Endo Reports Second Quarter Financial Results

                Endo Reports Second Quarter Financial Results

  PR Newswire

  DUBLIN, July 31, 2014

-- Total quarterly revenues of $719 million, reported diluted (GAAP) EPS of
$0.13 and adjusted diluted EPS of $1.06. 

-- Strong financial results driven by combination of base business performance
and incremental growth from accretive acquisitions completed during the past
year.

-- Company raises expected 2014 revenues to a range from $2.72 billion to
$2.80 billion and raises expected 2014 adjusted diluted EPS to a range from
$3.80 to $4.00. 

-- Company expects 2014 reported diluted (GAAP) loss per share to be in the
range from $1.77 to $1.57. 

-- Financial guidance includes closed acquisitions and the incremental
interest expense related to the placement of $750 million of 5.375% Senior
Notes. 

DUBLIN, July 31, 2014 /PRNewswire/ -- Endo International plc (NASDAQ: ENDP)
(TSX: ENL) today reported second quarter 2014 revenues of $719 million, an
increase of 1 percent compared to second quarter 2013 revenues of $712
million. Endo reported net income of $21 million in the second quarter 2014
compared to net income of $35 million in the second quarter of 2013. As
detailed in the supplemental financial information below, adjusted net income
for the three months ended June 30, 2014 increased by 4 percent to $174
million, compared to adjusted net income of $166 million for the second
quarter of 2013.

Reported diluted EPS for the second quarter of 2014 was $0.13, compared to the
second quarter 2013 reported earnings per share of $0.30. The decrease in
reported diluted EPS is attributable to increased interest expense, a loss on
extinguishment of debt, a smaller contribution from other income and an
increase in the number of shares outstanding in the second quarter 2014.

Adjusted diluted EPS decreased by 25 percent to $1.06 for the second quarter
of 2014 compared to $1.42 for the same period in 2013. The decrease in
adjusted diluted EPS is primarily attributable to an increase in the number of
shares outstanding. The increase in shares outstanding is attributable to
additional Endo shares that were issued to exchange for the former shares of
Paladin Labs as well as the dilutive effects of the company's 1.75%
Convertible Notes and related warrants.

"Endo delivered strong performance across each of our business segments in the
second quarter. We had organic growth in our core products, advanced our
pipeline and supplemented our growth through strategic additions," said Rajiv
De Silva, President and CEO of Endo. "As a result of our performance, we are
raising financial guidance for full-year 2014. More importantly, our strong
financial results support our continued pursuit of organic growth drivers, and
strategic external growth opportunities where we see a clear case for
value-creation for our shareholders. Over the past 12 months, we have made
substantial progress towards our goal of becoming a leading specialty
healthcare company and we are excited by the opportunities available to build
upon this success."

FINANCIAL PERFORMANCE



($ in thousands, except per share amounts)
            2nd Quarter                     Six Months Ended June 30,
            2014        2013        Change  2014          2013          Change
Total       $ 718,684   $ 712,148   1    %  $ 1,313,293   $ 1,370,642   (4)  %
Revenues
Reported    $ 21,160    $ 34,999    (40) %  $ (415,752)   $ 50,348      NM
Net Income
Reported    $ 0.13      $ 0.30      (57) %  $ (2.96)      $ 0.44        NM
Diluted EPS
Adjusted    $ 173,682   $ 166,348   4    %  $ 307,747     $ 289,586     6    %
Net Income
Adjusted
Diluted
Weighted    163,369     117,221     39   %  154,365         115,205     34   %
Average
Shares
Adjusted    $ 1.06      $ 1.42      (25) %  $ 1.99        $ 2.51        (21) %
Diluted EPS

U.S. BRANDED PHARMACEUTICALS

On July 7, Endo Pharmaceuticals Inc. announced positive top-line results from
its pivotal Phase III efficacy study of BEMA ^® buprenorphine in
opioid-experienced patients. Subsequently, the company participated in a
pre-NDA meeting with representatives from FDA. Based on the discussion at that
meeting, the company is planning on filing a New Drug Application (NDA) for
BEMA buprenorphine by late 2014 or early 2015.

