Lantheus Reports Third Quarter 2023 Financial Results
- Worldwide revenue of
$319.9 million for the third quarter 2023, representing an increase of 33.7% from the prior year period - GAAP net income of
$132.0 million for the third quarter 2023, compared to GAAP net income of$61.2 million in the prior year period - GAAP fully diluted net income per share of
$1.88 for the third quarter 2023, compared to GAAP fully diluted net income per share of$0.86 in the prior year period; adjusted fully diluted net income per share of$1.47 for the third quarter 2023, compared to adjusted fully diluted net income per share of$0.99 in the prior year period - Net cash provided by operating activities was
$116.7 million for the third quarter 2023. Free cash flow was$102.1 million in the third quarter 2023 - The Company updates full year 2023 revenue and adjusted diluted earnings per share guidance
The Company’s worldwide revenue for the third quarter of 2023 totaled
The Company’s third quarter 2023 GAAP net income was
The Company’s third quarter 2023 adjusted fully diluted net income per share, or earnings per share (“EPS”), was
Lastly, net cash provided by operating activities was
“We made meaningful progress during the quarter with PYLARIFY® and DEFINITY® in our commercial portfolio, and with PNT2002 and MK-6240 in our pipeline,” said
The Company updates its guidance for full year 2023 as follows:
| Guidance Issued |
Previous Guidance Issued |
|||
| FY 2023 Revenue | ||||
| FY 2023 Adjusted Fully Diluted EPS | ||||
On a forward-looking basis, the Company does not provide GAAP income per common share guidance or a reconciliation of adjusted fully diluted EPS to GAAP income per common share because the Company is unable to predict with reasonable certainty business development and acquisition related expenses, purchase accounting fair value adjustments, and any one-time, non-recurring charges. These items are uncertain, depend on various factors, and could be material to results computed in accordance with GAAP. As a result, it is the Company’s view that a quantitative reconciliation of adjusted fully diluted EPS on a forward-looking basis is not available without unreasonable effort.
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 and webcast on
A replay will be available approximately two hours after completion of the webcast and will be archived on the same web page for at least 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
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
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, such as adjusted net income and its line components; adjusted net income per share - fully 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. However, these measures may exclude items that may be highly variable, difficult to predict and of a size that could have a substantial impact on the Company’s reported results of operations for a particular 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 within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by their use of terms such as “anticipate,” “believe,” “confident,” “continue,” “could,” “estimate,” “expect,” “guidance,” “intend,” “introduce,” “may,” “momentum,” “plan,” “potential,” “predict,” “progress,” “project,” “promising,” “should,” “target,” “will,” “would” and other similar terms. Such forward-looking statements include our guidance for fiscal year 2023 and are based upon current plans, estimates and expectations that are subject to risks and uncertainties that could cause actual results to materially differ from those described in the forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation that such plans, estimates and expectations will be achieved. 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 include: (i) continued market expansion and penetration for our established commercial products, particularly PYLARIFY and DEFINITY, in a competitive environment in which other imaging agents have been approved and are being commercialized, and our ability to clinically and commercially differentiate our products from other products; (ii) our ability to have third parties manufacture our products and our ability to manufacture DEFINITY in our in-house manufacturing facility; (iii) the global availability of Molybdenum-99 (“Mo-99”) and other raw material and key components; (iv) the efforts and timing for clinical