Valeant Q4 loss widens to $515 million or $1.47 per share
Profit was hurt by increases in interest expense of $34 million, foreign exchange loss and other of $43 million, and provisions for income taxes of $33 million.
Adjusted earnings per share for the fourth quarter of 2016 came in at $1.26 as compared to $1.55 in the fourth quarter of 2015.
Operating income for the fourth quarter of 2016 was $151 million as compared to $168 million for the fourth quarter of 2015.
Fourth quarter operating income reflected a decrease in contribution margin as a result of the decline in product sales from the existing business, the unfavorable impact of foreign currency, net incremental goodwill impairment charges, and the impact of divestitures and discontinuations.
Total Revenues in the fourth quarter of 2016 were $2.403 billion as compared to $2.758 billion in the fourth quarter of 2015, reflecting a decline of 13%.
The decrease was primarily driven by a reduction in product sales from the existing business (excluding effects from acquisitions, foreign currency and divestitures and discontinuations) of $310 million and the negative impact of foreign currency exchange of $43 million, most notably from the Egyptian pound, which was significantly devalued in November 2016.
Revenues in the quarter were further impacted by a drop in realized pricing by 3%, along with divestitures and discontinuations of $16 million. These declines were partially offset by incremental product sales of $13 million from acquisitions.
For 2017, the company expects GAAP Total Revenues to be in the range $8.90 billion - $9.10 billion, adjusted EBITDA of $3.55 billion - $3.70 billion. ■