Endo Reports Fourth Quarter And Full Year 2013 Financial Results

       Endo Reports Fourth Quarter And Full Year 2013 Financial Results  PR Newswire  MALVERN, Pa., Feb. 28, 2014  MALVERN, Pa., Feb. 28, 2014 /PRNewswire/ --    oCompany expects to close Paladin Labs transaction on February 28, 2014.   oFull year 2013 adjusted diluted EPS exceeds previously issued guidance by     $0.04.   oTotal quarterly revenues of $585 million, reported diluted (GAAP) loss per     share of $6.74 and adjusted diluted EPS of $0.96.   oCompany expects 2014 revenues to be in the range from $2.50 billion to     $2.62 billion.   oCompany expects 2014 reported diluted (GAAP) EPS to be in the range     from$1.36 to $1.81 and 2014 adjusted diluted EPS to be in the range from     $3.40 to $3.65.  Endo Health Solutions (Nasdaq: ENDP) today reported fourth quarter 2013 revenues of $585 million, compared to $750 million for the same quarter of 2012. As previously announced, on February 3, 2014, Endo completed the sale of its former HealthTronics business. Financial results related to HealthTronics are presented as income (loss) from discontinued operations, net of tax and non-controlling interest expense on the consolidated statements of income, and are excluded from all other results and 2014 financial guidance.  Endo reported a net loss of $776 million in fourth quarter 2013 compared to a net loss of $716 million in fourth quarter 2012. As detailed in the supplemental financial information below, adjusted net income for the three months ended December31, 2013 decreased by 34 percent to $124 million, compared to $187 million for the same period in 2012.  The net loss reported for the period is primarily attributable to two charges that were previously disclosed. A pre-tax, non-cash asset impairment charge of approximately $495 million, primarily related to goodwill attributable to the company's acquisition of American Medical Systems. And, a pre-tax, non-cash charge of $316 million, to increase the company's product liability reserve for all known, pending and estimated future claims primarily related to vaginal mesh cases. The change in the accrual for product liability claims is primarily associated with the company's ongoing evaluation of the vaginal mesh litigation, including the inherent uncertainty of this litigation and potential settlement costs.  Reported diluted loss per share for the fourth quarter 2013 was $6.74, compared to $6.35 for the fourth quarter of 2012. Adjusted diluted EPS decreased by 41 percent to $0.96 for the fourth quarter of 2013 compared to $1.62 for the same period in 2012.  "We made significant progress in 2013 towards our objective of transforming Endo into a leading specialty healthcare company. We re-oriented the company in a new strategic direction, completed a significant restructuring, implemented a new more efficient operating model and completed a series of transactions that have transformed the company while improving our focus," said Rajiv De Silva, President and CEO of Endo. "And today we have announced the expected close of the acquisition of Paladin Labs. As a result of this acquisition Endo now has a platform for creating further shareholder value that will help accelerate our plans for long term strategic growth."  FINANCIAL PERFORMANCE  ($ in thousands, except per  share amounts)            4rd Quarter                         Twelve Months Ended                                                December 31,            2013          2012          Change  2013          2012          Change Total      $ 584,946     $ 749,820     (22) %  $ 2,616,907   $ 2,815,736   (7)  % Revenues Reported   $ (775,910)   $ (716,266)   (8)  %  $ (685,339)   $ (740,337)   7    % Net Income Reported Diluted    $ (6.74)      $ (6.35)      (6)  %  $ (6.05)      $ (6.40)      5    % EPS Adjusted   $ 123,697     $ 186,588     (34) %  $ 573,996     $ 600,134     (4)  % Net Income Adjusted Diluted    $ 0.96        $ 1.62        (41) %  $ 4.79        $ 5.02        (5)  % EPS    ENDO PHARMACEUTICALS  Fourth quarter 2013 branded pharmaceutical revenues were $255 million, a 44 percent decrease compared to fourth quarter 2012 branded pharmaceutical revenues. This decrease was primarily attributable to the decrease in net sales of LIDODERM^®. Fourth quarter 2013 net sales of LIDODERM decreased 87 percent compared to the fourth quarter 2012. This decrease is attributable to the effects of the loss of market exclusivity for the product in September 2013. The decrease of LIDODERM sales in the fourth quarter was partially offset by $30 million of royalty revenues that Endo recognized per the terms of its previously announced Watson (now doing business as Actavis, Inc.) Settlement Agreement.  