Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 11, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Lantheus Medical Imaging, Inc. | ' |
Entity Central Index Key | '0001500157 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'No | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 1,000 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | ' | ' | ' | ' |
Net product revenues | $67,253 | $71,163 | $202,961 | $207,839 |
License and other revenues | 3,132 | 2,582 | 9,043 | 8,018 |
Total revenues | 70,385 | 73,745 | 212,004 | 215,857 |
Cost of goods sold | 46,664 | 65,114 | 144,524 | 166,275 |
Loss on firm purchase commitment | ' | 1,859 | ' | 1,859 |
Total cost of goods sold | 46,664 | 66,973 | 144,524 | 168,134 |
Gross profit | 23,721 | 6,772 | 67,480 | 47,723 |
Operating expenses | ' | ' | ' | ' |
General and administrative expenses | 7,132 | 7,801 | 25,678 | 24,760 |
Sales and marketing expenses | 8,476 | 9,257 | 27,266 | 28,165 |
Research and development expenses | 5,893 | 10,511 | 25,428 | 31,282 |
Impairment of land | 6,788 | ' | 6,788 | ' |
Proceeds from manufacturer | ' | -800 | ' | -34,614 |
Total operating expenses | 28,289 | 26,769 | 85,160 | 49,593 |
Operating loss | -4,568 | -19,997 | -17,680 | -1,870 |
Interest expense, net | -11,035 | -10,464 | -32,323 | -31,277 |
Other income (expense), net | 260 | -834 | 894 | -248 |
Loss before income taxes | -15,343 | -31,295 | -49,109 | -33,395 |
Provision (benefit) for income taxes | -279 | -2,574 | 267 | -944 |
Net loss | -15,064 | -28,721 | -49,376 | -32,451 |
Foreign currency translation, net of taxes | 417 | 1,021 | -1,176 | 1,199 |
Total comprehensive loss | ($14,647) | ($27,700) | ($50,552) | ($31,252) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $20,862 | $31,595 |
Accounts receivable, net of allowance of $383 and $301 | 37,587 | 41,380 |
Inventory | 17,037 | 18,048 |
Income tax receivable | 437 | 736 |
Deferred tax assets | 27 | 115 |
Other current assets | 3,462 | 2,943 |
Total current assets | 79,412 | 94,817 |
Property, plant and equipment, net | 98,732 | 109,573 |
Capitalized software development costs, net | 1,213 | 2,234 |
Intangibles, net | 54,766 | 66,802 |
Goodwill | 15,714 | 15,714 |
Deferred financing costs | 10,194 | 11,372 |
Other long-term assets | 22,994 | 22,414 |
Total assets | 283,025 | 322,926 |
Current liabilities | ' | ' |
Line of credit | 8,000 | ' |
Accounts payable | 19,471 | 18,945 |
Accrued expenses and other liabilities | 34,511 | 29,689 |
Note payable | 119 | ' |
Deferred revenue | 3,848 | 7,320 |
Total current liabilities | 65,949 | 55,954 |
Asset retirement obligation | 6,219 | 5,416 |
Long-term debt, net | 398,984 | 398,822 |
Deferred tax liability | 22 | 435 |
Other long-term liabilities | 35,910 | 36,652 |
Total liabilities | 507,084 | 497,279 |
Commitments and contingencies (See Note 13) | ' | ' |
Stockholder's deficit | ' | ' |
Common stock ($0.001 par value, 10,000 shares authorized; 1 share issued and outstanding) | ' | ' |
Due from parent | -1,242 | -1,353 |
Additional paid-in capital | 3,060 | 2,325 |
Accumulated deficit | -226,036 | -176,660 |
Accumulated other comprehensive income | 159 | 1,335 |
Total stockholder's deficit | -224,059 | -174,353 |
Total liabilities and stockholder's deficit | $283,025 | $322,926 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets | ' | ' |
Accounts receivable, allowance (in dollars) | $383 | $301 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 10,000 | 10,000 |
Common stock, share issued | 1 | 1 |
Common stock, share outstanding | 1 | 1 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Stockholder's Deficit (USD $) | Total | Common Stock | Due from Parent | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income |
In Thousands, except Share data, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance at Dec. 31, 2011 | ($133,203) | ' | ' | $1,085 | ($134,659) | $371 |
Balance (in shares) at Dec. 31, 2011 | ' | 1 | ' | ' | ' | ' |
Increase (Decrease) in Stockholder's Equity | ' | ' | ' | ' | ' | ' |
Net loss | -42,001 | ' | ' | ' | -42,001 | ' |
Due from parent (See Note 14) | -1,353 | ' | -1,353 | ' | ' | ' |
Foreign currency translation | 964 | ' | ' | ' | ' | 964 |
Stock-based compensation | 1,240 | ' | ' | 1,240 | ' | ' |
Balance at Dec. 31, 2012 | -174,353 | ' | -1,353 | 2,325 | -176,660 | 1,335 |
Balance (in shares) at Dec. 31, 2012 | ' | 1 | ' | ' | ' | ' |
Increase (Decrease) in Stockholder's Equity | ' | ' | ' | ' | ' | ' |
Net loss | -49,376 | ' | ' | ' | -49,376 | ' |
Payments from parent | 111 | ' | 111 | ' | ' | ' |
Foreign currency translation | -1,176 | ' | ' | ' | ' | -1,176 |
Stock-based compensation | 735 | ' | ' | 735 | ' | ' |
Balance at Sep. 30, 2013 | ($224,059) | ' | ($1,242) | $3,060 | ($226,036) | $159 |
Balance (in shares) at Sep. 30, 2013 | ' | 1 | ' | ' | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flow from operating activities | ' | ' |
Net loss | ($49,376) | ($32,451) |
Adjustments to reconcile net loss to cash flow from operating activities | ' | ' |
Depreciation and amortization | 21,694 | 22,286 |
Provision for excess and obsolete inventory | 2,488 | 12,396 |
Impairment of land | 6,788 | ' |
Impairment of customer relationship intangible asset | 1,034 | ' |
Stock-based compensation | 735 | 1,066 |
Deferred income taxes | -315 | -136 |
Loss on firm purchase commitment | ' | 1,859 |
Other | 267 | 880 |
Increase (decrease) in cash from operating assets and liabilities | ' | ' |
Accounts receivable | 3,864 | -1,747 |
Other current assets | 1,443 | 785 |
Inventory | -1,871 | -2,324 |
Income taxes | 299 | -2,637 |
Deferred revenue | -4,088 | 1,734 |
Accounts payable | 556 | 2,574 |
Accrued expenses and other liabilities | 4,660 | 17,926 |
Cash (used in) provided by operating activities | -11,822 | 22,211 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -3,711 | -4,900 |
Purchase of certificate of deposit | ' | -225 |
Cash used in investing activities | -3,711 | -5,125 |
Cash flows from financing activities | ' | ' |
Payments on note payable | -1,174 | -1,375 |
Proceeds from line of credit | 8,000 | ' |
Deferred financing costs | -1,188 | -198 |
Payments from parent | 111 | 44 |
Cash provided by (used in) financing activities | 5,749 | -1,529 |
Effect of foreign exchange rate on cash | -949 | 680 |
(Decrease) increase in cash and cash equivalents | -10,733 | 16,237 |
Cash and cash equivalents, beginning of period | 31,595 | 40,607 |
Cash and cash equivalents, end of period | 20,862 | 56,844 |
Supplemental disclosure of cash flow information | ' | ' |
Interest paid | 19,639 | 19,520 |
Income taxes (refunded) paid, net | -30 | 1,346 |
Noncash investing and financing activities | ' | ' |
Property, plant and equipment included in accounts payable and accrued expenses and other liabilities | $809 | $1,464 |
Business_Overview
Business Overview | 9 Months Ended |
Sep. 30, 2013 | |
Business Overview | ' |
Business Overview | ' |
1. Business Overview | |
Overview | |
The Company manufactures, markets, sells and distributes medical imaging products globally with operations in the United States, Puerto Rico, Canada and Australia and distribution relationships in Europe, Asia Pacific and Latin America. The Company provides medical imaging products, primarily focused on cardiovascular diagnostic imaging, to nuclear physicians, cardiologists, radiologists, internal medicine physicians, independent delivery networks, group purchasing organizations and technologists/sonographers working in a variety of clinical settings. | |
The Company's principal products include: | |
• | |
DEFINITY—an ultrasound contrast agent; | |
• | |
TechneLite—a generator that provides the radioisotope used to radiolabel Cardiolite and other radiopharmaceuticals; | |
• | |
Cardiolite—a myocardial perfusion imaging agent; and | |
• | |
Xenon—a radiopharmaceutical inhaled gas to assess pulmonary function and evaluate blood flow, particularly in the lungs. | |
In the U.S., the Company's nuclear imaging products are primarily distributed through radiopharmacy chains, with a small portion of the sales of these products also made to hospitals and clinics that maintain their own in-house radiopharmacies. In the U.S., sales of the Company's contrast agents are made through a direct sales force. Outside of the U.S., the Company owns five radiopharmacies in Canada and two radiopharmacies in each of Puerto Rico and Australia. The Company also maintains a direct sales force in each of these countries. In the rest of the world, the Company relies on third-party distributors to sell both nuclear imaging and contrast agent products. | |
Basis of Consolidation and Presentation | |
The financial statements have been prepared in United States dollars, in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |
In the opinion of the Company's management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the Company's financial statements for interim periods in accordance with U.S. GAAP. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company's consolidated financial statements and the accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012 ("2012 Form 10-K"). The Company's accounting policies are described in the "Notes to Consolidated Financial Statements" in the 2012 Form 10-K and updated, as necessary, in this Form 10-Q. There were no changes to the Company's accounting policies since December 31, 2012. The year-end condensed consolidated balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period. | |
Recent Events | |
The Company generated a net loss of $49.4 million during the nine months ended September 30, 2013 and had an accumulated deficit of $226.0 million at September 30, 2013. The Company currently relies on Ben Venue Laboratories ("BVL") as one of two manufacturers of DEFINITY and Cardiolite products and its sole source manufacturer of Neurolite. In July 2010, BVL temporarily shut down the facility in which it manufactures products for a number of customers, including the Company, in order to upgrade the facility to meet certain regulatory requirements. BVL resumed manufacturing DEFINITY in the second quarter of 2012 and released product to the Company at the end of the second quarter of 2012. BVL also resumed manufacturing Cardiolite products in the second quarter of 2012 and Neurolite in the third quarter of 2013. | |
The Company continues to expedite a number of its technology transfer programs to secure and qualify production of its BVL-manufactured products with alternate contract manufacturer sites. In February 2013, the FDA informed the Company that the Jubilant HollisterStier ("JHS") facility was approved to manufacture DEFINITY, and the Company is now shipping JHS-manufactured DEFINITY to customers. The Company also has on-going technology transfer activities at JHS for its Cardiolite product supply and Neurolite but is not certain as to when that technology transfer will be completed and when the Company will actually receive supply of Cardiolite products and Neurolite from JHS. In the meantime, the Company also has an alternate manufacturer for a portion of its Cardiolite sales demand. The Company is also pursuing new manufacturing relationships to establish and secure additional long-term or alternative suppliers of its key products. For example, on November 12, 2013, the Company signed a five-year agreement with Pharmalucence, Inc. to become an additional supplier of DEFINITY. The Company is uncertain of the timing as to when any new supply arrangements would provide meaningful quantities of products to the Company. | |
On October 3, 2013, BVL announced that it was ceasing to manufacture further new batches of the Company's products in its Bedford, Ohio facility. The Company believes that it should have sufficient product inventory of DEFINITY manufactured at JHS and Cardiolite products manufactured at its alternative manufacturer until all technology transfer programs and all necessary U.S. and international regulatory approvals for the products have been obtained. Depending upon the timing of certain international regulatory approvals in connection with the manufacture of Neurolite at JHS, Neurolite may not be available in some international markets in the latter half of 2014 until such international regulatory approvals can be obtained. | |
During the three and nine months ended September 30, 2012, the Company received $0.8 million and $34.6 million, respectively, from BVL to compensate the Company for its business losses associated with the lack of product supply during the outage pursuant to a settlement agreement and a transition services agreement. These payments are included within operating loss as proceeds from manufacturer in the accompanying statement of comprehensive loss. During the second quarter of 2013, the Company received $0.9 million from BVL to compensate the Company for the cost of low yield and failed batches of DEFINITY and Cardiolite under a manufacturing and service contract. This payment is included within cost of goods sold in the statement of comprehensive loss for the nine months ended September 30, 2013. The Company continues to experience losses as a result of the prolonged supply disruption from BVL. | |
On July 3, 2013, LMI, Lantheus Intermediate and Lantheus MI Real Estate, LLC ("Lantheus Real Estate") entered into an amended and restated revolving credit facility (the "New Facility") which replaced the previous facility (the "Old Facility"), the terms of which New Facility are more fully described in Note 10. Borrowing capacity under the New Facility is calculated by reference to a borrowing base consisting of a percentage of certain eligible accounts receivable, inventory and machinery and equipment minus any reserves (the "Borrowing Base"). If the Company is not successful in achieving its forecasted results, the Company's accounts receivable and inventory could be negatively affected, thus reducing the Borrowing Base and limiting the Company's borrowing capacity. As of September 30, 2013, the aggregate borrowing base was approximately $37.0 million, which was reduced by (i) an outstanding $8.8 million unfunded Standby Letter of Credit and (ii) an $8.0 million outstanding loan balance, resulting in a net borrowing base availability of approximately $20.2 million. | |
The Company took actions during March 2013 to substantially reduce its discretionary spending. In particular, the Company began to implement a strategic shift in how it will fund its research and development ("R&D") programs. The Company is reducing its internal R&D resources during 2013, while at the same time seeking to engage one or more strategic partners to assist in the further development and commercialization of its development candidates, including flurpiridaz F 18, 18F LMI 1195 and LMI 1174. The Company has completed its 301 trial for flurpiridaz F 18 with internal funding and is currently analyzing the data from the trial. The Company will seek to engage strategic partners to assist with the further development and possible commercialization of the agent. For the other two development candidates, 18F LMI 1195 and LMI 1174, the Company will also seek to engage strategic partners to assist with the ongoing development activities relating to these agents. Based on the Company's current operating plans, the Company believes the existing cash and cash equivalents, results of operations and availability under the New Facility will be sufficient to continue to fund the Company's liquidity requirements for at least the next twelve months. | |
The Company is currently completing its annual strategic planning process, which is expected to be completed during the fourth quarter of 2013. The resulting forecast and its key assumptions, including those related to asset utilization, could result in triggering events in which certain long-lived assets and intangible assets would be assessed for recoverability. If a triggering event is identified, the Company will assess the long-lived assets or intangible assets for potential impairment. | |
Use of Estimates | |
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The more significant estimates reflected in the Company's condensed consolidated financial statements include certain judgments regarding revenue recognition, goodwill and intangible asset valuation, fixed asset valuation, inventory valuation and potential losses on purchase commitments, asset retirement obligations, income tax liabilities, deferred tax assets and liabilities, accrued expenses and stock-based compensation. Actual results could materially differ from those estimates or assumptions. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
2. Summary of Significant Accounting Policies | |
Revenue Recognition | |
The Company recognizes revenue when evidence of an arrangement exists, title has passed, the risks and rewards of ownership have transferred to the customer, the selling price is fixed or determinable, and collectability is reasonably assured. For transactions for which revenue recognition criteria have not yet been met, the respective amounts are recorded as deferred revenue until such point in time the criteria are met and revenue can be recognized. Revenue is recognized net of reserves, which consist of allowances for returns and rebates. | |
Revenue arrangements with multiple elements are divided into separate units of accounting if certain criteria are met, including whether the delivered element has stand-alone value to the customer. The arrangement's consideration is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. The estimated selling price of each deliverable is determined using the following hierarchy of values: (i) vendor-specific objective evidence of fair value; (ii) third-party evidence of selling price; and (iii) best estimate of selling price. The best estimate of selling price reflects the Company's best estimate of what the selling price would be if the deliverable was regularly sold by the Company on a stand-alone basis. The consideration allocated to each unit of accounting is then recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. Supply or service transactions may involve the charge of a nonrefundable initial fee with subsequent periodic payments for future products or services. The up-front fees, even if nonrefundable, are earned (and revenue is recognized) as the products and/or services are delivered and performed over the term of the arrangement. | |
Goodwill | |
Goodwill is not amortized, but is instead tested for impairment at least annually and whenever events or circumstances indicate that it is more likely than not that it may be impaired. The Company has elected to perform the annual test for indications of goodwill impairment as of October 31 of each year. All goodwill has been allocated to the U.S. operating segment. | |
The strategic shift in how the Company funds its R&D programs significantly altered the expected future costs and revenues associated with the Company's development candidates. Accordingly, this action was deemed to be a triggering event for an evaluation of the recoverability of the Company's goodwill as of March 31, 2013. The Company performed an interim impairment test and determined that there was no goodwill impairment as of March 31, 2013. There were no events as of September 30, 2013 and December 31, 2012 that triggered an interim impairment test of goodwill. | |
