PHILADELPHIA, Nov. 6, 2019 /PRNewswire/ --
Financial and Business Highlights:
- Net Sales, Profitability Exceeded Expectations
- Launched First-to-Market Posaconazole
- Expanded Pipeline with Significant Future
Opportunities:
• Levothyroxine
(Approved)
• Generic ADVAIR
DISKUS®
- Successfully Completed $86.25
Million Convertible Notes Offering
Lannett Company, Inc. (NYSE: LCI) today reported financial
results for its fiscal 2020 first quarter ended September 30, 2019.
"Our topline and bottom-line for the fiscal 2020 first quarter
exceeded our expectations, largely due to strong sales of certain
key products and the launch of Posaconazole late in the period,"
said Tim Crew, chief executive
officer of Lannett. "We continue to build our business and
expand our opportunities for ongoing growth. In the current
quarter, we are now launching our third new product and plan to
launch several more over the next several months. In
addition, we secured exclusive U.S. commercialization rights to an
approved ANDA for Levothyroxine Sodium Tablets, as well as an
advanced development program for generic ADVAIR DISKUS®,
a drug used to treat symptoms associated with asthma and other
respiratory diseases. Both medications are potentially large
market opportunities.
"Near the end of the first quarter, we completed an $86.25 million convertible notes offering, due
2026, and used the net proceeds to pay down half of our outstanding
Term A Loans. Our existing cash position exceeds the
remaining balance of the Term A Loans, which mature in about one
year. As a result of the transaction, we lowered our interest
expense, strengthened our balance sheet and improved our financial
flexibility."
For the fiscal 2020 first quarter, on a GAAP basis, net sales
were $127.3 million compared with
$155.1 million for the first quarter
of fiscal 2019. Gross profit was $42.7
million, or 33% of total net sales, compared with
$59.1 million, or 38% of total net
sales. Net loss was $12.2
million, or $0.32 per
share. Net loss for the prior year first quarter, which
included asset impairment charges of $369.5
million, was $287.5 million,
or $7.65 per share.
For the fiscal 2020 first quarter reported on a Non-GAAP basis,
net sales were $127.3 million
compared with $155.1 million for the
first quarter of fiscal 2019. Adjusted gross profit was
$52.6 million, or 41% of adjusted net
sales, compared with $68.7 million,
or 44% of adjusted net sales, for the prior-year first
quarter. Adjusted interest expense was $15.3 million compared with $16.9 million for the first quarter of fiscal
2019. Adjusted net income was $8.8
million, or $0.22 per diluted
share, compared with $16.9 million,
or $0.44 per diluted share, for the
fiscal 2019 first quarter.
Guidance for Fiscal 2020
As discussed above, the
company expects interest and other expense for fiscal 2020 to be
lower than previously estimated as a result of the convertible
notes offering. Based on its current outlook, the company
revised certain items in its GAAP guidance and reiterated
adjusted guidance for fiscal year 2020, except for interest and
other. The full guidance is as follows:
|
GAAP
|
Adjusted**
|
Net sales
|
$525 million to $545
million, unchanged
|
$525 million to $545
million, unchanged
|
Gross margin
%
|
Approximately 33.5%
to 35.5%, unchanged
|
Approximately 40% to
42%, unchanged
|
R&D
expense
|
$34 million to $36
million, unchanged
|
$34 million to $36
million, unchanged
|
SG&A
expense
|
$69 million to $72
million, up from $68 million to $71 million
|
$63 million to $66
million, unchanged
|
Restructuring
expense
|
$2 million to $4
million, unchanged
|
$ --
|
Asset impairment
charges
|
$2 million
|
$ --
|
Interest and
other
|
$70 million to $72
million, down from $71 million to $73 million
|
$54 million to $56
million, down from $56 million to $58 million
|
Effective tax
rate
|
Approximately 16% to
17%, down from approximately 26% to 29%
|
Approximately 22% to
23%, unchanged
|
Adjusted
EBITDA*
|
N/A
|
$145 million to $160
million, unchanged
|
Capital
expenditures
|
$20 million to $25
million, unchanged
|
$20 million to $25
million, unchanged
|
|
**A reconciliation of
Adjusted amounts to most directly comparable GAAP amounts can be
found in the attached financial tables.
|
Conference Call Information and Forward-Looking
Statements
Later today, the company will host a conference
call at 4:30 p.m. ET to review its
results of operations for its fiscal 2020 first quarter ended
September 30, 2019. The
conference call will be available to interested parties by dialing
800-447-0521 from the U.S. or Canada, or 847-413-3238 from international
locations, passcode 49151826. The call will be broadcast via
the Internet at www.lannett.com. Listeners are encouraged to
visit the website at least 10 minutes prior to the start of the
scheduled presentation to register, download and install any
necessary audio software. A playback of the call will be
archived and accessible on the same website for at least three
months.
