EX-99.1 2 ex991.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1
 
News From 

Buena, NJ 08310
tlgtteligentinc8ka201image1.jpg
 
Release Date: August 8, 2017    
 
Contact:
Jenniffer Collins
Teligent, Inc.
(856) 697-4379
www.teligent.com
 
 
TELIGENT, INC. ANNOUNCES SECOND QUARTER 2017 RESULTS 
  
 
BUENA, NJ - (GlobeNewswire) - Teligent, Inc. (NASDAQ: TLGT), a New Jersey-based specialty generic pharmaceutical company, today announced its financial results for the second quarter ended June 30, 2017.
 
Second Quarter 2017 Highlights

•
Total revenues of $18.4 million in the second quarter of 2017, an increase of 7% over the same quarter in 2016.
•
Total net revenues generated from the sale of our generic topical and injectable pharmaceutical products for the second quarters of 2017 and 2016 of $15.9 million and $11.1 million, respectively, an increase of 43% over the same quarter last year.
•
Total net revenues generated from contract manufacturing services and other income for the second quarters of 2017 and 2016 of $2.5 million and $6.0 million, respectively.
•
Total net international revenues for the second quarters of 2017 and 2016 of $3.6 million and $2.8 million, respectively.
•
Gross margin for the second quarter of 2017 equaled 44% as compared to 56% in the second quarter of 2016.
•
Operating loss was $1.8 million in the second quarter of 2017, compared to operating income of $1.1 million in the same quarter in 2016. Operating income was $1.2 million for the six months ended June 30, 2017, compared to operating income of $1.9 million in 2016.
•
Our operating results in the second quarter of 2017 include $5.1 million in research and development costs, compared to $4.8 million in the same quarter in 2016.
•
Adjusted EBITDA (as defined and reconciled to GAAP) for the second quarter of 2017 and 2016 were $0.3 million and $3.0 million, respectively.


•
Adjusted loss per fully diluted share (as defined and reconciled to GAAP) for the second quarter of 2017 was $0.01, compared to adjusted income per fully diluted share (as defined and reconciled to GAAP) for the second quarter of 2016 of $0.02.
•
As a result of the fluctuation in foreign exchange rates during the second quarter of 2017, we recorded a non-cash gain in the amount of $3.8 million related to the foreign currency translation of our intercompany loans to three of our wholly-owned subsidiaries, compared to a non-cash loss in the amount of $0.6 million in the same quarter in 2016.
•
On July 21, 2017, the Company received approval from the U.S. Food and Drug Administration ("FDA") of one Abbreviated New Drug Application ("ANDA") for a topical generic prescription product, Erythromycin Topical Gel USP, 2%, for a total of three approvals in 2017. 
•
In Canada, we filed four Abbreviated New Drug Submissions ("ANDSs") and received three approvals for injectable generic prescription drug products during the second quarter ended June 30, 2017.
Revised Full Year 2017 Financial Guidance

•
The Company now expects total revenue between $75 million and $85 million for the year ending December 31, 2017.
•
The Company now anticipates gross margin of 47% to 50% for the year ending December 31, 2017.

“During the second quarter, we expanded our portfolio with two product launches, and maintained a strong market presence in our existing portfolio of products,’’ said Jason Grenfell-Gardner, President and Chief Executive Officer. “In July, we received approval from the FDA for one of our ANDAs, which we plan to launch this quarter.”
Mr. Grenfell-Gardner continued, “We continue to progress on the significant expansion of our manufacturing facility in New Jersey to support our long-term commitment to executing our TICO strategy by expanding our specialty generic pharmaceutical product portfolio in the topical, injectable, complex, and ophthalmic markets. Revenue from the Teligent portfolio of injectable and topical products increased 43% over the same quarter last year. We now market nineteen products in the US generic topical market, another four products in the US hospital injectable market, and have thirty approved generic products in the Canadian market.”
“We filed two additional ANDAs in the second quarter, and after the recent approval of Erythromycin Topical Gel, we now have 34 ANDAs on file with the US FDA and based on QuintilesIMS Health data as of June 2017, the current total addressable market of these pipeline ANDAs is estimated at approximately $2.0 billion. Significantly, 89% of this total addressable market is for products filed in Generic Drug User Fee Amendments (GDUFA) Year 3 or later. For the remainder of 2017, we believe that up to 10 of our pending ANDAs could be approved, representing a total addressable market of approximately $345 million based on QuintilesIMS Health data as of June 2017,” Mr. Grenfell-Gardner concluded.

