Actavis Announces 42% Increase to $2.01 in Second Quarter 2013 Non-GAAP Earnings Per Share

   Actavis Announces 42% Increase to $2.01 in Second Quarter 2013 Non-GAAP
                              Earnings Per Share

- GAAP Loss Per Share of $4.27 -

- 47% Increase in Q2 2013 Net Revenue -

- 42% Increase in Adjusted EBITDA to $475 million -

PR Newswire

PARSIPPANY, N.J., July 25, 2013

PARSIPPANY, N.J., July 25, 2013 /PRNewswire/ -- Actavis, Inc. (NYSE: ACT)
today reported net revenue increased 46.8 percent to $1.99 billion for the
second quarter 2013, compared to $1.36 billion in the second quarter 2012. On
a non-GAAP basis, diluted earnings per share for the second quarter 2013 were
$2.01, compared to $1.42 per diluted share in the second quarter 2012, an
increase of 41.5 percent. On a GAAP basis, the company reported a loss per
share for the second quarter 2013 of $4.27, compared to a loss per share of
$0.49 in the prior year period. The current quarter GAAP results include an
impairment charge following routine annual impairment testing. The accounting
related non-cash charge resulted from combining the Company's legacy Arrow
business, which was acquired in 2009, with the legacy Actavis Group, which was
acquired in 2012. The combined assets were subsequently restructured from one
global reporting unit into four new reporting units, resulting in an
impairment to goodwill within our European reporting unit.

For the second quarter 2013, adjusted EBITDA was $474.5 million, compared to
$333.0 million for the second quarter 2012. Cash and marketable securities
were $234.9 million as of June 30, 2013.

"Actavis delivered another exceptional quarter of double-digit sales and
earnings growth powered by strong generics launches in global markets by
Actavis Pharma, continued strong sales of core specialty Brand products and
consistent execution by our Global Operations team," said Paul Bisaro,
President and CEO of Actavis.

"In the U.S., we began marketing an authorized generic version of Zovirax^®
ointment 5%, as part of our marketing and distribution agreement with Valeant,
and re-launched Vestura ™, our generic version of Yaz^®. Outside of the U.S.,
Actavis Pharma achieved broad multi-country launches of generic versions of
Viagra^® and Zometa^® across Europe, a successful launch of generic Crestor^®
in Australia and continued to launch oncology injectable products around the
world with the launch of Docetaxel in Japan. We also announced U.S. patent
settlements for generic versions of Ziana^®, Zyclara^®, Intuniv^® and the
abuse deterrent version of OxyContin^®, ensuring consumers will benefit from
date certain entry of these products prior to patent expiry. We also confirmed
patent challenges on a number of products, including generic forms of
Safyral^®, Diprivan^® and AndroGel^® 1.62%.

"In our Actavis Specialty Brands business, we experienced growth from U.S.
sales of key promoted products, including Rapaflo^®, Generess^® Fe and
Crinone^®, while continuing to build our Specialty Brands pipeline for future
growth. We announced a unique partnership with Medicines360 that will provide
Actavis with U.S. and Canadian commercial rights to Levosert™, and acquired
worldwide rights to Valeant's Metronidazole 1.3% Vaginal Gel antibiotic
development product, a topical antibiotic for the treatment of bacterial
vaginosis. Both products are at the registration stage and, if approved,
could be launched as early as 2014.

"Most significantly, in May, we announced our intention to acquire Warner
Chilcott plc, a transaction that will create a leading global specialty
pharmaceutical company with approximately $11 billion in combined annual
revenue. The combination with Warner Chilcott will significantly expand our
portfolio and pipeline in core areas of Women's Health and Urology, and add
additional therapeutic categories of Dermatology and Gastroenterology. We are
aggressively planning for integration on Day 1, working with the Federal Trade
Commission (FTC) and other global regulators to receive approvals for the
transaction, and anticipate that we could close this acquisition as early as
the beginning of the fourth quarter.

"With our strong year-to-date performance, we are narrowing the range of our
forecast for 2013 Non-GAAP earnings per diluted share to $8.15 - $8.50."

