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QIAGEN N.V. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands)
| Note | As of December 31, | ||
|---|---|---|---|
| 2019 | 2018 | ||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | (3) | $ 623,647 | $ 1,159,079 |
| Restricted cash | (3) | 5,743 | — |
| Short-term investments | (7) | 129,586 | 234,606 |
| Accounts receivable, net of allowance for doubtful accounts of $12,115 and $9,270 in 2019 and 2018, respectively | (3, 24) | 385,117 | 351,612 |
| Income taxes receivable | 42,119 | 34,936 | |
| Inventories, net | (3) | 170,704 | 162,912 |
| Fair value of derivative instruments — current | (14) | 107,868 | 102,754 |
| Prepaid expenses and other current assets (of which $13,697 and $3,873 in 2019 and 2018 due from related parties, respectively) | (8) | 105,464 | 109,161 |
| Total current assets | 1,570,248 | 2,155,060 | |
| Long-term assets: | |||
| Property, plant and equipment, net of accumulated depreciation of $699,130 and $603,430 in 2019 and 2018, respectively | (9) | 455,243 | 511,659 |
| Goodwill | (11) | 2,140,503 | 2,108,536 |
| Intangible assets, net of accumulated amortization of $776,520 and $1,194,679 in 2019 and 2018, respectively | (11) | 632,434 | 475,043 |
| Deferred income tax assets | (17) | 56,542 | 42,896 |
| Fair value of derivative instruments — long-term | (14) | 192,266 | 295,363 |
| Other long-term assets (of which $16,830 and $24,300 in 2019 and 2018 due from related parties, respectively) | (10, 12, 24) | 188,380 | 159,775 |
| Total long-term assets | 3,665,368 | 3,593,272 | |
| Total assets | $ 5,235,616 | $ 5,748,332 | |
The accompanying notes are an integral part of these consolidated financial statements.
QIAGEN N.V. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except par value)
| Note | As of December 31, | ||
|---|---|---|---|
| 2019 | 2018 | ||
| Liabilities and equity | |||
| Current liabilities: | |||
| Current portion of long-term debt | (16) | $ 285,244 | $ 503,116 |
| Accounts payable | (24) | 84,767 | 69,415 |
| Fair value of derivative instruments — current | (14) | 103,175 | 106,594 |
| Accrued and other current liabilities (of which $15,404 and $5,488 due to related parties in 2019 and 2018, respectively) | (10, 13, 22) | 444,303 | 263,017 |
| Income taxes payable | 33,856 | 30,047 | |
| Total current liabilities | 951,345 | 972,189 | |
| Long-term liabilities: | |||
| Long-term debt, net of current portion | (16) | 1,421,108 | 1,671,090 |
| Deferred income tax liabilities | (16) | 23,442 | 63,411 |
| Fair value of derivative instruments — long-term | (14) | 196,929 | 317,393 |
| Other long-term liabilities | (12, 15) | 106,201 | 89,279 |
| Total long-term liabilities | 1,747,680 | 2,141,173 | |
| Commitments and contingencies | (20) | ||
| Equity: | |||
| Preference shares, 0.01 EUR par value, authorized—450,000 shares, no shares issued and outstanding | — | — | |
| Financing preference shares, 0.01 EUR par value, authorized—40,000 shares, no shares issued and outstanding | — | — | |
| Common Shares, 0.01 EUR par value, authorized—410,000 shares, issued — 230,829 shares in 2019 and 2018, respectively | 2,702 | 2,702 | |
| Additional paid-in capital | 1,777,017 | 1,742,191 | |
| Retained earnings | 1,178,457 | 1,379,624 | |
| Accumulated other comprehensive loss | (18) | (309,619) | (310,644) |
| Less treasury shares, at cost— 3,077 and 5,320 shares in 2019 and 2018, respectively | (18) | (111,966) | (178,903) |
| Total equity | 2,536,591 | 2,634,970 | |
| Total liabilities and equity | $ 5,235,616 | $ 5,748,332 | |
The accompanying notes are an integral part of these consolidated financial statements.