The Company will hold a conference call at 4:30 pm ET today, Tuesday, August 8, 2017 to discuss the second quarter 2017 results.
  
The Company invites you to listen to the call by dialing 1-866-393-8366. International participants should call 1-409-350-3154. Participants should ask to be joined into the Teligent, Inc. call.
 
This call is being webcast and can be accessed in the Investor Relations Section of Teligent Inc.'s website at www.teligent.com.
 

 About Teligent, Inc.
 
Teligent is a specialty generic pharmaceutical company. Our mission is to be a leading player in the specialty generic prescription drug market. Learn more on our website www.teligent.com.
 
 
Forward-Looking Statements
 


This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions, and other statements contained in this press release that are not historical facts and statements identified by words such as “plan,” “believe,” “continue,” “should” or words of similar meaning. Factors that could cause actual results to differ materially from these expectations include, but are not limited to: our inability to meet current or future regulatory requirements in connection with existing or future ANDAs; our inability to achieve profitability; our failure to obtain FDA approvals as anticipated; our inability to execute and implement our business plan and strategy; the potential lack of market acceptance of our products; our inability to protect our intellectual property rights; changes in global political, economic, business, competitive, market and regulatory factors; and our inability to complete successfully future product acquisitions. These statements are based on our current beliefs or expectations and are inherently subject to various risks and uncertainties, including those set forth under the caption “Risk Factors” in Teligent, Inc.’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other periodic reports we file with the Securities and Exchange Commission. Teligent, Inc. does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise, except as required by law.
  


Non-GAAP Financial Measures
 
In addition to reporting financial information required in accordance with U.S. generally accepted accounting principles (GAAP), Teligent is also presenting EBITDA and Adjusted EBITDA which are non-GAAP financial measures. Since EBITDA, Adjusted EBITDA and Adjusted EBITDA before product development and research costs are non-GAAP financial measures, they should not be used in isolation or as a substitute for consolidated statements of operations and cash flow data prepared in accordance with GAAP. In addition, Teligent's definition of Adjusted EBITDA may not be comparable to similarly titled non-GAAP financial measures reported by other companies.
 
Adjusted EBITDA, as defined by the Company, is calculated as follows:
 
Net income (loss), plus:
 
Depreciation expense

Amortization of intangibles

Interest expense, net

Non-cash interest expense
 
Provision for income taxes

Inventory step up and acquisition costs related to acquisitions

Foreign currency exchange gain/loss

Non-cash expenses, such as share-based compensation expense

 
The Company believes that Adjusted EBITDA is a meaningful indicator, to both Company management and investors, of the past and expected ongoing operating performance of the Company. EBITDA is a commonly used and widely accepted measure of financial performance. Adjusted EBITDA is deemed by the Company to be a useful performance indicator because it includes an add back of non-cash and non-recurring operating expenses which have little to no bearing on cash flows and may be subject to uncontrollable factors not reflective of the Company's true operational performance.
 
While the Company uses EBITDA, Adjusted EBITDA and Adjusted EBITDA before product development and research costs in managing and analyzing its business and financial condition and believes these non-GAAP financial measures to be useful to investors in evaluating the Company's performance, it is open to certain shortcomings. EBITDA and Adjusted EBITDA do not take into account the impact of capital expenditures on either the liquidity or the financial performance of the Company and likewise omit share-based compensation expenses, which may vary over time and may represent a material portion of overall compensation expense.  Due to the inherent limitations of EBITDA, Adjusted EBITDA and Adjusted EBITDA before product development and research costs, the Company's management utilizes comparable GAAP financial measures to evaluate the business in conjunction with EBITDA and Adjusted EBITDA and encourages investors to do likewise.
 
