Ubiquiti Networks Reports Third Quarter Fiscal 2019 Financial Results
Reading Time: 13 minutes
~ Revenues of $284.9 million~
NEW YORK–(BUSINESS WIRE)–Ubiquiti Networks, Inc. (NASDAQ: UBNT) (“Ubiquiti” or the “Company”)
today announced results for the third quarter fiscal 2019, ended
March 31, 2019.
Third Quarter Fiscal 2019 Financial Highlights
- Revenues of $284.9 million, increasing 13.8% year-over-year
- GAAP net income of $88.3 million and GAAP diluted EPS of $1.25
-
Non-GAAP net income of $88.9 million and non-GAAP diluted EPS of
$1.26, increasing 28.6% year-over-year
Additional Highlights
-
The Company repurchased and retired 91,249 shares of common stock for
$9.0 million at an average price of $98.63 per share during the third
quarter fiscal 2019. -
The Company has $178.2 million of availability remaining under the
$200 million share repurchase program announced on November 9, 2018. -
The Company’s Board of Directors declared a $0.25 per share cash
dividend payable on May 28, 2019 to shareholders of record at the
close of business on May 20, 2019.
|
Financial Highlights ($, in millions, except per share data) |
|||||||||
| Income statement highlights | F3Q19 | F2Q19 | F3Q18 | ||||||
| Revenues | 284.9 | 307.3 | 250.4 | ||||||
| Service Provider Technology | 109.4 | 113.2 | 100.9 | ||||||
| Enterprise Technology | 175.5 | 194.1 | 149.5 | ||||||
| Gross profit | 132.8 | 140.2 | 114.5 | ||||||
| Gross Profit (%) | 46.6 | % | 45.6 | % | 45.7 | % | |||
| Total Operating Expenses | 30.7 | 48.6 | 29.6 | ||||||
| Income from Operations | 102.1 | 91.7 | 84.9 | ||||||
| GAAP Net Income | 88.3 | 77.8 | 102.7 | ||||||
| GAAP EPS (diluted) | 1.25 | 1.09 | 1.32 | ||||||
| Non-GAAP Net Income | 88.9 | 95.1 | 76.0 | ||||||
| Non-GAAP EPS (diluted) | 1.26 | 1.33 | 0.98 | ||||||
|
Ubiquiti Networks, Inc.  |
||||||||||||
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||
| Service Provider Technology | $ | 109,379 | $ | 100,892 | $ | 327,558 | $ | 340,659 | ||||
| Enterprise Technology | 175,532 | 149,512 | 547,534 | 406,424 | ||||||||
| Total revenues | $ | 284,911 | $ | 250,404 | $ | 875,092 | $ | 747,083 | ||||
|
Ubiquiti Networks, Inc. Revenues by Geographical Area (In thousands) (Unaudited) |
||||||||||||
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||
| North America | $ | 109,135 | $ | 94,800 | $ | 349,740 | $ | 285,927 | ||||
| South America | 22,976 | 19,882 | 58,059 | 71,681 | ||||||||
| Europe, the Middle East and Africa | 125,662 | 113,738 | 384,985 | 309,078 | ||||||||
| Asia Pacific | 27,138 | 21,984 | 82,308 | 80,397 | ||||||||
| Total revenues | $ | 284,911 | $ | 250,404 | $ | 875,092 | $ | 747,083 | ||||
Income Statement Items
Revenues
Revenues for the third quarter fiscal 2019 were $284.9 million,
representing a decrease from the prior quarter of 7.3% and an increase
from the comparable prior year period of 13.8%. Revenues for the first
nine months of fiscal 2019 were $875.1 million, representing an increase
of 17.1% from the first nine months of fiscal 2018.
We believe the sequential decline in revenues for the third quarter
fiscal 2019 is primarily due to distributor ordering patterns and as
described in the “Outlook” section below, we expect to achieve revenues
for the fiscal year ending June 30, 2019 at the high end of the guidance
range previously provided.
Gross Margins
During the third quarter fiscal 2019, GAAP gross profit was $132.8
million. GAAP gross margin of 46.6% increased 0.9% versus the comparable
prior year period GAAP gross margin of 45.7% and increased 1.0% versus
the prior quarter GAAP gross margin of 45.6%.
The increase in gross margin as a percentage of revenue for the third
quarter fiscal 2019 as compared to the comparable prior year period was
driven by the mix of products sold and offset, in part, by higher
indirect expenses. The increase in gross margin as a percentage of
revenue for the third quarter fiscal 2019 as compared to the second
quarter fiscal 2019 was driven by the mix of products sold and lower
indirect expenses.
We expect to incur costs as a result of tariffs on certain products
imported into the U.S. from China. However, we anticipate mitigating the
effect of the tariffs in the long-term and therefore our long-term gross
margins are expected to remain between 45% to 50%
Research and Development
During the third quarter fiscal 2019, research and development (R&D)
expenses were $21.3 million. This reflects an increase as compared to
the R&D expenses of $17.4 million in the comparable prior year period
and R&D expense of $20.0 million in the prior quarter.
