Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity File Number | 001-36569 | |
Entity Registrant Name | LANTHEUS HOLDINGS, INC. | |
Entity Central Index Key | 0001521036 | |
Current Fiscal Year End Date | --12-31 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 35-2318913 | |
Entity Address, Address Line One | 331 Treble Cove Road | |
Entity Address, City or Town | North Billerica, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01862 | |
City Area Code | (978) | |
Local Phone Number | 671-8001 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | LNTH | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 39,756,364 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 95,713 | $ 92,919 |
Accounts receivable, net | 44,883 | 43,529 |
Inventory | 30,814 | 29,180 |
Other current assets | 8,967 | 7,283 |
Total current assets | 180,377 | 172,911 |
Property, plant and equipment, net | 108,613 | 116,497 |
Intangibles, net | 6,930 | 7,336 |
Goodwill | 15,714 | 15,714 |
Deferred tax assets, net | 70,454 | 71,834 |
Other long-term assets | 22,037 | 21,627 |
Total assets | 404,125 | 405,919 |
Current liabilities | ||
Current portion of long-term debt and other borrowings | 10,143 | 10,143 |
Accounts payable | 18,980 | 18,608 |
Accrued expenses and other liabilities | 32,836 | 37,360 |
Total current liabilities | 61,959 | 66,111 |
Asset retirement obligations | 13,243 | 12,883 |
Long-term debt, net and other borrowings | 181,488 | 183,927 |
Other long-term liabilities | 29,037 | 28,397 |
Total liabilities | 285,727 | 291,318 |
Commitments and contingencies (See Note 15) | ||
Stockholders’ equity | ||
Preferred stock ($0.01 par value, 25,000 shares authorized; no shares issued and outstanding) | 0 | 0 |
Common stock ($0.01 par value, 250,000 shares authorized; 39,750 and 39,251 shares issued and outstanding, respectively) | 398 | 393 |
Additional paid-in capital | 253,530 | 251,641 |
Accumulated deficit | (133,136) | (136,473) |
Accumulated other comprehensive loss | (2,394) | (960) |
Total stockholders’ equity | 118,398 | 114,601 |
Total liabilities and stockholders’ equity | $ 404,125 | $ 405,919 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 39,750,000 | 39,251,000 |
Common stock, shares outstanding (in shares) | 39,750,000 | 39,251,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenues | $ 90,704 | $ 86,510 |
Cost of goods sold | 52,702 | 42,426 |
Gross profit | 38,002 | 44,084 |
Operating expenses | ||
Sales and marketing | 10,130 | 10,397 |
General and administrative | 16,699 | 12,589 |
Research and development | 4,048 | 4,929 |
Total operating expenses | 30,877 | 27,915 |
Operating income | 7,125 | 16,169 |
Interest expense | 1,946 | 4,592 |
Other income | (350) | (1,187) |
Income before income taxes | 5,529 | 12,764 |
Income tax expense | 2,192 | 2,815 |
Net income | $ 3,337 | $ 9,949 |
Net income per common share: | ||
Basic (in dollars per share) | $ 0.08 | $ 0.26 |
Diluted (in dollars per share) | $ 0.08 | $ 0.25 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 39,433 | 38,603 |
Diluted (in shares) | 40,102 | 39,787 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 3,337 | $ 9,949 |
Other comprehensive (loss) income: | ||
Foreign currency translation | (446) | 56 |
Unrealized loss on cash flow hedges, net of tax | (988) | 0 |
Total other comprehensive (loss) income | (1,434) | 56 |
Comprehensive income | $ 1,903 | $ 10,005 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2018 | 38,466 | ||||
Beginning balance at Dec. 31, 2018 | $ 71,002 | $ 385 | $ 239,865 | $ (168,140) | $ (1,108) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 9,949 | 9,949 | |||
Other comprehensive income (loss) | 56 | 56 | |||
Stock option exercises and employee stock plan purchases (in shares) | 37 | ||||
Stock option exercises and employee stock plan purchases | 606 | $ 0 | 606 | ||
Vesting of restricted stock awards and units (in shares) | 365 | ||||
Vesting of restricted stock awards and units | 0 | $ 4 | (4) | ||
Shares withheld to cover taxes (in shares) | (50) | ||||
Shares withheld to cover taxes | (1,120) | $ (1) | (1,119) | ||
Stock-based compensation | 2,720 | 2,720 | |||
Ending balance (in shares) at Mar. 31, 2019 | 38,818 | ||||
Ending balance at Mar. 31, 2019 | 83,213 | $ 388 | 242,068 | (158,191) | (1,052) |
Beginning balance (in shares) at Dec. 31, 2019 | 39,251 | ||||
Beginning balance at Dec. 31, 2019 | 114,601 | $ 393 | 251,641 | (136,473) | (960) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 3,337 | 3,337 | |||
Other comprehensive income (loss) | (1,434) | (1,434) | |||
Stock option exercises and employee stock plan purchases (in shares) | 33 | ||||
Stock option exercises and employee stock plan purchases | 366 | 366 | |||
Vesting of restricted stock awards and units (in shares) | 563 | ||||
Vesting of restricted stock awards and units | 0 | $ 6 | (6) | ||
Shares withheld to cover taxes (in shares) | (97) | ||||
Shares withheld to cover taxes | (1,547) | $ (1) | (1,546) | ||
Stock-based compensation | 3,075 | 3,075 | |||
Ending balance (in shares) at Mar. 31, 2020 | 39,750 | ||||
Ending balance at Mar. 31, 2020 | $ 118,398 | $ 398 | $ 253,530 | $ (133,136) | $ (2,394) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income | $ 3,337 | $ 9,949 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation, amortization and accretion | 3,732 | 3,323 |
Impairment of long-lived assets | 7,275 | 0 |
Amortization of debt related costs | 169 | 320 |
Provision for bad debt | 202 | (190) |
Provision for excess and obsolete inventory | 449 | 511 |
Stock-based compensation | 3,075 | 2,720 |
Deferred taxes | 1,467 | 1,741 |
Long-term income tax receivable | (554) | (802) |
Long-term income tax payable and other long-term liabilities | 705 | 1,018 |
Other | 452 | (6) |
Increases (decreases) in cash from operating assets and liabilities: | ||
Accounts receivable | (1,750) | (1,040) |
Inventory | (2,098) | 465 |
Other current assets | 1,149 | (1,152) |
Accounts payable | (913) | 1,458 |
Accrued expenses and other liabilities | (7,289) | (7,847) |
Net cash provided by operating activities | 9,408 | 10,468 |
Investing activities | ||
Capital expenditures | (2,698) | (10,550) |
Net cash used in investing activities | (2,698) | (10,550) |
Financing activities | ||
Payments on long-term debt and other borrowings | (2,551) | (717) |
Proceeds from stock option exercises | 0 | 324 |
Proceeds from issuance of common stock | 366 | 282 |
Payments for minimum statutory tax withholding related to net share settlement of equity awards | (1,547) | (1,120) |
Net cash used in financing activities | (3,732) | (1,231) |
Effect of foreign exchange rates on cash and cash equivalents | (184) | (27) |
