NASHVILLE, Tenn., May 15, 2017 /PRNewswire/ -- Cumberland
Pharmaceuticals Inc. (NASDAQ: CPIX), a specialty pharmaceutical
company focused on hospital acute care and gastroenterology, today
announced first quarter 2017 financial results with Net Revenues of
$9.6 million and Adjusted Earnings of
$0.3 million or $0.02 per share. As of March 31, 2017, the
Company had approximately $92 million
in Total Assets including $50 million
in cash and marketable securities.
QUARTER HIGHLIGHTS:
- Announced the acquisition of exclusive U.S. rights to
Totect® through an agreement with the Clinigen
Group plc.
- Two new Caldolor® study manuscripts
published, adding to the growing body of literature supporting the
product.
- Successfully defended Acetadote® patent in
Federal Appeals Court.
- Welcomed Kenneth Krogulski,
President and Chief Executive Officer of Berkshire Asset Management
LLC, to the Company's Board of Directors.
"We are off to a fast start in 2017," said A.J. Kazimi, Chief Executive Officer of
Cumberland Pharmaceuticals. "We have already had a series of
positive developments this year that will make important
contributions toward our goal of delivering long-term sustainable
growth."
KEY DEVELOPMENTS:
Totect®
Cumberland announced an
agreement with the Clinigen Group plc to acquire exclusive U.S.
rights to the FDA approved oncology support drug,
Totect®. This is the second product Clinigen has
licensed to Cumberland under a
strategic alliance entered into between the companies.
Totect is an FDA-approved emergency oncology intervention which
is indicated to reverse the toxic effects of extravasation
associated with anthracycline chemotherapy. Extravasation occurs
when an injected medicine escapes from the blood vessels and
circulates into surrounding tissues in the body causing severe
damage and serious complications. Totect can reverse such damage
without the need for additional surgeries and procedures, enabling
patients to continue their essential anti-cancer treatment.
Under the terms of the agreement, Cumberland will be responsible for all
marketing, promotion, and distribution of the product in
the United States. Clinigen will
retain responsibility for manufacturing and regulatory management
of the product. The U.S. launch of Totect is currently expected in
late 2017.
Caldolor®
Early in the first quarter, Cumberland announced the publication of a
multicenter clinical study demonstrating that
Caldolor® delivered significant fever reduction in
hospitalized children.
The study evaluated the efficacy and safety of intravenous
ibuprofen in pediatric patients, six months and older, with fever.
Results from the study demonstrated that a single 10 mg/kg dose of
intravenous ibuprofen provided a significant reduction of
temperature in the pediatric patients and provides an effective
option for reducing fever in children. This pivotal data published
in the British BMC Pediatrics Journal supported the FDA approval of
Caldolor for use in this pediatric patient population.
In March 2017, the Company
announced the publication of a trial providing evidence that using
Caldolor in multimodal pain control strategies improves
postoperative pain control and reduces opioid use in patients
undergoing surgery.
The trial compared outcomes in two groups of patients treated
with multimodal pain management protocols following transsphenoidal
surgery for pituitary lesions: Group 1 patients treated
intraoperatively with IV Ibuprofen (Caldolor 800 mg.), scheduled
oral acetaminophen and rescue opioids, versus Group 2 patients
treated with IV saline placebo, scheduled oral acetaminophen, and
rescue opioids. The patients receiving Caldolor demonstrated a
significant reduction of 43% in their mean pain scores compared
with those receiving placebo. Opioid use was also significantly
impacted with a 58% reduction in the Caldolor Group patients
compared to Placebo Group patients.
The trial was conducted at the Department of Neurosurgery,
Barrow Neurological Institute, St.
Joseph's Hospital and Medical Center in Phoenix, Arizona. The study results were
published in the Journal of Neurosurgery, March 2017.
