DUBLIN, March 6, 2024 /PRNewswire/ -- Endo International plc (OTC: ENDPQ) today reported financial results for the fourth-quarter ended December 31, 2023.


     
              FOURTH-QUARTER FINANCIAL PERFORMANCE





     
              (in thousands, except per share amounts)


                                                                                           Three Months Ended December 31,                                   Year Ended December 31,


                                                                                      2023              2022               Change           2023            2022                         Change



     Total Revenues, Net                                                         $497,734          $555,812               (10) %     $2,011,518      $2,318,875                         (13) %



     Reported Loss from Continuing Operations                                $(2,441,038)       $(245,163)                  NM   $(2,447,786)   $(2,909,618)                        (16) %



     Reported Diluted Weighted Average Shares                                     235,220           235,205                  - %       235,219         234,840                            - %



     Reported Diluted Net Loss per Share from Continuing Operations (1)          $(10.38)          $(1.04)                  NM       $(10.41)       $(12.39)                        (16) %



     Reported Net Loss                                                       $(2,441,483)       $(243,535)                  NM   $(2,449,807)   $(2,923,105)                        (16) %



     Adjusted Income from Continuing Operations (2)(3)                           $151,060          $189,529               (20) %       $706,534        $463,858                           52 %



     Adjusted Diluted Weighted Average Shares (1)(2)                              235,220           236,500                (1) %        235,441         236,404                            - %



     Adjusted Diluted Net Income per Share from Continuing Operations (2)(3)        $0.64             $0.80               (20) %          $3.00           $1.96                           53 %



     Adjusted EBITDA (2)(3)                                                      $166,341          $210,102               (21) %       $761,838        $892,050                         (15) %

__________


     (1) Reported Diluted Net Loss per Share from Continuing Operations is computed based on weighted average shares outstanding and, if
            there is income from continuing operations during the period, the dilutive impact of ordinary share equivalents outstanding during
            the period. In the case of Adjusted Diluted Weighted Average Shares, Adjusted Income from Continuing Operations is used in
            determining whether to include such dilutive impact.



     (2) The information presented in the table above includes non-GAAP financial measures such as Adjusted Income from Continuing
            Operations, Adjusted Diluted Weighted Average Shares, Adjusted Diluted Net Income per Share from Continuing Operations and
            Adjusted EBITDA. Refer to the "Supplemental Financial Information" section below for reconciliations of certain non-GAAP
            financial measures to the most directly comparable GAAP financial measures.



     (3) Effective January 1, 2022, these non-GAAP financial measures now include acquired in-process research and development charges
            which were previously excluded under Endo's legacy non-GAAP policy. Refer to note (13) in the "Notes to the Reconciliations of
            GAAP and Non-GAAP Financial Measures" section below for additional discussion.

CONSOLIDATED FINANCIAL RESULTS

Total revenues were $498 million in fourth-quarter 2023, a decrease of 10% compared to $556 million in fourth-quarter 2022. This decrease was primarily attributable to decreased revenues from the Generic Pharmaceuticals and Sterile Injectables segments, partially offset by increased revenues from the Branded Pharmaceuticals segment.

Reported loss from continuing operations in fourth-quarter 2023 was $2,441 million compared to reported loss from continuing operations of $245 million in fourth-quarter 2022. This change was driven by adjustments to our estimated allowed claims, including with respect to certain litigation matters and debt obligations. The allowed claims will be reduced to reflect actual payments upon Chapter 11 emergence, which is expected to occur in second-quarter 2024.

Adjusted income from continuing operations in fourth-quarter 2023 was $151 million compared to $190 million in fourth-quarter 2022. This change was primarily driven by decreased revenues.

BRANDED PHARMACEUTICALS SEGMENT

Fourth-quarter 2023 Branded Pharmaceuticals segment revenues were $246 million compared to $224 million during fourth-quarter 2022.

Specialty Products revenues increased 16% to $188 million in fourth-quarter 2023 compared to $162 million in fourth-quarter 2022. This change was primarily due to an increase in XIAFLEX^® revenues, partially offset by a decrease in SUPPRELIN^® LA revenues mainly driven by lower volumes. Fourth-quarter 2023 XIAFLEX^® revenues were $148 million, a 29% increase compared to fourth-quarter 2022 driven by increased net selling price and increased volumes. The increase in net selling price was primarily attributable to reversing approximately $14 million of reserves recorded during the first three quarters of 2023 following application of the final Inflation Reduction Act vial-wastage rebate determination.

STERILE INJECTABLES SEGMENT

Fourth-quarter 2023 Sterile Injectables segment revenues were $96 million, a decrease of 11% compared to $108 million during fourth-quarter 2022. This decrease was primarily attributable to competitive pressure on VASOSTRICT^® and ADRENALIN^®.

GENERIC PHARMACEUTICALS SEGMENT

Fourth-quarter 2023 Generic Pharmaceuticals segment revenues were $139 million, a decrease of 32% compared to $205 million during fourth-quarter 2022. This decrease was primarily attributable to competitive pressure on varenicline tablets, the generic version of Chantix^®, and lubiprostone capsules, the authorized generic of Mallinckrodt's Amitiza^®, partially offset by revenue from dexlansoprazole delayed release capsules, the generic version of Dexilant^®, which launched during fourth-quarter 2022.

INTERNATIONAL PHARMACEUTICALS SEGMENT

Fourth-quarter 2023 International Pharmaceuticals segment revenues were $17 million, a decrease of 14% compared to $20 million during fourth-quarter 2022. This decrease was primarily attributable to competitive pressure on several products.

2024 FINANCIAL EXPECTATIONS

Endo is providing financial guidance for the full-year ending December 31, 2024, which contemplates key uncertainties, including competitive assumptions related to VASOSTRICT^® ready-to-use, ADRENALIN^® and generic Dexilant^® products. All financial expectations provided by Endo are forward-looking, and actual results may differ materially from such expectations, as further discussed below under the heading "Cautionary Note Regarding Forward-Looking Statements."