Increased costs in third quarter fiscal 2019 as compared to both the
prior year period and prior quarter is primarily driven by higher
employee-related expenses. R&D expenses represented 7.5% of revenues in
the third quarter fiscal 2019, which is in line with the Company’s
target model range of 6% to 8%.
Sales, General and Administrative
The Company’s sales, general and administrative (“SG&A”) expenses for
the third quarter fiscal 2019 were $9.4 million. This reflects a
decrease as compared to the SG&A expenses of $12.2 million in the
comparable prior year period and SG&A expenses of $10.6 million in the
prior quarter. The decrease in SG&A costs as compared to the prior year
period was primarily related to lower professional fees and lower
employer payroll taxes associated with tax withholding related to
settlement of equity awards recorded in the third quarter fiscal 2018.
The decrease in SG&A costs as compared to the prior quarter was
primarily related to lower professional fees.
SG&A expenses represented 3.3% of revenues in the third quarter fiscal
2019, which is in line with the Company’s target model range of 3% to 5%.
Taxes
The GAAP effective tax rate was 11.4% for the nine months ended
March 31, 2019. For long-term planning purposes, we assume a target
effective tax rate of 11% to 14%.
Net Income and Earnings Per Share
During the third quarter fiscal 2019, GAAP net income was $88.3 million
and non-GAAP net income was $88.9 million. This reflects an increase in
non-GAAP net income from the comparable prior year period by 16.9%,
primarily driven by a 13.8% increase in revenues and a higher gross
margin.
During the third quarter fiscal 2019, GAAP earnings per diluted share
were $1.25 and non-GAAP earnings per diluted share were $1.26. This
reflects an increase in non-GAAP earnings per diluted share from the
comparable prior year period by 28.6%, primarily driven by higher
non-GAAP net income and a reduction in non-GAAP diluted shares
outstanding.
Balance Sheet Items
Cash and Investments
Total cash and cash equivalents were $310.3 million as of March 31, 2019
compared with $666.7 million as of June 30, 2018. In addition, as of
March 31, 2019, we held $102.0 million in available-for-sale securities.
During the third quarter fiscal 2019, the Company repurchased 91,249
shares of common stock for $9.0 million at an average price of $98.63
per share.
DSOs
This quarter the Company experienced a decline in days sales outstanding
(DSOs) in accounts receivable of 51 days, as compared with 52 days in
the second quarter fiscal 2019.
Inventory
Finished goods inventory as of March 31, 2019 was $276.7 million,
representing an increase of $25.0 million from December 31, 2018 and an
increase of $180.0 million from June 30, 2018. Finished goods inventory
increased during both periods due to increased production of inventory
to satisfy expected demand for our products. We expect to manage our
finished goods inventory to meet demand, reduce lead times and secure
supply.
Cash Flow Statement Items
The Company’s net cash flow from operations for the nine months ended
March 31, 2019 was $158.3 million, compared with a net cash flow from
operations of $285.1 million for the comparable prior year period. The
$126.9 million decrease in operating cash flow for the nine months ended
March 31, 2019 as compared with the comparable prior year period was
primarily driven by the net impact of increased inventory and the
corresponding payables, partially offset by higher net income. For the
nine months ended March 31, 2019, the Company used $400.7 million of
cash for financing activities, which was driven by $328.1 million in
stock repurchases and $53.8 million in cash dividend payments.
Outlook
Based on recent business trends, the Company expects to achieve results
at the high end of the guidance range previously provided for the full
fiscal year ending June 30, 2019.
About Ubiquiti Networks
Ubiquiti Networks is focused on democratizing network technology on a
global scale — aggregate shipments of nearly 85 million devices play a
key role in creating networking infrastructure in over 200 countries and
territories around the world. Our professional networking products are
powered by our UNMS and UniFi software platforms to provide
high-capacity distributed Internet access and unified information
technology management, respectively.
Ubiquiti and the U logo are trademarks or registered trademarks of
Ubiquiti and/or its affiliates in the United States and other countries.
For more information, please visit www.ui.com.
Safe Harbor for Forward Looking Statements
Certain statements in this press release are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Statements other than statements of historical fact including
words such as “look”, “will”, “anticipate”, “believe”, “estimate”,
“expect”, “forecast”, “consider” and “plan” and statements in the future
tense are forward looking statements. The statements in this press
release that could be deemed forward-looking statements include
statements regarding expectations for financial results for the full
fiscal year 2019, and statements regarding expectations of the impact of
tariffs, expected impact of taxes on our liquidity and results of
operations, our cash position, expenses, DSOs, number of distributors
and resellers, shipments, the introduction of new consumer products,
Gross Margins, R&D, SG&A, tax rates, inventory turns, growth
opportunities, demand and long term global environment for our products,
new products, and financial performance estimates including revenues and
GAAP diluted EPS for the Company’s full fiscal year 2019, and any
statements or assumptions underlying any of the foregoing.