development, regulatory approval and successful commercialization of our product candidates and new clinical applications and territories for our products, in each case, that we or our strategic partners may undertake; (v) our strategies, future prospects, and our projected growth, including revenue related to our collaboration agreements with POINT Biopharma Global Inc.; (vi) our ability to successfully continue existing clinical development partnerships using MK-6240 as a research tool and to further develop and commercialize such research tool; (vii) our ability to identify and acquire or in-license additional diagnostic and therapeutic product opportunities in oncology and other strategic areas and continue to grow our pipeline of products; and (viii) the risk and uncertainties discussed in our filings with the
- Tables Follow -
Consolidated Statements of Operations
(in thousands, except per share data – unaudited)
| Three Months Ended |
Nine Months Ended |
|||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||
| Revenues | $ | 319,946 | $ | 239,292 | $ | 942,430 | $ | 671,895 | ||||||
| Cost of goods sold | 119,995 | 91,859 | 462,756 | 257,363 | ||||||||||
| Gross profit | 199,951 | 147,433 | 479,674 | 414,532 | ||||||||||
| Operating expenses | ||||||||||||||
| Sales and marketing | 37,399 | 25,414 | 106,472 | 73,260 | ||||||||||
| General and administrative | 35,741 | 23,759 | 85,163 | 93,945 | ||||||||||
| Research and development | 14,450 | 12,517 | 60,883 | 39,455 | ||||||||||
| Total operating expenses | 87,590 | 61,690 | 252,518 | 206,660 | ||||||||||
| Operating income | 112,361 | 85,743 | 227,156 | 207,872 | ||||||||||
| Interest expense | 5,054 | 1,626 | 14,978 | 4,604 | ||||||||||
| Other (income) expense (a) | (52,649 | ) | 1,101 | (60,362 | ) | 306 | ||||||||
| Income before income taxes | 159,956 | 83,016 | 272,540 | 202,962 | ||||||||||
| Income tax expense | 27,999 | 21,784 | 49,259 | 55,710 | ||||||||||
| Net income | $ | 131,957 | $ | 61,232 | $ | 223,281 | $ | 147,252 | ||||||
| Net income per common share: | ||||||||||||||
| Basic | $ | 1.93 | $ | 0.89 | $ | 3.27 | $ | 2.15 | ||||||
| Diluted | $ | 1.88 | $ | 0.86 | $ | 3.18 | $ | 2.08 | ||||||
| Weighted-average common shares outstanding: | ||||||||||||||
| Basic | 68,436 | 68,756 | 68,188 | 68,482 | ||||||||||
| Diluted | 70,046 | 71,075 | 70,268 | 70,669 | ||||||||||
(a) Includes the gain on sale of RELISTOR licensed intangible asset associated with net sales royalties of
Consolidated Revenues Analysis
(in thousands – unaudited)
| Three Months Ended |
Nine Months Ended |
|||||||||||||||||
| 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||
| PYLARIFY | $ | 215,428 | $ | 143,754 | 49.9 | % | $ | 621,419 | $ | 366,763 | 69.4 | % | ||||||
| Other radiopharmaceutical oncology | 848 | 928 | (8.6)% | 2,383 | 3,183 | (25.1)% | ||||||||||||
| Total radiopharmaceutical oncology | 216,276 | 144,682 | 49.5 | % | 623,802 | 369,946 | 68.6 | % | ||||||||||
| DEFINITY | 67,336 | 60,740 | 10.9 | % | 206,688 | 181,374 | 14.0 | % | ||||||||||
| TechneLite | 23,272 | 22,094 | 5.3 | % | 65,853 | 64,139 | 2.7 | % | ||||||||||
| Other precision diagnostics | 5,740 | 6,175 | (7.0)% | 17,002 | 16,803 | 1.2 | % | |||||||||||
| Total precision diagnostics | 96,348 | 89,009 | 8.2 | % | 289,543 | 262,316 | 10.4 | % | ||||||||||
| Strategic partnerships and other revenue | 7,322 | 5,601 | 30.7 | % | 29,085 | 39,633 | (26.6)% | |||||||||||
| Total revenues | $ | 319,946 | $ | 239,292 | 33.7 | % | $ | 942,430 | $ | 671,895 | 40.3 | % | ||||||
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except per share data – unaudited)
| Three Months Ended |
Nine Months Ended |
|||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net income | $ | 131,957 | $ | 61,232 | $ | 223,281 | $ | 147,252 | ||||||||
| Stock and incentive plan compensation | 13,976 | 8,103 | 36,335 | 21,138 | ||||||||||||
| Amortization of acquired intangible assets | 11,659 | 8,306 | 35,132 | 24,918 | ||||||||||||
| Campus consolidation costs | 45 | — | 3,185 | — | ||||||||||||
| Contingent consideration fair value adjustments | (500 | ) | (1,500 | ) | (9,475 | ) | 25,400 | |||||||||
| Non-recurring refinancing related fees | 3 | — | 216 | — | ||||||||||||
| Non-recurring fees (a) | (51,789 | ) | — | (54,523 | ) | (384 | ) | |||||||||
| Strategic collaboration and license costs | — | — | — | 500 | ||||||||||||