                                                                            Full-Year 2024
                                                            Adjusted Results



     
                ($ in millions)



     Total Revenues, Net                                 
            $1,685 - $1,770



     EBITDA                                                
              $615 - $645



     
                Assumptions:



     Segment Revenues:



     Branded Pharmaceuticals                               
              $860 - $905



     Sterile Injectables                                   
              $370 - $390



     Generic Pharmaceuticals                               
              $395 - $415



     International Pharmaceuticals                                            $60



     Gross Margin as a Percentage of Total Revenues, Net                     ~67%



     Operating Expenses                                    
              $585 - $605

CASH, CASH FLOW AND OTHER UPDATES

As of December 31, 2023, the Company had approximately $778 million in unrestricted cash and cash equivalents. Fourth-quarter 2023 net cash provided by operating activities was approximately $115 million compared to approximately $110 million net cash provided by operating activities during fourth-quarter 2022.

Amitiza^® is a registered trademark of a Mallinckrodt company.

Dexilant^® is a registered trademark of Takeda Pharmaceutical U.S.A., Inc.

Chantix^® is a registered trademark of Pfizer Inc.


     
                FINANCIAL SCHEDULES





     The following table presents Endo's unaudited Total revenues, net for the three months and years ended December 31, 2023 and 2022 (dollars in thousands):




                                                                                                          Three Months Ended December 31,                              Percent                        Year Ended December 31,        Percent
                                                                                                                                         Growth                                                                   Growth


                                                                                             2023                    2022                                         2023                   2022



     
                Branded Pharmaceuticals:



     
                Specialty Products:



     XIAFLEX(R)                                                                         $147,760                $114,304                                    29 %               $475,014        $438,680                         8 %



     SUPPRELIN(R) LA                                                                      23,459                  28,159                                  (17) %                 96,849         113,011                      (14) %



     Other Specialty (1)                                                                  16,515                  19,986                                  (17) %                 73,797          70,009                         5 %



     Total Specialty Products                                                           $187,734                $162,449                                    16 %               $645,660        $621,700                         4 %



     
                Established Products:



     PERCOCET(R)                                                                         $27,584                 $26,460                                     4 %               $106,375        $103,943                         2 %



     TESTOPEL(R)                                                                          10,265                  10,396                                   (1) %                 42,464          38,727                        10 %



     Other Established (2)                                                                20,186                  24,523                                  (18) %                 64,588          86,772                      (26) %



     Total Established Products                                                          $58,035                 $61,379                                   (5) %               $213,427        $229,442                       (7) %



     Total Branded Pharmaceuticals (3)                                                  $245,769                $223,828                                    10 %               $859,087        $851,142                         1 %



     
                Sterile Injectables:



     ADRENALIN(R)                                                                        $24,329                 $28,790                                  (15) %                $99,910        $114,304                      (13) %



     VASOSTRICT(R)                                                                        21,983                  28,479                                  (23) %                 93,180         253,696                      (63) %



     Other Sterile Injectables (4)                                                        49,587                  50,472                                   (2) %                236,473         221,633                         7 %



     Total Sterile Injectables (3)                                                       $95,899                $107,741                                  (11) %               $429,563        $589,633                      (27) %



     Total Generic Pharmaceuticals (5)                                                  $139,211                $204,701                                  (32) %               $650,352        $795,457                      (18) %



     Total International Pharmaceuticals (6)                                             $16,855                 $19,542                                  (14) %                $72,516         $82,643                      (12) %



     Total revenues, net                                                                $497,734                $555,812                                  (10) %             $2,011,518      $2,318,875                      (13) %

__________


     (1) 
     Products included within Other Specialty include AVEED(R), NASCOBAL(R) Nasal Spray and QWO(R).



     (2) 
     Products included within Other Established include, but are not limited to, EDEX(R).



     (3)   Individual products presented above represent the top two performing products in each product category for the year ended December
              31, 2023 and/or any product having revenues in excess of and/or any product having revenues in excess of $25 million during any
              completed quarterly period in 2023 or 2022.



     (4)   No individual product within Other Sterile Injectables has exceeded 5% of consolidated total revenues for the periods presented.



     (5)   The Generic Pharmaceuticals segment is comprised of a portfolio of products that are generic versions of branded products, are
              distributed primarily through the same wholesalers, generally have limited or no intellectual property protection and are sold
              within the U.S. Varenicline tablets (Endo's generic version of Pfizer Inc.'s Chantix(R)), which launched in September 2021, made
              up less than 5% and 16% for the three months ended December 31, 2023 and 2022, respectively, and 8% and 13% for the years ended
              December 31, 2023 and 2022, respectively, of consolidated total revenues. Dexlansoprazole delayed release capsules (Endo's generic
              version of Takeda Pharmaceuticals USA, Inc.'s Dexilant(R)), which launched in November 2022, made up 6% for the quarter and full-
              year ended December 31, 2023 of consolidated total revenues. No other individual product within this segment has exceeded 5% of
              consolidated total revenues for the periods presented.



     (6)   The International Pharmaceuticals segment, which accounted for less than 5% of consolidated total revenues for each of the periods
              presented, includes a variety of specialty pharmaceutical products sold outside the U.S., primarily in Canada through Endo's
              operating company Paladin Labs Inc.