Forward-looking statements are subject to certain risks and
uncertainties that could cause our actual future results to differ
materially or cause a material adverse impact on our results. Potential
risks and uncertainties include, but are not limited to, the impact of
U.S. tariffs on results, fluctuations in our operating results; varying
demand for our products due to the financial and operating condition of
our distributors and their customers, and distributors’ inventory
management practices; political and economic conditions and volatility
affecting the stability of business environments, economic growth,
currency values, commodity prices and other factors that may influence
the ultimate demand for our products in particular geographies or
globally; impact of counterfeiting and our ability to contain such
impact; our reliance on a limited number of distributors; inability of
our contract manufacturers and suppliers to meet our demand; our
dependence on Qualcomm Atheros for chipsets without a short-term
alternative; as we move into new markets competition from certain of our
current or potential competitors who may be more established in such
markets; our ability to keep pace with technological and market
developments; success and timing of new product introductions by us and
the performance of our products generally; our ability to effectively
manage the significant increase in our transactional sales volumes; we
may become subject to warranty claims, product liability and product
recalls; that a substantial majority of our sales are into countries
outside the United States and we are subject to numerous U.S. export
control and economic sanctions laws; costs related to responding to
government inquiries related to regulatory compliance; our reliance on
the Ubiquiti Community; our reliance on certain key members of our
management team, including our founder and chief executive officer,
Robert J. Pera; adverse tax-related matters such as tax audits, changes
in our effective tax rate or new tax legislative proposals; whether the
final determination of our income tax liability may be materially
different from our income tax provisions; the impact of any intellectual
property litigation and claims for indemnification; litigation related
to U.S. Securities laws; and economic and political conditions in the
United States and abroad. We discuss these risks in greater detail under
the heading “Risk Factors” and elsewhere in our Annual Report on Form
10-K for the year ended June 30, 2018, and subsequent filings filed with
the U.S. Securities and Exchange Commission (the “SEC”), which are
available at the SEC’s website at www.sec.gov.
Copies may also be obtained by contacting the Ubiquiti Networks Investor
Relations Department, by email at [email protected]
or by visiting the Investor Relations section of the Ubiquiti Networks
website, http://ir.ui.com.
Given these uncertainties, you should not place undue reliance on these
forward-looking statements. Also, forward-looking statements represent
our management’s beliefs and assumptions only as of the date made.
Except as required by law, Ubiquiti Networks undertakes no obligation to
update information contained herein. You should review our SEC filings
carefully and with the understanding that our actual future results may
be materially different from what we expect.
|
Ubiquiti Networks, Inc. |
||||||||||||||||
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
|
|
2019 | 2018 | 2019 | 2018 | ||||||||||||
| Revenues | $ | 284,911 | $ | 250,404 | $ | 875,092 | $ | 747,083 | ||||||||
| Cost of revenues | 152,081 | 135,928 | 470,425 | 424,052 | ||||||||||||
| Gross profit | $ | 132,830 | $ | 114,476 | $ | 404,667 | $ | 323,031 | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 21,341 | 17,420 | 59,540 | 54,816 | ||||||||||||
| Sales, general and administrative | 9,352 | 12,186 | 33,715 | 30,203 | ||||||||||||
| Litigation settlement | — | — | 18,000 | — | ||||||||||||
| Total operating expenses | 30,693 | 29,606 | 111,255 | 85,019 | ||||||||||||
| Income from operations | 102,137 | 84,870 | 293,412 | 238,012 | ||||||||||||
| Interest expense and other, net | (3,447 | ) | (4,681 | ) | (9,186 | ) | (8,534 | ) | ||||||||
| Income before income taxes | 98,690 | 80,189 | 284,226 | 229,478 | ||||||||||||
| Income tax expense (benefit) | 10,390 | (22,550 | ) | 32,427 | 103,274 | |||||||||||
| Net income | $ | 88,300 | $ | 102,739 | $ | 251,799 | $ | 126,204 | ||||||||
| Net income per share of common stock: | ||||||||||||||||
| Basic | $ | 1.25 | $ | 1.34 | $ | 3.50 | $ | 1.61 | ||||||||
| Diluted | $ | 1.25 | $ | 1.32 | $ | 3.50 | $ | 1.58 | ||||||||
|
Weighted average shares used in computing |
||||||||||||||||
| Basic | 70,540 | 76,782 | 71,856 | 78,200 | ||||||||||||
| Diluted | 70,692 | 77,953 | 72,036 | 79,661 | ||||||||||||
| Other comprehensive income: | ||||||||||||||||
|
Unrealized gains on available-for-sale |
325 | — | 177 | — | ||||||||||||
| Comprehensive income | $ | 88,625 | $ | 102,739 | $ | 251,976 | $ | 126,204 | ||||||||
|
Ubiquiti Networks, Inc. Reconciliation of GAAP Net Income to Non-GAAP Net Income (In thousands, except per share data) (Unaudited) |
||||||||||||||||||||
| Three Months Ended | Nine Months Ended March 31, | |||||||||||||||||||
|
March 31, 2019 |
December 31, |
March 31, 2018 |
2019 | 2018 | ||||||||||||||||
| Net Income | $ | 88,300 | $ | 77,796 | $ | 102,739 | $ | 251,799 | $ | 126,204 | ||||||||||
| Stock-based compensation: | ||||||||||||||||||||
| Cost of revenues | 26 | 261 | 39 | 320 | 324 | |||||||||||||||
