Lantheus Holdings, Inc. Reports Third Quarter 2018 Financial Results
- Worldwide revenues of
$88.9 million for the third quarter, an increase of 11.2% over the prior year period - Net income for the third quarter of
$9.3 million , or$0.24 per diluted share, an increase of 8.7% over the prior year period - EBITDA of
$20.0 million and Adjusted EBITDA of$26.1 million for the third quarter, an increase of 17.9% and 15.5% over the prior year period, respectively - Company reaffirms full-year revenue and updates Adjusted EBITDA guidance
The Company’s worldwide revenues for the third quarter of 2018 totaled
“We delivered double-digit growth in both DEFINITY and TechneLite in the
third quarter,” said
Outlook
The Company reaffirms its full-year 2018 worldwide revenue guidance
range 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 http://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 and will be archived for 30 days.
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 and its line components; EBITDA; 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.
This press release includes forward-looking non-GAAP guidance for 2018 Adjusted EBITDA. No reconciliation of this forward-looking non-GAAP guidance was included in this press release because, due to the high variability and difficulty in making accurate forecasts and projections of some of the excluded information and the fact that some of the excluded information is not readily ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measure without unreasonable efforts.
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 2018
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
Lantheus Holdings, Inc. |
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Consolidated Statements of Operations |
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(in thousands, except per share data – unaudited) |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenues | $ | 88,900 | $ | 79,941 | $ | 257,103 | $ | 250,137 | ||||||||
Cost of goods sold | 44,015 | 41,414 | 126,063 | 125,901 | ||||||||||||
Gross profit | 44,885 | 38,527 | 131,040 | 124,236 | ||||||||||||
Operating expenses | ||||||||||||||||
Sales and marketing | 10,478 | 10,075 | 33,248 | 31,892 | ||||||||||||
General and administrative | 13,609 | 12,076 | 37,727 | 35,549 | ||||||||||||
Research and development | 4,316 | 3,554 | 12,520 | 14,149 | ||||||||||||
Total operating expenses | 28,403 | 25,705 | 83,495 | 81,590 | ||||||||||||
Operating income | 16,482 | 12,822 | 47,545 | 42,646 | ||||||||||||
Interest expense | 4,446 | 4,442 | 12,794 | 14,147 | ||||||||||||
Loss on extinguishment of debt | — | — | — | 2,161 | ||||||||||||
Other income | (799 | ) | (908 | ) | (2,055 | ) | (2,037 | ) | ||||||||
Income before income taxes | 12,835 | 9,288 | 36,806 | 28,375 | ||||||||||||
Income tax expense | 3,566 | 762 | 9,581 | 2,116 | ||||||||||||
Net income | $ | 9,269 | $ | 8,526 | $ | 27,225 | $ | 26,259 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.24 | $ | 0.23 | $ | 0.71 | $ | 0.71 | ||||||||
Diluted | $ | 0.24 | $ | 0.22 | $ | 0.69 | $ | 0.67 | ||||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 38,342 | 37,393 | 38,155 | 37,174 | ||||||||||||
Diluted | 39,402 | 39,121 | 39,467 | 38,971 | ||||||||||||
Lantheus Holdings, Inc. |
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Consolidated Segment Revenues Analysis |
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(in thousands – unaudited) |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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2018 |
2017 |
Change |
2018 | 2017 | Change % |
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United States |
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DEFINITY | $ | 42,472 | $ | 36,901 | 15.1 | % | $ | 131,081 | $ | 113,035 | 16.0 | % | ||||||||||
TechneLite | 19,374 | 22,621 | (14.4 | )% | 56,780 | 69,150 | (17.9 | )% | ||||||||||||||
Xenon | 7,239 | 7,726 | (6.3 | )% | 22,805 | 23,709 | (3.8 | )% | ||||||||||||||
Other | 1,170 | 2,331 | (49.8 | )% | 5,163 | 12,812 | (59.7 | )% | ||||||||||||||
Total United States | 70,255 | 69,579 | 1.0 | % | 215,829 | 218,706 | (1.3 | )% | ||||||||||||||
