Valeant Files Annual Report On Form 10-K; In Full Compliance With Credit Deal

(RTTNews) - Valeant Pharmaceuticals International Inc. (VRX, VRX.TO) said that it has filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K for the fiscal year ended December 31, 2015. The company noted that default under senior note indentures arising from the failure to timely file the Form 10-K was cured in all respects by the filing of this Form 10-K. In addition, the Company remains in full compliance with its credit agreement.

In pre-market trade, VRX is currently trading at $36.00, up $0.75 or 2.13 percent.

The Form 10-K also discloses management's determination that internal control over financial reporting, as well as the Company's disclosure controls and procedures, were not effective due to the existence of material weaknesses.

This Form 10-K includes consolidated financial statements for the years ended December 31, 2013, 2014 and 2015. The audited consolidated financial statements for the year ended December 31, 2014 are restated.

The Company has also restated certain unaudited quarterly results related to the three months ended December 31, 2014, the three months ended March 31, 2015, the six months ended June 30, 2015 and the nine months ended September 30, 2015, and revised certain unaudited results for the three months and nine months ended September 30, 2014.

As previously idicated, on April 5, 2016, Valeant announced that the Ad Hoc Committee or "AHC" had determined that its review was complete, and that the AHC had not identified any additional items that would require restatements beyond those required by matters previously disclosed.

In addition, the Company announced that the Company's Board of Directors had determined to dissolve the AHC and that the 12 independent directors on the Board, including the members of the Audit and Risk Committee, would assume oversight responsibility for remaining work, including work associated with the completion of the Company's current and restated financial statements and disclosures, as well as its assessment of related internal controls and remediation matters.

As previously disclosed, the Company identified misstatements that would reduce previously-reported fiscal year 2014 revenue by approximately $58 million, net income attributable to Valeant by approximately $33 million, and basic and diluted earnings per share by $0.09 (as compared to the previously-reported amounts of $8,264 million for revenue, $914 million for net income attributable to Valeant and $2.72 and $2.67 for basic and diluted earnings per share respectively).

A substantial part of the earnings impact of these misstatements reverses in the first quarter of 2015. The Company has also identified misstatements in the first quarter of 2015, consisting primarily of the reversing effect on earnings of the 2014 misstatements, which would reduce revenue by approximately $21 million (due to timing of recognition of managed care rebates), increase net income attributable to Valeant by approximately $24 million and increase basic and diluted earnings per share by $0.07.