SOURCE: Lantheus Medical Imaging

Lantheus Medical Imaging

March 04, 2015 16:00 ET

Lantheus Medical Imaging Reports 2014 Fourth Quarter and Full Year Financial Results

Fourth Quarter Worldwide Revenue Increases 7% As-Reported and 9% Constant Currency; Strong DEFINITY® Performance Driven by Continued Market Adoption and Share Gains; Fourth Quarter Adjusted EBITDA Increases 28% to $19.4 Million; Company Posts Full Year Adjusted EBITDA of $70.8 Million

NORTH BILLERICA, MA--(Marketwired - March 04, 2015) - Lantheus Medical Imaging, Inc. ("Lantheus" or "the Company"), a wholly-owned operating subsidiary of parent company Lantheus MI Intermediate, Inc. and a global leader in developing, manufacturing, selling and distributing innovative diagnostic imaging agents, today reported financial results for its fourth quarter and full year ended December 31, 2014.

Worldwide revenue for the fourth quarter of 2014 totaled $77.0 million, representing a 7% increase as-reported and a 9% increase on a constant-currency basis over $71.7 million reported for the fourth quarter of 2013. 

The Company reported quarterly GAAP-earnings profitability during the fourth quarter of 2014 with net income totaling $300,000, an improvement of $12.6 million over a net loss of $12.3 million reported for the fourth quarter of 2013.

Net income for the fourth quarter of 2014 included $1.2 million of non-cash costs associated with the Company's previously-announced campus consolidation initiative. Net loss for the fourth quarter of 2013 included a $15.4 million non-cash charge for the write-down of certain intangibles, an $8.9 million credit for a special recovery from a manufacturer and a $0.4 million gain on a land sale. 

The Company's fourth quarter 2014 net income, as adjusted for the above items, totaled $1.5 million, an improvement of $7.6 million, compared to a net loss of $6.1 million for the fourth quarter of 2013. The attached financial tables include a reconciliation of U.S. GAAP to as-adjusted results.

The Company's fourth quarter Adjusted EBITDA, as defined in the GAAP to non-GAAP reconciliation provided later in this release, was $19.4 million, increasing by 28% from $15.2 million in the same quarter of the prior year. 

Jeff Bailey, President and CEO commented, "We are very pleased with our fourth quarter results and our strong finish to what has been an excellent year for Lantheus. Consistent with the themes we've experienced throughout 2014, our fourth quarter performance reflects continued, solid revenue growth and operating margin expansion, as well as sequential and year-over-year improvement in Adjusted EBITDA. Our strong quarterly sales performance for DEFINITY was driven by our continued success in expanding the appropriate use of contrast in cardiac echo procedures, while also growing our respective market share. With solid U.S. performances from all major product lines, our U.S. revenue growth accelerated to 12% during the fourth quarter, driving our adjusted operating and EBITDA margins to 17% and 25%, respectively."

Mr. Bailey continued, "The improvement in our business fundamentals and operational efficiencies over the last two years is significant and provides a solid foundation as we enter 2015. Looking ahead, we are focused on a number of strategic and tactical objectives intended to further strengthen our business, our operating profile, and our ability to meet and exceed the needs of our customers. We look forward to pursuing these initiatives while creating additional opportunities to further improve our business and financial results."

For the full year of 2014, worldwide revenue totaled $301.6 million, representing a 6% increase on an as-reported and an 8% increase on a constant-currency basis over $283.7 million reported for 2013. On a GAAP basis, the Company reported a net loss of $1.2 million for 2014, an improvement of $60.5 million over the net loss of $61.7 million for 2013. Full year GAAP results included the aforementioned fourth-quarter items and a $6.8 million write-down of land during the third quarter of 2013. Adjusted for those items, the Company achieved positive full year 2014 net income totaling $41,000, compared to a net loss of $48.7 million for 2013. The Company's full year 2014 Adjusted EBITDA totaled $70.8 million, an improvement of $32.4 million over the $38.4 million reported for 2013. The attached financial tables include a reconciliation of U.S. GAAP to as-adjusted results.