International |
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DEFINITY | 1,283 | 828 | 55.0 | % | 3,427 | 2,534 | 35.2 | % | ||||||||||||||
TechneLite | 11,244 | 3,735 | 201.0 | % | 18,711 | 10,750 | 74.1 | % | ||||||||||||||
Xenon | — | — | — | % | — | 4 | (100.0 | )% | ||||||||||||||
Other | 6,118 | 5,799 | 5.5 | % | 19,136 | 18,143 | 5.5 | % | ||||||||||||||
Total International | 18,645 | 10,362 | 79.9 | % | 41,274 | 31,431 | 31.3 | % | ||||||||||||||
Worldwide |
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DEFINITY | 43,755 | 37,729 | 16.0 | % | 134,508 | 115,569 | 16.4 | % | ||||||||||||||
TechneLite | 30,618 | 26,356 | 16.2 | % | 75,491 | 79,900 | (5.5 | )% | ||||||||||||||
Xenon | 7,239 | 7,726 | (6.3 | )% | 22,805 | 23,713 | (3.8 | )% | ||||||||||||||
Other | 7,288 | 8,130 | (10.4 | )% | 24,299 | 30,955 | (21.5 | )% | ||||||||||||||
Total Revenues | $ | 88,900 | $ | 79,941 | 11.2 | % | $ | 257,103 | $ | 250,137 | 2.8 | % | ||||||||||
Lantheus Holdings, Inc. |
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Reconciliation of GAAP to Non-GAAP Financial Measures |
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(in thousands – unaudited) |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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2018 | 2017 | 2018 | 2017 | |||||||||||||
Operating income | $ | 16,482 | $ | 12,822 | $ | 47,545 | $ | 42,646 | ||||||||
Campus consolidation costs including depreciation | 84 | 797 | 1,154 | 5,779 | ||||||||||||
Offering and other costs | — | 73 | — | 602 | ||||||||||||
Non-recurring refinancing related fees | — | — | — | 1,721 | ||||||||||||
Adjusted operating income | $ | 16,566 | $ | 13,692 | $ | 48,699 | $ | 50,748 | ||||||||
Adjusted operating income, as a percentage of revenues | 18.6 | % | 17.1 | % | 18.9 | % | 20.3 | % | ||||||||
Lantheus Holdings, Inc. |
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Reconciliation of GAAP to Non-GAAP Financial Measures |
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(in thousands, except per share data – unaudited) |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income | $ | 9,269 | $ | 8,526 | $ | 27,225 | $ | 26,259 | ||||||||
Reconciling items impacting operating income: | ||||||||||||||||
Campus consolidation costs including depreciation | 84 | 797 | 1,154 | 5,779 | ||||||||||||
Offering and other costs | — | 73 | — | 602 | ||||||||||||
Non-recurring refinancing related fees | — | — | — | 1,721 | ||||||||||||
Reconciling items impacting non-operating expenses and income taxes: | ||||||||||||||||
Loss on debt extinguishment and retirement costs | — | — | — | 2,161 | ||||||||||||
Income tax effect of non-GAAP adjustments(a) (b) | (21 | ) | (220 | ) | (291 | ) | (2,591 | ) | ||||||||
Adjusted net income | $ | 9,332 | $ | 9,176 | $ | 28,088 | $ | 33,931 | ||||||||
Adjusted net income, as a percentage of revenues | 10.5 | % | 11.5 | % | 10.9 | % | 13.6 | % | ||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
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2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income per share - diluted | $ | 0.24 | $ | 0.22 | $ | 0.69 | $ | 0.67 | ||||||||
Reconciling items impacting operating income: | ||||||||||||||||
Campus consolidation costs including depreciation | — | 0.02 | 0.03 | 0.15 | ||||||||||||
Offering and other costs | — | — | — | 0.02 | ||||||||||||
Non-recurring refinancing related fees | — | — | — | 0.04 | ||||||||||||
Reconciling items impacting non-operating expenses and income taxes: | ||||||||||||||||
Loss on debt extinguishment and retirement costs | — | — | — | 0.06 | ||||||||||||
Tax effect of non-GAAP adjustments(a) (b) | — | (0.01 | ) | (0.01 | ) | (0.07 | ) | |||||||||
Adjusted net income per share - diluted | $ | 0.24 | $ | 0.23 | $ | 0.71 | $ | 0.87 | ||||||||
Weighted-average common shares outstanding - diluted | 39,402 | 39,121 | 39,467 | 38,971 | ||||||||||||
(a) The income tax effect of the adjustments between GAAP net income and non-GAAP adjusted net income takes into account the tax treatment and related tax rate that apply to each adjustment in the applicable tax jurisdiction.
