LAKE FOREST, Ill., Feb. 12, 2014 /PRNewswire/ -- Hospira, Inc.
(NYSE: HSP), the world's leading provider of injectable drugs and
infusion technologies, today reported results for the fourth
quarter and full year ended Dec. 31,
2013. For the fourth quarter of 2013, net sales were
$1.1 billion, and adjusted* diluted
earnings per share were $0.51.
(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,
fourth-quarter 2013 diluted earnings per share were $0.20. For full-year 2013, adjusted* net sales
were $4.1 billion, and adjusted*
diluted earnings per share were $2.09. On a GAAP basis, full-year 2013 net sales
were $4.0 billion, with a diluted
loss per share of $(0.05).
"In 2013, Hospira made significant progress advancing the
company's dual priorities of reinforcing our foundation and
turbocharging growth, while also achieving solid financial
performance, delivering adjusted* earnings per share at the higher
end of our projections," said F. Michael
Ball, chief executive officer. "We believe our
quality-improvement efforts and growth initiatives are positioning
Hospira for a stronger, more competitive future, driving
sustainable growth and value to our shareholders."
Fourth-Quarter 2013 Results
The following table highlights selected financial results for
the fourth quarter of 2013 compared to the same period in 2012:
In $
millions,
except per share
amounts
|
GAAP
Three Months Ended
Dec. 31,
|
%
Change
|
Adjusted*
Three Months Ended
Dec. 31,
|
%
Change
|
|
2013
|
2012
|
2013
|
2012
|
Net Sales
|
$1,084.4
|
$1,098.9
|
(1.3)%
|
n/a
|
n/a
|
n/a
|
Gross Profit (Net
Sales less
Cost of Products
Sold)
|
$321.6
|
$314.7
|
2.2%
|
$398.2
|
$383.5
|
3.8%
|
Income from
Operations
|
$53.2
|
$30.8
|
72.7%
|
$128.8
|
$121.5
|
6.0%
|
Diluted Earnings per
Share
|
$0.20
|
$0.03
|
nm
|
$0.51
|
$0.55
|
(7.3)%
|
Statistics (as a %
of Net Sales)
|
Gross Profit (Net
Sales less
Cost of Products
Sold)
|
29.7%
|
28.6%
|
|
36.7%
|
34.9%
|
|
Income from
Operations
|
4.9%
|
2.8%
|
|
11.9%
|
11.1%
|
|
nm: Percentage change
is not meaningful.
|
Results under U.S. GAAP include items as detailed in the
schedules attached to this press release.
Net sales decreased 1.3 percent to $1.1
billion in the fourth quarter of 2013. The majority of the
decrease was due to the impact of the ship-hold in place on most of
the company's infusion devices, the expected year-over-year decline
of U.S. sales of the oncolytic docetaxel and the negative impact of
foreign currency. Partially offsetting the decrease was strong
global Specialty Injectable Pharmaceuticals (SIP) growth, which
benefited from supply recovery and improved pricing in the United States.
Adjusted* income from operations increased 6.0 percent to
$129 million in the fourth quarter of
2013, compared to $122 million in the
fourth quarter of 2012. The increase primarily relates to the
impact of supply recovery and improved pricing in the company's SIP
products, which more than offset the year-over-year increase in
selling, general and administration (SG&A) expense. On a GAAP
basis, income from operations was $53
million compared to $31
million in the fourth quarter of 2012. The year-over-year
change in fourth quarter GAAP income from operations is primarily
attributed to restructuring charges in 2012.
The effective tax rate on an adjusted* basis in the quarter was
21.4 percent compared to 16.3 percent in the fourth-quarter 2012.
The increase mainly reflects a shift in earnings mix to higher
tax-rate jurisdictions relative to the fourth quarter of 2012. On a
GAAP basis, the fourth-quarter 2013 effective tax rate was a
benefit of 7.6 percent compared to an expense of 137.5 percent in
the fourth quarter of 2012. The benefit during the fourth-quarter
2013 primarily results from the impact of quality- and
device-related charges incurred in higher tax-rate jurisdictions.
The fourth-quarter 2012 effective tax rate on a GAAP basis included
a charge related to the effective settlement of a U.S. federal tax
audit.