Second Quarter 2013 Business Segment Results



Actavis Pharma Segment Information
                                    Three Months Ended    Six Months Ended
                                    June 30,              June 30,
(Unaudited; $ in millions)          2013       2012       2013       2012
Product sales                       $       $       $        $  
                                    1,525.5   976.0     3,049.6   2,084.0
Other revenue                       43.7       19.0       53.4       27.1
 Net revenue                    1,569.2    995.0      3,103.0    2,111.1
Operating expenses:
 Cost of sales                  776.8      517.4      1,638.7    1,131.6
 Research and development       103.7      53.8       202.5      109.9
 Selling and marketing          160.9      52.6       320.2      100.1
Segment contribution                $      $       $       $   
                                     527.8    371.2     941.6     769.5
Segment margin                      33.6%      37.3%      30.3%      36.5%
Adjusted gross profit ^(1)          $      $       $        $   
                                     814.6    468.3     1,597.1   971.9
Adjusted gross margin               51.9%      47.6%      51.3%      46.3%
^(1)Adjusted gross profit
represents adjusted net revenue
less adjusted cost of sales and
excludes amortization of acquired
intangibles. Pro forma adjustments
for the respective periods include
the following:
  Net revenue from milestone        $      $      $      $    
  related to divested products                            
                                      -     (10.9)     -        (10.9)
  Purchase accounting adjustments   0.8                   5.6
  (product sales)
  Manufacturing and supply contract
  termination payment (other        -          -          5.0        -
  revenue)
  Purchase accounting adjustments   -          -          93.5       -
  (cost of sales)
  Acquisition, integration and      0.3        -          1.3        -
  restructuring
  Operational Excellence Initiative 21.1       1.6        27.4       3.3



Actavis Pharma net revenue increased 58 percent to $1.57 billion for the
second quarter 2013, primarily due to the acquisition of the Actavis Group in
late 2012. Second quarter international net revenue was $649.8 million, up
209 percent from the prior year, also primarily a result of the inclusion of
legacy Actavis product sales. Net revenue consists of sales of generics,
branded generics and OTC products in the Americas (U.S., Canada and Latin
America), Europe (Europe, Russia, CIS and Turkey), and the Middle East,
Africa, Australia and Asia Pacific (collectively, MEAAP).

Actavis Pharma R&D investment for the second quarter 2013 increased to $103.7
million, and selling and marketing expenses for the second quarter 2013
increased to $160.9 million, primarily as a result of the inclusion of legacy
Actavis results.

Actavis Pharma's adjusted gross margin increased from 47.6 percent in the
second quarter of 2012 to 51.9 percent in the second quarter of 2013,
primarily due to Anda's distribution of Lidoderm^®, increased margins on our
generic version of Concerta^® as a result of our contractual arrangement with
Ortho-McNeil-Janssen and higher other revenue.



Specialty Brands Segment Information
                          Three Months Ended         Six Months Ended
                          June 30,                   June 30,
(Unaudited; $ in          2013          2012         2013         2012
millions)
Product sales             $        $         $         $   
                          126.9         100.9       243.1       193.8
Other revenue             17.9          18.4         32.4         35.1
  Net revenue             144.8         119.3        275.5        228.9
Operating expenses:
  Cost of sales           34.4          28.7         64.2         54.5
  Research and            31.9          25.9         65.2         58.3
  development
  Selling and marketing   47.0          42.5         90.6         90.2
Segment contribution      $        $        $        $    
                          31.5         22.2        55.5        25.9
Segment margin            21.8%         18.6%        20.1%        11.3%
Gross profit              $        $        $         $   
                          110.4         90.6        211.3       174.4
Gross margin              76.2%         75.9%        76.7%        76.2%

Actavis Specialty Brands net revenue increased 21 percent to $144.8 million in
the second quarter. The increase was primarily due to higher sales of key
promoted products including Generess^® Fe, Rapaflo^®, Crinone^® and the
addition of Kadian^®.

Actavis Specialty Brands R&D investment in the second quarter increased by
$6.0 million to $31.9 million. The increase was primarily related to
investments in our biosimilar development programs. Actavis Specialty Brands
selling and marketing expenses increased by $4.5 million to $47.0 million in
the second quarter, primarily due to higher product promotional spending.

Actavis Specialty Brands segment gross margin for the second quarter 2013 was
76.2 percent, compared to 75.9 percent in the second quarter of 2012.

Distribution Segment Information
                         Three Months Ended          Six Months Ended
                         June 30,                    June 30,
(Unaudited; $ in         2013          2012          2013         2012
millions)
Net revenue              $        $          $         $   
                         275.8         240.9        506.8       539.5
Operating expenses:
   Cost of sales         238.8         207.9         433.3        472.2
   Selling and marketing 27.7          22.8          52.0         45.7
Segment contribution     $        $         $        $    
                          9.3        10.2         21.5        21.6
Segment margin           3.4%          4.2%          4.2%         4.0%
Gross profit             $        $         $        $    
                         37.0         33.0         73.5        67.3
Gross margin             13.4%         13.7%         14.5%        12.5%

Anda Distribution segment net revenue for the second quarter 2013 increased 14
percent to $275.8 million, compared to $240.9 million in the second quarter
2012, as a result of increased sales of third-party brand products and higher
sales to chain customers. Anda Distribution segment revenue consists only of
sales of third-party products and excludes sales of Actavis' brand and generic
products.

