Company Also Delivers Growing Cash Flow from
Operations
NASHVILLE, Tenn., Nov. 8, 2022
/PRNewswire/ -- Cumberland Pharmaceuticals Inc. (NASDAQ:
CPIX), a specialty pharmaceutical company, announced today that
its product portfolio of FDA-approved brands delivered combined
revenues of $11.4 million during the
third quarter of 2022 - a 41% increase over the prior year period.
Cumberland also reported a 19%
increase in net revenues for the first nine months of the year
compared to the same period in 2021.
The Company ended the third quarter with $91 million in total assets, $53 million in total liabilities and $38 million of shareholders' equity.
"Fueled by initial sales from our newest product Sancuso, we saw
tremendous growth during the third quarter and the first nine
months of 2022," said A.J. Kazimi, CEO of Cumberland
Pharmaceuticals. "As we move through the final quarter of the year,
we look forward to building on this success. As always, we remain
sharply focused on our mission of improving patient care through
the delivery of high-quality medicines."
QUARTER HIGHLIGHTS:
Sancuso® Acquisition and Transition
Following its acquisition of Sancuso from Kyowa Kirin, Inc. in
January, Cumberland largely
completed the transition of the product, assuming responsibilities
for its sales, distribution and promotion in the U.S. Sancuso is an
FDA-approved prescription patch that prevents nausea and vomiting
in patients undergoing certain types of chemotherapy.
Sancuso® Promotion
Cumberland formed a new sales
division, Cumberland Oncology, to support Sancuso and also entered
into an agreement with Verity Pharmaceuticals International Limited
for the national co-promotion of the brand.
Under the terms of the agreement, Verity will utilize its
established oncology commercial organization to co-promote Sancuso
throughout the U.S. Verity completed the training and launched its
sales efforts in support of Sancuso during the third quarter of
2022.
RediTrex® Agreement with Nordic
Pharma
In July 2022, Cumberland entered into an amendment to its
agreement with Nordic Pharma addressing the responsibilities and
financial arrangements regarding Cumberland's license to Nordic's methotrexate
line of products for the U.S., which are marketed under the brand
name RediTrex.
Based on the amendment, Nordic has the opportunity to assume
responsibility for commercializing the methotrexate products in the
U.S. after March 31, 2023. Until
then, Cumberland will continue to
distribute and support the RediTrex product line. Following the
return of the license, Nordic will provide Cumberland with a royalty on their future
sales of the product through April
2035.
New Headquarter Office Location
In October 2022, Cumberland relocated its headquarters to the
Broadwest campus in the Vanderbilt/West
End corridor of Nashville. The
new, state-of-the-art headquarters keeps the company close to
Vanderbilt University Medical Center,
enabling their continued collaboration as Cumberland works to develop new medicines for
the future.
The move also allows Cumberland
to accommodate recent and future growth. Following the relocation,
Cumberland expects to expand its
organization to over 100 individuals, with a majority working from
the Nashville headquarters.
Ifetroban Clinical Studies
Currently, Cumberland is
sponsoring three Phase II clinical trials to evaluate its ifetroban
product candidate, for patients with:
- Aspirin-Exacerbated Respiratory Disease ("AERD"), a
severe form of asthma;
- Systemic Sclerosis, a debilitating autoimmune disorder
characterized by diffuse fibrosis of the skin and internal organs;
and
- Cardiomyopathy associated with Duchenne Muscular
Dystrophy, a genetic neuromuscular disease that results in
deterioration of the skeletal, heart and lung muscles.
The company is also working on an application to the FDA for a
fourth Phase II program, which will evaluate the use of ifetroban
to treat patients with Progressive Fibrosing Interstitial Lung
Diseases.
The company-sponsored AERD study has been closed to enrollment.
Once quality checks on the study database are complete, analysis of
the results will be conducted and top-line results will then be
announced. Once the results of its other sponsored Phase II studies
are available, Cumberland will
decide on the best development path for the registration of
ifetroban.
FINANCIAL RESULTS:
Net Revenue: For the three months ended September 30, 2022, net revenues from continuing
operations were $11.4 million, a 41%
increase over the prior year period. Net revenue by product for the
third quarter of 2022, included $4.0
million for Sancuso®, $3.9
million for Kristalose®, $1.9 million for
Vibativ® and $0.9
million for Caldolor®.
