Catalent Pharma Solutions Inc., a leading provider of advanced
technologies and outsourced services to the global pharmaceutical,
biotechnology and consumer health industry announced its financial
results for the fourth quarter and fiscal year ended June 30, 2007.
Catalent recognized net revenue for the year of $1.7 billion, and
EBITDA from continuing operations of $35.0 million after giving effect
to the Acquisition (described in detail below) and related purchase
method of accounting adjustments. Adjusted EBITDA as detailed in the
attached schedules was $332.5 million. EBITDA and adjusted EBITDA are
defined below under "Non-GAAP Financial Matters".
Catalent's President and Chief Executive Officer, John Lowry,
said, "We are delighted with the progress we have made since the
acquisition by an affiliate of The Blackstone Group on April 10, 2007.
Our separation activities from Cardinal Health, Inc. are ahead of
schedule and our anticipated expense savings are on track."
"We previously announced in June that we had reached a decision to
divest the sterile facility in Albuquerque, New Mexico. Today we are
also announcing that we plan to divest our manufacturing facility in
Osny, France. The Osny business is specialized and largely dedicated
to the production of hormone products, and as such is not core to our
future strategic direction. We anticipate that both of these
divestitures will be completed within the next nine to twelve months.
The results of operations from these businesses have been excluded
from the results of continuing operations of the company and
accordingly have been classified as discontinued operations."
"Also, as part of our strategy to streamline and focus, we
recently reorganized our business into three operating segments, Oral
Technologies, Sterile Technologies and Packaging Services. This
reorganization ensures that we have absolute clarity and P&L focus,
and improved alignment with our customers and markets."
"Both the senior management team and Catalent's employees are
excited by the opportunity to operate as an independent company, and
to pursue the many growth opportunities that are open to us."
David Eatwell, Catalent's Chief Financial Officer stated, "Our
largest segment, Oral Technologies, exceeded our expectations for the
fiscal year, with strong demand for our proprietary technologies and
services. The strong performance from this segment helped grow our
adjusted EBITDA for the twelve month period to $332.5 million."
A description of adjusted EBITDA, which excludes costs related to
the separation of Catalent from Cardinal Health, Inc. and costs
related to The Blackstone Group's acquisition of Catalent, among other
items, and a reconciliation of adjusted EBITDA to GAAP results are
included in this press release.
Results of Operations - Fiscal Year Ended June 30, 2007
Net revenue for the year ended June 30, 2007, was $1.7 billion, an
increase of $91.5 million, or 5.7%, compared to $1.6 billion in fiscal
2006. The increase was primarily driven by our Packaging Services
segment, with strong demand for clinical services and contract
packaging, in both Europe and the United States. In addition,
increased throughput gained from operational excellence initiatives,
coupled with a continued high level of product demand, contributed to
an increase in revenues from the Oral Technologies segment.
Gross margin for the year ended June 30, 2007, was $395.5 million,
including the impact of purchase accounting adjustments. Excluding
purchase accounting adjustments, the fiscal 2007 gross margin was
$427.0 million, an increase of $6.8 million, or 1.6%, compared to
$420.2 million in fiscal 2006. The increase in gross margin was due to
increased volumes discussed above and a favorable mix of products
within the Oral Technologies segment. This increase was partially
offset by lower demand within our Sterile Technologies segment for our
Blow-Fill-Seal offering, as well as the prior year receipt of a $14.0
million take-or-pay contract termination payment.
Selling, general and administrative expenses for the year ended
June 30, 2007, were $310.8 million, including the impact of purchase
accounting adjustments. Excluding purchase accounting adjustments,
SG&A was $300.6 million, an increase of $17.9 million, or 6.3%,
compared to $282.7 million for fiscal 2006. The increase was the
result of increased costs allocated by Cardinal Health, Inc. in the
first six months of the fiscal year, additional corporate expenses
attributable to the Acquisition, and increased equity compensation
expenses due to the acceleration of Cardinal Health stock options held
by employees as a result of the Acquisition.
EBITDA from continuing operations for the year ended June 30,
2007, was $35.0 million, which includes purchase accounting
adjustments relating to inventory fair value and a write off of
purchased in-process research and development. This resulted in a
total charge in this period of $141.8 million. The adjusted EBITDA for
this period, including the adjustments related to the purchase
accounting charge and other adjustments, as detailed in the attached
schedules, was $332.5 million.