     The following table presents unaudited Condensed Consolidated Statement of Operations data for the three months and years ended December 31, 2023 and 2022 (in thousands, except per share data):




                                                                                                                                                                      Three Months Ended December 31,                      Year Ended December 31,


                                                                                                                                                            2023                       2022                      2023            2022



     TOTAL REVENUES, NET                                                                                                                               $497,734                   $555,812                $2,011,518      $2,318,875



     COSTS AND EXPENSES:



     Cost of revenues                                                                                                                                   249,535                    294,266                   946,415       1,092,499



     Selling, general and administrative                                                                                                                140,433                    176,957                   567,727         777,169



     Research and development                                                                                                                            28,140                     30,230                   115,462         128,033



     Acquired in-process research and development                                                                                                             -                                                            68,700



     Litigation-related and other contingencies, net                                                                                                  1,556,773                     33,984                 1,611,090         478,722



     Asset impairment charges                                                                                                                               357                    191,530                       503       2,142,746



     Acquisition-related and integration items, net                                                                                                         148                      1,359                     1,972             408



     Interest (income) expense, net                                                                                                                       (239)                       290                                  349,776



     Reorganization items, net                                                                                                                          942,382                     78,766                 1,169,961         202,978



     Other income, net                                                                                                                                  (7,525)                  (11,907)                  (9,688)       (34,054)



     LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX                                                                                             $(2,412,270)                $(239,663)             $(2,391,924)   $(2,888,102)



     INCOME TAX EXPENSE                                                                                                                                  28,768                      5,500                    55,862          21,516



     LOSS FROM CONTINUING OPERATIONS                                                                                                               $(2,441,038)                $(245,163)             $(2,447,786)   $(2,909,618)



     DISCONTINUED OPERATIONS, NET OF TAX                                                                                                                  (445)                     1,628                   (2,021)       (13,487)



     NET LOSS                                                                                                                                      $(2,441,483)                $(243,535)             $(2,449,807)   $(2,923,105)



     NET LOSS PER SHARE-BASIC:



     Continuing operations                                                                                                                             $(10.38)                   $(1.04)                 $(10.41)       $(12.39)



     Discontinued operations                                                                                                                                  -                                             (0.01)         (0.06)



     Basic                                                                                                                                             $(10.38)                   $(1.04)                 $(10.42)       $(12.45)



     NET LOSS PER SHARE-DILUTED:



     Continuing operations                                                                                                                             $(10.38)                   $(1.04)                 $(10.41)       $(12.39)



     Discontinued operations                                                                                                                                  -                                             (0.01)         (0.06)



     Diluted                                                                                                                                           $(10.38)                   $(1.04)                 $(10.42)       $(12.45)



     WEIGHTED AVERAGE SHARES:



     Basic                                                                                                                                              235,220                    235,205                   235,219         234,840



     Diluted                                                                                                                                            235,220                    235,205                   235,219         234,840


     The following table presents unaudited Condensed Consolidated Balance Sheet data at December 31, 2023 and December 31, 2022 (in thousands):




                                                                                                                                                  December 31, December 31,
                                                                                                                                                          2023          2022



     
                ASSETS



     CURRENT ASSETS:



     Cash and cash equivalents                                                                                                                       $777,919    $1,018,883



     Restricted cash and cash equivalents                                                                                                             167,702       145,358



     Accounts receivable                                                                                                                              386,919       493,988



     Inventories, net                                                                                                                                 246,017       274,499



     Other current assets                                                                                                                              89,944       144,040



     Total current assets                                                                                                                          $1,668,501    $2,076,768



     TOTAL NON-CURRENT ASSETS                                                                                                                       3,468,793     3,681,169



     TOTAL ASSETS                                                                                                                                  $5,137,294    $5,757,937



     
                LIABILITIES AND SHAREHOLDERS' DEFICIT



     CURRENT LIABILITIES:



     Accounts payable and accrued expenses, including legal settlement accruals                                                                      $537,736      $687,183



     Other current liabilities                                                                                                                          1,058         2,444



     Total current liabilities                                                                                                                       $538,794      $689,627



     OTHER LIABILITIES                                                                                                                                100,192        61,700



     LIABILITIES SUBJECT TO COMPROMISE                                                                                                             11,095,868     9,168,782



     SHAREHOLDERS' DEFICIT                                                                                                                        (6,597,560)  (4,162,172)



     TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT                                                                                                   $5,137,294    $5,757,937


     The following table presents unaudited Condensed Consolidated Statement of Cash Flow data for the years ended December 31, 2023 and 2022 (in thousands):




                                                                                                                                                                               Year Ended December 31,


                                                                                                                                                                       2023          2022



     OPERATING ACTIVITIES:



     Net loss                                                                                                                                                 $(2,449,807) $(2,923,105)



     Adjustments to reconcile Net loss to Net cash provided by operating activities:



     Depreciation and amortization                                                                                                                                 306,448       391,629



     Asset impairment charges                                                                                                                                          503     2,142,746



     Non-cash reorganization items, net                                                                                                                            905,868        89,197



     Other, including cash payments to claimants from Qualified Settlement Funds                                                                                 1,672,086       568,726



     Net cash provided by operating activities                                                                                                                    $435,098      $269,193



     INVESTING ACTIVITIES:



     Capital expenditures, excluding capitalized interest                                                                                                        $(94,325)    $(99,722)



     Acquisitions, including in-process research and development, net of cash and restricted cash acquired                                                               -     (90,320)



     Proceeds from sale of business and other assets                                                                                                                 5,134        41,400



     Other                                                                                                                                                          39,397        15,495



     Net cash used in investing activities                                                                                                                       $(49,794)   $(133,147)



     FINANCING ACTIVITIES:



     Payments on borrowings, including certain adequate protection payments, net (a)                                                                            $(599,492)   $(509,513)



     Other                                                                                                                                                         (5,136)      (4,360)



     Net cash used in financing activities                                                                                                                      $(604,628)   $(513,873)



     Effect of foreign exchange rate                                                                                                                                   704       (4,242)



     NET DECREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS                                                                    $(218,620)   $(382,069)



     CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD                                                                1,249,241     1,631,310



     CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD                                                                     $1,030,621    $1,249,241

__________

     (a) Beginning during the third quarter of 2022, Endo became obligated to make certain adequate protection payments as a result of the
          Chapter 11 proceedings, which are currently being accounted for as a reduction of the carrying amount of the related debt
          instruments and presented as financing cash outflows. Some or all of the adequate protection payments may later be recharacterized
          as interest expense and/or as operating cash outflows depending upon certain developments in the Chapter 11 proceedings, which
          could result in increases in interest expense and/or decreases in operating cash flows in future periods that may be material.

