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Cumberland Pharmaceuticals Announces Return To Growth And Profitability In 2014
2014 Highlights:
- Continued diversification of the revenue stream through the additions of Vaprisol® and Omeclamox®-Pak to the portfolio and launch of active promotion for both brands.
- Experienced accelerated growth from Kristalose®, which became
Cumberland's largest product, through implementation of new marketing strategies. - Completed significant Phase IV clinical work for Caldolor®, including pediatric pain and fever studies.
- Secured and listed four new patents, two each for Acetadote® and Caldolor® respectively, further expanding
Cumberland's intellectual property position for these two brands. - Secured a new senior credit facility for up to
$20 million withSunTrust Bank . - Arranged
$2 million in new funding for research activities at Cumberland Emerging Technologies (CET).
"
Financial Results:
Net Revenue: For the year ended
For the three months ended
Operating Expenses: For the year ended
Total operating expenses for the three months ended
Adjusted Earnings: This performance measure represents net income attributable to common shareholders with adjustments for the impact of income taxes, depreciation, amortization, share based compensation expenses, and non-recurring expenses. A reconciliation to GAAP net income is provided in this release.
For the year ended
For the three months ended
Balance Sheet: As of
As of
Conference Call and Webcast
A conference call and live Internet webcast will be held on
About
About Acetadote® (acetylcysteine) Injection
Acetadote, administered intravenously within 8 to 10 hours after ingestion of a potentially hepatotoxic quantity of acetaminophen, is indicated to prevent or lessen hepatic injury. Used in the emergency department, Acetadote is approved in
About Caldolor® (ibuprofen) Injection
Caldolor is indicated for the management of mild to moderate pain and management of moderate to severe pain as an adjunct to opioid analgesics, as well as the reduction of fever in adults. It was the first
About Kristalose® (lactulose) Oral Solution
Kristalose is indicated for the treatment of acute and chronic constipation. It is a unique, proprietary, crystalline form of lactulose, with no restrictions on length of therapy or patient age. Initial dosing may produce flatulence and intestinal cramps, which are usually transient. Excessive dosage can lead to diarrhea with potential complications such as loss of fluids, hypokalemia and hypernatremia. Nausea and vomiting have been reported. Use with caution in diabetics. Kristalose is contraindicated in patients who require a low-galactose diet. Elderly, debilitated patients who receive lactulose for more than six months should have serum electrolytes (potassium, chloride, carbon dioxide) measured periodically. For full prescribing information, visit www.kristalose.com.
About Omeclamox®-Pak (omeprazole, clarithromycin, amoxicillin)
Omeprazole is an antisecretory drug, which works by decreasing the amount of acid the stomach produces. Clarithromycin and amoxicillin are antibacterial drugs, which inhibit the growth of bacteria allowing the stomach lining to heal. Omeclamox-Pak is contraindicated in patients with a history of hypersensitivity to omeprazole, any macrolide antibiotic or penicillin. The safety and effectiveness of Omeclamox-Pak in the pediatric population has not yet been established. Omeclamox-Pak was approved by the
About Vaprisol® (conivaptan hydrochloride) Injection
Vaprisol an intravenous treatment for hyponatremia used in the critical care setting. Hyponatremia is an electrolyte disturbance in which sodium ion concentration in blood plasma is lower than normal. This can be associated with a variety of critical care conditions including congestive heart failure, liver failure, kidney failure and pneumonia. The product is a vasopressin receptor antagonist that raises serum sodium levels and promotes free water secretion. Vaprisol was approved by the
Forward-Looking Statements
This press release contains forward-looking statements, which are subject to certain risks and reflect
| ||||||||
2014 |
2013 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
39,866,037 |
$ |
40,869,457 |
||||
Marketable securities |
14,841,418 |
14,019,761 |
||||||
Accounts receivable, net of allowances |
5,504,728 |
4,530,424 |
||||||
Inventories |
5,600,319 |
5,722,882 |
||||||
Prepaid and other current assets |
1,351,324 |
825,675 |
||||||
Deferred tax assets |
3,651,145 |
2,711,516 |
||||||
Total current assets |
