ANI Pharmaceuticals(ANIP) - 2024 Q3 - Quarterly Report

PART I — FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (unaudited) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, with detailed notes on business, acquisitions, and debt for the reported periods Condensed Consolidated Balance Sheets The balance sheet shows a significant increase in total assets and liabilities from December 31, 2023, to September 30, 2024, primarily driven by the Alimera acquisition and related financing | Metric | Sep 30, 2024 (in thousands) | Dec 31, 2023 (in thousands) | Change (in thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | Total Assets | $1,287,377 | $904,422 | $382,955 | | Total Liabilities | $856,579 | $446,823 | $409,756 | | Total Stockholders' Equity | $405,948 | $432,749 | $(26,801) | - Intangible assets, net, increased significantly from $209,009 thousand to $569,825 thousand, and Goodwill increased from $28,221 thousand to $60,426 thousand, largely due to the Alimera acquisition[9] - Non-current convertible notes, net, appeared at $305,293 thousand as of September 30, 2024, with no balance at December 31, 2023, reflecting new financing[9] Condensed Consolidated Statements of Operations For the three and nine months ended September 30, 2024, the company reported a net loss, a significant shift from net income in the prior year periods, despite increased net revenues, primarily due to higher operating expenses and a loss on debt extinguishment | Metric | 3 Months Ended Sep 30, 2024 (in thousands) | 3 Months Ended Sep 30, 2023 (in thousands) | Change (in thousands) | % Change | | :-------------------------------------- | :----------------------------------------- | :----------------------------------------- | :-------------------- | :------- | | Net Revenues | $148,332 | $131,829 | $16,503 | 12.5% | | Operating (loss) income | $(20,519) | $17,948 | $(38,467) | -214.4% | | Net (Loss) Income | $(24,166) | $9,940 | $(34,106) | -343.1% | | Basic (Loss) Income Per Share | $(1.27) | $0.46 | $(1.73) | -376.1% | | Metric | 9 Months Ended Sep 30, 2024 (in thousands) | 9 Months Ended Sep 30, 2023 (in thousands) | Change (in thousands) | % Change | | :-------------------------------------- | :----------------------------------------- | :----------------------------------------- | :----------------------------------------- | :------- | | Net Revenues | $423,802 | $355,162 | $68,640 | 19.3% | | Operating (loss) income | $4,962 | $40,245 | $(35,283) | -87.7% | | Net (Loss) Income | $(8,246) | $17,624 | $(25,870) | -146.8% | | Basic (Loss) Income Per Share | $(0.49) | $0.84 | $(1.33) | -158.3% | - Selling, general, and administrative expenses increased significantly by 88.2% for the three months and 53.5% for the nine months ended September 30, 2024, compared to the prior year, largely due to Alimera acquisition-related costs and increased Rare Disease sales and marketing[11][252][270] - A loss on extinguishment of debt of $7,468 thousand was recognized for both the three and nine months ended September 30, 2024, due to the repayment of the Truist Credit Facility[11][259][279] Condensed Consolidated Statements of Comprehensive (Loss) Income The company reported a total comprehensive loss for both the three and nine months ended September 30, 2024, primarily driven by the net loss and a significant loss on interest rate swaps, contrasting with comprehensive income in the prior year | Metric | 3 Months Ended Sep 30, 2024 (in thousands) | 3 Months Ended Sep 30, 2023 (in thousands) | Change (in thousands) | | :-------------------------------------- | :----------------------------------------- | :----------------------------------------- | :-------------------- | | Net (Loss) Income | $(24,166) | $9,940 | $(34,106) | | Total other comprehensive (loss) income, net of tax | $(2,962) | $350 | $(3,312) | | Total comprehensive (loss) income, net of tax | $(27,128) | $10,290 | $(37,418) | - Loss on interest rate swap was $(2,862) thousand for the three months and $(3,282) thousand for the nine months ended September 30, 2024, compared to gains in the prior year[13] Condensed Consolidated Statements of Changes in Mezzanine Equity and Stockholders' Equity The statements reflect a decrease in total stockholders' equity from December 31, 2023, to September 30, 2024, primarily due to the net loss and other comprehensive loss, partially offset by stock-based compensation | Metric | Sep 30, 2024 (in thousands) | Dec 31, 2023 (in thousands) | Change (in thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | Total Stockholders' Equity | $430,798 | $457,599 | $(26,801) | | Additional paid-in capital | $510,899 | $514,103 | $(3,204) | | Accumulated deficit | $(89,597) | $(80,132) | $(9,465) | | Accumulated other comprehensive income, net of tax | $5,366 | $8,857 | $(3,491) | - Stock-based compensation expense contributed $22,283 thousand to additional paid-in capital for the nine months ended September 30, 2024[16] - Treasury stock purchases for restricted stock vests amounted to $(10,641) thousand for the nine months ended September 30, 2024[16] - A Capped Call Transaction, net of tax, resulted in a $(30,275) thousand reduction in additional paid-in capital for the nine months ended September 30, 2024[16] Condensed Consolidated Statements of Cash Flows Net cash provided by operating activities decreased for the nine months ended September 30, 2024, compared to the prior year, while investing activities saw a significant increase in cash used due to the Alimera acquisition, and financing activities provided substantial cash through new debt and convertible notes | Metric | 9 Months Ended Sep 30, 2024 (in thousands) | 9 Months Ended Sep 30, 2023 (in thousands) | Change (in thousands) | | :--------------------------------------------------- | :----------------------------------------- | :----------------------------------------- | :-------------------- | | Net Cash and Cash Equivalents Provided by Operating Activities | $48,157 | $74,219 | $(26,062) | | Net Cash and Cash Equivalents Used in Investing Activities | $(394,038) | $(13,732) | $(380,306) | | Net Cash and Cash Equivalents Provided by Financing Activities | $269,852 | $79,357 | $190,495 | | Net Change in Cash, Cash Equivalents, and Restricted Cash | $(76,104) | $139,844 | $(215,948) | - Acquisition of Alimera, net of cash acquired, used $(393,079) thousand in investing activities[18] - Proceeds from convertible notes were $316,250 thousand and from term loan were $325,000 thousand in financing activities[18] - Repayment on borrowings under credit agreement was $(292,500) thousand, and purchase of capped call transaction was $(40,575) thousand[18] [Notes to Condensed Consolidated Financial Statements](index=13&type=section