Cumberland Pharmaceuticals Reports Third Quarter 2024 Financial Results and Company Update
Cumberland Pharmaceuticals announced its Q3 2024 financial results and company updates. The company achieved $9.1 million in revenues for the quarter, with $27 million year-to-date. Key product revenues included $3.6 million from Kristalose and $2.6 million from Sancuso. Operating expenses were $10.8 million, leading to a net loss of $1.5 million or $0.11 per share. The balance sheet shows $76.7 million in total assets and $52.3 million in liabilities.
Notable updates include a real-world study favoring Caldolor, expanded Medicaid coverage for Kristalose, and international partnerships for Vibativ. The company’s DMD program received both FDA Orphan Drug and Rare Pediatric Disease designations. Cumberland's Emerging Technologies program is advancing new treatments, including a promising delirium treatment and a diagnostic for internal bleeding.
Cumberland Pharmaceuticals ha annunciato i risultati finanziari del terzo trimestre 2024 e gli aggiornamenti aziendali. L'azienda ha raggiunto 9,1 milioni di dollari di ricavi per il trimestre, con 27 milioni di dollari da inizio anno. I ricavi dei principali prodotti includono 3,6 milioni di dollari da Kristalose e 2,6 milioni di dollari da Sancuso. Le spese operative sono state di 10,8 milioni di dollari, portando a una perdita netta di 1,5 milioni di dollari o 0,11 dollari per azione. Il bilancio mostra 76,7 milioni di dollari in attivi totali e 52,3 milioni di dollari in passività.
Tra gli aggiornamenti importanti ci sono un studio del mondo reale a favore di Caldolor, l'ampliamento della copertura Medicaid per Kristalose e le partnership internazionali per Vibativ. Il programma DMD dell'azienda ha ricevuto le designazioni di farmaco orfano FDA e malattia pediatrica rara. Il programma Tecnologie Emergenti di Cumberland sta sviluppando nuovi trattamenti, inclusi un promettente trattamento per il delirium e un diagnostico per le emorragie interne.
Cumberland Pharmaceuticals anunció sus resultados financieros del tercer trimestre de 2024 y las actualizaciones de la empresa. La compañía logró 9,1 millones de dólares en ingresos para el trimestre, con 27 millones de dólares acumulados hasta la fecha. Los ingresos de los productos clave incluyeron 3,6 millones de dólares de Kristalose y 2,6 millones de dólares de Sancuso. Los gastos operativos fueron de 10,8 millones de dólares, lo que llevó a una pérdida neta de 1,5 millones de dólares o 0,11 dólares por acción. El balance muestra 76,7 millones de dólares en activos totales y 52,3 millones de dólares en pasivos.
Las actualizaciones notables incluyen un estudio del mundo real a favor de Caldolor, la expansión de la cobertura de Medicaid para Kristalose y asociaciones internacionales para Vibativ. El programa DMD de la compañía recibió las designaciones de medicamento huérfano de la FDA y enfermedad pediátrica rara. El programa de Tecnologías Emergentes de Cumberland está avanzando en nuevos tratamientos, incluyendo un prometedor tratamiento para el delirium y un diagnóstico para hemorragias internas.
Cumberland Pharmaceuticals는 2024년 3분기 재무 결과 및 회사 업데이트를 발표했습니다. 이 회사는 이번 분기에 910만 달러의 매출을 올렸고, 올해 누적 2700만 달러에 달했습니다. 주요 제품 매출 가운데 크리스탈로스에서 360만 달러, 산쿠소에서 260만 달러를 기록했습니다. 운영 비용은 1080만 달러였으며, 이로 인해 150만 달러의 순손실 또는 주당 0.11 달러의 손실이 발생했습니다. 대차대조표는 7670만 달러의 총자산과 5230만 달러의 부채를 보여줍니다.
주목할 만한 업데이트로는 칼돌로르에 유리한 실제 연구, 크리스탈로스에 대한 메디케이드 보장의 확대, 그리고 비바티브에 대한 국제 파트너십이 있습니다. 회사의 DMD 프로그램은 FDA의 고아약 및 희귀 소아 질환 지정을 받았습니다. Cumberland의 신기술 프로그램은 유망한 섬망 치료와 내부 출혈 진단을 포함한 새로운 치료법을 개발하고 있습니다.
