Valeant Pharmaceuticals Business Office Iv: Fact Based Discussions Virtually The Reduction Of Debt
Recent release: Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) today announced that it volition bear a fact-based presentation to refute recent misleading assertions made yesteryear Allergan, Inc. (NYSE: AGN) too others, equally good equally reply additional investor questions, on June 17, 2014.
As stated: the presentation Valeant is making is "fact-based". The option is unthinkable.
However I desire to ensure that prior to the presentation my readers know that yous must physically banking concern fit "facts" that Valeant too their management state. Let me demonstrate amongst a unmarried seemingly irrefutable example:
Here is Mike Pearson, the CEO of Valeant talking nearly his strategy inward the context of the (not-consummated) merger amongst Cephalon.
Michael Pearson, chairman too CEO of Valeant... by tvnportal
I choose started the video at four minutes too 3 seconds. Mr Pearson is answering a query nearly their acquisition spree.
Now this is not a forrad looking statement. And for an acquisitive finance-driven CEO its a publish that he should non larn wrong. Level of debt is a deterministic too audited number. H5N1 "fact based" publish - or dare I say it - a "reality based" number.
Anyway the Biovail merger shut on the 27 September 2010 amongst the legacy Valeant shareholders existence paid a especial dividend.
Here - courtesy of Capital IQ - is the cyberspace debt (in millions of USD) for Valeant every quarter from June 2010 onwards. The June 2010 debt is the debt inward legacy Biovail (which was afterward renamed Valeant).
Now Valeant bid for Cephalon inward 2011 when this video was filmed.
In that menstruum at that spot is a unmarried quarter when the cyberspace debt brutal - too that was yesteryear less than vi 1000000 dollars. Gross debt (ie earlier cash too brusque term investments) brutal inward that quarter yesteryear to a greater extent than merely entirely at the terms of running downwards the cash balance. The falls are marked in red (one occurs after the menstruum inward query too is the lawsuit of selling shares for cash). [The other menstruum inward which debt brutal it brutal because of selling additional shares for cash which was used for the Bausch + Lomb acquisition.]
On the human face upward of it - using the numbers above, the contention that they bought debt downwards quite chop-chop after the Biovail merger looks similar a porky. But at that spot is an option hypothesis - which is that Valeant management choose a dissimilar thought to me on what it agency to convey debt downwards quite quickly. They powerfulness hateful debt to cyberspace assets (but fifty-fifty that is problematic inward a companionship amongst losses). They powerfulness hateful debt to cash stream (except that has risen also though non quite equally monotonically.)
So for the "fact based" presentation I inquire entirely 1 affair of Valeant management. The "facts" take away to live on verifiable - inward such a way when I choose a dissimilar interpretation than yous I tin mail away encounter the difference.
John
As stated: the presentation Valeant is making is "fact-based". The option is unthinkable.
However I desire to ensure that prior to the presentation my readers know that yous must physically banking concern fit "facts" that Valeant too their management state. Let me demonstrate amongst a unmarried seemingly irrefutable example:
Here is Mike Pearson, the CEO of Valeant talking nearly his strategy inward the context of the (not-consummated) merger amongst Cephalon.
Michael Pearson, chairman too CEO of Valeant... by tvnportal
I choose started the video at four minutes too 3 seconds. Mr Pearson is answering a query nearly their acquisition spree.
Interviewer: Now Mr Pearson, yous choose been on a piddling fight of a spending spree lately. I sympathise that yous choose made something similar 20 acquisitions inward the yesteryear 3 years too immediately nosotros take away heed that Standard too Poors is putting yous on a piddling fight of a spotter because of your debt province of affairs why produce yous hollo upward this is the right strategy for your company.
Mike Pearson: Well it has been the strategy e'er since I got there. It is non a alter inward strategy. Its what nosotros choose been doing. We choose successfully raised debt historically too nosotros believe that nosotros volition live on able to pay downwards the debt quite rapidly if nosotros are able to goal this transaction. We choose done that inward the past. When nosotros merged amongst Biovail our debt genuinely went upward too nosotros brought it downwards quite chop-chop since that fourth dimension too nosotros invention to produce the same amongst this.
Now this is not a forrad looking statement. And for an acquisitive finance-driven CEO its a publish that he should non larn wrong. Level of debt is a deterministic too audited number. H5N1 "fact based" publish - or dare I say it - a "reality based" number.
Anyway the Biovail merger shut on the 27 September 2010 amongst the legacy Valeant shareholders existence paid a especial dividend.
Here - courtesy of Capital IQ - is the cyberspace debt (in millions of USD) for Valeant every quarter from June 2010 onwards. The June 2010 debt is the debt inward legacy Biovail (which was afterward renamed Valeant).
| Balance Sheet equally of: | Total Cash & ST Investments | Total Debt | Net Debt |
| Q2Jun-30-2010 | 183 | 319 | 136 |
| Q3Sep-30-2010 | 598 | 3236 | 2637 |
| Q4Dec-31-2010 | 400 | 3595 | 3195 |
| Q1Mar-31-2011 | 406 | 4716 | 4310 |
| Q2Jun-30-2011 | 242 | 4547 | 4305 |
| Q3Sep-30-2011 | 258 | 5227 | 4969 |
| Q4Dec-31-2011 | 170 | 6651 | 6481 |
| Q1Mar-31-2012 | 332 | 7003 | 6672 |
| Q2Jun-30-2012 | 395 | 7557 | 7161 |
| Q3Sep-30-2012 | 258 | 7640 | 7382 |
| Q4Dec-31-2012 | 916 | 11026 | 10110 |
| Q1Mar-31-2013 | 414 | 10617 | 10203 |
| Q2Jun-30-2013 | 2539 | 10794 | 8255 |
| Q3Sep-30-2013 | 596 | 17405 | 16808 |
| Q4Dec-31-2013 | 600 | 17380 | 16779 |
| Q1Mar-31-2014 | 600 | 17387 | 16787 |
Now Valeant bid for Cephalon inward 2011 when this video was filmed.
In that menstruum at that spot is a unmarried quarter when the cyberspace debt brutal - too that was yesteryear less than vi 1000000 dollars. Gross debt (ie earlier cash too brusque term investments) brutal inward that quarter yesteryear to a greater extent than merely entirely at the terms of running downwards the cash balance. The falls are marked in red (one occurs after the menstruum inward query too is the lawsuit of selling shares for cash). [The other menstruum inward which debt brutal it brutal because of selling additional shares for cash which was used for the Bausch + Lomb acquisition.]
On the human face upward of it - using the numbers above, the contention that they bought debt downwards quite chop-chop after the Biovail merger looks similar a porky. But at that spot is an option hypothesis - which is that Valeant management choose a dissimilar thought to me on what it agency to convey debt downwards quite quickly. They powerfulness hateful debt to cyberspace assets (but fifty-fifty that is problematic inward a companionship amongst losses). They powerfulness hateful debt to cash stream (except that has risen also though non quite equally monotonically.)
So for the "fact based" presentation I inquire entirely 1 affair of Valeant management. The "facts" take away to live on verifiable - inward such a way when I choose a dissimilar interpretation than yous I tin mail away encounter the difference.
John
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