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): February 21, 2017
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 February 21, 2017, Lantheus Holdings, Inc. (the “Company”) announced via press release its financial results as of and for the three and twelve month periods ended December 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 February 21, 2017, entitled “Lantheus Holdings, Inc. Reports 2016 Fourth Quarter and Full Year Financial Results; Provides 2017 Guidance.” | |
| * | 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: Title: |
Michael P. Duffy General Counsel and Senior Vice President, Strategy and Business Development | |
Date: February 21, 2017
EXHIBIT INDEX
| Exhibit No. |
Description | |
| 99.1* | Press release of Lantheus Holdings, Inc. dated February 21, 2017, entitled “Lantheus Holdings, Inc. Reports 2016 Fourth Quarter and Full Year Financial Results; Provides 2017 Guidance.” | |
| * | 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 |
Lantheus Holdings, Inc. Reports 2016 Fourth Quarter and Full Year Financial Results; Provides 2017 Guidance
Company exceeds full year 2016 guidance, posts revenue of $301.9 million, net income of $26.8 million and
Adjusted EBITDA of $78.3 million
NORTH BILLERICA, Mass., February 21, 2017 –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 fourth quarter and full year ended December 31, 2016.
The Company’s worldwide revenues for the fourth quarter of 2016 totaled $74.4 million, compared to $71.2 million for the fourth quarter of 2015. For the full year 2016, worldwide revenues totaled $301.9 million, compared to $293.5 in 2015, exceeding 2016 guidance of $296 million to $299 million. Revenue results were driven by growth in sales of DEFINITY® and TechneLite®, partially offset by price concessions for Xenon as part of the Company’s nuclear products contracting strategy as well as the divestiture of the Company’s Canadian and Australian radiopharmacy businesses.
Net income for the fourth quarter of 2016 totaled $4.9 million or $0.13 per diluted share, compared to $3.9 million or $0.13 per diluted share for the fourth quarter of 2015. Full year 2016 net income totaled $26.8 million, compared to a net loss of $14.7 million in 2015. The full year $41.5 million improvement is primarily attributable to operational improvements, decreased interest expense and one-time activities in 2015 associated with the Company’s initial public offering and debt refinancing.
The Company’s fourth quarter 2016 Adjusted EBITDA (as defined below in the GAAP to non-GAAP reconciliation) was $19.8 million, or 26.7% of revenues, compared to $18.3 million, or 25.7% of revenues, in the fourth quarter of 2015. Full year 2016 Adjusted EBITDA was $78.3 million, or 25.9% of revenues, compared to $76.3 million, or 26.0% of revenues, for 2015, exceeding 2016 guidance of $73 million to $75 million. Higher Adjusted EBITDA was attributable to the strong performance of higher margin products in the U.S. and the Company’s shift to a distribution model in Canada and Australia, partially offset by the margin impact of price concessions attributed to the Company’s nuclear products contracting strategy and incremental sales and marketing expenses attributable to the growth of DEFINITY sales.
Mary Anne Heino, President and CEO, commented, “2016 was a successful year for the Company on a number of levels as we exceeded both revenue and Adjusted EBITDA guidance, delivering significant value to shareholders. Our strong results reflect 18.1% revenue growth of DEFINITY worldwide, execution of our nuclear products contracting strategy, and a consistent focus on optimizing our capital structure, including $75 million of reduction in our outstanding debt. We enter 2017 poised to drive continued growth while remaining focused on building our portfolio and strengthening the long-term financial results of the Company.”
Outlook
The Company anticipates worldwide revenues for full year 2017 of approximately $312 million to $317 million, compared to $301.9 million in 2016. For the first quarter of 2017, the Company expects worldwide revenues in the range of $77 million to $80 million.
The Company anticipates full year 2017 Adjusted EBITDA, as described in the GAAP to non-GAAP reconciliation provided later in this release, of $79 million to $82 million, representing 24.9% to 26.3% of anticipated worldwide revenues. For the first quarter of 2017, the Company expects Adjusted EBITDA in the range of $18 million to $20 million.
The Company’s guidance for worldwide revenues 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.