Discussion during the conference call may include
forward-looking statements regarding such topics as, but not
limited to, the company's financial status and performance,
regulatory and operational developments, and any comments the
company may make about its future plans or prospects in response to
questions from participants on the conference call.
Use of Non-GAAP Financial Measures
This news release
contains references to Non-GAAP financial measures, including
Adjusted EBITDA, which are financial measures that are not prepared
in conformity with United States
generally accepted accounting principles (U.S. GAAP).
Management uses these measures internally for evaluating its
operating performance. The Company's management believes that
the presentation of Non-GAAP financial measures provides useful
supplementary information regarding operational performance,
because it enhances an investor's overall understanding of the
financial results for the Company's core business.
Additionally, it provides a basis for the comparison of the
financial results for the Company's core business between current,
past and future periods. The company also believes that
including Adjusted EBITDA, as defined in the company's existing
Credit Agreement, is appropriate to provide additional information
to investors to demonstrate the company's ability to comply with
financial debt covenants. Non-GAAP financial measures should
be considered only as a supplement to, and not as a substitute for
or as a superior measure to, financial measures prepared in
accordance with U.S. GAAP.
Detailed reconciliations of non-GAAP financial measures to the
most directly comparable GAAP financial measures are included with
this release.
Non-GAAP financial measures exclude, among others, the effects
of (1) amortization of purchased intangibles and other purchase
accounting entries, (2) restructuring expenses, (3) non-cash
interest expense, as well as (4) certain other items considered
unusual or non-recurring in nature.
*Adjusted EBITDA excludes the same adjustments discussed above,
as well as additional adjustments permitted under the company's
existing Credit Agreement.
About Lannett Company, Inc.:
Lannett Company, founded
in 1942, develops, manufactures, packages, markets and distributes
generic pharmaceutical products for a wide range of medical
indications – see financial schedule below for net sales by medical
indication. For more information, visit the company's website
at www.lannett.com.
This news release contains certain statements of a
forward-looking nature relating to future events or future business
performance. Any such statements, including, but not limited
to, successfully commercializing recently launched products and
planned product launches, and achieving the financial metrics
stated in the company's guidance for fiscal 2020, whether expressed
or implied, are subject to risks and uncertainties which can cause
actual results to differ materially from those currently
anticipated due to a number of factors which include, but are not
limited to, the difficulty in predicting the timing or outcome of
FDA or other regulatory approvals or actions, the ability to
successfully commercialize products upon approval, including
acquired products, and Lannett's estimated or anticipated future
financial results, future inventory levels, future competition or
pricing, future levels of operating expenses, product development
efforts or performance, and other risk factors discussed in the
company's Form 10-K and other documents filed with the Securities
and Exchange Commission from time to time. These
forward-looking statements represent the company's judgment as of
the date of this news release. The company disclaims any
intent or obligation to update these forward-looking
statements.