SUPPLEMENTAL FINANCIAL INFORMATION

To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures. For additional information on the Company's use of such non-GAAP financial measures, refer to Endo's Current Report on Form 8-K furnished today to the U.S. Securities and Exchange Commission, which includes an explanation of the Company's reasons for using non-GAAP measures.

The tables below provide reconciliations of certain of the Company's non-GAAP financial measures to their most directly comparable GAAP amounts. Refer to the "Notes to the Reconciliations of GAAP and Non-GAAP Financial Measures" section below for additional details regarding the adjustments to the non-GAAP financial measures detailed throughout this Supplemental Financial Information section.


              
                Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP)





              The following table provides a reconciliation of Net loss (GAAP) to Adjusted EBITDA (non-GAAP) for the three months and years ended December 31, 2023 and 2022
    (in thousands):




                                                                                                                                                                                           Three Months Ended December 31,                   Year Ended December 31,


                                                                                                                                                                                      2023         2022                 2023            2022



              Net loss (GAAP)                                                                                                                                                $(2,441,483)  $(243,535)        $(2,449,807)   $(2,923,105)



              Income tax expense                                                                                                                                                   28,768        5,500               55,862          21,516



              Interest (income) expense, net                                                                                                                                        (239)         290                             349,776



              Depreciation and amortization (1)                                                                                                                                    74,358       89,342              306,448         387,856



              EBITDA (non-GAAP)                                                                                                                                              $(2,338,596)  $(148,403)        $(2,087,497)   $(2,163,957)



              Amounts related to continuity and separation benefits, cost reductions and strategic                                                                                  7,380       59,356               44,098         198,381
    review initiatives (2)



              Certain litigation-related and other contingencies, net (3)                                                                                                       1,556,773       33,984            1,611,090         478,722



              Certain legal costs (4)                                                                                                                                               2,069          434                7,256          31,756



              Asset impairment charges (5)                                                                                                                                            357      191,530                  503       2,142,746



              Fair value of contingent consideration (6)                                                                                                                              148        1,359                1,972             408



              Share-based compensation (1)                                                                                                                                              -       4,124                2,091          17,145



              Other income, net (7)                                                                                                                                               (7,525)    (11,907)             (9,688)       (34,054)



              Reorganization items, net (8)                                                                                                                                       942,382       78,766            1,169,961         202,978



              Other (9)                                                                                                                                                             2,908        2,487               20,031           4,438



              Discontinued operations, net of tax (10)                                                                                                                                445      (1,628)               2,021          13,487



              Adjusted EBITDA (non-GAAP) (13)                                                                                                                                    $166,341     $210,102             $761,838        $892,050


     
                Reconciliation of Adjusted Income from Continuing Operations (non-GAAP)





     The following table provides a reconciliation of the Company's Loss from continuing operations (GAAP) to Adjusted income from continuing operations (non-GAAP) for the three months and years ended December 31, 2023 and 2022 (in thousands):




                                                                                                                                                                                       Three Months Ended December 31,                                Year Ended December 31,


                                                                                                                                                                           2023                     2022                    2023                    2022



     Loss from continuing operations (GAAP)                                                                                                                       $(2,441,038)              $(245,163)           $(2,447,786)           $(2,909,618)



     Non-GAAP adjustments:



     Amortization of intangible assets (11)                                                                                                                             61,823                   75,467                 255,933                 337,311



     Amounts related to continuity and separation benefits, cost reductions and strategic review initiatives (2)                                                         7,380                   59,356                  44,098                 198,381



     Certain litigation-related and other contingencies, net (3)                                                                                                     1,556,773                   33,984               1,611,090                 478,722



     Certain legal costs (4)                                                                                                                                             2,069                      434                   7,256                  31,756



     Asset impairment charges (5)                                                                                                                                          357                  191,530                     503               2,142,746



     Fair value of contingent consideration (6)                                                                                                                            148                    1,359                   1,972                     408



     Reorganization items, net (8)                                                                                                                                     942,382                   78,766               1,169,961                 202,978



     Other (9)                                                                                                                                                         (3,641)                (10,022)                 13,485                (32,980)



     Tax adjustments (12)                                                                                                                                               24,807                    3,818                  50,022                  14,154



     Adjusted income from continuing operations (non-GAAP) (13)                                                                                                       $151,060                 $189,529                $706,534                $463,858


              
                Reconciliation of Other Adjusted Income Statement Data (non-GAAP)





              The following tables provide detailed reconciliations of various other income statement data between the GAAP and non-GAAP amounts for the three months and years ended December 31, 2023 and 2022 (in thousands, except per share data):




                                                                                                                                                                           
              
                Three Months Ended December 31, 2023


                                                                   Total                   Cost of                   Gross                   Gross                   Total                   Operating                   Operating                   Operating             Other non-                (Loss)            Income tax              Effective                  (Loss)               Discontinued               Net (loss)                Diluted net
                                                            revenues,                 revenues                 margin                     margin %           operating                  expense                     (loss)                           margin %       operating              income from           expense                tax rate                income from             operations,                  income                     (loss)
                                                               net                                                                                             expenses                     to                    income from                                          expense                continuing                                                           continuing             net of tax                                           income per
                                                                                                                                                                                       revenue                   continuing                                         (income),               operations                                                           operations                                                                  share from
                                                                                                                                                                                          %                      operations                                            net                    before                                                                                                                                         continuing
                                                                                                                                                                                                                                                                                            income tax                                                                                                                                       operations
                                                                                                                                                                                                                                                                                                                                                                                                                                                         (14)



              Reported (GAAP)                                  $497,734                   $249,535                 $248,199                   49.9 %              $1,725,851                      346.7 %                $(1,477,652)                   (296.9) %               $934,618           $(2,412,270)               $28,768                 (1.2) %            $(2,441,038)                      $(445)            $(2,441,483)                   $(10.38)



