Amneal reports first quarter 2022 financial results
Bridgewater, n.j.--(business wire)--amneal pharmaceuticals, inc. (nyse: amrx) (“amneal” or the “company”) announced its results today for the first quarter ended march 31, 2022. “we are very pleased with our first quarter results and the progress we have made to advance our growth strategy. with recent u.s. fda approvals for our first two biosimilars, as well as the closing of our saol baclofen acquisition, amneal is expanding in high growth areas, including biosimilars and injectables, which we expect to drive meaningful growth going forward. these important milestones, as well as our continued focus on advancing r&d initiatives, are diversifying our business as we work to fulfill our mission of bringing innovative and affordable medicines to patients and creating value for shareholders,” said chirag and chintu patel, co-chief executive officers. net revenue in the first quarter of 2022 was $498 million, an increase of 1% compared to $493 million in the first quarter of 2021. the increase was driven by solid broad-based performance in generics, including new product launches, and the expansion of avkare’s distribution channel, partially offset by the loss of exclusivity of zomig® nasal spray. net loss attributable to amneal pharmaceuticals, inc. was $2 million in the first quarter of 2022 compared to a net income of $7 million in the first quarter of 2021. beginning in the first quarter of 2022, we will no longer exclude research and development milestone expenses from non-gaap financial measures. in the first quarter of 2022 and 2021, r&d milestone expenses were $5 million and $11 million, respectively. prior periods presented have been revised to reflect this change. adjusted ebitda(1) in the first quarter of 2022 was $100 million, a decrease of 13% compared to the first quarter of 2021, reflective of lower gross profit due to product mix and a tough comparison to the prior year. adjusted diluted eps(1) in the first quarter of 2022 was $0.12, compared to $0.17 in the first quarter of 2021. (1) see “non-gaap financial measures” below. maintaining full year 2022 financial outlook amneal is maintaining its previously provided guidance. full year 2022 financial guidance net revenue $2.15 billion - $2.25 billion adjusted ebitda (1) $540 million - $560 million adjusted diluted eps (2) $0.80 - $0.85 operating cash flow (3) $225 million - $250 million capital expenditures $75 million - $85 million weighted average diluted shares outstanding (4) approximately 307 million (1) includes 100% of ebitda from the avkare acquisition. beginning in the first quarter of 2022, we will no longer exclude research and development milestone expense from non-gaap financial measures. (2) accounts for 35% non-controlling interest in avkare. beginning in the first quarter of 2022, we will no longer exclude research and development milestone expense from non-gaap financial measures. (3) represents cash provided by operating activities. guidance does not contemplate one time and non-recurring items such as legal settlements and other discrete items. (4) assumes the weighted average diluted shares outstanding of class a and class b common stock under the if-converted method. amneal’s 2022 estimates are based on management's current expectations, including with respect to prescription trends, pricing levels, the timing of future product launches, the costs incurred and benefits realized of restructuring activities, and our long-term strategy. the company’s financial statements are prepared in accordance with accounting principles generally accepted in the united states of america (“gaap”). the company cannot provide a reconciliation between non-gaap projections and the most directly comparable measures in accordance with gaap without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. the items include, but are not limited to, acquisition-related expenses, restructuring expenses and benefits, asset impairments and other gains and losses. these items are uncertain, depend on various factors, and could have a material impact on gaap reported results. conference call information amneal will host a conference call and live webcast at 8:30 am eastern time on may 4, 2022 to discuss its results. the live webcast and presentation will be accessible through the investor relations section of the company’s website at https://investors.amneal.com. to access the call through a conference line, dial (844) 200-6205 (in the u.s.) or (929) 526-1599 (international callers). the access code for the call is 874223. a replay of the conference call will be posted shortly after the call and will be available for seven days. to access the replay, dial (866) 813-9403 (in the u.s.) or +44 (204) 525-0658 (international callers). the access code for the replay is 097886. about amneal amneal pharmaceuticals, inc. (nyse: amrx), headquartered in bridgewater, nj, is a fully-integrated essential medicines company. we make healthy possible through the development, manufacturing, and distribution of generic and specialty pharmaceuticals, primarily within the united states. the company has a diverse portfolio of over 250 products in its generics segment and is expanding across a broad range of complex products and therapeutic areas, including injectables and biosimilars. in its specialty segment, amneal has a growing portfolio of branded pharmaceutical products focused primarily on central nervous system and endocrine disorders, with a pipeline focused on unmet needs. through its avkare segment, the company is a distributor of pharmaceuticals and other products for the u.s. federal government, retail, and institutional markets. for more information, please visit www.amneal.com. cautionary statement on forward-looking statements certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements (as defined in the u.s. private securities litigation reform act of 1995). such forward-looking statements include statements regarding management’s intentions, plans, beliefs, expectations or forecasts for the future, including among other things: discussions of future operations; expected operating results and financial performance; impact of planned acquisitions and dispositions; the company’s strategy for growth; product development; regulatory approvals; market position and expenditures. words such as “plans,” “expects,” “will,” “anticipates,” “estimates” and similar words are intended to identify estimates and forward-looking statements. the reader is cautioned not to rely on these forward-looking statements. these forward-looking statements are based on current expectations of future events. if the underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the company. such risks and uncertainties include, but are not limited to: our ability to successfully develop, license, acquire and commercialize new products on a timely basis; the competition we face in the pharmaceutical industry from brand and generic drug product companies, and the impact of that competition on our ability to set prices; our ability to obtain exclusive marketing rights for our products; our ability to manage our growth through acquisitions and otherwise; our dependence on the sales of a limited number of products for a substantial portion of our total revenues; the continuing trend of consolidation of certain customer groups; our dependence on third-party suppliers and distributors for raw materials for our products and certain finished goods and any associated supply chain disruptions; legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives; the impact of severe weather; the impact of the ongoing covid-19 pandemic; risks related to federal regulation of arrangements between manufacturers of branded and generic products; our reliance on certain licenses to proprietary technologies from time to time; the significant amount of resources we expend on research and development; the risk of product liability and other claims against us by consumers and other third parties; risks related to changes in the regulatory environment, including u.s. federal and state laws related to healthcare fraud abuse and health information privacy and security and changes in such laws; changes to food and drug administration product approval requirements; the impact of healthcare reform and changes in coverage and reimbursement levels by governmental authorities and other third-party payers; our dependence on third-party agreements for a portion of our product offerings; the impact of global economic conditions, including any economic effects stemming from adverse geopolitical events, an economic downturn and inflation rates; our ability to identify, make and integrate acquisitions or investments in complementary businesses and products on advantageous terms; our substantial amount of indebtedness and our ability to generate sufficient cash to service our indebtedness in the future, and the impact of interest rate fluctuations on such indebtedness; our obligations under a tax receivable agreement may be significant; and the high concentration of ownership of our class a common stock and the fact that we are controlled by the amneal group. the forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the company’s filings with the securities and exchange commission, including under item 1a, “risk factors” in the company’s most recent annual report on form 10-k and in its subsequent reports on forms 10-q and 8-k. investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. forward-looking