Lantheus Holdings, Inc. Reports 2017 Third Quarter Financial Results; Exceeds Third Quarter and Raises Full-Year 2017 Guidance
- Posts Q3 revenue of
$79.9 million , up 9.4% from prior year; net income of$8.5 million and Adjusted EBITDA of$22.6 million - DEFINITY® worldwide revenues increase 15.7% over prior year period
The Company’s worldwide revenues for the third quarter of 2017 totaled
Net income for the third quarter of 2017 totaled
The Company’s third quarter 2017 Adjusted EBITDA (as outlined in the
GAAP to non-GAAP reconciliation provided below) was
“With revenue up
Outlook
The Company has increased its full-year 2017 worldwide revenue guidance
range to
The full-year guidance for both revenue and Adjusted EBITDA excludes the
impact of a
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 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; 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. |
|||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Revenues | $ | 79,941 | $ | 73,063 | $ | 250,137 | $ | 227,503 | |||||||||
Cost of goods sold | 41,414 | 39,382 | 125,901 | 124,370 | |||||||||||||
Gross profit | 38,527 | 33,681 | 124,236 | 103,133 | |||||||||||||
Operating expenses | |||||||||||||||||
Sales and marketing | 10,075 | 8,706 | 31,892 | 27,856 | |||||||||||||
General and administrative | 12,076 | 10,091 | 35,549 | 28,842 | |||||||||||||
Research and development | 3,554 | 2,849 | 14,149 | 8,493 | |||||||||||||
Total operating expenses | 25,705 | 21,646 | 81,590 | 65,191 | |||||||||||||
Gain on sales of assets | — | (560 | ) | — | (6,505 | ) | |||||||||||
Operating income | 12,822 | 12,595 | 42,646 | 44,447 | |||||||||||||
Interest expense | 4,442 | 6,792 | 14,147 | 20,799 | |||||||||||||
Debt retirement costs |
|
— | 1,415 | — | 1,415 | ||||||||||||
Loss on extinguishment of debt | — | — | 2,161 | — | |||||||||||||
Other (income) expense | (908 | ) | 148 | (2,037 | ) | (317 | ) | ||||||||||
Income before income taxes | 9,288 | 4,240 | 28,375 | 22,550 | |||||||||||||
Provision for income taxes | 762 | 20 | 2,116 | 657 | |||||||||||||
Net income | $ | 8,526 | $ | 4,220 | $ | 26,259 | $ | 21,893 | |||||||||
Net income per common share outstanding: | |||||||||||||||||
Basic | $ | 0.23 | $ | 0.14 | $ | 0.71 | $ | 0.71 | |||||||||
Diluted | $ | 0.22 | $ | 0.13 | $ | 0.67 | $ | 0.71 | |||||||||
Weighted-average common shares outstanding: | |||||||||||||||||
Basic | 37,393 | 31,221 | 37,174 | 30,658 | |||||||||||||
Diluted | 39,121 | 32,402 | 38,971 | 31,049 | |||||||||||||
Lantheus Holdings, Inc. |
|||||||||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||||||||
United States |
|||||||||||||||||||||||
DEFINITY | $ | 36,901 | $ | 32,007 | 15.3 | % | $ | 113,035 | $ | 95,497 | 18.4 | % | |||||||||||
TechneLite | 22,621 | 20,906 | 8.2 | % | 69,150 | 64,282 | 7.6 | % | |||||||||||||||
Xenon | 7,726 | 6,675 | 15.7 | % | 23,709 | 21,620 | 9.7 | % | |||||||||||||||
Other | 2,331 | 3,033 | (23.1 | )% | 12,812 | 11,288 | 13.5 | % | |||||||||||||||
Total United States | 69,579 | 62,621 | 11.1 | % | 218,706 | 192,687 | 13.5 | % | |||||||||||||||
International |
|||||||||||||||||||||||
DEFINITY | 828 | 597 | 38.7 | % | 2,534 | 2,002 | 26.6 | % | |||||||||||||||
TechneLite | 3,735 | 3,627 | 3.0 | % | 10,750 | 10,339 | 4.0 | % | |||||||||||||||
Xenon | — | 2 | (100.0 | )% | 4 | 5 | (20.0 | )% | |||||||||||||||
Other | 5,799 | 6,216 | (6.7 | )% | 18,143 | 22,470 | (19.3 | )% | |||||||||||||||
Total International | 10,362 | 10,442 | (0.8 | )% | 31,431 | 34,816 | (9.7 | )% | |||||||||||||||
Worldwide |
|||||||||||||||||||||||
DEFINITY | 37,729 | 32,604 | 15.7 | % | 115,569 | 97,499 | 18.5 | % | |||||||||||||||
TechneLite | 26,356 | 24,533 | 7.4 | % | 79,900 | 74,621 | 7.1 | % | |||||||||||||||
Xenon | 7,726 | 6,677 | 15.7 | % | 23,713 | 21,625 | 9.7 | % | |||||||||||||||
