Lantheus Holdings, Inc. Reports 2017 First Quarter Financial Results; Exceeds First Quarter and Raises Full-Year 2017 Guidance
- Posts Q1 revenue of
$81.4 million , net income of$4.1 million and Adjusted EBITDA of$22.7 million - DEFINITY® worldwide revenue increases 20% over prior year period
- Completion of debt refinancing enhances capital structure
The Company’s worldwide revenues for the first quarter of 2017 totaled
Net income for the first quarter of 2017 totaled
The Company’s first quarter 2017 Adjusted EBITDA (as defined below in
the GAAP to non-GAAP reconciliation) was
“2017 is off to a strong start,” commented
Outlook
The Company has increased its full-year 2017 worldwide revenue guidance
range to
The Company has also increased its full-year 2017 guidance range for
Adjusted EBITDA, as described in the GAAP to non-GAAP reconciliation
provided later in this release, to
The guidance for both revenue and Adjusted EBITDA excludes the impact of
The Company’s guidance for worldwide revenues and Adjusted EBITDA are forward-looking statements. They are subject to various risks and uncertainties that could cause the Company’s actual results to differ materially from guidance. Forward-looking statements are not predictions of the Company’s actual performance. See the cautionary information about forward-looking statements in the “Safe-Harbor Statement” section of this press release.
Internet Posting of Information
The Company routinely posts information that may be important to investors in the “Investors” section of its website at www.lantheus.com. The Company encourages investors and potential investors to consult its website regularly for important information about the Company.
Conference Call and Webcast
As previously announced, the Company will host a conference call
starting at
A replay of the audio webcast will be available in the Investors section
of our website at www.lantheus.com
approximately two hours after completion of the call through
The conference call will include a discussion of non-GAAP financial
measures. Reference is made to the most directly comparable GAAP
financial measures, the reconciliation of the differences between the
two financial measures, and the other information included in this press
release, our Form 8-K filed with the
The conference call may include forward-looking statements. See the cautionary information about forward-looking statements in the safe-harbor section of this press release.
About
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, such as revenues excluding the impact of foreign currency; adjusted operating income; adjusted net income; Adjusted EBITDA; adjusted net income per share - diluted; and free cash flow. The Company’s management believes that the presentation of these measures provides useful information to investors. These measures may assist investors in evaluating the Company’s operations, period over period. The measures may exclude such items which may be highly variable, difficult to predict and of a size that could have substantial impact on the Company’s reported results of operations for a period. Management uses these and other non-GAAP measures internally for evaluation of the performance of the business, including the allocation of resources and the evaluation of results relative to employee performance compensation targets. Investors should consider these non-GAAP measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP.
Safe Harbor for Forward-Looking and Cautionary Statements
This press release contains “forward-looking statements” as defined
under U.S. federal securities laws, including statements about our 2017
outlook.. Forward-looking statements may be identified by their use of
terms such as anticipate, believe, confident, could, estimate, expect,
intend, may, plan, predict, project, target, will and other similar
terms. Such forward-looking statements are subject to risks and
uncertainties that could cause actual results to materially differ from
those described in the forward- looking statements. Readers are
cautioned not to place undue reliance on the forward-looking statements
contained herein, which speak only as of the date hereof. The Company
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future developments
or otherwise, except as may be required by law. Risks and uncertainties
that could cause our actual results to materially differ from those
described in the forward-looking statements are discussed in our filings
with the
– Tables Follow –
Lantheus Holdings, Inc. Consolidated Statements of Operations (in thousands, except share and per share data – unaudited) |
||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2017 | 2016 | |||||||||||
Revenues | $ | 81,359 | $ | 76,474 | ||||||||
