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Cumberland Pharmaceuticals Reports Fourth Quarter and Full Year 2010 Financial Results
Net Revenue: For the three months ended
For the year ended
Operating Expenses: Total operating expenses for the three months ended
For the year ended
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was
EBITDA was
Net Income: Net income attributable to common shareholders for the fourth quarter was
Net income attributable to common shareholders for the year ended
Balance Sheet: As of
"We are pleased to have delivered a strong fourth quarter and to have exceeded our 2010 revenue guidance," said
Cumberland is introducing full year revenue guidance for 2011. The Company expects to see net revenue of
2010 Highlights and Recent Developments
Caldolor®
In
In 2010, the Company focused its sales and marketing efforts primarily on securing formulary approval nationally for Caldolor. As of
Caldolor Approved for Marketing in
In
License Agreement for Caldolor in
In
Caldolor Approved for Compassionate Use in
In
Acetadote®
Launch of Acetadote in
In
FDA Approves New Formulation of Acetadote
In
Supplemental New Drug Application for Acetadote
In
In
Other Developments
Amendment of Senior Credit Facility
In
Share Repurchase Program
In
Federal Grant Funding
As part of the Company's ongoing initiative to pursue grant funding to support research and development activities, Cumberland applied for and received funding for several of its development programs in 2010. In November, Cumberland was awarded a total of
Supplemental Financial Information
The following table presents a reconciliation of Cumberland's net income to EBITDA. The Company defines EBITDA as net income plus interest, income tax, depreciation and amortization, and presents these measures to assist investors in evaluating Cumberland's operating performance and comparing the Company's results with those of other companies. EBITDA should not be considered in isolation from or as a substitute for net income.
Three Months Ended December 31, |
|||||
2010 |
2009 |
||||
Net income |
$ 832,140 |
$ 283,201 |
|||
Income tax expense |
1,322,081 |
104,836 |
|||
Depreciation & amortization |
254,711 |
210,985 |
|||
Interest expense, net |
83,301 |
305,398 |
|||
EBITDA |
$ 2,492,233 |
$ 904,420 |
|||
Year ended December 31, |
|||||
2010 |
2009 |
||||
Net income |
$ 2,427,011 |
$ 3,058,879 |
|||
Income tax expense |
2,851,420 |
2,024,192 |
|||
Depreciation & amortization |
978,398 |
816,499 |
|||
Interest expense, net |
1,223,316 |
693,564 |
|||
EBITDA |
$ 7,480,145 |
$ 6,593,134 |
|||
Conference Call and Webcast
A conference call and live Internet webcast will be held on
About
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 is the first
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 the only injectable product approved in
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.
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 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 a 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 Form 10-K filed with the
CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets December 31, 2010 and 2009 |
||||||||||||||
ASSETS |
2010 |
2009 |
||||||||||||
Current assets: |
||||||||||||||
Cash and cash equivalents |
$ 65,893,970 |
$ 78,701,682 |
||||||||||||
Accounts receivable, net of allowances |
5,145,494 |
6,176,585 |
||||||||||||
Inventories |
7,683,842 |
4,822,873 |
||||||||||||
Prepaid and other current assets |
1,336,765 |
2,746,259 |
||||||||||||
Deferred tax assets |
978,771 |
726,196 |
||||||||||||
Total current assets |