Anda Distribution segment gross margin was 13.4 percent in the second quarter
of 2013.

Other Operating Expenses

Consolidated GAAP general and administrative expenses were $225.8 million in
the second quarter 2013, an increase of $104.0 million from the second quarter
2012 as a result of the inclusion of Legacy Actavis and related acquisition,
integration and restructuring charges associated with that acquisition. The
Company also incurred higher charges related to litigation matters.

Amortization expense for the second quarter 2013 was $149.6 million, compared
to $105.8 million in second quarter 2012 primarily as a result of amortization
of identifiable intangible assets acquired in the Actavis Group acquisition
partially offset by product rights and other intangible assets which were
fully amortized prior to the current period, including the atorvastatin
product rights.

2013 Financial Outlook

Actavis' estimates are based on actual results for the second quarter of 2013
and management's current belief about prescription trends, pricing levels,
inventory levels and the anticipated timing of future product launches and
events.

Actavis estimates total net revenue for 2013 of approximately $8.1 billion.

  oTotal Actavis Pharma segment revenue of between $6.3 billion and $6.5
    billion.
  oTotal Actavis Specialty Brands segment revenue of between $550 million and
    $600 million.
  oTotal Anda Distribution segment revenue of between $1.0 billion and $1.2
    billion.
  oAdjusted non-GAAP earnings for 2013 is expected to be between $8.15 and
    $8.50 per diluted share.
  oAdjusted EBITDA for 2013 is expected to be between $1.96 billion and $2.03
    billion.

Webcast and Conference Call Details

Actavis will host a conference call and webcast today at 8:30 a.m. Eastern
Daylight Time to discuss second quarter 2013 results, the outlook for 2013 and
recent corporate developments. The dial-in number to access the call is
US/Canada (877) 251-7980, International (706) 643-1573. The Conference ID
is 12382077.

A taped replay of the conference call will also be available beginning
approximately two hours after the call's conclusion and will remain available
through 12:00 midnight Eastern Time on August 8, 2013. The replay may be
accessed by dialing (855) 859-2056 and entering pass code 12382077. From
international locations, the replay may be accessed by dialing (404) 537-3406
and entering the same pass code. To access the webcast, go to Actavis'
Investor Relations Web site at http://ir.actavis.com. A replay of the webcast
will also be available.

About Actavis

Actavis, Inc. (NYSE: ACT) is a global, integrated specialty pharmaceutical
company focused on developing, manufacturing and distributing generic, brand
and biosimilar products. Actavis has global headquarters in Parsippany, New
Jersey, USA.

Operating as Actavis Pharma, Actavis develops, manufactures and markets
generic, branded generic, legacy brands and Over-the-Counter (OTC) products in
more than 60 countries. Actavis Specialty Brands is Actavis' global branded
specialty pharmaceutical business focused in the Urology and Women's Health
therapeutic categories. Actavis Specialty Brands also has a portfolio of five
biosimilar products in development in Women's Health and Oncology. Actavis
Global Operations has more than 30 manufacturing and distribution facilities
around the world, and includes Anda, Inc., a U.S. pharmaceutical product
distributor.

For press release and other company information, visit Actavis' Web site at
http://www.actavis.com.

Important Information For Investors And Shareholders

This press release does not constitute an offer to sell or the solicitation of
an offer to buy any securities or a solicitation of any vote or approval. New
Actavis has filed with the SEC a registration statement on Form S-4 containing
a preliminary joint proxy statement of Warner Chilcott and Actavis that also
constitutes a preliminary prospectus of New Actavis. The registration
statement has not been declared effective by the SEC. After the registration
statement has been declared effective, each of Actavis and Warner Chilcott
will mail to its stockholders or shareholders a definitive proxy
statement/prospectus. In addition, each of New Actavis, Actavis and Warner
Chilcott will file with the SEC other documents with respect to the proposed
transaction. INVESTORS AND SECURITY HOLDERS OF ACTAVIS AND WARNER CHILCOTT
ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT/PROSPECTUS AND OTHER
DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY
WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Investors and security holders may obtain free copies of the registration
statement and the proxy statement/prospectus and other documents filed with
the SEC by New Actavis, Actavis and Warner Chilcott through the website
maintained by the SEC at http://www.sec.gov. Copies of the documents filed
with the SEC by New Actavis and Actavis may be obtained free of charge on
Actavis's internet website at www.actavis.com or by contacting Actavis's
Investor Relations Department at (862) 261-7488. Copies of the documents filed
with the SEC by Warner Chilcott may be obtained free of charge on Warner
Chilcott's internet website at www.wcrx.com or by contacting Warner Chilcott's
Investor Relations Department at (973) 442-3200.

