Lantheus Holdings, Inc. Reports 2015 Third Quarter Financial Results
Third quarter worldwide DEFINITY® revenue increased 19% as-reported and 20% in constant currency
Worldwide revenue for the third quarter of 2015 totaled
The Company’s third quarter 2015 net income totaled
The Company’s third quarter 2015 Adjusted EBITDA, as defined in the GAAP
to non-GAAP reconciliation provided later in this release, increased to
Ms. Heino continued, “Overall, DEFINITY’s growing contribution combined with continued gross margin improvement and operating expense management has significantly expanded our operating and Adjusted EBITDA margins since last year, driving those margins to 18% and 26%, respectively, of reported revenue for the third quarter. Altogether, we are very pleased with our third quarter results and look forward to the remainder of this year and beyond, as we continue to focus on strengthening our operating model and enhancing our ability to meet and exceed the needs of our customers.”
Outlook
The Company anticipates worldwide revenue for full-year 2015 of
approximately
The Company continues to anticipate full-year 2015 Adjusted EBITDA, as
described in the GAAP to non-GAAP reconciliation provided later in this
release, of
The Company’s revenue and Adjusted EBITDA targets exclude the effect of possible future acquisitions or divestitures, other material future business developments and the adjustments of earnings as-reported to as-adjusted that are set forth in the GAAP to non-GAAP reconciliations provided later in this release.
The Company’s guidance for worldwide revenue 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 the anticipated targets. The anticipated targets 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 “Investor Relations” 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 telephone conference call and audio webcast will be
available from approximately
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 net sales excluding the impact of foreign currency; operating income, as adjusted; net income, as adjusted; Adjusted EBITDA; net income, as adjusted, per diluted share; Adjusted EBITDA per diluted share; 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 2015
outlook. These statements reflect management’s current knowledge,
assumptions, beliefs, estimates and expectations and express
management’s current view of future performance, results and trends. 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. and subsidiaries | ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share data – unaudited) |
||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues | $ | 74,123 | $ | 75,682 | $ | 222,260 | $ | 224,631 | ||||||||
Cost of goods sold | 40,418 | 44,044 | 120,119 | 131,873 | ||||||||||||
Gross profit | 33,705 | 31,638 | 102,141 | 92,758 | ||||||||||||
Operating expenses | ||||||||||||||||
Sales and marketing expenses | 8,633 | 8,327 | 26,934 | 27,227 | ||||||||||||
General and administrative expenses | 9,206 | 11,041 | 33,773 | 28,883 | ||||||||||||
Research and development expenses | 2,458 | 3,049 | 11,292 | 8,958 | ||||||||||||
Total operating expenses | 20,297 | 22,417 | 71,999 | 65,068 | ||||||||||||
Operating income | 13,408 | 9,221 | 30,142 | 27,690 | ||||||||||||
Interest expense, net | (7,100 | ) | (10,585 | ) | (31,599 | ) | (31,704 | ) | ||||||||
