Item 8.01. Other Events.
On January 3, 2013, the Company issued a press release which reaffirmed 2012
adjusted diluted net income per share will be at or below the low end of its
previously issued guidance range of $5.00 to $5.10 per share.
The press release also announced that the Company now expects certain pre-tax
GAAP charges to materially reduce 2012 reported diluted (GAAP) net income per
share to amounts materially below previously announced guidance of $0.87 to
$0.97 per share. These anticipated charges include a non-cash asset impairment
charge related primarily to goodwill attributable to the Company's acquisition
of American Medical Systems Holdings, Inc., as well as certain other one-time
charges related to legal contingencies, including a planned increase to the
Company's reserve associated with the resolution of the ongoing government
investigation with respect to LidodermŽ promotional practices from approximately
$53 million recognized during the third quarter of 2012 to approximately $194
million, representing the Company's current estimate of this liability.
Also included in this press release was the issuance of a 2013 revenue guidance
range of $2.80 billion to $2.95 billion and a 2013 adjusted diluted net income
per share range of $4.40 to $4.70 per share.
A copy of the press release announcing these items is furnished as Exhibit 99.1.
Adjusted diluted net income per share is a financial measure that is not in
conformity with accounting principles generally accepted in the United States
and we refer to it as a non-GAAP financial measure. Endo refers to adjusted
diluted net income per share in making operating decisions because it believes
it provides meaningful supplemental information regarding the Company's
operational performance. For instance, Endo believes that this measure
facilitates its internal comparisons to its historical operating results and
comparisons to competitors' results. The Company believes this measure is useful
to investors in allowing for greater transparency related to supplemental
information used by Endo in its financial and operational decision-making. In
addition, Endo has historically reported similar financial measures to its
investors and believes that the inclusion of comparative numbers provides
consistency in its financial reporting at this time. Further, Endo believes that
adjusted diluted net income per share may be useful to investors as it is aware
that certain of its significant stockholders utilize adjusted diluted net income
per share to evaluate its financial performance. Finally, adjusted diluted net
income per share is used by the Compensation Committee of Endo's Board of
Directors in assessing the performance and compensation of substantially all of
its employees, including its executive officers.
Item 9.01. Financial Statements and Exhibits.
(a) Financial Statements of Business Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Shell Company Transactions.
Not applicable.
(d) Exhibits.
Exhibit Number Description
99.1 Press Release