statements included herein speak only as of the date hereof and we undertake no obligation to revise or update such statements to reflect the occurrence of events or circumstances after the date hereof. non-gaap financial measures beginning in the first quarter of 2022, we will no longer exclude research and development milestone expenses related to license and collaboration agreements from our non-gaap financial measures and our line item components, including adjusted research and development, adjusted ebitda, adjusted operating income, adjusted net income and adjusted earnings per share. prior period adjusted results have been revised to reflect this change. this release includes certain non-gaap financial measures, including ebitda, adjusted ebitda, adjusted net income, adjusted diluted earnings per share, adjusted gross profit, adjusted gross margin, adjusted operating income, adjusted cost of goods sold, adjusted selling general and administrative expense, and adjusted research and development expense, which are intended as supplemental measures of the company’s performance that are not required by or presented in accordance with gaap. the calculation of non-gaap adjusted diluted earnings per share assumes the conversion of all outstanding shares of class b common stock to shares of class a common stock under the if-converted method. management uses these non-gaap measures internally to evaluate and manage the company’s operations and to better understand its business because they facilitate a comparative assessment of the company's operating performance relative to its performance based on results calculated under gaap. these non-gaap measures also isolate the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the company's operations and underlying operational performance. the compensation committee of the company’s board of directors also uses certain of these measures to evaluate management's performance and set its compensation. the company believes that these non-gaap measures also provide useful information to investors regarding certain financial and business trends relating to the company’s financial condition and operating results facilitates an evaluation of the financial performance of the company and its operations on a consistent basis. providing this information therefore allows investors to make independent assessments of the company’s financial performance, results of operations and trends while viewing the information through the eyes of management. these non-gaap measures are subject to limitations. the non-gaap measures presented in this release may not be comparable to similarly titled measures used by other companies because other companies may not calculate one or more in the same manner. additionally, the non-gaap performance measures exclude significant expenses and income that are required by gaap to be recorded in the company’s financial statements; do not reflect changes in, or cash requirements for, working capital needs; and do not reflect interest expense, or the requirements necessary to service interest or principal payments on debt. further, our historical adjusted results are not intended to project our adjusted results of operations or financial position for any future period. to compensate for these limitations, management presents and considers these non-gaap measures in conjunction with the company’s gaap results; no non-gaap measure should be considered in isolation from or as alternatives to net income, diluted earnings per share, gross profit, gross margin, operating income, cost of goods sold, selling general and administrative expense, and research and development expense or any other measure determined in accordance with gaap. readers should review the reconciliations included below, and should not rely on any single financial measure to evaluate the company’s business. a reconciliation of each historical non-gaap measure to the most directly comparable gaap measure is set forth below. amneal pharmaceuticals, inc. consolidated statements of operations (unaudited; in thousands, except per share amounts) three months ended march 31, 2022 2021 net revenue $ 497,633 $ 493,105 cost of goods sold 323,062 301,543 gross profit 174,571 191,562 selling, general and administrative 98,665 90,726 research and development 52,798 48,182 intellectual property legal development expenses 764 3,582 acquisition, transaction-related and integration expenses 434 2,802 credit related to legal matters, net (2,326 ) — restructuring and other charges 731 363 change in fair value of contingent consideration 200 — operating income 23,305 45,907 other (expense) income: interest expense, net (33,335 ) (33,885 ) foreign exchange (loss) gain, net (2,013 ) 2,088 other income, net 