Cumberland Pharmaceuticals a annoncé ses résultats financiers du troisième trimestre 2024 et des mises à jour de l'entreprise. La société a réalisé 9,1 millions de dollars de revenus pour le trimestre, avec 27 millions de dollars depuis le début de l'année. Les revenus des principaux produits comprenaient 3,6 millions de dollars de Kristalose et 2,6 millions de dollars de Sancuso. Les dépenses d'exploitation se sont élevées à 10,8 millions de dollars, entraînant une perte nette de 1,5 million de dollars ou 0,11 dollar par action. Le bilan montre 76,7 millions de dollars d'actifs totaux et 52,3 millions de dollars de passifs.
Parmi les mises à jour notables figurent une étude du monde réel en faveur de Caldolor, l'extension de la couverture Medicaid pour Kristalose, et des partenariats internationaux pour Vibativ. Le programme DMD de l'entreprise a reçu à la fois les désignations FDA de médicament orphelin et de maladie pédiatrique rare. Le programme des Technologies Émergentes de Cumberland fait avancer de nouveaux traitements, y compris un traitement prometteur pour le delirium et un diagnostic pour les saignements internes.
Cumberland Pharmaceuticals hat seine Finanzergebnisse für das 3. Quartal 2024 und Unternehmensaktualisierungen bekannt gegeben. Das Unternehmen erzielte 9,1 Millionen Dollar Umsatz im Quartal und 27 Millionen Dollar seit Jahresbeginn. Die Einnahmen aus wichtigen Produkten betrugen 3,6 Millionen Dollar aus Kristalose und 2,6 Millionen Dollar aus Sancuso. Die Betriebsausgaben lagen bei 10,8 Millionen Dollar, was zu einem Nettoverlust von 1,5 Millionen Dollar oder 0,11 Dollar pro Aktie führte. Die Bilanz zeigt 76,7 Millionen Dollar in Gesam Vermögenswerten und 52,3 Millionen Dollar in Verbindlichkeiten.
Zu den bemerkenswerten Aktualisierungen gehören eine Studie aus der realen Welt, die Caldolor begünstigt, erweiterte Medicaid-Abdeckung für Kristalose und internationale Partnerschaften für Vibativ. Das DMD-Programm des Unternehmens erhielt sowohl die FDA-Orphan-Drug- als auch die Rare-Pediatric-Disease-Designierungen. Cumberland's Emerging Technologies-Programm entwickelt neue Behandlungen, darunter eine vielversprechende Behandlung für Delirium sowie ein Diagnoseverfahren für innere Blutungen.
- Q3 2024 revenues of $9.1 million.
- Year-to-date revenues of $27 million.
- FDA Orphan Drug and Rare Pediatric Disease designations for DMD program.
- New real-world study favors Caldolor over ketorolac.
- Net loss of $1.5 million for Q3 2024.
- Total operating expenses of $10.8 million for Q3 2024.
Insights
Cumberland Pharmaceuticals' Q3 2024 results reveal concerning financial metrics. The company reported
The real-world study of 150,000 patients comparing Caldolor to ketorolac demonstrates significant clinical advantages, potentially positioning Cumberland for market share growth. The FDA's dual designations (Orphan Drug and Rare Pediatric Disease) for the DMD program are important regulatory milestones. The ifetroban pipeline, tested in nearly 1,400 subjects, shows promise across multiple rare diseases. The WHO's report on antimicrobial resistance validates Vibativ's market position. These developments strengthen Cumberland's competitive position in specialty pharmaceuticals.
– New Real World Study of 150,000 Patients Favors Caldolor over ketorolac –
– DMD Program Receives FDA Orphan Drug & Rare Pediatric Disease Designations –
"With a number of developments and growth opportunities underway at Cumberland, we remain optimistic about our future outlook," said A.J. Kazimi, CEO of Cumberland Pharmaceuticals. "As we move into the remainder of the year, our dedicated team will continue in their efforts – working together to provide unique products that improve the quality of patient care."
RECENT DEVELOPMENTS INCLUDE:
New Real-World Study Favors Caldolor over ketorolac
Earlier this week, Cumberland announced the publication of new real-world outcomes research comparing Caldolor to its key competitor – ketorolac.