BEMA buprenorphine is being developed for the management of pain severe enough
to require daily, around-the-clock, long-term opioid treatment and for which
alternative treatment options are inadequate in both patients who are opioid
naïve and opioid experienced.

Second quarter 2014 branded pharmaceutical revenues were $249 million, a 40
percent decrease when compared to the second quarter 2013 branded
pharmaceutical revenues. This decrease was primarily attributable to the
decrease in net sales of LIDODERM ^® . Second quarter 2014 net sales of
LIDODERM decreased 81 percent compared to the second quarter 2013. 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 second
quarter was partially offset by $13 million of royalty revenues that Endo
recognized per the terms of its previously announced Watson (now doing
business as Actavis, Inc.) Settlement Agreement.

Second quarter 2014 net sales of Voltaren ^® Gel increased 7 percent when
compared to second quarter 2013 net sales. This increase is attributable to
growth in demand. According to IMS Health, total prescriptions for Voltaren
Gel increased by 18 percent in the second quarter of 2014 when compared to the
second quarter of 2013.

Second quarter 2014 net sales of OPANA ^® ER decreased 7 percent when compared
to the second quarter 2013. This decrease is primarily attributable to a
year-over-year decrease in demand. According to IMS Health, total
prescriptions for OPANA ER decreased by 13 percent in the second quarter of
2014 when compared to the second quarter of 2013.

U.S. GENERIC PHARMACEUTICALS

On June 24, Endo announced that it reached a definitive agreement to acquire
DAVA Pharmaceuticals, Inc., a privately-held company specializing in marketed,
pre-launch and pipeline generic pharmaceuticals, for $575 million in cash,
with additional cash consideration of up to $25 million contingent on the
achievement of certain sales milestones. The acquisition enhances Endo's
commercialization and development platform and is expected to be immediately
accretive to Endo's 2014 adjusted earnings per share.

Second quarter 2014 generic product net sales of $272 million increased 60
percent when compared to second quarter 2013 generic product net sales. This
increase is mainly attributable to the addition of sales from Boca Pharmacal
following the close of that acquisition in February 2014 and sales of the
Authorized Generic (AG) version of LIDODERM following the launch of that
product by Qualitest in May 2014.

INTERNATIONAL PHARMACEUTICALS

On July 24, the company announced the completion of its acquisition of Grupo
Farmaceutico Somar ^® , a leading, privately owned specialty pharmaceuticals
company based in Mexico City. The combination of Somar and Endo further
advances Endo's transformation into a leading global specialty healthcare
company and establishes a platform for growth in key emerging markets in Latin
America.

Endo will leverage its global resources along with Somar's proven commercial
organization and scalable manufacturing facilities to take advantage of
Somar's portfolio of current products and pipeline of over 60 new products
that are expected to launch over the next three years.

Somar generated approximately $100 million of revenue in 2013 and has
approximately 1,200 employees.

Second quarter 2014 sales of $72.1 million for the International
Pharmaceuticals segment are attributable to the Paladin Labs business
following the February 28th closing of the acquisition.

DEVICES

In the second quarter 2014, Endo reported device sales of $126 million
compared to second quarter 2013 sales of $126 million. In the second quarter
2014, Men's Health sales increased 3 percent compared to the second quarter
2013. This increase is primarily attributable to increased sales of erectile
restoration products.

In the second quarter 2014 Women's Health sales decreased by 5 percent
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.

