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): November 1, 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)) |
| Item 2.02. | Results of Operations and Financial Condition. |
On November 1, 2016, Lantheus Holdings, Inc. (the “Company”) announced via press release its financial results as of and for the three and nine month periods ended September 30, 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 November 1, 2016, entitled “Lantheus Holdings, Inc. Reports 2016 Third Quarter Financial Results.” | |
| * | 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. |
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.
| LANTHEUS HOLDINGS, INC. | ||
| By: | /s/ Michael P. Duffy | |
| Name: | Michael P. Duffy | |
| Title: | General Counsel and Senior Vice President, Strategy and Business Development | |
Date: November 1, 2016
EXHIBIT INDEX
| Exhibit No. |
Description | |
| 99.1* | Press release of Lantheus Holdings, Inc. dated November 1, 2016, entitled “Lantheus Holdings, Inc. Reports 2016 Third Quarter Financial Results.” | |
| * | 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 |
FOR RELEASE 4:02 PM ET
TUESDAY, NOVEMBER 1, 2016
Lantheus Holdings, Inc. Reports 2016 Third Quarter Financial Results
| • | Posts Q3 revenue of $73.1 MM, net income of $4.2 MM and Adjusted EBITDA of $18.7 MM, exceeding revenue and Adjusted EBITDA guidance |
| • | Q3 DEFINITY® worldwide revenue increases 12.9% |
| • | Company again raises 2016 Full Year Guidance |
NORTH BILLERICA, Mass., November 1, 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 third quarter ended September 30, 2016.
The Company’s worldwide revenue for the third quarter of 2016 totaled $73.1 million, compared to $74.1 million reported for the third quarter of 2015. Revenue results exceeded guidance of $68-$70 million, reflecting continued strong sales of DEFINITY, stable revenues from the U.S. nuclear products portfolio, and a decrease in International revenues as a result of the divestitures of its Canadian and Australian radiopharmacy businesses.
Net income for the third quarter of 2016 totaled $4.2 million or $0.13 per diluted share, compared to $5.4 million or $0.18 per diluted share in the third quarter of 2015. These results reflect the impact of a $1.4 million write-off of debt pay down related costs, a gain of $560,000 on the sale of assets and an increased share count attributable to an equity offering consummated during the quarter.
The Company’s third quarter 2016 Adjusted EBITDA (as defined in the GAAP to non-GAAP reconciliation provided later in this release) was $18.7 million or 25.6% of reported revenue, compared to $19.4 million or 26.2% of reported revenue, in the third quarter of 2015. Adjusted EBITDA results exceeded guidance of $14-$16 million, primarily driven by the strong performance of higher margin products in the U.S. market.
Mary Anne Heino, President and CEO, commented, “We are pleased with our solid financial results this quarter. A key contributor was DEFINITY, with 12.9% revenue growth worldwide driven primarily by continued strong U.S. performance. Consistent with our strategic priority of optimizing our capital structure, we raised approximately $40 million from a follow-on equity offering and used those proceeds, together with cash on the balance sheet, to reduce our debt by $55 million. Even with the debt reduction, we ended the quarter with a healthy $53 million of cash on the balance sheet.”
Ms. Heino continued, “We are pleased to again raise our full year 2016 revenue and Adjusted EBITDA guidance to reflect the continuing strength of our business.”
Outlook
The Company is increasing its outlook for full year 2016 worldwide revenue to a range of $296 million to $299 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 $73 million to $75 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 guidance. Forward-looking statements 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 “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 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 1805132. 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 telephone conference call and audio webcast will be available from approximately 8:30 p.m. ET on November 1, 2016 through midnight on November 15, 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 1805132. A replay of this conference call will also be available in the Investors section of our website 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.
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, 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 and Canada. For more information, visit www.lantheus.com.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, such as revenue excluding the impact of foreign currency; operating income, as adjusted; net income, as adjusted; Adjusted EBITDA; net income, as adjusted, 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). This press release includes forward-looking non-GAAP guidance for 2016 Adjusted EBITDA. No reconciliation of this forward-looking non-GAAP guidance was included in this press release because, due to the high variability and difficulty in making accurate forecasts and projections of some of the excluded information, together with some of the excluded information not being 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.
