SOURCE: Lantheus Medical Imaging, Inc.

Lantheus Medical Imaging, Inc.

August 12, 2014 16:00 ET

Lantheus Medical Imaging Reports Results for Second Quarter Ended June, 30 2014

Worldwide Revenues Increase 7% As-Reported and 8% Constant Currency; Adjusted EBITDA Increases to $16.3 Million on Continued Gross Margin Expansion and Operating Expense Leverage

NORTH BILLERICA, MA--(Marketwired - August 12, 2014) - Lantheus Medical Imaging, Inc. ("LMI"), 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 second quarter ended June 30, 2014.

Worldwide revenue totaled $75.6 million during the second quarter ended June 30, 2014, representing a 7% increase over $70.6 million reported during the second quarter of 2013. Excluding the impact of foreign currency, revenue increased 8% during the second quarter.

The Company's second quarter 2014 GAAP net loss totaled $1.6 million, narrowed by $12.9 million from a net loss of $14.5 million in second quarter of 2013, while the Company's Adjusted EBITDA increased by $9.8 million, to $16.3 million for the second quarter of 2014 from $6.5 million in the second quarter of 2013. The attached financial tables include a reconciliation of U.S. GAAP to non-GAAP results.

Jeffrey Bailey, President and CEO said, "We have been undertaking a financial and operational transformation of our business over the past six quarters, and our success to date is quite evident with the financial results of our second quarter. Our 8% constant currency revenue growth, accompanied by significant gross margin expansion and operating expense reduction, combined to expand our Adjusted EBITDA by 149% from year-ago levels, and has elevated our business to a meaningfully greater level of financial performance in a relatively short period of time."

Mr. Bailey continued, "We continue to be pleased by the momentum of our business. Sequentially, our second quarter 2014 revenue and Adjusted EBITDA results exceeded those of our first quarter, the result of accelerated revenue growth in combination with continued operating leverage. During the second quarter, DEFINITY revenues once again grew sequentially, the result of continued growth of the U.S. ultrasound contrast market and the execution of our dedicated sales force. Looking ahead, the dynamics of our markets, the initiatives that we are targeting and the capabilities of our team combine to create exciting opportunities for our business during the remainder of 2014 and beyond."

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 1-866-510-0712 (U.S. callers) or 1-617-597-5380 (international callers) and provide passcode 37835042. 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 6:30 p.m. ET on August 12, 2014 through midnight on August 25, 2014. 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 62046667. A replay of this conference call will also be available via for at least 90 days 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, 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. ("LMI"), 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. LMI provides a broad portfolio of products, which are primarily used for the diagnosis of cardiovascular diseases. LMI's 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 (Xenon Xe 133 Gas), 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 
Condensed Consolidated Statements of Operations 
(dollars in thousands - unaudited) 
  
  Three Months Ended  Six Months Ended 
  June 30,  June 30, 
  2014  2013  2014  2013 
                 
Revenues $75,613  $70,601  $148,949  $141,619 
Cost of goods sold  44,554   49,654   87,829   97,860 
  Gross profit  31,059   20,947   61,120   43,759 
Operating expenses:                
 Sales and marketing expenses  9,402   8,993   18,900   18,790 
 General and administrative expenses  8,990   8,293   17,842   18,546 
 Research and development expenses  2,687   7,537   5,909   19,535 
  Total operating expenses  21,079   24,823   42,651   56,871 
  Operating income (loss)  9,980   (3,876)  18,469   (13,112)
Interest expense, net  (10,567)  (10,619)  (21,119)  (21,288)
Other (expense) income, net  (175)  (87)  (589)  634 
 Loss before income taxes  (762)  (14,582)  (3,239)  (33,766)
Provision (benefit) for income taxes  874   (82)  (318)  546 
Net loss $(1,636) $(14,500) $(2,921) $(34,312)
                 
                 
                 
Lantheus MI Intermediate, Inc. and subsidiaries
 Consolidated Sales Analysis
 (dollars in thousands - unaudited)
 
   Three Months Ended   Six Months Ended  
  June 30,  June 30, 
   2014  2013  % change   2014  2013  % change  
U.S.                         
DEFINITY   23,019   18,291  25.8 %  45,003   35,037  28.4 %
TechneLite   20,624   22,140  (6.8 )%  40,723   41,712  (2.4 )%
Xenon   8,899   7,638  16.5 %  18,605   15,945  16.7 %
Cardiolite   506   432  17.1 %  1,027   6,862  (85.0 )%
Other   5,520   3,730  48.0 %  10,021   6,930  44.6 %
Total U.S.  $58,568  $52,231  12.1 % $115,379  $106,486  8.4 %
                          
International                         
DEFINITY   497   451  10.2 %  871   734  18.7 %
TechneLite   2,901   3,114  (6.8 )%  5,843   5,968  (2.1 )%
Xenon   -   9  (100 )%  4   25  (84.0 )%
Cardiolite   4,306   4,756  (9.5 )%  8,465   9,236  (8.3 )%
Other   9,341   10,040  (7.0 )%  18,387   19,170  (4.1 )%
Total International  $17,045  $18,370  (7.2 )% $33,570  $35,133  (4.4 )%
                          
