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Sinovac Reports Unaudited Third Quarter 2016 Financial Results

Montag, 28.11.2016 12:00 von

PR Newswire

BEIJING, Nov. 28, 2016 /PRNewswire/ -- Sinovac Biotech Ltd. (NASDAQ: SVA), a leading provider of biopharmaceutical products in China, announced today its unaudited third quarter ended September 30, 2016.

Mr. Weidong Yin, Chairman, President and CEO of the Sinovac, commented, "Our third quarter revenue rebounded from a slower first half of the year, increasing 71.4% to $28.7 million from $16.8 million from the same period of 2015. The sales improvement was mainly attributable to the newly introduced EV71 vaccine product sales, which contributed approximately $16.5 million to our quarterly revenue, partially offset by Bilive and Anflu revenue decreases."

"Vaccine deliveries resumed in the third quarter after the interpretation of new government regulation was issued in June, however we expect the market for conventional vaccines to take longer to fully recover. Our Bilive sales decline was due to increased sales returns as the delayed supply reduced the shelf life of the vaccine in the channel, while our Anflu sales decline was a result of less vaccine produced during this challenging environment."

"We continued to make progress on our pipeline programs with the continuation of clinical trials of our varicella vaccine, Sabin IPV (sIPV) and pneumococcal polysaccharide vaccine (PPV). Heading into the fourth quarter, we expect EV71 vaccine sales to remain our leading revenue contributor," concluded Mr. Yin.

Third Quarter 2016 Business Highlights

Marketing and Sales

As in prior years, Sinovac submitted bids of its Healive in Beijing, Shanghai, and Jiangsu Province, and Anflu in Beijing. Sinovac won the tenders to supply Beijing with Healive over the course of 2016 to 2018 and Anflu for 2016. The total value of the tenders was RMB 32 million ($4.8 million) for Healive and RMB 6.6 million ($1.0 million) for Anflu. Sinovac was selected to be the sole supplier of Healive to Shanghai for 2016 and the value of the contract is RMB 14.1 million ($2.1 million). Sinovac won the tender to supply Healive to Jiangsu for 2016 and the total value of the tender was RMB 13.2 million ($2.0 million).

Research and Development

Varicella - The vaccine candidate was approved to commence human clinical trials in 2015. The phase I trial was completed and the results demonstrated a positive safety profile of the vaccine candidate. The phase III trial commenced in the third quarter. A phase III trial measures efficacy and immunogenicity with a randomized, double-blind, parallel-treatment, placebo-controlled study in addition to safety. Over 6,000 subjects aged one to twelve years old were enrolled as volunteers for the phase III clinical trial. We expect the phase III clinical trial to be completed in the third quarter of 2017, after which the production license application will be filed with the CFDA.

sIPV - The Company initiated the phase I clinical trial in October 2016. The preliminary results show a positive safety profile of the vaccine candidate. After the results were collected, Sinovac recently commenced the phase II trial, which is designed to study the immunogenicity of vaccine candidates with different levels of dosage content for the dose selection, and to further observe the safety of the vaccine. The phase II clinical trial is expected to be completed in the third quarter of 2017.

Unaudited Financial Results for Third Quarter 2016



2016Q3

% of Sales

2015Q3

% of Sales

(In $000 except percentage data)





Hepatitis A - Healive

6,872

23.9%

4,800

28.6%

Hepatitis A&B - Bilive

103

0.4%

3,701

22.1%






Hepatitis vaccines subtotal

6,975

24.3%

8,501

50.7%

Influenza vaccine

5,285

18.4%

8,032

47.9%

Enterovirus 71 vaccine

16,471

57.3%

-

-

Mumps vaccine

4

0.0%

231

1.4%

Regular sales

28,735

100.0%

16,764

100.0%

H5N1

-

-

-

-

Total sales

28,735

100.0%

16,764

100.0%

Cost of sales

5,705

19.9%

5,549

33.1%

Gross profit

23,030

80.1%

11,215

66.9%

Quarterly sales from continuing operations were $28.7 million compared to $16.8 million in the prior year period. Sales increased primarily due to revenue generated by the Company's EV71 vaccine.

Gross profit from continuing operations was $23.0 million, compared to gross profit of $11.2 million in the prior year period. The increase was primarily due to the contribution of EV71 vaccine sales in the third quarter of 2016. Gross margin was 80.1%, compared to 66.9% in the prior year period.

