Jazz Pharmaceuticals Announces Third Quarter 2013 Financial Results

     Jazz Pharmaceuticals Announces Third Quarter 2013 Financial Results

  PR Newswire

  DUBLIN, Nov. 5, 2013

-- Company Reports Total Revenues of $232 Million Driven by Strong Sales of
Xyrem and Erwinaze

-- Adjusted EPS of $1.78; GAAP EPS of $1.23

DUBLIN, Nov. 5, 2013 /PRNewswire/ -- Jazz Pharmaceuticals plc (Nasdaq: JAZZ)
today announced financial results for the third quarter ended September 30,
2013 and updated 2013 financial guidance.

"We continued to deliver strong growth and profitability during the third
quarter while further strengthening our cash position," said Bruce Cozadd,
chairman and chief executive officer of Jazz Pharmaceuticals plc. "With
disciplined investments and successful execution of our corporate growth
strategy, we believe we are well positioned to continue to generate
significant growth and shareholder value."

Adjusted net income for the third quarter of 2013 was $109.4 million, or $1.78
per diluted share, compared to $78.6 million, or $1.29 per diluted share, for
the third quarter of 2012.

GAAP net income for the third quarter of 2013 was $75.4 million, or $1.23 per
diluted share. GAAP income from continuing operations for the third quarter of
2012 was $33.6 million, or $0.56 per diluted share, and GAAP net income for
the third quarter of 2012 was $33.2 million, or $0.55 per diluted share. GAAP
net income for the third quarter of 2012 included GAAP loss from discontinued
operations of $0.4 million, or $0.01 per diluted share.

Reconciliations of applicable GAAP reported to non-GAAP adjusted information
are included in this press release.

Third Quarter 2013 Revenues and Product Sales

Total revenues for the third quarter of 2013 were $232.2 million, compared to
total revenues of $175.5 million for the third quarter of 2012. This increase
was driven primarily by increased net sales of Xyrem and Erwinaze. Total
revenues include net sales, royalties and contract revenues.

Tables showing net sales for the three and nine months ended September 30,
2013 compared to actual and pro forma net sales for the same periods in 2012
are included in this press release.

Net sales for the third quarter of 2013 were as follows:

  *Xyrem® (sodium oxybate) oral solution: Xyrem net sales increased by 50% to
    $153.7 million in the third quarter of 2013 compared to $102.6 million in
    the third quarter of 2012. During the third quarter of 2013, the average
    number of active Xyrem patients was approximately 11,000.
  *Erwinaze®/Erwinase® (asparaginase Erwinia chrysanthemi): Erwinaze/
    Erwinase worldwide net sales increased by 39% to $44.1 million in the
    third quarter of 2013 compared to $31.7 million in the third quarter of
    2012.
  *Prialt® (ziconotide) intrathecal infusion: Net sales of Prialt were $11.0
    million in the third quarter of 2013 compared to net sales of $5.4 million
    for the same period of 2012. During the third quarter of 2013, net sales
    included a $5.7 million sale to Eisai Co., the European distributor of
    Prialt. During 2012, the sale to Eisai occurred during the three months
    ended March 31, 2012.
  *Psychiatry Products: Net sales of the company's psychiatry products were
    $10.7 million in the third quarter of 2013 compared to net sales of $21.0
    million for the same period of 2012. This decrease was primarily due to
    the impact of generic competition.
  *Other: Net sales of other products for the third quarter of 2013 were
    $10.9 million compared to net sales of $13.4 million in the same period of
    2012.