Year-to-date 2022 net revenues were $33
million, a 19% increase compared to $28 million for the first nine months of 2021.
Year-to-date net revenues by product were $11.4 million for Kristalose, $10.8 million for Sancuso, $6.0 million for Vibativ and $3.1 million for Caldolor.
Operating Expenses: Total operating expenses for the
third quarter were $11.7 million,
compared to $9.6 million for the
prior year period.
Year-to-date 2022 operating expenses were $36.3 million, compared to $31.0 million for 2021.
Earnings: Net loss for the third quarter of 2022
was $0.4 million, a significant
improvement over the $1.1 million net
loss during the prior year period.
Adjusted earnings: Adjusted earnings for the third
quarter of 2022 were $1.4 million, or
$0.10 per share, a significant
improvement over the $0.3 million
adjusted loss during the same period in 2021. The third
quarter 2022 adjusted earnings calculation does not include
the benefit of the $1.0 million of
Vibativ cost of goods, which were received with the product
acquisition. It also does not include the benefit of the
$0.4 million of Sancuso cost of
goods, which were received with that product's
acquisition.
Cash Flow: Year-to-date cash flow from operations
was $5.6 million, a 28% increase over
the $4.4 million during the prior
year period.
Balance Sheet: At September 30,
2022, Cumberland had
$91 million in total assets,
including $20 million in cash and
cash equivalents. Total liabilities were $53
million, including $18 million
outstanding on the Company's revolving line of credit. Total
shareholders' equity was $38
million.
EARNINGS REPORT CALL:
Cumberland will provide its
financial results for the third quarter of 2022 via a conference
call today at 4:30 p.m. Eastern
Time.
To join the call, register at
https://register.vevent.com/register/BI21ae99e384c446cfb00fbab05f8bf1a3.
Registered participants can dial in from their phone using a
dial-in and PIN number that will be provided. They can also choose
a "Call Me" option to have the system automatically call them at
the start of the conference call.
Available on Cumberland's
website for one year, a replay of the call can be accessed by
visiting
https://edge.media-server.com/mmc/p/cg5rqxms.
ABOUT CUMBERLAND
PHARMACEUTICALS:
Cumberland Pharmaceuticals Inc. is the largest
biopharmaceutical company founded and headquartered in the
Mid-South and is focused on the delivery of high-quality,
prescription brands designed to improve patient care. The company
develops, acquires, and commercializes products for the hospital
acute care, gastroenterology, rheumatology 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) oral, a
prescription laxative, for the treatment of constipation;
- Omeclamox®-Pak, (omeprazole,
clarithromycin, amoxicillin) oral, for the treatment of
Helicobacter pylori (H. pylori) infection and related
duodenal ulcer disease;
- RediTrex® (methotrexate) injection,
for the treatment of active rheumatoid, juvenile idiopathic and
severe psoriatic arthritis, as well as disabling psoriasis;
- Sancuso® (granisetron)
transdermal, for the prevention of nausea and vomiting in patients
receiving certain types of chemotherapy treatment;
- Vaprisol® (conivaptan) injection, to
raise serum sodium levels in hospitalized patients with euvolemic
and hypervolemic hyponatremia; and
- Vibativ® (telavancin) injection, for
the treatment of certain serious bacterial infections including
hospital-acquired and ventilator-associated bacterial pneumonia, as
well as complicated skin and skin structure infections;
The Company also has a series of Phase II clinical programs
underway evaluating its ifetroban product candidate in patients
with cardiomyopathy associated with Duchenne Muscular Dystrophy,
Systemic Sclerosis, and Aspirin-Exacerbated Respiratory
Disease.
For more information on Cumberland's approved products, including full
prescribing information, please visit links to the individual
product websites, which can be found on the Company's website
www.cumberlandpharma.com.
ABOUT CUMBERLAND EMERGING
TECHNOLOGIES:
Cumberland Emerging Technologies, Inc. (www.cet-fund.com) is a
joint initiative between Cumberland Pharmaceuticals Inc.,
Vanderbilt University, LaunchTN, and
WinHealth. 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.
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. For full
prescribing and safety 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. For full prescribing and safety 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. 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 and safety 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. For full
prescribing and safety information, visit www.omeclamox.com.
