8-KEarnings & ResultsExhibits & Filings

ELI LILLY & Co 8-K Report, Financial Results (Jul 21, 2005)

Filed July 21, 2005For Securities:LLY

Summary

Eli Lilly & Co. (LLY) filed an 8-K on July 21, 2005, to report its financial results for the quarter and six-month period ended June 30, 2005. The filing primarily focuses on providing results of operations and financial condition, including an accompanying press release with detailed financial statements and forward-looking guidance. A significant aspect of this report is Lilly's use of non-GAAP financial measures to offer a clearer year-over-year comparison. These adjusted measures exclude significant items such as charges for acquired in-process R&D, asset impairments, product liability matters, and the impact of adopting new accounting standards for share-based payments. The company believes these non-GAAP metrics provide valuable insights into ongoing operations and operating trends, aiding investors in evaluating performance and making more meaningful period-over-period comparisons. The report also includes financial expectations for the third quarter and full year 2005.

Key Highlights

  • 1Eli Lilly & Co. announced its financial results for the second quarter and six months ended June 30, 2005.
  • 2The company is utilizing non-GAAP financial measures (adjusted net income, adjusted diluted EPS) to provide a clearer year-over-year comparison.
  • 3Key exclusions from non-GAAP measures include charges for acquired in-process R&D, asset impairments, and product liability matters.
  • 4A significant adjustment involves accounting for share-based payments under the new FASB standard adopted January 1, 2005, with pro-forma adjustments to 2004 for comparability.
  • 5The filing includes financial expectations for the third quarter and the full fiscal year 2005.
  • 6The press release providing these results and related financial statements is attached as Exhibit 99.
  • 7The information provided is considered 'furnished' and not 'filed' for the purposes of Section 18 of the Securities Exchange Act of 1934.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce Eli Lilly & Co.'s financial results for the second quarter and first six months of 2005, as well as to provide forward-looking financial guidance for the third quarter and full year 2005. It includes a press release with detailed financial statements.

Eli Lilly & Co. is using non-GAAP financial measures, such as adjusted net income and earnings per share, to provide investors with a clearer view of the company's ongoing operational performance. These measures exclude certain unusual, variable, or non-recurring items that can significantly impact GAAP reported results, allowing for more meaningful period-over-period comparisons and trend identification.

The non-GAAP calculations exclude several items. These include charges related to acquired in-process research and development (like from the Applied Molecular Evolution acquisition), asset impairment charges for manufacturing and R&D, a charge for product liability matters in Q2 2005, and charges from Q4 2004 such as asset impairments, restructuring costs, tax expenses related to overseas earnings repatriation, and in-process R&D from an in-license deal. Additionally, adjustments are made to reflect the adoption of the new accounting standard for share-based payments for comparative purposes.

Yes, the filing indicates that the accompanying press release provides financial expectations for both the third quarter and the full year 2005. Earnings-per-share guidance is provided on both a GAAP basis and on an adjusted basis for growth comparisons.