The adjusted EBITDA growth for the year ended June 30, 2007, was
driven by Oral Technologies, with adjusted EBITDA of $238.5 million,
an increase of $32.7 million, or 15.9%, primarily due to increased
demand for proprietary products in this segment. The adjusted EBITDA
for Sterile Technologies declined by $32.1 million to $7.1 million,
primarily due to lower demand within our Sterile Blow-Fill-Seal
offering and the receipt of a $14.0 million take-or-pay termination
payment in fiscal 2006. The adjusted EBITDA for Packaging Services was
$85.3 million, an increase of $4.9 million, or 6.1%, led by strong
demand for clinical services and contract packaging, both within
Europe and domestically.
Results of Operations - Fourth Fiscal Quarter Ended June 30, 2007
Net revenue for the three months ended June 30, 2007, was $451.3
million, an increase of $20.0 million, or 4.6%, compared to $431.3
million in fiscal 2006. The increase was primarily from the Packaging
Services segment, particularly within Europe, as well as from
continued strong demand for our Zydis(R) products within the Oral
Technologies segment.
Gross margin for the three months ended June 30, 2007, was $89.8
million, including the impact of purchase accounting adjustments.
Excluding purchase accounting adjustments, gross margin was $121.3
million, an increase of $1.7 million, or 1.4%, compared to $119.6
million in fiscal 2006. The increase in gross margin was due to the
increased volumes discussed above, but was negatively impacted by an
increased volume of products in the Packaging Services segment with
high levels of component pass-through costs. In addition, the start-up
costs of our new Sterile facility in Belgium increased, as compared to
the prior fiscal year.
Selling, general and administrative expenses for the three months
ended June 30, 2007, were $97.4 million, including the impact of
purchase accounting adjustments. Excluding purchase accounting
adjustments, SG&A was $87.2 million, an increase of $15.1 million, or
20.9%, compared to $72.1 million for fiscal 2006. The increase was
primarily due to additional corporate expenses attributable to the
Acquisition, and increased equity compensation expenses due the
acceleration of Cardinal Health stock options held by employees as a
result of the Acquisition.
The Acquisition
On April 10, 2007, an affiliate of The Blackstone Group acquired
the company (as the "Predecessor") from Cardinal Health, Inc. for an
aggregate purchase price of approximately $3.3 billion (the
"Acquisition"). The Company has performed a preliminary evaluation of
the fair values of the real and personal property, inventory and
certain identifiable intangible assets in connection with the purchase
price allocation related to the Acquisition. A valuation study was
performed by an independent third party, which supports the purchase
price allocation. The valuation study resulted in a fair value step-up
to real and personal property, inventory and certain identifiable
intangible assets. Catalent is in the process of finalizing its
purchase accounting information. In connection with the Acquisition,
Catalent entered into a senior secured credit facility, consisting of
an approximate $1.4 billion aggregate principal term loan, a $350.0
million revolving credit facility, senior toggle notes of $565.0
million and senior subordinated notes of $300.0 million.
Non-GAAP Financial Matters
In addition to disclosing financial results that are determined in
accordance with US GAAP, Catalent discloses EBITDA and Adjusted
EBITDA, which are non-GAAP measures. You should not consider EBITDA or
Adjusted EBITDA as an alternative to operating or net earnings,
determined in accordance with US GAAP, as an indicator of Catalent's
operating performance, or as an alternative to cash flows from
operating activities, determined in accordance with US GAAP, as an
indicator of cash flows, or as a measure of liquidity. EBITDA is
calculated by the sum of earnings before interest, taxes, depreciation
and amortization.
The Company's credit facilities have certain covenants that use
ratios utilizing a measure referred to as Adjusted EBITDA ("Adjusted
EBITDA"). The supplementary adjustments to EBITDA to derive Adjusted
EBITDA may not be in accordance with current SEC practices or the
rules and regulations adopted by the SEC that apply to periodic
reports filed under the Securities Exchange Act of 1934. Accordingly,
the SEC may require that Adjusted EBITDA be presented differently in
filings that will be made with the SEC than as presented in this
release, or not be presented at all. The most directly comparable GAAP
measure to EBITDA and Adjusted EBITDA is net earnings (loss). Included
in this release is a reconciliation of net earnings (loss) to EBITDA
and to Adjusted EBITDA.
