Lantheus Holdings, Inc. Reports 2015 Second Quarter Financial Results
Second quarter worldwide DEFINITY® revenue increases 21% as-reported and in constant currency
Second quarter Adjusted EBITDA increases 10% to
Worldwide revenue for the second quarter of 2015 totaled
The Company’s second quarter 2015 GAAP net loss totaled
The Company’s second quarter 2015 net income, as adjusted for the above
items, totaled
The Company’s second quarter 2015 Adjusted EBITDA, as defined in the
GAAP to non-GAAP reconciliation provided later in this release,
increased by 10% to
Mr. Bailey continued, “Additionally, as a result of our recent initial
public offering and the concurrent refinancing of our senior notes, we
now benefit from reduced total leverage and considerably lower borrowing
costs. Going forward, we expect to benefit from approximately
Outlook
The Company anticipates worldwide revenue for full-year 2015 of
approximately
The Company anticipates full-year 2015 Adjusted EBITDA, as described in
the GAAP to non-GAAP reconciliation provided later in this release, of
The Company’s Adjusted EBITDA target excludes the effect of possible future acquisitions, other material unanticipated 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 may 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
LMI has more than 500 employees worldwide with headquarters in
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 | ||||||||||||
(dollars in thousands, except share data—unaudited) |
||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Revenues | $ | 73,314 | $ | 75,613 | $ | 148,137 | $ | 148,949 | ||||
Cost of goods sold | 40,647 | 44,554 | 79,701 | 87,829 | ||||||||
Gross profit | 32,667 | 31,059 | 68,436 | 61,120 | ||||||||
Operating expenses | ||||||||||||
Sales and marketing expenses | 9,229 | 9,402 | 18,301 | 18,900 | ||||||||
General and administrative expenses | 15,444 | 8,990 | 24,567 | 17,842 | ||||||||
Research and development expenses | 2,638 | 2,687 | 8,834 | 5,909 | ||||||||
Total operating expenses | 27,311 | 21,079 | 51,702 | 42,651 | ||||||||
Operating income | 5,356 | 9,980 | 16,734 | 18,469 | ||||||||
Interest expense, net | (13,876) | (10,567) | (24,499) | (21,119) | ||||||||
Loss on extinguishment of debt | (15,528) | — | (15,528) | — | ||||||||
Other income (expense), net | 800 | (175) | 417 | (589) | ||||||||
Loss before income taxes | (23,248) | (762) | (22,876) | (3,239) | ||||||||
Provision (benefit) for income taxes | 1,175 | 874 | 1,172 | (318) | ||||||||
Net loss | $ | (24,423) | $ | (1,636) | $ | (24,048) | $ | (2,921) | ||||
Net loss per common share | ||||||||||||
Basic and diluted | $ | (1.29) | $ | (0.09) | $ | (1.30) | $ | (0.16) | ||||
Common shares | ||||||||||||
Basic and diluted | 18,898,003 | 18,080,944 | 18,489,451 | 18,080,256 | ||||||||
Lantheus Holdings, Inc. and subsidiaries | ||||||||||||||||
Consolidated Revenue Analysis |
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(dollars in thousands—unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2015 | 2014 | % change | 2015 | 2014 | % change | |||||||||||
U.S. | ||||||||||||||||
DEFINITY | 27,828 | 23,019 | 20.9% | 53,010 | 45,003 | 17.8% | ||||||||||
TechneLite | 14,637 | 20,624 | (29.0)% | 32,810 | 40,723 | (19.4)% | ||||||||||
Xenon | 12,038 | 8,899 | 35.3% | 25,224 | 18,605 | 35.6% | ||||||||||
Other | 3,875 | 6,026 | (35.7)% | 8,001 | 11,048 | (27.6)% | ||||||||||
Total U.S. | $ | 58,378 | $ | 58,568 | (0.3)% | $ | 119,045 | $ | 115,379 | 3.2% | ||||||
International | ||||||||||||||||
DEFINITY | 600 | 497 | 20.7% | 1,084 | 871 | 24.5% | ||||||||||
TechneLite | 2,725 | 2,901 | (6.1)% | 5,411 | 5,843 | (7.4)% | ||||||||||
Xenon | 10 | — | 100.0% | 19 | 4 | 375.0% | ||||||||||
