Questcor Pharmaceuticals, INC.

Consolidated Statement of Income and Comprehensive Income

(In thousands, except for per share data)

2013
Revenues
Pharmaceutical net sales
Contract manufacturing net sales

Total net sales

Cost of sales (exclusive of amortization of
purchased technology and IPR&D asset)
Gross profit
Operating expenses:
Selling and marketing
General and administrative
Research and development
Depreciation and amortization
Change in fair value of contingent
consideration
Impairment of goodwill and intangibles
Total operating expenses
Income from operations
Interest and other (expense) income, net
Foreign currency transaction loss
Income before income taxes
Income tax expense
Net income $

Change in unrealized gains or losses on

761,347
37,582
798,929
74,365
724,564
152,856
56,408
59,730
4,055
10,958
719
284,726
439,838
250
(548)
439,540
146,931
292,609

available-for-sale securities, net of

related tax effects.
Change foreign currency translation
adjustments.
Comprehensive Income
Net income per share applicable to common
shareholders:
Basic
Diluted
Shares used in computing net income per
share applicable to common shareholders:
Basic
Diluted
Dividends declared per common share

(35)

$
$

(3,258)
289,316

4.99
4.76

58,616
61,447
$

1.10

ome

Years Ended December 31,

2012
$

509,292
509,292

2011
$ 218,169
218,169

9.3%
90.7%

28,555
480,737

5.6%
94.4%

12,459 5.7%
205,710 94.3%

19.1%
7.1%
7.5%
0.5%

114,139
33,596
34,269
1,219

22.4%
6.6%
6.7%
0.2%

56,728 26.0%
17,743 8.1%
16,778 7.7%
1,044 0.5%

1.4%
0.1%
35.6%
55.1%
0.0%
-0.1%
55.0%
18.4%
36.6%

987
184,210
296,527
703
297,230
99,555
197,675

0.0%
0.2%
36.2%
58.2%
0.1%
0.0%
58.4%
19.5%
38.8%

299
92,592
113,118
627
113,745
34,154
$ 79,591

0.0%
0.1%
42.4%
51.8%
0.3%
0.0%
52.1%
15.7%
36.5%

0.0%

76

0.0%

(59) 0.0%

-0.4%
36.2%

197,751

0.0%
38.8%

0.0%
79,532 36.5%

$
$

3.28
3.14

$
$

60,243
63,045
$

0.40

1.27
1.21

62,498
66,010
$

QUESTCOR PHARMACEUTICALS, INC.

CONSOLIDATED BALANCE SHEETS
(In thousands, except share information)

ASSETS
Current assets:
Cash and cash equivalents
Short-term investments
Total cash, cash equivalents and short-term
investments
Accounts receivable, net of allowances for doubtful
accounts of $475 and $0 at December 31, 2013 and
December 31, 2012, respectively
Inventories, net of allowances of $1,329 and $52 at
December 31, 2013 and December 31, 2012,
respectively
Restricted cash - current portion
Prepaid expenses and other current assets
Deferred tax assets
Total current assets
Property and equipment, net
Purchased technology, net
Goodwill
In process R&D asset
Intangibles and other non current assets
Restricted cash
Deposits and other assets
Deferred tax assets
Total assets

December 31,
2013

2012

80,608
74,705

32%
30%

33%

155,313

62%

12%

61,417

24%

175,840
69,166

24%
9%

245,006

87,069

16,368 2%
9,909 4%
25,000 3%
7,124 1%
4,900 2%
16,209 2%
5,737 2%
396,776 54%
237,276 94%
31,733 4%
2,073 1%
1,493 1%
20,464 3%
191,451 26%
30,131 4%
50,000 7%
389
70
15,410 2%
11,519 5%
736,354 100% $ 252,431 100%

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Accounts payable
Accrued compensation
Sales-related reserves
Accrued royalties
Dividend payable
Current portion of contingent consideration
Current portion of in process R&D liability
Income taxes payable
Current portion of long-term debt
Other accrued liabilities
Total current liabilities
Long-term debt, less current portion
Contingent consideration
In process R&D liability
Non current deferred tax liability
Other non current liabilities
Total liabilities
Commitments and contingencies (see Note 7)
Shareholders' equity:
Preferred stock, no par value, 5,334,285 shares
authorized; none outstanding
Common stock, no par value, 105,000,000 shares
authorized, 60,137,758 and 58,544,206 shares issued
and outstanding at December 31, 2013 and

December 31, 2012, respectively

Retained earnings
Accumulated other comprehensive income (loss)
Total shareholders' equity
Total liabilities and shareholders' equity
Common Stock Outstanding
Price per Share on December 31