Forward Looking Statements
This release contains "forward-looking statements". These
statements are based on current expectations of future events. If
underlying assumptions prove inaccurate or unknown risks or
uncertainties materialize, actual results could vary materially from
Catalent Pharma Solutions expectations and projections. Risks and
uncertainties include, but are not limited to general industry
conditions and competition; product or other liability risk inherent
in the design, development, manufacture and marketing of our
offerings; inability to enhance our existing or introduce new
technology or services in a timely manner; economic conditions, such
as interest rate and currency exchange rate fluctuations;
technological advances and patents attained by competitors; and our
substantial debt and debt service requirements that restrict our
operating and financial flexibility and impose significant interest
and financial costs. Catalent Pharma Solutions does not undertake to
update any forward- looking statements as a result of new information
or future events or developments unless required by law.
Combined Results
The combined results of the Company and the Predecessor for the
periods fiscal 2007 are not necessarily comparable due to the change
in basis of accounting resulting from the Company's acquisition of the
Predecessor and the change in capital structure. The presentation of
the 2006 and 2007 results on this combined basis does not comply with
generally accepted accounting principles; however management believes
that this provides useful information to assess the relative
performance of the businesses in all periods presented in the
financial statements.
Conference Call/ Webcast
The Company has scheduled a webcast on September 18th beginning at
10:30 a.m. (EDT) to review the results. To access the call and slide
presentation, go to the Investor Center at www.catalent.com. A replay
and transcript will also be available from the Investor Center at
www.catalent.com following the call.
About Catalent
Headquartered in Somerset, New Jersey, Catalent is the leading
provider of advanced technologies, and development, manufacturing and
packaging services for pharmaceutical, biotechnology and consumer
healthcare companies in nearly 100 countries. The company applies its
local market expertise and technical creativity to advance treatments,
change markets and enhance patient outcomes. Catalent employs
approximately 10,000 at more than 30 facilities worldwide and
generates more than $1.7 billion in annual revenue. For more
information, visit www.catalent.com.
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Catalent Pharma Solutions
Condensed Statements of Earnings
(unaudited, in millions)
The Company Predecessor Combined Predecessor
----------- ----------- ------------ ------------
April 10, April 1, to Three Months Three Months
2007 to April 9, Ended June Ended June
June 30, 2007 30, 2007 30, 2006
2007
----------- ----------- ------------ ------------
Net revenue $ 423.5 $ 27.8 $ 451.3 $ 431.3
Cost of products sold 333.0 28.5 361.5 311.7
----------- ----------- ------------ ------------
Gross margin 90.5 (0.7) 89.8 119.6
Selling, general and
administrative
expenses 75.5 21.9 97.4 72.1
Impairment charges
and (gain)/ loss on
sale of asset (0.2) 1.1 0.9 1.4
Purchased in-process
research and
development 112.4 - 112.4 -
Restructuring and
other special items 25.5 0.1 25.6 1.1
----------- ----------- ------------ ------------
Operating (loss)/
earnings (122.7) (23.8) (146.5) 45.0
Interest expense/
(income), net 44.1 1.2 45.3 (0.6)
Other expense/
(income), net 0.7 (0.8) (0.1) 0.4
----------- ----------- ------------ ------------
(Loss)/ earnings from
continuing
operations before
income taxes and
minority interest (167.5) (24.2) (191.7) 45.2
Income tax (benefit)
expense (21.2) (8.1) (29.3) 18.1
Minority interest,
net of tax expense 0.7 0.4 1.1 0.6
----------- ----------- ------------ ------------
(Loss)/ earnings from
continuing
operations (147.0) (16.5) (163.5) 26.5
(Loss)/ income from
discontinued
operations, net of
tax (3.3) (1.9) (5.2) 1.1
----------- ----------- ------------ ------------
Net (loss)/ earnings $ (150.3) $ (18.4) $ (168.7) $ 27.6
=========== =========== ============ ============
N.M. - percentage not
meaningful.
Change
-----------------
$ %
--------- --------
Net revenue $ 20.0 4.6%
Cost of products sold 49.8 16.0%
-------- --------
Gross margin (29.8) -24.9%
Selling, general and administrative expenses 25.3 35.1%
Impairment charges and (gain)/ loss on sale of asset (0.5) N.M.
Purchased in-process research and development 112.4 N.M.
Restructuring and other special items 24.5 N.M.
-------- --------
Operating (loss)/ earnings (191.5) -425.6%
Interest expense/ (income), net 45.9 -7650.0%
Other expense/ (income), net (0.5) -125.0%
-------- --------
(Loss)/ earnings from continuing operations before
income taxes and minority interest (236.9) -524.1%
Income tax (benefit) expense (47.4) -261.9%
Minority interest, net of tax expense 0.5 83.3%
-------- --------
(Loss)/ earnings from continuing operations (190.0) -717.0%
(Loss)/ income from discontinued operations, net of
tax (6.3) -572.7%
-------- --------
Net (loss)/ earnings $(196.3) -711.2%
======== ========
N.M. - percentage not meaningful.
