Lantheus Holdings, Inc. (the Company) (NASDAQ: LNTH), a company
committed to improving patient outcomes through diagnostics,
radiotherapeutics and artificial intelligence solutions that enable
clinicians to Find, Fight and Follow disease, today reported
financial results for its second quarter ended June 30, 2023.
The Company’s worldwide revenue for the second quarter of 2023
totaled $321.7 million, compared with $223.7 million for the second
quarter of 2022, representing an increase of 43.8% over the prior
year period.
The Company’s second quarter 2023 GAAP net income was $94.1
million, or $1.33 per fully diluted share, as compared to GAAP net
income of $43.1 million, or $0.61 per fully diluted share for the
second quarter of 2022.
The Company’s second quarter 2023 adjusted fully diluted net
income per share, or earnings per share (“EPS”), was $1.54, as
compared to $0.89 for the second quarter of 2022, representing an
increase of approximately $0.66 from the prior year period.
Lastly, net cash used in operating activities was $32.3 million
for the second quarter 2023. Free Cash Flow was $(43.0) million in
the second quarter of 2023, representing a decrease of
approximately $111.2 million from the prior year period.
“We are excited to announce solid quarterly earnings driven by
the continued uptake of PSMA PET with PYLARIFY® and sustained
growth of DEFINITY®. Our commitment to innovation and excellence
enabled us to impact the lives of over three million patients in
the first half of this year,” said Mary Anne Heino, Chief Executive
Officer of Lantheus. “We look forward to sustaining growth in the
second half of the year, advancing our radiopharmaceutical
pipeline, and continuing to Find, Fight and Follow disease to
deliver better patient outcomes.”
The Company updates its guidance for full year 2023 and offers
the following guidance for the third quarter:
|
|
Guidance Issued August 3, 2023 |
|
Previous Guidance Issued May 4, 2023 |
Q3
FY 2023 Revenue |
|
$310 million - $315 million |
|
N/A |
Q3 FY 2023 Adjusted Fully Diluted
EPS |
|
$1.30 - $1.35 |
|
N/A |
|
|
Guidance Updated August 3, 2023 |
|
FY Guidance Issued May 4, 2023 |
FY 2023 Revenue |
|
$1.245 billion - $1.27 billion |
|
$1.23 billion - $1.27 billion |
FY 2023 Adjusted Fully Diluted
EPS |
|
$5.60 - $5.70 |
|
$5.45 - $5.70 |
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 Thursday, August 3, 2023, at 8:00 a.m. ET. To access
the conference call or webcast, participants should register online
at
https://investor.lantheus.com/news-events/calendar-of-events.
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 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.
With more than 65 years of experience in delivering
life-changing science, Lantheus is committed to improving patient
outcomes through diagnostics, radiotherapeutics and artificial
intelligence solutions that enable clinicians to Find, Fight and
Follow disease. Lantheus is headquartered in Massachusetts and has
offices in New Jersey, Canada and Sweden. For more information,
visit www.lantheus.com.
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,” “predict,” “progress,” “project,” “promising,”
“should,” “target,” “will,” “would” and other similar terms. Such
forward-looking statements 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 (viii) the risk and uncertainties 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).
- Tables Follow -
Lantheus Holdings, Inc.
Consolidated Statements of
Operations
(in thousands, except per share data –
unaudited)
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
|
$ |
321,700 |
|
|
$ |
223,723 |
|
|
$ |
622,484 |
|
|
$ |
432,603 |
|
Cost of goods sold |
|
|
119,053 |
|
|
|
85,694 |
|
|
|
342,761 |
|
|
|
165,504 |
|
Gross profit |
|
|
202,647 |
|
|
|
138,029 |
|
|
|
279,723 |
|
|
|
267,099 |
|
Operating expenses |
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
36,456 |
|
|
|
27,492 |
|
|
|
69,073 |
|
|
|
47,846 |
|
General and administrative |
|
|
26,151 |
|
|
|
32,598 |
|
|
|
49,422 |
|
|
|
70,186 |
|
Research and development |
|
|
15,901 |
|
|
|
14,735 |
|
|
|
46,433 |
|
|
|
26,938 |
|
Total operating expenses |
|
|
78,508 |
|
|
|
74,825 |
|
|
|
164,928 |
|
|
|
144,970 |
|
Operating income |
|
|
124,139 |
|
|
|
63,204 |
|
|
|
114,795 |
|
|
|
122,129 |
|
Interest expense |
|
|
4,933 |
|
|
|
1,469 |
|
|
|
9,924 |
|
|
|
2,978 |
|
Other income |
|
|
(4,482 |
) |
|
|
(310 |
) |
|
|
(7,713 |
) |
|
|
(795 |
) |
Income before income taxes |
|
|
123,688 |
|
|
|
62,045 |
|
|
|
112,584 |
|
|
|
119,946 |
|
Income tax expense |
|
|
29,557 |
|
|
|
18,987 |
|
|
|
21,260 |
|
|
|
33,926 |
|
Net income |
|
$ |
94,131 |
|
|
$ |
43,058 |
|
|
$ |
91,324 |
|
|
$ |
86,020 |
|
Net income per common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.38 |
|
|
$ |
0.63 |
|
|
$ |
1.34 |
|
|
$ |
1.26 |
|
Diluted |
|
$ |
1.33 |
|
|
$ |
0.61 |
|
|
$ |
1.31 |
|
|
$ |
1.22 |
|
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
68,371 |
|
|
|
68,674 |
|
|
|
68,062 |
|
|
|
68,343 |
|
Diluted |
|
|
71,014 |
|
|
|
70,796 |
|
|
|
69,957 |
|
|
|
70,412 |
|
Lantheus Holdings, Inc.