– Tables Follow –
Lantheus Holdings, Inc.
Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share data – unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues |
$ | 73,063 | $ | 74,123 | $ | 227,503 | $ | 222,260 | ||||||||
| Cost of goods sold |
39,382 | 40,418 | 124,370 | 120,119 | ||||||||||||
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| Gross profit |
33,681 | 33,705 | 103,133 | 102,141 | ||||||||||||
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| Operating expenses |
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| Sales and marketing |
8,706 | 8,633 | 27,856 | 26,934 | ||||||||||||
| General and administrative |
10,091 | 9,206 | 28,842 | 33,773 | ||||||||||||
| Research and development |
2,849 | 2,458 | 8,493 | 11,292 | ||||||||||||
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| Total operating expenses |
21,646 | 20,297 | 65,191 | 71,999 | ||||||||||||
| Gain on sales of assets |
560 | — | 6,505 | — | ||||||||||||
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| Operating income |
12,595 | 13,408 | 44,447 | 30,142 | ||||||||||||
| Interest expense, net |
(6,786 | ) | (7,100 | ) | (20,782 | ) | (31,599 | ) | ||||||||
| Debt retirement costs |
(1,415 | ) | — | (1,415 | ) | — | ||||||||||
| Loss on extinguishment of debt |
— | — | — | (15,528 | ) | |||||||||||
| Other (expense) income, net |
(154 | ) | (183 | ) | 300 | 234 | ||||||||||
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| Income (loss) before income taxes |
4,240 | 6,125 | 22,550 | (16,751 | ) | |||||||||||
| Provision for income taxes |
20 | 739 | 657 | 1,911 | ||||||||||||
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| Net income (loss) |
$ | 4,220 | $ | 5,386 | $ | 21,893 | $ | (18,662 | ) | |||||||
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| Net income (loss) per weighted-average common share outstanding: |
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| Basic |
$ | 0.14 | $ | 0.18 | $ | 0.71 | $ | (0.83 | ) | |||||||
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| Diluted |
$ | 0.13 | $ | 0.18 | $ | 0.71 | $ | (0.83 | ) | |||||||
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| Weighted-average common shares outstanding: |
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| Basic |
31,220,877 | 30,359,516 | 30,657,623 | 22,443,257 | ||||||||||||
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| Diluted |
32,402,297 | 30,761,771 | 31,049,351 | 22,443,257 | ||||||||||||
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Lantheus Holdings, Inc.
Consolidated Revenue Analysis
(dollars in thousands – unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||||||||
| 2016 | 2015 | % change | 2016 | 2015 | % change | |||||||||||||||||||
| United States |
||||||||||||||||||||||||
| DEFINITY |
$ | 32,007 | $ | 28,323 | 13.0 | % | $ | 95,497 | $ | 81,333 | 17.4 | % | ||||||||||||
| TechneLite |
20,906 | 14,557 | 43.6 | % | 64,282 | 47,367 | 35.7 | % | ||||||||||||||||
| Xenon |
6,675 | 12,713 | (47.5 | )% | 21,620 | 37,937 | (43.0 | )% | ||||||||||||||||
| Other |
3,032 | 3,619 | (16.2 | )% | 11,288 | 11,620 | (2.9 | )% | ||||||||||||||||
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| Total United States |
62,620 | 59,212 | 5.8 | % | 192,687 | 178,257 | 8.1 | % | ||||||||||||||||
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| International |
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| DEFINITY |
597 | 560 | 6.6 | % | 2,002 | 1,644 | 21.8 | % | ||||||||||||||||
| TechneLite |
3,627 | 2,666 | 36.0 | % | 10,339 | 8,078 | 28.0 | % | ||||||||||||||||
| Xenon |
2 | 10 | (80.0 | )% | 5 | 28 | (82.1 | )% | ||||||||||||||||
| Other |
6,217 | 11,675 | (46.7 | )% | 22,470 | 34,253 | (34.4 | )% | ||||||||||||||||
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| Total International |
10,443 | 14,911 | (30.0 | )% | 34,816 | 44,003 | (20.9 | )% | ||||||||||||||||
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| Worldwide |
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| DEFINITY |
32,604 | 28,883 | 12.9 | % | 97,499 | 82,977 | 17.5 | % | ||||||||||||||||
| TechneLite |
24,533 | 17,223 | 42.4 | % | 74,621 | 55,445 | 34.6 | % | ||||||||||||||||
| Xenon |
6,677 | 12,723 | (47.5 | )% | 21,625 | 37,965 | (43.0 | )% | ||||||||||||||||
| Other |
9,249 | 15,294 | (39.5 | )% | 33,758 | 45,873 | (26.4 | )% | ||||||||||||||||
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| Total Revenues |
$ | 73,063 | $ | 74,123 | (1.4 | )% | $ | 227,503 | $ | 222,260 | 2.4 | % | ||||||||||||
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Lantheus Holdings, Inc.