Operating Expenses and Other

Operating expenses for the third quarter of 2013 were $131.6 million compared
to $120.2 million for the third quarter of 2012. Operating expenses changed
over the prior year period for the following reasons:

  *Cost of product sales for the third quarter of 2013 was $24.3 million
    compared to $32.6 million for the same period in 2012. The decrease in the
    2013 period was primarily due to a decrease in acquisition accounting
    inventory fair value step-up adjustments of $9.8 million. Gross margin for
    the third quarter of 2013, as a percentage of product sales, was 89.5%
    compared to 81.3% for the same period in 2012.
  *Selling, general and administrative ("SG&A") and research and development
    ("R&D") expenses for the third quarter of 2013 totaled $87.8 million on a
    GAAP basis compared to $67.8 million for the same period of 2012. The
    increase reflected higher headcount and related expenses due to the
    expansion of the business and an increase in the fair value of contingent
    consideration related to the acquisition of EUSA Pharma in June 2012,
    partially offset by lower transaction and integration costs. Adjusted
    combined SG&A and R&D expenses for the third quarter of 2013 totaled $69.5
    million compared to $57.9 million for the same period in 2012.

Net interest expense in the third quarter of 2013 was $6.2 million. As of
September 30, 2013, cash and cash equivalents were $588.5 million, and the
balance of the company's term loans was $551.1 million. Cash and cash
equivalents increased from December 31, 2012 primarily due to the cash
generated from the business and the net proceeds of term loans that were
refinanced in June 2013, offset in part by funds used by the company to
repurchase its ordinary shares under the company's share repurchase program
and increases in working capital.

In May 2013, the board of directors authorized the use of up to $200 million
to repurchase the company's ordinary shares. In the third quarter of 2013, the
company repurchased 0.6 million shares for $48.8 million at an average cost of
$80.91 per share. As of September 30, 2013, a total of 1.4 million shares had
been repurchased for $102.4 million at an average cost of $70.64 per share.

During the fourth quarter of 2012, the company sold its women's health
business. Financial results from the women's health business are reported as
discontinued operations for the 2012 periods.

2013 Financial Guidance

Jazz Pharmaceuticals is providing the following updated 2013 guidance:
Revenues                                          $867-$877 million
Total Net Product Sales                           $860-$870 million
-Xyrem Net Sales                                  $565-$570 million
-Erwinaze/Erwinase Net Sales                      $173-$178 million
Adjusted Gross Margin %1,3                        88-90%
Adjusted Combined SG&A and R&D Expenses(2),(3)    $275-$280 million
GAAP Net Income Per Diluted Share                 $3.63-$3.79
Adjusted Net Income Per Diluted Share(3)          $6.30-$6.40

1. Excludes $4 million of acquisition accounting inventory fair value step-up
   adjustments and $3 million in share-based compensation expense from
   estimated GAAP gross margin of 87-89%.

2. Excludes $42 million of share-based compensation expense, $15 million
   related to a change in fair value of contingent consideration, $3 million
   of depreciation expense, $5 million of upfront license fees and $3 million
   of transaction, integration and restructuring costs from estimated GAAP
   combined SG&A and R&D expenses of $343-$348 million.

3. See "Non-GAAP Financial Measures" below. Reconciliations of non-GAAP
   adjusted guidance measures are included above and in the tables
   accompanying this press release.

Conference Call Details

Jazz Pharmaceuticals will host an investor conference call and live audio
webcast today at 4:30 p.m. EST (9:30 p.m. GMT) to provide a business update
and discuss its third quarter 2013 results and updated 2013 financial
guidance. The live webcast may be accessed from the Investors & Media section
of the company's website at www.jazzpharmaceuticals.com . Please connect to
the website prior to the start of the conference call to ensure adequate time
for any software downloads that may be necessary. Investors may participate in
the conference call by dialing +1-800-591-6942 in the U.S., or +1-617-614-4909
outside the U.S., and entering passcode 48257479.

A replay of the conference call will be available through November 12, 2013 by
dialing +1-888-286-8010 in the U.S., or +1-617-801-6888 outside the U.S., and
entering passcode 18933289.

An archived version of the webcast will be available for at least one week in
the Investors & Media section of the Jazz Pharmaceuticals website at
www.jazzpharmaceuticals.com .