December 31,
2013

14,302
16,489
35,370
35,163
18,093
4,238
25,000
3,693
1,665
7,159
161,172
13,998
33,224
115,066
10,569
2,961
336,990

2012

2%
2%
5%
5%
2%
1%
3%
1%
0%
1%
22%
2%
5%
16%
1%
0%
46%

13,069
21,300
37,376
9,802
7,360
1,492
90,399
203
90,602

5%
3%
5%
1%
0%
0%
0%
1%
0%
0%
12%
0%
0%
0%
0%
0%
12%

30,386 4%
15,938 2%
372,231 51%
145,851 20%
(3,253) 0%
40 0%
399,364 54%
161,829 22%
736,354 100% $ 252,431 34%
60,137,758
58544206
54.45
n/a

QUESTCOR PHARMACEUTICALS INC

CASH_FLOW
Form Type: 10-K
Period End: Dec 31, 2013
Date Filed: Feb 26, 2014
QUESTCOR PHARMACEUTICALS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
2013
2012
(In thousands)
Cash Flows From Operating Activities
Net income
Adjustments to reconcile net income to net
cash provided by operating activities:
Share-based compensation expense
Deferred income taxes
Amortization of investments
Depreciation and amortization
Impairment of goodwill and intangibles
Loss on disposal of property and equipment
Changes in fair value of contingent
consideration
Imputed interest for contingent
consideration and in-process R&D
Other compensation expense
Changes in operating assets and liabilities:
Accounts receivable
Inventories
Prepaid income taxes
Prepaid expenses and other current assets
Accounts payable
Accrued compensation
Accrued royalties
Sales-related reserves
Income taxes payable
Other accrued liabilities
Other non-current liabilities
Net cash provided by operating activities
Cash Flows From Investing Activities
Purchase of short-term investments
Proceeds from the sale and maturities of
short-term investments
Purchase of property, equipment and
leasehold improvements
Restricted cash associated with the

$ 292,609

197,675

28,753
(14,849)
412
14,172
719
95

15,792
241
1,330
1,219
987
72

6,429

4,529
1,892

(19,155)
4,577
(1,335)
(589)
(4,811)
25,361
(2,006)
(3,667)
3,307
1,335
337,778

(33,616)
(4,683)
6,940
(1,509)
7,566
9,710
5,463
3,257
7,360
1,317
(84)
219,037

(120,645)

(145,384)

125,737

191,105

(3,536)

(1,065)

acquisition of Synacthen
Acquisition of BioVectra, net of cash
acquired
Acquisition of Synacthen
Proceeds from sale of Doral
Changes in deposits and other assets
Net cash (used in) / provided by investing
activities
Cash Flows From Financing Activities
Repayment of funded long-term debt
Repayment of other long-term debt
Income tax benefit realized from share-based
compensation plans
Issuance of common stock, net
Dividends paid
Repurchase of common stock
Net cash (used in) / provided by financing
activities
Impact of exchange rate on cash flows

(75,000)

(46,692)
(60,000)
700
2,119

(14)

(177,317)
(1,219)
(491)

44,642
-

22,809
15,940
(48,136)
(53,054)

7,488
6,335
(23,533)
(261,830)

(64,151)
(1,078)

(271,540)
-

2011

$ 79,591

7,326
(4,896)
1,250
1,044
299
11
(16,673)
(1,500)
(3,408)
(1,527)
1,634
7,432
3,030
12,608
(504)
(118)
85,599
(162,301)
112,636
(1,823)

9
(51,479)
17,712
6,582
(11,453)
12,841
-

Select Financial Ratios For Questcor, INC

2013

2012

Ratio
Current ratio
Quick ratio
Inventory turnover
Days to Sell
Receivables Turnover
Days to Collect
Debt ratio
Times Interest Earned
Fixed Charge Ratio
Net Profit margin
ROA
ROE
Discussion with industry averages
6 Free Cash Flow 10
7 P/E Ratio for the 2 years 10
8 DuPont Analysis 10
9 Written Analysis 16

2.46
2.36
5.66
64.49
10.76
33.92 days
0.85
1,759.35
0.37
0.40
0.73

2.62
2.52
n/a
n/a
n/a
n/a
0.38
421.80
0.39
0.78
1.22

Industry Average

Altman's Z-Score
Variable
X1
X2
X3
X4
X5

Ret Ear ('13)

Coefficient (CE)
1.2
1.4
3.3
0.6
1

372,231

Xn
(CE*Xn)
0.32
0.38
0.94
1.31
1.11
3.66
9.72
5.83
1.08
1.08
Z-Score=
12.27