Full Press Release Details
FOR RELEASE 4:02 PM EASTERN
MONDAY, FEBRUARY 22, 2016
Lantheus Holdings, Inc. Reports 2015 Fourth Quarter and Full Year
Financial Results; Provides 2016 Guidance
Lantheus posts fourth quarter net income of $3.9 million and Adjusted EBITDA of $18.3 million;
Full year adjusted net income of $14.2 million and Adjusted EBITDA of $76.3 million
Fourth quarter worldwide DEFINITY revenue increased 13% as-reported
NORTH BILLERICA, Mass., February 22, 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 fourth quarter and
full year ended December 31, 2015.
The Company s worldwide revenue for the fourth quarter of 2015 totaled $71.2 million, representing a decrease of
7% as-reported compared to $77.0 million reported for the fourth quarter of 2014. Constant currency revenue decreased by 5% versus the prior year period. Fourth quarter worldwide revenue reflects decreased revenues as a result of lower sales volumes
for TechneLite from a major customer offset by revenue gains with DEFINITY and Xenon.
Net income for the fourth quarter of 2015 totaled $3.9 million or $0.13 per diluted share, an improvement of $3.7 million compared to a net income of $200,000
or $0.01 per diluted share in the fourth quarter of 2014. Fourth quarter net income results reflect gross margin expansion driven by the continued strong performance of DEFINITY along with growth of Xenon driven by non-contracted status with certain
key customers and favorability on expenses.
The Company s fourth quarter 2015 Adjusted EBITDA, as defined in the GAAP to non-GAAP reconciliation
provided later in this release, was $18.3 million, or 25.7% of reported revenue, compared to $19.4 million, or 25.2% of reported revenue, in the fourth quarter of 2014. Lower Adjusted EBITDA was driven by lower sales of TechneLite. EBITDA margin
improvement was driven by gross margin expansion, product mix and good expense management.
For full year 2015, worldwide revenue totaled $293.5 million,
a 2.7% decrease on an as-reported basis from $301.6 million in 2014. On a constant currency basis, revenue was consistent with prior year. Full year 2015 net income, as adjusted, totaled $14.2 million, an improvement of $16.6 million, compared to a
net loss, as adjusted, of $2.4 million for 2014. Full year 2015 Adjusted EBITDA totaling $76.3 million, represented 26.0% of reported revenue for the year, and grew 7.9% compared to $70.8 million reported for 2014. The attached financial tables
include a reconciliation of U.S. GAAP to as-adjusted results.
Mary Anne Heino, President and CEO commented, We are pleased with our 2015 financial results. We met our
revenue guidance and exceeded Adjusted EBITDA guidance. The Adjusted EBITDA results are attributable primarily to product mix together with good expense management. We made positive progress on executing our business strategy, including growing our
key product, DEFINITY. DEFINITY posted 17% top line growth in a market where we continue to see increased use of contrast agents in suboptimal echocardiogram studies. Additionally, in the fourth quarter we significantly expanded our Operating and
Adjusted EBITDA margins over last year, driving those margins to 17% and 26%, respectively.
Ms. Heino continued, Looking to 2016 and beyond, we now
have supply agreements with the four largest radiopharmacy providers in the U.S. These supply agreements specify product volumes for key nuclear medicine products. In particular, we entered into multiple year agreements with these key Xenon
customers to ensure committed volumes at lower Xenon prices, which will negatively affect revenue, net income and Adjusted EBITDA in 2016 versus 2015 but will provide for additional revenue and unit volumes in 2017. In 2016, we will continue to
focus on optimizing revenue and unit volumes in our commercial portfolio while creating further efficiencies in our business footprint. In addition, we will actively advance our development pipeline and continue to pursue business development
opportunities to strengthen our product offering and manufacturing capabilities. In summary, we believe our leading position in the echo market and the steps we are taking in the balance of our business create a strong foundation in 2016 and a
platform for increased revenue and unit volumes in 2017 and beyond.
The Company anticipates worldwide revenue for full year 2016 of approximately $285 million to $290 million, compared to $293.5 million in 2015. This lower
revenue level is driven primarily by its new Xenon contracts with key customers that specify committed volumes at lower prices. This is largely offset by positive growth in DEFINITY and, to a lesser extent, by improved revenue from its nuclear
products. For the first quarter of 2016, the Company expects worldwide revenue in the range of $72 million to $74 million.
The Company anticipates full
year 2016 Adjusted EBITDA, as described in the GAAP to non-GAAP reconciliation provided later in this release, of $60 million to $64 million, measuring 21% to 22% of reported worldwide revenue. This lower level from full year 2015 is driven
primarily by its new Xenon contracts with key customers that specify committed volumes at lower prices. With anticipated increased volumes in 2017 for Xenon and other key nuclear products, the Company believes 2017 revenue and Adjusted EBITDA levels
will improve in comparison to 2016. For the first quarter of 2016, the Company expects Adjusted EBITDA in the range of $14 million to $16 million.