QIAGEN N.V. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF (LOSS) INCOME
(in thousands, except per share data)
| Note | Years ended December 31, | |||
|---|---|---|---|---|
| 2019 | 2018 | 2017 | ||
| Net sales | (3, 4, 24) | $ 1,526,424 | $ 1,501,848 | $ 1,417,536 |
| Cost of sales | ||||
| Cost of sales | 449,651 | 444,165 | 422,226 | |
| Acquisition-related intangible amortization | 71,511 | 56,723 | 72,749 | |
| Total cost of sales | 521,162 | 500,888 | 494,975 | |
| Gross profit | 1,005,262 | 1,000,960 | 922,561 | |
| Operating expenses: | ||||
| Research and development | (3) | 157,448 | 161,852 | 154,084 |
| Sales and marketing | 391,906 | 392,281 | 375,562 | |
| General and administrative | (3) | 112,262 | 104,568 | 102,080 |
| Acquisition-related intangible amortization | 29,973 | 39,032 | 39,398 | |
| Restructuring, acquisition, integration and other, net | (6) | 199,778 | 28,659 | 98,018 |
| Long-lived asset impairments | (6) | 140,031 | 7,987 | — |
| Total operating expenses | 1,031,398 | 734,379 | 769,142 | |
| (Loss) income from operations | (26,136) | 266,581 | 153,419 | |
| Other income (expense): | ||||
| Interest income | 22,113 | 20,851 | 10,645 | |
| Interest expense | (74,185) | (67,293) | (49,685 | |
| Other income (expense), net | (6) | 432 | 5,598 | (4) |
| Total other expense, net | (51,640) | (40,844) | (39,044) | |
| (Loss) income before income tax (benefit) expense | (77,776) | 225,737 | 114,375 | |
| Income tax (benefit) expense | (3, 17) | (36,321) | 35,357 | 73,981 |
| Net (loss) income | (41,455) | 190,380 | 40,394 | |
| Basic (loss) earnings per common share | (19) | $ (0.18) | $ 0.84 | $ 0.18 |
| Diluted (loss) earnings per common share | (19) | $ (0.18) | $ 0.82 | $ 0.17 |
| Weighted-average common shares outstanding | ||||
| Basic | (19) | 226,777 | 226,640 | 228,074 |
| Diluted | (19) | 226,777 | 233,456 | 233,009 |
The accompanying notes are an integral part of these consolidated financial statements.
QIAGEN N.V. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (in thousands)
| Note | Years ended December 31, | |||
|---|---|---|---|---|
| 2019 | 2018 | 2017 | ||
| Net (loss) income | $ (41,455) | $ 190,380 | $ 40,394 | |
| Other comprehensive income (loss) to be reclassified to profit or loss in subsequent periods: | ||||
| Gains (losses) on cash flow hedges, before tax | (14) | 17,052 | 25,207 | (50,067) |
| Reclassification adjustments on cash flow hedges, before tax | (14) | (3,888) | (9,774) | 26,136 |
| Cash flow hedges, before tax | 13,164 | 15,433 | (23,931) | |
| Losses on marketable securities, before tax | — | — | (854) | |
| Gains on pensions, before tax | (796) | 1,325 | 886 | |
| Foreign currency translation adjustments, before tax | (12,156) | (108,045) | 135,945 | |
| Other comprehensive income (loss), before tax | 212 | (91,287) | 112,046 | |
| Income tax relating to components of other comprehensive income (loss) | 813 | 460 | 1,034 | |
| Total other comprehensive income (loss), after tax | 1,025 | (90,827) | 113,080 | |
| Comprehensive (loss) income | $ (40,430) | $ 99,553 | $ 153,474 | |
The accompanying notes are an integral part of these consolidated financial statements.
