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)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common stock, par value $0.01 per share | LNTH | The Nasdaq Global Market |
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: | Senior Vice President and General Counsel |
![]() | 331 Treble Cove Road North Billerica, MA 01862 | 800.362.2668 www.lantheus.com |
• | Worldwide revenue of $89.3 million and $347.3 million for the fourth quarter and full year 2019, representing an increase of 3.6% and 1.2% over the prior year period, respectively |
• | Net income of $10.5 million and $31.7 million for the fourth quarter and full year 2019, representing a decrease of 21.4% and 21.8% from the prior year period, respectively |
• | GAAP fully diluted EPS of $0.26 and $0.79 for the fourth quarter and full year 2019, representing a decrease of 22.6% and 23.0% from the prior year period; adjusted fully diluted EPS of $0.34 and $1.17 for the fourth quarter and full year 2019, representing an increase of 19.0% and 3.5% over the prior year period, respectively |
• | Net cash provided by operating activities was $22.4 million and $80.4 million for the fourth quarter and full year 2019. Free cash flow of $17.7 million and $58.3 million for the fourth quarter and full year 2019, representing an increase of 77.9% and 42.0% over the prior year period, respectively |
• | The Company provides first quarter and full year 2020 revenue and adjusted fully diluted earnings per share guidance |
Guidance Issued February 25, 2020 | ||
Q1 FY 2020 Revenue Growth | 2.9% - 5.2% | |
Q1 FY 2020 Revenue | $89 million - $91 million | |
Q1 FY 2020 Adjusted Fully Diluted EPS | $0.25 - $0.27 | |
Guidance Issued February 25, 2020 | ||
FY 2020 Revenue Growth | 10.6% - 12.3% | |
FY 2020 Revenue | $384 million - $390 million | |
FY 2020 Adjusted Fully Diluted EPS | $1.34 - $1.40 |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenues | $ | 89,346 | $ | 86,271 | $ | 347,337 | $ | 343,374 | ||||||||
Cost of goods sold | 44,781 | 42,426 | 172,526 | 168,489 | ||||||||||||
Gross profit | 44,565 | 43,845 | 174,811 | 174,885 | ||||||||||||
Operating expenses | ||||||||||||||||
Sales and marketing | 10,392 | 9,911 | 41,888 | 43,159 | ||||||||||||
General and administrative | 17,301 | 12,440 | 61,244 | 50,167 | ||||||||||||
Research and development | 4,434 | 4,551 | 20,018 | 17,071 | ||||||||||||
Total operating expenses | 32,127 | 26,902 | 123,150 | 110,397 | ||||||||||||
Operating income | 12,438 | 16,943 | 51,661 | 64,488 | ||||||||||||
Interest expense | 2,126 | 4,611 | 13,617 | 17,405 | ||||||||||||
Loss on extinguishment of debt | — | — | 3,196 | — | ||||||||||||
Other expense (income) | 7,916 | (410 | ) | 6,221 | (2,465 | ) | ||||||||||
Income before income taxes | 2,396 | 12,742 | 28,627 | 49,548 | ||||||||||||
Income tax (benefit) expense | (8,054 | ) | (551 | ) | (3,040 | ) | 9,030 | |||||||||
Net income | $ | 10,450 | $ | 13,293 | $ | 31,667 | $ | 40,518 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.27 | $ | 0.35 | $ | 0.81 | $ | 1.06 | ||||||||
Diluted | $ | 0.26 | $ | 0.34 | $ | 0.79 | $ | 1.03 | ||||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 39,246 | 38,465 | 38,988 | 38,233 | ||||||||||||
Diluted | 40,133 | 39,492 | 40,113 | 39,501 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
United States | |||||||||||||||||||||
DEFINITY | $ | 57,678 | $ | 47,359 | 21.8 | % | $ | 211,777 | $ | 178,440 | 18.7 | % | |||||||||
TechneLite | 17,330 | 17,262 | 0.4 | % | 72,534 | 74,042 | (2.0 | )% | |||||||||||||
Other nuclear | 8,225 | 11,651 | (29.4 | )% | 36,231 | 48,935 | (26.0 | )% | |||||||||||||
Rebates and allowances | (4,518 | ) | (3,521 | ) | 28.3 | % | (16,553 | ) | (12,837 | ) | 28.9 | % | |||||||||
Total United States | 78,715 | 72,751 | 8.2 | % | 303,989 | 288,580 | 5.3 | % | |||||||||||||
International | |||||||||||||||||||||
DEFINITY | 1,695 | 1,206 | 40.5 | % | 5,731 | 4,633 | 23.7 | % | |||||||||||||
TechneLite | 3,264 | 6,105 | (46.5 | )% | 14,058 | 24,816 | (43.4 | )% | |||||||||||||
Other nuclear | 5,673 | 6,211 | (8.7 | )% | 23,574 | 25,349 | (7.0 | )% | |||||||||||||
Rebates and allowances | (1 | ) | (2 | ) | (50.0 | )% | (15 | ) | (4 | ) | 275.0 | % | |||||||||