Acetadote®
In January 2017, a Federal Appeals
Court affirmed the District Court ruling in the Company's favor in
its lawsuit for infringement of its Acetadote Patent. The Appeals
Court opinion affirmed the District Court's ruling, expressly
rejecting validity challenges, and upholding Cumberland's Patent. Since 2012, the
USPTO has a series of patents associated with Acetadote,
Cumberland's injectable
formulation of N-Acetylcysteine ("NAC") for the treatment of
acetaminophen overdose.
Board of Directors Appointment
In January 2017, Cumberland announced the addition of
Kenneth J. Krogulski, CFA to the
Company's Board of Directors. Mr. Krogulski is the President
and Chief Executive Officer of Berkshire Asset Management LLC. He
is also the Chief Investment Officer of Berkshire, an
SEC-registered investment advisory firm. Mr. Krogulski has over 38
years of experience in security analysis and portfolio management.
Under his leadership, Berkshire's assets under supervision have
grown from $600 million in 2006 to
over $1.7 billion in 2017.
FINANCIAL RESULTS:
Net Revenue: For the three months ended
March 31, 2017, net revenues were $9.6
million, compared to $7.7
million for the prior year period. Net revenue by
product for the three months ended March 31, 2017, included
$3.7 million for Ethyol®,
$2.4 million for
Kristalose®, $1.3 million
for Acetadote® (including $0.9
million for the Company's Authorized Generic) $0.8 million for Caldolor®,
$0.7 million for Vaprisol®
and $0.6 million for
Omeclamox®-Pak.
Operating Expenses: Total operating expenses for
the three months ended March 31, 2017 were $10.3 million, compared to $8.2 million during the prior year period. The
primary reasons for this increase were the additional cost of goods
sold and royalty expenses associated with the growth in sales.
Earnings: Net income (loss) for the first quarter
of 2017 was $(1.3) million or
$(0.08) per diluted share, compared
to $(0.3) million or $(.02) a share for the prior year period. This
difference was impacted by a non-cash charge to taxes associated
with an increase in the valuation allowance for prior Research and
Development tax credits. Adjusted Earnings for the first
quarter were $0.3 million or
$0.02 per diluted share, similar to
the prior year period. The definition and reconciliation of
Adjusted Earnings to net income (loss) is provided in this
release.
Balance Sheet: At March 31, 2017, Cumberland had $50.5
million in cash and marketable securities, including
approximately $35.0 million in cash
and equivalents. Total Assets at March 31, 2017 were
$91.9 million. Total
Liabilities were $19.6 million,
including $4.1 million outstanding on
the Company's revolving line of credit, resulting in Total
Shareholder's Equity of $72.4
million.
Cumberland also has
approximately $44 million in tax net
operating loss carryforwards, resulting from the prior exercise of
stock options. As part of the adoption of the recent Stock
Compensation standard, these tax net operating loss carryforwards
resulted in the addition of a new tax asset to the balance sheet
along with a significant allowance. The net change in deferred tax
assets was an increase of $0.41
million for the first quarter.
Conference Call and Webcast
A conference call and live Internet webcast will be held on
Monday, May 15, 2017 at 4:30 p.m.
Eastern Time to discuss the Company's first quarter 2017
financial results. To participate in the call, please dial
877-303-1298 (for U.S. callers) or 253-237-1032 (for international
callers). A rebroadcast of the teleconference will be
available for one week and can be accessed by dialing 855-859-2056
(for U.S. callers) or 404-537-3406 (for international
callers). The Conference ID for the rebroadcast is 11376419.
The live webcast and rebroadcast can be accessed via Cumberland's website at
http://investor.shareholder.com/cpix/events.cfm.
About Cumberland Pharmaceuticals
Cumberland Pharmaceuticals Inc. is a specialty
pharmaceutical company focused on acquisition, development and
commercialization of branded prescription products. The Company's
primary target markets include hospital acute care and
gastroenterology. Cumberland's six
marketed products include Acetadote®
(acetylcysteine) Injection for the treatment of
acetaminophen poisoning, Caldolor® (ibuprofen)
Injection, for the treatment of pain and fever,
Kristalose® (lactulose) for Oral Solution, a
prescription laxative, Vaprisol® (conivaptan)
Injection, for the treatment of hyponatremia and
Omeclamox-Pak® for the treatment of H. pylori
infection and duodenal ulcer disease, and Ethyol®
(amifostine) for Injection, for the treatment of oncology patients.
