Full Press Release Details
FOR RELEASE 4:02 PM EASTERN
THURSDAY, August 4, 2016
Lantheus Holdings, Inc. Reports 2016 Second Quarter Financial Results
Lantheus posts second quarter net income of $7.4 million and Adjusted EBITDA of $21.4 million;
Second quarter worldwide DEFINITY revenue increased 18% annually
NORTH BILLERICA, Mass., August 4, 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 second quarter ended
The Company s worldwide revenue for the second quarter of 2016 totaled $78.0 million, representing an increase of 6% as-reported
compared to $73.3 million reported for the second quarter of 2015. Second quarter worldwide revenue results reflect continued strong sales of DEFINITY and stable revenues from the nuclear
products portfolio driven by contracts with key radiopharmacy customers.
Net income for the second quarter of 2016 totaled $7.4 million or $0.24 per
diluted share, an improvement of $31.8 million compared to a net loss of $24.4 million or $(1.29) per diluted share in the second quarter of 2015. The second quarter net income results also reflect a decrease in the amount of interest expense due to
debt refinancing in June of 2015.
The Company s second quarter 2016 Adjusted EBITDA, as defined in the GAAP to non-GAAP reconciliation provided
later in this release, was $21.4 million, or 27.5% of reported revenue, compared to $18.0 million, or 24.5% of reported revenue, in the second quarter of 2015. The increase in Adjusted EBITDA reflects the impact of DEFINITY revenue growth.
Mary Anne Heino, President and CEO commented, We are very pleased with our second quarter results, which delivered 6% year over year growth and exceeded
both our second quarter revenue and Adjusted EBITDA guidance. During the second quarter, we saw continued strong performance of DEFINITY with 18% year over year growth in a competitive ultrasound contrast market and higher than forecasted sales of
our nuclear products, demonstrating that our commercial strategy is working.
Ms. Heino continued, We are also very pleased to be raising
our annual revenue and Adjusted EBITDA guidance which reflects the overall strength of our product portfolio and the firm contracts we have with key nuclear products customers.
Company is increasing its outlook for worldwide revenue for full year 2016 to a range of $291 million to $295 million. For the third quarter of 2016, the Company expects worldwide revenue in the range of $68 million to $70 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 $70 million to $73 million. For the third 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 47799009. 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 August 4, 2016 through midnight on
August 18, 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 47799009. 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, 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.
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).
Lantheus Holdings, Inc. and subsidiaries
Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share data unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues | $ | 77,966 | $ | 73,314 | $ | 154,440 | $ | 148,137 | ||||||||
| Cost of goods sold | 42,215 | 40,647 | 84,988 | 79,701 | ||||||||||||
| Gross profit | 35,751 | 32,667 | 69,452 | 68,436 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing expenses | 9,843 | 9,229 | 19,150 | 18,301 | ||||||||||||
| General and administrative expenses | 9,238 | 15,444 | 18,751 | 24,567 | ||||||||||||
