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 5, 2015

LANTHEUS MEDICAL IMAGING, INC.
(Exact name of registrant as specified in its charter)

 
 	 	 	 	 	
Delaware	 	333-169785	 	51-0396366	
(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 5, 2015, Lantheus Medical Imaging, Inc. (the “Company”) announced via press release its financial results as of and for the three months ended March 31, 2015. 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 Medical Imaging, Inc. dated May 5, 2015, announcing its financial results as of and for the three months ended March 31, 2015.	
 
*	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 MEDICAL IMAGING, INC.	
 	 	
By:	 	/s/ Michael P. Duffy	
Name:	 	Michael P. Duffy	
Title:	 	Vice President and General Counsel	
Date: May 5, 2015

EXHIBIT INDEX

Exhibit
No.	  	Description	
 	 	
99.1*	  	Press release of Lantheus Medical Imaging, Inc. dated May 5, 2015, announcing its financial results as of and for the three and nine months ended March 31, 2015.	
 
*	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

FOR RELEASE 4:00 PM EASTERN
TUESDAY, MAY 5, 2015
CONTACTS:

Investor Relations	 	Media Relations	
John Bakewell	 	Meara Murphy  	
978-436-7073	 	978-671-8508   	
Lantheus Medical Imaging Reports 2015 First Quarter
Financial Results
First quarter Adjusted EBITDA increases 29% to $20.6 million
DEFINITY® revenue increases 15%, growing sequentially for the eleventh consecutive quarter
No. BILLERICA, Mass. (May 5, 2015) – Lantheus Medical Imaging, Inc. (“Lantheus” or “the Company”), a wholly-owned operating subsidiary of parent company Lantheus Holdings, Inc. and a global leader in developing, manufacturing, selling and distributing innovative diagnostic imaging agents and products, today reported financial results for its first quarter ended March 31, 2015.
Worldwide revenue for the first quarter of 2015 totaled $74.8 million, representing a 2% increase as-reported and a 4% increase on a constant-currency basis over $73.3 million reported for the first quarter of 2014.
The Company reported quarterly GAAP-earnings profitability during the first quarter of 2015 with net income totaling $700,000, an improvement of nearly $2.0 million over a net loss of $1.3 million reported for the first quarter of 2014.
Net income for the first quarter of 2015 included $3.6 million of non-cash costs associated with the Company’s previously announced campus consolidation initiative. The Company’s first quarter 2015 net income, as adjusted for the above items, totaled $4.3 million, an improvement of $5.6 million, compared to a net loss of $1.3 million for the first quarter of 2014. The attached financial tables include a reconciliation of U.S. GAAP to as-adjusted results.
The Company’s first quarter Adjusted EBITDA, as defined in the GAAP to non-GAAP reconciliation provided later in this release, was $20.6 million, increasing by 29% from $16.0 million in the same quarter of the prior year.

Jeff Bailey, President and CEO commented, “We delivered a strong start to 2015, as reflected in our first quarter results. We are pleased once again with the continued strength of DEFINITY, which now has grown sequentially every quarter since mid-2012, driven by our ongoing efforts to expand the appropriate use of contrast in cardiac echo procedures. Our first quarter performance also reflects lower sales volumes but higher average selling prices and some mix shift in one customer channel, driven by a change in contract status. While we anticipate that the benefit of this change will moderate in future quarters, we are nonetheless pleased with its contribution to our strong start to 2015.”
Mr. Bailey continued, “Further contributing to our strong Q1 performance, our operating expense levels, as adjusted, declined versus the year-ago period, reflecting our continued efforts to improve operating efficiency and resulting in 190 basis points of margin improvement, as adjusted, versus the year-ago quarter. Altogether, we delivered first quarter Adjusted EBITDA of $20.6 million and free cash flow of $11.7 million for an excellent start to 2015. Looking ahead to the rest of the year, our efforts will continue to focus on initiatives that strengthen our business and improve our operating model while meeting the needs of the customers we serve.”
Conference Call
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 30201918. 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 5, 2015 through midnight on May 19, 2015. 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 30201918. 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 may 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 .
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, such as net sales excluding the impact of foreign currency, net income, as adjusted, EBITDA and Adjusted EBITDA. 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. Such forward-looking statements are subject to risks and uncertainties that may be described from time to time in the Company’s filings with the Securities and Exchange Commission. 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.
About Lantheus Medical Imaging, Inc. and Lantheus Holdings, Inc.
Lantheus Medical Imaging, Inc., a wholly-owned operating subsidiary of parent company, Lantheus Holdings, Inc., is a global leader in developing, manufacturing, selling and distributing innovative diagnostic imaging agents and products. Lantheus provides a broad portfolio of products, which are primarily used for the diagnosis of cardiovascular diseases. 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 Xe 133 Gas (Xenon 133), an inhaled radiopharmaceutical imaging agent used to evaluate pulmonary function and for imaging the lungs.
Lantheus has more than 500 employees worldwide with headquarters in North Billerica, Massachusetts, and offices in Puerto Rico, Canada and Australia.
– Tables Follow –