Fourth quarter 2013 net sales of Voltaren^® Gel increased 22 percent compared to fourth quarter 2012. This increase is attributable to strong growth in demand. According to IMS Health, total prescriptions for Voltaren Gel increased by 29 percent compared to fourth quarter 2012.  Fourth quarter 2013 net sales of OPANA^® ER decreased 14 percent compared to fourth quarter 2012. This decrease is primarily attributable to a year-over-year decrease in demand. According to IMS Health, total prescriptions for OPANA ER decreased by 11 percent compared to fourth quarter 2012.  QUALITEST  Fourth quarter 2013 generic product net sales of $198 million represent an increase of 22 percent compared to fourth quarter 2012 generic product net sales. This increase was primarily attributable to strong demand for Qualitest's diversified product portfolio. Generic product net sales of $731 million for full-year 2013 represent an increase of 15 percent compared to the first twelve months of 2012. Qualitest continues to focus on sales growth and improving processes to enhance profitability.  On February 3, 2014, Qualitest announced the close of its acquisition of Boca Pharmacal, a privately owned specialty generics company, for $225 million. The company expects the transaction to be immediately accretive to Endo's adjusted diluted earnings per share.  AMS  In the fourth quarter 2013, AMS sales were $132 million, a decrease of less than 1 percent, at current exchange rates, compared to the fourth quarter of 2012. This decrease is primarily attributable to a decrease in Women's Health sales which decreased by 12 percent in the fourth quarter 2013, compared to the same period last year. The decrease in Women's Health sales is attributable to year-over-year declines in U.S.-based procedural volumes.  In the fourth quarter 2013, Men's Health sales increased 9 percent compared to fourth quarter 2012. This increase is primarily attributable to growth in sales of male continence products including the AMS 800^™Urinary Control System and the AdVance^™ Male Sling System.  Fourth quarter 2013 sales of AMS's benign prostatic hyperplasia (BPH) business decreased 8 percent compared to fourth quarter 2012. This decrease is primarily attributable to lower sales of GreenLight™ consoles and was partially offset by an increase in GreenLight fiber sales.  2014 Financial Guidance  Endo's estimates are based on projected results for the twelve months ended Dec. 31, 2014 and management's current belief about prescription trends, pricing levels, inventory levels and the anticipated timing of future product launches and events. The company's guidance for reported (GAAP) earnings per share does not include any estimates for potential new corporate development transactions. For the full twelve months ended Dec. 31, 2014, at current exchange rates, Endo estimates:    oTotal revenue to be between $2.50 billion and $2.62 billion   oReported (GAAP) diluted earnings per share to be between $1.36 and $1.81   oAdjusted diluted earnings per share to be between $3.40 and $3.65   oAdjusted diluted earnings per share assume full year adjusted diluted     shares outstanding of 164 million  The company's 2014 guidance is based on certain assumptions including:    oAdjusted gross margin of between 63 percent and 65 percent   oYear-over-year low-double digit percentage decrease of Adjusted Operating     Expenses   oAdjusted interest expense of approximately $210 million   oAdjusted effective tax rate of between 23 percent and 25 percent  Balance Sheet Update  On December 19, 2013, Endo issued $700 million in aggregate principal amount of 5.75% Senior Notes due 2022 at an issue price of par. Endo intends to use the net proceeds from the offering, together with borrowings under the term loan portion of a new senior secured credit facility, to refinance Endo's existing senior secured credit facility, to pay related fees and expenses and for general corporate purposes, which may include strategic acquisitions.  Conference Call Information  Endo will conduct a conference call with financial analysts to discuss this news release today at 8:30 a.m. ET. Investors and other interested parties may call 866-515-2910 (domestic) or +1 617-399-5124 (international) and enter passcode 79916686. Please dial in 10 minutes prior to the scheduled start time.  