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Lantheus Holdings, Inc. Reports Third Quarter 2020 Financial Results

  • Worldwide revenue of $88.5 million for the third quarter 2020, representing an increase of 3.2% from the prior year period
  • Net loss of $6.4 million for the third quarter 2020, compared to net income of $4.9 million in the prior year period
  • GAAP diluted EPS of $(0.10) for the third quarter 2020, compared to GAAP diluted EPS of $0.12 in the prior year period; adjusted diluted EPS of $0.04 for the third quarter 2020, compared to adjusted diluted EPS of $0.28 in the prior year period
  • Net cash provided by operating activities was $8.6 million for the third quarter 2020. Free cash flow was $4.8 million in the third quarter 2020

NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Nov. 5, 2020-- Lantheus Holdings, Inc. (the “Company”) (NASDAQ: LNTH), the parent company of Lantheus Medical Imaging, Inc. and Progenics Pharmaceuticals, Inc., and a global leader in the development, manufacture and commercialization of innovative diagnostic and therapeutic agents and products, today reported financial results for its third quarter ended September 30, 2020.

The Company’s worldwide revenue for the third quarter of 2020 totaled $88.5 million, compared with $85.8 million for the third quarter of 2019, representing an increase of 3.2% from the prior year period.

The Company’s third quarter 2020 net loss was $6.4 million, or $(0.10) per fully diluted share, as compared to net income of $4.9 million, or $0.12 per fully diluted share for the third quarter of 2019.

The Company’s third quarter 2020 adjusted fully diluted earnings per share were $0.04, as compared to $0.28 for the third quarter of 2019, representing a decrease of 87.1% from the prior year period.

Lastly, net cash provided by operating activities was $8.6 million for the third quarter 2020. Free Cash Flow was $4.8 million in the third quarter of 2020, representing a decrease of approximately $18.3 million from the prior year period.

“We continued to see steady recovery throughout the quarter primarily driven by DEFINITY and complemented by accelerated synergy capture, delivering a strong adjusted EPS performance,” said Mary Anne Heino, President and CEO. “Importantly, despite increased investment during the quarter related to our newly-combined business and our on-going integration efforts, we generated positive free cash flow. We remain committed to executing on our corporate initiatives even during these unprecedented times. In our first quarter as an integrated company, we received approval for VIALMIXRFID and submitted the NDA for our PSMA-targeted PET imaging agent, PyL. We believe these accomplishments and our continued financial discipline position us to drive sustainable future growth and enhanced shareholder value.”

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, duration and impacts of the COVID-19 pandemic. Due to these uncertainties, and uncertain timing of global recovery and economic normalization, the Company continues to be unable to provide guidance as to the overall impacts on its operations and financial results during the ongoing pandemic.

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 Thursday, November 5, 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 8872902. 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 a global leader in the development, manufacture and commercialization of innovative diagnostic and therapeutic agents and products. Lantheus provides a broad portfolio of products, including the echocardiography agent DEFINITY® Vial for (Perflutren Lipid Microsphere) Injectable Suspension; 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 offices in New York, New Jersey, Puerto Rico, 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 “anticipate,” “believe,” “confident,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “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) the impact of the global COVID-19 pandemic on our business, financial conditions or prospects, or on the timing and enrollment of our clinical trials; (ii) continued market expansion and penetration for our commercial products, particularly DEFINITY®, in the face of segment competition and potential generic competition as a result of patent and regulatory exclusivity expirations; (iii) the global Molybdenum-99 supply; (iv) our products manufactured at Jubilant HollisterStier and our plans to develop a modified formulation of DEFINITY with Samsung Biologics; (v) our efforts in new product development, including for PyL, the Progenics prostate cancer diagnostic imaging agent, including our ability to obtain FDA approval of PyL in 2021, and new clinical applications for our products; (vi) our dependence upon third parties for the manufacture and supply of PyL and the timing of that manufacturing capacity becoming available; (vii) the continued integration of the Progenics product and product candidate portfolio following the consummation of the Progenics transaction; (viii) our capacity to use in-house manufacturing; and (ix) our ability to commercialize our products in new ex-U.S. markets; (x) the expected timing for commercialization of products we or our strategic partners may develop, including flurpiridaz F 18; (xi) our ability to develop highly contextualized assessments of disease burden using PSMA AI and (xii) 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
September 30,

 

Nine Months Ended
September 30,

 

 

2020

 

2019

 

2020

 

2019

Revenues

 

$

88,544

 

 

$

85,776

 

 

$

245,258

 

 

$

257,991

 

Cost of goods sold

 

52,284

 

 

44,187

 

 

145,148

 

 

127,745

 

Gross profit

 

36,260

 

 

41,589

 

 