This extensive analysis evaluated 17 million patient records and selected over 150,000 adult and pediatric patients who receive either product.
The results provide compelling evidence that Caldolor is associated with a significantly reduced incidence of adverse drug reactions and also improved healthcare utilization.
Cumberland believes these important new findings underscore Caldolor's potential to improve patient care by reducing their treatment complications, while also delivering potential savings for healthcare systems through decreased hospital readmissions and shortened treatment times.
State Medicaid Coverage for Kristalose® Grows
Cumberland's prescription-strength laxative, Kristalose, continues to perform best in states where the company has Medicaid coverage, such as
New WHO Report Highlights Need for Antibiotics like Vibativ®
The World Health Organization ("WHO") issued a new report that found that antimicrobial resistance is becoming an urgent global health and socioeconomic crisis. Further, it noted that the worldwide rise in antibiotic resistance poses a significant threat, diminishing the effectiveness of many common antibiotics against widespread bacterial infections. Unlike many antibiotics that are losing the battle to fight bacteria, Vibativ's unique dual method of action was specifically designed to address drug-resistant bacteria, and Cumberland believes it has the potential to help many patients amid the growing antibiotic resistance crisis.
Expanded Patient Support for Sancuso®
During the third quarter, Cumberland launched new patient support initiatives for Sancuso, its oncology medication, which broaden access to the product, allowing more patients to try it and experience its benefits. The company introduced a new HUB services capability to provide enhanced, comprehensive patient access and assistance throughout their treatment journey.
International Partnerships
In September 2024, Cumberland's partner for Caldolor in
Cumberland also continues to work with its partners in their efforts to register and launch Vibativ in several international markets such as
Cumberland Emerging Technologies Program Developments
Through its work at Cumberland Emerging Technologies, Inc. ("CET"), Cumberland continues to build a long-term pipeline of innovative new biopharmaceutical products and has recently shared several new developments.
CET is advancing a new treatment for delirium, a growing neurological condition affecting critical care patients. Results from the Phase II MENDING Trial, conducted with Vanderbilt University Medical Center and funded by the National Institute of Health ("NIH"), demonstrate promising outcomes for the treatment's safety and efficacy. The trial's primary safety endpoint – the safety of this new treatment – was met, with the treatment generally well-tolerated among patients. Additionally, findings showed reductions in delirium days, antipsychotic, opioid and sedative use, and coma occurrences, which, while not statistically significant due to the small sample size, were deemed clinically meaningful. CET is now planning to discuss a potential pivotal study with the FDA to further evaluate the proprietary formulation tested in the pilot study.
Additionally, CET has announced a new product, developed in collaboration with
Product Pipeline
Cumberland has been evaluating its ifetroban product candidate, a selective thromboxane-prostanoid receptor antagonist, in a series of clinical studies. It has now been dosed in nearly 1,400 subjects and has been found to be safe and well tolerated in healthy volunteers and various patient populations. The company has three Phase II clinical programs underway evaluating ifetroban in patients with 1) Systemic Sclerosis or scleroderma, a debilitating autoimmune disorder characterized by diffuse fibrosis of the skin and internal organs, 2) cardiomyopathy associated with Duchenne Muscular Dystrophy, a rare, fatal, genetic neuromuscular disease that results in deterioration of the skeletal, heart, and lung muscles and 3) Idiopathic Pulmonary Fibrosis, the most common form of progressive fibrosing interstitial lung disease. This third program is the company's newest, with enrollment now underway.
The company has applied for two FDA designations for our Duchenne Muscular Dystrophy product candidate:
1) Orphan Drug Designation, which is granted to products that show promise in the treatment, prevention or diagnosis of rare – or orphan – diseases; such designation can result in a number of benefits associated with the FDA review process including exclusivity after approval of the product.
2) Rare Pediatric Disease Designation, which is given to products intended to prevent or treat serious or life-threatening diseases that primarily affect children from birth to 18 years of age. Upon FDA approval, this designation may result in a priority review voucher from the FDA for a different product.
Cumberland subsequently was informed by the FDA that both the Orphan Drug Designation and the Rare Pediatric Disease Designation requests for this candidate have been granted.