| Research and development | 555 | 497 | 527 | 1,519 | 1,353 | |||||||||||||||
| Sales, general and administrative | 171 | 21 | 166 | 467 | 747 | |||||||||||||||
|
Net Tax Benefits related to Equity Awards |
— | — | (27,419 | ) | — | (28,188 | ) | |||||||||||||
| Tax Reform Transition Tax | — | 2,765 | — | 2,765 | 112,798 | |||||||||||||||
| Litigation settlement | — | 18,000 | — | 18,000 | — | |||||||||||||||
| SEC Related matters | — | — | 317 | — | 317 | |||||||||||||||
| Tax effect of Non-GAAP adjustments | (177 | ) | (4,200 | ) | (325 | ) | (4,617 | ) | (932 | ) | ||||||||||
| Non-GAAP net income | $ | 88,875 | $ | 95,140 | $ | 76,044 | $ | 270,253 | $ | 212,623 | ||||||||||
| Non-GAAP diluted EPS | $ | 1.26 | $ | 1.33 | $ | 0.98 | $ | 3.75 | $ | 2.68 | ||||||||||
| Shares outstanding (Diluted) | 70,692 | 71,406 | 77,953 | 72,036 | 79,661 | |||||||||||||||
| Share adjustment (ASU 2016-09 Adoption) | — | — | (346 | ) | — | (433 | ) | |||||||||||||
|
Weighted-average shares used in Non-GAAP |
70,692 | 71,406 | 77,607 | 72,036 | 79,228 | |||||||||||||||
Use of Non-GAAP Financial Information
To supplement our condensed consolidated financial results prepared
under generally accepted accounting principles, or GAAP, we use non-GAAP
measures of net income and earnings per diluted share that are adjusted
to exclude certain costs, expenses and gains such as stock-based
compensation expense, net tax benefits related to equity awards
exercises and vesting, unusual litigation settlements, SEC related
matters, Tax Reform Transition Tax and the tax effects of these non-GAAP
adjustments.
Reconciliations of the adjustments to GAAP results for the periods
presented are provided above. In addition, an explanation of the ways in
which management uses non-GAAP financial information to evaluate its
business, the substance behind management’s decision to use this
non-GAAP financial information, material limitations associated with the
use of non-GAAP financial information, the manner in which management
compensates for those limitations, and the substantive reasons
management believes that this non-GAAP financial information provides
useful information to investors is included under the paragraphs below.
A reconciliation of non-GAAP guidance measures to corresponding GAAP
measures is not available on a forward-looking basis due to the high
variability and low visibility with respect to the charges which are
excluded from these non-GAAP measures. For example, share-based
compensation expense is impacted by the Company’s future price at which
the Company’s stock will trade in those future periods. The items that
are being excluded are difficult to predict and a reconciliation could
result in disclosure that would be imprecise or potentially misleading.
Material changes to any one of these items could have a significant
effect on our guidance and future GAAP results. Certain exclusions, such
as share-based compensation expenses, are generally incurred each
quarter, but the amounts have historically and may continue to vary
significantly from quarter to quarter.
Usefulness of Non-GAAP Financial Information to
Investors
We believe that the presentation of non-GAAP net income and non-GAAP
earnings per diluted share provides important supplemental information
regarding non-cash expenses, significant items that we believe are
important to understanding our financial, and business trends relating
to our financial condition and results of operations. Non-GAAP net
income and non-GAAP earnings per diluted share are among the primary
indicators used by management as a basis for planning and forecasting
future periods and by management and our board of directors to determine
whether our operating performance has met specified targets and
thresholds. Management uses non-GAAP net income and non-GAAP earnings
per diluted share when evaluating operating performance because it
believes that the exclusion of the items described below, for which the
amounts or timing may vary significantly depending upon the Company’s
activities and other factors, facilitates comparability of the Company’s
operating performance from period to period. We have chosen to provide
this information to investors so they can analyze our operating results
in the same way that management does and use this information in their
assessment of our business and the valuation of our Company.
About our Non-GAAP Net Income and Non-GAAP
Earnings per Diluted Share
We compute non-GAAP net income and non-GAAP earnings per diluted share
by adjusting GAAP net income and GAAP earnings per diluted share to
remove the impact of certain adjustments and the tax effect of those
adjustments. Items excluded from net income are:
- Stock-based compensation expense
- Net Tax Benefits related to Equity Awards Exercises and Vesting
- Litigation settlement
- Tax Reform Transition Tax
- SEC Related matters
- Tax effect of non-GAAP adjustments, applying the principles of ASC 740
These non-GAAP measures are not in accordance with, or an alternative
to, GAAP and may be materially different from other non-GAAP measures,
including similarly titled non-GAAP measures used by other companies.
The presentation of this additional information should not be considered
in isolation from, as a substitute for, or superior to, net income or
earnings per diluted share prepared in accordance with GAAP. Non-GAAP
financial measures have limitations in that they do not reflect certain
items that may have a material impact upon our reported financial
results.
