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): March 4, 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 March 4, 2015, Lantheus Medical Imaging, Inc. (the “Company”) announced via press release its financial results as of and for the three and twelve months ended December 31, 2014. 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 March 4, 2015, announcing its financial results as of and for the three and twelve months ended December 31, 2014.	
 
*	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: March 4, 2015

EXHIBIT INDEX

Exhibit
No.	  	Description	
 	 	
99.1*	  	Press release of Lantheus Medical Imaging, Inc. dated March 4, 2015, announcing its financial results as of and for the three and twelve months ended December 31, 2014.	
 
*	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
WEDNESDAY, MARCH 4, 2015

CONTACTS:	 	 	
Linda Lennox	 	Meara Murphy	
Office: 978-671-8854	 	Office: 978-671-8508	
Cell: 908-627-3424	 	Cell: 617-794-1045	
Lantheus Medical Imaging Reports 2014 Fourth Quarter
and Full Year Financial Results
Fourth quarter worldwide revenue increases 7% as-reported and 9% constant currency; strong DEFINITY® performance driven by continued market adoption and share gains
Fourth quarter Adjusted EBITDA increases 28% to $19.4 million; Company posts full year Adjusted EBITDA of $70.8 million
No. BILLERICA, Mass. (March 4, 2015) – Lantheus Medical Imaging, Inc. (“Lantheus” or “the Company”), a wholly-owned operating subsidiary of parent company Lantheus MI Intermediate, Inc. and a global leader in developing, manufacturing, selling and distributing innovative diagnostic imaging agents, today reported financial results for its fourth quarter and full year ended December 31, 2014.
Worldwide revenue for the fourth quarter of 2014 totaled $77.0 million, representing a 7% increase as-reported and a 9% increase on a constant-currency basis over $71.7 million reported for the fourth quarter of 2013.
The Company reported quarterly GAAP-earnings profitability during the fourth quarter of 2014 with net income totaling $300,000, an improvement of $12.6 million over a net loss of $12.3 million reported for the fourth quarter of 2013.
Net income for the fourth quarter of 2014 included $1.2 million of non-cash costs associated with the Company’s previously-announced campus consolidation initiative. Net loss for the fourth quarter of 2013 included a $15.4 million non-cash charge for the write-down of certain intangibles, an $8.9 million credit for a special recovery from a manufacturer and a $0.4 million gain on a land sale.
The Company’s fourth quarter 2014 net income, as adjusted for the above items, totaled $1.5 million, an improvement of $7.6 million, compared to a net loss of $6.1 million for the fourth quarter of 2013. The attached financial tables include a reconciliation of U.S. GAAP to as-adjusted results.