Consolidated Revenues
Analysis
(in thousands – unaudited)
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
|
2023 |
|
2022 |
% Change |
|
|
2023 |
|
2022 |
% Change |
PYLARIFY |
|
$ |
210,522 |
|
$ |
130,232 |
|
61.7 |
% |
|
$ |
405,992 |
|
$ |
223,009 |
|
82.1 |
% |
Other radiopharmaceutical oncology |
|
|
818 |
|
|
928 |
|
(11.9)% |
|
|
1,535 |
|
|
2,255 |
|
(31.9)% |
Total radiopharmaceutical
oncology |
|
|
211,340 |
|
|
131,160 |
|
61.1 |
% |
|
|
407,527 |
|
|
225,264 |
|
80.9 |
% |
DEFINITY |
|
|
70,529 |
|
|
62,306 |
|
13.2 |
% |
|
|
139,353 |
|
|
120,634 |
|
15.5 |
% |
TechneLite |
|
|
21,594 |
|
|
19,440 |
|
11.1 |
% |
|
|
42,580 |
|
|
42,045 |
|
1.3 |
% |
Other precision diagnostics |
|
|
5,454 |
|
|
5,363 |
|
1.7 |
% |
|
|
11,261 |
|
|
10,628 |
|
6.0 |
% |
Total precision diagnostics |
|
|
97,577 |
|
|
87,109 |
|
12.0 |
% |
|
|
193,194 |
|
|
173,307 |
|
11.5 |
% |
Strategic partnerships and other
revenue |
|
|
12,783 |
|
|
5,454 |
|
134.4 |
% |
|
|
21,763 |
|
|
34,032 |
|
(36.1)% |
Total revenues |
|
$ |
321,700 |
|
$ |
223,723 |
|
43.8 |
% |
|
$ |
622,484 |
|
$ |
432,603 |
|
43.9 |
% |
Lantheus Holdings, Inc.
Reconciliation of GAAP to Non-GAAP
Financial Measures
(in thousands, except per share data –
unaudited)
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
|
$ |
94,131 |
|
|
$ |
43,058 |
|
|
$ |
91,324 |
|
|
$ |
86,020 |
|
Stock and incentive plan compensation |
|
|
12,692 |
|
|
|
7,412 |
|
|
|
22,359 |
|
|
|
13,035 |
|
Amortization of acquired intangible assets |
|
|
12,374 |
|
|
|
8,306 |
|
|
|
23,473 |
|
|
|
16,612 |
|
Campus consolidation costs |
|
|
1,681 |
|
|
|
— |
|
|
|
3,140 |
|
|
|
— |
|
Contingent consideration fair value adjustments |
|
|
(7,575 |
) |
|
|
8,500 |
|
|
|
(8,975 |
) |
|
|
26,900 |
|
Non-recurring refinancing related fees |
|
|
(48 |
) |
|
|
— |
|
|
|
213 |
|
|
|
— |
|
Non-recurring fees |
|
|
— |
|
|
|
348 |
|
|
|
(2,734 |
) |
|
|
(384 |
) |
Strategic collaboration and license costs |
|
|
— |
|
|
|
500 |
|
|
|
— |
|
|
|
500 |
|
Acquisition-related costs |
|
|
169 |
|
|
|
252 |
|
|
|
338 |
|
|
|
699 |
|
Impairment of long-lived assets |
|
|
5,998 |
|
|
|
— |
|
|
|
138,050 |
|
|
|
— |
|
ARO Acceleration and other related costs |
|
|
577 |
|
|
|
209 |
|
|
|
725 |
|
|
|
1,800 |
|
Other |
|
|
59 |
|
|
|
(124 |
) |
|
|
684 |
|
|
|
5 |
|
Income tax effect of non-GAAP adjustments(a) |
|
|
(10,461 |
) |
|
|
(5,578 |
) |
|
|
(56,837 |
) |
|
|
(14,474 |
) |
Adjusted net income |
|
$ |
109,597 |
|
|
$ |
62,883 |
|
|
$ |
211,760 |
|
|
$ |
130,713 |
|
Adjusted net income, as a
percentage of revenues |
|
|
34.1 |
% |
|
|
28.1 |
% |
|
|
34.0 |
% |
|
|
30.2 |
% |
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income per share -
diluted |
|
$ |
1.33 |
|
|
$ |
0.61 |
|
|
$ |
1.31 |
|
|
$ |
1.22 |
|
Stock and incentive plan compensation |
|
|
0.18 |
|
|
|
0.10 |
|
|
|
0.32 |
|
|
|
0.19 |
|
Amortization of acquired intangible assets |
|
|
0.17 |
|
|
|
0.12 |
|
|
|
0.34 |
|
|
|
0.24 |
|
Campus consolidation costs |
|
|
0.02 |
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
Contingent consideration fair value adjustments |
|
|
(0.11 |
) |
|
|
0.13 |
|
|
|
(0.13 |
) |
|
|
0.38 |
|
Non-recurring refinancing related fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-recurring fees |
