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Lantheus Reports Fourth Quarter and Full Year 2022 Financial Results
Press Releases

Lantheus Reports Fourth Quarter and Full Year 2022 Financial Results






  • Worldwide revenue of $263.2 million and $935.1 million for the fourth quarter and full year 2022, representing increases of 103.1% and 119.9% over the prior year periods, respectively
  • GAAP net loss of $119.2 million and GAAP net income of $28.1 million for the fourth quarter and full year 2022, compared to GAAP net loss of $40.2 million and $71.3 million in the prior year period
  • GAAP fully diluted net loss per share of $1.74 and GAAP fully diluted net income per share of $0.40 for the fourth quarter and full year 2022, compared to GAAP fully diluted net loss per share of $0.59 and $1.06 in the prior year period; adjusted fully diluted net income per share of $1.37 and $4.22 for the fourth quarter and full year 2022, compared to adjusted fully diluted net income per share of $0.25 and $0.49 in the prior year period
  • Net cash provided by operating activities was $105.4 million and $281.8 million for the fourth quarter and full year 2022. Free cash flow of $100.6 million and $263.4 million for the fourth quarter and full year 2022, compared to free cash flow of $9.3 million and $41.8 million for the fourth quarter and full year 2021
  • The Company provides first quarter and full year 2023 revenue and adjusted diluted earnings per share guidance

BEDFORD, Mass., Feb. 23, 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 fourth quarter and full year ended December 31, 2022.

The Company’s worldwide revenue for the fourth quarter of 2022 totaled $263.2 million, compared with $129.6 million for the fourth quarter of 2021, representing an increase of 103.1% over the prior year period. Full year 2022 worldwide revenues were $935.1 million, compared with $425.2 million for the full year 2021, representing an increase of 119.9% over the prior year period.

The Company’s fourth quarter 2022 GAAP net loss was $119.2 million, or $1.74 per fully diluted share, as compared to GAAP net loss of $40.2 million, or $0.59 per fully diluted share for the fourth quarter of 2021. Full year 2022 GAAP net income was $28.1 million, or $0.40 per fully diluted share, as compared to GAAP net loss of $71.3 million, or $1.06 per fully diluted share for the full year 2021.

The Company’s fourth quarter 2022 adjusted fully diluted net income per share, or earnings per share (“EPS”), were $1.37, as compared to $0.25 for the fourth quarter of 2021, representing an increase of approximately $1.12 from the prior year period. The Company’s full year 2022 adjusted fully diluted EPS, were $4.22, as compared to $0.49 for the full year 2021, representing an increase of approximately $3.72 from the prior year period.

Lastly, net cash provided by operating activities was $105.4 million and $281.8 million for the fourth quarter and full year 2022. Free Cash Flow was $100.6 million for the fourth quarter of 2022, as compared to $9.3 million for the fourth quarter of 2021, representing an increase of approximately $91.3 million from the prior year period. Full year 2022 free cash flow was $263.4 million, as compared to $41.8 million for the full year 2021, representing an increase of approximately $221.7 million from the prior year period.

“2022 was an outstanding year for Lantheus, led by the success of PYLARIFY and expansion of our Radiopharmaceutical Oncology pipeline. We accelerated our growth, diversified our portfolio, and delivered record revenues and profits which created additional free cash flows,” said Mary Anne Heino, President and Chief Executive Officer of Lantheus. “In 2023, PYLARIFY, the #1 PSMA PET imaging agent and DEFINITY, the #1 ultrasound enhancing agent, will continue to deliver value for our patients, healthcare professionals, employees, and shareholders.”

The Company updates its guidance for the first quarter and full year 2023 is as follows:

    Guidance Issued February 23, 2023
Q1 FY 2023 Revenue   $280 million – $285 million
Q1 FY 2023 Adjusted Fully Diluted EPS   $1.28 – $1.32
    Guidance Issued February 23, 2023
FY 2023 Revenue   $1.140 billion – $1.160 billion
FY 2023 Adjusted Fully Diluted EPS   $4.95 – $5.10

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, February 23, 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 the face of competition; (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 identify and acquire or in-license additional diagnostic and therapeutic product opportunities in oncology and other strategic areas; (vii) the continuing impact of the global COVID-19 pandemic on our business, supply chain, financial conditions and prospects; 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).