Selling, general and administrative expenses in the third quarter of 2016 were $12.3 million, compared to $10.0 million in the same period of 2015. The Company's selling, general and administrative expenses increased with the higher level of sales activity, and the Company also incurred a cost of $733 thousand relating to the proposed privatization of Sinovac.

R&D expenses in the third quarter of 2016 were $4.2 million, compared to $2.2 million in the same period of 2015. The increase was mainly due to higher R&D expenses on the varicella and sIPV vaccine projects in the third quarter of 2016.

Income from continuing operations was $4.3 million compared to a loss of $1.8 million in the prior year period. In addition, the third quarter of 2015 included a loss from discontinued operations of $183 thousand whereas no such income or loss was received in the third quarter of 2016.

Net income attributable to common shareholders was $3.2 million, or $0.06 per basic and diluted share, compared to net loss attributable to common shareholders of $1.6 million, or ($0.03) per basic and diluted share in the prior year period.

Non-GAAP EBITDA was $7.7 million in the third quarter of 2016, compared to $721 thousand in the prior year period. Non-GAAP net income from continuing operations in the third quarter of 2016 was $4.6 million, compared to a net loss of $1.2 million in the prior year period. Non-GAAP diluted earnings per share from continuing operations in the third quarter of 2016 was $0.06, compared to net loss of $0.01 per share in the prior year period. Reconciliations of non-GAAP measures to the nearest comparable GAAP measures are included at the end of this earnings announcement.

Unaudited Financial Results for nine months ended September 30, 2016



2016.1-9

% of Sales

2015.1-9

% of Sales

(In $000 except percentage data)





Hepatitis A - Healive

11,397

27.8%

16,185

36.4%

Hepatitis A&B - Bilive

(1,040)

(2.5)%

17,972

40.4%






Hepatitis vaccines subtotal

10,357

25.3%

34,157

76.8%

Influenza vaccine

5,995

14.6%

9,144

20.6%

Enterovirus 71 vaccine

18,033

43.9%

-

-

Mumps vaccine

289

0.6%

1,161

2.6%

Regular sales 

34,674

84.4%

44,462

100.0%

H5N1

6,392

15.6%

-

-

Total sales

41,066

100.0%

44,462

100.0%

Cost of sales

14,068

34.3%

11,140

25.1%

Gross profit

26,998

65.7%

33,322

74.9%

Sales from continuing operations were $41.1 million for the nine months ended September 30, 2016, a decrease of 7.6% from $44.5 million in the prior year period. Excluding H5N1 revenue, sales from continuing operations were $34.7 million for nine months ended September 30, 2016, a decrease of 22.0% from $44.5 million in the prior year period. The sales decrease was due to lower sales to customers in the first half of 2016 and an increase in sales returns as a result of the vaccine incident in Shandong province.

Gross profit from continuing operations was $27.0 million, a decrease of 19.0% from $33.3 million in the prior year period. Gross margin was 65.7%, compared to 74.9% in the prior year period. Excluding H5N1, gross margin was 67.0% for the nine months ended September 30, 2016, compared to 75.5% in the prior year period. The decrease was mainly due to a higher inventory provision provided for hepatitis A&B and mumps vaccines, higher idle capacity costs charged to cost of sales, and a negative gross profit for the hepatitis A&B vaccine due to higher sales returns provision provided in the period.

Selling, general and administrative expenses for the nine months ended September 30, 2016 were $26.7 million, compared to $25.8 million in the same period of 2015.

R&D expenses for the nine months ended September 30, 2016 were $9.1 million, compared to $6.6 million in the same period of 2015. The increase was mainly due to higher R&D expenses on the varicella and sIPV vaccines and the MMR vaccine project.

Net loss from continuing operations was $9.9 million, compared to $749 thousand in the prior year period. Net income from discontinued operations was $2.3 million, compared to a net loss of $619 thousand in the prior year period.

Net loss attributable to common shareholders was $5.0 million or ($0.09) per basic and diluted share for the nine months ended September 30, 2016, compared to net loss attributable to common shareholders of $1.6 million, or ($0.03) per basic and diluted share for the nine months ended September 30, 2015.

Non-GAAP EBITDA was negative $4.3 million for nine months ended September 30, 2016, compared to $6.7 million in the prior year period. Non-GAAP net loss from continuing operations for the nine months ended September 30, 2016 was $8.5 million, compared to a net income of $168 thousand in the prior year period. Non-GAAP diluted net loss per share from continuing operations for the nine months ended September 30, 2016 was $0.11, compared to $0.00 per share in the prior year period. Reconciliations of non-GAAP measures to the nearest comparable GAAP measures are included at the end of this earnings announcement.

