Full Press Release Details
FOR RELEASE 4:02 PM ET
TUESDAY, NOVEMBER 1, 2016
Holdings, Inc. Reports 2016 Third Quarter Financial Results
NORTH BILLERICA, Mass., November 1, 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 third quarter ended September 30, 2016.
The Company s worldwide revenue for the third quarter of 2016 totaled $73.1 million, compared to $74.1 million reported for the third quarter of 2015.
Revenue results exceeded guidance of $68-$70 million, reflecting continued strong sales of DEFINITY, stable revenues from the U.S. nuclear products portfolio, and a decrease in International revenues as a result of the divestitures of its Canadian
and Australian radiopharmacy businesses.
Net income for the third quarter of 2016 totaled $4.2 million or $0.13 per diluted share, compared to $5.4
million or $0.18 per diluted share in the third quarter of 2015. These results reflect the impact of a $1.4 million write-off of debt pay down related costs, a gain of $560,000 on the sale of assets and an increased share count attributable to an
equity offering consummated during the quarter.
The Company s third quarter 2016 Adjusted EBITDA (as defined in the GAAP to non-GAAP reconciliation
provided later in this release) was $18.7 million or 25.6% of reported revenue, compared to $19.4 million or 26.2% of reported revenue, in the third quarter of 2015. Adjusted EBITDA results exceeded guidance of $14-$16 million, primarily driven by
the strong performance of higher margin products in the U.S. market.
Mary Anne Heino, President and CEO, commented, We are pleased with our solid
financial results this quarter. A key contributor was DEFINITY, with 12.9% revenue growth worldwide driven primarily by continued strong U.S. performance. Consistent with our strategic priority of optimizing our capital structure, we raised
approximately $40 million from a follow-on equity offering and used those proceeds, together with cash on the balance sheet, to reduce our debt by $55 million. Even with the debt reduction, we ended the quarter with a healthy $53 million of cash on
Ms. Heino continued, We are pleased to again raise our full year 2016 revenue and Adjusted EBITDA guidance to reflect the
continuing strength of our business.
Company is increasing its outlook for full year 2016 worldwide revenue to a range of $296 million to $299 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 $73 million to $75 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 guidance. Forward-looking statements 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 Investors 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 1805132. A live audio webcast of the call also will be available
in the Investors section 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 November 1, 2016 through midnight on November
15, 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 1805132. A replay of this conference call will also be available in the Investors section of our website at
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
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 and Canada. For more information, visit www.lantheus.com.
Non-GAAP Financial Measures
The Company uses non-GAAP
financial measures, such as revenue excluding the impact of foreign currency; operating income, as adjusted; net income, as adjusted; Adjusted EBITDA; net income, as adjusted, 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). This press release includes forward-looking non-GAAP guidance for 2016 Adjusted EBITDA. No reconciliation of this forward-looking non-GAAP guidance was included in this press release because, due to
the high variability and difficulty in making accurate forecasts and projections of some of the excluded information, together with some of the excluded information not being ascertainable or accessible, the Company is unable to quantify certain
amounts that would be required to be included in the most directly comparable GAAP financial measure without unreasonable efforts.
Lantheus Holdings, Inc.
Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share data unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues | $ | 73,063 | $ | 74,123 | $ | 227,503 | $ | 222,260 | ||||||||
| Cost of goods sold | 39,382 | 40,418 | 124,370 | 120,119 | ||||||||||||
| Gross profit | 33,681 | 33,705 | 103,133 | 102,141 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing | 8,706 | 8,633 | 27,856 | 26,934 | ||||||||||||
| General and administrative | 10,091 | 9,206 | 28,842 | 33,773 | ||||||||||||
| Research and development | 2,849 | 2,458 | 8,493 | 11,292 | ||||||||||||
| Total operating expenses | 21,646 | 20,297 | 65,191 | 71,999 | ||||||||||||
| Gain on sales of assets | 560 | 6,505 | ||||||||||||||
| Operating income | 12,595 | 13,408 | 44,447 | 30,142 | ||||||||||||
| Interest expense, net | (6,786 | ) | (7,100 | ) | (20,782 | ) | (31,599 | ) | ||||||||
| Debt retirement costs | (1,415 | ) | (1,415 | ) | ||||||||||||
| Loss on extinguishment of debt | (15,528 | ) | ||||||||||||||
| Other (expense) income, net | (154 | ) | (183 | ) | 300 | 234 | ||||||||||
| Income (loss) before income taxes | 4,240 | 6,125 | 22,550 | (16,751 | ) | |||||||||||
| Provision for income taxes | 20 | 739 | 657 | 1,911 | ||||||||||||
| Net income (loss) | $ | 4,220 | $ | 5,386 | $ | 21,893 | $ | (18,662 | ) | |||||||
| Net income (loss) per weighted-average common share outstanding: | ||||||||||||||||
| Basic | $ | 0.14 | $ | 0.18 | $ | 0.71 | $ | (0.83 | ) | |||||||
| Diluted | $ | 0.13 | $ | 0.18 | $ | 0.71 | $ | (0.83 | ) | |||||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic | 31,220,877 | 30,359,516 | 30,657,623 | 22,443,257 | ||||||||||||
| Diluted | 32,402,297 | 30,761,771 | 31,049,351 | 22,443,257 |
Lantheus Holdings, Inc.