Loss on extinguishment of debt | — | — | (15,528 | ) | — | |||||||||||
Other income (expense), net | (183 | ) | 441 | 234 | (148 | ) | ||||||||||
Income (loss) before income taxes | 6,125 | (923 | ) | (16,751 | ) | (4,162 | ) | |||||||||
Provision (benefit) for income taxes | 739 | (56 | ) | 1,911 | (374 | ) | ||||||||||
Net income (loss) | $ | 5,386 | $ | (867 | ) | $ | (18,662 | ) | $ | (3,788 | ) | |||||
Net income (loss) per common share | ||||||||||||||||
Basic and diluted | $ | 0.18 | $ | (0.05 | ) | $ | (0.83 | ) | $ | (0.21 | ) | |||||
Common shares | ||||||||||||||||
Basic | 30,359,516 | 18,080,968 | 22,443,257 | 18,080,496 | ||||||||||||
Diluted | 30,761,771 | 18,080,968 | 22,443,257 | 18,080,496 | ||||||||||||
Lantheus Holdings, Inc. and subsidiaries | ||||||||||||||||||
Consolidated Revenue Analysis | ||||||||||||||||||
(dollars in thousands – unaudited) |
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Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2015 | 2014 | % change | 2015 | 2014 | % change | |||||||||||||
U.S. | ||||||||||||||||||
DEFINITY | 28,323 | 23,764 | 19.2 | % | 81,333 | 68,768 | 18.3 | % | ||||||||||
TechneLite | 14,557 | 20,879 | (30.3 | )% | 47,367 | 61,602 | (23.1 | )% | ||||||||||
Xenon | 12,713 | 8,914 | 42.6 | % | 37,937 | 27,519 | 37.9 | % | ||||||||||
Other | 3,619 | 5,872 | (38.4 | )% | 11,620 | 16,919 | (31.3 | )% | ||||||||||
Total U.S. | $ | 59,212 | $ | 59,429 | (0.4 | )% | $ | 178,257 | $ | 174,808 | 2.0 | % | ||||||
International | ||||||||||||||||||
DEFINITY | 560 | 497 | 12.7 | % | 1,644 | 1,368 | 20.2 | % | ||||||||||
TechneLite | 2,666 | 2,733 | (2.5 | )% | 8,078 | 8,576 | (5.8 | )% | ||||||||||
Xenon | 10 | 2 | 400.0 | % | 28 | 6 | 366.7 | % | ||||||||||
Other | 11,675 | 13,021 | (10.3 | )% | 34,253 | 39,873 | (14.1 | )% | ||||||||||
Total International | $ | 14,911 | $ | 16,253 | (8.3 | )% | $ | 44,003 | $ | 49,823 | (11.7 | )% | ||||||
Worldwide | ||||||||||||||||||
DEFINITY | 28,883 | 24,261 | 19.1 | % | 82,977 | 70,136 | 18.3 | % | ||||||||||
TechneLite | 17,223 | 23,612 | (27.1 | )% | 55,445 | 70,178 | (21.0 | )% | ||||||||||
Xenon | 12,723 | 8,916 | 42.7 | % | 37,965 | 27,525 | 37.9 | % | ||||||||||
Other | 15,294 | 18,893 | (19.0 | )% | 45,873 | 56,792 | (19.2 | )% | ||||||||||
Total Revenues | $ | 74,123 | $ | 75,682 | (2.1 | )% | $ | 222,260 | $ | 224,631 | (1.1 | )% | ||||||
Lantheus Holdings, Inc. and subsidiaries | ||||||||||
Supplemental Revenue Information | ||||||||||
(unaudited) | ||||||||||
September 30, 2015 Quarter to Date Sales Growth/(Decline) | ||||||||||
Domestic As |
Int’l Constant |
Int’l As |
Total Constant |
Total As |
||||||
Products | ||||||||||
DEFINITY | 19% | 37% | 13% | 20% | 19% | |||||
TechneLite | (30)% | 13% | (2)% | (25)% | (27)% | |||||
Xenon | 43% | 450% | 400% | 43% | 43% | |||||
Other | (38)% | 3% | (10)% | (10)% | (19)% | |||||
Total Revenues | 0% | 6% | (8)% | 1% | (2)% | |||||
September 30, 2015 Year to Date Sales Growth/(Decline) | ||||||||||
Domestic As |
Int’l Constant |
Int’l As |
Total Constant |
Total As |
||||||
Products | ||||||||||
DEFINITY | 18% | 39% | 20% | 19% | 18% | |||||
TechneLite | (23)% | 5% | (6)% | (20)% | (21)% | |||||
Xenon | 38% | 433% | 367% | 38% | 38% | |||||
Other | (31)% | (4)% | (14)% | (12)% | (19)% | |||||