About RediTrex® (methotrexate) Injection
RediTrex is a single-dose prefilled syringe containing
prescription methotrexate. RediTrex is used to treat adults with
severe, active rheumatoid arthritis and children with active
polyarticular juvenile idiopathic arthritis, after treatment with
other medicines including non-steroidal anti-inflammatory drugs
(NSAIDS) have been used and did not work well. Methotrexate can
control the symptoms of severe, resistant, disabling psoriasis in
adults when other types of treatment have failed. For full
prescribing and safety information, visit www.reditrex.com
About Sancuso® (granisetron)
Transdermal System
Sancuso is the only skin patch approved by the U.S. Food and
Drug Administration for the prevention of chemotherapy-induced
nausea and vomiting (CINV) in patients receiving moderately and/or
highly emetogenic chemotherapy. When applied 24 to 48 hours before
receiving chemotherapy, the SANCUSO patch slowly and continuously
releases the medicine contained in the adhesive through clean and
intact skin areas into the patient's bloodstream. It can be worn
for up to seven days in a row for chemotherapy regimens of up to
five consecutive days. For full prescribing and safety information,
visit www.sancuso.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 is contraindicated in
patients with hypovolemic hyponatremia. The coadministration of
Vaprisol with potent CYP3A inhibitors, such as ketoconazole,
itraconazole, clarithromycin, ritonavir, and indinavir, is
contraindicated. For full prescribing and safety information,
including boxed warning, visit www.vaprisol.com.
About Vibativ® (telavancin) for Injection
Vibativ is a patented, FDA approved injectable anti-infective
for the treatment of certain serious bacterial infections including
hospital-acquired and ventilator-associated bacterial pneumonia and
complicated skin and skin structure infections. It addresses a
range of Gram-positive bacterial pathogens, including those that
are considered difficult-to-treat and multidrug-resistant.
Intravenous unfractionated heparin sodium is contraindicated with
Vibativ administration due to artificially prolonged activated
partial thromboplastin time (aPTT) test results for up to 18 hours
after Vibativ administration. Vibativ is contraindicated in
patients with a known hypersensitivity to telavancin. For more
information, please visit www.vibativ.com.
FORWARD LOOKING STATEMENTS:
This press release 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. Forward-looking
statements include, among other things, statements regarding the
company's intent, belief or expectations, and can be identified by
the use of terminology such as "may," "will," "expect," "believe,"
"intend," "plan," "estimate," "should," "seek," "anticipate," "look
forward" and other comparable terms or the negative thereof. 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 operation results. These factors
include market conditions, competition, an inability of
manufacturers to produce Cumberland's products on a timely basis,
failure of manufacturers to comply with regulations applicable to
pharmaceutical manufacturers, natural disasters, public health
epidemics, maintaining an effective sales and marketing
infrastructure, and other events beyond the company's control as
more fully discussed in its most recent 10-K as filed with the SEC,
as well as the Company's other filings with the SEC from time to
time. 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,
2022
|
|
December 31,
2021
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
19,541,538
|
|
$
27,040,816
|
|
Accounts receivable,
