Myriad Genetics Inc 8-K/A, filed Feb 7, 2020

Myriad Genetics Inc (MYGN)

8-K/A 2020-02-07 For: 2020-02-06

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Added on April 12, 2026

About this 8-K/A

Myriad Genetics Inc filed this 8-K/A on February 7, 2020, reporting on events of February 6, 2020.

Items reported

Item 2.02: Financial results
Item 7.01: Regulation FD disclosure
Item 9.01: Financial statements and exhibits

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☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Exhibit Number		Description

99.1		Earnings release dated February 6, 2020 for the three and six months ended December 31, 2019, as corrected on February 7, 2020.
99.2*		Earnings call slide presentation dated February 6, 2020 for the three and six months ended December 31, 2019.

104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

	MYRIAD GENETICS, INC.

Date: February 7, 2020	By:	/s/ R. Bryan Riggsbee
		R. Bryan Riggsbee
		Interim President and Chief Executive Officer, Chief Financial Officer

Revenue
		Fiscal Second-Quarter
($ in millions)		2020				2019			% Change
Molecular diagnostic testing revenue
Hereditary Cancer	$		117.7				126.7		(7%)
GeneSight^®			22.5				24.0		(6%)
Prenatal			16.4				31.2		(47%)
Vectra^®			10.3				11.8		(13%)
Prolaris^®			6.8				6.1		11%
EndoPredict^®			2.6				2.2		18%
Other testing revenue			4.8				1.0		380%
Total molecular diagnostic testing revenue			181.1				203.0		(11%)
Pharmaceutical and clinical service revenue			14.0				13.8		1%
Total Revenue	$		195.1		$		216.8		(10%)

Income Statement
		Fiscal Second-Quarter
($ in millions)		2020				2019			% Change
Total Revenue	$		195.1				216.8		(10%)
Gross Profit			145.5				164.7		(12%)
Gross Margin			74.6	%			76.0	%
Operating Expenses			154.3				158.6		(3%)
Operating Income			(8.8	)			6.1		NM
Operating Margin			(4.5	%)			2.8	%
Adjusted Operating Income			18.4				37.4		(51%)
Adjusted Operating Margin			9.4	%			17.3	%
Net Income			(8.3	)			2.6		NM
Diluted EPS	$		(0.11	)	$		0.03		NM
Adjusted EPS	$		0.23		$		0.38		(40%)

	Revenue	GAAP Diluted Earnings Per Share	Adjusted Earnings Per Share
Fiscal Year 2020	$735 million	($0.80)	$0.45
Fiscal Third-Quarter 2020	$172 million	($0.30)	$0.02

MYRIAD GENETICS, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS (Unaudited)
(in millions, except per share amounts)
	Three months ended						Six months ended
	December 31,						December 31,
	2019			2018			2019			2018
Molecular diagnostic testing	$	181.1		$	203.0		$	353.1		$	392.0
Pharmaceutical and clinical services		14.0			13.8			28.3			27.1
Total revenue		195.1			216.8			381.4			419.1
Costs and expenses:
Cost of molecular diagnostic testing		41.0			44.0			82.2			86.3
Cost of pharmaceutical and clinical services		8.6			8.1			17.1			15.5
Research and development expense		18.8			22.4			40.1			43.5
Change in the fair value of contingent consideration		(0.1	)		1.0			0.6			1.4
Selling, general, and administrative expense		135.6			135.2			271.1			265.1
Total costs and expenses		203.9			210.7			411.1			411.8
Operating income		(8.8	)		6.1			(29.7	)		7.3
Other income (expense):
Interest income		0.8			0.9			1.7			1.6
Interest expense		(2.5	)		(3.4	)		(5.4	)		(5.6	)
Other		(0.9	)		—			(0.3	)		1.1
Total other expense:		(2.6	)		(2.5	)		(4.0	)		(2.9	)
Income before income tax		(11.4	)		3.6			(33.7	)		4.4
Income tax provision		(3.1	)		1.0			(4.8	)		2.6
Net income	$	(8.3	)	$	2.6		$	(28.9	)	$	1.8
Net loss attributable to non-controlling interest		—			—			—			(0.1	)
Net income attributable to Myriad Genetics, Inc. stockholders	$	(8.3	)	$	2.6		$	(28.9	)	$	1.9
Earnings per share:
Basic	$	(0.11	)	$	0.04		$	(0.39	)	$	0.03
Diluted	$	(0.11	)	$	0.03		$	(0.39	)	$	0.02
Weighted average shares outstanding:
Basic		74.4			74.2			74.1			73.6
Diluted		74.4			76.5			74.1			76.9

