News Release
<< Back
Cumberland Pharmaceuticals Reports Third Quarter 2010 Financial Results
Net Revenue: For the three months ended
Operating Expenses: Total operating expenses for the three months ended
Operating expenses for the nine-month period ended
Net Income: Net income for the three months ended
Net income for the nine months ended
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the three months ended
For the nine months ended
Balance Sheet: During the quarter the Company amended its senior credit facilities, reducing its term loan balance to
"We continue to grow our established brands, Acetadote and Kristalose, and to progress our efforts to gain wide formulary acceptance for Caldolor," said
Cumberland is raising its full year 2010 revenue guidance from its previous expectations of
RECENT DEVELOPMENTS
Submission of Supplemental New Drug Application for New Formulation of Acetadote
In
The Company expects to receive a response from the
Supplemental New Drug Application for Acetadote in Treating Acute Liver Failure
In
In
Launch of Acetadote in
In
In addition to
SUPPLEMENTAL FINANCIAL INFORMATION
The following table presents a reconciliation of Cumberland's net income to EBITDA and adjusted EBITDA. The Company defines EBITDA as net income plus interest, income tax, depreciation and amortization, and presents these measures to assist investors in evaluating Cumberland's operating performance and comparing the Company's results with those of other companies. EBITDA and adjusted EBITDA should not be considered in isolation from or as a substitute for net income.
Three Months Ended September, 30, | |||||
2010 | 2009 | ||||
Net income | $ 1,001,596 | $ 1,282,412 | |||
Income tax expense | 943,141 | 855,660 | |||
Depreciation & amortization | 260,011 | 207,173 | |||
Interest expense, net | 499,120 | 233,987 | |||
EBITDA | $ 2,703,868 | $ 2,579,232 | |||
Adjustments: | |||||
Non-cash stock compensation | 202,300 | 180,249 | |||
Adjusted EBITDA | $ 2,906,168 | $ 2,759,481 | |||
Nine Months Ended September 30, | |||||
2010 | 2009 | ||||
Net income | $ 1,594,871 | $ 2,775,678 | |||
Income tax expense | 1,529,339 | 1,919,356 | |||
Depreciation & amortization | 723,687 | 605,514 | |||
Interest expense, net | 1,140,015 | 388,166 | |||
EBITDA | $ 4,987,912 | $ 5,688,714 | |||
Adjustments: | |||||
Non-cash stock compensation | 565,993 | 1,501,694 | |||
Adjusted EBITDA | $ 5,553,905 | $ 7,190,408 | |||
CONFERENCE CALL AND WEBCAST
A conference call and live Internet webcast will be held on
ABOUT
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 is the first
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 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 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 a failure of manufacturers to comply with regulations applicable to pharmaceutical manufacturers, maintaining an effective sales and marketing infrastructure and
other factors set forth under the headings "Risk factors" and "Management's discussion and analysis of financial condition and results of operations" in Cumberland's Form 10-K filed with the
Investor Contact: | Media Contact: | |
Angela Novak | Rebecca Kirkham | |
Corporate Relations | Lovell Communications | |
(615) 255-0068 | (615) 297-7766 | |
anovak@cumberlandpharma.com | rebecca@lovell.com | |
CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES | ||||
September 30, | December 31, | |||
2010 | 2009 | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 65,518,340 | $ 78,701,682 | ||
Accounts receivable, net of allowances | 4,791,682 | 6,176,585 | ||
Inventories | 7,646,228 | 4,822,873 | ||
Other current assets | 1,940,778 | 3,472,455 | ||
Total current assets | 79,897,028 | 93,173,595 | ||
Property and equipment, net | 1,139,946 | 918,412 | ||
Intangible assets, net | 7,580,168 | 7,956,009 | ||
Other assets | 1,292,724 | 1,676,304 | ||
Total assets | $ 89,909,866 | $ 103,724,320 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Current portion of long-term debt | $ 2,666,668 | $ 9,061,973 | ||
Current portion of other long-term obligations | 12,035 | 144,828 | ||
Accounts payable | 3,416,370 | 5,632,796 | ||
Other accrued liabilities | 3,817,822 | 3,784,777 | ||
Total current liabilities | 9,912,895 | 18,624,374 | ||
Revolving line of credit | 1,825,951 | 1,825,951 | ||
Long-term debt, excluding current portion | 3,333,332 | 8,938,027 | ||
Other long-term obligations, excluding current portion | 211,757 | 184,632 | ||
Total liabilities | 15,283,935 | 29,572,984 | ||
Commitments and contingencies | ||||
Redeemable common stock | - | 1,930,000 | ||
Equity: | ||||
Shareholders' equity: | ||||
Common stock - no par value; 100,000,000 shares authorized; | ||||
20,353,849 and 20,180,486(1) shares issued and outstanding | ||||
as of September 30, 2010 and December 31, 2009, respectively | 68,521,470 | 67,711,746 | ||
