QIAGEN N.V. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands)
| Note | As of December 31, | ||
|---|---|---|---|
| 2020 | 2019 | ||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | (3) | $ 597,984 | $ 623,647 |
| Restricted cash | (3) | — | 5,743 |
| Short-term investments | (7) | 117,249 | 129,586 |
| Accounts receivable, net of allowance for credit losses of $27,052 in 2020 and allowance for doubtful accounts of $12,115 in 2019 | (3, 24) | 380,519 | 385,117 |
| Income taxes receivable | 59,335 | 42,119 | |
| Inventories, net | (3) | 291,181 | 170,704 |
| Prepaid expenses and other current assets (of which $25,429 and $13,697 in 2020 and 2019 due from related parties, respectively) | (8, 24) | 206,921 | 105,464 |
| Fair value of derivative instruments - current | (14) | 14,127 | 107,868 |
| Total current assets | 1,667,316 | 1,570,248 | |
| Long-term assets: | |||
| Property, plant and equipment, net of accumulated depreciation of $630,443 and $699,130 in 2020 and 2019, respectively | (9) | 559,372 | 455,243 |
| Goodwill | (11) | 2,364,031 | 2,140,503 |
| Intangible assets, net of accumulated amortization of $809,724 and $776,520 in 2020 and 2019, respectively | (11) | 726,194 | 632,434 |
| Deferred income tax assets | (17) | 54,879 | 56,542 |
| Fair value of derivative instruments — long-term | (14) | 379,080 | 192,266 |
| Other long-term assets (of which $9,594 and $16,830 in 2020 and 2019 due from related parties, respectively) | (10, 12, 24) | 161,658 | 188,380 |
| Total long-term assets | 4,245,214 | 3,665,368 | |
| Total assets | $ 5,912,530 | $ 5,235,616 | |
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, | ||
|---|---|---|---|
| 2020 | 2019 | ||
| Liabilities and equity | |||
| Current liabilities: | |||
| Current portion of long-term debt | (16) | $ 42,539 | $ 285,244 |
| Accounts payable | (24) | 118,153 | 84,767 |
| Fair value of derivative instruments — current | (14) | 51,464 | 103,175 |
| Accrued and other current liabilities (of which $1,380 and $15,404 due to related parties in 2020 and 2019, respectively) | (10, 13, 24) | 345,665 | 444,303 |
| Income taxes payable | 57,265 | 33,856 | |
| Total current liabilities | 615,086 | 951,345 | |
| Long-term liabilities: | |||
| Long-term debt, net of current portion | (16) | 1,880,210 | 1,421,108 |
| Deferred income tax liabilities | (17) | 39,216 | 23,442 |
| Fair value of derivative instruments — long-term | (14) | 393,455 | 196,929 |
| Other long-term liabilities | (12, 15) | 186,724 | 106,201 |
| Total long-term liabilities | 2,499,605 | 1,747,680 | |
| 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 2020 and 2019, respectively | 2,702 | 2,702 | |
| Additional paid-in capital | 1,834,169 | 1,777,017 | |
| Retained earnings | 1,323,091 | 1,178,457 | |
| Accumulated other comprehensive loss | (18) | (243,822) | (309,619) |
| Less treasury shares, at cost—2,844 and 3,077 shares in 2020 and 2019, respectively | (18) | (118,301) | (111,966) |
| Total equity | 2,797,839 | 2,536,591 | |
| Total liabilities and equity | $ 5,912,530 | $ 5,235,616 | |
The accompanying notes are an integral part of these consolidated financial statements.
QIAGEN N.V. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except per share data)
| Note | Years ended December 31, | ||||
|---|---|---|---|---|---|
| 2020 | 2019 | 2018 | |||
| Net sales | (3, 4, 24) | $ 1,870,346 | $ 1,526,424 | $ 1,501,848 | |
| Cost of sales: | |||||
| Cost of sales | 574,467 | 449,651 | 444,165 | ||
| Acquisition-related intangible amortization | 63,164 | 71,511 | 56,723 | ||
| Total cost of sales | 637,631 | 521,162 | 500,888 | ||
| Gross profit | 1,232,715 | 1,005,262 | 1,000,960 | ||
| Operating expenses: | |||||
| Research and development | (3) | 149,072 | 157,448 | 161,852 | |
| Sales and marketing | 413,684 | 391,906 | 392,281 | ||
| General and administrative | (3) | 111,678 | 112,262 | 104,568 | |
| Acquisition-related intangible amortization | 20,811 | 29,973 | 39,032 | ||
| Restructuring, acquisition, integration and other, net | (1, 6) | 150,005 | 199,778 | 28,659 | |
| Long-lived asset impairments | (6) | 1,034 | 140,031 | 7,987 | |
| Total operating expenses | 846,284 | 1,031,398 | 734,379 | ||
| Income (loss) from operations | 386,431 | (26,136) | 266,581 | ||
| Other income (expense): | |||||
| Interest income | 10,032 | 22,113 | 20,851 | ||
| Interest expense | (71,317) | (74,185) | (67,293) | ||
| Other income, net | (6) | 114,326 | 432 | 5,598 | |
| Total other income (expense), net | 53,041 | (51,640) | (40,844) | ||
| Income (loss) before income tax (benefit) expense | 439,472 | (77,776) | 225,737 | ||
| Income tax expense (benefit) | (3, 17) | 80,284 | (36,321) | 35,357 | |
| Net income (loss) | $ 359,188 | $ (41,455) | $ 190,380 | ||
| Basic earnings (loss) per common share | (19) | $ 1.57 | $ (0.18) | $ 0.84 | |
| Diluted earnings (loss) per common share | (19) | $ 1.53 | $ (0.18) | $ 0.82 | |
| Weighted-average common shares outstanding | |||||
| Basic | (19) | 228,427 | 226,777 | 226,640 | |
| Diluted | (19) | 234,214 | 226,777 | 233,456 | |
The accompanying notes are an integral part of these consolidated financial statements.