Lantheus Holdings, Inc.

Consolidated Statements of Operations

(in thousands, except per share data – unaudited)

    Three Months Ended
December 31,
  Year Ended
December 31,
      2022       2021       2022       2021  
Revenues   $ 263,166     $ 129,562     $ 935,061     $ 425,208  
Cost of goods sold     95,995       71,654       353,358       237,513  
Gross profit     167,171       57,908       581,703       187,695  
Operating expenses                
Sales and marketing     26,983       19,423       100,243       68,422  
General and administrative     39,639       62,530       133,584       150,395  
Research and development     272,226       11,293       311,681       44,966  
Total operating expenses     338,848       93,246       545,508       263,783  
Gain on sale of assets                       15,263  
   Operating (loss) income     (171,677 )     (35,338 )     36,195       (60,825 )
Interest expense     2,581       1,528       7,185       7,752  
Loss (gain) on extinguishment of debt     588             588       (889 )
Other loss     1,397       4,141       1,703       7,350  
(Loss) income before income taxes     (176,243 )     (41,007 )     26,719       (75,038 )
Income tax benefit     (57,058 )     (792 )     (1,348 )     (3,759 )
Net (loss) income   $ (119,185 )   $ (40,215 )   $ 28,067     $ (71,279 )
Net (loss) income per common share:                
Basic   $ (1.74 )   $ (0.59 )   $ 0.41     $ (1.06 )
Diluted   $ (1.74 )   $ (0.59 )   $ 0.40     $ (1.06 )
Weighted-average common shares outstanding:                
Basic     68,500       67,713       68,487       67,486  
Diluted     68,500       67,713       70,671       67,486  


Lantheus Holdings, Inc.

Consolidated Revenues Analysis

(in thousands – unaudited)

    Three Months Ended
December 31,
  Year Ended
December 31,
    2022   2021   % Change   2022   2021   % Change
DEFINITY   $ 63,619   $ 59,311   7.3 %   $ 244,993   $ 232,759   5.3 %
TechneLite     24,725     22,041   12.2 %     88,864     91,293   (2.7) %
Other precision diagnostics     6,022     5,684   5.9 %     22,825     26,973   (15.4) %
Total precision diagnostics     94,366     87,036   8.4 %     356,682     351,025   1.6 %
PYLARIFY     160,642     35,417   353.6 %     527,405     43,414   1,114.8 %
Other radiopharmaceutical oncology     919     267   244.2 %     4,102     5,473   (25.1) %
Total radiopharmaceutical oncology     161,561     35,684   352.8 %     531,507     48,887   987.2 %
Strategic Partnerships and other revenue     7,239     6,842   5.8 %     46,872     25,296   85.3 %
Total revenues   $ 263,166   $ 129,562   103.1 %   $ 935,061   $ 425,208   119.9 %


Lantheus Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except per share data – unaudited)

    Three Months Ended
December 31,
  Year Ended
December 31,
      2022       2021       2022       2021  
Net income (loss)   $ (119,185 )   $ (40,215 )   $ 28,067     $ (71,279 )
Stock and incentive plan compensation     8,124       4,162       29,262       15,934  
Amortization of acquired intangible assets     8,307       8,373       33,225       27,506  
Acquired debt fair value adjustment                       (307 )
Contingent consideration fair value adjustments     9,300       43,900       34,700       72,400  
Non-recurring refinancing related fees     70             70        
Non-recurring severance related fees                       522  
Non-recurring fees           818       (384 )     818  
Extinguishment of debt     588             588       (889 )
Gain on sale of assets                       (15,263 )
Strategic collaboration and license costs     265,856             266,356        
Integration costs           9             102  
Acquisition-related costs     169       823       1,037       1,549  
Impairment of long-lived assets           189             9,729  
ARO Acceleration and other related costs     (968 )     5,259       2,119       5,259  
Other     583       2       694       62  
Income tax effect of non-GAAP adjustments(b)     (76,227 )     (6,079 )     (97,739 )     (12,138 )
Adjusted net income   $ 96,617     $ 17,241     $ 297,995     $ 34,005  
Adjusted net income, as a percentage of revenues     36.7 %     13.3 %     31.9 %     8.0 %