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Catalent Pharma Solutions
Selected Segment Financial Data
(unaudited, in millions)
The Company Predecessor Combined Predecessor
----------- ----------- -------- -----------
April 10, April 1 to Three Three
2007 to April 9, Months Months
June 30, 2007 Ended Ended June
2007 June 30, 2006
30,
2007
----------- ----------- -------- -----------
Oral Technologies
Net revenue $ 239.1 $ 16.3 $ 255.4 $ 252.2
Segment EBITDA (a) 45.7 0.8 46.5 64.4
Sterile Technologies
Net revenue 64.3 3.0 67.3 68.3
Segment EBITDA (a) 5.2 (3.7) 1.5 8.7
Packaging Services
Net revenue 129.1 8.5 137.6 124.4
Segment EBITDA (a) 18.8 (1.2) 17.6 22.4
Other
EBITDA (a) (156.6) (16.9) (173.5) (30.0)
Intersegment Eliminations
Net Revenue (9.0) - (9.0) (13.6)
Combined Totals
Net revenue 423.5 27.8 451.3 431.3
EBITDA (a) (86.9) (21.0) (107.9) 65.5
Change
----------------
$ %
--------- -------
Oral Technologies
Net revenue $ 3.2 1.3%
Segment EBITDA (a) (17.9) -27.8%
Sterile Technologies
Net revenue (1.0) -1.5%
Segment EBITDA (a) (7.2) -82.8%
Packaging Services
Net revenue 13.2 10.6%
Segment EBITDA (a) (4.8) -21.4%
Other
EBITDA (a) (143.5) 478.3%
Intersegment Eliminations
Net Revenue 4.6 -33.8%
Combined Totals
Net revenue 20.0 4.6%
EBITDA (a) (173.4) -264.7%
(a) The April 10, 2007 to June 30, 2007 and three months ended June
30, 2007 include an inventory valuation adjustment to "fair value"
resulted in higher costs inventory being sold, which adversely
affected EBITDA. The adverse impact to EBITDA for Catalent was
approximately $29.4 million which is split by operating segment as
follows: Oral Technologies approximately $19.8 million, Sterile
Technologies approximately $3.6 million, Packaging Services
approximately $3.4 million and Other approximately $2.6 million.
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Catalent Pharma Solutions
Condensed Statements of Earnings
(unaudited, in millions)
The Company Predecessor Combined Predecessor
----------- ------------ ----------- -----------
April 10, July 1, 2006 Fiscal Year Fiscal Year
2007 to to April 9, Ended June Ended June
June 30, 2007 30, 2007 30, 2006
2007
----------- ------------ ----------- -----------
Net revenue $ 423.5 $ 1,280.2 $ 1,703.7 $ 1,612.2
Cost of products sold 333.0 975.2 1,308.2 1,192.0
----------- ------------ ----------- -----------
Gross margin 90.5 305.0 395.5 420.2
Selling, general and
administrative
expenses 75.5 235.3 310.8 282.7
Impairment charges and
(gain)/ loss on sale
of asset (0.2) (1.3) (1.5) 8.8
Purchased in-process
research and
development 112.4 - 112.4 -
Restructuring and
other special items 25.5 22.0 47.5 11.8
----------- ------------ ----------- -----------
Operating (loss)/
earnings (122.7) 49.0 (73.7) 116.9
Interest expense, net 44.1 8.9 53.0 6.8
Other, net 0.7 0.8 1.5 1.7
----------- ------------ ----------- -----------
(Loss)/ earnings from
continuing operations
before income taxes
and minority interest (167.5) 39.3 (128.2) 108.4
Income tax (benefit)
expense (21.2) (7.1) (28.3) 29.1
Minority interest, net
of tax expense 0.7 3.9 4.6 2.0
----------- ------------ ----------- -----------
(Loss)/ earnings from
continuing operations (147.0) 42.5 (104.5) 77.3
Loss from discontinued
operations, net of
tax (3.3) (19.5) (22.8) (26.3)
----------- ------------ ----------- -----------
Net (loss)/ earnings $ (150.3) $ 23.0 $ (127.3) $ 51.0
=========== ============ =========== ===========
N.M. - percentage not
meaningful.