Other | 11,601 | 13,647 | (15.0)% | 22,578 | 26,852 | (15.9)% | ||||||||||
Total International | $ | 14,936 | $ | 17,045 | (12.4)% | $ | 29,092 | $ | 33,570 | (13.3)% | ||||||
Worldwide | ||||||||||||||||
DEFINITY | 28,428 | 23,516 | 20.9% | 54,094 | 45,874 | 17.9% | ||||||||||
TechneLite | 17,362 | 23,525 | (26.2)% | 38,221 | 46,566 | (17.9)% | ||||||||||
Xenon | 12,048 | 8,899 | 35.4% | 25,243 | 18,609 | 35.6% | ||||||||||
Other | 15,476 | 19,673 | (21.3)% | 30,579 | 37,900 | (19.3)% | ||||||||||
Total Revenues | $ | 73,314 | $ | 75,613 | (3.0)% | $ | 148,137 | $ | 148,949 | (0.5)% | ||||||
Lantheus Holdings, Inc. and subsidiaries | ||||||||||
Supplemental Revenue Information |
||||||||||
(unaudited) | ||||||||||
June 30, 2015 Quarter to Date Sales Growth/(Decline) | ||||||||||
Domestic As |
Int’l Constant |
Int’l As |
Total Constant |
Total As |
||||||
Products | ||||||||||
DEFINITY | 21% | 37% | 21% | 21% | 21% | |||||
TechneLite | (29)% | 3% | (6)% | (25)% | (26)% | |||||
Xenon | 35% | 100% | 100% | 35% | 35% | |||||
Other | (36)% | (6)% | (15)% | (15)% | (21)% | |||||
Total Revenues | 0% | (3)% | (12)% | (1)% | (3)% | |||||
June 30, 2015 Year to Date Sales Growth/(Decline) | ||||||||||
Domestic As |
Int’l Constant |
Int’l As |
Total Constant |
Total As |
||||||
Products | ||||||||||
DEFINITY | 18% | 41% | 24% | 18% | 18% | |||||
TechneLite | (19)% | 2% | (7)% | (17)% | (18)% | |||||
Xenon | 36% | 425% | 375% | 36% | 36% | |||||
Other | (28)% | (8)% | (16)% | (13)% | 19% | |||||
Total Revenues | 3% | (5)% | (13)% | 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) | ||||||||||||
Three Months Ended June 30, 2015 | Six Months Ended June 30, 2015 | |||||||||||
International Net Sales | Total Net Sales | International Net Sales | Total Net Sales | |||||||||
Net sales, as reported | $ | 14,936 | $ | 73,314 | $ | 29,092 | $ | 148,137 | ||||
Currency impact as compared to prior period | 1,592 | 1,592 | 2,899 | 2,899 | ||||||||
Net sales, excluding the impact of foreign currency | $ | 16,528 | $ | 74,906 | $ | 31,991 | $ | 151,036 | ||||
Lantheus Holdings, Inc. and subsidiaries |
||||||||||||
Reconciliations of As Reported Results to Non-GAAP Financial Measures |
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(dollars in thousands – unaudited) |
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Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Operating Income | ||||||||||||
Operating Income, as reported | $ | 5,356 | $ | 9,980 | $ | 16,734 | $ | 18,469 | ||||
Reconciling items impacting | ||||||||||||
Operating Income: | ||||||||||||
Campus Consolidation Costs | — | — | 3,630 | — | ||||||||
Sponsor Termination Costs | 6,527 | — | 6,527 | — | ||||||||
Operating income, as adjusted | $ | 11,883 | $ | 9,980 | $ | 26,891 | $ | 18,469 | ||||
Operating Income, as adjusted, as a percentage of net sales | 16.2% | 13.2% | 18.2% | 12.4% | ||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Net loss | ||||||||||||
Net loss, as reported | $ | (24,423) | $ | (1,636) | $ | (24,048) | $ | (2,921) | ||||
Reconciling items impacting | ||||||||||||
Gross Profit: | ||||||||||||
Campus Consolidation Costs | — | — | 77 | — | ||||||||
Reconciling items impacting | ||||||||||||
Operating Expenses: | ||||||||||||
Campus Consolidation Costs | — | — | 3,553 | — | ||||||||
Sponsor Termination Costs | 6,527 | — | 6,527 | — | ||||||||
Reconciling items impacting | ||||||||||||
Non-operating Expenses: | ||||||||||||
Loss on Debt Extinguishment | 15,528 | — | 15,528 | — | ||||||||
Interest Upon Redemption of Senior Notes | 3,250 | — | 3,250 | — | ||||||||
Net income (loss), as adjusted | $ | 882 | $ | (1,636) | $ | 4,887 | $ | (2,921) | ||||
Net income (loss), as adjusted, as a percentage of net sales | 1.2% | (2.2)% | 3.3% | (2.0)% | ||||||||