2,122 794 total other expense, net (33,226 ) (31,003 ) (loss) income before income taxes (9,921 ) 14,904 (benefit from) provision for income taxes (3,461 ) 359 net (loss) income (6,460 ) 14,545 less: net loss (income) attributable to non-controlling interests 4,742 (7,839 ) net (loss) income attributable to amneal pharmaceuticals, inc. before accretion of redeemable non-controlling interest $ (1,718 ) $ 6,706 accretion of redeemable non-controlling interest (438 ) — net (loss) income attributable to amneal pharmaceuticals, inc. $ (2,156 ) $ 6,706 net (loss) income per share attributable to amneal pharmaceuticals, inc.'s class a common stockholders: basic $ (0.01 ) $ 0.05 diluted $ (0.01 ) $ 0.04 weighted-average common shares outstanding: basic 149,892 148,013 diluted 149,892 151,220 amneal pharmaceuticals, inc. condensed consolidated balance sheets (unaudited; in thousands) march 31, 2022 december 31, 2021 assets current assets: cash and cash equivalents $ 210,477 $ 247,790 restricted cash 6,068 8,949 trade accounts receivable, net 538,309 662,583 inventories 512,241 489,389 prepaid expenses and other current assets 121,408 110,218 related party receivables 1,175 1,179 total current assets 1,389,678 1,520,108 property, plant and equipment, net 500,911 514,158 goodwill 602,893 593,017 intangible assets, net 1,209,818 1,166,922 operating lease right-of-use assets 37,675 39,899 operating lease right-of-use assets - related party 19,846 20,471 financing lease right-of-use assets 64,204 64,475 other assets 63,943 20,614 total assets $ 3,888,968 $ 3,939,664 liabilities and stockholders' equity current liabilities: accounts payable and accrued expenses $ 539,734 $ 583,345 current portion of long-term debt, net 30,523 30,614 current portion of operating lease liabilities 9,901 9,686 current portion of operating and financing lease liabilities - related party 2,692 2,636 current portion of financing lease liabilities 3,233 3,101 related party payables - short term 15,960 47,861 total current liabilities 602,043 677,243 long-term debt, net 2,672,661 2,680,053 note payable - related party 38,443 38,038 operating lease liabilities 30,378 32,894 operating lease liabilities - related party 18,093 18,783 financing lease liabilities 60,286 60,251 related party payables - long term 10,371 9,619 other long-term liabilities 32,866 38,903 total long-term liabilities 2,863,098 2,878,541 redeemable non-controlling interests 16,420 16,907 total stockholders' equity 407,407 366,973 total liabilities and stockholders' equity $ 3,888,968 $ 3,939,664 amneal pharmaceuticals, inc. consolidated statements of cash flows (unaudited; in thousands) three months ended march 31, 2022 2021 cash flows from operating activities: net (loss) income $ (6,460 ) $ 14,545 adjustments to reconcile net (loss) income to net cash provided by operating activities: depreciation and amortization 57,815 55,549 unrealized foreign currency loss (gain) 3,140 (1,970 ) amortization of debt issuance costs and discount 2,195 2,183 stock-based compensation 8,065 5,330 inventory provision 3,578 16,021 change in fair value of contingent consideration 200 — other operating charges and credits, net 1,155 1,431 changes in assets and liabilities: trade accounts receivable, net 124,268 108,385 inventories (25,549 ) (20,283 ) prepaid expenses, other current assets and other assets (4,423 ) 602 related party receivables 4 301 accounts payable, accrued expenses and other liabilities (48,777 ) (37,226 ) related party payables 5,132 3,260 net cash provided by operating activities 120,343 148,128 cash flows from investing activities: purchases of property, plant and equipment (10,793 ) (11,776 ) deposits for future acquisition of property, plant, and equipment (1,888 ) (917 ) acquisition of business (84,714 ) — net cash used in investing activities (97,395 ) (12,693 ) cash flows from financing activities: payments of principal on debt, financing leases and other (9,796 ) (23,630 ) proceeds from exercise of stock options 111 676 employee payroll tax withholding on restricted stock unit vesting (3,001 ) (2,102 ) tax distributions to non-controlling interests (3,164 ) — acquisition of redeemable non-controlling interest (1,722 ) — payments of deferred consideration for acquisitions - related party (43,998 ) — payments of principal on financing lease - related party — (93 ) repayment of related party note — (1,000 ) net cash used in financing activities (61,570 ) (26,149 ) effect of foreign exchange rate on cash (1,572 ) (593 ) net (decrease) increase in cash, cash equivalents, and restricted cash (40,194 ) 108,693 cash, cash equivalents, and restricted cash - beginning of period 256,739 347,121 cash, cash equivalents, and restricted cash - end of period $ 216,545 $ 455,814 cash and cash