(b) During the fourth quarter of 2017, we released the valuation allowance previously recorded against our domestic net deferred tax assets. As a result, we included the tax effect of non-GAAP adjustments starting in the fourth quarter of 2017. Presentation of 2017 Adjusted Net Income has been modified to allow better go-forward comparability by including the tax effect of non-GAAP reconciling items.
Lantheus Holdings, Inc. |
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Reconciliation of GAAP to Non-GAAP Financial Measures |
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(in thousands – unaudited) |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income | $ | 9,269 | $ | 8,526 | $ | 27,225 | $ | 26,259 | ||||||||
Interest expense, net | 4,428 | 4,437 | 12,761 | 14,134 | ||||||||||||
Income tax expense(a) | 2,875 | 272 | 7,361 | 646 | ||||||||||||
Depreciation | 1,805 | 2,102 | 5,533 | 10,066 | ||||||||||||
Amortization of intangible assets | 1,650 | 1,646 | 5,011 | 4,953 | ||||||||||||
EBITDA | 20,027 | 16,983 | 57,891 | 56,058 | ||||||||||||
Stock and incentive plan compensation | 2,639 | 1,933 | 7,015 | 4,735 | ||||||||||||
Asset write-off (b) | 1,254 | 911 | 3,273 | 2,184 | ||||||||||||
Severance and recruiting costs (c) | 1,776 | 666 | 2,227 | 1,033 | ||||||||||||
Offering and other costs (d) | — | 73 | — | 602 | ||||||||||||
Campus consolidation costs | 84 | 408 | 1,154 | 1,101 | ||||||||||||
Debt refinancing costs | — | — | — | 1,721 | ||||||||||||
Extinguishment of debt and debt retirement costs | — | — | — | 2,161 | ||||||||||||
New manufacturer costs (e) | 334 | 1,639 | 1,301 | 3,616 | ||||||||||||
Adjusted EBITDA | $ | 26,114 | $ | 22,613 | $ | 72,861 | $ | 73,211 | ||||||||
Adjusted EBITDA, as a percentage of revenues | 29.4 | % | 28.3 | % | 28.3 | % | 29.3 | % | ||||||||
(a) Represents income tax expense, less tax indemnification income
associated with
(b) Represents non-cash losses incurred associated with inventory and other write-offs 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. |
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Reconciliation of Free Cash Flow |
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(in thousands – unaudited) |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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2018 | 2017 | 2018 | 2017 | |||||||||||||
Net cash provided by operating activities | $ | 24,277 | $ | 15,600 | $ | 43,887 | $ | 41,691 | ||||||||
Capital expenditures | (5,005 | ) | (3,288 | ) | (12,766 | ) | (11,589 | ) | ||||||||
Free cash flow | $ | 19,272 | $ | 12,312 | $ | 31,121 | $ | 30,102 | ||||||||
Lantheus Holdings, Inc. |
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Condensed Consolidated Balance Sheets |
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(in thousands – unaudited) |
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September 30, 2018 |
December 31, 2017 |
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Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 104,584 | $ | 76,290 | |||
Accounts receivable, net | 47,135 | 40,259 | |||||
Inventory | 34,572 | 26,080 | |||||
Other current assets | 4,669 | 5,221 | |||||
Total current assets | 190,960 | 147,850 | |||||
Property, plant & equipment, net | 99,407 | 92,999 | |||||
Intangibles, net | 9,727 | 11,798 | |||||
Goodwill | 15,714 | 15,714 | |||||
Deferred tax assets, net | 79,358 | 87,010 | |||||
Other long-term assets | 29,652 | 28,487 | |||||
Total assets | $ | 424,818 | $ | 383,858 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities | |||||||
Current portion of long-term debt | $ | 2,750 | $ | 2,750 | |||
Revolving line of credit | — | — | |||||
Accounts payable | 20,363 | 17,464 | |||||
Accrued expenses and other liabilities | 31,464 | 26,536 | |||||
Total current liabilities | 54,577 | 46,750 | |||||
Asset retirement obligations | 11,282 | 10,412 | |||||
Long-term debt, net | 264,130 | 265,393 | |||||
Other long-term liabilities | 39,321 | 38,012 | |||||
Total liabilities | 369,310 | 360,567 | |||||
Total stockholders’ equity | 55,508 | 23,291 | |||||
Total liabilities and stockholders’ equity | $ | 424,818 | $ | 383,858 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20181030006000/en/
Source:
Lantheus Holdings, Inc.
Meara Murphy, 978-671-8508
Director,
Investor Relations and Corporate Communications