The Company calculates the fair value of its reporting units using the income approach which utilizes discounted forecasted future cash flows and the market approach, which utilizes fair value multiples of comparable publicly traded companies. The discounted cash flows are based on the Company's most recent long-term financial projections and are discounted using a risk adjusted rate of return which is determined using estimates of market participant risk-adjusted weighted-average costs of capital and reflects the risks associated with achieving future cash flows. The market approach is calculated using the guideline company method, where the Company uses market multiples derived from stock prices of companies engaged in the same or similar lines of business. A combination of the two methods is utilized to derive the fair value of the business in order to decrease the inherent risk associated with each model if used independently. | |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
3. Fair Value of Financial Instruments | ||||||||||||||
The tables below present information about the Company's assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points from active markets that are observable, such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs utilize unobservable data points for the asset or liability. | ||||||||||||||
September 30, 2013 | Total fair | Quoted prices | Significant other | Significant | ||||||||||
(in thousands) | value | in active | observable | unobservable | ||||||||||
markets | inputs | inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||
Money market | $ | 2,130 | $ | 2,130 | $ | — | $ | — | ||||||
Certificates of deposit—restricted | 325 | — | 325 | — | ||||||||||
Total | $ | 2,455 | $ | 2,130 | $ | 325 | $ | — | ||||||
December 31, 2012 | Total fair | Quoted prices | Significant other | Significant | ||||||||||
(in thousands) | value | in active | observable | unobservable | ||||||||||
markets | inputs | inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||
Money market | $ | 2,004 | $ | 2,004 | $ | — | $ | — | ||||||
Certificates of deposit—restricted | 328 | — | 328 | — | ||||||||||
Total | $ | 2,332 | $ | 2,004 | $ | 328 | $ | — | ||||||
At both September 30, 2013 and December 31, 2012, the Company has a $0.2 million certificate of deposit for which the Company's use of such cash is restricted and is included in the line item "Certificates of deposit—restricted" above. This investment is classified in other current assets on the condensed consolidated balance sheet. The remaining $0.1 million at both September 30, 2013 and December 31, 2012 represents a certificate of deposit that is collateral for a long-term lease and is included in other long-term assets on the condensed consolidated balance sheet. Certificates of deposit are classified within Level 2 of the fair value hierarchy, as these are not traded on the open market. | ||||||||||||||
At September 30, 2013, the Company had total cash and cash equivalents of $20.9 million, which included approximately $2.1 million of money market funds and $18.8 million of cash on-hand. At December 31, 2012, the Company had total cash and cash equivalents of $31.6 million, which included approximately $2.0 million of money market funds and $29.6 million of cash on-hand. | ||||||||||||||
The estimated fair values of the Company's financial instruments, including its cash and cash equivalents, receivables, accounts payable, accrued expenses, line of credit and note payable approximate the carrying values of these instruments due to their short term nature. The estimated fair value of the debt at September 30, 2013, based on Level 2 inputs of recent market activity available to the Company, was $356.0 million compared to the face value of $400.0 million. At December 31, 2012, the estimated fair value of the debt was $380.0 million compared to the face value of $400.0 million. | ||||||||||||||
The table below presents information about the Company's assets and liabilities that are measured at fair value on a nonrecurring basis as of September 30, 2013 due to the remeasurement of assets resulting in impairment charges. | ||||||||||||||
September 30, 2013 | Total fair | Quoted prices | Significant other | Significant | ||||||||||
(in thousands) | value | in active | observable | unobservable | ||||||||||
markets | inputs | inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||
Customer relationships | $ | 737 | $ | — | $ | — | $ | 737 | ||||||
Total | $ | 737 | $ | — | $ | — | $ | 737 | ||||||
During the third quarter of 2013, the Company recorded an impairment charge of $6.8 million to write down the carrying value of excess land held for sale in the U.S. segment to its fair value, less estimated costs to sell. See Note 6 for further discussion regarding the impairment charge. The fair value of land held for sale was determined using Level 3 inputs and was estimated using a market approach, based on available data for transactions in the region, discussions with real estate brokers and the asking price of comparable properties in its principal market. Unobservable inputs obtained from third parties are adjusted as necessary for the condition and attributes of the specific asset. | ||||||||||||||
During the third quarter of 2013, the Company recorded an impairment charge of $1.0 million to write down the carrying value of acquired customer relationship intangible assets in the International segment to its fair value. See Note 8 for further discussion regarding the impairment charge. The determination of the acquired customer relationship intangible assets impairment charge was based on Level 3 measurements under the fair value hierarchy. The Company utilized an income approach to calculate the discounted cash flows that would be generated by its remaining customer base. The unobservable inputs utilized by the Company included management's assumptions regarding future revenues and profitability from the remaining customers and a discount rate of 15%. | ||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
4. 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 fiscal year in addition to discrete events which impact the interim period. The Company's effective tax rate differs from the U.S. statutory rate principally due to the rate impact of uncertain tax positions, valuation allowance changes and state taxes. Cumulative adjustments to the tax provision are recorded in the interim period in which a change in the estimated annual effective rate is determined. The Company's tax benefit was $0.3 million and a provision of $0.3 million for the three and nine months ended September 30, 2013, respectively, compared to a tax benefit of $2.6 million and $0.9 million for the three and nine months ended September 30, 2012, respectively. | |
In connection with the Company's acquisition of the medical imaging business from Bristol-Myers Squibb Company ("BMS") in 2008, the Company obtained a tax indemnification agreement with BMS related to certain tax obligations arising prior to the acquisition of the Company, for which the Company has the primary legal obligation. The tax indemnification receivable is recognized within other long-term assets. The changes in the tax indemnification asset are recognized within other income, net in the condensed consolidated statement of comprehensive loss. In accordance with the Company's accounting policy, the change in the tax liability and penalties and interest associated with these obligations (net of any offsetting federal or state benefit) is recognized within the tax provision. Accordingly, as these reserves change, adjustments are included in the tax provision while the offsetting adjustment is included in other income (expense). Assuming that the receivable from BMS continues to be considered recoverable by the Company, there is no net effect on earnings related to these liabilities and no net cash outflows. | |
The statute of limitations for the year ended December 31, 2009 U.S. tax return expired during the period ended September 30, 2013. As a result, the Company recognized the benefit associated with the reversal of uncertain tax positions of $0.8 million in the three and nine months ended September 30, 2013. The statute of limitations for the year ended December 31, 2008 U.S. tax return expired during the period ended September 30, 2012. As a result, the Company recognized the benefit associated with the reversal of uncertain tax positions of $1.3 million and taxes payable of $2.3 million in the three and nine months ended September 30, 2012. Within the next twelve months, approximately $0.4 million of unrecognized tax benefits primarily relating to transfer pricing may be recognized due to the closing of statutes of limitation. | |
Inventory
Inventory | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory | ' | |||||||
Inventory | ' | |||||||
5. Inventory | ||||||||
The Company includes within current assets the amount of inventory that is estimated to be utilized within twelve months. Inventory that will be utilized after twelve months is classified within other long-term assets. | ||||||||
Inventory, classified in inventory or other long-term assets, consisted of the following: | ||||||||
(in thousands) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Raw materials | $ | 7,583 | $ | 7,573 | ||||
Work in process | 5,212 | 5,019 | ||||||
Finished goods | 4,242 | 5,456 | ||||||
Inventory | 17,037 | 18,048 | ||||||
Other long-term assets | 2,533 | 2,090 | ||||||
Total | $ | 19,570 | $ | 20,138 | ||||
At September 30, 2013, inventories reported as other long-term assets included $2.5 million of raw materials. At December 31, 2012, inventories reported as other long-term assets included $1.5 million of raw materials and $0.6 million of finished goods. | ||||||||
The Company's Ablavar product was commercially launched in January 2010. The revenues for this product through September 30, 2013 have not been significant. At September 30, 2013 and December 31, 2012, the balances of inventory on-hand reflect approximately $3.4 million and $2.8 million, respectively, of finished products and raw materials related to Ablavar. LMI has an agreement with a supplier to provide Active Pharmaceutical Ingredient and finished products for Ablavar under which LMI is required to purchase future minimum quantities through September 30, 2014. At September 30, 2013, $3.7 million is included in accounts payable and the remaining future purchase commitment under the agreement is approximately $1.8 million. The Company has a contract loss reserve of $1.3 million and $7.5 million associated with the portion of the committed purchases of Ablavar product from the Company's supplier that the Company did not believe it would sell prior to expiry at September 30, 2013 and December 31, 2012, respectively. The Company records the inventory when it takes delivery, at which time the Company assumes title and risk of loss. | ||||||||
Prior to the issuance of the September 30, 2012 financial statements, the Company implemented a realignment and reduction in the sales force dedicated to Ablavar. The Company performed an analysis of expected future sales of its Ablavar product, based on an updated sales forecast reflecting the reduction in sales force personnel dedicated to Ablavar, and recorded in the third quarter of 2012 to cost of goods sold an inventory write-down of $10.6 million and a reserve of $1.9 million associated with the portion of the committed purchases of Ablavar product that the Company did not believe it would sell prior to expiry. | ||||||||
In 2013, the Company transitioned the sales and marketing efforts for Ablavar from its direct sales force to the Company's customer service team in order to allow the direct sales force to drive DEFINITY growth following the Company's recent supply challenges. In the event that the Company does not meet its revised sales expectations for Ablavar or cannot sell the product it has committed to purchase prior to its expiration, the Company could incur additional inventory write-downs and/or losses on its purchase commitments. | ||||||||
Property_Plant_and_Equipment_n
Property, Plant and Equipment, net | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment, net | ' | |||||||
Property, Plant and Equipment, net | ' | |||||||
6. Property, Plant and Equipment, net | ||||||||
Property, plant and equipment consisted of the following: | ||||||||
(in thousands) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Land | $ | 14,950 | $ | 22,450 | ||||
Buildings | 65,553 | 64,649 | ||||||
Machinery, equipment and fixtures | 65,413 | 63,503 | ||||||
Construction in progress | 7,423 | 7,331 | ||||||
Accumulated depreciation | (54,607 | ) | (48,360 | ) | ||||
Property, plant and equipment, net | $ | 98,732 | $ | 109,573 | ||||
Depreciation expense related to property, plant and equipment was $2.3 million and $7.1 million, respectively, for the three and nine months ended September 30, 2013, as compared to $2.4 million and $7.2 million, respectively, for the three and nine months ended September 30, 2012. | ||||||||
Included within machinery, equipment and fixtures are spare parts of approximately $2.6 million and $2.7 million, respectively, at September 30, 2013 and December 31, 2012. Spare parts include replacement parts relating to plant and equipment and are either recognized as an expense when consumed or re-classified and capitalized as part of the related plant and equipment and depreciated over a time period not exceeding the useful life of the related asset. | ||||||||
The 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. The Company measures the recoverability of assets to be held and used by comparing the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment equals the amount by which the carrying amount of the assets exceeds the fair value of the assets. Any impairments are recorded as permanent reductions in the carrying amount of the assets. Long-lived assets, other than goodwill and other intangible assets, that are held for sale are recorded at the lower of the carrying value or the fair market value less the estimated cost to sell. In the second and third quarters of 2013, the Company reviewed certain long-lived assets, associated with U.S. and international operations, for recoverability and the analysis indicated that there was no impairment as of June 30, 2013 and September 30, 2013. The Company also evaluated the remaining useful lives of long-lived assets that were tested for recoverability at June 30, 2013 and September 30, 2013 and determined no revisions were required to the remaining periods of depreciation. | ||||||||
Fixed assets dedicated to R&D activities, which were impacted by the recent R&D strategic shift, have a carrying value of $6.6 million as of September 30, 2013. The Company believes these fixed assets will be utilized for either internally funded ongoing R&D activities or R&D activities funded by a strategic partner. If the Company is not successful in finding a strategic partner and there are no alternative uses for these fixed assets, then they could be subject to impairment in the future. | ||||||||
Long-Lived Assets Held for Sale | ||||||||
During the third quarter of 2013, the Company committed to a plan to sell certain of its excess land in the U.S. segment. This event qualified for held for sale accounting and the excess land was written down to its fair value, less estimated costs to sell, which is classified in other current assets on the condensed consolidated balance sheet. This resulted in a loss of $6.8 million, which is included within operating loss as impairment of land in the accompanying condensed consolidated statement of comprehensive loss. The fair value was estimated utilizing Level 3 inputs and using a market approach, based on available data for transactions in the region, discussions with real estate brokers and the asking price of comparable properties in its principal market. | ||||||||
On November 8, 2013, the Company sold the excess land for net proceeds of $1.1 million. | ||||||||
Asset_Retirement_Obligations
Asset Retirement Obligations | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Asset Retirement Obligations | ' | ||||
Asset Retirement Obligations | ' | ||||
7. Asset Retirement Obligations | |||||
The Company considers the legal obligation to remediate its facilities upon a decommissioning of its radioactive related operations as an asset retirement obligation. The operations of the Company have radioactive production facilities at its North Billerica, Massachusetts and San Juan, Puerto Rico sites. | |||||
The fair value of a liability for asset retirement obligations is recognized in the period in which the liability is incurred. The liability is measured at the present value of the obligation when incurred and is adjusted in subsequent periods as accretion expense is recorded. The corresponding asset retirement costs are capitalized as part of the carrying value of the related long-lived assets and depreciated over the asset's useful life. | |||||
The following is a reconciliation of the Company's asset retirement obligations for the nine months ended September 30, 2013: | |||||
(in thousands) | |||||
Balance at January 1, 2013 | $ | 5,416 | |||
Net increase due to changes in estimated future cash flows | 341 | ||||
Accretion expense | 462 | ||||
Balance at September 30, 2013 | $ | 6,219 | |||
Intangibles_net
Intangibles, net | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Intangibles, net | ' | |||||||||||||
Intangibles, net | ' | |||||||||||||
8. Intangibles, net | ||||||||||||||
Intangibles, net consisted of the following: | ||||||||||||||
September 30, 2013 | ||||||||||||||
(in thousands) | Cost | Accumulated | Net | Weighted | Amortization | |||||||||
amortization | Average | Method | ||||||||||||
Useful Life | ||||||||||||||
Trademarks | $ | 53,390 | $ | 25,967 | $ | 27,423 | 8 years | Straight-line | ||||||
Customer relationships | 107,427 | 83,169 | 24,258 | 19 years | Accelerated | |||||||||
Other patents | 42,780 | 39,695 | 3,085 | 2 years | Straight-line | |||||||||
$ | 203,597 | $ | 148,831 | $ | 54,766 | |||||||||
December 31, 2012 | ||||||||||||||
(in thousands) | Cost | Accumulated | Net | Weighted | Amortization | |||||||||
amortization | Average | Method | ||||||||||||
Useful Life | ||||||||||||||
Trademarks | $ | 53,390 | $ | 20,743 | $ | 32,647 | 8 years | Straight-line | ||||||
Customer relationships | 114,000 | 83,385 | 30,615 | 19 years | Accelerated | |||||||||
Other patents | 42,780 | 39,240 | 3,540 | 2 years | Straight-line | |||||||||
$ | 210,170 | $ | 143,368 | $ | 66,802 | |||||||||