net
|
15,086,763
|
|
6,877,346
|
|
Inventories,
net
|
10,647,529
|
|
8,429,882
|
|
Prepaid and other
current assets
|
3,738,842
|
|
3,339,969
|
|
Total current
assets
|
49,014,672
|
|
45,688,013
|
|
Non-current
inventories
|
7,497,356
|
|
9,048,567
|
|
Property and equipment,
net
|
1,284,880
|
|
442,635
|
|
Intangible assets,
net
|
29,048,043
|
|
23,954,475
|
|
Goodwill
|
1,932,876
|
|
882,000
|
|
Operating lease
right-of-use assets
|
219,850
|
|
1,024,200
|
|
Other assets
|
2,426,996
|
|
3,419,908
|
|
Total
assets
|
$
91,424,673
|
|
$
84,459,798
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
11,510,756
|
|
$
9,640,980
|
|
Operating lease
current liabilities
|
229,605
|
|
969,677
|
|
Other current
liabilities
|
14,213,982
|
|
8,668,303
|
|
Total current
liabilities
|
25,954,343
|
|
19,278,960
|
|
Revolving line of
credit
|
17,700,000
|
|
15,000,000
|
|
Operating lease
non-current liabilities
|
—
|
|
90,016
|
|
Other long-term
liabilities
|
9,279,208
|
|
7,488,844
|
|
Total
liabilities
|
52,933,551
|
|
41,857,820
|
|
Commitments and
contingencies
|
|
|
|
|
Equity:
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Common stock—no par
value; 100,000,000 shares authorized; 14,436,583
and 14,742,754 shares issued and outstanding as of September 30,
2022 and
December 31, 2021, respectively
|
47,532,375
|
|
48,452,906
|
|
Retained earnings
(deficit)
|
(8,768,112)
|
|
(5,638,600)
|
|
Total shareholders'
equity
|
38,764,263
|
|
42,814,306
|
|
Noncontrolling
interests
|
(273,141)
|
|
(212,328)
|
|
Total
equity
|
38,491,122
|
|
42,601,978
|
|
Total liabilities and
equity
|
$
91,424,673
|
|
$
84,459,798
|
|
CUMBERLAND
PHARMACEUTICALS INC. AND SUBSIDIARIES
Condensed
Consolidated Statements of
Operations
(Unaudited)
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net revenues
|
$
11,413,072
|
|
$
8,072,540
|
|
$ 32,887,269
|
|
$ 27,665,182
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of products
sold
|
2,224,443
|
|
1,328,027
|
|
6,468,212
|
|
5,486,005
|
|
Selling and
marketing
|
4,110,397
|
|
3,800,288
|
|
13,281,511
|
|
11,709,445
|
|
Research and
development
|
1,714,254
|
|
1,453,873
|
|
5,283,083
|
|
4,071,638
|
|
General and
administrative
|
2,166,118
|
|
2,039,799
|
|
6,672,442
|
|
6,367,438
|
|
Amortization
|
1,486,448
|
|
1,013,948
|
|
4,609,146
|
|
3,354,080
|
|
Total costs and
expenses
|
11,701,660
|
|
9,635,935
|
|
36,314,394
|
|
30,988,606
|
|
Operating income
(loss)
|
(288,588)
|
|
(1,563,395)
|
|
(3,427,125)
|
|
(3,323,424)
|
|
Interest
income
|
21,602
|
|
7,394
|
|
52,709
|
|
19,411
|
|
Other income
|
—
|
|
—
|
|
—
|
|
2,187,140
|
|
Other income - gain on
insurance proceeds
|
—
|
|
—
|
|
611,330
|
|
—
|
|
Interest
expense
|
(149,340)
|
|
(20,021)
|
|
(406,539)
|
|
(70,297)
|
|
Income (loss) from
continuing operations before
income taxes
|
(416,326)
|
|
(1,576,022)
|
|
(3,169,625)
|
|
(1,187,170)
|
|
Income tax (expense)
benefit
|
(6,900)
|
|
(7,458)
|
|
(20,700)
|
|
(22,375)
|
|
Net income (loss) from
continuing operations
|
(423,226)
|
|
(1,583,480)
|
|
(3,190,325)
|
|
(1,209,545)
|
|
Discontinued
operations
|
—
|
|
496,787
|
|
—
|
|
1,491,004
|
|
Net income
(loss)
|
(423,226)
|
|
(1,086,693)
|
|
(3,190,325)
|
|
281,459
|
|
Net (income) loss at
subsidiary attributable to
noncontrolling interests
|
14,587
|
|
31,415
|
|
60,813
|
|
58,651
|
|
Net loss attributable
to common shareholders
|
$
(408,639)
|
|
$
(1,055,278)
|
|
$
(3,129,512)
|
|
$
340,110
|
|
Earnings (loss) per
share attributable to common
shareholders
|
|
|
|
|
|
|
|
|
- Continuing
operations - basic
|
$
(0.03)
|
|
$
(0.10)
|
|
$
(0.21)
|
|
$
(0.08)
|
|
- Discontinued
operations - basic
|
—
|
|
