Lantheus Reports Fourth Quarter and Full Year 2023 Financial Results
Lantheus Holdings, Inc. reported strong financial results for the fourth quarter and full year 2023, with worldwide revenue reaching $354.0 million and $1.3 billion, respectively. GAAP net income was $103.4 million and $326.7 million for the same periods. Adjusted fully diluted net income per share saw significant growth. The Company provided revenue and earnings guidance for the first quarter and full year 2024, showcasing a positive outlook.
Positive
Strong worldwide revenue of $354.0 million for Q4 2023 and $1.3 billion for full year 2023
GAAP net income of $103.4 million for Q4 2023 and $326.7 million for full year 2023
Adjusted fully diluted net income per share increased to $1.75 for Q4 2023 and $6.23 for full year 2023
Positive free cash flow of $100.2 million for Q4 2023 and $258.7 million for full year 2023
Company provided optimistic revenue and adjusted diluted earnings per share guidance for Q1 and FY 2024
The reported financial results from Lantheus Holdings, Inc. demonstrate a robust performance with significant year-over-year revenue growth. The increase of 34.5% in Q4 and 38.6% for the full year suggests a strong market demand for the company's radiopharmaceutical products. The transition from a net loss in Q4 2022 to a substantial net income in the same quarter of 2023 indicates effective cost management and possibly successful product launches or expanded market penetration. The guidance for 2024 suggests a continuation of revenue growth, albeit at a slower pace, which could reflect market saturation or increased competition. Investors should note the slight decrease in free cash flow, which may indicate higher capital expenditures or changes in working capital management.
Lantheus Holdings' performance is particularly noteworthy in the context of the radiopharmaceutical industry, which is characterized by high barriers to entry due to regulatory requirements and the need for specialized knowledge. The company's ability to deliver record revenues and earnings is indicative of a strong competitive position and effective execution of its business strategy. However, the reported decrease in free cash flow year-over-year, despite rising revenues, deserves further analysis to understand underlying factors such as investment in research and development or potential increases in operational costs. The provided guidance for 2024, with projected increases in both revenue and adjusted EPS, reflects management's confidence in the company's growth trajectory, but it is essential to monitor how this aligns with broader industry trends and the competitive landscape.
The impressive financial results reported by Lantheus Holdings underscore the increasing importance of radiopharmaceuticals in clinical settings for disease diagnosis and treatment. The significant growth in revenue and earnings may be attributed to the successful adoption of their products in clinical practice and potential advancements in their pipeline. The company's focus on 'Finding, Fighting and Following' disease resonates well with current healthcare trends towards personalized medicine and targeted therapies. The milestone achievement for RELISTOR, a medication used to treat opioid-induced constipation, suggests that the company is not only expanding its radiopharmaceutical footprint but also diversifying its portfolio. This diversification strategy could mitigate risk and contribute to the company's financial resilience.
02/22/2024 - 07:00 AM
Worldwide revenue of $354.0 million and $1.3 billion for the fourth quarter and full year 2023 GAAP net income of $103.4 million and $326.7 million for the fourth quarter and full year 2023 GAAP fully diluted net income per share of $1.47 and $4.65 for the fourth quarter and full year 2023 Adjusted fully diluted net income per share of $1.75 and $6.23 for the fourth quarter and full year 2023 Net cash provided by operating activities was $112.3 million and $305.3 million for the fourth quarter and full year 2023 and free cash flow of $100.2 million and $258.7 million for the fourth quarter and full year 2023 The Company provides first quarter and full year 2024 revenue and adjusted diluted earnings per share guidance BEDFORD, Mass., Feb. 22, 2024 (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 fourth quarter and full year ended December 31, 2023.
The Company’s worldwide revenue for the fourth quarter of 2023 totaled $354.0 million , which includes a $15.0 million RELISTOR milestone achievement, compared with $263.2 million for the fourth quarter of 2022, representing an increase of 34.5% over the prior year period. Full year 2023 worldwide revenues were $1.3 billion , compared with $935.1 million for the full year 2022, representing an increase of 38.6% over the prior year period.