As of September 30, 2016, cash and cash equivalents totaled $54.3 million, compared to $63.8 million as of December 31, 2015. For the nine months ended September 30, 2016 net cash used in operating activities was $15.5 million. Net cash used in investing activities was $7.4 million, which was for the purchase of equipment. Net cash provided by financing activities was $13.9 million, including loan proceeds of $35.0 million and loan repayment of $21.3 million. As of September 30, 2016, the Company had $29.4 million of bank loans due within one year. The Company expects that its current cash position will be able to support its operations for at least the next 12 months. The Company will seek new commercial bank loans to finance the commercialization of its pipeline products and for other operational purposes when appropriate.

Update on Consideration of "Going Private" Proposals

An independent special committee of the Company's Board of Directors is continuing its work to consider and evaluate competing proposals to privatize the Company. As disclosed previously, the Company's Board of Directors formed the special committee following the receipt of a non-binding "going private" proposal, dated January 30, 2016, from Mr. Weidong Yin, chairman, president and chief executive officer of the Company, and SAIF Partners IV L.P. and/or its affiliates. Subsequently, the special committee received a non-binding competing "going private" proposal, dated February 3, 2016, from a consortium comprised of PKU V-Ming (Shanghai) Investment Holdings Co., Ltd., Shandong Sinobioway Biomedicine Co., Ltd., CICC Qianhai Development (Shenzhen) Fund Management Co., Ltd., Beijing Sinobioway Group Co., Ltd., Heng Feng Investments (International) Limited and Fuerde Global Investment Limited.

The special committee has implemented a customary process to ensure a fair assessment of both proposals. The special committee continues to carefully consider and evaluate both proposals with the assistance of the special committee's financial and legal advisors.

No final decisions have been made with respect to either proposal, and there can be no assurance that any definitive and binding offer will be made, that any agreement will be executed or that either proposal or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to these or any other transactions, except as required under applicable law.

Conference Call Details

Sinovac will host a conference call on Monday, November 28, 2016, at 8:00 a.m. EDT (Monday, November 28 at 9:00 p.m. China Standard Time) to review the Company's financial results and provide an update on recent corporate developments.

To access the conference call, please dial 1-877-407-9039 (USA) or 1-201-689-8470 (International). A replay of the call will be available after the earnings call through December 12, 2016. To access the replay, please dial 1-877-870-5176 (USA) or 1-858-384-5517 (International) and reference the replay pin number 13650180.

About Sinovac

Sinovac Biotech Ltd. is a China-based biopharmaceutical company that focuses on the research, development, manufacturing, and commercialization of vaccines that protect against human infectious diseases. Sinovac's product portfolio includes vaccines against hepatitis A and B, seasonal influenza, H5N1 pandemic influenza (avian flu), H1N1 influenza (swine flu), mumps and canine rabies. In 2009, Sinovac was the first company worldwide to receive approval for its H1N1 influenza vaccine, which it has supplied to the Chinese Government's vaccination campaign and stockpiling program. The Company is also the only supplier of the H5N1 pandemic influenza vaccine to the government stockpiling program. Sinovac's newly developed innovative vaccine against HFMD caused by EV71 is ready for market launch. The Company is currently developing a number of new products including a Sabin-strain inactivated polio vaccine, pneumococcal polysaccharides vaccine, pneumococcal conjugate vaccine and varicella vaccine. Sinovac primarily sells its vaccines in China, while also exploring growth opportunities in international markets. The Company has exported select vaccines to Mexico, Mongolia, Nepal, Tajikistan, Bangladesh, Chile and the Philippines, and was recently granted a license to commercialize its influenza vaccine in Guatemala. For more information, please visit the Company's website at www.sinovac.com.

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward looking statements. Factors that might cause such a difference include our inability to compete successfully in the competitive and rapidly changing marketplace in which we operate, failure to retain key employees, cancellation or delay of projects and adverse general economic conditions in the United States and internationally. These risks and other factors include those listed under "Risk Factors" and elsewhere in our Annual Report on Form 20-F as filed with the Securities and Exchange Commission. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The Company assumes no obligation to update the forward-looking information contained in this release.

Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, Sinovac uses the following non-GAAP financial measures: non-GAAP EBITDA, non-GAAP net income from continuing operations and non-GAAP diluted EPS from continuing operations. For more information on these non-GAAP financial measures, please refer to the table captioned "Reconciliations of non-GAAP Measures to the Nearest Comparable GAAP Measures" in this results announcement.