QIAGEN N.V. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands)
| Note | Years ended December 31, | |||
|---|---|---|---|---|
| 2020 | 2019 | 2018 | ||
| Net income (loss) | $ 359,188 | $ (41,455) | $ 190,380 | |
| Other comprehensive income (loss) to be reclassified to profit or loss in subsequent periods: | ||||
| (Losses) gains on cash flow hedges, net of tax benefit of $2.8 million in 2020, tax expense of $0 in 2019 and tax expense of $2.8 million in 2018 | (14) | (8,536) | 11,547 | 8,526 |
| Reclassification adjustments on cash flow hedges, net of tax expense of $4.7 million in 2020, tax expense of $0 in 2019 and tax benefit of $2.4 million in 2018 | (14) | 13,999 | (3,888) | (7,331) |
| Cash flow hedges, net of tax | 5,463 | 7,659 | 1,195 | |
| Net investment hedge | (26,442) | 5,505 | 13,839 | |
| Gain on pension, net of tax expense of $0 in 2020, tax expense of $0.4 million in 2019 and tax benefit of $0.6 million in 2018 | (38) | (437) | 754 | |
| Foreign currency translation adjustments, net of tax expense of $0.9 million in 2020, tax benefit of $0.5 million in 2019 and tax benefit of $1.4 million in 2018 | 86,814 | (11,702) | (106,615) | |
| Total other comprehensive income (loss) | 65,797 | 1,025 | (90,827) | |
| Comprehensive income (loss) | $ 424,985 | $ (40,430) | $ 99,553 | |
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, 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 | |||
| ASC 326 impact of change in accounting policy | — | — | — | (15,074) | — | — | — | (15,074) | |||
| Net income | — | — | — | 359,188 | — | — | — | 359,188 | |||
| Conversion of warrants | (18) | — | — | (7,547) | (22,725) | — | 807 | 30,272 | — | ||
| Termination of warrants | (18) | — | — | (30,289) | (144,337) | — | — | — | (174,626) | ||
| Equity component of convertible debt, net | (16) | — | — | 54,052 | — | — | — | — | 54,052 | ||
| Unrealized loss, net on pension | — | — | — | — | (38) | — | — | (38) | |||
| Unrealized loss, net on hedging contracts | (14) | — | — | — | — | (34,978) | — | — | (34,978) | ||
| Realized loss, net on hedging contracts | (14) | — | — | — | — | 13,999 | — | — | 13,999 | ||
| Translation adjustment, net | — | — | — | — | 86,814 | — | — | 86,814 | |||
| Purchase of treasury shares | (18) | — | — | — | — | — | (1,346) | (63,995) | (63,995) | ||
| Issuance of common shares in connection with stock plan | (22) | — | — | — | (32,418) | — | 1,085 | 40,079 | 7,661 | ||
| Tax withholding related to vesting of stock awards | (22) | — | — | — | — | — | (313) | (12,691) | (12,691) | ||
| Share-based compensation | (22) | — | — | 40,936 | — | — | — | — | 40,936 | ||
| Balance at December 31, 2020 | 230,829 | $ 2,702 | $ 1,834,169 | $ 1,323,091 | $ (243,822) | (2,844) | $ (118,301) | $ 2,797,839 | |||
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, | ||
|---|---|---|---|---|
| 2020 | 2019 | 2018 | ||
| Cash flows from operating activities: | ||||
| Net income (loss) | $ 359,188 | $ (41,455) | $ 190,380 | |
| Adjustments to reconcile net income to net cash provided by operating activities, net of effects of businesses acquired: | ||||
| Depreciation and amortization | 205,014 | 231,458 | 206,436 | |
| Non-cash impairments | (6) | 1,432 | 144,830 | 17,020 |
| Amortization of debt discount and issuance costs | 42,318 | 40,763 | 35,537 | |
| Share-based compensation expense | (22) | 40,936 | 65,893 | 40,113 |
| Deferred income tax benefit | (17) | (6,706) | (55,362) | (23,272) |
| (Gain) loss on marketable securities | (1,992) | 2,867 | (2,725) | |
| Gain on sale of investment | (10) | (121,813) | — | — |
| Reversals of contingent consideration | (15) | — | (10,433) | — |
