Knight Reports Second Quarter 2016 Results
/EINPresswire.com/ -- MONTREAL, QUEBEC -- (Marketwired) -- 08/11/16 -- Knight Therapeutics Inc. (TSX: GUD) ("Knight" or the "Company"), a leading Canadian specialty pharmaceutical company, today reported financial results for its second quarter ended June 30, 2016.
All figures are in thousands of Canadian dollars except for share and per share amounts.
Key Events in Second Quarter 2016
-- Announced and completed a bought deal at $8.00 per common share for
gross proceeds of $230,000 including over-allotment exercise.
-- Received a Notice of Deficiency from Health Canada for ATryn®.
-- Entered into a distribution agreement with EMPA Healthcare LLC to
commercialize Neuragen® in the United Arab Emirates and Kuwait.
Key Events Subsequent to the Quarter Ended June 30, 2016
-- Acquired 11,470,920 common shares of Pediapharm Inc. in exchange for
221,126 common shares and 221,126 four-year warrants of Knight with an
exercise price of $10.00.
-- Entered into a distribution agreement with S.I.F.I - Societa Industria
Farmaceutica Italiana S.p.A. to commercialize NETILDEX™ in Canada.
-- Entered into a licencing and distribution agreement with 3D Signatures
Inc. ("3D Signatures") and Plicit Capital Corp. ("Plicit"). Knight also
committed to a minimum equity investment of $1,000 pursuant to a
business combination and public listing transaction between 3D
Signatures and Plicit.
-- Expanded distribution agreement with Ember Therapeutics Inc. ("Ember")
to include the territories of Romania and the Caribbean and acquired the
rights to two newly-acquired Ember products: Migralex™ and
RHY/Vavelta®.
Financial Results Reported in Thousands of Canadian Dollars
For the quarter ended June 30, 2016, the Company reported revenues of $1,135 and net income of $4,446. As at June 30, 2016, the Company had $638,423 in cash, cash equivalents and marketable securities, total shareholders' equity of $861,965 and 132,480,708 common shares outstanding.
"This past quarter marked our 4th successful equity-raise in 28 months all at increasing valuations," said Jonathan Ross Goodman, President and CEO of Knight Therapeutics Inc. "We hope to demonstrate that we are as GUD at commercializing innovative pharmaceuticals that touch people's lives as we are at raising money. To this end, we have deployed or committed over $300 million since our founding in low risk, fair return opportunities that will improve the health of Canadians and help build Knight into Canada's leading specialty pharma company."
Conference Call Notice
Knight will host a conference call to discuss its second quarter results today at 8:30 am ET. Investors and other interested parties may call 1-877-223-4471 (Operator Assisted Toll-Free) or 647-788-4922 (local or international).
A taped replay of the conference call will be available from today at 11:30 am ET until Sunday, September 11, 2016 at 11:59 pm ET. To access the replay, please call 1-800-585-8367 or 416-621-4642 and use access code 10254484.
Notice of Third Quarter 2016 Results
Knight expects to release its third quarter 2016 financial results on the morning of Thursday, November 10, 2016. Knight expects to hold a conference call at 8:30 am ET on the morning of the release. All interested parties are cordially invited to attend. Investors and other interested parties may call 1-877-223-4471 (Operator Assisted Toll-Free) or 647-788-4922 (local or international).
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets. Knight Therapeutics Inc.'s shares trade on TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company's web site at www.gud-knight.com or www.sedar.com.
Forward-Looking Statement
This document contains forward-looking statements for Knight Therapeutics Inc. and its subsidiaries. These forward looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Knight Therapeutics Inc. considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions the reader that these assumptions regarding future events, many of which are beyond the control of Knight Therapeutics Inc. and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations are discussed in Knight Therapeutics Inc.'s Annual Report and in Knight Therapeutics Inc.'s Annual Information Form for the year ended December 31, 2015. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.