Full-Year 2013 Results
The following table highlights selected financial results for
the full-year 2013 compared to the same period in 2012:
In $
millions,
except per share
amounts
|
GAAP
Year Ended
Dec. 31,
|
%
Change
|
Adjusted*
Year Ended
Dec. 31,
|
%
Change
|
|
2013
|
2012
|
2013
|
2012
|
Net Sales
|
$4,002.8
|
$4,092.1
|
(2.2)%
|
$4,107.1
|
$4,092.1
|
0.4%
|
Gross Profit (Net
Sales less
Cost of Products
Sold)
|
$1,080.5
|
$1,113.4
|
(3.0)%
|
$1,518.0
|
$1,445.9
|
5.0%
|
Income from
Operations
|
$16.6
|
$58.8
|
(71.8)%
|
$478.4
|
$455.6
|
5.0%
|
Diluted (Loss)
Earnings per
Share
|
$(0.05)
|
$0.27
|
(118.5)%
|
$2.09
|
$2.01
|
4.0%
|
Statistics (as a %
of Net Sales)
|
Gross Profit (Net
Sales less
Cost of Products
Sold)
|
27.0%
|
27.2%
|
|
37.0%
|
35.3%
|
|
Income from
Operations
|
0.4%
|
1.4%
|
|
11.6%
|
11.1%
|
|
Adjusted* net sales for full-year 2013 (which exclude the impact
of customer sales allowances associated with the company's device
strategy incurred in the first quarter of 2013) were $4.1 billion, relatively flat compared to
full-year net sales in 2012. Strong global sales of SIP products,
driven mainly by improved pricing in the
United States and supply recovery, were partially offset by
the expected decline in U.S. docetaxel sales and the decrease in
Medication Management (MM) sales, which was due to the 2013 device
ship-hold. On a GAAP basis, net sales for full-year 2013 were
$4.0 billion, a decrease of 2.2
percent compared to the previous period. In addition to the factors
that affected adjusted* full-year 2013 net sales, GAAP full-year
net sales were adversely impacted by the customer sales allowances
associated with the device strategy.
Adjusted* income from operations increased 5.0 percent to
$478 million for the full year of
2013, compared to $456 million for
the full year of 2012. The increase primarily reflects the
full-year impact of improved pricing and supply recovery in the
company's SIP products, partially offset by higher SG&A
expense. On a GAAP basis, full-year 2013 income from operations was
$17 million compared to $59 million in 2012. In addition to the higher
SG&A expense, full-year 2013 GAAP income from operations was
negatively impacted by charges associated with the device strategy,
partially offset by a decrease in quality- and product-related
charges.
The full-year 2013 effective tax rate on an adjusted* basis was
15.0 percent compared to 18.3 percent in 2012. The full-year 2013
effective tax rate benefited from the retroactive reinstatement in
the first quarter of 2013 of certain U.S. tax provisions for 2012
and 2013. On a GAAP basis, the 2013 effective tax rate was a
benefit of 79.8 percent compared to a benefit of 121.7 percent in
2012. The tax rates on a GAAP basis benefited in both periods from
the impact of quality- and device-related charges incurred in
higher tax-rate jurisdictions, partially offset in 2012 by a charge
related to the effective settlement of a U.S. federal tax
audit.
Cash Flow
Cash flow from operations for full-year 2013 was $317 million, compared to $478 million in 2012. The decrease is primarily
due to higher taxes paid and increases in inventory related to
supply recovery in 2013.
Capital expenditures were $354
million for full-year 2013 compared to $290 million in 2012. The increase was primarily
a result of spending on modernization initiatives at several of the
company's manufacturing facilities, as well as on
information-technology projects.
2014 Projections
The projection ranges for full-year 2014 net sales and adjusted*
diluted earnings per share include, among several factors,
assumptions related to the timing of genericization of Precedex™
(dexmedetomidine HCl), the company's proprietary pharmaceutical for
sedation.
Hospira expects the change to net sales for full-year 2014 to
range between negative 2 and positive 3 percent on a
constant-currency basis, with a flat to negative 1 percent impact
from foreign currency.
Adjusted* diluted earnings per share for 2014 are expected to be
in a range of $2.00 to $2.25.
The reconciliation between the projected 2014 adjusted* diluted
earnings per share and projected GAAP diluted earnings per share
follows:
Diluted earnings per
share -- adjusted*
|
$2.00 - $2.25
|
|
|
Estimated charges
related to the company's device
|
|
strategy (mid-point
of an estimated range of
|
|
$0.13 to $0.19 per
diluted share)
|
$(0.16)
|
|
|
Estimated
amortization of intangible assets related to
|
|
certain acquisitions
(mid-point of an estimated range
|
|
of $0.23 to $ 0.27
per diluted share)
|
$(0.25)
|
|
|
Estimated charges for
certain quality and product-related
|
|
matters (mid-point of
an estimated range of
|
|
$0.25 to $0.31 per
diluted share)
|
$(0.28)
|
|
|
Estimated charges
related to capacity expansion
|
|
(mid-point of an
estimated range of $0.30 to $0.38
|
|
per diluted
share)
|
$(0.34)
|
|
|
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 $0.05 to $0.07
|
|
per diluted
share)
|
$(0.06)
|
|
|
Diluted earnings per
share -- GAAP
|
$0.91 - $1.16
|
The adjusting items are shown net of tax in aggregate of
$85 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 2014 will
range between $100 million and $200
million. Capital expenditures are projected to range between
$375 million to $425 million.
Depreciation and amortization is expected to range between
$225 million to $275 million.
"We are on track for continued progress in 2014 for our
quality-improvement efforts and our initiatives to advance our
strategic growth drivers, which include our SIP pipeline, global
expansion and emerging market initiatives, our biosimilars program
and our device strategy," said Ball. "In addition, we expect
continued progress in efforts that support our strategic
priorities, such as our facility modernization and manufacturing
capacity expansion initiatives. Together, we believe these efforts
will enable Hospira to most effectively serve the needs of our
customers and patients, and deliver strong value to our
shareholders."
