Valeant Pharmaceuticals International (VRX)
Q1 2009 Earnings Call
May 05, 2009 10:00 AM ET
Executives
Laurie W. Little - Vice President of Investor Relations
J. Michael Pearson - Chairman and Chief Executive Officer
Peter J. Blott - Executive Vice President and Chief Financial Officer
Rajiv De Silva - Chief Operating Officer of Specialty Pharmaceuticals
Analysts
Gregg Gilbert - BAS-ML
Gary Nachman - Leerink Swann LLC
Jonathan Aschoff - Brean Murray, Carret & Co
Michael Tong - Wachovia Capital Markets, LLC
John Boris - Citi
Presentation
Operator
Good morning, my name is Leslie and I will be your conference operator today. At this time I would like to welcome everyone for the Valeant Pharmaceuticals First Quarter Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks there will be a question and answer session. (Operator Instructions).
Thank you Ms. Little, you may being your conference.
Laurie W. Little
Thanks Leslie. Good morning everyone and welcome to Valeant's 2009 first quarter financial results conference call. Joining us on the call today are Mike Pearson, Chairman and Chief Executive Officer; Peter Blott, Chief Financial Officer; Rajiv De Silva, Chief Operating Officer, Specialty Pharmaceuticals and Bhaskar Chaudhuri, President of Valeant.
A copy of today's slide presentation could be found on our website under Investor Relations section. Before we begin, I'd like to call your attention to the fact that this conference call and presentation may contain forward-looking statements, including but not limited to guidance with respect to expected non-GAAP cash earnings per share, expectations and plans relating to Retigabine and Taribavirin, cost reductions, sales growth and other aspects of our restructuring and growth strategies and the benefits of these efforts we expect to see in 2009, the effect of financial markets and the impact of foreign exchange.
These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include but are not limited to risks and uncertainties related to non-GAAP financial guidance, our ability to carry out our plans for Retigabine and Taribavirin, our ability to realize benefits of our restructuring program, market condition, currency fluctuations and other risks and uncertainties discussed in the company's most recent annual or quarterly report filed with the SEC, which factors are incorporated herein by reference.
These risks are among the factors that could cause actual results to differ materially from the expectations described in the forward-looking statements and undue reliance should not be placed on any of these forward-looking statements.
Valeant undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this call or to reflect actual outcome. Certain figures discussed in today's presentation will be based on adjusted or non-GAAP information. A reconciliation of historical GAAP to non-GAAP results can be found in the tables to the company's press release issued earlier today and on Valeant's website at www.valeant.com.
And now I would like to turn the call over to Mike.
J. Michael Pearson
Thank you Laurie. Good morning everyone and thank you for joining us. This morning I would like to discuss our first quarter results, then discuss our new leveraged R&D model and finally update you on the six strategic initiatives for the year. This is the first quarter that we began to see the results of our 2008 turnaround program.
We delivered solid performance in terms of sales growth, earnings and cash flow. I believe that our results begin to reveal the fundamental strength and stability of Valeant's diverse business, our focus on getting our cost in line with our size (ph) and perhaps most important our longer term growth potential.
Our balance of geographies and product lines provide us with a healthy hedge against both geographic and therapeutic risk and should continue to enable us to deliver strong profitable growth even under challenging economic conditions.
Valeant's total revenue in the first quarter of 2009 was a 178 million compared to 152 million in the first quarter of 2008, an increase of 17%. Our GAAP earnings were $0.37 per share and our adjusted cash EPS was $0.46 per share. Our cash flow from operations was $51 million. All-in-all, this was a strong quarter which establishes a strong baseline for our transformed company.
I am particularly pleased that results for the quarter were driven by contributions from across our company. All of our businesses are now profitable, cash generating and growing in local currency. In our Specialty Pharmaceuticals segment, product sales increased 8% to 86 million. As sales from acquisitions, divestures and currency fluctuations in 2008 are excluded, total Specialty product sales increased 5%. This is despite a loss of over $8 million in Efudex sales this quarter.
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