2018 Investor Presentation

Lantheus Holdings, Inc. Reports First Quarter 2022 Financial Results

April 29, 2022 at 7:07 AM EDT
  • Worldwide revenue of $208.9 million for the first quarter 2022, representing an increase of 125.8% from the prior year period
  • GAAP net income of $43.0 million for the first quarter 2022, compared to GAAP net income of $9.0 million in the prior year period
  • GAAP fully diluted net income of $0.61 for the first quarter 2022, compared to GAAP fully diluted net income of $0.13 in the prior year period; adjusted fully diluted EPS of $0.97 for the first quarter 2022, compared to adjusted fully diluted EPS of $0.05 in the prior year period
  • Net cash provided by operating activities was $10.3 million for the first quarter 2022. Free cash flow was $7.1 million in the first quarter 2022
  • The Company provides second quarter 2022 revenue and adjusted diluted earnings per share guidance; increases full year guidance

NORTH BILLERICA, Mass., April 29, 2022 (GLOBE NEWSWIRE) -- Lantheus Holdings, Inc. (NASDAQ: LNTH) (Lantheus), an established leader and fully integrated provider committed to innovative imaging diagnostics, targeted therapeutics and artificial intelligence solutions to find, fight and follow serious medical conditions, today reported financial results for its first quarter ended March 31, 2022.

The Company’s worldwide revenue for the first quarter of 2022 totaled $208.9 million, compared with $92.5 million for the first quarter of 2021, representing an increase of 125.8% from the prior year period.

The Company’s first quarter 2022 GAAP net income was $43.0 million, or $0.61 per fully diluted share, as compared to GAAP net income of $9.0 million, or $0.13 per fully diluted share for the first quarter of 2021.

The Company’s first quarter 2022 adjusted fully diluted earnings per share were $0.97, as compared to $0.05 for the first quarter of 2021, representing an increase of approximately $0.92 from the prior year period.

Lastly, net cash provided by operating activities was $10.3 million for the first quarter 2022. Free Cash Flow was $7.1 million in the first quarter of 2022, representing a decrease of approximately $0.2 million from the prior year period.

“We continued to deliver strong performance with record revenue and earnings in the first quarter of 2022, led primarily by rapidly increasing PYLARIFY sales,” said Mary Anne Heino, President and CEO. “We are executing on our strategy to accelerate growth, diversify our portfolio, and position Lantheus as the category leader in markets in which we compete. We are excited by our recent strategic collaborations for PYLARIFY and PYLARIFY AI and continue to assess longer-term revenue opportunities through strategic transactions and internal development to drive shareholder value.”

The Company updates its guidance for full year 2022 and offers the following guidance for the second quarter:

  Q2 Guidance Issued April 29, 2022 Previous Guidance Issued February 24, 2022
Q2 FY 2022 Revenue $200 million - $215 million N/A
Q2 FY 2022 Adjusted Fully Diluted EPS $0.67 - $0.73 N/A
  FY Guidance Updated April 29, 2022 FY Guidance Issued February 24, 2022
FY 2022 Revenue $800 million - $835 million $685 million - $710 million
FY 2022 Adjusted Fully Diluted EPS $2.90 - $3.15 $1.95 - $2.05
     

On a forward-looking basis, the Company does not provide GAAP income per common share guidance or a reconciliation of adjusted fully diluted EPS to GAAP income per common share because the Company is unable to predict with reasonable certainty business development and acquisition related expenses, purchase accounting fair value adjustments (including liability accruals relating to the contingent value rights issued as part of the Progenics Pharmaceuticals, Inc. acquisition), and any one-time, non-recurring charges. These items are uncertain, depend on various factors, and could be material to results computed in accordance with GAAP. As a result, it is the Company’s view that a quantitative reconciliation of adjusted fully diluted EPS on a forward-looking basis is not available without unreasonable effort.

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 and webcast on Friday, April 29, 2022 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 8691334. A live webcast 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.