Lantheus MI Intermediate, Inc. and subsidiaries
Consolidated Statements of Operations
(dollars in thousands – unaudited)

 	  	Three Months Ended March 31,	 	
 	  	2015	 	 	2014	 	
Revenues	  	$	74,823	  	 	$	73,336	  	
Cost of goods sold	  	 	39,054	  	 	 	43,275	  	
 	  	 	 	 	 	 	 	 	
Gross profit	 	 	35,769	  	 	 	30,061	  	
Operating expenses:	 	 	 	 	 	 	 	 	
Sales and marketing expenses	 	 	9,072	  	 	 	9,498	  	
General and administrative expenses	 	 	8,841	  	 	 	8,852	  	
Research and development expenses	 	 	6,196	  	 	 	3,222	  	
 	  	 	 	 	 	 	 	 	
Total operating expenses	 	 	24,109	  	 	 	21,572	  	
Operating income	 	 	11,660	  	 	 	8,489	  	
Interest expense, net	 	 	(10,623	) 	 	 	(10,552	) 	
Other expense, net	 	 	(383	) 	 	 	(414	) 	
 	  	 	 	 	 	 	 	 	
Income (loss) before income taxes	 	 	654	  	 	 	(2,477	) 	
Benefit for income taxes	 	 	(3	) 	 	 	(1,192	) 	
 	  	 	 	 	 	 	 	 	
Net income (loss)	 	$	657	  	 	$	(1,285	) 	

Lantheus MI Intermediate, Inc. and subsidiaries
Consolidated Revenue Analysis
(dollars in thousands – unaudited)

 	  	Three Months Ended March 31,	 	
 	  	2015	 	  	2014	 	  	% change	 	
U.S.	  	 	 	 	  	 	 	 	  	 	 	 	
DEFINITY	  	 	25,182	  	  	 	21,984	  	  	 	14.5	% 	
TechneLite	  	 	18,173	  	  	 	20,100	  	  	 	(9.6	)% 	
Xenon	  	 	13,186	  	  	 	9,705	  	  	 	35.9	% 	
Other	  	 	4,126	  	  	 	5,022	  	  	 	(17.8	)% 	
 	  	 	 	 	  	 	 	 	  	 	 	 	
Total U.S.	 	$	60,667	  	 	$	56,811	  	 	 	6.8	% 	
 	  	 	 	 	  	 	 	 	  	 	 	 	
International	 	 	 	 	 	 	 	 	 	 	 	 	
DEFINITY	 	 	484	  	 	 	375	  	 	 	29.1	% 	
TechneLite	 	 	2,687	  	 	 	2,941	  	 	 	(8.6	)% 	
Xenon	 	 	8	  	 	 	4	  	 	 	100.0	% 	
Other	 	 	10,977	  	 	 	13,205	  	 	 	(16.9	)% 	
 	  	 	 	 	  	 	 	 	  	 	 	 	