| Research and development expenses | 2,608 | 2,638 | 5,644 | 8,834 | ||||||||||||
| Total operating expenses | 21,689 | 27,311 | 43,545 | 51,702 | ||||||||||||
| Gain on sale of assets | 117 | 5,945 | ||||||||||||||
| Operating income | 14,179 | 5,356 | 31,852 | 16,734 | ||||||||||||
| Interest expense, net | (6,978 | ) | (13,876 | ) | (13,996 | ) | (24,499 | ) | ||||||||
| Loss on extinguishment of debt | (15,528 | ) | (15,528 | ) | ||||||||||||
| Other income, net | 396 | 800 | 454 | 417 | ||||||||||||
| Income (loss) before income taxes | 7,597 | (23,248 | ) | 18,310 | (22,876 | ) | ||||||||||
| Provision for income taxes | 247 | 1,175 | 637 | 1,172 | ||||||||||||
| Net income (loss) | $ | 7,350 | $ | (24,423 | ) | $ | 17,673 | $ | (24,048 | ) | ||||||
| Net income (loss) per weighted average common share outstanding | ||||||||||||||||
| Basic and diluted | $ | 0.24 | $ | (1.29 | ) | $ | 0.58 | $ | (1.30 | ) | ||||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 30,377,562 | 18,898,003 | 30,372,901 | 18,489,451 | ||||||||||||
| Diluted | 30,542,728 | 18,898,003 | 30,453,776 | 18,489,451 |
Lantheus Holdings, Inc. and subsidiaries
Consolidated Revenue Analysis
(dollars in thousands unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
| 2016 | 2015 | % change | 2016 | 2015 | % change | |||||||||||||||||||
| U.S. | ||||||||||||||||||||||||
| DEFINITY | 32,698 | 27,828 | 17.5 | % | 63,491 | 53,010 | 19.8 | % | ||||||||||||||||
| TechneLite | 21,643 | 14,637 | 47.9 | % | 43,376 | 32,810 | 32.2 | % | ||||||||||||||||
| Xenon | 6,773 | 12,038 | (43.7 | )% | 14,945 | 25,224 | (40.8 | )% | ||||||||||||||||
| Other | 4,020 | 3,875 | 3.7 | % | 8,255 | 8,001 | 3.2 | % | ||||||||||||||||
| Total U.S. | $ | 65,134 | $ | 58,378 | 11.6 | % | $ | 130,067 | $ | 119,045 | 9.3 | % | ||||||||||||
| International | ||||||||||||||||||||||||
| DEFINITY | 776 | 600 | 29.3 | % | 1,405 | 1,084 | 29.6 | % | ||||||||||||||||
| TechneLite | 3,609 | 2,725 | 32.4 | % | 6,712 | 5,411 | 24.0 | % | ||||||||||||||||
| Xenon | 1 | 10 | (90.0 | )% | 3 | 19 | (84.2 | )% | ||||||||||||||||
| Other | 8,446 | 11,601 | (27.2 | )% | 16,253 | 22,578 | (28.0 | )% | ||||||||||||||||
| Total International | $ | 12,832 | $ | 14,936 | (14.1 | )% | $ | 24,373 | $ | 29,092 | (16.2 | )% | ||||||||||||
| Worldwide | ||||||||||||||||||||||||
| DEFINITY | 33,474 | 28,428 | 17.8 | % | 64,896 | 54,094 | 20.0 | % | ||||||||||||||||
| TechneLite | 25,252 | 17,362 | 45.4 | % | 50,088 | 38,221 | 31.0 | % | ||||||||||||||||
| Xenon | 6,774 | 12,048 | (43.8 | )% | 14,948 | 25,243 | (40.8 | )% | ||||||||||||||||
| Other | 12,466 | 15,476 | (19.4 | )% | 24,508 | 30,579 | (19.9 | )% | ||||||||||||||||
| Total Revenues | $ | 77,966 | $ | 73,314 | 6.3 | % | $ | 154,440 | $ | 148,137 | 4.3 | % |
Lantheus Holdings, Inc. and subsidiaries
Supplemental Revenue Information
| June 30, 2016 Quarter to Date Sales Growth/(Decline) | ||||||||||||||||||||
| Domestic As Reported | Int l Constant Currency | Int l As Reported | Total Constant Currency | Total As Reported | ||||||||||||||||
| Products | ||||||||||||||||||||
| DEFINITY | 17.5 | % | 35.3 | % | 29.3 | % | 17.9 | % | 17.8 | % | ||||||||||
| TechneLite | 47.9 | % | 38.1 | % | 32.4 | % | 46.3 | % | 45.4 | % | ||||||||||
| Xenon | (43.7 | )% | (90.0 | )% | (90.0 | )% | (43.7 | )% | (43.8 | )% | ||||||||||
| Other | 3.7 | % | (26.6 | )% | (27.2 | )% | (19.0 | )% | (19.4 | )% | ||||||||||
