Concordia International records $72 million of first-quarter EBITDA

By Caroline Salls

Pittsburgh, May 15 – Concordia International Corp. reported first-quarter adjusted EBITDA of $72 million on $152.3 million in revenue, according to a company news release.

In comparison, Concordia posted adjusted EBITDA of $84.2 million in the first quarter of 2017 on $160.6 million of revenue.

The company said the decline in adjusted EBITDA primarily stemmed from lower sales and gross margins from both of its segments, partially offset by higher foreign exchange rates impacting translated results during the first quarter of 2018.

Concordia said the decrease in revenue resulted from the same factors that triggered the change in adjusted EBITDA.

The net loss for the first three months of this year was $55.7 million.

“Concordia’s first-quarter results were consistent with management’s expectations,” interim chief executive officer Graeme Duncan said in the release.

“The company has also recently made significant progress toward the realignment of its capital structure.

“Looking forward, we are optimistic Concordia can complete its proposed recapitalization transaction by July 31 and emerge as a stronger business.”

As of March 31, the company said its liquidity consisted of $343.8 million of cash and cash equivalents.

On May 2, Concordia announced the execution of a support agreement with holders of more than 72% of its affected secured debt and more than 64% of its affected unsecured debt in connection with a proposed recapitalization transaction that would raise $586.5 million, reduce outstanding debt by $2.4 billion and reduce annual interest costs by $172 million.

Completion of the proposed recapitalization transaction will be subject to approval of the company’s plan of arrangement by the requisite majorities of the secured and unsecured debtholders at meetings scheduled for June 19, other approvals that may be required by the Ontario Superior Court of Justice or the Toronto Stock Exchange, other applicable regulatory approvals, approval of the plan of arrangement by the court and the satisfaction or waiver of applicable conditions.

Concordia is an Oakville, Ont., specialty pharmaceutical company focused on European specialty, off-patent medicines.

© 2015 Prospect News.
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