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
 
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