Full Press Release Details
Lantheus Holdings, Inc. Reports 2016 Fourth Quarter and Full Year Financial Results; Provides 2017 Guidance
Company exceeds full year 2016 guidance, posts revenue of $301.9 million, net income of $26.8 million and
Adjusted EBITDA of $78.3 million
BILLERICA, Mass., February 21, 2017 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, 2016.
The Company s worldwide revenues for the fourth quarter of 2016 totaled $74.4 million, compared to $71.2 million for the fourth quarter of 2015. For the
full year 2016, worldwide revenues totaled $301.9 million, compared to $293.5 in 2015, exceeding 2016 guidance of $296 million to $299 million. Revenue results were driven by growth in sales of
DEFINITY and TechneLite , partially offset by price concessions for Xenon as part of the Company s nuclear products contracting
strategy as well as the divestiture of the Company s Canadian and Australian radiopharmacy businesses.
Net income for the fourth quarter of 2016
totaled $4.9 million or $0.13 per diluted share, compared to $3.9 million or $0.13 per diluted share for the fourth quarter of 2015. Full year 2016 net income totaled $26.8 million, compared to a net loss of $14.7 million in 2015. The full year
$41.5 million improvement is primarily attributable to operational improvements, decreased interest expense and one-time activities in 2015 associated with the Company s initial public offering and debt refinancing.
The Company s fourth quarter 2016 Adjusted EBITDA (as defined below in the GAAP to non-GAAP reconciliation) was $19.8 million, or 26.7% of revenues,
compared to $18.3 million, or 25.7% of revenues, in the fourth quarter of 2015. Full year 2016 Adjusted EBITDA was $78.3 million, or 25.9% of revenues, compared to $76.3 million, or 26.0% of revenues, for 2015, exceeding 2016 guidance of $73 million
to $75 million. Higher Adjusted EBITDA was attributable to the strong performance of higher margin products in the U.S. and the Company s shift to a distribution model in Canada and Australia, partially offset by the margin impact of price
concessions attributed to the Company s nuclear products contracting strategy and incremental sales and marketing expenses attributable to the growth of DEFINITY sales.
Mary Anne Heino, President and CEO, commented, 2016 was a successful year for the Company on a number of levels as we exceeded both revenue and Adjusted
EBITDA guidance, delivering significant value to shareholders. Our strong results reflect 18.1% revenue growth of DEFINITY worldwide, execution of our nuclear products contracting strategy, and a consistent focus on optimizing our capital structure,
including $75 million of reduction in our outstanding debt. We enter 2017 poised to drive continued growth while remaining focused on building our portfolio and strengthening the long-term financial results of the Company.
The Company anticipates worldwide revenues for
full year 2017 of approximately $312 million to $317 million, compared to $301.9 million in 2016. For the first quarter of 2017, the Company expects worldwide revenues in the range of $77 million to $80 million.
The Company anticipates full year 2017 Adjusted EBITDA, as described in the GAAP to non-GAAP reconciliation provided later in this release, of $79 million to
$82 million, representing 24.9% to 26.3% of anticipated worldwide revenues. For the first quarter of 2017, the Company expects Adjusted EBITDA in the range of $18 million to $20 million.
The Company s guidance for worldwide revenues 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.
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 65019185. A live audio webcast of the call also will be available in the Investors section of the Company s website at
A replay of the audio webcast will be available in the Investors section of our website at www.lantheus.com approximately
two hours after completion of the call and will be archived for 30 days.
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 and Canada. For more information, visit www.lantheus.com.
Non-GAAP Financial Measures
The Company uses non-GAAP
financial measures, such as revenues excluding the impact of foreign currency; adjusted operating income; adjusted net income; Adjusted EBITDA; adjusted net income per share diluted; 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 2017
outlook. 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 2017 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.