Cumberland is developing
Hepatoren® (ifetroban) Injection
for the treatment of Hepatorenal Syndrome, Boxaban®
(ifetroban) Oral Capsule for the treatment of
Aspirin-Exacerbated Respiratory Disease, VasculanTM
(ifetroban) Oral Capsule for the treatment of systemic sclerosis,
and Portaban™, for the treatment of portal hypertension
Cumberland is dedicated to
providing innovative products that improve quality of care for
patients. For more information on Cumberland's approved products, including full
prescribing information, please visit the individual product
websites, links to which can be found on the Company's website
www.cumberlandpharma.com.
About Acetadote® (acetylcysteine)
Injection
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 approved in the United States to treat overdose of
acetaminophen, a common ingredient in many over-the-counter
medications. Acetadote is contraindicated in patients with
hypersensitivity or previous anaphylactoid reactions to
acetylcysteine or any components of the preparation. Serious
anaphylactoid reactions, including death in a patient with asthma,
have been reported in patients administered acetylcysteine
intravenously.
Acetadote should be used with caution in patients with asthma or
where there is a history of bronchospasm. The total volume
administered should be adjusted for patients weighing less than 40
kg and for those requiring fluid restriction. To avoid fluid
overload, the volume of diluent should be reduced as needed. If
volume is not adjusted, fluid overload can occur, potentially
resulting in hyponatremia, seizure and death. For full prescribing
information, visit www.acetadote.com.
About Caldolor® (ibuprofen) Injection
Caldolor is indicated in adults and pediatric patients 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. It was the first FDA-approved intravenous
therapy for fever. Caldolor is contraindicated in patients
with known hypersensitivity to ibuprofen or other NSAIDs, patients
with a history of asthma or other allergic type reactions after
taking aspirin or other NSAIDs. Caldolor is contraindicated
for use during the peri-operative period in the setting of coronary
artery bypass graft (CABG) surgery. Caldolor should be used
with caution in patients with prior history of ulcer disease or GI
bleeding, in patients with fluid retention or heart failure, in the
elderly, those with renal impairment, heart failure, liver
impairment, and those taking diuretics or ACE inhibitors.
Blood pressure should be monitored during treatment with
Caldolor. For full prescribing information, including boxed
warning, visit www.caldolor.com.
About Kristalose® (lactulose) Oral
Solution
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, clarithromycin,
amoxicillin)
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 U.S. Food
and Drug Administration in 2011. For full prescribing information,
visit www.omeclamox.com.
About Vaprisol® (conivaptan hydrochloride)
Injection
Vaprisol is 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 was approved by the U.S.
Food and Drug Administration in 2005 for euvolemic hyponatremia and
in 2007 for hypervolemic hyponatremia. For full prescribing
information, visit www.vaprisol.com.
About Ethyol® (amifostine) Injection
Ethyol is indicated to reduce the cumulative renal toxicity
associated with repeated administration of cisplatin in patients
with advanced ovarian cancer. It is indicated to reduce the
incidence of moderate to severe xerostomia in patients undergoing
post-operative radiation treatment for head and neck cancer, where
the radiation port includes a substantial portion of the parotid
glands.
About Cumberland Emerging Technologies (CET)
Cumberland Emerging Technologies, Inc. (www.cet-fund.com) is a
joint initiative between Cumberland Pharmaceuticals Inc.,
Vanderbilt University, LaunchTN, and
Gloria Pharmaceuticals. The mission of CET is to advance biomedical
technologies and products conceived at Vanderbilt University and other regional research
centers towards the marketplace. CET helps manage the development
and commercialization process for select projects, and provides
expertise on intellectual property, regulatory, manufacturing and
marketing issues that are critical to successful new biomedical
products. CET's Life Sciences Center, provides laboratory space,
equipment and infrastructure for CET's activities and other
early-stage life sciences ventures.
