News Release
<< Back
Cumberland Pharmaceuticals Reports 2012 Annual Financial Results
Net Revenue: For the three months ended
For the year ended
Operating Expenses: Total operating expenses for the three months ended
For the year ended
Net Income: Net income attributable to common shareholders for the three months ended
Net income attributable to common shareholders for the year ended
Balance Sheet: As of
"We are pleased with the progress we made in 2012 as highlighted by our financial results, as well as several product milestones, including the expansion of our international presence, the completion of four Caldolor studies, and the allowance of two new Acetadote patents," said
Product Highlights
Acetadote®
In
Cumberland also entered into a Settlement Agreement with
The Company has also entered into a License and Supply Agreement with Paddock and Perrigo. Under the terms of the License and Supply Agreement, if a third party receives final approval from the
In
Caldolor®
Cumberland is pleased to announce new top-line results from a pilot clinical study evaluating the safety and analgesic efficacy of Caldolor (ibuprofen) Injection compared to ketorolac injection in treating pain following knee arthroscopy procedures in adult patients.
Fifty-one patients were enrolled at
These positive results follow the February release of two recent studies affirming the safety and efficacy of Caldolor in treating pain and fever in adult patients when administered over a shortened infusion time. Top-line results from these two registry studies involved 450 patients who received Caldolor at 34 leading medical centers throughout
The Company continued to expand the international market for Caldolor through strategic partnerships. In
In
Company Update
In
Conference Call and Webcast
A conference call and live Internet webcast will be held on
About
About Acetadote
Acetadote, administered intravenously within 8 to 10 hours after ingestion of a potentially hepatotoxic quantity of acetaminophen, is indicated to prevent or lessen hepatic injury. Used in the emergency department, Acetadote is approved in
About Caldolor
Caldolor is indicated for the management of mild to moderate pain and management of moderate to severe pain as an adjunct to opioid analgesics, as well as the reduction of fever in adults. It was the first
About Kristalose
Kristalose is indicated for the treatment of acute and chronic constipation. It is a unique, proprietary, crystalline form of lactulose, with no restrictions on length of therapy or patient age. Initial dosing may produce flatulence and intestinal cramps, which are usually transient. Excessive dosage can lead to diarrhea with potential complications such as loss of fluids, hypokalemia and hypernatremia. Nausea and vomiting have been reported. Use with caution in diabetics. Kristalose is contraindicated in patients who require a low-galactose diet. Elderly, debilitated patients who receive lactulose for more than six months should have serum electrolytes (potassium, chloride, carbon dioxide) measured periodically. For full prescribing information, visit www.kristalose.com.
Forward-Looking Statements
This press release contains forward-looking statements, which are subject to certain risks and reflect Cumberland's current views on future events based on what it believes are reasonable assumptions. No assurance can be given that these events will occur. As with any business, all phases of Cumberland's operations are subject to factors outside of its control, and any one or combination of these factors could materially affect Cumberland's results of operations. These factors include market conditions, competition, an inability of manufacturers to produce Cumberland's products on a timely basis or failure of manufacturers to comply with regulations applicable to pharmaceutical manufacturers, maintaining an effective sales and marketing infrastructure and
other factors discussed in the Company's most recent Form 10-K and subsequent 10-Q's as filed with the
(unaudited) | ||||||||
2012 |
2011 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
54,349,381 |
$ |
70,599,146 |
||||
