Diplomat Pharmacy, Inc.

CIK:0001610092|SEC Filings

Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Condensed Consolidated Statements of Comprehensive (Loss) Income
Net sales	$ 1,301,197	$ 1,373,334	$ 3,845,629	$ 4,131,896
Cost of sales	(1,237,812)	(1,279,976)	(3,630,297)	(3,849,743)
Gross profit	63,385	93,358	215,332	282,153
Selling, general and administrative expenses	(74,993)	(83,419)	(238,677)	(255,705)
Goodwill impairments	(122,076)		(244,967)
Impairments of definite-lived intangible assets	(34,173)		(52,152)
(Loss) income from operations	(167,857)	9,939	(320,464)	26,448
Other (expense) income:
Interest expense	(11,659)	(10,179)	(32,044)	(30,998)
Impairment of non-consolidated entities		(286)		(329)
Other	149	574	431	1,385
Total other expense	(11,510)	(9,891)	(31,613)	(29,942)
(Loss) income before income taxes	(179,367)	48	(352,077)	(3,494)
Income tax benefit (expense)	2,087	121	1,034	(750)
Net (loss) income	(177,280)	169	(351,043)	(4,244)
Other comprehensive (loss) income, net of tax	(307)	918	(5,792)	(44)
Total comprehensive (loss) income	$ (177,587)	$ 1,087	$ (356,835)	$ (4,288)
(Loss) income per common share, basic and diluted	$ (2.35)	$ 0.00	$ (4.69)	$ (0.06)
Basic (in shares)	75,509,088	74,386,386	74,904,776	74,181,869
Diluted (in shares)	75,509,088	74,741,511	74,904,776	74,181,869

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net loss	$ (351,043)	$ (4,244)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	58,518	72,547
Goodwill impairments	244,967
Impairments of definite-lived intangible assets	52,152
Insurance proceeds received on settlement of claim	(14,100)
Payment on settlement of claim	14,100
Share-based compensation expense	12,632	15,771
Net provision for doubtful accounts	9,090	5,862
Write-off of debt issuance costs	731
Amortization of debt issuance costs	3,101	3,703
Write-down on assets held for sale to net realizable value	1,654
Changes in fair value of contingent consideration	49	2,419
Contingent consideration payments	(1,298)	(3,181)
Deferred income tax benefit	(1,322)	(2,034)
Impairment of non-consolidated entities		329
Other	(7)	(43)
Changes in operating assets and liabilities, net of business acquisition
Accounts receivable	(13,871)	(31,090)
Inventories	29,668	36,717
Accounts payable	57,759	(73,227)
Rebates payable	195	1,209
Other assets and liabilities	5,070	8,469
Net cash provided by operating activities	108,045	33,207
Cash flows from investing activities:
Expenditures for property and equipment	(3,961)	(7,880)
Expenditures for capitalized software for internal use	(14,050)	(8,736)
Payments to acquire businesses, net of cash acquired	(7,048)	(1,139)
Other	22	46
Net cash used in investing activities	(25,037)	(17,709)
Cash flows from financing activities:
Net payments on revolving line of credit	(71,300)	(10,000)
Payments on long term debt	(8,625)	(82,625)
Payments of debt issuance costs	(2,471)	(821)
Proceeds from issuance of stock upon stock option exercises	600	3,999
Contingent consideration payments	(2,277)	(2,088)
Net cash used in financing activities	(84,073)	(91,535)
Net decrease in cash and equivalents	(1,065)	(76,037)
Cash and equivalents at beginning of period	9,485	84,251
Cash and equivalents at end of period	8,420	8,214
Supplemental disclosures of cash flow information:
Cash paid for interest	28,212	27,707
Cash paid for income taxes	2,354	$ 2,142
Noncash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 2,101

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and equivalents	$ 8,420	$ 9,485
Receivables, net	338,321	326,602
Inventories	181,401	210,573
Prepaid expenses and other current assets	14,035	9,596
Total current assets	542,177	556,256
Property and equipment	54,462	55,929
Accumulated depreciation	(26,258)	(21,404)
Property and equipment, net	28,204	34,525
Capitalized software for internal use, net	28,899	30,506
Operating lease right-of-use assets	26,863
Goodwill	371,569	609,592
Definite-lived intangible assets, net	155,798	240,810
Assets held for sale	3,642
Other noncurrent assets	5,451	4,670
Total assets	1,162,603	1,476,359
Current liabilities:
Accounts payable	368,410	308,084
Rebates payable to PBM customers	23,459	23,264
Borrowings on revolving line of credit	105,000	176,300
Current portion of long-term debt	443,324	11,500
Current portion of operating lease liabilities	4,566
Accrued expenses:
Compensation and benefits	13,481	13,348
Contingent consideration	5,523	5,075
Other	27,779	21,014
Total current liabilities	991,542	558,585
Long-term debt, less current portion		438,369
Noncurrent operating lease liabilities	23,538
Deferred income taxes	1,459	2,781
Contingent consideration	4,948	1,820
Derivative liability	10,084	4,292
Deferred gain		5,175
Other		253
Total liabilities	1,031,571	1,011,275
Shareholders' equity:
Preferred stock (10,000,000 shares authorized; none issued and outstanding)
Common stock (no par value; 590,000,000 shares authorized; 75,973,963 and 74,474,677 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively)	641,557	629,411
Additional paid-in capital	55,529	50,544
Accumulated deficit	(555,970)	(210,579)
Accumulated other comprehensive loss	(10,084)	(4,292)
Total shareholders' equity	131,032	465,084
Total liabilities and shareholders' equity	$ 1,162,603	$ 1,476,359