Forward-Looking Statements
This announcement 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 SEC. There can be no assurance that results anticipated by the
Company will be realized or that they will have the expected
effects. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
The Company does not undertake any obligation to publicly revise
these statements to reflect events after the date hereof.
CUMBERLAND
PHARMACEUTICALS INC. AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
(Unaudited)
|
|
|
March 31,
2017
|
|
December 31,
2016
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
34,974,242
|
|
|
$
|
34,510,330
|
|
Marketable
securities
|
15,478,547
|
|
|
15,622,111
|
|
Accounts receivable,
net of allowances
|
4,934,779
|
|
|
7,330,127
|
|
Inventories,
net
|
5,646,904
|
|
|
5,371,729
|
|
Other current
assets
|
2,507,876
|
|
|
2,710,967
|
|
Total current
assets
|
63,542,348
|
|
|
65,545,264
|
|
Property and
equipment, net
|
538,358
|
|
|
464,454
|
|
Intangible assets,
net
|
22,079,180
|
|
|
22,154,176
|
|
Other
assets
|
2,164,236
|
|
|
2,120,742
|
|
Deferred tax assets,
net
|
3,537,483
|
|
|
3,119,930
|
|
Total
assets
|
91,861,605
|
|
|
93,404,566
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
7,269,644
|
|
|
$
|
8,036,611
|
|
Other current
liabilities
|
6,801,185
|
|
|
6,755,652
|
|
Total current
liabilities
|
14,070,829
|
|
|
14,792,263
|
|
Revolving line of
credit
|
4,100,000
|
|
|
4,100,000
|
|
Other long-term
liabilities
|
1,478,623
|
|
|
1,391,484
|
|
Total
liabilities
|
19,649,452
|
|
|
20,283,747
|
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Shareholders'
equity:
|
|
|
|
Common stock—no par
value; 100,000,000 shares authorized;
16,065,301 and 16,074,176 shares issued and outstanding as of
March 31, 2017 and December 31, 2016, respectively
|
53,945,247
|
|
|
54,643,268
|
|
Retained
earnings
|
18,413,409
|
|
|
18,604,931
|
|
Total shareholders'
equity
|
72,358,656
|
|
|
73,248,199
|
|
Noncontrolling
interests
|
(146,503)
|
|
|
(127,380)
|
|
Total
equity
|
72,212,153
|
|
|
73,120,819
|
|
Total liabilities and
equity
|
$
|
91,861,605
|
|
|
$
|
93,404,566
|
|
CUMBERLAND
PHARMACEUTICALS INC. AND SUBSIDIARIES
Condensed
Consolidated Statements of Operations and Comprehensive Income
(loss)
(Unaudited)
|
|
|
Three months ended
March 31,
|
|
2017
|
|
2016
|
Net
revenues
|
$
|
9,636,755
|
|
|
$
|
7,737,532
|
|
Costs and
expenses:
|
|
|
|
Cost of products
sold
|
1,381,497
|
|
|
1,223,939
|
|
Selling and
marketing
|
5,293,020
|
|
|
3,698,962
|
|
Research and
development
|
898,363
|
|
|
706,472
|
|
General and
administrative
|
2,110,233
|
|
|
2,077,972
|
|
Amortization
|
611,444
|
|
|
530,770
|
|
Total costs and
expenses
|
10,294,557
|
|
|
8,238,115
|
|
Operating income
(loss)
|
(657,802)
|
|
|
(500,583)
|
|
Interest
income
|
52,535
|
|
|
77,129
|
|
Interest
expense
|
(31,715)
|
|
|
(20,442)
|
|
Income (loss) before
income taxes
|
(636,982)
|
|
|
(443,896)
|
|
Income tax (expense)
benefit
|
(656,587)
|
|
|
175,339
|
|
Net income
(loss)
|
(1,293,569)
|
|
|
(268,557)
|
|
Net loss at
subsidiary attributable to noncontrolling interests
|
19,123
|
|
|
15,446
|
|
Net income (loss)
attributable to common shareholders
|
$
|
(1,274,446)
|
|
|
$
|
(253,111)
|
|
Earnings (loss) per
share attributable to common shareholders