A replay of the call will be available from February 28, 2014 at 12:30 p.m. ET until 11:59 p.m. ET on March 15, 2014 by dialing 888-286-8010 (domestic) or +1 617-801-6888 (international) and entering passcode 13770519.  A simultaneous webcast of the call can be accessed by visiting www.endo.com. In addition, a replay of the webcast will be available until 11:59 p.m. ET on March 15, 2014. The replay can be accessed by clicking on "Events" in the Investor Relations section of the website.  Supplemental Financial Information  The following tables provide a reconciliation of our reported (GAAP) statements of operations to our adjusted statements of operations (Non-GAAP) for each of the three months ended December31, 2013 and 2012 (in thousands, except per share data):                                  Actual Three Months Ended December                 Adjustments      Non-GAAP Adjusted 31, 2013 (unaudited)          Reported                               (GAAP) REVENUES                     $ 584,946     $  —             $    584,946 COSTS AND EXPENSES: Cost of revenues              253,886       (51,825)    (1)  202,061 Selling, general and          186,443       (34,705)    (2)  151,738 administrative Research and development      33,623        (7,029)     (3)  26,594 Litigation-related and other  325,144       (325,144)   (4)  — contingencies Asset impairment charges      514,255       (514,255)   (5)  — Acquisition-related and       4,076         (4,076)     (6)  — integration items OPERATING (LOSS) INCOME      $ (732,481)   $  937,034       $    204,553 INTEREST EXPENSE, NET        43,910        (5,926)     (7)  37,984 OTHER INCOME, NET            (1,330)       —                (1,330) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE  $ (775,061)   $  942,960       $    167,899  INCOME TAX INCOME TAX                   (106,984)     148,994     (8)  42,010 (LOSS) INCOME FROM           $ (668,077)   $  793,966       $    125,889 CONTINUING OPERATIONS DISCONTINUED OPERATIONS, NET  $ (93,666)    $  105,641  (9)  $    11,975 OF TAX CONSOLIDATED NET (LOSS)      $ (761,743)   $  899,607       $    137,864 INCOME Less: Net income attributable to               14,167        —                14,167 noncontrolling interests NET (LOSS) INCOME ATTRIBUTABLE TO ENDO HEALTH   $ (775,910)   $  899,607       $    123,697  SOLUTIONS INC. DILUTED EARNINGS PER SHARE DATA ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC.: Continuing operations         $ (5.80)                       $    0.98 Discontinued operations       (0.94)                         (0.02) DILUTED (LOSS) EARNINGS PER  $ (6.74)                       $    0.96 SHARE DILUTED WEIGHTED AVERAGE     115,105                        128,644 SHARES  Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations:     To exclude amortization of commercial intangible assets related to (1) marketed products of $39,493 and accruals for milestone payments to     partners of $12,332.     To exclude certain separation benefits and other costs incurred in (2) connection with continued efforts to enhance the company's operations of     $13,602, amortization of customer relationships of $2,515 and mesh     litigation-related defense costs of $18,588.     To exclude milestone payments to partners of $6,307 and certain separation (3) benefits and other costs incurred in connection with continued efforts to     enhance the company's operations of $722. (4) To exclude the net impact of accruals primarily for mesh-related product     liability. (5) To exclude asset impairment charges.     To exclude integration costs of $3,416 and a loss of $660 recorded to (6) reflect the change in fair value of the contingent consideration     associated with the Qualitest acquisition. (7) To exclude additional interest expense as a result of the prior adoption     of ASC 470-20.     To reflect the cash tax savings results from our acquisitions and (8) dispositions and the tax effect of the pre-tax adjustments above at     applicable tax rates.     To exclude certain items related to the HealthTronics business, which is (9) reported as Discontinued operations, net of tax, that the Company believes     does not reflect its core operating performance.                                 