Lantheus Reports Fourth Quarter and Full Year 2020 Financial Results
-
Worldwide revenue of
$94.2 million and$339.4 million for the fourth quarter and full year 2020, representing an increase of 5.4% and a decline of 2.3% over the prior year period, respectively
-
Net loss of
$3.4 million and$13.5 million for the fourth quarter and full year 2020, compared to net income of$10.5 million and$31.7 million for the fourth quarter and full year 2019
-
GAAP fully diluted net loss of
$0.05 and$0.25 for the fourth quarter and full year 2020, compared to GAAP fully diluted net income of$0.26 and$0.79 for the fourth quarter and full year 2019; adjusted fully diluted EPS of$0.07 and$0.47 for the fourth quarter and full year 2020, compared to adjusted fully diluted EPS of$0.34 and$1.17 for the fourth quarter and full year 2019
-
Net cash provided by operating activities was
$0.6 million and$16.4 million for the fourth quarter and full year 2020. Free cash flow of$(3.2) million and$3.9 million for the fourth quarter and full year 2020, compared to free cash flow of$17.7 million and$58.3 million for the fourth quarter and full year 2019
- The Company provides first quarter and full year 2021 revenue and adjusted fully diluted earnings per share guidance
The Company’s worldwide revenue for the fourth quarter of 2020 totaled
The Company’s fourth quarter 2020 net loss was
The Company’s fourth quarter 2020 adjusted fully diluted earnings per share were
Lastly, net cash provided by operating activities was
“While 2020 presented extraordinary challenges, I thank our team for continuing to manufacture and deliver products to our customers throughout the year,” said
Outlook
The Company guidance for the first quarter and full year 2021 is as follows:
|
|
Guidance Issued |
Q1 FY 2021 Revenue |
|
|
Q1 FY 2021 Adjusted Fully Diluted EPS |
|
|
|
|
Guidance Issued |
FY 2021 Revenue |
|
|
FY 2021 Adjusted Fully Diluted EPS |
|
|
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, 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
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 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.
This press release includes forward-looking non-GAAP guidance for 2021 adjusted fully diluted EPS. No reconciliation of this forward-looking non-GAAP guidance is included in this press release because, due to the high variability and difficulty in making accurate forecasts and projections of some of the information that would be required to prepare such a reconciliation and the fact that some of the excluded information is not readily ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measure without unreasonable efforts.
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) our efforts in new product development, including for PyL, our prostate cancer diagnostic imaging agent, including our ability to obtain
- Tables Follow -
Consolidated Statements of Operations (in thousands, except per share data – unaudited) |
||||||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||
Revenues |
|
$ |
94,152 |
|
|
|
$ |