Lantheus Holdings, Inc. is the parent company of Lantheus Medical Imaging, Inc., Progenics Pharmaceuticals, Inc. and EXINI Diagnostics AB and an established leader and fully integrated provider committed to innovative imaging diagnostics, targeted therapeutics and artificial intelligence solutions to Find Fight and Follow® serious medical conditions. Lantheus provides a broad portfolio of products, including the echocardiography agent DEFINITY® Vial for (Perflutren Lipid Microsphere) Injectable Suspension; PYLARIFY®, a PSMA PET imaging agent for the detection of suspected recurrent or metastatic prostate cancer; PYLARIFY AI™, an artificial intelligence platform that assists in the evaluation of PSMA PET images; TechneLite® (Technetium Tc99m Generator), a technetium-based generator that provides the essential medical isotope used in nuclear medicine procedures; AZEDRA® for the treatment of certain rare neuroendocrine tumors; and RELISTOR® for the treatment of opioid-induced constipation, which is partnered with Bausch Health Companies, Inc. The Company is headquartered in North Billerica, Massachusetts, with additional offices in New Jersey, Canada and Sweden. 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 within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by their use of terms such as “believe,” “could,” “estimate,” “expect,” “look forward to,” “may,” “plan,” “predict,” “target,” “will,” and other similar terms. Such forward-looking statements are based upon current plans, estimates and expectations that are subject to risks and uncertainties that could cause actual results to materially differ from those described in the forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation that such plans, estimates and expectations will be achieved. 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: (i) continued market expansion and penetration for our established commercial products, particularly DEFINITY, in the face of segment competition and potential generic competition, including as a result of patent and regulatory exclusivity expirations and challenges; (ii) our ability to continue to grow PYLARIFY as a commercial product, including (A) our ability to obtain FDA approval for additional positron emission tomography (“PET”) manufacturing facilities (“PMFs”) to manufacture PYLARIFY, (B) the ability of PMFs to manufacture PYLARIFY to meet product demand, (C) our ability to sell PYLARIFY to customers, (D) our ability to obtain and maintain adequate coding, coverage and payment for PYLARIFY, and (E) our ability to establish PYLARIFY as a leading PSMA PET imaging agent in a competitive environment in which other PSMA PET imaging agents have been approved and additional ones are in development; (iii) the global Molybdenum-99 (“Mo-99”) supply; (iv) our ability to have third party manufacturers manufacture our products and our ability to use our in-house manufacturing capacity; (v) our ability to successfully launch PYLARIFY AI as a commercial product; (vi) the continuing impact of the global COVID-19 pandemic on our business, financial condition and prospects; (vii) the efforts and timing for clinical development of our product candidates and new clinical applications for our products, in each case, that we may develop, including 1095 and LMI 1195, or that our strategic partners may develop, including flurpiridaz fluorine-18 (“F 18”); (viii) our ability to identify and acquire or in-license additional diagnostic and therapeutic product opportunities in oncology and other strategic areas; (ix) the potential reclassification by the FDA of certain of our products and product candidates from drugs to devices with the expense, complexity and potentially more limited competitive protection such reclassification could cause; and (x) 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).

- Tables Follow -

Lantheus Holdings, Inc.

Consolidated Statements of Operations

(in thousands, except per share data – unaudited)

  Three Months Ended
March 31,
   2022   2021 
Revenues $208,880  $92,509 
Cost of goods sold  79,810   51,479 
Gross profit  129,070   41,030 
Operating expenses    
Sales and marketing  20,354   14,173 
General and administrative  37,588   16,138 
Research and development  12,203   10,360 
Total operating expenses  70,145   40,671 
Gain on sale of assets     15,263 
Operating income  58,925   15,622 
Interest expense  1,509   2,718 
Gain on extinguishment of debt     (889)
Other income  (485)  (549)
Income before income taxes  57,901   14,342 
Income tax expense  14,939   5,334 
Net income $42,962  $9,008 
Net income per common share:    
Basic $0.63  $0.13 
Diluted $0.61  $0.13 
Weighted-average common shares outstanding:    
Basic  68,008   67,094 
Diluted  70,051   67,714 
         

Lantheus Holdings, Inc.

