8-KEarnings & ResultsLeadership ChangesExhibits & Filings

ELI LILLY & Co 8-K Report, Financial Results (Apr 18, 2005)

Filed April 18, 2005For Securities:LLY

Summary

Eli Lilly & Company (LLY) filed a Form 8-K on April 18, 2005, to report its financial results for the first quarter ended March 31, 2005. The filing primarily details the company's operational and financial performance, including the issuance of a press release and the holding of a teleconference to discuss these results. A key aspect of the report is the company's use and explanation of non-GAAP financial measures, such as adjusted net income and diluted earnings per share, to provide a clearer year-over-year comparison. These non-GAAP measures exclude significant one-time items from both 2004 and 2005 to offer investors a better view of ongoing operational trends. Notable exclusions include charges for acquired in-process research and development, asset impairments, restructuring costs, and the impact of adopting new accounting standards for share-based payments. The company emphasizes that these adjusted figures are intended to supplement, not replace, GAAP-based reporting and are used internally for performance evaluation. Additionally, the report announces the retirement of a director in compliance with the company's policy.

Key Highlights

  • 1The Form 8-K reports Eli Lilly's financial results for the first quarter of 2005.
  • 2The company utilizes and explains non-GAAP financial measures (adjusted net income, EPS) for improved year-over-year comparisons.
  • 3Key adjustments to 2004 results include charges for acquired in-process R&D and asset impairments.
  • 4The adoption of new accounting standards for share-based payments (effective January 1, 2005) is highlighted, with pro-forma adjustments made to 2004 figures for comparability.
  • 5The company provides forward-looking financial expectations for Q2 and full-year 2005, including EPS growth on an adjusted basis.
  • 6Steven C. Beering, M.D., is retiring from the Board of Directors in accordance with the company's retirement policy.
  • 7A press release and related financial statements are attached as Exhibit 99.

Frequently Asked Questions

This 8-K primarily serves to announce Eli Lilly's financial results for the first quarter ended March 31, 2005, via a press release and teleconference. The filing itself doesn't contain detailed financial statements but refers to Exhibit 99, which includes the press release with income statement and balance sheet information.

Eli Lilly uses non-GAAP measures, such as adjusted net income and EPS, to provide investors with a clearer understanding of the company's ongoing operational performance. These measures exclude volatile and unpredictable items like charges for acquired in-process R&D, asset impairments, and restructuring costs, which can mask underlying business trends.

Adjustments are made to exclude charges from the prior year (2004), including those related to the acquisition of Applied Molecular Evolution, asset impairments, restructuring charges, tax expenses for repatriated overseas earnings, and an in-process R&D charge from Merck KGaA. Additionally, 2004 figures are adjusted pro-forma to reflect the adoption of new share-based payment accounting standards in 2005.

Steven C. Beering, M.D., is retiring from the company's Board of Directors. This retirement is consistent with Eli Lilly's established policy for non-employee directors, which mandates retirement at the annual shareholder meeting following their 72nd birthday.