Consolidated Revenue Analysis
(dollars in thousands unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| 2016 | 2015 | % change | 2016 | 2015 | % change | |||||||||||||||||||
| United States | ||||||||||||||||||||||||
| DEFINITY | $ | 32,007 | $ | 28,323 | 13.0 | % | $ | 95,497 | $ | 81,333 | 17.4 | % | ||||||||||||
| TechneLite | 20,906 | 14,557 | 43.6 | % | 64,282 | 47,367 | 35.7 | % | ||||||||||||||||
| Xenon | 6,675 | 12,713 | (47.5 | )% | 21,620 | 37,937 | (43.0 | )% | ||||||||||||||||
| Other | 3,032 | 3,619 | (16.2 | )% | 11,288 | 11,620 | (2.9 | )% | ||||||||||||||||
| Total United States | 62,620 | 59,212 | 5.8 | % | 192,687 | 178,257 | 8.1 | % | ||||||||||||||||
| International | ||||||||||||||||||||||||
| DEFINITY | 597 | 560 | 6.6 | % | 2,002 | 1,644 | 21.8 | % | ||||||||||||||||
| TechneLite | 3,627 | 2,666 | 36.0 | % | 10,339 | 8,078 | 28.0 | % | ||||||||||||||||
| Xenon | 2 | 10 | (80.0 | )% | 5 | 28 | (82.1 | )% | ||||||||||||||||
| Other | 6,217 | 11,675 | (46.7 | )% | 22,470 | 34,253 | (34.4 | )% | ||||||||||||||||
| Total International | 10,443 | 14,911 | (30.0 | )% | 34,816 | 44,003 | (20.9 | )% | ||||||||||||||||
| Worldwide | ||||||||||||||||||||||||
| DEFINITY | 32,604 | 28,883 | 12.9 | % | 97,499 | 82,977 | 17.5 | % | ||||||||||||||||
| TechneLite | 24,533 | 17,223 | 42.4 | % | 74,621 | 55,445 | 34.6 | % | ||||||||||||||||
| Xenon | 6,677 | 12,723 | (47.5 | )% | 21,625 | 37,965 | (43.0 | )% | ||||||||||||||||
| Other | 9,249 | 15,294 | (39.5 | )% | 33,758 | 45,873 | (26.4 | )% | ||||||||||||||||
| Total Revenues | $ | 73,063 | $ | 74,123 | (1.4 | )% | $ | 227,503 | $ | 222,260 | 2.4 | % |
Lantheus Holdings, Inc.
Supplemental Revenue Information
| September 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 | 13.0 | % | 6.6 | % | 6.6 | % | 12.9 | % | 12.9 | % | ||||||||||
| TechneLite | 43.6 | % | 36.3 | % | 36.0 | % | 42.5 | % | 42.4 | % | ||||||||||
| Xenon | (47.5 | )% | (80.0 | )% | (80.0 | )% | (47.5 | )% | (47.5 | )% | ||||||||||
| Other | (16.2 | )% | (47.2 | )% | (46.7 | )% | (40.2 | )% | (39.5 | )% | ||||||||||
| Total Revenues | 5.8 | % | (30.3 | )% | (30.0 | )% | (1.6 | )% | (1.4 | )% | ||||||||||
| September 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 | 17.4 | % | 27.8 | % | 21.8 | % | 17.6 | % | 17.5 | % | ||||||||||
| TechneLite | 35.7 | % | 33.8 | % | 28.0 | % | 35.4 | % | 34.6 | % | ||||||||||
| Xenon | (43.0 | )% | (82.1 | )% | (82.1 | )% | (43.0 | )% | (43.0 | )% | ||||||||||
| Other | (2.9 | )% | (33.3 | )% | (34.4 | )% | (25.6 | )% | (26.4 | )% | ||||||||||
| Total Revenues | 8.1 | % | (18.8 | )% | (20.9 | )% | 2.8 | % | 2.4 | % |
Lantheus Holdings, Inc.