Marketable securities |
16,686,136 |
— |
||||||
Accounts receivable, net of allowances |
6,017,201 |
7,082,890 |
||||||
Inventories |
6,218,355 |
5,774,694 |
||||||
Prepaid and other current assets |
1,671,091 |
1,627,455 |
||||||
Deferred tax assets |
2,290,078 |
2,223,882 |
||||||
Total current assets |
87,232,242 |
87,308,067 |
||||||
Property and equipment, net |
1,188,914 |
1,119,339 |
||||||
Intangible assets, net |
9,476,798 |
7,023,064 |
||||||
Deferred tax assets |
50,411 |
— |
||||||
Other assets |
645,366 |
67,846 |
||||||
Total assets |
$ |
98,593,731 |
$ |
95,518,316 |
||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
2,790,554 |
$ |
1,513,548 |
||||
Accrued liabilities |
5,264,806 |
5,086,400 |
||||||
Total current liabilities |
8,055,360 |
6,599,948 |
||||||
Revolving line of credit |
4,359,951 |
4,859,951 |
||||||
Deferred tax liability |
— |
645,029 |
||||||
Other long-term liabilities |
611,933 |
578,119 |
||||||
Total liabilities |
13,027,244 |
12,683,047 |
||||||
Commitments and contingencies |
||||||||
Equity: |
||||||||
Shareholders' equity: |
||||||||
Common stock — no par value; 100,000,000 shares authorized; |
67,197,167 |
70,272,155 |
||||||
Retained earnings |
18,499,154 |
12,656,662 |
||||||
Total shareholders' equity |
85,696,321 |
82,928,817 |
||||||
Noncontrolling interests |
(129,834) |
(93,548) |
||||||
Total equity |
85,566,487 |
82,835,269 |
||||||
Total liabilities and equity |
$ |
98,593,731 |
$ |
95,518,316 |
(unaudited) | ||||||||||||||||
Three months ended |
Years ended December 31, | |||||||||||||||
2012 |
2011 |
2012 |
2011 | |||||||||||||
Revenues: |
||||||||||||||||
Net product revenue |
$ |
13,637,333 |
$ |
12,782,848 |
$ |
47,944,031 |
$ |
50,893,794 |
||||||||
Other revenue |
59,033 |
248,982 |
907,206 |
248,982 |
||||||||||||
Net revenues |
13,696,366 |
13,031,830 |
48,851,237 |
51,142,776 |
||||||||||||
Costs and expenses: |
||||||||||||||||
Cost of products sold |
2,172,762 |
1,951,200 |
5,046,179 |
5,362,554 |
||||||||||||
Selling and marketing |
4,942,425 |
4,686,486 |
20,329,493 |
20,940,060 |
||||||||||||
Research and development |
441,215 |
1,758,326 |
5,095,172 |
5,028,072 |
||||||||||||
General and administrative |
2,765,056 |
2,784,427 |
9,096,165 |
9,307,301 |
||||||||||||
Amortization |
121,915 |
140,122 |
466,126 |
655,302 |
||||||||||||
Total costs and expenses |
10,443,373 |
11,320,561 |
40,033,135 |
41,293,289 |
||||||||||||
Operating income |
3,252,993 |
1,711,269 |
8,818,102 |
9,849,487 |
||||||||||||
Interest income |
48,791 |
63,099 |
304,865 |
210,727 |
||||||||||||
Interest expense |
(15,616) |
(24,460) |
(71,985) |
(353,497) |
||||||||||||
Income before income taxes |
3,286,168 |
1,749,908 |
9,050,982 |
9,706,717 |
||||||||||||
Income tax expense |
(1,492,213) |
(841,783) |
(3,244,776) |
(4,080,204) |
||||||||||||
Net income |
1,793,955 |
908,125 |
5,806,206 |
5,626,513 |
||||||||||||
Net loss at subsidiary attributable to noncontrolling interests |
11,545 |
3,540 |
36,286 |
31,343 |
||||||||||||
Net income attributable to common shareholders |
$ |
1,805,500 |
$ |
911,665 |
$ |
5,842,492 |
$ |
5,657,856 |
||||||||
Earnings per share attributable to common shareholders: |
||||||||||||||||
Basic |
$ |
0.09 |
$ |
0.05 |
$ |
0.30 |
$ |
0.28 |
||||||||
Diluted |
$ |
0.09 |
$ |
0.04 |
$ |
0.30 |
$ |
0.28 |
||||||||
Weighted-average shares outstanding: |
||||||||||||||||
Basic |
19,048,945 |
20,130,211 |
19,564,625 |
20,342,913 |
||||||||||||
Diluted |
19,245,047 |
20,318,176 |
19,787,537 |
20,572,132 |
(unaudited) |
|||||||||
2012 |
2011 |
||||||||
Cash flows from operating activities: |
|||||||||
Net income |
$ |
5,806,206 |
$ |
5,626,513 |
|||||
Adjustments to reconcile net income to net cash flows provided by operating activities: |
|||||||||
Depreciation and amortization expense |
901,649 |
1,040,407 |
|||||||
Deferred tax expense (benefit) |
(829,846) |
1,665,110 |
|||||||
Share-based compensation |
636,528 |
779,305 |
|||||||
Excess tax benefit derived from exercise of stock options |
(3,760,766) |
(2,355,345) |
|||||||
Noncash interest expense |
24,075 |
137,487 |
|||||||
Noncash investment gains |
(45,814) |
— |
