Stock Analysis on Net
Stock Analysis on Net

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

Cash Flow Statement
Quarterly Data

Beginner level

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company’s balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Vertex Pharmaceuticals Inc., consolidated cash flow statement (quarterly data)

US$ in thousands

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3 months ended: Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Net income (loss) 667,434  837,270  602,753  583,234  57,518  267,427  268,631  1,525,096  128,456  206,250  227,301  102,185  (291,267) 31,169  249,548  27,759  (39,537) (36,151) (36,102) (74,669) (93,816) (220,992) (198,704)
Stock-based compensation expense 99,539  117,189  115,706  91,591  85,420  89,687  93,791  78,943  85,532  82,436  78,136  75,402  73,770  72,582  68,982  59,082  61,209  61,942  55,472  44,646  65,734  63,261  57,384 
Depreciation expense 26,642  26,697  26,821  26,256  25,847  27,698  27,140  18,826  19,192  18,059  16,343  16,432  15,225  14,890  14,850  15,451  14,569  14,963  16,415  15,747  16,168  14,065  16,363 
Increase in fair value of contingent consideration 1,800  9,200  1,600  1,500  2,959  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Deferred income taxes 56,147  (27,742) 36,705  73,212  6,817  43,933  43,425  (1,515,920) 79  (71) 3,587  (6,544) (118,595) 3,414  1,212  (6,583) 686  20,798  2,060  (4,510) 1,447  6,346  — 
(Gains) losses on equity securities (75,750) (109,986) 44,870  (128,735) 31,216  (56,527) (43,551) 85,659  61,159  (53,918) (95,458) —  —  —  —  —  —  —  —  —  —  —  — 
Intangible asset impairment charges —  —  —  —  —  —  —  29,000  —  —  —  —  255,340  —  —  —  —  —  —  —  —  —  — 
Acquired in-process research and development —  —  —  —  —  —  —  —  —  —  —  —  160,000  —  —  —  —  —  —  —  —  —  — 
Deconsolidation of VIE —  —  —  —  —  —  —  1,077  —  —  —  —  76,644  —  —  —  —  —  —  —  —  —  — 
Other non-cash items, net 36,064  6,639  9,668  20,966  (10,030) 8,437  (2,431) 8,712  6,848  7,496  9,446  6,142  1,706  6,010  581  7,044  (4,340) 7,271  (3,835) 14,924  (8,921) 5,416  629 
Accounts receivable, net 12,948  59,533  (223,672) (184,143) 14,426  (25,734) (30,136) (32,985) 12,999  (74,693) (13,473) (17,304) (13,005) (36,332) (5,118) (23,267) 3,194  (10,442) (2,512) (16,112) (67,538) (15,334) (5,863)
Inventories (30,521) (36,936) (27,450) (18,767) (20,106) (12,035) (13,139) (7,504) (15,095) (1,158) (8,208) (16,414) (6,542) (14,591) (7,437) (4,914) (3,757) (3,008) (4,771) (7,019) (6,701) (6,791) (2,635)
Prepaid expenses and other assets (235,986) (31,713) 2,790  59,149  (6,129) (25,521) 7,941  (15,113) (1,611) 7,926  25,482  (21,057) (42,158) (670) (47,178) 280  (1,008) (646) (7,325) 14,477  (8,340) (164) (15,233)
Accounts payable 1,456  412  14,285  (10,575) 15,864  (3,929) (24,145) 13,531  10,794  10,075  2,154  1,828  (7,122) 13,330  717  9,787  2,289  (23,478) (343) (7,992) 9,316  20,523  (23,556)
Accrued expenses 81,233  216,037  153,814  (82,818) 141,731  141,247  (27,279) 125,256  72,995  119,301  7,347  86,841  66,090  91,851  (10,465) 60,085  32,351  9,611  (34,196) 49,651  30,578  23,404  (50,621)
Other liabilities 266,742  (28,073) 57,808  15,138  (10,744) 9,066  24,537  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Changes in operating assets and liabilities 95,872  179,260  (22,425) (222,016) 135,042  83,094  (62,221) 83,185  80,082  61,451  13,302  33,894  (2,737) 53,588  (69,481) 41,971  33,069  (27,963) (49,147) 33,005  (42,685) 21,638  (97,908)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities 240,314  201,257  212,945  (137,226) 277,271  196,322  56,153  (1,210,518) 252,892  115,453  25,356  125,326  461,353  150,484  16,144  116,965  105,193  77,011  20,965  103,812  31,743  110,726  (23,532)
Net cash provided by (used in) operating activities 907,748  1,038,527  815,698  446,008  334,789  463,749  324,784  314,578  381,348  321,703  252,657  227,511  170,086  181,653  265,692  144,724  65,656  40,860  (15,137) 29,143  (62,073) (110,266) (222,236)
Purchases of available-for-sale debt securities (120,360) (51,312) (75,265) (155,457) (118,103) (135,421) (128,215) (102,551) (127,365) (163,349) (38,653) (100,928) (53,986) (129,394) (248,273) —  (146,548) (245,453) (224,624) (340,906) (166,480) —  (125,655)
Maturities of available-for-sale debt securities 39,024  85,250  60,145  100,779  146,438  121,589  107,118  123,170  137,378  76,663  94,365  122,065  78,267  70,489  98,393  222,183  203,063  201,143  131,173  262,855  62,863  370,302  371,423 
Sale of equity securities 21,721  55,838  72,036  94,936  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Payment to acquire business, net of cash acquired —  —  —  (908,388) (245,824) —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Expenditures for property and equipment (174,795) (17,864) (19,450) (16,761) (24,291) (16,358) (18,041) (15,721) (20,912) (29,612) (29,279) (42,604) (27,951) (17,707) (11,159) (14,788) (13,883) (15,918) (11,974) (12,527) (8,797) (13,420) (10,558)