Page 1 of 12
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 65019185. 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 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. 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 revenues excluding the impact of foreign currency; adjusted operating income; adjusted net income; Adjusted EBITDA; adjusted net income per share – 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. 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 2017 outlook. 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 2017 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 –
Page 2 of 12
Lantheus Holdings, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share data – unaudited)
| Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues |
$ | 74,350 | $ | 71,201 | $ | 301,853 | $ | 293,461 | ||||||||
| Cost of goods sold |
39,703 | 37,820 | 164,073 | 157,939 | ||||||||||||
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| Gross profit |
34,647 | 33,381 | 137,780 | 135,522 | ||||||||||||
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| Operating expenses |
||||||||||||||||
| Sales and marketing |
8,686 | 7,806 | 36,542 | 34,740 | ||||||||||||
| General and administrative |
9,990 | 10,121 | 38,832 | 43,894 | ||||||||||||
| Research and development |
3,710 | 3,066 | 12,203 | 14,358 | ||||||||||||
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| Total operating expenses |
22,386 | 20,993 | 87,577 | 92,992 | ||||||||||||
| Gain (loss) on sales of assets |
(120 | ) | — | 6,385 | — | |||||||||||
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| Operating income |
12,141 | 12,388 | 56,588 | 42,530 | ||||||||||||
| Interest expense |
(5,819 | ) | (7,098 | ) | (26,618 | ) | (38,715 | ) | ||||||||
| Debt retirement costs |
(481 | ) | — | (1,896 | ) | — | ||||||||||
| Loss on extinguishment of debt |
— | — | — | (15,528 | ) | |||||||||||
| Other (expense) income, net |
(97 | ) | (317 | ) | 220 | (65 | ) | |||||||||
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| Income (loss) before income taxes |
5,744 | 4,973 | 28,294 | (11,778 | ) | |||||||||||
| Provision for income taxes |
875 | 1,057 | 1,532 | 2,968 | ||||||||||||
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| Net income (loss) |
$ | 4,869 | $ | 3,916 | $ | 26,762 | $ | (14,746 | ) | |||||||
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| Net income (loss) per common share: |
||||||||||||||||
| Basic |
$ | 0.13 | $ | 0.13 | $ | 0.84 | $ | (0.60 | ) | |||||||
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| Diluted |
$ | 0.13 | $ | 0.13 | $ | 0.82 | $ | (0.60 | ) | |||||||
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| Weighted-average common shares: |
||||||||||||||||
| Basic |
36,172,609 | 30,364,501 | 32,043,904 | 24,439,845 | ||||||||||||
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| Diluted |
37,853,125 | 30,364,914 | 32,655,958 | 24,439,845 | ||||||||||||
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Page 3 of 12
Lantheus Holdings, Inc.
Consolidated Segment Revenues Analysis
(in thousands – unaudited)
| Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||||||||||||
| 2016 | 2015 | % Change | 2016 | 2015 | % Change | |||||||||||||||||||
| United States |
||||||||||||||||||||||||
| DEFINITY |
$ | 33,180 | $ | 28,324 | 17.1 | % | $ | 128,677 | $ | 109,656 | 17.3 | % | ||||||||||||
| TechneLite |
21,130 | 14,667 | 44.1 | % | 85,412 | 62,034 | 37.7 | % | ||||||||||||||||
| Xenon |
7,458 | 10,931 | (31.8 | )% | 29,078 | 48,868 | (40.5 | )% | ||||||||||||||||
| Other |
2,965 | 3,645 | (18.7 | )% | 14,253 | 15,266 | (6.6 | )% | ||||||||||||||||
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| Total United States |
64,733 | 57,567 | 12.4 | % | 257,420 | 235,824 | 9.2 | % | ||||||||||||||||
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| International |
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| DEFINITY |
932 | 558 | 67.0 | % | 2,935 | 2,203 | 33.2 | % | ||||||||||||||||
| TechneLite |
3,466 | 2,450 | 41.5 | % | 13,805 | 10,528 | 31.1 | % | ||||||||||||||||
| Xenon |
2 | 2 | — | 8 | 30 | (73.3 | )% | |||||||||||||||||
| Other |
5,217 | 10,624 | (50.9 | )% | 27,685 | 44,876 | (38.3 | )% | ||||||||||||||||
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| Total International |
9,617 | 13,634 | (29.5 | )% | 44,433 | 57,637 | (22.9 | )% | ||||||||||||||||
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| Worldwide |
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| DEFINITY |
34,112 | 28,882 | 18.1 | % | 131,612 | 111,859 | 17.7 | % | ||||||||||||||||
| TechneLite |
24,596 | 17,117 | 43.7 | % | 99,217 | 72,562 | 36.7 | % | ||||||||||||||||
| Xenon |
7,460 | 10,933 | (31.8 | )% | 29,086 | 48,898 | (40.5 | )% | ||||||||||||||||
| Other |
8,182 | 14,269 | (42.7 | )% | 41,938 | 60,142 | (30.3 | )% | ||||||||||||||||
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| Total Revenues |
$ | 74,350 | $ | 71,201 | 4.4 | % | $ | 301,853 | $ | 293,461 | 2.9 | % | ||||||||||||
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Page 4 of 12
Lantheus Holdings, Inc.