For more information on the non-GAAP adjustments, please see the table
captioned “Reconciliation of GAAP Net Income to Non-GAAP Net Income”
included in this press release.
|
Ubiquiti Networks, Inc. Condensed Consolidated Balance Sheets (In thousands, except share amounts) (Unaudited) |
||||||
| March 31, 2019 | June 30, 2018 (1) | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 310,264 | $ | 666,681 | ||
| Investments — short-term | 61,325 | — | ||||
| Accounts receivable, net | 159,867 | 174,521 | ||||
| Inventories | 279,924 | 102,220 | ||||
| Vendor deposits | 23,721 | 39,029 | ||||
| Prepaid income taxes | 3,533 | — | ||||
| Prepaid expenses and other current assets | 22,513 | 18,901 | ||||
| Total current assets | 861,147 | 1,001,352 | ||||
| Property and equipment, net | 13,412 | 14,328 | ||||
| Deferred tax assets — long-term | 3,106 | 3,106 | ||||
| Investments — long-term | 40,668 | — | ||||
| Other long-term assets | 12,216 | 3,791 | ||||
| Total assets | $ | 930,549 | $ | 1,022,577 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 91,437 | $ | 14,098 | ||
| Income taxes payable | 14,751 | 5,780 | ||||
| Debt — short-term | 27,550 | 24,425 | ||||
| Other current liabilities | 37,331 | 68,613 | ||||
| Total current liabilities | 171,069 | 112,916 | ||||
| Income taxes payable — long-term | 123,034 | 127,719 | ||||
| Debt — long-term | 438,926 | 460,352 | ||||
| Other long-term liabilities | 9,420 | 5,842 | ||||
| Total liabilities | 742,449 | 706,829 | ||||
| Stockholders’ equity: | ||||||
| Common Stock | 71 | 74 | ||||
| Additional paid–in capital | 769 | 393 | ||||
| Accumulated other comprehensive income | 177 | — | ||||
| Retained earnings | 187,083 | 315,281 | ||||
| Total stockholders’ equity | 188,100 | 315,748 | ||||
| Total liabilities and stockholders’ equity | $ | 930,549 | $ | 1,022,577 | ||
(1) Derived from audited consolidated financial statements as of and
for the fiscal year ended June 30, 2018.
|
Ubiquiti Networks, Inc. Condensed Consolidated Cash Flows (In thousands) (Unaudited) |
||||||||
| Nine Months Ended March 31, | ||||||||
| 2019 | 2018 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net income | $ | 251,799 | $ | 126,204 | ||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization | 5,474 | 5,069 | ||||||
| Amortization of debt issuance costs | 836 | 473 | ||||||
| Premium amortization and (discount accretion), net | (555 | ) | — | |||||
| Write off unamortized debt issuance costs | — | 489 | ||||||
| Provision for inventory obsolescence | 2,995 | 2,447 | ||||||
| Provision/(recovery) for loss on vendor deposits | 2,333 | 15,050 | ||||||
| Stock-based compensation | 2,306 | 2,423 | ||||||
| Deferred Taxes | — | 2,300 | ||||||
| Other, net | (399 | ) | 148 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 14,888 | (17,902 | ) | |||||
| Inventories | (180,749 | ) | 46,462 | |||||
| Vendor deposits | 16,170 | (4,076 | ) | |||||
| Prepaid income taxes | (3,533 | ) | (10,332 | ) | ||||
| Prepaid expenses and other assets | (4,576 | ) | (6,850 | ) | ||||
| Accounts payable | 77,362 | 23,012 | ||||||
| Income taxes payable | 4,286 | 102,293 | ||||||
| Deferred revenues | 8,687 | 1,531 | ||||||
| Accrued and other liabilities | (39,070 | ) | (3,632 | ) | ||||
| Net cash provided by operating activities | 158,254 | 285,109 | ||||||
| Cash Flows from Investing Activities: | ||||||||
| Purchase of property and equipment and other long-term assets | (7,701 | ) | (7,318 | ) | ||||
| Private equity investment | (5,000 | ) | — | |||||
| Purchase of investments | (200,791 | ) | — | |||||
| Proceeds from sale of investments | 69,670 | — | ||||||
| Proceeds from maturities of investments | 29,831 | — | ||||||
| Net cash (used in) investing activities | (113,991 | ) | (7,318 | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
|
Proceeds from borrowing under the Second Amended & Restated Facility – Term |
— | 500,000 | ||||||
| Proceeds from borrowing under the Amended Credit Facility- Revolver | — | 218,500 | ||||||
| Repayment against Amended Credit Facility- Revolver | — | (399,500 | ) | |||||
| Repayment against Credit Facility | (18,750 | ) | (82,500 | ) | ||||
| Debt Issuance Costs | — | (5,186 | ) | |||||
| Repurchases of common stock | (328,078 | ) | (381,883 | ) | ||||
| Payment of common stock cash dividends | (53,770 | ) | — | |||||
| Proceeds from exercise of stock options | 810 | 1,118 | ||||||
| Tax withholdings related to net share settlements of stock options | — | (40,622 | ) | |||||
|
Tax withholdings related to net share settlements of restricted stock units |
(892 | ) | (1,110 | ) | ||||
| Net cash (used in) provided by financing activities | (400,680 | ) | (191,183 | ) | ||||
| Net (decrease) increase in cash and cash equivalents | (356,417 | ) | 86,608 | |||||
| Cash and cash equivalents at beginning of period | 666,681 | 604,198 | ||||||
| Cash and cash equivalents at end of period | $ | 310,264 | $ | 690,806 | ||||
| Supplemental Disclosure of Cash Flow Information: | ||||||||
| Income taxes paid, net of refunds | $ | 31,284 | $ | 18,944 | ||||
| Interest paid | $ | 18,228 | $ | 9,955 | ||||
| Non-Cash Investing and Financing Activities: | ||||||||
| Unpaid stock repurchases | $ | — | $ | 21,984 | ||||
| Unpaid property and equipment and other long-term assets | $ | 120 | $ | 180 | ||||
| Net unsettled investment purchases, sales and maturities | $ | (29 | ) | $ | — | |||
Contacts
Investor Relations
Laura Kiernan
High
Touch Investor Relations
[email protected]
Ph.