Actual Three Months Ended December                Adjustments       Non-GAAP Adjusted 31, 2012 (unaudited)         Reported                              (GAAP) REVENUES                    $ 749,820     $  —              $    749,820 COSTS AND EXPENSES: Cost of revenues             277,835       (50,687)    (1)   227,148 Selling, general and         192,387       (18,369)    (2)   174,018 administrative Research and development     41,340        (7,554)     (3)   33,786 Litigation-related and other 233,825       (233,825)   (4)   — contingencies Asset impairment charges     661,388       (661,388)   (5)   — Acquisition-related and      5,118         (5,118)     (6)   — integration items OPERATING (LOSS) INCOME     $ (662,073)   $  976,941        $    314,868 INTEREST EXPENSE, NET       44,448        (5,408)     (7)   39,040 OTHER INCOME, NET           (655)         300         (8)   (355) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE $ (705,866)   $  982,049        $    276,183 INCOME TAX INCOME TAX                  (21,185)      112,989     (9)   91,804 (LOSS) INCOME FROM          $ (684,681)   $  869,060        $    184,379 CONTINUING OPERATIONS DISCONTINUED OPERATIONS, NET $ (19,095)    $  33,794   (10)  $    14,699 OF TAX CONSOLIDATED NET (LOSS)     $ (703,776)   $  902,854        $    199,078 INCOME Less: Net income attributable to              12,490        —                 12,490 noncontrolling interests NET (LOSS) INCOME ATTRIBUTABLE TO ENDO HEALTH  $ (716,266)   $  902,854        $    186,588 SOLUTIONS INC. DILUTED EARNINGS PER SHARE DATA ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC.: Continuing operations        $ (6.07)                        $    1.60 Discontinued operations      (0.28)                          0.02 DILUTED (LOSS) EARNINGS PER $ (6.35)                        $    1.62 SHARE DILUTED WEIGHTED AVERAGE    112,811                         114,929 SHARES  Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations:      To exclude amortization of commercial intangible assets related to      marketed products of $52,536, an adjustment to the accrual for the (1)  payment to Impax related to sales of OPANA ER of $(2,000) and certain      separation benefits and other costs incurred in connection with continued      efforts to enhance the company's operations of $151.      To exclude certain separation benefits and other costs incurred in (2)  connection with continued efforts to enhance the company's operations of      $15,863 and amortization of customer relationships of $2,506.      To exclude milestone payments to partners of $4,173 and certain (3)  separation benefits and other costs incurred in connection with continued      efforts to enhance the company's operations of $3,381. (4)  To exclude the net impact of accruals for litigation-related and other      contingencies. (5)  To exclude asset impairment charges.      To exclude acquisition-related and integration costs of $4,909 and a loss (6)  of $209 recorded to reflect the change in fair value of the contingent      consideration associated with the Qualitest Pharmaceuticals acquisition. (7)  To exclude additional interest expense as a result of the prior adoption      of ASC 470-20. (8)  To exclude milestone-related activity.      To reflect the cash tax savings results from our acquisitions and (9)  dispositions and the tax effect of the pre-tax adjustments above at      applicable tax rates.      To exclude certain items related to the HealthTronics business, which is (10) reported as Discontinued operations, net of tax, that the Company      believes does not reflect its core operating performance.    The following tables provide a reconciliation of our reported (GAAP) statements of operations to our adjusted statements of operations (Non-GAAP) for each of the twelve months ended December31, 2013 and 2012 (in thousands, except per share data):    Twelve Months Ended         Actual December 31, 2013                         Adjustments        Non-GAAP Adjusted (unaudited)                 Reported                             (GAAP) REVENUES                   $ 2,616,907   $ —                $   2,616,907 COSTS AND EXPENSES: Cost of revenues            1,039,516     (194,748)    (1)   844,768 Selling, general and        849,339       (147,785)    (2)   701,554 administrative Research and development    142,472       (26,216)     (3)   116,256 Litigation-related and      484,242       (484,242)    (4)   — other contingencies Asset impairment charges    519,011       (519,011)    (5)   — Acquisition-related and     