Supplemental Revenue Information
(unaudited)
| December 31, 2016 Quarter to Date Sales Growth/(Decline) |
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| Domestic AsReported |
Int’l Constant Currency |
Int’l As Reported |
Total Constant Currency |
Total As Reported |
||||||||||||||||
| Products |
||||||||||||||||||||
| DEFINITY |
17.1 | % | 67.2 | % | 67.0 | % | 18.1 | % | 18.1 | % | ||||||||||
| TechneLite |
44.1 | % | 41.7 | % | 41.5 | % | 43.7 | % | 43.7 | % | ||||||||||
| Xenon |
(31.8 | )% | — | — | (31.8 | )% | (31.8 | )% | ||||||||||||
| Other |
(18.7 | )% | (51.5 | )% | (50.9 | )% | (43.1 | )% | (42.7 | )% | ||||||||||
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| Total Revenues |
12.4 | % | (29.9 | )% | (29.5 | )% | 4.3 | % | 4.4 | % | ||||||||||
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| December 31, 2016 Year to Date Sales Growth/(Decline) | ||||||||||||||||||||
| Domestic AsReported |
Int’l Constant Currency |
Int’l As Reported |
Total Constant Currency |
Total As Reported |
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| Products |
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| DEFINITY |
17.3 | % | 37.7 | % | 33.2 | % | 17.7 | % | 17.7 | % | ||||||||||
| TechneLite |
37.7 | % | 35.6 | % | 31.1 | % | 37.4 | % | 36.7 | % | ||||||||||
| Xenon |
(40.5 | )% | (73.3 | )% | (73.3 | )% | (40.5 | )% | (40.5 | )% | ||||||||||
| Other |
(6.6 | )% | (37.7 | )% | (38.3 | )% | (29.8 | )% | (30.3 | )% | ||||||||||
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| Total Revenues |
9.2 | % | (21.4 | )% | (22.9 | )% | 3.2 | % | 2.9 | % | ||||||||||
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Page 5 of 12
Lantheus Holdings, Inc.