Contact:
|
Robert
Jaffe
|
|
Robert Jaffe Co.,
LLC
|
|
(424)
288-4098
|
FINANCIAL SCHEDULES FOLLOW
LANNETT COMPANY,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands, except
share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
September 30,
2019
|
|
June 30,
2019
|
Cash and cash
equivalents
|
$
101,008
|
|
$
140,249
|
Accounts receivable,
net
|
173,109
|
|
164,752
|
Inventories
|
149,162
|
|
143,971
|
Prepaid income
taxes
|
159
|
|
-
|
Assets held for
sale
|
4,637
|
|
9,671
|
Other current
assets
|
6,994
|
|
13,606
|
Total current
assets
|
435,069
|
|
472,249
|
Property, plant
and equipment, net
|
184,889
|
|
186,670
|
Intangible assets,
net
|
427,253
|
|
411,229
|
Goodwill
|
-
|
|
-
|
Operating lease
assets
|
6,410
|
|
-
|
Deferred tax
assets
|
110,396
|
|
109,305
|
Other
assets
|
7,914
|
|
7,960
|
TOTAL
ASSETS
|
$
1,171,931
|
|
$
1,187,413
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
26,927
|
|
$
13,493
|
Accrued
expenses
|
6,233
|
|
5,805
|
Accrued payroll and
payroll-related expenses
|
12,347
|
|
19,924
|
Rebates
payable
|
43,358
|
|
46,175
|
Royalties
payable
|
16,597
|
|
16,215
|
Restructuring
liability
|
1,167
|
|
2,315
|
Other current
liabilties
|
3,652
|
|
3,652
|
Income taxes
payable
|
-
|
|
2,198
|
Short-term borrowings
and current portion of long-term debt
|
66,845
|
|
66,845
|
Current operating
lease liabilities
|
1,932
|
|
-
|
Total current
liabilities
|
179,058
|
|
176,622
|
Long-term debt,
net
|
654,432
|
|
662,203
|
Long-term
operating lease liabilities
|
5,626
|
|
-
|
Other
liabilities
|
14,711
|
|
14,547
|
TOTAL
LIABILITIES
|
853,827
|
|
853,372
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
Common stock
($0.001 par value, 100,000,000 shares authorized; 39,629,271
and 38,969,518 shares issued; 38,526,558 and 38,010,714 shares
outstanding at September 30, 2019 and June 30, 2019,
respectively)
|
40
|
|
39
|
Additional paid-in
capital
|
314,645
|
|
317,023
|
Retained
earnings
|
19,918
|
|
32,075
|
Accumulated other
comprehensive loss
|
(661)
|
|
(615)
|
Treasury
stock(1,102,713 and 958,804 shares at September 30, 2019 and June
30, 2019, respectively)
|
(15,838)
|
|
(14,481)
|
Total stockholders'
equity
|
318,104
|
|
334,041
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
1,171,931
|
|
$
1,187,413
|
LANNETT COMPANY,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands, except
share and per share data)
|
|
|
|
|
|
(UNAUDITED)
|
|
Three months
ended
|
|
September
30,
|
|
2019
|
|
2018
|
|
|
|
|
Net
sales
|
$
127,342
|
|
$
155,054
|
Cost of
sales
|
77,656
|
|
87,690
|
Amortization of
intangibles
|
7,028
|
|
8,223
|
Gross
profit
|
42,658
|
|
59,141
|
Operating
expenses:
|
|
|
|
Research and
development expenses
|
8,940
|
|
9,810
|
Selling, general, and
administrative expenses
|
21,308
|
|
20,588
|
Restructuring
expenses
|
1,388
|
|
1,022
|
Asset impairment
charges
|
1,618
|
|
369,499
|
Total operating
expenses
|
33,254
|
|
400,919
|
Operating income
(loss)
|
9,404
|
|
(341,778)
|
Other income
(loss):
|
|
|
|
Loss on
extinguishment of debt
|
(2,145)
|
|
-
|
Investment
income
|
729
|
|
379
|
Interest
expense
|
(19,292)
|
|
(21,433)
|
Other
|
934
|
|
(296)
|
Total other
loss
|
(19,774)
|
|
(21,350)
|
Loss before income
tax
|
(10,370)
|
|
(363,128)
|
Income tax expense
(benefit)
|
1,787
|
|
(75,600)
|
Net
Loss
|
$
(12,157)
|
|
$
(287,528)
|
|
|
|
|
Loss per common
share:
|
|
|
|
Basic
|
$
(0.32)
|
|
$
(7.65)
|
Diluted
|
$
(0.32)
|
|
$
(7.65)
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
Basic
|
38,309,267
|
|
37,586,327
|
Diluted
|
38,309,267
|
|
37,586,327
|
LANNETT COMPANY,
INC.