The Company also presents a non-GAAP financial measure of adjusted net income (loss) and adjusted net income (loss) per diluted share, to the show the adjusted net income when EBITDA adjustments are added back or subtracted out of the traditional GAAP reported net income (loss). Adjusted diluted earnings per share, as defined by the Company, is equal to adjusted net income divided by the actual or anticipated diluted share count for the applicable period.



 
 



TELIGENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except shares and per share information)
(unaudited)
 
 
Three months ended June 30,
 
Six months ended June 30,
 
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
     Product sales, net
$
18,295

 
$
17,025

 
$
38,148

 
$
32,447

     Research and development services and other income
113

 
113

 
151

 
348

          Total revenues
18,408

 
17,138

 
38,299

 
32,795

 
 
 
 
 
 
 
 
Costs and Expenses:
 
 
 
 
 
 
 
     Cost of revenues
10,371

 
7,582

 
19,328

 
15,284

     Selling, general and administrative expenses
4,706

 
3,712

 
9,005

 
7,119

     Product development and research expenses
5,113

 
4,768

 
8,781

 
8,479

          Total costs and expenses
20,190

 
16,062

 
37,114

 
30,882

Operating (loss) income
(1,782
)
 
1,076

 
1,185

 
1,913

 
 
 
 
 
 
 
 
Other Income (Expense):
 
 
 
 
 
 
 
     Foreign currency exchange gain (loss)
3,822

 
(622
)
 
4,901

 
931

     Interest and other expense, net
(2,936
)
 
(3,332
)
 
(6,068
)
 
(6,650
)
(Loss) income before income tax expense
(896
)
 
(2,878
)
 
18

 
(3,806
)
 
 
 
 
 
 
 
 
Income tax expense
23

 
23

 
106

 
45

 
 
 
 
 
 
 
 
Net loss
$
(919
)
 
$
(2,901
)
 
$
(88
)
 
$
(3,851
)
 
 
 
 
 
 
 
 
Basic and diluted loss per share
$
(0.02
)
 
$
(0.05
)
 
$
0.00

 
$
(0.07
)
 
 
 
 
 
 
 
 
Weighted average shares of common stock outstanding:
 
 
 
 
 
 
 
  Basic and diluted shares
53,304,407

 
53,059,799

 
53,250,109

 
53,045,576









TELIGENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except shares and per share information)

 
June 30,
 
December 31,
 
2017
 
2016*
 
(Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
     Cash and cash equivalents
$
50,216

 
$
66,006

     Accounts receivable, net
27,272

 
21,735

     Inventories
14,437

 
12,708

     Prepaid expenses and other receivables
3,084

 
2,847

          Total current assets
95,009

 
103,296

Property, plant and equipment, net
45,072

 
26,215

Intangible assets, net
55,064

 
52,465

Goodwill
456

 
446

Other
784

 
804

          Total assets
$
196,385

 
$
183,226

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
     Accounts payable
$
9,709

 
$
4,614

     Accrued expenses
12,019

 
10,349

          Total current liabilities
21,728

 
14,963

 
 
 
 
Convertible 3.75% senior notes, net of debt discount and debt issuance costs (face of $143,750)
116,030

 
111,391

Deferred tax liability
219

 
205

          Total liabilities
137,977

 
126,559

 
 
 
 
Stockholders’ equity:
 
 
 
    Common stock, $0.01 par value, 100,000,000 shares authorized;
 
 
 
      53,391,948 and 53,148,441 shares issued and outstanding
 
 
 
       as of June 30, 2017 and December 31, 2016, respectively
554

 
551

     Additional paid-in capital
104,695

 
102,624

     Accumulated deficit
(44,991
)
 
(44,903
)
     Accumulated other comprehensive loss, net of taxes
(1,850
)
 
(1,605
)
          Total stockholders’ equity
58,408

 
56,667

             Total liabilities and stockholders' equity
$
196,385

 
$
183,226

 

* Derived from the audited December 31, 2016 financial statements





TELIGENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2017 and 2016
(in thousands)

 
 
June 30, 2017
 
June 30, 2016
Cash flows from operating activities:
 
 
 
    Net loss
$
(88
)
 
$
(3,851
)
    Non-cash expenses
4,613

 
7,266

    Changes in operating assets and liabilities
(5,832
)
 