7,952         (7,952)      (6)   — integration items OPERATING (LOSS) INCOME    $ (425,625)   $ 1,379,954        $   954,329 INTEREST EXPENSE, NET      173,601       (22,742)     (7)   150,859 LOSS ON EXTINGUISHMENT OF  11,312        (11,312)     (8)   — DEBT OTHER (INCOME) EXPENSE,    (50,971)      51,448       (9)   477 NET (LOSS) INCOME FROM CONTINUING OPERATIONS       $ (559,567)   $ 1,362,560        $   802,993 BEFORE INCOME TAX INCOME TAX                 (24,067)      253,130      (10)  229,063 (LOSS) INCOME FROM         $ (535,500)   $ 1,109,430        $   573,930 CONTINUING OPERATIONS DISCONTINUED OPERATIONS,    $ (96,914)    $ 149,905    (11)  $   52,991 NET OF TAX CONSOLIDATED NET (LOSS)    $ (632,414)   $ 1,259,335        $   626,921 INCOME Less: Net income attributable to             52,925        —                  52,925 noncontrolling interests NET (LOSS) INCOME ATTRIBUTABLE TO ENDO HEALTH $ (685,339)   $ 1,259,335        $   573,996 SOLUTIONS INC. DILUTED EARNINGS PER SHARE DATA ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC.: Continuing operations       $ (4.73)                         $   4.79 Discontinued operations     (1.32)                           — DILUTED (LOSS) EARNINGS    $ (6.05)                         $   4.79 PER SHARE DILUTED WEIGHTED AVERAGE   113,295                          119,829 SHARES  Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations:      To exclude amortization of commercial intangible assets related to      marketed products of $175,298, certain separation benefits and other (1)  costs incurred in connection with continued efforts to enhance the      company's operations of $1,118 and accruals for milestone payments to      partners of $18,332.      To exclude certain separation benefits and other costs incurred in (2)  connection with continued efforts to enhance the company's operations of      $84,290, amortization of customer relationships of $10,036 and mesh      litigation-related defense costs of $53,459.      To exclude milestone payments to partners of $11,371 and certain (3)  separation benefits and other costs incurred in connection with continued      efforts to enhance the company's operations of $14,845. (4)  To exclude the net impact of accruals primarily for mesh-related product      liability. (5)  To exclude asset impairment charges.      To exclude integration costs of $7,129 and a loss of $823 recorded to (6)  reflect the change in fair value of the contingent consideration      associated with the Qualitest acquisition. (7)  To exclude additional interest expense as a result of the prior adoption      of ASC 470-20.      To exclude the unamortized debt issuance costs written off and recorded (8)  as a loss on extinguishment of debt upon our March 2013 prepayment on our      Term Loan indebtedness as well asupon the amendment and restatement of      our existing credit facility. (9)  To exclude $50,400 related to patent litigation settlement income and      other income of $1,048.      To reflect the cash tax savings results from our acquisitions and (10) dispositions and the tax effect of the pre-tax adjustments above at      applicable tax rates.      To exclude certain items related to the HealthTronics business, which is (11) reported as Discontinued operations, net of tax, that the Company      believes does not reflect its core operating performance.    Twelve Months Ended         Actual December 31, 2012                         Adjustments        Non-GAAP Adjusted (unaudited)                 Reported                             (GAAP) REVENUES                   $ 2,815,736   $ —                $   2,815,736 COSTS AND EXPENSES: Cost of revenues            1,135,681     (316,257)    (1)   819,424 Selling, general and        864,339       (46,879)     (2)   817,460 administrative Research and development    219,139       (63,755)     (3)   155,384 Patent litigation           85,123        (85,123)     (4)   — settlement, net Litigation-related and      316,425       (316,425)    (5)   — other contingencies Asset impairment charges    715,551       (715,551)    (6)   — Acquisition-related and     19,413        (19,413)     (7)   — integration items OPERATING (LOSS) INCOME    $ (539,935)   $ 1,563,403        $   1,023,468 INTEREST EXPENSE, NET      182,834       (20,762)     (8)   162,072 LOSS ON EXTINGUISHMENT OF  7,215         (7,215)      (9)   — DEBT OTHER EXPENSE, NET         439           —                  439 (LOSS) INCOME