Supplemental Revenue Information
(unaudited)
| September 30, 2016 Quarter to Date Sales Growth/(Decline) | ||||||||||||||||||||
| Domestic As Reported |
Int’l Constant Currency |
Int’l As Reported |
Total Constant Currency |
Total As Reported |
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| Products |
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| DEFINITY |
13.0 | % | 6.6 | % | 6.6 | % | 12.9 | % | 12.9 | % | ||||||||||
| TechneLite |
43.6 | % | 36.3 | % | 36.0 | % | 42.5 | % | 42.4 | % | ||||||||||
| Xenon |
(47.5 | )% | (80.0 | )% | (80.0 | )% | (47.5 | )% | (47.5 | )% | ||||||||||
| Other |
(16.2 | )% | (47.2 | )% | (46.7 | )% | (40.2 | )% | (39.5 | )% | ||||||||||
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| Total Revenues |
5.8 | % | (30.3 | )% | (30.0 | )% | (1.6 | )% | (1.4 | )% | ||||||||||
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| September 30, 2016 Year to Date Sales Growth/(Decline) | ||||||||||||||||||||
| Domestic As Reported |
Int’l Constant Currency |
Int’l As Reported |
Total Constant Currency |
Total As Reported |
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| Products |
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| DEFINITY |
17.4 | % | 27.8 | % | 21.8 | % | 17.6 | % | 17.5 | % | ||||||||||
| TechneLite |
35.7 | % | 33.8 | % | 28.0 | % | 35.4 | % | 34.6 | % | ||||||||||
| Xenon |
(43.0 | )% | (82.1 | )% | (82.1 | )% | (43.0 | )% | (43.0 | )% | ||||||||||
| Other |
(2.9 | )% | (33.3 | )% | (34.4 | )% | (25.6 | )% | (26.4 | )% | ||||||||||
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| Total Revenues |
8.1 | % | (18.8 | )% | (20.9 | )% | 2.8 | % | 2.4 | % | ||||||||||
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Lantheus Holdings, Inc.
Reconciliation of Revenues to Revenues Excluding the Impact of Foreign Currency
(dollars in thousands – unaudited)
| Three Months Ended September 30, 2016 |
Nine Months Ended September 30, 2016 |
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| International Revenue |
Total Revenue |
International Revenue |
Total Revenue |
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| Revenue, as reported |
$ | 10,443 | $ | 73,063 | $ | 34,816 | $ | 227,503 | ||||||||
| Currency impact as compared to prior period |
(94 | ) | (94 | ) | 927 | 927 | ||||||||||
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| Revenue, excluding the impact of foreign currency |
$ | 10,349 | $ | 72,969 | $ | 35,743 | $ | 228,430 | ||||||||
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Lantheus Holdings, Inc.