    Three Months Ended
December 31,
  Year Ended
December 31,
      2022       2021       2022       2021  
Net income (loss) per share – diluted   $ (1.74 )   $ (0.59 )   $ 0.40     $ (1.06 )
Stock and incentive plan compensation     0.12       0.06       0.41       0.24  
Amortization of acquired intangible assets     0.12       0.13       0.47       0.41  
Acquired debt fair value adjustment                       (0.01 )
Contingent consideration fair value adjustments     0.13       0.63       0.49       1.05  
Non-recurring refinancing related fees                        
Non-recurring severance related fees                       0.01  
Non-recurring fees           0.01       (0.01 )     0.01  
Extinguishment of debt     0.01             0.01       (0.01 )
Gain on sale of assets                       (0.23 )
Strategic collaboration and license costs     3.76             3.77        
Integration costs                        
Acquisition-related costs           0.01       0.01       0.02  
Impairment of long-lived assets                       0.14  
ARO Acceleration and other related costs     (0.01 )     0.08       0.03       0.08  
Other(a)     0.06             0.01        
Income tax effect of non-GAAP adjustments(b)     (1.08 )     (0.08 )     (1.37 )     (0.16 )
Adjusted net income per share – diluted   $ 1.37     $ 0.25     $ 4.22     $ 0.49  
Weighted-average common shares outstanding – diluted     70,642       69,446       70,671       68,963  

(a) This effect includes an adjustment related to the increase from basic to diluted shares as the Company changed from GAAP net loss to non-GAAP adjusted net income for the three months ended December 31, 2022.
(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
December 31,
  Year Ended
December 31,
    2022       2021       2022       2021  
Net cash provided by operating activities $ 105,352     $ 13,889     $ 281,781     $ 53,916  
Capital expenditures   (4,724 )     (4,544 )     (18,347 )     (12,140 )
Free cash flow $ 100,628     $ 9,345     $ 263,434     $ 41,776  
               
Net cash (used in) provided by investing activities $ (264,724 )   $ (4,544 )   $ (276,547 )   $ 3,683  
Net cash used in financing activities $ 317,840     $ (2,100 )   $ 311,691     $ (39,332 )


Lantheus Holdings, Inc.

Condensed Consolidated Balance Sheets

(in thousands – unaudited)

  December 31,
2022
  December 31,
2021
Assets      
Current assets      
Cash and cash equivalents $ 415,652   $ 98,508
Accounts receivable, net   213,397     89,336
Inventory   35,475     35,129
Other current assets   13,092     12,818
Total current assets   677,616     235,791
Property, plant and equipment, net   122,166     116,772
Intangibles, net   315,285     348,510
Goodwill   61,189     61,189
Deferred tax assets, net   110,647     62,764
Other long-term assets   34,355     38,758
Total assets $ 1,321,258   $ 863,784
Liabilities and stockholders’ equity      
Current liabilities      
Current portion of long-term debt and other borrowings $ 354   $ 11,642
Accounts payable   20,563     20,787
Short-term contingent liability   99,700    
Accrued expenses and other liabilities   127,084     58,068
Total current liabilities   247,701     90,497
Asset retirement obligations   22,543     20,833
Long-term debt, net and other borrowings   557,712     163,121
Other long-term liabilities   46,155     124,894
Total liabilities   874,111     399,345
Total stockholders’ equity   447,147     464,439
Total liabilities and stockholders’ equity $ 1,321,258   $ 863,784

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

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