About Jazz Pharmaceuticals

Jazz Pharmaceuticals plc is a specialty biopharmaceutical company focused on
improving patients' lives by identifying, developing and commercializing
innovative products that address unmet medical needs. The company has a
diverse portfolio of products in the areas of narcolepsy, oncology, pain and
psychiatry. The company's U.S. marketed products in these areas include:
Xyrem® (sodium oxybate) oral solution, Erwinaze® (asparaginase Erwinia
chrysanthemi ), Prialt® (ziconotide) intrathecal infusion, FazaClo®
(clozapine, USP) HD and FazaClo LD. Outside of the U.S., Jazz Pharmaceuticals
also has a number of products marketed by its EUSA Pharma division. For
further information, see www.jazzpharmaceuticals.com .

Non-GAAP Financial Measures

To supplement Jazz Pharmaceuticals' financial results and guidance presented
in accordance with U.S. generally accepted accounting principles ("GAAP"), the
company uses certain non-GAAP (also referred to as "adjusted" or "non-GAAP
adjusted") financial measures in this press release and the accompanying
tables. The company believes that each of these non-GAAP financial measures is
helpful in understanding its past financial performance and potential future
results, particularly in light of the effect of various acquisition and
divestiture transactions effected by the company during 2012. They are not
meant to be considered in isolation or as a substitute for comparable GAAP
measures, and should be read in conjunction with the consolidated financial
statements prepared in accordance with GAAP. Jazz Pharmaceuticals' management
regularly uses these supplemental non-GAAP financial measures internally to
understand, manage and evaluate its business and make operating decisions.
Compensation of executives is based in part on the performance of the
company's business based on certain of these non-GAAP financial measures. In
addition, Jazz Pharmaceuticals believes that the presentation of these
non-GAAP financial measures is useful to investors because it enhances the
ability of investors to compare its results from period to period and allows
for greater transparency with respect to key financial metrics the company
uses in making operating decisions, and also because the company's investors
and analysts regularly use them to model and track the company's financial
performance.

Investors should note that these non-GAAP financial measures are not prepared
under any comprehensive set of accounting rules or principles and do not
reflect all of the amounts associated with the company's results of operations
as determined in accordance with GAAP. Investors should also note that these
non-GAAP financial measures have no standardized meaning prescribed by GAAP
and, therefore, have limits in their usefulness to investors. In addition,
from time to time in the future there may be other items that the company may
exclude for purposes of its non-GAAP financial measures; likewise, the company
may in the future cease to exclude items that it has historically excluded for
purposes of its non-GAAP financial measures. Because of the non-standardized
definitions, the non-GAAP financial measures as used by Jazz Pharmaceuticals
in this press release and the accompanying tables may be calculated
differently from, and therefore may not be directly comparable to, similarly
titled measures used by the company's competitors and other companies.

As used in this press release, (i) the historical adjusted net income measures
exclude from GAAP income from continuing operations, as applicable,
amortization of intangible assets, share-based compensation expense,
acquisition accounting inventory fair value step-up adjustments, transaction
and integration costs, restructuring charges, change in fair value of
contingent consideration, upfront license fees, depreciation expense, loss on
extinguishment and modification of debt and other non-cash expense, and adjust
the income tax provision to the estimated amount of taxes that are payable in
cash; (ii) the historical adjusted combined SG&A and R&D expenses exclude from
GAAP combined SG&A and R&D expenses, as applicable, share-based compensation
expense, change in fair value of contingent consideration, transaction and
integration costs, restructuring charges, depreciation expense and upfront
license fees; (iii) the adjusted net income guidance measures exclude from
estimated GAAP net income amortization of intangible assets and depreciation
expense, share-based compensation expense, acquisition accounting inventory
fair value step-up adjustments, transaction, integration and restructuring
costs, change in fair value of contingent consideration, upfront license fees,
loss on extinguishment and modification of debt and other non-cash expense,
and adjust the income tax provision to the estimated amount of taxes that are
payable in cash; (iv) the adjusted gross margin percentage guidance excludes
from estimated GAAP gross margin percentage acquisition accounting inventory
fair value step-up adjustments and share-based compensation expense; and (v)
the adjusted combined SG&A and R&D expenses guidance excludes from estimated
GAAP combined SG&A and R&D expenses share-based compensation expense, change
in fair value of contingent consideration, depreciation expense, upfront
license fees and transaction, integration and restructuring costs.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995