Purchase of in-process research and development —  —  —  —  —  —  —  —  —  —  —  —  (160,000) —  —  —  —  —  —  —  —  —  — 
Investment in note receivable —  —  —  —  —  —  —  (15,000) —  —  —  —  —  —  —  (20,000) —  —  —  (30,000) —  —  — 
Investment in equity securities (13,527) —  (5,800) (12,100) (7,219) (20,000) —  (22,981) (38,990) —  (21,500) —  —  —  —  10,000  (20,000) (3,075) —  —  —  —  — 
Decrease in restricted cash due to deconsolidation of VIE —  —  —  —  —  —  —  (7,896) —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Increase (decrease) in restricted cash and cash equivalents (VIE) —  —  —  —  —  —  —  —  —  —  —  314  1,222  (20,063) 3,198  10,658  12,093  5,760  2,637  (3,145) 12,553  2,277  — 
Increase (decrease) in restricted cash and cash equivalents and other assets —  —  —  —  —  —  —  —  —  —  —  56  (8) 328  60  22,115  66  (239) 80  1,033  (1,074) (716) (21,172)
Payment for acquisition of variable interest entity —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  (80,000) — 
Other investing activities —  —  —  —  —  —  —  75  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Net cash (used in) provided by investing activities (247,937) 71,912  31,666  (896,991) (248,999) (50,190) (39,138) (40,904) (49,889) (116,298) 4,933  (21,097) (162,456) (96,347) (157,781) 230,168  34,791  (57,782) (102,708) (122,690) (100,935) 278,443  214,038 
Issuances of common stock under benefit plans 21,796  133,461  79,597  198,614  30,538  50,472  63,620  43,539  100,917  56,434  88,403  46,635  150,318  136,638  11,249  17,065  17,463  24,856  8,846  45,903  51,839  46,234  41,616 
Repurchases of common stock (108,007) —  (300,026) (36,062) (104) (56,010) (99,839) (143,005) (92,005) (105,033) (10,000) —  —  —  —  —  —  —  —  —  —  —  — 
Payments in connection with common stock withheld for employee tax obligations (40,528) (3,080) (136,167) —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Payments on finance leases (10,648) (10,443) (10,287) (10,306) (9,953) (9,541) (9,385) (8,730) (10,597) (4,730) (9,331) (4,736) (3,725) (6,055) (4,820) (4,343) (5,939) (3,603) (4,144) (3,539) (2,171) (10,037) (4,588)
Proceeds related to finance leases 2,809  —  5,833  9,044  —  1,002  —  7,857  3,417  —  9,566  29,966  4,700  —  —  9,178  2,030  —  —  10,276  —  —  13,386 
Payments on revolving credit facility —  —  —  —  —  —  —  —  —  —  —  —  —  —  (300,000) —  —  —  —  —  —  —  — 
Advance from collaborator 1,500  1,000  2,500  2,500  2,500  2,500  5,000  —  2,500  2,500  2,500  2,500  2,500  2,500  5,000  75,000  —  —  —  —  —  —  — 
Repayments of advanced funding (948) (913) (880) (1,550) (1,493) (1,438) (1,385) (1,313) (1,302) (1,230) (1,182) (1,134) (1,088) (1,050) (994) —  —  —  —  —  —  —  — 
Payments on senior secured term loan —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  (75,000) —  —  —  —  —  —  — 
Proceeds from revolving credit facility —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  74,965  —  —  —  —  —  —  — 
Payments of debt issuance costs —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  (3,103) —  —  —  —  —  —  — 
Other financing activities (6,658) —  —  (819) (1,132) —  —  606  (851) 851  (1,000) —  —  —  —  —  —  —  —  —  —  —  — 
Net cash provided by (used in) financing activities (140,684) 120,025  (359,430) 161,421  20,356  (13,015) (41,989) (101,046) 2,079  (51,208) 78,956  73,231  152,705  132,033  (289,565) 93,762  13,554  21,253  4,702  52,640  49,668  36,197  50,414 
Effect of changes in exchange rates on cash 6,158  3,272  (6,651) 5,652  (3,201) (430) (378) (1,426) (555) (5,857) 1,656  801  1,501  2,112  1,388  (4,401) (175) (2,710) 2,620  (575) (953) 1,290  (2,596)
Net increase (decrease) in cash and cash equivalents 525,285  1,233,736  481,283  (283,910) 102,945  400,114  243,279  171,202  332,983  148,340  338,202  280,446  161,836  219,451  (180,266) 464,253  113,826  1,621  (110,523) (41,482) (114,293) 205,664  39,620 

Based on: 10-Q (filing date: 2020-10-30), 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-30), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-03), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-04), 10-Q (filing date: 2015-05-04).

Cash flow statement item Description The company
Net cash provided by (used in) operating activities Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities. Vertex Pharmaceuticals Inc.’s net cash provided by (used in) operating activities increased from Q1 2020 to Q2 2020 but then slightly decreased from Q2 2020 to Q3 2020 not reaching Q1 2020 level.
Net cash (used in) provided by investing activities Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets. Vertex Pharmaceuticals Inc.’s net cash (used in) provided by investing activities increased from Q1 2020 to Q2 2020 but then decreased significantly from Q2 2020 to Q3 2020.
Net cash provided by (used in) financing activities Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit. Vertex Pharmaceuticals Inc.’s net cash provided by (used in) financing activities increased from Q1 2020 to Q2 2020 but then slightly decreased from Q2 2020 to Q3 2020 not reaching Q1 2020 level.