Net increase (decrease) in cash and cash equivalents | 2,794 | (1,340) |
Cash and cash equivalents, beginning of period | 92,919 | 113,401 |
Cash and cash equivalents, end of period | $ 95,713 | $ 112,061 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note Regarding Company References and Trademarks Unless the context otherwise requires, references to the “Company” and “Lantheus” refer to Lantheus Holdings, Inc. and its direct and indirect wholly-owned subsidiaries, references to “Holdings” refer to Lantheus Holdings, Inc. and not to any of its subsidiaries, and references to “LMI” refer to Lantheus Medical Imaging, Inc., the direct subsidiary of Holdings. Solely for convenience, the Company refers to trademarks, service marks and trade names without the TM, SM and ® symbols. Those references are not intended to indicate, in any way, that the Company will not assert, to the fullest extent permitted under applicable law, its rights to its trademarks, service marks and trade names. The accompanying unaudited condensed consolidated financial statements include the accounts of Lantheus Holdings, Inc. and its direct and indirect wholly-owned subsidiaries and have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments) considered necessary for a fair statement have been included. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31, 2020 or any future period. The condensed consolidated balance sheet at December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto included in Item 8 of the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities Exchange Commission (“SEC”) on February 25, 2020. Progenics Transaction On October 1, 2019, the Company entered into an Agreement and Plan of Merger (the “Initial Merger Agreement”) to acquire Progenics Pharmaceuticals, Inc. (NASDAQ: PGNX) (“Progenics” and, such acquisition, the “Progenics Transaction”). The terms of the Initial Merger Agreement were amended and restated on February 20, 2020 (the “Amended Merger Agreement”). Progenics is an oncology company developing innovative medicines and artificial intelligence to find, fight and follow cancer. Under the terms of the Amended Merger Agreement, the Company will acquire all of the issued and outstanding shares of Progenics common stock by means of a merger of a wholly-owned subsidiary of the Company with and into Progenics in which Progenics stockholders will receive, for each share of Progenics stock held at the time of the closing of the Progenics Transaction, merger consideration consisting of 0.31 of a share of the Company’s common stock and a non-tradeable contingent value right (a “CVR”) tied to the financial performance of PyL TM ( 18 F-DCFPyL), Progenics’ prostate-specific membrane antigen targeted imaging agent designed to visualize prostate cancer currently in late stage clinical development (“PyL”). Each CVR will entitle its holder to receive a pro rata share of aggregate cash payments equal to 40% of U.S. net sales generated by PyL in 2022 and 2023 in excess of $100 million and $150 million , respectively. In no event will the Company’s aggregate payments in respect of the CVRs, together with any other non-stock consideration treated as paid in connection with the Progenics Transaction, exceed 19.9% of the total consideration the Company pays in the Progenics Transaction. Following the closing of the Progenics Transaction, the aggregate ownership stake of the former Progenics stockholders will be approximately 40% of the combined company. Progenics’ stockholders will also be entitled to appraisal rights as provided under Delaware law. In addition, pursuant to the Amended Merger Agreement, the holder of each in-the-money option to purchase shares of Progenics common stock under any equity based compensation plan of Progenics (“Progenics Stock Option”) will be entitled to receive in exchange for each such in-the-money option (i) an option to purchase common stock of the Company (each, a “Company Stock Option”) converted based on the 0.31 exchange ratio and (ii) a vested or unvested CVR depending on whether the underlying option is vested. Holders of out-of-the-money Progenics Stock Options will receive Company Stock Options converted on an exchange ratio adjusted based on actual trading prices of common stock of Progenics and the Company prior to the closing of the Progenics Transaction. The Progenics Transaction was unanimously approved by the Boards of Directors of both companies and requires, among other things, the affirmative vote of a majority of the outstanding shares of common stock of Progenics and a majority of votes cast by the holders of the common stock of the Company. The Progenics Transaction is currently expected to close in June 2020, subject to the satisfaction or waiver of certain closing conditions. Following the closing of the Progenics Transaction, which the parties intend to report as tax-deferred to Progenics’ stockholders with respect to the stock component of the merger consideration for U.S. federal income tax purposes, the combined company will continue to be headquartered in North Billerica, Massachusetts and will trade on the NASDAQ under the ticker symbol LNTH. On March 15, 2020, Progenics and LMI entered into a bridge loan agreement, pursuant to which LMI agreed to provide for a secured short-term loan to Progenics on or after May 1, 2020 in an aggregate principal amount of up to $10.0 million . The bridge loan matures on the earlier to occur of (a) September 30, 2020 and (b) the date on which Progenics enters into a debt financing or similar arrangements or any amendment to, or replacement of, its existing debt provided by one or more third parties following the termination date of the merger agreement, in either case, having aggregate net cash proceeds that exceed the amount then required to repay all obligations under the bridge loan agreement in full in cash. The bridge loan bears interest at a rate per annum of 9.5% and is secured through the pledge to LMI of all of the issued and outstanding shares of capital stock of Molecular Insight Pharmaceuticals, Inc., a subsidiary of Progenics (“MIPI”), and any debt of MIPI owed to Progenics. COVID-19 On March 11, 2020, the World Health Organization declared the novel coronavirus (“COVID-19”), a respiratory illness first identified in Wuhan, China, a pandemic. The global spread of COVID-19 has created significant volatility, uncertainty and economic disruption. Governments in affected regions have implemented, and may continue to implement, safety precautions which include quarantines, travel restrictions, business closures, cancellations of public gatherings and