Warner Chilcott – WCRX – Reports Operating Results for the Quarter

Warner Chilcott plc (Nasdaq:WCRX) announced its results for the quarter ended September 30, 2012.

Total revenue in the quarter ended September 30, 2012 was $606 million, a decrease of $49 million, or 7%, compared to the quarter ended September 30, 2011. For the quarter ended September 30, 2012, the decrease in revenues as compared to the prior year quarter was primarily driven by a decrease in ACTONEL revenues of $47 million, due in large part to continuing declines in ACTONEL rest of world (“ROW”) and Canadian net sales following the 2010 loss of exclusivity in Western Europe and Canada, as well as the overall declines in the U.S. oral bisphosphonate market, offset, in part, by net sales growth in certain promoted products, primarily LO LOESTRIN FE, ATELVIA and ESTRACE Cream. Combined, net sales of these three products increased $21 million, or 28%, compared to the prior year quarter.

We reported GAAP net income of $113 million, or $0.45 per diluted share, in the quarter ended September 30, 2012, compared with GAAP net income of $33 million, or $0.13 per diluted share, in the prior year quarter. Cash net income (or CNI, as defined below) for the quarter ended September 30, 2012 was $241 million, compared to $185 million in the prior year quarter. Adjusted CNI was $247 million in the quarter ended September 30, 2012, an increase of $18 million, or 8%, compared to adjusted CNI of $229 million in the prior year quarter. In computing adjusted CNI for the quarter ended September 30, 2012, we excluded a $6 million litigation-related charge, net of tax. In computing adjusted CNI for the quarter ended September 30, 2011 we excluded $44 million of restructuring costs, net of tax, related to the restructuring of certain of our Western European operations.

WCRX – Revenue

Total revenue in the quarter ended September 30, 2012 was $606 million, a decrease of $49 million, or 7%, compared to the prior year quarter. For the quarter ended September 30, 2012, the decrease in revenues as compared to the prior year quarter was primarily driven by a decrease in ACTONEL revenues of $47 million, due in large part to continuing declines in ACTONEL ROW and Canadian net sales following the 2010 loss of exclusivity in Western Europe and Canada, as well as the overall declines in the U.S. oral bisphosphonate market, offset, in part, by net sales growth in certain promoted products, primarily LO LOESTRIN FE, ATELVIA and ESTRACE Cream. Combined, net sales of these three products increased $21 million, or 28%, compared to the prior year quarter.

WCRX – Net Income, Cash Net Income and Adjusted Cash Net Income

For the quarter ended September 30, 2012, we reported net income of $113 million, or $0.45 per diluted share, CNI of $241 million, and adjusted CNI of $247 million, or $0.99 per diluted share. Our earnings per share calculation for the quarter was based on 250.6 million diluted ordinary shares outstanding. In calculating CNI, we add back the after-tax impact of the amortization (including impairments) of intangible assets and the amortization (including write-offs) of deferred loan costs related to our debt. These items are tax-effected at the estimated marginal rates attributable to them. In the quarter ended September 30, 2012, the marginal tax rate associated with the amortization and impairment of intangible assets was 5.4% and the marginal tax rate for the amortization (including write-offs) of deferred loan costs was 12.3%. In calculating adjusted CNI in the quarter ended September 30, 2012, we added back the after-tax impact of a litigation-related charge of $6 million.

About Warner Chilcott – WCRX

Warner Chilcott (WCRX) is a leading specialty pharmaceutical company currently focused on the women’s healthcare, gastroenterology, urology and dermatology segments of the branded pharmaceuticals market, primarily in North America. We are a fully integrated company with internal resources dedicated to the development, manufacture and promotion of our products.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.