Total International	 	$	14,156	  	 	$	16,525	  	 	 	(14.3	)% 	
 	  	 	 	 	  	 	 	 	  	 	 	 	
Worldwide	 	 	 	 	 	 	 	 	 	 	 	 	
DEFINITY	 	 	25,666	  	 	 	22,359	  	 	 	14.8	% 	
TechneLite	 	 	20,860	  	 	 	23,041	  	 	 	(9.5	)% 	
Xenon	 	 	13,194	  	 	 	9,709	  	 	 	35.9	% 	
Other	 	 	15,103	  	 	 	18,227	  	 	 	(17.1	)% 	
 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Revenues	 	$	74,823	  	 	$	73,336	  	 	 	2.0	% 	

Lantheus MI Intermediate, Inc. and subsidiaries
Supplemental Revenue Information
(unaudited)

 	  	March 31, 2015 Quarter to Date Revenue Growth/(Decline)	 	
 	  	Domestic As
Reported	 	 	Int’l
Constant
Currency	 	 	Int’l As
Reported	 	 	Total
Constant
Currency	 	 	Total As
Reported	 	
Products	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
DEFINITY	  	 	15	% 	 	 	46	% 	 	 	29	% 	 	 	15	% 	 	 	15	% 	
TechneLite	  	 	(10	)% 	 	 	0	% 	 	 	(9	)% 	 	 	(8	)% 	 	 	(9	)% 	
Xenon	  	 	36	% 	 	 	122	% 	 	 	100	% 	 	 	36	% 	 	 	36	% 	
Other	  	 	(18	)% 	 	 	(9	)% 	 	 	(17	)% 	 	 	(12	)% 	 	 	(17	)% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Revenues	 	 	7	% 	 	 	(6	)% 	 	 	(14	)% 	 	 	4	% 	 	 	2	% 	

Lantheus MI Intermediate, Inc. and subsidiaries
Reconciliation of Revenues to Revenues Excluding the Impact of Foreign Currency
(dollars in thousands – unaudited)

 	  	Three Months Ended March 31, 2015	 	
 	  	International Revenues	 	  	Total Revenues	 	
Revenues, as reported	  	$	14,156	  	  	$	74,823	  	
Currency impact as compared to prior period	  	 	1,307	  	  	 	1,307	  	
 	  	 	 	 	  	 	 	 	
Revenues, excluding the impact of foreign currency	 	$	15,463	  	 	$	76,130	  	

Lantheus MI Intermediate, Inc. and subsidiaries
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(dollars in thousands – unaudited)

 	  	Three Months Ended March 31,	 	
 	  	2015	 	 	2014	 	
Net Income (loss)	  	 	 	 	 	 	 	 	
Net income (loss), as reported	  	$	657	  	 	$	(1,285	) 	
Reconciling items impacting	  	 	 	 	 	 	 	 	
Gross Profit:	  	 	 	 	 	 	 	 	
Campus Consolidation Costs	  	 	77	  	 	 	—  	  	
Reconciling items impacting	  	 	 	 	 	 	 	 	
Operating Expenses:	  	 	 	 	 	 	 	 	
Campus Consolidation Costs	  	 	3,553	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	
Net income (loss), as adjusted	 	$	4,287	  	 	$	(1,285	) 	
 	  	 	 	 	 	 	 	 	
Net income (loss), as adjusted, as a percentage of revenues	 	 	5.7	% 	 	 	(1.8	)% 	

Lantheus MI Intermediate, Inc. and subsidiaries
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(dollars in thousands – unaudited)

 	  	Three Months Ended March 31,	 	
 	  	2015	 	 	2014	 	
EBITDA	  	 	 	 	 	 	 	 	
Net income (loss), as reported	  	$	657	  	 	$	(1,285	) 	
Interest expense, net	  	 	10,623	  	 	 	10,552	  	
Provision (benefit) for income taxes	  	 	1	  	 	 	(1,017	) 	
Depreciation	  	 	5,688	  	 	 	2,214	  	
Amortization of intangible assets	  	 	1,896	  	 	 	2,302	  	
 	  	 	 	 	 	 	 	 	