other measures as they deem necessary. Many organizations and individuals, including the Company and its employees, are taking additional steps to avoid or reduce infection, including limiting travel and working from home. These measures are disrupting normal business operations both in and outside of affected areas and have had significant negative impacts on businesses and financial markets worldwide. The Company experienced operational and financial impacts from the COVID-19 pandemic beginning late in the first quarter of 2020, including the impact of stay-at-home mandates and related safety measures such as the delay of elective medical procedures, resulting in a decline in the volume of procedures using the Company’s products. As a result of the COVID-19 pandemic, the Company undertook a thorough analysis of all of its discretionary expenses. In the first quarter of 2020, the Company implemented certain cost reduction initiatives, including, among other things, reducing travel and promotional expenses and implementing a hiring freeze through the balance of 2020. The severity of the material impact of the COVID-19 pandemic on the Company's business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company's customers and suppliers, all of which are uncertain and cannot be predicted. While the impact of COVID-19 on the Company’s results of operations and cash flows is expected to be material, at least in the short term, given the dynamic nature of this situation, the Company is currently unable to accurately predict the impact of COVID-19 on its overall 2020 operations and financial results or cash flows for the foreseeable future and whether the impact of COVID-19 could lead to potential impairments. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Derivative Instruments The Company uses interest rate swaps to reduce the variability in cash flows associated with a portion of the Company’s forecasted interest payments on its variable rate debt. To qualify for hedge accounting, the hedging instrument must be highly effective at reducing the risk from the exposure being hedged. Further, the Company must formally document the hedging relationship at inception and, on at least a quarterly basis, continually reevaluate the relationship to ensure it remains highly effective throughout the life of the hedge. The Company does not enter into derivative financial instruments for speculative or trading purposes. Recent Accounting Pronouncements Standard Description Effective Date for Company Effect on the Condensed Consolidated Financial Statements Recently Issued Accounting Standards Not Yet Adopted ASU 2020-04, “Reference Rate Reform (Topic 848)” This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. March 12, 2020 through December 31, 2022 The Company does not expect that the adoption of this standard will have a material impact on the Company’s condensed consolidated financial statements. Accounting Standards Adopted During the Three Months Ended March 31, 2020 ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326)” This ASU will require financial instruments measured at amortized cost and accounts receivable to be presented at the net amount expected to be collected. The new model requires an entity to estimate credit losses based on historical information, current information and reasonable and supportable forecasts that affect the collectability of the reported amount. January 1, 2020 The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following table summarizes revenue by revenue source and reportable segment as follows: Three Months Ended Major Products/Service Lines by Segment (in thousands) 2020 2019 U.S. Product revenue, net (1) $ 78,745 $ 75,434 Total U.S. revenues 78,745 75,434 International Product revenue, net (1) 11,468 10,549 License and royalty revenues 491 527 Total International revenues 11,959 11,076 Total revenues $ 90,704 $ 86,510 ________________________________ (1) The Company’s principal products include DEFINITY and TechneLite and are categorized within product revenue, net. The Company applies the same revenue recognition policies and judgments for all of its principal products. The Company’s performance obligations are typically part of contracts that have an original expected duration of one year or less. As such, the Company is not disclosing the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially satisfied) as of the end of the reporting period. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability of fair value measurements, financial instruments are categorized based on a hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: • Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 — Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.) and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). • Level 3 — Unobservable inputs that reflect a Company’s estimates about the assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including its own data. The Company’s financial assets measured at fair value on a recurring basis consist of money market funds and interest rate swaps. The Company invests excess cash from its operating cash accounts in overnight investments and reflects these amounts in cash and cash equivalents in the condensed consolidated balance sheets at fair value using quoted prices in active markets for identical assets. The fair value of the interest rate swaps are determined based on observable market-based inputs, including interest rate curves and reflects the contractual terms of these instruments, including the period to maturity. Please refer to Note 10, “Derivative Instruments”, for further details on the interest rate swaps. The tables below present information about the Company’s assets and liabilities measured at fair value on a recurring basis: March 31, 2020 (in thousands) Total Fair Value Level 1 Level 2 Level 3 Money market $ 42,051 $ 42,051 $ — $ — Interest rate swaps 1,330 — 1,330 — Total $ 43,381 $ 42,051 $ 1,330 $ — December 31, 2019 (in thousands) Total Fair Value Level 1 Level 2 Level 3 Money market $ 39,530 $ 39,530 $ — $ — Total $ 39,530 $ 39,530 $ — $ — |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company provides for income taxes at the end of each interim period based on the estimated effective tax rate for the full year, adjusted for any discrete events which are recorded in the period they occur. The Company’s effective tax rate in fiscal 2020 differs from the U.S. federal statutory rate of 21% principally due to the impact of state taxes and the accrual of interest on uncertain tax positions. Cumulative adjustments to the tax provision are recorded in the interim period in