- Posts Q3 revenue of $79.9 million, up
9.4% from prior year; net income of $8.5 million and Adjusted
EBITDA of $22.6 million
- DEFINITY® worldwide revenues increase
15.7% over prior year period
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, 2017.
The Company’s worldwide revenues for the third quarter of 2017
totaled $79.9 million. This represents an increase of 9.4% compared
to $73.1 million for the prior year period, and exceeds third
quarter guidance of $75 million to $78 million. Revenue results
were driven by 15.7% growth in worldwide sales of DEFINITY®, 7.4%
growth in worldwide sales of TechneLite® and 15.7% growth in
worldwide sales of Xenon compared to the third quarter of 2016.
Net income for the third quarter of 2017 totaled $8.5 million,
or $0.22 per diluted share, compared to $4.2 million, or $0.13 per
diluted share, for the third quarter of 2016. The increase is
primarily attributable to DEFINITY and Xenon revenue growth and
lower interest expense related to the refinancing of debt in March
2017 and voluntary prepayments made during September and November
2016. This was partially offset by increased operating expenses for
sales and marketing as well as costs related to strategic
initiatives.
The Company’s third quarter 2017 Adjusted EBITDA (as outlined in
the GAAP to non-GAAP reconciliation provided below) was $22.6
million, or 28.3% of revenues. This compares to $18.7 million, or
25.6% of revenues, for the prior year period, and exceeded the
previously provided third quarter guidance of $17 million to $19
million. Third quarter results were driven by DEFINITY and Xenon
revenue growth, partially offset by sales and marketing expenses
attributable to sales growth in DEFINITY as well as costs related
to strategic initiatives.
“With revenue up $6.8 million and Adjusted EBITDA up $3.9
million year-over-year, we delivered solid results, again exceeding
our quarterly guidance,” commented Mary Anne Heino, President and
CEO. “Continued double-digit growth of our echocardiography imaging
agent, DEFINITY, complemented by higher contracted volumes of
TechneLite and Xenon, drove our results this quarter. As a result
of our strong performance, we are raising our full-year guidance.
Our priority for the final quarter of the year is to continue to
build on our operational success while advancing strategic
initiatives to drive long-term growth.”
Outlook
The Company has increased its full-year 2017 worldwide revenue
guidance range to $323 million to $325 million from previous
guidance of $318 million to $322 million. The Company has also
increased its full-year 2017 guidance range for Adjusted EBITDA, as
described in the GAAP to non-GAAP reconciliation provided later in
this release, to $86 million to $88 million from previous guidance
of $82 million to $85 million, a margin of 26.5% to 27.2% of
worldwide revenues.
The full-year guidance for both revenue and Adjusted EBITDA
excludes the impact of a $5.0 million up-front payment received in
the second quarter of 2017 from GE Healthcare under the flurpiridaz
F 18 collaboration and license agreement.
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.
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 8783209. 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 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, including 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.
– Tables Follow –
Lantheus Holdings,
Inc.Consolidated Statements of Operations(in thousands,
except per share data – unaudited)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30, 2017
2016 2017 2016 Revenues $ 79,941 $
73,063 $ 250,137 $ 227,503 Cost of goods sold 41,414 39,382
125,901 124,370 Gross profit 38,527
33,681 124,236 103,133 Operating expenses
Sales and marketing 10,075 8,706 31,892 27,856 General and
administrative 12,076 10,091 35,549 28,842 Research and development
3,554 2,849 14,149 8,493 Total
operating expenses 25,705 21,646 81,590 65,191 Gain on sales of
assets — (560 ) — (6,505 ) Operating income 12,822
12,595 42,646 44,447 Interest expense 4,442 6,792 14,147 20,799
Debt retirement costs
— 1,415 — 1,415 Loss on extinguishment of debt — — 2,161 — Other
(income) expense (908 ) 148 (2,037 ) (317 ) Income before
income taxes 9,288 4,240 28,375 22,550 Provision for income taxes
762 20 2,116 657 Net income $ 8,526
$ 4,220 $ 26,259 $ 21,893 Net income
per common share outstanding: Basic $ 0.23 $ 0.14 $
0.71 $ 0.71 Diluted $ 0.22 $ 0.13 $
0.67 $ 0.71 Weighted-average common shares
outstanding: Basic 37,393 31,221 37,174 30,658
Diluted 39,121 32,402 38,971 31,049
Lantheus Holdings,
Inc.Consolidated Segment Revenues Analysis(in thousands
– unaudited)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30, 2017
2016 % Change 2017 2016
% Change
United
States
DEFINITY $ 36,901 $ 32,007 15.3 % $ 113,035 $ 95,497 18.4 %
TechneLite 22,621 20,906 8.2 % 69,150 64,282 7.6 % Xenon 7,726
6,675 15.7 % 23,709 21,620 9.7 % Other 2,331 3,033 (23.1 )% 12,812
11,288 13.5 % Total United States 69,579 62,621 11.1 % 218,706
192,687 13.5 %
International
DEFINITY 828 597 38.7 % 2,534 2,002 26.6 % TechneLite 3,735 3,627
3.0 % 10,750 10,339 4.0 % Xenon — 2 (100.0 )% 4 5 (20.0 )% Other
5,799 6,216 (6.7 )% 18,143 22,470 (19.3 )% Total International
10,362 10,442 (0.8 )% 31,431 34,816 (9.7 )%
Worldwide
DEFINITY 37,729 32,604 15.7 % 115,569 97,499 18.5 % TechneLite
26,356 24,533 7.4 % 79,900 74,621 7.1 % Xenon 7,726 6,677 15.7 %
23,713 21,625 9.7 % Other 8,130 9,249 (12.1 )% 30,955 33,758 (8.3
)% Total Revenues $ 79,941 $ 73,063 9.4 % $ 250,137 $ 227,503 9.9 %
Lantheus Holdings,
Inc.Supplemental Revenue Information(unaudited)
September 30, 2017Quarter to Date Sales
Growth/(Decline) Domestic
As
Reported
Int'l
Constant
Currency
Int'l As
Reported
Total
Constant
Currency
Total As
Reported
Products DEFINITY 15.3 % 34.3 % 38.7 % 15.6 %
15.7 % TechneLite 8.2 % (0.1 )% 3.0 % 7.0 % 7.4 % Xenon 15.7 %
(100.0 )% (100.0 )% 15.7 % 15.7 % Other (23.1 )% (6.0 )% (6.7 )%
(11.7 )% (12.1 )%
Total Revenues 11.1 % (1.7 )% (0.8 )% 9.3
% 9.4 %
September 30, 2017 Year to Date Sales
Growth/(Decline) DomesticAs Reported
Int'lConstant Currency Int'l
AsReported TotalConstant Currency
Total AsReported Products
DEFINITY 18.4 % 25.5 % 26.6 % 18.5 % 18.5 % TechneLite 7.6 % 3.1 %
4.0 % 7.0 % 7.1 % Xenon 9.7 % (20.0 )% (20.0 )% 9.7 % 9.7 % Other
13.5 % (19.1 )% (19.3 )% (8.2 )% (8.3 )%
Total Revenues 13.5
% (9.9 )% (9.7 )% 9.9 % 9.9 %
Lantheus Holdings,
Inc.Reconciliation of Revenues to Revenues Excluding the
Impact of Foreign Currency(in thousands – unaudited)
Three Months EndedSeptember 30,
2017 Nine Months EndedSeptember 30, 2017
InternationalRevenues
TotalRevenues
InternationalRevenues
TotalRevenues
Revenues $ 10,362 $ 79,941 $ 31,431 $ 250,137 Currency
impact as compared to prior period (96 ) (96 ) (73 ) (73 )
Revenues, excluding the impact of foreign currency $ 10,266
$ 79,845 $ 31,358 $ 250,064
Lantheus Holdings,
Inc.Reconciliation of GAAP to Non-GAAP Financial
Measures(in thousands – unaudited)
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
2017 2016 2017 2016
Operating income $ 12,822 $ 12,595 $ 42,646 $ 44,447
Reconciling items impacting operating income: Campus consolidation
costs including depreciation 797 — 5,779 — Offering and other costs
73 — 602 — Non-recurring refinancing related fees — — 1,721 — Gain
on sale of assets — (560 ) — (6,505 )
Adjusted
operating income $ 13,692 $ 12,035 $ 50,748
$ 37,942
Adjusted operating income, as a
percentage of revenues
17.1 % 16.5 % 20.3 % 16.7 %
Three
Months EndedSeptember 30, Nine Months
EndedSeptember 30, 2017 2016
2017 2016 Net income $ 8,526 $
4,220 $ 26,259 $ 21,893 Reconciling items
impacting operating expenses: Campus consolidation costs including
depreciation 797 — 5,779 — Offering and other costs 73 — 602 —
Non-recurring refinancing related fees — — 1,721 — Gain on sale of
assets — (560 ) — (6,505 ) Reconciling items impacting
non-operating expenses: Loss on debt extinguishment and retirement
costs — 1,415 2,161 1,415
Adjusted
net income $ 9,396 $ 5,075 $ 36,522 $
16,803
Adjusted net income, as a percentage of
revenues 11.8 % 6.9 % 14.6 % 7.4 %
Lantheus Holdings,