The Company’s fourth quarter Adjusted EBITDA, as defined in the GAAP to non-GAAP reconciliation provided later in this release, was $19.4 million, increasing by 28% from $15.2 million in the same quarter of the prior year.
Jeff Bailey, President and CEO commented, “We are very pleased with our fourth quarter results and our strong finish to what has been an excellent year for Lantheus. Consistent with the themes we’ve experienced throughout 2014, our fourth quarter performance reflects continued, solid revenue growth and operating margin expansion, as well as sequential and year-over-year improvement in Adjusted EBITDA. Our strong quarterly sales performance for DEFINITY was driven by our continued success in expanding the appropriate use of contrast in cardiac echo procedures, while also growing our respective market share. With solid U.S. performances from all major product lines, our U.S. revenue growth accelerated to 12% during the fourth quarter, driving our adjusted operating and EBITDA margins to 17% and 25%, respectively.”
Mr. Bailey continued, “The improvement in our business fundamentals and operational efficiencies over the last two years is significant and provides a solid foundation as we enter 2015. Looking ahead, we are focused on a number of strategic and tactical objectives intended to further strengthen our business, our operating profile, and our ability to meet and exceed the needs of our customers. We look forward to pursuing these initiatives while creating additional opportunities to further improve our business and financial results.”
For the full year of 2014, worldwide revenue totaled $301.6 million, representing a 6% increase on an as-reported and an 8% increase on a constant-currency basis over $283.7 million reported for 2013. On a GAAP basis, the Company reported a net loss of $1.2 million for 2014, an improvement of $60.5 million over the net loss of $61.7 million for 2013. Full year GAAP results included the aforementioned fourth-quarter items and a $6.8 million write-down of land during the third quarter of 2013. Adjusted for those items, the Company achieved positive full year 2014 net income totaling $41,000, compared to a net loss of $48.7 million for 2013. The Company’s full year 2014 Adjusted EBITDA totaled $70.8 million, an improvement of $32.4 million over the $38.4 million reported for 2013. The attached financial tables include a reconciliation of U.S. GAAP to as-adjusted results.
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 1-866-578-5771 (U.S. callers) or 1-617-213-8055 (international callers) and provide passcode 92067003. 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 March 4, 2015 through midnight on April 1, 2015. To access a replay of the conference call, dial 1-888-286-8010 (U.S. callers) or 1-617-801-6888 (international callers), and provide passcode 55732560. 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 MI Intermediate, Inc.
Lantheus Medical Imaging, Inc., a wholly-owned operating subsidiary of parent company, Lantheus MI Intermediate, Inc., is a global leader in developing, manufacturing, selling and distributing innovative diagnostic imaging agents. 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
December 31,	 	 	Year Ended
December 31,	 	
 	  	2014	 	 	2013	 	 	2014	 	 	2013	 	
 	 	 	 	 	
Revenues	  	$	76,969	  	 	$	71,668	  	 	$	301,600	  	 	$	283,672	  	
Cost of goods sold	  	 	44,208	  	 	 	61,787	  	 	 	176,081	  	 	 	206,311	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	 	 	32,761	  	 	 	9,881	  	 	 	125,519	  	 	 	77,361	  	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales and marketing expenses	 	 	7,889	  	 	 	7,961	  	 	 	35,116	  	 	 	35,227	  	
General and administrative expenses	 	 	8,357	  	 	 	7,481	  	 	 	34,921	  	 	 	33,159	  	
Research and development expenses	 	 	4,715	  	 	 	5,031	  	 	 	13,673	  	 	 	30,459	  	
Impairment of land	 	 	—  	  	 	 	(382	) 	 	 	—  	  	 	 	6,406	  	
Proceeds from manufacturer	 	 	—  	  	 	 	(8,876	) 	 	 	—  	  	 	 	(8,876	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	 	 	20,961	  	 	 	11,215	  	 	 	83,710	  	 	 	96,375	  	
Operating income (loss)	 	 	11,800	  	 	 	(1,334	) 	 	 	41,809	  	 	 	(19,014	) 	
Interest expense, net	 	 	(10,557	) 	 	 	(10,488	) 	 	 	(42,261	) 	 	 	(42,811	) 	
Other income (expense), net	 	 	626	  	 	 	267	  	 	 	478	  	 	 	1,161	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before income taxes	 	 	1,869	  	 	 	(11,555	) 	 	 	26	  	 	 	(60,664	) 	
Provision for income taxes	 	 	1,569	  	 	 	747	  	 	 	1,195	  	 	 	1,014	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	$	300	  	 	$	(12,302	) 	 	$	(1,169	) 	 	$	(61,678	) 	

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

 	  	Three Months Ended
December 31,	 	 	Year Ended
December 31,	 	
 	  	2014	 	  	2013	 	  	% change	 	 	2014	 	  	2013	 	  	% change	 	
U.S.	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	  	 	 	
DEFINITY	  	 	25,080	 	  	 	21,744	  	  	 	15.3	%	 	 	93,848	 	  	 	76,539	  	  	 	22.6	%	
TechneLite	  	 	20,719	 	  	 	19,544	  	  	 	6.0	%	 	 	82,321	 	  	 	80,609	  	  	 	2.1	% 	
Xenon	  	 	9,023	 	  	 	7,970	  	  	 	13.2	%	 	 	36,542	 	  	 	32,086	  	  	 	13.9	% 	
Cardiolite	  	 	1,353	 	  	 	1,288	  	  	 	5.0	%	 	 	3,268	 	  	 	8,612	  	  	 	(62.1	)% 	
Other	  	 	5,537	 	  	 	4,603	  	  	 	20.3	%	 	 	20,541	 	  	 	15,793	  	  	 	30.1	%	

