Amphastar Pharmaceuticals(US:AMPH)2025-03-03 21:16Financial Position - As of December 31, 2024, the company had $6.7 million deposited in six banks located in China, $1.8 million in France, and $0.7 million in the United Kingdom, with total cash equivalents of $102.1 million[604]. - The company maintained approximately $54.4 million in investment-grade corporate and municipal bonds as of December 31, 2024[604]. - As of December 31, 2023, the company had $5.9 million in China, $5.0 million in France, and $0.3 million in the United Kingdom, with total cash equivalents of $116.4 million[605]. - The company maintained approximately $90.1 million in investment-grade corporate and municipal bonds as of December 31, 2023[605]. - As of December 31, 2024, the company had $601.9 million in long-term debt and finance leases, an increase from $590.0 million in 2023[608]. - The company's cash and cash equivalents increased to $151.6 million in 2024 from $144.3 million in 2023[635]. - Total current assets rose to $534.1 million in 2024, compared to $489.6 million in 2023, reflecting a growth of approximately 9.1%[635]. - The total liabilities decreased to $845.2 million in 2024 from $873.5 million in 2023, showing a reduction of approximately 3.2%[635]. - The company's total assets increased to $1.577 billion in 2024, up from $1.513 billion in 2023, marking a growth of approximately 4.2%[635]. - The company reported total equity of $732.3 million in 2024, an increase from $639.4 million in 2023, reflecting a growth of approximately 14.5%[635]. Revenue and Profitability - Total net revenues for 2024 reached $731,967,000, a 13.6% increase from $644,395,000 in 2023[636]. - Product revenues, net increased to $712,814,000, up 20.2% from $593,238,000 in 2023[636]. - Gross profit for 2024 was $373,855,000, compared to $351,121,000 in 2023, reflecting a gross margin improvement[636]. - Operating expenses totaled $168,436,000 in 2024, an increase of 9.3% from $154,134,000 in 2023[636]. - Net income for 2024 was $159,519,000, representing a 15.9% increase from $137,545,000 in 2023[637]. - Basic net income per share rose to $3.29 in 2024, compared to $2.85 in 2023, marking a 15.4% increase[636]. - Total comprehensive income for 2024 was $158,816,000, compared to $137,691,000 in 2023[637]. Expenses and Liabilities - The company incurred $129,000,000 for the acquisition of BAQSIMI® in 2024[642]. - The provision for chargebacks estimate totaled $26.3 million as of December 31, 2024, indicating the company's ongoing management of sales returns[624]. - The provision for chargebacks and rebates increased to $289.3 million in 2024 from $257.2 million in 2023, resulting in an ending balance of $60.3 million for 2024[700]. - The company recorded total expenses under its self-insured claims program of approximately $2.0 million, $1.7 million, and $0.3 million for the years ended December 31, 2024, 2023, and 2022, respectively[678]. - The company has a self-insured claims liability of $5.2 million and $4.3 million at December 31, 2024, and 2023, respectively[678]. - Total accounts payable and accrued liabilities increased to $157.1 million in 2024 from $93.4 million in 2023, representing a 68% increase[745]. - Total debt rose to $614.0 million in 2024, up from $603.8 million in 2023, reflecting a 2% increase[746]. Acquisitions and Investments - The company completed the acquisition of BAQSIMI® for a total purchase price of $628.1 million, including a cash payment of $500.0 million and additional contingent payments based on sales milestones[684][688]. - The company entered into a $700.0 million syndicated credit agreement to finance the BAQSIMI® acquisition, which includes a $500.0 million term loan and a $200.0 million revolving credit facility[694][696]. - The company amortizes the acquired BAQSIMI® product rights over an estimated useful life of 24 years[688]. - The company issued $345.0 million in 2029 Convertible Notes in September 2023, using $200.0 million to repay borrowings under the Wells Fargo Term Loan[747]. Taxation - Changes in tax laws, such as the Inflation Reduction Act of 2022, could impose a 1% excise tax on stock repurchases and a 15% alternative minimum tax on adjusted financial statement income, affecting the company's financial position[472]. - The company is subject to income taxes in many foreign jurisdictions, which may require significant judgment in determining worldwide provisions for income taxes[473]. - The current provision for income taxes in 2024 was $46.814 million, compared to $45.690 million in 2023, reflecting an increase of 2.5%[775]. - The Company's effective tax rate for 2024 decreased to 15.6% from 18.6% in 2023, primarily due to excess tax benefits from share-based compensation[776]. Risks and Compliance - The company's operating results may fluctuate significantly due to various factors, including the commercial success of key products and results of clinical trials[478]. - A significant percentage of the company's operating expenses are fixed, making it difficult to mitigate negative impacts from revenue shortfalls in the short term[481]. - The company may face substantial costs and management diversion due to potential securities class action litigation following stock price volatility[484]. - Compliance with public company regulations imposes significant legal and financial costs, potentially diverting management's attention from business operations[485]. - The company faces supplier concentration risks, as it relies on a limited number of sources for raw materials, which could adversely affect operations if not managed properly[723]. Currency and Foreign Operations - A theoretical 10% unfavorable change in foreign currency exchange rates would result in a reduction of approximately $1.2 million in foreign currency gains for 2024[614]. - The company reported a foreign currency translation adjustment loss of $695,000 in 2024[637]. - The Company reported a foreign income loss of $5.414 million in 2024, an improvement from a loss of $10.563 million in 2023[774].