Answer To: INSTRUCTIONS: Calculations Needed: Calculate ALXN’s ROE, ROA, Net Margin for EACH YEAR and Build...
Shakeel answered on Mar 30 2021
CONS BALANCE SHEET
Consolidated Statements of Operations (USD $)
In 1,000's, except Per Share data, unless otherwise specified Dec. 31, 2008 Dec. 31, 2009 Dec. 31, 2010 Dec. 31, 2011 Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023
Assets
Cash and cash equivalents $ 139,711 $ 176,220 $ 361,605 $ 540,865 $ 989,501 $ 1,514,851 $ 1,961,566 $ 1,385,000 $ 1,293,000 $ 1,474,100 $ 1,563,800
Trade accounts receivable, net $ 74,476 $ 113,731 $ 168,732 $ 244,288 $ 295,598 $ 421,752 $ 432,888 $ 533,000 $ 650,000 $ 726,500 $ 922,300
Inventories $ 49,821 $ 40,885 $ 62,165 $ 81,386 $ 94,521 $ 102,602 $ 176,441 $ 290,000 $ 375,000 $ 460,400 $ 472,500
Prepaid expenses and other current assets $ 13,093 $ 42,620 $ 34,411 $ 55,599 $ 89,894 $ 106,220 $ 225,134 $ 208,000 $ 260,000 $ 292,900 $ 426,400
Deferred tax assets $ - 0 $ - 0 $ 19,643 $ 19,132 $ 26,086 $ 41,432 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Total current assets $ 277,101 $ 373,456 $ 646,556 $ 941,270 $ 1,495,600 $ 2,186,857 $ 2,796,029 $ 2,416,000 $ 2,578,000 $ 2,953,900 $ 3,385,000 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Property, plant and equipment, net $ 139,885 $ 164,691 $ 162,240 $ 165,852 $ 165,629 $ 201,109 $ 392,248 $ 697,000 $ 1,036,000 $ 1,325,400 $ 1,471,500
Intangible assets, net $ 60,565 $ 248,254 $ 24,146 $ 91,604 $ 646,678 $ 609,719 $ 587,046 $ 4,708,000 $ 4,303,000 $ 3,954,400 $ 3,641,300
Goodwill $ - 0 $ - 0 $ 19,954 $ 79,639 $ 253,645 $ 254,073 $ 254,073 $ 5,048,000 $ 5,037,400 $ 5,037,400 $ 5,037,400
Deferred tax assets $ - 0 $ - 0 $ 154,569 $ 103,868 $ 13,954 $ 3,394 $ - 0 $ - 0 $ - 0 $ - 0
Other assets $ - 0 $ - 0 $ 4,572 $ 12,518 $ 38,054 $ 62,544 $ 172,566 $ 228,000 $ 299,000 $ 312,200 $ 396,700
Total assets $ 477,551 $ 786,401 $ 1,012,037 $ 1,394,751 $ 2,613,560 $ 3,317,696 $ 4,201,962 $ 13,097,000 $ 13,253,400 $ 13,583,300 $ 13,931,900 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Liabilities and Stockholders' Equity
Accounts payable $ 8,655 $ 11,530 $ 16,026 $ 16,029 $ 21,488 $ 21,596 $ 44,016 $ 57,000 $ 64,000 $ 35,000 $ 36,500
Accrued expenses $ 46,200 $ 71,657 $ 107,030 $ 183,624 $ 249,787 $ 402,344 $ 395,232 $ 403,000 $ 508,000 $ 675,200 $ 661,700
Deferred revenue $ 1,128 $ 1,652 $ 2,896 $ 17,905 $ 31,266 $ 53,801 $ 58,837 $ 21,000 $ 37,000 $ - 0 $ - 0
Revolving Credit Facility $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ 250,000
Current portion of long-term debt $ 2,796 $ 422 $ 715 $ - 0 $ 48,000 $ 48,000 48000 $ 166,000 $ 167,000 $ 167,400 $ 93,800
Current portion of contingent consideration $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ 56,000 $ 24,000 $ - 0 $ 97,600
Other current liabilities $ 25,639 $ 1 $ 11,848 $ 10,227 $ 9,548 $ 56,688 60655 $ 6,000 $ 23,000 $ 74,900 $ 34,400
Total current liabilities $ 84,418 $ 85,262 $ 138,515 $ 227,785 $ 360,089 $ 582,429 $ 606,740 $ 709,000 $ 823,000 $ 952,500 $ 1,174,000 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Long-term debt, less current portion $ 44,203 $ 503 $ 4,462 $ - 0 $ 101,000 $ 65,000 $ 9,500 $ 3,254,000 $ 2,888,000 $ 2,720,700 $ 2,501,700