1-914-598-7733
Indivior
Indivior Provides Update on Aelis Farma’s Clinical Phase 2B Study Results with AEF0117 in Participants with Cannabis Use Disorder
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 (AS IT FORMS PART OF DOMESTIC LAW IN THE UK BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018).
- Primary and Secondary End Points of the Study were Not Met
- Indivior Does Not Currently Expect to Exercise AEF0117 Option
SLOUGH, United Kingdom and RICHMOND, Va., Sept. 4, 2024 /PRNewswire/ — Indivior PLC (Nasdaq/LSE: INDV) is today providing an update following Aelis Farma’s announcement of the results from its clinical Phase 2B trial with AEF01171, evaluating the efficacy and safety in treatment-seeking participants with moderate to severe Cannabis Use Disorder (CUD). The purpose of this trial was twofold: (1) to show that AEF0117 (0.1, 0.3, 1 mg once a day for 12 weeks) lowers cannabis use and (2) to determine the endpoints and optimal dosage of AEF0117 for use in future studies. In this phase 2B study, patients were treatment-seeking participants, 84% of whom had severe CUD.
The results of the study demonstrated that the primary endpoint, the proportion of participants who reduced their cannabis use to ≤1 day per week, as well as secondary endpoints measuring the proportion of participants reaching either complete abstinence or who used ≤2 day per week, were not met. Although these results are disappointing, they indicate that significant work remains to be done to understand subpopulations of patients with CUD, specifically those with severe CUD.
This clinical Phase 2B study is part of the strategic collaboration between Aelis Farma and Indivior, which includes an exclusive option for Indivior to license the global rights to AEF0117. Given the lack of separation from placebo on primary and secondary endpoints and before seeing further additional favorable clinical data, Indivior does not currently expect to exercise its option.
Important Cautionary Note Regarding Forward-Looking Statements
This news release contains certain statements that are forward-looking. Forward-looking statements include, among other things, express and implied statements regarding whether: we will be able to ultimately demonstrate the safety and efficacy of AEF0117, which is a prerequisite to filing any New Drug Application; we might ever exercise our option for AEF0117 and, if so, when; and other statements containing the words “believe,” “anticipate,” “plan,” “expect,” “intend,” “estimate,” “forecast,” “strategy,” “target,” “guidance,” “outlook,” “potential,” “project,” “priority,” “may,” “will,” “should,” “would,” “could,” “can,” “outlook,” “guidance,” the negatives thereof, and variations thereon and similar expressions. By their nature, forward-looking statements involve risks and uncertainties as they relate to events or circumstances that may or may not occur in the future.
Actual results may differ materially from those because they relate to future events. Various factors may cause differences between Indivior’s expectations and actual results, including, among others, the risks described in our most recent annual report on Form 20-F beginning on page 9 as filed with the U.S. SEC and in subsequent releases; legal and market restrictions that may limit how quickly we can repurchaser our shares; the substantial litigation and ongoing investigations to which we are or may become a party; our reliance on third parties to manufacture commercial supplies of most of our products, conduct our clinical trials and at times to collaborate on products in our pipeline; our ability to comply with legal and regulatory settlements, healthcare laws and regulations, requirements imposed by regulatory agencies and payment and reporting obligations under government pricing programs; risks related to the manufacture and distribution of our products, most of which contain controlled substances; market acceptance of our products as well as our ability to commercialize our products and compete with other market participants; competition; the uncertainties related to the development of new products, including through acquisitions, and the related regulatory approval process; our dependence on third-party payors for the reimbursement of our products and the increasing focus on pricing and competition in our industry; unintended side effects caused by the clinical study or commercial use of our products; our ability to successfully execute acquisitions, partnerships, joint ventures, dispositions or other strategic acquisitions; our ability to protect our intellectual property rights and the substantial cost of litigation or other proceedings related to intellectual property rights; the risks related to product liability claims or product recalls; the significant amount of laws and regulations that we are subject to, including due to the international nature of our business; macroeconomic trends and other global developments such as armed conflicts and pandemics; the terms of our debt instruments, changes in our credit ratings and our ability to service our indebtedness and other obligations as they come due; changes in applicable tax rate or tax rules, regulations or interpretations and our ability to realize our deferred tax assets; and volatility in our share price due to factors unrelated to our operating performance or that may result from the potential move of our primary listing to the U.S.