INTERIM CONSOLIDATED BALANCE SHEETS
(Unaudited) (In thousands of Canadian dollars)
As at June 30, 2016 December 31, 2015
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ASSETS
Current
Cash and cash equivalents 363,713 237,481
Marketable securities 274,710 233,726
Trade and other receivables 4,505 2,994
Inventories 833 1,460
Other current financial assets 36,763 23,588
Income taxes receivable 146 231
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Total current assets 680,670 499,480
Property and equipment - 18
Intangible assets 5,956 3,320
Other financial assets 95,076 62,616
Investment in associate 81,393 81,027
Deferred income tax assets 4,904 2,527
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Total assets 867,999 648,988
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 1,289 2,416
Income taxes payable 4,745 4,031
Deferred other income - 293
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Total current liabilities 6,034 6,740
Deferred income tax liabilities - 186
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Total liabilities 6,034 6,926
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Shareholders' equity
Share capital 662,702 439,148
Warrants 161 161
Contributed surplus 7,712 6,772
Accumulated other comprehensive income 26,441 35,955
Retained earnings 164,949 160,026
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Total shareholders' equity 861,965 642,062
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Total liabilities and shareholders' equity 867,999 648,988
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INTERIM CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (In thousands of Canadian dollars, except for share and per share amounts)
Three-months ended Six-months ended
June 30 June 30
2016 2015 2016 2015
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Revenues 1,135 333 2,203 580
Cost of goods sold 535 272 781 358
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Gross margin 600 61 1,422 222
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Expenses
Selling and marketing 154 - 168 -
General and
administrative 2,055 2,446 4,234 5,123
Research and development 524 301 807 635
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(2,133) (2,686) (3,787) (5,536)
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Depreciation of property
and equipment 10 7 18 15
Amortization of
intangible assets 122 21 163 42
Interest income (6,124) (3,596) (10,940) (7,562)
Other income (354) (525) (1,453) (966)
Net gain on financial
assets (783) (6,495) (2,512) (14,024)
Purchase gain on
business combination - - - (550)
Gain on settlement of
loan receivable - (358) - (358)
Share of net income of
associate (805) - (1,659) -
Foreign exchange loss
(gain) 357 592 4,127 (3,818)
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Income before income
taxes 5,444 7,668 8,469 21,685
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Income tax expense
(recovery) 578 (1,053) 3,119 (1,053)
Deferred income tax
expense 420 201 427 402
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Net income for the
period 4,446 8,520 4,923 22,336
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Attributable to
shareholders of the
Company
Basic earnings per share 0.04 0.09 0.05 0.24
Diluted earnings per
share 0.04 0.09 0.05 0.24
Weighted average number
of common shares
outstanding
Basic 112,681,825 93,089,609 108,078,434 92,816,245
Diluted 113,112,999 93,222,325 108,410,280 93,028,011
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INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited) (In thousands of Canadian dollars)
Three-months ended Six-months ended
June 30 June 30
2016 2015 2016 2015
----------------------------------------------------------------------------
Net income for the period 4,446 8,520 4,923 22,336
Realized gain reclassified to
statement of income net of tax of
$1 and $65 for the three and six-
month period ended June 30, 2016
(net of tax of $810 and $1,300 for
the three and six-month period
ended June 30, 2015) (6) (5,206) (416) (8,050)
Other comprehensive income (loss) to
be reclassified to income or loss
in subsequent periods:
Unrealized gain on available-for-
sale financial instruments net of
tax of $75 and $147 for the three
and six-month period ended June 30,
2016 (net of tax of $72 and $404
for the three and six-month period
ended June 30, 2015) 2,127 898 2,548 3,000
Unrealized (loss) gain on
translating financial statements of
foreign operations (668) (2,065) (11,646) 10,852
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Other comprehensive income (loss)
for the period 1,453 (6,373) (9,514) 5,802
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Total comprehensive income (loss)
for the period 5,899 2,147 (4,591) 28,138
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INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited) (In thousands of Canadian dollars)
Share Contributed
Notes capital Warrants surplus
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Balance as at January 1, 2015 341,065 - 2,100
Net income for the period - - -
Realized gain reclassified to
statement of income, net of tax
of $1,300 - - -
Change in fair value of
available-for-sale financial
instruments, net of deferred
tax of $404 - - -
Change in unrealized gain on
translating financial
statements of foreign
operations - - -
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Comprehensive income -
Share-based compensation expense - - 2,865
Issuance of shares upon
financing, net of costs and
deferred tax of $2,200 14,573 - -
Issuance of shares upon exercise
of stock options 1,487 - (553)
Issuance of warrants - 161 -
Exercise of compensation
warrants 930 - (295)
Issuance of shares under share
purchase plan 42 - -