The Company s guidance does not give effect to the impact or timing of Xenon competition other than the committed volumes and new pricing levels
previously described.
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 42121023. 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 February 22, 2016 through midnight on March 7, 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 42121023. 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
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.
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.
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 of our prospectus dated June 24, 2015 and filed with the SEC on June 26, 2015, and as may be further set forth or supplemented 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 data unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenues | $ | 71,201 | $ | 76,969 | $ | 293,461 | $ | 301,600 | ||||||||
| Cost of goods sold | 37,820 | 44,208 | 157,939 | 176,081 | ||||||||||||
| Gross profit | 33,381 | 32,761 | 135,522 | 125,519 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing expenses | 7,806 | 7,889 | 34,740 | 35,116 | ||||||||||||
| General and administrative expenses | 10,121 | 8,430 | 43,894 | 37,313 | ||||||||||||
| Research and development expenses | 3,066 | 4,715 | 14,358 | 13,673 | ||||||||||||
| Total operating expenses | 20,993 | 21,034 | 92,992 | 86,102 | ||||||||||||
| Operating income | 12,388 | 11,727 | 42,530 | 39,417 | ||||||||||||
| Interest expense | (7,098 | ) | (10,564 | ) | (38,715 | ) | (42,288 | ) | ||||||||
| Interest income | 6 | 7 | 24 | 27 | ||||||||||||
| Loss on extinguishment of debt | (15,528 | ) | ||||||||||||||
| Other income (expense), net | (323 | ) | 626 | (89 | ) | 478 | ||||||||||
| Income (loss) before income taxes | 4,973 | 1,796 | (11,778 | ) | (2,366 | ) | ||||||||||
| Provision for income taxes | 1,057 | 1,569 | 2,968 | 1,195 | ||||||||||||
| Net income (loss) | $ | 3,916 | $ | 227 | $ | (14,746 | ) | $ | (3,561 | ) | ||||||
| Net income (loss) per common share | ||||||||||||||||
| Basic | $ | 0.13 | $ | 0.01 | $ | (0.60 | ) | $ | (0.20 | ) | ||||||
| Diluted | $ | 0.13 | $ | 0.01 | $ | (0.60 | ) | $ | (0.20 | ) | ||||||
| Common shares | ||||||||||||||||
| Basic | 30,364,501 | 18,080,968 | 24,439,845 | 18,080,615 | ||||||||||||
| Diluted | 30,364,914 | 19,308,598 | 24,439,845 | 18,080,615 |
Lantheus Holdings, Inc. and subsidiaries
Consolidated Revenue Analysis
(dollars in thousands unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||
| 2015 | 2014 | % change | 2015 | 2014 | % change | |||||||||||||||||||
| U.S. | ||||||||||||||||||||||||
| DEFINITY | 28,324 | 25,080 | 12.9 | % | 109,656 | 93,848 | 16.8 | % | ||||||||||||||||
| TechneLite | 14,667 | 20,719 | (29.2 | )% | 62,034 | 82,321 | (24.6 | )% | ||||||||||||||||
| Xenon | 10,931 | 9,023 | 21.1 | % | 48,868 | 36,542 | 33.7 | % | ||||||||||||||||
| Other | 3,645 | 6,890 | (47.1 | )% | 15,266 | 23,809 | (35.9 | )% | ||||||||||||||||
| Total U.S. | $ | 57,567 | $ | 61,712 | (6.7 | )% | $ | 235,824 | $ | 236,520 | (0.3 | )% | ||||||||||||
| International | ||||||||||||||||||||||||
| DEFINITY | 558 | 545 | 2.4 | % | 2,203 | 1,912 | 15.2 | % | ||||||||||||||||
| TechneLite | 2,450 | 2,691 | (9.0 | )% | 10,528 | 11,267 | (6.6 | )% | ||||||||||||||||
| Xenon | 2 | 1 | 100.0 | % | 30 | 7 | 328.6 | % | ||||||||||||||||
| Other | 10,624 | 12,020 | (11.6 | )% | 44,876 | 51,894 | (13.5 | )% | ||||||||||||||||
| Total International | $ | 13,634 | $ | 15,257 | (10.6 | )% | $ | 57,637 | $ | 65,080 | (11.4 | )% | ||||||||||||
| Worldwide | ||||||||||||||||||||||||
| DEFINITY | 28,882 | 25,625 | 12.7 | % | 111,859 | 95,760 | 16.8 | % | ||||||||||||||||
| TechneLite | 17,117 | 23,410 | (26.9 | )% | 72,562 | 93,588 | (22.5 | )% | ||||||||||||||||
| Xenon | 10,933 | 9,024 | 21.2 | % | 48,898 | 36,549 | 33.8 | % | ||||||||||||||||
