NASHVILLE, Tenn., Nov. 7, 2017 /PRNewswire/ -- Cumberland
Pharmaceuticals Inc. (NASDAQ: CPIX), a specialty pharmaceutical
company focused on hospital acute care, gastroenterology, and
oncology supportive care today announced third quarter 2017
financial results with Net Revenues of $11.2
million, up 27% over the prior year quarter. It was the
fifth consecutive quarter of year over year revenue growth for the
Company, and during the first nine months of 2017 Net Revenues
increased 23% over the prior year period.
QUARTER HIGHLIGHTS:
- Initiated distribution, sales and promotion of
Totect®, Cumberland's branded dexrazoxane and second
oncology support drug, in the United
States.
- Launched a new co-promotion agreement for
Kristalose®, more than doubling the number of
physicians called on in support of the brand.
- Continued to progress Phase II clinical studies for the four
advanced pipeline programs.
"Over the past year, we have dramatically expanded our product
portfolio and reach, through a series of successful business
development initiatives. As a result, we are now marketing seven
FDA-approved brands," said A.J.
Kazimi, Chief Executive Officer of Cumberland
Pharmaceuticals. "This diversified strategy has driven our
double-digit top-line growth over the last year, and our momentum
is strong. Our goal remains the same - deliver sustainable revenue
growth and profitability though the delivery of high quality
medicines."
KEY QUARTER DEVELOPMENTS:
Totect®
In late July 2017, Cumberland
Pharmaceuticals initiated distribution and sale of Totect
(dexrazoxane hydrochloride) in the United
States. This followed the FDA approval of the updated
labeling and product manufacturer for the product. In late
September 2017, Cumberland announced the launch of sales
promotional support for Totect in the
United States.
Totect is an FDA-approved hospital based emergency oncology
intervention drug, indicated to treat the toxic effects of
anthracycline chemotherapy. It treats anthracycline extravasation
that occurs when the injected medication escapes from the blood
vessels and circulates into surrounding tissues in the body,
causing severe damage and serious complications. Totect can limit
such damage without the need for additional surgeries or procedures
and enables patients to continue their essential anti-cancer
treatment.
In preparation for the Totect promotional launch, the Company
completed the training of its sales and medical organization,
stocked the product at select wholesalers serving hospitals, and
introduced the brand's website. Totect is supported by Cumberland's hospital sales force. Totect was
launched during a national shortage of dexrazoxane, resulting in
strong initial demand for the product. It's Cumberland's second oncology support product
licensed through a Strategic Alliance with Clinigen Group plc.
Kristalose®
During the third quarter 2017, Cumberland fully implemented the co-promotion
arrangements with Poly Pharmaceuticals, Inc. ("Poly") following a
multi-year agreement signed in April
2017.
Poly is a privately held U.S. specialty pharmaceutical company
that is featuring Kristalose to an expanded number of physicians.
Poly's sales organization is more than doubling the number of
nationwide physicians called upon with Kristalose bringing the
brand's message to thousands of additional medical professionals.
Cumberland continues to manage the
national marketing, distribution, and regulatory activities
associated with the product.
FINANCIAL RESULTS:
Net Revenue: For the three months ended
September 30, 2017, net revenues were $11.2 million, a 27% increase compared to
$8.8 million for the prior year
period. Net revenue by product for the three months ended
September 30, 2017, included $2.9
million for Totect®, $2.7
million for Kristalose® and $2.6 million for Ethyol®. Net revenue
for the Company's other brands totaled $2.8
million for the third quarter with $1.3 million for Acetadote® (including
the brand and Company's Authorized Generic) $0.9 million for Caldolor®,
$0.4 million for
Vaprisol®, and $0.2
million for Omeclamox®-Pak.
Operating Expenses: Total operating expenses for
the three months ended September 30, 2017 were $12.0 million, compared to $8.7 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 third quarter
2017 was $(0.7) million or
$(0.05) per diluted share, compared
to $0.1 million or $0.01 a share for the prior year period.
Adjusted Earnings for the third quarter were $0.1 million or $0.01 per diluted share, compared to $1.0 million or $0.06 per diluted share for the prior year
period. The definition and reconciliation of Adjusted Earnings to
net income is provided in this release.
Balance Sheet: At September 30, 2017,
Cumberland had $50.1 million in cash and marketable securities,
including approximately $42.0 million
in cash and equivalents. Total Assets at September 30, 2017
were $90.4 million. Total
Liabilities were $25.4 million,
including $8.0 million outstanding on
the Company's revolving line of credit, resulting in Total
Shareholder's Equity of $65.1
million.