The Company’s fourth quarter 2023 GAAP net income was $103.4 million , or $1.47 per fully diluted share, as compared to GAAP net loss of $119.2 million , or $1.74 per fully diluted share for the fourth quarter of 2022. Full year 2023 GAAP net income was $326.7 million , or $4.65 per fully diluted share, as compared to GAAP net income of $28.1 million , or $0.40 per fully diluted share for the full year 2022.
The Company’s fourth quarter 2023 adjusted fully diluted net income per share, or earnings per share (“EPS”), were $1.75 , as compared to $1.37 for the fourth quarter of 2022, representing an increase of approximately $0.38 or 28.0% from the prior year period. The Company’s full year 2023 adjusted fully diluted EPS, were $6.23 , as compared to $4.22 for the full year 2022, representing an increase of approximately $2.01 or 47.7% from the prior year period.
Lastly, net cash provided by operating activities was $112.3 million and $305.3 million for the fourth quarter and full year 2023. Free Cash Flow was $100.2 million for the fourth quarter of 2023, as compared to $100.6 million for the fourth quarter of 2022, representing a decrease of approximately $0.4 million from the prior year period. Full year 2023 free cash flow was $258.7 million , as compared to $263.4 million for the full year 2022, representing a decrease of approximately $4.7 million from the prior year period.
“2023 was another stellar year at Lantheus, during which the Company delivered record revenues, earnings, cash flows and patient impact as we continued to advance our position as the leading radiopharmaceutical-focused company,” said Mary Anne Heino, Chief Executive Officer of Lantheus. “We are entering 2024 on a strong foundation and will continue to leverage our deep expertise in radiopharmaceuticals and our significant capital resources to advance and expand our pipeline.”
The Company provides its guidance for the first quarter and full year 2024 as follows:
Guidance Issued February 22, 2024 1Q 2024 Revenue $347 million - $355 million 1Q 2024 Adjusted Fully Diluted EPS $1.50 - $1.54 Guidance Issued February 22, 2024 FY 2024 Revenue $1.41 billion - $1.44 5 billionFY 2024 Adjusted Fully Diluted EPS $6.50 - $6.70
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, February 22, 2024, 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,” “prospect,” “should,” “target,” “will,” “would” and other similar terms. Such forward-looking statements include our guidance for fiscal year 2024 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; (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 materials and key components; (iv) our strategies, future prospects, and projected growth, including revenue related to our collaboration agreements with POINT Biopharma Global Inc. (“POINT”), including our ability to obtain FDA approval for PNT2002 and PNT2003; (v) our ability to satisfy our obligations under our existing clinical development partnerships using MK-6240 as a research tool and under the license agreement through which we have rights to MK-6240, and to further develop and commercialize it as an approved product; (vi) our ability to successfully execute on our agreements with Perspective Therapeutics, Inc. (“Perspective”), including finalizing the license agreements in the event we exercise our options to do so, and satisfying the closing conditions for the sale of the Somerset, NJ manufacturing facility and related assets, the value of our current and any future equity interest in Perspective, and Perspective’s ability to successfully develop its alpha-particle therapy and innovative platform technology; (vii) 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; (viii) our ability to identify and acquire or in-license additional radiopharmaceutical therapeutic and diagnostic product opportunities in oncology and other strategic areas to grow our pipeline of products; and (ix) 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 December 31, Year Ended December 31, 2023 2022 2023 2022 Revenues $ 353,999 $ 263,166 $ 1,296,429 $ 935,061 Cost of goods sold 124,130 95,995 586,886 353,358 Gross profit 229,869 167,171 709,543 581,703 Operating expenses Sales and marketing 35,264 26,983 141,736 100,243 General and administrative 40,295 39,639 125,458 133,584 Research and development 16,824 272,226 77,707 311,681 Total operating expenses 92,383 338,848 344,901 545,508 Operating income (loss) 137,486 (171,677 ) 364,642 36,195 Interest expense 5,041 2,581 20,019 7,185 Loss on extinguishment of debt — 588 — 588 Other (income) loss (5,958 ) 1,397 (66,320 ) 1,703 Income (loss) before income taxes 138,403 (176,243 ) 410,943 26,719 Income tax expense (benefit) 35,023 (57,058 ) 84,282 (1,348 ) Net income (loss) $ 103,380 $ (119,185 ) $ 326,661 $ 28,067 Net income (loss) per common share: Basic $ 1.51 $ (1.74 ) $ 4.79 $ 0.41 Diluted $ 1.47 $ (1.74 ) $ 4.65 $ 0.40 Weighted-average common shares outstanding: Basic 68,499 68,500 68,266 68,487 Diluted 70,092 68,500 70,239 70,671
Lantheus Holdings, Inc. Consolidated Revenues Analysis (in thousands – unaudited) Three Months Ended December 31, Year Ended December 31, 2023 2022 % Change 2023 2022 % Change PYLARIFY $ 229,884 $ 160,642 43.1 % $ 851,303 $ 527,405 61.4 % Other radiopharmaceutical oncology 747 919 (18.7 )% 3,130 4,102 (23.7 )% Total radiopharmaceutical oncology 230,631 161,561 42.8 % 854,433 531,507 60.8 % DEFINITY 73,080 63,619 14.9 % 279,768 244,993 14.2 % TechneLite 21,517 24,725 (13.0 )% 87,370 88,864 (1.7 )% Other precision diagnostics 5,978 6,022 (0.7 )% 22,980 22,825 0.7 % Total precision diagnostics 100,575 94,366 6.6 % 390,118 356,682 9.4 % Strategic Partnerships and other revenue 22,793 7,239 214.9 % 51,878 46,872 10.7 % Total revenues $ 353,999 $ 263,166 34.5 % $ 1,296,429 $ 935,061 38.6 %
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, 2023 2022 2023 2022 Net income (loss) $ 103,380 $ (119,185 ) $ 326,661 $ 28,067 Stock and incentive plan compensation 14,172 8,124 50,507 29,262 Amortization of acquired intangible assets 11,308 8,307 46,440 33,225 Campus consolidation costs 679 — 3,864 — Contingent consideration fair value adjustments 200 9,300 (9,275 ) 34,700 Non-recurring refinancing related fees 5 70 221 70 Non-recurring fees (a) — — (54,523 ) (384 ) Extinguishment of debt — 588 — 588 Strategic collaboration and license costs — 265,856 — 266,356 Acquisition-related costs 169 169 676 1,037 Impairment of long-lived assets — — 138,050 — ARO Acceleration and other related costs 1,187 (968 ) 2,232 2,119 Other 531 583 2,725 694 Income tax effect of non-GAAP adjustments(b) (8,950 ) (76,227 ) (70,043 ) (97,739 ) Adjusted net income $ 122,681 $ 96,617 $ 437,535 $ 297,995 Adjusted net income, as a percentage of revenues 34.7 % 36.7 % 33.7 % 31.9 %
Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net income (loss) per share - diluted $ 1.47 $ (1.74 ) $ 4.65 $ 0.40 Stock and incentive plan compensation 0.20 0.12 0.72 0.41 Amortization of acquired intangible assets 0.16 0.12 0.66 0.47 Campus consolidation costs 0.01 — 0.06 — Contingent consideration fair value adjustments — 0.13 (0.13 ) 0.49 Non-recurring refinancing related fees — — — — Non-recurring fees (a) — — (0.78 ) (0.01 ) Extinguishment of debt — 0.01 — 0.01 Strategic collaboration and license costs — 3.76 — 3.77 Acquisition-related costs — — 0.01 0.01 Impairment of long-lived assets — — 1.97 — ARO Acceleration and other related costs 0.02 (0.01 ) 0.03 0.03 Other(c) 0.01 0.06 0.04 0.01 Income tax effect of non-GAAP adjustments(b) (0.12 ) (1.08 ) (1.00 ) (1.37 ) Adjusted net income per share - diluted $ 1.75 $ 1.37 $ 6.23 $ 4.22 Weighted-average common shares outstanding - diluted 70,092 70,642 70,239 70,671
(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.
(c) 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.
Lantheus Holdings, Inc. Reconciliation of Free Cash Flow (in thousands – unaudited) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net cash provided by operating activities $ 112,287 $ 105,352 $ 305,260 $ 281,781 Capital expenditures (12,069 ) (4,724 ) (46,555 ) (18,347 ) Free cash flow $ 100,218 $ 100,628 $ 258,705 $ 263,434 Net cash (used in) provided by investing activities $ (12,069 ) $ (264,724 ) $ 5,939 $ (276,547 ) Net cash (used in) provided by financing activities $ (450 ) $ 317,840 $ (13,062 ) $ 311,691
Lantheus Holdings, Inc. Condensed Consolidated Balance Sheets (in thousands – unaudited) December 31, 2023 December 31, 2022 Assets Current assets Cash and cash equivalents $ 713,656 $ 415,652 Accounts receivable, net 284,292 213,397 Inventory 64,029 35,475 Other current assets 16,683 13,092 Assets held for sale 7,159 — Total current assets 1,085,819 677,616 Property, plant and equipment, net 146,697 122,166 Intangibles, net 151,985 315,285 Goodwill 61,189 61,189 Deferred tax assets, net 150,198 110,647 Other long-term assets 55,261 34,355 Total assets $ 1,651,149 $ 1,321,258 Liabilities and stockholders’ equity Current liabilities Current portion of long-term debt and other borrowings $ 823 $ 354 Accounts payable 41,189 20,563 Short-term contingent liability — 99,700 Accrued expenses and other liabilities 145,338 127,084 Total current liabilities 187,350 247,701 Asset retirement obligations 22,916 22,543 Long-term debt, net and other borrowings 561,670 557,712 Other long-term liabilities 63,321 46,155 Total liabilities 835,257 874,111 Total stockholders’ equity 815,892 447,147 Total liabilities and stockholders’ equity $ 1,651,149 $ 1,321,258
Contacts: Mark Kinarney Vice President, Investor Relations 978-671-8842ir@lantheus.com
Melissa Downs Senior Director, External Communications 646-975-2533media@lantheus.com
What was Lantheus Holdings, Inc.'s worldwide revenue for the fourth quarter of 2023?
Lantheus Holdings, Inc.'s worldwide revenue for the fourth quarter of 2023 was $354.0 million.
What was the GAAP net income for Lantheus Holdings, Inc. for the full year 2023?
Lantheus Holdings, Inc.'s GAAP net income for the full year 2023 was $326.7 million.
What was the adjusted fully diluted net income per share for Lantheus Holdings, Inc. in the fourth quarter of 2023?
Lantheus Holdings, Inc.'s adjusted fully diluted net income per share for the fourth quarter of 2023 was $1.75.
What was Lantheus Holdings, Inc.'s free cash flow for the full year 2023?
Lantheus Holdings, Inc.'s free cash flow for the full year 2023 was $258.7 million.
What guidance did Lantheus Holdings, Inc. provide for the first quarter of 2024?
Lantheus Holdings, Inc. provided revenue guidance of $347 million - $355 million and adjusted fully diluted EPS guidance of $1.50 - $1.54 for the first quarter of 2024.
What was the revenue guidance provided by Lantheus Holdings, Inc. for the full year 2024?
Lantheus Holdings, Inc. provided revenue guidance of $1.41 billion - $1.445 billion for the full year 2024.