Exhibit 99.1
Contacts: | Robert Jaffe/Evan Pondel |
| PondelWilkinson Inc. |
| (310) 279-5980 |
LANNETT REPORTS STRONG FISCAL 2009 FIRST-QUARTER FINANCIAL RESULTS
Philadelphia, PA – November 13, 2008 – Lannett Company, Inc. (AMEX: LCI) today reported financial results for the fiscal 2009 first quarter ended September 30, 2008.
For the first quarter of fiscal 2009, net sales grew to $25.6 million, compared with $17.5 million for the first quarter of fiscal 2008. First-quarter net income was $1.2 million, or $0.05 per diluted share, versus a net loss of $127,161, or $0.01 per share, for the prior year first quarter.
“Our first-quarter performance reflected strong sales of our base business products,” said Arthur Bedrosian, president and chief executive officer of Lannett. “With six product approvals in fiscal 2008 and a number of ANDAs (Abbreviated New Drug Applications) currently pending at the FDA, Lannett is well positioned for continued growth and profitability.
“Additionally, we believe our recently granted import license from the DEA bodes well for the company’s operations over the long term as we enter a pain management market with relatively few competitors and favorable demographics, and continue to diversify our product portfolio,” Bedrosian added.
Gross profit for the fiscal 2009 first quarter increased to $9.0 million from $5.1 million for the same period in the prior year. Research and development expenses were $1.9 million compared with $1.3 million in the comparable prior year period. Selling, general and administrative expenses increased to $4.9 million from $4.0 million in the same period last year, largely due to legal expenses associated with current patent challenge litigation.
Conference Call Information and Forward-Looking Statements
On Thursday, November 13, 2008, the company will host a conference call with interested parties beginning at 4:30 p.m. ET to review its results of operations for the first quarter ended September 30, 2008. The conference call will be available to interested parties through a live audio Internet broadcast at www.lannett.com. The call will also be archived and accessible at this site for approximately two weeks. A telephonic replay will be available through November 15, 2008, and can be accessed by dialing 800-938-0012 (domestic) or 973-935-8652 (international) and using the playback Passcode 73002338.
Discussion during the conference call may include forward-looking statements regarding such topics as, but not limited to, the company’s financial status and performance and regulatory and operational developments, and any comments the company may make about its future plans or prospects in response to questions from participants on the conference call.
About Lannett Company, Inc.:
Lannett Company, founded in 1942, develops, manufactures, packages, markets and distributes generic pharmaceutical products for a wide range of indications. For more information, visit the company’s website at www.lannett.com.
This news release contains certain statements of a forward-looking nature relating to future events or future business performance. Any such statements, including, but not limited to, the future financial performance of Cody Laboratories, pending ANDAs and products in various stages of development, whether expressed or implied, are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated due to a number of factors which include, but are not limited to, the difficulty in predicting the timing or outcome of FDA or other regulatory approvals or actions, the ability to successfully commercialize products upon approval, Lannett’s estimated or anticipated future financial results, future inventory levels, future competition or pricing, future levels of operating expenses, product development efforts or performance, and other risk factors discussed in the company’s Form 10-K and other documents filed with the Securities and Exchange Commission from time to time. These forward-looking statements represent the company’s judgment as of the date of this news release. The company disclaims any intent or obligation to update these forward-looking statements.
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FINANCIAL TABLES FOLLOW
LANNETT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
| | (UNAUDITED) | | | |
| | September 30, | | June 30, | |
| | 2008 | | 2008 | |
Assets: | | | | | |
Current Assets: | | | | | |
Cash | | $ | 15,132,426 | | $ | 6,256,712 | |
Trade accounts receivable, net | | 25,779,954 | | 34,114,982 | |
Inventories | | 11,322,687 | | 11,617,258 | |
Interest receivable | | 66,606 | | 51,781 | |
Prepaid taxes | | 814,928 | | 1,598,937 | |
Deferred tax assets | | 6,198,694 | | 6,997,935 | |
Other current assets | | 691,807 | | 591,415 | |
Total current assets | | 60,007,102 | | 61,229,020 | |
| | | | | |
Property, plant, and equipment, net | | 24,065,791 | | 24,734,103 | |
| | | | | |
Investment securities - available-for-sale | | 2,490,356 | | 2,500,135 | |
Deferred tax assets | | 17,225,418 | | 17,380,115 | |
Intangible asset, net | | 10,346,168 | | 10,361,835 | |
Construction in progress | | 498,118 | | 458,046 | |
Other assets | | 186,325 | | 195,354 | |
Total Assets | | $ | 114,819,278 | | $ | 116,858,608 | |
| | | | | |
Liabilities and Shareholders’ Equity: | | | | | |
Current liabilities | | $ | 32,057,280 | | $ | 35,638,552 | |
Long-term debt, less current portion | | 8,116,389 | | 8,186,922 | |
Deferred tax liabilities | | 3,140,395 | | 3,179,344 | |
Other long term liabilities | | 533,950 | | 532,001 | |
Minority interest | | 67,815 | | 50,309 | |
Shareholders’ equity | | 70,903,449 | | 69,271,480 | |
Total Liabilities and Shareholders’ Equity | | $ | 114,819,278 | | $ | 116,858,608 | |
LANNETT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| | Three months ended | |
| | September 30, | |
| | 2008 | | 2007 | |
| | | | | |
Net sales | | $ | 25,567,653 | | $ | 17,540,030 | |
Cost of sales | | 16,120,195 | | 11,792,536 | |
Amortization of intangible assets | | 446,166 | | 446,166 | |
Product royalties | | — | | 195,570 | |
Gross profit | | 9,001,292 | | 5,105,758 | |
| | | | | |
Research and development expenses | | 1,863,113 | | 1,252,148 | |
Selling, general, and administrative expenses | | 4,949,144 | | 3,979,710 | |
Loss on sale of assets | | (4,931 | ) | — | |
| | | | | |
Operating income (loss) | | 2,184,104 | | (126,100 | ) |
| | | | | |
Other expense | | (20,442 | ) | (46,746 | ) |
| | | | | |
Income (loss) before income tax expense (benefit) and minority interest | | 2,163,662 | | (172,846 | ) |
| | | | | |
Income tax expense (benefit) | | 919,990 | | (45,685 | ) |
Minority interest in Cody LCI Realty, LLC | | (17,507 | ) | — | |
| | | | | |
Net income (loss) | | $ | 1,226,165 | | $ | (127,161 | ) |
Income (loss) per share: | | | | | |
Basic | | $ | 0.05 | | $ | (0.01 | ) |
Diluted | | $ | 0.05 | | $ | (0.01 | ) |
| | | | | |
Shares used to calculate income (loss) per share: | | | | | |
Basic | | 24,306,488 | | 24,175,643 | |
Diluted | | 24,382,951 | | 24,175,643 | |