Consolidated Revenues Analysis

(in thousands – unaudited)

  Three Months Ended
March 31,
   2022   2021  % Change
DEFINITY $58,328  $55,971  4.2%
TechneLite  22,605   22,800  (0.9)%
Other precision diagnostics  5,265   6,984  (24.6)%
Total precision diagnostics  86,198   85,755  0.5%
PYLARIFY  92,777     N/A 
Other radiopharmaceutical oncology  1,327   1,500  (11.5)%
Total radiopharmaceutical oncology  94,104   1,500  6,173.6%
Strategic Partnerships and other revenue  28,578   5,254  443.9%
Total revenues $208,880  $92,509  125.8%
            

Lantheus Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except per share data – unaudited)

  Three Months Ended
March 31,
   2022   2021 
Net income $42,962  $9,008 
Stock and incentive plan compensation  5,623   3,317 
Amortization of acquired intangible assets  8,306   4,685 
Acquired debt fair value adjustment     (307)
Contingent consideration fair value adjustments  18,400   300 
Non-recurring severance related fees     436 
Non-recurring fees  (732)   
Extinguishment of debt     (889)
Gain on sale of assets     (15,263)
Integration costs     19 
Acquisition-related costs  447   (103)
ARO Acceleration and other related costs  1,591    
Other  129   10 
Income tax effect of non-GAAP adjustments(a)  (8,896)  2,083 
Adjusted net income $67,830  $3,296 
Adjusted net income, as a percentage of revenues  32.5%  3.6%
         


  Three Months Ended
March 31,
   2022   2021 
Net income per share - diluted $0.61  $0.13 
Stock and incentive plan compensation  0.08   0.05 
Amortization of acquired intangible assets  0.12   0.08 
Acquired debt fair value adjustment     (0.01)
Contingent consideration fair value adjustments  0.26   0.01 
Non-recurring severance related fees     0.01 
Non-recurring fees  (0.01)   
Extinguishment of debt     (0.01)
Gain on sale of assets     (0.23)
Integration costs      
Acquisition-related costs  0.01   (0.01)
ARO Acceleration and other related costs  0.02    
Income tax effect of non-GAAP adjustments(a)  (0.12)  0.03 
Adjusted net income per share - diluted $0.97  $0.05 
Weighted-average common shares outstanding - diluted  70,051   67,714 
         

(a) The income tax effect of the adjustments between GAAP net loss 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,
  2022   2021 
Net cash provided by operating activities$10,264  $9,818 
Capital expenditures (3,190)  (2,520)
Free cash flow$7,074  $7,298 
    
Net cash (used in) provided by investing activities$(1,390) $13,303 
Net cash used in financing activities$(2,179) $(34,791)
        

Lantheus Holdings, Inc.

Condensed Consolidated Balance Sheets

(in thousands – unaudited)

 March 31,
2021
 December 31,
2021
Assets   
Current assets   
Cash and cash equivalents$105,355  $98,508 
Accounts receivable, net 172,283   89,336 
Inventory 34,249   35,129 
Other current assets 12,860   12,818 
Total current assets 324,747   235,791 
Property, plant and equipment, net 116,959   116,772 
Intangibles, net 340,204   348,510 
Goodwill 61,189   61,189 
Deferred tax assets, net 47,868   62,764 
Other long-term assets 42,199   38,758 
Total assets$933,166  $863,784 
Liabilities and stockholders’ equity   
Current liabilities   
Current portion of long-term debt and other borrowings$12,878  $11,642 
Accounts payable 22,383   20,787 
Accrued expenses and other liabilities 142,396   58,068 
Total current liabilities 177,657   90,497 
Asset retirement obligations 21,514   20,833 
Long-term debt, net and other borrowings 159,369   163,121 
Other long-term liabilities 58,776   124,894 
Total liabilities 417,316   399,345 
Total stockholders’ equity 515,850   464,439 
Total liabilities and stockholders’ equity$933,166  $863,784 
        

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

Melissa Downs
Senior Director
646-975-2533
media@lantheus.com