Lantheus Reports Second Quarter 2023 Financial Results

• Worldwide revenue of $321.7 million for the second quarter 2023, representing an increase of 43.8% from the prior year period
• GAAP net income of $94.1 million for the second quarter 2023, compared to GAAP net income of $43.1 million in the prior year period
• GAAP fully diluted net income per share of $1.33 for the second quarter 2023, compared to GAAP fully diluted net income per share of $0.61 in the prior year period; adjusted fully diluted net income per share of $1.54 for the second quarter 2023, compared to adjusted fully diluted net income per share of $0.89 in the prior year period
• 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 2023
• The Company provides third quarter 2023 revenue and adjusted diluted earnings per share guidance; increases full year guidance
  
  

BEDFORD, Mass., Aug. 03, 2023 (GLOBE NEWSWIRE) -- 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 Ended June 30,								Six Months Ended June 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 Ended June 30,									Six Months Ended June 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 Ended June 30,								Six Months Ended June 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 Ended June 30,								Six Months Ended June 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 Ended June 30,								Six Months Ended June 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 Relations

978-671-8842

[email protected]

Melissa Downs

Senior Director, Corporate Communications

646-975-2533

[email protected]