Sales for AMS's benign prostatic hyperplasia (BPH) business decreased 3
percent in the second quarter of 2014 when compared to the second quarter of
2013. This decrease is primarily attributable to a decrease in GreenLight™
console sales and is partially offset by an increase of 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 and procedure
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:

  *Total revenue to be between $2.72 billion and $2.80 billion
  *Reported (GAAP) diluted loss per share to be between$1.77 and $1.57
  *Adjusted diluted earnings per share to be between $3.80 and $4.00
  *Adjusted diluted earnings per share assume full year adjusted diluted
    shares outstanding of 157 million

The company's 2014 guidance is based on certain assumptions including:

  *Adjusted gross margin of between 63 percent and 65 percent
  *Year-over-year high-single digit percentage decrease of Adjusted Operating
    Expenses
  *Adjusted interest expense of approximately $220 million
  *Adjusted effective tax rate of between 23 percent and 24 percent

Balance Sheet Update

In June 2014 the company announced the placement of $750 million of 5.375%
Senior Notes due 2023. Endo intends to use the net proceeds from the offering
for general corporate purposes, which may include acquisitions, including the
acquisition of DAVA Pharmaceuticals, Inc.

Conference Call Information

Endo will conduct a conference call with financial analysts to discuss this
news release today at 8:30 a.m. ET. The dial-in number to access the call is
U.S./Canada (877) 415-3179, International (857) 244-7322, and the passcode is
75265738. Please dial in 10 minutes prior to the scheduled start time.

A replay of the call will be available from July 31, 2014 at 11:00 a.m. ET
until 11:59 p.m. ET on August 7, 2014 by dialing (888)-286-8010 (U.S./Canada)
or (617)-801-6888 (international) and entering the passcode 13608816.

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
August 7, 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 June 30, 2014 and 2013 (in thousands,
except per share data):

Three Months Ended June Actual               Adjustments            Non-GAAP
30, 2014 (unaudited)    Reported(GAAP)                              Adjusted
REVENUES                $     718,684        $   —                  $ 718,684
COSTS AND EXPENSES:
Cost of revenues        345,739              (84,899)       (1)     260,840
Selling, general and    171,609              (15,890)       (2)     155,719
administrative
Research and            41,174               (10,646)       (3)     30,528
development
Litigation-related and
other contingencies,    35,954               (35,954)       (4)     —
net
Acquisition-related and 19,618               (19,618)       (5)     —
integration items
OPERATING INCOME        $     104,590        $   167,007            $ 271,597
INTEREST EXPENSE, NET   52,181               (3,346)        (6)     48,835
LOSS ON EXTINGUISHMENT  20,089               (20,089)       (7)     —
OF DEBT
OTHER INCOME, NET       (6,828)              3,850          (8)     (2,978)
INCOME FROM CONTINUING
OPERATIONS BEFORE       $     39,148         $   186,592            $ 225,740
INCOME TAX
INCOME TAX              15,594               35,489         (9)     51,083
INCOME FROM CONTINUING  $     23,554         $   151,103            $ 174,657
OPERATIONS
DISCONTINUED            (3,168)              3,363          (10)    195
OPERATIONS, NET OF TAX
CONSOLIDATED NET INCOME $     20,386         $   154,466            $ 174,852
Less: Net (loss) income
attributable to         (774)                1,944          (11)    1,170
noncontrolling
interests
NET INCOME ATTRIBUTABLE
TO ENDO INTERNATIONAL   $     21,160         $   152,522            $ 173,682
PLC
DILUTED EARNINGS PER
SHARE DATA ATTRIBUTABLE
TO ENDO INTERNATIONAL
PLC ORDINARY
SHAREHOLDERS:
Continuing operations   $     0.15                                  $ 1.06
Discontinued operations (0.02)                                      —
DILUTED EARNINGS PER    $     0.13                                  $ 1.06
SHARE
DILUTED WEIGHTED        163,369                                     163,369
AVERAGE SHARES