|
|
— |
|
|
|
— |
|
|
|
(0.04 |
) |
|
|
(0.01 |
) |
Strategic collaboration and license costs |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
Acquisition-related costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Impairment of long-lived assets |
|
|
0.08 |
|
|
|
— |
|
|
|
1.97 |
|
|
|
— |
|
ARO Acceleration and other related costs |
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.03 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
Income tax effect of non-GAAP adjustments(a) |
|
|
(0.15 |
) |
|
|
(0.09 |
) |
|
|
(0.81 |
) |
|
|
(0.21 |
) |
Adjusted net income per share
- diluted |
|
$ |
1.54 |
|
|
$ |
0.89 |
|
|
$ |
3.03 |
|
|
$ |
1.86 |
|
Weighted-average common shares
outstanding - diluted |
|
|
71,014 |
|
|
|
70,796 |
|
|
|
69,957 |
|
|
|
70,412 |
|
(a) 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.
Lantheus Holdings, Inc.
Reconciliation of Free Cash
Flow
(in thousands – unaudited)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash (used in) provided by
operating activities |
$ |
(32,266 |
) |
|
$ |
72,597 |
|
|
$ |
76,234 |
|
|
$ |
82,861 |
|
Capital expenditures |
|
(10,697 |
) |
|
|
(4,343 |
) |
|
|
(19,865 |
) |
|
|
(7,533 |
) |
Free cash flow |
$ |
(42,963 |
) |
|
$ |
68,254 |
|
|
$ |
56,369 |
|
|
$ |
75,328 |
|
|
|
|
|
|
|
|
|
Net cash used in investing
activities |
$ |
(20,697 |
) |
|
$ |
(4,343 |
) |
|
$ |
(65,210 |
) |
|
$ |
(5,733 |
) |
Net cash used in financing
activities |
$ |
(4,051 |
) |
|
$ |
(2,011 |
) |
|
$ |
(12,720 |
) |
|
$ |
(4,190 |
) |
Lantheus Holdings, Inc.
Condensed Consolidated Balance
Sheets
(in thousands – unaudited)
|
June 30,2023 |
|
December 31,2022 |
Assets |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
414,076 |
|
$ |
415,652 |
Accounts receivable, net |
|
256,277 |
|
|
213,397 |
Inventory |
|
51,801 |
|
|
35,475 |
Other current assets |
|
22,906 |
|
|
13,092 |
Assets held for sale |
|
7,159 |
|
|
— |
Total current assets |
|
752,219 |
|
|
677,616 |
Property, plant and
equipment, net |
|
129,981 |
|
|
122,166 |
Intangibles, net |
|
221,004 |
|
|
315,285 |
Goodwill |
|
61,189 |
|
|
61,189 |
Deferred tax assets, net |
|
134,201 |
|
|
110,647 |
Other long-term assets |
|
39,126 |
|
|
34,355 |
Total assets |
$ |
1,337,720 |
|
$ |
1,321,258 |
Liabilities and
stockholders’ equity |
|
|
|
Current
liabilities |
|
|
|
Current portion of long-term debt and other borrowings |
$ |
384 |
|
$ |
354 |
Accounts payable |
|
38,861 |
|
|
20,563 |
Short-term contingent liability |
|
— |
|
|
99,700 |
Accrued expenses and other liabilities |
|
114,798 |
|
|
127,084 |
Total current liabilities |
|
154,043 |
|
|
247,701 |
Asset retirement obligations |
|
22,729 |
|
|
22,543 |
Long-term debt, net and other
borrowings |
|
559,235 |
|
|
557,712 |
Other long-term liabilities |
|
49,068 |
|
|
46,155 |
Total liabilities |
|
785,075 |
|
|
874,111 |
Total stockholders’
equity |
|
552,645 |
|
|
447,147 |
Total liabilities and stockholders’ equity |
$ |
1,337,720 |
|
$ |
1,321,258 |
Contacts: Mark Kinarney Vice President,
Investor Relations978-671-8842ir@lantheus.com
Melissa Downs Senior Director, Corporate Communications
646-975-2533media@lantheus.com
Lantheus (NASDAQ:LNTH)
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