*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, Feb. 12, 2014. 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, and a global leader in
biosimilars. 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 17,000 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, intellectual property, product development,
technological, 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
"Forward-Looking Statements," "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, filed with
the Securities and Exchange Commission and 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 Income
|
(Unaudited)
|
(dollars and
shares in millions, except for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
%
Change
|
|
|
|
|
2013
|
|
2012
|
|
|
Net sales
|
$
1,084.4
|
|
$
1,098.9
|
|
(1.3)%
|
|
|
|
|
|
|
Cost of products
sold
|
762.8
|
|
784.2
|
|
(2.7)%
|
Restructuring and
impairment
|
(1.8)
|
|
20.9
|
|
(108.6)%
|
Research and
development
|
83.6
|
|
84.7
|
|
(1.3)%
|
Selling, general and
administrative
|
186.6
|
|
178.3
|
|
4.7%
|
Total operating costs
and expenses
|
1,031.2
|
|
1,068.1
|
|
(3.5)%
|
Income From
Operations
|
53.2
|
|
30.8
|
|
72.7%
|
|
|
|
|
|
|
Interest
expense
|
23.3
|
|
21.9
|
|
6.4 %
|
Other expense,
net
|
2.4
|
|
1.7
|
|
41.2 %
|
Income Before Income
Taxes
|
27.5
|
|
7.2
|
|
281.9 %
|
|
|
|
|
|
|
Income tax (benefit)
expense
|
(2.1)
|
|
9.9
|
|
(121.2)%
|
Equity income from
affiliates, net
|
(3.9)
|
|
(8.0)
|
|
(51.3)%
|
Net Income
|
$
33.5
|
|
$
5.3
|
|
nm
|
|
|
|
|
|
|
Earnings Per Common
Share:
|
|
|
|
|
|
Basic
|
$
0.20
|
|
$
0.03
|
|
nm
|
Diluted
|
$
0.20
|
|
$
0.03
|
|
nm
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding:
|
|
|
|
|
|
Basic
|
165.9
|
|
165.1
|
|
0.5 %
|
Diluted
|
167.3
|
|
165.8
|
|
0.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Gross Profit
(1)(2)
|
$
398.2
|
|
$
383.5
|
|
3.8 %
|
Adjusted Income From
Operations (1)
|
$
128.8
|
|
$
121.5
|
|
6.0 %
|
Adjusted Net Income
(1)
|
$
84.9
|
|
$
91.4
|
|
(7.1)%
|
Adjusted Diluted
Earnings Per Share (1)
|
$
0.51
|
|
$
0.55
|
|
(7.3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistics (as a % of
net sales, except for income tax rate)
|
|
|
|
|
|
GAAP Three Months
Ended December 31,
|
|
Adjusted(1) Three Months Ended
December 31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Gross Profit
(2)
|
29.7 %
|
|
28.6 %
|
|
36.7 %
|
|
34.9 %
|
Income From
Operations
|
4.9 %
|
|
2.8 %
|
|
11.9 %
|
|
11.1 %
|
Net Income
|
3.1 %
|
|
0.5 %
|
|
7.8 %
|
|
8.3 %
|
Income Tax
Rate
|
(7.6)%
|
|
137.5 %
|
|
21.4 %
|
|
16.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
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.
|
Condensed
Consolidated Statements of (Loss) Income
|
(Unaudited)
|
(dollars and
shares in millions, except for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
|
%
Change
|
|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
Net sales
|
$
4,002.8
|
|
|
$
4,092.1
|
|
|
(2.2)%
|
|
|
|
|
|
|
|
|
Cost of products
sold
|
2,922.3
|
|
|
2,978.7
|
|
|
(1.9)%
|
Restructuring and
impairment
|
19.6
|
|
|
63.3
|
|
|
(69.0)%
|
Research and
development
|
301.7
|
|
|
303.6
|
|
|
(0.6)%
|
Selling, general and
administrative
|
742.6
|
|
|
687.7
|
|
|
8.0 %
|
Total operating costs
and expenses
|
3,986.2
|
|
|
4,033.3
|
|
|
(1.2)%
|
Income From
Operations
|
16.6
|
|
|
58.8
|
|
|
(71.8)%
|
|
|
|
|
|
|
|
|
Interest
expense
|
86.2
|
|
|
86.3
|
|
|
(0.1)%
|
Other expense,
net
|
53.6
|
|
|
14.4
|
|
|
272.2 %
|
Loss Before Income
Taxes
|
(123.2)
|
|
|
(41.9)
|
|
|
194.0 %
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
(98.3)
|
|
|
(51.0)
|
|
|
92.7 %
|
Equity income from
affiliates, net
|
(16.6)
|
|
|
(35.1)
|
|
|
(52.7)%
|
Net (Loss)
Income
|
$
(8.3)
|
|
|
$
44.2
|
|
|
(118.8)%
|
|
|
|
|
|
|
|
|
(Loss) Earnings Per
Common Share:
|
|
|
|
|
|
|
|
Basic
|
$
(0.05)
|
|
|
$
0.27
|
|
|
(118.5)%
|
Diluted
|
$
(0.05)
|
|
|
$
0.27
|
|
|
(118.5)%
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding:
|
|
|
|
|
|
|
|
Basic
|
165.6
|
|
|
165.0
|
|
|
0.4 %
|
Diluted
|
165.6
|
|
|
166.0
|
|
|
(0.2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Sales
(1)(2)
|
$
4,107.1
|
|
|
$
4,092.1
|
|
|
0.4 %
|