EBITDA	 	 	18,865	  	 	 	12,766	  	
Reconciling items impacting	 	 	 	 	 	 	 	 	
EBITDA:	 	 	 	 	 	 	 	 	
Non-cash stock-based compensation	 	 	277	  	 	 	284	  	
Legal fees relating to business interruption claim	 	 	17	  	 	 	234	  	
Asset write-off	 	 	180	  	 	 	420	  	
Severance and recruiting costs	 	 	97	  	 	 	85	  	
Sponsor fee and other	 	 	289	  	 	 	251	  	
New manufacturer costs	 	 	862	  	 	 	1,978	  	
 	  	 	 	 	 	 	 	 	
Adjusted EBITDA	 	$	20,587	  	 	$	16,018	  	
 	  	 	 	 	 	 	 	 	
Adjusted EBITDA as a percentage of revenues	 	 	27.5	% 	 	 	21.8	% 	

Lantheus MI Intermediate, Inc. and subsidiaries
Reconciliation of Free Cash Flow
(dollars in thousands – unaudited)

 	  	Three Months Ended	 	
 	  	March 31, 2015	 	 	March 31, 2014	 	
Net cash provided by (used in) operating activities	  	$	15,157	  	 	$	(15	) 	
Capital expenditures	  	 	(3,498	) 	 	 	(1,482	) 	
 	  	 	 	 	 	 	 	 	
Free cash flow	 	$	11,659	  	 	$	(1,497	) 	

Lantheus MI Intermediate, Inc. and subsidiaries
Condensed Consolidated Balance Sheets
(dollars in thousands – unaudited)

 	  	March 31, 2015	 	 	December 31, 2014	 	
Assets	  	 	 	 	 	 	 	 	
Current assets:	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	28,821	  	 	$	17,817	  	
Accounts receivable, net	  	 	38,401	  	 	 	41,540	  	
Inventory	  	 	16,153	  	 	 	15,582	  	
Income tax receivable	  	 	157	  	 	 	247	  	
Deferred tax assets	  	 	255	  	 	 	256	  	
Other current assets	  	 	4,795	  	 	 	3,739	  	
 	  	 	 	 	 	 	 	 	
Total current assets	 	 	88,582	  	 	 	79,181	  	
Property, plant and equipment, net	 	 	92,102	  	 	 	96,014	  	
Capitalized software development costs, net	 	 	2,268	  	 	 	2,421	  	
Intangibles, net	 	 	25,582	  	 	 	27,191	  	
Goodwill	 	 	15,714	  	 	 	15,714	  	
Deferred financing costs	 	 	6,668	  	 	 	7,349	  	
Deferred tax assets	 	 	334	  	 	 	328	  	
Other long-term assets	 	 	17,486	  	 	 	19,318	  	
 	  	 	 	 	 	 	 	 	
Total assets	 	$	248,736	  	 	$	247,516	  	
 	  	 	 	 	 	 	 	 	
Liabilities and stockholder’s deficit	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
Line of credit	 	$	8,000	  	 	$	8,000	  	
Accounts payable	 	 	13,053	  	 	 	15,665	  	
Accrued expenses and other liabilities	 	 	29,876	  	 	 	24,579	  	
Deferred tax liability	 	 	148	  	 	 	152	  	
Deferred revenue	 	 	129	  	 	 	132	  	
 	  	 	 	 	 	 	 	 	
Total current liabilities	 	 	51,206	  	 	 	48,528	  	
Asset retirement obligation	 	 	7,373	  	 	 	7,435	  	
Long-term debt, net	 	 	399,348	  	 	 	399,280	  	
Deferred tax liability	 	 	246	  	 	 	247	  	
Other long-term liabilities	 	 	31,106	  	 	 	32,995	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	 	 	489,279	  	 	 	488,485	  	
 	  	 	 	 	 	 	 	 	
Stockholder’s deficit	 	 	(240,543	) 	 	 	(240,969	) 	
 	  	 	 	 	 	 	 	 	
Total liabilities and stockholder’s deficit	 	$	248,736	  	 	$	247,516	  	
 	  	 	 	 	 	 	 	 	
###