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Cumberland Pharmaceuticals Reports Third Quarter 2014 Financial Results
SUMMARY FINANCIAL RESULTS: During the third quarter 2014, net revenues were
As of
SUMMARY QUARTER HIGHLIGHTS:
- Favorable Caldolor® clinical results were presented through a series of poster presentations at the American Anesthesiology 2014 Annual Meeting in
New Orleans, Louisiana and at theAmerican Academy of Pediatrics National Conference & Exhibition inSan Diego, California . - Kristalose® continued to experience a particularly strong year following the brand's new positioning in early 2014.
- Continued diversification of revenue mix that included contributions from our two new products.
"We have been working hard to return Cumberland to growth and profitability during 2014 and are pleased to see our progress continue in the third quarter," said
FINANCIAL RESULTS:
Net Revenue: For the three months ended
Net revenue by product for the three months ended
For the nine months ended
Net revenue by product for the nine months ended
Operating Expenses: Total operating expenses for the three months ended
For the nine months ended
Net Income: Net income attributable to common shareholders for the three months ended
For the nine months ended
Operating Cash Flow: Operating cash flows for the nine months ended
Balance Sheet: As of
QUARTER HIGHLIGHTS
Caldolor®
Caldolor Pediatric Presentation
Data from Cumberland's Caldolor pediatric fever studies reflect that treatment with intravenous ibuprofen was superior in reducing temperatures in hospitalized, febrile pediatric patients when compared to treatment with oral or suppository acetaminophen. This data was presented as part of the
The studies showed that when given intravenous ibuprofen hospitalized children experienced significant reduction in temperature compared to those receiving acetaminophen (oral or suppository). Both single and multiple does of IV ibuprofen were well tolerated and no significant adverse events were noted.
A poster presentation entitled "A Multi-Center, Randomized, Open-label, Parallel, Active-Comparator Trial to Determine the Efficacy and Safety of Intravenous Ibuprofen in Pediatric children" was also presented twice at this
Caldolor Laparoscopic Cholecystectomy Presentation
Data from this Caldolor study reflects that treatment with preoperative intravenous ibuprofen improved overall quality of recovery in patients undergoing laparoscopic cholecystectomy surgery. These results were presented as a poster presentation entitled "The Effect of
The investigator study was completed at the
Cumberland Emerging Technologies
During the third quarter of 2014,
Conference Call and Webcast
A conference call and live Internet webcast will be held on
About
About Acetadote
Acetadote is an antidote for acetaminophen overdose indicated to prevent or lessen hepatic injury after ingestion of a potentially hepatotoxic quantity of acetaminophen. 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 does not require dilution and has a well-defined daily dose of 10 mg, 20 mg, or 40 mg. 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) | |||||||
|
| ||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
39,644,081 |
$ |
40,869,457 |
|||
Marketable securities |
14,634,302 |
14,019,761 |
|||||
Accounts receivable, net of allowances |
5,296,114 |
4,530,424 |
|||||
Inventories |
6,130,722 |
5,722,882 |
|||||
Other current assets |
4,444,753 |
3,537,191 |
|||||
Total current assets |
70,149,972 |
68,679,715 |
|||||
Property and equipment, net |
731,129 |
880,647 |
|||||
Intangible assets, net |
19,997,795 |
15,498,819 |
|||||
Other assets |
3,025,236 |
2,554,557 |
|||||
Total assets |
$ |
93,904,132 |
$ |
87,613,738 |
|||
LIABILITIES AND EQUITY |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
3,205,233 |
$ |
2,035,853 |
|||
Other current liabilities |
8,950,250 |
5,509,917 |
|||||
Total current liabilities |
12,155,483 |
7,545,770 |
|||||
Revolving line of credit |
— |
— |
|||||
Other long-term liabilities |
863,356 |
776,125 |
|||||
Total liabilities |
13,018,839 |
8,321,895 |
|||||
Commitments and contingencies |
|||||||
Equity: |
|||||||
Shareholders' equity: |
|||||||
Common stock—no par value; 100,000,000 shares authorized; 17,423,825 and 17,985,503 shares issued and outstanding as of |
62,953,489 |
63,073,941 |
|||||
Retained earnings |
18,149,350 |
16,394,540 |
|||||
Total shareholders' equity |
81,102,839 |
79,468,481 |
|||||
Noncontrolling interests |
(217,546) |
(176,638) |
|||||
Total equity |
80,885,293 |
79,291,843 |
|||||
Total liabilities and equity |
$ |
93,904,132 |
$ |
87,613,738 |
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) | |||||||||||||||
Three months ended |
Nine months ended | ||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
Net revenues |
$ |
9,729,047 |
$ |
6,528,575 |
$ |
27,572,459 |
$ |
23,867,795 |
|||||||
Costs and expenses: |
|||||||||||||||
Cost of products sold |
1,339,723 |
1,030,943 |
3,692,256 |
3,294,411 |
|||||||||||
Selling and marketing |
3,821,953 |
3,410,205 |
11,365,966 |
10,626,193 |
|||||||||||
Research and development |
934,783 |
1,440,584 |
2,622,310 |
4,276,206 |
|||||||||||
General and administrative |
2,158,057 |
1,958,629 |
6,195,523 |
6,389,569 |
|||||||||||
Amortization |
485,493 |
202,982 |
1,083,706 |
610,677 |
|||||||||||
Total costs and expenses |
8,740,009 |
8,043,343 |
24,959,761 |
25,197,056 |
|||||||||||
Operating income (loss) |
989,038 |
(1,514,768) |
2,612,698 |
(1,329,261) |
|||||||||||
Interest income |
108,005 |
20,350 |
204,892 |
161,709 |
|||||||||||
Interest expense |
(26,877) |
(24,286) |
(51,358) |
(62,721) |
|||||||||||
Income (loss) before income taxes |
1,070,166 |
(1,518,704) |
2,766,232 |
(1,230,273) |
|||||||||||
Income tax (expense) benefit |
(340,982) |
686,209 |
(1,052,330) |
590,250 |
|||||||||||
Net income (loss) |
729,184 |
(832,495) |
1,713,902 |
(640,023) |
|||||||||||
Net loss at subsidiary attributable to noncontrolling interests |
16,736 |
12,553 |
40,908 |
35,772 |
|||||||||||
Net income (loss) attributable to common shareholders |
$ |
745,920 |
$ |
(819,942) |
$ |
1,754,810 |
$ |
(604,251) |
|||||||
Earnings (loss) per share attributable to common shareholders |
|||||||||||||||
- basic |
$ |
0.04 |
$ |
(0.04) |
$ |
0.10 |
$ |
(0.03) |
|||||||
- diluted |
$ |
0.04 |
$ |
(0.04) |
$ |
0.10 |
$ |
(0.03) |
|||||||
Weighted-average shares outstanding |
|||||||||||||||
- basic |
17,544,905 |
18,233,407 |
17,730,715 |
18,420,465 |
|||||||||||
- diluted |
17,848,110 |
18,233,407 |
17,990,561 |
18,420,465 |
|||||||||||
Total comprehensive income (loss) |
$ |
745,920 |
$ |
(819,942) |
$ |
1,754,810 |
$ |
(604,251) |
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||
Nine months ended | |||||||
2014 |
2013 |
||||||
Cash flows from operating activities: |
|||||||
Net income (loss) |
$ |
1,713,902 |
$ |
(640,023) |
|||
Adjustments to reconcile net income to net cash provided by operating |
|||||||
Depreciation and amortization expense |
1,383,611 |
917,012 |
|||||
Deferred tax benefit |
(36,255) |
(76,332) |
|||||
Share-based compensation |
542,118 |
480,806 |
|||||
Excess tax (benefit) expense derived from exercise of stock options |
(1,077,099) |
511,908 |
|||||
Noncash interest expense |
12,038 |
12,038 |
|||||
Noncash investment losses |
138,627 |
135,296 |
|||||
Net changes in assets and liabilities affecting operating activities, net of |
|||||||
Accounts receivable |
(765,689) |
1,822,786 |
|||||
Inventory |
1,002,160 |
782,742 |
|||||
Other current assets and other assets |
(1,354,793) |
(177,754) |
|||||
Accounts payable and other current liabilities |
2,293,818 |
(2,942,455) |
|||||
Other long-term liabilities |
105,416 |
112,737 |
|||||
Net cash provided by operating activities |
3,957,854 |
938,761 |
|||||
Cash flows from investing activities: |
|||||||
Additions to property and equipment |
(150,387) |
(92,435) |
|||||
Purchases of marketable securities |
(3,754,903) |
(4,371,508) |
|||||
Proceeds from sale of marketable securities |
3,001,735 |
1,758,906 |
|||||
Cash paid for acquisitions |
(2,000,000) |
— |
|||||
Additions to intangible assets |
(1,617,874) |
(2,600,266) |
|||||
Net cash used in investment activities |
(4,521,429) |
(5,305,303) |
|||||
Cash flows from financing activities: |
|||||||
Net borrowings on line of credit |
— |
500,000 |
|||||
Exercise of stock options |
— |
(41,292) |
|||||
Excess tax benefit (expense) derived from exercise of stock options |
1,077,099 |
(511,908) |
|||||
Sale of subsidiary shares to noncontrolling interest |
1,000,005 |
— |
|||||
Repurchase of common shares |
(2,738,905) |
(3,918,436) |
|||||
Net cash used in financing activities |
(661,801) |
(3,971,636) |
|||||
Net decrease in cash and cash equivalents |
(1,225,376) |
(8,338,178) |
|||||
Cash and cash equivalents at beginning of period |
40,869,457 |
54,349,381 |
|||||
Cash and cash equivalents at end of period |
$ |
39,644,081 |
$ |
46,011,203 |
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SOURCE
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