Other | 8,130 | 9,249 | (12.1 | )% | 30,955 | 33,758 | (8.3 | )% | |||||||||||||||
Total Revenues | $ | 79,941 | $ | 73,063 | 9.4 | % | $ | 250,137 | $ | 227,503 | 9.9 | % | |||||||||||
Lantheus Holdings, Inc. |
||||||||||||||||
September 30, 2017 Quarter to Date Sales Growth/(Decline) |
||||||||||||||||
Domestic As Reported |
Int'l Constant Currency |
Int'l As Reported |
Total Constant Currency |
Total As Reported |
||||||||||||
Products | ||||||||||||||||
DEFINITY | 15.3 | % | 34.3 | % | 38.7 | % | 15.6 | % | 15.7 | % | ||||||
TechneLite | 8.2 | % | (0.1 | )% | 3.0 | % | 7.0 | % | 7.4 | % | ||||||
Xenon | 15.7 | % | (100.0 | )% | (100.0 | )% | 15.7 | % | 15.7 | % | ||||||
Other | (23.1 | )% | (6.0 | )% | (6.7 | )% | (11.7 | )% | (12.1 | )% | ||||||
Total Revenues | 11.1 | % | (1.7 | )% | (0.8 | )% | 9.3 | % | 9.4 | % | ||||||
September 30, 2017 | ||||||||||||||||
Year to Date Sales Growth/(Decline) | ||||||||||||||||
Domestic As Reported |
Int'l Constant Currency |
Int'l As Reported |
Total Constant Currency |
Total As Reported |
||||||||||||
Products | ||||||||||||||||
DEFINITY | 18.4 | % | 25.5 | % | 26.6 | % | 18.5 | % | 18.5 | % | ||||||
TechneLite | 7.6 | % | 3.1 | % | 4.0 | % | 7.0 | % | 7.1 | % | ||||||
Xenon | 9.7 | % | (20.0 | )% | (20.0 | )% | 9.7 | % | 9.7 | % | ||||||
Other | 13.5 | % | (19.1 | )% | (19.3 | )% | (8.2 | )% | (8.3 | )% | ||||||
Total Revenues | 13.5 | % | (9.9 | )% | (9.7 | )% | 9.9 | % | 9.9 | % | ||||||
Lantheus Holdings, Inc. |
|||||||||||||||||
Three Months Ended September 30, 2017 |
Nine Months Ended September 30, 2017 |
||||||||||||||||
International |
Total |
International |
Total |
||||||||||||||
Revenues | $ | 10,362 | $ | 79,941 | $ | 31,431 | $ | 250,137 | |||||||||
Currency impact as compared to prior period | (96 | ) | (96 | ) | (73 | ) | (73 | ) | |||||||||
Revenues, excluding the impact of foreign currency | $ | 10,266 | $ | 79,845 | $ | 31,358 | $ | 250,064 | |||||||||
Lantheus Holdings, Inc. |
|||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Operating income | $ | 12,822 | $ | 12,595 | $ | 42,646 | $ | 44,447 | |||||||||
Reconciling items impacting operating income: | |||||||||||||||||
Campus consolidation costs including depreciation | 797 | — | 5,779 | — | |||||||||||||
Offering and other costs | 73 | — | 602 | — | |||||||||||||
Non-recurring refinancing related fees | — | — | 1,721 | — | |||||||||||||
Gain on sale of assets | — | (560 | ) | — | (6,505 | ) | |||||||||||
Adjusted operating income | $ | 13,692 | $ | 12,035 | $ | 50,748 | $ | 37,942 | |||||||||
Adjusted operating income, as a percentage of revenues |
17.1 | % | 16.5 | % | 20.3 | % | 16.7 | % | |||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Net income | $ | 8,526 | $ | 4,220 | $ | 26,259 | $ | 21,893 | |||||||||
Reconciling items impacting operating expenses: | |||||||||||||||||
Campus consolidation costs including depreciation | 797 | — | 5,779 | — | |||||||||||||
Offering and other costs | 73 | — | 602 | — | |||||||||||||
Non-recurring refinancing related fees | — | — | 1,721 | — | |||||||||||||
Gain on sale of assets | — | (560 | ) | — | (6,505 | ) | |||||||||||
Reconciling items impacting non-operating expenses: | |||||||||||||||||
Loss on debt extinguishment and retirement costs | — | 1,415 | 2,161 | 1,415 | |||||||||||||
Adjusted net income | $ | 9,396 | $ | 5,075 | $ | 36,522 | $ | 16,803 | |||||||||
Adjusted net income, as a percentage of revenues | 11.8 | % | 6.9 | % | 14.6 | % | 7.4 | % | |||||||||
Lantheus Holdings, Inc. |
|||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Net income per share - diluted | $ | 0.22 | $ | 0.13 | $ | 0.67 | $ | 0.71 | |||||||||
Reconciling items impacting operating expenses: | |||||||||||||||||
Campus consolidation costs including depreciation | $ | 0.02 | $ | — | $ | 0.15 | $ | — | |||||||||