|
|
|
|
- basic
|
$
|
(0.08)
|
|
|
$
|
(0.02)
|
|
- diluted
|
$
|
(0.08)
|
|
|
$
|
(0.02)
|
|
Weighted-average
shares outstanding
|
|
|
|
- basic
|
16,042,219
|
|
|
16,341,481
|
|
- diluted
|
16,042,219
|
|
|
16,341,481
|
|
|
|
|
|
Comprehensive income
(loss) attributable to common shareholders
|
(1,274,446)
|
|
|
(253,111)
|
|
Net loss at
subsidiary attributable to noncontrolling interests
|
19,123
|
|
|
15,446
|
|
Total comprehensive
income (loss)
|
$
|
(1,293,569)
|
|
|
$
|
(268,557)
|
|
|
|
|
|
CUMBERLAND
PHARMACEUTICALS INC. AND SUBSIDIARIES
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
Three months ended
March 31,
|
|
2017
|
|
2016
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$
|
(1,293,569)
|
|
|
$
|
(268,557)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization expense
|
661,485
|
|
|
582,093
|
|
Deferred tax
expense
|
758,112
|
|
|
204,067
|
|
Share-based
compensation
|
254,585
|
|
|
174,778
|
|
Excess tax (benefit)
expense derived from exercise of stock options
|
(92,741)
|
|
|
427,993
|
|
Noncash interest
expense
|
26,778
|
|
|
13,933
|
|
Noncash investment
gains
|
(4,807)
|
|
|
(46,577)
|
|
Net changes in assets
and liabilities affecting operating activities:
|
|
|
|
Accounts
receivable
|
2,395,348
|
|
|
1,254,320
|
|
Inventories
|
(275,175)
|
|
|
196,454
|
|
Other current assets
and other assets
|
132,819
|
|
|
(534,621)
|
|
Accounts payable and
other current liabilities
|
(1,216,345)
|
|
|
(1,483,998)
|
|
Other long-term
liabilities
|
92,881
|
|
|
78,602
|
|
Net cash provided by
operating activities
|
1,439,371
|
|
|
598,487
|
|
Cash flows from
investing activities:
|
|
|
|
Additions to property
and equipment
|
(123,945)
|
|
|
(73,057)
|
|
Purchases of
marketable securities
|
(792,716)
|
|
|
(1,166,218)
|
|
Proceeds from sale of
marketable securities
|
941,087
|
|
|
910,692
|
|
Additions to
intangible assets
|
(453,961)
|
|
|
(624,898)
|
|
Net cash used in
investing activities
|
(429,535)
|
|
|
(953,481)
|
|
Cash flows from
financing activities:
|
|
|
|
Excess tax expense
derived from exercise of stock options
|
—
|
|
|
(427,993)
|
|
Repurchase of common
shares
|
(545,924)
|
|
|
(979,293)
|
|
Net cash used in
financing activities
|
(545,924)
|
|
|
(1,407,286)
|
|
Net increase
(decrease) in cash and cash equivalents
|
463,912
|
|
|
(1,762,280)
|
|
Cash and cash
equivalents at beginning of period
|
34,510,330
|
|
|
38,203,059
|
|
Cash and cash
equivalents at end of period
|
$
|
34,974,242
|
|
|
$
|
36,440,779
|
|
CUMBERLAND
PHARMACEUTICALS INC. AND SUBSIDIARIES
Reconciliation of Net
Income (Loss) Attributable to Common Shareholders to Adjusted
Earnings and
Adjusted Diluted Earnings Per Share
(Unaudited)
|
|
|
|
Three months ended
March
31, 2017
|
|
Three months ended
March
31, 2016
|
|
|
Earnings
impact
|
|
Earnings per
share impact
|
|
Earnings
impact
|
|
Earnings per
share impact
|
Net income (loss)
attributable to common shareholders
|
|
$
|
(1,274,446)
|
|
|
$
|
(0.08)
|
|
|
$
|
(253,111)
|
|
|
$
|
(0.02)
|
|
Less: Net loss at
subsidiary attributable to noncontrolling
interests
|
|
19,123
|
|
|
—
|
|
|
15,446
|
|
|
—
|
|
Net income
(loss)
|
|
(1,293,569)
|
|
|
(0.08)
|
|
|
(268,557)
|
|
|
(0.02)
|
|
Adjustments to net
income (loss)
|
|
|
|
|
|
|
|
|
Income tax
|
|
656,587
|
|
|
0.04
|
|
|