Retained earnings | 6,161,252 | 4,542,126 | ||
Total shareholders' equity | 74,682,722 | 72,253,872 | ||
Noncontrolling interests | (56,791) | (32,536) | ||
Total equity | 74,625,931 | 72,221,336 | ||
Total liabilities and equity | $ 89,909,866 | $ 103,724,320 | ||
(1) Number of shares issued and outstanding represent total shares of common stock regardless of classification on the consolidated balance sheet. The number of shares of redeemable common stock at December 31, 2009 was 142,016. | ||||
CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||
2010 | 2009 | 2010 | 2009 | |||||
Net revenues | $ 12,190,870 | $ 13,597,760 | $ 33,061,457 | $ 32,822,972 | ||||
Costs and expenses: | ||||||||
Cost of products sold | 909,434 | 1,761,069 | 2,632,447 | 3,271,363 | ||||
Selling and marketing | 5,692,048 | 6,087,807 | 17,147,683 | 14,611,796 | ||||
Research and development | 1,138,955 | 640,877 | 2,947,623 | 4,041,719 | ||||
General and administrative | 1,806,975 | 2,537,627 | 5,471,012 | 5,218,925 | ||||
Amortization of product | ||||||||
license right | 171,732 | 171,726 | 515,184 | 515,178 | ||||
Other | 27,869 | 26,595 | 83,283 | 80,791 | ||||
Total costs and expenses | 9,747,013 | 11,225,701 | 28,797,232 | 27,739,772 | ||||
Operating income | 2,443,857 | 2,372,059 | 4,264,225 | 5,083,200 | ||||
Interest income | 48,675 | 14,285 | 159,688 | 42,041 | ||||
Interest expense | (547,795) | (248,272) | (1,299,703) | (430,207) | ||||
Income before income taxes | 1,944,737 | 2,138,072 | 3,124,210 | 4,695,034 | ||||
Income tax expense | (943,141) | (855,660) | (1,529,339) | (1,919,356) | ||||
Net income | 1,001,596 | 1,282,412 | 1,594,871 | 2,775,678 | ||||
Net loss at subsidiary attributable to | ||||||||
noncontrolling interests | 6,648 | 5,725 | 24,255 | 26,420 | ||||
Net income attributable to | ||||||||
common shareholders | $ 1,008,244 | $ 1,288,137 | $ 1,619,126 | $ 2,802,098 | ||||
Earnings per share attributable to common shareholders | ||||||||
- basic | $ 0.05 | $ 0.08 | $ 0.08 | $ 0.23 | ||||
- diluted | $ 0.05 | $ 0.07 | $ 0.08 | $ 0.16 | ||||
Weighted-average shares outstanding | ||||||||
- basic | 20,327,867 | 15,745,069 | 20,335,911 | 12,197,876 | ||||
- diluted | 20,803,182 | 19,183,606 | 21,135,762 | 17,143,348 | ||||
CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES | ||||
Nine Months Ended September 30, | ||||
2010 | 2009 | |||
Cash flows from operating activities: | ||||
Net income | $ 1,594,871 | $ 2,775,678 | ||
Adjustments to reconcile net income to net cash flows from | ||||
operating activities: | ||||
Depreciation and amortization expense | 723,687 | 605,514 | ||
Non-employee equity compensation | 62,547 | 1,046,192 | ||
Stock-based compensation - employee stock options | 503,446 | 455,502 | ||
Excess tax benefit derived from exercise of stock options | (1,256,913) | (2,842,825) | ||
Non-cash interest expense | 328,475 | 83,420 | ||
Net changes in assets and liabilities affecting | ||||
operating activities: | ||||
Accounts receivable | 1,384,903 | (4,054,710) | ||
Inventory | (2,823,355) | 75,185 | ||
Other current assets and other assets | 1,461,538 | 936,286 | ||
Accounts payable and other accrued liabilities | (840,429) | 3,299,235 | ||
Other long-term obligations | (105,668) | (455,723) | ||
Net cash provided by operating activities | 1,033,102 | 1,923,754 | ||
Cash flows from investing activities: | ||||
Additions to property and equipment | (311,301) | (199,312) | ||
Additions to patents | (132,047) | (71,358) | ||
Net cash used in investment activities | (443,348) | (270,670) | ||
Cash flows from financing activities: | ||||
Proceeds from initial public offering | - | 85,000,000 | ||
Costs of initial public offering | - | (7,385,124) | ||
Proceeds from borrowings on long-term debt | - | 18,000,000 | ||
Principal payments on note payable | (12,000,000) | (5,000,000) | ||
Costs of financing for long-term debt and credit facility | (82,500) | (189,660) | ||
Proceeds from exercise of stock options | 1,182,139 | 64,275 | ||
Excess tax benefit derived from exercise of stock options | 1,256,913 | 2,842,825 | ||
Repurchase of common shares | (4,129,648) | (27,273,677) | ||
Net cash (used in) provided by financing activities | (13,773,096) | 66,058,639 | ||
Net (decrease) increase in cash and cash equivalents | (13,183,342) | 67,711,723 | ||
Cash and cash equivalents at beginning of period | 78,701,682 | 11,829,551 | ||
Cash and cash equivalents at end of period | $ 65,518,340 | $ 79,541,274 | ||
Supplemental disclosure of cash flow information: | ||||
Non-cash investing and financing activities: | ||||
Deferred financing costs | - | 335,075 | ||
Common shares repurchased during period but not paid | ||||
as of the end of the period | 22,207 | - | ||
SOURCE
News Provided by Acquire Media