Cumberland also has
approximately $44 million in tax net
operating loss carryforwards, resulting from the prior exercise of
stock options.
Conference Call and Webcast
A conference call and live Internet webcast will be held on
Tuesday, November 7, 2017 at 4:30 p.m.
Eastern Time to discuss the Company's third 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 48389040.
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 the delivery of high-quality
prescription brands to improve patient care. The Company develops,
acquires, and commercializes brands for the hospital acute care,
gastroenterology, and oncology market segments.
The Company's portfolio of FDA approved brands includes:
- 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, for the treatment of chronic and
acute constipation;
- Omeclamox®-Pak, (omeprazole,
clarithromycin, amoxicillin) for the treatment of Helicobacter
pylori (H. pylori) infection and related duodenal ulcer
disease;
- Vaprisol® (conivaptan) Injection, to
raise serum sodium levels in hospitalized patients with euvolemic
and hypervolemic hyponatremia;
- Ethyol® (amifostine) Injection, for
the reduction of xerostomia (dry mouth) in patients undergoing
post-operative radiation treatment for head and neck cancer and the
renal toxicity associated with the administration of cisplatin in
patients with advanced ovarian cancer;
- Totect® (dexrazoxane hydrochloride)
Injection, for emergency oncology intervention, to treat the toxic
effects of anthracycline chemotherapy in case of extravasation
(drug leakage from the bloodstream into the tissues).
Cumberland's pipeline of
product candidates includes:
- Hepatoren® (ifetroban) Injection, a
Phase II candidate for the treatment of critically ill patients
suffering from liver and kidney failure associated with hepatorenal
syndrome ("HRS");
- Boxaban® (ifetroban) Oral Capsules, a
Phase II candidate for the treatment of asthma patients with
aspirin-exacerbated respiratory disease ("AERD");
- Vasculan® (ifetroban) Oral Capsules, a
Phase II candidate for the treatment of patients with the systemic
sclerosis (SSc) form of autoimmune disease;
- Portaban™ (ifetroban) Injection and Oral
Capsules, a Phase II candidate for the treatment of patients with
portal hypertension associated with liver disease;
- Methotrexate (methotrexate) Injection, an
approval submission candidate for the treatment of active
rheumatoid, juvenile idiopathic and severe psoriatic arthritis, as
well as severe disabling psoriasis.
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 Totect® (dexrazoxane) Injection
Totect is an anthracycline extravasation agent approved by the
United States Food and Drug Administration. Anthracyclines are used
to treat many types of cancer and are among the most common cancer
therapies.
Anthracycline extravasation occurs when there is accidental
leaking of the intravenously-administered medication into the
surrounding tissues. Anthracycline extravasation can result
in serious complications for cancer patients including tissue
necrosis with skin ulceration. In addition to tissue damage, an
anthracycline extravasation may cause damage to the nerves,
tendons, muscle, and joints. For more information please visit
www.totect.com.
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 Annual Report on Form 10-K and subsequent
reports on Form 10-Q 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)
|
|
|
September
30, 2017
|
|
December 31,
2016
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
42,018,953
|
|
|
$
|
34,510,330
|
|
Marketable
securities
|
8,055,017
|
|
|
15,622,111
|
|
Accounts receivable,
net of allowances
|
7,205,378
|
|
|
7,330,127
|
|
Inventories,
net
|
5,857,468
|
|
|
5,371,729
|