Actavis, Warner Chilcott, their respective directors and certain of their
executive officers may be considered participants in the solicitation of
proxies in connection with the proposed transaction. Information about the
directors and executive officers of Warner Chilcott is set forth in its Annual
Report on Form 10-K for the year ended December 31, 2012, which was filed with
the SEC on February 22, 2013, its Quarterly Report on Form 10-Q for the
quarter ended March 31, 2013, which was filed with the SEC on May 10, 2013,
its proxy statement for its 2013 annual meeting of stockholders, which was
filed with the SEC on April 5, 2013, and its Current Reports on Form 8-K that
were filed with the SEC on May 2, 2013 and May 8, 2013. Information about the
directors and executive officers of Actavis is set forth in its Annual Report
on Form 10-K for the year ended December 31, 2012, which was filed with the
SEC on February 28, 2013, its Quarterly Report on Form 10-Q for the quarter
ended March 31, 2013, which was filed with the SEC on May 7, 2013, its proxy
statement for its 2013 annual meeting of stockholders, which was filed with
the SEC on March 29, 2013, and its Current Reports on Form 8-K that were filed
with the SEC on January 29, 2013 and May 13, 2013. Other information
regarding the participants in the proxy solicitations and a description of
their direct and indirect interests, by security holdings or otherwise, are
contained in the preliminary proxy statement/prospectus filed with the SEC and
will be contained in the definitive proxy statement/prospectus and other
relevant materials to be filed with the SEC when they become available.

Actavis Cautionary Statement Regarding Forward-Looking Statements

Statements contained in this press release that refer to non-historical facts
are forward-looking statements that reflect Actavis' current perspective of
existing information as of the date of this release. It is important to note
that Actavis' goals and expectations are not predictions of actual
performance. Actual results may differ materially from Actavis' current
expectations depending upon a number of factors, risks and uncertainties
affecting Actavis' business. These factors include, among others, the inherent
uncertainty associated with financial projections; restructuring in connection
with, and successful close of, Actavis' acquisition of Warner Chilcott (the
"Acquisition"); subsequent integration of the Acquisition and the ability to
recognize the anticipated synergies and benefits of the Acquisition; the
receipt of required regulatory approvals for the Acquisition (including the
approval of antitrust authorities necessary to complete the Acquisition); the
anticipated size of the markets and continued demand for Actavis' and Warner
Chilcott's products; the impact of competitive products and pricing; access to
available financing (including financing for the Acquisition or refinancing of
Actavis or Warner Chilcott debt) on a timely basis and on reasonable terms;
maintaining a position in the Standard & Poor's 500; the risks of fluctuations
in foreign currency exchange rates; the risks and uncertainties normally
incident to the pharmaceutical industry, including product liability claims
and the availability of product liability insurance on reasonable terms; the
difficulty of predicting the timing or outcome of pending or future litigation
or government investigations; periodic dependence on a small number of
products for a material source of net revenue or income; variability of trade
buying patterns; changes in generally accepted accounting principles; risks
that the carrying values of assets may be negatively impacted by future events
and circumstances; the timing and success of product launches; the difficulty
of predicting the timing or outcome of product development efforts and
regulatory agency approvals or actions, if any; costs and efforts to defend or
enforce intellectual property rights; difficulties or delays in manufacturing;
the availability and pricing of third party sourced products and materials;
successful compliance with governmental regulations applicable to Actavis' and
Warner Chilcott's manufacturers, facilities, products and/or businesses;
changes in the laws and regulations affecting, among other things, pricing and
reimbursement of pharmaceutical products; changes in tax laws or
interpretations that could increase Actavis' consolidated tax liabilities; the
loss of key senior management or scientific staff; and such other risks and
uncertainties detailed in Actavis' periodic public filings with the SEC
including but not limited to Actavis' Quarterly Report on Form 10-Q for the
quarter ended March 31, 2013 and Actavis' Annual Report on Form 10-K for the
year ended December 31, 2012, as well as the Form S-4. Except as expressly
required by law, Actavis disclaims any intent or obligation to update these
forward-looking statements.

Statement Required by the Irish Takeover Rules

The earnings guidance contained in this announcement constitutes a profit
forecast for the purposes of the Irish Takeover Rules. In accordance with Rule
28.4 of the Irish Takeover Rules, this profit forecast shall be repeated in
the S-4 Registration Statement and the reports required by Rule 28.3 shall be
mailed to Warner Chilcott shareholders with the S-4 Registration Statement.

The directors of Actavis accept responsibility for the information contained
in this announcement other than that relating to Warner Chilcott and its
Associates and the directors of Warner Chilcott and members of their immediate
families, related trusts and persons connected with them. To the best of the
knowledge and belief of the directors of Actavis (who have taken all
reasonable care to ensure that such is the case), the information contained in
this announcement for which they accept responsibility is in accordance with
the facts and does not omit anything likely to affect the import of such
information.