81,038,842 |
93,173,595 |
||||||||||||
Property and equipment, net |
1,220,010 |
918,412 |
||||||||||||
Intangible assets, net |
7,427,223 |
7,956,009 |
||||||||||||
Deferred tax assets |
2,265,192 |
1,306,514 |
||||||||||||
Other assets |
102,787 |
369,790 |
||||||||||||
Total assets |
$ 92,054,054 |
$ 103,724,320 |
||||||||||||
LIABILITIES AND EQUITY |
||||||||||||||
Current liabilities: |
||||||||||||||
Current portion of long-term debt |
$ 2,666,668 |
$ 9,061,973 |
||||||||||||
Current portion of other long-term obligations |
24,692 |
144,828 |
||||||||||||
Accounts payable |
2,124,654 |
5,632,796 |
||||||||||||
Other accrued liabilities |
4,411,606 |
3,784,777 |
||||||||||||
Total current liabilities |
9,227,620 |
18,624,374 |
||||||||||||
Revolving line of credit |
1,825,951 |
1,825,951 |
||||||||||||
Long-term debt, excluding current portion |
2,666,665 |
8,938,027 |
||||||||||||
Other long-term obligations, excluding current portion |
618,343 |
184,632 |
||||||||||||
Total liabilities |
14,338,579 |
29,572,984 |
||||||||||||
Commitments and contingencies |
||||||||||||||
Redeemable common stock |
- |
1,930,000 |
||||||||||||
Equity: |
||||||||||||||
Shareholders' equity: |
||||||||||||||
Common stock — no par value; 100,000,000 shares authorized; 20,338,461 and 20,180,486 (1) shares issued and outstanding as of December 31, 2010 and 2009, respectively |
70,778,874 |
67,711,746 |
||||||||||||
Retained earnings |
6,998,806 |
4,542,126 |
||||||||||||
Total shareholders' equity |
77,777,680 |
72,253,872 |
||||||||||||
Noncontrolling interests |
(62,205) |
(32,536) |
||||||||||||
Total equity |
77,715,475 |
72,221,336 |
||||||||||||
Total liabilities and equity |
$ 92,054,054 |
$ 103,724,320 |
||||||||||||
(1) Number of shares issued and outstanding represents total shares of common stock regardless of classification on the consolidated balance sheet. The number of shares of redeemable common stock as of December 31, 2009 was 142,016. |
||||||||||||||
CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income Three Months and Years ended December 31, 2010, 2009 |
||||||||
Three months ended December 31, |
Year ended December 31, |
|||||||
2010 |
2009 |
2010 |
2009 |
|||||
Net revenues |
$ 12,814,914 |
$ 10,714,306 |
$ 45,876,371 |
$ 43,537,278 |
||||
Costs and expenses: |
||||||||
Cost of products sold |
954,199 |
865,178 |
3,586,646 |
4,136,541 |
||||
Selling and marketing |
5,526,822 |
5,582,278 |
22,674,505 |
20,194,074 |
||||
Research and development |
1,379,862 |
951,559 |
4,327,485 |
4,993,278 |
||||
General and administrative |
2,519,210 |
2,424,145 |
7,990,222 |
7,643,070 |
||||
Amortization of product |
||||||||
license right |
171,727 |
171,726 |
686,911 |
686,904 |
||||
Other |
25,572 |
25,985 |
108,855 |
106,776 |
||||
Total costs and expenses |
10,577,392 |
10,020,871 |
39,374,624 |
37,760,643 |
||||
Operating income |
2,237,522 |
693,435 |
6,501,747 |
5,776,635 |
||||
Interest income |
40,519 |
37,322 |
200,207 |
79,363 |
||||
Interest expense |
(123,820) |
(342,720) |
(1,423,523) |
(772,927) |
||||
Income before income taxes |
2,154,221 |
388,037 |
5,278,431 |
5,083,071 |
||||
Income tax expense |
(1,322,081) |
(104,836) |
(2,851,420) |
(2,024,192) |
||||
Net income |
832,140 |
283,201 |
2,427,011 |
3,058,879 |
||||
Net loss at subsidiary attributable to |
||||||||
noncontrolling interests |
5,414 |
6,116 |
29,669 |
32,536 |
||||
Net income attributable to |
||||||||
common shareholders |
$ 837,554 |
$ 289,317 |
$ 2,456,680 |
$ 3,091,415 |
||||
Earnings per share attributable to common shareholders |
||||||||