This press release contains forward-looking statements, including, but not
limited to, statements related to Jazz Pharmaceuticals' future financial
results, the company's growth strategy and potential, 2013 financial guidance
and other statements that are not historical facts. These forward-looking
statements are based on Jazz Pharmaceuticals' current expectations and
inherently involve significant risks and uncertainties. Actual results and the
timing of events could differ materially from those anticipated in such
forward-looking statements as a result of these risks and uncertainties, which
include, without limitation, risks and uncertainties associated with
maintaining and increasing sales of and revenue from Xyrem, such as the
potential introduction of generic competition and changed or increased
regulatory restrictions on or requirements with respect to Xyrem, as well as
similar risks related to effectively commercializing the company's other
marketed products, including Erwinaze and Prialt; protecting and expanding the
company's intellectual property rights; obtaining appropriate pricing and
reimbursement for the company's products in an increasingly challenging
environment; ongoing regulation and oversight by U.S. and non-U.S. regulatory
agencies; dependence on key customers and sole source suppliers, including the
risk that the company may not be able to supply sufficient product to meet
demand; the difficulty and uncertainty of pharmaceutical product development,
including the timing thereof and the uncertainty of clinical success and
regulatory approval; the company's ability to identify and acquire, in-license
or develop additional products or product candidates to grow its business; and
possible restrictions on the company's ability and flexibility to pursue
certain future opportunities as a result of its substantial outstanding debt
obligations; as well as risks related to future opportunities and plans,
including the uncertainty of expected future financial performance and
results; and those other risks detailed from time-to-time under the caption
"Risk Factors" and elsewhere in Jazz Pharmaceuticals plc's Securities and
Exchange Commission filings and reports (Commission File No. 001-33500),
including the Quarterly Report on Form 10-Q for the quarter ended June 30,
2013 and future filings and reports by the company. Jazz Pharmaceuticals
undertakes no duty or obligation to update any forward-looking statements
contained in this press release as a result of new information, future events
or changes in its expectations.

  JAZZ PHARMACEUTICALS PLC CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In
             thousands, except per share amounts) (Unaudited) 
                           Three Months Ended September   Nine Months Ended
                                       30,                  September 30,
                               2013            2012        2013       2012
Revenues:
Product sales, net           $   230,386     $  174,130  $ 631,602  $ 398,585
Royalties and contract
revenues                           1,774          1,385      5,047      3,691
 Total revenues                232,160        175,515    636,649    402,276
Operating expenses:
Cost of product sales             24,252         32,629     76,503     52,662
Selling, general and
administrative                    74,970         60,924    223,004    162,505
Research and development          12,814          6,920     32,811     13,200
Intangible asset
amortization                      19,564         19,742     58,518     43,444
 Total operating
expenses                         131,600        120,215    390,836    271,811
Income from operations           100,560         55,300    245,813    130,465
Interest expense, net            (6,202)        (7,750)   (20,743)    (9,199)
Foreign currency loss              (614)        (1,099)      (728)    (1,357)
Loss on extinguishment and
modification of debt                   —              —    (3,749)          —
Income from continuing
operations before income
tax provision                     93,744         46,451    220,593    119,909
Income tax provision              18,335         12,856     59,574     24,966
Income from continuing
operations                        75,409         33,595    161,019     94,943
Loss from discontinued
operations                             —          (386)          —    (6,908)
Net income                   $    75,409     $   33,209  $ 161,019  $  88,035
Basic income (loss) per
ordinary share:
Income from continuing
operations                   $      1.30     $     0.59  $    2.76  $    1.69
Loss from discontinued
operations                             —         (0.01)          —     (0.12)
Net income                   $      1.30     $     0.58  $    2.76  $    1.57
Diluted income (loss) per
ordinary share:
Income from continuing
operations                   $      1.23     $     0.56  $    2.62  $    1.59
Loss from discontinued
operations                             —         (0.01)          —     (0.12)
Net income                   $      1.23     $     0.55  $    2.62  $    1.47
Weighted-average number of
ordinary shares
outstanding:
Basic                             58,217         57,703     58,437     56,198
Diluted                           61,519         60,883     61,532     59,846