| Total Revenues | 11.6 | % | (12.4 | )% | (14.1 | )% | 6.7 | % | 6.3 | % | ||||||||||
| June 30, 2016 Year to Date Sales Growth/(Decline) | ||||||||||||||||||||
| Domestic As Reported | Int l Constant Currency | Int l As Reported | Total Constant Currency | Total As Reported | ||||||||||||||||
| Products | ||||||||||||||||||||
| DEFINITY | 19.8 | % | 38.7 | % | 29.6 | % | 20.2 | % | 20.0 | % | ||||||||||
| TechneLite | 32.2 | % | 32.5 | % | 24.0 | % | 32.2 | % | 31.0 | % | ||||||||||
| Xenon | (40.8 | )% | (84.2 | )% | (84.2 | )% | (40.8 | )% | (40.8 | )% | ||||||||||
| Other | 3.2 | % | (26.0 | )% | (28.0 | )% | (18.3 | )% | (19.9 | )% | ||||||||||
| Total Revenues | 9.3 | % | (12.7 | )% | (16.2 | )% | 4.9 | % | 4.3 | % |
Lantheus Holdings, Inc. and subsidiaries
Reconciliation of Revenues to Revenues Excluding the Impact of Foreign Currency
(dollars in thousands unaudited)
| Three Months Ended June 30, 2016 | Six Months Ended June 30, 2016 | |||||||||||||||
| International Net Sales | Total Net Sales | International Net Sales | Total Net Sales | |||||||||||||
| Net sales, as reported | $ | 12,832 | $ | 77,966 | $ | 24,373 | $ | 154,440 | ||||||||
| Currency impact as compared to prior period | 256 | 256 | 1,021 | 1,021 | ||||||||||||
| Net sales, excluding the impact of foreign currency | $ | 13,088 | $ | 78,222 | $ | 25,394 | $ | 155,461 |
Lantheus Holdings, Inc. and subsidiaries
Reconciliations of As Reported Results to Non-GAAP Financial Measures
(dollars in thousands, except share and per share data unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Operating Income | ||||||||||||||||
| Operating Income, as reported | $ | 14,179 | $ | 5,356 | $ | 31,852 | $ | 16,734 | ||||||||
| Reconciling items impacting Operating Income: | ||||||||||||||||
| Campus Consolidation Costs | 3,630 | |||||||||||||||
| Sponsor Termination Costs | 6,527 | 6,527 | ||||||||||||||
| Gain on Sale of Assets | (117 | ) | (5,945 | ) | ||||||||||||
| Operating income, as adjusted | $ | 14,062 | $ | 11,883 | $ | 25,907 | $ | 26,891 | ||||||||
| Operating Income, as adjusted, as a percentage of net sales | 18.0 | % | 16.2 | % | 16.8 | % | 18.2 | % | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income (loss) | ||||||||||||||||
| Net income (loss), as reported | $ | 7,350 | $ | (24,423 | ) | $ | 17,673 | $ | (24,048 | ) | ||||||
| Reconciling items impacting Gross Profit: | ||||||||||||||||
| Campus Consolidation Costs | 77 | |||||||||||||||
| Reconciling items impacting Operating Expenses: | ||||||||||||||||
| Campus Consolidation Costs | 3,553 | |||||||||||||||
| Sponsor Termination Costs | 6,527 | 6,527 | ||||||||||||||
| Gain on Sale of Assets | (117 | ) | (5,945 | ) | ||||||||||||
| Reconciling items impacting Non-operating Expenses: | ||||||||||||||||
| Loss on Debt Extinguishment | 15,528 | 15,528 | ||||||||||||||
| Interest Upon Redemption of Senior Notes | 3,250 | 3,250 | ||||||||||||||
| Net income, as adjusted | $ | 7,233 | $ | 882 | $ | 11,728 | $ | 4,887 | ||||||||
| Net income, as adjusted, as a percentage of net sales | 9.3 | % | 1.2 | % | 7.6 | % | 3.3 | % | ||||||||
| Net income, as adjusted, per weighted average common share outstanding | ||||||||||||||||
| Basic | $ | 0.24 | $ | 0.05 | $ | 0.39 | $ | 0.26 | ||||||||
| Diluted | $ | 0.24 | $ | 0.05 | $ | 0.39 | $ | 0.26 | ||||||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 30,377,562 | 18,898,003 | 30,372,901 | 18,489,451 | ||||||||||||