0.03
|
|
—
|
|
0.10
|
|
$
(0.03)
|
|
$
(0.07)
|
|
$
(0.21)
|
|
$
0.02
|
|
|
|
|
|
|
|
|
|
- Continuing
operations - diluted
|
$
(0.03)
|
|
$
(0.10)
|
|
$
(0.21)
|
|
$
(0.08)
|
|
- Discontinued
operations - diluted
|
—
|
|
0.03
|
|
—
|
|
0.10
|
|
$
(0.03)
|
|
$
(0.07)
|
|
$
(0.21)
|
|
$
0.02
|
|
Weighted-average shares
outstanding
|
|
|
|
|
|
|
|
|
- basic
|
14,477,478
|
|
14,880,887
|
|
14,618,975
|
|
14,939,919
|
|
- diluted
|
14,477,478
|
|
14,880,887
|
|
14,618,975
|
|
15,139,904
|
|
CUMBERLAND
PHARMACEUTICALS INC. AND SUBSIDIARIES
Condensed
Consolidated Statements of Cash
Flows
(Unaudited)
|
|
|
Nine months ended
September 30,
|
|
2022
|
|
2021
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
(loss)
|
$
(3,190,325)
|
|
$
281,459
|
|
Discontinued
operations
|
—
|
|
1,491,004
|
|
Net income(loss) from
continuing operations
|
(3,190,325)
|
|
(1,209,545)
|
|
Adjustments to
reconcile net income (loss) from continuing operations to net
cash provided by (used in) operating activities:
|
|
|
|
|
Depreciation and
amortization expense
|
4,816,630
|
|
3,529,245
|
|
Share-based
compensation
|
320,598
|
|
517,081
|
|
Decrease
(increase) in non-cash contingent consideration
|
1,051,908
|
|
(632,646)
|
|
Decrease (increase) in
cash surrender value of life insurance policies over
premiums paid
|
708,293
|
|
(52,070)
|
|
Noncash interest
expense
|
7,608
|
|
33,943
|
|
Gain on forgiveness of
debt
|
—
|
|
(2,187,140)
|
|
Gain on receivable of
life insurance policy proceeds
|
(611,330)
|
|
—
|
|
Net changes in assets
and liabilities affecting operating activities:
|
|
|
|
|
Accounts
receivable
|
(8,038,722)
|
|
2,527,183
|
|
Inventories
|
1,338,881
|
|
2,555,393
|
|
Other current assets
and other assets
|
4,355,396
|
|
1,627,350
|
|
Accounts payable and
other current liabilities
|
7,322,935
|
|
(2,873,596)
|
|
Other long-term
liabilities
|
(2,472,453)
|
|
(943,439)
|
|
Net cash provided by
operating activities from continuing operations
|
5,609,419
|
|
2,891,759
|
|
Discontinued
operations
|
—
|
|
1,491,004
|
|
Net cash provided by
operating activities
|
5,609,419
|
|
4,382,763
|
|
Cash flows from
investing activities:
|
|
|
|
|
Additions to property
and equipment
|
(1,049,730)
|
|
(94,485)
|
|
Settlement of patent
litigation
|
21,757
|
|
—
|
|
Life insurance policy
proceeds received
|
877,597
|
|
—
|
|
Note receivable
investment funding
|
—
|
|
(200,000)
|
|
Cash paid for
acquisitions
|
(13,500,000)
|
|
—
|
|
Additions to
intangibles
|
(177,362)
|
|
(180,613)
|
|
Net cash (used in)
investing activities
|
(13,827,738)
|
|
(475,098)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Borrowings on line of
credit
|
46,700,000
|
|
45,000,000
|
|
Repayments on line of
credit
|
(44,000,000)
|
|
(45,000,000)
|
|
Cash payment of
contingent consideration
|
(1,117,576)
|
|
(1,792,573)
|
|
Repurchase of common
shares
|
(863,383)
|
|
(1,025,657)
|
|
Net cash provided by
(used in) financing activities
|
719,041
|
|
(2,818,230)
|
|
Net increase
(decrease) in cash and cash equivalents
|
(7,499,278)
|
|
1,089,435
|
|
Cash and cash
equivalents at beginning of period
|
$
27,040,816
|
|
$
24,753,796
|
|
Cash and cash
equivalents at end of period
|
$
19,541,538
|
|
$
25,843,231
|
|
CUMBERLAND
PHARMACEUTICALS INC. AND SUBSIDIARIES
Reconciliation of Net
Income (loss) Attributable to Common Shareholders to Adjusted
Earnings (loss) and
Adjusted Diluted Earnings (loss) Per Share
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Three months
ended
September 30,
|
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
|
Earnings
impact
|
|
Earnings per
share impact
|
|
Earnings
impact
|
|
Earnings per
share impact
