NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Lantheus Holdings, Inc. (the “Company”) (NASDAQ: LNTH), parent company of Lantheus Medical Imaging, Inc. (“LMI”), a global leader in the development, manufacture and commercialization of innovative diagnostic imaging agents and products, today reported financial results for its second quarter ended June 30, 2017.
The Company’s worldwide revenues for the second quarter of 2017 totaled $88.8 million, which includes the impact of the one-time $5.0 million up-front payment from GE Healthcare under the flurpiridaz F 18 collaboration and license agreement. This represents an increase of 13.9% compared to $78.0 million for the prior year period, and exceeds second quarter guidance of $79 million to $82 million, which excluded the impact of the up-front payment received from GE Healthcare. Revenue results were also driven by 19.9% growth in worldwide sales of DEFINITY®, 5.8% growth in worldwide sales of TechneLite® and 17.0% growth in worldwide sales of Xenon compared to the second quarter of 2016.
Net income for the second quarter of 2017 totaled $13.6 million, or $0.35 per diluted share, compared to $7.4 million, or $0.24 per diluted share, for the second quarter of 2016. The increase is primarily attributable to the up-front payment from GE Healthcare as well as DEFINITY revenue growth and lower interest expense related to the refinancing of debt in March 2017. This was partially offset by increased operating expenses and the divestiture of the Company’s Australian radiopharmacy business during the third quarter of 2016.
The Company’s second quarter 2017 Adjusted EBITDA (as outlined in the GAAP to non-GAAP reconciliation provided below) was $27.9 million, or 31.5% of revenues, which includes the up-front payment from GE Healthcare. This compares to $21.4 million, or 27.5% of revenues, for the prior year period, and exceeded the previously provided second quarter guidance of $18 million to $20 million, which excluded the impact of the up-front payment received from GE Healthcare. In addition to the up-front payment under the GE Healthcare agreement, second quarter results were driven by DEFINITY worldwide revenue growth, partially offset by sales and marketing expenses attributable to sales growth in DEFINITY and costs related to strategic initiatives.
“For the quarter, we delivered strong financial results, exceeding our guidance,” commented Mary Anne Heino, President and CEO. “Steady growth of our flagship imaging agent, DEFINITY, complemented by performance of our nuclear medicine products portfolio, continues to drive our results. Therefore, we are updating our full-year guidance. Our priority for the remainder of the year is to build upon our first half success as we continue to invest in strategic initiatives for long-term growth.”
Outlook
The Company has increased its full-year 2017 worldwide revenue guidance range to $318 million to $322 million from $313 million to $318 million, and expects worldwide revenues in the range of $75 million to $78 million for the third quarter of 2017.
The Company has also increased its full-year 2017 guidance range for Adjusted EBITDA, as described in the GAAP to non-GAAP reconciliation provided later in this release, to $82 million to $85 million from $80 million to $83 million, measuring 25.5% to 26.7% of worldwide revenues. For the third quarter of 2017, the Company expects Adjusted EBITDA in the range of $17 million to $19 million.
The full-year guidance for both revenue and Adjusted EBITDA excludes the impact of the up-front payment received from GE Healthcare.
The Company’s guidance for worldwide revenues and Adjusted EBITDA are forward-looking statements. They are subject to various risks and uncertainties that could cause the Company’s actual results to differ materially from guidance. Forward-looking statements are not predictions of the Company’s actual performance. See the cautionary information about forward-looking statements in the “Safe-Harbor Statement” section of this press release.
