(Source: Business Wire)
Lannett Company, Inc. (NYSE Amex: LCI) today reported financial results for the fiscal 2009 fourth quarter and full year ended June 30, 2009.
For fiscal 2009, net sales rose 64 percent to $119.0 million compared with $72.4 million for fiscal 2008. Gross profit was $45.2 million compared with $16.3 million for the same period in the prior year. Research and development (R&D) expenses increased to $8.4 million from $5.2 million in the comparable prior year period. Selling, general and administrative (SG&A) expenses increased to $26.1 million from $16.6 million in the same period last year. Net income was $6.5 million, or $0.27 per diluted share, compared with a net loss of $2.3 million, or $0.10 per share, for the prior year.
"Our solid performance in fiscal 2009 was related to strong sales of the company's key products, as well as increased demand for our existing products," said Arthur Bedrosian, president and chief executive officer of Lannett. "Our high-quality manufacturing standards continued to allow us to supply the U.S. market with important medications and alleviate market shortages."
Bedrosian added that Lannett's cash position grew to nearly $26 million from $15 million at the end of the previous quarter, further strengthening the company's balance sheet and providing it with resources for the potential expansion of capabilities and/or acquisition of complementary products and technologies.
For the fourth quarter of fiscal 2009, net sales were $35.4 million compared with $20.7 million for the same period of the prior year. Gross profit was $13.6 million, compared with $2.9 million for the same period in the prior year. R&D expenses increased to $2.7 million from $1.5 million in the comparable prior year period. SG&A expenses increased to $6.9 million compared with $4.1 million in the same period last year. Net income was $2.4 million, or $0.10 per diluted share, compared with a net loss of $278,000, or $0.01 per share, which included an income tax benefit of $2.6 million, for the prior year fourth quarter.
The company recorded income tax expense for 2009 of approximately $4.1 million, but paid only $250,000 due to the reversal of certain deferred tax assets.
Conference Call Information and Forward-Looking Statements
On Wednesday, September 9, 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 fourth quarter and full year ended June 30, 2009. The conference call will be available to interested parties by dialing 800-446-1671 from the U.S. or Canada, or 847-413-3362 from international locations, passcode 25364097. 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, 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 Three months ended Fiscal Year ended June 30, June 30, 2009 2008 2009 2008 (Unaudited) (Unaudited) Net sales $ 35,448,874 $ 20,748,799 $ 119,002,215 $ 72,403,283 Cost of sales 20,876,050 17,392,501 71,272,859 54,080,947 Amortization of intangible assets 448,667 446,166 1,787,167 1,784,664 Product Royalties 510,846 39,929 697,720 236,601 Gross profit 13,613,311 2,870,203 45,244,469 16,301,071 Research and development expenses 2,741,967 1,457,381 8,427,135 5,172,715 Selling, general, and administrative expenses 6,942,905 4,095,829 26,059,104 16,552,859 Loss (gain) on sale of investments 6,718 4,338 (53,524 ) 4,338 Loss on sale of assets 31,124 1,693 30,885 1,693 Operating income (loss) 3,890,597 (2,689,038 ) 10,780,869 (5,430,534 ) Other expense (69,110 ) (93,048 ) (112,563 ) (213,227 ) Income (loss) before income tax expense (benefit) and minority interest 3,821,487 (2,782,086 ) 10,668,306 (5,643,761 ) Income tax expense (benefit) 1,393,983 (2,554,889 ) 4,090,716 (3,376,011 ) Minority interest in Cody LCI Realty, LLC, net of taxes 6,968 50,309 43,345 50,309 Net income (loss) $ 2,420,536 $ (277,506 ) $ 6,534,245 $ (2,318,059 ) Earnings (loss) per common share: Basic $ 0.10 $ (0.01 ) $ 0.27 $ (0.10 ) Diluted $ 0.10 $ (0.01 ) $ 0.27 $ (0.10 ) Weighted average number of shares outstanding: Basic 24,515,756 24,227,181 24,447,016 24,227,181 Diluted 24,844,964 24,227,181 24,587,378 24,227,181 -------------------------------------------------------------------------------
LANNETT COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30,2009 June 30,2008 (Unaudited) ASSETS Current Assets Cash and cash equivalents $ 25,832,456 $ 6,256,712 Investment securities - available for sale 347,921 354,155 Trade accounts receivable (net of allowance of $132,000 and $207,151, respectively) 29,945,748 34,114,982 Inventories, net 16,195,361 11,617,258 Interest receivable 90,425 51,781 Prepaid taxes - 1,598,937 Deferred tax assets 4,296,929 6,997,935 Other current assets 602,335 591,415 Total Current Assets 77,311,175 61,583,175 Property, plant and equipment 41,431,158 39,996,008 Less accumulated depreciation (18,533,773 ) (15,261,905 ) 22,897,385 24,734,103 Construction in progress 591,685 458,046 Investment securities - available for sale 801,748 2,145,980 Intangible assets (product rights) - net of accumulated amortization 9,118,710 10,361,835 Deferred tax assets 13,757,545 14,200,771 Other assets 98,873 195,354 Total Assets $ 124,577,121 $ 113,679,264 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Current Liabilities Accounts payable $ 16,805,468 $ 13,085,772 Accrued expenses 1,842,434 1,807,628 Accrued payroll and payroll related 5,150,104 644,155 Deferred Revenue - 982,668 Income taxes payable 711,073 - Current portion of long-term debt 435,386 791,912 Rebates, chargebacks and returns payable 13,734,540 18,326,417 Total Current Liabilities 38,679,005 35,638,552 Long-term debt, less current portion 7,703,382 8,186,922 Unearned grant funds 500,000 500,000 Other long-term liabilities 47,111 32,001 Total Liabilities 46,929,498 44,357,475 Commitment and Contingencies Minority Interest in Cody LCI Realty, LLC, net of taxes 93,654 50,309 SHAREHOLDERS' EQUITY Common stock - authorized 50,000,000 shares, par value $0.001; issued and outstanding, 24,517,696 and 24,283,963 shares, respectively 24,518 24,284 Additional paid in capital 76,250,309 74,497,100 Retained earnings / (accumulated deficit) 1,743,565 (4,790,680 ) Accumulated other comprehensive income 24,751 9,722 78,043,143 69,740,426 Less: Treasury stock at cost - 82,228 and 74,970 shares, respectively (489,174 ) (468,946 ) TOTAL SHAREHOLDERS' EQUITY 77,553,969 69,271,480 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 124,577,121 $ 113,679,264 -------------------------------------------------------------------------------
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