2021 Financial Guidance |
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Range (Billions) |
Midpoint (Billions) |
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Revenue |
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Adjusted EBIDTA (1) |
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Free Cash Flow (1) |
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(1) Non-GAAP financial measures. Please see "Non-GAAP Financial Measures" for
The 2021 Free Cash Flow guidance includes |
Viatris CEO Michael Goettler said, "The strategic rationale for creating
"We are confident that our financial guidance for 2021 is the right starting point for
Goettler continued, "Our Global Healthcare Gateway® will fuel our future growth by leveraging our own diverse portfolio and pipeline, as well as those of our current and future partners through our unmatched global infrastructure, and significant scientific, manufacturing and commercial capabilities, all while executing on our mission to empower people worldwide to live healthier at every stage of life. We also look forward to meeting our commitment to provide a longer-term financial outlook in the coming months."
Viatris president
Initiating 2021 Dividend and Reaffirming Capital Allocation Priorities
The Viatris Board has undertaken a comprehensive review of management's operating plan for 2021 and unanimously supports the Company's priorities for the next few years, including its priorities for capital allocation and initiating an annualized dividend of at least 25% of free cash flow for 2021. Based on the mid-point of
The Company expanded its commitment to debt paydown and to maintaining its investment grade credit rating, and now expects to repay approximately
Key Metrics Utilized for 2021 Financial Guidance |
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Adjusted Gross Margin (1) |
58.0% - 59.0% |
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Adjusted SG&A % of Total Revenue (1) |
20.5% - 21.5% |
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Adjusted R&D % of Total Revenue (1) |
3.7% - 3.9% |
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Net Cash Provided by Operating Activities |
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Capital Expenditures |
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Adjusted Effective Tax Rate (1) |
18.0% - 19.0% |
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Shares Outstanding |
1.209 - 1.213 billion |
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(1) Non-GAAP financial measures. Please see "Non-GAAP Financial Measures" for additional |
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Key Exchange Rates Used for 2021 Guidance |
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Australian Dollar ($ / AUD) |
1.37 |
British Pound ($ / GBP) |
0.76 |
Canadian Dollar ($ / CAD) |
1.31 |
China Renminbi ($ / CNY) |
6.69 |
Euro ($ / EUR) |
0.84 |
Indian Rupee ($ / INR) |
73.76 |
Japanese Yen ($ / JPY) |
104.77 |
South Korean Won ($ / KRW) |
1,138.64 |
Conference Call
As previously announced,
The briefing can be accessed live by calling (855) 493-3607 or (346) 354-0950 for international callers (ID#: 3235536) or at the following address on the company's website: investor.viatris.com. The slide presentation and replay of the webcast also will be available on the website.
Non-GAAP Financial Measures
This press release includes the presentation and discussion of certain financial information that differs from what is reported under accounting principles generally accepted in
The stated forward-looking non-GAAP financial measure of
Full Year 2021 Guidance Items (Unaudited; in millions)
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GAAP |
Non-GAAP |
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Revenue |
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N/A |
Net Loss |
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N/A |
Adjusted EBIDTA |
N/A |
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N/A |
Free Cash Flow |
N/A |
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Reconciliation of Estimated 2021 GAAP Net Loss to Non-GAAP Adjusted EBITDA (Unaudited; in millions)
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A reconciliation of the estimated 2021 GAAP Net Loss to Non-GAAP Adjusted EBITDA |
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Estimated GAAP Net Loss |
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Adjusted EBIDTA |
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----------------------------- |
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Difference at |
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Estimated Reconciling Items:
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Depreciation and Amortization |
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Amortization of the Inventory Fair Value Adjustment |
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Restructuring and Acquisition Related Costs |
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Interest Expense |
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Other Items included tax expense, net |
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----------------------------- |
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Total |
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Reconciliation of Estimated 2021 GAAP Net Cash Provided by (Unaudited, in millions) |
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A reconciliation of the estimated 2021 GAAP
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Estimated GAAP |
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Less; Capital Expenditures |
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------------------------ |
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Free Cash Flow |
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Key Metrics Utilized for 2021 Guidance (Unaudited; in millions, except percentages)
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GAAP |
Non-GAAP |
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Gross margin as a % of revenue |
31.0 – 33.0% |
58.0 – 59.0% |
SG&A expenses as a % of revenue |
24.0 – 26.0% |
20.5 – 21.5% |
R&D expenses as a % of revenue |
3.8 – 4.0% |
3.7 – 3.9% |
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N/A |
Capital Expenditures |
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N/A |
Effective Tax Rate |
12.0 – 16.0% |
18.0 – 19.0% |
Shares Outstanding |
1,209 – 1,213 |
N/A |
2021 Non-GAAP Financial Metrics
The Non-GAAP financial metric Adjusted Gross Margin as a percentage of Revenues excludes the impact of Depreciation and Amortization, the Amortization of the Inventory Fair Value Adjustment from the Combination and certain Restructuring and Acquisition Related Costs when compared to the GAAP Gross Margin as a percentage of Revenues.