Inc.Reconciliation of GAAP to Non-GAAP Financial
Measures(in thousands, except per share data – unaudited)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30, 2017
2016 2017 2016 Net income per share -
diluted $ 0.22 $ 0.13 $ 0.67 $ 0.71
Reconciling items impacting operating expenses: Campus
consolidation costs including depreciation $ 0.02 $ — $ 0.15 $ —
Offering and other costs $ — $ — $ 0.02 $ — Non-recurring
refinancing related fees $ — $ — $ 0.04 $ — Gain on sale of assets
$ — $ (0.02 ) $ — $ (0.21 ) Reconciling items impacting
non-operating expenses: Loss on debt extinguishment and retirement
costs $ — $ 0.04 $ 0.06 $ 0.05 Adjusted
net income per share - diluted $ 0.24 $ 0.15 $ 0.94
$ 0.55 Weighted-average common shares outstanding -
diluted 39,121 32,402 38,971 31,049
Lantheus Holdings,
Inc.Reconciliation of GAAP to Non-GAAP Financial
Measures(in thousands – unaudited)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30, 2017
2016 2017 2016 Net income $ 8,526 $
4,220 $ 26,259 $ 21,893 Interest expense, net 4,437 6,786 14,134
20,782 Provision for income taxes (a) 272 (176 ) 646 25
Depreciation 2,102 2,157 10,066 6,386 Amortization of intangible
assets 1,646 2,083 4,953 6,278 EBITDA
16,983 15,070 56,058 55,364 Stock and incentive plan compensation
1,933 1,248 4,735 2,736 Asset write-off (b) 911 242 2,184 1,088
Severance and recruiting costs (c) 666 455 1,033 1,886 Offering and
other costs(d) 73 — 602 9 Campus consolidation costs 408 — 1,101 —
Debt refinancing costs — — 1,721 — Extinguishment of debt and debt
retirement costs — 1,415 2,161 1,415 Gain on sales of assets — (560
) — (6,505 ) New manufacturer costs (e) 1,639 805
3,616 2,451 Adjusted EBITDA $ 22,613 $ 18,675
$ 73,211 $ 58,444 Adjusted EBITDA, as a
percentage of revenues 28.3 % 25.6 % 29.3 % 25.7 %
(a) Represents provision for income taxes, less tax
indemnification associated with BMS.
(b) Represents non-cash losses incurred associated with the
write-down of inventory and write-off of long-lived assets.
(c) The amounts consist of severance and recruitment costs
related to employees, executives and directors.
(d) Represents offering costs incurred on behalf of certain
shareholders pursuant to a registration rights agreement and other
non-recurring costs.
(e) Represents internal and external costs associated with
establishing new manufacturing sources for our commercial and
clinical candidate products.
Lantheus Holdings,
Inc.Reconciliation of Free Cash Flow(in thousands –
unaudited)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30, 2017
2016 2017 2016 Net cash provided by
operating activities $ 15,600 $ 15,446 $ 41,691 $ 36,861 Capital
expenditures (3,288 ) (2,588 ) (11,589 ) (4,976 ) Free cash flow $
12,312 $ 12,858 $ 30,102 $ 31,885
Lantheus Holdings, Inc.Condensed
Consolidated Balance Sheets(in thousands – unaudited)
September 30, 2017 December
31, 2016 Assets Current assets Cash and cash
equivalents $ 68,077 $ 51,178 Accounts receivable, net 41,713
36,818 Inventory 23,032 17,640 Other current assets 3,789
5,183
Total current assets
136,611 110,819 Property, plant & equipment, net 94,516 94,187
Intangibles, net 12,645 15,118 Goodwill 15,714 15,714 Other
long-term assets 21,535 20,060 Total assets $ 281,021
$ 255,898
Liabilities and Stockholders’
Deficit Current liabilities Current portion of long-term debt $
2,750 $ 3,650 Revolving line of credit — — Accounts payable 18,756
18,940 Accrued expenses and other liabilities 24,581 21,249
Total current liabilities 46,087 43,839 Asset retirement
obligations 10,151 9,370 Long-term debt, net 265,523 274,460 Other
long-term liabilities 37,176 34,745 Total liabilities
358,937 362,414 Stockholders’ deficit (77,916 )
(106,516 ) Total liabilities and stockholders’ deficit $ 281,021
$ 255,898
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171102006396/en/
Lantheus Holdings, Inc.InvestorsGary Santo, 978-671-8960Head of Capital
Markets and Investor RelationsorMediaMeara Murphy, 978-671-8508Director, Investor
Relations and Corporate Communications
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