              Items impacting
    comparability:



              Amortization of                                         -                  (61,823)                  61,823                                                                                                   61,823                                                                    61,823                                                                61,823                                               61,823
    intangible assets (11)



              Amounts related to                                      -                     (702)                     702                                          (6,678)                                                   7,380                                                                     7,380                                                                 7,380                                                7,380
    continuity and
    separation benefits,
    cost reductions and
    strategic review
    initiatives (2)



              Certain litigation-                                     -                                                                                       (1,556,773)                                               1,556,773                                                                 1,556,773                                                             1,556,773                                            1,556,773
    related and other
    contingencies, net (3)


               Certain legal costs (4)                                 -                                                                                           (2,069)                                                   2,069                                                                     2,069                                                                 2,069                                                2,069



              Asset impairment                                        -                                                                                             (357)                                                     357                                                                       357                                                                   357                                                  357
    charges (5)



              Fair value of                                           -                                                                                             (148)                                                     148                                                                       148                                                                   148                                                  148
    contingent
    consideration (6)



              Reorganization items,                                   -                                                                                                                                                                                                    (942,382)               942,382                                                               942,382                                              942,382
    net (8)



              Other (9)                                               -                     (375)                     375                                          (2,533)                                                   2,908                                               6,549                (3,641)                                                              (3,641)                                             (3,641)



              Tax adjustments (12)                                    -                                                                                                                                                                                                                                                 (24,807)                                         24,807                                               24,807



              Discontinued                                            -                                                                                                                                                                                                                                                                                                                                 445                      445
    operations, net of tax
    (10)


               After considering items                          $497,734                   $186,635                 $311,099                   62.5 %                $157,293                       31.6 %                    $153,806                       30.9 %               $(1,215)              $155,021                 $3,961                   2.6 %                $151,060   
              $             -                $151,060                       $0.64
    (non-GAAP) (13)





                                                                                                           
      
                Three Months Ended December 31, 2022




                                              Total      Cost of        Gross      Gross             Total           Operating                   Operating      Operating             Other non-                (Loss)             Income tax               Effective                   (Loss)                 Discontinued               Net (loss)                   Diluted
                                                                                                                                                                                                                                                                                                                                                                          net
                                       revenues,    revenues      margin        margin %    operating           expense                     (loss)              margin %       operating              income from            expense                 tax rate                 income from              operations,                   income                     (loss)
                                          net                                                 expenses              to                    income from                             expense,               continuing                                                              continuing               net of tax                                            income per
                                                                                                               revenue                   continuing                               net                  operations                                                              operations                                                                     share from
                                                                                                                  %                      operations                                                      before                                                                                                                                               continuing
                                                                                                                                                                                                       income tax                                                                                                                                             operations
                                                                                                                                                                                                                                                                                                                                                                        (14)



              Reported (GAAP)             $555,812      $294,266      $261,546      47.1 %          $434,060               78.1 %                  $(172,514)       (31.0) %                $67,149             $(239,663)                 $5,500                  (2.3) %               $(245,163)                        $1,628               $(243,535)                   $(1.04)



              Items impacting
    comparability:



              Amortization of                    -     (75,467)       75,467                                                                        75,467                                                       75,467                                                                   75,467                                                 75,467
    intangible assets (11)



              Amounts related to                 -     (38,153)       38,153                      (21,203)                                          59,356                                                       59,356                                                                   59,356                                                 59,356
    continuity and
    separation benefits,
    cost reductions and
    strategic review
    initiatives (2)



              Certain litigation-                -                                               (33,984)                                          33,984                                                       33,984                                                                   33,984                                                 33,984
    related and other
    contingencies, net (3)


               Certain legal costs (4)            -                                                  (434)                                             434                                                          434                                                                      434                                                    434



              Asset impairment                   -                                              (191,530)                                         191,530                                                      191,530                                                                  191,530                                                191,530
    charges (5)



              Fair value of                      -                                                (1,359)                                           1,359                                                        1,359                                                                    1,359                                                  1,359
    contingent
    consideration (6)



              Reorganization items,              -                                                                                                                                     (78,766)                78,766                                                                   78,766                                                 78,766
    net (8)



              Other (9)                          -        (125)          125                       (2,355)                                           2,480                                 12,502               (10,022)                                                                (10,022)                                              (10,022)



              Tax adjustments (12)               -                                                                                                                                                                                   (3,818)                                            3,818                                                  3,818



              Discontinued                       -                                                                                                                                                                                                                                                                  (1,628)                 (1,628)
    operations, net of tax
    (10)


               After considering items     $555,812      $180,521      $375,291      67.5 %          $183,195               33.0 %                    $192,096          34.6 %                   $885               $191,211                  $1,682                    0.9 %                 $189,529     
              $            -                 $189,529                      $0.80
    (non-GAAP) (13)





                                                                                                             
        
                Year Ended December 31, 2023




                                              Total      Cost of        Gross      Gross            Total            Operating                   Operating     Operating             Other non-                (Loss)            Income tax              Effective                  (Loss)                Discontinued               Net (loss)                Diluted net
                                       revenues,    revenues      margin        margin %    operating           expense                     (loss)             margin %       operating              income from           expense                tax rate                income from             operations,                   income                     (loss)
                                          net                                                 expenses              to                    income from                            expense                continuing                                                           continuing              net of tax                                           income per
                                                                                                               revenue                   continuing                           (income),               operations                                                           operations                                                                   share from
                                                                                                                  %                      operations                              net                    before                                                                                                                                          continuing
                                                                                                                                                                                                      income tax                                                                                                                                        operations
                                                                                                                                                                                                                                                                                                                                                                    (14)




              Reported (GAAP)           $2,011,518      $946,415    $1,065,103      53.0 %       $2,296,754               114.2 %                $(1,231,651)      (61.2) %             $1,160,273           $(2,391,924)               $55,862                 (2.3) %            $(2,447,786)                     $(2,021)            $(2,449,807)                   $(10.41)