Cost of goods sold | 41,597 | 42,773 | ||||||||||
Gross profit | 39,762 | 33,701 | ||||||||||
Operating expenses | ||||||||||||
Sales and marketing | 10,214 | 9,307 | ||||||||||
General and administrative | 12,270 | 9,513 | ||||||||||
Research and development | 5,351 | 3,036 | ||||||||||
Total operating expenses | 27,835 | 21,856 | ||||||||||
Gain on sale of assets | — | 5,828 | ||||||||||
Operating income | 11,927 | 17,673 | ||||||||||
Interest expense | (5,420 | ) | (7,024 | ) | ||||||||
Loss on extinguishment of debt | (2,161 | ) | — | |||||||||
Other income | 577 | 64 | ||||||||||
Income before income taxes | 4,923 | 10,713 | ||||||||||
Provision for income taxes | 785 | 390 | ||||||||||
Net income | $ | 4,138 | $ | 10,323 | ||||||||
Net income per common share outstanding: | ||||||||||||
Basic | $ | 0.11 | $ | 0.34 | ||||||||
Diluted | $ | 0.11 | $ | 0.34 | ||||||||
Weighted-average common shares: | ||||||||||||
Basic | 36,888,718 | 30,368,240 | ||||||||||
Diluted | 38,601,356 | 30,372,691 | ||||||||||
Lantheus Holdings, Inc. Consolidated Segment Revenues Analysis (in thousands – unaudited) |
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Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2017 | 2016 | % Change | ||||||||||||||
United States |
||||||||||||||||
DEFINITY | $ | 36,923 | $ | 30,793 | 19.9 | % | ||||||||||
TechneLite | 23,308 | 21,733 | 7.2 | % | ||||||||||||
Xenon | 8,058 | 8,172 | (1.4 | )% | ||||||||||||
Other | 2,738 | 4,235 | (35.3 | )% | ||||||||||||
Total United States | 71,027 | 64,933 | 9.4 | % | ||||||||||||
International |
||||||||||||||||
DEFINITY | 789 | 629 | 25.4 | % | ||||||||||||
TechneLite | 3,517 | 3,103 | 13.3 | % | ||||||||||||
Xenon | 2 | 2 | — | |||||||||||||
Other | 6,024 | 7,807 | (22.8 | )% | ||||||||||||
Total International | 10,332 | 11,541 | (10.5 | )% | ||||||||||||
Worldwide |
||||||||||||||||
DEFINITY | 37,712 | 31,422 | 20.0 | % | ||||||||||||
TechneLite | 26,825 | 24,836 | 8.0 | % | ||||||||||||
Xenon | 8,060 | 8,174 | (1.4 | )% | ||||||||||||
Other | 8,762 | 12,042 | (27.2 | )% | ||||||||||||
Total Revenues | $ | 81,359 | $ | 76,474 | 6.4 | % | ||||||||||
Lantheus Holdings, Inc. Supplemental Revenue Information (unaudited) |
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March 31, 2017 | ||||||||||||||||||||||||||
Quarter to Date Sales Growth/(Decline) | ||||||||||||||||||||||||||
Domestic As |
Int’l |
Int’l As |
Total |
Total As |
||||||||||||||||||||||
Products |
||||||||||||||||||||||||||
DEFINITY | 19.9 | % | 21.6 | % | 25.4 | % | 19.9 | % | 20.0 | % | ||||||||||||||||
TechneLite | 7.2 | % | 9.8 | % | 13.3 | % | 7.6 | % | 8.0 | % | ||||||||||||||||
Xenon | (1.4 | )% | — | — | (1.4 | )% | (1.4 | )% | ||||||||||||||||||
Other | (35.3 | )% | (23.5 | )% | (22.8 | )% | (27.7 | )% | (27.2 | )% | ||||||||||||||||
Total Revenues | 9.4 | % | (12.1 | )% | (10.5 | )% | 6.1 | % | 6.4 | % | ||||||||||||||||
Lantheus Holdings, Inc. Reconciliation of Revenues to Revenues Excluding the Impact of Foreign Currency (in thousands – unaudited) |
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Three Months Ended | |||||||||||
March 31, 2017 | |||||||||||
International |
Total |
||||||||||
Revenues | $ | 10,332 | $ | 81,359 | |||||||
Currency impact as compared to prior period | (183 | ) | (183 | ) | |||||||
Revenues, excluding the impact of foreign currency | $ | 10,149 | $ | 81,176 | |||||||
Lantheus Holdings, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands – unaudited) |
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Three Months Ended | ||||||||||
March 31, | ||||||||||
2017 | 2016 | |||||||||
Operating income | $ | 11,927 | $ | 17,673 | ||||||
Reconciling items impacting operating income: | ||||||||||
Campus consolidation costs | 2,541 | — | ||||||||
Offering and other costs | 178 | — | ||||||||
Non-recurring refinancing related fees | 1,695 | — | ||||||||
Gain on sale of assets | — | (5,828) | ||||||||
Adjusted operating income | $ | 16,341 | $ | 11,845 | ||||||
Adjusted operating income, as a percentage revenues | 20.1% | 15.5% | ||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
2017 | 2016 | |||||||||
Net income | $ | 4,138 | $ | 10,323 | ||||||
Reconciling items impacting gross profit: | ||||||||||
Campus consolidation costs | — | — | ||||||||
Reconciling items impacting operating expenses: | ||||||||||
Campus consolidation costs | 2,541 | — | ||||||||
Offering and other costs | 178 | — | ||||||||
Debt refinancing costs | 1,695 | — | ||||||||
Gain on sale of assets | — | (5,828) | ||||||||
Reconciling items impacting non-operating expenses: | ||||||||||
Loss on debt extinguishment | 2,161 | — | ||||||||
Adjusted net income | $ | 10,713 | $ | 4,495 | ||||||
Adjusted net income, as a percentage of revenues | 13.2% | 5.9% | ||||||||