FROM CONTINUING OPERATIONS       $ (730,423)   $ 1,591,380        $   860,957 BEFORE INCOME TAX INCOME TAX                 (36,415)      300,960      (10)  264,545 (LOSS) INCOME FROM         $ (694,008)   $ 1,290,420        $   596,412 CONTINUING OPERATIONS DISCONTINUED OPERATIONS,    $ 5,987       $ 50,051     (11)  $   56,038 NET OF TAX CONSOLIDATED NET (LOSS)    $ (688,021)   $ 1,340,471        $   652,450 INCOME Less: Net income attributable to             52,316        —                  52,316 noncontrolling interests NET (LOSS) INCOME ATTRIBUTABLE TO ENDO HEALTH $ (740,337)   $ 1,340,471        $   600,134 SOLUTIONS INC. DILUTED EARNINGS PER SHARE DATA ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC.: Continuing operations       $ (6.00)                         $   4.99 Discontinued operations     (0.40)                           0.03 DILUTED (LOSS) EARNINGS    $ (6.40)                         $   5.02 PER SHARE DILUTED WEIGHTED AVERAGE   115,719                          119,545 SHARES  Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations:      To exclude amortization of commercial intangible assets related to      marketed products of $210,299, the impact of inventory step-up recorded      as part of acquisition accounting of $880, the accrual for the payment to (1)  Impax related to sales of OPANA ER of $102,000, net milestone payments to      partners of $2,927 and certain separation benefits and other costs      incurred in connection with continued efforts to enhance the company's      operations of $151.      To exclude certain separation benefits and other costs incurred in (2)  connection with continued efforts to enhance the company's operations of      $36,858 and amortization of customer relationships of $10,021.      To exclude milestone payments to partners of $57,851 and certain (3)  separation benefits and other costs incurred in connection with continued      efforts to enhance the company's operations of $5,904. (4)  To exclude the net impact of the Actavis (Watson) litigation settlement. (5)  To exclude the net impact of accruals for litigation-related and other      contingencies. (6)  To exclude asset impairment charges.      To exclude acquisition-related and integration costs of $19,176 and a (7)  loss of $237 recorded to reflect the change in fair value of the      contingent consideration associated with the Qualitest Pharmaceuticals      acquisition. (8)  To exclude additional interest expense as a result of the prior adoption      of ASC 470-20.      To exclude the unamortized debt issuance costs written off and recorded (9)  as a loss on extinguishment of debt upon our 2012 prepayments on our Term      Loan indebtedness. (10) To reflect the cash tax savings results from our acquisitions and the tax      effect of the pre-tax adjustments above at applicable tax rates.      To exclude certain items related to the HealthTronics business, which is (11) reported as Discontinued operations, net of tax, that the Company      believes does not reflect its core operating performance.  Non-GAAP Adjusted net income and its components and Non-GAAP Adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, we stress that these are Non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, Non-GAAP Adjusted net income and its components (unlike U.S. GAAP net income and its components) may not be comparable to the calculation of similar measures of other companies. These Non-GAAP financial measures are presented solely to permit investors to more fully understand how management assesses performance. See Endo's Current Report on Form 8-K filed today with the Securities and Exchange Commission for an explanation of Endo's reasons for using non-GAAP measures.  Reconciliation of Projected GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share Guidance for 2014                                                              Year Ending                                                             December31, 2014 Projected GAAP diluted income per common share              $ 1.36  To $ 1.81 Upfront and milestone-related payments to partners          0.25       0.25 Amortization of commercial intangible assets and inventory  1.45       1.17 step-up Integration and restructuring charges                       0.27       0.27 Charges for litigation and other legal matters              0.38       0.38 Interest expense adjustment for ASC 470-20 and other        0.15       0.15 treasury related items Tax effect of pre-tax adjustments at the applicable tax rates and certain other expected cash tax savings as a      (0.46)     (0.38) result of acquisitions Diluted adjusted income per common share guidance           $ 3.40  To $ 3.65  The company's guidance is being issued based on certain assumptions including:    oCertain of the above amounts are based on estimates and there can be no     assurance that Endo will achieve these results.   