Lantheus Holdings, Inc. Reports First Quarter 2022 Financial Results

• Worldwide revenue of $208.9 million for the first quarter 2022, representing an increase of 125.8% from the prior year period
• GAAP net income of $43.0 million for the first quarter 2022, compared to GAAP net income of $9.0 million in the prior year period
• GAAP fully diluted net income of $0.61 for the first quarter 2022, compared to GAAP fully diluted net income of $0.13 in the prior year period; adjusted fully diluted EPS of $0.97 for the first quarter 2022, compared to adjusted fully diluted EPS of $0.05 in the prior year period
• Net cash provided by operating activities was $10.3 million for the first quarter 2022. Free cash flow was $7.1 million in the first quarter 2022
• The Company provides second quarter 2022 revenue and adjusted diluted earnings per share guidance; increases full year guidance
  

NORTH BILLERICA, Mass., April 29, 2022 (GLOBE NEWSWIRE) -- Lantheus Holdings, Inc. (NASDAQ: LNTH) (Lantheus), an established leader and fully integrated provider committed to innovative imaging diagnostics, targeted therapeutics and artificial intelligence solutions to find, fight and follow serious medical conditions, today reported financial results for its first quarter ended March 31, 2022.

The Company’s worldwide revenue for the first quarter of 2022 totaled $208.9 million, compared with $92.5 million for the first quarter of 2021, representing an increase of 125.8% from the prior year period.

The Company’s first quarter 2022 GAAP net income was $43.0 million, or $0.61 per fully diluted share, as compared to GAAP net income of $9.0 million, or $0.13 per fully diluted share for the first quarter of 2021.

The Company’s first quarter 2022 adjusted fully diluted earnings per share were $0.97, as compared to $0.05 for the first quarter of 2021, representing an increase of approximately $0.92 from the prior year period.

Lastly, net cash provided by operating activities was $10.3 million for the first quarter 2022. Free Cash Flow was $7.1 million in the first quarter of 2022, representing a decrease of approximately $0.2 million from the prior year period.

“We continued to deliver strong performance with record revenue and earnings in the first quarter of 2022, led primarily by rapidly increasing PYLARIFY sales,” said Mary Anne Heino, President and CEO. “We are executing on our strategy to accelerate growth, diversify our portfolio, and position Lantheus as the category leader in markets in which we compete. We are excited by our recent strategic collaborations for PYLARIFY and PYLARIFY AI and continue to assess longer-term revenue opportunities through strategic transactions and internal development to drive shareholder value.”

The Company updates its guidance for full year 2022 and offers the following guidance for the second quarter:

		Q2 Guidance Issued April 29, 2022		Previous Guidance Issued February 24, 2022
Q2 FY 2022 Revenue		$200 million - $215 million		N/A
Q2 FY 2022 Adjusted Fully Diluted EPS		$0.67 - $0.73		N/A
		FY Guidance Updated April 29, 2022		FY Guidance Issued February 24, 2022
FY 2022 Revenue		$800 million - $835 million		$685 million - $710 million
FY 2022 Adjusted Fully Diluted EPS		$2.90 - $3.15		$1.95 - $2.05

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 (including liability accruals relating to the contingent value rights issued as part of the Progenics Pharmaceuticals, Inc. acquisition), 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 Friday, April 29, 2022 at 8:00 a.m. ET. To access the live conference call via telephone, please dial 1-866-498-8390 (U.S. callers) or 1-678-509-7599 (international callers) and provide passcode 8691334. A live webcast will be available in the Investors section of the Company’s website at www.lantheus.com.

A replay of the audio webcast will be available in the Investors section of our website at www.lantheus.com approximately two hours after completion of the call and will be archived for 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 Holdings, Inc. is the parent company of Lantheus Medical Imaging, Inc., Progenics Pharmaceuticals, Inc. and EXINI Diagnostics AB and an established leader and fully integrated provider committed to innovative imaging diagnostics, targeted therapeutics and artificial intelligence solutions to Find Fight and Follow^® serious medical conditions. Lantheus provides a broad portfolio of products, including the echocardiography agent DEFINITY^® Vial for (Perflutren Lipid Microsphere) Injectable Suspension; PYLARIFY^®, a PSMA PET imaging agent for the detection of suspected recurrent or metastatic prostate cancer; PYLARIFY AI™, an artificial intelligence platform that assists in the evaluation of PSMA PET images; TechneLite^® (Technetium Tc99m Generator), a technetium-based generator that provides the essential medical isotope used in nuclear medicine procedures; AZEDRA^® for the treatment of certain rare neuroendocrine tumors; and RELISTOR^® for the treatment of opioid-induced constipation, which is partnered with Bausch Health Companies, Inc. The Company is headquartered in North Billerica, Massachusetts, with additional 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 “believe,” “could,” “estimate,” “expect,” “look forward to,” “may,” “plan,” “predict,” “target,” “will,” 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 DEFINITY, in the face of segment competition and potential generic competition, including as a result of patent and regulatory exclusivity expirations and challenges; (ii) our ability to continue to grow PYLARIFY as a commercial product, including (A) our ability to obtain FDA approval for additional positron emission tomography (“PET”) manufacturing facilities (“PMFs”) to manufacture PYLARIFY, (B) the ability of PMFs to manufacture PYLARIFY to meet product demand, (C) our ability to sell PYLARIFY to customers, (D) our ability to obtain and maintain adequate coding, coverage and payment for PYLARIFY, and (E) our ability to establish PYLARIFY as a leading PSMA PET imaging agent in a competitive environment in which other PSMA PET imaging agents have been approved and additional ones are in development; (iii) the global Molybdenum-99 (“Mo-99”) supply; (iv) our ability to have third party manufacturers manufacture our products and our ability to use our in-house manufacturing capacity; (v) our ability to successfully launch PYLARIFY AI as a commercial product; (vi) the continuing impact of the global COVID-19 pandemic on our business, financial condition and prospects; (vii) the efforts and timing for clinical development of our product candidates and new clinical applications for our products, in each case, that we may develop, including 1095 and LMI 1195, or that our strategic partners may develop, including flurpiridaz fluorine-18 (“F 18”); (viii) our ability to identify and acquire or in-license additional diagnostic and therapeutic product opportunities in oncology and other strategic areas; (ix) the potential reclassification by the FDA of certain of our products and product candidates from drugs to devices with the expense, complexity and potentially more limited competitive protection such reclassification could cause; and (x) 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 March 31,
			2022				2021
Revenues		$	208,880			$	92,509
Cost of goods sold			79,810				51,479
Gross profit			129,070				41,030
Operating expenses
Sales and marketing			20,354				14,173
General and administrative			37,588				16,138
Research and development			12,203				10,360
Total operating expenses			70,145				40,671
Gain on sale of assets			—				15,263
Operating income			58,925				15,622
Interest expense			1,509				2,718
Gain on extinguishment of debt			—				(889	)
Other income			(485	)			(549	)
Income before income taxes			57,901				14,342
Income tax expense			14,939				5,334
Net income		$	42,962			$	9,008
Net income per common share:
Basic		$	0.63			$	0.13
Diluted		$	0.61			$	0.13
Weighted-average common shares outstanding:
Basic			68,008				67,094
Diluted			70,051				67,714

