PHILADELPHIA, Nov. 4, 2015 /PRNewswire/ -- Lannett Company, Inc. (NYSE: LCI) today reported financial results for its fiscal 2016 first quarter ended September 30, 2015.
For the fiscal 2016 first quarter, net sales increased to $106.4 million from $93.4 million in last year’s first quarter. Gross profit was $77.4 million, or 73% of net sales, compared with $71.6 million, or 77% of net sales. Research and development expenses increased to $6.5 million from $6.4 million for the fiscal 2015 first quarter. Selling, general and administrative (SG&A) expenses were $15.5 million compared with $10.5 million. Acquisition-related expenses increased to $3.9 million from $70 thousand in the comparable prior-year period. Operating income was $51.4 million compared with $54.7 million. Net income attributable to Lannett was $33.2 million, or $0.89 per diluted share, compared with $34.9 million, or $0.94 per diluted share, for the fiscal 2015 first quarter.
On a Non-GAAP adjusted basis, gross profit was $77.8 million, or 73% of net sales, compared with $71.6 million, or 77% of net sales, for the fiscal 2015 first quarter. Adjusted SG&A expenses were $13.9 million compared with $10.5 million. Adjusted operating income increased to $57.3 million from $54.7 million for the prior year first quarter. Adjusted net income attributable to Lannett increased to $37.1 million, or $0.99 per diluted share, from $35.0 million, or $0.95 per diluted share, for the fiscal 2015 first quarter.
“A key driver of our strong first quarter performance was higher sales volumes across a number of therapeutic product categories,” said Arthur Bedrosian, chief executive officer of Lannett. “We have now reported fifteen consecutive quarters in which net sales and adjusted EPS exceeded the comparable prior-year period.
“With respect to our acquisition initiatives, Silarx is proving to be a significant contributor to the company portfolio with two recent product approvals. Additionally, the pending Kremers Urban acquisition is on track and we anticipate closing the deal shortly.”
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 the fiscal 2016 first quarter ended September 30, 2015. The conference call will be available to interested parties by dialing 888-895-5271 from the U.S. or Canada, or 847-619-6547 from international locations, passcode 41121801. 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 net income attributable to the Company, and its components, as well as Adjusted earnings per diluted share, which are financial measures that are not prepared in conformity with United States generally accepted accounting principles (U.S. GAAP). 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.
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