Warner Chilcott Announces 2013 Financial Guidance

DUBLIN, Ireland, Feb. 8, 2013 (GLOBE NEWSWIRE) -- Warner Chilcott plc (Nasdaq:WCRX) today announced its view of anticipated full year 2013 financial results.

Total revenue for 2013 is expected to be in the range of $2.3 to $2.4 billion. The 2013 revenue expectations reflect, among other things, the anticipated growth of certain of the Company's promoted products, including LO LOESTRIN FE and ESTRACE CREAM, which the Company believes will be more than offset by the anticipated continued decline in ACTONEL revenues. The anticipated decline in ACTONEL revenues is based largely on the continued volume decreases expected in the U.S. bisphosphonate market and the ongoing impact of the loss of exclusivity in Western Europe and Canada. The Company also anticipates that it will commercially launch DELZICOL, its new 400 mg mesalamine product indicated for the treatment of ulcerative colitis, in March 2013.

Gross margin, as a percentage of total revenue, is anticipated to be approximately 87% in 2013 based on the forecasted product mix.

Total selling, general and administrative (SG&A) expense in 2013 is anticipated to be in the range of $750 to $800 million. Total R&D expense in 2013 is anticipated to be in the range of $115 to $135 million.

Based on the current view, 2013 GAAP net income is expected to be in the range of $362 to $387 million. Cash net income (or CNI, as defined below) in 2013 is anticipated to be in the range of $805 to $830 million. Using 251.5 million ordinary shares, the Company expects GAAP net income per share to be in the range of $1.44 to $1.54 and cash net income per share to be in the range of $3.20 to $3.30 per share for the 2013 fiscal year.

References in this press release to "cash net income" (or "CNI") mean our GAAP net income adjusted for the after-tax effects of two non-cash items: amortization (including impairments, if any) of intangible assets and amortization (including write-offs, if any) of deferred loan costs related to our debt. This press release contains financial measures, such as CNI, that have not been prepared in accordance with GAAP ("non-GAAP financial measures"). The non-GAAP financial measures should not be considered a substitute for financial measures prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). The Company strongly urges you to: (i) review the reconciliation of the non-GAAP financial measures, including CNI, to GAAP financial measures presented in the footnotes at the end of this press release and (ii) not rely on any single financial measure to evaluate its business.

For a full view of the Company's 2013 financial guidance, including material assumptions, please refer to the summary at the end of this press release.

Investor Conference Call

We are hosting a conference call open to all interested parties on Friday, February 8, 2013 beginning at 8:00 AM ET. The number to call within the United States and Canada is (877) 354-4056. Participants outside the United States and Canada should call (678) 809-1043. A replay of the conference call will be available for two weeks following the call and can be accessed by dialing (800) 585-8367 from within the United States and Canada or (404) 537-3406 from outside the United States and Canada. The passcode ID number for the replay is 93786400.

The Company

Warner Chilcott 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. WCRX-F

Forward Looking Statements

This press release contains forward-looking statements, including statements concerning our industry, our operations, our anticipated financial performance and financial condition and our business plans, growth strategy and product development efforts. These statements constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "may," "might," "will," "should," "estimate," "project," "plan," "anticipate," "expect," "intend," "outlook," "believe" and other similar expressions are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based on estimates and assumptions by our management that, although we believe to be reasonable, are inherently uncertain and subject to a number of risks and uncertainties. The following represent some, but not necessarily all, of the factors that could cause actual results to differ from historical results or those anticipated or predicted by our forward-looking statements: our substantial indebtedness, including increases in the LIBOR rates on our variable-rate indebtedness above the applicable floor amounts; competitive factors and market conditions in the industry in which we operate, including the approval and introduction of generic or branded products that compete with our products; our ability to protect our intellectual property; a delay in qualifying any of our manufacturing facilities that produce our products, production or regulatory problems with either our own manufacturing facilities or those of third party manufacturers, packagers or API suppliers upon whom we may rely for some of our products or other disruptions within our supply chain; pricing pressures from reimbursement policies of private managed care organizations and other third party payors, government sponsored health systems and regulatory reforms, and the continued consolidation of the distribution network through which we sell our products; changes in tax laws or interpretations that could increase our consolidated tax liabilities; government regulation, including U.S. and foreign health care reform, affecting the development, manufacture, marketing and sale of pharmaceutical products, including our ability and the ability of companies with whom we do business to obtain necessary regulatory approvals; adverse outcomes in our outstanding litigation, regulatory or arbitration matters or an increase in the number of such matters to which we are subject; the loss of key senior management or scientific staff; our ability to manage the growth of our business by successfully identifying, developing, acquiring or licensing new products at favorable prices and marketing such new products; our ability to obtain regulatory approval and customer acceptance of new products, and continued customer acceptance of our existing products; and the other risks identified in our periodic filings including our Annual Report on Form 10-K for the year ended December 31, 2011, and from time-to-time in our other investor communications.

We caution you that the foregoing list of important factors is not exclusive. In addition, in light of these risks and uncertainties, the matters referred to in our forward-looking statements may not occur. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as may be required by law.

2013 Full Year Financial Guidance
(U.S. dollars in millions, except per share and percentage information)
2013 Guidance1
Total Revenue $2,300 to $2,400
Gross Margin as a % of Total Revenue 2 87%
Total SG&A Expense 3 $750 to $800
Total R&D Expense $115 to $135
Total Income Tax Provision 4 11% - 12% of EBTA
GAAP Net Income $362 to $387
Cash Net Income ("CNI") 5 $805 to $830
CNI per Share 5,6 $3.20 to $3.30
1 The 2013 guidance assumes that no new or additional generic equivalents of the Company's ASACOL 400 mg, ESTRACE Cream, LOESTRIN 24 FE or DORYX products will be approved and enter the U.S. market during 2013. In addition, the guidance does not: (i) assume the launch of any new products not yet approved by the FDA or (ii) account for the impact of future acquisitions, dispositions, partnerships, in-license transactions or any changes to the Company's existing capital structure, business model, partnerships or in-license transactions. Any change in such assumptions could have a negative impact on the Company's guidance. Also see "Forward Looking Statements" above.
2 Gross margin as a percentage of total revenue excludes amortization and impairments of intangible assets.
3 Total SG&A expense does not include any amount that may be payable in connection with the potential adjudication or settlement of the Company's outstanding litigations.
4 The 2013 total income tax provision is estimated as a percentage of earnings before taxes and book amortization (EBTA).
5 A reconciliation of 2013 expected GAAP net income to expected CNI adds back the expected after tax impact of (i) the amortization and impairment of intangibles ($419 million) and (ii) the amortization and write-off of deferred loan costs ($24 million).
6 Expected CNI per share is based on 251.5 million fully diluted ordinary shares. The 2013 calculation does not include the impact of any ordinary shares that may be redeemed pursuant to the Company's previously announced $250 million share redemption program or otherwise.

CONTACT: Rochelle Fuhrmann Investor Relations 973-442-3281 rfuhrmann@wcrx.com

Source:Warner Chilcott