oIncludes all completed business development transactions as of Feb 28,     2014.  About Endo Endo Health Solutions Inc. is a U.S.-based specialty healthcare company with business segments that are focused on branded pharmaceuticals, generics, and medical devices which deliver quality products to its customers intended to improve the lives of patients. Through its operating companies - Endo Pharmaceuticals, Qualitest, and AMS - Endo is dedicated to delivering value to our stakeholders: customers, patients, and shareholders. Learn more at www.endo.com.    (Tables Attached)  The following tables present Endo's unaudited Net Revenues for the three and twelve months ended December31, 2013 and 2012:  Endo Health Solutions Inc. Net Revenues (unaudited) (in thousands)                     Three Months Ended      Percent  Twelve Months Ended         Percent                  December 31,            Growth   December 31,                Growth                  2013        2012                 2013          2012 Endo Pharmaceuticals: LIDODERM®        $ 36,372    $ 271,378   (87)  %  $ 602,998     $ 947,680     (36)  % OPANA® ER        53,664      62,556      (14)  %  227,878       299,287       (24)  % Voltaren® Gel    46,904      38,390      22    %  170,841       117,563       45    % PERCOCET®        26,996      29,993      (10)  %  105,814       103,406       2     % FORTESTA® Gel    18,704      9,063       106   %  65,860        30,589        115   % FROVA®           16,811      15,989      5     %  60,927        61,341        (1)   % SUPPRELIN® LA    14,206      14,639      (3)   %  58,334        57,416        2     % VALSTAR®         7,330       6,346       16    %  23,657        27,063        (13)  % VANTAS®          3,228       5,155       (37)  %  13,241        17,507        (24)  % Other Branded    (133)       780         NM  1,700         2,568         (34)  % Products Royalty and      30,561      690         4,329 %  62,765        13,564        363   % Other Revenue Total Endo       $ 254,643   $ 454,979   (44)  %  $ 1,394,015   $ 1,677,984   (17)  % Pharmaceuticals Total Qualitest  $ 197,944   $ 161,955   22    %  $ 730,666     $ 633,265     15    % American Medical Systems: Men's Health     73,158      67,151      9     %  270,343       259,879       4     % Women's Health   28,628      32,458      (12)  %  109,098       128,221       (15)  % BPH Therapy      30,573      33,277      (8)   %  112,785       116,387       (3)   % Total AMS        132,359     132,886     —     %  492,226       504,487       (2)   % Total Revenue    $ 584,946   $ 749,820   (22)  %  $ 2,616,907   $ 2,815,736   (7)   %    The following table presents unaudited condensed consolidated Balance Sheet data at December31, 2013 and December31, 2012:                                                      December31,  December31,                                                     2013         2012 ASSETS CURRENT ASSETS: Cash and cash equivalents                           $ 526,597     $ 529,689 Restricted cash and cash equivalents                770,000       — Accounts receivable                                 725,827       650,547 Inventories, net                                    374,439       344,935 Assets held for sale                                160,257       330,663 Other assets                                        297,387       357,261 Total current assets                                $ 2,854,507   $ 2,213,095 PROPERTY, PLANT AND EQUIPMENT, NET                  372,077       359,293 GOODWILL                                            1,372,832     1,853,566 OTHER INTANGIBLES, NET                              1,872,926     2,047,292 OTHER ASSETS                                        99,514        95,313 TOTAL ASSETS                                        $ 6,571,856   $ 6,568,559 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued expenses               $ 1,243,205   $ 1,554,261 Liabilities related to assets held for sale         31,571        58,576 Other current