Lantheus Holdings, Inc.

Consolidated Revenues Analysis

(in thousands – unaudited)

		Three Months Ended March 31,
			2022				2021			% Change
DEFINITY		$	58,328			$	55,971			4.2	%
TechneLite			22,605				22,800			(0.9	)%
Other precision diagnostics			5,265				6,984			(24.6	)%
Total precision diagnostics			86,198				85,755			0.5	%
PYLARIFY			92,777				—			N/A
Other radiopharmaceutical oncology			1,327				1,500			(11.5	)%
Total radiopharmaceutical oncology			94,104				1,500			6,173.6	%
Strategic Partnerships and other revenue			28,578				5,254			443.9	%
Total revenues		$	208,880			$	92,509			125.8	%

Lantheus Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except per share data – unaudited)

		Three Months Ended March 31,
			2022				2021
Net income		$	42,962			$	9,008
Stock and incentive plan compensation			5,623				3,317
Amortization of acquired intangible assets			8,306				4,685
Acquired debt fair value adjustment			—				(307	)
Contingent consideration fair value adjustments			18,400				300
Non-recurring severance related fees			—				436
Non-recurring fees			(732	)			—
Extinguishment of debt			—				(889	)
Gain on sale of assets			—				(15,263	)
Integration costs			—				19
Acquisition-related costs			447				(103	)
ARO Acceleration and other related costs			1,591				—
Other			129				10
Income tax effect of non-GAAP adjustments(a)			(8,896	)			2,083
Adjusted net income		$	67,830			$	3,296
Adjusted net income, as a percentage of revenues			32.5	%			3.6	%

		Three Months Ended March 31,
			2022				2021
Net income per share - diluted		$	0.61			$	0.13
Stock and incentive plan compensation			0.08				0.05
Amortization of acquired intangible assets			0.12				0.08
Acquired debt fair value adjustment			—				(0.01	)
Contingent consideration fair value adjustments			0.26				0.01
Non-recurring severance related fees			—				0.01
Non-recurring fees			(0.01	)			—
Extinguishment of debt			—				(0.01	)
Gain on sale of assets			—				(0.23	)
Integration costs			—				—
Acquisition-related costs			0.01				(0.01	)
ARO Acceleration and other related costs			0.02				—
Income tax effect of non-GAAP adjustments(a)			(0.12	)			0.03
Adjusted net income per share - diluted		$	0.97			$	0.05
Weighted-average common shares outstanding - diluted			70,051				67,714

(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 March 31,
		2022				2021
Net cash provided by operating activities	$	10,264			$	9,818
Capital expenditures		(3,190	)			(2,520	)
Free cash flow	$	7,074			$	7,298
Net cash (used in) provided by investing activities	$	(1,390	)		$	13,303
Net cash used in financing activities	$	(2,179	)		$	(34,791	)

Lantheus Holdings, Inc.

Condensed Consolidated Balance Sheets

(in thousands – unaudited)

	March 31, 2021				December 31, 2021
Assets
Current assets
Cash and cash equivalents	$	105,355			$	98,508
Accounts receivable, net		172,283				89,336
Inventory		34,249				35,129
Other current assets		12,860				12,818
Total current assets		324,747				235,791
Property, plant and equipment, net		116,959				116,772
Intangibles, net		340,204				348,510
Goodwill		61,189				61,189
Deferred tax assets, net		47,868				62,764
Other long-term assets		42,199				38,758
Total assets	$	933,166			$	863,784
Liabilities and stockholders’ equity
Current liabilities
Current portion of long-term debt and other borrowings	$	12,878			$	11,642
Accounts payable		22,383				20,787
Accrued expenses and other liabilities		142,396				58,068
Total current liabilities		177,657				90,497
Asset retirement obligations		21,514				20,833
Long-term debt, net and other borrowings		159,369				163,121
Other long-term liabilities		58,776				124,894
Total liabilities		417,316				399,345
Total stockholders’ equity		515,850				464,439
Total liabilities and stockholders’ equity	$	933,166			$	863,784

Contacts:
Mark Kinarney
Senior Director, Investor Relations
978-671-8842
ir@lantheus.com 

Melissa Downs
Senior Director
646-975-2533
media@lantheus.com