|
|
Net income (loss)
attributable to common shareholders
|
|
$
(408,639)
|
|
$
(0.03)
|
|
$
(1,055,278)
|
|
$
(0.07)
|
|
Less: Net (income) loss
at subsidiary attributable to
noncontrolling interests
|
|
14,587
|
|
—
|
|
31,415
|
|
—
|
|
Net income
(loss)
|
|
(423,226)
|
|
(0.03)
|
|
(1,086,693)
|
|
(0.07)
|
|
Discontinued
operations
|
|
—
|
|
—
|
|
496,787
|
|
0.03
|
|
Net income (loss) from
continuing operations
|
|
(423,226)
|
|
(0.03)
|
|
(1,583,480)
|
|
(0.11)
|
|
Adjustments to net
income (loss) from continuing
operations
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
6,900
|
|
—
|
|
7,458
|
|
—
|
|
Depreciation and
amortization
|
|
1,544,545
|
|
0.11
|
|
1,073,669
|
|
0.07
|
|
Share-based
compensation (a)
|
|
188,450
|
|
0.01
|
|
162,167
|
|
0.01
|
|
Interest
income
|
|
(21,602)
|
|
—
|
|
(7,394)
|
|
—
|
|
Interest
expense
|
|
149,340
|
|
0.01
|
|
20,021
|
|
—
|
|
Adjusted Earnings
(loss) from continuing operations
and Adjusted Diluted Earnings (loss) from continuing
operations Per Share
|
|
$ 1,444,407
|
|
$
0.10
|
|
$ (327,559)
|
|
$
(0.02)
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares outstanding:
|
|
|
|
14,687,915
|
|
|
|
14,880,887
|
|
|
Nine months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
|
Earnings
impact
|
|
Earnings per
share impact
|
|
Earnings
impact
|
|
Earnings per
share impact
|
|
Net income (loss)
attributable to common shareholders
|
|
$
(3,129,512)
|
|
$
(0.21)
|
|
$
340,110
|
|
$
0.02
|
|
Less: Net (income) loss
at subsidiary attributable to
noncontrolling interests
|
|
60,813
|
|
—
|
|
58,651
|
|
—
|
|
Net income
(loss)
|
|
(3,190,325)
|
|
(0.21)
|
|
281,459
|
|
0.02
|
|
Discontinued
operations
|
|
—
|
|
—
|
|
1,491,004
|
|
0.10
|
|
Net income (loss) from
continuing operations
|
|
(3,190,325)
|
|
(0.21)
|
|
(1,209,545)
|
|
(0.08)
|
|
Adjustments to net
income (loss) from continuing
operations
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
20,700
|
|
—
|
|
22,375
|
|
—
|
|
Depreciation and
amortization
|
|
4,816,630
|
|
0.32
|
|
3,529,245
|
|
0.23
|
|
Share-based
compensation (a)
|
|
320,598
|
|
0.02
|
|
517,081
|
|
0.03
|
|
Gain on forgiveness of
debt (b)
|
|
—
|
|
—
|
|
(2,187,140)
|
|
(0.14)
|
|
Gain on insurance
proceeds (c)
|
|
(611,330)
|
|
(0.04)
|
|
—
|
|
—
|
|
Interest
income
|
|
(52,709)
|
|
—
|
|
(19,411)
|
|
—
|
|
Interest
expense
|
|
406,539
|
|
0.03
|
|
70,297
|
|
—
|
|
Adjusted Earnings
(loss) from continuing operations
and Adjusted Diluted Earnings (loss) from continuing
operations Per Share
|
|
$ 1,710,103
|
|
$
0.12
|
|
$
722,902
|
|
$
0.05
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares outstanding:
|
|
|
|
14,861,812
|
|
|
|
15,139,904
|
The Company provided the above adjusted supplemental financial
performance measures, which are considered "non-GAAP" financial
measures under applicable SEC 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 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 discontinued operations, income taxes, depreciation
and amortization expense, share-based compensation, nonrecurring
gains and interest income and interest expense.
(a) Represents the share-based compensation of
Cumberland.
(b) Represents the forgiveness of the PPP Loan
by the Small Business Administration.
(c) Represents the gain in insurance
proceeds.
- Adjusted Diluted Earnings (loss) from continuing operations
Per Share: Adjusted Earnings (loss) from continuing operations
divided by diluted weighted-average common shares outstanding.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/cumberland-pharmaceuticals-reports-41-revenue-growth-301672116.html
SOURCE Cumberland Pharmaceuticals Inc.