- basic |
$ 0.04 |
$ 0.01 |
$ 0.12 |
$ 0.22 |
||||
- diluted |
$ 0.04 |
$ 0.01 |
$ 0.12 |
$ 0.17 |
||||
Weighted-average shares outstanding |
||||||||
- basic |
20,328,058 |
20,139,020 |
20,333,932 |
14,199,479 |
||||
- diluted |
20,827,084 |
21,456,162 |
21,058,577 |
18,234,171 |
||||
CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows Years ended December 31, 2010 and 2009 |
|||||||||||
2010 |
2009 |
||||||||||
Cash flows from operating activities: |
|||||||||||
Net income |
$ 2,427,011 |
$ 3,058,879 |
|||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||||
Gain on early extinguishment of other long-term obligations |
- |
- |
|||||||||
Depreciation and amortization expense |
978,398 |
816,499 |
|||||||||
Deferred tax (benefit) expense |
(332,349) |
(525,467) |
|||||||||
Nonemployee stock granted for services received |
37,121 |
210,740 |
|||||||||
Nonemployee stock option grant expense |
43,101 |
845,661 |
|||||||||
Stock-based compensation — employee stock options |
688,408 |
606,395 |
|||||||||
Excess tax benefit derived from exercise of stock options |
(3,874,966) |
(3,968,894) |
|||||||||
Noncash interest expense |
352,484 |
128,800 |
|||||||||
Net changes in assets and liabilities affecting operating activities: |
|||||||||||
Accounts receivable |
1,031,091 |
(3,047,238) |
|||||||||
Inventory |
(2,860,969) |
(3,060,097) |
|||||||||
Prepaid, other current assets and other assets |
1,342,032 |
(721,464) |
|||||||||
Accounts payable and other accrued liabilities |
201,725 |
6,572,098 |
|||||||||
Other long-term obligations |
313,575 |
(510,942) |
|||||||||
Net cash provided by operating activities |
346,662 |
404,970 |
|||||||||
Cash flows from investing activities: |
|||||||||||
Additions to property and equipment |
(577,159) |
(601,802) |
|||||||||
Additions to trademarks and patents |
(191,483) |
(110,541) |
|||||||||
Net cash used in investing activities |
(768,642) |
(712,343) |
|||||||||
Cash flows from financing activities: |
|||||||||||
Proceeds from initial public offering of common stock |
- |
85,000,000 |
|||||||||
Costs of initial public offering |
- |
(7,479,011) |
|||||||||
Proceeds from borrowings on long-term debt |
- |
18,000,000 |
|||||||||
Principal payments on note payable |
(12,666,667) |
(5,000,000) |
|||||||||
Net borrowings on line of credit |
- |
- |
|||||||||
Payment of other long-term obligations |
- |
- |
|||||||||
Costs of financing for long-term debt and credit facility |
(110,000) |
(189,660) |
|||||||||
Payments made in connection with repurchase of common shares |
(4,846,791) |
(27,295,808) |
|||||||||
Proceeds from exercise of stock options |
1,362,760 |
175,089 |
|||||||||
Excess tax benefit derived from exercise of stock options |
3,874,966 |
3,968,894 |
|||||||||
Net cash (used in) provided by financing activities |
(12,385,732) |
67,179,504 |
|||||||||
Net (decrease) increase in cash and cash equivalents |
(12,807,712) |
66,872,131 |
|||||||||
Cash and cash equivalents, beginning of year |
78,701,682 |
11,829,551 |
|||||||||
Cash and cash equivalents, end of year |
$ 65,893,970 |
$ 78,701,682 |
|||||||||
Supplemental disclosure of cash flow information: |
|||||||||||
Cash paid during the year for: |
|||||||||||
Interest |
$ 814,373 |
$ 677,387 |
|||||||||
Income taxes |
52,136 |
196,187 |
|||||||||
Noncash investing and financing activities: |
|||||||||||
Reclass of redeemable common stock to (from) equity |
1,930,000 |
(1,930,000) |
|||||||||
Deferred financing costs |
- |
335,075 |
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SOURCE
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