              Items impacting
    comparability:



              Amortization of                    -    (255,933)      255,933                                                                       255,933                                                     255,933                                                               255,933                                               255,933
    intangible assets (11)



              Amounts related to                 -      (4,514)        4,514                     (39,584)                                           44,098                                                      44,098                                                                44,098                                                44,098
    continuity and
    separation benefits,
    cost reductions and
    strategic review
    initiatives (2)



              Certain litigation-                -                                           (1,611,090)                                        1,611,090                                                   1,611,090                                                             1,611,090                                             1,611,090
    related and other
    contingencies, net (3)


               Certain legal costs (4)            -                                               (7,256)                                            7,256                                                       7,256                                                                 7,256                                                 7,256



              Asset impairment                   -                                                 (503)                                              503                                                         503                                                                   503                                                   503
    charges (5)



              Fair value of                      -                                               (1,972)                                            1,972                                                       1,972                                                                 1,972                                                 1,972
    contingent
    consideration (6)



              Reorganization items,              -                                                                                                                                 (1,169,961)             1,169,961                                                             1,169,961                                             1,169,961
    net (8)



              Other (9)                          -      (1,278)        1,278                     (18,753)                                           20,031                                 6,546                 13,485                                                                13,485                                                13,485



              Tax adjustments (12)               -                                                                                                                                                                                (50,022)                                         50,022                                                50,022



              Discontinued                       -                                                                                                                                                                                                                                                               2,021                    2,021
    operations, net of tax
    (10)


               After considering items   $2,011,518      $684,690    $1,326,828      66.0 %         $617,596                30.7 %                    $709,232         35.3 %               $(3,142)              $712,374                 $5,840                   0.8 %                $706,534    
              $             -                $706,534                       $3.00
    (non-GAAP) (13)





                                                                                                              
       
                Year Ended December 31, 2022




                                              Total       Cost of        Gross      Gross            Total           Operating                   Operating     Operating            Other non-               (Loss)            Income tax              Effective                  (Loss)                Discontinued              Net (loss)                   Diluted
                                                                                                                                                                                                                                                                                                                                                                  net
                                       revenues,    revenues       margin        margin %    operating          expense
                                                                                                                    to                    (loss) income         margin %      operating             income from           expense                tax rate                income from             operations,                  income                     (loss)
                                          net                                                 expenses               revenue %                from                             expense,
                                                                                                                                                                                   net                continuing                                                           continuing              net of tax                                           income per
                                                                                                                                          continuing                                                operations                                                           operations                                                                   share from
                                                                                                                                          operations                                                  before                                                                                                                                          continuing
                                                                                                                                                                                                    income tax                                                                                                                                        operations
                                                                                                                                                                                                                                                                                                                                                                 14)



              Reported (GAAP)           $2,318,875     $1,092,499    $1,226,376      52.9 %       $3,595,778              155.1 %                $(2,369,402)     (102.2) %              $518,700          $(2,888,102)               $21,516                 (0.7) %            $(2,909,618)                    $(13,487)           $(2,923,105)                  $(12.39)



              Items impacting
    comparability:



              Amortization of                    -     (337,311)      337,311                                                                      337,311                                                   337,311                                                               337,311                                              337,311
    intangible assets (11)



              Amounts related to                 -      (61,806)       61,806                    (136,575)                                         198,381                                                   198,381                                                               198,381                                              198,381
    continuity and
    separation benefits,
    cost reductions and
    strategic review
    initiatives (2)



              Certain litigation-                -                                              (478,722)                                         478,722                                                   478,722                                                               478,722                                              478,722
    related and other
    contingencies, net (3)


               Certain legal costs (4)            -                                               (31,756)                                          31,756                                                    31,756                                                                31,756                                               31,756



              Asset impairment                   -                                            (2,142,746)                                       2,142,746                                                 2,142,746                                                             2,142,746                                            2,142,746
    charges (5)



              Fair value of                      -                                                  (408)                                             408                                                       408                                                                   408                                                  408
    contingent
    consideration (6)



              Reorganization items,              -                                                                                                                                  (202,978)              202,978                                                               202,978                                              202,978
    net (8)



              Other (9)                          -         (500)          500                      (3,925)                                           4,425                               37,405              (32,980)                                                             (32,980)                                            (32,980)



              Tax adjustments (12)               -                                                                                                                                                                              (14,154)                                         14,154                                               14,154



              Discontinued                       -                                                                                                                                                                                                                                                            13,487                  13,487
    operations, net of tax
    (10)


               After considering items   $2,318,875       $692,882    $1,625,993      70.1 %         $801,646               34.6 %                    $824,347         35.5 %              $353,127              $471,220                 $7,362                   1.6 %                $463,858    
              $            -                $463,858                      $1.96
    (non-GAAP) (13)

Notes to the Reconciliations of GAAP and Non-GAAP Financial Measures


     Notes to certain line items included in the reconciliations of the GAAP financial measures to the non-GAAP financial measures for the three months and years ended December 31, 2023 and 2022 are as follows:




                                                                                                                                                                                                     
              (1)          Depreciation and amortization and Share-based compensation amounts per the Adjusted EBITDA reconciliations do not include amounts
                                                                                                                                                                                                                               reflected in other lines of
                                                                                                                                                                                                                    the reconciliations, including Amounts related to continuity and separation benefits, cost reductions and strategic review
                                                                                                                                                                                                                    initiatives




                                                                                                                                                                                                     
              (2)          Adjustments for amounts related to continuity and separation benefits, cost reductions and strategic review initiatives included
                                                                                                                                                                                                                               the following (in thousands):

                                                             
      
              Three Months Ended December 31,


                                                                          2023                                                 2022


                                                    Cost of             Operating                          Cost of
                                                    revenues                                               revenues            Operating
                                                               expenses                                               expenses



     Continuity and separation benefits                $693                $6,677                             $5,802               $21,642



     Inventory adjustments                                9                     1                             32,351                   116