| Acquisition-related costs | 169 | 169 | 507 | 868 | ||||||||||||
| Impairment of long-lived assets | — | — | 138,050 | — | ||||||||||||
| ARO Acceleration and other related costs | 320 | 1,287 | 1,045 | 3,087 | ||||||||||||
| Other | 1,510 | 106 | 2,194 | 111 | ||||||||||||
| Income tax effect of non-GAAP adjustments (b) | (4,256 | ) | (7,038 | ) | (61,093 | ) | (21,512 | ) | ||||||||
| Adjusted net income | $ | 103,094 | $ | 70,665 | $ | 314,854 | $ | 201,378 | ||||||||
| Adjusted net income, as a percentage of revenues | 32.2 | % | 29.5 | % | 33.4 | % | 30.0 | % | ||||||||
| Three Months Ended |
Nine Months Ended |
|||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net income per share - diluted | $ | 1.88 | $ | 0.86 | $ | 3.18 | $ | 2.08 | ||||||||
| Stock and incentive plan compensation | 0.20 | 0.11 | 0.52 | 0.30 | ||||||||||||
| Amortization of acquired intangible assets | 0.17 | 0.12 | 0.50 | 0.36 | ||||||||||||
| Campus consolidation costs | — | — | 0.05 | — | ||||||||||||
| Contingent consideration fair value adjustments | (0.01 | ) | (0.02 | ) | (0.13 | ) | 0.36 | |||||||||
| Non-recurring refinancing related fees | — | — | — | — | ||||||||||||
| Non-recurring fees (a) | (0.74 | ) | — | (0.78 | ) | (0.01 | ) | |||||||||
| Strategic collaboration and license costs | — | — | — | 0.01 | ||||||||||||
| Acquisition-related costs | — | — | 0.01 | 0.01 | ||||||||||||
| Impairment of long-lived assets | — | — | 1.96 | — | ||||||||||||
| ARO Acceleration and other related costs | 0.01 | 0.02 | 0.01 | 0.04 | ||||||||||||
| Other | 0.02 | — | 0.03 | — | ||||||||||||
| Income tax effect of non-GAAP adjustments (b) | (0.06 | ) | (0.10 | ) | (0.87 | ) | (0.30 | ) | ||||||||
| Adjusted net income per share - diluted | $ | 1.47 | $ | 0.99 | $ | 4.48 | $ | 2.85 | ||||||||
| Weighted-average common shares outstanding - diluted | 70,046 | 71,075 | 70,268 | 70,669 | ||||||||||||
(a) Includes the gain on sale of RELISTOR licensed intangible asset associated with net sales royalties of
(b) The income tax effect of the adjustments between GAAP net loss 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.
Reconciliation of Free Cash Flow
(in thousands – unaudited)
| Three Months Ended |
Nine Months Ended |
||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net cash provided by operating activities | $ | 116,739 | $ | 93,568 | $ | 192,973 | $ | 176,429 | |||||||
| Capital expenditures | (14,621 | ) | (6,090 | ) | (34,486 | ) | (13,623 | ) | |||||||
| Free cash flow | $ | 102,118 | $ | 87,478 | $ | 158,487 | $ | 162,806 | |||||||
| Net cash provided by (used in) investing activities | $ | 83,218 | $ | (6,090 | ) | $ | 18,008 | $ | (11,823 | ) | |||||
| Net cash provided by (used in) financing activities | $ | 108 | $ | (1,959 | ) | $ | (12,612 | ) | $ | (6,149 | ) | ||||
Condensed Consolidated Balance Sheets
(in thousands – unaudited)
2023 |
2022 |
||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 614,131 | $ | 415,652 | |
| Accounts receivable, net | 259,198 | 213,397 | |||
| Inventory | 56,462 | 35,475 | |||
| Other current assets | 11,485 | 13,092 | |||
| Assets held for sale | 7,159 | — | |||
| Total current assets | 948,435 | 677,616 | |||
| Property, plant and equipment, net | 140,293 | 122,166 | |||
| Intangibles, net | 163,294 | 315,285 | |||
| 61,189 | 61,189 | ||||
| Deferred tax assets, net | 152,189 | 110,647 | |||
| Other long-term assets | 56,210 | 34,355 | |||
| Total assets | $ | 1,521,610 | $ | 1,321,258 | |
| Liabilities and stockholders’ equity | |||||
| Current liabilities | |||||
| Current portion of long-term debt and other borrowings | $ | 703 | $ | 354 | |
| Accounts payable | 37,076 | 20,563 | |||
| Short-term contingent liability | — | 99,700 | |||
| Accrued expenses and other liabilities | 138,823 | 127,084 | |||
| Total current liabilities | 176,602 | 247,701 | |||
| Asset retirement obligations | 22,823 | 22,543 | |||
| Long-term debt, net and other borrowings | 560,576 | 557,712 | |||
| Other long-term liabilities | 62,850 | 46,155 | |||
| Total liabilities | 822,851 | 874,111 | |||
| Total stockholders’ equity | 698,759 | 447,147 | |||
| Total liabilities and stockholders’ equity | $ | 1,521,610 | $ | 1,321,258 | |
Contacts:
Vice President, Investor Relations
978-671-8842
ir@lantheus.com
Senior Director, Corporate Communications
646-975-2533
media@lantheus.com
Source: Lantheus Holdings, Inc.