Lantheus Holdings, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) |
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Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2017 | 2016 | |||||||||||
Net income per share - diluted | $ | 0.11 | $ | 0.34 | ||||||||
Reconciling items impacting gross profit: | ||||||||||||
Campus consolidation costs | $ | — | $ | — | ||||||||
Reconciling items impacting operating expenses: | ||||||||||||
Campus consolidation costs | $ | 0.07 | $ | — | ||||||||
Offering and other costs | $ | — | $ | — | ||||||||
Debt refinancing costs | $ | 0.04 | $ | — | ||||||||
Gain on sale of assets | $ | — | $ | (0.19 | ) | |||||||
Reconciling items impacting non-operating expenses: | ||||||||||||
Loss on debt extinguishment | $ | 0.06 | $ | — | ||||||||
Adjusted net income per share - diluted | $ | 0.28 | $ | 0.15 | ||||||||
Weighted-average common shares outstanding – diluted | 38,601,356 | 30,372,691 |
Lantheus Holdings, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands – unaudited) |
||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2017 | 2016 | |||||||||||
Net income | $ | 4,138 | $ | 10,323 | ||||||||
Interest expense, net | 5,417 | 7,018 | ||||||||||
Provision for income taxes(a) | 296 | 94 | ||||||||||
Depreciation | 4,514 | 2,566 | ||||||||||
Amortization of intangible assets | 1,646 | 1,547 | ||||||||||
EBITDA | 16,011 | 21,548 | ||||||||||
Stock and incentive plan compensation | 1,292 | 572 | ||||||||||
Legal fees relating to business interruption claim | — | 4 | ||||||||||
Asset write-off(b) | 312 | 497 | ||||||||||
Severance and recruiting costs(c) | 139 | 669 | ||||||||||
Offering and other costs(d) | 178 | — | ||||||||||
Campus consolidation costs | 27 | — | ||||||||||
Debt refinancing costs | 1,695 | — | ||||||||||
Extinguishment of debt | 2,161 | — | ||||||||||
Gain on sales of assets | — | (5,828 | ) | |||||||||
New manufacturer costs(e) | 836 | 900 | ||||||||||
Adjusted EBITDA | $ | 22,651 | $ | 18,362 | ||||||||
Adjusted EBITDA, as a percentage of revenues | 27.8 | % | 24.0 | % | ||||||||
(a) Represents provision for income taxes, less tax indemnification
associated with BMS.
(b) Represents non-cash losses incurred
associated with the write-down of inventory and write-off of long-lived
assets.
(c) The amounts consist of severance and recruitment costs
related to employees, executives and directors.
(d) Represents
offering costs incurred on behalf of certain shareholders pursuant to a
registration rights agreement and other non-recurring costs.
(e)
Represents internal and external costs associated with establishing new
manufacturing sources for our commercial and clinical candidate products.
Lantheus Holdings, Inc. Reconciliation of Free Cash Flow (in thousands – unaudited) |
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Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2017 | 2016 | |||||||||||
Cash provided by operating activities | $ | 5,524 | $ | 3,780 | ||||||||
Capital expenditures | (4,899 | ) | (1,652 | ) | ||||||||
Free cash flow | $ | 625 | $ | 2,128 |
Lantheus Holdings, Inc. Condensed Consolidated Balance Sheets (in thousands – unaudited) |
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March 31, | December 31, | ||||||||||
2017 | 2016 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 40,882 | $ | 51,178 | |||||||
Accounts receivable, net | 39,927 | 36,818 | |||||||||
Inventory | 19,790 | 17,640 | |||||||||
Other current assets | 6,084 | 5,183 | |||||||||
Total current assets | 106,683 | 110,819 | |||||||||
Property, plant & equipment, net | 92,086 | 94,187 | |||||||||
Intangibles, net | 14,288 | 15,118 | |||||||||
Goodwill | 15,714 | 15,714 | |||||||||
Other long-term assets | 20,792 | 20,060 | |||||||||
Total assets | $ | 249,563 | $ | 255,898 | |||||||
Liabilities and Stockholders’ Deficit | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | 2,750 | $ | 3,650 | |||||||
Revolving line of credit | — | — | |||||||||
Accounts payable | 17,566 | 18,940 | |||||||||
Accrued expenses and other liabilities | 18,814 | 21,249 | |||||||||
Total current liabilities | 39,130 | 43,839 | |||||||||
Asset retirement obligations | 9,630 | 9,370 | |||||||||
Long-term debt, net | 266,335 | 274,460 | |||||||||
Other long-term liabilities | 35,628 | 34,745 | |||||||||
Total liabilities | 350,723 | 362,414 | |||||||||
Stockholders’ deficit | (101,160 | ) | (106,516 | ) | |||||||
Total liabilities and stockholders’ deficit | $ | 249,563 | $ | 255,898 | |||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170502006645/en/
Source:
Lantheus Holdings, Inc.
Investors
Gary
Santo, 978-671-8960
Head of Capital Markets and Investor Relations
or
Media
Meara
Murphy, 978-671-8508
Director, Investor Relations and Corporate
Communications