During the third quarter of 2013, the Company was in negotiations with a new distributor for the sale of certain products within certain international geographies. This agreement was signed in October 2013 and the Company did not renew the agreements with its former distributors in these international geographies. Therefore, the Company reviewed the recoverability of certain of its customer relationship intangible assets in the International segment. The Company completed an update of its sales forecast based on current negotiations with new customers and its impact on its existing customer base. The Company, using its revised sales forecast, conducted an impairment analysis and concluded that the estimate of future undiscounted cash flows associated with the acquired customer relationships did not exceed the carrying amount of the asset and therefore, the asset would need to be written down to its fair value. In order to calculate the fair value of the acquired customer relationship intangible assets, the Company utilized Level 3 inputs to estimate the future discounted cash flows associated with remaining customers and as a result of this analysis, recorded an impairment charge of $1.0 million to adjust the carrying value to its fair value. This expense was recorded within cost of goods sold in the accompanying condensed consolidated statement of comprehensive loss for the three and nine months ended September 30, 2013. The Company also evaluated the remaining useful life of its acquired customer relationship intangible assets and revised its estimate to five years on a prospective basis at September 30, 2013. | ||||||||||||||
The Company continues to monitor the recoverability of the $20.8 million branded Cardiolite trademark intangible asset due to the ongoing generic competition based on actual results and existing estimates of future undiscounted cash flows associated with the branded Cardiolite product. As of September 30, 2013, the Company tested this intangible asset for recoverability and concluded this intangible asset was recoverable by a narrow margin. | ||||||||||||||
For the three and nine months ended September 30, 2013, the Company recorded amortization expense for its intangible assets of $3.6 million and $10.8 million, respectively, as compared to $4.0 million and $12.1 million, respectively, for the prior year comparative periods. | ||||||||||||||
Expected future amortization expense related to the intangible assets is as follows: | ||||||||||||||
(in thousands) | ||||||||||||||
Remainder of 2013 | $ | 3,525 | ||||||||||||
2014 | 12,943 | |||||||||||||
2015 | 11,346 | |||||||||||||
2016 | 10,655 | |||||||||||||
2017 | 3,688 | |||||||||||||
2018 and thereafter | 12,609 | |||||||||||||
$ | 54,766 | |||||||||||||
Accrued_Expenses_and_Other_Lia
Accrued Expenses and Other Liabilities | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accrued Expenses and Other Liabilities | ' | |||||||
Accrued Expenses and Other Liabilities | ' | |||||||
9. Accrued Expenses and Other Liabilities | ||||||||
Accrued expenses and other liabilities are comprised of the following: | ||||||||
(in thousands) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Compensation and benefits | $ | 8,710 | $ | 5,351 | ||||
Accrued interest | 14,650 | 5,040 | ||||||
Accrued professional fees | 1,024 | 1,628 | ||||||
Research and development services | 1,857 | 3,205 | ||||||
Freight, distribution and operations | 2,748 | 3,633 | ||||||
Accrued loss on firm purchase commitment | 1,315 | 7,469 | ||||||
Marketing expense | 961 | 1,168 | ||||||
Accrued rebates, discounts and chargebacks | 1,626 | 1,542 | ||||||
Accrued severance | 1,176 | — | ||||||
Other | 444 | 653 | ||||||
$ | 34,511 | $ | 29,689 | |||||
As of September 30, 2013 and December 31, 2012, the Company has a contract loss reserve of $1.3 million and $7.5 million, respectively, associated with the portion of the committed purchases of Ablavar product from the Company's supplier that the Company did not believe it would sell prior to expiry. | ||||||||
During March 2013, the Company took additional actions to reduce its workforce, which resulted in a $2.7 million charge to the condensed consolidated statement of comprehensive loss for severance expense during the first quarter of 2013. At September 30, 2013, $0.8 million associated with these actions is included in accrued severance. | ||||||||
Financing_Arrangements
Financing Arrangements | 9 Months Ended |
Sep. 30, 2013 | |
Financing Arrangements | ' |
Financing Arrangements | ' |
10. Financing Arrangements | |
Senior Notes | |
LMI has $400.0 million in aggregate principal amount of Senior Notes (the "Notes") outstanding. The Notes bear interest at a rate of 9.750% per year, payable on May 15 and November 15 of each year. The Notes mature on May 15, 2017. | |
Revolving Line of Credit | |
As of December 31, 2012, LMI had outstanding the Old Facility with an aggregate principal amount not to exceed $42.5 million and an interest rate of LIBOR plus 3.75% or the Reference Rate (as defined in the agreement) plus 2.75%. The Old Facility also contained an unused line of credit fee of 0.75%, which was payable quarterly. At December 31, 2012, there was no outstanding balance under the Old Facility, other than the $8.8 million unfunded Standby Letter of Credit, and the aggregate borrowing capacity was $33.7 million. On July 3, 2013, LMI, Lantheus Intermediate and Lantheus Real Estate entered into the New Facility which replaced the Old Facility. | |
As of September 30, 2013, LMI has a New Facility with an aggregate principal amount not to exceed $42.5 million. The revolving loans under the New Facility bear interest subject to a pricing grid based on average historical excess availability under the New Facility, with pricing based from time to time at the election of the Company at (i) LIBOR plus a spread ranging from 2.00% to 2.50% or (ii) the Reference Rate (as defined in the agreement) plus a spread ranging from 1.00% to 1.50%. The New Facility also includes an unused line fee of 0.375% or 0.5%, depending on the average unused revolving credit commitments. The New Facility expires on the earlier of (i) July 3, 2018 or (ii) if the outstanding Notes are not refinanced in full, the date that is 91 days before the maturity thereof, at which time all outstanding borrowings are due and payable. | |
On August 6, 2013, the Company transferred the $8.8 million unfunded Standby Letter of Credit, which expires on February 3, 2014, to the new lender. The unfunded Standby Letter of Credit bears interest at an annual rate between 2.00% and 2.50%, which is payable quarterly, and is automatically renewed for a one year period at each anniversary date, unless the Company elects not to renew in writing within 60 days prior to such expiration. | |
The New Facility is secured by a pledge of substantially all of the assets of each of the Company, LMI and Lantheus Real Estate, including each entity's accounts receivable, inventory and machinery and equipment, and is guaranteed by each of Lantheus Intermediate and Lantheus Real Estate. Borrowing capacity is determined by reference to a borrowing base, which is based on (i) a percentage of certain eligible accounts receivable, inventory and machinery and equipment minus (ii) any reserves. As of September 30, 2013, the aggregate borrowing base was approximately $37.0 million, which was reduced by (i) an outstanding $8.8 million unfunded Standby Letter of Credit and (ii) an $8.0 million outstanding loan balance, resulting in a net borrowing base availability of approximately $20.2 million. | |
The New Facility contains affirmative and negative covenants, as well as restrictions on the ability of the Company and its subsidiaries to: (i) incur additional indebtedness or issue preferred stock; (ii) repay subordinated indebtedness prior to its stated maturity; (iii) pay dividends on, repurchase or make distributions in respect of capital stock or make other restricted payments; (iv) make certain investments; (v) sell certain assets; (vi) create liens; (vii) consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; and (viii) enter into certain transactions with its affiliates. The New Facility also contains customary default provisions as well as cash dominion provisions which allow the lender to sweep its accounts during the period certain specified events of default are continuing under the New Facility or excess availability under the New Facility falls below (i) the greater of $5.0 million or 15% of the then-current borrowing base for a period of more than five consecutive Business Days or (ii) $3.5 million. During a cash dominion period, the Company is required to comply with a consolidated fixed charge coverage ratio of not less than 1:00:1:00. The fixed charge coverage ratio is calculated on a consolidated basis for Lantheus Intermediate and its subsidiaries for a trailing four-fiscal quarter period basis, as (i) EBITDA minus capital expenditures minus certain restricted payments divided by (ii) interest plus taxes paid or payable in cash plus certain restricted payments made in cash plus scheduled principal payments paid or payable in cash. | |
In connection with the New Facility, LMI incurred approximately $1.1 million in fees and expenses as of September 30, 2013, which are being amortized on a straight-line basis over the term of the New Facility. The Company wrote off $0.6 million of the existing unamortized deferred financing costs related to the Old Facility, which is included in interest expense in the accompanying condensed consolidated statements of comprehensive loss. | |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||
11. Stock-Based Compensation | ||||||||||||||||||||
The Company's employees are eligible to receive awards under the Holdings 2013 Equity Incentive Plan (the "2013 Plan"). The 2013 Plan is administered by the Holdings Board of Directors and permits the granting of nonqualified stock options, stock appreciation rights (or SARs), restricted stock and restricted stock units to employees, officers, directors and consultants of Holdings or any subsidiary of Holdings (including Lantheus Intermediate and LMI). On August 5, 2013, the Holdings Board of Directors adopted a resolution providing that no further grants be made under the Holdings 2008 Equity Incentive Plan (the "2008 Plan"). At the same time, the maximum number of shares that may be issued pursuant to awards under the 2013 Plan was increased from 1,500,000 to 2,700,000. Option awards under the 2013 Plan are granted with an exercise price equal to the fair value of Holdings' stock at the date of grant, as determined by the Board of Directors of Holdings. Time based option awards vest based on time, either four or five years, and performance based option awards vest based on the performance criteria specified in the grant. All option awards have a ten year contractual term. The Company recognizes compensation costs for its time based awards on a straight-line basis equal to the vesting period. The compensation cost for performance based awards is recognized on a graded vesting basis, based on the probability of achieving the performance targets over the requisite service period for the entire award. The fair value of each option award is estimated on the date of grant using a Black-Scholes valuation model that uses the assumptions noted in the following table. Expected volatilities are based on the historic volatility of a selected peer group. Expected dividends represent the dividends expected to be issued at the date of grant. The expected term of options represents the period of time that options granted are expected to be outstanding. The risk-free interest rate assumption is the U.S. Treasury rate at the date of the grant which most closely resembles the expected life of the options. | ||||||||||||||||||||
The Company uses the following Black-Scholes inputs to determine the fair value of new stock option grants. | ||||||||||||||||||||
Three Months | Nine Months Ended | |||||||||||||||||||
Ended | September 30, | |||||||||||||||||||
September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Expected volatility | 36 | % | 39 | % | 36 | % | 39 - 41 | % | ||||||||||||
Expected dividends | — | — | — | — | ||||||||||||||||
Expected life (in years) | 6.3 | 5.5 | 5.5 - 6.3 | 5.5 - 6.5 | ||||||||||||||||
Risk-free interest rate | 1.7 | % | 0.7 | % | 0.7 - 1.7 | % | 0.7 - 1.4 | % | ||||||||||||
A summary of option activity for 2013 is presented below: | ||||||||||||||||||||
Time Based | Performance | Total | Weighted | Weighted | Aggregate | |||||||||||||||
Based | Average | Average | Intrinsic | |||||||||||||||||
Exercise | Remaining | Value | ||||||||||||||||||
Price | Contractual | |||||||||||||||||||
Term | ||||||||||||||||||||
Outstanding at January 1, 2013 | 2,326,350 | 1,002,948 | 3,329,298 | $ | 3.11 | 5.6 | $ | 15,336,000 | ||||||||||||
Options granted | 1,340,177 | 600,000 | 1,940,177 | 6.77 | ||||||||||||||||
Options cancelled | (214,700 | ) | (257,655 | ) | (472,355 | ) | 2.22 | |||||||||||||
Options exercised | (583,750 | ) | (47,768 | ) | (631,518 | ) | 2 | |||||||||||||
Options forfeited or expired | (93,315 | ) | (66,201 | ) | (159,516 | ) | 8.38 | |||||||||||||
Outstanding at September 30, 2013 | 2,774,762 | 1,231,324 | 4,006,086 | 4.95 | 7.2 | $ | 7,240,000 | |||||||||||||
Vested and expected to vest at September 30, 2013 | 2,688,003 | 1,098,282 | 3,786,285 | 4.84 | 7.1 | $ | 7,240,000 | |||||||||||||
Exercisable at September 30, 2013 | 1,447,088 | 510,026 | 1,957,114 | 2.8 | 4.8 | $ | 7,240,000 | |||||||||||||
The weighted average grant-date fair value of options granted during the three and nine months ended September 30, 2013 was $2.53 and $2.45, respectively, as compared to $3.06 and $3.45 for the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||
During the nine months ended September 30, 2013, 631,518 stock options were exercised on a cashless basis for which 459,171 shares of Holdings common stock were issued. | ||||||||||||||||||||
Stock-based compensation expense for both time based and performance based awards was recognized in the condensed consolidated statements of comprehensive loss as follows: | ||||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||
Ended | Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Cost of goods sold | $ | 26 | $ | 30 | $ | 56 | $ | 47 | ||||||||||||
General and administrative | 62 | 175 | 553 | 811 | ||||||||||||||||
Sales and marketing | 46 | 24 | 86 | 80 | ||||||||||||||||
Research and development | 38 | 47 | 40 | 128 | ||||||||||||||||
Total stock-based compensation expense | $ | 172 | $ | 276 | $ | 735 | $ | 1,066 | ||||||||||||
Stock-based compensation expense recognized in the condensed consolidated statement of comprehensive loss for the three and nine months ended September 30, 2013 and 2012 are based on awards ultimately expected to vest as well as any changes in the probability of achieving certain performance features as required. | ||||||||||||||||||||
During the nine months ended September 30, 2013, the Company recognized $134,000 of stock-based compensation expense associated with the modification of two option agreements during the second quarter of 2013. The first modification was a new option award that was granted to replace the cancellation of a portion of an existing option award that changed the exercise price. The second modification changed the exercise price and the performance condition of the original award. During the nine months ended September 30, 2012, the Company recognized $0.6 million of stock-based compensation expense associated with the modification of three option agreements, two of which were effected in the first quarter of 2012 and one in the third quarter of 2012. The modification of these awards affected the vesting terms of the awards, allowing vesting to continue beyond the last day of employment, so long as the option holders, whom are no longer employees, continue to provide services to the Company or Avista Capital Partners, the majority stockholder of the Company's ultimate parent, as applicable. The Company used the following Black-Scholes inputs to determine the fair value of stock options that were modified during the nine months ended September 30, 2013 and 2012. | ||||||||||||||||||||
Nine Months | Nine Months | |||||||||||||||||||
Ended | Ended | |||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||
Expected volatility | 36 - 37 | % | 30 - 36 | % | ||||||||||||||||
Expected dividends | — | — | ||||||||||||||||||
Expected term (in years) | 4.8 - 6.0 | 0.3 - 3.5 | ||||||||||||||||||
Risk-free interest rate | 0.7 - 0.9 | % | 0.3 - 0.8 | % | ||||||||||||||||
Upon termination of employee services, Holdings has the right to call shares held by employees that were purchased or acquired through option exercise. As a result of this right, upon termination of service, vested stock-based awards are reclassified to liability-based awards when it is probable the employee will exercise the option and Holdings will exercise its call right. The Company did not reclassify any equity awards to liability-based awards as of September 30, 2013 and December 31, 2012, since the Company concluded it was not probable that Holdings would exercise its call right. | ||||||||||||||||||||
The Company did not recognize an income tax benefit for the nine months ended September 30, 2013 and 2012. As of September 30, 2013, there was approximately $4.2 million of total unrecognized compensation costs related to non-vested stock options granted under the Plans. These costs are expected to be recognized over a weighted-average remaining period of 1.9 years. In addition, performance based awards contain certain contingent features, such as change in control provisions, which allow for the vesting of previously forfeited and unvested awards. As of September 30, 2013, there was approximately $0.9 million of unrecognized compensation expense relating to these features, which could be recognized through 2018 or longer. | ||||||||||||||||||||
Other_Income_Expense_net
Other Income (Expense), net | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Other Income (Expense), net | ' | |||||||||||||
Other Income (Expense), net | ' | |||||||||||||
12. Other Income (Expense), net | ||||||||||||||
Other income (expense), net consisted of the following: | ||||||||||||||
Three Months | Nine Months | |||||||||||||
Ended | Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Foreign currency losses | $ | (174 | ) | $ | (12 | ) | $ | (180 | ) | $ | (344 | ) | ||
Tax indemnification income (loss) | 434 | (882 | ) | 706 | (52 | ) | ||||||||
Other income | — | 60 | 368 | 148 | ||||||||||
Total other income (expense), net | $ | 260 | $ | (834 | ) | $ | 894 | $ | (248 | ) | ||||
Legal_Proceedings_and_Continge
Legal Proceedings and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Legal Proceedings and Contingencies | ' |
Legal Proceedings and Contingencies | ' |
13. Legal Proceedings and Contingencies | |
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 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 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. 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 September 30, 2013, the Company had no material on-going litigation in which the Company was a defendant or any material on-going regulatory or other proceedings and had no knowledge of any investigations by government or regulatory authorities in which the Company is a target that could have a material adverse effect on its current business. | |
On December 16, 2010, LMI filed suit against one of its insurance carriers seeking to recover business interruption losses associated with the NRU reactor shutdown and the ensuing global Moly supply shortage. The claim is the result of the shutdown of the NRU reactor in Chalk River, Ontario. The NRU reactor was off-line from May 2009 until August 2010 due to a "heavy water" leak in the reactor vessel. The defendant answered the complaint on January 21, 2011, denying substantially all of the allegations, presenting certain defenses and requesting dismissal of the case with costs and disbursements. On April 4, 2011, the parties had their first pre-trial conference in United States District Court for the Southern District of New York, and discovery has commenced and is continuing. The Company cannot be certain what amount, if any, or when, if ever, it will be able to recover for business interruption losses related to this matter. | |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