100,110

 

 

130,246

 

Operating expenses

 

 

 

 

 

 

 

 

Sales and marketing

 

11,609

 

 

10,151

 

 

28,044

 

 

31,496

 

General and administrative

 

18,217

 

 

18,061

 

 

55,586

 

 

43,943

 

Research and development

 

11,684

 

 

4,860

 

 

20,150

 

 

15,584

 

Total operating expenses

 

41,510

 

 

33,072

 

 

103,780

 

 

91,023

 

Operating (loss) income

 

(5,250)

 

 

8,517

 

 

(3,670)

 

 

39,223

 

Interest expense

 

2,808

 

 

2,356

 

 

6,668

 

 

11,491

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

3,196

 

Other (income) loss

 

(596)

 

 

804

 

 

(1,702)

 

 

(1,695)

 

(Loss) income before income taxes

 

$

(7,462)

 

 

$

5,357

 

 

$

(8,636)

 

 

$

26,231

 

Income tax (benefit) expense

 

(1,076)

 

 

501

 

 

1,425

 

 

5,014

 

Net (loss) income

 

$

(6,386)

 

 

$

4,856

 

 

$

(10,061)

 

 

$

21,217

 

Net (loss) income per common share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.10)

 

 

$

0.12

 

 

$

(0.20)

 

 

$

0.55

 

Diluted

 

$

(0.10)

 

 

$

0.12

 

 

$

(0.20)

 

 

$

0.53

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

66,820

 

 

39,123

 

 

49,858

 

 

38,901

 

Diluted

 

66,820

 

 

40,286

 

 

49,858

 

 

40,123

 

 

Lantheus Holdings, Inc.

Consolidated Segment Revenues Analysis

(in thousands – unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

% Change

 

2020

 

2019

 

% Change

United States

 

 

 

 

 

 

 

 

 

 

 

DEFINITY

$

53,792

 

 

$

50,917

 

 

5.6

%

 

$

148,346

 

 

$

154,099

 

 

(3.7)

%

TechneLite

17,652

 

 

18,281

 

 

(3.4)

%

 

52,599

 

 

55,204

 

 

(4.7)

%

Other nuclear

11,571

 

 

9,355

 

 

23.7

%

 

26,437

 

 

28,006

 

 

(5.6)

%

Rebates and allowances

(5,540)

 

 

(3,903)

 

 

41.9

%

 

(13,763)

 

 

(12,035)

 

 

14.4

%

Total United States

77,475

 

 

74,650

 

 

3.8

%

 

213,619

 

 

225,274

 

 

(5.2)

%

International

 

 

 

 

 

 

 

 

 

 

 

DEFINITY

1,637

 

 

1,478

 

 

10.8

%

 

4,239

 

 

4,036

 

 

5.0

%

TechneLite

3,837

 

 

3,466

 

 

10.7

%

 

10,897

 

 

10,794

 

 

1.0

%

Other nuclear

5,596

 

 

6,186

 

 

(9.5)

%

 

16,507

 

 

17,901

 

 

(7.8)

%

Rebates and allowances

(1)

 

 

(4)

 

 

(75.0)

%

 

(4)

 

 

(14)

 

 

(71.4)

%

Total International

11,069

 

 

11,126

 

 

(0.5)

%

 

31,639

 

 

32,717

 

 

(3.3)

%

Worldwide

 

 

 

 

 

 

 

 

 

 

 

DEFINITY

55,429

 

 

52,395

 

 

5.8

%

 

152,585

 

 

158,135

 

 

(3.5)

%

TechneLite

21,489

 

 

21,747

 

 

(1.2)

%

 

63,496

 

 

65,998

 

 

(3.8)

%

Other nuclear

17,167

 

 

15,541

 

 

10.5

%

 

42,944

 

 

45,907

 

 

(6.5)

%

Rebates and allowances

(5,541)

 

 

(3,907)

 

 

41.8

%

 

(13,767)

 

 

(12,049)

 

 

14.3

%

Total Revenues

$

88,544

 

 

$

85,776

 

 

3.2

%

 

$

245,258

 

 

$

257,991

 

 

(4.9)

%

 

Lantheus Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except per share data – unaudited)

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2020

 

2019

 

2020

 

2019

Net (loss) income

 

$

(6,386)

 

 

$

4,856

 

 

$

(10,061)

 

 

$

21,217

 

Stock and incentive plan compensation

 

3,992

 

 

3,423

 

 

10,452

 

 

9,580

 

Amortization of acquired intangible assets

 

4,768

 

 

451

 

 

6,087

 

 

1,353

 

Acquired debt fair value adjustment

 

(385)

 

 

 

 

(385)

 

 

 

Contingent consideration fair value adjustments

 