Forward-looking statements speak only as of the date that they are made and should be regarded solely as our current plans, estimates and beliefs. Except as required by law, we do not undertake and specifically decline any obligation to update, republish or revise forward-looking statements to reflect future events or circumstances or to reflect the occurrences of unanticipated events.
This release is being made by Kathryn Hudson, Company Secretary Indivior PLC.
About Indivior
Indivior is a global pharmaceutical company working to help change patients’ lives by developing medicines to treat substance use disorders (SUD), overdose and serious mental illnesses. Our vision is that all patients around the world will have access to evidence-based treatment for the chronic conditions and co-occurring disorders of SUD. Indivior is dedicated to transforming SUD from a global human crisis to a recognized and treated chronic disease.
Building on its global portfolio of OUD treatments, Indivior has a pipeline of product candidates designed to both expand on its heritage in this category and potentially address other chronic conditions and co-occurring disorders of SUD. Headquartered in the United States in Richmond, VA, Indivior employs over 1,000 individuals globally and its portfolio of products is available in over 30 countries worldwide. Visit www.indivior.com to learn more. Connect with Indivior on LinkedIn by visiting www.linkedin.com/company/indivior.
References:
- National Library of Medicine (U.S.) (2022, April). Effect of AEF0117 on treatment-seeking patients with cannabis use disorder (CUD) (SICA2). Identifier
NCT05322941 https://www.clinicaltrials.gov/study/NCT05322941
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HERZLIYA, Israel and CALGARY, Alberta, Aug. 29, 2024 /PRNewswire/ — Innocan Pharma Corporation (CSE: INNO) (FSE: IP4) (OTCQB: INNPF) (“Innocan” or the “Company”), a pioneer in the pharmaceutical and biotechnology industries, is pleased to announce that it has completed its previously announced non-brokered private placement offering of 5,025,725 units of the Company (the “Units”) at a price of C$0.22 per Unit for gross proceeds of C$1,105,659.50 (the “Offering”).
Each Unit is comprised of: (i) one (1) common share in the capital of the Company (each a “Common Share”); and (ii) one (1) common share purchase warrant (each a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of C$0.32 for a period of four (4) years from the date of issuance.
Innocan intends to use the proceeds of the Offering for working capital and general corporate purposes.
The securities issued to Canadian subscribers in connection with the Offering are subject to a hold period of four months and one day from the date of issuance, in accordance with applicable Canadian securities laws.
Iris Bincovich, Chief Executive Officer of the Company, stated “we are very pleased with our successful offering. I would like to extend my sincere gratitude to our investors for their unwavering support. We see this as a strong vote of confidence by both existing and new investors which demonstrates investor support of our vision and strategic direction. These new funds will provide us with additional working capital to enable us to capitalize on new opportunities and allow us to advance strongly on our growth plans.”
The Company is also pleased to announce that it has granted an aggregate of 300,000 stock options (each an “Option“) to certain consultants of the Company pursuant to the Company’s stock option plan (the “Plan“). Each Option may be exercised for one (1) common share in the capital of the Company (each, a “Share“) at a price of $0.25 per Share. The Options expire on August 27, 2029.
All Options granted vest in accordance with the following vesting schedule: (i) 1/3rd of the Options vested immediately at grant; (ii) 1/3rd of the Options will vest on February 28, 2025; and (iii) 1/3rd will vest on August 27, 2025; all subject to the terms and conditions of the Plan.
About Innocan Pharma:
Innocan is a pharmaceutical tech company that operates under two main segments: Pharmaceuticals and Consumer Wellness. In the Pharmaceuticals segment, Innocan focuses on developing innovative drug delivery platform technologies comprises with cannabinoids science, to treat various conditions to improve patients’ quality of life. This segment involves two drug delivery technologies: (i) LPT CBD-loaded liposome platform facilitating exact dosing and the prolonged and controlled release of CBD into the blood stream. The LPT delivery platform research is in the preclinical trial phase for two indications: Epilepsy and Pain Management. In the Consumer Wellness segment, Innocan develops and markets a wide portfolio of innovative and high-performance self-care products to promote a healthier lifestyle. Under this segment Innocan has established a Joint Venture by the name of BI Sky Global Ltd. that focuses developing on advanced targeted online sales. https://innocanpharma.com/
Contact Information:
For Innocan Pharma Corporation:
Iris Bincovich, CEO
+1 5162104025
+972-54-3012842
+442037699377
[email protected]
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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Cannabis
Europe Medical Cannabis Market Forecast 2024-2032: Tilray, Aurora Cannabis, and GW Pharmaceuticals Dominate the Market Landscape
Dublin, Aug. 29, 2024 (GLOBE NEWSWIRE) — The “Europe Medical Cannabis Oil Market Size, Industry Dynamics, Opportunity Analysis and Forecast 2024-2032.” report has been added to ResearchAndMarkets.com’s offering.
The Europe Medical Cannabis Oil market is poised for significant growth, projected to escalate from US$ 0.91 billion in 2023 to US$ 2.40 billion by 2032, advancing at a CAGR of 12.08%. In this comprehensive research report, the market is analyzed by:
- Derivatives;
- Source;
- Application;
- Route of Administration;
- End-user;
- Distribution Channel; and
- Country.
Market Highlights Identified in the Report
- Progressive legalization across Europe is creating a favorable regulatory environment, enhancing market expansion for medical cannabis oil products.