Cumberland expects to close two ifetroban studies this year and will share results from all studies underway before deciding on the best development path for ifetroban, its first new chemical entity, which the company believes has the potential to benefit many patients with orphan diseases that represent unmet medical needs.
FINANCIAL RESULTS
Net Revenue: For the three months ended September 30, 2024, net revenues were
Year-to-date 2024 net revenues were
Operating Expenses: Total operating expenses were
Net Income (Loss): The net loss for the third quarter of 2024 was
Adjusted Earnings: Adjusted loss for the third quarter of 2024 was
Balance Sheet:
At September 30, 2024, Cumberland had
EARNINGS REPORT CALL:
A conference call will be held on November 7, 2024, at 4:30 p.m. Eastern Time to provide a Company update to discuss the financial results. To participate in the call, please register at:
https://register.vevent.com/register/BIdd190691b1df432e9f1f65383f53b384.
Registered participants can dial in from their phone using a dial-in and PIN number that will be provided to them. Alternatively, they can choose a "Call Me" option to have the system automatically call them at the start of the conference.
A replay of the call will be available for one year and can be accessed via Cumberland's website or by visiting: https://edge.media-server.com/mmc/p/cm7m7ea3.
ABOUT CUMBERLAND PHARMACEUTICALS
Cumberland Pharmaceuticals Inc. is the largest biopharmaceutical company founded and headquartered in
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;
- 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 Idiopathic Pulmonary Fibrosis.
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 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
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 Sancuso® (granisetron) Transdermal System
Sancuso is the only skin patch approved by the FDA 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 prevent CINV 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) 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.
ABOUT CUMBERLAND EMERGING TECHNOLOGIES:
Cumberland Emerging Technologies, Inc. (www.cet-fund.com) is a joint initiative between Cumberland Pharmaceuticals Inc.,
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 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 macroeconomic conditions, including rising interest rates and inflation, 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 annual report on Form 10-K as filed with the
CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) | |||
September 30, 2024 | December 31, 2023 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 17,464,754 | $ 18,321,624 | |
Accounts receivable, net | 11,310,625 | 9,758,176 | |
Inventories, net | 4,509,669 | 4,609,362 | |
Prepaid and other current assets | 1,951,358 | 3,025,248 | |
Total current assets | 35,236,406 | 35,714,410 | |
Non-current inventories | 11,831,927 | 12,804,529 | |
Property and equipment, net | 312,031 | 367,903 | |
Intangible assets, net | 19,415,232 | 22,607,918 | |
Goodwill | 914,000 | 914,000 | |
Operating lease right-of-use assets | 6,208,411 | 6,674,394 | |
Other assets | 2,829,506 | 2,692,921 | |
Total assets | $ 76,747,513 | $ 81,776,075 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 12,057,712 | $ 14,037,629 | |
Operating lease current liabilities | 391,688 | 348,092 | |
Current portion of revolving line of credit | 5,988,920 | — | |
Other current liabilities | 12,649,195 | 13,596,528 | |
Total current liabilities | 31,087,515 | 27,982,249 | |
Revolving line of credit - long term | 10,102,672 | 12,784,144 | |
Operating lease non-current liabilities | 4,997,212 | 5,296,247 | |
Other long-term liabilities | 6,090,722 | 6,453,566 | |
Total liabilities | 52,278,121 | 52,516,206 | |
Equity: | |||
Shareholders' equity: | |||
Common stock—no par value; 100,000,000 shares authorized; 14,010,736 and 14,121,833 | 46,843,203 | 47,091,602 | |
Accumulated deficit | (22,064,117) | (17,488,161) | |
Total shareholders' equity | 24,779,086 | 29,603,441 | |
Noncontrolling interests | (309,694) | (343,572) | |