Notes to reconciliation of our GAAP statements of operations to our adjusted
statements of operations:
(1) To exclude amortization of commercial intangible assets related to
developed technology of $65,755 and a fair value step-up in inventory of
$19,144.(2) To exclude certain separation benefits and other costs incurred in
connection with continued efforts to enhance the company's operations of
$11,167, amortization of intangible assets of $2,518, mesh litigation-related
defense costs of $18,905, offset by insurance recoveries of $(22,000), an
adjustment to the accrual for excise tax payments of $(4,700) and a charge of
$10,000 related to the non-recoverability of certain non-trade receivables
that did not relate to our core operating activities.(3) To exclude milestone
payments to partners of $10,350 and adjustments to accruals for other costs
incurred in connection with continued efforts to enhance the company's
operations of $296.(4) To exclude the impact of net charges primarily for
mesh-related product liability.(5) To exclude acquisition and integration
costs of $19,618 associated with the Paladin, Boca and other acquisitions.(6)
To exclude additional non-cash interest expense related to our 1.75%
Convertible Senior Subordinated Notes.(7) To exclude the unamortized debt
issuance costs written off and recorded as a net loss on extinguishment of
debt in connection with various refinancing and note repurchase activity.(8)
To exclude the net gain on sale of certain early-stage drug discovery and
development assets.(9)Primarily to reflect the cash tax savings from acquired
tax attributes and the tax effect of the pre-tax adjustments above at
applicable tax rates.(10) To exclude the after-tax adjustment to the
previously recorded gain on sale of the HealthTronics business and certain
other sale-related costs.(11) To exclude the impact of the portion of certain
of the above adjustments attributable to noncontrolling interests.



Three Months Ended June Actual               Adjustments            Non-GAAP
30, 2013 (unaudited)    Reported(GAAP)                              Adjusted
REVENUES                $     712,148        $   —                  $ 712,148
COSTS AND EXPENSES:
Cost of revenues        273,413              (53,729)       (1)     219,684
Selling, general and    244,302              (63,819)       (2)     180,483
administrative
Research and            33,393               (3,367)        (3)     30,026
development
Litigation-related and  59,971               (59,971)       (4)     —
other contingencies
Asset impairment        2,849                (2,849)        (5)     —
charges
Acquisition-related and 1,825                (1,825)        (6)     —
integration items
OPERATING INCOME        $     96,395         $   185,560            $ 281,955
INTEREST EXPENSE, NET   42,334               (5,662)        (7)     36,672
OTHER (INCOME) EXPENSE, (16,700)             17,593         (8)     893
NET
INCOME FROM CONTINUING
OPERATIONS BEFORE       $     70,761         $   173,629            $ 244,390
INCOME TAX
INCOME TAX              29,012               50,834         (9)     79,846
INCOME FROM CONTINUING  $     41,749         $   122,795            $ 164,544
OPERATIONS
DISCONTINUED            6,362                8,554          (10)    14,916
OPERATIONS, NET OF TAX
CONSOLIDATED NET INCOME $     48,111         $   131,349            $ 179,460
Less: Net income
attributable to         13,112               —                      13,112
noncontrolling
interests
NET INCOME ATTRIBUTABLE
TO ENDO INTERNATIONAL   $     34,999         $   131,349            $ 166,348
PLC
DILUTED EARNINGS PER
SHARE DATA ATTRIBUTABLE
TO ENDO INTERNATIONAL
PLC ORDINARY
SHAREHOLDERS:
Continuing operations   $     0.36                                  $ 1.40
Discontinued operations (0.06)                                      0.02
DILUTED EARNINGS PER    $     0.30                                  $ 1.42
SHARE
DILUTED WEIGHTED        117,221                                     117,221
AVERAGE SHARES




Notes to reconciliation of our GAAP statements of operations to our adjusted
statements of operations:
(1) To exclude amortization of commercial intangible assets related to
marketed products of $48,587, certain separation benefits and other costs
incurred in connection with continued efforts to enhance the company's
operations of $1,142 and accruals for milestone payments to partners of
$4,000.
(2) To exclude certain separation benefits and other costs incurred in
connection with continued efforts to enhance the company's operations of
$48,451, amortization of customer relationships of $2,502 and mesh
litigation-related defense costs of $12,866.
(3) To exclude milestone payments to partners of $1,398 and certain separation
benefits and other costs incurred in connection with continued efforts to
enhance the company's operations of $1,969.
(4) To exclude the impact of charges primarily for mesh-related product
liability.
(5) To exclude asset impairment charges.
(6) To exclude acquisition and integration costs.
(7) To exclude additional non-cash interest expense related to our 1.75%
Convertible Senior Subordinated Notes.
(8) To exclude $(16,545) related to patent litigation settlement income and
other income of $(1,048).
(9) Primarily to reflect the cash tax savings from acquired tax attributes and
the tax effect of the pre-tax adjustments above at applicable tax rates.
(10) To exclude certain items related to the HealthTronics business, which is
reported as Discontinued operations, net of tax.