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(dollars in thousands, except share and per share data – unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Operating Income |
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| Operating Income, as reported |
$ | 12,595 | $ | 13,408 | $ | 44,447 | $ | 30,142 | ||||||||
| Reconciling items impacting Operating Income: |
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| Campus Consolidation Costs |
— | — | — | 3,630 | ||||||||||||
| Sponsor Termination Costs |
— | — | — | 6,527 | ||||||||||||
| Gain on Sales of Assets |
(560 | ) | — | (6,505 | ) | — | ||||||||||
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| Operating income, as adjusted |
$ | 12,035 | $ | 13,408 | $ | 37,942 | $ | 40,299 | ||||||||
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| Operating Income, as adjusted, as a percentage revenue |
16.5 | % | 18.1 | % | 16.7 | % | 18.1 | % | ||||||||
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| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income (loss), as reported |
$ | 4,220 | $ | 5,386 | $ | 21,893 | $ | (18,662 | ) | |||||||
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| Reconciling items impacting Gross Profit: |
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| Campus Consolidation Costs |
— | — | — | 77 | ||||||||||||
| Reconciling items impacting Operating Expenses: |
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| Campus Consolidation Costs |
— | — | — | 3,553 | ||||||||||||
| Sponsor Termination Costs |
— | — | — | 6,527 | ||||||||||||
| Gain on Sales of Assets |
(560 | ) | — | (6,505 | ) | — | ||||||||||
| Reconciling items impacting Non-operating Expenses: |
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| Debt Retirement Costs |
1,415 | — | 1,415 | — | ||||||||||||
| Loss on Debt Extinguishment |
— | — | — | 15,528 | ||||||||||||
| Interest Upon Redemption of Senior Notes |
— | — | — | 3,250 | ||||||||||||
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| Net income, as adjusted |
$ | 5,075 | $ | 5,386 | $ | 16,803 | $ | 10,273 | ||||||||
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| Net income, as adjusted, as a percentage of revenue |
6.9 | % | 7.3 | % | 7.4 | % | 4.6 | % | ||||||||
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Lantheus Holdings, Inc.
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(dollars in thousands, except share and per share amounts – unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income (loss) per share - Diluted |
$ | 0.13 | $ | 0.18 | $ | 0.71 | $ | (0.83 | ) | |||||||
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| Reconciling items impacting Gross Profit: |
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| Campus Consolidation Costs |
$ | — | $ | — | $ | — | $ | — | ||||||||
| Reconciling items impacting Operating Expenses: |
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| Campus Consolidation Costs |
$ | — | $ | — | $ | — | $ | 0.16 | ||||||||
| Sponsor Termination Costs |
$ | — | $ | — | $ | — | $ | 0.29 | ||||||||
| Gain on Sales of Assets |
$ | (0.02 | ) | $ | — | $ | (0.21 | ) | $ | — | ||||||
| Reconciling items impacting Non-operating Expenses: |
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| Debt Retirement Costs |
$ | 0.04 | $ | — | $ | 0.05 | $ | — | ||||||||
| Loss on Debt Extinguishment |
$ | — | $ | — | $ | — | $ | 0.69 | ||||||||
| Interest Upon Redemption of Senior Notes |
$ | — | $ | — | $ | — | $ | 0.14 | ||||||||
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| Net income per share, as adjusted - Diluted |
$ | 0.15 | $ | 0.18 | $ | 0.55 | $ | 0.45 | ||||||||
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| Weighted-average common shares outstanding - Diluted |
32,402,297 | 30,761,771 | 31,049,351 | 22,443,257 | ||||||||||||
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Lantheus Holdings, Inc.