Change
----------------
$ %
--------- -------
Net revenue $ 91.5 5.7%
Cost of products sold 116.2 9.7%
-------- -------
Gross margin (24.7) -5.9%
Selling, general and administrative expenses 28.1 9.9%
Impairment charges and (gain)/ loss on sale of asset (10.3) N.M.
Purchased in-process research and development 112.4 N.M.
Restructuring and other special items 35.7 N.M.
-------- -------
Operating (loss)/ earnings (190.6) -163.0%
Interest expense, net 46.2 679.4%
Other, net (0.2) -11.8%
-------- -------
(Loss)/ earnings from continuing operations before
income taxes and minority interest (236.6) -218.3%
Income tax (benefit) expense (57.4) -197.3%
Minority interest, net of tax expense 2.6 130.0%
-------- -------
(Loss)/ earnings from continuing operations (181.8) -235.2%
Loss from discontinued operations, net of tax 3.5 -13.3%
-------- -------
Net (loss)/ earnings $(178.3) -349.6%
======== =======
N.M. - percentage not meaningful.
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Catalent Pharma Solutions
Reconciliation of Net Earnings/(Loss) to Adjusted EBITDA
(unaudited, in millions)
The Company Predecessor Combined Predecessor
----------- ------------ ----------- -----------
April 10, July 1, 2006 Fiscal Year Fiscal Year
2007 to to April 9, Ended June Ended June
June 30, 2007 30, 2007 30, 2006
2007
----------- ------------ ----------- -----------
Net (loss)/ earnings $ (150.3) $ 23.0 $ (127.3) $ 51.0
Loss from
discontinued
operations, net of
tax 3.3 19.5 22.8 26.3
Interest expense 44.1 8.9 53.0 6.8
Income tax (benefit)
expense (21.2) (7.1) (28.3) 29.1
Depreciation and
amortization 37.2 77.6 114.8 87.2
----------- ------------ ----------- -----------
EBITDA (86.9) 121.9 35.0 200.4
Equity compensation 1.0 35.1 36.1
Impairment charges
and loss/(gain) on
sale of asset (0.2) (1.3) (1.5)
Purchase accounting
and restructuring
related items 167.2 22.0 189.2
Cardinal allocation - 16.9 16.9
Other non-recurring/
one-time items 9.5 9.0 18.5
Estimated cost
savings 2.1 18.5 20.6
Other adjustments 1.5 10.1 11.6
Sponsor monitoring
fee 2.2 - 2.2
Disposition
adjustments 1.2 2.7 3.9
----------- ------------ -----------
Adjusted EBITDA $ 97.6 $ 234.9 $ 332.5
=========== ============ ===========
N.M. - percentage not
meaningful.
Change
----------------
$ %
--------- -------
Net (loss)/ earnings $(178.3) -349.6%
Loss from discontinued operations, net of tax (3.5) -13.3%
Interest expense 46.2 679.4%
Income tax (benefit) expense (57.4) -197.3%
Depreciation and amortization 27.6 31.7%
-------- -------
EBITDA (165.4) -82.5%
Equity compensation
Impairment charges and loss/(gain) on sale of asset
Purchase accounting and restructuring related items
Cardinal allocation
Other non-recurring/ one-time items
Estimated cost savings
Other adjustments
Sponsor monitoring fee
Disposition adjustments
Adjusted EBITDA
N.M. - percentage not meaningful.
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Catalent Pharma Solutions
Selected Segment Financial Data
(unaudited, in millions)
The Company Predecessor Combined Predecessor
----------- ------------ ----------- -----------
April 10, July 1, 2006 Fiscal Year Fiscal Year
2007 to to April 9, Ended June Ended June
June 30, 2007 30, 2007 30, 2006
2007
----------- ------------ ----------- -----------
Oral Technologies
Net revenue $ 239.1 $ 704.2 $ 943.3 $ 911.1
Segment EBITDA (a) 45.7 173.0 218.7 205.8
Sterile Technologies
Net revenue 64.3 184.8 249.1 265.1
Segment EBITDA (a) 5.2 (1.7) 3.5 39.2
Packaging Services
Net revenue 129.1 422.6 551.7 482.6
Segment EBITDA (a) 18.8 63.1 81.9 80.4
Other
EBITDA (a) (156.6) (112.5) (269.1) (125.0)
Intersegment
Eliminations
Net Revenue (9.0) (31.4) (40.4) (46.6)
Combined Totals
Net revenue 423.5 1,280.2 1,703.7 1,612.2
EBITDA (a) (86.9) 121.9 35.0 200.4
Change
---------------
$ %
-------- ------
Oral Technologies
Net revenue $ 32.2 3.5%
Segment EBITDA (a) 12.9 6.3%
Sterile Technologies
Net revenue (16.0) -6.0%
Segment EBITDA (a) (35.7) -91.1%
Packaging Services
Net revenue 69.1 14.3%
Segment EBITDA (a) 1.5 1.9%
Other
EBITDA (a) (144.1) 115.3%
Intersegment Eliminations
Net Revenue 6.2 -13.3%
Combined Totals
Net revenue 91.5 5.7%
EBITDA (a) (165.4) -82.5%
(a) The April 10, 2007 to June 30, 2007 and the fiscal year ended
June 30, 2007 include an inventory valuation adjustment to "fair
value" resulted in higher costs inventory being sold, which
adversely affected EBITDA. The adverse impact to EBITDA for Catalent
was approximately $29.4 million which is split by operating segment
as follows: Oral Technologies approximately $19.8 million, Sterile
Technologies approximately $3.6 million, Packaging Services
approximately $3.4 million and Other approximately $2.6 million.