Reconciliation of Revenues to Revenues Excluding the Impact of Foreign Currency
(dollars in thousands unaudited)
| Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2016 | |||||||||||||||
| International Revenue | Total Revenue | International Revenue | Total Revenue | |||||||||||||
| Revenue, as reported | $ | 10,443 | $ | 73,063 | $ | 34,816 | $ | 227,503 | ||||||||
| Currency impact as compared to prior period | (94 | ) | (94 | ) | 927 | 927 | ||||||||||
| Revenue, excluding the impact of foreign currency | $ | 10,349 | $ | 72,969 | $ | 35,743 | $ | 228,430 |
Lantheus Holdings, Inc.
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(dollars in thousands, except share and per share data unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Operating Income | ||||||||||||||||
| Operating Income, as reported | $ | 12,595 | $ | 13,408 | $ | 44,447 | $ | 30,142 | ||||||||
| Reconciling items impacting Operating Income: | ||||||||||||||||
| Campus Consolidation Costs | 3,630 | |||||||||||||||
| Sponsor Termination Costs | 6,527 | |||||||||||||||
| Gain on Sales of Assets | (560 | ) | (6,505 | ) | ||||||||||||
| Operating income, as adjusted | $ | 12,035 | $ | 13,408 | $ | 37,942 | $ | 40,299 | ||||||||
| Operating Income, as adjusted, as a percentage revenue | 16.5 | % | 18.1 | % | 16.7 | % | 18.1 | % |
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income (loss), as reported | $ | 4,220 | $ | 5,386 | $ | 21,893 | $ | (18,662 | ) | |||||||
| Reconciling items impacting Gross Profit: | ||||||||||||||||
| Campus Consolidation Costs | 77 | |||||||||||||||
| Reconciling items impacting Operating Expenses: | ||||||||||||||||
| Campus Consolidation Costs | 3,553 | |||||||||||||||
| Sponsor Termination Costs | 6,527 | |||||||||||||||
| Gain on Sales of Assets | (560 | ) | (6,505 | ) | ||||||||||||
| Reconciling items impacting Non-operating Expenses: | ||||||||||||||||
| Debt Retirement Costs | 1,415 | 1,415 | ||||||||||||||
| Loss on Debt Extinguishment | 15,528 | |||||||||||||||
| Interest Upon Redemption of Senior Notes | 3,250 | |||||||||||||||
| Net income, as adjusted | $ | 5,075 | $ | 5,386 | $ | 16,803 | $ | 10,273 | ||||||||
| Net income, as adjusted, as a percentage of revenue | 6.9 | % | 7.3 | % | 7.4 | % | 4.6 | % |
Lantheus Holdings, Inc.
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(dollars in thousands, except share and per share amounts unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income (loss) per share - Diluted | $ | 0.13 | $ | 0.18 | $ | 0.71 | $ | (0.83 | ) | |||||||
| Reconciling items impacting Gross Profit: | ||||||||||||||||
| Campus Consolidation Costs | $ | $ | $ | $ | ||||||||||||
| Reconciling items impacting Operating Expenses: | ||||||||||||||||
| Campus Consolidation Costs | $ | $ | $ | $ | 0.16 | |||||||||||
| Sponsor Termination Costs | $ | $ | $ | $ | 0.29 | |||||||||||
| Gain on Sales of Assets | $ | (0.02 | ) | $ | $ | (0.21 | ) | $ | ||||||||
| Reconciling items impacting Non-operating Expenses: | ||||||||||||||||
| Debt Retirement Costs | $ | 0.04 | $ | $ | 0.05 | $ | ||||||||||
| Loss on Debt Extinguishment | $ | $ | $ | $ | 0.69 | |||||||||||
| Interest Upon Redemption of Senior Notes | $ | $ | $ | $ | 0.14 | |||||||||||
| Net income per share, as adjusted - Diluted | $ | 0.15 | $ | 0.18 | $ | 0.55 | $ | 0.45 | ||||||||
| Weighted-average common shares outstanding - Diluted | 32,402,297 | 30,761,771 | 31,049,351 | 22,443,257 |
Lantheus Holdings, Inc.