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 six months ended June 30, 2014 and 2013 (in thousands, except
per share data):

Six Months Ended June  Actual               Adjustments           Non-GAAP
30, 2014 (unaudited)   Reported(GAAP)                             Adjusted
REVENUES               $    1,313,293       $  —                  $ 1,313,293
COSTS AND EXPENSES:
Cost of revenues       597,700              (141,314)       (1)   456,386
Selling, general and   398,313              (94,555)        (2)   303,758
administrative
Research and           82,854               (20,722)        (3)   62,132
development
Litigation-related and
other contingencies,   662,105              (662,105)       (4)   —
net
Acquisition-related    64,887               (64,887)        (5)   —
and integration items
OPERATING (LOSS)       $    (492,566)       $  983,583            $ 491,017
INCOME
INTEREST EXPENSE, NET  105,579              (9,315)         (6)   96,264
LOSS ON EXTINGUISHMENT 29,685               (29,685)        (7)   —
OF DEBT
OTHER INCOME, NET      (12,860)             3,850           (8)   (9,010)
(LOSS) INCOME FROM
CONTINUING OPERATIONS  $    (614,970)       $  1,018,733          $ 403,763
BEFORE INCOME TAX
INCOME TAX             (199,827)            293,984         (9)   94,157
(LOSS) INCOME FROM     $    (415,143)       $  724,749            $ 309,606
CONTINUING OPERATIONS
DISCONTINUED           2,251                694             (10)  2,945
OPERATIONS, NET OF TAX
CONSOLIDATED NET       $    (412,892)       $  725,443            $ 312,551
(LOSS) INCOME
Less: Net income
attributable to        2,860                1,944           (11)  4,804
noncontrolling
interests
NET (LOSS) INCOME
ATTRIBUTABLE TO ENDO   $    (415,752)       $  723,499            $ 307,747
INTERNATIONAL PLC
DILUTED EARNINGS PER
SHARE DATA
ATTRIBUTABLE TO ENDO
INTERNATIONAL PLC
ORDINARY SHAREHOLDERS:
Continuing operations  $    (2.96)                                $ 2.00
Discontinued           —                                          (0.01)
operations
DILUTED (LOSS)         $    (2.96)                                $ 1.99
EARNINGS PER SHARE
DILUTED WEIGHTED       140,252                                    154,365
AVERAGE SHARES




Notes to reconciliation of our GAAP statements of operations to our adjusted
statements of operations:
(1) To exclude amortization of commercial intangible assets related to
developed technology of $118,434, a fair value step-up in inventory of $22,725
and accruals for milestone payments to partners of $155.
(2) To exclude certain separation benefits and other costs incurred in
connection with continued efforts to enhance the company's operations of
$12,368, amortization of intangible assets of $5,033, mesh litigation-related
defense costs of $33,854, offset by insurance recoveries of $(22,000),
accruals for excise tax payments of $55,300 and a charge of $10,000 related to
the non-recoverability of certain non-trade receivables that did not relate to
our core operating activities.
(3) To exclude milestone payments to partners of $21,350 and adjustments to
accruals for other costs incurred in connection with continued efforts to
enhance the company's operations of $(628).
(4) To exclude the impact of net charges primarily for mesh-related product
liability.
(5) To exclude acquisition and integration costs of $64,887 associated with
the Paladin, Boca and other acquisitions.
(6) To exclude additional non-cash interest expense related to our 1.75%
Convertible Senior Subordinated Notes.
(7) To exclude the unamortized debt issuance costs written off and recorded as
a net loss on extinguishment of debt in connection with various refinancing
and note repurchase activity.
(8) To exclude the net gain on sale of certain early-stage drug discovery and
development assets.
(9) Primarily to reflect the cash tax savings from acquired tax attributes and
the tax effect of the pre-tax adjustments above at applicable tax rates.
(10) To exclude the after-tax adjustment to the previously recorded gain on
sale of the HealthTronics business and certain other sale-related costs.
(11) To exclude the impact of the portion of certain of the above adjustments
attributable to noncontrolling interests.