89,346 |
|
|
|
$ |
339,410 |
|
|
|
$ |
347,337 |
|
|
Cost of goods sold |
|
55,501 |
|
|
|
44,781 |
|
|
|
200,649 |
|
|
|
172,526 |
|
|
||||
Gross profit |
|
38,651 |
|
|
|
44,565 |
|
|
|
138,761 |
|
|
|
174,811 |
|
|
||||
Operating expenses |
|
|
|
|
|
|
|
|
||||||||||||
Sales and marketing |
|
12,857 |
|
|
|
10,392 |
|
|
|
40,901 |
|
|
|
41,888 |
|
|
||||
General and administrative |
|
13,684 |
|
|
|
17,301 |
|
|
|
69,270 |
|
|
|
61,244 |
|
|
||||
Research and development |
|
12,638 |
|
|
|
4,434 |
|
|
|
32,788 |
|
|
|
20,018 |
|
|
||||
Total operating expenses |
|
39,179 |
|
|
|
32,127 |
|
|
|
142,959 |
|
|
|
123,150 |
|
|
||||
Operating (loss) income |
|
(528 |
) |
|
|
12,438 |
|
|
|
(4,198 |
) |
|
|
51,661 |
|
|
||||
Interest expense |
|
2,811 |
|
|
|
2,126 |
|
|
|
9,479 |
|
|
|
13,617 |
|
|
||||
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,196 |
|
|
||||
Other (income) loss |
|
(496 |
) |
|
|
7,916 |
|
|
|
(2,198 |
) |
|
|
6,221 |
|
|
||||
(Loss) income before income taxes |
|
$ |
(2,843 |
) |
|
|
$ |
2,396 |
|
|
|
$ |
(11,479 |
) |
|
|
$ |
28,627 |
|
|
Income tax expense (benefit) |
|
569 |
|
|
|
(8,054 |
) |
|
|
1,994 |
|
|
|
(3,040 |
) |
|
||||
Net (loss) income |
|
$ |
(3,412 |
) |
|
|
$ |
10,450 |
|
|
|
$ |
(13,473 |
) |
|
|
$ |
31,667 |
|
|
Net (loss) income per common share: |
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
$ |
(0.05 |
) |
|
|
$ |
0.27 |
|
|
|
$ |
(0.25 |
) |
|
|
$ |
0.81 |
|
|
Diluted |
|
$ |
(0.05 |
) |
|
|
$ |
0.26 |
|
|
|
$ |
(0.25 |
) |
|
|
$ |
0.79 |
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
66,870 |
|
|
|
39,246 |
|
|
|
54,134 |
|
|
|
38,988 |
|
|
||||
Diluted |
|
66,870 |
|
|
|
40,133 |
|
|
|
54,134 |
|
|
|
40,113 |
|
|
Consolidated Segment Revenues Analysis (in thousands – unaudited) |
|||||||||||||||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||||||||||
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
DEFINITY |
58,924 |
|
|
|
57,678 |
|
|
|
2.2 |
|
% |
|
207,270 |
|
|
|
211,777 |
|
|
|
(2.1 |
) |
% |
||||
TechneLite |
17,130 |
|
|
|
17,330 |
|
|
|
(1.2 |
) |
% |
|
69,729 |
|
|
|
72,534 |
|
|
|
(3.9 |
) |
% |
||||
Other nuclear |
10,427 |
|
|
|
8,225 |
|
|
|
26.8 |
|
% |
|
36,864 |
|
|
|
36,231 |
|
|
|
1.7 |
|
% |
||||
Rebates and allowances |
(5,304 |
) |
|
|
(4,518 |
) |
|
|
17.4 |
|
% |
|
(19,067 |
) |
|
|
(16,553 |
) |
|
|
15.2 |
|
% |
||||
Total |
81,177 |
|
|
|
78,715 |
|
|
|
3.1 |
|
% |
|
294,796 |
|
|
|
303,989 |
|
|
|
(3.0 |
) |
% |
||||
International |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
DEFINITY |
1,807 |
|
|
|
1,695 |
|
|
|
6.6 |
|
% |
|
6,046 |
|
|
|
5,731 |
|
|
|
5.5 |
|
% |
||||
TechneLite |
5,615 |
|
|
|
3,264 |
|
|
|
72.0 |
|
% |
|
16,512 |
|
|
|
14,058 |
|
|
|
17.5 |
|
% |
||||
Other nuclear |
5,553 |
|
|
|
5,673 |
|
|
|
(2.1 |
) |
% |
|
22,060 |
|
|
|
23,574 |
|
|
|
(6.4 |
) |
% |
||||
Rebates and allowances |
— |
|
|
|
(1 |
) |
|
|
(100.0 |
) |
% |
|
(4 |
) |
|
|
(15 |
) |
|
|
(73.3 |
) |
% |
||||
Total International Revenues |
12,975 |
|
|
|
10,631 |
|
|
|
22.0 |
|
% |
|
44,614 |
|
|
|
43,348 |
|
|
|
2.9 |
|
% |