Total U.S.	 	$	61,712	  	 	$	55,149	  	 	 	11.9	%	 	$	236,520	 	 	$	213,639	  	 	 	10.7	%	

International	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	  	 	 	
DEFINITY	  	 	545	 	  	 	418	  	  	 	30.4	%	 	 	1,912	 	  	 	1,555	  	  	 	23.0	%	
TechneLite	  	 	2,691	 	  	 	2,548	  	  	 	5.6	%	 	 	11,267	 	  	 	11,586	  	  	 	(2.8	)% 	
Xenon	  	 	1	 	  	 	5	  	  	 	(80.0	)%	 	 	7	 	  	 	39	  	  	 	(82.1	)% 	
Cardiolite	  	 	3,305	 	  	 	4,110	  	  	 	(19.6	)%	 	 	15,555	 	  	 	17,525	  	  	 	(11.2	)% 	
Other	  	 	8,715	 	  	 	9,438	  	  	 	(7.7	)%	 	 	36,339	 	  	 	39,328	  	  	 	(7.6	)%	
 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total International	 	$	15,257	  	 	$	16,519	  	 	 	(7.6	)% 	 	$	65,080	  	 	$	70,033	  	 	 	(7.1	)% 	

Worldwide	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	  	 	 	
DEFINITY	  	 	25,625	 	  	 	22,162	  	  	 	15.6	%	 	 	95,760	 	  	 	78,094	  	  	 	22.6	% 	
TechneLite	  	 	23,410	 	  	 	22,092	  	  	 	6.0	%	 	 	93,588	 	  	 	92,195	  	  	 	1.5	% 	
Xenon	  	 	9,024	 	  	 	7,975	  	  	 	13.2	%	 	 	36,549	 	  	 	32,125	  	  	 	13.8	% 	
Cardiolite	  	 	4,658	 	  	 	5,398	  	  	 	(13.7	)%	 	 	18,823	 	  	 	26,137	  	  	 	(28.0	)% 	
Other	  	 	14,252	 	  	 	14,041	  	  	 	1.5	%	 	 	56,880	 	  	 	55,121	  	  	 	3.2	% 	

Total Revenues	 	$	76,969	  	 	$	71,668	  	 	 	7.4	% 	 	$	301,600	  	 	$	283,672	  	 	 	6.3	% 	

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

 	  	December 31, 2014 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	  	 	15	% 	 	 	41	% 	 	 	30	% 	 	 	16	% 	 	 	16	% 	
TechneLite	  	 	6	% 	 	 	13	% 	 	 	6	% 	 	 	7	% 	 	 	6	% 	
Xenon	  	 	13	% 	 	 	(71	)% 	 	 	(80	)% 	 	 	13	% 	 	 	13	% 	
Cardiolite	  	 	5	% 	 	 	(14	)% 	 	 	(20	)% 	 	 	(10	)% 	 	 	(14	)% 	
Other	  	 	20	% 	 	 	(2	)% 	 	 	(8	)% 	 	 	5	% 	 	 	2	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Revenues	 	 	12	% 	 	 	(2	)% 	 	 	(8	)% 	 	 	9	% 	 	 	7	% 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	December 31, 2014 Year-to-Date Sales Growth/(Decline)	 	
 	  	Domestic As
Reported	 	 	Int’l Constant
Currency	 	 	Int’l As
Reported	 	 	Total Constant
Currency	 	 	Total As
Reported	 	
Products	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
DEFINITY	  	 	23	% 	 	 	31	% 	 	 	23	% 	 	 	23	% 	 	 	23	% 	
TechneLite	  	 	2	% 	 	 	3	% 	 	 	(3	)% 	 	 	2	% 	 	 	2	% 	
Xenon	  	 	14	% 	 	 	(82	)% 	 	 	(82	)% 	 	 	14	% 	 	 	14	% 	
Cardiolite	  	 	(62	)% 	 	 	(7	)% 	 	 	(11	)% 	 	 	(25	)% 	 	 	(28	)% 	
Other	  	 	30	% 	 	 	(3	)% 	 	 	(8	)% 	 	 	7	% 	 	 	3	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Revenues	 	 	11	% 	 	 	(2	)% 	 	 	(7	)% 	 	 	8	% 	 	 	6	% 	