equivalents - end of period $ 210,477 $ 452,097 restricted cash - end of period 6,068 3,717 cash, cash equivalents, and restricted cash - end of period $ 216,545 $ 455,814 amneal pharmaceuticals, inc. non-gaap reconciliations (unaudited, in thousands) reconciliation of net (loss) income to ebitda and adjusted ebitda (1) three months ended march 31, 2022 2021 net (loss) income $ (6,460 ) $ 14,545 adjusted to add (deduct): interest expense, net 33,335 33,885 income tax expense (benefit) (3,461 ) 359 depreciation and amortization 57,815 55,549 ebitda (non-gaap) $ 81,229 $ 104,338 adjusted to add (deduct): stock-based compensation expense 8,065 5,330 acquisition, site closure, and idle facility expenses (2) 5,589 5,792 restructuring and other charges (3) 731 363 inventory related charges — 114 credit related to legal matters, net (4) (2,326 ) — asset impairment charges — 323 foreign exchange loss (gain) 2,013 (2,088 ) regulatory approval milestone 5,000 — change in fair value of contingent consideration 200 — other (641 ) 999 adjusted ebitda (non-gaap) $ 99,860 $ 115,171 amneal pharmaceuticals, inc. non-gaap reconciliations (unaudited; in thousands, except per share amounts) reconciliation of net (loss) income to adjusted net income and calculation of adjusted diluted earnings per share (1) three months ended march 31, 2022 2021 net (loss) income $ (6,460 ) $ 14,545 adjusted to add (deduct): non-cash interest 1,982 1,972 gaap income tax (benefit) expense (3,461 ) 359 amortization 39,152 39,514 stock-based compensation expense 8,065 5,330 acquisition, site closure expenses, and idle facility expenses (2) 5,589 5,792 restructuring and other charges (3) 731 363 inventory related charges — 114 credit related to legal matters, net (4) (2,326 ) — asset impairment charges — 323 regulatory approval milestone 5,000 — change in fair value of contingent consideration 200 — other (500 ) 999 income tax (5) (10,185 ) (15,053 ) net income attributable to non-controlling interests not associated with our class b common stock (2,199 ) (1,796 ) adjusted net income (non-gaap) $ 35,588 $ 52,462 weighted average diluted shares outstanding (non-gaap) (6) 304,630 303,337 adjusted diluted earnings per share (non-gaap) $ 0.12 $ 0.17 amneal pharmaceuticals, inc. non-gaap reconciliations (unaudited; in thousands) explanations for reconciliations of net (loss) income to ebitda and adjusted ebitda and net (loss) income to adjusted net income and calculation of adjusted diluted earnings per share (1) beginning in the first quarter of 2022, we will no longer exclude research and development milestone expenses related to license and collaboration agreements from our non-gaap financial measures and our line item components, including adjusted research and development, adjusted ebitda, adjusted operating income, adjusted net income and adjusted earnings per share. prior period adjusted results have been revised to reflect this change. (2) acquisition, site closure, and idle facility expenses for the three months ended march 31, 2022 primarily included (i) transaction and integration costs associated with the acquisition of the baclofen franchise from certain entities affiliated with saol international limited; (ii.) integration costs associated with the acquisition of puniska healthcare pvt. ltd.; and (iii) site closure costs associated with the planned cessation of manufacturing at our hauppauge, ny facility. acquisition, site closure and idle facility expenses for the three months ended march 31, 2021 primarily included (i) transaction costs associated with the acquisition of kashiv specialty pharmaceuticals, llc, which closed on april 2, 2021; (ii) integration costs associated with the acquisition of avkare; and (iii) site closure expenses associated with the planned cessation of manufacturing at our hauppauge, ny facility. (3) for the three months ended march 31, 2022 and 2021, restructuring and other charges primarily consisted of cash severance charges associated with the cost of benefits for former senior executives and management employees. (4) for the three months ended march 31, 2022, we recorded a net credit of $2.3 million consisting of an insurance recovery of $4 million, partially offset by charges for legal proceedings (none for the three months ended march 31, 2021). (5) the non-gaap effective tax rates for the three months ended march 31, 2022 and 2021 were 22.3% and 21.0%, respectively. (6) weighted average diluted shares outstanding consisted of class a common stock and class b common stock under the if-converted method. amneal pharmaceuticals, inc. generics segment reconciliation of gaap to non-gaap operating results (1) (unaudited; in thousands) three months ended march 31, 2022 three months ended march 31, 2021 as reported