||||
Worldwide |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
DEFINITY |
60,731 |
|
|
|
59,373 |
|
|
|
2.3 |
|
% |
|
213,316 |
|
|
|
217,508 |
|
|
|
(1.9 |
) |
% |
||||
TechneLite |
22,745 |
|
|
|
20,594 |
|
|
|
10.4 |
|
% |
|
86,241 |
|
|
|
86,592 |
|
|
|
(0.4 |
) |
% |
||||
Other nuclear |
15,980 |
|
|
|
13,898 |
|
|
|
15.0 |
|
% |
|
58,924 |
|
|
|
59,805 |
|
|
|
(1.5 |
) |
% |
||||
Rebates and allowances |
(5,304 |
) |
|
|
(4,519 |
) |
|
|
17.4 |
|
% |
|
(19,071 |
) |
|
|
(16,568 |
) |
|
|
15.1 |
|
% |
||||
Total Revenues |
$ |
94,152 |
|
|
|
$ |
89,346 |
|
|
|
5.4 |
|
% |
|
$ |
339,410 |
|
|
|
$ |
347,337 |
|
|
|
(2.3 |
) |
% |
Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data – unaudited) |
||||||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||
Net (loss) income |
|
$ |
(3,412 |
) |
|
|
$ |
10,450 |
|
|
|
$ |
(13,473 |
) |
|
|
$ |
31,667 |
|
|
Stock and incentive plan compensation |
|
3,623 |
|
|
|
2,991 |
|
|
|
14,075 |
|
|
|
12,571 |
|
|
||||
Amortization of acquired intangible assets |
|
4,683 |
|
|
|
451 |
|
|
|
10,770 |
|
|
|
1,804 |
|
|
||||
Acquired debt fair value adjustment |
|
(326 |
) |
|
|
— |
|
|
|
(711 |
) |
|
|
— |
|
|
||||
Contingent consideration fair value adjustments |
|
(2,800 |
) |
|
|
— |
|
|
|
(2,000 |
) |
|
|
— |
|
|
||||
Non-recurring refinancing related fees |
|
— |
|
|
|
— |
|
|
|
460 |
|
|
|
— |
|
|
||||
Non-recurring severance related fees |
|
904 |
|
|
|
— |
|
|
|
904 |
|
|
|
— |
|
|
||||
Extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,196 |
|
|
||||
Arbitration award |
|
— |
|
|
|
(3,453 |
) |
|
|
— |
|
|
|
(3,453 |
) |
|
||||
Strategic collaboration and license costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
300 |
|
|
||||
Integration costs |
|
2,772 |
|
|
|
1,488 |
|
|
|
7,201 |
|
|
|
1,488 |
|
|
||||
Acquisition-related costs |
|
1,334 |
|
|
|
2,834 |
|
|
|
11,856 |
|
|
|
8,010 |
|
|
||||
Impairment of long-lived assets |
|
2,660 |
|
|
|
— |
|
|
|
9,935 |
|
|
|
— |
|
|
||||
Other |
|
35 |
|
|
|
— |
|
|
|
(40 |
) |
|
|
— |
|
|
||||
Income tax effect of non-GAAP adjustments(a) |
|
(4,886 |
) |
|
|
(1,134 |
) |
|
|
(13,152 |
) |
|
|
(8,583 |
) |
|
||||
Adjusted net income |
|
$ |
4,587 |
|
|
|
$ |
13,627 |
|
|
|
$ |
25,825 |
|
|
|
$ |
47,000 |
|
|
Adjusted net income, as a percentage of revenues |
|
4.9 |
|
% |
|
15.3 |
|
% |
|
7.6 |
|
% |
|
13.5 |
|
% |
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||
Net (loss) income per share - diluted |
|
$ |
(0.05 |
) |
|
|
$ |
0.26 |
|
|
|
$ |
(0.25 |
) |
|
|
$ |
0.79 |
|
|
Stock and incentive plan compensation |
|
0.05 |
|
|
|
0.07 |
|
|
|
0.26 |
|
|
|
0.31 |
|
|
||||
Amortization of acquired intangible assets |
|
0.08 |
|
|
|
0.01 |
|
|
|
0.20 |
|
|
|
0.04 |
|
|
||||
Acquired debt fair value adjustment |
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
||||
Contingent consideration fair value adjustments |
|
(0.04 |
) |
|
|
— |
|
|
|
(0.05 |
) |
|
|
— |
|
|
||||
Non-recurring refinancing related fees |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
||||
Non-recurring severance related fees |