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(dollars in thousands unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income (loss) | $ | 4,220 | $ | 5,386 | $ | 21,893 | $ | (18,662 | ) | |||||||
| Interest expense, net | 6,786 | 7,100 | 20,782 | 31,599 | ||||||||||||
| Provision for income taxes(a) | (176 | ) | 300 | 25 | 695 | |||||||||||
| Depreciation | 2,157 | 1,940 | 6,386 | 9,649 | ||||||||||||
| Amortization of intangible assets | 2,083 | 1,888 | 6,278 | 5,678 | ||||||||||||
| EBITDA | 15,070 | 16,614 | 55,364 | 28,959 | ||||||||||||
| Reconciling items impacting EBITDA: | ||||||||||||||||
| Stock and incentive plan compensation | 1,248 | 591 | 2,736 | 1,524 | ||||||||||||
| Legal fees relating to business interruption claim(b) | 4 | 9 | 67 | |||||||||||||
| Asset write-off(c) | 242 | 631 | 1,088 | 1,182 | ||||||||||||
| Severance and recruiting costs(d) | 455 | 634 | 1,886 | 853 | ||||||||||||
| Sponsor fee and other(e) | 22 | 7,340 | ||||||||||||||
| Debt retirement costs | 1,415 | 1,415 | ||||||||||||||
| Extinguishment of debt | 15,528 | |||||||||||||||
| Gain on sales of assets | (560 | ) | (6,505 | ) | ||||||||||||
| New manufacturer costs(f) | 805 | 953 | 2,451 | 2,568 | ||||||||||||
| Adjusted EBITDA | $ | 18,675 | $ | 19,449 | $ | 58,444 | $ | 58,021 | ||||||||
| Adjusted EBITDA as a percentage of revenue | 25.6 | % | 26.2 | % | 25.7 | % | 26.1 | % |
Lantheus Holdings, Inc.
Reconciliation of Free Cash Flow
(dollars in thousands unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Cash provided by operating activities | $ | 15,446 | $ | 5,417 | $ | 36,861 | $ | 9,136 | ||||||||
| Capital expenditures | (2,588 | ) | (2,307 | ) | (4,976 | ) | (8,419 | ) | ||||||||
| Free cash flow | $ | 12,858 | $ | 3,110 | $ | 31,885 | $ | 717 |
Lantheus Holdings, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands unaudited)
| September 30, 2016 | December 31, 2015 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 53,195 | $ | 28,596 | ||||
| Accounts receivable, net | 34,844 | 37,293 | ||||||
| Inventory | 16,057 | 15,622 | ||||||
| Other current assets | 6,369 | 3,851 | ||||||
| Assets held for sale | 4,644 | |||||||
| Total current assets | 110,465 | 90,006 | ||||||
| Property, plant & equipment, net | 84,980 | 86,517 | ||||||
| Capitalized software development costs, net | 7,676 | 9,137 | ||||||
| Intangibles, net | 16,406 | 20,496 | ||||||
| Goodwill | 15,714 | 15,714 | ||||||
| Other long-term assets | 19,728 | 20,509 | ||||||
| Total assets | $ | 254,969 | $ | 242,379 | ||||
| Commitments and Contingencies | ||||||||
| Liabilities and Stockholders Deficit | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 3,650 | $ | 3,650 | ||||
| Accounts payable | 13,617 | 11,657 | ||||||
| Accrued expenses and other current liabilities | 21,850 | 18,502 | ||||||
| Liabilities held for sale | 1,715 | |||||||
| Total current liabilities | 39,117 | 35,524 | ||||||
| Asset retirement obligation | 8,710 | 8,145 | ||||||
| Long-term debt, net | 294,582 | 349,858 | ||||||
| Other long-term liabilities | 33,716 | 34,141 | ||||||
| Total liabilities | 376,125 | 427,668 | ||||||
| Stockholders deficit | (121,156 | ) | (185,289 | ) | ||||
| Total liabilities and stockholders deficit | $ | 254,969 | $ | 242,379 |
Lantheus Holdings, Inc.
Meara Murphy, Director, Investor Relations and Corporate Communications