|
RECONCILIATION OF
GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
(UNAUDITED)
|
(In thousands, except
percentages, share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2019
|
|
Net sales
|
Cost of
sales
|
Amortization
of intangibles
|
Gross
Profit
|
Gross
Margin %
|
R&D
expense
|
SG&A
expense
|
Restructuring
expenses
|
Asset
impairment
charges
|
Operating
income
|
Other
income
(loss)
|
Income (loss)
before income
tax
|
Income tax
expense
|
Net income
(loss)
|
Diluted
earnings
(loss) per
share (k)
|
GAAP
Reported
|
$
127,342
|
$
77,656
|
$
7,028
|
$
42,658
|
33%
|
$
8,940
|
$
21,308
|
$
1,388
|
1,618
|
$
9,404
|
$(19,774)
|
$
(10,370)
|
$
1,787
|
$(12,157)
|
$
(0.32)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles (a)
|
-
|
-
|
(7,028)
|
7,028
|
|
-
|
-
|
-
|
-
|
7,028
|
-
|
7,028
|
-
|
7,028
|
|
Cody API business
(b)
|
-
|
(1,722)
|
-
|
1,722
|
|
(420)
|
(214)
|
-
|
-
|
2,356
|
-
|
2,356
|
-
|
2,356
|
|
Depreciation on
capitalized software costs (c)
|
-
|
-
|
-
|
-
|
|
-
|
(1,058)
|
-
|
-
|
1,058
|
-
|
1,058
|
-
|
1,058
|
|
Decommissioning of
Philadelphia sites (d)
|
-
|
(989)
|
-
|
989
|
|
-
|
-
|
-
|
-
|
989
|
-
|
989
|
-
|
989
|
|
Restructuring
expenses (e)
|
-
|
-
|
-
|
-
|
|
-
|
-
|
(1,388)
|
-
|
1,388
|
-
|
1,388
|
-
|
1,388
|
|
Asset impairment
charges (f)
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
(1,618)
|
1,618
|
-
|
1,618
|
-
|
1,618
|
|
Non-cash interest
(g)
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
-
|
4,008
|
4,008
|
-
|
4,008
|
|
Loss on
extinguishment of debt (h)
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
-
|
2,145
|
2,145
|
-
|
2,145
|
|
Other (i)
|
-
|
(208)
|
-
|
208
|
|
-
|
(2,090)
|
-
|
-
|
2,298
|
(966)
|
1,332
|
-
|
1,332
|
|
Tax adjustments
(j)
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
999
|
(999)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjusted
|
$
127,342
|
$
74,737
|
$
-
|
$
52,605
|
41%
|
$
8,520
|
$
17,946
|
$
-
|
$
-
|
$
26,139
|
$
(14,587)
|
$
11,552
|
$
2,786
|
$
8,766
|
$
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
To exclude
amortization of purchased intangible assets primarily related to
the acquisitions of KUPI and Silarx Pharmaceuticals,
Inc.
|
(b)
|
To exclude the
operating results of the ceased Cody API business
|
(c)
|
To exclude
depreciation on previously capitalized software integration costs
associated with the KUPI acquisition
|
(d)
|
To exclude the
costs related to the decommissioning and shutdown of the
Philadelphia manufacturing and distribution sites
|
(e)
|
To exclude
expenses associated with the Cody API Restructuring
Plan
|
(f)
|
To exclude
impairment charges primarily associated with an operating lease
right-of-use asset
|
(g)
|
To exclude
non-cash interest expense associated with debt issuance
costs
|
(h)
|
To exclude the
loss on extinguishment of debt primarily related to the partial
repayment of outstanding Term Loan A balance
|
(i)
|
To primarily
exclude accrued separation costs related to the Company's former
Chief Financial Officer as well as gains on sales of assets
previously held for sale
|
(j)
|
To exclude the
tax effect of the pre-tax adjustments included above at applicable
tax rates
|
(k)
|
The weighted average
share number for the three months ended September 30, 2019 is
38,309,267 for GAAP and 40,653,053 for the non-GAAP earnings (loss)
per share calculations. As a result of the 4.5% Senior Convertible
Note issued on September 27, 2019, the diluted earnings per share
was calculated based on the "if-converted" method.
|
LANNETT COMPANY,
INC.