14. Related Party Transactions | |
At September 30, 2013 and December 31, 2012, LMI had outstanding receivables from Holdings in the amount of $1.2 million and $1.3 million, respectively, which was included in due from parent within stockholder's deficit. | |
In the third quarter of 2012, the Company entered into a Master Contract Research Organization Services Agreement with INC Research, LLC ("INC") to provide clinical development services in connection with the flurpiridaz F 18 Phase III program. The agreement has a term of five years and the Company incurred costs associated with this agreement totaling $0.5 million in the nine months ended September 30, 2013. No costs were incurred in the three months ended September 30, 2013. During the three and nine months ended September 30, 2012, the Company incurred costs associated with this agreement totaling $0.2 million. Avista Capital Partners and its affiliate are principal owners of both INC and the Company. At December 31, 2012, $0.5 million was included in accounts payable and accrued expenses. There was no balance outstanding at September 30, 2013. | |
Avista, the majority shareholder of LMI Holdings, provides certain advisory services to the Company pursuant to an advisory services and monitoring agreement. The Company is required to pay an annual fee of $1.0 million and other reasonable and customary advisory fees, as applicable, paid on a quarterly basis. The initial term of the agreement is seven years. Upon termination, all remaining amounts owed under the agreement shall become due immediately. During the three and nine months ended September 30, 2013, the Company incurred costs associated with this agreement totaling $0.3 million and $0.8 million, respectively. During the three and nine months ended September 30, 2012, the Company incurred costs associated with this agreement totaling $0.3 million and $0.8 million respectively. At both September 30, 2013 and December 31, 2012, $20,000 was included in accrued expenses. | |
The Company purchases inventory supplies from VWR Scientific ("VWR"). Avista Capital Partners and certain affiliates are principal owners of both VWR and the Company. The Company made purchases of $0.1 million and $0.2 million during the three and nine months ended September 30, 2013, respectively. The Company made purchases of $0.1 million and $0.2 million during the three and nine months ended September 30, 2012, respectively. At September 30, 2013 and December 31, 2012, $8,000 and $19,000, respectively, was included in accounts payable. | |
At both September 30, 2013 and December 31, 2012, the Company had $0.1 million due from an officer of the Company included in accounts receivable, net. These amounts represent federal and state tax withholdings paid by the Company on behalf of the officer. | |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Information | ' | |||||||||||||
Segment Information | ' | |||||||||||||
15. 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 our chief operating decision maker, the President and Chief Executive Officer. The Company's segments derive revenues through the manufacturing, marketing, selling and distribution of medical imaging products, focused primarily on cardiovascular diagnostic imaging. The U.S. segment comprises 73.9% and 74.8% of consolidated revenues for the three and nine months ended September 30, 2013, respectively, as compared to 74.7% and 71.8% for the prior year comparative periods and 89.0% and 86.7% of consolidated assets at September 30, 2013 and December 31, 2012, respectively. All goodwill has been allocated to the U.S. operating segment. | ||||||||||||||
Selected information for each business segment is as follows (in thousands): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Revenues | ||||||||||||||
U.S. | $ | 56,407 | $ | 60,108 | $ | 174,167 | $ | 169,297 | ||||||
International | 18,381 | 18,672 | 53,514 | 60,918 | ||||||||||
Total revenue, including inter-segment | 74,788 | 78,780 | 227,681 | 230,215 | ||||||||||
Less inter-segment revenue | (4,403 | ) | (5,035 | ) | (15,677 | ) | (14,358 | ) | ||||||
$ | 70,385 | $ | 73,745 | $ | 212,004 | $ | 215,857 | |||||||
Revenues from external customers | ||||||||||||||
U.S. | $ | 52,004 | $ | 55,073 | $ | 158,490 | $ | 154,939 | ||||||
International | 18,381 | 18,672 | 53,514 | 60,918 | ||||||||||
$ | 70,385 | $ | 73,745 | $ | 212,004 | $ | 215,857 | |||||||
Operating loss | ||||||||||||||
U.S. | $ | (5,116 | ) | $ | (21,580 | ) | $ | (18,414 | ) | $ | (12,291 | ) | ||
International | (54 | ) | 1,848 | 913 | 9,634 | |||||||||
Total operating loss, including inter-segment | (5,170 | ) | (19,732 | ) | (17,501 | ) | (2,657 | ) | ||||||
Inter-segment operating income (loss) | 602 | (265 | ) | (179 | ) | 787 | ||||||||
Operating loss | (4,568 | ) | (19,997 | ) | (17,680 | ) | (1,870 | ) | ||||||
Interest expense, net | (11,035 | ) | (10,464 | ) | (32,323 | ) | (31,277 | ) | ||||||
Other income (expense), net | 260 | (834 | ) | 894 | (248 | ) | ||||||||
Loss before income taxes | $ | (15,343 | ) | $ | (31,295 | ) | $ | (49,109 | ) | $ | (33,395 | ) | ||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Total Assets | ||||||||||||||
U.S. | $ | 251,816 | $ | 279,808 | ||||||||||
International | 31,209 | 43,118 | ||||||||||||
$ | 283,025 | $ | 322,926 | |||||||||||
Guarantor_Financial_Informatio
Guarantor Financial Information | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Guarantor Financial Information | ' | |||||||||||||||||||
Guarantor Financial Information | ' | |||||||||||||||||||
16. Guarantor Financial Information | ||||||||||||||||||||
The Notes, issued by LMI, are guaranteed by Lantheus Intermediate (the "Parent Guarantor") and Lantheus Real Estate, one of Lantheus Intermediate's wholly-owned consolidated subsidiaries (the "Guarantor Subsidiary"). The guarantees are full and unconditional and joint and several. The following supplemental financial information sets forth, on a condensed consolidating basis, balance sheet information as of September 30, 2013 and December 31, 2012, comprehensive (loss) income information for the three and nine months ended September 30, 2013 and 2012 and cash flow information for the nine months ended September 30, 2013 and 2012 for Lantheus Intermediate, LMI, the Guarantor Subsidiary and Lantheus Intermediate's other wholly-owned subsidiaries (the "Non-Guarantor Subsidiaries"). The condensed consolidating financial statements have been prepared on the same basis as the condensed consolidated financial statements of Lantheus Intermediate. The equity method of accounting is followed within this financial information. | ||||||||||||||||||||
Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 13,132 | $ | — | $ | 7,730 | $ | — | $ | 20,862 | ||||||||
Accounts receivable, net | — | 26,540 | — | 11,047 | — | 37,587 | ||||||||||||||
Intercompany accounts receivable | — | 2,541 | — | — | (2,541 | ) | — | |||||||||||||
Inventory | — | 14,842 | — | 2,195 | — | 17,037 | ||||||||||||||
Income tax receivable | — | 456 | — | (19 | ) | — | 437 | |||||||||||||
Deferred tax assets | — | — | — | 27 | — | 27 | ||||||||||||||
Other current assets | — | 2,494 | 712 | 256 | — | 3,462 | ||||||||||||||
Total current assets | — | 60,005 | 712 | 21,236 | (2,541 | ) | 79,412 | |||||||||||||
Property, plant and equipment, net | — | 76,641 | 15,635 | 6,456 | — | 98,732 | ||||||||||||||
Capitalized software development costs, net | — | 1,210 | — | 3 | — | 1,213 | ||||||||||||||
Intangibles, net | — | 50,551 | — | 4,215 | — | 54,766 | ||||||||||||||
Goodwill | — | 15,714 | — | — | — | 15,714 | ||||||||||||||
Deferred financing costs | — | 10,194 | — | — | — | 10,194 | ||||||||||||||
Investment in subsidiaries | (224,059 | ) | 42,526 | — | — | 181,533 | — | |||||||||||||
Intercompany note receivable | — | — | — | 2,249 | (2,249 | ) | — | |||||||||||||
Other long-term assets | — | 22,781 | — | 213 | — | 22,994 | ||||||||||||||
Total assets | $ | (224,059 | ) | $ | 279,622 | $ | 16,347 | $ | 34,372 | $ | 176,743 | $ | 283,025 | |||||||
Liabilities and (deficit) equity | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Line of credit | $ | — | $ | 8,000 | $ | — | $ | — | $ | — | $ | 8,000 | ||||||||
Accounts payable | — | 17,406 | — | 2,065 | — | 19,471 | ||||||||||||||
Intercompany accounts payable | — | — | — | 2,541 | (2,541 | ) | — | |||||||||||||
Accrued expenses and other liabilities | — | 31,377 | — | 3,134 | — | 34,511 | ||||||||||||||
Note payable | — | 119 | — | — | — | 119 | ||||||||||||||
Deferred revenue | — | 3,848 | — | — | — | 3,848 | ||||||||||||||
Total current liabilities | — | 60,750 | — | 7,740 | (2,541 | ) | 65,949 | |||||||||||||
Asset retirement obligation | — | 6,052 | — | 167 | — | 6,219 | ||||||||||||||
Long-term debt, net | — | 398,984 | — | — | — | 398,984 | ||||||||||||||
Deferred tax liability | — | — | — | 22 | — | 22 | ||||||||||||||
Intercompany note payable | — | 2,249 | — | — | (2,249 | ) | — | |||||||||||||
Other long-term liabilities | — | 35,646 | — | 264 | — | 35,910 | ||||||||||||||
Total liabilities | — | 503,681 | — | 8,193 | (4,790 | ) | 507,084 | |||||||||||||
(Deficit) equity | (224,059 | ) | (224,059 | ) | 16,347 | 26,179 | 181,533 | (224,059 | ) | |||||||||||
Total liabilities and (deficit) equity | $ | (224,059 | ) | $ | 279,622 | $ | 16,347 | $ | 34,372 | $ | 176,743 | $ | 283,025 | |||||||
Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 17,635 | $ | — | $ | 13,960 | $ | — | $ | 31,595 | ||||||||
Accounts receivable, net | — | 30,218 | — | 11,162 | — | 41,380 | ||||||||||||||
Intercompany accounts receivable | — | 1,992 | — | — | (1,992 | ) | — | |||||||||||||
Inventory | — | 15,417 | — | 2,631 | — | 18,048 | ||||||||||||||
Income tax receivable | — | 291 | — | 445 | — | 736 | ||||||||||||||
Deferred tax assets | — | — | — | 115 | — | 115 | ||||||||||||||
Other current assets | — | 2,596 | — | 347 | — | 2,943 | ||||||||||||||
Total current assets | — | 68,149 | — | 28,660 | (1,992 | ) | 94,817 | |||||||||||||
Property, plant and equipment, net | — | 78,578 | 23,195 | 7,800 | — | 109,573 | ||||||||||||||
Capitalized software development costs, net | — | 2,230 | — | 4 | — | 2,234 | ||||||||||||||
Intangibles, net | — | 60,370 | — | 6,432 | — | 66,802 | ||||||||||||||
Goodwill | — | 15,714 | — | — | — | 15,714 | ||||||||||||||
Deferred financing costs | — | 11,372 | — | — | — | 11,372 | ||||||||||||||
Investment in subsidiaries | (174,353 | ) | 58,166 | — | — | 116,187 | — | |||||||||||||
Other long-term assets | — | 22,192 | — | 222 | — | 22,414 | ||||||||||||||
Total assets | $ | (174,353 | ) | $ | 316,771 | $ | 23,195 | $ | 43,118 | $ | 114,195 | $ | 322,926 | |||||||
Liabilities and (deficit) equity | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable | $ | — | $ | 16,835 | $ | — | $ | 2,110 | $ | — | $ | 18,945 | ||||||||
Intercompany accounts payable | — | — | — | 1,992 | (1,992 | ) | — | |||||||||||||
Accrued expenses | — | 26,592 | — | 3,097 | — | 29,689 | ||||||||||||||
Deferred revenue | — | 7,229 | — | 91 | — | 7,320 | ||||||||||||||
Total current liabilities | — | 50,656 | — | 7,290 | (1,992 | ) | 55,954 | |||||||||||||
Asset retirement obligations | — | 5,268 | — | 148 | — | 5,416 | ||||||||||||||
Long-term debt, net | — | 398,822 | — | — | — | 398,822 | ||||||||||||||
Deferred tax liability | — | — | — | 435 | — | 435 | ||||||||||||||
Other long-term liabilities | — | 36,378 | — | 274 | — | 36,652 | ||||||||||||||
Total liabilities | — | 491,124 | — | 8,147 | (1,992 | ) | 497,279 | |||||||||||||
(Deficit) equity | (174,353 | ) | (174,353 | ) | 23,195 | 34,971 | 116,187 | (174,353 | ) | |||||||||||
Total liabilities and (deficit) equity | $ | (174,353 | ) | $ | 316,771 | $ | 23,195 | $ | 43,118 | $ | 114,195 | $ | 322,926 | |||||||
Condensed Consolidating Statement of Comprehensive (Loss) Income | ||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Net product revenues | $ | — | $ | 56,284 | $ | — | $ | 15,372 | $ | (4,403 | ) | $ | 67,253 | |||||||
License and other revenues | — | 3,132 | — | — | — | 3,132 | ||||||||||||||
Total revenues | — | 59,416 | — | 15,372 | (4,403 | ) | 70,385 | |||||||||||||
Cost of goods sold | — | 35,859 | — | 15,208 | (4,403 | ) | 46,664 | |||||||||||||
Gross profit | — | 23,557 | — | 164 | — | 23,721 | ||||||||||||||
Operating expenses | ||||||||||||||||||||
General and administrative expenses | — | 6,585 | 20 | 527 | — | 7,132 | ||||||||||||||
Sales and marketing expenses | — | 7,641 | — | 835 | — | 8,476 | ||||||||||||||
Research and development expenses | — | 5,779 | — | 114 | — | 5,893 | ||||||||||||||
Impairment of land | — | — | 6,788 | — | — | 6,788 | ||||||||||||||
Operating income (loss) | — | 3,552 | (6,808 | ) | (1,312 | ) | — | (4,568 | ) | |||||||||||
Interest expense, net | — | (11,083 | ) | — | 48 | — | (11,035 | ) | ||||||||||||
Other income (expense), net | — | 409 | — | (149 | ) | — | 260 | |||||||||||||
Equity in earnings (losses) of affiliates | (15,064 | ) | (8,197 | ) | — | — | 23,261 | — | ||||||||||||
Income (loss) before income taxes | (15,064 | ) | (15,319 | ) | (6,808 | ) | (1,413 | ) | 23,261 | (15,343 | ) | |||||||||
Provision (benefit) for income taxes | — | (255 | ) | — | (24 | ) | — | (279 | ) | |||||||||||
Net income (loss) | (15,064 | ) | (15,064 | ) | (6,808 | ) | (1,389 | ) | 23,261 | (15,064 | ) | |||||||||
Foreign currency translation, net of taxes | — | — | — | 417 | — | 417 | ||||||||||||||
Equity in other comprehensive income (loss) of subsidiaries | 417 | 417 | — | — | (834 | ) | — | |||||||||||||
Total comprehensive (loss) income | $ | (14,647 | ) | $ | (14,647 | ) | $ | (6,808 | ) | $ | (972 | ) | $ | 22,427 | $ | (14,647 | ) | |||
Condensed Consolidating Statement of Comprehensive (Loss) Income | ||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Net product revenues | $ | — | $ | 59,551 | $ | — | $ | 16,646 | $ | (5,034 | ) | $ | 71,163 | |||||||
License and other revenues | — | 2,582 | — | — | — | 2,582 | ||||||||||||||
Total revenues | — | 62,133 | — | 16,646 | (5,034 | ) | 73,745 | |||||||||||||
Cost of goods sold | — | 55,301 | — | 14,847 | (5,034 | ) | 65,114 | |||||||||||||
Loss on firm purchase commitment | — | 1,859 | — | — | — | 1,859 | ||||||||||||||
Total cost of goods sold | — | 57,160 | — | 14,847 | (5,034 | ) | 66,973 | |||||||||||||
Gross profit | — | 4,973 | — | 1,799 | — | 6,772 | ||||||||||||||
Operating expenses | ||||||||||||||||||||
General and administrative expenses | — | 7,253 | 20 | 528 | — | 7,801 | ||||||||||||||
Sales and marketing expenses | — | 8,585 | — | 672 | — | 9,257 | ||||||||||||||
Research and development expenses | — | 10,484 | — | 27 | — | 10,511 | ||||||||||||||
Proceeds from manufacturer | — | (800 | ) | — | — | — | (800 | ) | ||||||||||||
Operating income (loss) | — | (20,549 | ) | (20 | ) | 572 | — | (19,997 | ) | |||||||||||
Interest expense, net | — | (10,509 | ) | — | 45 | — | (10,464 | ) | ||||||||||||
Other expense, net | — | (830 | ) | — | (4 | ) | — | (834 | ) | |||||||||||
Equity in earnings (losses) of affiliates | (28,721 | ) | 382 | — | — | 28,339 | — | |||||||||||||
Income (loss) before income taxes | (28,721 | ) | (31,506 | ) | (20 | ) | 613 | 28,339 | (31,295 | ) | ||||||||||
Provision (benefit) for income taxes | — | (2,785 | ) | — | 211 | — | (2,574 | ) | ||||||||||||
Net income (loss) | (28,721 | ) | (28,721 | ) | (20 | ) | 402 | 28,339 | (28,721 | ) | ||||||||||
Foreign currency translation, net of taxes | — | — | — | 1,021 | — | 1,021 | ||||||||||||||
Equity in other comprehensive income (loss) of subsidiaries | 1,021 | 1,021 | — | — | (2,042 | ) | — | |||||||||||||
Total comprehensive (loss) income | $ | (27,700 | ) | $ | (27,700 | ) | $ | (20 | ) | $ | 1,423 | $ | 26,297 | $ | (27,700 | ) | ||||
Condensed Consolidating Statement of Comprehensive (Loss) Income | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Net product revenues | $ | — | $ | 171,410 | $ | — | $ | 47,228 | $ | (15,677 | ) | $ | 202,961 | |||||||
License and other revenues | — | 9,043 | — | — | — | 9,043 | ||||||||||||||
Total revenues | — | 180,453 | — | 47,228 | (15,677 | ) | 212,004 | |||||||||||||
Cost of goods sold | — | 115,962 | — | 44,239 | (15,677 | ) | 144,524 | |||||||||||||
Gross profit | — | 64,491 | — | 2,989 | — | 67,480 | ||||||||||||||
Operating expenses | ||||||||||||||||||||
General and administrative expenses | — | 23,844 | 60 | 1,774 | — | 25,678 | ||||||||||||||
Sales and marketing expenses | — | 24,564 | — | 2,702 | — | 27,266 | ||||||||||||||
Research and development expenses | — | 25,200 | — | 228 | — | 25,428 | ||||||||||||||
Impairment of land | — | — | 6,788 | — | — | 6,788 | ||||||||||||||
Operating loss | — | (9,117 | ) | (6,848 | ) | (1,715 | ) | — | (17,680 | ) | ||||||||||
Interest expense, net | — | (32,458 | ) | — | 135 | — | (32,323 | ) | ||||||||||||
Other income (expense), net | — | 1,039 | — | (145 | ) | — | 894 | |||||||||||||
Equity in earnings (losses) of affiliates | (49,376 | ) | (8,552 | ) | — | — | 57,928 | — | ||||||||||||
Income (loss) before income taxes | (49,376 | ) | (49,088 | ) | (6,848 | ) | (1,725 | ) | 57,928 | (49,109 | ) | |||||||||
Provision (benefit) for income taxes | — | 288 | — | (21 | ) | — | 267 | |||||||||||||
Net income (loss) | (49,376 | ) | (49,376 | ) | (6,848 | ) | (1,704 | ) | 57,928 | (49,376 | ) | |||||||||
Foreign currency translation, net of taxes | — | — | — | (1,176 | ) | — | (1,176 | ) | ||||||||||||
Equity in other comprehensive income (loss) of subsidiaries | (1,176 | ) | (1,176 | ) | — | — | 2,352 | — | ||||||||||||
Total comprehensive (loss) income | $ | (50,552 | ) | $ | (50,552 | ) | $ | (6,848 | ) | $ | (2,880 | ) | $ | 60,280 | $ | (50,552 | ) | |||
Condensed Consolidating Statement of Comprehensive (Loss) Income | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Net product revenues | $ | — | $ | 171,593 | $ | — | $ | 50,604 | $ | (14,358 | ) | $ | 207,839 | |||||||
License and other revenues | — | 8,018 | — | — | — | 8,018 | ||||||||||||||
Total revenues | — | 179,611 | — | 50,604 | (14,358 | ) | 215,857 | |||||||||||||
Cost of goods sold | — | 135,899 | — | 44,734 | (14,358 | ) | 166,275 | |||||||||||||
Loss on firm purchase commitment | — | 1,859 | — | — | — | 1,859 | ||||||||||||||
Cost of goods sold | — | 137,758 | — | 44,734 | (14,358 | ) | 168,134 | |||||||||||||
Gross profit | — | 41,853 | — | 5,870 | — | 47,723 | ||||||||||||||
Operating expenses | ||||||||||||||||||||
General and administrative expenses | — | 23,039 | 60 | 1,661 | — | 24,760 | ||||||||||||||
Sales and marketing expenses | — | 25,580 | — | 2,585 | — | 28,165 | ||||||||||||||
Research and development expenses | — | 31,167 | — | 115 | — | 31,282 | ||||||||||||||
Proceeds from manufacturer | — | (34,614 | ) | — | — | — | (34,614 | ) | ||||||||||||
Operating income (loss) | — | (3,319 | ) | (60 | ) | 1,509 | — | (1,870 | ) | |||||||||||
Interest expense, net | — | (31,475 | ) | — | 198 | — | (31,277 | ) | ||||||||||||
Other expense, net | — | (175 | ) | — | (73 | ) | — | (248 | ) | |||||||||||
