UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 3, 2016

 

 

LANTHEUS HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware		001-36569		35-2318913
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

331 Treble Cove Road, North Billerica, MA 01862

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code: (978) 671-8001

Not Applicable

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Item 2.02.

Results of Operations and Financial Condition.

On May 3, 2016, Lantheus Holdings, Inc. (the “Company”) announced via press release its financial results as of and for the three months ended March 31, 2016. A copy of that press release is being furnished as Exhibit 99.1 and is hereby incorporated by reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.

 

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit No.		Description
99.1*		Press release of Lantheus Holdings, Inc. dated May 3, 2016, announcing its financial results as of and for the three months ended March 31, 2016.

 

*

Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: May 3, 2016

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EXHIBIT INDEX

 

Exhibit No.		Description
99.1*		Press release of Lantheus Holdings, Inc. dated May 3, 2016, announcing its financial results as of and for the three months ended March 31, 2016.

 

*

Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Exhibit 99.1

 

		331 Treble Cove Road North Billerica, MA 01862		800.362.2668 www.lantheus.com

CONTACTS:

Meara Murphy

978-671-8508

Lantheus Holdings, Inc. Reports 2016 First Quarter Financial Results

Lantheus posts first quarter net income of $10.3 million and Adjusted EBITDA of $18.4 million;

First quarter worldwide DEFINITY^® revenue increased 22% annually

NORTH BILLERICA, Mass., May 3, 2016 – 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, 2016.

The Company’s worldwide revenue for the first quarter of 2016 totaled $76.5 million, representing an increase of 2% as-reported compared to $74.8 million reported for the first quarter of 2015. Constant currency revenue increased by 3% versus the prior year period. First quarter worldwide revenue results reflect the continued strong performance of DEFINITY^® and increased revenues from the nuclear products portfolio driven by recently initiated contracts with key radiopharmacy customers.

Net income for the first quarter of 2016 totaled $10.3 million or $0.34 per diluted share, an improvement of $9.9 million compared to a net income of $0.4 million or $0.02 per diluted share in the first quarter of 2015. The first quarter net income results reflect a gain on the divestiture of the Company’s Canadian radiopharmacy business and a decrease in the amount of interest expense due to debt refinancing in June of 2015.

The Company’s first quarter 2016 Adjusted EBITDA, as defined in the GAAP to non-GAAP reconciliation provided later in this release, was $18.4 million, or 24.0% of reported revenue, compared to $20.6 million, or 27.5% of reported revenue, in the first quarter of 2015. The decrease in Adjusted EBITDA reflects the impact of contracting at lower prices for committed volumes with key radiopharmacy customers.

Mary Anne Heino, President and CEO commented, “We had a strong quarter, exceeding both our first quarter revenue and Adjusted EBITDA guidance. Our robust results were driven by continued excellent performance of DEFINITY in an increasingly competitive market and higher than forecasted sales of our nuclear products.”

Ms. Heino continued, “We are pleased to be raising our annual revenue and Adjusted EBITDA guidance despite the recent entrance into the U.S. market of a competitor to our Xenon product.”

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Outlook

The Company is increasing its outlook for worldwide revenue for full year 2016 to a range of $287 million to $292 million. For the second quarter of 2016, the Company expects worldwide revenue in the range of $72 million to $74 million.

The Company is also increasing its outlook for full year 2016 Adjusted EBITDA, as described in the GAAP to non-GAAP reconciliation provided later in this release, to a range of $62 million to $66 million. For the second quarter of 2016, the Company expects Adjusted EBITDA in the range of $14 million to $16 million.

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 4:30 p.m. (Eastern Time) today. 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 88571392. A live audio webcast of the call also will be available on the homepage of the Company’s website at www.lantheus.com.