Contingent consideration $ - 0 $ - 0 $ - 0 $ 18,120 $ 139,002 $ 106,744 $ 116,425 $ 121,000 $ 129,000 $ 168,900 $ 183,200
Facility lease obligation $ 151,000 $ 233,000 $ 342,900 $ 361,000
Deferred tax liabilities $ 906 $ 204 $ - 0 $ 3 $ 19,827 $ 32,230 $ 7,046 $ 529,000 $ 396,000 $ 365,000 $ 391,100
Commitments and contingencies $ 3,801 $ 2,158 $ - 0 $ 107,099 $ - 0 $ - 0 $ - 0 $ - 0
Other liabilities $ 97,222 $ 9,918 $ 9,324 $ 14,351 $ 22,792 $ 101,241 $ 53,134 $ 74,000 $ 90,000 $ 140,200 $ 155,600
Total liabilities $ 230,550 $ 98,045 $ 152,301 $ 260,259 $ 642,710 $ 887,644 $ 899,944 $ 4,838,000 $ 4,559,000 $ 4,690,200 $ 4,766,600 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Stockholders' Equity:
Common stock, $.0001 par value $ 5 $ 5 $ 6 $ 19 $ 20 $ 20 $ 20 $ - 0 $ - 0 $ - 0 $ - 0
Additional paid-in capital $ 941,439 $ 1,093,933 $ 1,173,480 $ 1,261,589 $ 1,852,221 $ 2,106,183 $ 2,592,167 $ 7,727,000 $ 7,957,000 $ 8,290,300 $ 8,539,100
Treasury stock, at cost $ (1,260) $ (2,676) $ (2,676) $ (2,676) $ (14,229) $ (80,365) $ (382,964) $ (711,000) $ (1,141,000) $ (1,604,900) $ (1,689,900)
Other $ 2,947 $ (1,942) $ (7,140) $ 4,179 $ 6,635 $ (22,857) $ 56,785 $ 62,000 $ 60,000 $ (34,400) $ (9,700)
Retained earnings $ (696,130) $ (400,964) $ (303,934) $ (128,619) $ 126,203 $ 427,071 $ 1,036,010 $ 1,181,000 $ 1,818,000 $ 2,242,100 $ 2,325,800
Total stockholders' equity $ 247,001 $ 688,356 $ 859,736 $ 1,134,492 $ 1,970,850 $ 2,430,052 $ 3,302,018 $ 8,259,000 $ 8,694,000 $ 8,893,100 $ 9,165,300 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Total liabilities and stockholders' equity $ 477,551 $ 786,401 $ 1,012,037 $ 1,394,751 $ 2,613,560 $ 3,317,696 $ 4,201,962 $ 13,097,000 $ 13,253,000 $ 13,583,300 $ 13,931,900 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
DEBT/EQUITY RATIO: 32.48% 31.05% ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!
DEBT $ 2,888,100 $ 2,845,500 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
EQUITY $ 8,893,100 $ 9,165,300 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
PV of Cash Flow NPV OF EST FUTURE CASH FLOW ERROR:#REF!
PV of EPS NPV PER SHARE 0.0001066406 ERROR:#REF!
3.94% Kd
0.18% Ke
1.07% WACC
ERROR:#REF! NPV OF FCF
INCOME STATEMENT
Consolidated Statements of Operations (USD $) 1.3333333333
In 1,000's, except Per Share data, unless otherwise specified Dec. 31, 2008 Dec. 31, 2009 Dec. 31, 2010 Dec. 31, 2011 Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2017 (Est) Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023
Net product sales $ 259,004 $ 386,800 $540,957 $783,431 $1,134,114 $ 1,551,346 $ 2,233,733 $ 2,604,532 $ 3,082,000 $ 3,551,100 $ 4,131,200
Other Revenue ` $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ 1,515 $ 2,000 $ - 0 $ - 0
Total revenue, all sources $ 259,004 $ 386,800 $ 540,957 $ 783,431 $ 1,134,114 $ 1,551,346 $ 2,233,733 $ 2,606,047 $ 3,084,000 $ 3,551,100 $ 4,131,200
Growth Rate in % 49% 40% 45% 45% 37% 44% 17% 18% 15% 16% COGS AS % OF SALES
Cost of sales: $141.11 $ 4.70 0.3277656053 R&D AS % OF SALES
Cost of sales $ 28,366 $ 45,059 $ 64,437 $ 93,140 $ 126,214 $ 168,375 $ 173,862 $ 233,089 $ 258,300 $ 454,200 $ 374,300 A&G AS % OF SALES