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Catalent Pharma Solutions
Condensed Balance Sheets
(unaudited, in millions)
The Company Predecessor
----------- -----------
June 30, June 30,
2007 2006
----------- -----------
ASSETS
Current assets:
Current assets $ 688.8 $ 691.2
Assets held for sale from discontinued
operations 82.3 130.1
----------- -----------
Total current assets 771.1 821.3
Property and equipment, net 1,056.1 1,001.4
Other non-current assets, including intangible
assets 2,037.2 743.4
----------- -----------
Total assets $ 3,864.4 $ 2,566.1
=========== ===========
LIABILITIES and EQUITY
Current liabilities:
Current portion of long-term obligations and
other short-term borrowings $ 36.4 $ 30.3
Current liabilities 291.1 215.4
Liabilities from discontinued operations 36.1 23.7
----------- -----------
Total current liabilities 363.6 269.4
Long-term obligations, less current portion 2,275.6 11.4
Other non-current liabilities 308.3 224.8
Minority interest 6.6 4.3
Commitments and contingencies
Total equity 910.3 2,056.2
----------- -----------
Total liabilities and equity $ 3,864.4 $ 2,566.1
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Catalent Pharma Solutions
Condensed Statements of Cash Flows
(unaudited, in millions)
The Company Predecessor
----------- ------------------------
April 10, July 1, 2006 Fiscal Year
2007 to to April 9, Ended June
June 30, 2007 30, 2006
2007
----------- ------------ -----------
Cash flows from operating
activities
Net cash provided by operating
activities from continuing
operations 69.0 184.6 142.0
Net cash provided by/(used in)
operating activities from
discontinued operations 2.7 (8.5) (0.8)
----------- ------------ -----------
Net cash provided by operating
activities 71.7 176.1 141.2
----------- ------------ -----------
Cash flows from investing
activities
Acquisition of subsidiaries, net
of divestitures and cash
acquired (3,285.5) 10.7 (1.4)
Proceeds from sale of property
and equipment - 8.1 4.2
Additions to property and
equipment (18.8) (104.6) (102.0)
----------- ------------ -----------
Net cash used in investing
activities from continuing
operations (3,304.3) (85.8) (99.2)
Net cash used in investing
activities from discontinued
operations (1.1) (8.9) (10.4)
----------- ------------ -----------
Net cash used in investing
activities (3,305.4) (94.7) (109.6)
----------- ------------ -----------
Cash flows from financing
activities
Net change in debt 2,297.3 (32.7) (38.4)
Long term debt financing costs (56.3) - -
Issuance of common stock 1,048.9 - -
Net transfers (to)/from Cardinal
Health, Inc. and affiliates and
other - (173.7) 13.5
----------- ------------ -----------
Net cash provided by/(used in)
financing activities from
continuing operations 3,289.9 (206.4) (24.9)
Net cash used in financing
activities from discontinued
operations - - -
----------- ------------ -----------
Net cash provided by/(used in)
financing activities 3,289.9 (206.4) (24.9)
----------- ------------ -----------
Effect of foreign currency
translation on cash 4.1 13.9 12.8
Net increase/(decrease) in cash
and equivalents 60.3 (111.1) 19.5
Cash and equivalents at beginning
of period 22.5 133.6 114.1
----------- ------------ -----------
Cash and equivalents at end of
period $ 82.8 $ 22.5 $ 133.6
=========== ============ ===========
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