Consolidated Balance Sheets (Unaudited)
(in millions)
	December 31,			June 30,
ASSETS	2019			2019
Current assets:
Cash and cash equivalents	$	81.2		$	93.2
Marketable investment securities		60.4			43.7
Prepaid expenses		16.2			16.6
Inventory		28.1			31.4
Trade accounts receivable		118.3			133.9
Prepaid taxes		24.7			25.1
Other receivables		3.5			4.7
Assets held for sale		32.9			0.0
Total current assets		365.3			348.6
Property, plant and equipment, net		36.5			57.3
Operating lease right-of-use assets		67.3			—
Long-term marketable investment securities		47.6			54.9
Intangibles, net		653.5			684.7
Goodwill		408.1			417.2
Total assets	$	1,578.3		$	1,562.7
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	21.0		$	33.3
Accrued liabilities		61.1			78.9
Current maturities of operating lease liabilities		12.8			—
Short-term contingent consideration		3.4			3.4
Deferred revenue		3.6			2.2
Liabilities held for sale		10.5			0.0
Total current liabilities		112.4			117.8
Unrecognized tax benefits		22.4			21.7
Noncurrent operating lease liabilities		58.7			—
Other long-term liabilities		—			7.8
Contingent consideration		6.9			10.4
Long-term debt		225.1			233.5
Long-term deferred taxes		75.5			82.6
Total liabilities		501.0			473.8
Commitments and contingencies
Stockholders’ equity:
Common stock, 74.5 and 73.5 shares outstanding at December 31, 2019 and June 30, 2019 respectively		0.7			0.7
Additional paid-in capital		1,085.1			1,068.0
Accumulated other comprehensive loss		(5.3	)		(5.4	)
Retained earnings		(3.3	)		25.6
Total Myriad Genetics, Inc. stockholders’ equity		1,077.2			1,088.9
Non-Controlling Interest		0.1			—
Total stockholders' equity		1,077.3			1,088.9
Total liabilities and stockholders’ equity	$	1,578.3		$	1,562.7

Consolidated Statement of Cash Flows (Unaudited)
(in millions)

	Six months ended
	December 31,
	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income attributable to Myriad Genetics, Inc. stockholders	$	(28.9	)		1.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		36.4			36.3
Non-cash interest expense		0.2			(1.2	)
Gain on disposition of assets		(0.1	)		(0.9	)
Share-based compensation expense		15.8			15.2
Deferred income taxes		(6.8	)		2.3
Unrecognized tax benefits		0.7			(2.3	)
Impairment of goodwill classified as held for sale		1.3			0.0
Change in fair value of contingent consideration		0.7			(1.4	)
Changes in assets and liabilities:
Prepaid expenses		(0.2	)		0.8
Trade accounts receivable		13.6			(0.9	)
Other receivables		(0.3	)		(1.9	)
Inventory		2.6			6.1
Prepaid taxes		0.4			(3.1	)
Accounts payable		(11.3	)		(0.3	)
Accrued liabilities		(11.8	)		(4.7	)
Deferred revenue		1.6			(0.3	)
Net cash provided by operating activities		13.9			45.6
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures		(4.8	)		(4.1	)
Acquisitions, net of cash acquired	—				(278.5	)
Purchases of marketable investment securities		(45.0	)		(36.6	)
Proceeds from maturities and sales of marketable investment securities		35.5			32.1
Net cash used in investing activities		(14.3	)		(287.1	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from common stock issued under share-based compensation plans		1.3			4.5
Payment of contingent consideration recognized at acquisition		(3.9	)		—
Net proceeds from revolving credit facility		—			340.0
Repayment of revolving credit facility		(8.6	)		(75.0	)
Repurchase and retirement of common stock		0.0			(50.0	)
Net cash provided by (used in) financing activities		(11.2	)		219.5
Effect of foreign exchange rates on cash and cash equivalents		1.1			1.7
Change in cash and cash equivalents classified as held for sale		(1.5	)		—
Net decrease in cash and cash equivalents		(12.0	)		(20.3	)
Cash and cash equivalents at beginning of the period		93.2			110.9
Cash and cash equivalents at end of the period	$	81.2		$	90.6