Six Months Ended June 30, 2013  Actual          Adjustments       Non-GAAP
(unaudited)                     Reported(GAAP)                    Adjusted
REVENUES                        $  1,370,642    $  —              $ 1,370,642
COSTS AND EXPENSES:
Cost of revenues                527,794         (98,465)    (1)   429,329
Selling, general and            471,534         (85,086)    (2)   386,448
administrative
Research and development        72,162          (9,182)     (3)   62,980
Litigation-related and other    128,203         (128,203)   (4)   —
contingencies
Asset impairment charges        3,949           (3,949)     (5)   —
Acquisition-related and         2,383           (2,383)     (6)   —
integration items
OPERATING INCOME                $  164,617      $  327,268        $ 491,885
INTEREST EXPENSE, NET           86,610          (11,112)    (7)   75,498
LOSS ON EXTINGUISHMENT OF DEBT  11,312          (11,312)    (8)   —
OTHER (INCOME) EXPENSE, NET     (34,969)        36,820      (9)   1,851
INCOME FROM CONTINUING          $  101,664      $  312,872        $ 414,536
OPERATIONS BEFORE INCOME TAX
INCOME TAX                      38,262          87,392      (10)  125,654
INCOME FROM CONTINUING          $  63,402       $  225,480        $ 288,882
OPERATIONS
DISCONTINUED OPERATIONS, NET OF 11,312          13,758      (11)  25,070
TAX
CONSOLIDATED NET INCOME         $  74,714       $  239,238        $ 313,952
Less: Net income attributable   24,366          —                 24,366
to noncontrolling interests
NET INCOME ATTRIBUTABLE TO ENDO $  50,348       $  239,238        $ 289,586
INTERNATIONAL PLC
DILUTED EARNINGS PER SHARE DATA
ATTRIBUTABLE TO ENDO
INTERNATIONAL PLC ORDINARY
SHAREHOLDERS:
Continuing operations           $  0.55                           $ 2.51
Discontinued operations         (0.11)                            —
DILUTED EARNINGS PER SHARE      $  0.44                           $ 2.51
DILUTED WEIGHTED AVERAGE SHARES 115,205                           115,205



Notes to reconciliation of our GAAP statements of operations to our adjusted
statements of operations:
(1) To exclude amortization of commercial intangible assets related to
marketed products of $93,323, certain separation benefits and other costs
incurred in connection with continued efforts to enhance the company's
operations of $1,142 and accruals for milestone payments to partners of
$4,000.
(2) To exclude certain separation benefits and other costs incurred in
connection with continued efforts to enhance the company's operations of
$58,904, amortization of customer relationships of $5,016 and mesh
litigation-related defense costs of $21,166.
(3) To exclude milestone payments to partners of $3,972 and certain separation
benefits and other costs incurred in connection with continued efforts to
enhance the company's operations of $5,210.
(4) To exclude the impact of charges primarily for mesh-related product
liability.
(5) To exclude asset impairment charges.
(6) To exclude acquisition and integration costs.
(7) To exclude additional non-cash interest expense related to our 1.75%
Convertible Senior Subordinated Notes.
(8) To exclude the unamortized debt issuance costs written off and recorded as
a loss on extinguishment of debt upon our March 2013 prepayment on our Term
Loan indebtedness as well as upon the amendment and restatement of our
existing credit facility.
(9) To exclude $(35,772) related to patent litigation settlement income and
other income of $(1,048).
(10) Primarily to reflect the cash tax savings from acquired tax attributes
and the tax effect of the pre-tax adjustments above at applicable tax rates.
(11) To exclude certain items related to the HealthTronics business, which is
reported as Discontinued operations, net of tax.