     Other, including strategic review initiatives                                                                                (555)



     Total                                             $702                $6,678                            $38,153               $21,203





                                                             
          
              Year Ended December 31,


                                                                          2023                                             2022


                                                    Cost of             Operating                      Cost of
                                                    revenues                                           revenues            Operating
                                                               expenses                                           expenses



     Continuity and separation benefits              $3,833               $39,866                        $18,301               $67,277



     Accelerated depreciation                                                                            2,164                 1,660



     Inventory adjustments                               90                 (323)                        33,785                 2,577



     Other, including strategic review initiatives      591                    41                          7,556                65,061



     Total                                           $4,514               $39,584                        $61,806              $136,575




              The amounts in the tables above include adjustments related to previously announced restructuring activities, certain continuity and transitional compensation
    arrangements, certain other cost reduction initiatives and certain strategic review initiatives





              (3)                                                                                                                                                            
     To exclude adjustments to accruals for litigation-related settlement charges





              (4)                                                                                                                                                            
     To exclude amounts related to opioid-related legal expenses





              (5)                                                                                                                                                            
     Adjustments for asset impairment charges included in the following (in thousands):

                                                               Three Months Ended December
                                                                             31,                        Year Ended December 31,


                                                           2023                                2022            2023                  2022



     Goodwill impairment charges                      
     $    -       
              $               -  
     $         -           $1,845,000



     Other intangible asset impairment charges                                            185,548                              288,701



     Property, plant and equipment impairment charges      357                               5,982             503                 9,045



     Total                                                $357                            $191,530            $503            $2,142,746




     (6)            To exclude the impact of changes in the fair value of contingent consideration liabilities resulting from changes to estimates
                       regarding the timing and amount of the
            future revenues of the underlying products and changes in other assumptions impacting the probability of incurring, and extent
            to which the Company could incur,
           related contingent obligations





     (7) 
              To exclude Other income, net per the Consolidated Statements of Operations





     (8)            Amounts relate to the net expense or income recognized during Endo's bankruptcy proceedings required to be presented as
                       Reorganization items, net under
           Accounting Standards Codification Topic 852, Reorganizations





     (9)            The "Other" rows included in each of the above reconciliations of GAAP financial measures to non-GAAP financial measures
                       (except for thereconciliations of Net
           loss (GAAP) to Adjusted EBITDA (non-GAAP)) include the following (in thousands):

                                                                                              
     
               Three Months Ended December 31,


                                                                                                             2023                                                                       2022


                                                             Cost of               Operating                Other non-                      Cost of
                                                             revenues                                                                       revenues               Operating               Other non-
                                                                          expenses                operating                                               expenses              operating
                                                                                                  expenses                                                                      expenses



              Foreign currency impact related to the    
     $        - 
     $                  -                    $2,156        
              $          -  
     $                  -                   $1,786
    re-measurement of intercompany debt instruments



              Gain on sale of business and other assets                                                       (8,705)                                                                       (14,288)



              Other miscellaneous                                375                   2,533                                                      125                    2,355



              Total                                             $375                  $2,533                   $(6,549)                          $125                   $2,355                 $(12,502)





                                                                                              
       
               Year Ended December 31,


                                                                                                           2023                                                                     2022


                                                             Cost of               Operating              Other non-                    Cost of
                                                             revenues                                                                   revenues               Operating               Other non-
                                                                          expenses              operating                                             expenses              operating
                                                                                                expenses                                                                    expenses



              Foreign currency impact related to the    
     $        - 
     $                  -                  $2,159         
            $         -  
     $                  -                 $(5,328)
    re-measurement of intercompany debt instruments



              Gain on sale of business and other assets                                                     (8,705)                                                                     (26,508)



              Other miscellaneous                              1,278                  18,753                                                  500                    3,925                   (5,569)



              Total                                           $1,278                 $18,753                 $(6,546)                        $500                   $3,925                 $(37,405)




     The "Other" row included in the reconciliations of Net loss (GAAP) to Adjusted EBITDA (non-GAAP) primarily relates to the items enumerated in the foregoing "Cost of revenues" and "Operating expenses" columns




                                                                                                 
              (10)                                                                                                      
              To exclude the results of the businesses reported as discontinued operations, net of tax




                                                                                                 
              (11)                                                                                                      
              To exclude amortization expense related to intangible assets




                                                                                                 
              (12)                                                                                                                 Adjusted income taxes are calculated by tax effecting adjusted pre-tax income and permanent book-tax differences at the applicable effective tax rate that will
                                                                                                                                                                                                                                   be
                                                                                                                                                                                                                       determined by reference to statutory tax rates in the relevant jurisdictions in which the Company operates. Adjusted income taxes include current and deferred
                                                                                                                                                                                                                       income tax expense commensurate with the non-GAAP measure of profitability




                                                                                                 
              (13)                                                                                                      
              Amounts of Acquired in-process research and development charges included within these non-GAAP financial measures are set forth in the table below (in
                                                                                                                                                                                                                       thousands):

                                                                   Three Months Ended December
                                                                                 31,                    Year Ended December 31,


                                                               2023                            2022            2023                  2022



     Acquired in-process research and development charges 
     $    -       
              $           -  
     $         -              $68,700




     (14)           Calculated as income or loss from continuing operations divided by the applicable weighted average share number. The
                       applicable weighted average share
           numbers are as follows (in thousands):

                                Three Months Ended December 31,         Year Ended December 31,


                           2023          2022              2023    2022



     GAAP              235,220       235,205           235,219 234,840


      Non-GAAP Adjusted 235,220       236,500           235,441 236,404

Non-GAAP Financial Measures

The Company utilizes certain financial measures that are not prescribed by or prepared in accordance with accounting principles generally accepted in the U.S. (GAAP). These non-GAAP financial measures are not, and should not be viewed as, substitutes for GAAP net income and its components and diluted net income per share amounts. Despite the importance of these measures to management in goal setting and performance measurement, the Company stresses that these are non-GAAP financial measures that have no standardized meaning prescribed by GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, non-GAAP adjusted EBITDA and non-GAAP adjusted net income from continuing operations and its components (unlike GAAP net income from continuing operations and its components) may not be comparable to the calculation of similar measures of other companies. These non-GAAP financial measures are presented solely to permit investors to more fully understand how management assesses performance.