Reconciliation of Revenues to Revenues Excluding the Impact of Foreign Currency
(in thousands – unaudited)
| Three Months Ended December 31, 2016 |
Year Ended December 31, 2016 |
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| International Revenues |
Total Revenues |
International Revenues |
Total Revenues |
|||||||||||||
| Revenues |
$ | 9,617 | $ | 74,350 | $ | 44,433 | $ | 301,853 | ||||||||
| Currency impact as compared to prior period |
(53 | ) | (53 | ) | 860 | 860 | ||||||||||
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| Revenues, excluding the impact of foreign currency |
$ | 9,564 | $ | 74,297 | $ | 45,293 | $ | 302,713 | ||||||||
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Page 6 of 12
Lantheus Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands – unaudited)
| Three Months Ended December 31, |
Year Ended December 31, |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Operating income |
$ | 12,141 | $ | 12,388 | $ | 56,588 | $ | 42,530 | ||||||||
| Reconciling items impacting Operating Income: |
||||||||||||||||
| Campus consolidation costs |
1,181 | — | 1,181 | 3,630 | ||||||||||||
| Sponsor and other costs |
117 | — | 117 | 6,527 | ||||||||||||
| Gain (loss) on sales of assets |
120 | — | (6,385 | ) | — | |||||||||||
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| Adjusted operating income |
$ | 13,559 | $ | 12,388 | $ | 51,501 | $ | 52,687 | ||||||||
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| Adjusted operating income, as a percentage revenues |
18.2 | % | 17.4 | % | 17.1 | % | 18.0 | % | ||||||||
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| Three Months Ended December 31, |
Year Ended December 31, |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income (loss) |
$ | 4,869 | $ | 3,916 | $ | 26,762 | $ | (14,746 | ) | |||||||
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| Reconciling items impacting Gross Profit: |
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| Campus consolidation costs |
— | — | — | 77 | ||||||||||||
| Reconciling items impacting Operating Expenses: |
||||||||||||||||
| Campus consolidation costs |
1,181 | — | 1,181 | 3,553 | ||||||||||||
| Sponsor and other costs |
117 | — | 117 | 6,527 | ||||||||||||
| Gain (loss) on sales of assets |
120 | — | (6,385 | ) | — | |||||||||||
| Reconciling items impacting Non-operating Expenses: |
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| Debt retirement costs |
481 | — | 1,896 | — | ||||||||||||
| Loss on debt extinguishment |
— | — | — | 15,528 | ||||||||||||
| Interest upon redemption of senior notes |
— | — | — | 3,250 | ||||||||||||
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| Adjusted net income |
$ | 6,768 | $ | 3,916 | $ | 23,571 | $ | 14,189 | ||||||||
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| Adjusted net income, as a percentage of revenues |
9.1 | % | 5.5 | % | 7.8 | % | 4.8 | % | ||||||||
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Page 7 of 12
Lantheus Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
| Three Months Ended December 31, |
Year Ended December 31, |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income (loss) per common share – Diluted |
$ | 0.13 | $ | 0.13 | $ | 0.82 | $ | (0.60 | ) | |||||||
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| Reconciling items impacting Gross Profit: |
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| Campus consolidation costs |
$ | — | $ | — | $ | — | $ | — | ||||||||
| Reconciling items impacting Operating Expenses: |
||||||||||||||||
| Campus consolidation costs |
$ | 0.04 | $ | — | $ | 0.04 | $ | 0.15 | ||||||||
| Sponsor and other costs |
$ | — | $ | — | $ | — | $ | 0.27 | ||||||||
| Gain (loss) on sales of assets |
$ | — | $ | — | $ | (0.20 | ) | $ | — | |||||||
| Reconciling items impacting Non-operating Expenses: |
||||||||||||||||
| Debt retirement costs |
$ | 0.01 | $ | — | $ | 0.06 | $ | — | ||||||||
| Loss on debt extinguishment |
$ | — | $ | — | $ | — | $ | 0.64 | ||||||||
| Interest upon redemption of senior notes |
$ | — | $ | — | $ | — | $ | 0.13 | ||||||||
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| Adjusted net income per common share – Diluted |
$ | 0.18 | $ | 0.13 | $ | 0.72 | $ | 0.59 | ||||||||
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| Weighted-average common shares outstanding – Diluted |
37,853,125 | 30,364,914 | 32,655,958 | 24,439,845 | ||||||||||||
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Page 8 of 12
Lantheus Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands – unaudited)
| Three Months Ended December 31, |