The directors of Warner Chilcott accept responsibility for the information
contained in this announcement relating to Warner Chilcott and its Associates
and the directors of Warner Chilcott and members of their immediate families,
related trusts and persons connected with them. To the best of the knowledge
and belief of the directors of Warner Chilcott (who have taken all reasonable
care to ensure such is the case), the information contained in this
announcement for which they accept responsibility is in accordance with the
facts and does not omit anything likely to affect the import of such
information.

BofA Merrill Lynch and Greenhill & Co. are acting exclusively for Actavis and
no one else in connection with the matters referred to in this announcement
and will not be responsible to anyone other than Actavis for providing the
protections afforded to clients of BofA Merrill Lynch or Greenhill & Co and
for providing advice in relation to the acquisition of Warner Chilcott, the
contents of this announcement or any transaction or arrangement referred to
herein.

Deutsche Bank Securities Inc. is acting for Warner Chilcott as financial
advisor and is not acting as financial advisor to anyone else in connection
with the matters referred to in this announcement and will not be responsible
to anyone other than Warner Chilcott in connection therewith for providing
advice in relation to the matters referred to in this announcement. Deutsche
Bank Securities Inc. has delegated certain of its financial advisory functions
and responsibilities to Deutsche Bank AG, acting through its London branch.
Deutsche Bank AG, acting through its London branch is performing such
delegated functions and responsibilities exclusively for Warner Chilcott and
is not acting as a financial adviser for any other person in connection with
the matters referred to in this announcement and will not be responsible to
any such other person for providing advice in relation to the matters referred
to in this announcement. Deutsche Bank AG is authorised under German Banking
Law (competent authority: BaFin – Federal Financial Supervisory Authority) and
authorised and subject to limited regulation by the Financial Conduct
Authority. Details about the extent of Deutsche Bank AG's authorization and
regulation by the Financial Conduct Authority are available on request.

Dealing Disclosure Requirements

Under the provisions of Rule 8.3 of the Irish Takeover Panel Act, 1997,
Takeover Rules 2007, as amended (the "Irish Takeover Rules"), if any person
is, or becomes, 'interested' (directly or indirectly) in, 1% or more of any
class of 'relevant securities' of Warner Chilcott or Actavis, all 'dealings'
in any 'relevant securities' of Warner Chilcott or Actavis (including by means
of an option in respect of, or a derivative referenced to, any such 'relevant
securities') must be publicly disclosed by not later than 3:30 p.m. (Dublin
time) on the business day following the date of the relevant transaction. This
requirement will continue until the date on which the Scheme becomes effective
or on which the 'offer period' otherwise ends. If two or more persons
co-operate on the basis of any agreement, either express or tacit, either oral
or written, to acquire an 'interest' in 'relevant securities' of Warner
Chilcott or Actavis, they will be deemed to be a single person for the purpose
of Rule 8.3 of the Irish Takeover Rules.

Under the provisions of Rule 8.1 of the Irish Takeover Rules, all 'dealings'
in 'relevant securities' of Warner Chilcott by Actavis or 'relevant
securities' of Actavis by Warner Chilcott, or by any of their respective
'associates' must also be disclosed by no later than 12 noon (Dublin time) on
the 'business' day following the date of the relevant transaction.

A disclosure table, giving details of the companies in whose 'relevant
securities' 'dealings' should be disclosed, can be found on the Irish Takeover
Panel's website at www.irishtakeoverpanel.ie.

'Interests in securities' arise, in summary, when a person has long economic
exposure, whether conditional or absolute, to changes in the price of
securities. In particular, a person will be treated as having an 'interest' by
virtue of the ownership or control of securities, or by virtue of any option
in respect of, or derivative referenced to, securities.

Terms in quotation marks are defined in the Irish Takeover Rules, which can
also be found on the Irish Takeover Panel's website. If you are in any doubt
as to whether or not you are required to disclose a dealing under Rule 8,
please consult the Irish Takeover Panel's website at www.irishtakeoverpanel.ie
or contact the Irish Takeover Panel on telephone number +353 1 678 9020 or fax
number +353 1 678 9289.

General

The release, publication or distribution of this announcement in or into
certain jurisdictions may be restricted by the laws of those jurisdictions.
Accordingly, copies of this announcement and all other documents relating to
the Acquisition are not being, and must not be, released, published, mailed or
otherwise forwarded, distributed or sent in, into or from any Restricted
Jurisdiction. Persons receiving such documents (including, without limitation,
nominees, trustees and custodians) should observe these restrictions. Failure
to do so may constitute a violation of the securities laws of any such
jurisdiction. To the fullest extent permitted by applicable law, the companies
involved in the proposed Acquisition disclaim any responsibility or liability
for the violations of any such restrictions by any person.