| Other | 14,269 | 18,910 | (24.5 | )% | 60,142 | 75,703 | (20.6 | )% | ||||||||||||||||
| Total Revenues | $ | 71,201 | $ | 76,969 | (7.5 | )% | $ | 293,461 | $ | 301,600 | (2.7 | )% |
Lantheus Holdings, Inc. and subsidiaries
Supplemental Revenue Information
| December 31, 2015 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 | 13 | % | 21 | % | 2 | % | 13 | % | 13 | % | ||||||||||
| TechneLite | (29 | )% | 4 | % | (9 | )% | (25 | )% | (27 | )% | ||||||||||
| Xenon | 21 | % | 100 | % | 100 | % | 21 | % | 21 | % | ||||||||||
| Other | (47 | )% | (1 | )% | (12 | )% | (18 | )% | (25 | )% | ||||||||||
| Total Revenues | (7 | )% | 0 | % | (11 | )% | (5 | )% | (7 | )% | ||||||||||
| December 31, 2015 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 | 17 | % | 34 | % | 15 | % | 17 | % | 17 | % | ||||||||||
| TechneLite | (25 | )% | 5 | % | (7 | )% | (21 | )% | (22 | )% | ||||||||||
| Xenon | 34 | % | 386 | % | 329 | % | 34 | % | 34 | % | ||||||||||
| Other | (36 | )% | (4 | )% | (14 | )% | (14 | )% | (21 | )% | ||||||||||
| Total Revenues | 0 | % | (1 | )% | (11 | )% | 0 | % | (3 | )% |
Lantheus Holdings, Inc. and subsidiaries
Reconciliation of Revenues to Revenues Excluding the Impact of Foreign Currency
(dollars in thousands unaudited)
| Three Months Ended December 31, 2015 | Twelve Months Ended December 31, 2015 | |||||||||||||||
| International Net Sales | Total Net Sales | International Net Sales | Total Net Sales | |||||||||||||
| Net sales, as reported | $ | 13,634 | $ | 71,201 | $ | 57,637 | $ | 293,461 | ||||||||
| Currency impact as compared to prior period | 1,687 | 1,687 | 6,833 | 6,833 | ||||||||||||
| Net sales, excluding the impact of foreign currency | $ | 15,321 | $ | 72,888 | $ | 64,470 | $ | 300,294 |
Lantheus Holdings, Inc. and subsidiaries
Reconciliations of As Reported Results to Non-GAAP Financial Measures
(dollars in thousands unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Operating Income | ||||||||||||||||
| Operating Income, as reported | $ | 12,388 | $ | 11,727 | $ | 42,530 | $ | 39,417 | ||||||||
| Reconciling items impacting | ||||||||||||||||
| Operating Income: | ||||||||||||||||
| Campus Consolidation Costs | 3,630 | |||||||||||||||
| Sponsor Termination Costs | 6,527 | |||||||||||||||
| Operating income, as adjusted | $ | 12,388 | $ | 11,727 | $ | 52,687 | $ | 39,417 | ||||||||
| Operating Income, as adjusted, as a percentage of net sales | 17.4 | % | 15.2 | % | 18.0 | % | 13.1 | % | ||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net income (loss) | ||||||||||||||||
| Net income (loss), as reported | $ | 3,916 | $ | 227 | $ | (14,746 | ) | $ | (3,561 | ) | ||||||
| Reconciling items impacting | ||||||||||||||||
| Gross Profit: | ||||||||||||||||
| Campus Consolidation Costs | 77 | |||||||||||||||
| Reconciling items impacting | ||||||||||||||||
| Operating Expenses: | ||||||||||||||||
| Campus Consolidation Costs | 1,210 | 3,553 | 1,210 | |||||||||||||
| Sponsor Termination Costs | 6,527 | |||||||||||||||
| Reconciling items impacting | ||||||||||||||||
| Non-operating Expenses: | ||||||||||||||||
| Loss on Debt Extinguishment | 15,528 | |||||||||||||||
| Interest Upon Redemption of Senior Notes | 3,250 | |||||||||||||||
| Net income (loss), as adjusted | $ | 3,916 | $ | 1,437 | $ | 14,189 | $ | (2,351 | ) | |||||||
| Net income (loss), as adjusted, as a percentage of net sales | 5.5 | % | 1.9 | % | 4.8 | % | (0.8 | )% | ||||||||
| Net income (loss), as adjusted, per common share | ||||||||||||||||
| Basic | $ | 0.13 | $ | 0.08 | $ | 0.58 | $ | (0.13 | ) | |||||||
| Diluted | $ | 0.13 | $ | 0.07 | $ | 0.57 | $ | (0.13 | ) | |||||||
| Common shares | ||||||||||||||||
| Basic | 30,364,501 | 18,080,968 | 24,439,845 | 18,080,615 | ||||||||||||
| Diluted | 30,364,914 | 19,308,598 | 24,733,592 | 18,080,615 |
Lantheus Holdings, Inc. and subsidiaries
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(dollars in thousands unaudited)