|
RECONCILIATION OF
GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
(UNAUDITED)
|
(In thousands, except
percentages, share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2018
|
|
Net sales
|
Cost of
sales
|
Amortization
of intangibles
|
Gross
Profit
|
Gross
Margin %
|
R&D
expense
|
SG&A
expense
|
Restructuring
expenses
|
Asset impairment
charges
|
Operating
income (loss)
|
Other income
(loss)
|
Income (loss)
before income
tax
|
Income tax
expense
(benefit)
|
Net income
(loss)
|
Diluted
earnings
(loss) per
share (h)
|
GAAP
Reported
|
$
155,054
|
$
87,690
|
$
8,223
|
$
59,141
|
38%
|
$
9,810
|
$
20,588
|
$
1,022
|
369,499
|
$(341,778)
|
$(21,350)
|
$
(363,128)
|
$(75,600)
|
$
(287,528)
|
$
(7.65)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of Fixed
Assets step-up (a)
|
-
|
(1,335)
|
-
|
1,335
|
|
-
|
-
|
-
|
-
|
1,335
|
-
|
1,335
|
-
|
1,335
|
|
Amortization of
intangibles (b)
|
-
|
-
|
(8,223)
|
8,223
|
|
-
|
-
|
-
|
-
|
8,223
|
-
|
8,223
|
-
|
8,223
|
|
Restructuring
expenses (c)
|
-
|
-
|
-
|
-
|
|
-
|
-
|
(1,022)
|
-
|
1,022
|
-
|
1,022
|
-
|
1,022
|
|
Asset impairment
charges (d)
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
(369,499)
|
369,499
|
|
369,499
|
-
|
369,499
|
|
Non-cash interest
(e)
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
-
|
4,538
|
4,538
|
-
|
4,538
|
|
Other (f)
|
-
|
-
|
-
|
-
|
|
-
|
(1,340)
|
-
|
-
|
1,340
|
-
|
1,340
|
-
|
1,340
|
|
Tax adjustments
(g)
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
81,504
|
(81,504)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjusted
|
$
155,054
|
$
86,355
|
$
-
|
$
68,699
|
44%
|
$
9,810
|
$
19,248
|
$
-
|
$
-
|
$
39,641
|
$
(16,812)
|
$
22,829
|
$
5,904
|
$
16,925
|
$
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Relates to
depreciation of a fair value step-up in property, plant and
equipment related to the acquisition of Kremers Urban
Pharmaceuticals, Inc. ("KUPI")
|
(b)
|
Relates to
amortization of purchased intangible assets primarily related to
the acquisitions of KUPI and Silarx Pharmaceuticals,
Inc.
|
(c)
|
To exclude
expenses associated with the 2016 Restructuring Plan and, to a
lesser extent, the Cody Restructuring Plan
|
(d)
|
To exclude
asset impairment charges related to goodwill and other long-lived
assets
|
(e)
|
To exclude
non-cash interest expense associated with debt issuance
costs
|
(f)
|
To primarily
exclude depreciation on previously capitalized software integration
costs associated with the KUPI acquisition
|
(g)
|
The tax effect
of the pre-tax adjustments included at applicable tax
rates
|
(h)
|
The weighted
average share number for the three months ended September 30, 2018
is 37,586,327 for GAAP and 38,752,010 for the non-GAAP earnings
(loss) per share calculations
|
LANNETT COMPANY,
INC.
|
RECONCILIATION OF
NET LOSS TO ADJUSTED EBITDA (UNAUDITED)
|
($ in
thousands)
|
|
|
|
Three months
ended
|
|
September 30,
2019
|
|
|
Net
loss
|
$
(12,157)
|
|
|
Interest
expense
|
19,292
|
Depreciation and
amortization
|
12,789
|
Income tax
expense
|
1,787
|
EBITDA
|
21,711
|
|
|
Share-based
compensation
|
4,459
|
Inventory
write-down
|
3,510
|
Asset impairment
charges
|
1,618
|
Investment
income
|
(729)
|
Loss on
extinguishment of debt
|
2,145
|
Other non-operating
income
|
(934)
|
Restructuring
expenses
|
1,388
|
Restructuring
payments
|
(2,536)
|
Cody API business
(a)
|
2,356
|
Decommissioning of
Philadelphia sites (b)
|
989
|
Other(c)
|
1,091
|
Adjusted EBITDA
(Non-GAAP)
|
$
35,068
|
|
|
(a)
|
To exclude the
operating results of the ceased Cody API business
|
(b)
|
To exclude the costs
related to the decommissioning and shutdown of the Philadelphia
manufacturing and distribution sites
|
(c)
|
To primarily exclude
separation costs related to the Company's former Chief Financial
Officer
|
LANNETT COMPANY,
INC.
