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Cumberland Pharmaceuticals Reports Third Quarter 2012 Financial Results
Net Revenues: For the three months ended
For the nine months ended
Operating Expenses: Total operating expenses for the three months ended
For the nine months ended
Net Income: Net income attributable to common shareholders for the three months ended
For the nine months ended
Balance Sheet: As of
"We continue to remain in a strong financial position with three marketed products, attractive margins and continued double digit earnings growth," said
Company Highlights
Caldolor®
In
When administered prior to surgery, Caldolor use was associated with a statistically significant reduction in the number of post-operative narcotic doses required in patients in the efficacy evaluable population. There were also consistent trends toward reduction in pain scores and the incidence of nausea and vomiting in patients receiving Caldolor. Importantly, no safety concerns were observed during this study.
This study, in combination with the ongoing work to evaluate the treatment of fever in children, will be used to pursue a pediatric indication for Caldolor.
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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 the only injectable product approved in
About Caldolor
Caldolor is indicated for the management of mild to moderate pain, for management of moderate to severe pain as an adjunct to opioid analgesics, and for 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 Form 10-K filed with the
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Condensed Consolidated Balance Sheets | |||
(Unaudited) | |||
|
December 31, | ||
2012 |
2011 | ||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 50,801,571 |
$ 70,599,146 | |
Marketable securities |
18,559,476 |
- | |
Accounts receivable, net of allowances |
5,467,455 |
7,082,890 | |
Inventories |
7,511,641 |
5,774,694 | |
Other current assets |
4,451,786 |
3,851,337 | |
Total current assets |
86,791,929 |
87,308,067 | |
Property and equipment, net |
1,120,591 |
1,119,339 | |
Intangible assets, net |
8,367,508 |
7,023,064 | |
Other assets |
653,768 |
67,846 | |
Total assets |
$ 96,933,796 |
$ 95,518,316 | |
LIABILITIES AND EQUITY |
|||
Current liabilities: |
|||
Accounts payable |
$ 4,228,230 |
$ 1,513,548 | |
Other current liabilities |
4,429,904 |
5,086,400 | |
Total current liabilities |
8,658,134 |
6,599,948 | |
Revolving line of credit |
4,359,951 |
4,859,951 | |
Other long-term liabilities |
583,790 |
1,223,148 | |
Total liabilities |
13,601,875 |
12,683,047 | |
Commitments and contingencies |
|||
Equity: |
|||
Shareholders' equity: |
|||
Common stock - no par value; 100,000,000 shares authorized; |
|||
19,173,846 and 20,020,535 shares issued and outstanding |
|||
as of |
66,756,556 |
70,272,155 | |
Retained earnings |
16,693,654 |
12,656,662 | |
Total shareholders' equity |
83,450,210 |
82,928,817 | |
Noncontrolling interests |
(118,289) |
(93,548) | |
Total equity |
83,331,921 |
82,835,269 | |
Total liabilities and equity |
$ 96,933,796 |
$ 95,518,316 | |
| |||||||
Condensed Consolidated Statements of Net and Comprehensive Income | |||||||
(Unaudited) | |||||||
Three months ended |
Nine months ended September 30, | ||||||
2012 |
2011 |
2012 |
2011 | ||||
Net revenues |
$ 12,531,719 |
$ 13,054,278 |
$ 35,154,871 |
$ 38,110,946 | |||
Costs and expenses: |
|||||||
Cost of products sold |
921,862 |
1,341,256 |
2,873,417 |
3,411,354 | |||
Selling and marketing |
4,914,551 |
5,060,546 |
15,387,068 |
16,253,574 | |||
Research and development |
1,696,592 |
1,233,025 |
4,653,957 |
3,269,746 | |||
General and administrative |
1,901,986 |