Total Revenues | 2% | (1)% | (12)% | 1% | (1)% | |||||
Lantheus Holdings, Inc. and subsidiaries | ||||||||||||
Reconciliation of Revenues to Revenues Excluding the Impact of Foreign Currency |
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(dollars in thousands – unaudited) |
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Three Months Ended September 30, 2015 | Nine Months Ended September 30, 2015 | |||||||||||
International Net Sales | Total Net Sales | International Net Sales | Total Net Sales | |||||||||
Net sales, as reported | $ | 14,911 | $ | 74,123 | $ | 44,003 | $ | 222,260 | ||||
Currency impact as compared to prior period | 2,282 | 2,282 | 5,180 | 5,180 | ||||||||
Net sales, excluding the impact of foreign currency | $ | 17,193 | $ | 76,405 | $ | 49,183 | $ | 227,440 | ||||
Lantheus Holdings, Inc. and subsidiaries | ||||||||||||||||
Reconciliations of As Reported Results to Non-GAAP Financial Measures | ||||||||||||||||
(in thousands, except per share data – unaudited) |
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Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Operating Income | ||||||||||||||||
Operating Income, as reported | $ | 13,408 | $ | 9,221 | $ | 30,142 | $ | 27,690 | ||||||||
Reconciling items impacting | ||||||||||||||||
Operating Income: | ||||||||||||||||
Campus Consolidation Costs | — | — | 3,630 | — | ||||||||||||
Sponsor Termination Costs | — | — | 6,527 | — | ||||||||||||
Operating income, as adjusted | $ | 13,408 | $ | 9,221 | $ | 40,299 | $ | 27,690 | ||||||||
Operating Income, as adjusted, as a percentage of net sales | 18.1 | % | 12.2 | % | 18.1 | % | 12.3 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net income (loss) | ||||||||||||||||
Net income (loss), as reported | $ | 5,386 | $ | (867 | ) | $ | (18,662 | ) | $ | (3,788 | ) | |||||
Reconciling items impacting | ||||||||||||||||
Gross Profit: | ||||||||||||||||
Campus Consolidation Costs | — | — | 77 | — | ||||||||||||
Reconciling items impacting | ||||||||||||||||
Operating Expenses: | ||||||||||||||||
Campus Consolidation Costs | — | — | 3,553 | — | ||||||||||||
Sponsor Termination Costs | — | — | 6,527 | — | ||||||||||||
Reconciling items impacting | ||||||||||||||||
Non-operating Expenses: | ||||||||||||||||
Loss on Debt Extinguishment | — | — | 15,528 | — | ||||||||||||
Interest Upon Redemption of Senior Notes | — | — | 3,250 | — | ||||||||||||
Net income (loss), as adjusted | $ | 5,386 | $ | (867 | ) | $ | 10,273 | $ | (3,788 | ) | ||||||
Net income (loss), as adjusted, as a percentage of net sales | 7.3 | % | (1.1 | )% | 4.6 | % | (1.7 | )% | ||||||||
Net income (loss), as adjusted, per common share | ||||||||||||||||
Basic | $ | 0.18 | $ | (0.05 | ) | $ | 0.46 | $ | (0.21 | ) | ||||||
Diluted | $ | 0.18 | $ | (0.05 | ) | $ | 0.45 | $ | (0.21 | ) | ||||||
Common shares | ||||||||||||||||
Basic | 30,359,516 | 18,080,968 | 22,443,257 | 18,080,496 | ||||||||||||
Diluted | 30,761,771 | 18,080,968 | 22,730,167 | 18,080,496 | ||||||||||||
Lantheus Holdings, Inc. and subsidiaries | ||||||||||||||||
Reconciliation of As Reported Results to Non-GAAP Financial Measures | ||||||||||||||||
(dollars in thousands – unaudited) |
||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
EBITDA | ||||||||||||||||