Adjusted Gross Profit
(1)(3)
|
$
1,518.0
|
|
|
$
1,445.9
|
|
|
5.0 %
|
Adjusted Income From
Operations (1)
|
$
478.4
|
|
|
$
455.6
|
|
|
5.0 %
|
Adjusted Net Income
(1)
|
$
347.6
|
|
|
$
333.3
|
|
|
4.3 %
|
Adjusted Diluted
Earnings Per Share (1)
|
$
2.09
|
|
|
$
2.01
|
|
|
4.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistics (as a % of
net sales, except for income tax rate)
|
|
|
|
|
|
|
|
|
|
GAAP Years Ended
December 31,
|
|
|
Adjusted(1) Years Ended December
31,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Gross Profit
(3)
|
27.0%
|
|
|
27.2%
|
|
|
37.0 %
|
|
|
35.3 %
|
Income From
Operations
|
0.4%
|
|
|
1.4%
|
|
|
11.6 %
|
|
|
11.1 %
|
Net (Loss)
Income
|
(0.2)%
|
|
|
1.1%
|
|
|
8.5 %
|
|
|
8.1 %
|
Income Tax
Rate
|
79.8%
|
|
|
121.7%
|
|
|
15.0 %
|
|
|
18.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 year ended December
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 footnotes.
|
Hospira,
Inc.
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(Unaudited)
|
(dollars in
millions, except for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2013 Reconciliation of GAAP to Non-GAAP Financial
Measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit (1)
|
|
Income From
Operations
|
|
Net Income
(2)
|
|
Diluted EPS
|
GAAP Financial
Measures
|
|
$
321.6
|
|
$
53.2
|
|
$
33.5
|
|
$
0.20
|
Specified
Items:
|
|
|
|
|
|
|
|
|
Device
strategy charges (A)
|
|
8.0
|
|
9.6
|
|
8.2
|
|
0.05
|
Facilities optimization charges (B)
|
|
—
|
|
(3.4)
|
|
(3.4)
|
|
(0.02)
|
Amortization of certain intangible assets (C)
|
|
17.6
|
|
17.6
|
|
12.1
|
|
0.07
|
Certain
quality and product related charges (D)
|
|
42.8
|
|
42.8
|
|
28.7
|
|
0.18
|
Capacity
expansion related charges (E)
|
|
8.2
|
|
8.2
|
|
5.3
|
|
0.03
|
Acquisition and integration related charges
(F)
|
|
—
|
|
0.8
|
|
0.5
|
|
—
|
Adjusted financial
measures (3)
|
|
$
398.2
|
|
$
128.8
|
|
$
84.9
|
|
$
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP results for the
three months ended December 31, 2013 include:
|
|
(A)
|
Device strategy
charges: $8.0 million in Cost of products sold and $1.6 million
reported in Restructuring and impairment. These charges include
consulting, customer accommodations, accelerated depreciation, and other
costs associated with Hospira's device strategy.
|
|
(B)
|
Facilities
optimization charges: ($3.4) million reported in Restructuring
and impairment. Hospira recovered amounts related to equipment
associated with Hospira's exit of a specialty injectable drug finishing
operation.
|
|
(C)
|
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").
|
|
(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, and 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 ("SG&A") include costs for the pending
acquisition and integration of an active pharmaceutical ingredient business.
|
|
|
|
|
Three months ended
December 31, 2012 Reconciliation of GAAP to Non-GAAP Financial
Measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit(1)
|
|
Income
From
Operations
|
|
Net
Income(2)
|
|
Diluted
EPS
|
GAAP Financial
Measures
|
|
$
314.7
|
|
$
30.8
|
|
$
5.3
|
|
$
0.03
|
Specified
Items:
|
|
|
|
|
|
|
|
|
Facilities optimization charges (A)
|
|
—
|
|
1.2
|
|
0.9
|
|
0.01
|
Amortization of certain intangible assets (B)
|
|
17.6
|
|
17.6
|
|
12.8
|
|
0.08
|
Impairment of certain assets (C)
|
|
—
|
|
—
|
|
1.7
|
|
0.01
|
Certain
quality and product related charges (D)
|
|
44.1
|
|
44.1
|
|
33.3
|
|
0.20
|
Capacity
expansion related charges (E)
|
|
6.6
|
|
6.6
|
|
4.4
|
|
0.03
|
Other
restructuring charges (F)
|
|
0.5
|
|
20.2
|
|
13.6
|
|
0.08
|
Acquisition and integration related charges
(G)
|
|
—
|
|
1.0
|
|
0.6
|
|
—
|
Effective settlement of IRS tax audit (H)
|
|
—
|
|
—
|
|
18.8
|
|
0.11
|
Adjusted financial
measures (3)
|
|
$
383.5
|
|
$
121.5
|
|
$
91.4
|
|
$
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP results for the
three months ended December 31, 2012 include:
|
|
(A)
|
Facilities
optimization charges: $1.2 million reported in Restructuring and
impairment. The equipment and facility impairment charges
relate to Hospira's plans to exit a specialty injectable drug finishing
operation.
