On Tuesday, Shares of Valeant Pharmaceuticals International, Inc. (NYSE:VRX), lost -0.45% to $109.54.
Valeant Pharmaceuticals International, declared that its Audit and Risk Committee and the full Board of Directors have reviewed the company’s accounting for its Philidor arrangement and have confirmed the appropriateness of the company’s related revenue recognition and accounting treatment.
Based on its review conducted to date, Valeant also believes that the company is in compliance with applicable law. In light of the recent allegations made regarding Philidor, however, the Board of Directors has decided to establish an ad hoc committee of the board to review allegations related to the company’s business relationship with Philidor and related matters. The committee will be chaired by Robert Ingram , the company’s lead outside director. Other members will comprise Norma Provencio , chairman of the audit and risk committee; Colleen Goggins ; and Mason Morfit , who has been designated to the Board as an independent director.
“As we have said formerly, our accounting with respect to the Company’s Philidor arrangements is fully compliant with the law,” J. Michael Pearson , Chairman of the Board and Chief Executive Officer of Valeant said. “However, other issues have been raised publicly about Philidor’s business practices, and it is appropriate that they be fully reviewed. This decision to create an ad hoc committee of the board, which I fully support, will assist free administration to focus on ongoing to serve doctors and patients and run our business.”
“We operate our business based on the highest standard of ethics, and we are committed to transparency. These values are at the core of our business model, and if we find violations we will take appropriate action,” Pearson said.
Valeant Pharmaceuticals International, Inc. develops, manufactures, and markets pharmaceuticals, over-the-counter products, and medical devices worldwide. The company offers Solodyn to treat red and pus-filled pimples of acne in patients, in addition to Ziana, Acanya, Atralin, Retin- A Micro, and ONEXTON gel; Wellbutrin XL for major depressive disorder in adults; Jublia for onychomycosis of the toenails; Xenazine for chorea; Targretin for Cutaneous T-Cell Lymphoma; Arestin, a subgingival sustained-release antibiotic; and PROVENGE for the treatment of prostate cancer.
Shares of Rent-A-Center, Inc. (NASDAQ:RCII), declined -29.95% to $18.06, during its last trading session.
Rent-A-Center, declared results for the quarter ended September 30, 2015.
Highlights on the quarter comprise the following:
- On a GAAP basis, loss per diluted share was $0.08 in the third quarter contrast to earnings of $0.49 for the third quarter of the prior year, due primarily to the $34.7 million write-down of smartphones as talked about below
- Earnings per diluted share, not taking into account special items, was $0.47 contrast to $0.50 for the third quarter of the prior year (see non-GAAP reconciliation below)
- Merged total revenues raised 3.6 percent to $791.6 million and same store sales raised 5.2 percent over the prior year
- Acceptance Now same store sales raised 24.5 percent, driven by the continued ramp-up of existing locations and the introduction of 90 day option pricing. During the third quarter, 30 Acceptance Now staffed locations and 208 direct locations were opened, 18 staffed locations were merged with existing locations, and three staffed locations were converted to direct locations.
- Core U.S. same store sales reduced by 0.2 percent, representing an improvement of 340 basis points contrast to prior year. Since the first quarter of 2014, the two-year same store sales comp has improved by 1,100 basis points. The improvement is primarily due to the new smartphone product category and higher merchandise sales, offset by headwinds in oil industry affected markets and continued pressure in the computers and tablets category.
Rent-A-Center, Inc., together with its auxiliaries, leases household durable goods to customers on a rent-to-own basis. The company operates in four segments: Core U.S., Acceptance Now, Mexico, and Franchising. It offers durable products, such as consumer electronics, appliances, computers, furniture, and accessories under rental purchase agreements.