    JAZZ PHARMACEUTICALS PLC SUMMARY OF PRODUCT SALES, NET (In thousands)
                                 (Unaudited)
                      Three Months Ended       Nine Months Ended September
                        September 30,                      30,
                      2013          2012         2013          2012
Xyrem               $  153,664    $  102,615   $  404,932    $  265,149
Erwinaze/Erwinase       44,078        31,652      130,754        37,660
Prialt                  11,046         5,413       20,726        20,491
Psychiatry              10,679        21,032       40,093        58,518
Other                   10,919        13,418       35,097        16,767
Total               $  230,386    $  174,130   $  631,602    $  398,585

The following compares actual net product sales for the three and nine months
ended September 30, 2013 to unaudited pro forma information representing
combined net product sales for the three and nine months ended September 30,
2012, as if the merger with Azur Pharma, the acquisition of EUSA Pharma and
the disposition of the women's health business had each been completed on
January 1, 2012:

    SUMMARY OF PRODUCT SALES, NET (PRO FORMA) (In thousands) (Unaudited)
                           Three Months Ended   Nine Months Ended September
                             September 30,                  30,
                            2013       2012        2013          2012
Xyrem                     $ 153,664  $ 102,615   $  404,932    $  265,149
Erwinaze/Erwinase            44,078     31,652      130,754        97,447
Prialt                       11,046      5,413       20,726        20,830
Psychiatry                   10,679     21,032       40,093        58,881
Other                        10,919     13,418       35,097        38,708
Total pro forma net sales $ 230,386  $ 174,130   $  631,602    $  481,015

JAZZ PHARMACEUTICALS PLC CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
                                 (Unaudited)
                                 September 30, 2013     December 31, 2012
            ASSETS
Current assets:
Cash and cash equivalents            $       588,462       $       387,196
Accounts receivable, net                     113,271                75,480
Inventories                                   24,868                26,525
Prepaid expenses                              19,350                 7,445
Deferred tax assets, net                      45,565                35,813
Other current assets                          18,551                19,113
 Total current assets                      810,067               551,572
Property and equipment, net                   12,060                 7,281
Intangible assets, net                       823,724               869,952
Goodwill                                     446,823               442,600
Deferred tax assets, net,
non-current                                   70,976                74,850
Deferred financing costs                      15,458                16,576
Other non-current assets                       6,391                 3,662
Total assets                         $     2,185,499       $     1,966,493
 LIABILITIES AND SHAREHOLDERS'
            EQUITY
Current liabilities:
Accounts payable                     $        22,434       $        15,887
Accrued liabilities                          106,390               104,666
Current portion of long-term
debt                                           5,572                29,688
Income taxes payable                          19,850                39,884
Contingent consideration                      47,700                     —
Deferred tax liability, net                      275                   275
Deferred revenue                               1,138                 1,138
 Total current liabilities                 203,359               191,538
Deferred revenue, non-current                  6,001                 6,776
Long-term debt, less current
portion                                      545,564               427,073
Contingent consideration,
non-current                                        —                34,800
Deferred tax liability, net,
non-current                                  170,127               178,393
Other non-current liabilities                 16,747                 6,621
Total shareholders' equity                 1,243,701             1,121,292
Total liabilities and
shareholders' equity                 $     2,185,499       $     1,966,493