| Other items, net including fair value changes in derivatives | 11,696 | (3,394) | (8,834) | |
| Net changes in operating assets and liabilities: | ||||
| Accounts receivable | (3) | (14,711) | (39,578) | (41,813) |
| Inventories | (3) | (107,573) | (30,028) | (36,918) |
| Prepaid expenses and other current assets | (8) | 1,061 | 18,626 | (9,942) |
| Other long-term assets | 316 | (1,406) | (30,312) | |
| Accounts payable | 8,442 | 9,252 | 6,993 | |
| Accrued and other current liabilities | (13) | (22,141) | 19,913 | (13,317) |
| Income taxes | (17) | 4,682 | (6,782) | 14,239 |
| Other long-term liabilities | 57,657 | (14,321) | 15,911 | |
| Net cash provided by operating activities | 457,806 | 330,843 | 359,496 | |
| Cash flows from investing activities: | ||||
| Purchases of property, plant and equipment | (132,787) | (117,950) | (109,773) | |
| Purchases of intangible assets | (11) | (171,450) | (156,934) | (40,990) |
| Proceeds from (purchases of) investments, net | (10) | 25,638 | (5,170) | (9,398) |
| Cash paid for acquisitions, net of cash acquired | (5) | (239,572) | (68,058) | (172,832) |
| Purchases of short-term investments | (7) | (49,770) | (293,959) | (568,002) |
| Proceeds from redemptions of short-term investments | (7) | 181,223 | 396,098 | 691,765 |
| Proceeds from divestiture | (5) | 1,845 | 1,000 | 16,394 |
| Cash (paid) received for collateral asset | (14) | (53,417) | 22,685 | (3,461) |
| Other investing activities | (4,991) | 10 | (15,059) | |
| Net cash used in investing activities | (443,281) | (222,278) | (211,356) | |
| Cash flows from financing activities: | ||||
| Proceeds from short-term debt | (16) | 59,345 | — | — |
| Repayment of short-term debt | (16) | (58,705) | — | — |
| Proceeds from long-term debt, net of issuance costs | (16) | 497,646 | — | — |
| Repayment of long-term debt | (16) | (296,400) | (506,400) | — |
| Payment for termination of warrants | (18) | (174,627) | — | — |
| Payment of intrinsic value of cash convertible notes | (16) | (237,438) | (133,763) | — |
| Proceeds from exercise of call option related to cash convertible notes | (16) | 239,836 | 134,737 | — |
| Purchase of treasury shares | (18) | (63,995) | (74,450) | (104,685) |
| Proceeds from issuance of common shares | 7,662 | 2,075 | 4,412 | |
| Tax withholding related to vesting of stock awards | (13,841) | (49,998) | — | |
| Other financing activities | (9,610) | (11,281) | (8,019) | |
| Proceeds from issuance of cash convertible notes, net of issuance costs | (16) | — | — | 494,879 |
| Purchase of call option related to cash convertible notes | (16) | — | — | (97,277) |
| Proceeds from issuance of warrants, net of issuance costs | (18) | — | — | 72,406 |
| Principal payments on capital leases | — | — | (1,308) | |
| Net cash (used in) provided by financing activities | (50,127) | (639,080) | 360,408 | |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 4,196 | 826 | (7,183) | |
| Net (decrease) increase in cash, cash equivalents and restricted cash | (31,406) | (529,689) | 501,365 | |
| Cash, cash equivalents and restricted cash, beginning of period | 629,390 | 1,159,079 | 657,714 | |
| Cash, cash equivalents and restricted cash, end of period | $ 597,984 | $ 629,390 | $ 1,159,079 | |
| Supplemental cash flow disclosures: | ||||
| Cash paid for interest | $ 25,351 | $ 29,721 | $ 25,902 | |
| Cash paid for income taxes | $ 42,572 | $ 41,474 | $ 29,317 | |
The accompanying notes are an integral part of these consolidated financial statements.
Further Reading – In this report
- Financial ResultsNotes to Consolidated Financial Statement
- Financial ResultsList of Subsidiaries
- Financial ResultsAuditor’s Report