Any response in relation to the Acquisition should be made only on the basis
of the information contained in the Scheme Circular or any document by which
the Acquisition and the Scheme are made. Actavis Shareholders and Warner
Chilcott Shareholders are advised to read carefully the formal documentation
in relation to the proposed transaction once the Scheme Circular has been
dispatched.

The following table presents Actavis' results of operations for the three and
six months ended June 30, 2013 and 2012:



                                                                   Table 1
ACTAVIS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)
                            Three Months Ended        Six Months Ended
                            June 30,                  June 30,
                            2013         2012         2013         2012
Net revenues                $       $       $       $     
                              1,989.8    1,355.2    3,885.3    2,879.5
Operating expenses:
 Cost of sales (excludes
 amortization, presented    1,050.0      754.0        2,136.2      1,658.3
 below)
 Research and development   135.6        79.7         267.7        168.2
 Selling, general and       461.4        239.7        874.4        522.2
 administrative
 Amortization               149.6        105.8        308.0        237.7
 Loss on asset sales,
 impairments, and           655.3        79.8         803.3        80.0
 contingent consideration
 adjustments, net
      Total operating       2,451.9      1,259.0      4,389.6      2,666.4
      expenses
Operating income (loss)     (462.1)      96.2         (504.3)      213.1
Non-operating income
(expense):
 Interest income            1.2          0.5          2.0          0.9
 Interest expense           (56.1)       (21.0)       (110.6)      (42.7)
 Other income (expense),    3.8          (156.6)      24.4         (155.1)
 net
      Total other income    (51.1)       (177.1)      (84.2)       (196.9)
      (expense), net
Income (loss) before
income taxes and            (513.2)      (80.9)       (588.5)      16.2
noncontrolling interests
Provision (benefit) for     51.4         (18.7)       79.6         23.6
income taxes
Net income (loss)           (564.6)      (62.2)       (668.1)      (7.4)
 Income (loss)
 attributable to            0.2          -            (0.5)        -
 noncontrolling interests
Net income (loss)           $       $       $       $     
attributable to common                                       
shareholders                (564.8)      (62.2)       (667.6)      (7.4)
Earnings (loss) per share
attributable to common
shareholders:
                            $       $       $       $     
 Basic                                                    
                            (4.27)       (0.49)       (5.09)       (0.06)
                            $       $       $       $     
 Diluted                                                  
                            (4.27)       (0.49)       (5.09)       (0.06)
Weighted average shares
outstanding:
 Basic                      132.2        125.8        131.2        125.5
 Diluted                    132.2        125.8        131.2        125.5



The following table presents Actavis' Condensed Consolidated Balance Sheets at
June 30, 2013 and December 31, 2012.



                                                           Table 2
ACTAVIS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
                                     June 30,              December 31,
                                     2013                  2012
Assets
 Cash and cash equivalents           $              $       
                                     226.9                 319.0
 Marketable securities               8.0                   9.0
 Accounts receivable, net           1,372.3               1,330.9
 Inventories, net                    1,601.9               1,546.5
 Other current assets                706.9                 632.9
 Property and equipment, net         1,417.7               1,485.0
 Investments and other assets        177.8                 153.0
 Product rights and other            3,856.6               3,784.3
 intangibles, net
 Goodwill                            4,192.5               4,854.2
        Total assets                 $     13,560.6   $     14,114.8
Liabilities & Equity
 Current liabilities                 $      2,389.0  $     
                                                           2,749.3
 Long-term debt                      6,173.9               6,257.1
 Deferred income taxes and other     1,456.7               1,252.0
 liabilities
 Total equity                        3,541.0               3,856.4
        Total liabilities and        $     13,560.6   $     14,114.8
        equity



The following table presents Actavis' Condensed Consolidated Statements of
Cash Flows for the sixmonths endedJune 30, 2013 and 2012.