    JAZZ PHARMACEUTICALS PLC RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP
  ADJUSTED INFORMATION (In thousands, except per share amounts) (Unaudited)
                          Three Months Ended September    Nine Months Ended
                                      30,                   September 30,
                              2013             2012        2013       2012
GAAP reported income
from continuing
operations                  $     75,409      $  33,595  $ 161,019  $  94,943
Intangible asset
amortization                      19,564         19,742     58,518     43,444
Share-based compensation
expense                           11,876          6,355     32,139     14,684
Acquisition accounting
inventory fair value
step-up                              512         10,336      3,143     14,676
Transaction and
integration costs                    113          1,503      1,846     17,692
Restructuring charges                  —          1,633      1,457      2,180
Change in fair value of
contingent consideration           5,000            900     12,900      1,100
Upfront license fees                 988              —      4,988          —
Depreciation                         895              —      2,065          —
Loss on extinguishment
and modification of debt               —              —      3,749          —
Other non-cash expense             1,083          1,261      3,505      1,569
Income tax adjustments           (6,043)          3,263    (3,198)      6,160
Non-GAAP adjusted net
income                      $    109,397      $  78,588  $ 282,131  $ 196,448
GAAP reported income
from continuing
operations per diluted
share                       $       1.23      $    0.56  $    2.62  $    1.59
Non-GAAP adjusted net
income per diluted share    $       1.78      $    1.29  $    4.59  $    3.28
Shares used in computing
GAAP reported income
from continuing
operations and non-GAAP
adjusted net income per
diluted share amounts             61,519         60,883     61,532     59,846

JAZZ PHARMACEUTICALS PLC RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
   CERTAIN LINE ITEMS AND OTHER INFORMATION (In thousands, except per share amounts and
                                 percentages) (Unaudited)
                                           Three Months Ended
                        September 30, 2013                     September 30, 2012
                 GAAP     Adjustments     Non-GAAP     GAAP     Adjustments     Non-GAAP
               Reported                   Adjusted   Reported                   Adjusted
                                              *                                     *
Total revenues $ 232,160    $       —     $ 232,160  $ 175,515    $       —     $ 175,515
Cost of                               (a)                                   (a)
product sales     24,252      (1,103)        23,149     32,629     (10,771)        21,858
Selling,                              (b)                                   (b)
general and
administrative    74,970     (15,345)        59,625     60,924      (9,275)        51,649
Research and                          (c)                                   (c)
development       12,814      (2,936)         9,878      6,920        (681)         6,239
Intangible
asset
amortization      19,564     (19,564)             —     19,742     (19,742)             —
Interest                              (d)                                   (d)
expense, net       6,202      (1,083)         5,119      7,750      (1,261)         6,489
Foreign
currency loss        614            —           614      1,099            —         1,099
Income from                           (e)                                   (e)
continuing
operations
before income
tax provision     93,744       40,031       133,775     46,451       41,730        88,181
Income tax                            (f)                                   (f)
provision         18,335        6,043        24,378     12,856      (3,263)         9,593
Effective tax
rate (g)           19.6%                      18.2%      27.7%                      10.9%
Income from    $                      (h)                                   (h)
continuing
operations        75,409    $  33,988     $ 109,397  $  33,595    $  44,993     $  78,588
Income from    $
continuing
operations per
diluted share       1.23                  $    1.78  $    0.56                  $    1.29

                                            Nine Months Ended
                        September 30, 2013                    September 30, 2012
                 GAAP     Adjustments     Non-GAAP     GAAP     Adjustments     Non-GAAP
               Reported                   Adjusted   Reported                   Adjusted
                                              *                                     *
Total revenues $ 636,649   $        —     $ 636,649  $ 402,276   $        —     $ 402,276
Cost of                               (i)                                   (i)
product sales     76,503      (5,032)        71,471     52,662     (15,766)        36,896
Selling,                              (j)                                   (j)
general and
administrative   223,004     (43,953)       179,051    162,505     (32,848)       129,657
Research and                          (k)                                   (k)
development       32,811      (9,553)        23,258     13,200      (1,718)        11,482
Intangible
asset
amortization      58,518     (58,518)             —     43,444     (43,444)             —
Interest                              (l)                                   (l)
expense, net      20,743      (3,505)        17,238      9,199      (1,569)         7,630
Foreign
currency loss        728            —           728      1,357            —         1,357
Loss on
extinguishment
and
modification
of debt            3,749      (3,749)             —          —            —             —
Income from                           (m)                                   (m)
continuing
operations
before income
tax provision    220,593      124,310       344,903    119,909       95,345       215,254
Income tax                            (n)                                   (n)
provision         59,574        3,198        62,772     24,966      (6,160)        18,806
Effective tax
rate (g)           27.0%                      18.2%      20.8%                       8.7%
Income from                           (o)                                   (o)
continuing
operations     $ 161,019   $  121,112     $ 282,131  $  94,943   $  101,505     $ 196,448
Income from
continuing
operations per
diluted share  $    2.62                  $    4.59  $    1.59                  $    3.28