QIAGEN N.V. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
| (in thousands) | Note | Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Total Equity | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shares | Amount | Shares | Amount | ||||||||
| Balance at December 31, 2016 | 239,707 | $ 2,812 | $ 1,794,665 | $ 1,263,464 | $ (333,839) | (5,147) | $ (120,006) | $ 2,607,096 | |||
| Capital repayment | (18) | (8,878) | (110) | (244,319) | — | — | 191 | — | (244,429) | ||
| Issuance of warrants | — | — | 45,307 | — | — | — | — | 45,307 | |||
| Net income | — | — | — | 40,394 | — | — | — | 40,394 | |||
| Unrealized gain, net on pension | — | — | — | — | 620 | — | — | 620 | |||
| Unrealized loss, net on hedging contracts | (14) | — | — | — | — | (42,489) | — | — | (42,489) | ||
| Realized loss, net on hedging contracts | (14) | — | — | — | — | 19,602 | — | — | 19,602 | ||
| Unrealized loss, net on marketable securities | (7) | — | — | — | — | (786) | — | — | (786) | ||
| Translation adjustment, net | — | — | — | — | 136,133 | — | — | 136,133 | |||
| Purchase of treasury shares | (18) | — | — | — | — | — | (1,909) | (60,970) | (60,970) | ||
| Issuance of common shares in connection with stock plan | (22) | — | — | — | (55,913) | — | 2,593 | 61,989 | 6,076 | ||
| Share-based compensation | (22) | — | — | 34,442 | — | — | — | — | 34,442 | ||
| Balance at December 31, 2017 | 230,829 | $ 2,702 | $ 1,630,095 | $ 1,247,945 | $ (220,759) | (4,272) | $ (118,987) | $ 2,540,996 | |||
| ASU 2016-01 impact of change in accounting policy | — | — | — | (942) | 942 | — | — | — | |||
| ASU 2016-16 impact of change in accounting policy | — | — | — | (16,096) | — | — | — | (16,096) | |||
| ASC 606 impact of change in accounting policy | — | — | — | (1,306) | — | — | — | (1,306) | |||
| Issuance of warrants | (18) | — | — | 71,983 | — | — | — | — | 71,983 | ||
| Net income | — | — | — | 190,380 | — | — | — | 190,380 | |||
| Unrealized gain, net on pension | — | — | — | — | 754 | — | — | 754 | |||
| Unrealized gain, net on hedging contracts | (14) | — | — | — | — | 22,365 | — | — | 22,365 | ||
| Realized gain, net on hedging contracts | (14) | — | — | — | — | (7,331) | — | — | (7,331) | ||
| Translation adjustment, net | — | — | — | — | (106,615) | — | — | (106,615) | |||
| Purchase of treasury shares | (18) | — | — | — | — | — | (2,871) | (104,685) | (104,685) | ||
| Issuance of common shares in connection with stock plan | (22) | — | — | — | (40,357) | — | 1,823 | 44,769 | 4,412 | ||
| Share-based compensation | (22) | — | — | 40,113 | — | — | — | — | 40,113 | ||
| Balance at December 31, 2018 | 230,829 | $ 2,702 | $ 1,742,191 | $ 1,379,624 | $ (310,644) | (5,320) | $ (178,903) | $ 2,634,970 | |||
| ASC 842 impact of change in accounting policy | — | — | — | (316) | — | — | — | (316) | |||
| Net loss | — | — | — | (41,455) | — | — | — | (41,455) | |||
| Conversion of warrants | (18) | — | — | (31,067) | (37,698) | — | 2,056 | 68,761 | (4) | ||
| Unrealized loss, net on pension | — | — | — | — | (437) | — | — | (437) | |||
| Unrealized gain, net on hedging contracts | (14) | — | — | — | — | 17,052 | — | — | 17,052 | ||
| Realized gain, net on hedging contracts | (14) | — | — | — | — | (3,888) | — | — | (3,888) | ||
| Translation adjustment, net | — | — | — | — | (11,702) | — | — | (11,702) | |||
| Purchase of treasury shares | (18) | — | — | — | — | — | (1,987) | (74,450) | (74,450) | ||
| Issuance of common shares in connection with stock plan | (22) | — | — | — | (121,698) | — | 3,622 | 123,773 | 2,075 | ||
| Tax withholding related to vesting of stock awards | (22) | — | — | — | — | — | (1,448) | (51,147) | (51,147) | ||
| Share-based compensation | (22) | — | — | 65,893 | — | — | — | — | 65,893 | ||
| Balance at December 31, 2019 | 230,829 | $ 2,702 | $ 1,777,017 | $ 1,178,457 | $ (309,619) | (3,077) | $ (111,966) | $ 2,536,591 | |||
The accompanying notes are an integral part of these consolidated financial statements.
