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Lantheus Holdings, Inc. Reports First Quarter 2020 Financial Results

  • Worldwide revenue of $90.7 million for the first quarter 2020, representing an increase of 4.8% over the prior year period
  • Net income of $3.3 million for the first quarter 2020, representing a decrease of 66.5% from the prior year period
  • GAAP diluted EPS of $0.08 for the first quarter 2020, representing a decrease of 66.7% from the prior year period; adjusted diluted EPS of $0.36 for the first quarter 2020, representing an increase of 26.1% over the prior year period
  • Net cash provided by operating activities was $9.4 million for the first quarter 2020. Free cash flow of $6.7 million for the first quarter 2020
  • Due to uncertain COVID-19 impact, 2020 guidance withdrawn

NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Apr. 30, 2020-- Lantheus Holdings, Inc. (the “Company”) (NASDAQ: LNTH), parent company of Lantheus Medical Imaging, Inc. (“LMI”), a global leader in the development, manufacture and commercialization of innovative diagnostic imaging agents and products, today reported financial results for its first quarter ended March 31, 2020.

The Company’s worldwide revenue for the first quarter of 2020 totaled $90.7 million, compared with $86.5 million for the first quarter of 2019, representing an increase of 4.8% over the prior year period.

The Company’s first quarter 2020 net income was $3.3 million, or $0.08 per fully diluted share, as compared to $9.9 million, or $0.25 per fully diluted share for the first quarter of 2019, representing a decrease of 66.7% from the prior year period.

The Company’s first quarter 2020 adjusted fully diluted earnings per share were $0.36, as compared to $0.28 for the first quarter of 2019, representing an increase of 26.1% over the prior year period.

Lastly, net cash provided by operating activities was $9.4 million for the first quarter 2020. Free Cash Flow was $6.7 million for the first quarter of 2020, representing an increase of approximately $6.8 million.

“First and foremost, Lantheus is proud to serve the life sciences sector and we want to thank healthcare workers everywhere for their extraordinary commitment in these unprecedented times,” said Mary Anne Heino, President and CEO of Lantheus. “Although our first quarter started with robust customer demand, by mid-March our business began to experience the effects of the COVID-19 pandemic, including the impact of stay-at-home mandates and related safety measures such as the delay of elective medical procedures. Despite this, we were still able to achieve revenues near the top end of our guidance and exceeded that for adjusted earnings per share. Although we cannot predict the magnitude or duration of the pandemic’s impact, with our available liquidity and prudent expense management, including previously announced work week and salary reductions, we maintain a state of preparedness to resume full business activities to support our customers as business conditions allow.”

Outlook

On April 9, 2020, the Company withdrew full year 2020 revenue, revenue growth, and adjusted fully diluted earnings per share guidance as a result of the continued uncertainties surrounding the scope and duration of the COVID-19 pandemic. Due to these uncertainties, and uncertain timing of global recovery and economic normalization, Lantheus is unable to provide guidance as to the overall impacts on its operations and financial results.

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 on Thursday, April 30, 2020 at 8:00 a.m. ET. To access the live conference call via telephone, please dial 1-866-498-8390 (U.S. callers) or 1-678-509-7599 (international callers) and provide passcode 8385228. A live audio webcast of the call also will be available in the Investors section of the Company’s website at www.lantheus.com.

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 SEC today, or otherwise available in the Investor Relations section of our website located at www.lantheus.com.

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 Lantheus Holdings, Inc. and Lantheus Medical Imaging, Inc.

Lantheus Holdings, Inc. is the parent company of LMI, a global leader in the development, manufacture and commercialization of innovative diagnostic imaging agents and products. LMI provides a broad portfolio of products, including the echocardiography contrast agent DEFINITY® Vial for (Perflutren Lipid Microsphere) Injectable Suspension and TechneLite® (Technetium Tc99m Generator), a technetium-based generator that provides the essential medical isotope used in nuclear medicine procedures. The Company is headquartered in North Billerica, Massachusetts with offices in Puerto Rico and Canada. For more information, visit www.lantheus.com.

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures, such as adjusted net income and its line components; adjusted net income per share - fully 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. However, these measures may exclude items that may be highly variable, difficult to predict and of a size that could have a substantial impact on the Company’s reported results of operations for a particular 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 2020 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 include our future operating results, the impact of the COVID-19 pandemic on our business, financial condition and prospects, our ability to complete our acquisition of Progenics Pharmaceuticals and realize the expected benefits on the anticipated timeline or at all, the outcome of our clinical programs, as well as the risk and uncertainties discussed in our filings with the Securities and Exchange Commission (including those described in the Risk Factors section in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q).

Lantheus Holdings, Inc.

Consolidated Statements of Operations

(in thousands, except per share data – unaudited)

 

 

 

Three Months Ended
March 31,

 

 

2020

 

2019

Revenues

 

$

90,704

 

 

$

86,510

 

Cost of goods sold

 

52,702

 

 

42,426

 

Gross profit

 

38,002

 

 

44,084

 

Operating expenses

 

 

 

 

Sales and marketing

 

10,130

 

 

10,397

 

General and administrative

 

16,699

 

 

12,589

 

Research and development

 

4,048

 

 

4,929

 

Total operating expenses

 

30,877

 

 

27,915

 

Operating income

 

7,125

 

 

16,169

 

Interest expense

 

1,946

 

 

4,592

 

Other income

 

(350

)

 

(1,187

)

Income before income taxes

 

5,529

 

 

12,764

 

Income tax expense

 

2,192

 

 

2,815

 

Net income

 

$

3,337

 

 

$

9,949

 

Net income per common share:

 

 

 

 

Basic

 

$

0.08

 

 

$

0.26

 

Diluted

 

$

0.08

 

 

$

0.25

 

Weighted-average common shares outstanding:

 

 

 

 

Basic

 

39,433

 

 

38,603

 

Diluted

 

40,102

 

 

39,787

Lantheus Holdings, Inc.