    JAZZ PHARMACEUTICALS PLC RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP
ADJUSTED INFORMATION CERTAIN LINE ITEMS AND OTHER INFORMATION (In thousands,
           except per share amounts and percentages) (Unaudited) 
* Non-GAAP adjusted net income and its line item components and related
  non-GAAP adjusted financial measures, including non-GAAP adjusted effective
  tax rate, shown in the tables above are not meant to be considered in
  isolation or as a substitute for comparable GAAP reported measures, and
  should be read in conjunction with the consolidated financial statements
  prepared in accordance with GAAP. The company believes that each of these
  non-GAAP adjusted financial measures is helpful in understanding its past
  financial performance and potential future results, particularly in light
  of the effect of various acquisition and divestiture transactions effected
  by the company during 2012. In addition, the company believes that the
  presentation of these non-GAAP adjusted financial measures is useful to
  investors because it enhances the ability of investors to compare its
  results from period to period and allows for greater transparency with
  respect to key financial metrics the company uses in making operating
  decisions, and also because the company's investors and analysts regularly
  use them to model and track the company's financial performance.
  Specifically, the company believes that each of these non-GAAP adjusted
  financial measures provides useful information to management, investors and
  analysts by excluding certain expenses, such as acquisition-related and
  restructuring costs, share-based compensation, amortization of intangible
  assets, depreciation and other non-cash expense, as well as by excluding
  acquisition accounting inventory fair value step-up adjustments from cost
  of goods sold, upfront license fees, loss on extinguishment and
  modification of debt and related income tax adjustments, as the case may
  be, that may not be indicative of the company's core operating results and
  business outlook. Investors should note that these non-GAAP adjusted
  financial measures are not prepared under any comprehensive set of
  accounting rules or principles and do not reflect all of the amounts
  associated with the company's results of operations as determined in
  accordance with GAAP. Investors should also note that these non-GAAP
  adjusted financial measures have no standardized meaning prescribed by GAAP
  and, therefore, have limits in their usefulness to investors. In addition,
  from time to time in the future there may be other items that the company
  may exclude for purposes of its non-GAAP adjusted financial measures;
  likewise, the company may in the future cease to exclude items that it has
  historically excluded for purposes of its non-GAAP adjusted financial
  measures. Because of the non-standardized definitions, the non-GAAP
  adjusted financial measures appearing in the tables above may be calculated
  differently from, and therefore may not be directly comparable to,
  similarly titled measures used by the company's competitors and other
  companies.

