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Cumberland Pharmaceuticals Reports 2013 Fourth Quarter And Annual Financial Results
Net Revenue: For the three months ended December 31, 2013, net revenue was
For the year ended December 31, 2013, net revenues were
Operating Expenses: Total operating expenses for the three months ended December 31, 2013 were
For the year ended December 31, 2013, total operating expenses were approximately
Net (Loss) Income: Net (loss) income attributable to common shareholders for the three months ended December 31, 2013 was a net loss of
Net (loss) income attributable to common shareholders for the year ended December 31, 2013 was a net loss of
Balance Sheet: As of December 31, 2013, cash and marketable securities were
"The Company encountered new challenges in 2013 and I am pleased to report that our team rose to the occasion," said
Product Highlights
Vaprisol®
Cumberland recently announced the acquisition of Vaprisol from
The product is a vasopressin receptor antagonist that raises serum sodium levels and promotes free water secretion. Vaprisol does not require dilution and has a well-defined daily dose of 10 mg, 20 mg, or 40 mg.
Under the terms of the deal, Cumberland will assume full responsibility for the product including its marketing, distribution and manufacture. Cumberland will promote Vaprisol across
Omeclamox®-Pak
Cumberland announced during the fourth quarter, an agreement with
Under the terms of the agreement, Cumberland will promote the product to gastroenterologists across
Conference Call and Webcast
A conference call and live Internet webcast will be held on
About
About Acetadote
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
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
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 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
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 Cumberland's current views on future events based on what it believes are reasonable assumptions. No assurance can be given that these events will occur. As with any business, all phases of Cumberland's operations are subject to factors outside of its control, and any one or combination of these factors could materially affect Cumberland's results of operations. These factors include market conditions, competition, an inability of manufacturers to produce Cumberland's products on a timely basis or failure of manufacturers to comply with regulations applicable to pharmaceutical manufacturers, maintaining an effective sales and marketing infrastructure and other factors discussed in the Company's most recent Form 10-K and subsequent 10-Q's as filed with the
| ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
| ||||||||
2013 |
2012 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
40,869,457 |
$ |
54,349,381 |
||||
Marketable securities |
14,019,761 |
16,686,136 |
||||||
Accounts receivable, net of allowances |
4,530,424 |
6,017,201 |
||||||
Inventories |
5,722,882 |
6,218,355 |
||||||
Prepaid and other current assets |
825,675 |
1,671,091 |
||||||
Deferred tax assets |
2,711,516 |
2,290,078 |
||||||
Total current assets |
68,679,715 |
87,232,242 |
||||||
Property and equipment, net |
880,647 |
1,188,914 |
||||||
Intangible assets, net |
15,498,819 |
9,476,798 |
||||||
Deferred tax assets |
1,208,891 |
50,411 |
||||||
Other assets |
1,345,666 |
645,366 |
||||||
Total assets |
$ |
87,613,738 |
$ |
98,593,731 |
||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
2,035,853 |
$ |
2,790,554 |
||||
Other current liabilities |
5,509,917 |
5,264,806 |
||||||
Total current liabilities |
7,545,770 |
8,055,360 |
||||||
Revolving line of credit |
— |
4,359,951 |
||||||
Other long-term liabilities |
776,125 |
611,933 |
||||||
Total liabilities |
8,321,895 |
13,027,244 |
||||||
Commitments and contingencies |
||||||||
Equity: |
||||||||
Shareholders' equity: |
||||||||
Common stock - no par value; 100,000,000 shares authorized; 17,985,503 and 18,937,107 shares issued and outstanding as of December 31, 2013 and 2012, respectively |
63,073,941 |
67,197,167 |
||||||
Retained earnings |
16,394,540 |
18,499,154 |
||||||
Total shareholders' equity |
79,468,481 |
85,696,321 |
||||||
Noncontrolling interests |
(176,638) |
(129,834) |
||||||
Total equity |
79,291,843 |
85,566,487 |
||||||
Total liabilities and equity |
$ |
87,613,738 |
$ |
98,593,731 |
| ||||||||||||||||
Consolidated Statements of Operations and Comprehensive (Loss) Income | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended |
Years ended | |||||||||||||||
2013 |
2012 |
2013 |
2012 | |||||||||||||
Revenues: |
||||||||||||||||
Net product revenue |
$ |
8,054,928 |
$ |
13,637,333 |
$ |
31,100,698 |
$ |
47,944,031 |
||||||||
Other revenue |
104,739 |
59,033 |
926,764 |
907,206 |
||||||||||||
Net revenues |
8,159,667 |
13,696,366 |
32,027,462 |
48,851,237 |
||||||||||||
Costs and expenses: |
||||||||||||||||
Cost of products sold |
2,145,011 |
2,172,762 |
5,439,422 |
5,046,179 |
||||||||||||
Selling and marketing |
3,761,552 |
4,942,425 |
14,387,745 |
20,329,493 |
||||||||||||
Research and development |
1,339,295 |
441,215 |
5,615,501 |
5,095,172 |
||||||||||||
General and administrative |
3,100,407 |
2,752,567 |
9,489,976 |
9,055,959 |
||||||||||||
Amortization |
285,479 |
134,404 |
896,156 |
506,332 |
||||||||||||
Total costs and expenses |
10,631,744 |
10,443,373 |
35,828,800 |
40,033,135 |
||||||||||||
Operating (loss) income |
(2,472,077) |
3,252,993 |
(3,801,338) |
8,818,102 |
||||||||||||
Interest income |
68,582 |
48,791 |
230,291 |
304,865 |
||||||||||||
Interest expense |
(40,701) |
(15,616) |
(103,422) |
(71,985) |
||||||||||||
(Loss) income before income taxes |
(2,444,196) |
3,286,168 |
(3,674,469) |
9,050,982 |
||||||||||||
Income tax benefit (expense) |
932,801 |
(1,492,213) |
1,523,051 |
(3,244,776) |
||||||||||||
Net (loss) income |
(1,511,395) |
1,793,955 |
(2,151,418) |
5,806,206 |
||||||||||||
Net loss at subsidiary attributable to noncontrolling interests |
11,032 |
11,545 |
46,804 |
36,286 |
||||||||||||
Net (loss) income attributable to common shareholders |
$ |
(1,500,363) |
$ |
1,805,500 |
$ |
(2,104,614) |
$ |
5,842,492 |
||||||||
Earnings (loss) per share attributable to common shareholders: |
||||||||||||||||
Basic |
$ |
(0.08) |
$ |
0.09 |
$ |
(0.11) |
$ |
0.30 |
||||||||
Diluted |
$ |
(0.08) |
$ |
0.09 |
$ |
(0.11) |
$ |
0.30 |
||||||||
Weighted-average common shares outstanding: |
||||||||||||||||
Basic |
18,072,805 |
19,048,945 |
18,332,997 |
19,564,625 |
||||||||||||
Diluted |
18,072,805 |
19,245,047 |
18,332,997 |
19,787,537 |
||||||||||||
Comprehensive (loss) income |
$ |
(1,511,395) |
$ |
1,793,955 |
$ |
(2,151,418) |
$ |
5,806,206 |
||||||||
|
|||||||||
Condensed Consolidated Statements of Cash Flows |
|||||||||
(Unaudited) |
|||||||||
Years ended |
|||||||||
2013 |
2012 |
||||||||
Cash flows from operating activities: |
|||||||||
Net (loss) income |
$ |
(2,151,418) |
$ |
5,806,206 |
|||||
Adjustments to reconcile net (loss) income to net cash flows provided by operating activities: |
|||||||||
Depreciation and amortization expense |
1,301,835 |
901,649 |
|||||||
Deferred tax benefit |
(1,579,918) |
(829,846) |
|||||||
Share-based compensation |
674,955 |
636,528 |
|||||||
Excess tax benefit derived from exercise of stock options |
(48,024) |
(3,760,766) |
|||||||
Noncash interest expense |
24,075 |
24,075 |
|||||||
Noncash investment losses (gains) |
178,822 |
(45,814) |
|||||||
Net changes in assets and liabilities affecting operating activities: |
|||||||||
Accounts receivable |
1,486,777 |
1,065,689 |
|||||||
Inventories |
495,473 |
(443,661) |
|||||||
Prepaid, other current assets and other assets |
117,021 |
(648,941) |
|||||||
Accounts payable and other accrued liabilities |
58,855 |
4,373,276 |
|||||||
Other long-term liabilities |
187,673 |
56,787 |
|||||||
Net cash provided by operating activities |
746,126 |
7,135,182 |
|||||||
Cash flows from investing activities: |
|||||||||
Additions to property and equipment |
(97,412) |
(464,893) |
|||||||
Additions to intangible assets |
(7,462,080) |
(2,071,926) |
|||||||
Proceeds from sale of marketable securities |
6,859,061 |
5,220,480 |
|||||||
Purchases of marketable securities |
(4,371,508) |
(21,860,802) |
|||||||
Net cash used in investing activities |
(5,071,939) |
(19,177,141) |
|||||||
Cash flows from financing activities: |
|||||||||
Net repayments on line of credit |
(4,359,951) |
(500,000) |
|||||||
Repurchase of common shares |
(4,800,908) |
(8,086,594) |
|||||||
Exercise of stock options |
(41,276) |
618,022 |
|||||||
Excess tax benefit derived from exercise of stock options |
48,024 |
3,760,766 |
|||||||
Net cash used in financing activities |
(9,154,111) |
(4,207,806) |
|||||||
Net decrease in cash and cash equivalents |
(13,479,924) |
(16,249,765) |
|||||||
Cash and cash equivalents, beginning of year |
54,349,381 |
70,599,146 |
|||||||
Cash and cash equivalents, end of year |
$ |
40,869,457 |
$ |
54,349,381 |
SOURCE
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