800

 

 

 

 

800

 

 

 

Non-recurring refinancing related fees

 

 

 

 

 

460

 

 

 

Extinguishment of debt

 

 

 

 

 

 

 

3,196

 

Strategic collaboration and license costs

 

 

 

 

 

 

 

300

 

Integration costs

 

855

 

 

 

 

4,428

 

 

 

Acquisition-related costs

 

1,593

 

 

5,176

 

 

10,522

 

 

5,176

 

Impairment of long-lived assets

 

 

 

 

 

7,275

 

 

 

Other

 

 

 

 

 

(75)

 

 

 

Income tax effect of non-GAAP adjustments(a)

 

(2,819)

 

 

(2,653)

 

 

(8,265)

 

 

(7,449)

 

Adjusted net income

 

$

2,418

 

 

$

11,253

 

 

$

21,238

 

 

$

33,373

 

Adjusted net income, as a percentage of revenues

 

2.7

%

 

13.1

%

 

8.7

%

 

12.9

%

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2020

 

2019

 

2020

 

2019

Net (loss) income per share - diluted

 

$

(0.10)

 

 

$

0.12

 

 

$

(0.20)

 

 

$

0.53

 

Stock and incentive plan compensation

 

0.06

 

 

0.08

 

 

0.21

 

 

0.24

 

Amortization of acquired intangible assets

 

0.08

 

 

0.01

 

 

0.12

 

 

0.03

 

Acquired debt fair value adjustment

 

(0.01)

 

 

 

 

(0.01)

 

 

 

Contingent consideration fair value adjustments

 

0.01

 

 

 

 

0.01

 

 

 

Non-recurring refinancing related fees

 

 

 

 

 

0.01

 

 

 

Extinguishment of debt

 

 

 

 

 

 

 

0.08

 

Strategic collaboration and license costs

 

 

 

 

 

 

 

0.01

 

Integration costs

 

0.01

 

 

 

 

0.09

 

 

 

Acquisition-related costs

 

0.02

 

 

0.13

 

 

0.21

 

 

0.12

 

Impairment of long-lived assets

 

 

 

 

 

0.14

 

 

 

Income tax effect of non-GAAP adjustments(a)

 

(0.03)

 

 

(0.06)

 

 

(0.16)

 

 

(0.18)

 

Adjusted net income per share - diluted

 

$

0.04

 

 

$

0.28

 

 

$

0.42

 

 

$

0.83

 

Weighted-average common shares outstanding - diluted(b)

 

67,006

 

 

40,286

 

 

50,210

 

 

40,123

 

  1. The income tax effect of the adjustments between GAAP net (loss) 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.
  2. Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP net loss position.
 

Lantheus Holdings, Inc.

Reconciliation of Free Cash Flow

(in thousands – unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

Net cash provided by operating activities

$

8,575

 

 

$

26,442

 

 

$

15,827

 

 

$

57,963

 

Capital expenditures

(3,736)

 

 

(3,336)

 

 

(8,689)

 

 

(17,320)

 

Free cash flow

$

4,839

 

 

$

23,106

 

 

$

7,138

 

 

$

40,643

 

 

Lantheus Holdings, Inc.

Condensed Consolidated Balance Sheets

(in thousands – unaudited)

 

 

September 30,
2020

 

December 31,
2019

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

87,994

 

 

$

92,919

 

Accounts receivable, net

49,206

 

 

43,529

 

Inventory

37,623

 

 

29,180

 

Other current assets

9,709

 

 

7,283

 

Total current assets

184,532

 

 

172,911

 

Property, plant and equipment, net

122,381

 

 

116,497

 

Intangibles, net

384,747

 

 

7,336

 

Goodwill

57,765

 

 

15,714

 

Deferred tax assets, net

69,345

 

 

71,834

 

Other long-term assets

60,824

 

 

21,627

 

Total assets

$

879,594

 

 

$

405,919

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities

 

 

 

Current portion of long-term debt and other borrowings

$

18,138

 

 

$

10,143

 

Accounts payable

24,070

 

 

18,608

 

Accrued expenses and other liabilities

39,792

 

 

37,360

 

Total current liabilities

82,000

 

 

66,111

 

Asset retirement obligations

13,962

 

 

12,883

 

Long-term debt, net and other borrowings

204,669

 

 

183,927

 

Other long-term liabilities

65,384

 

 

28,397

 

Total liabilities

366,015

 

 

291,318

 

Total stockholders’ equity

513,579

 

 

114,601

 

Total liabilities and stockholders’ equity

$

879,594

 

 

$

405,919

 

 

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

Melissa Downs
Director, Corporate Communications
646-975-2533
media@lantheus.com

Source: Lantheus Holdings, Inc.