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Cumberland Pharmaceuticals Reports 2011 Annual Financial Results
Net Revenue: For the year ended
For the three months ended
Operating Expenses: For the year ended
Total operating expenses for the three months ended
Net Income: Net income attributable to common shareholders for the year ended
Net income attributable to common shareholders for the three months ended
Balance Sheet: As of
"We are pleased to have delivered strong revenue and earnings growth and to have achieved our revenue guidance during 2011," said
Cumberland is introducing earnings guidance for 2012. The Company expects to see diluted earnings to be in the range of
Company Highlights
Acetadote®
In
In
Kristalose®
Cumberland reached an agreement in
Caldolor®
An exclusive agreement was reached with
The application for regulatory approval of Caldolor for fever 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 the only injectable product 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 Form 10-K filed with the
Condensed Consolidated Balance Sheets (Unaudited) | |||||
ASSETS | 2011 | 2010 | |||
Current assets: | |||||
Cash and cash equivalents | $ 70,599,146 | $ 65,893,970 | |||
Accounts receivable, net of allowances | 7,082,890 | 5,145,494 | |||
Inventories | 5,774,694 | 7,683,842 | |||
Prepaid and other current assets | 1,627,455 | 1,336,765 | |||
Deferred tax assets | 2,223,882 | 978,771 | |||
Total current assets | 87,308,067 | 81,038,842 | |||
Property and equipment, net | 1,119,339 | 1,220,010 | |||
Intangible assets, net | 7,023,064 | 7,427,223 | |||
Deferred tax assets | - | 2,265,192 | |||
Other assets | 67,846 | 102,787 | |||
Total assets | $ 95,518,316 | $ 92,054,054 | |||
LIABILITIES AND EQUITY | |||||
Current liabilities: | |||||
Current portion of long-term debt | $ - | $ 2,666,668 | |||
Accounts payable | 1,513,548 | 2,124,654 | |||
Other accrued liabilities | 5,086,400 | 4,436,298 | |||
Total current liabilities | 6,599,948 | 9,227,620 | |||
Revolving line of credit | 4,859,951 | 1,825,951 | |||
Long-term debt, excluding current portion | - | 2,666,665 | |||
Deferred tax liability | 645,029 | - | |||
Other long-term obligations, excluding current portion | 578,119 | 618,343 | |||
Total liabilities | 12,683,047 | 14,338,579 | |||
Commitments and contingencies | |||||
Equity: | |||||
Shareholders' equity: | |||||
Common stock — no par value; 100,000,000 shares authorized; 20,020,535 and 20,338,461 | |||||
shares issued and outstanding as of | 70,272,155 | 70,778,874 | |||
Retained earnings | 12,656,662 | 6,998,806 | |||
Total shareholders' equity | 82,928,817 | 77,777,680 | |||
Noncontrolling interests | (93,548) | (62,205) | |||
Total equity | 82,835,269 | 77,715,475 | |||
Total liabilities and equity | $ 95,518,316 | $ 92,054,054 | |||
Condensed Consolidated Statements of Income (Unaudited) Years ended | |||||||
2011 | 2010 | 2009 | |||||
Revenues: | |||||||
Net product revenue | $ 50,893,794 | $ 44,704,570 | $ 43,142,350 | ||||
Other revenue | 248,982 | 1,171,801 | 394,928 | ||||
Net revenues | 51,142,776 | 45,876,371 | 43,537,278 | ||||
Costs and expenses: | |||||||
Cost of products sold | 5,362,554 | 3,586,646 | 4,136,541 | ||||
Selling and marketing | 20,940,060 | 22,674,505 | 20,194,074 | ||||
Research and development | 5,028,072 | 4,327,485 | 4,993,278 | ||||
General and administrative | 9,197,955 | 7,990,222 | 7,643,070 | ||||
Amortization | 655,302 | 686,911 | 686,904 | ||||
Other | 109,346 | 108,855 | 106,776 | ||||
Total costs and expenses | 41,293,289 | 39,374,624 | 37,760,643 | ||||
Operating income | 9,849,487 | 6,501,747 | 5,776,635 | ||||
Interest income | 210,727 | 200,207 | 79,363 | ||||
Interest expense | (353,497) | (1,423,523) | (772,927) | ||||
Income before income taxes | 9,706,717 | 5,278,431 | 5,083,071 | ||||
Income tax expense | (4,080,204) | (2,851,420) | (2,024,192) | ||||