Consolidated Statements of Operations
(in thousands, except share and per share data unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues | $ | 74,350 | $ | 71,201 | $ | 301,853 | $ | 293,461 | ||||||||
| Cost of goods sold | 39,703 | 37,820 | 164,073 | 157,939 | ||||||||||||
| Gross profit | 34,647 | 33,381 | 137,780 | 135,522 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing | 8,686 | 7,806 | 36,542 | 34,740 | ||||||||||||
| General and administrative | 9,990 | 10,121 | 38,832 | 43,894 | ||||||||||||
| Research and development | 3,710 | 3,066 | 12,203 | 14,358 | ||||||||||||
| Total operating expenses | 22,386 | 20,993 | 87,577 | 92,992 | ||||||||||||
| Gain (loss) on sales of assets | (120 | ) | 6,385 | |||||||||||||
| Operating income | 12,141 | 12,388 | 56,588 | 42,530 | ||||||||||||
| Interest expense | (5,819 | ) | (7,098 | ) | (26,618 | ) | (38,715 | ) | ||||||||
| Debt retirement costs | (481 | ) | (1,896 | ) | ||||||||||||
| Loss on extinguishment of debt | (15,528 | ) | ||||||||||||||
| Other (expense) income, net | (97 | ) | (317 | ) | 220 | (65 | ) | |||||||||
| Income (loss) before income taxes | 5,744 | 4,973 | 28,294 | (11,778 | ) | |||||||||||
| Provision for income taxes | 875 | 1,057 | 1,532 | 2,968 | ||||||||||||
| Net income (loss) | $ | 4,869 | $ | 3,916 | $ | 26,762 | $ | (14,746 | ) | |||||||
| Net income (loss) per common share: | ||||||||||||||||
| Basic | $ | 0.13 | $ | 0.13 | $ | 0.84 | $ | (0.60 | ) | |||||||
| Diluted | $ | 0.13 | $ | 0.13 | $ | 0.82 | $ | (0.60 | ) | |||||||
| Weighted-average common shares: | ||||||||||||||||
| Basic | 36,172,609 | 30,364,501 | 32,043,904 | 24,439,845 | ||||||||||||
| Diluted | 37,853,125 | 30,364,914 | 32,655,958 | 24,439,845 |
Lantheus Holdings, Inc.
Consolidated Segment Revenues Analysis
(in thousands unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
| 2016 | 2015 | % Change | 2016 | 2015 | % Change | |||||||||||||||||||
| United States | ||||||||||||||||||||||||
| DEFINITY | $ | 33,180 | $ | 28,324 | 17.1 | % | $ | 128,677 | $ | 109,656 | 17.3 | % | ||||||||||||
| TechneLite | 21,130 | 14,667 | 44.1 | % | 85,412 | 62,034 | 37.7 | % | ||||||||||||||||
| Xenon | 7,458 | 10,931 | (31.8 | )% | 29,078 | 48,868 | (40.5 | )% | ||||||||||||||||
| Other | 2,965 | 3,645 | (18.7 | )% | 14,253 | 15,266 | (6.6 | )% | ||||||||||||||||
| Total United States | 64,733 | 57,567 | 12.4 | % | 257,420 | 235,824 | 9.2 | % | ||||||||||||||||
| International | ||||||||||||||||||||||||
| DEFINITY | 932 | 558 | 67.0 | % | 2,935 | 2,203 | 33.2 | % | ||||||||||||||||
| TechneLite | 3,466 | 2,450 | 41.5 | % | 13,805 | 10,528 | 31.1 | % | ||||||||||||||||
| Xenon | 2 | 2 | 8 | 30 | (73.3 | )% | ||||||||||||||||||
| Other | 5,217 | 10,624 | (50.9 | )% | 27,685 | 44,876 | (38.3 | )% | ||||||||||||||||
| Total International | 9,617 | 13,634 | (29.5 | )% | 44,433 | 57,637 | (22.9 | )% | ||||||||||||||||
| Worldwide | ||||||||||||||||||||||||
| DEFINITY | 34,112 | 28,882 | 18.1 | % | 131,612 | 111,859 | 17.7 | % | ||||||||||||||||
| TechneLite | 24,596 | 17,117 | 43.7 | % | 99,217 | 72,562 | 36.7 | % | ||||||||||||||||
| Xenon | 7,460 | 10,933 | (31.8 | )% | 29,086 | 48,898 | (40.5 | )% | ||||||||||||||||
| Other | 8,182 | 14,269 | (42.7 | )% | 41,938 | 60,142 | (30.3 | )% | ||||||||||||||||
| Total Revenues | $ | 74,350 | $ | 71,201 | 4.4 | % | $ | 301,853 | $ | 293,461 | 2.9 | % |
Lantheus Holdings, Inc.