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Balance as at June 30, 2015 358,097 161 4,117
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Balance as at January 1, 2016 439,148 161 6,772
Net income for the period - - -
Realized gain reclassified to
statement of income, net of tax
for $65 - - -
Change in fair value of
available-for-sale financial
instruments, net of deferred
tax of $147
Change in unrealized loss on
translating financial
statements of foreign
operations - - -
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Comprehensive income (loss) - -
Share-based compensation expense - - 1,883
Issuance of shares upon bought
deal, net of costs and deferred
tax of $3,080 221,631 - -
Issuance of shares to associate 2,073 - (943)
Share purchase loans (200) - -
Issuance of shares under share
purchase plan 50 - -
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Balance as at June 30, 2016 662,702 161 7,712
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Accumulated
other Total
comprehensive Retained shareholders'
income earnings equity
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Balance as at January 1, 2015 9,967 125,859 478,991
Net income for the period - 22,336 22,336
Realized gain reclassified to
statement of income, net of tax
of $1,300 (8,050) - (8,050)
Change in fair value of
available-for-sale financial
instruments, net of deferred
tax of $404 3,000 - 3,000
Change in unrealized gain on
translating financial
statements of foreign
operations 10,852 - 10,852
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Comprehensive income 5,802 22,336 28,138
Share-based compensation expense - - 2,865
Issuance of shares upon
financing, net of costs and
deferred tax of $2,200 - - 14,573
Issuance of shares upon exercise
of stock options - - 934
Issuance of warrants - - 161
Exercise of compensation
warrants - - 635
Issuance of shares under share
purchase plan - - 42
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Balance as at June 30, 2015 15,769 148,195 526,339
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Balance as at January 1, 2016 35,955 160,026 642,062
Net income for the period - 4,923 4,923
Realized gain reclassified to
statement of income, net of tax
for $65 (416) - (416)
Change in fair value of
available-for-sale financial
instruments, net of deferred
tax of $147 2,548 2,548
Change in unrealized loss on
translating financial
statements of foreign
operations (11,646) - (11,646)
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Comprehensive income (loss) (9,514) 4,923 (4,591)
Share-based compensation expense - - 1,883
Issuance of shares upon bought
deal, net of costs and deferred
tax of $3,080 - - 221,631
Issuance of shares to associate - - 1,130
Share purchase loans - - (200)
Issuance of shares under share
purchase plan - 50
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Balance as at June 30, 2016 26,441 164,949 861,965
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INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) (In thousands of Canadian dollars)
Six-month period ended June 30
2016 2015
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OPERATING ACTIVITIES
Net income for the period 4,923 22,336
Adjustments reconciling net income to
operating cash flows:
Deferred tax 427 403
Share-based compensation expense 1,883 2,865
Depreciation and amortization 181 57
Accretion of interest (2,846) (2,220)
Realized gain on sale of other financial
assets (142) (13,799)
Unrealized gain on financial assets (2,370) (225)
Gain on settlement of loan receivable - (358)
Foreign exchange loss (gain) 4,127 (4,146)
Purchase gain on business combination - (550)
Share of net income from associate (1,659) -
Changes in non-cash working capital
related to operations 963 (5,376)
Deferred other income (293) (709)
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Cash inflow (outflow) from operating
activities 5,194 (1,722)
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INVESTING ACTIVITIES
Purchase of marketable securities (283,125) (383,578)
Purchase of financial assets (5,423) (2,356)
Purchase of intangibles (2,924) -
Investment in funds (9,225) (8,295)
Issuance of loans receivable (37,449) (31,347)
Proceeds from repayments of loans
receivable 2,023 10,028
Proceeds from disposal of financial assets 4,026 29,242
Proceeds from sale of marketable
securities 234,104 420,691
Dividend income from associate 2,423 -
Consideration paid on business combination - (1,750)
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Cash (outflow) inflow from investing
activities (95,570) 32,635
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FINANCING ACTIVITIES
Issuance of shares upon bought deal 218,552 -
Proceeds from exercise of compensation
warrants - 635
Proceeds from exercise of an over-
allotment option - 12,424
Share option plan - 934
Share purchase plan 50 42
Share purchase loans (200) -
Cost related to prior period share
issuance - (207)
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Cash inflow from financing activities 218,402 13,828
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Increase in cash during the period 128,026 44,741
Cash and cash equivalents, beginning of
the period 237,481 283,445
Net foreign exchange difference (1,794) 861
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Cash and cash equivalents, end of the
period 363,713 329,047
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Supplemental cash flow information:
Interest received 6,821 4,991
Income taxes paid 2,334 2,068
Contacts:
Knight Therapeutics Inc.
Jeffrey Kadanoff, P.Eng., MBA
Chief Financial Officer
514-484-GUD1 (4831)
514-481-4116 (FAX)
info@gud-knight.com
www.gud-knight.com
Distribution channels: Healthcare & Pharmaceuticals Industry
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