(175,339)
|
|
|
(0.01)
|
|
Depreciation and
amortization
|
|
661,485
|
|
|
0.04
|
|
|
582,093
|
|
|
0.04
|
|
Share-based
compensation (a)
|
|
254,585
|
|
|
0.02
|
|
|
174,778
|
|
|
0.01
|
|
Interest
income
|
|
(52,535)
|
|
|
—
|
|
|
(77,129)
|
|
|
—
|
|
Interest
expense
|
|
31,715
|
|
|
—
|
|
|
20,442
|
|
|
—
|
|
Adjusted Earnings
and Adjusted Diluted Earnings Per
Share
|
|
$
|
258,268
|
|
|
$
|
0.02
|
|
|
$
|
256,288
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares outstanding:
|
|
|
|
16,455,943
|
|
|
|
|
16,341,481
|
|
The Company provided the above adjusted supplemental financial
performance measures, which are considered "non-GAAP" financial
measures under applicable Securities and Exchange Commission rules
and regulations. These financial measures should be considered
supplemental to, and not as a substitute for, financial information
prepared in accordance with Generally Accepted Accounting
Principles ("GAAP"). The definition of these supplemental measures
may differ from similarly titled measures used by others.
Because these supplemental financial measures exclude the effect
of items that will increase or decrease the Company's reported
results of operations, management strongly encourages investors to
review the Company's consolidated financial statements and publicly
filed reports in their entirety. A reconciliation of the
supplemental financial measures to the most directly comparable
GAAP financial measures is included in the tables accompanying this
release.
Cumberland's management
believes these supplemental financial performance measures are
important as they are used by management, along with financial
measures in accordance with GAAP, to evaluate the Company's
operating performance. In addition, Cumberland believes that they will be used by
certain investors to measure the Company's operating results.
Management believes that presenting these supplemental measures
provides useful information about the Company's underlying
performance across reporting periods on a consistent basis by
excluding items that Cumberland
does not believe are indicative of its core business performance or
reflect long-term strategic activities. Certain of these
items are not settled through cash payments and include:
depreciation, amortization, share-based compensation expense and
income taxes. Cumberland
utilizes its net operating loss carryforwards to pay minimal income
taxes. In addition, the use of these financial measures
provides greater transparency to investors of supplemental
information used by management in its financial and operational
decision-making, including the evaluation of the Company's
operating performance.
The Company defines these supplemental financial measures as
follows:
- Adjusted Earnings: net income (loss) adjusted for the
impact of income taxes, depreciation and amortization expense,
share-based compensation and interest income and interest
expense.
(a) Represents the share-based
compensation of Cumberland.
- Adjusted Diluted Earnings Per Share: Adjusted Earnings
divided by diluted weighted-average common shares outstanding.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cumberland-pharmaceuticals-reports-revenue-growth-of-25-in-first-quarter-2017-300457641.html
SOURCE Cumberland Pharmaceuticals Inc.