|||||||
Net changes in assets and liabilities affecting operating activities: |
|||||||||
Accounts receivable |
1,065,689 |
(1,937,396) |
|||||||
Inventory |
(443,661) |
1,909,148 |
|||||||
Prepaid, other current assets and other assets |
(648,941) |
(399,393) |
|||||||
Accounts payable and other accrued liabilities |
4,373,276 |
2,296,535 |
|||||||
Other long-term liabilities |
56,787 |
(40,224) |
|||||||
Net cash provided by operating activities |
7,135,182 |
8,722,147 |
|||||||
Cash flows from investing activities: |
|||||||||
Additions to property and equipment |
(464,893) |
(257,502) |
|||||||
Additions to intangibles |
(2,071,926) |
(180,269) |
|||||||
Proceeds from sale of marketable securities |
5,220,480 |
— |
|||||||
Purchases of marketable securities |
(21,860,802) |
— |
|||||||
Net cash used in investing activities |
(19,177,141) |
(437,771) |
|||||||
Cash flows from financing activities: |
|||||||||
Net borrowings (repayments) on line of credit |
(500,000) |
3,034,000 |
|||||||
Principal payments on note payable |
— |
(5,333,333) |
|||||||
Payments made in connection with repurchase of common shares |
(8,086,594) |
(4,247,440) |
|||||||
Costs of financing for long-term debt and credit facility |
— |
(17,637) |
|||||||
Proceeds from exercise of stock options |
618,022 |
629,865 |
|||||||
Excess tax benefit derived from exercise of stock options |
3,760,766 |
2,355,345 |
|||||||
Net cash used in financing activities |
(4,207,806) |
(3,579,200) |
|||||||
Net increase (decrease) in cash and cash equivalents |
(16,249,765) |
4,705,176 |
|||||||
Cash and cash equivalents, beginning of year |
70,599,146 |
65,893,970 |
|||||||
Cash and cash equivalents, end of year |
$ |
54,349,381 |
$ |
70,599,146 |
| ||||||||||||||||
Three months ended |
Years ended | |||||||||||||||
2012 |
2011 |
2012 |
2011 | |||||||||||||
Net income attributable to common shareholders |
$ |
1,805,500 |
$ |
911,665 |
$ |
5,842,492 |
$ |
5,657,856 |
||||||||
Costs associated with sales force realignment** |
685,267 |
— |
685,267 |
— |
||||||||||||
Income tax effect of sales force realignment costs |
(277,533) |
— |
(277,533) |
— |
||||||||||||
Net costs of sales force realignment |
407,734 |
— |
407,734 |
— |
||||||||||||
Adjusted net income attributable to common shareholders |
$ |
2,213,234 |
$ |
911,665 |
$ |
6,250,226 |
$ |
5,657,856 |
||||||||
Adjusted earnings per share attributable to |
||||||||||||||||
Basic |
$ |
0.12 |
$ |
0.05 |
$ |
0.32 |
$ |
0.28 |
||||||||
Diluted |
$ |
0.12 |
$ |
0.04 |
$ |
0.32 |
$ |
0.28 |
||||||||
Weighted-average shares outstanding: |
||||||||||||||||
Basic |
19,048,945 |
20,130,211 |
19,564,625 |
20,342,913 |
||||||||||||
Diluted |
19,245,047 |
20,318,176 |
19,787,537 |
20,572,132 |
||||||||||||
** On
The Company provided the above adjusted financial performance measures, which are considered "non-GAAP" financial measures under applicable
Management believes these non-GAAP financial performance measures are important as they eliminate nonrecurring sales realignment costs. The Company used these non-GAAP financial measures to facilitate management's internal comparisons of the Company's operating results, as well as to reconcile to guidance provided to investors. In addition, the use of non-GAAP financial measures provides greater transparency to investors of supplemental information used by management in its financial and operational decision-making, including the evaluation of the Company's operating performance. The Company defines these non-GAAP financial measures as follows:
- Adjusted net income attributable to common shareholders: net income attributable to common shareholders adjusted for the one-time expenses associated with the sales force realignment during the fourth quarter ending
December 31, 2012 , net of related income tax effect. - Adjusted basic earnings per share: adjusted net income attributable to common shareholders divided by basic weighted-average shares outstanding.
- Adjusted diluted earnings per share: adjusted net income attributable to common shareholders divided by diluted weighted-average shares outstanding.
SOURCE
News Provided by Acquire Media