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Vertex Pharmaceuticals (VRTX) FY2018 results: revenue $3.0 billion, up 22.5% on the year

Vertex Pharmaceuticals Inc. (VRTX) reported revenue of $3.0 billion for fiscal 2018, the year ended 31 December 2018, up 22.5% on the year before. Net income was $2.1 billion, up 695.8%, and diluted earnings per share $8.09. The figures are the company's own, from the 10-K it filed with the SEC on 13 February 2019.

Revenue
$3.0 billion
+22.5% on the year
FY2011FY2018
Operating margin
20.8%
5.0% a year earlier
FY2011FY2018
Net income
$2.1 billion
+695.8% on the year
FY2011FY2018
Diluted EPS
$8.09
+677.9% on the year
FY2011FY2018

this yearthe year beforeHover a bar for its figure.

The year in brief

Income statement (profit and loss)

$ millionFY2018FY2017FY2016On the yearLast 8 years
Revenue3,0482,4891,702+22.5%
Cost of revenue410275210+48.9%
Gross profit2,6382,2141,492+19.2%
Gross margin86.6%88.9%87.6%
Research and development1,4161,3251,048+6.9%
Selling, general and administrative558496433+12.4%
Operating income6351239.9+415.4%
Operating margin20.8%5.0%0.6%
Interest expense72.569.3n/a+4.6%
Pre-tax income600-15.7-67.4
Income tax-1,487-10716.7
Effective tax rate-247.7%n/an/a
Net income2,097263-112+695.8%
Net margin68.8%10.6%-6.6%
Diluted EPS$8.09$1.04-$0.46+677.9%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2018FY2017FY2016On the yearLast 8 years
Operating cash flow1,270845236+50.3%
Capital expenditure95.599.456.6-3.9%
Free cash flow1,175746180+57.6%
Free cash flow margin38.5%30.0%10.5%
Cash from investing-202-48351.2
Cash from financing-71.268.4133
Depreciation and amortisation72.461.461.4+18.0%
Share-based compensation325293241+10.8%
Buybacks3500.00.0
Diluted shares, weighted259m253m245m+2.4%
Shares outstanding at period end255m253m248m+0.8%

Balance sheet

$ millionFY2018FY2017FY2016On the yearLast 8 years
Shareholders' equity4,4352,0291,157+118.6%
Non-controlling interest0.013.7182
Debtn/a0.0300
Other liabilities1,8111,5041,259+20.4%
Total liabilities and equity6,2463,5462,897+76.1%
Fixed assets812789698+2.9%
Goodwill50.450.450.40.0%
Intangible assets0.0n/an/a
Investments518423251+22.4%
Cash and equivalents2,6501,6651,184+59.1%
Receivables410281200+45.6%
Inventory12411277.6+11.2%
Other assets1,681224436+649.4%
Total assets6,2463,5462,897+76.1%

10-K for the year ended 31 December 2018, filed 13 February 2019: the filing.