liabilities                           421,896       138,351 Total current liabilities                           $ 1,696,672   $ 1,751,188 DEFERRED INCOME TAXES                               310,764       496,778 LONG-TERM DEBT, LESS CURRENT PORTION, NET           3,323,844     3,035,031 OTHER LIABILITIES                                   655,360       152,356 STOCKHOLDERS' EQUITY: Total Endo Health Solutions Inc. stockholders'      $ 526,018     $ 1,072,856 equity Noncontrolling interests                            59,198        60,350 Total stockholders' equity                          $ 585,216     $ 1,133,206 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY          $ 6,571,856   $ 6,568,559  The following table presents unaudited condensed consolidated Statement of Cash Flow data for the twelve months ended December31, 2013 and 2012:                                                  Twelve Months Ended December 31,                                               2013              2012 OPERATING ACTIVITIES: Consolidated net loss                         $  (632,414)      $  (688,021) Adjustments to reconcile consolidated Net loss to Net cash provided by operating activities Depreciation and amortization                 255,663           285,524 Stock-based compensation                      38,998            59,395 Amortization of debt issuance costs and       36,264            36,699 premium / discount Other                                         540,275           585,889 Changes in assets and liabilities which       59,731            454,393 provided cash Net cash provided by operating activities     298,517           733,879 INVESTING ACTIVITIES: Purchases of property, plant and equipment,   (94,626)          (98,392) net Acquisitions, net of cash acquired            (3,645)           (3,175) Settlement escrow                             (11,518)          — Increase in restricted cash and cash          (770,000)         — equivalents Other                                         (3,850)           13,100 Net cash used in investing activities         (883,639)         (88,467) FINANCING ACTIVITIES: Issuance of common stock from treasury, net   5,310             (249,938) of (purchases) Cash distributions to noncontrolling          (52,711)          (53,269) interests Principal borrowings (payments) on            548,442           (363,040) indebtedness, net Exercise of Endo Health Solutions Inc. stock  97,129            19,358 options Other                                         (18,645)          1,342 Net cash provided by (used in) financing      579,525           (645,547) activities Effect of foreign exchange rate               1,692             431 NET (DECREASE) INCREASE IN CASH AND CASH      (3,905)           296 EQUIVALENTS LESS: NET (DECREASE) INCREASE IN CASH AND     (813)             (2,749) CASH EQUIVALENTS OF DISCONTINUED OPERATIONS NET (DECREASE) INCREASE IN CASH AND CASH      (3,092)           3,045 EQUIVALENTS OF CONTINUING OPERATIONS CASH AND CASH EQUIVALENTS, BEGINNING OF       529,689           526,644 PERIOD CASH AND CASH EQUIVALENTS, END OF PERIOD      $  526,597        $  529,689    Safe Harbor Statement "This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as "believes," "expects," "anticipates," "intends," "estimates," "plan," "will," "may," "look forward," "intend," "guidance," "future" or similar expressions are forward-looking statements. Because these statements reflect our current views, expectations and beliefs concerning future events, these forward-looking statements involve risks and uncertainties. Investors should note that many factors, as more fully described under the caption "Risk Factors" in our Form 10-K, Form 10-Q and Form 8-K filings with the Securities and Exchange Commission and as otherwise enumerated herein or therein, could affect our future financial results and could cause our actual results to differ materially from those expressed in forward-looking statements contained in our Annual Report on Form 10-K. The forward-looking statements in this press release are qualified by these risk factors. These are factors that, individually or in the aggregate, could cause our actual results to differ materially from expected and historical results. We assume no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.    SOURCE Endo Health Solutions  Website: http://www.endo.com Contact: Investors/Media, Blaine Davis, (484) 216-7158, Investors, Jonathan Neely, (484) 216-6645