Offering and other costs | $ | — | $ | — | $ | 0.02 | $ | — | |||||||||
Non-recurring refinancing related fees | $ | — | $ | — | $ | 0.04 | $ | — | |||||||||
Gain on sale of assets | $ | — | $ | (0.02 | ) | $ | — | $ | (0.21 | ) | |||||||
Reconciling items impacting non-operating expenses: | |||||||||||||||||
Loss on debt extinguishment and retirement costs | $ | — | $ | 0.04 | $ | 0.06 | $ | 0.05 | |||||||||
Adjusted net income per share - diluted | $ | 0.24 | $ | 0.15 | $ | 0.94 | $ | 0.55 | |||||||||
Weighted-average common shares outstanding - diluted | 39,121 | 32,402 | 38,971 | 31,049 | |||||||||||||
Lantheus Holdings, Inc. |
|||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Net income | $ | 8,526 | $ | 4,220 | $ | 26,259 | $ | 21,893 | |||||||||
Interest expense, net | 4,437 | 6,786 | 14,134 | 20,782 | |||||||||||||
Provision for income taxes (a) | 272 | (176 | ) | 646 | 25 | ||||||||||||
Depreciation | 2,102 | 2,157 | 10,066 | 6,386 | |||||||||||||
Amortization of intangible assets | 1,646 | 2,083 | 4,953 | 6,278 | |||||||||||||
EBITDA | 16,983 | 15,070 | 56,058 | 55,364 | |||||||||||||
Stock and incentive plan compensation | 1,933 | 1,248 | 4,735 | 2,736 | |||||||||||||
Asset write-off (b) | 911 | 242 | 2,184 | 1,088 | |||||||||||||
Severance and recruiting costs (c) | 666 | 455 | 1,033 | 1,886 | |||||||||||||
Offering and other costs(d) | 73 | — | 602 | 9 | |||||||||||||
Campus consolidation costs | 408 | — | 1,101 | — | |||||||||||||
Debt refinancing costs | — | — | 1,721 | — | |||||||||||||
Extinguishment of debt and debt retirement costs | — | 1,415 | 2,161 | 1,415 | |||||||||||||
Gain on sales of assets | — | (560 | ) | — | (6,505 | ) | |||||||||||
New manufacturer costs (e) | 1,639 | 805 | 3,616 | 2,451 | |||||||||||||
Adjusted EBITDA | $ | 22,613 | $ | 18,675 | $ | 73,211 | $ | 58,444 | |||||||||
Adjusted EBITDA, as a percentage of revenues | 28.3 | % | 25.6 | % | 29.3 | % | 25.7 | % | |||||||||
(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. |
|||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Net cash provided by operating activities | $ | 15,600 | $ | 15,446 | $ | 41,691 | $ | 36,861 | |||||||||
Capital expenditures | (3,288 | ) | (2,588 | ) | (11,589 | ) | (4,976 | ) | |||||||||
Free cash flow | $ | 12,312 | $ | 12,858 | $ | 30,102 | $ | 31,885 | |||||||||
Lantheus Holdings, Inc. |
|||||||||
September 30, 2017 |
December 31, 2016 |
||||||||
Assets | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 68,077 | $ | 51,178 | |||||
Accounts receivable, net | 41,713 | 36,818 | |||||||
Inventory | 23,032 | 17,640 | |||||||
Other current assets | 3,789 | 5,183 | |||||||
Total current assets |
136,611 | 110,819 | |||||||
Property, plant & equipment, net | 94,516 | 94,187 | |||||||
Intangibles, net | 12,645 | 15,118 | |||||||
Goodwill | 15,714 | 15,714 | |||||||
Other long-term assets | 21,535 | 20,060 | |||||||
Total assets | $ | 281,021 | $ | 255,898 | |||||
Liabilities and Stockholders’ Deficit | |||||||||
Current liabilities | |||||||||
Current portion of long-term debt | $ | 2,750 | $ | 3,650 | |||||
Revolving line of credit | — | — | |||||||
Accounts payable | 18,756 | 18,940 | |||||||
Accrued expenses and other liabilities | 24,581 | 21,249 | |||||||
Total current liabilities | 46,087 | 43,839 | |||||||
Asset retirement obligations | 10,151 | 9,370 | |||||||
Long-term debt, net | 265,523 | 274,460 | |||||||
Other long-term liabilities | 37,176 | 34,745 | |||||||
Total liabilities | 358,937 | 362,414 | |||||||
Stockholders’ deficit | (77,916 | ) | (106,516 | ) | |||||
Total liabilities and stockholders’ deficit | $ | 281,021 | $ | 255,898 | |||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20171102006396/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