Gain on intellectual property settlement $ - 0 $ - 0 $ - 0 $ - 0 $ (53,377) $ 9,181 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 TAX RATE:
Total cost of sales $ 28,366 $ 45,059 $ 64,437 $ 93,140 $ 72,837 $ 177,556 $ 173,862 $ 233,089 $ 258,300 $ 454,200 $ 374,300 TERMINAL P/E MULT
COGS as % of Sales: 10.95% 11.65% 11.91% 11.89% 6.42% 11.45% 7.78% 8.95% 8.38% 12.79% 0.00%
Operating expenses:
Research and development $ 62,581 $ 81,915 98,394 137,421 222,732 $ 317,093 $ 513,782 $ 709,472 $ 757,000 $ 878,400 $ 730,400
Acquired In-Process R & D $ 1,183,000
R & D as % of Sales: 24.16% 21.18% 18.19% 17.54% 19.64% 20.44% 23.00% 27.24% 24.56% 24.74% 46.32%
Acquired
Selling, general and administrative $ 133,543 $ 172,767 226,766 308,176 384,678 $ 489,720 $ 630,209 $ 862,595 $ 954,000 $ 1,094,400 $ 1,111,800
Selling, gen, admin as % of Sales: 51.56% 0.00% 41.92% 39.34% 33.92% 31.57% 28.21% 33.12% 30.95% 30.82% 26.91%
Acquisition-related costs $ - 0 $ - 0 $ 722 $ 13,486 $ 22,812 $ 1,023 $ - 0 $ 39,210 $ 2,000 $ - 0 $ - 0
Restructuring Expense $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ 15,365 $ 42,169 $ 3,000 $ 104,600 $ 25,500
Impairment of intangible asset $ - 0 $ - 0 $ - 0 $ - 0 $ 26,300 $ 33,521 $ 11,514 $ - 0 $ 85,000 $ 31,000 $ - 0
Change in Val of Contingent Consideration $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ 4,006 $ 20,295 $ 64,257 $ 36,000 $ 41,000 $ 116,500
Amort of purchased intangible assets $ - 0 $ - 0 $ - 0 $ 382 $ 417 $ 417 $ - 0 $ 116,584 $ 322,000 $ 320,100 $ 320,100.00
Total operating expenses $ 196,124 $ 254,682 $ 325,882 $ 459,465 $ 656,939 $ 845,780 $ 1,191,165 $ 1,834,287 $ 2,159,000 $ 2,469,500 $ 3,487,300
Oper Exp as % of Sales 75.7% 65.8% 60.2% 58.6% 57.9% 54.5% 46.3% 39.4% 33.5% 69.5% 84.4%
Operating income (Loss) $ 34,514 $ 87,059 $ 150,638 $ 230,826 $ 404,338 $ 528,010 $ 868,706 $ 538,671 $ 666,700 $ 627,400 $ 269,600
Net Operating Margin: 24% 23% 28% 29% 36% 34% 39% 21% 22% 18% 7%
Growth Rate in % -7% 24% 6% 21% -5% 14% -47% 5% -18% -63%
Other income and expense:
Investment income (Loss) $ 121 $ (3,745) $ 1,511 $ 1,911 $ 1,838 $ 3,346 $ 6,383 $ 8,519 $ 11,000 $ 18,500 $ 65,300
Interest expense $ - 0 $ - 0 $ (704) $ (788) $ (7,402) $ (4,112) $ (2,982) $ (47,744) $ (97,000) $ (98,400) $ (98,200)
Foreign currency gain (loss) $ - 0 $ - 0 $ (2,434) $ (2,281) $ (1,208) $ (975) $ (1,990) $ 696 $ (5,000) $ 300.00 $ 5,500
Income (Loss) before income taxes $ 34,635 $ 83,314 $ 149,011 $ 229,668 $ 397,566 $ 526,269 $ 870,117 $ 500,142 $ 575,700 $ 547,800 $ 242,200
Income tax provision (benefit) $ 151 $ (211,852) 51,981 54,353 142,744 273,374 215,195 353,757 177,000 $ 104,500 $ 164,600
31.48% Marginal Tax Rate: 0.4% N/M 34.9% 23.7% 35.9% 51.9% 24.7% 70.7% 30.7% 19.1% 68.0%
Net income $ 34,484 $ 295,166 $ 97,030 $175,315 $254,822 $ 252,895 $ 654,922 $ 146,385 $ 398,700 $ 443,300 $ 77,600
Net Margin: 13.31% 76.31% 17.94% 22.38% 22.47% 16.30% 29.32% 5.62% 12.93% 12.48% 1.88%
Earnings per common share
Basic (in dollars per share) $0.44 $3.46 $0.54 $0.96 $1.34 $1.29 $ 3.32 $ 0.68 $ 1.78 $ 1.98 $ 0.35
Diluted (in dollars per share) $0.38 $3.26 $0.52 $0.91 $1.28 $1.27 $ 3.26 $ 0.67 $ 1.76 $ 1.97 $ 0.35 $ - 0 TERMINAL VALUE
