About Lannett Company, Inc.:

Lannett Company, founded in 1942, develops, manufactures, packages, markets and distributes generic pharmaceutical products for a wide range of medical 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, achieving the financial metrics stated in the company’s guidance for fiscal 2014, expected product approvals, the successful commercialization of products in development and products included in the contract extension with Jerome Stevens Pharmaceuticals, Inc., product applications pending at the FDA and recently approved products, 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.
LANNETT COMPANY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except share and per share data)
         
Three months ended Fiscal Year ended
June 30, June 30,

2013

2012

2013

2012
 
Net sales $ 40,174 $ 35,690 $ 151,054 $ 122,990
Cost of sales   24,971     23,677     93,634     84,043  
Gross profit   15,203     12,013     57,420     38,947  
Operating expenses:
Research and development 3,688 3,994 16,253 11,844
Selling, general, and administrative   5,839     5,413     22,410     20,193  
Total operating expenses   9,527     9,407     38,663     32,037  
Operating income   5,676     2,606     18,757     6,910  
Other income (expense):
Foreign currency gain (loss) - (56 ) 3 (62 )
Gain on sale of assets 60 - 111 4
Gain (loss) on investment securities (144 ) (272 ) 699 (103 )
Litigation settlement - - 1,250 -
Interest and dividend income 32 25 116 142
Interest expense   (57 )   (59 )   (251 )   (273 )
Total other income (expense)   (109 )   (362 )   1,928     (292 )
Net income before income tax 5,567 2,244 20,685 6,618
Income tax expense   1,950     812     7,303     2,600  
Net income 3,617 1,432 13,382 4,018
Less: Net income attributable to noncontrolling interest   54     17     65     70  
Net income attributable to Lannett Company, Inc. $ 3,563   $ 1,415   $ 13,317   $ 3,948  
 
Earnings per common share attributable to Lannett Company, Inc.
Basic $ 0.12 $ 0.05 $ 0.47 $ 0.14
Diluted $ 0.12 $ 0.05 $ 0.46 $ 0.14
 
Weighted average common shares outstanding:
Basic 28,757,885 28,276,573 28,467,598 28,263,335
Diluted 29,778,828 28,384,177 28,942,933 28,408,432
 
LANNETT COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
 

(Unaudited)
   

June 30, 2013

June 30, 2012
 

ASSETS
Current assets:
Cash and cash equivalents $ 42,689 $ 22,562
Investment securities 8,461 6,667
Accounts receivable, net 26,413 26,586
Inventories, net 32,531 27,064
Income taxes receivable - 2,120
Deferred tax assets 4,874 4,833
Other current assets   1,161     1,023  
Total current assets 116,129 90,855
Property, plant and equipment, net 40,141 37,068
Intangible assets, net 2,547 4,429
Deferred tax assets 8,005 9,069
Other assets   930     1,171  
TOTAL ASSETS $ 167,752   $ 142,592  
 
 

LIABILITIES
Current liabilities:
Accounts payable $ 22,668 $ 17,989
Accrued expenses 2,697 2,931
Accrued payroll and payroll related 6,910 3,198
Income taxes payable 154 -
Current portion of long-term debt   670     648  
Total current liabilities 33,099 24,766
Long-term debt, less current portion   5,844     6,513  
TOTAL LIABILITIES   38,943     31,279  
Commitment and Contingencies
 

STOCKHOLDERS' EQUITY

Common stock ($0.001 par value, 50,000,000 shares authorized; 29,284,592 and 28,594,437 shares issued; 28,848,679 and 28,252,192 shares outstanding at June 30, 2013 and 2012, respectively)
29 29
Additional paid-in capital 104,075 99,515
Retained earnings 26,553 13,236
Accumulated other comprehensive loss (47 ) (63 )
Treasury stock (435,913 and 342,245 shares at June 30, 2013 and 2012, respectively)   (2,034 )   (1,594 )
Total Lannett Company, Inc. stockholders' equity 128,576 111,123
Noncontrolling interest   233     190  
Total stockholders' equity   128,809     111,313  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 167,752   $ 142,592  

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