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Cumberland Pharmaceuticals Reports Second Quarter 2011 Financial Results
Net Revenue: For the three months ended
For the six months ended
Operating Expenses: Total operating expenses for the three months ended
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the three months ended
Net Income: Net income attributable to common shareholders for the three months ended
For the six months ended
Balance Sheet: As of
"We are very pleased with the Company's performance during the second quarter, having accomplished several key objectives for the year and delivering strong growth in revenue, income and cash flow," said
Based on its second quarter performance, Cumberland is raising its full year 2011 revenue guidance to
Company Highlights
Acetadote®
New Formulation
In
In
sNDA for Non-Acetaminophen Induced Acute Liver Failure
In the first quarter of 2010, Cumberland submitted an application to the
Cumberland has been in discussions with the
Caldolor®
In
In 2010, the Company focused its sales and marketing efforts primarily on securing formulary approval nationally for Caldolor. Early in the second quarter of 2011, Cumberland implemented a strategic shift to begin focusing on pull-through activities necessary to build volume of use and bring Caldolor to a larger population of patients in facilities stocking the product.
During the second quarter of 2011, Cumberland also progressed four clinical studies to further evaluate Caldolor in patients. Two of these trials are designed to support pediatric use, including a pediatric fever study to evaluate safety, efficacy and pharmacokinetics of Caldolor in hospitalized children as well as a pediatric pain study. Two new registry studies will gather additional data in adults, including a study evaluating Caldolor in treating pain and fever in a wide range of hospitalized patients and another evaluating the product for management of pain in surgical patients.
Hepatoren™
In
Ifetroban was initially developed extensively by a large pharmaceutical company for certain cardiovascular indications. The development program was eventually donated to
The
International Markets
During the second quarter, Cumberland executed agreements with partners for commercialization of Caldolor and Acetadote in
The application for regulatory approval of Caldolor in
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 June 30, | ||||
2011 | 2010 | |||
Net income attributable to common shareholders | $ 2,177,619 | $ 287,304 | ||
Income tax expense | 1,436,365 | 374,461 | ||
Depreciation & amortization | 264,995 | 232,344 | ||
Interest expense, net | 27,344 | 355,622 | ||
EBITDA | $ 3,906,323 | $ 1,249,731 | ||
Six Months Ended June 30, | ||||
2011 | 2010 | |||
Net income attributable to common shareholders | $ 2,898,779 | $ 610,882 | ||
Income tax expense | 1,959,949 | 586,198 | ||
Depreciation & amortization | 527,301 | 463,676 | ||
Interest expense, net | 200,478 | 640,895 | ||
EBITDA | $ 5,586,507 | $ 2,301,651 | ||
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 was 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 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 Form 10-K filed with the
CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) | ||||
June 30, | December 31, | |||
2011 | 2010 | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 69,832,030 | $ 65,893,970 | ||
Accounts receivable, net of allowances | 4,819,734 | 5,145,494 | ||
Inventories | 7,453,251 | 7,683,842 | ||
Other current assets | 2,238,864 | 2,315,536 | ||
Total current assets | 84,343,879 | 81,038,842 | ||
Property and equipment, net | 1,195,924 | 1,220,010 | ||
Intangible assets, net | 7,116,260 | 7,427,223 | ||
Other assets | 1,924,992 | 2,367,979 | ||
Total assets | $ 94,581,055 | $ 92,054,054 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Current portion of long-term debt | $ 3,999,999 | $ 2,666,668 | ||
Accounts payable | 2,302,058 | 2,124,654 | ||
Other current liabilities | 4,425,873 | 4,436,298 | ||
Total current liabilities | 10,727,930 | 9,227,620 | ||
Revolving line of credit | 1,825,951 | 1,825,951 | ||
Long-term debt, excluding current portion | - | 2,666,665 | ||
Other long-term obligations, excluding current portion | 602,099 | 618,343 | ||
Total liabilities | 13,155,980 | 14,338,579 | ||
Commitments and contingencies | ||||
Equity: | ||||
Shareholders' equity: | ||||
Common stock - no par value; 100,000,000 shares authorized; | ||||
20,400,085 and 20,338,461 shares issued and outstanding | ||||
as of June 30, 2011 and December 31, 2010, respectively | 71,609,043 | 70,778,874 | ||