70,814,971 |
68,679,715 |
||||||
Property and equipment, net |
651,030 |
880,647 |
||||||
Intangible assets, net |
21,568,541 |
15,498,819 |
||||||
Deferred tax assets |
578,592 |
1,208,891 |
||||||
Other assets |
1,791,980 |
1,345,666 |
||||||
Total assets |
$ |
95,405,114 |
$ |
87,613,738 |
||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
3,242,713 |
$ |
2,035,853 |
||||
Other current liabilities |
10,506,769 |
5,509,917 |
||||||
Total current liabilities |
13,749,482 |
7,545,770 |
||||||
Revolving line of credit |
— |
— |
||||||
Other long-term liabilities |
902,841 |
776,125 |
||||||
Total liabilities |
14,652,323 |
8,321,895 |
||||||
Commitments and contingencies |
||||||||
Equity: |
||||||||
Shareholders' equity: |
||||||||
Common stock - no par value; 100,000,000 shares authorized; 17,118,993 and 17,985,503 shares issued and outstanding as of |
61,942,410 |
63,073,941 |
||||||
Retained earnings |
18,818,263 |
16,394,540 |
||||||
Total shareholders' equity |
80,760,673 |
79,468,481 |
||||||
Noncontrolling interests |
(7,882) |
(176,638) |
||||||
Total equity |
80,752,791 |
79,291,843 |
||||||
Total liabilities and equity |
$ |
95,405,114 |
$ |
87,613,738 |
| ||||||||||||||||
Three months ended |
Years ended | |||||||||||||||
2014 |
2013 |
2014 |
2013 |
|||||||||||||
Revenues: |
||||||||||||||||
Net product revenue |
$ |
9,293,954 |
$ |
8,054,928 |
$ |
36,683,762 |
$ |
31,100,698 |
||||||||
Other revenue |
35,458 |
104,739 |
218,109 |
926,764 |
||||||||||||
Net revenues |
9,329,412 |
8,159,667 |
36,901,871 |
32,027,462 |
||||||||||||
Costs and expenses: |
||||||||||||||||
Cost of products sold |
1,360,909 |
2,145,011 |
5,053,165 |
5,439,422 |
||||||||||||
Selling and marketing |
3,536,236 |
3,761,552 |
14,902,202 |
14,387,745 |
||||||||||||
Research and development |
767,109 |
1,339,295 |
3,389,419 |
5,615,501 |
||||||||||||
General and administrative |
2,206,037 |
3,100,407 |
8,401,560 |
9,489,976 |
||||||||||||
Amortization |
512,983 |
285,479 |
1,596,689 |
896,156 |
||||||||||||
Total costs and expenses |
8,383,274 |
10,631,744 |
33,343,035 |
35,828,800 |
||||||||||||
Operating income (loss) |
946,138 |
(2,472,077) |
3,558,836 |
(3,801,338) |
||||||||||||
Interest income |
46,555 |
68,582 |
251,447 |
230,291 |
||||||||||||
Interest expense |
(15,716) |
(40,701) |
(67,074) |
(103,422) |
||||||||||||
Income (loss) before income taxes |
976,977 |
(2,444,196) |
3,743,209 |
(3,674,469) |
||||||||||||
Income tax (expense) benefit |
(328,414) |
932,801 |
(1,380,744) |
1,523,051 |
||||||||||||
Net income (loss) |
648,563 |
(1,511,395) |
2,362,465 |
(2,151,418) |
||||||||||||
Net loss at subsidiary attributable to noncontrolling interests |
20,350 |
11,032 |
61,258 |
46,804 |
||||||||||||
Net income (loss) attributable to common shareholders |
$ |
668,913 |
$ |
(1,500,363) |
$ |
2,423,723 |
$ |
(2,104,614) |
||||||||
Earnings (loss) per share attributable to common shareholders: |
||||||||||||||||
Basic |
$ |
0.04 |
$ |
(0.08) |
$ |
0.14 |
$ |
(0.11) |
||||||||
Diluted |
$ |
0.04 |
$ |
(0.08) |
$ |
0.14 |
$ |
(0.11) |
||||||||
Weighted-average common shares outstanding: |
||||||||||||||||
Basic |
17,281,502 |
18,072,805 |
17,617,765 |
18,332,997 |
||||||||||||
Diluted |
17,629,434 |
18,072,805 |
17,899,632 |
18,332,997 |
||||||||||||
Comprehensive income (loss) attributable to common shareholders |
668,913 |
(1,500,363) |
2,423,723 |
(2,104,614) |
||||||||||||
Net loss at subsidiary attributable to noncontrolling interests |
20,350 |
11,032 |
61,258 |
46,804 |
||||||||||||
Total comprehensive income (loss) |
$ |
648,563 |
$ |
(1,511,395) |
$ |
2,362,465 |
$ |
(2,151,418) |
||||||||
| |||||||||
2014 |
2013 |
||||||||
Cash flows from operating activities: |
|||||||||
Net income (loss) |
$ |
2,362,465 |
$ |
(2,151,418) |
|||||
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: |
|||||||||
Depreciation and amortization expense |
1,989,564 |
1,301,835 |
|||||||
Deferred tax benefit |
(309,330) |
(1,579,918) |
|||||||
Share-based compensation |
761,663 |
674,955 |
|||||||
Excess tax benefit derived from exercise of stock options |
(1,653,028) |
(48,024) |
|||||||
Noncash interest expense |
38,634 |
24,075 |
|||||||
Noncash investment (gains) losses |
(52,040) |
178,822 |
|||||||
Net changes in assets and liabilities affecting operating activities, net of effect of business combination: |
|||||||||
Accounts receivable |
(974,304) |
1,486,777 |
|||||||
Inventories |
1,532,563 |
495,473 |
|||||||
Prepaid, other current assets and other assets |
(1,011,365) |
117,021 |
|||||||