|
RECONCILIATION OF
GAAP TO NON-GAAP ADJUSTED INFORMATION (UNAUDITED)
|
($ in
millions)
|
|
|
|
Fiscal Year 2020
Guidance
|
|
|
|
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
Adjusted
|
|
|
|
|
|
|
Net
sales
|
$525 -
$545
|
|
-
|
|
$525 -
$545
|
Gross margin
percentage
|
approx. 33.5% to
35.5%
|
|
(6.5%)
|
(a)
|
approx. 40% to
42%
|
R&D
expense
|
$34 -
$36
|
|
-
|
|
$34 -
$36
|
SG&A
expense
|
$69 -
$72
|
|
($6)
|
(b)
|
$63 -
$66
|
Restructuring
expense
|
$2 -
$4
|
|
($2 -
$4)
|
(c)
|
-
|
Asset impairment
charges
|
$2
|
|
($2)
|
(d)
|
-
|
Interest and
other
|
$70 -
$72
|
|
($16)
|
(e)
|
$54 -
$56
|
Effective tax
rate
|
approx. 16% to
17%
|
|
6%
|
(f)
|
approx. 22% to
23%
|
Adjusted
EBITDA
|
N/A
|
|
N/A
|
|
$145 -
$160
|
Capital
expenditures
|
$20 -
$25
|
|
-
|
|
$20 -
$25
|
|
|
|
|
|
|
|
(a) The adjustment
primarily reflects amortization of purchased intangible assets
related to the acquisition of Kremers Urban Pharmaceuticals, Inc.
("KUPI")
|
(b) The adjustment
primarily excludes depreciation on previously capitalized software
integration costs associated with the KUPI acquisition
|
(c) To exclude
expenses associated with the Cody API Restructuring Plan
|
(d) This adjustment
primarily excludes an impairment charge associated with an
operating lease right-of-use asset
|
(e) The adjustment
primarily reflects non-cash interest expense associated with debt
issuance costs
|
(f) The adjustment
reflects the impact of tax credits and deductions relative to
expected annual pre-tax income
|
LANNETT COMPANY,
INC.
|
RECONCILIATION OF
NET INCOME (LOSS) TO ADJUSTED EBITDA (UNAUDITED)
|
($ in
millions)
|
|
|
|
|
|
Fiscal Year 2020
Guidance
|
|
Low
|
|
High
|
|
|
|
|
Net income
(loss)
|
$
(1.0)
|
|
$
6.0
|
|
|
|
|
Interest
expense
|
70.0
|
|
72.0
|
Depreciation and
amortization
|
56.0
|
|
57.0
|
Income
taxes
|
-
|
|
2.0
|
EBITDA
|
125.0
|
|
137.0
|
|
|
|
|
Share-based
compensation
|
9.0
|
|
10.0
|
Inventory
write-down
|
7.0
|
|
8.0
|
Separation
costs
|
1.0
|
|
1.0
|
Cody API
business
|
2.0
|
|
2.0
|
Inpairment
|
2.0
|
|
2.0
|
Restructuring
expenses
|
2.0
|
|
4.0
|
Restructuring
payments
|
(3.0)
|
|
(4.0)
|
Adjusted EBITDA
(Non-GAAP)
|
$ 145.0
|
|
$ 160.0
|
LANNETT COMPANY,
INC.
|
NET SALES BY
MEDICAL INDICATION
|
|
|
|
|
|
Three months
ended
|
($ in
thousands)
|
September
30,
|
Medical
Indication
|
2019
|
|
2018
|
Analgesic
|
$
1,884
|
|
$
1,829
|
Anti-Psychosis
|
28,034
|
|
10,889
|
Cardiovascular
|
21,606
|
|
21,770
|
Central Nervous
System
|
19,257
|
|
14,286
|
Endocrinology
|
-
|
|
53,878
|
Gastrointestinal
|
16,962
|
|
17,594
|
Infectious
Disease
|
11,895
|
|
4,480
|
Migraine
|
9,143
|
|
9,737
|
Respiratory/Allergy/Cough/Cold
|
2,707
|
|
3,584
|
Urinary
|
435
|
|
1,541
|
Other
|
9,861
|
|
10,805
|
Contract
manufacturing revenue
|
5,558
|
|
4,661
|
Net
Sales
|
$ 127,342
|
|
$ 155,054
|
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SOURCE Lannett Company, Inc.