A replay of the telephone conference call and audio webcast will be available from approximately 8:30 p.m. ET on May 3, 2016 through midnight on May 17, 2016. To access a replay of the conference call, dial 1-855-859-2056 (U.S. callers) or 1-404-537-3406 (international callers), and provide passcode 88571392. A replay of this conference call will also be available in the Investor Relations section of our website located at www.lantheus.com.

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.

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

Lantheus Holdings, Inc. is the parent company of LMI, which is a global leader in the development, manufacture and commercialization of innovative diagnostic imaging agents and products. LMI provides a broad portfolio of products, which are primarily used for the diagnosis of cardiovascular diseases. LMI’s key products include the echocardiography contrast 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; and Xenon (Xenon Xe 133 Gas), an inhaled radiopharmaceutical imaging agent used to evaluate pulmonary function and for imaging the lungs. The Company is headquartered in North Billerica, Massachusetts with offices in Puerto Rico, Canada and Australia. For more information, visit www.lantheus.com.

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 2016 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 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 –

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Lantheus Holdings, Inc. and subsidiaries

Condensed Consolidated Statements of Operations

(dollars in thousands, except share data – unaudited)

 

		Three Months Ended March 31,
		2016				2015
Revenues		$	76,474			$	74,823
Cost of goods sold			42,773				39,054
Gross profit			33,701				35,769
Operating expenses
Sales and marketing expenses			9,307				9,072
General and administrative expenses			9,513				9,123
Research and development expenses			3,036				6,196
Total operating expenses			21,856				24,391
Gain on sale of assets			5,828				—
Operating income			17,673				11,378
Interest expense, net			(7,018	)			(10,623	)
Other income (expense), net			58				(383	)
Income before income taxes			10,713				372
Provision (benefit) for income taxes			390				(3	)
Net income		$	10,323			$	375
Net income per common share
Basic and diluted		$	0.34			$	0.02
Common shares
Basic			30,368,240				18,080,944
Diluted			30,372,691				18,404,393

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Lantheus Holdings, Inc. and subsidiaries

Consolidated Revenue Analysis

(dollars in thousands – unaudited)

 

		Three Months Ended March 31,
		2016				2015				% change
U.S.
DEFINITY			30,793				25,182				22.3	%
TechneLite			21,733				18,173				19.6	%
Xenon			8,172				13,186				(38.0	)%
Other			4,235				4,126				2.6	%
Total U.S.		$	64,933			$	60,667				7.0	%
International
DEFINITY			629				484				30.0	%
TechneLite			3,103				2,687				15.5	%
Xenon			2				8				(75.0	)%
Other			7,807				10,977				(28.9	)%
Total International		$	11,541			$	14,156				(18.5	)%
Worldwide
DEFINITY			31,422				25,666				22.4	%
TechneLite			24,836				20,860				19.1	%
Xenon			8,174				13,194				(38.0	)%
Other			12,042				15,103				(20.3	)%
Total Revenues		$	76,474			$	74,823				2.2	%

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Lantheus Holdings, Inc. and subsidiaries

Supplemental Revenue Information

(unaudited)

 

		March 31, 2016 Quarter to Date Sales Growth/(Decline)
		Domestic As Reported				Int’l Constant Currency				Int’l As Reported				Total Constant Currency				Total As Reported
Products
DEFINITY			22	%			43	%			30	%			23	%			22	%
TechneLite			20	%			27	%			15	%			21	%			19	%
Xenon			(38	)%			(75	)%			(75	)%			(38	)%			(38	)%
Other			3	%			(25	)%			(29	)%			(18	)%			(20	)%
Total Revenues			7	%			(13	)%			(19	)%			3	%			2	%

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Lantheus Holdings, Inc. and subsidiaries

Reconciliation of Revenues to Revenues Excluding the Impact of Foreign Currency

(dollars in thousands – unaudited)

 

		Three Months Ended March 31, 2016
		International Net Sales				Total Net Sales
Net sales, as reported		$	11,541			$	76,474
Currency impact as compared to prior period			765				765
Net sales, excluding the impact of foreign currency		$	12,306			$	77,239