Supplemental Revenue Information
| December 31, 2016 Quarter to Date Sales Growth/(Decline) | ||||||||||||||||||||
| Domestic AsReported | Int l Constant Currency | Int l As Reported | Total Constant Currency | Total As Reported | ||||||||||||||||
| Products | ||||||||||||||||||||
| DEFINITY | 17.1 | % | 67.2 | % | 67.0 | % | 18.1 | % | 18.1 | % | ||||||||||
| TechneLite | 44.1 | % | 41.7 | % | 41.5 | % | 43.7 | % | 43.7 | % | ||||||||||
| Xenon | (31.8 | )% | (31.8 | )% | (31.8 | )% | ||||||||||||||
| Other | (18.7 | )% | (51.5 | )% | (50.9 | )% | (43.1 | )% | (42.7 | )% | ||||||||||
| Total Revenues | 12.4 | % | (29.9 | )% | (29.5 | )% | 4.3 | % | 4.4 | % | ||||||||||
| December 31, 2016 Year to Date Sales Growth/(Decline) | ||||||||||||||||||||
| Domestic AsReported | Int l Constant Currency | Int l As Reported | Total Constant Currency | Total As Reported | ||||||||||||||||
| Products | ||||||||||||||||||||
| DEFINITY | 17.3 | % | 37.7 | % | 33.2 | % | 17.7 | % | 17.7 | % | ||||||||||
| TechneLite | 37.7 | % | 35.6 | % | 31.1 | % | 37.4 | % | 36.7 | % | ||||||||||
| Xenon | (40.5 | )% | (73.3 | )% | (73.3 | )% | (40.5 | )% | (40.5 | )% | ||||||||||
| Other | (6.6 | )% | (37.7 | )% | (38.3 | )% | (29.8 | )% | (30.3 | )% | ||||||||||
| Total Revenues | 9.2 | % | (21.4 | )% | (22.9 | )% | 3.2 | % | 2.9 | % |
Lantheus Holdings, Inc.
Reconciliation of Revenues to Revenues Excluding the Impact of Foreign Currency
(in thousands unaudited)
| Three Months Ended December 31, 2016 | Year Ended December 31, 2016 | |||||||||||||||
| International Revenues | Total Revenues | International Revenues | Total Revenues | |||||||||||||
| Revenues | $ | 9,617 | $ | 74,350 | $ | 44,433 | $ | 301,853 | ||||||||
| Currency impact as compared to prior period | (53 | ) | (53 | ) | 860 | 860 | ||||||||||
| Revenues, excluding the impact of foreign currency | $ | 9,564 | $ | 74,297 | $ | 45,293 | $ | 302,713 |
Lantheus Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Operating income | $ | 12,141 | $ | 12,388 | $ | 56,588 | $ | 42,530 | ||||||||
| Reconciling items impacting Operating Income: | ||||||||||||||||
| Campus consolidation costs | 1,181 | 1,181 | 3,630 | |||||||||||||
| Sponsor and other costs | 117 | 117 | 6,527 | |||||||||||||
| Gain (loss) on sales of assets | 120 | (6,385 | ) | |||||||||||||
| Adjusted operating income | $ | 13,559 | $ | 12,388 | $ | 51,501 | $ | 52,687 | ||||||||
| Adjusted operating income, as a percentage revenues | 18.2 | % | 17.4 | % | 17.1 | % | 18.0 | % | ||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income (loss) | $ | 4,869 | $ | 3,916 | $ | 26,762 | $ | (14,746 | ) | |||||||
| Reconciling items impacting Gross Profit: | ||||||||||||||||
| Campus consolidation costs | 77 | |||||||||||||||
| Reconciling items impacting Operating Expenses: | ||||||||||||||||
| Campus consolidation costs | 1,181 | 1,181 | 3,553 | |||||||||||||
| Sponsor and other costs | 117 | 117 | 6,527 | |||||||||||||
| Gain (loss) on sales of assets | 120 | (6,385 | ) | |||||||||||||
| Reconciling items impacting Non-operating Expenses: | ||||||||||||||||
| Debt retirement costs | 481 | 1,896 | ||||||||||||||
| Loss on debt extinguishment | 15,528 | |||||||||||||||
| Interest upon redemption of senior notes | 3,250 | |||||||||||||||
| Adjusted net income | $ | 6,768 | $ | 3,916 | $ | 23,571 | $ | 14,189 | ||||||||
| Adjusted net income, as a percentage of revenues | 9.1 | % | 5.5 | % | 7.8 | % | 4.8 | % |
Lantheus Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income (loss) per common share Diluted | $ | 0.13 | $ | 0.13 | $ | 0.82 | $ | (0.60 | ) | |||||||
| Reconciling items impacting Gross Profit: | ||||||||||||||||
| Campus consolidation costs | $ | $ | $ | $ | ||||||||||||
| Reconciling items impacting Operating Expenses: | ||||||||||||||||
| Campus consolidation costs | $ | 0.04 | $ | $ | 0.04 | $ | 0.15 | |||||||||