                                                               Table 3
ACTAVIS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
                                                Six Months Ended
                                                June 30,
                                                2013           2012
Cash Flows From Operating Activities:
Net income (loss)                               $         $       
                                                (668.1)        (7.4)
Reconciliation to net cash provided by
operating activities:
  Depreciation                                  97.6           40.5
  Amortization                                  308.0          237.7
  Provision for inventory reserve               29.5           26.9
  Share-based compensation                      26.3           23.9
  Deferred income tax benefit                   (137.5)        (108.4)
  Earnings (losses) on equity method            (1.7)          (1.1)
  investments
  Loss on asset sales and impairment, net      653.0          101.3
  Amortization of inventory step-up             93.5
  Loss on foreign exchange derivatives          -              142.7
  Amortization of deferred financing costs      3.8            13.3
  Increase in allowance for doubtful accounts   (1.0)          1.6
  Accretion of preferred stock and contingent   1.4            14.9
  consideration obligations
  Contingent consideration fair value           150.3          (21.3)
  adjustment
  Excess tax benefit from stock-based           (14.2)         (9.9)
  compensation
  Other, net                                    1.2            2.5
  Changes in assets and liabilities (net of
  effects of acquisitions):
        Accounts receivable, net                (46.1)         310.9
        Inventories                             (215.0)        14.7
        Prepaid expenses and other current      21.2           (25.9)
        assets
        Accounts payable and accrued expenses   (18.5)         (355.4)
        Deferred revenue                        22.8           (5.4)
        Income and other taxes payable          (19.8)         (98.4)
        Other assets and liabilities            4.3            2.4
        Total adjustments                       959.1          307.5
        Net cash provided by operating          291.0          300.1
        activities
Cash Flows From Investing Activities:
Additions to property and equipment             (73.8)         (53.3)
Additions to product rights and other           (2.4)          (3.6)
intangibles
Proceeds from sales of property and equipment   5.9            7.4
Proceeds from sales of marketable securities    11.9           8.9
and other investments
Additions to marketable securities and other    -              (0.2)
investments
Acquisition of businesses, net of cash          (194.6)        (383.5)
acquired
Other investing activities, net                 -              -
        Net cash used in investing activities   (253.0)        (424.3)
Cash Flows From Financing Activities:
Proceeds from borrowings on credit facility     125.0          375.0
Debt issuance costs                             -              (25.5)
Principal payments on debt                      (216.7)        (125.3)
Proceeds from stock plans                       5.5            10.9
Payment of contingent consideration             (2.2)          (90.1)
Repurchase of common stock                      (22.5)         (13.7)
Acquisition of noncontrolling interests         (10.4)         (4.7)
Excess tax benefit from stock-based             14.2           9.9
compensation
        Net cash provided by financing          (107.1)        136.5
        activities
Effect of currency exchange rate changes on     (23.0)         (4.0)
cash and cash equivalents
        Net increase (decrease) in cash and    (92.1)         8.3
        cash equivalents
Cash and cash equivalents at beginning of       319.0          209.3
period
Cash and cash equivalents at end of period      $        $      
                                                226.9          217.6



The following table presents a reconciliation of reported net income and
diluted earnings per share to non-GAAP net income and diluted earnings per
share for the three and six months ended June 30, 2013 and 2012:



                                                                    Table 4
Actavis, Inc.
Reconciliation Table
(Unaudited; in millions except per share amounts)
                                 Three Months Ended      Six Months Ended
                                 June 30,                June 30,
                                 2013         2012       2013       2012
GAAP to non-GAAP net income
calculation
     Reported GAAP net income    $        $       $      $    
     (loss) attributable         (564.8)      (62.2)     (667.6)    (7.4)
     tocommon shareholders
     Adjusted for:
      Amortization       149.8        106.0      308.4      238.1
      Global supply      23.6         2.4        32.0       5.0
     chain initiative^(1)
      Acquisition and    26.9         185.5      297.2      211.1
     licensing charges
      Interest
     accretion on contingent     1.0          7.4        1.4        15.2
     liabilities
      Non-cash           655.3        79.8       653.0      80.0
     impairment/asset sales
      Non-recurring      -            (13.9)     (10.2)     (15.4)
     (gains) losses
      Legal settlements  25.5         -          30.8       59.8
      Income taxes on    (47.7)       (123.6)    (108.8)    (196.2)
     items above
     Non-GAAP net income         $       $       $      $   
     attributable tocommon      269.6        181.4       536.2    390.2
     shareholders
Diluted earnings (loss) per
share
     Diluted earnings (loss)     $       $       $      $   
     per share - GAAP           (4.27)       (0.49)      (5.09)   (0.06)
     Diluted earnings per share  $       $      $      $    
     - Non-GAAP                   2.01       1.42         4.03   3.06
     Basic weighted average      132.2        125.8      131.2      125.5
     common shares outstanding
     Effect of dilutive
     securities:
      Dilutive share-based     1.9          1.8        2.0        1.9
     compensation arrangements
     Diluted weighted average    134.1        127.6      133.2      127.4
     common shares outstanding
^(1) Includes accelerated depreciation charges.

