8-KEarnings & ResultsExhibits & Filings

ELI LILLY & Co 8-K Report, Financial Results (Oct 20, 2005)

Filed October 20, 2005For Securities:LLY

Summary

Eli Lilly & Company (LLY) filed an 8-K on October 20, 2005, to report its financial results for the third quarter and the first nine months of 2005. The filing primarily serves to attach a press release detailing these results and the company's financial outlook for the fourth quarter and full year 2005. A key aspect of the report is the company's use of non-GAAP financial measures, such as adjusted net income and adjusted earnings per share (EPS), to provide a clearer view of ongoing operational performance and facilitate year-over-year comparisons. These adjusted measures exclude significant one-time items like charges for acquired in-process R&D, asset impairments, product liability, and restructuring. The company also provided pro-forma adjustments to 2004 results to reflect the adoption of new accounting standards for share-based payments starting in 2005, enabling more meaningful comparisons. Investors are advised to consider these non-GAAP measures alongside, not as a substitute for, GAAP figures to gain a comprehensive understanding of Lilly's financial condition and operational trends.

Key Highlights

  • 1LLY reported third quarter and nine-month 2005 financial results via an 8-K filing on October 20, 2005.
  • 2The company issued forward-looking financial expectations for Q4 and full-year 2005.
  • 3Lilly is utilizing non-GAAP financial measures (adjusted net income, adjusted EPS) to present operational performance.
  • 4Adjusted results exclude significant items such as charges for acquired R&D, asset impairments, product liability, and restructuring.
  • 5Pro-forma adjustments were made to 2004 EPS to align with the adoption of new share-based payment accounting standards in 2005.
  • 6The purpose of these adjustments is to provide more meaningful period-over-period comparisons and highlight ongoing operational trends.
  • 7The press release detailing these results is included as Exhibit 99 to the 8-K filing.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially report Eli Lilly & Company's financial results for the third quarter and the first nine months of 2005. It also includes the company's financial outlook for the remainder of the year and attaches the press release that contains these details.

Eli Lilly is using non-GAAP financial measures, such as adjusted net income and adjusted earnings per share, to provide investors with a clearer view of its ongoing operational performance. These adjusted measures exclude significant, often unpredictable, items that can distort reported earnings, thereby allowing for more meaningful year-over-year comparisons and trend analysis.

The adjusted financial results exclude items such as charges for acquired in-process research and development, asset impairment charges, product liability charges, restructuring costs, and tax expenses related to the repatriation of overseas earnings. For 2004 comparisons, adjustments were also made to reflect the new accounting standard for share-based payments adopted in 2005.

Investors should consider these non-GAAP measures in addition to, not as a substitute for, the financial performance measures prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). They are intended to supplement the GAAP figures by helping investors evaluate ongoing operations and identify trends that might otherwise be masked.