Investors are encouraged to review the reconciliations of the non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measures. However, the Company does not provide reconciliations of projected non-GAAP financial measures to GAAP financial measures, nor does it provide comparable projected GAAP financial measures for such projected non-GAAP financial measures. The Company is unable to provide such reconciliations without unreasonable efforts due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for asset impairments, contingent consideration adjustments, legal settlements, gain / loss on extinguishment of debt, adjustments to inventory and other charges reflected in the reconciliation of historic numbers, the amounts of which could be significant.

See Endo's Current Report on Form 8-K furnished today to the U.S. Securities and Exchange Commission for an explanation of Endo's non-GAAP financial measures.

About Endo

Endo (OTC: ENDPQ) is a specialty pharmaceutical company committed to helping everyone we serve live their best life through the delivery of quality, life-enhancing therapies. Our decades of proven success come from passionate team members around the globe collaborating to bring treatments forward. Together, we boldly transform insights into treatments benefiting those who need them, when they need them. Learn more at www.endo.com or connect with us on LinkedIn.

Cautionary Note Regarding Forward-Looking Statements

Certain information in this press release may be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation, including, but not limited to, statements with respect to financial guidance, expectations or outlook, bankruptcy court hearings or approvals, Chapter 11 emergence, and any other statements that refer to expected, estimated or anticipated future results or that do not relate solely to historical facts. Statements including words or phrases such as "believe," "expect," "anticipate," "intend," "estimate," "plan," "will," "may," "look forward," "outlook," "guidance," "future," "potential" or similar expressions are forward-looking statements. All forward-looking statements in this communication reflect the Company's current views as of the date of this communication about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to it and on assumptions it has made. Actual results may differ materially and adversely from current expectations based on a number of factors, including, among other things, the following: the Company's restructuring activities; the timing, impact or results of any pending or future litigation, investigations, proceedings or claims, including opioid, tax and antitrust related matters; actual or contingent liabilities; settlement discussions or negotiations; the Company's liquidity, financial performance, cash position and operations; the Company's strategy; risks and uncertainties associated with Chapter 11 proceedings; the negative impacts on the Company's businesses as a result of filing for and operating under Chapter 11 protection; the time, terms and ability to obtain approval and consummate the proposed Plan or Reorganization or a sale under Section 363 of the U.S. Bankruptcy Code; the adequacy of the capital resources of the Company's businesses and the difficulty in forecasting the liquidity requirements of the operations of the Company's businesses; the unpredictability of the Company's financial results while in Chapter 11 proceedings; the Company's ability to discharge claims in Chapter 11 proceedings; negotiations with the holders of the Company's indebtedness and its trade creditors and other significant creditors; risks and uncertainties with performing under the terms of the restructuring support agreement and any other arrangement with lenders or creditors while in Chapter 11 proceedings; the Company's ability to conduct business as usual; the Company's ability to continue to serve customers, suppliers and other business partners at the high level of service and performance they have come to expect from the Company; the Company's ability to continue to pay employees, suppliers and vendors; the ability to control costs during Chapter 11 proceedings; adverse litigation; the risk that the Company's Chapter 11 Cases may be converted to cases under Chapter 7 of the Bankruptcy Code; the Company's ability to secure operating capital; the Company's ability to take advantage of opportunities to acquire assets with upside potential; the impact of competition and the timing of competitive entrants; the Company's ability to satisfy judgments or settlements or pursue appeals including bonding requirements; the Company's ability to adjust to changing market conditions; the Company's ability to attract and retain key personnel; supply chain interruptions or difficulties; changes in competitive or market conditions; changes in legislation or regulatory developments; the Company's ability to obtain and maintain adequate protection for intellectual property rights; the timing and uncertainty of the results of both the research and development and regulatory processes, including regulatory decisions, product recalls, withdrawals and other unusual items; domestic and foreign health care and cost containment reforms, including government pricing, tax and reimbursement policies; technological advances and patents obtained by competitors; the performance, including the approval, introduction, and consumer and physician acceptance of new products and the continuing acceptance of currently marketed products; the Company's ability to integrate any newly acquired products into its portfolio and achieve any financial or commercial expectations; the impact that known and unknown side effects may have on market perception and consumer preference for the Company's products; the effectiveness of advertising and other promotional campaigns; the timely and successful implementation of any strategic initiatives; unfavorable publicity regarding the misuse of opioids; the uncertainty associated with the identification of and successful consummation and execution of external corporate development initiatives and strategic partnering transactions; the Company's ability to advance its strategic priorities, develop its product pipeline and continue to develop the market for XIAFLEX^® and other branded and unbranded products; and the Company's ability to obtain and successfully manufacture, maintain and distribute a sufficient supply of products to meet market demand in a timely manner. In addition, U.S. and international economic conditions, including consumer confidence and debt levels, inflation, taxation, changes in interest and currency exchange rates, international relations, capital and credit availability, the status of financial markets and institutions and the impact of continued economic volatility, can materially affect the Company's results. Therefore, the reader is cautioned not to rely on these forward-looking statements. The Company expressly disclaims any intent or obligation to update these forward-looking statements, except as required to do so by law.

Additional information concerning risk factors, including those referenced above, can be found in press releases issued by the Company, as well as public periodic filings with the U.S. Securities and Exchange Commission (the "SEC") and with securities regulators in Canada, including the discussion under the heading "Risk Factors" in the Company's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q or other filings with the SEC. Copies of the Company's press releases and additional information about the Company are available at www.endo.com or you can contact the Endo Investor Relations Department at relations.investor@endo.com.

SOURCE Endo International plc

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