which a change in the estimated annual effective tax rate is determined. The Company’s income tax expense is presented below: Three Months Ended (in thousands) 2020 2019 Income tax expense $ 2,192 $ 2,815 The Company regularly assesses its ability to realize its deferred tax assets. Assessing the realizability of deferred tax assets requires significant management judgment. In determining whether its deferred tax assets are more-likely-than-not realizable, the Company evaluated all available positive and negative evidence, and weighed the objective evidence and expected impact. The Company continues to record a valuation allowance of $1.2 million against the net deferred tax assets of its U.K. subsidiary. In connection with the Company’s acquisition of the medical imaging business from Bristol-Myers Squibb (“BMS”) in 2008, the Company recorded a liability for uncertain tax positions related to the acquired business and simultaneously entered into a tax indemnification agreement with BMS under which BMS agreed to indemnify the Company for any payments made to settle those uncertain tax positions with the taxing authorities. Accordingly, a long-term receivable is recorded to account for the expected value to the Company of future indemnification payments, net of actual tax benefits received, to be paid on behalf of the Company by BMS. The tax indemnification receivable is recorded within other long-term assets. In accordance with the Company’s accounting policy, the change in the tax liability, penalties and interest associated with these obligations (net of any offsetting federal or state benefit) is recognized within income tax expense. As these reserves change, adjustments are included in income tax expense while the offsetting adjustment is included in other income. Assuming that the receivable from BMS continues to be considered recoverable by the Company, there will be no effect on net income and no net cash outflows related to these liabilities. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consisted of the following: (in thousands) March 31, December 31, Raw materials $ 11,607 $ 11,417 Work in process 12,445 9,450 Finished goods 6,762 8,313 Total inventory $ 30,814 $ 29,180 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment, net, consisted of the following: (in thousands) March 31, December 31, Land $ 13,450 $ 13,450 Buildings 69,622 75,654 Machinery, equipment and fixtures 76,251 87,763 Computer software 20,768 20,739 Construction in progress 11,165 10,546 191,256 208,152 Less: accumulated depreciation and amortization (82,643 ) (91,655 ) Total property, plant and equipment, net $ 108,613 $ 116,497 Depreciation and amortization expense related to property, plant and equipment, net, was $3.0 million and $2.5 million for the three months ended March 31, 2020 and 2019 , respectively. T he Company tests long-lived assets for recoverability whenever events or changes in circumstances suggest that the carrying value of an asset or group of assets may not be recoverable. As a result of a decline in expected future cash flows and the effect of COVID-19 related to certain other nuclear legacy manufacturing assets in the U.S. segment, the Company determined certain impairment triggers had occurred. Accordingly, the Company performed an undiscounted cash flow analysis as of March 31, 2020. Based on the undiscounted cash flow analysis, the Company determined that the manufacturing assets had net carrying values that exceeded their estimated undiscounted future cash flows. The Company then estimated the fair values of the asset group based on their discounted cash flows. The carrying value exceeded the fair value and as a result, the Company recorded a non-cash impairment of $7.3 million for the three months ended March 31, 2020 in cost of goods sold in the condensed consolidated statement of operations. |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations The Company considers its legal obligation to remediate its facilities upon a decommissioning of its radioactive-related operations as an asset retirement obligation. The Company has production facilities which manufacture and process radioactive materials at its North Billerica, Massachusetts and San Juan, Puerto Rico sites. As of March 31, 2020 , the liability is measured at the present value of the obligation expected to be incurred, of approximately $26.9 million . The following table provides a summary of the changes in the Company’s asset retirement obligations: (in thousands) Amount Balance at January 1, 2020 $ 12,883 Accretion expense 360 Balance at March 31, 2020 $ 13,243 The Company is required to provide the U.S. Nuclear Regulatory Commission and Massachusetts Department of Public Health financial assurance demonstrating the Company’s ability to fund the decommissioning of its North Billerica, Massachusetts production facility upon closure, although the Company does not intend to close the facility. The Company has provided this financial assurance in the form of a $28.2 million surety bond. |
Long-Term Debt, Net, and Other
Long-Term Debt, Net, and Other Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net, and Other Borrowings | Long-Term Debt, Net, and Other Borrowings As of March 31, 2020 , the Company’s maturities of principal obligations under its long-term debt and other borrowings are as follows: (in thousands) Amount Remainder of 2020 $ 7,500 2021 10,000 2022 11,250 2023 15,000 2024 148,750 Total principal outstanding 192,500 Unamortized debt discount (458 ) Unamortized debt issuance costs (730 ) Finance lease liabilities 319 Total 191,631 Less: current portion (10,143 ) Total long-term debt, net and other borrowings $ 181,488 At March 31, 2020 , the Company’s interest rate under the 2019 Term Facility was 2.5% . |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company uses interest rate swaps to reduce the variability in cash flows associated with a portion of the Company’s forecasted interest payments on its variable rate debt. In March 2020, the Company entered into interest rate swap contracts to fix the LIBOR rate on a notional amount of $100.0 million through May 31, 2024. This agreement involves the receipt of floating rate amounts in exchange for fixed rate interest payments over the life of the agreement without an exchange of the underlying principal amount. The interest rate swaps were designated as cash flow hedges. In accordance with hedge accounting, the interest rate swaps are recorded on the Company’s condensed consolidated balance sheets at fair value, and changes in the fair value of the swap agreements are recorded to other comprehensive loss and reclassified to