Summary
Eli Lilly & Company (LLY) filed an 8-K on January 4, 2013, to provide updates on its financial outlook. The company issued a press release and held a conference call on January 3, 2013, to discuss its financial guidance for the full year 2012 and provide projections for 2013. A key aspect of this filing is Lilly's use of non-GAAP financial measures to present earnings per share (EPS), which exclude certain significant items to offer a clearer view of ongoing operations.
Key Highlights
- 1Lilly provided updated financial guidance for 2012 and introduced its financial expectations for 2013.
- 2The company utilizes non-GAAP EPS to report results and guidance, excluding specific items that impact comparability.
- 3For 2012, non-GAAP EPS excluded a $.43 per share income from the early payment of Amylin's exenatide revenue sharing obligation.
- 4Also excluded from 2012 non-GAAP EPS were asset impairment and restructuring charges of $.05 per share recognized in the first nine months.
- 5For 2013, non-GAAP EPS projections exclude an estimated $.28 per share related to exenatide income contingent upon the transfer of exenatide commercial rights outside the U.S. to Amylin.
- 6Lilly emphasizes that these non-GAAP measures are intended to help investors assess ongoing operations and facilitate meaningful period-over-period comparisons.
- 7The information furnished in this Item 2.02 and the attached press release are considered 'furnished' and not 'filed' for regulatory purposes.
Frequently Asked Questions
The primary purpose of this 8-K filing is to communicate Eli Lilly's updated financial guidance for 2012 and its financial expectations for 2013 to investors, along with explanations of the non-GAAP measures used.
Lilly uses non-GAAP EPS to provide investors with a view of its ongoing operations. These measures exclude items that are typically highly variable, difficult to predict, and can significantly impact reported earnings, such as one-time income or restructuring charges, to allow for more meaningful comparisons over time.
For 2012, adjusted EPS excluded a $.43 per share income from an early payment related to Amylin's exenatide obligation and $.05 per share for asset impairment and restructuring charges. For 2013, projected adjusted EPS excludes an estimated $.28 per share related to exenatide income contingent upon the transfer of commercial rights.
No, investors should consider these non-GAAP measures in addition to, not as a substitute for or superior to, the company's financial performance measures prepared in accordance with GAAP. Lilly believes they offer useful insights but should be viewed alongside GAAP figures.