Accounts payable and other accrued liabilities |
3,846,482 |
58,855 |
|||||||
Other long-term liabilities |
162,127 |
187,673 |
|||||||
Net cash provided by operating activities |
6,693,431 |
746,126 |
|||||||
Cash flows from investing activities: |
|||||||||
Additions to property and equipment |
(163,258) |
(97,412) |
|||||||
Cash paid for acquisitions |
(2,000,000) |
— |
|||||||
Additions to intangible assets |
(3,101,565) |
(7,462,080) |
|||||||
Proceeds from sale of marketable securities |
3,437,645 |
6,859,061 |
|||||||
Purchases of marketable securities |
(4,207,262) |
(4,371,508) |
|||||||
Net cash used in investing activities |
(6,034,440) |
(5,071,939) |
|||||||
Cash flows from financing activities: |
|||||||||
Net repayments on line of credit |
— |
(4,359,951) |
|||||||
Repurchase of common shares |
(4,315,444) |
(4,800,908) |
|||||||
Sale of subsidiary shares to noncontrolling interest |
1,000,005 |
— |
|||||||
Exercise of stock options |
— |
(41,276) |
|||||||
Excess tax benefit derived from exercise of stock options |
1,653,028 |
48,024 |
|||||||
Net cash used in financing activities |
(1,662,411) |
(9,154,111) |
|||||||
Net decrease in cash and cash equivalents |
(1,003,420) |
(13,479,924) |
|||||||
Cash and cash equivalents, beginning of year |
40,869,457 |
54,349,381 |
|||||||
Cash and cash equivalents, end of year |
$ |
39,866,037 |
$ |
40,869,457 |
| |||||||||||||||||
Three months ended |
Three months ended | ||||||||||||||||
2014 |
2014 |
2013 |
2013 |
||||||||||||||
Earnings impact |
Earnings per share impact |
Earnings impact |
Earnings per share impact | ||||||||||||||
Net income (loss) attributable to common shareholders |
$ |
668,913 |
$ |
0.04 |
$ |
(1,500,363) |
$ |
(0.08) |
|||||||||
Less: Net loss at subsidiary attributable to noncontrolling interests |
20,350 |
— |
11,032 |
— |
|||||||||||||
Net income (loss) |
648,563 |
0.04 |
(1,511,395) |
(0.08) |
|||||||||||||
Adjustments to net income (loss) |
— |
||||||||||||||||
Income tax expense (benefit) |
328,414 |
0.02 |
(932,801) |
(0.05) |
|||||||||||||
Depreciation and amortization expense |
605,953 |
0.03 |
384,823 |
0.02 |
|||||||||||||
Share-based compensation expense |
219,545 |
0.01 |
194,149 |
0.01 |
|||||||||||||
Interest income |
(46,555) |
— |
(68,582) |
— |
|||||||||||||
Interest expense |
15,716 |
— |
40,701 |
— |
|||||||||||||
Adjusted Earnings and Adjusted Diluted Earnings Per Share |
$ |
1,771,636 |
$ |
0.10 |
$ |
(1,893,105) |
$ |
(0.10) |
|||||||||
Diluted weighted-average common shares outstanding: |
17,629,434 |
18,072,805 |
|||||||||||||||
Twelve months ended |
Twelve months ended | |||||||||||||||
2014 |
2014 |
2013 |
2013 |
|||||||||||||
Earnings impact |
Earnings per share impact |
Earnings impact |
Earnings per share impact | |||||||||||||
Net income (loss) attributable to common shareholders |
$ |
2,423,723 |
$ |
0.14 |
$ |
(2,104,614) |
$ |
(0.11) |
||||||||
Less: Net loss at subsidiary attributable to noncontrolling interests |
61,258 |
— |
46,804 |
— |
||||||||||||
Net income (loss) |
2,362,465 |
0.13 |
(2,151,418) |
(0.12) |
||||||||||||
Adjustments to net income (loss) |
||||||||||||||||
Income tax expense (benefit) |
1,380,744 |
0.08 |
(1,523,051) |
(0.08) |
||||||||||||
Depreciation and amortization expense |
1,989,564 |
0.11 |
1,301,835 |
0.07 |
||||||||||||
Share-based compensation expense |
761,663 |
0.04 |
674,955 |
0.04 |
||||||||||||
Interest income |
(251,447) |
(0.01) |
(230,291) |
(0.01) |
||||||||||||
Interest expense |
67,074 |
— |
103,422 |
0.01 |
||||||||||||
Adjusted Earnings and Adjusted Diluted Earnings Per Share |
$ |
6,310,063 |
$ |
0.35 |
$ |
(1,824,548) |
$ |
(0.10) |
||||||||
Diluted weighted-average common shares outstanding: |
17,899,632 |
18,332,997 |
The Company provided the above adjusted supplemental financial performance measures, which are considered "non-GAAP" financial measures under applicable
Because these supplemental financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety. A reconciliation of the supplemental financial measures to the most directly comparable GAAP financial measures is included in the tables accompanying this release.
The Company defines these supplemental financial measures as follows:
- Adjusted Earnings: net income attributable to common shareholders adjusted for the impact of income taxes, depreciation and amortization expense, share-based compensation expense and interest income and expense.
- Adjusted Diluted Earnings Per Share: Adjusted Earnings divided by diluted weighted-average common shares outstanding.
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