Equity in earnings (losses) of affiliates | (32,451 | ) | 1,252 | — | — | 31,199 | — | |||||||||||||
Income (loss) before income taxes | (32,451 | ) | (33,717 | ) | (60 | ) | 1,634 | 31,199 | (33,395 | ) | ||||||||||
Provision (benefit) for income taxes | — | (1,266 | ) | — | 322 | — | (944 | ) | ||||||||||||
Net income (loss) | (32,451 | ) | (32,451 | ) | (60 | ) | 1,312 | 31,199 | (32,451 | ) | ||||||||||
Foreign currency translation, net of taxes | — | 200 | — | 999 | — | 1,199 | ||||||||||||||
Equity in other comprehensive income (loss) of subsidiaries | 1,199 | 999 | — | — | (2,198 | ) | — | |||||||||||||
Total comprehensive (loss) income | $ | (31,252 | ) | $ | (31,252 | ) | $ | (60 | ) | $ | 2,311 | $ | 29,001 | $ | (31,252 | ) | ||||
Condensed Consolidating Cash Flow Information | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Cash provided by (used in) operating activities | $ | — | $ | (13,054 | ) | $ | — | $ | 2,970 | $ | (1,738 | ) | $ | (11,822 | ) | |||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | — | (3,621 | ) | — | (90 | ) | — | (3,711 | ) | |||||||||||
Proceeds from dividend | — | 4,174 | — | — | (4,174 | ) | — | |||||||||||||
Cash provided by (used in) investing activities | — | 553 | — | (90 | ) | (4,174 | ) | (3,711 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Payments on note payable | — | (1,174 | ) | — | — | — | (1,174 | ) | ||||||||||||
Proceeds from line of credit | — | 8,000 | — | — | — | 8,000 | ||||||||||||||
Payments of deferred financing costs | — | (1,188 | ) | — | — | — | (1,188 | ) | ||||||||||||
Payments from parent | — | 111 | — | — | — | 111 | ||||||||||||||
Intercompany note | — | 2,249 | — | (2,249 | ) | — | — | |||||||||||||
Payment of dividend | — | — | — | (5,912 | ) | 5,912 | — | |||||||||||||
Cash provided by (used in) financing activities | — | 7,998 | — | (8,161 | ) | 5,912 | 5,749 | |||||||||||||
Effect of foreign exchange rate on cash | — | — | — | (949 | ) | — | (949 | ) | ||||||||||||
Decrease in cash and cash equivalents | — | (4,503 | ) | — | (6,230 | ) | — | (10,733 | ) | |||||||||||
Cash and cash equivalents, beginning of period | — | 17,635 | — | 13,960 | — | 31,595 | ||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 13,132 | $ | — | $ | 7,730 | $ | — | $ | 20,862 | ||||||||
Condensed Consolidating Cash Flow Information | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Cash provided by operating activities | $ | — | $ | 22,111 | $ | — | $ | 4,823 | $ | (4,723 | ) | $ | 22,211 | |||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | — | (4,452 | ) | — | (448 | ) | — | (4,900 | ) | |||||||||||
Purchase of certificate of deposit | — | (225 | ) | — | — | — | (225 | ) | ||||||||||||
Cash used in investing activities | — | (4,677 | ) | — | (448 | ) | — | (5,125 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Payments on note payable | — | (1,375 | ) | — | — | — | (1,375 | ) | ||||||||||||
Payments of deferred financing costs | — | (198 | ) | — | — | — | (198 | ) | ||||||||||||
Payments from parent | — | 44 | — | — | — | 44 | ||||||||||||||
Payment of dividend | — | — | — | (4,723 | ) | 4,723 | — | |||||||||||||
Cash used in financing activities | — | (1,529 | ) | — | (4,723 | ) | 4,723 | (1,529 | ) | |||||||||||
Effect of foreign exchange rate on cash | — | — | — | 680 | — | 680 | ||||||||||||||
Increase in cash and cash equivalents | — | 15,905 | — | 332 | — | 16,237 | ||||||||||||||
Cash and cash equivalents, beginning of period | — | 20,474 | — | 20,133 | — | 40,607 | ||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 36,379 | $ | — | $ | 20,465 | $ | — | $ | 56,844 | ||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies | ' |
Revenue Recognition | ' |
Revenue Recognition | |
The Company recognizes revenue when evidence of an arrangement exists, title has passed, the risks and rewards of ownership have transferred to the customer, the selling price is fixed or determinable, and collectability is reasonably assured. For transactions for which revenue recognition criteria have not yet been met, the respective amounts are recorded as deferred revenue until such point in time the criteria are met and revenue can be recognized. Revenue is recognized net of reserves, which consist of allowances for returns and rebates. | |
Revenue arrangements with multiple elements are divided into separate units of accounting if certain criteria are met, including whether the delivered element has stand-alone value to the customer. The arrangement's consideration is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. The estimated selling price of each deliverable is determined using the following hierarchy of values: (i) vendor-specific objective evidence of fair value; (ii) third-party evidence of selling price; and (iii) best estimate of selling price. The best estimate of selling price reflects the Company's best estimate of what the selling price would be if the deliverable was regularly sold by the Company on a stand-alone basis. The consideration allocated to each unit of accounting is then recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. Supply or service transactions may involve the charge of a nonrefundable initial fee with subsequent periodic payments for future products or services. The up-front fees, even if nonrefundable, are earned (and revenue is recognized) as the products and/or services are delivered and performed over the term of the arrangement. | |
Goodwill | ' |
Goodwill | |
Goodwill is not amortized, but is instead tested for impairment at least annually and whenever events or circumstances indicate that it is more likely than not that it may be impaired. The Company has elected to perform the annual test for indications of goodwill impairment as of October 31 of each year. All goodwill has been allocated to the U.S. operating segment. | |
The strategic shift in how the Company funds its R&D programs significantly altered the expected future costs and revenues associated with the Company's development candidates. Accordingly, this action was deemed to be a triggering event for an evaluation of the recoverability of the Company's goodwill as of March 31, 2013. The Company performed an interim impairment test and determined that there was no goodwill impairment as of March 31, 2013. There were no events as of September 30, 2013 and December 31, 2012 that triggered an interim impairment test of goodwill. | |
The Company calculates the fair value of its reporting units using the income approach which utilizes discounted forecasted future cash flows and the market approach, which utilizes fair value multiples of comparable publicly traded companies. The discounted cash flows are based on the Company's most recent long-term financial projections and are discounted using a risk adjusted rate of return which is determined using estimates of market participant risk-adjusted weighted-average costs of capital and reflects the risks associated with achieving future cash flows. The market approach is calculated using the guideline company method, where the Company uses market multiples derived from stock prices of companies engaged in the same or similar lines of business. A combination of the two methods is utilized to derive the fair value of the business in order to decrease the inherent risk associated with each model if used independently. | |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Schedule of the information about the company's assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||
September 30, 2013 | Total fair | Quoted prices | Significant other | Significant | ||||||||||
(in thousands) | value | in active | observable | unobservable | ||||||||||
markets | inputs | inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||
Money market | $ | 2,130 | $ | 2,130 | $ | — | $ | — | ||||||
Certificates of deposit—restricted | 325 | — | 325 | — | ||||||||||
Total | $ | 2,455 | $ | 2,130 | $ | 325 | $ | — | ||||||
December 31, 2012 | Total fair | Quoted prices | Significant other | Significant | ||||||||||
(in thousands) | value | in active | observable | unobservable | ||||||||||
markets | inputs | inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||
Money market | $ | 2,004 | $ | 2,004 | $ | — | $ | — | ||||||
Certificates of deposit—restricted | 328 | — | 328 | — | ||||||||||
Total | $ | 2,332 | $ | 2,004 | $ | 328 | $ | — | ||||||
Schedule of the information about the company's assets and liabilities measured at fair value on a nonrecurring basis | ' | |||||||||||||
September 30, 2013 | Total fair | Quoted prices | Significant other | Significant | ||||||||||
(in thousands) | value | in active | observable | unobservable | ||||||||||
markets | inputs | inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||
Customer relationships | $ | 737 | $ | — | $ | — | $ | 737 | ||||||
Total | $ | 737 | $ | — | $ | — | $ | 737 | ||||||
Inventory_Tables
Inventory (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory | ' | |||||||
Schedule of inventory, classified in inventory or other long-term assets | ' | |||||||
(in thousands) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Raw materials | $ | 7,583 | $ | 7,573 | ||||
Work in process | 5,212 | 5,019 | ||||||
Finished goods | 4,242 | 5,456 | ||||||
Inventory | 17,037 | 18,048 | ||||||
Other long-term assets | 2,533 | 2,090 | ||||||
Total | $ | 19,570 | $ | 20,138 | ||||
Property_Plant_and_Equipment_n1
Property, Plant and Equipment, net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment, net | ' | |||||||
Schedule of Property, plant and equipment, net | ' | |||||||
(in thousands) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Land | $ | 14,950 | $ | 22,450 | ||||
Buildings | 65,553 | 64,649 | ||||||
Machinery, equipment and fixtures | 65,413 | 63,503 | ||||||
Construction in progress | 7,423 | 7,331 | ||||||
Accumulated depreciation | (54,607 | ) | (48,360 | ) | ||||
Property, plant and equipment, net | $ | 98,732 | $ | 109,573 | ||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Asset Retirement Obligations | ' | ||||
Schedule of reconciliation of the company's asset retirement obligations | ' | ||||
(in thousands) | |||||
Balance at January 1, 2013 | $ | 5,416 | |||
Net increase due to changes in estimated future cash flows | 341 | ||||
Accretion expense | 462 | ||||
Balance at September 30, 2013 | $ | 6,219 | |||
Intangibles_net_Tables
Intangibles, net (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Intangibles, net | ' | |||||||||||||
Schedule of intangibles, net | ' | |||||||||||||
September 30, 2013 | ||||||||||||||
(in thousands) | Cost | Accumulated | Net | Weighted | Amortization | |||||||||
amortization | Average | Method | ||||||||||||
Useful Life | ||||||||||||||
Trademarks | $ | 53,390 | $ | 25,967 | $ | 27,423 | 8 years | Straight-line | ||||||
Customer relationships | 107,427 | 83,169 | 24,258 | 19 years | Accelerated | |||||||||
Other patents | 42,780 | 39,695 | 3,085 | 2 years | Straight-line | |||||||||
$ | 203,597 | $ | 148,831 | $ | 54,766 | |||||||||
December 31, 2012 | ||||||||||||||
(in thousands) | Cost | Accumulated | Net | Weighted | Amortization | |||||||||
amortization | Average | Method | ||||||||||||
Useful Life | ||||||||||||||
Trademarks | $ | 53,390 | $ | 20,743 | $ | 32,647 | 8 years | Straight-line | ||||||
Customer relationships | 114,000 | 83,385 | 30,615 | 19 years | Accelerated | |||||||||
Other patents | 42,780 | 39,240 | 3,540 | 2 years | Straight-line | |||||||||
$ | 210,170 | $ | 143,368 | $ | 66,802 | |||||||||
Schedule of expected future amortization expense related to the intangible assets | ' | |||||||||||||
(in thousands) | ||||||||||||||
Remainder of 2013 | $ | 3,525 | ||||||||||||
2014 | 12,943 | |||||||||||||
2015 | 11,346 | |||||||||||||
2016 | 10,655 | |||||||||||||
2017 | 3,688 | |||||||||||||
2018 and thereafter | 12,609 | |||||||||||||
$ | 54,766 | |||||||||||||
Accrued_Expenses_and_Other_Lia1
Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accrued Expenses and Other Liabilities | ' | |||||||
Schedule of accrued expenses and other liabilities | ' | |||||||
(in thousands) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Compensation and benefits | $ | 8,710 | $ | 5,351 | ||||
Accrued interest | 14,650 | 5,040 | ||||||
Accrued professional fees | 1,024 | 1,628 | ||||||
Research and development services | 1,857 | 3,205 | ||||||
Freight, distribution and operations | 2,748 | 3,633 | ||||||
Accrued loss on firm purchase commitment | 1,315 | 7,469 | ||||||
Marketing expense | 961 | 1,168 | ||||||
Accrued rebates, discounts and chargebacks | 1,626 | 1,542 | ||||||
Accrued severance | 1,176 | — | ||||||
Other | 444 | 653 | ||||||
$ | 34,511 | $ | 29,689 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||
Schedule of option activity | ' | |||||||||||||||||||
Time Based | Performance | Total | Weighted | Weighted | Aggregate | |||||||||||||||
Based | Average | Average | Intrinsic | |||||||||||||||||
Exercise | Remaining | Value | ||||||||||||||||||
Price | Contractual | |||||||||||||||||||
Term | ||||||||||||||||||||
Outstanding at January 1, 2013 | 2,326,350 | 1,002,948 | 3,329,298 | $ | 3.11 | 5.6 | $ | 15,336,000 | ||||||||||||
Options granted | 1,340,177 | 600,000 | 1,940,177 | 6.77 | ||||||||||||||||
Options cancelled | (214,700 | ) | (257,655 | ) | (472,355 | ) | 2.22 | |||||||||||||
Options exercised | (583,750 | ) | (47,768 | ) | (631,518 | ) | 2 | |||||||||||||
Options forfeited or expired | (93,315 | ) | (66,201 | ) | (159,516 | ) | 8.38 | |||||||||||||
Outstanding at September 30, 2013 | 2,774,762 | 1,231,324 | 4,006,086 | 4.95 | 7.2 | $ | 7,240,000 | |||||||||||||
Vested and expected to vest at September 30, 2013 | 2,688,003 | 1,098,282 | 3,786,285 | 4.84 | 7.1 | $ | 7,240,000 | |||||||||||||
Exercisable at September 30, 2013 | 1,447,088 | 510,026 | 1,957,114 | 2.8 | 4.8 | $ | 7,240,000 | |||||||||||||
Schedule of stock-based compensation expense recognized | ' | |||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||
Ended | Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Cost of goods sold | $ | 26 | $ | 30 | $ | 56 | $ | 47 | ||||||||||||
General and administrative | 62 | 175 | 553 | 811 | ||||||||||||||||
Sales and marketing | 46 | 24 | 86 | 80 | ||||||||||||||||
Research and development | 38 | 47 | 40 | 128 | ||||||||||||||||
Total stock-based compensation expense | $ | 172 | $ | 276 | $ | 735 | $ | 1,066 | ||||||||||||
Stock options | ' | |||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||
Schedule of assumptions used for estimating the fair value of each option award on the date of grant using a Black-Scholes valuation model | ' | |||||||||||||||||||
Three Months | Nine Months Ended | |||||||||||||||||||
Ended | September 30, | |||||||||||||||||||
September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Expected volatility | 36 | % | 39 | % | 36 | % | 39 - 41 | % | ||||||||||||
Expected dividends | — | — | — | — | ||||||||||||||||
Expected life (in years) | 6.3 | 5.5 | 5.5 - 6.3 | 5.5 - 6.5 | ||||||||||||||||
Risk-free interest rate | 1.7 | % | 0.7 | % | 0.7 - 1.7 | % | 0.7 - 1.4 | % | ||||||||||||
Modified stock options | ' | |||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||
Schedule of assumptions used for estimating the fair value of each option award on the date of grant using a Black-Scholes valuation model | ' | |||||||||||||||||||
Nine Months | Nine Months | |||||||||||||||||||
Ended | Ended | |||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||
Expected volatility | 36 - 37 | % | 30 - 36 | % | ||||||||||||||||
Expected dividends | — | — | ||||||||||||||||||
Expected term (in years) | 4.8 - 6.0 | 0.3 - 3.5 | ||||||||||||||||||
Risk-free interest rate | 0.7 - 0.9 | % | 0.3 - 0.8 | % |
Other_Income_Expense_net_Table
Other Income (Expense), net (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Other Income (Expense), net | ' | |||||||||||||
Schedule of other income (expense), net | ' | |||||||||||||
Three Months | Nine Months | |||||||||||||
Ended | Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Foreign currency losses | $ | (174 | ) | $ | (12 | ) | $ | (180 | ) | $ | (344 | ) | ||
Tax indemnification income (loss) | 434 | (882 | ) | 706 | (52 | ) | ||||||||
Other income | — | 60 | 368 | 148 | ||||||||||
Total other income (expense), net | $ | 260 | $ | (834 | ) | $ | 894 | $ | (248 | ) | ||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Information | ' | |||||||||||||
Schedule of selected information for each business segment | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Revenues | ||||||||||||||
U.S. | $ | 56,407 | $ | 60,108 | $ | 174,167 | $ | 169,297 | ||||||
International | 18,381 | 18,672 | 53,514 | 60,918 | ||||||||||
Total revenue, including inter-segment | 74,788 | 78,780 | 227,681 | 230,215 | ||||||||||
Less inter-segment revenue | (4,403 | ) | (5,035 | ) | (15,677 | ) | (14,358 | ) | ||||||
$ | 70,385 | $ | 73,745 | $ | 212,004 | $ | 215,857 | |||||||
Revenues from external customers | ||||||||||||||
U.S. | $ | 52,004 | $ | 55,073 | $ | 158,490 | $ | 154,939 | ||||||
International | 18,381 | 18,672 | 53,514 | 60,918 | ||||||||||
$ | 70,385 | $ | 73,745 | $ | 212,004 | $ | 215,857 | |||||||
Operating loss | ||||||||||||||
U.S. | $ | (5,116 | ) | $ | (21,580 | ) | $ | (18,414 | ) | $ | (12,291 | ) | ||
International | (54 | ) | 1,848 | 913 | 9,634 | |||||||||
Total operating loss, including inter-segment | (5,170 | ) | (19,732 | ) | (17,501 | ) | (2,657 | ) | ||||||
Inter-segment operating income (loss) | 602 | (265 | ) | (179 | ) | 787 | ||||||||
Operating loss | (4,568 | ) | (19,997 | ) | (17,680 | ) | (1,870 | ) | ||||||
Interest expense, net | (11,035 | ) | (10,464 | ) | (32,323 | ) | (31,277 | ) | ||||||
Other income (expense), net | 260 | (834 | ) | 894 | (248 | ) | ||||||||
Loss before income taxes | $ | (15,343 | ) | $ | (31,295 | ) | $ | (49,109 | ) | $ | (33,395 | ) | ||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Total Assets | ||||||||||||||
U.S. | $ | 251,816 | $ | 279,808 | ||||||||||
International | 31,209 | 43,118 | ||||||||||||
$ | 283,025 | $ | 322,926 | |||||||||||
Guarantor_Financial_Informatio1
Guarantor Financial Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Guarantor Financial Information | ' | |||||||||||||||||||
Schedule of Condensed Consolidating Balance Sheet Information | ' | |||||||||||||||||||
Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 13,132 | $ | — | $ | 7,730 | $ | — | $ | 20,862 | ||||||||
Accounts receivable, net | — | 26,540 | — | 11,047 | — | 37,587 | ||||||||||||||
Intercompany accounts receivable | — | 2,541 | — | — | (2,541 | ) | — | |||||||||||||
Inventory | — | 14,842 | — | 2,195 | — | 17,037 | ||||||||||||||
Income tax receivable | — | 456 | — | (19 | ) | — | 437 | |||||||||||||
Deferred tax assets | — | — | — | 27 | — | 27 | ||||||||||||||
Other current assets | — | 2,494 | 712 | 256 | — | 3,462 | ||||||||||||||
Total current assets | — | 60,005 | 712 | 21,236 | (2,541 | ) | 79,412 | |||||||||||||
Property, plant and equipment, net | — | 76,641 | 15,635 | 6,456 | — | 98,732 | ||||||||||||||
Capitalized software development costs, net | — | 1,210 | — | 3 | — | 1,213 | ||||||||||||||
Intangibles, net | — | 50,551 | — | 4,215 | — | 54,766 | ||||||||||||||
Goodwill | — | 15,714 | — | — | — | 15,714 | ||||||||||||||
Deferred financing costs | — | 10,194 | — | — | — | 10,194 | ||||||||||||||
Investment in subsidiaries | (224,059 | ) | 42,526 | — | — | 181,533 | — | |||||||||||||