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
                                                        December 31, 2014
Projected GAAP diluted income per common share          $ (1.77)  To $ (1.57)
Upfront and milestone-related payments to partners      0.17         0.17
Amortization of commercial intangible assets and fair   1.70         1.70
value inventory step-up
Acquisition related, integration and restructuring      1.14         1.14
charges
Basic to Diluted weighted average share count effect    0.10         0.10
Charges for litigation and other legal matters          4.53         4.53
Interest expense adjustment for non-cash interest
related to our 1.75% Convertible Senior Subordinated    0.09         0.09
Notes and other treasury related items
Tax effect of pre-tax adjustments at the applicable tax
rates and certain other expected cash tax savings as a  (2.16)       (2.16)
result of acquisitions
Diluted adjusted income per common share guidance       $ 3.80    To $ 4.00

The company's guidance is being issued based on certain assumptions including:

  *Certain of the above amounts are based on estimates and there can be no
    assurance that Endo will achieve these results.
  *Includes all completed business development transactions as of July 31,
    2014.

About Endo

Endo International plc is a global specialty healthcare company focused on
improving patients' lives while creating shareholder value. Endo develops,
manufactures, markets, and distributes quality branded pharmaceutical, generic
and device products through its operating companies. Endo has global
headquarters in Dublin, Ireland, and U.S. headquarters in Malvern, PA. Learn
more at www.endo.com .

(Tables Attached)

The following tables present Endo's unaudited Net Revenues for the three and
six months ended June 30, 2014 and 2013:

Endo International plc

Net Revenues (unaudited)

(in thousands)
                 Three Months Ended      Percent  Six Months Ended June 30,   Percent
                 June 30,                Growth                               Growth
                 2014        2013                 2014          2013
U.S. Branded
Pharmaceuticals:
LIDODERM®        $ 43,002    $ 229,656   (81)  %  $ 76,082      $ 416,680     (82)  %
OPANA® ER        54,109      57,951      (7)   %  101,062       114,278       (12)  %
Voltaren® Gel    45,797      42,783      7     %  83,356        78,893        6     %
PERCOCET®        31,543      25,950      22    %  60,523        52,568        15    %
FORTESTA® Gel    12,004      17,477      (31)  %  23,147        32,131        (28)  %
FROVA®           18,398      14,312      29    %  33,678        28,089        20    %
SUPPRELIN® LA    17,049      16,597      3     %  30,806        30,023        3     %
VALSTAR®         6,657       4,888       36    %  12,036        10,303        17    %
VANTAS®          2,416       3,107       (22)  %  4,114         6,974         (41)  %
SUMAVEL®         3,176       —           NM       3,176         —             NM
AVEED™           324         —           NM       324           —             NM
Other Branded    605         1,052       (42)  %  1,181         1,325         (11)  %
Products
Royalty and      13,467      1,874       619   %  53,227        1,972         2,599 %
Other Revenue
Total U.S.
Branded          $ 248,547   $ 415,647   (40)  %  $ 482,712     $ 773,236     (38)  %
Pharmaceuticals
Total U.S.
Generic          $ 272,213   $ 170,530   60    %  $ 484,068     $ 348,783     39    %
Pharmaceuticals
Total
International    72,088      —           NM       96,910        —             NM
Pharmaceuticals
Devices:
Men's Health     70,069      68,081      3     %  138,390       135,649       2     %
Women's Health   26,393      27,666      (5)   %  52,230        56,270        (7)   %
BPH Therapy      29,374      30,224      (3)   %  58,983        56,704        4     %
Total Devices    125,836     125,971     —     %  249,603       248,623       —     %
Total Revenue    $ 718,684   $ 712,148   1     %  $ 1,313,293   $ 1,370,642   (4)   %

The following table presents unaudited condensed consolidated Balance Sheet
data at June 30, 2014 and December 31, 2013:

                                                June 30,2014  December 31,2013
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                       $ 1,427,244   $   526,597
Restricted cash and cash equivalents            65,777        770,000
Marketable securities                           46,279        —
Accounts receivable                             875,932       725,827
Inventories, net                                427,199       374,439
Assets held for sale                            —             160,257
Other assets                                    322,346       297,387
Total current assets                            $ 3,164,777   $   2,854,507
TOTAL NON-CURRENT ASSETS                        6,797,129     3,717,349
TOTAL ASSETS                                    $ 9,961,906   $   6,571,856
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses           $ 1,989,757   $   1,247,083
Liabilities related to assets held for sale     —             31,571
Other current liabilities                       186,478       418,018
Total current liabilities                       $ 2,176,235   $   1,696,672
LONG-TERM DEBT, LESS CURRENT PORTION, NET       4,229,895     3,323,844
OTHER LIABILITIES                               711,156       966,124
STOCKHOLDERS' EQUITY:
Total Endo International plc shareholders'      $ 2,807,489   $   526,018
equity
Noncontrolling interests                        37,131        59,198
Total shareholders' equity                      $ 2,844,620   $   585,216
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY      $ 9,961,906   $   6,571,856

The following table presents unaudited condensed consolidated Statement of
Cash Flow data for the six months ended June 30, 2014 and 2013:

                                                     Six Months Ended June 30,
                                                     2014           2013
OPERATING ACTIVITIES:
Consolidated net (loss) income                       $  (412,892)   $ 74,714
Adjustments to reconcile consolidated Net (loss)
income to Net cash (used in) provided by operating
activities
Depreciation and amortization                        152,818        135,051
Share-based compensation                             14,376         22,753
Amortization of debt issuance costs and premium /    17,993         18,567
discount
Other                                                (140,231)      29,237
Changes in assets and liabilities which provided     315,305        (163,291)
(used) cash
Net cash (used in) provided by operating activities  (52,631)       117,031
INVESTING ACTIVITIES:
Purchases of property, plant and equipment, net      (40,379)       (37,029)
Acquisitions, net of cash acquired                   (203,088)      (3,645)
Proceeds from sale of business, net                  54,521         —
Settlement escrow                                    3,148          —
Decrease in restricted cash and cash equivalents     704,223        —
Other                                                69,916         (12,673)
Net cash provided by (used in) investing activities  588,341        (53,347)
FINANCING ACTIVITIES:
Cash distributions to noncontrolling interests       (6,144)        (24,349)
Borrowings (payments) on indebtedness, net           373,875        (119,359)
Exercise of options                                  31,616         52,483
Other                                                (56,539)       (15,715)
Net cash provided by (used in) financing activities  342,808        (106,940)
Effect of foreign exchange rate                      4,716          948
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 883,234        (42,308)
LESS: NET DECREASE IN CASH AND CASH EQUIVALENTS OF   (17,413)       (5,968)
DISCONTINUED OPERATIONS
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 900,647        (36,340)
OF CONTINUING OPERATIONS
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD       526,597        529,689
CASH AND CASH EQUIVALENTS, END OF PERIOD             $  1,427,244   $ 493,349

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 and Canadian securities
legislation. 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 Endo's current views,
expectations and beliefs concerning future events, these forward-looking
statements involve risks and uncertainties. Although Endo believes that these
forward-looking statements and information are based upon reasonable
assumptions and expectations, readers should not place undue reliance on them,
or any other forward-looking statements or information in this news release.
Investors should note that many factors, as more fully described in the
documents filed by Endo with securities regulators in the United States and
Canada including under the caption "Risk Factors" in Endo's Form 10-K, Form
10-Q and Form 8-K filings with the Securities and Exchange Commission and with
securities regulators in Canada on System for Electronic Document Analysis and
Retrieval ("SEDAR") and as otherwise enumerated herein or therein, could
affect Endo's future financial results and could cause Endo's actual results
to differ materially from those expressed in forward-looking statements
contained in Endo's 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 Endo's actual results to
differ materially from expected and historical results. Endo assumes no
obligation to publicly update any forward-looking statements, whether as a
result of new information, future developments or otherwise, except as may be
required under applicable securities law.

Contact: Investors/Media, Blaine Davis +353-1-669-6635 or (484) 216-7158;
Investors, Jonathan Neely (484) 216-6645
 
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