|
|
(B)
|
Amortization of
certain intangible assets reported in Cost of products sold
resulting from acquisitions including Mayne Pharma, Javelin
Pharmaceuticals, Inc. ("Javelin Pharma") and a generic injectable business by Hospira
India.
|
|
(C)
|
Impairment of certain
assets: $1.7 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 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)
|
Other restructuring
charges: $0.5 million reported in Cost of products sold and $19.7
million reported in Restructuring and impairment. These charges
include inventory charges,
equipment impairments, contract termination charges and severance
charges associated with Hospira's exit of non-strategic product
lines and commercial optimization.
|
|
(G)
|
Acquisition and
integration related charges reported in SG&A include cost
related to the pending acquisition and integration of an active
pharmaceutical ingredient business.
|
|
(H)
|
Settlement of IRS tax
audit expense of $18.8 million reported in Income tax (benefit)
expense. This discrete income tax expense is related to the
completion and effective settlement of U.S. tax return audits.
|
(1)
|
Gross profit is
defined as Net sales less Cost of products sold.
|
(2)
|
Adjusted net income
is shown net of tax of $24.1 million and $25.1 million, exclusive
of the tax audit settlement, for the three months ended December
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 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 February 12,
2014.
|
Hospira,
Inc.
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(Unaudited)
|
(dollars in
millions, except for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2013 Reconciliation of GAAP to Non-GAAP Financial
Measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
Gross
Profit(1)
|
|
Income
From
Operations
|
|
Net (Loss)
Income(2)
|
|
Diluted
EPS
|
GAAP Financial
Measures
|
|
$
4,002.8
|
|
$
1,080.5
|
|
$
16.6
|
|
$
(8.3)
|
|
$
(0.05)
|
Specified
Items:
|
|
|
|
|
|
|
|
|
|
|
Device
strategy charges (A)
|
|
104.3
|
|
215.0
|
|
226.9
|
|
167.9
|
|
1.01
|
Facilities optimization charges (B)
|
|
—
|
|
—
|
|
(3.4)
|
|
(3.4)
|
|
(0.02)
|
Amortization of certain intangible assets (C)
|
|
—
|
|
70.0
|
|
70.0
|
|
48.6
|
|
0.29
|
Impairment of certain assets (D)
|
|
—
|
|
—
|
|
3.5
|
|
10.8
|
|
0.07
|
Certain
quality and product related charges (E)
|
|
—
|
|
130.0
|
|
130.0
|
|
86.4
|
|
0.52
|
Capacity
expansion related charges (F)
|
|
—
|
|
22.5
|
|
22.5
|
|
14.6
|
|
0.09
|
Other
restructuring charges (G)
|
|
—
|
|
—
|
|
7.7
|
|
5.4
|
|
0.03
|
Acquisition and integration related charges
(H)
|
|
—
|
|
—
|
|
4.6
|
|
2.8
|
|
0.02
|
Early
debt extinguishment charges (I)
|
|
—
|
|
—
|
|
—
|
|
22.8
|
|
0.14
|
Diluted
share impact
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.01)
|
Adjusted financial
measures (3)
|
|
$
4,107.1
|
|
$
1,518.0
|
|
$
478.4
|
|
$
347.6
|
|
$
2.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP results for the
year ended December 31, 2013 include:
|
|
(A)
|
Device strategy
charges: $104.3 million reported in Net sales, $110.7 million in
Cost of products sold and $11.9 million in Restructuring and
impairment. These charges include customer sales
allowances, consulting, customer
accommodations, contract termination, collection and destruction
costs, inventory charges, other asset impairments, accelerated
depreciation, and other costs associated with Hospira's device strategy.
|
|
(B)
|
Facilities
optimization charges: ($3.4) million reported in
Restructuring and impairment. Hospira recovered amounts
related to equipment associated with Hospira's exit of a specialty
injectable drug finishing
operation.
|
|
(C)
|
Amortization of
certain intangible assets reported in Cost of products sold
resulting from acquisitions including Mayne Pharma and a generic
injectable business by Hospira India.
|
|
(D)
|
Impairment of certain
assets: $3.5 million reported in Restructuring and impairment and
$14.5 million reported in Other expense, net. These charges relate
to impairment of certain intangible assets and investments, respectively.
|
|
(E)
|
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, and 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 FDA warning letters and charges
related to certain device related remediation
activities.
|
|
(F)
|
Capacity expansion
related charges reported in Cost of products sold include start-up
charges related to manufacturing capacity expansion in
India.
|
|
(G)
|
Other restructuring
charges: $7.7 million reported in Restructuring and impairment.