The Non-GAAP financial metric Adjusted R&D as a percentage of Revenues excludes the impact of certain Restructuring and Acquisition Related Costs and other items when compared to the GAAP R&D as a percentage of Revenues.
The Non-GAAP financial metric Adjusted SG&A as a percentage of Revenues excludes the impact of certain Restructuring and Acquisition Related Costs and other items when compared to the GAAP SG&A as a percentage of Revenues.
The Non-GAAP financial metric Adjusted Effective Tax Rate percentage the impact of non-GAAP adjustments and other tax related items when compared to the GAAP Effective Tax Rate percentage.
About Viatris
Forward-Looking Statements
This release contains "forward-looking statements." These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements with respect to 2021 financial guidance, rapid de-leveraging, debt repayments, long-term leverage ratio target and ranges, enhancement and growth of free cash flows, initiating a dividend and the expected dividend amounts, delivering total shareholder return (TSR), maintaining a strong balance sheet, rebalancing the business, 2021 being a trough year in terms of revenue, adjusted EBITDA and free cash flow, tailwinds and headwinds, our Global Healthcare Gateway® fueling our future growth, executing on our mission to empower people worldwide to live healthier at every stage of life, meeting our commitment to provide a longer-term financial outlook in the coming months, positioning our business to succeed and compete in the current environment, maintaining investment grade credit rating, not instituting any share repurchase programs until the leverage ratio is at less than 2.5x, financial flexibility, delivering value to shareholders being paramount to our priorities and operational thesis, the benefits and synergies of the Combination or our global restructuring program, future opportunities for the Company and its products and any other statements regarding the Company's future operations, financial or operating results, capital allocation, anticipated business levels, planned activities, anticipated growth, market opportunities, strategies, competitions, and other expectations and targets for future periods. Forward-looking statements may often be identified by the use of words such as "will", "may", "could", "should", "would", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "pipeline", "intend", "continue", "target", "seek" and variations of these words or comparable words. Because forward-looking statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the integration of Mylan and the Upjohn Business or the implementation of the Company's global restructuring program being more difficult, time consuming or costly than expected; the possibility that the Company may be unable to achieve expected benefits, synergies and operating efficiencies in connection with the Combination or its global restructuring program within the expected timeframe or at all or to successfully integrate Mylan and the Upjohn Business or implement its global restructuring program; operational or financial difficulties or losses associated with the Company's reliance on agreements with Pfizer in connection with the Combination, including with respect to transition services; the possibility that the Company may be unable to achieve all intended benefits of its strategic initiatives; the potential impact of public health outbreaks, epidemics and pandemics, including the ongoing challenges and uncertainties posed by the COVID-19 pandemic; the Company's failure to achieve expected or targeted future financial and operating performance and results; actions and decisions of healthcare and pharmaceutical regulators; changes in relevant laws and regulations, including but not limited to changes in tax, healthcare and pharmaceutical laws and regulations globally; the ability to attract and retain key personnel; the Company's liquidity, capital resources and ability to obtain financing; any regulatory, legal or other impediments to the Company's ability to bring new products to market, including but not limited to "at-risk launches"; success of clinical trials and the Company's or its partners' ability to execute on new product opportunities and develop, manufacture and commercialize products; any changes in or difficulties with the Company's manufacturing facilities, including with respect to inspections, remediation and restructuring activities, supply chain or inventory or the ability to meet anticipated demand; the scope, timing and outcome of any ongoing legal proceedings, including government inquiries or investigations, and the impact of any such proceedings on the Company; any significant breach of data security or data privacy or disruptions to our information technology systems; risks associated with having significant operations globally; the ability to protect intellectual property and preserve intellectual property rights; changes in third-party relationships; the effect of any changes in the Company's or its partners' customer and supplier relationships and customer purchasing patterns, including customer loss and business disruption being greater than expected following the Combination; the impacts of competition, including decreases in sales or revenues as a result of the loss of market exclusivity for certain products; changes in the economic and financial conditions of the Company or its partners; uncertainties regarding future demand, pricing and reimbursement for the Company's products; uncertainties and matters beyond the control of management, including but not limited to general political and economic conditions and global exchange rates; and inherent uncertainties involved in the estimates and judgments used in the preparation of financial statements, and the providing of estimates of financial measures, in accordance
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SOURCE
Media: +1.724.514.1968, Communications@viatris.com; Jennifer Mauer, Head of Global Communications and Corporate Brand, Jennifer.Mauer@viatris.com; Investors: +1.724.514.1813, InvestorRelations@viatris.com; Bill Szablewski, Head of Capital Markets, William.Szablewski@viatris.com; Melissa Trombetta, Head of Investor Relations, Melissa.Trombetta@viatris.com