- Germany leads the market with a robust infrastructure and supportive regulations, while other countries like the UK, Italy, and Spain show significant growth potential based on evolving regulatory landscapes and market dynamics.
- Key players such as Tilray, Aurora Cannabis Inc., and GW Pharmaceuticals dominate the market, emphasizing research, strategic partnerships, and innovation to maintain competitive edge amidst evolving industry dynamics.
The medical cannabis oil market has experienced substantial growth as legalization and acceptance of cannabis-based treatments expand globally. Cannabis oil, derived from the cannabis plant through extraction methods, contains cannabinoids such as THC and CBD, known for their therapeutic properties. Increasing recognition of cannabis oil’s potential in alleviating symptoms of various medical conditions, including chronic pain, epilepsy, and anxiety disorders, has driven its adoption in medical settings.
Governments in several countries are progressively legalizing medical cannabis, creating a conducive regulatory environment for market expansion. Additionally, growing consumer awareness about alternative and natural therapies has fueled the demand for cannabis oil products. The market is characterized by diverse product offerings, including full-spectrum and CBD-isolate oils, catering to different therapeutic needs and preferences.
Despite regulatory challenges and stigma associated with cannabis, the medical cannabis oil market continues to evolve, driven by ongoing research, favorable legislative changes, and shifting attitudes toward cannabis-based therapies in healthcare.
Regional Insights
Germany is likely to maintain its leadership position in the European medical cannabis oil market due to its established infrastructure, supportive regulations, and strong healthcare system. Germany legalized medical cannabis in 2017, giving the market a head start compared to many other European countries. This established infrastructure and experience position Germany as a leader in the field. As awareness and acceptance of medical cannabis increase, the number of patients seeking treatment in Germany is steadily rising. This fuels market growth and incentivizes further investment in research and development.
Germany’s regulatory framework for medical cannabis is considered relatively patient-friendly compared to some other European countries. This facilitates access for patients with qualifying conditions. The UK legalized medical cannabis in 2018 and is experiencing an increase in patient access programs. This, coupled with ongoing research, could lead to significant market growth. Italy legalized medical cannabis in 2006 but has faced challenges with availability. As regulations become more streamlined and patient access expands, the Italian market holds significant growth potential. Spain has a well-established medical cannabis industry with a focus on domestic production. As regulations evolve and export opportunities increase, the Spanish market could see a boost.
Competitive Landscape
The Medical Cannabis Oil market is characterized by a vigorous competitive landscape, with prominent entities like Tilray, Aurora Cannabis Inc., GW Pharmaceuticals, Almiral, Bedrocan, and others at the forefront, collectively accounting for approximately 41 % of the overall market share. This competitive milieu is fueled by their intensive efforts in research and development as well as strategic partnerships and collaborations, underscoring their commitment to solidifying market presence and diversifying their offerings.
The primary competitive factors include pricing, product caliber, and technological innovation. As the Medical Cannabis Oil industry continues to expand, the competitive fervor among these key players is anticipated to intensify. The impetus for ongoing innovation and alignment with evolving customer preferences and stringent regulations is high. The industry’s fluidity anticipates an uptick in novel innovations and strategic growth tactics from these leading corporations, which in turn propels the sector’s comprehensive growth and transformation.
Key Topics Covered
Chapter 1. Research Framework
Chapter 2. Research Methodology
Chapter 3. Executive Summary: Europe Medical Cannabis Oil Market
Chapter 4. Europe Medical Cannabis Oil Market Overview
Chapter 5. Europe Medical Cannabis Oil Market Analysis, by Derivatives
Chapter 6. Europe Medical Cannabis Oil Market Analysis, by Source
Chapter 7. Europe Medical Cannabis Oil Market Analysis, by Application
Chapter 8. Europe Medical Cannabis Oil Market Analysis, by Route of Administration
Chapter 9. Europe Medical Cannabis Oil Market Analysis, by End-user
Chapter 10. Europe Medical Cannabis Oil Market Analysis, by Distribution Channel
Chapter 11. Europe Medical Cannabis Oil Market Analysis, by Country
Chapter 12. The UK Medical Cannabis Oil Market Analysis
Chapter 13. Germany Medical Cannabis Oil Market Analysis
Chapter 14. The Netherlands Medical Cannabis Oil Market Analysis
Chapter 15. Italy Medical Cannabis Oil Market Analysis
Chapter 16. Spain Medical Cannabis Oil Market Analysis
Chapter 17. Poland Medical Cannabis Oil Market Analysis
Chapter 18. Rest of Europe Medical Cannabis Oil Market Analysis
Chapter 19. Company Profiles (Company Overview, Financial Matrix, Key Product Landscape, Key Personnel, Key Competitors, Contact Address, and Business Strategy Outlook)
A selection of companies mentioned in this report includes, but is not limited to:
- Aurora Cannabis Inc.
- Bedrocan
- Biocann
- BIOTA Biosciences LLC
- Cannamedical
- Mary Jane CBD
- Sanity Group GmbH
- Tilray
- Valcon Medical
For more information about this report visit https://www.researchandmarkets.com/r/dh7q46
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
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