The following table presents a reconciliation of reported net income for the
three and six months ended June 30, 2013 and 2012 to adjusted EBITDA:



                                                                     Table 5
Actavis, Inc.
Adjusted EBITDA Reconciliation Table
(Unaudited; in millions)
                                        Three Months Ended  Six Months Ended
                                        June 30,            June 30,
                                        2013       2012     2013     2012
GAAP net income (loss) attributable to  $       $     $     $    
common shareholders                     (564.8)    (62.2)  (667.6)  (7.4)
Plus:
      Interest expense                  56.1       21.0     110.6    42.7
      Interest income                   (1.2)      (0.5)    (2.0)    (0.9)
      Provision (benefit) for income    51.4       (18.7)   79.6     23.6
      taxes
      Depreciation (includes            50.2       20.1     97.6     40.5
      accelerated depreciation)
      Amortization^(1)                  149.8      106.0    308.4    238.1
EBITDA                                  (258.5)    65.7     (73.4)   336.6
Adjusted for:
      Global supply chain initiative    13.1       2.0      14.4     4.1
      Acquisition and licensing         26.9       185.3    297.2    210.9
      charges
      Non-cash impairment charges       655.3      79.8     653.0    80.0
      Non-recurring (gains) losses      -          (13.9)   (10.2)   (15.4)
      Legal settlements                 25.5       -        30.8     59.8
      Accretion (income) expense        -          0.5      -        0.4
      Share-based compensation          12.2       13.6     26.3     23.9
Adjusted EBITDA                         $       $     $     $   
                                        474.5     333.0    938.1   700.3
^(1) Includes amortization of excess purchase price on equity method
investment.

The following table presents a reconciliation of forecasted net income for the
twelve months ending December 31, 2013 to non-GAAP net income and non-GAAP
earnings per diluted share:

                                                             Table 6
Actavis, Inc.
Reconciliation Table - Forecasted Non-GAAP Earnings Per Diluted Share
(Unaudited; in millions)
                                          Forecast for Twelve Months Ending
                                          December 31, 2013
                                          Low                High
GAAP to Non-GAAP net income calculation
 GAAP net income                          $      (376)  $      (329)
 Adjusted for:
  Amortization                   607                607
  Global supply chain initiative  52                 52
  Acquisition and licensing       325                325
 charges^
  Interest accretion on           5                  5
 contingent liability^
  Non-cash impairment charges    653                653
  Non-recurring (gains) losses   (10)               (10)
  Legal settlements              31                 31
  Income taxes on items above     (193)              (193)
 Adjusted Non-GAAP net income             1,094              1,141
Diluted earnings per share
 Earnings per share - GAAP               $     (2.84)  $     (2.48)
 Diluted earnings per share - Non-GAAP    $      8.15   $      8.50
 Basic weighted average common shares     132.5              132.5
 outstanding
 Diluted weighted average common shares   134.2              134.2
 outstanding

The reconciliation table is based in part on management's estimate of
non-GAAP net income for the year ending December 31, 2013. Actavis expects
certain known GAAP charges for 2013, as presented in the schedule above.
Other GAAP charges that may be excluded from non-GAAP net income are possible,
but their amounts are dependent on numerous factors that we currently cannot
ascertain with sufficient certainty or are presently unknown. These GAAP
charges are dependent upon future events and valuations that have not yet been
performed.

The following table presents a reconciliation of forecasted net income for the
twelve months ending December 31, 2013 to adjusted EBITDA:



                                                             Table 7
Actavis, Inc.
Reconciliation Table - Forecasted Adjusted EBITDA
(Unaudited; in millions)
                                          Forecast for Twelve Months
                                          Ending December 31, 2013
                                          Low                High
 GAAP net income                          $      (376)  $      (329)
 Plus:
       Interest expense                   220                220
       Interest income                    (3)                (3)
       Provision for income taxes         225                254
       Depreciation (includes accelerated 205                205
       depreciation)
       Amortization                       607                607
 EBITDA                                   878                954
 Adjusted for:
       Global supply chain initiative     18                 18
       Acquisition and licensing charges  327                327
       Non-cash impairment charges^      653                653
       Non-recurring (gains) losses      (10)               (10)
       Legal settlements                  31                 31
       Share-based compensation           58                 57
 Adjusted EBITDA                          $     1,955   $     2,030

The reconciliation table is based in part on management's estimate of adjusted
EBITDA for the year ending December 31, 2013. Actavis expects certain known
GAAP charges for 2013, as presented in the schedule above. Other GAAP charges
that may be excluded from estimated EBITDA are possible, but their amounts are
dependent on numerous factors that we currently cannot ascertain with
sufficient certainty or are presently unknown. These GAAP charges are
dependent upon future events and valuations that have not yet been performed.

CONTACTS:

Investors:
Lisa DeFrancesco
(862) 261-7152

Media:
Charlie Mayr
(862) 261-8030

(Logo: http://photos.prnewswire.com/prnh/20130124/NY47381LOGO )

SOURCE Actavis, Inc.

Website: http://www.actavis.com
 
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