adjustments non-gaap as reported adjustments non-gaap net revenue $ 317,747 $ — $ 317,747 $ 312,508 $ — $ 312,508 cost of goods sold (2) 199,030 (15,091 ) 183,939 185,298 (12,019 ) 173,279 gross profit 118,717 15,091 133,808 127,210 12,019 139,229 gross margin % 37.4 % 42.1 % 40.7 % 44.6 % selling, general and administrative (3) 27,593 (6,250 ) 21,343 18,762 (824 ) 17,938 research and development (4) 43,221 (1,159 ) 42,062 36,117 (1,002 ) 35,115 charges related to legal matters, net (5) 1,674 (1,674 ) — — — — intellectual property legal development expenses 772 — 772 3,582 — 3,582 restructuring and other charges 206 (206 ) — 80 (80 ) — operating income $ 45,251 $ 24,380 $ 69,631 $ 68,669 $ 13,925 $ 82,594 (1) operating results for the sale of amneal products by avkare were included in our generics segment. (2) adjustments for the three months ended march 31, 2022 and 2021, respectively, were comprised of stock-based compensation expense ($1.5 million and $0.6 million), amortization expense ($9.3 million and $8.0 million), site closure and idle facility expenses ($4.6 million and $2.5 million), inventory related charges (none and $0.1 million), asset impairment charges (none and $0.3 million), and other ($(0.3) million and $0.5 million). (3) adjustments for the three months ended march 31, 2022 and 2021, respectively, were comprised of stock-based compensation expense ($0.7 million and $0.3 million), a regulatory approval milestone ($5.0 million and none) and site closure costs ($0.6 million and $0.5 million). (4) adjustments for the three months ended march 31, 2022 and 2021, respectively, were comprised of stock-based compensation expense ($1.2 million and $0.8 million) and other (none and $0.2 million). non-gaap adjusted research and development for the three months ended march 31, 2021, as previously reported, has been revised to include $3.4 million of research and development milestone expenses previously excluded. (5) adjustments for the three months ended march 31, 2022 were related to charges for legal proceedings. three months ended march 31, 2022 three months ended march 31, 2021 as reported adjustments non-gaap as reported adjustments non-gaap net revenue $ 85,086 $ — $ 85,086 $ 95,931 $ — $ 95,931 cost of goods sold (1) 43,853 (26,653 ) 17,200 48,198 (27,493 ) 20,705 gross profit 41,233 26,653 67,886 47,733 27,493 75,226 gross margin % 48.5 % 79.8 % 49.8 % 78.4 % selling, general and administrative (2) 24,400 (613 ) 23,787 19,881 (591 ) 19,290 research and development (3) 9,577 (326 ) 9,251 12,065 (180 ) 11,885 change in fair value of contingent consideration (4) 200 (200 ) — — — — intellectual property legal development credit (8 ) — (8 ) — — — operating income $ 7,064 $ 27,792 $ 34,856 $ 15,787 $ 28,264 $ 44,051 (1) adjustments for the three months ended march 31, 2022 and 2021 were comprised of amortization expense. (2) adjustments for the three months ended march 31, 2022 and 2021 were comprised of stock-based compensation expense. (3) adjustments for the three months ended march 31, 2022 and 2021 were comprised of stock-based compensation expense. non-gaap adjusted research and development for the three months ended march 31, 2021, as previously reported, has been revised to include $7.4 million of research and development milestone expenses previously excluded. (4) contingent consideration was recorded in connection with the acquisition of kashiv specialty pharmaceuticals, llc. amneal pharmaceuticals, inc. avkare segment reconciliation of gaap to non-gaap operating results (1) (unaudited; in thousands) three months ended march 31, 2022 three months ended march 31, 2021 as reported adjustments non-gaap as reported adjustments non-gaap net revenue $ 94,800 $ — $ 94,800 $ 84,666 $ — $ 84,666 cost of goods sold 80,179 — 80,179 68,047 — 68,047 gross profit 14,621 — 14,621 16,619 — 16,619 gross margin % 15.4 % 15.4 % 19.6 % 19.6 % selling, general and administrative (2) 13,410 (4,526 ) 8,884 13,704 (6,184 ) 7,520 acquisition, transaction-related and integration expenses (3) — — — 931 $ (931 ) — operating income (loss) $ 1,211 $ 4,526 $ 5,737 $ 1,984 $ 7,115 $ 9,099 (1) operating results for the sale of amneal products by avkare were included in our generics segment. (2) adjustments for the three months ended march 31, 2022 and 2021, respectively, were comprised of amortization expense ($4.9 million and $6.2 million) and other ($(0.4) million and none). (3) adjustments for the three months ended march 31, 2021 were comprised of finance integration expenses. amneal pharmaceuticals, inc. reconciliation of previously reported gaap and non-gaap results to revised non-gaap results for prior periods (unaudited; in thousands, except per share amounts) three months ended year ended dec. 31, 2021 sept. 30, 