interest expense in the period during which the hedged transaction affected earnings or it will become probable that the forecasted transaction would not occur. At March 31, 2020, accumulated other comprehensive loss included $0.4 million of pre-tax deferred losses that are expected to be reclassified to earnings during the next 12 months. The following table presents the location and fair value amounts of derivative instruments reported in the condensed consolidated balance sheet: (in thousands) March 31, 2020 December 31, 2019 Derivatives type Classification Liabilities: Interest rate swap Accrued expenses and other liabilities $ 1,330 $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of Accumulated Other Comprehensive Loss, net of tax of $0.3 million and $0.0 million for the three months ended March 31, 2020 and March 31, 2019, respectively, consisted of the following: (in thousands) Foreign currency translation Unrealized loss on cash flow hedges Accumulated other comprehensive loss Balance at January 1, 2020 $ (960 ) $ — $ (960 ) Other comprehensive loss before reclassifications (446 ) (988 ) (1,434 ) Amounts reclassified to earnings — — — Balance at March 31, 2020 $ (1,406 ) $ (988 ) $ (2,394 ) Balance at January 1, 2019 $ (1,108 ) $ — $ (1,108 ) Other comprehensive income before reclassifications 56 — 56 Amounts reclassified to earnings — — — Balance at March 31, 2019 $ (1,052 ) $ — $ (1,052 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following table presents stock-based compensation expense recognized in the Company’s accompanying condensed consolidated statements of operations: Three Months Ended (in thousands) 2020 2019 Cost of goods sold $ 618 $ 440 Sales and marketing 253 451 General and administrative 1,815 1,574 Research and development 389 255 Total stock-based compensation expense $ 3,075 $ 2,720 |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share A summary of net income per common share is presented below: Three Months Ended (in thousands, except per share amounts) 2020 2019 Net income $ 3,337 $ 9,949 Basic weighted-average common shares outstanding 39,433 38,603 Effect of dilutive stock options 28 58 Effect of dilutive restricted stock 641 1,126 Diluted weighted-average common shares outstanding 40,102 39,787 Basic income per common share $ 0.08 $ 0.26 Diluted income per common share $ 0.08 $ 0.25 Antidilutive securities excluded from diluted net income per common share 604 222 |
Other Income
Other Income | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income | Other Income Other income consisted of the following: Three Months Ended (in thousands) 2020 2019 Foreign currency (losses) gains $ (314 ) $ 42 Tax indemnification income, net 555 802 Interest income 109 283 Other — 60 Total other income $ 350 $ 1,187 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | and Contingencies Legal Proceedings From time to time, the Company is a party to various legal proceedings arising in the ordinary course of business. In addition, the Company has in the past been, and may in the future be, subject to investigations by governmental and regulatory authorities, which expose it to greater risks associated with litigation, regulatory or other proceedings, as a result of which the Company could be required to pay significant fines or penalties. The costs and outcome of litigation, regulatory or other proceedings cannot be predicted with certainty, and some lawsuits, claims, actions or proceedings may be disposed of unfavorably to the Company and could have a material adverse effect on the Company’s results of operations or financial condition. In addition, intellectual property disputes often have a risk of injunctive relief which, if imposed against the Company, could materially and adversely affect its financial condition or results of operations. As of March 31, 2020 , the Company had no material ongoing litigation in which the Company was a party. In addition, the Company had no material ongoing regulatory or other proceedings and no knowledge of any investigations by government or regulatory authorities in which the Company is a target, in either case, that the Company believes could have a material and adverse effect on its current business. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company reports two operating segments, U.S. and International, based on geographic customer base. The results of these operating segments are regularly reviewed by the Company’s chief operating decision maker, the President and Chief Executive Officer. The Company’s segments derive revenues through the manufacture, marketing, selling and distribution of medical imaging products, focused primarily on cardiovascular diagnostic imaging. All goodwill has been allocated to the U.S. operating segment. The Company does not identify or allocate assets to its segments. Selected information regarding the Company’s segments is provided as follows: Three Months Ended (in thousands) 2020 2019 Revenue by product from external customers U.S. DEFINITY $ 55,010 $ 49,716 TechneLite 19,356 20,058 Other nuclear 9,062 9,524 Rebates and allowances (4,683 ) (3,864 ) Total U.S. Revenues 78,745 75,434 International DEFINITY 1,781 1,395 TechneLite 3,742 4,087 Other nuclear 6,438 5,596 Rebates and allowances (2 ) (2 ) Total International Revenues 11,959 11,076 Worldwide DEFINITY 56,791 51,111 TechneLite 23,098 24,145 Other nuclear 15,500 15,120 Rebates and allowances (4,685 ) (3,866 ) Total Revenues $ 90,704 $ 86,510 Three Months Ended (in thousands) 2020 2019 Operating income U.S. $ 4,988 $ 14,584 International 2,137 1,585 Total operating income 7,125 16,169 Interest expense 1,946 4,592 Other income (350 ) (1,187 ) Income before income taxes $ 5,529 $ 12,764 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 1, 2020, the Company drew down $100.0 million under its 2019 Revolving Facility, the proceeds of which the Company has currently invested in short-term, interest-bearing instruments. On April 2, 2020, the Company and Progenics issued a joint press release announcing that they had decided to reschedule their respective special meetings of stockholders to vote on matters related to the Progenics Transaction from April 28, 2020 to June 16, 2020. The rescheduled special meetings will allow both companies the time necessary to respond to the COVID-19 pandemic and its effect on each company’s business and on the combined entity and provide appropriate disclosure to their shareholders. The Company is continuing to monitor the latest developments regarding the COVID-19 pandemic and its impact on the Company’s business, financial condition, results of operations and prospects. On April 