Intercompany note receivable | — | — | — | 2,249 | (2,249 | ) | — | |||||||||||||
Other long-term assets | — | 22,781 | — | 213 | — | 22,994 | ||||||||||||||
Total assets | $ | (224,059 | ) | $ | 279,622 | $ | 16,347 | $ | 34,372 | $ | 176,743 | $ | 283,025 | |||||||
Liabilities and (deficit) equity | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Line of credit | $ | — | $ | 8,000 | $ | — | $ | — | $ | — | $ | 8,000 | ||||||||
Accounts payable | — | 17,406 | — | 2,065 | — | 19,471 | ||||||||||||||
Intercompany accounts payable | — | — | — | 2,541 | (2,541 | ) | — | |||||||||||||
Accrued expenses and other liabilities | — | 31,377 | — | 3,134 | — | 34,511 | ||||||||||||||
Note payable | — | 119 | — | — | — | 119 | ||||||||||||||
Deferred revenue | — | 3,848 | — | — | — | 3,848 | ||||||||||||||
Total current liabilities | — | 60,750 | — | 7,740 | (2,541 | ) | 65,949 | |||||||||||||
Asset retirement obligation | — | 6,052 | — | 167 | — | 6,219 | ||||||||||||||
Long-term debt, net | — | 398,984 | — | — | — | 398,984 | ||||||||||||||
Deferred tax liability | — | — | — | 22 | — | 22 | ||||||||||||||
Intercompany note payable | — | 2,249 | — | — | (2,249 | ) | — | |||||||||||||
Other long-term liabilities | — | 35,646 | — | 264 | — | 35,910 | ||||||||||||||
Total liabilities | — | 503,681 | — | 8,193 | (4,790 | ) | 507,084 | |||||||||||||
(Deficit) equity | (224,059 | ) | (224,059 | ) | 16,347 | 26,179 | 181,533 | (224,059 | ) | |||||||||||
Total liabilities and (deficit) equity | $ | (224,059 | ) | $ | 279,622 | $ | 16,347 | $ | 34,372 | $ | 176,743 | $ | 283,025 | |||||||
Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 17,635 | $ | — | $ | 13,960 | $ | — | $ | 31,595 | ||||||||
Accounts receivable, net | — | 30,218 | — | 11,162 | — | 41,380 | ||||||||||||||
Intercompany accounts receivable | — | 1,992 | — | — | (1,992 | ) | — | |||||||||||||
Inventory | — | 15,417 | — | 2,631 | — | 18,048 | ||||||||||||||
Income tax receivable | — | 291 | — | 445 | — | 736 | ||||||||||||||
Deferred tax assets | — | — | — | 115 | — | 115 | ||||||||||||||
Other current assets | — | 2,596 | — | 347 | — | 2,943 | ||||||||||||||
Total current assets | — | 68,149 | — | 28,660 | (1,992 | ) | 94,817 | |||||||||||||
Property, plant and equipment, net | — | 78,578 | 23,195 | 7,800 | — | 109,573 | ||||||||||||||
Capitalized software development costs, net | — | 2,230 | — | 4 | — | 2,234 | ||||||||||||||
Intangibles, net | — | 60,370 | — | 6,432 | — | 66,802 | ||||||||||||||
Goodwill | — | 15,714 | — | — | — | 15,714 | ||||||||||||||
Deferred financing costs | — | 11,372 | — | — | — | 11,372 | ||||||||||||||
Investment in subsidiaries | (174,353 | ) | 58,166 | — | — | 116,187 | — | |||||||||||||
Other long-term assets | — | 22,192 | — | 222 | — | 22,414 | ||||||||||||||
Total assets | $ | (174,353 | ) | $ | 316,771 | $ | 23,195 | $ | 43,118 | $ | 114,195 | $ | 322,926 | |||||||
Liabilities and (deficit) equity | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable | $ | — | $ | 16,835 | $ | — | $ | 2,110 | $ | — | $ | 18,945 | ||||||||
Intercompany accounts payable | — | — | — | 1,992 | (1,992 | ) | — | |||||||||||||
Accrued expenses | — | 26,592 | — | 3,097 | — | 29,689 | ||||||||||||||
Deferred revenue | — | 7,229 | — | 91 | — | 7,320 | ||||||||||||||
Total current liabilities | — | 50,656 | — | 7,290 | (1,992 | ) | 55,954 | |||||||||||||
Asset retirement obligations | — | 5,268 | — | 148 | — | 5,416 | ||||||||||||||
Long-term debt, net | — | 398,822 | — | — | — | 398,822 | ||||||||||||||
Deferred tax liability | — | — | — | 435 | — | 435 | ||||||||||||||
Other long-term liabilities | — | 36,378 | — | 274 | — | 36,652 | ||||||||||||||
Total liabilities | — | 491,124 | — | 8,147 | (1,992 | ) | 497,279 | |||||||||||||
(Deficit) equity | (174,353 | ) | (174,353 | ) | 23,195 | 34,971 | 116,187 | (174,353 | ) | |||||||||||
Total liabilities and (deficit) equity | $ | (174,353 | ) | $ | 316,771 | $ | 23,195 | $ | 43,118 | $ | 114,195 | $ | 322,926 | |||||||
Schedule of Condensed Consolidating Statement of Comprehensive (Loss) Income | ' | |||||||||||||||||||
Condensed Consolidating Statement of Comprehensive (Loss) Income | ||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Net product revenues | $ | — | $ | 56,284 | $ | — | $ | 15,372 | $ | (4,403 | ) | $ | 67,253 | |||||||
License and other revenues | — | 3,132 | — | — | — | 3,132 | ||||||||||||||
Total revenues | — | 59,416 | — | 15,372 | (4,403 | ) | 70,385 | |||||||||||||
Cost of goods sold | — | 35,859 | — | 15,208 | (4,403 | ) | 46,664 | |||||||||||||
Gross profit | — | 23,557 | — | 164 | — | 23,721 | ||||||||||||||
Operating expenses | ||||||||||||||||||||
General and administrative expenses | — | 6,585 | 20 | 527 | — | 7,132 | ||||||||||||||
Sales and marketing expenses | — | 7,641 | — | 835 | — | 8,476 | ||||||||||||||
Research and development expenses | — | 5,779 | — | 114 | — | 5,893 | ||||||||||||||
Impairment of land | — | — | 6,788 | — | — | 6,788 | ||||||||||||||
Operating income (loss) | — | 3,552 | (6,808 | ) | (1,312 | ) | — | (4,568 | ) | |||||||||||
Interest expense, net | — | (11,083 | ) | — | 48 | — | (11,035 | ) | ||||||||||||
Other income (expense), net | — | 409 | — | (149 | ) | — | 260 | |||||||||||||
Equity in earnings (losses) of affiliates | (15,064 | ) | (8,197 | ) | — | — | 23,261 | — | ||||||||||||
Income (loss) before income taxes | (15,064 | ) | (15,319 | ) | (6,808 | ) | (1,413 | ) | 23,261 | (15,343 | ) | |||||||||
Provision (benefit) for income taxes | — | (255 | ) | — | (24 | ) | — | (279 | ) | |||||||||||
Net income (loss) | (15,064 | ) | (15,064 | ) | (6,808 | ) | (1,389 | ) | 23,261 | (15,064 | ) | |||||||||
Foreign currency translation, net of taxes | — | — | — | 417 | — | 417 | ||||||||||||||
Equity in other comprehensive income (loss) of subsidiaries | 417 | 417 | — | — | (834 | ) | — | |||||||||||||
Total comprehensive (loss) income | $ | (14,647 | ) | $ | (14,647 | ) | $ | (6,808 | ) | $ | (972 | ) | $ | 22,427 | $ | (14,647 | ) | |||
Condensed Consolidating Statement of Comprehensive (Loss) Income | ||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Net product revenues | $ | — | $ | 59,551 | $ | — | $ | 16,646 | $ | (5,034 | ) | $ | 71,163 | |||||||
License and other revenues | — | 2,582 | — | — | — | 2,582 | ||||||||||||||
Total revenues | — | 62,133 | — | 16,646 | (5,034 | ) | 73,745 | |||||||||||||
Cost of goods sold | — | 55,301 | — | 14,847 | (5,034 | ) | 65,114 | |||||||||||||
Loss on firm purchase commitment | — | 1,859 | — | — | — | 1,859 | ||||||||||||||
Total cost of goods sold | — | 57,160 | — | 14,847 | (5,034 | ) | 66,973 | |||||||||||||
Gross profit | — | 4,973 | — | 1,799 | — | 6,772 | ||||||||||||||
Operating expenses | ||||||||||||||||||||
General and administrative expenses | — | 7,253 | 20 | 528 | — | 7,801 | ||||||||||||||
Sales and marketing expenses | — | 8,585 | — | 672 | — | 9,257 | ||||||||||||||
Research and development expenses | — | 10,484 | — | 27 | — | 10,511 | ||||||||||||||
Proceeds from manufacturer | — | (800 | ) | — | — | — | (800 | ) | ||||||||||||
Operating income (loss) | — | (20,549 | ) | (20 | ) | 572 | — | (19,997 | ) | |||||||||||
Interest expense, net | — | (10,509 | ) | — | 45 | — | (10,464 | ) | ||||||||||||
Other expense, net | — | (830 | ) | — | (4 | ) | — | (834 | ) | |||||||||||
Equity in earnings (losses) of affiliates | (28,721 | ) | 382 | — | — | 28,339 | — | |||||||||||||
Income (loss) before income taxes | (28,721 | ) | (31,506 | ) | (20 | ) | 613 | 28,339 | (31,295 | ) | ||||||||||
Provision (benefit) for income taxes | — | (2,785 | ) | — | 211 | — | (2,574 | ) | ||||||||||||
Net income (loss) | (28,721 | ) | (28,721 | ) | (20 | ) | 402 | 28,339 | (28,721 | ) | ||||||||||
Foreign currency translation, net of taxes | — | — | — | 1,021 | — | 1,021 | ||||||||||||||
Equity in other comprehensive income (loss) of subsidiaries | 1,021 | 1,021 | — | — | (2,042 | ) | — | |||||||||||||
Total comprehensive (loss) income | $ | (27,700 | ) | $ | (27,700 | ) | $ | (20 | ) | $ | 1,423 | $ | 26,297 | $ | (27,700 | ) | ||||
Condensed Consolidating Statement of Comprehensive (Loss) Income | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Net product revenues | $ | — | $ | 171,410 | $ | — | $ | 47,228 | $ | (15,677 | ) | $ | 202,961 | |||||||
License and other revenues | — | 9,043 | — | — | — | 9,043 | ||||||||||||||
Total revenues | — | 180,453 | — | 47,228 | (15,677 | ) | 212,004 | |||||||||||||
Cost of goods sold | — | 115,962 | — | 44,239 | (15,677 | ) | 144,524 | |||||||||||||
Gross profit | — | 64,491 | — | 2,989 | — | 67,480 | ||||||||||||||
Operating expenses | ||||||||||||||||||||
General and administrative expenses | — | 23,844 | 60 | 1,774 | — | 25,678 | ||||||||||||||
Sales and marketing expenses | — | 24,564 | — | 2,702 | — | 27,266 | ||||||||||||||
Research and development expenses | — | 25,200 | — | 228 | — | 25,428 | ||||||||||||||
Impairment of land | — | — | 6,788 | — | — | 6,788 | ||||||||||||||
Operating loss | — | (9,117 | ) | (6,848 | ) | (1,715 | ) | — | (17,680 | ) | ||||||||||
Interest expense, net | — | (32,458 | ) | — | 135 | — | (32,323 | ) | ||||||||||||
Other income (expense), net | — | 1,039 | — | (145 | ) | — | 894 | |||||||||||||
Equity in earnings (losses) of affiliates | (49,376 | ) | (8,552 | ) | — | — | 57,928 | — | ||||||||||||
Income (loss) before income taxes | (49,376 | ) | (49,088 | ) | (6,848 | ) | (1,725 | ) | 57,928 | (49,109 | ) | |||||||||
Provision (benefit) for income taxes | — | 288 | — | (21 | ) | — | 267 | |||||||||||||
Net income (loss) | (49,376 | ) | (49,376 | ) | (6,848 | ) | (1,704 | ) | 57,928 | (49,376 | ) | |||||||||
Foreign currency translation, net of taxes | — | — | — | (1,176 | ) | — | (1,176 | ) | ||||||||||||
Equity in other comprehensive income (loss) of subsidiaries | (1,176 | ) | (1,176 | ) | — | — | 2,352 | — | ||||||||||||
Total comprehensive (loss) income | $ | (50,552 | ) | $ | (50,552 | ) | $ | (6,848 | ) | $ | (2,880 | ) | $ | 60,280 | $ | (50,552 | ) | |||
Condensed Consolidating Statement of Comprehensive (Loss) Income | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Net product revenues | $ | — | $ | 171,593 | $ | — | $ | 50,604 | $ | (14,358 | ) | $ | 207,839 | |||||||
License and other revenues | — | 8,018 | — | — | — | 8,018 | ||||||||||||||
Total revenues | — | 179,611 | — | 50,604 | (14,358 | ) | 215,857 | |||||||||||||
Cost of goods sold | — | 135,899 | — | 44,734 | (14,358 | ) | 166,275 | |||||||||||||
Loss on firm purchase commitment | — | 1,859 | — | — | — | 1,859 | ||||||||||||||
Cost of goods sold | — | 137,758 | — | 44,734 | (14,358 | ) | 168,134 | |||||||||||||
Gross profit | — | 41,853 | — | 5,870 | — | 47,723 | ||||||||||||||
Operating expenses | ||||||||||||||||||||
General and administrative expenses | — | 23,039 | 60 | 1,661 | — | 24,760 | ||||||||||||||
Sales and marketing expenses | — | 25,580 | — | 2,585 | — | 28,165 | ||||||||||||||
Research and development expenses | — | 31,167 | — | 115 | — | 31,282 | ||||||||||||||
Proceeds from manufacturer | — | (34,614 | ) | — | — | — | (34,614 | ) | ||||||||||||
Operating income (loss) | — | (3,319 | ) | (60 | ) | 1,509 | — | (1,870 | ) | |||||||||||
Interest expense, net | — | (31,475 | ) | — | 198 | — | (31,277 | ) | ||||||||||||
Other expense, net | — | (175 | ) | — | (73 | ) | — | (248 | ) | |||||||||||
Equity in earnings (losses) of affiliates | (32,451 | ) | 1,252 | — | — | 31,199 | — | |||||||||||||
Income (loss) before income taxes | (32,451 | ) | (33,717 | ) | (60 | ) | 1,634 | 31,199 | (33,395 | ) | ||||||||||
Provision (benefit) for income taxes | — | (1,266 | ) | — | 322 | — | (944 | ) | ||||||||||||
Net income (loss) | (32,451 | ) | (32,451 | ) | (60 | ) | 1,312 | 31,199 | (32,451 | ) | ||||||||||
Foreign currency translation, net of taxes | — | 200 | — | 999 | — | 1,199 | ||||||||||||||
Equity in other comprehensive income (loss) of subsidiaries | 1,199 | 999 | — | — | (2,198 | ) | — | |||||||||||||
Total comprehensive (loss) income | $ | (31,252 | ) | $ | (31,252 | ) | $ | (60 | ) | $ | 2,311 | $ | 29,001 | $ | (31,252 | ) | ||||
Schedule of Condensed Consolidating Cash Flow Information | ' | |||||||||||||||||||
Condensed Consolidating Cash Flow Information | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Cash provided by (used in) operating activities | $ | — | $ | (13,054 | ) | $ | — | $ | 2,970 | $ | (1,738 | ) | $ | (11,822 | ) | |||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | — | (3,621 | ) | — | (90 | ) | — | (3,711 | ) | |||||||||||
Proceeds from dividend | — | 4,174 | — | — | (4,174 | ) | — | |||||||||||||
Cash provided by (used in) investing activities | — | 553 | — | (90 | ) | (4,174 | ) | (3,711 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Payments on note payable | — | (1,174 | ) | — | — | — | (1,174 | ) | ||||||||||||
Proceeds from line of credit | — | 8,000 | — | — | — | 8,000 | ||||||||||||||
Payments of deferred financing costs | — | (1,188 | ) | — | — | — | (1,188 | ) | ||||||||||||
Payments from parent | — | 111 | — | — | — | 111 | ||||||||||||||
Intercompany note | — | 2,249 | — | (2,249 | ) | — | — | |||||||||||||
Payment of dividend | — | — | — | (5,912 | ) | 5,912 | — | |||||||||||||
Cash provided by (used in) financing activities | — | 7,998 | — | (8,161 | ) | 5,912 | 5,749 | |||||||||||||
Effect of foreign exchange rate on cash | — | — | — | (949 | ) | — | (949 | ) | ||||||||||||
Decrease in cash and cash equivalents | — | (4,503 | ) | — | (6,230 | ) | — | (10,733 | ) | |||||||||||
Cash and cash equivalents, beginning of period | — | 17,635 | — | 13,960 | — | 31,595 | ||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 13,132 | $ | — | $ | 7,730 | $ | — | $ | 20,862 | ||||||||
Condensed Consolidating Cash Flow Information | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(in thousands) | Lantheus | LMI | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||
Intermediate | Subsidiary | Subsidiaries | ||||||||||||||||||
Cash provided by operating activities | $ | — | $ | 22,111 | $ | — | $ | 4,823 | $ | (4,723 | ) | $ | 22,211 | |||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | — | (4,452 | ) | — | (448 | ) | — | (4,900 | ) | |||||||||||
Purchase of certificate of deposit | — | (225 | ) | — | — | — | (225 | ) | ||||||||||||
Cash used in investing activities | — | (4,677 | ) | — | (448 | ) | — | (5,125 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Payments on note payable | — | (1,375 | ) | — | — | — | (1,375 | ) | ||||||||||||
Payments of deferred financing costs | — | (198 | ) | — | — | — | (198 | ) | ||||||||||||
Payments from parent | — | 44 | — | — | — | 44 | ||||||||||||||
Payment of dividend | — | — | — | (4,723 | ) | 4,723 | — | |||||||||||||
Cash used in financing activities | — | (1,529 | ) | — | (4,723 | ) | 4,723 | (1,529 | ) | |||||||||||
Effect of foreign exchange rate on cash | — | — | — | 680 | — | 680 | ||||||||||||||
Increase in cash and cash equivalents | — | 15,905 | — | 332 | — | 16,237 | ||||||||||||||
Cash and cash equivalents, beginning of period | — | 20,474 | — | 20,133 | — | 40,607 | ||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 36,379 | $ | — | $ | 20,465 | $ | — | $ | 56,844 | ||||||||
Business_Overview_Details
Business Overview (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Nov. 12, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 06, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
item | Forecast | Definity and Cardiolite | Minimum | Facility | Facility | Settlement and Mutual Release Agreement | Settlement and Mutual Release Agreement | Settlement and Mutual Release Agreement | Canada | Puerto Rico | Australia | |||||
item | item | item | item | item | ||||||||||||
Business Overview | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of radiopharmacies owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 2 | 2 |
Net loss | $15,064,000 | $28,721,000 | $49,376,000 | $32,451,000 | $42,001,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated deficit | 226,036,000 | ' | 226,036,000 | ' | 176,660,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of manufacturers | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of product supply agreement with Pharmalucence Inc. | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Ben Venue Laboratories (BVL) | ' | 800,000 | ' | 34,614,000 | ' | ' | ' | ' | ' | ' | 900,000 | 800,000 | 34,600,000 | ' | ' | ' |
Number of strategic partners to engage with for further development and commercialization of development candidates | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of other development candidates for which strategic partners to assist with the on-going development activities | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing base | ' | ' | ' | ' | ' | ' | ' | ' | 37,000,000 | ' | ' | ' | ' | ' | ' | ' |
Unfunded standby Letter of Credit outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 8,800,000 | 8,800,000 | ' | ' | ' | ' | ' | ' |
Amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' |
Available borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | $20,200,000 | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
item | item | ||
Goodwill | ' | ' | ' |
Goodwill impairment charges | ' | $0 | ' |
Number of events that triggered an interim impairment test | 0 | ' | 0 |
Number of methods utilized to derive the fair value of the business | 2 | ' | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (Recurring basis, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Total fair value | ' | ' |
Fair value of assets measured on recurring basis observable and unobservable inputs | ' | ' |
Total | $2,455 | $2,332 |
Total fair value | Certificates of deposit-restricted | ' | ' |
Fair value of assets measured on recurring basis observable and unobservable inputs | ' | ' |
Restricted investments | 325 | 328 |
Total fair value | Money market | ' | ' |
Fair value of assets measured on recurring basis observable and unobservable inputs | ' | ' |
Cash and cash equivalents, fair value | 2,130 | 2,004 |
Quoted prices in active markets (Level 1) | ' | ' |
Fair value of assets measured on recurring basis observable and unobservable inputs | ' | ' |
Total | 2,130 | 2,004 |
Quoted prices in active markets (Level 1) | Money market | ' | ' |
Fair value of assets measured on recurring basis observable and unobservable inputs | ' | ' |
Cash and cash equivalents, fair value | 2,130 | 2,004 |
Significant other observable inputs (Level 2) | ' | ' |
Fair value of assets measured on recurring basis observable and unobservable inputs | ' | ' |
Total | 325 | 328 |
Significant other observable inputs (Level 2) | Certificates of deposit-restricted | ' | ' |
Fair value of assets measured on recurring basis observable and unobservable inputs | ' | ' |
Restricted investments | $325 | $328 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Fair value of assets measured on recurring basis observable and unobservable inputs | ' | ' | ' | ' |
Cash and cash equivalents, carrying value | $20,862,000 | $31,595,000 | $56,844,000 | $40,607,000 |
Face value of debt | 400,000,000 | 400,000,000 | ' | ' |
Certificate of deposit | ' | ' | ' | ' |
Fair value of assets measured on recurring basis observable and unobservable inputs | ' | ' | ' | ' |
Restricted investments, current | 200,000 | 200,000 | ' | ' |
Restricted investments, noncurrent | 100,000 | 100,000 | ' | ' |
Money market funds | ' | ' | ' | ' |
