Lannett Reports Fiscal 2009 Fourth Quarter, Full-Year Financial Results
Full-Year Fiscal 2009 Highlights:
- Net sales up 64% to $119.0 million from $72.4 million in fiscal 2008
- Gross profit increased to $45.2 million from $16.3 million in prior year
- Net income was $6.5 million, versus a net loss of $2.3 million in fiscal 2008
Philadelphia, PA – September 9, 2009 – Lannett Company, Inc. (NYSE Amex: LCI) today reported financial results for the fiscal 2009 fourth quarter and full year ended June 30, 2009.
For fiscal 2009, net sales rose 64 percent to $119.0 million compared with $72.4 million for fiscal 2008. Gross profit was $45.2 million compared with $16.3 million for the same period in the prior year. Research and development (R&D) expenses increased to $8.4 million from $5.2 million in the comparable prior year period. Selling, general and administrative (SG&A) expenses increased to $26.1 million from $16.6 million in the same period last year. Net income was $6.5 million, or $0.27 per diluted share, compared with a net loss of $2.3 million, or $0.10 per share, for the prior year.
“Our solid performance in fiscal 2009 was related to strong sales of the company’s key products, as well as increased demand for our existing products,” said Arthur Bedrosian, president and chief executive officer of Lannett. “Our high-quality manufacturing standards continued to allow us to supply the U.S. market with important medications and alleviate market shortages.”
Bedrosian added that Lannett’s cash position grew to nearly $26 million from $15 million at the end of the previous quarter, further strengthening the company’s balance sheet and providing it with resources for the potential expansion of capabilities and/or acquisition of complementary products and technologies.
For the fourth quarter of fiscal 2009, net sales were $35.4 million compared with $20.7 million for the same period of the prior year. Gross profit was $13.6 million, compared with $2.9 million for the same period in the prior year. R&D expenses increased to $2.7 million from $1.5 million in the comparable prior year period. SG&A expenses increased to $6.9 million compared with $4.1 million in the same period last year. Net income was $2.4 million, or $0.10 per diluted share, compared with a net loss of $278,000, or $0.01 per share, which included an income tax benefit of $2.6 million, for the prior year fourth quarter.
The company recorded income tax expense for 2009 of approximately $4.1 million, but paid only $250,000 due to the reversal of certain deferred tax assets.
Conference Call Information and Forward-Looking Statements
On Wednesday, September 9, 2009, 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 fourth quarter and full year ended June 30, 2009. The conference call will be available to interested parties by dialing 800-446-1671 from the U.S. or Canada, or 847-413-3362 from international locations, passcode 25364097. This call is also available through a live, listen-only audio Web broadcast at www.lannett.com, where it will be archived and accessible for one year.
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 company’s future performance benefiting from increased sales of its existing product line, 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 forwardlooking 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.