Reconciliation of GAAP to Non-GAAP Financial Measures
for the Three and Six months ended December 31, 2019
(Unaudited data in millions, except per share amount)
	Three Months Ended						Six Months Ended
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Revenue	$	195.1		$	216.8		$	381.4		$	419.1
GAAP Cost of molecular diagnostic testing		41.0			44.0			82.2			86.3
GAAP Cost of pharmaceutical and clinical services		8.6			8.1			17.1			15.5
Acquisition - Integration related costs		—			(0.1	)		—			(0.1	)
Equity Compensation		(0.4	)		—			(0.7	)		(0.2	)
Elevate initiatives		—			(0.6	)		(0.2	)		(3.6	)
Non-GAAP COGS	$	49.2		$	51.4		$	98.4		$	97.9
Non-GAAP Gross Margin		74.8	%		76.3	%		74.2	%		76.6	%
GAAP Research and Development	$	18.8		$	22.4		$	40.1		$	43.5
Acquisition - amortization of intangible assets		—			(0.1	)		—			(0.1	)
Acquisition - Integration related costs		—			(0.6	)		—			(0.7	)
Equity compensation		(1.2	)		(1.3	)		(2.7	)		(2.5	)
Elevate initiatives		(0.3	)		(1.5	)		(1.0	)		(2.2	)
Non-GAAP R&D	$	17.3		$	18.9		$	36.4		$	38.0
GAAP Contingent Consideration	$	(0.1	)	$	1.0		$	0.6		$	1.4
Potential future consideration related to acquisitions		0.1			(1.0	)		(0.6	)		(1.4	)
Non-GAAP Contingent Consideration	$	—		$	—		$	—		$	—
GAAP Selling, General and Administrative	$	135.6		$	135.2		$	271.1		$	265.1
Acquisition - amortization of intangible assets		(15.2	)		(15.2	)		(30.4	)		(28.5	)
Acquisition - Integration related costs		—			(3.3	)		(0.6	)		(12.8	)
Impairment of goodwill classified as held for sale		(1.3	)		—			(1.3	)		—
Non-recurring legal expenses		(1.3	)		—			(1.3	)		—
Equity compensation		(5.5	)		(6.2	)		(12.5	)		(12.5	)
Elevate initiatives		(2.1	)		(1.4	)		(4.4	)		(2.5	)
Non-GAAP SG&A	$	110.2		$	109.1		$	220.6		$	208.8
GAAP Operating Income	$	(8.8	)	$	6.1		$	(29.7	)	$	7.3
Acquisition - Integration related costs		—			4.0			0.6			13.6
Acquisition - amortization of intangible assets		15.2			15.3			30.4			28.6
Impairment of goodwill classified as held for sale		1.3			—			1.3			—
Non-recurring legal expenses		1.3			—			1.3			—
Equity compensation		7.1			7.5			15.9			15.2
Elevate initiatives		2.4			3.5			5.6			8.3
Potential future consideration related to acquisitions		(0.1	)		1.0			0.6			1.4
Non-GAAP Operating Income	$	18.4		$	37.4		$	26.0		$	74.4
Non-GAAP Operating Margin		9	%		17	%		7	%		18	%
GAAP Net Income Attributable to Myriad Genetics, Inc. Stockholders	$	(8.3	)	$	2.6		$	(28.9	)	$	1.9
Acquisition - Integration related costs		—			4.0			0.6			13.6
Acquisition - amortization of intangible assets		15.2			15.3			30.4			28.6
Impairment of goodwill classified as held for sale		1.3			—			1.3			—
Non-recurring legal expenses		1.3			—			1.3			—
Equity compensation		7.1			7.5			15.9			15.2
Elevate initiatives		2.4			3.5			5.6			8.3
Potential future consideration related to acquisitions		(0.1	)		1.0			0.6			1.4
Deferred tax impact of non-GAAP adjustments		1.5			(0.1	)		2.9			2.6
Tax effect associated with non-GAAP adjustments		(2.8	)		(4.6	)		(6.2	)		(9.7	)
Non-GAAP Net Income	$	17.6		$	29.2		$	23.5		$	61.9
GAAP Diluted EPS	$	(0.11	)	$	0.03		$	(0.39	)	$	0.02
Non-GAAP Diluted EPS	$	0.23		$	0.38		$	0.31		$	0.80
Diluted shares outstanding		75.3			76.5			75.4			76.9

Free Cash Flow Reconciliation
(Unaudited data in millions)
	Three Months Ended						Six Months Ended
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018

GAAP cash flow from operations	$	(1.9)		$	37.8		$	13.9		$	45.6
Capital expenditures		(3.4)			(2.8	)		(4.8	)		(4.1	)
Free cash flow	$	(5.3)		$	35.0		$	9.1		$	41.5
Elevate initiative costs		2.4			3.4			5.6			8.1
Non-recurring legal expenses		1.3			—			1.3			—
Acquisition - Integration related costs		—			0.3			0.6			8.4
Settlement of hereditary cancer Qui Tam compliant		9.1			—			9.1			—
Tax effect associated with non-GAAP adjustments		(1.0	)		(1.1	)		(2.1	)		(4.0	)
Non-GAAP Free cash flow	$	6.5		$	37.6		$	23.6		$	54.0

	Fiscal Year 2020
Diluted net income per share
GAAP diluted net income per share	$	(0.80	)
Stock Based Compensation Expense		0.30
Acquisition - amortization of intangible assets		0.80
Adjustments to GAAP financial measures		0.15
Non-GAAP diluted net income per share	$	0.45


	Fiscal Third-Quarter 2020
Diluted net income per share
GAAP diluted net income per share	$	(0.30	)
Stock Based Compensation Expense		0.08
Acquisition - amortization of intangible assets		0.20
Adjustments to GAAP financial measures		0.04
Non-GAAP diluted net income per share	$	0.02