Fair value of assets measured on recurring basis observable and unobservable inputs | ' | ' | ' | ' |
Cash and cash equivalents, carrying value | 2,100,000 | 2,000,000 | ' | ' |
Cash-on-hand | ' | ' | ' | ' |
Fair value of assets measured on recurring basis observable and unobservable inputs | ' | ' | ' | ' |
Cash and cash equivalents, carrying value | 18,800,000 | 29,600,000 | ' | ' |
Recurring basis | Significant other observable inputs (Level 2) | ' | ' | ' | ' |
Fair value of assets measured on recurring basis observable and unobservable inputs | ' | ' | ' | ' |
Estimated fair value of the debt | $356,000,000 | $380,000,000 | ' | ' |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
U.S. | U.S. | International segment | International segment | Significant unobservable inputs (Level 3) | Significant unobservable inputs (Level 3) | Significant unobservable inputs (Level 3) | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | |||
Customer relationships | Customer relationships | Land held for sale | Total fair value | Total fair value | Significant unobservable inputs (Level 3) | Significant unobservable inputs (Level 3) | |||||||
Income approach | International segment | U.S. | Customer relationships | Customer relationships | |||||||||
Fair value of assets measured on nonrecurring basis observable and unobservable inputs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $737 | ' | $737 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | 737 | ' | 737 | ' |
Impairment charge on assets held for sale | 6,788 | 6,788 | 0 | 0 | 0 | 0 | ' | ' | 6,800 | ' | ' | ' | ' |
Impairment charge | ' | $1,034 | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' |
Discount rate (as a percent) | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Taxes | ' | ' | ' | ' |
Provision (benefit) for income taxes | ($279,000) | ($2,574,000) | $267,000 | ($944,000) |
Income Taxes | ' | ' | ' | ' |
Tax benefit recognized with the reversal of uncertain tax positions upon expiration of statute of limitations for 2009 U.S. tax return | 800,000 | ' | 800,000 | ' |
Tax benefit recognized with the reversal of uncertain tax positions upon expiration of statute of limitations for 2008 U.S. tax return | ' | 1,300,000 | ' | 1,300,000 |
Reduction in taxes payable resulting from expiration of statute of limitations for 2008 U.S. tax return | ' | 2,300,000 | ' | 2,300,000 |
Amount of unrecognized tax benefits primarily relating to transfer pricing which may be recognized within the next twelve months due to the closing of the statute of limitation | 400,000 | ' | 400,000 | ' |
BMS | ' | ' | ' | ' |
Income Taxes | ' | ' | ' | ' |
Net effect on earnings related to deferred tax liabilities | ' | ' | 0 | ' |
Net effect on cash flow related to deferred tax liabilities | ' | ' | $0 | ' |
Inventory_Details
Inventory (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventory | ' | ' |
Raw materials | $7,583,000 | $7,573,000 |
Work in process | 5,212,000 | 5,019,000 |
Finished goods | 4,242,000 | 5,456,000 |
Inventory | 17,037,000 | 18,048,000 |
Other long-term assets | 2,533,000 | 2,090,000 |
Total | 19,570,000 | 20,138,000 |
Non-current raw materials | 2,500,000 | 1,500,000 |
Non-current finished goods | ' | $600,000 |
Inventory_Details_2
Inventory (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Inventory | ' | ' | ' | ' |
Inventory on-hand | ' | ' | $17,037,000 | $18,048,000 |
Purchase commitment for the period | ' | ' | 19,471,000 | 18,945,000 |
Contract loss reserve | ' | ' | 1,315,000 | 7,469,000 |
Reserve recorded for loss | 1,859,000 | 1,859,000 | ' | ' |
API agreement | ' | ' | ' | ' |
Inventory | ' | ' | ' | ' |
Purchase commitment for the period | ' | ' | 3,700,000 | ' |
Remaining future purchase commitment | ' | ' | 1,800,000 | ' |
Contract loss reserve | ' | ' | 1,300,000 | 7,500,000 |
Ablavar | ' | ' | ' | ' |
Inventory | ' | ' | ' | ' |
Inventory on-hand | ' | ' | 3,400,000 | 2,800,000 |
Contract loss reserve | ' | ' | 1,300,000 | 7,500,000 |
Inventory write-down due to product expiration | 10,600,000 | ' | ' | ' |
Reserve recorded for loss | $1,900,000 | ' | ' | ' |
Property_Plant_and_Equipment_n2
Property, Plant and Equipment, net (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Nov. 08, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |
U.S. | U.S. | International segment | International segment | Land | Land | Land | Land | Buildings | Buildings | Machinery, equipment and fixtures | Machinery, equipment and fixtures | Construction in progress | Construction in progress | Spare parts | Spare parts | Fixed assets dedicated to R&D activities | ||||||
U.S. | ||||||||||||||||||||||
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14,950,000 | $22,450,000 | ' | $65,553,000 | $64,649,000 | $65,413,000 | $63,503,000 | $7,423,000 | $7,331,000 | $2,600,000 | $2,700,000 | ' |
Accumulated depreciation | -54,607,000 | ' | -54,607,000 | ' | -48,360,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | 98,732,000 | ' | 98,732,000 | ' | 109,573,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,600,000 |
Depreciation expense | 2,300,000 | 2,400,000 | 7,100,000 | 7,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-Lived Assets Held for Sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charge on assets held for sale | 6,788,000 | ' | 6,788,000 | ' | ' | 0 | 0 | 0 | 0 | ' | 6,788,000 | ' | 6,788,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from sale of excess land | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Reconciliation of the asset retirement obligations | ' |
Balance at the beginning of the period | $5,416 |
Net increase due to changes in estimated future cash flows | 341 |
Accretion expenses | 462 |
Balance at the end of the period | $6,219 |
Intangibles_net_Details
Intangibles, net (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Trademarks | Trademarks | Trademarks | Trademarks | Remaining useful life of acquired customer relationship intangible assets revised estimate | Customer relationships | Customer relationships | Customer relationships | Customer relationships | Customer relationships | Other patents | Other patents | Other patents | Other patents | ||||||
Weighted Average | Weighted Average | International segment | Weighted Average | Weighted Average | Weighted Average | Weighted Average | |||||||||||||
Significant unobservable inputs (Level 3) | |||||||||||||||||||
Intangibles, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost | $203,597,000 | ' | $203,597,000 | ' | $210,170,000 | $53,390,000 | $53,390,000 | ' | ' | ' | $107,427,000 | $114,000,000 | ' | ' | ' | $42,780,000 | $42,780,000 | ' | ' |
Accumulated amortization | 148,831,000 | ' | 148,831,000 | ' | 143,368,000 | 25,967,000 | 20,743,000 | ' | ' | ' | 83,169,000 | 83,385,000 | ' | ' | ' | 39,695,000 | 39,240,000 | ' | ' |
Net | 54,766,000 | ' | 54,766,000 | ' | 66,802,000 | 27,423,000 | 32,647,000 | ' | ' | ' | 24,258,000 | 30,615,000 | ' | ' | ' | 3,085,000 | 3,540,000 | ' | ' |
Weighted Average Useful Life | ' | ' | ' | ' | ' | ' | ' | '8 years | '8 years | '5 years | ' | ' | ' | '19 years | '19 years | ' | ' | '2 years | '2 years |
Intangible asset tested for recoverability | ' | ' | ' | ' | ' | 20,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense | 3,600,000 | 4,000,000 | 10,800,000 | 12,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charge | ' | ' | 1,034,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Expected future amortization expense related to the intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remainder of 2013 | 3,525,000 | ' | 3,525,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 12,943,000 | ' | 12,943,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 11,346,000 | ' | 11,346,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 10,655,000 | ' | 10,655,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 3,688,000 | ' | 3,688,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 and thereafter | 12,609,000 | ' | 12,609,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $54,766,000 | ' | $54,766,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued_Expenses_and_Other_Lia2
Accrued Expenses and Other Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued Expenses and Other Liabilities | ' | ' |
Compensation and benefits | $8,710 | $5,351 |
Accrued interest | 14,650 | 5,040 |
Accrued professional fees | 1,024 | 1,628 |
Research and development services | 1,857 | 3,205 |
Freight, distribution and operations | 2,748 | 3,633 |
Accrued loss on firm purchase commitment | 1,315 | 7,469 |
Marketing expense | 961 | 1,168 |
Accrued rebates, discounts and chargebacks | 1,626 | 1,542 |
Accrued severance | 1,176 | ' |
Other | 444 | 653 |
Accrued expenses | $34,511 | $29,689 |
Accrued_Expenses_and_Other_Lia3
Accrued Expenses and Other Liabilities (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
API agreement | API agreement | Severance | Severance | Ablavar | Ablavar | |||
Accrued Expenses and other liabilities | ' | ' | ' | ' | ' | ' | ' | ' |
Contract loss reserve due to product expiration, associated with the portion of the committed purchases, included in accrued expenses | $1,315,000 | $7,469,000 | $1,300,000 | $7,500,000 | ' | ' | $1,300,000 | $7,500,000 |
Restructuring charges | ' | ' | ' | ' | 2,700,000 | ' | ' | ' |
Accrued severance | $1,176,000 | ' | ' | ' | ' | $800,000 | ' | ' |
Financing_Arrangements_Details
Financing Arrangements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Restricted Senior Notes | Old Facility | Old Facility | Old Facility |
LIBOR | Reference Rate | |||
Financing Arrangements | ' | ' | ' | ' |
Aggregate principal amount outstanding | $400 | ' | ' | ' |
Interest rate (as a percent) | 9.75% | ' | ' | ' |
Maximum borrowing capacity | ' | 42.5 | ' | ' |
Variable rate basis | ' | ' | 'LIBOR | 'Reference |
Unused line of credit fee (as a percent) | ' | 0.75% | ' | ' |
Basis spread on variable rate (as a percent) | ' | ' | 3.75% | 2.75% |
Unfunded standby Letter of Credit outstanding | ' | 8.8 | ' | ' |
Amount outstanding | ' | 0 | ' | ' |
Available borrowing capacity | ' | $33.70 | ' | ' |
Financing_Arrangements_Details1
Financing Arrangements (Details 2) (USD $) | 0 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Aug. 06, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 06, 2013 | Sep. 30, 2013 | Aug. 06, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 |
Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Old Facility | Old Facility | Old Facility | Old Facility | Restricted Senior Notes | |
Minimum | Minimum | Maximum | Maximum | LIBOR | LIBOR | LIBOR | Reference Rate | Reference Rate | Reference Rate | LIBOR | Reference Rate | ||||||
Minimum | Maximum | Minimum | Maximum | ||||||||||||||
Financing Arrangements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | $42.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $42.50 | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | 'Reference | ' | ' | ' | ' | 'LIBOR | 'Reference | ' |
Basis spread on variable rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | 2.00% | 2.50% | ' | 1.00% | 1.50% | ' | ' | 3.75% | 2.75% | ' |
Unused line of credit fee (as a percent) | ' | ' | 0.50% | ' | 0.38% | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | 2.00% | ' | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.75% |
Period prior to maturity of senior notes on which credit facility expires | ' | '91 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing base | ' | 37 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unfunded standby Letter of Credit outstanding | 8.8 | 8.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.8 | ' | ' | ' |
Renewal period of unfunded standby letter of credit | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period required to notify in writing the cancellation of automatic renewal of debt instrument | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' |
Available borrowing capacity | ' | 20.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.7 | ' | ' | ' |
Debt Instrument Covenant Excess Availability Threshold for more than Specified Period of Time | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage threshold of borrowing base to be maintained (as a percent) | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of consecutive business days considered for determining excess availability | ' | ' | '5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of excess availability | ' | ' | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated fixed charge coverage ratio to be maintained | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees and expenses for facility | ' | 1.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write off of unamortized deferred financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.60 | ' | ' | ' | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |||||||||||||||||
Aug. 05, 2013 | Aug. 05, 2013 | Aug. 04, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
2008 Plan | 2013 Plan | 2013 Plan | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Time based stock options | Time based stock options | Time based stock options | Performance based stock options | Modified stock options | Modified stock options | Modified stock options | Modified stock options | Modified stock options | Modified stock options | |
Minimum | Minimum | Maximum | Maximum | Minimum | Maximum | Minimum | Minimum | Maximum | Maximum | |||||||||||||
Stock-Based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of further grants to be issued (in shares) | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares that may be issued pursuant to awards | ' | 2,700,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '5 years | ' | ' | ' | ' | ' | ' | ' |
Contractual term | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Black-Scholes inputs used for estimating the fair value of each option award on the date of grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | ' | 36.00% | 39.00% | 36.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility, minimum (as a percent) | ' | ' | ' | ' | ' | ' | 39.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36.00% | 30.00% | ' | ' | ' | ' |
Expected volatility, maximum (as a percent) | ' | ' | ' | ' | ' | ' | 41.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37.00% | 36.00% | ' | ' | ' | ' |
Expected life | ' | ' | ' | '6 years 3 months 18 days | '5 years 6 months | ' | ' | ' | '5 years 6 months | '5 years 6 months | '6 years 3 months 18 days | '6 years 6 months | ' | ' | ' | ' | ' | ' | '4 years 9 months 18 days | '3 months 18 days | '6 years | '3 years 6 months |
Risk-free interest rate (as a percent) | ' | ' | ' | 1.70% | 0.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate, minimum (as a percent) | ' | ' | ' | ' | ' | 0.70% | 0.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.70% | 0.30% | ' | ' | ' | ' |
Risk-free interest rate, maximum (as a percent) | ' | ' | ' | ' | ' | 1.70% | 1.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.90% | 0.80% | ' | ' | ' | ' |
Number of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | ' | ' | ' | 3,329,298 | ' | ' | ' | ' | ' | ' | 2,326,350 | ' | ' | 1,002,948 | ' | ' | ' | ' | ' | ' |
Options granted (in shares) | ' | ' | ' | ' | ' | 1,940,177 | ' | ' | ' | ' | ' | ' | 1,340,177 | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' |
Options cancelled (in shares) | ' | ' | ' | ' | ' | -472,355 | ' | ' | ' | ' | ' | ' | -214,700 | ' | ' | -257,655 | ' | ' | ' | ' | ' | ' |
Options exercised (in shares) | ' | ' | ' | ' | ' | -631,518 | ' | ' | ' | ' | ' | ' | -583,750 | ' | ' | -47,768 | ' | ' | ' | ' | ' | ' |
Options forfeited or expired (in shares) | ' | ' | ' | ' | ' | -159,516 | ' | ' | ' | ' | ' | ' | -93,315 | ' | ' | -66,201 | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in shares) | ' | ' | ' | 4,006,086 | ' | 4,006,086 | ' | 3,329,298 | ' | ' | ' | ' | 2,774,762 | ' | ' | 1,231,324 | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period (in shares) | ' | ' | ' | 3,786,285 | ' | 3,786,285 | ' | ' | ' | ' | ' | ' | 2,688,003 | ' | ' | 1,098,282 | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in shares) | ' | ' | ' | 1,957,114 | ' | 1,957,114 | ' | ' | ' | ' | ' | ' | 1,447,088 | ' | ' | 510,026 | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | $3.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted (in dollars per share) | ' | ' | ' | ' | ' | $6.77 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options cancelled (in dollars per share) | ' | ' | ' | ' | ' | $2.22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercised (in dollars per share) | ' | ' | ' | ' | ' | $2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options forfeited or expired (in dollars per share) | ' | ' | ' | ' | ' | $8.38 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | ' | ' | $4.95 | ' | $4.95 | ' | $3.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period (in dollars per share) | ' | ' | ' | $4.84 | ' | $4.84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars per share) | ' | ' | ' | $2.80 | ' | $2.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | ' | ' | ' | ' | '7 years 2 months 12 days | ' | '5 years 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period | ' | ' | ' | ' | ' | '7 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | ' | ' | ' | ' | '4 years 9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | ' | ' | $7,240,000 | ' | $7,240,000 | ' | $15,336,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period | ' | ' | ' | 7,240,000 | ' | 7,240,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | ' | ' | $7,240,000 | ' | $7,240,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant-date fair value of options granted (in dollars per share) | ' | ' | ' | $2.53 | $3.06 | $2.45 | $3.45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock issued | ' | ' | ' | ' | ' | 459,171 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock options | Stock options | Stock options | Stock options | Performance based stock options | Modified stock options | Modified stock options | Modified stock options | Modified stock options | Cost of goods sold | Cost of goods sold | Cost of goods sold | Cost of goods sold | General and administrative | General and administrative | General and administrative | General and administrative | Sales and marketing | Sales and marketing | Sales and marketing | Sales and marketing | Research and development | Research and development | Research and development | Research and development | |
item | item | item | item | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | ||||||
Stock-based compensation expense recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | $172,000 | $276,000 | $735,000 | $1,066,000 | ' | ' | ' | ' | ' | $26,000 | $30,000 | $56,000 | $47,000 | $62,000 | $175,000 | $553,000 | $811,000 | $46,000 | $24,000 | $86,000 | $80,000 | $38,000 | $47,000 | $40,000 | $128,000 |
Stock compensation expense associated with the modification of option agreements | ' | ' | ' | ' | ' | ' | ' | 134,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of agreements modified | ' | ' | ' | ' | ' | ' | ' | 2 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of agreements effectuated, which were modified | ' | ' | ' | ' | ' | 1 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation costs | $4,200,000 | ' | $4,200,000 | ' | $900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average remaining period for recognition of unrecognized compensation costs | ' | ' | '1 year 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other_Income_Expense_net_Detai