Shares used in computing earnings per common share
Basic (in 1,000s shares) 77,680 85,326 178,542 183,220 190,461 195,532 198,103 213,431 224,300 223,900 222,700
Diluted (in 1,000s shares) 89,967 90,582 186,074 191,806 198,501 199,712 201,623 215,933 226,300 225,400 224,500
*Effective FY2016, company rounded financial numbers to nearest 100,000. 1.0% Increase in Shares Oustanding /Year (Assumed)
NPV OF EPS $0.34
CONS CASH FLOW STATEMENT
ALEXION - STATEMENT OF CASH FLOWS
Statement of Cash Flows - USD ($) $ in Millions 12 Months Ended
Dec. 31, 2010 Dec. 31, 2011 Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018
Cash flows from operating activities:
Net income (loss) $ 97,030 $ 175,315 $ 254,822 $ 252,895 $ 654,922 $ 146,385 $ 399,400 $ 443,300 $ 77,600
Adjustments to reconcile net income to net cash flows from operating activities: ' ' '
Depreciation and amortization $ 76 $ 17,616 $ 23,887 $ 28,693 $ 47,000 $ 167,000 $ 396,400 $ 496,700 $ 405,300
Impairment of intangible assets $ 15,792 $ - 0 $ 26,300 $ 33,521 $ 12,000 $ - 0 $ 85,000 $ 118,800 $ 13,500
Change in fair value of contingent consideration $ 32,338 $ 1,400 $ 6,550 $ 4,006 $ 20,000 $ 64,000 $ 35,700 $ 41,000 $ 116,500
Share-based compensation expense $ 36,389 $ 44,763 $ 54,013 $ 76,203 $ 114,000 $ 227,000 $ 192,300 $ 243,100 $ 203,000
Premium amortization of available-for-sale securities $ 960 $ (24) $ - 0 $ 3,235 $ - 0 $ - 0 $ - 0 $ (18,000) $ - 0
Non-cash Expense for Acquired IPR&D $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ 64,600
Deferred taxes $ - 0 $ 42,066 $ 71,155 $ 92,831 $ (154,000) $ 395,000 $ 104,300 $ (45,900) $ 32,900
Unrealized foreign currency loss (gain) $ (523) $ 5,516 $ (3,019) $ 1,144 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Unrealized loss (gain) on forward contracts $ 6,205 $ 479 $ (2,694) $ 764 $ - 0 $ - 0 $ (3,600) $ 11,100 $ (56,000)
Change in excess tax benefit from stock options $ - 0 $ - 0 $ - 0 $ - 0 $ (251,000) $ 90,000 $ - 0 $ - 0 $ - 0
Other $ - 0 $ 136 $ 880 $ 132 $ 37,000 $ 3,000 $ 13,400 $ (4,000) 2800
Changes in operating assets and liabilities, excluding the effect of acquisitions:
Accounts receivable $ (59,239) $ (78,778) $ (72,870) $ (116,439) $ (28,000) $ (116,000) $ (122,100) $ (55,200) $ (208,800)
Inventories $ (14,119) $ (12,179) $ (6,265) $ 126 $ (67,000) $ (88,000) $ (83,800) $ (88,200) $ (14,700)
Prepaid expenses and other assets $ (2,773) $ (21,040) $ (17,041) $ (39,879) $ (18,000) $ (57,000) $ (97,500) $ (137,200) $ (155,600)
Accounts payable, accrued expenses and other liabilities $ 47,455 $ 79,781 $ 61,723 $ 136,641 $ 265,000 $ (116,000) $ 166,800 $ 110,100 $ (55,100)
Deferred revenue $ 1,315 $ 15,033 $ 13,172 $ 23,476 $ 6,000 $ (38,000) $ - 0 $ - 0
Net cash provided by operating activities $ 160,906.00 $ 270,084.00 $ 410,613.00 $ 497,349.00 $ 637,922.00 $ 677,385.00 $ 1,086,300.00 $ 1,115,600.00 $ 426,000.00
0
Cash flows from investing activities:
Purchases of available-for-sale securities $ (129,860) $ - 0 $ - 0 $ (1,048,429) $ (664,000) $ (520,000) $ (667,100) $ (1,648,800) $ (782,700)
Proceeds from maturity or sale of available-for-sale securities $ ...