quantatative analysis of qcor

8/10/2019 Quantatative Analysis of QCOR

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Questcor Pharmaceuticals, INC.

2013

Revenues

Pharmaceutical net sales 761,347$

Contract manufacturing net sales 37,582

Total net sales 798,929

Cost of sales (exclusive of amortization of

purchased technology and IPR&D asset) 74,365Gross profit 724,564

Operating expenses:

Sellin and marketin 152,856

General and administrative 56,408

Research and develo ment 59,730

De reciation and amortization 4,055

Chan e in fair value of contin entconsideration 10,958

Im airment of oodwill and intan ibles 719

Total o eratin ex enses 284,726

Income from o erations 439,838

Interest and other (ex ense) income, net 250

Foreign currency transaction loss (548)

Income before income taxes 439,540Income tax expense 146,931

Net income 292,609$

Change in unrealized gains or losses on

Consolidated Statement of Income and Comprehensive Income

(In thousands, except for per share data)


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available-for-sale securities, net of

related tax effects. (35)

Change foreign currency translation

adjustments. (3,258)

Comprehensive Income 289,316$

Net income per share applicable to common

shareholders:

Basic 4.99$

Diluted 4.76$

Shares used in computing net income per

share applicable to common shareholders:Basic 58,616

Diluted 61,447

Dividends declared er common share 1.10$


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Years Ended December 31,2012 2011

509,292$ 218,169$

- -

509,292 218,169

9.3% 28,555 5.6% 12,459 5.7%90.7% 480,737 94.4% 205,710 94.3%

19.1% 114,139 22.4% 56,728 26.0%

7.1% 33,596 6.6% 17,743 8.1%

7.5% 34,269 6.7% 16,778 7.7%

0.5% 1,219 0.2% 1,044 0.5%

1.4% - 0.0% - 0.0%

0.1% 987 0.2% 299 0.1%

35.6% 184,210 36.2% 92,592 42.4%

55.1% 296,527 58.2% 113,118 51.8%

0.0% 703 0.1% 627 0.3%

-0.1% - 0.0% - 0.0%

55.0% 297,230 58.4% 113,745 52.1%18.4% 99,555 19.5% 34,154 15.7%

36.6% 197,675$ 38.8% 79,591$ 36.5%


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0.0% 76 0.0% (59) 0.0%

-0.4% - 0.0% - 0.0%

36.2% 197,751$ 38.8% 79,532$ 36.5%

3.28$ 1.27$

3.14$ 1.21$

60,243 62,498

63,045 66,010

0.40$ -$


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QUESTCOR PHARMACEUTICALS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share information)

ASSETS

Current assets:

Cash and cash equivalents

Short-term investments

Total cash, cash equivalents and short-term

investments

Accounts receivable, net of allowances for doubtfulaccounts of $475 and $0 at December 31, 2013 and

December 31, 2012, respectively

Inventories, net of allowances of $1,329 and $52 at

December 31, 2013 and December 31, 2012,

res ectivel

Restricted cash - current ortion

Pre aid ex enses and other current assetsDeferred tax assets

Total current assets

Pro ert and e ui ment, net

Purchased technolo , net

Goodwill

In process R&D asset

Intangibles and other non current assetsRestricted cash

Deposits and other assets

Deferred tax assets

Total assets


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December 31,

2013 2012

175,840$ 24% 80,608$ 32%

69,166 9% 74,705 30%

245,006 33% 155,313 62%

87,069 12% 61,417 24%

16,368 2% 9,909 4%

25,000 3% -

7,124 1% 4,900 2%16,209 2% 5,737 2%

396,776 54% 237,276 94%

31,733 4% 2,073 1%

- 1,493 1%

20,464 3% -

191,451 26% -

30,131 4% -50,000 7% -

389 70

15,410 2% 11,519 5%

736,354$ 100% 252,431$ 100%


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LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

Accrued compensation

Sales-related reserves

Accrued royalties

Dividend payableCurrent portion of contingent consideration

Current portion of in process R&D liability

Income taxes a able

Current ortion of lon -term debt

Other accrued liabilities

Total current liabilities

Lon -term debt, less current ortionContin ent consideration

In rocess R&D liabilit

Non current deferred tax liabilit

Other non current liabilities

Total liabilities

Commitments and contingencies (see Note 7)

Shareholders' equity:Preferred stock, no par value, 5,334,285 shares

authorized; none outstanding

Common stock, no par value, 105,000,000 shares

authorized, 60,137,758 and 58,544,206 shares issued

and outstanding at December 31, 2013 and


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December 31, 2012, respectively

Retained earnings

Accumulated other comprehensive income (loss)