Year Ended December 31, |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income (loss) |
$ | 4,869 | $ | 3,916 | $ | 26,762 | $ | (14,746 | ) | |||||||
| Interest expense, net |
5,816 | 7,092 | 26,598 | 38,691 | ||||||||||||
| Provision for income taxes(a) |
452 | 619 | 477 | 1,314 | ||||||||||||
| Depreciation |
3,529 | 2,164 | 9,915 | 11,813 | ||||||||||||
| Amortization of intangible assets |
2,070 | 2,160 | 8,348 | 7,838 | ||||||||||||
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| EBITDA |
16,736 | 15,951 | 72,100 | 44,910 | ||||||||||||
| Reconciling items impacting EBITDA: |
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| Stock and incentive plan compensation |
791 | 478 | 3,527 | 2,002 | ||||||||||||
| Legal fees relating to business interruption claim(b) |
— | 5 | 9 | 72 | ||||||||||||
| Asset write-off(c) |
818 | 286 | 1,906 | 1,468 | ||||||||||||
| Severance and recruiting costs(d) |
204 | 507 | 2,090 | 1,360 | ||||||||||||
| Sponsor fee and other(e) |
117 | — | 117 | 7,340 | ||||||||||||
| Debt retirement costs |
481 | — | 1,896 | — | ||||||||||||
| Extinguishment of debt |
— | — | — | 15,528 | ||||||||||||
| Gain (loss) on sales of assets |
120 | — | (6,385 | ) | — | |||||||||||
| New manufacturer costs(f) |
578 | 1,081 | 3,029 | 3,649 | ||||||||||||
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| Adjusted EBITDA |
$ | 19,845 | $ | 18,308 | $ | 78,289 | $ | 76,329 | ||||||||
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| Adjusted EBITDA, as a percentage of revenues |
26.7 | % | 25.7 | % | 25.9 | % | 26.0 | % | ||||||||
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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 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 expenses paid on behalf of our former sponsor’s secondary offering in 2016, 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. |
Page 9 of 12
Lantheus Holdings, Inc.
Reconciliation of Free Cash Flow
(in thousands – unaudited)
| Three Months Ended December 31, |
Year Ended December 31, |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Cash provided by operating activities |
$ | 12,781 | $ | 12,626 | $ | 49,642 | $ | 21,762 | ||||||||
| Capital expenditures |
(2,422 | ) | (4,732 | ) | (7,398 | ) | (13,151 | ) | ||||||||
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| Free cash flow |
$ | 10,359 | $ | 7,894 | $ | 42,244 | $ | 8,611 | ||||||||
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Page 10 of 12
Lantheus Holdings, Inc.
Condensed Consolidated Balance Sheets
(in thousands – unaudited)
| December 31, 2016 |
December 31, 2015 |
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| Assets |
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| Current assets: |
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| Cash and cash equivalents |
$ | 51,178 | $ | 28,596 | ||||
| Accounts receivable, net |
36,818 | 37,293 | ||||||
| Inventory |
17,640 | 15,622 | ||||||
| Other current assets |
5,183 | 3,851 | ||||||
| Assets held for sale |
— | 4,644 | ||||||
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| Total current assets |
110,819 | 90,006 | ||||||
| Property, plant & equipment, net |
94,187 | 95,654 | ||||||
| Intangibles, net |
15,118 | 20,496 | ||||||
| Goodwill |
15,714 | 15,714 | ||||||
| Other long-term assets |
20,060 | 20,509 | ||||||
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| Total assets |
$ | 255,898 | $ | 242,379 | ||||
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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 |
18,940 | 11,657 | ||||||
| Accrued expenses and other current liabilities |
21,249 | 18,502 | ||||||
| Liabilities held for sale |
— | 1,715 | ||||||
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| Total current liabilities |
43,839 | 35,524 | ||||||
| Asset retirement obligation |
9,370 | 8,145 | ||||||
| Long-term debt, net |
274,460 | 349,858 | ||||||
| Other long-term liabilities |
34,745 | 34,141 | ||||||
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| Total liabilities |
362,414 | 427,668 | ||||||
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| Stockholders’ deficit |
(106,516 | ) | (185,289 | ) | ||||
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| Total liabilities and stockholders’ deficit |
$ | 255,898 | $ | 242,379 | ||||
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Page 11 of 12
###
CONTACTS:
Investors
Gary Santo
Head of Capital Markets and Investor Relations
978-671-8960
Media
Meara Murphy
Director, Investor Relations and Corporate Communications
978-671-8508
Page 12 of 12