LANNETT REPORTS RECORD FISCAL 2013 THIRD QUARTER FINANCIAL RESULTS
Contact: Roger Pondel PondelWilkinson Inc. (310) 279-5980
--Net Sales Increase 27%; Net Income More than Doubles; Company Increases Guidance for Full Year--
Philadelphia, PA - May 8, 2013 - Lannett Company, Inc. (NYSE MKT: LCI) today reported continued strong momentum, with sharply improved financial results for its fiscal 2013 third quarter ended March 31, 2013, compared with the prior year period.
For the fiscal 2013 third quarter, net sales rose significantly to $39.0 million, up 27% from $30.7 million for last year's third quarter. Gross profit increased to $15.2 million from $10.9 million for the fiscal 2012 third quarter. As a percentage of net sales, gross margin increased to 39% from 35% last year. Research and development (R&D) expenses were $5.2 million, compared with $2.9 million for the fiscal 2012 third quarter. Selling, general and administrative (SG&A) expenses decreased to $5.2 million, from $5.6 million in the same quarter of the prior year. Operating income nearly doubled to
Upward Revised Guidance for Fiscal 2013
$4.7 million from $2.4 million for the third quarter of fiscal 2012. Net income attributable to Lannett Company rose to $3.9 million, or $0.14 per diluted share, from $1.7 million, or $0.06 per diluted share, for the same period last year.
"Our fiscal 2013 third quarter net sales and net income were the highest in the company's history," said Arthur Bedrosian, president and chief executive officer of Lannett. "Our performance reflected continued solid sales from our base products, combined with strong sales of recently approved products. Gross margin percentage increased due to favorable sales mix and price increases, as well as enhanced manufacturing efficiencies related to higher sales volume. With 15 product applications currently pending at the FDA and our ramped up investment in product development, we believe we are well-positioned for continued positive results."
For the first nine months of fiscal 2013, net sales increased to $110.9 million from $87.3 million for the corresponding prior year period. Gross profit rose to $42.2 million from $26.9 million last year. R&D expenses were $12.6 million, compared with $7.9 million for the first nine months of fiscal
2012. SG&A expenses amounted to $16.6 million, versus $14.8 million for the first nine months of fiscal 2012. Operating income more than tripled to $13.1 million from $4.3 million a year ago. Net income attributable to Lannett Company increased to $9.8 million, equal to $0.34 per diluted share,
from $2.5 million, or $0.09 per diluted share, for the first nine months of fiscal 2012. Net income for the most recent year-to-date period included a favorable litigation settlement of $1.3 million, equal to
$0.03 per diluted share.
Based on Lannett's current outlook, the company revised its financial guidance upward for the full
2013 fiscal year as follows: