(Source: Business Wire)
Lannett Company, Inc. (NYSE Amex: LCI) today reported financial results for the third quarter and first nine months of fiscal 2009 ended March 31, 2009.
For the third quarter of fiscal 2009, net sales grew 73 percent to $28.8 million from $16.6 million for the third quarter of fiscal 2008. Net income was $1.3 million, or $0.05 per diluted share, versus a net loss of $1.3 million, or $0.05 per share, for the prior year third quarter.
"Our third quarter financial performance reflected strong sales of several key products as well as growth of our base business products," said Arthur Bedrosian, president and chief executive officer of Lannett. "We expect our future performance to benefit from increased sales of our existing product line as well as our pain management products, due to the current market shortage. In addition, we anticipate lower SG&A expenses following resolution of a litigation matter in March."
Gross profit for the fiscal 2009 third quarter increased to $11.6 million from $3.9 million for the same period in the prior year. Research and development expenses were $2.0 million compared with $1.5 million in the comparable prior year period. Selling, general and administrative expenses increased to $7.5 million from $4.2 million in the same period last year, largely due to legal expenses associated with current patent challenge litigation and, to a lesser extent, severance costs related to the departure of an executive.
For the first nine months of fiscal 2009, net sales grew 62 percent to $83.6 million from $51.7 million for the first nine months of fiscal 2008. Gross profit more than doubled to $31.6 million from $13.4 million for the same period in the prior year. Research and development expenses were $5.7 million compared with $3.7 million in the comparable prior year period. Selling, general and administrative expenses increased to $19.1 million from $12.5 million in the same period last year, largely due to legal expenses associated with current patent challenge litigation and, to a lesser extent, severance costs related to the departure of an executive. Net income was $4.1 million, or $0.17 per diluted share, versus a net loss of $2.0 million, or $0.08 per share, for the prior year period.
Conference Call Information and Forward-Looking Statements
On Tuesday, May 12, 2009, the company will host a conference call with interested parties beginning at 4:30 p.m. ET to review its results of operations for the third quarter ended March 31, 2009. The conference call will be available to interested parties by dialing 800-297-6395 from the U.S. or Canada, or 847-944-7317 from international locations, passcode 24514434. This call is also available through a live, listen-only audio Web broadcast at www.lannett.com, where it will be archived and accessible for one year.
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 and 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.
About Lannett Company, Inc.
Lannett Company, founded in 1942, develops, manufactures, packages, markets and distributes generic pharmaceutical products for a wide range of indications. 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, the company's future performance benefiting from increased sales of its existing product line and its pain management products, and anticipated lower SG&A expenses following resolution of a litigation matter in March, 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, 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.
LANNETT COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three months ended Nine months ended March 31, March 31, 2009 2008 2009 2008 Net sales $ 28,761,316 $ 16,579,512 $ 83,553,341 $ 51,654,484 Cost of sales 16,564,244 12,276,526 50,396,809 36,688,446 Amortization of intangible assets 446,167 446,166 1,338,500 1,338,498 Product royalties 143,877 (40,674 ) 186,874 196,672 Gross profit 11,607,028 3,897,494 31,631,158 13,430,868 Research and development expenses 1,981,338 1,516,904 5,685,168 3,715,334 Selling, general, and administrative expenses 7,491,583 4,222,103 19,116,199 12,457,030 Gain on sale of assets 38,472 - 60,481 - Operating income (loss) 2,172,579 (1,841,513 ) 6,890,272 (2,741,496 ) Other income (expense) 2,537 (29,786 ) (43,453 ) (120,179 ) Income (loss) before income tax expense (benefit) and minority interest 2,175,116 (1,871,299 ) 6,846,819 (2,861,675 ) Income tax expense (benefit) 851,310 (615,454 ) 2,696,733 (821,122 ) Minority interest in Cody LCI Realty, LLC (9,324 ) - (36,377 ) - Net income (loss) $ 1,314,482 $ (1,255,845 ) $ 4,113,709 $ (2,040,553 ) Income (loss) per share: Basic $ 0.05 $ (0.05 ) $ 0.17 $ (0.08 ) Diluted $ 0.05 $ (0.05 ) $ 0.17 $ (0.08 ) Shares used to calculate income (loss) per share: Basic 24,502,629 24,268,449 24,424,187 24,208,830 Diluted 24,756,041 24,268,449 24,524,822 24,208,830 -------------------------------------------------------------------------------
LANNETT COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) March 31, June 30, 2009 2008 Assets: Current Assets: Cash and cash equivalents $ 15,435,756 $ 6,256,712 Short term investments - 354,155 Trade accounts receivable, net 29,215,192 34,114,982 Inventories, net 16,031,235 11,617,258 Interest receivable 129,459 51,781 Prepaid taxes 1,156,472 1,598,937 Deferred tax assets 4,150,938 6,997,935 Other current assets 985,517 591,415 Total current assets 67,104,569 61,583,175 Property, plant, and equipment, net 22,789,596 24,734,103 Investment securities - available-for-sale 1,486,772 2,145,980 Deferred tax assets 13,997,628 14,200,771 Intangible assets, net 9,577,063 10,361,835 Construction in progress 482,340 458,046 Other assets 168,269 195,354 Total Assets $ 115,606,237 $ 113,679,264 Liabilities and Shareholders' Equity: Current liabilities $ 32,252,638 $ 35,638,552 Long-term debt, less current portion 7,886,439 8,186,922 Other long term liabilities 547,862 532,001 Minority interest 86,685 50,309 Shareholders' equity 74,832,613 69,271,480 Total Liabilities and Shareholders' Equity $ 115,606,237 $ 113,679,264 -------------------------------------------------------------------------------
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