10, 2020, the Company announced several steps that it has taken to respond to the COVID-19 pandemic intended to maintain financial flexibility. These actions include transitioning to a four day work week to better align manufacturing, supply, distribution and other activities with reduced product demand, reducing non-essential discretionary expenses, and reducing executive and employee compensation effective April 13, 2020 for the balance of the second quarter of 2020. In addition, our Board of Directors has also reduced director and committee member compensation by 35% for the second half of the year and has elected to receive all remaining compensation payable in 2020 in the form of time-based restricted stock units that will vest on the first anniversary of the grant date, rather than in cash. On April 14, 2020, the Company entered into a support agreement (the “Support Agreement”) with Velan Capital, L.P., Altiva Management Inc., Velan Capital Partners LP, Velan Capital Holdings LLC, Velan Capital Investment Management LP, Velan Principals GP LLC, Velan Capital Management LLC, Balaji Venkataraman, Deepak Sarpangal and Kevin McNeill (collectively, the “Velan Stockholders”), pursuant to which, among other things and subject to the terms and conditions set forth in the Support Agreement, the Velan Stockholders agreed to vote (or cause to be voted) their respective shares of Company and Progenics common stock in favor of certain matters relating to the Progenics Transaction, and that the Velan Stockholders will abide by certain customary standstill provisions, in each case, subject to the terms and conditions set forth in the Support Agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Derivative Instruments | Derivative Instruments The Company uses interest rate swaps to reduce the variability in cash flows associated with a portion of the Company’s forecasted interest payments on its variable rate debt. To qualify for hedge accounting, the hedging instrument must be highly effective at reducing the risk from the exposure being hedged. Further, the Company must formally document the hedging relationship at inception and, on at least a quarterly basis, continually reevaluate the relationship to ensure it remains highly effective throughout the life of the hedge. The Company does not enter into derivative financial instruments for speculative or trading purposes. |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements include the accounts of Lantheus Holdings, Inc. and its direct and indirect wholly-owned subsidiaries and have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments) considered necessary for a fair statement have been included. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31, 2020 or any future period. The condensed consolidated balance sheet at December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto included in Item 8 of the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities Exchange Commission (“SEC”) on February 25, 2020. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Standard Description Effective Date for Company Effect on the Condensed Consolidated Financial Statements Recently Issued Accounting Standards Not Yet Adopted ASU 2020-04, “Reference Rate Reform (Topic 848)” This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. March 12, 2020 through December 31, 2022 The Company does not expect that the adoption of this standard will have a material impact on the Company’s condensed consolidated financial statements. Accounting Standards Adopted During the Three Months Ended March 31, 2020 ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326)” This ASU will require financial instruments measured at amortized cost and accounts receivable to be presented at the net amount expected to be collected. The new model requires an entity to estimate credit losses based on historical information, current information and reasonable and supportable forecasts that affect the collectability of the reported amount. January 1, 2020 The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Standard Description Effective Date for Company Effect on the Condensed Consolidated Financial Statements Recently Issued Accounting Standards Not Yet Adopted ASU 2020-04, “Reference Rate Reform (Topic 848)” This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. March 12, 2020 through December 31, 2022 The Company does not expect that the adoption of this standard will have a material impact on the Company’s condensed consolidated financial statements. Accounting Standards Adopted During the Three Months Ended March 31, 2020 ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326)” This ASU will require financial instruments measured at amortized cost and accounts receivable to be presented at the net amount expected to be collected. The new model requires an entity to estimate credit losses based on historical information, current information and reasonable and supportable forecasts that affect the collectability of the reported amount. January 1, 2020 The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | The following table summarizes revenue by revenue source and reportable segment as follows: Three Months Ended Major Products/Service Lines by Segment (in thousands) 2020 2019 U.S. Product revenue, net (1) $ 78,745 $ 75,434 Total U.S. revenues 78,745 75,434 International Product revenue, net (1) 11,468 10,549 License and royalty revenues 491 527 Total International revenues 11,959 11,076 Total revenues $ 90,704 $ 86,510 ________________________________ (1) The Company’s principal products include DEFINITY and TechneLite and are categorized within product revenue, net. The Company applies the same revenue recognition policies and judgments for all of its principal products. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | The tables below present information about the Company’s assets and liabilities measured at fair value on a recurring basis: March 31, 2020 (in thousands) Total Fair Value Level 1 Level 2 Level 3 Money market $ 42,051 $ 42,051 $ — $ — Interest rate swaps 1,330 — 1,330 — Total $ 43,381 $ 42,051 $ 1,330 $ — December 31, 2019 (in thousands) Total Fair Value Level 1 Level 2 Level 3 Money market $ 39,530 $ 39,530 $ — $ — Total $ 39,530 $ 39,530 $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense | The Company’s income tax expense is presented below: Three Months Ended (in thousands) 2020 2019 Income tax expense $ 2,192 $ 2,815 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventory consisted of the following: (in thousands) March 31, December 31, Raw materials $ 11,607 $ 11,417 Work in process 12,445 9,450 Finished goods 6,762 8,313 Total inventory $ 30,814 $ 29,180 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant, and equipment, net | Property, plant and equipment, net, consisted of the following: (in thousands) March 31, December 31, Land $ 13,450 $ 13,450 Buildings 69,622 75,654 Machinery, equipment and fixtures 76,251 87,763 Computer software 20,768 20,739 Construction in progress 11,165 10,546 191,256 208,152 Less: accumulated depreciation and amortization (82,643 ) (91,655 ) Total property, plant and equipment, net $ 108,613 $ 116,497 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Summary of changes in asset retirement obligations | The following table provides a summary of the changes in the Company’s asset retirement obligations: (in thousands) Amount Balance at January 1, 2020 $ 12,883 Accretion expense 360 Balance at March 31, 2020 $ 13,243 |
