Financials

v3.8.0.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Current assets:    
Cash and cash equivalents $ 32,739 $ 18,752
Short-term investments 169,520 122,296
Accounts receivable 12,816 14,700
Note receivable from Viking 3,007 3,207
Inventory 5,007 1,923
Other current assets 1,112 2,175
Total current assets 224,201 163,053
Deferred income taxes 134,939 123,891
Investment in Viking 5,137 8,345
Intangible assets, net 196,578 204,705
Goodwill 72,207 72,207
Commercial license rights, net 23,721 25,821
Property and equipment, net 3,526 1,819
Other assets 2,028 1,744
Total assets 662,337 601,585
Current liabilities:    
Accounts payable 3,617 2,734
Accrued liabilities 6,423 6,397
Current contingent liabilities 86 5,088
2019 Convertible Senior Notes, net 221,557 212,910
Total current liabilities 231,683 227,129
Long-term contingent liabilities 5,196 2,916
Other long-term liabilities 695 687
Total liabilities 237,574 230,732
Commitments and Contingencies
Equity component of currently redeemable convertible notes (Note 3) 21,597 29,563
Stockholders' equity:    
Common stock, $0.001 par value; 33,333,333 shares authorized; 21,094,836 and 20,909,301 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively 21 21
Additional paid-in capital 793,724 769,653
Accumulated other comprehensive income 3,335 2,743
Accumulated deficit (393,914) (431,127)
Total stockholders' equity 403,166 341,290
Total liabilities and stockholders' equity $ 662,337 $ 601,585

Source

v3.8.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Revenues:        
Royalties $ 21,931 $ 15,698 $ 60,372 $ 39,842
Material sales 7,664 4,219 14,336 13,445
License fees, milestones and other revenues 3,780 1,702 15,930 17,500
Total revenues 33,375 21,619 90,638 70,787
Operating costs and expenses:        
Cost of sales [1] 2,385 999 3,628 2,674
Amortization of intangibles 2,706 2,706 8,126 7,912
Research and development 4,759 5,898 18,254 14,813
General and administrative 7,032 6,550 20,904 20,858
Total operating costs and expenses 16,882 16,153 50,912 46,257
Income from operations 16,493 5,466 39,726 24,530
Other (expense) income:        
Interest expense, net (2,822) (3,116) (8,625) (9,172)
Increase in contingent liabilities (1,336) (958) (2,302) (2,595)
Loss from Viking (1,019) (1,396) (3,350) (14,139)
Other income, net 755 1,215 1,117 2,107
Total other expense, net (4,422) (4,255) (13,160) (23,799)
Income before income taxes 12,071 1,211 26,566 731
Income tax (expense) benefit (3,645) (160) (7,000) 28
Income from operations 8,426 1,051 19,566 759
Gain on sale of Oncology Product Line before income taxes 0 0 0 1,139
Income tax expense on discontinued operations 0 0 0 (408)
Income from discontinued operations 0 0 0 731
Net income $ 8,426 $ 1,051 $ 19,566 $ 1,490
Basic earnings per share data        
Income from continuing operations (in usd per share) [2] $ 0.40 $ 0.05 $ 0.93 $ 0.04
Income from discontinued operations (in usd per share) [2] 0.00 0.00 0.00 0.04
Net income (in usd per share) [2] 0.40 0.05 0.93 0.07
Diluted earnings per share data        
Income from continuing operations (in usd per share) [2] 0.36 0.05 0.84 0.03
Income from discontinued operations (in usd per share) [2] 0.00 0.00 0.00 0.03
Net income (USD per share) [2] $ 0.36 $ 0.05 $ 0.84 $ 0.07
Shares used for computation        
Basic (in shares) 21,071,000 20,887,000 21,007,000 20,806,000
Diluted (in shares) 23,551,245 22,997,279 23,261,857 22,742,249
[1] Excludes amortization of intangibles.
[2] The sum of net income per share amounts may not equal the totals due to rounding.

Source

v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Operating activities    
Net income $ 19,566 $ 1,490
Less: income from discontinued operations 0 731
Income from continuing operations 19,566 759
Adjustments to reconcile net income to net cash provided by operating activities:    
Non-cash change in estimated fair value of contingent liabilities 2,302 2,595
Realized gain on sale of short-term investment (371) (1,776)
Gain on disposal of assets 0 (183)
Depreciation and amortization 7,581 8,322
Amortization of premium (discount) on investments, net 88 510
Amortization of debt discount and issuance fees 8,647 8,130
Stock-based compensation 15,917 13,690
Deferred income taxes 6,855 347
Change in fair value of the Viking convertible debt receivable and warrants (426) (464)
Loss from equity method investment 3,350 14,139
Changes in operating assets and liabilities:    
Accounts receivable 1,909 (411)
Inventory (1,985) (2,394)
Other current assets 399 (9)
Other long-term assets 0 (31)
Accounts payable and accrued liabilities (2,649) (3,079)
Other 1,075 1,497
Net cash provided by operating activities 62,258 42,008
Investing activities    
Purchase of commercial license rights 0 (17,695)
Payments to CVR holders and other contingency payments (4,998) (7,055)
Purchases of property and equipment (220) (1,783)
Cash paid for acquisition, net of cash acquired 0 (92,504)
Purchase of short-term investments (205,121) (73,109)
Proceeds received from repayment of Viking note receivable 200 300
Proceeds received from repayment of commercial license rights 2,859 0
Proceeds from sale of short-term investments 83,390 23,387
Proceeds from maturity of short-term investments 75,887 113,694
Net cash used in investing activities (48,003) (56,465)
Financing activities    
Net proceeds from stock option exercises and ESPP 3,864 4,608
Taxes paid related to net share settlement of equity awards (4,132) (999)
Net cash (used in) provided by financing activities (268) 3,609
Net increase (decrease) in cash and cash equivalents 13,987 (10,848)
Cash and cash equivalents at beginning of period 18,752 97,428
Cash and cash equivalents at end of period 32,739 86,580
Supplemental disclosure of cash flow information    
Interest paid 1,838 1,838
Taxes paid 145 36
Supplemental schedule of non-cash activity    
Stock issued for acquisition, net of issuance cost 0 (77,330)
Unsettled repurchase of common stock 0 (1,554)
Stock and warrant received for repayment of Viking notes receivable 0 1,200
Accrued fixed asset purchases 1,700 0
Accrued inventory purchases 499 0
Unrealized gain (loss) on AFS investments 628 (271)
Purchase of Common Stock    
Investing activities    
Purchase of Viking common stock and warrants 0 (1,000)
Viking Therapeutics, Inc.    
Investing activities    
Purchase of Viking common stock and warrants $ 0 $ (700)

Source