Worldwide                         
DEFINITY   23,516   18,742  25.5 %  45,874   35,771  28.2 %
TechneLite   23,525   25,254  (6.8 )%  46,566   47,680  (2.3 )%
Xenon   8,899   7,647  16.4 %  18,609   15,970  16.5 %
Cardiolite   4,812   5,188  (7.2 )%  9,492   16,098  (41.0 )%
Other   14,861   13,770  7.9 %  28,408   26,100  8.8 %
Total Revenues  $75,613  $70,601  7.1 % $148,949  $141,619  5.2 %
                          
                   
                   
Lantheus MI Intermediate, Inc. and subsidiaries
 Supplemental Sales Information
 (unaudited)
 
   June 30, 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  26%  18%  10%  26%  25%
TechneLite  (7)%  (1)%  (7)%  (6)%  (7)%
Xenon  17%  (100)%  (100)%  16%  16%
Cardiolite  17%  (5)%  (9)%  (3)%  (7)%
Other  48%  (3)%  (7)%  11%  8%
Total Revenues  12%  (3)%  (7)%  8%  7%
                
    
   June 30, 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  28%  29%  19%  28%  28%
TechneLite  (2)%  5%  (2)%  (1)%  (2)%
Xenon  17%  (84)%  (84)%  17%  17%
Cardiolite  (85)%  (3)%  (8)%  (38)%  (41)%
Other  45%  2%  (4)%  13%  9%
Total Revenues  8%  2%  (4)%  7%  5%
                
 
 
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  Six Months Ended
  June 30, 2014 June 30, 2014
   International Net Sales  Total Net Sales  International Net Sales  Total Net Sales
                 
Net sales, as reported  $17,045  $75,613  $33,570  $148,949
Currency impact as compared to prior period   822   822   2,139   2,139
Net sales, excluding the impact of foreign currency  $17,867  $76,435  $35,709  $151,088
                 
 
 
Lantheus MI Intermediate, Inc. and subsidiaries 
Reconciliation of As Reported Results to Non-GAAP Financial Measures
 (dollars in thousands - unaudited)
 
   Three Months Ended   Six Months Ended  
  June 30,  June 30, 
   2014   2013   2014   2013  
EBITDA                     
 Net loss, as reported  $(1,636 ) $(14,500 ) $(2,921 ) $(34,312 )
  Interest expense, net   10,567    10,619    21,119    21,288  
  Provision (benefit) for income taxes   896    85    (121 )  274  
  Depreciation   2,137    2,370    4,351    4,772  
  Amortization of intangible assets   2,271    4,160    4,573    8,326  
 EBITDA   14,235    2,734    27,001    348  
 Reconciling items impacting EBITDA:                     
  Non-cash stock-based compensation   251    306    535    563  
  Legal fees relating to business interruption claim   231    119    465    387  
  Asset write-off   91    958    511    2,058  
  Severance and recruiting costs   216    400    301    4,491  
  Sponsor fee and other   258    681    509    938  
  New manufacturer costs   1,035    1,347    3,013    2,510  
Adjusted EBITDA  $16,317   $6,545   $32,335   $11,295  
                      
Adjusted EBITDA as a percentage of net sales   21.6 %  9.3 %  21.7 %  8.0 %
 
 
 
Lantheus MI Intermediate, Inc. and subsidiaries
 Reconciliation of Free Cash Flow
 (dollars in thousands - unaudited)
 
   Three Months Ended   Six Months Ended  
   June 30, 2014   June 30, 2013   June 30, 2014   June 30, 2013  
                      
Net cash used in operating activities  $(4,225 ) $(15,963 ) $(4,240 ) $(16,113 )
Capital expenditures   (1,998 )  (1,347 )  (3,480 )  (2,796 )
Free cash flow  $(6,223 ) $(17,310 ) $(7,720 ) $(18,909 )
                      
 
 
Lantheus MI Intermediate, Inc. and subsidiaries
 Condensed Consolidated Balance Sheets
 (dollars in thousands - unaudited)
 
   June 30, 2014   December 31, 2013  
Assets           
Current assets:           
 Cash and cash equivalents  $14,100   $16,669  
 Accounts receivable, net   42,536    38,910  
 Inventory   16,301    18,310  
 Income tax receivable   596    325  
 Deferred tax assets   13    18  
 Other current assets   4,525    3,087  
  Total current assets   78,071    77,319  
            
Property, plant and equipment, net   96,381    97,653  
Capitalized software development costs, net   1,866    1,470  
Intangibles, net   31,192    34,998  
Goodwill   15,714    15,714  
Deferred financing costs   8,549    9,639  
Deferred tax assets   37    15  
Other long-term assets   19,769    22,577  
 Total assets  $251,579   $259,385  
            
Liabilities and stockholder's deficit           
Current liabilities:           
 Line of credit  $13,500   $8,000  
 Accounts payable   13,987    18,103  
 Accrued expenses and other liabilities   23,891    25,492  
 Deferred tax liability   61    57  
 Deferred revenue   2,175    3,979  
  Total current liabilities   53,614    55,631  
Asset retirement obligation   7,052    6,385  
Long-term debt, net   399,159    399,037  
Deferred tax liability   8    12  
Other long-term liabilities   32,607    35,408  
 Total liabilities   492,440    496,473  
            
Stockholder's deficit   (240,861 )  (237,088 )
 Total liabilities and stockholder's deficit  $251,579   $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