This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Lannett Reports Fiscal 2011 Fourth Quarter, Full-Year Financial Results

Conference Call Information and Forward-Looking Statements

Later today, the company will host a conference call at 4:30 p.m. ET to review its results of operations for the 2011 fiscal fourth quarter and full year ended June 30, 2011. The conference call will be available to interested parties by dialing 800-447-0521 from the U.S. or Canada, or 847-413-3238 from international locations, passcode 30645707. The conference call will also be available through a live audio Internet broadcast at www.lannett.com. The call will be archived and accessible at this site for at least three months.

Discussion during the conference call may include forward-looking statements regarding such topics as, but not limited to, the company’s financial status and performance and regulatory and operational developments, and any comments the company may make about its future plans or prospects in response to questions from participants on the conference call.

About Lannett Company, Inc.:

Lannett Company, founded in 1942, develops, manufactures, packages, markets and distributes generic pharmaceutical products for a wide range of indications. For more information, visit the company’s website at www.lannett.com.

This news release contains certain statements of a forward-looking nature relating to future events or future business performance. Any such statements, including, but not limited to, the expected product approvals, including the company’s New Drug Application for Morphine Sulfate Oral Solution, whether expressed or implied, are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated due to a number of factors which include, but are not limited to, the difficulty in predicting the timing or outcome of FDA or other regulatory approvals or actions, the ability to successfully commercialize products upon approval, Lannett’s estimated or anticipated future financial results, future inventory levels, future competition or pricing, future levels of operating expenses, product development efforts or performance, and other risk factors discussed in the company’s Form 10-K and other documents filed with the Securities and Exchange Commission from time to time. These forward-looking statements represent the company's judgment as of the date of this news release. The company disclaims any intent or obligation to update these forward-looking statements.

FINANCIAL TABLES FOLLOW

 
LANNETT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
         
 
Three months ended Fiscal Year ended
June 30, June 30,
  2011     2010     2011     2010  
 
Net sales $ 25,507,465 $ 33,760,023 $ 106,835,132 $ 125,177,949
Cost of sales 21,231,119 21,795,016 81,898,997 80,890,575
Amortization of intangible assets 489,770 448,667 1,875,662 1,794,667
Product royalties   31,140     185,011     (259,240 )   1,152,900  
 
Gross profit 3,755,436 11,331,329 23,319,713 41,339,807
 
Research and development expenses 3,029,750 2,141,295 8,587,046 11,251,421
Selling, general, and administrative expenses 4,156,640 5,170,175 15,911,702 17,375,320
Gain on investments (149,225 ) (1,623 ) (205,781 ) (1,623 )
Loss (gain) on sale of assets   5,396     (295,701 )   21,695     (315,330 )
 
Operating (loss) income   (3,287,125 )   4,317,183     (994,949 )   13,030,019  
 
Other income (expense):
Grant income 410,000 - 410,000 -
Foreign currency gain 1,620 1,837 7,114 4,595
Interest and dividend income 51,134 12,877 90,986 62,328
Interest expense   (39,637 )   (71,838 )   (214,519 )   (275,870 )
  423,117     (57,124 )   293,581     (208,947 )
 
(Loss) income before income tax (benefit) expense (2,864,008 ) 4,260,059 (701,368 ) 12,821,072
Income tax (benefit) expense   (1,016,136 )   1,288,071     (461,568 )   4,813,044  
Net (loss) income (1,847,872 ) 2,971,988 (239,800 ) 8,008,028
Less net income attributable to noncontrolling interest   (16,560 )   (155,737 )   (37,100 )   (186,961 )
 
Net (loss) income attributable to Lannett Company, Inc. $ (1,864,432 ) $ 2,816,251   $ (276,900 ) $ 7,821,067  
 
(Loss) earnings per common share - Lannett Company, Inc.:
Basic $ (0.07 ) $ 0.11 $ (0.01 ) $ 0.32
Diluted $ (0.07 ) $ 0.11 $ (0.01 ) $ 0.31
 
Weighted average number of shares outstanding:
Basic 28,393,491 24,880,253 26,758,552 24,743,902
Diluted 28,393,491 25,261,703 26,758,552 25,199,373
 
LANNETT COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
  (Unaudited)    
June 30, 2011 June 30, 2010
 

ASSETS

Current Assets
Cash and cash equivalents $ 5,276,735 $ 21,895,648
Investment securities 19,382,079 604,464
Trade accounts receivable (net of allowance of $123,573 and $123,192, respectively) 33,464,440 38,324,258
Inventories, net 26,902,521 19,056,868
Income taxes receivable 3,636,306 -
Deferred tax assets 4,537,881 5,337,391
Other current assets   941,902     2,515,745  
Total Current Assets 94,141,864 87,734,374
 
Property, plant and equipment 54,516,229 50,160,114
Less accumulated depreciation   (24,586,448 )   (21,531,845 )
29,929,781 28,628,269
 
Construction in progress 5,760,686 2,939,898
Investment securities - 183,742
Intangible assets (product rights) - net of accumulated amortization 5,909,636 7,785,298
Deferred tax assets 10,446,500 12,544,330
Other assets   1,555,831     147,886  
Total Assets $ 147,744,298   $ 139,963,797  
 

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES

Current Liabilities
Accounts payable $ 18,377,782 $ 16,280,675
Accrued expenses 1,354,095 3,464,181
Accrued payroll and payroll related 934,504 6,304,465
Income taxes payable - 1,479,658
Current portion of long-term debt 629,435 4,851,278
Rebates, chargebacks and returns payable   13,564,395     15,249,412  
Total Current Liabilities 34,860,211 47,629,669
 
Long-term debt, less current portion 7,192,496 2,868,549
Unearned grant funds - 500,000
Other long-term liabilities   2,417     7,864  
Total Liabilities 42,055,124 51,006,082
 
Commitment and Contingencies - -
 

SHAREHOLDERS' EQUITY

Common stock - authorized 50,000,000 shares, par value $0.001; issued and outstanding, 28,403,946 and 24,882,123 shares, respectively

28,404 24,882
Additional paid in capital 97,082,360 79,862,940
Retained earnings 9,287,732 9,564,632
Noncontrolling interest 139,082 111,982
Accumulated other comprehensive income   23,899     44,692  
106,561,477 89,609,128
Less: Treasury stock at cost - 156,611 and 110,108 shares, respectively   (872,303 )   (651,413 )
TOTAL SHAREHOLDERS' EQUITY   105,689,174     88,957,715  
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 147,744,298   $ 139,963,797  




2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs