8-KOther Events

ELI LILLY & Co 8-K Report (Jul 22, 2004)

Filed July 22, 2004For Securities:LLY

Summary

Eli Lilly & Company (LLY) filed an 8-K on July 22, 2004, to report its financial results for the second quarter and the first six months of 2004. The report highlights the company's use of non-GAAP financial measures, such as adjusted net income and diluted earnings per share, to provide investors with a clearer view of ongoing operational performance. These adjusted figures exclude certain significant and variable items, including asset impairment charges, R&D acquisition costs, and restructuring charges from prior periods. Management believes these non-GAAP measures are crucial for understanding underlying business trends and making meaningful period-over-period comparisons. The adjusted results aim to remove the impact of events that are difficult to predict and can substantially affect reported financial performance. Investors are advised to consider these non-GAAP measures alongside, but not as a substitute for, standard GAAP financial statements when evaluating the company's operational health and future prospects.

Key Highlights

  • 1Announcement of second quarter and six-month 2004 financial results.
  • 2Company utilizes non-GAAP financial measures (adjusted net income, adjusted EPS) for reporting.
  • 3Non-GAAP measures exclude asset impairment charges from Q2 2004.
  • 4Non-GAAP measures exclude acquired in-process R&D charges from Q1 2004 (Applied Molecular Evolution acquisition).
  • 5Non-GAAP measures exclude asset impairments, restructuring, and special charges from Q1 2003.
  • 6Management asserts non-GAAP measures aid in evaluating ongoing operations and making period-over-period comparisons.
  • 7Press release and related financial statements attached as Exhibit 99.

Frequently Asked Questions

This 8-K filing announces Eli Lilly & Company's financial results for the second quarter and the first six months of 2004. It also details the company's use of non-GAAP financial measures to present its performance.

The non-GAAP measures exclude asset impairment charges from the second quarter of 2004, a charge for acquired in-process research and development related to the Applied Molecular Evolution acquisition in the first quarter of 2004, and asset impairments, restructuring, and special charges incurred in the first quarter of 2003.

Eli Lilly uses non-GAAP measures because management believes they provide useful information to investors by helping them evaluate the company's ongoing operations, make meaningful period-over-period comparisons, and identify operating trends that might otherwise be masked or distorted by excluded, highly variable, and difficult-to-predict items.

Investors are advised to consider these non-GAAP measures in addition to, but not as a substitute for or superior to, financial performance measures prepared in accordance with U.S. generally accepted accounting principles (GAAP). They are intended to supplement, not replace, the standard GAAP reporting.