Sinovac believes that non-GAAP EBITDA, non-GAAP net income from continuing operations and non-GAAP diluted EPS from continuing operations help identify underlying trends in its business that could otherwise be distorted by the effect of certain income or expenses that Sinovac includes in income from operations from continuing operations, net income from continuing operations and diluted EPS from continuing operations. Sinovac believes that non-GAAP EBITDA, non-GAAP net income from continuing operations and non-GAAP diluted EPS from continuing operations provide useful information about its core operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. Non-GAAP EBITDA, non-GAAP net income from continuing operations and non-GAAP diluted EPS from continuing operations should not be considered in isolation or construed as an alternative to income from operations from continuing operations, net income from continuing operations, diluted EPS from continuing operations, or any other measure of performance or as an indicator of Sinovac's operating performance. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data.

Non-GAAP EBITDA represents income (loss) from continuing operations, excludes interest and financing expenses, interest income, net other income (expenses) and income tax benefit (expenses), and certain non-cash expenses, consisting of stock-based compensation expenses, amortization and depreciation that Sinovac does not believe are reflective of the core operating performance during the periods presented.

Non-GAAP net income from continuing operations represents net income from continuing operations before stock-based compensation expenses, and foreign exchange gain or loss.

Non-GAAP diluted EPS from continuing operations represents non-GAAP net income attributable to ordinary shareholders from continuing operations divided by the weighted average number of shares outstanding during the periods on a diluted basis, including accounting for the effect of the assumed conversion of options.

Contact

Sinovac Biotech Ltd.
Helen Yang
Tel: +86-10-8279-9871
Fax: +86-10-6296-6910
Email: ir@sinovac.com

ICR Inc.
Bill Zima
U.S: 1-646-308-1707
Email: william.zima@icrinc.com 

SINOVAC BIOTECH LTD.

Consolidated Balance sheets

As of September 30, 2016 and December 31, 2015

(Expressed in thousands of U.S. Dollars, except for numbers of shares and per share data)






Current assets 


September 30, 2016
(Unaudited)


December 31, 2015






Cash and cash equivalents

$

54,316

$

63,834

Restricted cash


311


1,626

Accounts receivable - net


47,540


39,021

Inventories


19,568


18,685

Prepaid expenses and deposits 


1,136


958

Deferred tax assets


3,070


2,603

Current assets held for sale


-


1,797

Total current assets


125,941


128,524






Property, plant and equipment


67,015


63,940

Prepaid land lease payments


9,116


9,574

Long-term inventories


83


-

Long-term prepaid expenses


24


25

Prepayments for acquisition of equipment


1,111


328

Deferred tax assets


428


593

Total assets


203,718


202,984






Current liabilities





Short-term bank loans and current portion of long-
term bank loans and other debt


29,445


21,775

Loan from a non-controlling shareholder


2,399


2,470

Accounts payable and accrued liabilities 


26,029


22,524

Income tax payable


776


1,643

Deferred revenue


141


8,144

Deferred government grants


7,188


1,202

Current liabilities held for sale


-


243

Total current liabilities


65,978


58,001






Deferred government grants


3,366


4,730

Long-term bank loans 


5,950


756

Deferred revenue


93


-

Other non-current liabilities


734


756

Total long-term liabilities


10,143


6,242






Total liabilities


76,121


64,243






Commitments and contingencies 





Equity





Preferred stock


-


-

Common stock


57


57

Additional paid-in capital


111,097


109,944

Accumulated other comprehensive income


3,687


8,110

Statutory surplus reserves


13,450


13,450

Accumulated deficit


(13,326)


(8,281)

Total shareholders' equity


114,965


123,280






Non-controlling interests


12,632


15,461

Total equity


127,597


138,741

Total liabilities and equity

$

203,718

$

202,984

 

SINOVAC BIOTECH LTD.