| Sponsor and other costs | $ | $ | $ | $ | 0.27 | |||||||||||
| Gain (loss) on sales of assets | $ | $ | $ | (0.20 | ) | $ | ||||||||||
| Reconciling items impacting Non-operating Expenses: | ||||||||||||||||
| Debt retirement costs | $ | 0.01 | $ | $ | 0.06 | $ | ||||||||||
| Loss on debt extinguishment | $ | $ | $ | $ | 0.64 | |||||||||||
| Interest upon redemption of senior notes | $ | $ | $ | $ | 0.13 | |||||||||||
| Adjusted net income per common share Diluted | $ | 0.18 | $ | 0.13 | $ | 0.72 | $ | 0.59 | ||||||||
| Weighted-average common shares outstanding Diluted | 37,853,125 | 30,364,914 | 32,655,958 | 24,439,845 |
Lantheus Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income (loss) | $ | 4,869 | $ | 3,916 | $ | 26,762 | $ | (14,746 | ) | |||||||
| Interest expense, net | 5,816 | 7,092 | 26,598 | 38,691 | ||||||||||||
| Provision for income taxes (a) | 452 | 619 | 477 | 1,314 | ||||||||||||
| Depreciation | 3,529 | 2,164 | 9,915 | 11,813 | ||||||||||||
| Amortization of intangible assets | 2,070 | 2,160 | 8,348 | 7,838 | ||||||||||||
| EBITDA | 16,736 | 15,951 | 72,100 | 44,910 | ||||||||||||
| Reconciling items impacting EBITDA: | ||||||||||||||||
| Stock and incentive plan compensation | 791 | 478 | 3,527 | 2,002 | ||||||||||||
| Legal fees relating to business interruption claim (b) | 5 | 9 | 72 | |||||||||||||
| Asset write-off (c) | 818 | 286 | 1,906 | 1,468 | ||||||||||||
| Severance and recruiting costs (d) | 204 | 507 | 2,090 | 1,360 | ||||||||||||
| Sponsor fee and other (e) | 117 | 117 | 7,340 | |||||||||||||
| Debt retirement costs | 481 | 1,896 | ||||||||||||||
| Extinguishment of debt | 15,528 | |||||||||||||||
| Gain (loss) on sales of assets | 120 | (6,385 | ) | |||||||||||||
| New manufacturer costs (f) | 578 | 1,081 | 3,029 | 3,649 | ||||||||||||
| Adjusted EBITDA | $ | 19,845 | $ | 18,308 | $ | 78,289 | $ | 76,329 | ||||||||
| Adjusted EBITDA, as a percentage of revenues | 26.7 | % | 25.7 | % | 25.9 | % | 26.0 | % |
Lantheus Holdings, Inc.
Reconciliation of Free Cash Flow
(in thousands unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Cash provided by operating activities | $ | 12,781 | $ | 12,626 | $ | 49,642 | $ | 21,762 | ||||||||
| Capital expenditures | (2,422 | ) | (4,732 | ) | (7,398 | ) | (13,151 | ) | ||||||||
| Free cash flow | $ | 10,359 | $ | 7,894 | $ | 42,244 | $ | 8,611 |
Lantheus Holdings, Inc.
Condensed Consolidated Balance Sheets
(in thousands unaudited)
| December 31, 2016 | December 31, 2015 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 51,178 | $ | 28,596 | ||||
| Accounts receivable, net | 36,818 | 37,293 | ||||||
| Inventory | 17,640 | 15,622 | ||||||
| Other current assets | 5,183 | 3,851 | ||||||
| Assets held for sale | 4,644 | |||||||
| Total current assets | 110,819 | 90,006 | ||||||
| Property, plant & equipment, net | 94,187 | 95,654 | ||||||
| Intangibles, net | 15,118 | 20,496 | ||||||
| Goodwill | 15,714 | 15,714 | ||||||
| Other long-term assets | 20,060 | 20,509 | ||||||
| Total assets | $ | 255,898 | $ | 242,379 | ||||
| Liabilities and Stockholders Deficit | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 3,650 | $ | 3,650 | ||||
| Accounts payable | 18,940 | 11,657 | ||||||
| Accrued expenses and other current liabilities | 21,249 | 18,502 | ||||||
| Liabilities held for sale | 1,715 | |||||||
| Total current liabilities | 43,839 | 35,524 | ||||||
| Asset retirement obligation | 9,370 | 8,145 | ||||||
| Long-term debt, net | 274,460 | 349,858 | ||||||
| Other long-term liabilities | 34,745 | 34,141 | ||||||
| Total liabilities | 362,414 | 427,668 | ||||||
| Stockholders deficit | (106,516 | ) | (185,289 | ) | ||||
| Total liabilities and stockholders deficit | $ | 255,898 | $ | 242,379 |
Head of Capital Markets and Investor Relations
Director, Investor Relations and Corporate