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

 	  	Three Months Ended
December 31, 2014	 	  	Year Ended
December, 2014	 	
 	  	International
Net Sales	 	  	Total Net
Sales	 	  	International
Net Sales	 	  	Total Net
Sales	 	
 	 	 	 	 	
Net sales, as reported	  	$	15,257	  	  	$	76,969	  	  	$	65,080	  	  	$	301,600	 	
Currency impact as compared to prior period	  	 	991	  	  	 	991	  	  	 	3,461	  	  	 	3,461	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net sales, excluding the impact of foreign currency	 	$	16,248	  	 	$	77,960	  	 	$	68,541	  	 	$	305,061	  	

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

 	  	Three Months Ended
December 31,	 	 	Year Ended
December 31,	 	
 	  	2014	 	 	2013	 	 	2014	 	 	2013	 	
Net Income (loss)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss), as reported	  	$	300	  	 	$	(12,302	) 	 	$	(1,169	) 	 	$	(61,678	) 	
Reconciling items impacting Gross Profit:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Intangible Impairment	  	 	—  	  	 	 	15,440	  	 	 	—  	  	 	 	15,440	  	
Reconciling items impacting Operating Expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Proceeds from Manufacturer	  	 	—  	  	 	 	(8,876	) 	 	 	—  	  	 	 	(8,876	) 	
Campus Consolidation Costs	  	 	1,210	  	 	 	—  	  	 	 	1,210	  	 	 	—  	  	
Impairment of Land	  	 	—  	  	 	 	(382	) 	 	 	—  	  	 	 	6,406	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss), as adjusted	 	$	1,510	  	 	$	(6,120	) 	 	$	41	  	 	$	(48,708	) 	

Net income (loss), as adjusted, as a percentage of net sales	 	 	2.0	% 	 	 	(8.5	)% 	 	 	0.0	% 	 	 	(17.2	)% 	

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

 	  	Three Months Ended
December 31,	 	 	Year Ended
December 31,	 	
 	  	2014	 	 	2013	 	 	2014	 	 	2013*	 	
EBITDA	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss), as reported	  	$	300	 	 	$	(12,302	)	 	$	(1,169	)	 	$	(61,678	)	
Interest expense, net	  	 	10,557	  	 	 	10,488	  	 	 	42,261	  	 	 	42,811	  	
Provision (benefit) for income taxes	  	 	977	  	 	 	312	  	 	 	441	  	 	 	(127	) 	
Depreciation	  	 	3,387	  	 	 	2,221	  	 	 	9,901	  	 	 	9,336	  	
Amortization of intangible assets	  	 	2,275	  	 	 	3,991	  	 	 	9,123	 	 	 	16,447	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDA	 	 	17,496	  	 	 	4,710	  	 	 	60,557	  	 	 	6,789	  	
Reconciling items impacting EBITDA:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-cash stock-based compensation	 	 	249	  	 	 	(157	) 	 	 	1,031	  	 	 	578	  	
Legal fees relating to business interruption claim	 	 	186	  	 	 	108	  	 	 	1,113	  	 	 	660	  	
Asset write-off	 	 	107	  	 	 	18,091	  	 	 	1,257	  	 	 	28,349	  	
Severance and recruiting costs	 	 	306	  	 	 	270	  	 	 	818	  	 	 	5,239	  	
Sponsor fee and other	 	 	248	  	 	 	260	  	 	 	1,020	  	 	 	1,457	  	
New manufacturer costs	 	 	771	  	 	 	751	  	 	 	4,959	  	 	 	4,164	  	
Proceeds from manufacturer	 	 	—  	  	 	 	(8,876	) 	 	 	—  	  	 	 	(8,876	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA	 	$	19,363	 	 	$	15,157	  	 	$	70,775	 	 	$	38,360	  	