QIAGEN N.V. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
| (in thousands) | Note | Years ended December 31, | ||
|---|---|---|---|---|
| 2019 | 2018 | 2017 | ||
| Cash flows from operating activities: | ||||
| Net (loss) income | $ (41,455) | $ 190,380 | $ 40,394 | |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities, net of effects of.active businesses acquired: | ||||
| Depreciation and amortization | 231,458 | 206,436 | 216,448 | |
| Non-cash impairments | (6) | 144,830 | 17,020 | 5,137 |
| Amortization of debt discount and issuance costs | 40,763 | 35,537 | 24,773 | |
| Share-based compensation expense | (22) | 65,893 | 40,113 | 34,442 |
| Deferred income tax (benefit) expense | (17) | (55,362) | (23,272) | 60,176 |
| Loss (gain) on marketable securities | 2,867 | (2,725) | 1,055 | |
| Reversals of contingent consideration | (15) | (10,433) | — | (3,269) |
| Other items, net including fair value changes in derivatives | (3,394) | (8,834) | (4,521) | |
| Net changes in operating assets and liabilities: | ||||
| Accounts receivable | (4) | (39,578) | (41,813) | (34,165) |
| Inventories | (4) | (30,028) | (36,918) | (21,633) |
| Prepaid expenses and other current assets | (8) | 18,626 | (9,942) | (5,245) |
| Other long-term assets | (1,406) | (30,312) | (16,786) | |
| Accounts payable | 9,252 | 6,993 | 4,321 | |
| Accrued and other current liabilities | (13) | 19,913 | (13,317) | 2,828 |
| Income taxes | (17) | (6,782) | 14,239 | (41,266) |
| Other long-term liabilities | (14,321) | 15,911 | 24,090 | |
| Net cash provided by operating activities | 330,843 | 359,496 | 286,779 | |
| Cash flows from investing activities: | ||||
| Purchases of property, plant and equipment | (117,950) | (109,773) | (90,081) | |
| Proceeds from sale of equipment | — | — | 42 | |
| Purchases of intangible assets | (156,934) | (40,990) | (34,324) | |
| Purchases of investments, net | (5,170) | (9,398) | (4,777) | |
| Cash paid for acquisitions, net of cash acquired | (5) | (68,058) | (172,832) | (50,549) |
| Purchases of short-term investments | (7) | (293,959) | (568,002) | (450,564) |
| Proceeds from redemptions of short-term investments | (7) | 396,098 | 691,765 | 189,006 |
| Proceeds from divestiture | (5) | 1,000 | 16,394 | — |
| Cash received (paid) for collateral asset | (14) | 22,685 | (3,461) | (20,707) |
| Other investing activities | 10 | (15,059) | (2,310) | |
| Net cash used in investing activities | (222,278) | (211,356) | (464,264) | |
| Cash flows from financing activities: | ||||
| Proceeds from long-term debt, net of issuance costs | (16) | — | — | 329,875 |
| Proceeds from issuance of cash convertible notes, net of issuance costs | (16) | — | 494,879 | 394,391 |
| Purchase of call option related to cash convertible notes | (16) | — | (97,277) | (73,646) |
| Proceeds from issuance of warrants, net of issuance costs | (18) | — | 72,406 | 45,396 |
| Capital repayment | (18) | — | — | (243,945) |
| Proceeds from exercise of call option related to cash convertible notes | (16) | 134,737 | — | — |
| Payment of intrinsic value of cash convertible notes | (16) | (133,763) | — | — |
| Repayment of long-term debt | (16) | (506,400) | — | — |
| Principal payments on capital leases | — | (1,308) | (1,402) | |
| Proceeds from issuance of common shares | 2,075 | 4,412 | 6,075 | |
| Tax withholding related to vesting of stock awards | (49,998) | — | — | |
| Purchase of treasury shares | (18) | (74,450) | (104,685) | (60,970) |
| Other financing activities | (11,281) | (8,019) | (8,587) | |
| Net cash (used in) provided by financing activities | (639,080) | 360,408 | 387,187 | |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 826 | (7,183) | 8,832 | |
| Net (decrease) increase in cash, cash equivalents and restricted cash | (529,689) | 501,365 | 218,534 | |
| Cash and cash equivalents, beginning of period | 1,159,079 | 657,714 | 439,180 | |
| Cash, cash equivalents and restricted cash, end of period | $ 629,390 | $ 1,159,079 | $ 657,714 | |
| Supplemental cash flow disclosures: | ||||
| Cash paid for interest | $ 29,721 | $ 25,902 | $ 20,252 | |
| Cash paid for income taxes | $ 41,474 | $ 29,317 | $ 40,499 | |
| Supplemental disclosure of non-cash investing activities: | ||||
| Equipment purchased through capital lease | $ — | $ — | $ 88 | |
The accompanying notes are an integral part of these consolidated financial statements.
Further Reading
- Financial ResultsNotes to Consolidated Financial Statements
- Financial ResultsList of Subsidiaries
- Financial ResultsAuditor’s Report