2021 june 30, 2021 march 31, 2021 dec. 31, 2021 dec. 31, 2020 net (loss) income $ (20,459) $ (6,092) $ 32,176 $ 14,545 $ 20,170 $ 68,578 adjusted to add (deduct): interest expense, net 33,957 34,400 34,083 33,885 136,325 145,998 income tax expense (benefit) 4,140 4,049 2,648 359 11,196 (104,358) depreciation and amortization 61,183 60,186 56,487 55,549 233,406 235,387 ebitda (non-gaap) $ 78,821 $ 92,543 $ 125,394 $ 104,338 $ 401,097 $ 345,605 adjusted to add (deduct): stock-based compensation expense 7,742 7,708 7,632 5,330 28,412 20,750 acquisition, site closure, and idle facility expenses 6,027 2,220 5,964 5,792 20,003 23,384 restructuring and other charges — 425 — 363 788 2,398 inventory related charges 16 44 87 114 261 6,574 charges related to legal matters, net 6,000 19,000 — — 25,000 5,610 asset impairment charges 22,353 688 741 323 24,105 43,629 foreign exchange loss (gain) 170 29 2,244 (2,088) 355 (16,350) gain on sale of international businesses, net — — — — — (123) research and development milestones 4,566 2,496 7,847 10,886 25,795 22,771 change in fair value of contingent consideration (100) 300 — — 200 — property losses and associated expenses, net (2,818) 8,186 — — 5,368 — other 3,592 1,282 807 999 6,680 1,926 adjusted ebitda (non-gaap), as previously reported $ 126,369 $ 134,921 $ 150,716 $ 126,057 $ 538,064 $ 456,174 research and development milestones (1) (4,566) (2,496) (7,847) (10,886) (25,795) (22,771) adjusted ebitda (non-gaap), as revised $ 121,803 $ 132,425 $ 142,869 $ 115,171 $ 512,269 $ 433,403 (1) beginning in the first quarter of 2022, we will no longer exclude research and development milestone expenses related to license and collaboration agreements from our non-gaap financial measures and our line item components, including adjusted research and development, adjusted ebitda, adjusted operating income, adjusted net income and adjusted diluted earnings per share. prior period results have been revised to reflect this change. amneal pharmaceuticals, inc. reconciliation of previously reported gaap and non-gaap results to revised non-gaap results for prior periods (unaudited; in thousands, except per share amounts) three months ended year ended dec. 31, 2021 sept. 30, 2021 june 30, 2021 march 31, 2021 dec. 31, 2021 dec. 31, 2020 net (loss) income $ (20,459 ) $ (6,092 ) $ 32,176 $ 14,545 $ 20,170 $ 68,578 adjusted to add (deduct): non-cash interest 2,123 2,183 2,077 1,972 8,355 7,900 gaap income tax expense (benefit) 4,140 4,049 2,648 359 11,196 (104,358 ) amortization 41,543 41,651 41,361 39,514 164,069 163,842 stock-based compensation expense 7,742 7,708 7,632 5,330 28,412 20,750 acquisition, site closure, and idle facility expenses 6,027 2,220 5,964 5,792 20,003 23,384 restructuring and other charges — 425 — 363 788 2,398 inventory related charges 16 44 87 114 261 6,574 charges related to legal matters, net 6,000 19,000 — — 25,000 5,610 asset impairment charges 22,353 688 741 323 24,105 43,629 foreign exchange gain — — — — — (16,350 ) gain on sale of international businesses, net — — — — — (123 ) research and development milestones 4,566 2,496 7,847 10,886 25,795 22,771 change in fair value of contingent consideration (100 ) 300 — — 200 — property losses and associated expenses, net (2,818 ) 8,186 — — 5,368 — other 3,592 1,282 807 999 6,680 1,926 income tax (19,313 ) (17,346 ) (21,779 ) (17,339 ) (75,777 ) (54,271 ) net income attributable to non-controlling interests not associated with our class b common stock (1,191 ) (1,541 ) (2,054 ) (1,796 ) (6,582 ) (1,240 ) adjusted net income (non-gaap), as previously reported $ 54,221 $ 65,253 $ 77,507 $ 61,062 $ 258,043 $ 191,020 research and development milestones (1) (4,566 ) (2,496 ) (7,847 ) (10,886 ) (25,795 ) (22,771 ) income tax impact of revision 1,120 525 1,647 2,286 5,578 4,640 adjusted net income (non-gaap), as revised $ 50,775 $ 63,282 $ 71,307 $ 52,462 $ 237,826 $ 172,889 weighted average diluted shares outstanding (non-gaap) (2) 304,429 303,861 304,103 303,337 303,937 301,030 adjusted diluted eps (non-gaap), as previously reported $ 0.18 $ 0.21 $ 0.25 $ 0.20 $ 0.85 $ 0.63 adjusted diluted eps (non-gaap), as revised $ 0.17 $ 0.21 $ 0.23 $ 0.17 $ 0.78 $ 0.57 (1) beginning in the first quarter of 2022, we will no longer exclude research and development milestone expenses related to license and collaboration agreements from our non-gaap financial measures and our line item components, including adjusted research and development, adjusted ebitda, adjusted operating income, adjusted net income and adjusted diluted earnings per share. prior period results have been revised to reflect this change. (2) weighted average diluted shares outstanding consisted of class a common stock and class b common stock under the if-converted method.