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(dollars in thousands – unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income (loss) |
$ | 4,220 | $ | 5,386 | $ | 21,893 | $ | (18,662 | ) | |||||||
| Interest expense, net |
6,786 | 7,100 | 20,782 | 31,599 | ||||||||||||
| Provision for income taxes(a) |
(176 | ) | 300 | 25 | 695 | |||||||||||
| Depreciation |
2,157 | 1,940 | 6,386 | 9,649 | ||||||||||||
| Amortization of intangible assets |
2,083 | 1,888 | 6,278 | 5,678 | ||||||||||||
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| EBITDA |
15,070 | 16,614 | 55,364 | 28,959 | ||||||||||||
| Reconciling items impacting EBITDA: |
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| Stock and incentive plan compensation |
1,248 | 591 | 2,736 | 1,524 | ||||||||||||
| Legal fees relating to business interruption |
— | 4 | 9 | 67 | ||||||||||||
| Asset write-off(c) |
242 | 631 | 1,088 | 1,182 | ||||||||||||
| Severance and recruiting costs(d) |
455 | 634 | 1,886 | 853 | ||||||||||||
| Sponsor fee and other(e) |
— | 22 | — | 7,340 | ||||||||||||
| Debt retirement costs |
1,415 | — | 1,415 | — | ||||||||||||
| Extinguishment of debt |
— | — | — | 15,528 | ||||||||||||
| Gain on sales of assets |
(560 | ) | — | (6,505 | ) | — | ||||||||||
| New manufacturer costs(f) |
805 | 953 | 2,451 | 2,568 | ||||||||||||
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| Adjusted EBITDA |
$ | 18,675 | $ | 19,449 | $ | 58,444 | $ | 58,021 | ||||||||
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| Adjusted EBITDA as a percentage of revenue |
25.6 | % | 26.2 | % | 25.7 | % | 26.1 | % | ||||||||
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| (a) | Represents provision for income taxes, less tax indemnification associated with BMS |
| (b) | Represents legal fees and disbursements incurred in connection with our business interruption claim associated with the NRU reactor shutdown in 2009 to 2010. |
| (c) | Represents non-cash losses incurred associated with the write-down of land, intangible assets, inventory and write-off of long-lived assets. |
| (d) | The amounts consist of severance and recruitment costs related to employees, executives and directors. |
| (e) | Represents annual sponsor monitoring fee and related expenses and a $6.5 million payment for the termination of our advisory services and monitoring agreement with our sponsor in 2015. |
| (f) | Represents internal and external costs associated with establishing new manufacturing sources for our commercial and clinical candidate products. |
Lantheus Holdings, Inc.
Reconciliation of Free Cash Flow
(dollars in thousands – unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Cash provided by operating activities |
$ | 15,446 | $ | 5,417 | $ | 36,861 | $ | 9,136 | ||||||||
| Capital expenditures |
(2,588 | ) | (2,307 | ) | (4,976 | ) | (8,419 | ) | ||||||||
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| Free cash flow |
$ | 12,858 | $ | 3,110 | $ | 31,885 | $ | 717 | ||||||||
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Lantheus Holdings, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands – unaudited)
| September 30, 2016 |
December 31, 2015 |
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| Assets |
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| Current assets: |
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| Cash and cash equivalents |
$ | 53,195 | $ | 28,596 | ||||
| Accounts receivable, net |
34,844 | 37,293 | ||||||
| Inventory |
16,057 | 15,622 | ||||||
| Other current assets |
6,369 | 3,851 | ||||||
| Assets held for sale |
— | 4,644 | ||||||
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| Total current assets |
110,465 | 90,006 | ||||||
| Property, plant & equipment, net |
84,980 | 86,517 | ||||||
| Capitalized software development costs, net |
7,676 | 9,137 | ||||||
| Intangibles, net |
16,406 | 20,496 | ||||||
| Goodwill |
15,714 | 15,714 | ||||||
| Other long-term assets |
19,728 | 20,509 | ||||||
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| Total assets |
$ | 254,969 | $ | 242,379 | ||||
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| Commitments and Contingencies |
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| Liabilities and Stockholders’ Deficit |
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| Current liabilities: |
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| Current portion of long-term debt |
$ | 3,650 | $ | 3,650 | ||||
| Accounts payable |
13,617 | 11,657 | ||||||
| Accrued expenses and other current liabilities |
21,850 | 18,502 | ||||||
| Liabilities held for sale |
— | 1,715 | ||||||
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| Total current liabilities |
39,117 | 35,524 | ||||||
| Asset retirement obligation |
8,710 | 8,145 | ||||||
| Long-term debt, net |
294,582 | 349,858 | ||||||
| Other long-term liabilities |
33,716 | 34,141 | ||||||
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| Total liabilities |
376,125 | 427,668 | ||||||
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| Stockholders’ deficit |
(121,156 | ) | (185,289 | ) | ||||
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| Total liabilities and stockholders’ deficit |
$ | 254,969 | $ | 242,379 | ||||
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###
CONTACT:
Lantheus Holdings, Inc.
Meara Murphy, Director, Investor Relations and Corporate Communications
978-671-8508