Other Income (Expense), net (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other Income (Expense), net | ' | ' | ' | ' |
Foreign currency losses | ($174) | ($12) | ($180) | ($344) |
Tax indemnification income (loss) | 434 | -882 | 706 | -52 |
Other income | ' | 60 | 368 | 148 |
Total other income (expense), net | $260 | ($834) | $894 | ($248) |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Related Party Transactions | ' | ' | ' | ' | ' |
Accrued expenses | $34,511,000 | ' | $34,511,000 | ' | $29,689,000 |
Accounts payable | 19,471,000 | ' | 19,471,000 | ' | 18,945,000 |
INC | ' | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' | ' |
Agreement term | ' | '5 years | ' | ' | ' |
Costs incurred associated with agreement | 0 | 200,000 | 500,000 | 200,000 | ' |
Accounts payable and accrued expenses | 0 | ' | 0 | ' | 500,000 |
LMI | ' | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' | ' |
Due from parent | 1,200,000 | ' | 1,200,000 | ' | 1,300,000 |
Avista | Advisory services and monitoring agreement | ' | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' | ' |
Agreement term | ' | ' | '7 years | ' | ' |
Costs incurred associated with agreement | 300,000 | 300,000 | 800,000 | 800,000 | ' |
Accrued expenses | 20,000 | ' | 20,000 | ' | 20,000 |
Annual fee required to be paid | 1,000,000 | ' | 1,000,000 | ' | ' |
VWR | ' | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' | ' |
Purchases | 100,000 | 100,000 | 200,000 | 200,000 | ' |
Accounts payable | 8,000 | ' | 8,000 | ' | 19,000 |
Officer | ' | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' | ' |
Due from related party, accounts receivable, net | $100,000 | ' | $100,000 | ' | $100,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment Information | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | 2 | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Revenues | $70,385 | $73,745 | $212,004 | $215,857 | ' |
Revenues from external customers | ' | ' | ' | ' | ' |
Revenues from external customers | 70,385 | 73,745 | 212,004 | 215,857 | ' |
Operating income (loss) | ' | ' | ' | ' | ' |
Operating income (loss) | -4,568 | -19,997 | -17,680 | -1,870 | ' |
Interest expense, net | -11,035 | -10,464 | -32,323 | -31,277 | ' |
Other income (expense), net | 260 | -834 | 894 | -248 | ' |
Loss before income taxes | -15,343 | -31,295 | -49,109 | -33,395 | ' |
Total Assets | 283,025 | ' | 283,025 | ' | 322,926 |
Reportable segment | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Revenues | 74,788 | 78,780 | 227,681 | 230,215 | ' |
Operating income (loss) | ' | ' | ' | ' | ' |
Operating income (loss) | -5,170 | -19,732 | -17,501 | -2,657 | ' |
U.S. | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' |
Percentage of consolidated revenues (as a percent) | 73.90% | 74.70% | 74.80% | 71.80% | ' |
Percentage of consolidated assets (as a percent) | ' | ' | 89.00% | ' | 86.70% |
Revenues | ' | ' | ' | ' | ' |
Revenues | 56,407 | 60,108 | 174,167 | 169,297 | ' |
Revenues from external customers | ' | ' | ' | ' | ' |
Revenues from external customers | 52,004 | 55,073 | 158,490 | 154,939 | ' |
Operating income (loss) | ' | ' | ' | ' | ' |
Operating income (loss) | -5,116 | -21,580 | -18,414 | -12,291 | ' |
Total Assets | 251,816 | ' | 251,816 | ' | 279,808 |
International | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Revenues | 18,381 | 18,672 | 53,514 | 60,918 | ' |
Revenues from external customers | ' | ' | ' | ' | ' |
Revenues from external customers | 18,381 | 18,672 | 53,514 | 60,918 | ' |
Operating income (loss) | ' | ' | ' | ' | ' |
Operating income (loss) | -54 | 1,848 | 913 | 9,634 | ' |
Total Assets | 31,209 | ' | 31,209 | ' | 43,118 |
Inter-segment | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Revenues | -4,403 | -5,035 | -15,677 | -14,358 | ' |
Operating income (loss) | ' | ' | ' | ' | ' |
Operating income (loss) | $602 | ($265) | ($179) | $787 | ' |
Guarantor_Financial_Informatio2
Guarantor Financial Information (Details) (Guarantor Subsidiary) | 9 Months Ended |
Sep. 30, 2013 | |
item | |
Guarantor Subsidiary | ' |
Guarantor Financial Information | ' |
Number of guarantor subsidiaries | 1 |
Guarantor_Financial_Informatio3
Guarantor Financial Information (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | $20,862,000 | $31,595,000 | $56,844,000 | $40,607,000 |
Accounts receivable, net | 37,587,000 | 41,380,000 | ' | ' |
Inventory | 17,037,000 | 18,048,000 | ' | ' |
Income tax receivable | 437,000 | 736,000 | ' | ' |
Deferred tax assets | 27,000 | 115,000 | ' | ' |
Other current assets | 3,462,000 | 2,943,000 | ' | ' |
Total current assets | 79,412,000 | 94,817,000 | ' | ' |
Property, plant and equipment, net | 98,732,000 | 109,573,000 | ' | ' |
Capitalized software development costs, net | 1,213,000 | 2,234,000 | ' | ' |
Intangibles, net | 54,766,000 | 66,802,000 | ' | ' |
Goodwill | 15,714,000 | 15,714,000 | ' | ' |
Deferred financing costs | 10,194,000 | 11,372,000 | ' | ' |
Other long-term assets | 22,994,000 | 22,414,000 | ' | ' |
Total assets | 283,025,000 | 322,926,000 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Line of credit | 8,000,000 | ' | ' | ' |
Accounts payable | 19,471,000 | 18,945,000 | ' | ' |
Accrued expenses and other liabilities | 34,511,000 | 29,689,000 | ' | ' |
Note payable | 119,000 | ' | ' | ' |
Deferred revenue | 3,848,000 | 7,320,000 | ' | ' |
Total current liabilities | 65,949,000 | 55,954,000 | ' | ' |
Asset retirement obligation | 6,219,000 | 5,416,000 | ' | ' |
Long-term debt, net | 398,984,000 | 398,822,000 | ' | ' |
Deferred tax liability | 22,000 | 435,000 | ' | ' |
Other long-term liabilities | 35,910,000 | 36,652,000 | ' | ' |
Total liabilities | 507,084,000 | 497,279,000 | ' | ' |
(Deficit) equity | -224,059,000 | -174,353,000 | ' | -133,203,000 |
Total liabilities and stockholder's deficit | 283,025,000 | 322,926,000 | ' | ' |
Lantheus Intermediate | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Investment in subsidiaries | -224,059,000 | -174,353,000 | ' | ' |
Total assets | -224,059,000 | -174,353,000 | ' | ' |
Current liabilities | ' | ' | ' | ' |
(Deficit) equity | -224,059,000 | -174,353,000 | ' | ' |
Total liabilities and stockholder's deficit | -224,059,000 | -174,353,000 | ' | ' |
LMI | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 13,132,000 | 17,635,000 | 36,379,000 | 20,474,000 |
Accounts receivable, net | 26,540,000 | 30,218,000 | ' | ' |
Intercompany accounts receivable | 2,541,000 | 1,992,000 | ' | ' |
Inventory | 14,842,000 | 15,417,000 | ' | ' |
Income tax receivable | 456,000 | 291,000 | ' | ' |
Other current assets | 2,494,000 | 2,596,000 | ' | ' |
Total current assets | 60,005,000 | 68,149,000 | ' | ' |
Property, plant and equipment, net | 76,641,000 | 78,578,000 | ' | ' |
Capitalized software development costs, net | 1,210,000 | 2,230,000 | ' | ' |
Intangibles, net | 50,551,000 | 60,370,000 | ' | ' |
Goodwill | 15,714,000 | 15,714,000 | ' | ' |
Deferred financing costs | 10,194,000 | 11,372,000 | ' | ' |
Investment in subsidiaries | 42,526,000 | 58,166,000 | ' | ' |
Other long-term assets | 22,781,000 | 22,192,000 | ' | ' |
Total assets | 279,622,000 | 316,771,000 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Line of credit | 8,000,000 | ' | ' | ' |
Accounts payable | 17,406,000 | 16,835,000 | ' | ' |
Accrued expenses and other liabilities | 31,377,000 | 26,592,000 | ' | ' |
Note payable | 119,000 | ' | ' | ' |
Deferred revenue | 3,848,000 | 7,229,000 | ' | ' |
Total current liabilities | 60,750,000 | 50,656,000 | ' | ' |
Asset retirement obligation | 6,052,000 | 5,268,000 | ' | ' |
Long-term debt, net | 398,984,000 | 398,822,000 | ' | ' |
Intercompany note payable | 2,249,000 | ' | ' | ' |
Other long-term liabilities | 35,646,000 | 36,378,000 | ' | ' |
Total liabilities | 503,681,000 | 491,124,000 | ' | ' |
(Deficit) equity | -224,059,000 | -174,353,000 | ' | ' |
Total liabilities and stockholder's deficit | 279,622,000 | 316,771,000 | ' | ' |
Guarantor Subsidiary | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Other current assets | 712,000 | ' | ' | ' |
Total current assets | 712,000 | ' | ' | ' |
Property, plant and equipment, net | 15,635,000 | 23,195,000 | ' | ' |
Total assets | 16,347,000 | 23,195,000 | ' | ' |
Current liabilities | ' | ' | ' | ' |
(Deficit) equity | 16,347,000 | 23,195,000 | ' | ' |
Total liabilities and stockholder's deficit | 16,347,000 | 23,195,000 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 7,730,000 | 13,960,000 | 20,465,000 | 20,133,000 |
Accounts receivable, net | 11,047,000 | 11,162,000 | ' | ' |
Inventory | 2,195,000 | 2,631,000 | ' | ' |
Income tax receivable | -19,000 | 445,000 | ' | ' |
Deferred tax assets | 27,000 | 115,000 | ' | ' |
Other current assets | 256,000 | 347,000 | ' | ' |
Total current assets | 21,236,000 | 28,660,000 | ' | ' |
Property, plant and equipment, net | 6,456,000 | 7,800,000 | ' | ' |
Capitalized software development costs, net | 3,000 | 4,000 | ' | ' |
Intangibles, net | 4,215,000 | 6,432,000 | ' | ' |
Intercompany note receivable | 2,249,000 | ' | ' | ' |
Other long-term assets | 213,000 | 222,000 | ' | ' |
Total assets | 34,372,000 | 43,118,000 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts payable | 2,065,000 | 2,110,000 | ' | ' |
Intercompany accounts payable | 2,541,000 | 1,992,000 | ' | ' |
Accrued expenses and other liabilities | 3,134,000 | 3,097,000 | ' | ' |
Deferred revenue | ' | 91,000 | ' | ' |
Total current liabilities | 7,740,000 | 7,290,000 | ' | ' |
Asset retirement obligation | 167,000 | 148,000 | ' | ' |
Deferred tax liability | 22,000 | 435,000 | ' | ' |
Other long-term liabilities | 264,000 | 274,000 | ' | ' |
Total liabilities | 8,193,000 | 8,147,000 | ' | ' |
(Deficit) equity | 26,179,000 | 34,971,000 | ' | ' |
Total liabilities and stockholder's deficit | 34,372,000 | 43,118,000 | ' | ' |
Eliminations | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Intercompany accounts receivable | -2,541,000 | -1,992,000 | ' | ' |
Total current assets | -2,541,000 | -1,992,000 | ' | ' |
Investment in subsidiaries | 181,533,000 | 116,187,000 | ' | ' |
Intercompany note receivable | -2,249,000 | ' | ' | ' |
Total assets | 176,743,000 | 114,195,000 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Intercompany accounts payable | -2,541,000 | -1,992,000 | ' | ' |
Total current liabilities | -2,541,000 | -1,992,000 | ' | ' |
Intercompany note payable | -2,249,000 | ' | ' | ' |
Total liabilities | -4,790,000 | -1,992,000 | ' | ' |
(Deficit) equity | 181,533,000 | 116,187,000 | ' | ' |
Total liabilities and stockholder's deficit | $176,743,000 | $114,195,000 | ' | ' |
Guarantor_Financial_Informatio4
Guarantor Financial Information (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Guarantor Financial Information | ' | ' | ' | ' | ' |
Net product revenues | $67,253 | $71,163 | $202,961 | $207,839 | ' |
License and other revenues | 3,132 | 2,582 | 9,043 | 8,018 | ' |
Total revenues | 70,385 | 73,745 | 212,004 | 215,857 | ' |
Cost of goods sold | 46,664 | 65,114 | 144,524 | 166,275 | ' |
Loss on firm purchase commitment | ' | 1,859 | ' | 1,859 | ' |
Total cost of goods sold | 46,664 | 66,973 | 144,524 | 168,134 | ' |
Gross profit | 23,721 | 6,772 | 67,480 | 47,723 | ' |
Operating expenses | ' | ' | ' | ' | ' |
General and administrative expenses | 7,132 | 7,801 | 25,678 | 24,760 | ' |
Sales and marketing expenses | 8,476 | 9,257 | 27,266 | 28,165 | ' |
Research and development expenses | 5,893 | 10,511 | 25,428 | 31,282 | ' |
Impairment of land | 6,788 | ' | 6,788 | ' | ' |
Proceeds from manufacturer | ' | -800 | ' | -34,614 | ' |
Operating loss | -4,568 | -19,997 | -17,680 | -1,870 | ' |
Interest expense, net | -11,035 | -10,464 | -32,323 | -31,277 | ' |
Other income (expense), net | 260 | -834 | 894 | -248 | ' |
Loss before income taxes | -15,343 | -31,295 | -49,109 | -33,395 | ' |
Provision (benefit) for income taxes | -279 | -2,574 | 267 | -944 | ' |
Net loss | -15,064 | -28,721 | -49,376 | -32,451 | -42,001 |
Foreign currency translation, net of taxes | 417 | 1,021 | -1,176 | 1,199 | ' |
Total comprehensive loss | -14,647 | -27,700 | -50,552 | -31,252 | ' |
Lantheus Intermediate | ' | ' | ' | ' | ' |
Operating expenses | ' | ' | ' | ' | ' |
Equity in earnings (losses) of affiliates | -15,064 | -28,721 | -49,376 | -32,451 | ' |
Loss before income taxes | -15,064 | -28,721 | -49,376 | -32,451 | ' |
Net loss | -15,064 | -28,721 | -49,376 | -32,451 | ' |
Equity in other comprehensive income (loss) of subsidiaries | 417 | 1,021 | -1,176 | 1,199 | ' |
Total comprehensive loss | -14,647 | -27,700 | -50,552 | -31,252 | ' |
LMI | ' | ' | ' | ' | ' |
Guarantor Financial Information | ' | ' | ' | ' | ' |
Net product revenues | 56,284 | 59,551 | 171,410 | 171,593 | ' |
License and other revenues | 3,132 | 2,582 | 9,043 | 8,018 | ' |
Total revenues | 59,416 | 62,133 | 180,453 | 179,611 | ' |
Cost of goods sold | 35,859 | 55,301 | 115,962 | 135,899 | ' |
Loss on firm purchase commitment | ' | 1,859 | ' | 1,859 | ' |
Total cost of goods sold | ' | 57,160 | ' | 137,758 | ' |
Gross profit | 23,557 | 4,973 | 64,491 | 41,853 | ' |
Operating expenses | ' | ' | ' | ' | ' |
General and administrative expenses | 6,585 | 7,253 | 23,844 | 23,039 | ' |
Sales and marketing expenses | 7,641 | 8,585 | 24,564 | 25,580 | ' |
Research and development expenses | 5,779 | 10,484 | 25,200 | 31,167 | ' |
Proceeds from manufacturer | ' | -800 | ' | -34,614 | ' |
Operating loss | 3,552 | -20,549 | -9,117 | -3,319 | ' |
Interest expense, net | -11,083 | -10,509 | -32,458 | -31,475 | ' |
Other income (expense), net | 409 | -830 | 1,039 | -175 | ' |
Equity in earnings (losses) of affiliates | -8,197 | 382 | -8,552 | 1,252 | ' |
Loss before income taxes | -15,319 | -31,506 | -49,088 | -33,717 | ' |
Provision (benefit) for income taxes | -255 | -2,785 | 288 | -1,266 | ' |
Net loss | -15,064 | -28,721 | -49,376 | -32,451 | ' |
Foreign currency translation, net of taxes | ' | ' | ' | 200 | ' |
Equity in other comprehensive income (loss) of subsidiaries | 417 | 1,021 | -1,176 | 999 | ' |
Total comprehensive loss | -14,647 | -27,700 | -50,552 | -31,252 | ' |
Guarantor Subsidiary | ' | ' | ' | ' | ' |
Operating expenses | ' | ' | ' | ' | ' |
General and administrative expenses | 20 | 20 | 60 | 60 | ' |
Impairment of land | 6,788 | ' | 6,788 | ' | ' |
Operating loss | -6,808 | -20 | -6,848 | -60 | ' |
Loss before income taxes | -6,808 | -20 | -6,848 | -60 | ' |
Net loss | -6,808 | -20 | -6,848 | -60 | ' |
Total comprehensive loss | -6,808 | -20 | -6,848 | -60 | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Guarantor Financial Information | ' | ' | ' | ' | ' |
Net product revenues | 15,372 | 16,646 | 47,228 | 50,604 | ' |
Total revenues | 15,372 | 16,646 | 47,228 | 50,604 | ' |
Cost of goods sold | 15,208 | 14,847 | 44,239 | 44,734 | ' |
Total cost of goods sold | ' | 14,847 | ' | 44,734 | ' |
Gross profit | 164 | 1,799 | 2,989 | 5,870 | ' |
Operating expenses | ' | ' | ' | ' | ' |
General and administrative expenses | 527 | 528 | 1,774 | 1,661 | ' |
Sales and marketing expenses | 835 | 672 | 2,702 | 2,585 | ' |
Research and development expenses | 114 | 27 | 228 | 115 | ' |
Operating loss | -1,312 | 572 | -1,715 | 1,509 | ' |
Interest expense, net | 48 | 45 | 135 | 198 | ' |
Other income (expense), net | -149 | -4 | -145 | -73 | ' |
Loss before income taxes | -1,413 | 613 | -1,725 | 1,634 | ' |
Provision (benefit) for income taxes | -24 | 211 | -21 | 322 | ' |
Net loss | -1,389 | 402 | -1,704 | 1,312 | ' |
Foreign currency translation, net of taxes | 417 | 1,021 | -1,176 | 999 | ' |
Total comprehensive loss | -972 | 1,423 | -2,880 | 2,311 | ' |
Eliminations | ' | ' | ' | ' | ' |
Guarantor Financial Information | ' | ' | ' | ' | ' |
Net product revenues | -4,403 | -5,034 | -15,677 | -14,358 | ' |
Total revenues | -4,403 | -5,034 | -15,677 | -14,358 | ' |
Cost of goods sold | -4,403 | -5,034 | -15,677 | -14,358 | ' |
Total cost of goods sold | ' | -5,034 | ' | -14,358 | ' |
Operating expenses | ' | ' | ' | ' | ' |
Equity in earnings (losses) of affiliates | 23,261 | 28,339 | 57,928 | 31,199 | ' |
Loss before income taxes | 23,261 | 28,339 | 57,928 | 31,199 | ' |
Net loss | 23,261 | 28,339 | 57,928 | 31,199 | ' |
Equity in other comprehensive income (loss) of subsidiaries | -834 | -2,042 | 2,352 | -2,198 | ' |
Total comprehensive loss | $22,427 | $26,297 | $60,280 | $29,001 | ' |
Guarantor_Financial_Informatio5
Guarantor Financial Information (Details 4) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Guarantor Financial Information | ' | ' |
Cash provided by (used in) operating activities | ($11,822) | $22,211 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -3,711 | -4,900 |
Purchase of certificate of deposit | ' | -225 |
Cash used in investing activities | -3,711 | -5,125 |
Cash flows from financing activities | ' | ' |
Payments on note payable | -1,174 | -1,375 |
Proceeds from line of credit | 8,000 | ' |
Payments of deferred financing costs | -1,188 | -198 |
Payments from parent | 111 | 44 |
Cash provided by (used in) financing activities | 5,749 | -1,529 |
Effect of foreign exchange rate on cash | -949 | 680 |
(Decrease) increase in cash and cash equivalents | -10,733 | 16,237 |
Cash and cash equivalents, beginning of period | 31,595 | 40,607 |
Cash and cash equivalents, end of period | 20,862 | 56,844 |
LMI | ' | ' |
Guarantor Financial Information | ' | ' |
Cash provided by (used in) operating activities | -13,054 | 22,111 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -3,621 | -4,452 |
Purchase of certificate of deposit | ' | -225 |
Proceeds from dividend | 4,174 | ' |
Cash used in investing activities | 553 | -4,677 |
Cash flows from financing activities | ' | ' |
Payments on note payable | -1,174 | -1,375 |
Proceeds from line of credit | 8,000 | ' |
Payments of deferred financing costs | -1,188 | -198 |
Payments from parent | 111 | 44 |
Intercompany note | 2,249 | ' |
Cash provided by (used in) financing activities | 7,998 | -1,529 |
(Decrease) increase in cash and cash equivalents | -4,503 | 15,905 |
Cash and cash equivalents, beginning of period | 17,635 | 20,474 |
Cash and cash equivalents, end of period | 13,132 | 36,379 |
Non-Guarantor Subsidiaries | ' | ' |
Guarantor Financial Information | ' | ' |
Cash provided by (used in) operating activities | 2,970 | 4,823 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -90 | -448 |
Cash used in investing activities | -90 | -448 |
Cash flows from financing activities | ' | ' |
Intercompany note | -2,249 | ' |
Payment of dividend | -5,912 | -4,723 |
Cash provided by (used in) financing activities | -8,161 | -4,723 |
Effect of foreign exchange rate on cash | -949 | 680 |
(Decrease) increase in cash and cash equivalents | -6,230 | 332 |
Cash and cash equivalents, beginning of period | 13,960 | 20,133 |
Cash and cash equivalents, end of period | 7,730 | 20,465 |
Eliminations | ' | ' |
Guarantor Financial Information | ' | ' |
Cash provided by (used in) operating activities | -1,738 | -4,723 |
Cash flows from investing activities | ' | ' |
Proceeds from dividend | -4,174 | ' |
Cash used in investing activities | -4,174 | ' |
Cash flows from financing activities | ' | ' |
Payment of dividend | 5,912 | 4,723 |
Cash provided by (used in) financing activities | $5,912 | $4,723 |