Adjusted EBITDA as a percentage of net sales	 	 	25.2	% 	 	 	21.1	% 	 	 	23.5	% 	 	 	13.5	% 	

*	Previously presented as excluding Proceeds from manufacturer as an Adjusted EBITDA reconciling item, resulting in 2013 Adjusted EBITDA of $47,236. Presentation of 2013 Adjusted EBITDA has been modified to allow better go-forward comparability by including Proceeds from manufacturer as an Adjusted EBITDA reconciling item, resulting in 2013 Adjusted EBITDA of $38,360.	

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

 	  	Three Months Ended	 	 	Year Ended	 	
 	  	December 31,
2014	 	 	December 31,
2013	 	 	December 31,
2014	 	 	December 31,
2013	 	
 	 	 	 	 	
Net cash provided by (used in) operating activities	  	$	(3,875	) 	 	$	(3,856	) 	 	$	11,573	  	 	$	(15,678	)	
Capital expenditures	  	 	(2,834	) 	 	 	(1,299	) 	 	 	(8,137	) 	 	 	(5,010	)	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Free cash flow	 	$	(6,709	) 	 	$	(5,155	) 	 	$	3,436	  	 	$	(20,688	) 	

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

 	  	December 31,
2014	 	 	December 31,
2013	 	
Assets	  	 	 	 	 	 	 	 	
Current assets:	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	17,817	  	 	$	16,669	  	
Accounts receivable, net	  	 	41,540	  	 	 	38,910	  	
Inventory	  	 	15,582	  	 	 	18,310	  	
Income tax receivable	  	 	247	  	 	 	325	  	
Deferred tax assets	  	 	256	  	 	 	18	  	
Other current assets	  	 	3,739	  	 	 	3,087	  	
 	  	 	 	 	 	 	 	 	
Total current assets	 	 	79,181	  	 	 	77,319	  	
 	 	 	
Property, plant and equipment, net	 	 	96,014	  	 	 	97,653	  	
Capitalized software development costs, net	 	 	2,421	  	 	 	1,470	  	
Intangibles, net	 	 	27,191	 	 	 	34,998	  	
Goodwill	 	 	15,714	  	 	 	15,714	  	
Deferred financing costs	 	 	7,349	  	 	 	9,639	  	
Deferred tax assets	 	 	328	  	 	 	15	  	
Other long-term assets	 	 	19,318	  	 	 	22,577	  	
 	  	 	 	 	 	 	 	 	
Total assets	 	$	247,516	  	 	$	259,385	  	

Liabilities and stockholder’s deficit	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
Line of credit	 	$	8,000	  	 	$	8,000	  	
Accounts payable	 	 	15,665	  	 	 	18,103	  	
Accrued expenses and other liabilities	 	 	24,579	  	 	 	25,492	  	
Deferred tax liability	 	 	152	  	 	 	57	  	
Deferred revenue	 	 	132	  	 	 	3,979	  	
 	  	 	 	 	 	 	 	 	
Total current liabilities	 	 	48,528	  	 	 	55,631	  	
Asset retirement obligation	 	 	7,435	  	 	 	6,385	  	
Long-term debt, net	 	 	399,280	  	 	 	399,037	  	
Deferred tax liability	 	 	247	  	 	 	12	  	
Other long-term liabilities	 	 	32,995	  	 	 	35,408	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	 	 	488,485	  	 	 	496,473	  	

Stockholder’s deficit	 	 	(240,969	) 	 	 	(237,088	) 	
 	  	 	 	 	 	 	 	 	
Total liabilities and stockholder’s deficit	 	$	247,516	  	 	$	259,385	  	
 	  	 	 	 	 	 	 	 	
###