Delaware | 001-36569 | 35-2318913 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
331 Treble Cove Road, North Billerica, MA | 01862 | |
(Address of principal executive offices) | (Zip Code) |
Not Applicable |
(Former name or former address, if changed since last report.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
* | Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing. |
LANTHEUS HOLDINGS, INC. | |
By: | /S/ Michael P. Duffy |
Name: | Michael P. Duffy |
Title: | General Counsel, Senior Vice President, Law and Public Policy, and Secretary |
* | Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing. |
331 Treble Cove Road North Billerica, MA 01862 | 800.362.2668 www.lantheus.com |
• | Worldwide revenues of $88.9 million for the third quarter, an increase of 11.2% over the prior year period |
• | Net income for the third quarter of $9.3 million, or $0.24 per diluted share, an increase of 8.7% over the prior year period |
• | EBITDA of $20.0 million and Adjusted EBITDA of $26.1 million for the third quarter, an increase of 17.9% and 15.5% over the prior year period, respectively |
• | Company reaffirms full-year revenue and updates Adjusted EBITDA guidance |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | $ | 88,900 | $ | 79,941 | $ | 257,103 | $ | 250,137 | |||||||
Cost of goods sold | 44,015 | 41,414 | 126,063 | 125,901 | |||||||||||
Gross profit | 44,885 | 38,527 | 131,040 | 124,236 | |||||||||||
Operating expenses | |||||||||||||||
Sales and marketing | 10,478 | 10,075 | 33,248 | 31,892 | |||||||||||
General and administrative | 13,609 | 12,076 | 37,727 | 35,549 | |||||||||||
Research and development | 4,316 | 3,554 | 12,520 | 14,149 | |||||||||||
Total operating expenses | 28,403 | 25,705 | 83,495 | 81,590 | |||||||||||
Operating income | 16,482 | 12,822 | 47,545 | 42,646 | |||||||||||
Interest expense | 4,446 | 4,442 | 12,794 | 14,147 | |||||||||||
Loss on extinguishment of debt | — | — | — | 2,161 | |||||||||||
Other income | (799 | ) | (908 | ) | (2,055 | ) | (2,037 | ) | |||||||
Income before income taxes | 12,835 | 9,288 | 36,806 | 28,375 | |||||||||||
Income tax expense | 3,566 | 762 | 9,581 | 2,116 | |||||||||||
Net income | $ | 9,269 | $ | 8,526 | $ | 27,225 | $ | 26,259 | |||||||
Net income per common share: | |||||||||||||||
Basic | $ | 0.24 | $ | 0.23 | $ | 0.71 | $ | 0.71 | |||||||
Diluted | $ | 0.24 | $ | 0.22 | $ | 0.69 | $ | 0.67 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 38,342 | 37,393 | 38,155 | 37,174 | |||||||||||
Diluted | 39,402 | 39,121 | 39,467 | 38,971 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2018 | 2017 | Change % | 2018 | 2017 | Change % | ||||||||||||||||
United States | |||||||||||||||||||||
DEFINITY | $ | 42,472 | $ | 36,901 | 15.1 | % | $ | 131,081 | $ | 113,035 | 16.0 | % | |||||||||
TechneLite | 19,374 | 22,621 | (14.4 | )% | 56,780 | 69,150 | (17.9 | )% | |||||||||||||
Xenon | 7,239 | 7,726 | (6.3 | )% | 22,805 | 23,709 | (3.8 | )% | |||||||||||||
Other | 1,170 | 2,331 | (49.8 | )% | 5,163 | 12,812 | (59.7 | )% | |||||||||||||
Total United States | 70,255 | 69,579 | 1.0 | % | 215,829 | 218,706 | (1.3 | )% | |||||||||||||
International | |||||||||||||||||||||
DEFINITY | 1,283 | 828 | 55.0 | % | 3,427 | 2,534 | 35.2 | % | |||||||||||||
TechneLite | 11,244 | 3,735 | 201.0 | % | 18,711 | 10,750 | 74.1 | % | |||||||||||||
Xenon | — | — | — | % | — | 4 | (100.0 | )% | |||||||||||||
Other | 6,118 | 5,799 | 5.5 | % | 19,136 | 18,143 | 5.5 | % | |||||||||||||
Total International | 18,645 | 10,362 | 79.9 | % | 41,274 | 31,431 | 31.3 | % | |||||||||||||
Worldwide | |||||||||||||||||||||
DEFINITY | 43,755 | 37,729 | 16.0 | % | 134,508 | 115,569 | 16.4 | % | |||||||||||||
TechneLite | 30,618 | 26,356 | 16.2 | % | 75,491 | 79,900 | (5.5 | )% | |||||||||||||
Xenon | 7,239 | 7,726 | (6.3 | )% | 22,805 | 23,713 | (3.8 | )% | |||||||||||||
Other | 7,288 | 8,130 | (10.4 | )% | 24,299 | 30,955 | (21.5 | )% | |||||||||||||
Total Revenues | $ | 88,900 | $ | 79,941 | 11.2 | % | $ | 257,103 | $ | 250,137 | 2.8 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Operating income | $ | 16,482 | $ | 12,822 | $ | 47,545 | $ | 42,646 | ||||||||
Campus consolidation costs including depreciation | 84 | 797 | 1,154 | 5,779 | ||||||||||||
Offering and other costs | — | 73 | — | 602 | ||||||||||||
Non-recurring refinancing related fees | — | — | — | 1,721 | ||||||||||||
Adjusted operating income | $ | 16,566 | $ | 13,692 | $ | 48,699 | $ | 50,748 | ||||||||
Adjusted operating income, as a percentage of revenues | 18.6 | % | 17.1 | % | 18.9 | % | 20.3 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income | $ | 9,269 | $ | 8,526 | $ | 27,225 | $ | 26,259 | ||||||||
Reconciling items impacting operating income: | ||||||||||||||||
Campus consolidation costs including depreciation | 84 | 797 | 1,154 | 5,779 | ||||||||||||
Offering and other costs | — | 73 | — | 602 | ||||||||||||
Non-recurring refinancing related fees | — | — | — | 1,721 | ||||||||||||
Reconciling items impacting non-operating expenses and income taxes: | ||||||||||||||||
Loss on debt extinguishment and retirement costs | — | — | — | 2,161 | ||||||||||||
Income tax effect of non-GAAP adjustments(a) (b) | (21 | ) | (220 | ) | (291 | ) | (2,591 | ) | ||||||||
Adjusted net income | $ | 9,332 | $ | 9,176 | $ | 28,088 | $ | 33,931 | ||||||||
Adjusted net income, as a percentage of revenues | 10.5 | % | 11.5 | % | 10.9 | % | 13.6 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income per share - diluted | $ | 0.24 | $ | 0.22 | $ | 0.69 | $ | 0.67 | ||||||||
Reconciling items impacting operating income: | ||||||||||||||||
Campus consolidation costs including depreciation | — | 0.02 | 0.03 | 0.15 | ||||||||||||
Offering and other costs | — | — | — | 0.02 | ||||||||||||
Non-recurring refinancing related fees | — | — | — | 0.04 | ||||||||||||
Reconciling items impacting non-operating expenses and income taxes: | ||||||||||||||||
Loss on debt extinguishment and retirement costs | — | — | — | 0.06 | ||||||||||||
Tax effect of non-GAAP adjustments(a) (b) | — | (0.01 | ) | (0.01 | ) | (0.07 | ) | |||||||||
Adjusted net income per share - diluted | $ | 0.24 | $ | 0.23 | $ | 0.71 | $ | 0.87 | ||||||||
Weighted-average common shares outstanding - diluted | 39,402 | 39,121 | 39,467 | 38,971 |
(a) | The income tax effect of the adjustments between GAAP net income and non-GAAP adjusted net income takes into account the tax treatment and related tax rate that apply to each adjustment in the applicable tax jurisdiction. |
(b) | During the fourth quarter of 2017, we released the valuation allowance previously recorded against our domestic net deferred tax assets. As a result, we included the tax effect of non-GAAP adjustments starting in the fourth quarter of 2017. Presentation of 2017 Adjusted Net Income has been modified to allow better go-forward comparability by including the tax effect of non-GAAP reconciling items. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income | $ | 9,269 | $ | 8,526 | $ | 27,225 | $ | 26,259 | ||||||||
Interest expense, net | 4,428 | 4,437 | 12,761 | 14,134 | ||||||||||||
Income tax expense(a) | 2,875 | 272 | 7,361 | 646 | ||||||||||||
Depreciation | 1,805 | 2,102 | 5,533 | 10,066 | ||||||||||||
Amortization of intangible assets | 1,650 | 1,646 | 5,011 | 4,953 | ||||||||||||
EBITDA | 20,027 | 16,983 | 57,891 | 56,058 | ||||||||||||
Stock and incentive plan compensation | 2,639 | 1,933 | 7,015 | 4,735 | ||||||||||||
Asset write-off (b) | 1,254 | 911 | 3,273 | 2,184 | ||||||||||||
Severance and recruiting costs (c) | 1,776 | 666 | 2,227 | 1,033 | ||||||||||||
Offering and other costs (d) | — | 73 | — | 602 | ||||||||||||
Campus consolidation costs | 84 | 408 | 1,154 | 1,101 | ||||||||||||
Debt refinancing costs | — | — | — | 1,721 | ||||||||||||
Extinguishment of debt and debt retirement costs | — | — | — | 2,161 | ||||||||||||
New manufacturer costs (e) | 334 | 1,639 | 1,301 | 3,616 | ||||||||||||
Adjusted EBITDA | $ | 26,114 | $ | 22,613 | $ | 72,861 | $ | 73,211 | ||||||||
Adjusted EBITDA, as a percentage of revenues | 29.4 | % | 28.3 | % | 28.3 | % | 29.3 | % |
(a) | Represents income tax expense, less tax indemnification income associated with Bristol-Myers Squibb. |
(b) | Represents non-cash losses incurred associated with inventory and other write-offs 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. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net cash provided by operating activities | $ | 24,277 | $ | 15,600 | $ | 43,887 | $ | 41,691 | |||||||
Capital expenditures | (5,005 | ) | (3,288 | ) | (12,766 | ) | (11,589 | ) | |||||||
Free cash flow | $ | 19,272 | $ | 12,312 | $ | 31,121 | $ | 30,102 |
September 30, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 104,584 | $ | 76,290 | |||
Accounts receivable, net | 47,135 | 40,259 | |||||
Inventory | 34,572 | 26,080 | |||||
Other current assets | 4,669 | 5,221 | |||||
Total current assets | 190,960 | 147,850 | |||||
Property, plant & equipment, net | 99,407 | 92,999 | |||||
Intangibles, net | 9,727 | 11,798 | |||||
Goodwill | 15,714 | 15,714 | |||||
Deferred tax assets, net | 79,358 | 87,010 | |||||
Other long-term assets | 29,652 | 28,487 | |||||
Total assets | $ | 424,818 | $ | 383,858 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities | |||||||
Current portion of long-term debt | $ | 2,750 | $ | 2,750 | |||
Revolving line of credit | — | — | |||||
Accounts payable | 20,363 | 17,464 | |||||
Accrued expenses and other liabilities | 31,464 | 26,536 | |||||
Total current liabilities | 54,577 | 46,750 | |||||
Asset retirement obligations | 11,282 | 10,412 | |||||
Long-term debt, net | 264,130 | 265,393 | |||||
Other long-term liabilities | 39,321 | 38,012 | |||||
Total liabilities | 369,310 | 360,567 | |||||
Total stockholders’ equity | 55,508 | 23,291 | |||||
Total liabilities and stockholders’ equity | $ | 424,818 | $ | 383,858 |