8-KEarnings & ResultsExhibits & Filings

AMGEN INC 8-K Report, Financial Results (Apr 30, 2019)

Filed April 30, 2019For Securities:AMGN

Summary

Amgen Inc. (AMGN) filed an 8-K on April 30, 2019, to report its unaudited financial results for the first quarter ended March 31, 2019. The filing primarily furnished a press release detailing these results, including both GAAP and non-GAAP financial measures. Investors should note that Amgen utilizes non-GAAP metrics such as non-GAAP earnings per share, operating income, and net income to provide a clearer view of ongoing operational performance, excluding items like acquisition-related expenses, restructuring costs, and certain legal settlements. The company also highlighted Free Cash Flow (FCF) as a key liquidity measure, calculated by subtracting capital expenditures from operating cash flow. Amgen's management uses these non-GAAP measures to enhance the understanding of the company's financial performance and prospects, facilitating comparisons across periods. While these non-GAAP measures offer valuable insights into core operations, investors should always refer to the provided reconciliations in the press release to understand the differences between GAAP and non-GAAP figures.

Key Highlights

  • 1Amgen reported its unaudited financial results for the three months ended March 31, 2019.
  • 2The report furnished a press release containing both GAAP and non-GAAP financial measures.
  • 3Non-GAAP measures presented include non-GAAP EPS, operating income, operating margin, tax rate, net income, and operating expenses.
  • 4Key items excluded from non-GAAP calculations are acquisition-related expenses (e.g., amortization of acquired intangibles), restructuring costs, and certain legal settlement expenses.
  • 5Amgen also reported Free Cash Flow (FCF) as a measure of liquidity.
  • 6The company uses non-GAAP measures to offer a more comparable view of ongoing business operations.
  • 7The press release, furnished as Exhibit 99.1, contains reconciliations of non-GAAP to GAAP measures.

Frequently Asked Questions

Amgen is reporting its unaudited financial results for the first quarter ended March 31, 2019, and its financial position as of that date. This information is primarily detailed in a press release furnished with the 8-K filing.

Amgen presents non-GAAP financial measures to provide investors with useful supplementary information that facilitates additional analysis. The company believes these measures enhance the understanding of its financial performance and future prospects by allowing for better comparisons of ongoing business operations across current, past, and future periods, excluding items that may distort comparability.

Amgen typically excludes acquisition-related expenses (such as amortization of acquired intangible assets), net charges from restructuring initiatives, and certain legal settlement expenses. The company believes these items are either non-cash, inconsistent, or outside the ordinary course of business, and excluding them provides a more meaningful evaluation of current operating performance.

Free Cash Flow (FCF) is calculated by subtracting capital expenditures from operating cash flow, both determined in accordance with GAAP. Amgen presents FCF as a measure of liquidity, providing insight into the cash generated from its operations after accounting for necessary investments in its business, which can be used for debt repayment, dividends, or share repurchases.