These charges include severance charges associated with Hospira's
commercial optimization.
|
|
(H)
|
Acquisition and
integration related charges reported in SG&A include costs for
the pending acquisition and integration of an active pharmaceutical
ingredient business.
|
|
(I)
|
Early debt
extinguishment charges: $33.4 million reported in Other expense,
net and $3.0 million reported in Interest expense. These charges
include a make whole provision, write-off of debt
issue costs, discounts and
deferred gain on interest rate hedges, and interest expense
associated with an overlap of outstanding debt.
|
|
|
|
|
Year Ended December
31, 2012 Reconciliation of GAAP to Non-GAAP Financial
Measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit(1)
|
|
Income
From
Operations
|
|
Net
Income(2)
|
|
Diluted
EPS
|
GAAP financial
measures
|
|
|
|
$
1,113.4
|
|
$
58.8
|
|
$
44.2
|
|
$
0.27
|
Specified
items:
|
|
|
|
|
|
|
|
|
|
|
Facilities optimization charges (A)
|
|
|
|
—
|
|
18.6
|
|
11.6
|
|
0.07
|
Amortization of certain intangible assets
(B)
|
|
|
|
72.4
|
|
72.4
|
|
50.5
|
|
0.31
|
Impairment of certain assets (C)
|
|
|
|
—
|
|
14.0
|
|
17.0
|
|
0.10
|
Certain
quality and product related charges (D)
|
|
|
|
236.8
|
|
236.8
|
|
153.9
|
|
0.93
|
Capacity
expansion related charges (E)
|
|
|
|
17.9
|
|
17.9
|
|
11.9
|
|
0.07
|
Other
restructuring charges (F)
|
|
|
|
5.4
|
|
36.1
|
|
24.8
|
|
0.15
|
Acquisition and integration related charges
(G)
|
|
|
|
—
|
|
1.0
|
|
0.6
|
|
—
|
Effective settlement of IRS tax audit (H)
|
|
|
|
—
|
|
—
|
|
18.8
|
|
0.11
|
Adjusted financial
measures (3)
|
|
|
|
$
1,445.9
|
|
$
455.6
|
|
$
333.3
|
|
$
2.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP results for the
year ended December 31, 2012 include:
|
|
(A)
|
Facilities
optimization charges: $18.6 million reported in Restructuring and
impairment. The equipment and facility impairment charges
relate to Hospira's plans to exit a specialty injectable
drug finishing
operation.
|
|
(B)
|
Amortization of
certain intangible assets reported in Cost of products sold
resulting from acquisitions including Mayne Pharma, Javelin Pharma
and a generic injectable business by Hospira India.
|
|
(C)
|
Impairment of certain
assets: $14.0 million reported in Restructuring and impairment, and
$10.1 million reported in Other expense, net. These charges relate
to impairments of certain intangible assets and investments, respectively.
|
|
(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 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)
|
Other Restructuring
Charges: $5.4 million reported in Cost of products sold and $30.7
million reported in Restructuring and impairment. These charges
include inventory charges, equipment impairments, contract termination charges, severance
charges and gain on disposition associated with Hospira's exit of
non-strategic product lines and commercial optimization.
|
|
(G)
|
Acquisition and
integration related charges reported in SG&A include cost
related to the pending acquisition and integration of an active
pharmaceutical ingredient business.
|
|
(H)
|
Settlement of IRS tax
audit expense of $18.8 million reported in Income tax benefit. This
discrete income tax expense is related to the completion and
effective settlement of U.S. tax return audits.
|
(1)
|
Gross profit is
defined as Net sales less Cost of products sold.
|
(2)
|
Adjusted net income
is shown net of tax of $156.6 million and $136.6 million, exclusive
of the tax audit settlement, for the years ended December 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 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 February
12, 2014.
