Summary
Eli Lilly and Company (LLY) filed an 8-K on July 22, 2009, to report its financial results for the second quarter and first six months ended June 30, 2009. The filing primarily serves to attach a press release detailing these results, which includes both GAAP and pro forma non-GAAP financial information. A key aspect of this report is the company's use of non-GAAP measures to provide a clearer view of ongoing operational performance by excluding significant, one-time items. Investors should note that Lilly is providing adjusted earnings per share (EPS) guidance for 2009, which is intended to offer a more comparable year-over-year view by excluding various charges and benefits from prior periods. These adjustments include items like restructuring charges, asset impairments, acquisition-related costs (particularly for ImClone Systems), legal settlements (Zyprexa), and R&D-related charges. The company emphasizes that these non-GAAP measures are useful for evaluating operational trends and making period-over-period comparisons, but should be considered alongside, not as a replacement for, GAAP figures.
Key Highlights
- 1LLY reported its Q2 and first six months 2009 financial results, attaching a detailed press release to its 8-K filing.
- 2The company is utilizing pro forma non-GAAP financial measures to present results and guidance, excluding significant one-time items.
- 3Key excluded items in the pro forma adjustments include charges related to Zyprexa settlements, restructuring, asset impairments, and in-process R&D.
- 4The acquisition of ImClone Systems is treated as if it occurred on January 1, 2008, for comparative purposes in the pro forma presentation.
- 5Foreign exchange rate impacts on Q2 2009 versus Q2 2008 results are quantified.
- 6Lilly provided 2009 earnings per share (EPS) expectations on both GAAP and pro forma non-GAAP bases.
- 7The company believes non-GAAP measures offer better insights into ongoing operations and facilitate meaningful period-over-period comparisons for investors.