2,149,364 |
6,331,109 |
6,522,874 | |||
Amortization of product |
|||||||
license right |
117,565 |
171,727 |
344,211 |
515,180 | |||
Total costs and expenses |
9,552,556 |
9,955,918 |
29,589,762 |
29,972,728 | |||
Operating income |
2,979,163 |
3,098,360 |
5,565,109 |
8,138,218 | |||
Interest income |
107,719 |
52,459 |
256,074 |
147,628 | |||
Interest expense |
(17,222) |
(33,390) |
(56,369) |
(329,037) | |||
Income before income taxes |
3,069,660 |
3,117,429 |
5,764,814 |
7,956,809 | |||
Income tax expense |
(1,207,504) |
(1,278,472) |
(1,752,563) |
(3,238,421) | |||
Net income |
1,862,156 |
1,838,957 |
4,012,251 |
4,718,388 | |||
Net loss at subsidiary attributable to |
|||||||
noncontrolling interests |
7,338 |
8,455 |
24,741 |
27,803 | |||
Net income attributable to |
|||||||
common shareholders |
$ 1,869,494 |
$ 1,847,412 |
$ 4,036,992 |
$ 4,746,191 | |||
Earnings per share attributable to common shareholders |
|||||||
- basic |
$ 0.10 |
$ 0.09 |
$ 0.20 |
$ 0.23 | |||
- diluted |
$ 0.10 |
$ 0.09 |
$ 0.20 |
$ 0.23 | |||
Weighted-average shares outstanding |
|||||||
- basic |
19,432,715 |
20,327,537 |
19,737,216 |
20,414,593 | |||
- diluted |
19,670,741 |
20,534,647 |
19,969,051 |
20,657,567 | |||
CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES | |||
Condensed Consolidated Statements of Cash Flows | |||
(Unaudited) | |||
Nine Months Ended September 30, | |||
2012 |
2011 | ||
Cash flows from operating activities: |
|||
Net income |
$ 4,012,251 |
$ 4,718,388 | |
Adjustments to reconcile net income to net cash flows from |
|||
operating activities: |
|||
Depreciation and amortization expense |
664,369 |
801,483 | |
Stock-based compensation - nonemployees |
101,038 |
119,313 | |
Stock-based compensation - employees |
455,666 |
467,850 | |
Excess tax benefit derived from exercise of stock options |
(2,176,222) |
(2,657,259) | |
Noncash interest expense |
16,050 |
131,469 | |
Net unrealized investment gains |
(99,286) |
- | |
Net changes in assets and liabilities affecting |
|||
operating activities: |
|||
Accounts receivable |
1,615,435 |
640,083 | |
Inventory |
(1,736,947) |
809,243 | |
Other current assets and other assets |
(1,228,382) |
(1,240,700) | |
Accounts payable and other accrued liabilities |
4,178,708 |
3,911,450 | |
Other long-term liabilities |
(655,201) |
(9,262) | |
Net cash provided by operating activities |
5,147,479 |
7,692,058 | |
Cash flows from investing activities: |
|||
Additions to property and equipment |
(293,693) |
(241,885) | |
Purchases of marketable securities |
(18,849,492) |
- | |
Proceeds from marketable securities |
389,302 |
- | |
Additions to intangibles |
(1,621,100) |
(140,356) | |
Net cash used in investment activities |
(20,374,983) |
(382,241) | |
Cash flows from financing activities: |
|||
Principal payments on note payable |
- |
(5,333,333) | |
Net (repayments) borrowings on line of credit |
(500,000) |
2,750,000 | |
Proceeds from exercise of stock options |
580,101 |
681,634 | |
Excess tax benefit derived from exercise of stock options |
2,176,222 |
2,657,259 | |
Repurchase of common shares |
(6,826,394) |
(2,884,540) | |
Net cash used in financing activities |
(4,570,071) |
(2,128,980) | |
Net (decrease) increase in cash and cash equivalents |
(19,797,575) |
5,180,837 | |
Cash and cash equivalents at beginning of period |
70,599,146 |
65,893,970 | |
Cash and cash equivalents at end of period |
$ 50,801,571 |
$ 71,074,807 | |
Supplemental disclosure of cash flow information: |
|||
Non-cash investing and financing activities: |
|||
Net change in unpaid additions to intangibles, property |
|||
and equipment |
$ 95,272 |
$ - | |
SOURCE
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