Consolidated Segment Revenues Analysis

(in thousands – unaudited)

 

 

Three Months Ended
March 31,

 

2020

2019

% Change

United States

 

 

 

 

 

DEFINITY

$

55,010

 

 

$

49,716

 

 

10.6

%

TechneLite

19,356

 

 

20,058

 

 

(3.5

)%

Other nuclear

9,062

 

 

9,524

 

 

(4.9

)%

Rebates and allowances

(4,683

)

 

(3,864

)

 

21.2

%

Total United States

78,745

 

 

75,434

 

 

4.4

%

International

 

 

 

 

 

DEFINITY

1,781

 

 

1,395

 

 

27.7

%

TechneLite

3,742

 

 

4,087

 

 

(8.4

)%

Other nuclear

6,438

 

 

5,596

 

 

15.0

%

Rebates and allowances

(2

)

 

(2

)

 

%

Total International

11,959

 

 

11,076

 

 

8.0

%

Worldwide

 

 

 

 

 

DEFINITY

56,791

 

 

51,111

 

 

11.1

%

TechneLite

23,098

 

 

24,145

 

 

(4.3

)%

Other nuclear

15,500

 

 

15,120

 

 

2.5

%

Rebates and allowances

(4,685

)

 

(3,866

)

 

21.2

%

Total Revenues

$

90,704

 

 

$

86,510

 

 

4.8

%

Lantheus Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except per share data – unaudited)

 

 

 

Three Months Ended
March 31,

 

 

2020

 

2019

Net income

 

$

3,337

 

 

$

9,949

 

Stock and incentive plan compensation

 

3,075

 

 

2,781

 

Amortization of acquired intangible assets

 

392

 

 

451

 

Integration costs

 

2,372

 

 

 

Acquisition-related costs

 

1,412

 

 

 

Impairment of long-lived assets

 

7,275

 

 

 

Other

 

(75

)

 

 

Income tax effect of non-GAAP adjustments(a)

 

(3,506

)

 

(1,943

)

Adjusted net income

 

$

14,282

 

 

$

11,238

 

Adjusted net income, as a percentage of revenues

 

15.7

%

 

13.0

%

 

 

Three Months Ended
March 31,

 

 

2020

 

2019

Net income per share - diluted

 

$

0.08

 

 

$

0.25

 

Stock and incentive plan compensation

 

0.08

 

 

0.07

 

Amortization of acquired intangible assets

 

0.01

 

 

0.01

 

Integration costs

 

0.06

 

 

 

Acquisition-related costs

 

0.04

 

 

 

Impairment of long-lived assets

 

0.18

 

 

 

Other

 

 

 

 

Income tax effect of non-GAAP adjustments(a)

 

(0.09

)

 

(0.05

)

Adjusted net income per share - diluted

 

$

0.36

 

 

$

0.28

 

Weighted-average common shares outstanding - diluted

 

40,102

 

 

39,787

 

(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.

Lantheus Holdings, Inc.

Reconciliation of Free Cash Flow

(in thousands – unaudited)

 

 

Three Months Ended
March 31,

 

2020

 

2019

Net cash provided by operating activities

$

9,408

 

 

$

10,468

 

Capital expenditures

(2,698

)

 

(10,550

)

Free cash flow

$

6,710

 

 

$

(82

)

Lantheus Holdings, Inc.

Condensed Consolidated Balance Sheets

(in thousands – unaudited)

 

 

March 31,
2020

 

December 31,
2019

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

95,713

 

 

$

92,919

 

Accounts receivable, net

44,883

 

 

43,529

 

Inventory

30,814

 

 

29,180

 

Other current assets

8,967

 

 

7,283

 

Total current assets

180,377

 

 

172,911

 

Property, plant and equipment, net

108,613

 

 

116,497

 

Intangibles, net

6,930

 

 

7,336

 

Goodwill

15,714

 

 

15,714

 

Deferred tax assets, net

70,454

 

 

71,834

 

Other long-term assets

22,037

 

 

21,627

 

Total assets

$

404,125

 

 

$

405,919

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities

 

 

 

Current portion of long-term debt and other borrowings

$

10,143

 

 

$

10,143

 

Accounts payable

18,980

 

 

18,608

 

Accrued expenses and other liabilities

32,836

 

 

37,360

 

Total current liabilities

61,959

 

 

66,111

 

Asset retirement obligations

13,243

 

 

12,883

 

Long-term debt, net and other borrowings

181,488

 

 

183,927

 

Other long-term liabilities

29,037

 

 

28,397

 

Total liabilities

285,727

 

 

291,318

 

Total stockholders’ equity

118,398

 

 

114,601

 

Total liabilities and stockholders’ equity

$

404,125

 

 

$

405,919

 

Mark Kinarney
Director, Investor Relations
978-671-8842
ir@lantheus.com

Source: Lantheus Holdings, Inc.