Amneal Pharmaceuticals(AMRX) - 2024 Q3 - Quarterly Results

Revenue Performance - Q3 2024 net revenue was $702 million, a 13$620 million in Q3 2023[3] - Net revenue for Q3 2024 increased to $702.5 million, up 13.3$620.0 million in Q3 2023[17] - Generics net revenue increased 9% driven by strong performance of new product launches and biosimilars[3] - Specialty net revenue increased 19% driven by promoted products in neurology and endocrinology, including the recent launches of CREXONT and ONGENTYS for Parkinson's disease[3] - AvKARE net revenue increased 21% driven by growth across its distribution and government label sales channels[3] - Generics segment net revenue for Q3 2024 was $427.3 million, a 9.3$390.9 million in Q3 2023[31] - Specialty segment net revenue for Q3 2024 was $115.6 million, an 18.8$97.3 million in Q3 2023[38] - Generics segment nine-month net revenue for 2024 was $1.25 billion, a 12.4$1.11 billion in 2023[34] - Specialty segment nine-month net revenue for 2024 was $324.9 million, a 13.6$285.9 million in 2023[40] - Net revenue for the three months ended September 30, 2024 was $159.485 million, compared to$131.879 million in the same period in 2023[42] - Net revenue for the nine months ended September 30, 2024 was $492.559 million, compared to$382.286 million in the same period in 2023[44] Profitability and Margins - Gross profit for Q3 2024 rose to $269.6 million, a 15.9$232.5 million in Q3 2023[17] - Operating income for Q3 2024 grew to $88.8 million, up 17.4$75.6 million in Q3 2023[17] - Generics segment gross margin improved to 44.3% in Q3 2024 from 43.0% in Q3 2023[31] - Specialty segment gross margin increased to 80.2% in Q3 2024 from 79.7% in Q3 2023[38] - Gross margin for the three months ended September 30, 2024 was 17.7%, down from 19.9% in the same period in 2023[42] - Gross margin for the nine months ended September 30, 2024 was 16.3%, down from 16.7% in the same period in 2023[44] - Operating income for the three months ended September 30, 2024 was $16.659 million, up from$15.533 million in the same period in 2023[42] - Operating income for the nine months ended September 30, 2024 was $46.078 million, up from$34.001 million in the same period in 2023[44] Segment Performance - Generics segment operating income for Q3 2024 was $102.2 million, a 3.9$106.3 million in Q3 2023[31] - Specialty segment operating income for Q3 2024 was $61.2 million, a 24.5$49.2 million in Q3 2023[38] - Generics segment nine-month operating income for 2024 was $315.5 million, a 10.2$286.2 million in 2023[34] - Specialty segment nine-month operating income for 2024 was $171.5 million, a 19.7$143.3 million in 2023[40] Financial Position - Total current assets as of September 30, 2024, increased to $1.51 billion from$1.38 billion as of December 31, 2023[19] - Long-term debt decreased to $2.17 billion as of September 30, 2024, from$2.39 billion as of December 31, 2023[19] - Trade accounts receivable, net, increased to $748.1 million as of September 30, 2024, from$613.7 million as of December 31, 2023[19] - Total liabilities as of September 30, 2024, were $3.46 billion, slightly down from$3.47 billion as of December 31, 2023[19] - Cash and cash equivalents decreased to $74.0 million as of September 30, 2024, from$91.5 million as of December 31, 2023[19] Earnings and Losses - Diluted loss per share in Q3 2024 was $0.00 compared to diluted income per share of$0.06 in Q3 2023[5] - Adjusted diluted EPS in Q3 2024 was $0.16 compared to$0.19 in Q3 2023[5] - Net loss attributable to Amneal Pharmaceuticals for Q3 2024 was $0.2 million, compared to a net income of$9.7 million in Q3 2023[17] - Net loss for the nine months ended September 30, 2024 was $53.1 million, compared to a net income of$44.6 million in the same period of 2023[21] - Adjusted diluted earnings per share for the nine months ended September 30, 2024 was $0.46, compared to$0.50 in the same period of 2023[24] Research and Development - Research and development expenses for Q3 2024 increased to $61.1 million, up 47.7$41.4 million in Q3 2023[17] - The company launched CREXONT for the treatment of Parkinson's disease and announced a collaboration with Metsera, Inc. for next-generation medicines for obesity and metabolic diseases[2] - The company expanded its pipeline by in-licensing a new high-value biosimilar[2] Adjusted EBITDA and Cash Flow - Adjusted EBITDA in Q3 2024 was $158 million, a 2$20 million R&D milestone payment[4] - Adjusted EBITDA for the nine months ended September 30, 2024 was $472.2 million, an increase from$416.1 million in the same period of 2023[23] - Net cash provided by operating activities for the nine months ended September 30, 2024 was $177.0 million, a decrease from$209.8 million in the same period of 2023[21] Expenses and Adjustments - Depreciation and amortization expenses for the nine months ended September 30, 2024 were $170.1 million, slightly lower than$172.5 million in the same period of 2023[21] - Inventory provision for the nine months ended September 30, 2024 was $63.6 million, an increase from$56.6 million in the same period of 2023[21] - Charges related to legal matters for the nine months ended September 30, 2024 were $94.9 million, primarily associated with a nationwide opioid settlement[27] - Non-GAAP effective tax rate for the nine months ended September 30, 2024 was 24.7$2.0 million, primarily for integrating acquired businesses[28] - Adjustments for the three months ended September 30, 2024 included $3.5 million in amortization expense[43] - Adjustments for the nine months ended September 30, 2024 included$10.6 million in amortization expense[45] Full-Year Guidance - Full-year 2024 guidance includes net revenue of $2.70 billion to$2.80 billion, adjusted EBITDA of $610 million to$630 million, and adjusted diluted EPS of $0.57 to$0.63[6]