(Source: Business Wire)
Lannett Company, Inc. (NYSE AMEX:LCI) today reported financial results
for the fiscal 2010 first quarter ended September 30, 2009.
For the first quarter of fiscal 2010, net sales grew to $31.4 million,
compared with $25.6 million for the first quarter of fiscal 2009. Gross
profit increased to $11.5 million from $9.0 million for the same period
in the prior year. Net income more than doubled to $2.9 million, or
$0.11 per diluted share, from $1.2 million, or $0.05 per share, for the
prior year first quarter.
"Our first-quarter performance reflected strong sales of our key
products and increases in our pain management products," said Arthur
Bedrosian, president and chief executive officer of Lannett. "In
addition, our adherence to current Good Manufacturing Practice (cGMP)
standards continue to help us capture market share from our competitors."
"We increased our investment in research and development to add to our
growing product offering and further diversify our portfolio," Bedrosian
added.
Research and development expenses for the fiscal 2010 first quarter were
$3.0 million compared with $1.9 million in the comparable prior year
period. Selling, general and administrative expenses declined to $3.8
million from $4.9 million in the same period last year.
Conference Call Information and Forward-Looking Statements
On Monday, November 9, 2009, the company will host a conference call at
4:30 p.m. ET to review its results of operations for the first quarter
ended September 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 25765256. The
conference call will also be available through a live audio Internet
broadcast at www.lannett.com. The
call will be archived and accessible at this site for approximately two
weeks.
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, investing in R&D
to add to the company's growing product offering and further diversify
its portfolio, 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
September 30,
2009 2008
Net sales $ 31,434,989 $ 25,567,653
Cost of sales 19,012,318 16,120,195
Amortization of intangible assets 448,667 446,166
Product royalties 439,774 -
Gross profit 11,534,230 9,001,292
Research and development expenses 3,027,841 1,863,113
Selling, general, and administrative expenses 3,763,161 4,949,144
Loss on sale of investments - 4,931
Operating income 4,743,228 2,184,104
Interest income 23,099 45,767
Interest expense (70,413 ) (66,209 )
(47,314 ) (20,442 )
Income before income tax expense 4,695,914 2,163,662
Income tax expense 1,827,650 919,990
Consolidated net income 2,868,264 1,243,672
Less net income from noncontrolling interest (10,894 ) (17,507 )
Net income attributable to Lannett Company, Inc. $ 2,857,370 $ 1,226,165
Earnings per common share - Lannett Company, Inc.:
Basic $ 0.12 $ 0.05
Diluted $ 0.11 $ 0.05
Weighted average number of shares outstanding:
Basic 24,533,562 24,306,488
Diluted 25,054,661 24,382,951
-------------------------------------------------------------------------------
LANNETT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, 2009 June 30, 2009
ASSETS
Current Assets
Cash and cash equivalents $ 23,611,254 $ 25,832,456
Investment securities - available for sale 747,448 347,921
Trade accounts receivable (net of allowance of $132,000 and $132,000, respectively) 30,891,483 29,945,748
Inventories, net 17,010,224 16,195,361
Interest receivable 92,770 90,425
Deferred tax assets 4,346,311 4,296,929
Other current assets 541,848 602,335
Total Current Assets 77,241,338 77,311,175
Property, plant and equipment 41,771,570 41,431,158
Less accumulated depreciation (19,242,024 ) (18,533,773 )
22,529,546 22,897,385
Construction in progress 1,318,534 591,685
Investment securities - available for sale 398,470 801,748
Intangible assets (product rights) - net of accumulated amortization 9,160,357 9,118,710
Deferred tax assets 13,321,236 13,757,545
Other assets 89,846 98,873
Total Assets $ 124,059,327 $ 124,577,121
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Current Liabilities
Accounts payable $ 15,649,685 $ 16,805,468
Accrued expenses 2,132,314 1,842,434
Accrued payroll and payroll related 2,954,609 5,150,104
Income taxes payable 1,224,663 711,073
Current portion of long-term debt 357,806 435,386
Rebates, chargebacks and returns payable 12,656,106 13,734,540
Total Current Liabilities 34,975,183 38,679,005
Long-term debt, less current portion 7,644,677 7,703,382
Unearned grant funds 500,000 500,000
Other long-term liabilities 11,693 47,111
Total Liabilities 43,131,553 46,929,498
Commitment and Contingencies
SHAREHOLDERS' EQUITY
Common stock - authorized 50,000,000 shares, par value $0.001; issued and outstanding, 24,587,281 and 24,517,696 shares, respectively 24,587 24,518
Additional paid in capital 76,733,498 76,250,309
Retained earnings 4,600,935 1,743,565
Noncontrolling interest 104,548 93,654
Accumulated other comprehensive income 22,500 24,751
81,486,068 78,136,797
Less: Treasury stock at cost - 90,160 and 82,228 shares, respectively (558,294 ) (489,174 )
TOTAL SHAREHOLDERS' EQUITY 80,927,774 77,647,623
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 124,059,327 $ 124,577,121
-------------------------------------------------------------------------------
A service of YellowBrix, Inc.