Total International | 10,631 | 13,520 | (21.4 | )% | 43,348 | 54,794 | (20.9 | )% | |||||||||||||
Worldwide | |||||||||||||||||||||
DEFINITY | 59,373 | 48,565 | 22.3 | % | 217,508 | 183,073 | 18.8 | % | |||||||||||||
TechneLite | 20,594 | 23,367 | (11.9 | )% | 86,592 | 98,858 | (12.4 | )% | |||||||||||||
Other nuclear | 13,898 | 17,862 | (22.2 | )% | 59,805 | 74,284 | (19.5 | )% | |||||||||||||
Rebates and allowances | (4,519 | ) | (3,523 | ) | 28.3 | % | (16,568 | ) | (12,841 | ) | 29.0 | % | |||||||||
Total Revenues | $ | 89,346 | $ | 86,271 | 3.6 | % | $ | 347,337 | $ | 343,374 | 1.2 | % |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income | $ | 10,450 | $ | 13,293 | $ | 31,667 | $ | 40,518 | ||||||||
Stock and incentive plan compensation | 2,991 | 2,481 | 12,571 | 9,496 | ||||||||||||
Amortization of acquired intangible assets | 451 | 581 | 1,804 | 2,648 | ||||||||||||
Campus consolidation costs | — | 3 | — | 1,157 | ||||||||||||
Extinguishment of debt | — | — | 3,196 | — | ||||||||||||
Arbitration award | (3,453 | ) | — | (3,453 | ) | — | ||||||||||
Strategic collaboration and license costs | — | — | 300 | — | ||||||||||||
Integration costs | 1,488 | 1,488 | ||||||||||||||
Acquisition-related costs | 2,834 | — | 8,010 | — | ||||||||||||
Income tax benefit for release of valuation allowances | — | (3,969 | ) | — | (3,969 | ) | ||||||||||
Income tax effect of non-GAAP adjustments(a) | (1,134 | ) | (1,123 | ) | (8,583 | ) | (5,126 | ) | ||||||||
Adjusted net income | $ | 13,627 | $ | 11,266 | $ | 47,000 | $ | 44,724 | ||||||||
Adjusted net income, as a percentage of revenues | 15.3 | % | 13.1 | % | 13.5 | % | 13.0 | % |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income per share - diluted | $ | 0.26 | $ | 0.34 | $ | 0.79 | $ | 1.03 | ||||||||
Stock and incentive plan compensation | 0.07 | 0.06 | 0.31 | 0.24 | ||||||||||||
Amortization of acquired intangible assets | 0.01 | 0.02 | 0.04 | 0.06 | ||||||||||||
Campus consolidation costs | — | — | — | 0.03 | ||||||||||||
Extinguishment of debt | — | — | 0.08 | — | ||||||||||||
Arbitration award | (0.09 | ) | — | (0.09 | ) | |||||||||||
Strategic collaboration and license costs | — | — | 0.01 | — | ||||||||||||
Integration costs | 0.04 | — | 0.04 | — | ||||||||||||
Acquisition-related costs | 0.07 | (0.10 | ) | 0.20 | — | |||||||||||
Income tax benefit for release of valuation allowances | — | — | — | (0.10 | ) | |||||||||||
Income tax effect of non-GAAP adjustments(a) | (0.02 | ) | (0.03 | ) | (0.21 | ) | (0.13 | ) | ||||||||
Adjusted net income per share - diluted | $ | 0.34 | $ | 0.29 | $ | 1.17 | $ | 1.13 | ||||||||
Weighted-average common shares outstanding - diluted | 40,133 | 39,492 | 40,113 | 39,501 |
(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. |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net cash provided by operating activities | $ | 22,421 | $ | 17,306 | $ | 80,384 | $ | 61,193 | |||||||
Capital expenditures | (4,741 | ) | (7,366 | ) | (22,061 | ) | (20,132 | ) | |||||||
Free cash flow | $ | 17,680 | $ | 9,940 | $ | 58,323 | $ | 41,061 |
December 31, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 92,919 | $ | 113,401 | |||
Accounts receivable, net | 43,529 | 43,753 | |||||
Inventory | 29,180 | 33,019 | |||||
Other current assets | 7,283 | 5,242 | |||||
Total current assets | 172,911 | 195,415 | |||||
Property, plant and equipment, net | 116,497 | 107,888 | |||||
Intangibles, net | 7,336 | 9,133 | |||||
Goodwill | 15,714 | 15,714 | |||||
Deferred tax assets, net | 71,834 | 81,449 | |||||
Other long-term assets | 21,627 | 30,232 | |||||
Total assets | $ | 405,919 | $ | 439,831 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities | |||||||
Current portion of long-term debt and other borrowings | $ | 10,143 | $ | 2,750 | |||
Accounts payable | 18,608 | 17,955 | |||||
Accrued expenses and other liabilities | 37,360 | 32,050 | |||||
Total current liabilities | 66,111 | 52,755 | |||||
Asset retirement obligations | 12,883 | 11,572 | |||||
Long-term debt, net and other borrowings | 183,927 | 263,709 | |||||
Other long-term liabilities | 28,397 | 40,793 | |||||
Total liabilities | 291,318 | 368,829 | |||||
Total stockholders’ equity | 114,601 | 71,002 | |||||
Total liabilities and stockholders’ equity | $ | 405,919 | $ | 439,831 |