|
Other current
assets
|
2,945,999
|
|
|
2,710,967
|
|
Total current
assets
|
66,082,815
|
|
|
65,545,264
|
|
Property and
equipment, net
|
474,748
|
|
|
464,454
|
|
Intangible assets,
net
|
21,540,316
|
|
|
22,154,176
|
|
Other
assets
|
2,253,178
|
|
|
2,120,742
|
|
Deferred tax assets,
net
|
—
|
|
|
3,119,930
|
|
Total
assets
|
$
|
90,351,057
|
|
|
$
|
93,404,566
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
7,921,600
|
|
|
$
|
8,036,611
|
|
Other current
liabilities
|
7,876,491
|
|
|
6,755,652
|
|
Total current
liabilities
|
15,798,091
|
|
|
14,792,263
|
|
Revolving line of
credit
|
8,000,000
|
|
|
4,100,000
|
|
Other long-term
liabilities
|
1,634,936
|
|
|
1,391,484
|
|
Total
liabilities
|
25,433,027
|
|
|
20,283,747
|
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Shareholders'
equity:
|
|
|
|
Common stock—no par
value; 100,000,000 shares authorized; 15,781,736 and 16,074,176
shares issued and outstanding as of September 30, 2017 and
December 31, 2016, respectively
|
52,585,566
|
|
|
54,643,268
|
|
Retained
earnings
|
12,509,767
|
|
|
18,604,931
|
|
Total shareholders'
equity
|
65,095,333
|
|
|
73,248,199
|
|
Noncontrolling
interests
|
(177,303)
|
|
|
(127,380)
|
|
Total
equity
|
64,918,030
|
|
|
73,120,819
|
|
Total liabilities and
equity
|
$
|
90,351,057
|
|
|
$
|
93,404,566
|
|
CUMBERLAND
PHARMACEUTICALS INC. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Operations and Comprehensive Income
(loss)
|
(Unaudited)
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
revenues
|
$
|
11,196,961
|
|
|
$
|
8,791,753
|
|
|
$
|
29,500,843
|
|
|
$
|
23,944,120
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of products
sold
|
2,166,353
|
|
|
1,973,948
|
|
|
5,216,776
|
|
|
4,353,148
|
|
Selling and
marketing
|
6,226,438
|
|
|
3,614,714
|
|
|
16,174,391
|
|
|
10,585,955
|
|
Research and
development
|
943,162
|
|
|
644,662
|
|
|
2,921,951
|
|
|
2,029,914
|
|
General and
administrative
|
2,090,785
|
|
|
1,865,575
|
|
|
6,554,158
|
|
|
5,817,943
|
|
Amortization
|
609,572
|
|
|
562,722
|
|
|
1,811,589
|
|
|
1,632,920
|
|
Total costs and
expenses
|
12,036,310
|
|
|
8,661,621
|
|
|
32,678,865
|
|
|
24,419,880
|
|
Operating income
(loss)
|
(839,349)
|
|
|
130,132
|
|
|
(3,178,022)
|
|
|
(475,760)
|
|
Interest
income
|
94,833
|
|
|
51,636
|
|
|
216,849
|
|
|
160,248
|
|
Interest
expense
|
(8,902)
|
|
|
(29,088)
|
|
|
(70,646)
|
|
|
(77,777)
|
|
Income (loss) before
income taxes
|
(753,418)
|
|
|
152,680
|
|
|
(3,031,819)
|
|
|
(393,289)
|
|
Income tax (expense)
benefit
|
(3,822)
|
|
|
(57,192)
|
|
|
(4,196,192)
|
|
|
159,282
|
|
Net income
(loss)
|
(757,240)
|
|
|
95,488
|
|
|
(7,228,011)
|
|
|
(234,007)
|
|
Net loss at
subsidiary attributable to noncontrolling interests
|
14,209
|
|
|
10,678
|
|
|
49,923
|
|
|
39,018
|
|
Net income (loss)
attributable to common shareholders
|
$
|
(743,031)
|
|
|
$
|
106,166
|
|
|
$
|
(7,178,088)
|
|
|
$
|
(194,989)
|
|
Earnings (loss) per
share attributable to common shareholders
|
|
|
|
|
|
|
|
- basic
|
$
|
(0.05)
|
|
|
$
|
0.01
|
|
|
$
|
(0.45)
|
|
|
$
|
(0.01)
|
|
- diluted
|
$
|
(0.05)
|
|
|
$
|
0.01
|
|
|
$
|
(0.45)
|
|
|
$
|
(0.01)
|
|
Weighted-average
shares outstanding
|
|
|
|
|
|
|
|
- basic
|
15,867,159
|
|
|
16,217,442
|
|
|
15,973,737
|
|
|
16,268,579
|
|
- diluted
|
15,867,159
|
|
|
16,504,568
|
|
|
15,973,737
|
|
|
16,268,579
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss) attributable to common shareholders
|
(743,031)
|
|
|
106,166
|
|
|
(7,178,088)
|
|
|
(194,989)
|
|
Net loss at
subsidiary attributable to noncontrolling interests
|
14,209
|
|
|
10,678
|
|
|
49,923
|
|
|
39,018
|
|
Total comprehensive
income (loss)
|
$
|
(757,240)
|
|
|
$
|
95,488
|
|
|
$
|
(7,228,011)
|
|
|
$
|
(234,007)