Retained earnings | 9,897,585 | 6,998,806 | ||
Total shareholders' equity | 81,506,628 | 77,777,680 | ||
Noncontrolling interests | (81,553) | (62,205) | ||
Total equity | 81,425,075 | 77,715,475 | ||
Total liabilities and equity | $ 94,581,055 | $ 92,054,054 | ||
CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income (Unaudited) | ||||||||
Three months ended June 30, | Six months ended June 30, | |||||||
2011 | 2010 | 2011 | 2010 | |||||
Net revenues | $ 14,389,741 | $ 10,739,935 | $ 25,056,668 | $ 20,870,587 | ||||
Costs and expenses: | ||||||||
Cost of products sold | 1,283,160 | 863,725 | 2,070,098 | 1,723,013 | ||||
Selling and marketing | 5,904,444 | 5,848,123 | 11,193,028 | 11,455,635 | ||||
Research and development | 1,027,048 | 1,034,800 | 2,036,721 | 1,808,668 | ||||
General and administrative | 2,344,064 | 1,782,834 | 4,324,455 | 3,664,037 | ||||
Amortization of product license right | 171,726 | 171,726 | 343,453 | 343,452 | ||||
Other | 27,442 | 28,867 | 49,055 | 55,414 | ||||
Total costs and expenses | 10,757,884 | 9,730,075 | 20,016,810 | 19,050,219 | ||||
Operating income | 3,631,857 | 1,009,860 | 5,039,858 | 1,820,368 | ||||
Interest income | 52,260 | 50,334 | 95,169 | 111,013 | ||||
Interest expense | (79,604) | (405,956) | (295,647) | (751,908) | ||||
Net income before income taxes | 3,604,513 | 654,238 | 4,839,380 | 1,179,473 | ||||
Income tax expense | (1,436,365) | (374,461) | (1,959,949) | (586,198) | ||||
Net income | 2,168,148 | 279,777 | 2,879,431 | 593,275 | ||||
Net loss at subsidiary attributable to | ||||||||
noncontrolling interests | 9,471 | 7,527 | 19,348 | 17,607 | ||||
Net income attributable to | ||||||||
common shareholders | $ 2,177,619 | $ 287,304 | $ 2,898,779 | $ 610,882 | ||||
Earnings per share attributable to common shareholders | ||||||||
- basic | $ 0.11 | $ 0.01 | $ 0.14 | $ 0.03 | ||||
- diluted | $ 0.11 | $ 0.01 | $ 0.14 | $ 0.03 | ||||
Weighted-average shares outstanding | ||||||||
- basic | 20,471,621 | 20,445,560 | 20,458,842 | 20,340,000 | ||||
- diluted | 20,661,719 | 21,207,645 | 20,719,714 | 21,302,119 | ||||
CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||
Six Months Ended June 30, | |||||||
2011 | 2010 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ 2,879,431 | $ 593,275 | |||||
Adjustments to reconcile net income to net cash provided by | |||||||
operating activities: | |||||||
Depreciation and amortization expense | 527,301 | 463,676 | |||||
Non-employee equity compensation | 44,574 | 45,554 | |||||
Stock-based compensation - employee stock options | 315,513 | 318,139 | |||||
Excess tax benefit derived from exercise of stock options | (1,516,569) | (462,814) | |||||
Non-cash interest expense | 123,654 | 132,866 | |||||
Net changes in assets and liabilities affecting operating activities: | |||||||
Accounts receivable | 325,760 | 2,216,456 | |||||
Inventory | 230,591 | (3,144,216) | |||||
Other current assets and other assets | 704 | 349,777 | |||||
Accounts payable and other accrued liabilities | 2,009,529 | 337,995 | |||||
Other long-term obligations | (5,141) | (95,541) | |||||
Net cash provided by operating activities | 4,935,347 | 755,167 | |||||
Cash flows from investing activities: | |||||||
Additions to property and equipment | (105,838) | (126,315) | |||||
Additions to patents | (46,344) | (80,734) | |||||
Net cash used in investing activities | (152,182) | (207,049) | |||||
Cash flows from financing activities: | |||||||
Principal payments on note payable | (1,333,334) | (6,061,973) | |||||
Costs of financing for long-term debt and credit facility | - | (55,000) | |||||
Proceeds from exercise of stock options | 523,507 | 979,292 | |||||
Excess tax benefit derived from exercise of stock options | 1,516,569 | 462,814 | |||||
Payments made in connection with repurchase of common shares | (1,551,847) | (3,079,628) | |||||
Net cash used in financing activities | (845,105) | (7,754,495) | |||||
Net increase (decrease) in cash and cash equivalents | 3,938,060 | (7,206,377) | |||||
Cash and cash equivalents at beginning of period | 65,893,970 | 78,701,682 | |||||
Cash and cash equivalents at end of period | $ 69,832,030 | $ 71,495,305 | |||||
Supplemental disclosure of cash flow information: | |||||||
Non-cash investing and financing activities: | |||||||
Common shares repurchased during period but not paid | |||||||
as of the end of the period | - | 203,802 | |||||
Additions to property and equipment not paid as of | |||||||
the end of the period | 40,070 | - | |||||
SOURCE
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