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Mylan Laboratories Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: April 27, 2012 11:45AM
Mylan Laboratories Inc. (MYL) filed Quarterly Report for the period ended 2011-03-30. Mylan Inc has a market cap of $9.33 billion; its shares were traded at around $22.13 with a P/E ratio of 10.7 and P/S ratio of 1.5. Mylan Inc had an annual average earning growth of 28.7% over the past 10 years.
Highlight of Business Operations:For the current quarter, Mylan reported total revenues of $1.59 billion compared to $1.45 billion in the comparable prior year period. Total revenues include both net revenues and other revenues from third parties. Third party net revenues for the current quarter were $1.57 billion compared to $1.44 billion for the same prior year period, representing an increase of $136.6 million, or 9.5%. Other third party revenues for the current quarter were $19.3 million compared to $12.4 million in the same prior year period, an increase of $6.9 million. Other revenues for the three months ended March 31, 2012 include $8.7 million of revenue related to our clean energy investment subsidiary, whose activities qualify for tax credits under section 45 of the Internal Revenue Code (IRC), which we acquired at the end of 2011.
Gross profit for the three months ended March 31, 2012 was $666.3 million, and gross margins were 41.8%. For the three months ended March 31, 2011, gross profit was $590.9 million, and gross margins were 40.8%. Gross profit for the current quarter is impacted by the amortization of acquired intangible assets, and other items primarily associated with purchase accounting as described further in the section titled Adjusted Earnings. These items totaled approximately $91.7 million. Additionally, current quarter gross profit includes the cost of goods sold by our clean energy investment subsidiary of $10.7 million. Excluding such items, gross margins would have been approximately 48%. Prior year gross profit is impacted by purchase accounting and other items in the amount of $90.8 million. Excluding such items, gross margins in the prior year would have been approximately 47%. The increase was primarily the result of new product introductions in North America and favorable pricing on the EPIPEN® auto-injector, partially offset by the impact of pricing reductions in all regions of our generics segment.
Third party net revenues from EMEA were $335.6 million for the three-month period ended March 31, 2012, compared to $389.1 million for the comparable prior year period, a decrease of $53.5 million, or 13.7%. Translating current quarter third party net revenues from EMEA at comparable prior year period exchange rates would have resulted in a year-over-year decrease in third party net revenues, excluding the effect of foreign currency, of approximately $39 million, or 10%. This decrease was the result of competitive market conditions, which resulted in lower pricing in a number of European markets in which Mylan operates.
In Asia Pacific, third party net revenues were $298.7 million for the three-month period ended March 31, 2012, compared to $276.1 million for the comparable prior year period, an increase of $22.6 million, or 8.2%. Excluding the unfavorable effect of foreign currency translation, calculated as described above, the increase was approximately $32 million, or 12%. This increase is primarily driven by higher third party sales from India, with growth in third party sales in Japan and New Zealand also contributing, partially offset by lower sales in Australia.
Net earnings attributable to Mylan Inc. increased $24.9 million or 24% to $129.1 million for the three months ended March 31, 2012 as compared to $104.2 million for the prior year comparable period. Diluted earnings per common share attributable to Mylan Inc. increased from $0.23 to $0.30 for the three months ended March 31, 2012 compared to the same prior year period. Adjusted earnings increased $27.6 million or 14% to $224.5 million for the three months ended March 31, 2012 as compared to adjusted earnings of $196.9 million for the prior year comparable period. Adjusted diluted earnings per common share attributable to Mylan Inc. increased from $0.44 to $0.52 for the three months ended March 31, 2012 compared to the same prior year period. The increase in adjusted earnings and adjusted earnings per share was largely driven by new product launches in North America and increased sales in the Specialty Segment.
Stocks Discussed: MYL,