Conference Call
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 1-866-578-5771 (U.S. callers) or 1-617-213-8055 (international callers) and provide passcode 92067003. A live audio webcast of the call also will be available on the homepage of the Company's website at www.lantheus.com. A replay of the telephone conference call and audio webcast will be available from approximately 8:30 p.m. ET on March 4, 2015 through midnight on April 1, 2015. To access a replay of the conference call, dial 1-888-286-8010 (U.S. callers) or 1-617-801-6888 (international callers), and provide passcode 55732560. A replay of this conference call will also be available in the Investor Relations section of our website located at www.lantheus.com.

The conference call may 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.

Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, such as net sales excluding the impact of foreign currency, net income, as adjusted, EBITDA and Adjusted EBITDA. 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. Such forward-looking statements are subject to risks and uncertainties that may be described from time to time in the Company's filings with the Securities and Exchange Commission. 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.

About Lantheus Medical Imaging, Inc. and Lantheus MI Intermediate, Inc.
Lantheus Medical Imaging, Inc., a wholly-owned operating subsidiary of parent company, Lantheus MI Intermediate, Inc., is a global leader in developing, manufacturing, selling and distributing innovative diagnostic imaging agents. Lantheus provides a broad portfolio of products, which are primarily used for the diagnosis of cardiovascular diseases. Key products include 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 Xe 133 Gas (Xenon 133), an inhaled radiopharmaceutical imaging agent used to evaluate pulmonary function and for imaging the lungs.

Lantheus has more than 500 employees worldwide with headquarters in North Billerica, Massachusetts, and offices in Puerto Rico, Canada and Australia.

 
Lantheus MI Intermediate, Inc. and subsidiaries
Consolidated Statements of Operations
(dollars in thousands - unaudited)
 
  Three Months Ended
December 31,
  Year Ended
December 31,
  2014   2013   2014   2013
               
Revenues $ 76,969   $ 71,668   $ 301,600   $ 283,672
Cost of goods sold 44,208    61,787    176,081    206,311
  Gross profit 32,761    9,881    125,519    77,361
Operating expenses:                 
 Sales and marketing expenses 7,889    7,961    35,116    35,227
 General and administrative expenses 8,357    7,481    34,921    33,159
 Research and development expenses 4,715    5,031    13,673    30,459
 Impairment of land -    (382)    -    6,406
 Proceeds from manufacturer -    (8,876)    -    (8,876)
  Total operating expenses 20,961    11,215    83,710    96,375
  Operating income (loss) 11,800    (1,334)    41,809    (19,014)
Interest expense, net (10,557)    (10,488)    (42,261)    (42,811)
Other income (expense), net 626    267    478    1,161
 Income (loss) before income taxes 1,869    (11,555)    26    (60,664)
Provision for income taxes 1,569    747    1,195    1,014
Net income (loss) $ 300   $ (12,302)   $ (1,169)   $ (61,678)
                       
 
Lantheus MI Intermediate, Inc. and subsidiaries
Consolidated Sales Analysis
(dollars in thousands - unaudited)
 
    Three Months Ended
December 31,
  Year Ended
December 31,
             
    2014   2013   % change   2014   2013   % change
U.S.                        
DEFINITY    25,080    21,744   15.3%    93,848    76,539   22.6%
TechneLite    20,719    19,544   6.0%    82,321    80,609   2.1%
Xenon    9,023    7,970   13.2%    36,542    32,086   13.9%
Cardiolite    1,353    1,288   5.0%    3,268    8,612   (62.1)%
Other    5,537    4,603   20.3%    20,541    15,793   30.1%
                 