| Diluted | 30,542,728 | 19,259,161 | 30,453,776 | 18,843,088 |
Lantheus Holdings, Inc. and subsidiaries
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(dollars in thousands unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| EBITDA | ||||||||||||||||
| Net income (loss), as reported | $ | 7,350 | $ | (24,423 | ) | $ | 17,673 | $ | (24,048 | ) | ||||||
| Interest expense, net | 6,978 | 13,876 | 13,996 | 24,499 | ||||||||||||
| Provision for income taxes | 107 | 394 | 201 | 395 | ||||||||||||
| Depreciation | 2,222 | 2,021 | 4,229 | 7,709 | ||||||||||||
| Amortization of intangible assets | 2,089 | 1,894 | 4,195 | 3,790 | ||||||||||||
| EBITDA | 18,746 | (6,238 | ) | 40,294 | 12,345 | |||||||||||
| Reconciling items impacting | ||||||||||||||||
| EBITDA: | ||||||||||||||||
| Stock and incentive plan compensation | 916 | 656 | 1,488 | 933 | ||||||||||||
| Legal fees relating to business | 5 | 46 | 63 | |||||||||||||
| interruption claim | 9 | |||||||||||||||
| Asset write-off | 349 | 371 | 846 | 551 | ||||||||||||
| Severance and recruiting costs | 762 | 122 | 1,431 | 219 | ||||||||||||
| Sponsor fee and other | 6,747 | 7,318 | ||||||||||||||
| Extinguishment of debt | 15,528 | 15,528 | ||||||||||||||
| Gain on sale of assets | (117 | ) | (5,945 | ) | ||||||||||||
| New manufacturer costs | 746 | 753 | 1,646 | 1,615 | ||||||||||||
| Adjusted EBITDA | $ | 21,407 | $ | 17,985 | $ | 39,769 | $ | 38,572 | ||||||||
| Adjusted EBITDA as a percentage of net sales | 27.5 | % | 24.5 | % | 25.8 | % | 26.0 | % |
Lantheus Holdings, Inc. and subsidiaries
Reconciliation of Free Cash Flow
(dollars in thousands unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | |||||||||||||
| Net cash provided by (used in) operating activities | $ | 17,635 | $ | (11,438 | ) | $ | 21,415 | $ | 3,719 | |||||||
| Capital expenditures | (736 | ) | (2,614 | ) | (2,388 | ) | (6,112 | ) | ||||||||
| Free cash flow | $ | 16,899 | $ | (14,052 | ) | $ | 19,027 | $ | (2,393 | ) |
Lantheus Holdings, Inc. and subsidiaries
Condensed Consolidated Balance Sheets
(dollars in thousands unaudited)
| June 30, 2016 | December 31, 2015 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 54,851 | $ | 28,596 | ||||
| Accounts receivable, net | 39,457 | 37,293 | ||||||
| Inventory | 14,433 | 15,622 | ||||||
| Other current assets | 4,282 | 3,851 | ||||||
| Assets held for sale | 4,644 | |||||||
| Total current assets | 113,023 | 90,006 | ||||||
| Property, plant and equipment, net | 84,422 | 86,517 | ||||||
| Capitalized software development costs, net | 8,121 | 9,137 | ||||||
| Intangibles, net | 17,949 | 20,496 | ||||||
| Goodwill | 15,714 | 15,714 | ||||||
| Other long-term assets | 20,038 | 20,509 | ||||||
| Total assets | $ | 259,267 | $ | 242,379 | ||||
| Liabilities and stockholders deficit | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 3,650 | $ | 3,650 | ||||
| Line of credit | ||||||||
| Accounts payable | 12,778 | 11,657 | ||||||
| Accrued expenses and other liabilities | 17,664 | 18,502 | ||||||
| Liabilities held for sale | 1,715 | |||||||
| Total current liabilities | 34,092 | 35,524 | ||||||
| Asset retirement obligation | 8,650 | 8,145 | ||||||
| Long-term debt, net | 348,838 | 349,858 | ||||||
| Other long-term liabilities | 34,055 | 34,141 | ||||||
| Total liabilities | 425,635 | 427,668 | ||||||
| Stockholders deficit | (166,368 | ) | (185,289 | ) | ||||
| Total liabilities and stockholders deficit | $ | 259,267 | $ | 242,379 |