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Lantheus Holdings, Inc. and subsidiaries

Reconciliations of As Reported Results to Non-GAAP Financial Measures

(dollars in thousands – unaudited)

 

		Three Months Ended March 31,
		2016				2015
Operating income
Operating income, as reported		$	17,673			$	11,378
Reconciling items impacting
Operating income:
Campus consolidation costs			—				3,610
Gain on sale of assets			(5,828	)			—
Operating income, as adjusted		$	11,845			$	14,988
Operating income, as adjusted, as a percentage of net sales			15.5	%			20.0	%
		Three Months Ended March 31,
		2016				2015
Net income
Net income, as reported		$	10,323			$	375
Reconciling items impacting
Gross Profit:
Campus consolidation costs			—				77
Reconciling items impacting
Operating Expenses:
Campus consolidation costs			—				3,533
Gain on sale of assets			(5,828	)			—
Net income, as adjusted		$	4,495			$	3,908
Net income, as adjusted, as a percentage of net sales			5.9	%			5.2	%
Net income, as adjusted, per common share
Basic		$	0.15			$	0.22
Diluted		$	0.15			$	0.21
Common shares
Basic			30,368,240				18,080,944
Diluted			30,372,691				18,404,393

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Lantheus Holdings, Inc. and subsidiaries

Reconciliation of As Reported Results to Non-GAAP Financial Measures

(dollars in thousands – unaudited)

 

		Three Months Ended March 31,
		2016				2015
EBITDA
Net income, as reported		$	10,323			$	375
Interest expense, net			7,018				10,623
Provision for income taxes			94				1
Depreciation			2,007				5,688
Amortization and accretion			2,106				1,896
EBITDA			21,548				18,583
Reconciling items impacting
EBITDA:
Stock-based and other compensation			572				277
Legal fees relating to business interruption claim			4				17
Asset write-off			497				180
Severance and recruiting costs			669				97
Sponsor fee and other			—				571
Gain on sale of assets			(5,828	)			—
New manufacturer costs			900				862
Adjusted EBITDA		$	18,362			$	20,587
Adjusted EBITDA as a percentage of net sales			24.0	%			27.5	%

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Lantheus Holdings, Inc. and subsidiaries

Reconciliation of Free Cash Flow

(dollars in thousands – unaudited)

 

		Three Months Ended
		March 31, 2016				March 31, 2015
Net cash provided by operating activities		$	3,780			$	15,157
Capital expenditures			(1,652	)			(3,498	)
Free cash flow		$	2,128			$	11,659

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Lantheus Holdings, Inc. and subsidiaries

Condensed Consolidated Balance Sheets

(dollars in thousands – unaudited)

 

		March 31, 2016				December 31, 2015
Assets
Current assets
Cash and cash equivalents		$	38,880			$	28,596
Accounts receivable, net			39,896				37,293
Inventory			15,541				15,622
Other current assets			5,721				3,851
Assets held for sale			—				4,644
Total current assets			100,038				90,006
Property, plant and equipment, net			85,324				86,517
Capitalized software development costs, net			8,615				9,137
Intangibles, net			19,235				20,496
Goodwill			15,714				15,714
Other long-term assets			20,337				20,509
Total assets		$	249,263			$	242,379
Liabilities and stockholders’ deficit
Current liabilities
Current portion of long-term debt		$	3,650			$	3,650
Line of credit			—				—
Accounts payable			12,984				11,657
Accrued expenses and other liabilities			14,845				18,502
Liabilities held for sale			—				1,715
Total current liabilities			31,479				35,524
Asset retirement obligation			8,417				8,145
Long-term debt, net			349,349				349,858
Other long-term liabilities			34,237				34,141
Total liabilities			423,482				427,668
Stockholders’ deficit			(174,219	)			(185,289	)
Total liabilities and stockholders’ deficit		$	249,263			$	242,379

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