Consolidated Statements of Comprehensive Income (loss)

For the three and nine months ended September 30, 2016 and 2015

(Unaudited)

(Expressed in thousands of U.S. Dollars, except for numbers of shares and per share data)












 Three months ended
September 30 


 Nine months ended
September 30 



2016


2015


2016


2015

 Sales 

$

28,735

$

16,764

$

41,066

$

44,462

 Cost of sales 


5,705


5,549


14,068


11,140

 Gross profit  


23,030


11,215


26,998


33,322










 Selling, general and administrative expenses 


12,280


9,959


26,744


25,779

 Provision for doubtful accounts 


489


413


1,054


496

 Research and development expenses 


4,218


2,215


9,069


6,625

 Loss (gain) on disposal of property, plant and equipment 


308


(11)


429


(26)

 Government grants recognized in income


(329)


(58)


(813)


(501)

 Total operating expenses 


16,966


12,518


36,483


32,373

 Operating income (loss) 


6,064


(1,303)


(9,485)


949










 Interest and financing expenses  


(352)


(493)


(1,136)


(1,502)

 Interest income


139


233


592


948

 Other income (expense)


(22)


33


214


114

 Income (loss) from continuing operations before
income taxes 


5,829


(1,530)


(9,815)


509

 Income tax benefit (expense) 


(1,547)


(267)


(55)


(1,258)

 Income (loss) from continuing operations 


4,282


(1,797)


(9,870)


(749)

 Income (loss) from discontinued operations, net of tax
of nil 


-


(183)


2,338


(619)

 Net Income (loss) 


4,282


(1,980)


(7,532)


(1,368)

 Less: Loss (income) attributable to the non-controlling interests

(1,077)


382


2,487


(210)

 Net Income (loss) attributable to shareholders of
Sinovac 


3,205


(1,598)


(5,045)


(1,578)










 Income (loss) from continuing operations 


4,282


(1,797)


(9,870)


(749)

 Other comprehensive income (loss) from continuing
operations, net of tax of nil 









Foreign currency translation adjustments


(464)


(2,739)


(2,907)


(2,674)

 Comprehensive income (loss) from continuing
operations 


3,818


(4,536)


(12,777)


(3,423)










 Income (loss) from discontinued operations 


-


(183)


2,338


(619)

 Other comprehensive income (loss) from
discontinued operations, net of tax of nil 









Foreign currency translation adjustments


-


(82)


(1,857)


(92)

 Comprehensive income (loss) from discontinued
operations 


-


(265)


481


(711)










 Comprehensive income (loss) 


3,818


(4,801)


(12,296)


(4,134)

  Less: comprehensive loss (income) attributable to non-
controlling interests  


(1,008)


700


2,828


96

 Comprehensive income (loss) attributable to
shareholders of Sinovac 

$

2,810

$

(4,101)

$

(9,468)

$

(4,038)










 Earnings (loss) per share 









Basic net income (loss) per share:









Continuing operations


0.06


(0.03)


(0.13)


(0.02)

Discontinued operations


0.00


0.00


0.04


(0.01)

Basic net income (loss) per share


0.06


(0.03)


(0.09)


(0.03)










Diluted net income (loss) per share:









Continuing operations


0.06


(0.03)


(0.13)


(0.02)

Discontinued operations


0.00


0.00


0.04


(0.01)

Diluted net income (loss) per share


0.06


(0.03)


(0.09)


(0.03)



















 Weighted average number of shares of 









   Basic 


56,968,033


56,424,587


56,937,573


56,126,013

  Diluted 


57,016,036


56,424,587


56,937,573


56,126,013










 

SINOVAC BIOTECH LTD.

Consolidated Statements of Cash Flows

For the three and nine months ended September 30, 2016 and 2015

(Unaudited)

(Expressed in thousands of U.S. Dollars)


Three months ended

Nine months ended



September 30


September 30



2016


2015


2016


2015

Cash flows  provided by (used in) operating activities









Net income (loss)

$

4,282

$

(1,980)

$

(7,532)

$

(1,368)

Less: Income (loss) from discontinued operations-net of tax


-


(183)


2,338


(619)

Income (loss) from continuing operations


4,282


(1,797)


(9,870)


(749)

  Adjustments to reconcile net income to net cash provided by (used
in) operating activities:









 - Deferred income taxes


(466)


(465)


(398)


234

 - Stock-based compensation


315


316


947


637

 - Inventory provision


450


(42)


3,201


499

 - Provision for doubtful accounts


489


413


1,054


496

 - Loss (gain) on disposal and impairment of property, plant and equipment

308


(11)


429


(26)

 - Government grants recognized in income


(329)


(58)


(813)


(501)

 - Research and development expenditures qualified for government grant


(350)


-


(350)


-

 - Depreciation of property, plant and equipment and amortization of licenses

1,223


1,643


4,097


4,953

 - Amortization of prepaid land lease payments


61


65


187


197

 - Accretion expenses


-


31


-


90

Changes in:









 - Accounts receivable


(18,806)


(3,826)


(10,505)


(7,439)

 - Inventories


1,485


1,842


(4,828)


