52.5
|
|
10.9
%
|
|
12.6
%
|
|
10.9
%
|
|
12.6
%
|
|
Medication
Management
|
7.4
|
|
10.1
|
|
12.2
|
|
(39.3)%
|
|
(39.3)%
|
|
(17.2)%
|
|
(17.2)%
|
|
Other
Pharma
|
2.9
|
|
2.9
|
|
3.0
|
|
(3.3)%
|
|
(3.3)%
|
|
(3.3)%
|
|
(3.3)%
|
|
Total
APAC
|
68.5
|
|
71.2
|
|
67.7
|
|
1.2
%
|
|
2.5
%
|
|
5.2
%
|
|
6.5
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
884.0
|
|
$
988.3
|
|
$
965.9
|
|
(8.5)%
|
|
(8.3)%
|
|
2.3
%
|
|
2.5
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
Injectable Pharmaceuticals
|
$
651.5
|
|
$
651.5
|
|
$
586.4
|
|
11.1
%
|
|
11.4
%
|
|
11.1
%
|
|
11.4
%
|
|
Medication
Management
|
124.5
|
|
228.8
|
|
256.2
|
|
(51.4)%
|
|
(51.3)%
|
|
(10.7)%
|
|
(10.6)%
|
|
Other
Pharma
|
108.0
|
|
108.0
|
|
123.3
|
|
(12.4)%
|
|
(12.2)%
|
|
(12.4)%
|
|
(12.2)%
|
|
Net
Sales
|
$
884.0
|
|
$
988.3
|
|
$
965.9
|
|
(8.5)%
|
|
(8.3)%
|
|
2.3
%
|
|
2.5
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted
Net sales for the three months ended March 31, 2013 excludes
charges of $104.3 million related to the device strategy. The
device strategy charges are reported in the respective Medication
Management Net sales by product line as follows: Americas-$88.4
million, EMEA-$13.2 million and APAC-$2.7 million. There were no
adjustments included in GAAP Net sales for the three months ended
March 31, 2012.
|
|
(2)
|
The
Non-GAAP financial measures contained in this press release include
comparisons at constant currency rates, which reflect comparative
local currency balances at prior period foreign exchange rates.
Hospira calculated these percentages by taking current period
reported net sales less the respective prior period reported net
sales, divided by the prior period reported net sales, all at the
respective prior period's foreign exchange rates. This measure
provides information on the change in net sales assuming that
foreign currency exchange rates have not changed between the prior
and the current period. Management believes the use of this measure
aids in the understanding of our change in net sales without the
impact of foreign currency and provides greater transparency into
Hospira's results of operations.
|
|
(3)
|
Adjusted
financial measures exclude certain specified items as described and
reconciled to comparable GAAP financial measures in the
Reconciliation of GAAP to Non-GAAP Financial Measures contained in
this press release.
|
SOURCE Hospira, Inc.