Explanation of Adjustments and Certain Line Items:
(a) Share-based compensation expense of $591 and $344, acquisition accounting
    inventory fair value step-up adjustments of $512 and $10,336, and
    restructuring charges of $0 and $91 for the three months ended September
    30, 2013 and 2012, respectively.
(b) Share-based compensation expense of $9,354 and $5,330, change in fair
    value of contingent consideration of $5,000 and $900, depreciation
    expense of $878 and $0, transaction and integration costs of $113 and
    $1,503, and restructuring charges of $0 and $1,542 for the three months
    ended September 30, 2013 and 2012, respectively.
(c) Share-based compensation expense of $1,931 and $681, upfront license fees
    of $988 and $0, and depreciation expense of $17 and $0 for the three
    months ended September 30, 2013 and 2012, respectively.
(d) Non-cash interest expense associated with debt discount and debt issuance
    costs for the three months ended September 30, 2013. Non-cash interest
    expense associated with debt discount and debt issuance costs and
    amortization of product rights liability for the three months ended
    September 30, 2012.
(e) Sum of adjustments (a) through (d) plus the adjustment for intangible
    asset amortization for the respective three month period.
(f) Adjustments to convert the income tax provision to the estimated amount
    of taxes payable in cash for the three months ended September 30, 2013.
    Tax related to acquisition restructuring of $9,529, partially offset by
    an adjustment of $6,266 to convert the income tax provision to the
    estimated amount of taxes payable in cash for the three months ended
    September 30, 2012.
(g) Income tax provision divided by income from continuing operations before
    income tax provision.
(h) Net of adjustments (e) and (f) for the respective three month period.
(i) Acquisition accounting inventory fair value step-up adjustments of $3,143
    and $14,676, share-based compensation expense of $1,788 and $999,
    restructuring charges of $68 and $91, and transaction and integration
    costs of $33 and $0 for the nine months ended September 30, 2013 and
    2012, respectively.
(j) Share-based compensation expense of $25,898 and $11,967, change in fair
    value of contingent consideration of $12,900 and $1,100, depreciation
    expense of $2,008 and $0, transaction and integration costs of $1,758 and
    $17,692, and restructuring charges of $1,389 and $2,089 for the nine
    months ended September 30, 2013 and 2012, respectively.
(k) Upfront license fees of $4,988 and $0, share-based compensation expense
    of $4,453 and $1,718, depreciation expense of $57 and $0, and transaction
    and integration costs of $55 and $0 for the nine months ended September
    30, 2013 and 2012, respectively.
(l) Non-cash interest expense associated with debt discount and debt issuance
    costs for the nine months ended September 30, 2013. Non-cash interest
    expense associated with debt discount and debt issuance costs and
    amortization of product rights liability for the nine months ended
    September 30, 2012.
(m) Sum of adjustments (i) through (l) plus the adjustments for intangible
    asset amortization and, as applicable, loss on extinguishment and
    modification of debt, for the respective nine month period.
(n) Adjustments to convert the income tax provision to the estimated amount
    of taxes payable in cash for the nine months ended September 30, 2013.
    Tax related to acquisition restructuring of $15,379 partially offset by
    an adjustment of $9,219 to convert the income tax provision to the
    estimated amount of taxes payable in cash for the nine months ended
    September 30, 2012.
(o) Net of adjustments (m) and (n) for the respective nine month period.

  JAZZ PHARMACEUTICALS PLC RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED 2013
        GUIDANCE (In millions, except per share amounts) (Unaudited)
GAAP net income                                               $223 - $233
Intangible asset amortization and depreciation                     81
Share-based compensation expense                                   45
Acquisition accounting inventory fair value step-up                4
Transaction, integration and restructuring costs                   3
Change in fair value of contingent consideration                   15
Upfront license fees                                               5
Loss on extinguishment and modification of debt                    4
Other non-cash expense                                             5
Income tax adjustments                                          (2) - 2
Non-GAAP adjusted net income                                  $387 - $393
GAAP net income per diluted share                            $3.63 - $3.79
Non-GAAP adjusted net income per diluted share               $6.30 - $6.40
Shares used in computing GAAP and non-GAAP adjusted net
income
per diluted share amounts                                          61

Website: http://www.jazzpharmaceuticals.com
Contact: Investors, Kathee Littrell, Vice President, Investor Relations, Jazz
Pharmaceuticals plc, Ireland, + 353-1-634-7887, or U.S., + 1-650-496-2717; or
Media, Laurie Hurley, Vice President, Corporate Affairs, Jazz Pharmaceuticals
plc, Ireland, + 353-1-634-7894, U.S., +1-650-496-2796
 
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