Long-Term Debt, Net, and Othe_2
Long-Term Debt, Net, and Other Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of maturities of principal obligations | As of March 31, 2020 , the Company’s maturities of principal obligations under its long-term debt and other borrowings are as follows: (in thousands) Amount Remainder of 2020 $ 7,500 2021 10,000 2022 11,250 2023 15,000 2024 148,750 Total principal outstanding 192,500 Unamortized debt discount (458 ) Unamortized debt issuance costs (730 ) Finance lease liabilities 319 Total 191,631 Less: current portion (10,143 ) Total long-term debt, net and other borrowings $ 181,488 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents the location and fair value amounts of derivative instruments reported in the condensed consolidated balance sheet: (in thousands) March 31, 2020 December 31, 2019 Derivatives type Classification Liabilities: Interest rate swap Accrued expenses and other liabilities $ 1,330 $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The components of Accumulated Other Comprehensive Loss, net of tax of $0.3 million and $0.0 million for the three months ended March 31, 2020 and March 31, 2019, respectively, consisted of the following: (in thousands) Foreign currency translation Unrealized loss on cash flow hedges Accumulated other comprehensive loss Balance at January 1, 2020 $ (960 ) $ — $ (960 ) Other comprehensive loss before reclassifications (446 ) (988 ) (1,434 ) Amounts reclassified to earnings — — — Balance at March 31, 2020 $ (1,406 ) $ (988 ) $ (2,394 ) Balance at January 1, 2019 $ (1,108 ) $ — $ (1,108 ) Other comprehensive income before reclassifications 56 — 56 Amounts reclassified to earnings — — — Balance at March 31, 2019 $ (1,052 ) $ — $ (1,052 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense recognized | The following table presents stock-based compensation expense recognized in the Company’s accompanying condensed consolidated statements of operations: Three Months Ended (in thousands) 2020 2019 Cost of goods sold $ 618 $ 440 Sales and marketing 253 451 General and administrative 1,815 1,574 Research and development 389 255 Total stock-based compensation expense $ 3,075 $ 2,720 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of net income per common share | A summary of net income per common share is presented below: Three Months Ended (in thousands, except per share amounts) 2020 2019 Net income $ 3,337 $ 9,949 Basic weighted-average common shares outstanding 39,433 38,603 Effect of dilutive stock options 28 58 Effect of dilutive restricted stock 641 1,126 Diluted weighted-average common shares outstanding 40,102 39,787 Basic income per common share $ 0.08 $ 0.26 Diluted income per common share $ 0.08 $ 0.25 Antidilutive securities excluded from diluted net income per common share 604 222 |
Other Income (Tables)
Other Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of other income | Other income consisted of the following: Three Months Ended (in thousands) 2020 2019 Foreign currency (losses) gains $ (314 ) $ 42 Tax indemnification income, net 555 802 Interest income 109 283 Other — 60 Total other income $ 350 $ 1,187 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Selected information regarding the Company’s segments is provided as follows: Three Months Ended (in thousands) 2020 2019 Revenue by product from external customers U.S. DEFINITY $ 55,010 $ 49,716 TechneLite 19,356 20,058 Other nuclear 9,062 9,524 Rebates and allowances (4,683 ) (3,864 ) Total U.S. Revenues 78,745 75,434 International DEFINITY 1,781 1,395 TechneLite 3,742 4,087 Other nuclear 6,438 5,596 Rebates and allowances (2 ) (2 ) Total International Revenues 11,959 11,076 Worldwide DEFINITY 56,791 51,111 TechneLite 23,098 24,145 Other nuclear 15,500 15,120 Rebates and allowances (4,685 ) (3,866 ) Total Revenues $ 90,704 $ 86,510 Three Months Ended (in thousands) 2020 2019 Operating income U.S. $ 4,988 $ 14,584 International 2,137 1,585 Total operating income 7,125 16,169 Interest expense 1,946 4,592 Other income (350 ) (1,187 ) Income before income taxes $ 5,529 $ 12,764 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) | Feb. 20, 2020 | Mar. 15, 2020 |
Progenics Pharmaceuticals Inc | ||
Business Acquisition [Line Items] | ||
Shares to be received from acquisition conversion (in shares) | 0.31 | |
Percentage of net sales, contingent consideration | 40.00% | |
Percentage of total contingent consideration under CVRs | 19.90% | |
Percentage of acquired interest | 40.00% | |
Cash Payments 2022 | Progenics Pharmaceuticals Inc | ||
Business Acquisition [Line Items] | ||
Contingent consideration value | $ 100,000,000 | |
Cash Payments 2023 | Progenics Pharmaceuticals Inc | ||
Business Acquisition [Line Items] | ||
Contingent consideration value | $ 150,000,000 | |
Bridge Loan | Progenics Pharmaceuticals Inc | ||
Business Acquisition [Line Items] | ||
Debt, face amount | $ 10,000,000 | |
Debt, stated interest rate | 9.50% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 90,704 | $ 86,510 |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 78,745 | 75,434 |
U.S. | Product revenue, net | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 78,745 | 75,434 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 11,959 | 11,076 |
International | Product revenue, net | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 11,468 | 10,549 |
International | License and royalty revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 491 | $ 527 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market | $ 42,051 | $ 39,530 |
Interest rate swaps | 1,330 | |
Total | 43,381 | 39,530 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market | 42,051 | 39,530 |
Interest rate swaps | 0 | |
Total | 42,051 | 39,530 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market | 0 | 0 |