Total U.S.   $ 61,712   $ 55,149   11.9%   $ 236,520   $ 213,639   10.7%
                             
International                            
DEFINITY    545    418   30.4%    1,912    1,555   23.0%
TechneLite    2,691    2,548   5.6%    11,267    11,586   (2.8)%
Xenon    1    5   (80.0)%    7    39   (82.1)%
Cardiolite    3,305    4,110   (19.6)%    15,555    17,525   (11.2)%
Other    8,715    9,438   (7.7)%    36,339    39,328   (7.6)%
                 
Total International   $ 15,257   $ 16,519   (7.6)%   $ 65,080   $ 70,033   (7.1)%
                             
Worldwide                            
DEFINITY    25,625    22,162   15.6%    95,760    78,094   22.6%
TechneLite    23,410    22,092   6.0%    93,588    92,195   1.5%
Xenon    9,024    7,975   13.2%    36,549    32,125   13.8%
Cardiolite    4,658    5,398   (13.7)%    18,823    26,137   (28.0)%
Other    14,252    14,041   1.5%    56,880    55,121   3.2%
                 
Total Revenues   $ 76,969   $ 71,668   7.4%   $ 301,600   $ 283,672   6.3%
                             
 
Lantheus MI Intermediate, Inc. and subsidiaries
Supplemental Sales Information
(unaudited)
 
    December 31, 2014 Quarter-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%   41%   30%   16%   16%
TechneLite   6%   13%   6%   7%   6%
Xenon   13%   (71)%   (80)%   13%   13%
Cardiolite   5%   (14)%   (20)%   (10)%   (14)%
Other   20%   (2)%   (8)%   5%   2%
Total Revenues   12%   (2)%   (8)%   9%   7%
                     
   
    December 31, 2014 Year-to-Date Sales Growth/(Decline)
    Domestic As Reported   Int'l Constant Currency   Int'l As Reported   Total Constant Currency   Total As Reported
Products                    
DEFINITY   23%   31%   23%   23%   23%
TechneLite   2%   3%   (3)%   2%   2%
Xenon   14%   (82)%   (82)%   14%   14%
Cardiolite   (62)%   (7)%   (11)%   (25)%   (28)%
Other   30%   (3)%   (8)%   7%   3%
Total Revenues   11%   (2)%   (7)%   8%   6%
                     
 
Lantheus MI Intermediate, Inc. and subsidiaries
Reconciliation of Net Sales to Net Sales Excluding the Impact of Foreign Currency
(dollars in thousands - unaudited)
 
  Three Months Ended
December 31, 2014
  Year Ended
December, 2014
  International
Net Sales
  Total Net Sales   International
Net Sales
  Total Net Sales
               
Net sales, as reported $ 15,257   $ 76,969   $ 65,080   $ 301,600
Currency impact as compared to prior period 991    991    3,461    3,461
Net sales, excluding the impact of foreign currency $ 16,248   $ 77,960   $ 68,541   $ 305,061
                  
 
Lantheus MI Intermediate, Inc. and subsidiaries
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(dollars in thousands - unaudited)
 
  Three Months Ended
December 31,
  Year Ended
December 31,
  2014   2013   2014   2013
Net Income (loss)              
 Net income (loss), as reported $ 300   $ (12,302)   $ (1,169)   $ (61,678)
  Reconciling items impacting Gross Profit:                 
   Intangible Impairment -    15,440    -    15,440
  Reconciling items impacting Operating Expenses:                 
   Proceeds from Manufacturer -    (8,876)    -    (8,876)
   Campus Consolidation Costs 1,210    -    1,210    -
   Impairment of Land -    (382)    -    6,406
 Net income (loss), as adjusted $ 1,510   $ (6,120)   $ 41   $ (48,708)
                  
 Net income (loss), as adjusted, as a percentage of net sales 2.0%    (8.5)%    0.0%    (17.2)%
           
 
Lantheus MI Intermediate, Inc. and subsidiaries
Reconciliation of As Reported Results to Non-GAAP Financial Measures
(dollars in thousands - unaudited)
 
  Three Months Ended
December 31,
  Year Ended
December 31,
  2014   2013   2014   2013*
EBITDA              
 Net income (loss), as reported $ 300   $ (12,302)   $ (1,169)   $ (61,678)
  Interest expense, net 10,557    10,488    42,261    42,811
  Provision (benefit) for income taxes 977    312    441    (127)
  Depreciation 3,387    2,221    9,901    9,336
  Amortization of intangible assets 2,275    3,991    9,123    16,447
 EBITDA 17,496    4,710    60,557    6,789
 Reconciling items impacting EBITDA:                 
  Non-cash stock-based compensation 249    (157)    1,031    578
  Legal fees relating to business interruption claim 186    108    1,113    660
  Asset write-off 107    18,091    1,257    28,349
  Severance and recruiting costs 306    270    818    5,239
  Sponsor fee and other 248    260    1,020    1,457
  New manufacturer costs 771    751    4,959    4,164
  Proceeds from manufacturer -    (8,876)    -    (8,876)
Adjusted EBITDA $ 19,363   $ 15,157   $ 70,775   $ 38,360
                  
Adjusted EBITDA as a percentage of net sales 25.2%    21.1%    23.5%    13.5%
                  
* Previously presented as excluding Proceeds from manufacturer as an Adjusted EBITDA reconciling item, resulting in 2013 Adjusted EBITDA of $47,236. Presentation of 2013 Adjusted EBITDA has been modified to allow better go-forward comparability by including Proceeds from manufacturer as an Adjusted EBITDA reconciling item, resulting in 2013 Adjusted EBITDA of $38,360.
 
 
Lantheus MI Intermediate, Inc. and subsidiaries
Reconciliation of Free Cash Flow
(dollars in thousands - unaudited)
 
  Three Months Ended   Year Ended
  December 31, 2014   December 31, 2013   December 31, 2014   December 31, 2013
Net cash provided by (used in) operating activities $ (3,875)   $ (3,856)   $ 11,573   $ (15,678)
Capital expenditures (2,834)    (1,299)    (8,137)    (5,010)
Free cash flow $ (6,709)   $ (5,155)   $ 3,436   $ (20,688)
                  
 
Lantheus MI Intermediate, Inc. and subsidiaries
Condensed Consolidated Balance Sheets
(dollars in thousands - unaudited)
 
 December 31, 2014 December 31, 2013
Assets      
Current assets:      
 Cash and cash equivalents $ 17,817   $ 16,669
 Accounts receivable, net 41,540    38,910
 Inventory 15,582    18,310
 Income tax receivable 247    325
 Deferred tax assets 256    18
 Other current assets 3,739    3,087
  Total current assets 79,181    77,319
        
Property, plant and equipment, net 96,014    97,653
Capitalized software development costs, net 2,421    1,470
Intangibles, net 27,191    34,998
Goodwill 15,714    15,714
Deferred financing costs 7,349    9,639
Deferred tax assets 328    15
Other long-term assets 19,318    22,577
 Total assets $ 247,516   $ 259,385
        
Liabilities and stockholder's deficit       
Current liabilities:       
 Line of credit $ 8,000   $ 8,000
 Accounts payable 15,665    18,103
 Accrued expenses and other liabilities 24,579    25,492
 Deferred tax liability 152    57
 Deferred revenue 132    3,979
  Total current liabilities 48,528    55,631
Asset retirement obligation 7,435    6,385
Long-term debt, net 399,280    399,037
Deferred tax liability 247    12
Other long-term liabilities 32,995    35,408
 Total liabilities 488,485    496,473
        
Stockholder's deficit (240,969)    (237,088)
 Total liabilities and stockholder's deficit $ 247,516   $ 259,385
       

Contact Information

  • CONTACTS:

    Linda Lennox 
    Office: 978-671-8854 
    Cell: 908-627-3424 

    Meara Murphy
    Office: 978-671-8508
    Cell: 617-794-1045