Amphastar Pharmaceuticals(US:AMPH)2021-03-14 16:00Company Operations - The company operates 60 buildings across six locations in the U.S., France, and China, totaling 1.9 million square feet for manufacturing, research and development, and distribution[484]. - The company continues to expand its facility in Nanjing, China, expecting further significant investment[484]. - The company has properties leased with expiration dates ranging from 2021 to 2030, with significant facilities in Nanjing, China, and Rancho Cucamonga, CA[486]. Financial Performance - Net income attributable to Amphastar Pharmaceuticals, Inc. for the year 2020 was $1,403,000, a significant decrease from $48,939,000 in 2019[625]. - Total net revenues for the year ended December 31, 2020, were $349.846 million, an increase from $322.357 million in 2019, representing an 8.5% growth[687]. - Revenue from the United States was $333,093,000, representing 95.2% of total net revenue for 2020[692]. - The company reported a total comprehensive income of $2,369,000 for 2020, down from $48,265,000 in 2019[625]. - The company reported a net loss of $3.721 million in accumulated other comprehensive income[629]. Taxation - The Tax Act enacted on December 22, 2017, reduced the federal statutory tax rate from 35% to 21%, impacting the company's effective tax rate and operating results[462]. - The effective tax rate for 2020 increased to 76.3% from 22.8% in 2019, primarily due to differences in pre-tax income positions and a valuation allowance on deferred tax assets[753]. - The company's total provision for income taxes in 2020 was $3.540 million, compared to $13.723 million in 2019[752]. - The company is subject to income taxes in many foreign jurisdictions, and the final determination of tax audits could materially differ from historical provisions[463]. Assets and Liabilities - Total assets increased to $631,236,000 as of December 31, 2020, up from $586,971,000 in 2019, representing an increase of 7.5%[618]. - Total liabilities increased to $182,513,000, up from $159,443,000 in 2019, marking a rise of 14.5%[620]. - Long-lived assets totaled $280,709,000 as of December 31, 2020, compared to $253,548,000 in 2019, reflecting a growth of 10.7%[692]. - The company had $46.4 million in long-term debt and finance leases outstanding, with $13.2 million having variable interest rates at a weighted-average interest rate of 4.4%[591]. Cash and Investments - The company maintained $58.7 million in cash equivalents, including money market accounts, as of December 31, 2020[589]. - The company’s cash equivalents and short-term investments amounted to $72,269,000 as of December 31, 2020, up from $44,968,000 in 2019[699]. - The company had $71.147 million in total accrued liabilities as of December 31, 2020, compared to $51.990 million in December 2019[723]. Research and Development - Research and development costs were charged to expense as incurred, with no specific figures provided for 2020, but the company continues to invest in R&D activities[646]. - The company acquired 14 abbreviated new drug applications from Hikma Pharmaceuticals for $4.0 million, with an estimated fair value of $4.0 million, amortized over approximately 15 years[668]. Market Risks - The company is exposed to market risk for changes in the market values of its investments, interest rate changes, and foreign currency exchange changes[587]. - A 10% unfavorable change in the exchange rate of the U.S. dollar would result in approximately $4.8 million reduction of foreign currency gains and $5.6 million reduction in other comprehensive income[596]. Inventory and Sales - The company's inventories totaled $96.8 million as of December 31, 2020, which included provisions of $9.4 million related to enoxaparin inventory[611]. - The provision for chargebacks estimate totaled $16.4 million at December 31, 2020, impacting product sales[607]. - Finished pharmaceutical products segment generated net revenues of $331.368 million in 2020, up from $302.000 million in 2019, reflecting a 9.7% increase[689]. Debt and Financing - The company has a line of credit facility with China Merchant Bank allowing borrowing up to $14.6 million, with a fixed interest rate of 4.35%[728]. - The company has long-term debt maturities totaling $45.923 million over the next five fiscal years, with the largest amount due in 2021 at $11.950 million[748]. - The company entered into a secured term loan with Cathay Bank for $21.9 million in April 2014, which was amended in July 2019 to extend the maturity date to June 2024[740][741]. Compliance and Legal Matters - The company has recorded reserves for litigation-related contingencies based on estimates of probable future costs, which could result in substantial further costs[460]. - The company may incur substantial expenses due to the limited nature of its disaster recovery and business continuity plans, especially in earthquake-prone areas[468]. Changes in Accounting Standards - Changes in financial accounting standards may significantly affect reported results and could impact transactions completed before the changes are effective[461].