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))	

 

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.	

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: May 3, 2016

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.”

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.

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 –

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	  	

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	% 	

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	% 	

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	  	

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	  	

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	% 	

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	  	

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	  	
 	  	 	 	 	 	 	 	 	
###