|
Hospira,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
2013
|
|
December
31,
2012
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and
cash equivalents
|
|
$
798.1
|
|
$
772.1
|
Trade
receivables, less allowances of $11.2 and $12.7,
respectively
|
|
574.3
|
|
646.9
|
Inventories, net
|
|
1,066.2
|
|
997.8
|
Deferred
income taxes and other
|
|
208.6
|
|
214.4
|
Prepaid
expenses
|
|
90.0
|
|
53.9
|
Other
receivables
|
|
101.3
|
|
75.3
|
Total Current Assets
|
|
2,838.5
|
|
2,760.4
|
Property
and equipment, net
|
|
1,574.2
|
|
1,445.1
|
Intangible assets, net
|
|
172.2
|
|
266.8
|
Goodwill
|
|
1,057.7
|
|
1,079.1
|
Deferred
income taxes
|
|
358.9
|
|
296.8
|
Investments
|
|
33.1
|
|
71.8
|
Other
assets
|
|
144.3
|
|
168.6
|
Total Assets
|
|
$
6,178.9
|
|
$
6,088.6
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Short-term borrowings
|
|
$
93.7
|
|
$
28.9
|
Trade
accounts payable
|
|
329.2
|
|
276.0
|
Salaries, wages and commissions
|
|
185.4
|
|
144.0
|
Other
accrued liabilities
|
|
556.8
|
|
580.3
|
Total Current Liabilities
|
|
1,165.1
|
|
1,029.2
|
Long-term
debt
|
|
1,747.0
|
|
1,706.8
|
Deferred income
taxes
|
|
3.2
|
|
4.4
|
Post-retirement
obligations and other long-term liabilities
|
|
301.7
|
|
306.5
|
Commitments and
Contingencies
|
|
|
|
|
Total Shareholders'
Equity
|
|
2,961.9
|
|
3,041.7
|
Total Liabilities and
Shareholders' Equity
|
|
$
6,178.9
|
|
$
6,088.6
|
Hospira,
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
(dollars in
millions)
|
|
|
|
|
|
Years Ended December
31,
|
Cash Flow From
Operating Activities:
|
|
2013
|
|
2012
|
Net (Loss)
Income
|
|
$
(8.3)
|
|
$
44.2
|
Adjustments to
reconcile Net (Loss) Income to net cash from operating
activities-
|
|
|
|
|
Depreciation
|
|
171.8
|
|
164.0
|
Amortization of intangible assets
|
|
85.7
|
|
83.6
|
Loss on early debt extinguishment
|
|
33.4
|
|
—
|
Stock-based compensation expense
|
|
41.6
|
|
40.0
|
Undistributed equity income from affiliates
|
|
(16.6)
|
|
(35.1)
|
Distributions received from equity affiliates
|
|
37.5
|
|
—
|
Deferred income taxes and other tax adjustments
|
|
(117.9)
|
|
(90.3)
|
Impairment and other asset charges
|
|
73.1
|
|
72.8
|
Gains
on dispositions of assets
|
|
(0.9)
|
|
(5.9)
|
Changes in assets and
liabilities-
|
|
|
|
|
Trade receivables
|
|
66.3
|
|
(4.1)
|
Inventories
|
|
(138.2)
|
|
27.5
|
Prepaid expenses and other assets
|
|
(45.1)
|
|
(37.4)
|
Trade accounts payable
|
|
41.3
|
|
26.5
|
Other liabilities
|
|
73.7
|
|
183.8
|
Other, net
|
|
20.0
|
|
8.4
|
Net Cash
Provided by Operating Activities
|
|
317.4
|
|
478.0
|
|
|
|
|
|
Cash Flow From
Investing Activities:
|
|
|
|
|
Capital
expenditures (including instruments placed with or leased to
customers)
|
|
(353.5)
|
|
(290.1)
|
Other
payments to acquire business
|
|
—
|
|
(15.0)
|
Purchases of intangibles and other investments
|
|
(18.2)
|
|
(11.6)
|
Proceeds
from disposition of businesses and assets
|
|
1.4
|
|
12.7
|
Net Cash Used
in Investing Activities
|
|
(370.3)
|
|
(304.0)
|
|
|
|
|
|
Cash Flow From
Financing Activities:
|
|
|
|
|
Issuance
of long-term debt, net of fees paid
|
|
691.8
|
|
—
|
Repayment of long-term debt
|
|
(650.0)
|
|
—
|
Payment
on early debt extinguishment
|
|
(39.8)
|
|
—
|
Other
borrowings, net
|
|
74.6
|
|
(10.7)
|
Excess
tax benefit from stock-based compensation arrangements
|
|
1.4
|
|
2.2
|
Proceeds
from stock options exercised
|
|
16.3
|
|
7.9
|
Net Cash
Provided by (Used in) Financing Activities
|
|
94.3
|
|
(0.6)
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(15.4)
|
|
1.2
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
26.0
|
|
174.6
|
Cash and cash
equivalents at beginning of year
|
|
772.1
|
|
597.5
|
Cash and cash
equivalents at end of year
|
|
$
798.1
|
|
$
772.1
|
|
|
|
|
|
Supplemental Cash
Flow Information:
|
|
|
|
|
Cash paid during the
year-
|
|
|
|
|
Interest
|
|
$
94.4
|
|
$
102.2
|
Income taxes, net of
refunds
|
|
$
66.5
|
|
$
10.7
|
Accrued capital
expenditures
|
|
$
42.2
|
|
$
28.8
|
|
|
|
|
|
|
|
|
|
|
Hospira,
Inc.