(3,252)

 - Income tax payable 


2,009


(415)


(831)


(797)

 - Prepaid expenses and deposits


(358)


112


(242)


610

 - Deferred revenue 


(236)


(12)


(7,804)


(1,116)

 - Accounts payable and accrued liabilities


2,655


(897)


2,958


(4,037)

 - Deferred government grants


6,080


389


6,111


398

 - Restricted cash


1,286


-


1,286


-

 - Other non-current liabilities


-


6


-


6

Net cash provided by (used in) operating activities from
continuing operations


98


(2,706)


(15,371)


(9,797)

Net cash used in operating activities from discontinued
operations


-


(143)


(95)


(823)

Net cash provided by (used in) operating activities 


98


(2,849)


(15,466)


(10,620)










Cash flows provided by (used in) financing activities









 - Proceeds from bank loans


12,329


2,433


34,983


14,389

 - Repayments of bank loans


(3,531)


(8,673)


(21,282)


(37,214)

 - Proceeds from issuance of common stock,


54


51


182


551

   net of share issuance costs









 - Proceeds from shares subscribed


(12)


(9)


24


-

Net cash provided by (used in) financing activities


8,840


(6,198)


13,907


(22,274)










Cash flows used in investing activities









 - Acquisition of property, plant and equipment


(3,611)


(528)


(8,222)


(3,373)

 - Proceeds from disposal of subsidiary


-


-


875


-

 Net cash used in investing activities from continuing operations 


(3,611)


(528)


(7,347)


(3,373)

Net cash used in investing activities from discontinued operations

-


-


(9)


-

Net cash used in investing activities


(3,611)


(528)


(7,356)


(3,373)










Effect of exchange rate changes on cash and cash equivalents,
including cash classified within current assets held for sale


(229)


(821)


(746)


(891)










Increase (decrease) in cash and cash equivalents, including cash
classified within current assets held for sale


5,098


(10,396)


(9,661)


(37,158)

Less: Net decrease in cash classified within current assets for sale


-


73


(143)


(67)

Increase (decrease) in cash and cash equivalents


5,098


(10,469)


(9,518)


(37,091)










Cash and cash equivalents, beginning of period


49,218


64,671


63,834


91,293










Cash and cash equivalents, end of period

$

54,316

$

54,202

$

54,316

$

54,202










 

SINOVAC BIOTECH LTD.

Reconciliations of Non-GAAP measures to the nearest comparable GAAP measures

For the three and nine months ended September 30, 2016 and 2015

(Unaudited)

(Expressed in thousands of U.S. Dollars, except for numbers of shares and per share data)












 Three months ended
September 30 


 Nine months ended
September 30 



2016


2015


2016


2015

 Income (loss) from continuing operations 


4,282


(1,797)


(9,870)


(749)

 Adjustments: 









   Stock-based compensation 


315


316


947


637

   Depreciation and amortization 


1,284


1,708


4,284


5,150

   Interest and financing expenses, net of interest income 


213


260


544


554

   Net other (income) expense 


22


(33)


(214)


(114)

   Income tax (benefit) expense 


1,547


267


55


1,258

 Non-GAAP EBITDA 


7,663


721


(4,254)


6,736










 Income (loss) from continuing operations 


4,282


(1,797)


(9,870)


(749)

   Add: Foreign exchange loss (gain) 


38


302


441


280

   Add: Stock-based compensation 


315


316


947


637

 Non-GAAP net income (loss) from continuing
operations 


4,635


(1,179)


(8,482)


168










 Net Income (loss) from continuing operations
attributable to shareholders of Sinovac 


3,205


(1,415)


(7,383)


(959)

 Add: Non-GAAP adjustments to net income from
continuing operations 


353


618


1,388


917

 Non-GAAP net income attributable to
shareholders of Sinovac from continuing
operations for computing non-GAAP diluted
earnings (loss) per share  


3,558


(797)


(5,995)


(42)










 Weighted average number of shares on a diluted
basis 


57,016,036


56,424,587


56,937,573


56,126,013

 Diluted earnings (loss) per share from continuing
operations 


0.06


(0.03)


(0.13)


(0.02)

 Add: Non-GAAP adjustments to net income per share
from continuing operations 


0.00


0.02


0.02


0.02

 Non-GAAP Diluted EPS from continuing
operations 


0.06


(0.01)


(0.11)


0.00










 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sinovac-reports-unaudited-third-quarter-2016-financial-results-300368800.html

SOURCE Sinovac Biotech Co., Ltd.