Net income (loss), as adjusted, per common share | ||||||||||||
Basic | $ | 0.05 | $ | (0.09) | $ | 0.26 | $ | (0.16) | ||||
Diluted | $ | 0.05 | $ | (0.09) | $ | 0.26 | $ | (0.16) | ||||
Common shares | ||||||||||||
Basic | 18,898,003 | 18,080,944 | 18,489,451 | 18,080,256 | ||||||||
Diluted | 19,259,161 | 18,080,944 | 18,843,094 | 18,080,256 | ||||||||
Lantheus Holdings, Inc. and subsidiaries | ||||||||||||
Reconciliation of As Reported Results to Non-GAAP Financial Measures | ||||||||||||
(dollars in thousands – unaudited) |
||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
EBITDA | ||||||||||||
Net loss, as reported | $ | (24,423) | $ | (1,636) | $ | (24,048) | $ | (2,921) | ||||
Interest expense, net | 13,876 | 10,567 | 24,499 | 21,119 | ||||||||
Provision (benefit) for income taxes | 394 | 896 | 395 | (121) | ||||||||
Depreciation | 2,021 | 2,137 | 7,709 | 4,351 | ||||||||
Amortization of intangible assets | 1,894 | 2,271 | 3,790 | 4,573 | ||||||||
EBITDA | (6,238) | 14,235 | 12,345 | 27,001 | ||||||||
Reconciling items impacting | ||||||||||||
EBITDA: | ||||||||||||
Non-cash stock-based compensation |
656 | 251 | 933 | 535 | ||||||||
Legal fees relating to business interruption claim |
46 | 231 | 63 | 465 | ||||||||
Asset write-off | 371 | 91 | 551 | 511 | ||||||||
Severance and recruiting costs | 122 | 216 | 219 | 301 | ||||||||
Sponsor fee and other | 6,747 | 258 | 7,318 | 509 | ||||||||
Extinguishment of debt | 15,528 | — | 15,528 | — | ||||||||
New manufacturer costs | 753 | 1,035 | 1,615 | 3,013 | ||||||||
Adjusted EBITDA | $ | 17,985 | $ | 16,317 | $ | 38,572 | $ | 32,335 | ||||
Adjusted EBITDA as a percentage of net sales |
24.5% | 21.6% | 26.0% | 21.7% | ||||||||
Lantheus Holdings, Inc. and subsidiaries | ||||||||||||
Reconciliation of Free Cash Flow | ||||||||||||
(dollars in thousands—unaudited) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | |||||||||
Net cash used in operating activities | $ | (11,438) | $ | (4,988) | $ | 3,719 | $ | (5,048) | ||||
Capital expenditures | (2,614) | (1,998) | (6,112) | (3,480) | ||||||||
Free cash flow | $ | (14,052) | $ | (6,986) | $ | (2,393) | $ | (8,528) | ||||
Lantheus Holdings, Inc. and subsidiaries | ||||||
Condensed Consolidated Balance Sheets | ||||||
(dollars in thousands—unaudited) | ||||||
June 30, 2015 | December 31, 2014 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 22,200 | $ | 19,739 | ||
Accounts receivable, net | 36,817 | 41,540 | ||||
Inventory | 15,396 | 15,582 | ||||
Other current assets | 4,577 | 4,374 | ||||
Total current assets | 78,990 | 81,235 | ||||
Property, plant and equipment, net | 92,867 | 96,014 | ||||
Capitalized software development costs, net | 2,099 | 2,421 | ||||
Intangibles, net | 24,099 | 27,191 | ||||
Goodwill | 15,714 | 15,714 | ||||
Other long-term assets | 19,781 | 20,578 | ||||
Total assets | $ | 233,550 | $ | 243,153 | ||
Liabilities and stockholder’s deficit | ||||||
Current liabilities: | ||||||
Line of credit | $ | — | $ | 8,000 | ||
Accounts payable | 14,203 | 15,665 | ||||
Accrued expenses and other liabilities | 19,692 | 24,863 | ||||
Current portion of long-term debt | 3,650 | — | ||||
Total current liabilities | 37,545 | 48,528 | ||||
Asset retirement obligation | 7,861 | 7,435 | ||||
Long-term debt, net | 350,927 | 392,863 | ||||
Other long-term liabilities | 32,799 | 33,597 | ||||
Total liabilities | 429,132 | 482,423 | ||||
Stockholder’s deficit | (195,582) | (239,270) | ||||
Total liabilities and stockholder’s deficit | $ | 233,550 | $ | 243,153 | ||
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Source:
Lantheus Holdings, Inc.
Investor Relations
John
Bakewell, 978-436-7073
or
Media Relations
Meara
Murphy, 978-671-8508