Interest rate swaps | 1,330 | |
Total | 1,330 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market | 0 | 0 |
Interest rate swaps | 0 | |
Total | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 2,192 | $ 2,815 |
Deferred tax asset, valuation allowance | $ 1,200 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 11,607 | $ 11,417 |
Work in process | 12,445 | 9,450 |
Finished goods | 6,762 | 8,313 |
Total inventory | $ 30,814 | $ 29,180 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Property, Plant & Equipment [Line Items] | |||
Property, plant & equipment, gross | $ 191,256 | $ 208,152 | |
Less: accumulated depreciation and amortization | (82,643) | (91,655) | |
Total property, plant and equipment, net | 108,613 | 116,497 | |
Depreciation and amortization expense | 3,000 | $ 2,500 | |
Impairment of long-lived assets | 7,275 | $ 0 | |
Land | |||
Property, Plant & Equipment [Line Items] | |||
Property, plant & equipment, gross | 13,450 | 13,450 | |
Buildings | |||
Property, Plant & Equipment [Line Items] | |||
Property, plant & equipment, gross | 69,622 | 75,654 | |
Machinery, equipment and fixtures | |||
Property, Plant & Equipment [Line Items] | |||
Property, plant & equipment, gross | 76,251 | 87,763 | |
Computer software | |||
Property, Plant & Equipment [Line Items] | |||
Property, plant & equipment, gross | 20,768 | 20,739 | |
Construction in progress | |||
Property, Plant & Equipment [Line Items] | |||
Property, plant & equipment, gross | $ 11,165 | $ 10,546 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligation liabilities expected, present value | $ 26,900 |
Financial assurance in form of surety bond | 28,200 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |
Asset retirement obligations, beginning balance | 12,883 |
Accretion expense | 360 |
Asset retirement obligations, ending balance | $ 13,243 |
Long-Term Debt, Net, and Othe_3
Long-Term Debt, Net, and Other Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Remainder of 2020 | $ 7,500 | |
2021 | 10,000 | |
2022 | 11,250 | |
2023 | 15,000 | |
2024 | 148,750 | |
Total principal outstanding | 192,500 | |
Unamortized debt discount | (458) | |
Unamortized debt issuance costs | (730) | |
Finance lease liabilities | 319 | |
Total | 191,631 | |
Less: current portion | (10,143) | $ (10,143) |
Total long-term debt, net and other borrowings | $ 181,488 | $ 183,927 |
2019 Facility | ||
Debt Instrument [Line Items] | ||
Interest rate under long-term debt | 2.50% |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Pre-tax deferred losses expected to be reclassified to earnings during the next 12 months | $ 400,000 | |
Cash Flow Hedge | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional amount | 100,000,000 | |
Cash Flow Hedge | Interest Rate Swaps | Accrued expenses and other liabilities | ||
Derivative [Line Items] | ||
Liabilities | $ 1,330,000 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss, tax | $ 300 | $ 0 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 114,601 | 71,002 |
Other comprehensive loss before reclassifications | (1,434) | 56 |
Amounts reclassified to earnings | 0 | 0 |
Ending balance | 118,398 | 83,213 |
Foreign currency translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (960) | (1,108) |
Other comprehensive loss before reclassifications | (446) | 56 |
Amounts reclassified to earnings | 0 | 0 |
Ending balance | (1,406) | (1,052) |
Unrealized loss on cash flow hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | 0 |
Other comprehensive loss before reclassifications | (988) | 0 |
Amounts reclassified to earnings | 0 | 0 |
Ending balance | (988) | 0 |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (960) | (1,108) |
Ending balance | $ (2,394) | $ (1,052) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 3,075 | $ 2,720 |
Cost of goods sold | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 618 | 440 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 253 | 451 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1,815 | 1,574 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 389 | $ 255 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income | $ 3,337 | $ 9,949 |
Basic weighted-average common shares outstanding (in shares) | 39,433 | 38,603 |
Effect of dilutive stock options (in shares) | 28 | 58 |
Effect of dilutive restricted stock (in shares) | 641 | 1,126 |
Diluted weighted-average common shares outstanding (in shares) | 40,102 | 39,787 |
Basic income per common share (in dollars per share) | $ 0.08 | $ 0.26 |
Diluted income per common share (in dollars per share) | $ 0.08 | $ 0.25 |
Antidilutive securities excluded from diluted net income per common share (in shares) | 604 | 222 |
Other Income (Details)
Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | ||
Foreign currency (losses) gains | $ (314) | $ 42 |
Tax indemnification income, net | 555 | 802 |
Interest income | 109 | 283 |
Other | 0 | 60 |
Total other income | $ 350 | $ 1,187 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | segment | 2 | |
Geographical revenues | ||
Revenues | $ 90,704 | $ 86,510 |
Operating income | 7,125 | 16,169 |
Interest expense | 1,946 | 4,592 |
Other income | (350) | (1,187) |
Income before income taxes | 5,529 | 12,764 |
DEFINITY | ||
Geographical revenues | ||
Revenues | 56,791 | 51,111 |
TechneLite | ||
Geographical revenues | ||
Revenues | 23,098 | 24,145 |
Other nuclear | ||
Geographical revenues | ||
Revenues | 15,500 | 15,120 |
Rebates and allowances | ||
Geographical revenues | ||
Revenues | 4,685 | 3,866 |
U.S. | ||
Geographical revenues | ||
Revenues | 78,745 | 75,434 |
Operating income | 4,988 | 14,584 |
U.S. | DEFINITY | ||
Geographical revenues | ||
Revenues | 55,010 | 49,716 |
U.S. | TechneLite | ||
Geographical revenues | ||
Revenues | 19,356 | 20,058 |
U.S. | Other nuclear | ||
Geographical revenues | ||
Revenues | 9,062 | 9,524 |
U.S. | Rebates and allowances | ||
Geographical revenues | ||
Revenues | 4,683 | 3,864 |
International | ||
Geographical revenues | ||
Revenues | 11,959 | 11,076 |
Operating income | 2,137 | 1,585 |
International | DEFINITY | ||
Geographical revenues | ||
Revenues | 1,781 | 1,395 |
International | TechneLite | ||
Geographical revenues | ||
Revenues | 3,742 | 4,087 |
International | Other nuclear | ||
Geographical revenues | ||
Revenues | 6,438 | 5,596 |
International | Rebates and allowances | ||
Geographical revenues | ||
Revenues | $ 2 | $ 2 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions | Apr. 01, 2020 | Apr. 10, 2020 |
Subsequent Event [Line Items] | ||
Proceeds from line of credit | $ 100 | |
Director and committee member compensation reduction | 35.00% |