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
||||
Extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.08 |
|
|
||||
Arbitration award |
|
— |
|
|
|
(0.09 |
) |
|
|
— |
|
|
|
(0.09 |
) |
|
||||
Strategic collaboration and license costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
||||
Integration costs |
|
0.04 |
|
|
|
0.04 |
|
|
|
0.13 |
|
|
|
0.04 |
|
|
||||
Acquisition-related costs |
|
0.01 |
|
|
|
0.07 |
|
|
|
0.22 |
|
|
|
0.20 |
|
|
||||
Impairment of long-lived assets |
|
0.04 |
|
|
|
— |
|
|
|
0.18 |
|
|
|
— |
|
|
||||
Income tax effect of non-GAAP adjustments(a) |
|
(0.08 |
) |
|
|
(0.02 |
) |
|
|
(0.24 |
) |
|
|
(0.21 |
) |
|
||||
Adjusted net income per share - diluted |
|
$ |
0.07 |
|
|
|
$ |
0.34 |
|
|
|
$ |
0.47 |
|
|
|
$ |
1.17 |
|
|
Weighted-average common shares outstanding - diluted(b) |
|
67,130 |
|
|
|
40,133 |
|
|
|
54,471 |
|
|
|
40,113 |
|
|
(a) |
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. |
|
(b) |
Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP net loss position. |
Reconciliation of Free Cash Flow (in thousands – unaudited) |
|||||||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||
Net cash provided by operating activities |
$ |
569 |
|
|
|
$ |
22,421 |
|
|
|
$ |
16,396 |
|
|
|
$ |
80,384 |
|
|
Capital expenditures |
(3,785 |
) |
|
|
(4,741 |
) |
|
|
(12,474 |
) |
|
|
(22,061 |
) |
|
||||
Free cash flow |
$ |
(3,216 |
) |
|
|
$ |
17,680 |
|
|
|
$ |
3,922 |
|
|
|
$ |
58,323 |
|
|
Condensed Consolidated Balance Sheets (in thousands – unaudited) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
79,612 |
|
|
$ |
92,919 |
|
Accounts receivable, net |
54,002 |
|
|
43,529 |
|
||
Inventory |
35,744 |
|
|
29,180 |
|
||
Other current assets |
9,625 |
|
|
7,283 |
|
||
Assets held for sale |
5,242 |
|
|
— |
|
||
Total current assets |
184,225 |
|
|
172,911 |
|
||
Property, plant and equipment, net |
120,171 |
|
|
116,497 |
|
||
Intangibles, net |
376,012 |
|
|
7,336 |
|
||
|
58,632 |
|
|
15,714 |
|
||
Deferred tax assets, net |
70,147 |
|
|
71,834 |
|
||
Other long-term assets |
60,634 |
|
|
21,627 |
|
||
Total assets |
$ |
869,821 |
|
|
$ |
405,919 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Current portion of long-term debt and other borrowings |
$ |
20,701 |
|
|
$ |
10,143 |
|
Accounts payable |
16,284 |
|
|
18,608 |
|
||
Accrued expenses and other liabilities |
41,726 |
|
|
37,360 |
|
||
Liabilities held for sale |
1,793 |
|
|
— |
|
||
Total current liabilities |
80,504 |
|
|
66,111 |
|
||
Asset retirement obligations |
14,020 |
|
|
12,883 |
|
||
Long-term debt, net and other borrowings |
197,699 |
|
|
183,927 |
|
||
Other long-term liabilities |
63,393 |
|
|
28,397 |
|
||
Total liabilities |
355,616 |
|
|
291,318 |
|
||
Total stockholders’ equity |
514,205 |
|
|
114,601 |
|
||
Total liabilities and stockholders’ equity |
$ |
869,821 |
|
|
$ |
405,919 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210225005882/en/
Senior Director, Investor Relations
978-671-8842
ir@lantheus.com
Director, Corporate Communications
646-975-2533
media@lantheus.com
Source: