EX-99.1 2 exhibit991q12018earningspr.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
lantheus.jpg
331 Treble Cove Road
North Billerica, MA 01862
800.362.2668
www.lantheus.com
Lantheus Holdings, Inc. Reports 2018 First Quarter Results
DEFINITY® worldwide revenues increase 18.4% year over year
NORTH BILLERICA, Mass., May 2, 2018 - 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 first quarter ended March 31, 2018.
Management Comments
“Our first quarter provided an excellent start to the year, driven by robust sales for DEFINITY,” said Mary Anne Heino, President and CEO. “The first quarter also was marked by effective execution across a number of programs as we look to enhance the growth trajectory and profitability of our core microbubble franchise, augment our pipeline with focus on emerging technologies, and pursue complementary, external opportunities across the broader Life Sciences sector that fit with our objective to deliver long-term sustainable growth and profitability.”
“The application of microbubbles is emerging as a valuable platform for increased uses, including drug delivery and therapy. With the expertise we have built in microbubble technology, our goal is to lead in these growing markets. At the same time, clinical work regarding flurpiridaz F 18, a novel PET cardiac imaging agent for the evaluation of coronary artery disease, and LMI 1195, our fluorine-18-based PET agent which is expected to aid the diagnosis of heart failure patients at risk for sudden cardiac death, is proceeding on schedule. Internationally, our DEFINITY China program continues to move forward, with patient enrollment completed for the cardiac and pharmacokinetic studies, while enrollment in the kidney and liver studies is ongoing. We look to continue to execute successfully on our strategy and will report on our progress as we proceed through 2018,” continued Ms. Heino.
Financial Highlights
The Company’s worldwide revenues for the first quarter of 2018 totaled $82.6 million, representing an increase of 1.6% compared with $81.4 million for the first quarter of 2017. DEFINITY, the Company's flagship product and the world's leading echo contrast agent, had worldwide revenues of $44.7 million for the first quarter, an increase of 18.4% from the year-ago period.
Net income for the first quarter of 2018 totaled $8.2 million, or $0.21 per diluted share, compared with $4.1 million, or $0.11 per diluted share, for the first quarter of 2017. The Company’s first quarter 2018 Adjusted EBITDA (as outlined in the GAAP to non-GAAP reconciliation provided below) was $23.1 million, or 27.9% of revenues, compared with $22.7 million, or 27.8% of revenues, for the first quarter of 2017.
Outlook
For the second quarter of 2018, the Company expects worldwide revenues in the range of $85 million to $90 million. The Company expects Adjusted EBITDA, as described in the GAAP to non-GAAP reconciliation provided later in this release, of $20 million to $23 million, representing 22.2% to 27.1% of anticipated worldwide revenues.
The Company maintains its guidance for full year 2018 worldwide revenues of approximately $337 million to $342 million, compared with $326.4 million in 2017 (which excludes a $5 million up-front payment received from GE Healthcare). The Company also maintains its guidance for full year 2018 Adjusted EBITDA of $85 million to $90 million, representing 24.9% to 26.7% of anticipated worldwide revenues.
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 http://www.lantheus.com/. The Company encourages investors and potential investors to consult its website regularly for important information about the Company.

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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 8487086. 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 and its line components; 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 2018 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 2018 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 and the fact that some of the excluded information is not readily 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.
Contact
Meara Murphy
978-671-8508
Director, Investor Relations and Corporate Communications
Lantheus Holdings, Inc.
- Tables Follow -

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Lantheus Holdings, Inc.
Consolidated Statements of Operations
(in thousands, except per share data – unaudited)
 
 
Three Months Ended
March 31,
 
 
2018
 
2017
Revenues
 
$
82,630

 
$
81,359

Cost of goods sold
 
40,321

 
41,597

Gross profit
 
42,309

 
39,762

Operating expenses
 
 
 
 
Sales and marketing
 
10,640

 
10,214

General and administrative
 
12,543

 
12,270

Research and development
 
3,989

 
5,351

Total operating expenses
 
27,172

 
27,835

Operating income
 
15,137

 
11,927

Interest expense
 
4,050

 
5,420

Loss on extinguishment of debt
 
—

 
2,161

Other income
 
(920
)
 
(577
)
Income before income taxes
 
12,007

 
4,923

Income tax expense
 
3,796

 
785

Net income
 
$
8,211

 
$
4,138

Net income per common share:
 
 
 
 
Basic
 
$
0.22

 
$
0.11

Diluted
 
$
0.21

 
$
0.11

Weighted-average common shares outstanding:
 
 
 
 
Basic
 
37,886

 
36,889

Diluted
 
39,493

 
38,601


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Lantheus Holdings, Inc.
Consolidated Segment Revenues Analysis
(in thousands – unaudited)
 
Three Months Ended
March 31,
 
2018
2017
Change
%
United States
 
 
 
 
 
DEFINITY
$
43,506

 
$
36,923

 
17.8
 %
TechneLite
18,063

 
23,308

 
(22.5
)%
Xenon
7,927

 
8,058

 
(1.6
)%
Other
1,992

 
2,738

 
(27.2
)%
Total United States
71,488

 
71,027

 
0.6
 %
International
 
 
 