Total shareholders' equity

Total liabilities and shareholders' equityCommon Stock Outstanding

Price per Share on December 31


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December 31,

2013 2012

14,302$ 2% 13,069$ 5%

16,489 2% 21,300 3%

35,370 5% 37,376 5%

35,163 5% 9,802 1%

18,093 2% - 0%4,238 1% - 0%

25,000 3% - 0%

3,693 1% 7,360 1%

1,665 0% - 0%

7,159 1% 1,492 0%

161,172 22% 90,399 12%

13,998 2% - 0%33,224 5% - 0%

115,066 16% - 0%

10,569 1% - 0%

2,961 0% 203 0%

336,990 46% 90,602 12%

- -


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Years Ended December 31,

2013 2012

(In thousands)

Cash Flows From Operating Activities

Net income 292,609$ 197,675$

Adjustments to reconcile net income to net

cash provided by operating activities:

Share-based compensation expense 28,753 15,792

Deferred income taxes (14,849) 241Amortization of investments 412 1,330

Depreciation and amortization 14,172 1,219

Impairment of goodwill and intangibles 719 987

Loss on disposal of property and equipment 95 72

Changes in fair value of contingent

consideration 6,429 -

Imputed interest for contingent

consideration and in-process R&D 4,529 -

Other compensation expense 1,892 -

Changes in operating assets and liabilities:

Accounts receivable (19,155) (33,616)

Inventories 4,577 (4,683)

Prepaid income taxes - 6,940

Prepaid expenses and other current assets (1,335) (1,509)

Accounts payable (589) 7,566

Accrued compensation (4,811) 9,710

Accrued royalties 25,361 5,463

Sales-related reserves (2,006) 3,257

Income taxes payable (3,667) 7,360

Other accrued liabilities 3,307 1,317

Other non-current liabilities 1,335 (84)Net cash provided by operating activities 337,778 219,037

Cash Flows From Investing Activities

Purchase of short-term investments (120,645) (145,384)

Proceeds from the sale and maturities of

short-term investments 125,737 191,105

Purchase of property, equipment and

leasehold improvements (3,536) (1,065)

Restricted cash associated with the

QUESTCOR PHARMACEUTICALS, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS

QUESTCOR PHARMACEUTICALS INC

CASH_FLOW

Form Type: 10-K

Period End: Dec 31, 2013

Date Filed: Feb 26, 2014


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acquisition of Synacthen (75,000) -

Acquisition of BioVectra, net of cash

acquired (46,692) -

Acquisition of Synacthen (60,000) -

Proceeds from sale of Doral 700 -

Changes in deposits and other assets 2,119 (14)

Net cash (used in) / provided by investingactivities (177,317) 44,642

Cash Flows From Financing Activities

Repayment of funded long-term debt (1,219) -

Repayment of other long-term debt (491) -

Income tax benefit realized from share-based

compensation plans 22,809 7,488

Issuance of common stock, net 15,940 6,335

Dividends paid (48,136) (23,533)

Repurchase of common stock (53,054) (261,830)

Net cash (used in) / provided by financing

activities (64,151) (271,540)Impact of exchange rate on cash flows (1,078) -


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2011

79,591$

7,326

(4,896)1,250

1,044

299

11

-

-

-

(16,673)

(1,500)

(3,408)

(1,527)

1,634

7,432

3,030

12,608

-

(504)

(118)85,599

(162,301)

112,636

(1,823)


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-

-

-

-

9

(51,479)

-

-

17,712

6,582

-

(11,453)

12,841-


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Select Financial Ratios For Questcor, INC

2013 2012

Ratio

Current ratio 2.46 2.62Quick ratio 2.36 2.52

Inventory turnover 5.66 n/a

Days to Sell 64.49 n/a

Receivables Turnover 10.76 n/a

Days to Collect 33.92 days n/a

Debt ratio 0.85 0.38

Times Interest Earned 1,759.35 421.80Fixed Charge Ratio

Net Profit margin 0.37 0.39

ROA 0.40 0.78

ROE 0.73 1.22

Discussion with industry averages

6 Free Cash Flow 10

7 P/E Ratio for the 2 years 10

8 DuPont Analysis 10

9 Written Analysis 16


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Industry Average


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Altman's Z-Score

Variable Coefficient (CE) Xn (CE*Xn)

X1 1.2 0.32 0.38

X2 1.4 0.94 1.31X3 3.3 1.11 3.66

X4 0.6 9.72 5.83

X5 1 1.08 1.08

Z-Score= 12.27

Ret Ear ('13) 372,231$


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quantatative analysis of qcor

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