Net income (loss), as reported | $ | 5,386 | $ | (867 | ) | $ | (18,662 | ) | $ | (3,788 | ) | |||||
Interest expense, net | 7,100 | 10,585 | 31,599 | 31,704 | ||||||||||||
Provision (benefit) for income taxes | 300 | (415 | ) | 695 | (536 | ) | ||||||||||
Depreciation | 1,940 | 2,163 | 9,649 | 6,514 | ||||||||||||
Amortization of intangible assets | 1,888 | 2,275 | 5,678 | 6,848 | ||||||||||||
EBITDA | 16,614 | 13,741 | 28,959 | 40,742 | ||||||||||||
Reconciling items impacting | ||||||||||||||||
EBITDA: | ||||||||||||||||
Non-cash stock-based compensation |
591 | 247 | 1,524 | 782 | ||||||||||||
Legal fees relating to business interruption claim |
4 | 462 | 67 | 927 | ||||||||||||
Asset write-off | 631 | 639 | 1,182 | 1,150 | ||||||||||||
Severance and recruiting costs | 634 | 211 | 853 | 512 | ||||||||||||
Sponsor fee and other | 22 | 2,582 | 7,340 | 3,091 | ||||||||||||
Extinguishment of debt | — | — | 15,528 | — | ||||||||||||
New manufacturer costs | 953 | 1,175 | 2,568 | 4,188 | ||||||||||||
Adjusted EBITDA | $ | 19,449 | $ | 19,057 | $ | 58,021 | $ | 51,392 | ||||||||
Adjusted EBITDA as a percentage of net sales |
26.2 | % | 25.2 | % | 26.1 | % | 22.9 | % | ||||||||
Lantheus Holdings, Inc. and subsidiaries | ||||||||||||||||
Reconciliation of Free Cash Flow | ||||||||||||||||
(dollars in thousands – unaudited) |
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Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||||
Net cash provided by operating activities | $ | 5,417 | $ | 20,513 | $ | 9,136 | $ | 15,465 | ||||||||
Capital expenditures | (2,307 | ) | (1,823 | ) | (8,419 | ) | (5,303 | ) | ||||||||
Free cash flow | $ | 3,110 | $ | 18,690 | $ | 717 | $ | 10,162 | ||||||||
Lantheus Holdings, Inc. and subsidiaries | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(dollars in thousands – unaudited) |
||||||||
September 30, 2015 | December 31, 2014 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 21,922 | $ | 19,739 | ||||
Accounts receivable, net | 39,724 | 41,540 | ||||||
Inventory | 16,579 | 15,582 | ||||||
Other current assets | 5,210 | 4,374 | ||||||
Total current assets | 83,435 | 81,235 | ||||||
Property, plant and equipment, net | 92,393 | 96,014 | ||||||
Capitalized software development costs, net | 1,981 | 2,421 | ||||||
Intangibles, net | 22,489 | 27,191 | ||||||
Goodwill | 15,714 | 15,714 | ||||||
Other long-term assets | 20,120 | 20,578 | ||||||
Total assets | $ | 236,132 | $ | 243,153 | ||||
Liabilities and stockholders' deficit | ||||||||
Current liabilities | ||||||||
Line of credit | $ | — | $ | 8,000 | ||||
Accounts payable | 10,700 | 15,665 | ||||||
Accrued expenses and other liabilities | 19,968 | 24,863 | ||||||
Current portion of long-term debt | 3,650 | — | ||||||
Total current liabilities | 34,318 | 48,528 | ||||||
Asset retirement obligation | 8,074 | 7,435 | ||||||
Long-term debt, net | 350,367 | 392,863 | ||||||
Other long-term liabilities | 33,518 | 33,597 | ||||||
Total liabilities | 426,277 | 482,423 | ||||||
Stockholders' deficit | (190,145 | ) | (239,270 | ) | ||||
Total liabilities and stockholders' deficit | $ | 236,132 | $ | 243,153 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20151104006609/en/
Source:
Lantheus Holdings, Inc.
Investor Relations
John
Bakewell, 978-436-7073
or
Media Relations
Meara
Murphy, 978-671-8508