|
|
|
|
|
|
|
|
|
|
CUMBERLAND
PHARMACEUTICALS INC. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
Nine months ended
September 30,
|
|
2017
|
|
2016
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$
|
(7,228,011)
|
|
|
$
|
(234,007)
|
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization expense
|
1,974,194
|
|
|
1,785,057
|
|
Deferred tax
expense
|
4,293,963
|
|
|
662,689
|
|
Share-based
compensation
|
849,198
|
|
|
623,504
|
|
Excess tax (benefit)
expense derived from exercise of stock options
|
(91,109)
|
|
|
907,270
|
|
Noncash interest
expense
|
60,708
|
|
|
61,224
|
|
Noncash investment
gains
|
(48,084)
|
|
|
(69,140)
|
|
Net changes in assets
and liabilities affecting operating activities:
|
|
|
|
Accounts
receivable
|
124,748
|
|
|
(595,180)
|
|
Inventories
|
(485,739)
|
|
|
(713,084)
|
|
Other current assets
and other assets
|
(428,176)
|
|
|
(1,241,372)
|
|
Accounts payable and
other current liabilities
|
640,453
|
|
|
(1,705,007)
|
|
Other long-term
liabilities
|
239,703
|
|
|
267,730
|
|
Net cash used in
operating activities
|
(98,152)
|
|
|
(250,316)
|
|
Cash flows from
investing activities:
|
|
|
|
Additions to property
and equipment
|
(172,899)
|
|
|
(98,275)
|
|
Purchases of
marketable securities
|
(2,029,414)
|
|
|
(3,643,894)
|
|
Proceeds from sale of
marketable securities
|
9,644,592
|
|
|
3,676,745
|
|
Additions to
intangible assets
|
(841,647)
|
|
|
(1,554,410)
|
|
Net cash provided by
(used in) investing activities
|
6,600,632
|
|
|
(1,619,834)
|
|
Cash flows from
financing activities:
|
|
|
|
Net borrowings on
line of credit
|
3,900,000
|
|
|
2,000,000
|
|
Excess tax expense
derived from exercise of stock options
|
—
|
|
|
(907,270)
|
|
Repurchase of common
shares
|
(2,893,857)
|
|
|
(1,879,395)
|
|
Net cash provided by
(used in) financing activities
|
1,006,143
|
|
|
(786,665)
|
|
Net increase
(decrease) in cash and cash equivalents
|
7,508,623
|
|
|
(2,656,815)
|
|
Cash and cash
equivalents at beginning of period
|
34,510,330
|
|
|
38,203,059
|
|
Cash and cash
equivalents at end of period
|
$
|
42,018,953
|
|
|
$
|
35,546,244
|
|
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
September 30, 2017
|
|
Three months
ended
September 30, 2016
|
|
|
Earnings
impact
|
|
Earnings per share
impact
|
|
Earnings
impact
|
|
Earnings per share
impact
|
Net income (loss)
attributable to common shareholders
|
|
$
|
(743,031)
|
|
|
$
|
(0.05)
|
|
|
$
|
106,166
|
|
|
$
|
0.01
|
|
Less: Net loss at
subsidiary attributable to noncontrolling interests
|
|
14,209
|
|
|
—
|
|
|
10,678
|
|
|
—
|
|
Net income
(loss)
|
|
(757,240)
|
|
|
(0.05)
|
|
|
95,488
|
|
|
0.01
|
|
Adjustments to net
income (loss)
|
|
|
|
|
|
|
|
|
Income tax
|
|
3,822
|
|
|
—
|
|
|
57,192
|
|
|
—
|
|
Depreciation and
amortization
|
|
659,901
|
|
|
0.04
|
|
|
613,620
|
|
|
0.04
|
|
Share-based
compensation (a)
|
|
297,943
|
|
|
0.02
|
|
|
215,278
|
|
|
0.01
|
|
Interest
income
|
|
(94,833)
|
|
|
(0.01)
|
|
|
(51,636)
|
|
|
—
|
|
Interest
expense
|
|
8,902
|
|
|
—
|
|
|
29,088
|
|
|
—
|
|
Adjusted Earnings
(loss) and Adjusted Diluted Earnings (loss) Per
Share
|
|
$
|
118,495
|
|
|
$
|
0.01
|
|
|
$
|
959,030
|
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares outstanding:
|
|
|
|
|
16,280,883
|
|
|
|
|
|
16,504,568
|
|
|
|
|
|
|
|
|
|
|
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 (loss): 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 (loss) Per Share: Adjusted
Earnings (loss) divided by diluted weighted-average common shares
outstanding.
View original content with
multimedia:http://www.prnewswire.com/news-releases/cumberland-pharmaceutical-reports-27-revenue-growth-in-the-third-quarter-300551081.html
SOURCE Cumberland Pharmaceuticals Inc.