Worldwide revenue of $319.9 million for the third quarter 2023, representing an increase of 33.7% from the prior year periodGAAP net income of $132.0 million for the third quarter 2023, compared to GAAP net income of $61.2 million in the prior year periodGAAP 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 periodNet 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 2023The Company updates full year 2023 revenue and adjusted diluted earnings per share guidance
BEDFORD, Mass., Nov. 02, 2023 (GLOBE NEWSWIRE) — Lantheus Holdings, Inc. (the Company) (NASDAQ: LNTH), the leading radiopharmaceutical-focused company committed to enabling clinicians to Find, Fight and Follow disease to deliver better patient outcomes, today reported financial results for its third quarter ended September 30, 2023.
The Company’s worldwide revenue for the third quarter of 2023 totaled $319.9 million, compared with $239.3 million for the third quarter of 2022, representing an increase of 33.7% over the prior year period.
The Company’s third quarter 2023 GAAP net income was $132.0 million, or $1.88 per fully diluted share, as compared to GAAP net income of $61.2 million, or $0.86 per fully diluted share for the third quarter of 2022.
The Company’s third quarter 2023 adjusted fully diluted net income per share, or earnings per share (“EPS”), was $1.47, as compared to $0.99 for the third quarter of 2022, representing an increase of approximately $0.48 from the prior year period.
Lastly, 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 of 2023, representing an increase of approximately $14.6 million from the prior year period.
“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 Mary Anne Heino, Chief Executive Officer of Lantheus. “We believe that our unique capabilities, commitment to innovation and excellence, and growing pipeline supports our position as the leading radiopharmaceutical-focused company.”
The Company updates its guidance for full year 2023 as follows:
Guidance Issued November 2, 2023 Previous Guidance Issued August 3, 2023FY 2023 Revenue $1.255 billion – $1.27 billion $1.245 billion – $1.27 billionFY 2023 Adjusted Fully Diluted EPS $5.80 – $5.85 $5.60 – $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, November 2, 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.
Lantheus is the leading radiopharmaceutical-focused company, delivering life-changing science to enable clinicians to Find, Fight and Follow disease to deliver better patient outcomes. Headquartered in Massachusetts with offices in New Jersey, Canada and Sweden, Lantheus has been providing radiopharmaceutical solutions for more than 65 years. 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,” “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 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).
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Lantheus Holdings, Inc.
Consolidated Statements of Operations
(in thousands, except per share data – unaudited)
Three Months Ended
September 30, Nine Months Ended
September 30, 2023 2022 2023 2022Revenues $319,946 $239,292 $942,430 $671,895Cost of goods sold 119,995 91,859 462,756 257,363Gross profit 199,951 147,433 479,674 414,532Operating expenses Sales and marketing 37,399 25,414 106,472 73,260General and administrative 35,741 23,759 85,163 93,945Research and development 14,450 12,517 60,883 39,455Total operating expenses 87,590 61,690 252,518 206,660Operating income 112,361 85,743 227,156 207,872Interest expense 5,054 1,626 14,978 4,604Other (income) expense (a) (52,649) 1,101 (60,362) 306Income before income taxes 159,956 83,016 272,540 202,962Income tax expense 27,999 21,784 49,259 55,710Net income $131,957 $61,232 $223,281 $147,252Net income per common share: Basic $1.93 $0.89 $3.27 $2.15Diluted $1.88 $0.86 $3.18 $2.08Weighted-average common shares outstanding: Basic 68,436 68,756 68,188 68,482Diluted 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 $51.8 million.
Lantheus Holdings, Inc.
Consolidated Revenues Analysis
(in thousands – unaudited)
Three Months Ended
September 30, Nine Months Ended
September 30, 2023 2022 % Change 2023 2022 % ChangePYLARIFY $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%
Lantheus Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except per share data – unaudited)
Three Months Ended
September 30, Nine Months Ended
September 30, 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
September 30, Nine Months Ended
September 30, 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 $51.8 million.
(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.
Lantheus Holdings, Inc.
Reconciliation of Free Cash Flow
(in thousands – unaudited)
Three Months Ended
September 30, Nine Months Ended
September 30, 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)
Lantheus Holdings, Inc.
Condensed Consolidated Balance Sheets
(in thousands – unaudited)
September 30,
2023 December 31,
2022Assets Current assets Cash and cash equivalents$614,131 $415,652Accounts receivable, net 259,198 213,397Inventory 56,462 35,475Other current assets 11,485 13,092Assets held for sale 7,159 —Total current assets 948,435 677,616Property, plant and equipment, net 140,293 122,166Intangibles, net 163,294 315,285Goodwill 61,189 61,189Deferred tax assets, net 152,189 110,647Other long-term assets 56,210 34,355Total assets$1,521,610 $1,321,258Liabilities and stockholders’ equity Current liabilities Current portion of long-term debt and other borrowings$703 $354Accounts payable 37,076 20,563Short-term contingent liability — 99,700Accrued expenses and other liabilities 138,823 127,084Total current liabilities 176,602 247,701Asset retirement obligations 22,823 22,543Long-term debt, net and other borrowings 560,576 557,712Other long-term liabilities 62,850 46,155Total liabilities 822,851 874,111Total stockholders’ equity 698,759 447,147Total liabilities and stockholders’ equity$1,521,610 $1,321,258
Contacts:
Mark Kinarney
Vice President, Investor Relations
978-671-8842
ir@lantheus.com
Melissa Downs
Senior Director, Corporate Communications
646-975-2533
media@lantheus.com