(821
)
 
 
 
 
Net cash (used in) provided by operating activities
(1,307
)
 
2,594

 
 
 
 
Net cash used in investing activities
(15,286
)
 
(8,524
)
 
 
 
 
Net cash provided by (used in) financing activities
267

 
(93
)
 
 
 
 
Effect of exchange rate on cash and cash equivalents
536

 
33

Net decrease in cash and cash equivalents
(16,326
)
 
(6,023
)
Cash and cash equivalents at beginning of period
66,006

 
87,191

 
 
 
 
Cash and cash equivalents at end of period
$
50,216

 
$
81,201



 
TELIGENT, INC. AND SUBSIDIARIES
GROSS TO NET DEDUCTIONS
(in thousands)
 
 
Three months ended June 30,
 
Six months ended June 30,
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
Gross product sales
$
66,744

 
$
44,563

 
$
121,044

 
$
71,386

 
 
 
 
 
 
 
 
Reduction to gross product sales:
 
 
 
 
 
 
 
              Chargebacks and billbacks
44,090

 
27,059

 
74,105

 
39,404

              Sales discounts and other allowances
6,766

 
6,411

 
14,615

 
11,698

Total reduction to gross product sales
50,856

 
33,470

 
88,720

 
51,102

 
 
 
 
 
 
 
 
Product sales, net
15,888

 
11,093

 
32,324

 
20,284

 
 
 
 
 
 
 
 
Contract manufacturing product sales
2,407

 
5,932

 
5,824

 
12,163

 
 
 
 
 
 
 
 
Total product sales, net
$
18,295

 
$
17,025

 
$
38,148

 
$
32,447

 



TELIGENT, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(in thousands) 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
Net loss
 
$
(919
)
 
$
(2,901
)
 
$
(88
)
 
$
(3,851
)
 
 
 
 
 
 
 
 
 
Depreciation
 
427

 
222

 
822

 
396

Amortization of intangibles
 
709

 
732

 
1,396

 
1,437

Interest expense, net
 
578

 
1,259

 
1,429

 
2,572

Non-cash interest expense
 
2,358

 
2,073

 
4,639

 
4,078

Provision for income taxes
 
23

 
23

 
106

 
45

EBITDA
 
3,176

 
1,408

 
8,304

 
4,677

 
 
 
 
 
 
 
 
 
Inventory step-up, related to acquisition
 
—

 
187

 
—

 
530

Foreign currency exchange (gain) loss
 
(3,822
)
 
622

 
(4,901
)
 
(931
)
Non-cash stock-based compensation expense
 
896

 
756

 
1,739

 
1,509

Adjusted EBITDA
 
250

 
2,973

 
5,142

 
5,785

 
 
 
 
 
 
 
 
 
Product development and research expenses
 
5,113

 
4,768

 
8,781

 
8,479

 
 
 
 
 
 
 
 
 
Adjusted EBITDA, before Product development and research expenses
 
$
5,363

 
$
7,741

 
$
13,923

 
$
14,264

 
 
TELIGENT, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP ADJUSTED NET INCOME (LOSS)
(in thousands, except share and per share information) 
 
Three months ended June 30,
 
Six months ended June 30,
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
Net loss
$
(919
)
 
$
(2,901
)
 
$
(88
)
 
$
(3,851
)
 
 
 
 
 
 
 
 
Non-cash interest expense
2,358

 
2,073

 
4,639

 
4,078

Provision for income taxes
23

 
23

 
106

 
45

Amortization of intangibles
709

 
732

 
1,396

 
1,437

Inventory step-up, related to acquisition
—

 
187

 
—

 
530

Foreign currency exchange (gain) loss
(3,822
)
 
622

 
(4,901
)
 
(931
)
Non-cash stock-based compensation expense
896

 
756

 
1,739

 
1,509

Adjusted net (loss) income
$
(755
)
 
$
1,492

 
$
2,891

 
$
2,817

 
 
 
 
 
 
 
 
Non-GAAP adjusted net (loss) income per diluted share
$
(0.01
)
 
$
0.02

 
$
0.05

 
$
0.04