 
 
DEFINITY
1,149

 
789

 
45.6
 %
TechneLite
3,332

 
3,517

 
(5.3
)%
Xenon
—

 
2

 
(100.0
)%
Other
6,661

 
6,024

 
10.6
 %
Total International
11,142

 
10,332

 
7.8
 %
Worldwide
 
 
 
 
 
DEFINITY
44,655

 
37,712

 
18.4
 %
TechneLite
21,395

 
26,825

 
(20.2
)%
Xenon
7,927

 
8,060

 
(1.7
)%
Other
8,653

 
8,762

 
(1.2
)%
Total Revenues
$
82,630

 
$
81,359

 
1.6
 %

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Lantheus Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands – unaudited)
 
 
Three Months Ended
March 31,
 
 
2018
 
2017
Operating income
 
$
15,137

 
$
11,927

Campus consolidation costs including depreciation
 
483

 
2,541

Offering and other costs
 
—

 
178

Non-recurring refinancing related fees
 
—

 
1,695

Adjusted operating income
 
$
15,620

 
$
16,341

Adjusted operating income, as a percentage of revenues
 
18.9
%
 
20.1
%


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Lantheus Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except per share data – unaudited)
 
 
Three Months Ended
March 31,
 
 
2018
 
2017
Net income
 
$
8,211

 
$
4,138

Reconciling items impacting operating income:
 
 
 
 
Campus consolidation costs including depreciation
 
483

 
2,541

Offering and other costs
 
—

 
178

Non-recurring refinancing related fees
 
—

 
1,695

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)
 
(122
)
 
(1,660
)
Adjusted net income
 
$
8,572

 
$
9,053

Adjusted net income, as a percentage of revenues
 
10.4
%
 
11.1
%
 
 
Three Months Ended
March 31,
 
 
2018
 
2017
Net income per share - diluted
 
$
0.21

 
$
0.11

Reconciling items impacting operating income:
 
 
 
 
Campus consolidation costs including depreciation
 
0.01

 
0.07

Offering and other costs
 
—

 
—

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)
 
—

 
(0.05
)
Adjusted net income per share - diluted
 
$
0.22

 
$
0.23

Weighted-average common shares outstanding - diluted
 
39,493

 
38,601

(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.

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Lantheus Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands – unaudited)
 
 
Three Months Ended
March 31,
 
 
2018
 
2017
Net income
 
$
8,211

 
$
4,138

Interest expense, net
 
4,043

 
5,417

Income tax expense(a)
 
2,955

 
296

Depreciation
 
1,874

 
4,514

Amortization of intangible assets
 
1,722

 
1,646

EBITDA
 
18,805

 
16,011

Stock and incentive plan compensation
 
1,977

 
1,292

Asset write-off (b)
 
1,245

 
312

Severance and recruiting costs (c)
 
209

 
139

Offering and other costs (d)
 
—

 
178

Campus consolidation costs
 
483

 
27

Debt refinancing costs
 
—

 
1,695

Extinguishment of debt and debt retirement costs
 
—

 
2,161

New manufacturer costs (e)
 
368

 
836

Adjusted EBITDA
 
$
23,087

 
$
22,651

Adjusted EBITDA, as a percentage of revenues
 
27.9
%
 
27.8
%
(a)
Represents income tax expense, less tax indemnification income associated with BMS.
(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.

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Lantheus Holdings, Inc.
Reconciliation of Free Cash Flow
(in thousands – unaudited)
 
Three Months Ended
March 31,
 
2018
 
2017
Net cash (used in) provided by operating activities
$
(666
)
 
$
5,524

Capital expenditures
(2,135
)
 
(4,899
)
Free cash flow
$
(2,801
)
 
$
625


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Lantheus Holdings, Inc.
Condensed Consolidated Balance Sheets
(in thousands – unaudited)
 
March 31,
2018
 
December 31,
2017
Assets
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
73,739

 
$
76,290

Accounts receivable, net
47,834

 
40,259

Inventory
32,086

 
26,080

Other current assets
5,598

 
5,221

Total current assets
159,257

 
147,850

Property, plant & equipment, net
93,777

 
92,999

Intangibles, net
11,106

 
11,798

Goodwill
15,714

 
15,714

Deferred tax assets, net
83,655

 
87,010

Other long-term assets
29,080

 
28,487

Total assets
$
392,589

 
$
383,858

Liabilities and stockholders’ equity
 
 
 
Current liabilities
 
 
 
Current portion of long-term debt
$
2,750

 
$
2,750

Revolving line of credit
—

 
—

Accounts payable
21,012

 
17,464

Accrued expenses and other liabilities
21,634

 
26,536

Total current liabilities
45,396

 
46,750

Asset retirement obligations
10,702

 
10,412

Long-term debt, net
264,972

 
265,393

Other long-term liabilities
37,855

 
38,012

Total liabilities
358,925

 
360,567

Total stockholders’ equity
33,664

 
23,291

Total liabilities and stockholders’ equity
$
392,589

 
$
383,858

###

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