ANGIOTECH PHARMACEUTICALS INC

CIK:0001096481|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	8 Months Ended	12 Months Ended	4 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2012	Apr. 30, 2011 Predecessor	Dec. 31, 2010 Predecessor
REVENUE
Product sales, net	$ 139,307	$ 221,326	$ 69,198	$ 211,495
Royalty revenue	13,670	18,449	10,941	34,461
License fees [note 11(b)]		4,050	127	286
Total Revenue	152,977	243,825	80,266	246,242
EXPENSES
Cost of products sold	90,348	102,706	32,219	106,304
License and royalty fees	264	618	68	5,889
Research and development	14,076	7,056	5,686	26,790
Selling, general and administration	60,424	70,985	24,846	89,238
Depreciation and amortization	23,973	34,503	14,329	33,745
Write-down of assets held for sale [note 17]		277	570	1,450
Write-down of property, plant and equipment [note 8]	4,502	877	215	4,779
Write-down of intangible assets [note 9]	10,850			2,814
Escrow settlement recovery [note 18]				(4,710)
Total Expenses	204,437	217,022	77,933	266,299
Operating income (loss)	(51,460)	26,803	2,333	(20,057)
Other income (expenses)
Foreign exchange gain (loss)	1,461	(751)	(646)	1,011
Other income (expense)	547	1,320	34	(862)
Debt restructuring costs				(9,277)
Interest expense	(11,945)	(20,390)	(10,327)	(40,258)
Write-downs and net gains (losses) on investments [note 6]	(2,035)	(561)		(1,297)
Debt extinguishment loss [note 14]		(4,437)
Loan settlement gain [note 19]				1,880
Gain on disposal of Laguna Hills manufacturing facility [note 20]				2,005
Total other expenses	(11,972)	(24,819)	(10,939)	(46,798)
Income (loss) before reorganization items, gain on extinguishment of debt and settlement of other other liabilities and income taxes	(63,432)	1,984	(8,606)	(66,855)
Reorganization items [note 3]			321,084
Gain on extinguishment of debt and settlement of other liabilities [note 3]			67,307
Income (loss) before taxes	(63,432)	1,984	379,785	(66,855)
Income tax (recovery) expense [note 12]	(2,986)	8,210	267	(44)
Net (loss) income	$ (60,446)	$ (6,226)	$ 379,518	$ (66,811)
Basic and diluted net (loss) income per common share (in dollars per share)	$ (4.82)	$ (0.49)	$ 4.46	$ (0.78)
Basic and diluted weighted average number of common shares outstanding (in thousands) (in shares)	12,528	12,791	85,185	85,168

CHANGE IN NON-CASH WORKING CAPITAL ITEMS RELATING TO OPERATING ACTIVITIES AND SUPPLEMENTAL CASH FLOW INFORMATION

12 Months Ended

Dec. 31, 2012

CHANGE IN NON-CASH WORKING CAPITAL ITEMS RELATING TO OPERATING ACTIVITIES AND SUPPLEMENTAL CASH FLOW INFORMATION

CHANGE IN NON-CASH WORKING CAPITAL ITEMS RELATING TO OPERATING ACTIVITIES AND SUPPLEMENTAL CASH FLOW INFORMATION

24. CHANGE IN NON-CASH WORKING CAPITAL ITEMS RELATING TO OPERATING ACTIVITIES AND SUPPLEMENTAL CASH FLOW INFORMATION

The change in non-cash working capital items relating to operations was as follows:

	Successor Company						Predecessor Company
	Year ended December 31,			Eight months ended December 31,			Four months ended April 30,			Year ended December 31,
	2012			2011			2011			2010

Accounts receivable	$	(127	)	$	5,778		$	(855	)	$	(5,638	)
Income tax receivable	(3,308		)	(148		)	(645		)	420
Inventories	(12,011		)	2,840			(2,603		)	768
Prepaid expenses and other assets	3,374			1,102			2,141			(223		)
Accounts payable and accrued liabilities	(4,176		)	606			(10,020		)	(3,260		)
Deferred Revenue	(3,603		)	3,953			—			—
Income taxes payable	1,640			538			(770		)	(8,603		)
Interest payable on long term debt	421			(829		)	2,663			9,758
	$	(17,790	)	$	13,840		$	(10,089	)	$	(6,778	)

Supplemental disclosure

	Successor Company			Predecessor Company
	Year ended December 31,	Eight months ended December 31,		Four months ended April 30,		Year ended December 31,
	2012	2011		2011		2010

Income taxes paid	11,324	$	2,847	$	2,334	$	13,904
Income tax refund	81	408		—		634
Interest paid	19,045	11,888		3,763		23,523
Deferred financing charges and costs accrued but not paid		—		1,160		2,090
Non-cash transaction - settlement of loan receivable in exchange for Haemacure net assets acquired	—	—		—		3,686
Non-cash transaction - settlement of Subordinated Notes and related interest obligations for common shares	—	—		202,948		—
Non-cash transaction - exchange of $225.0 million New Notes for $229.4 million of Senior Notes	229,413	—		—		—

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Current assets
Cash and cash equivalents [note 5]	$ 45,945	$ 22,173
Short-term investments [note 6]	424	3,259
Accounts receivable	28,786	28,238
Income tax receivable	4,769	1,462
Inventories [note 7]	46,414	34,304
Deferred income taxes, current portion [note 12]	5,885	3,995
Deferred financing costs, current portion [note 14(e)]	833
Prepaid expenses and other current assets	3,355	3,167
Total current assets	136,411	96,598
Assets held for sale [note 8, 16]	1,866	0
Property, plant and equipment [note 8]	31,437	39,189
Intangible assets [note 9 (a)]	311,443	343,066
Goodwill [note 9(b)]	124,051	123,228
Deferred income taxes, non-current portion [note 12]	1,005	2,165
Deferred financing costs, non-current portion [note 14(e)]	1,915
Other assets	274	3,860
Total assets	608,402	608,106
Current liabilities
Accounts payable and accrued liabilities [note 10]	26,789	30,537
Income taxes payable	3,663	2,023
Interest payable	1,872	1,450
Deferred revenue, current portion [note 11]	22,007	496
Debt, current portion [note 14]	60,024
Revolving credit facility [note 14]		40
Total current liabilities	114,355	34,546
Deferred revenue, non-current portion [note 11]	24,901	3,771
Deferred income taxes, non-current portion [note 12]	88,539	92,634
Other tax liabilities [note 13]	9,618	5,729
Debt, non-current portion [note 14]	229,413	325,000
Other liabilities	908	19
Total non-current liabilities	353,379	427,153
Shareholders' equity
Sucessor share capital Authorized:Unlimited number of common shares, without par value Common shares issued and outstanding: December 31, 2011 - 12,556,673; December 31, 2012 - 12,547,702	203,613	203,719
Additional paid-in capital	7,356	8,552
Accumulated deficit	(66,672)	(60,446)
Accumulated other comprehensive loss	(3,629)	(5,418)
Total shareholders' equity	140,668	146,407
Total liabilities and shareholders' equity	$ 608,402	$ 608,106