Net income | 5,626,513 | 2,427,011 | 3,058,879 | ||||
Net loss at subsidiary attributable to | |||||||
noncontrolling interests | 31,343 | 29,669 | 32,536 | ||||
Net income attributable to common shareholders | $ 5,657,856 | $ 2,456,680 | $ 3,091,415 | ||||
Earnings per share attributable to common shareholders | |||||||
- Basic | $ 0.28 | $ 0.12 | $ 0.22 | ||||
- Diluted | $ 0.28 | $ 0.12 | $ 0.17 | ||||
Weighted-average shares outstanding | |||||||
- Basic | 20,342,913 | 20,333,932 | 14,199,479 | ||||
- Diluted | 20,572,132 | 21,058,577 | 18,234,171 | ||||
Condensed Consolidated Statements of Cash Flows (Unaudited) Years ended | |||||||
2011 | 2010 | 2009 | |||||
Cash flows from operating activities: | |||||||
Net income | $ 5,626,513 | $ 2,427,011 | $ 3,058,879 | ||||
Adjustments to reconcile net income to net cash flows provided by | |||||||
operating activities: | |||||||
Depreciation and amortization expense | 1,040,407 | 978,398 | 816,499 | ||||
Deferred tax expense (benefit) | 1,665,110 | (332,349) | (525,467) | ||||
Stock-based compensation - nonemployees | 149,719 | 80,222 | 1,056,401 | ||||
Stock-based compensation — employees | 629,586 | 688,408 | 606,395 | ||||
Excess tax benefit derived from exercise of stock options | (2,355,345) | (3,874,966) | (3,968,894) | ||||
Noncash interest expense | 137,487 | 352,484 | 128,800 | ||||
Net changes in assets and liabilities affecting operating | |||||||
activities: | |||||||
Accounts receivable | (1,937,396) | 1,031,091 | (3,047,238) | ||||
Inventory | 1,909,148 | (2,860,969) | (3,060,097) | ||||
Prepaid, other current assets and other assets | (399,393) | 1,342,032 | (721,464) | ||||
Accounts payable and other accrued liabilities | 2,296,535 | 201,725 | 6,572,098 | ||||
Other long-term obligations | (40,224) | 313,575 | (510,942) | ||||
Net cash provided by operating activities | 8,722,147 | 346,662 | 404,970 | ||||
Cash flows from investing activities: | |||||||
Additions to property and equipment | (257,502) | (577,159) | (601,802) | ||||
Additions to trademarks and patents | (180,269) | (191,483) | (110,541) | ||||
Net cash used in investing activities | (437,771) | (768,642) | (712,343) | ||||
Cash flows from financing activities: | |||||||
Proceeds from initial public offering of common stock | - | - | 85,000,000 | ||||
Costs of initial public offering | - | - | (7,479,011) | ||||
Proceeds from borrowings on long-term debt | - | - | 18,000,000 | ||||
Principal payments on note payable | (5,333,333) | (12,666,667) | (5,000,000) | ||||
Net borrowings on line of credit | 3,034,000 | - | - | ||||
Costs of financing for long-term debt and credit facility | (17,637) | (110,000) | (189,660) | ||||
Payments made in connection with repurchase of common shares | (4,247,440) | (4,846,791) | (27,295,808) | ||||
Proceeds from exercise of stock options | 629,865 | 1,362,760 | 175,089 | ||||
Excess tax benefit derived from exercise of stock options | 2,355,345 | 3,874,966 | 3,968,894 | ||||
Net cash (used in) provided by financing activities | (3,579,200) | (12,385,732) | 67,179,504 | ||||
Net increase (decrease) in cash and cash equivalents | 4,705,176 | (12,807,712) | 66,872,131 | ||||
Cash and cash equivalents, beginning of year | 65,893,970 | 78,701,682 | 11,829,551 | ||||
Cash and cash equivalents, end of year | $ 70,599,146 | $ 65,893,970 | $ 78,701,682 | ||||
Supplemental disclosure of cash flow information: | |||||||
Cash paid during the year for: | |||||||
Interest | $ 191,410 | $ 814,373 | $ 677,387 | ||||
Income taxes | 304,480 | 52,136 | 196,187 | ||||
Noncash investing and financing activities: | |||||||
Change in unpaid invoices for purchases of intangibles | 97,806 | - | - | ||||
Reclass of redeemable common stock to (from) equity | - | 1,930,000 | (1,930,000) | ||||
Deferred financing costs | - | - | 335,075 | ||||
SOURCE
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