|
|
Net Sales by
Product Line
|
|
(Unaudited)
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
2013
|
|
2012
|
|
% Change
at Actual
Currency
Rates
|
|
% Change at
Constant
Currency
Rates(1)
|
|
Americas—
|
|
|
|
|
|
|
|
|
Specialty Injectable Pharmaceuticals
|
$
572.6
|
|
$
539.6
|
|
6.1 %
|
|
7.0 %
|
|
Medication Management
|
179.5
|
|
222.6
|
|
(19.4)%
|
|
(18.3)%
|
|
Other
Pharma
|
104.8
|
|
107.5
|
|
(2.5)%
|
|
(2.0)%
|
|
Total
Americas
|
856.9
|
|
869.7
|
|
(1.5)%
|
|
(0.6)%
|
|
|
|
|
|
|
|
|
|
|
Europe, Middle
East & Africa ("EMEA")—
|
|
|
|
|
|
|
|
|
Specialty Injectable Pharmaceuticals
|
88.2
|
|
83.3
|
|
5.9 %
|
|
1.7 %
|
|
Medication Management
|
28.6
|
|
31.8
|
|
(10.1)%
|
|
(13.8)%
|
|
Other
Pharma
|
21.9
|
|
24.6
|
|
(11.0)%
|
|
(11.8)%
|
|
Total EMEA
|
138.7
|
|
139.7
|
|
(0.7)%
|
|
(4.2)%
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific
("APAC")—
|
|
|
|
|
|
|
|
|
Specialty Injectable Pharmaceuticals
|
71.9
|
|
73.3
|
|
(1.9)%
|
|
7.4 %
|
|
Medication Management
|
13.6
|
|
14.2
|
|
(4.2)%
|
|
2.1 %
|
|
Other
Pharma
|
3.3
|
|
2.0
|
|
65.0 %
|
|
65.0 %
|
|
Total APAC
|
88.8
|
|
89.5
|
|
(0.8)%
|
|
7.8 %
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$
1,084.4
|
|
$
1,098.9
|
|
(1.3)%
|
|
(0.4)%
|
|
|
|
|
|
|
|
|
|
|
Global—
|
|
|
|
|
|
|
|
|
Specialty Injectable Pharmaceuticals
|
$
732.7
|
|
$
696.2
|
|
5.2 %
|
|
6.4 %
|
|
Medication Management
|
221.7
|
|
268.6
|
|
(17.5)%
|
|
(16.7)%
|
|
Other
Pharma
|
130.0
|
|
134.1
|
|
(3.1)%
|
|
(2.8)%
|
|
Net Sales
|
$
1,084.4
|
|
$
1,098.9
|
|
(1.3)%
|
|
(0.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
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.
|
Hospira,
Inc.
|
Net Sales by
Product Line
|
(Unaudited)
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December
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
|
$
2,163.0
|
|
$
2,163.0
|
|
$
1,991.0
|
|
8.6 %
|
|
9.1 %
|
|
8.6 %
|
|
9.1 %
|
Medication Management
|
629.9
|
|
718.3
|
|
846.8
|
|
(25.6)%
|
|
(25.0)%
|
|
(15.2)%
|
|
(14.5)%
|
Other
Pharma
|
382.9
|
|
382.9
|
|
401.6
|
|
(4.7)%
|
|
(4.3)%
|
|
(4.7)%
|
|
(4.3)%
|
Total
Americas
|
3,175.8
|
|
3,264.2
|
|
3,239.4
|
|
(2.0)%
|
|
(1.4)%
|
|
0.8 %
|
|
1.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
Injectable Pharmaceuticals
|
332.9
|
|
332.9
|
|
318.4
|
|
4.6 %
|
|
1.7 %
|
|
4.6 %
|
|
1.7 %
|
Medication Management
|
97.8
|
|
111.0
|
|
119.9
|
|
(18.4)%
|
|
(20.9)%
|
|
(7.4)%
|
|
(9.9)%
|
Other
Pharma
|
77.9
|
|
77.9
|
|
87.5
|
|
(11.0)%
|
|
(10.6)%
|
|
(11.0)%
|
|
(10.6)%
|
Total EMEA
|
508.6
|
|
521.8
|
|
525.8
|
|
(3.3)%
|
|
(5.5)%
|
|
(0.8)%
|
|
(3.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APAC—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
Injectable Pharmaceuticals
|
263.5
|
|
263.5
|
|
260.6
|
|
1.1 %
|
|
7.3 %
|
|
1.1 %
|
|
7.3 %
|
Medication
Management
|
42.1
|
|
44.8
|
|
49.8
|
|
(15.5)%
|
|
(12.0)%
|
|
(10.0)%
|
|
(6.6)%
|
Other
Pharma
|
12.8
|
|
12.8
|
|
16.5
|
|
(22.4)%
|
|
(21.8)%
|
|
(22.4)%
|
|
(21.8)%
|
Total APAC
|
318.4
|
|
321.1
|
|
326.9
|
|
(2.6)%
|
|
2.9 %
|
|
(1.8)%
|
|
3.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$
4,002.8
|
|
$
4,107.1
|
|
$
4,092.1
|
|
(2.2)%
|
|
(1.6)%
|
|
0.4 %
|
|
0.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
Injectable Pharmaceuticals
|
$
2,759.4
|
|
$
2,759.4
|
|
$
2,570.0
|
|
7.4 %
|
|
8.0 %
|
|
7.4 %
|
|
8.0 %
|
Medication
Management
|
769.8
|
|
874.1
|
|
1,016.5
|
|
(24.3)%
|
|
(23.9)%
|
|
(14.0)%
|
|
(13.6)%
|
Other
Pharma
|
473.6
|
|
473.6
|
|
505.6
|
|
(6.3)%
|
|
(6.0)%
|
|
(6.3)%
|
|
(6.0)%
|
Net Sales
|
$
4,002.8
|
|
$
4,107.1
|
|
$
4,092.1
|
|
(2.2)%
|
|
(1.6)%
|
|
0.4 %
|
|
0.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted Net sales
for the year ended December 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 year
ended December 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.