Total equity | 24,469,392 | 29,259,869 | |
Total liabilities and equity | $ 76,747,513 | $ 81,776,075 | |
CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) | |||||||
Three months ended | Nine months ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net revenues | $ 9,085,826 | $ 10,085,926 | $ 27,432,376 | $ 30,199,441 | |||
Costs and expenses: | |||||||
Cost of products sold | 1,323,013 | 1,765,590 | 4,609,499 | 4,536,628 | |||
Selling and marketing | 4,397,480 | 4,743,142 | 12,800,469 | 13,692,535 | |||
Research and development | 1,306,095 | 1,924,768 | 3,523,535 | 4,569,476 | |||
General and administrative | 2,675,380 | 2,343,855 | 7,800,435 | 7,212,731 | |||
Amortization | 1,078,290 | 1,175,174 | 3,288,808 | 3,563,493 | |||
Total costs and expenses | 10,780,258 | 11,952,529 | 32,022,746 | 33,574,863 | |||
Operating loss | (1,694,432) | (1,866,603) | (4,590,370) | (3,375,422) | |||
Interest income | 69,190 | 98,603 | 227,777 | 205,854 | |||
Other income | — | — | — | 2,828,871 | |||
Other income - settlement | — | 475,000 | — | 475,000 | |||
Other income - insurance proceeds | 237,089 | 346,800 | 237,089 | 346,800 | |||
Interest expense | (137,374) | (110,081) | (382,247) | (489,069) | |||
Loss before income taxes | (1,525,527) | (1,056,281) | (4,507,751) | (7,966) | |||
Income tax expense | (11,442) | (6,938) | (34,327) | (20,813) | |||
Net loss | (1,536,969) | (1,063,219) | (4,542,078) | (28,779) | |||
Net loss (income) at subsidiary attributable to noncontrolling interests | (7,112) | 13,921 | (33,878) | 43,865 | |||
Net income (loss) attributable to common shareholders | $ (1,544,081) | $ (1,049,298) | $ (4,575,956) | $ 15,086 | |||
Earnings (loss) per share attributable to common shareholders | |||||||
- basic | $ (0.11) | $ (0.07) | $ (0.32) | $ — | |||
- diluted | $ (0.11) | $ (0.07) | $ (0.32) | $ — | |||
Weighted-average shares outstanding | |||||||
- basic | 14,052,754 | 14,277,229 | 14,089,496 | 14,343,560 | |||
- diluted | 14,052,754 | 14,277,229 | 14,089,496 | 14,521,600 | |||
CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) | |||
Nine months ended September 30, | |||
2024 | 2023 | ||
Cash flows from operating activities: | |||
Net loss | $ (4,542,078) | $ (28,779) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization expense | 3,406,166 | 3,702,687 | |
Amortization of operating lease right-of-use assets | 855,553 | 709,021 | |
Share-based compensation | 227,083 | 271,146 | |
Decrease in non-cash contingent consideration | (936,072) | (1,017,712) | |
Decrease (Increase) of life insurance policies over premiums paid | (180,081) | 16,357 | |
Noncash interest expense | 19,377 | 11,713 | |
Loss on disposal of assets | 2,691 | — | |
Life insurance proceeds | (237,089) | (346,800) | |
Net changes in assets and liabilities affecting operating activities: | |||
Accounts receivable | (1,552,449) | 890,361 | |
Inventories | 1,072,295 | 418,355 | |
Other current assets and other assets | 1,022,718 | 1,053,432 | |
Operating lease liabilities | (645,009) | (2,201,773) | |
Accounts payable and other current liabilities | (667,065) | 1,903,021 | |
Other long-term liabilities | (362,844) | (327,329) | |
Net cash provided by (used in) operating activities | (2,516,804) | 5,053,700 | |
Cash flows from investing activities: | |||
Additions to property and equipment | (64,178) | (232,595) | |
Life insurance policy proceeds received | 237,556 | — | |
Additions to intangible assets | (88,727) | (133,739) | |
Net cash provided by (used in) investing activities | 84,651 | (366,334) | |
Cash flows from financing activities: | |||
Borrowings on line of credit | 32,988,920 | 23,775,000 | |
Payments on line of credit | (29,681,472) | (27,051,875) | |
Cash settlement of contingent consideration | (1,251,499) | (2,108,933) | |
Payments made in connection with repurchase of common shares | (480,666) | (551,563) | |
Net cash provided by (used in) financing activities | 1,575,283 | (5,937,371) | |
Net decrease in cash and cash equivalents | (856,870) | (1,250,005) | |
Cash and cash equivalents at beginning of period | $ 18,321,624 | $ 19,757,970 | |
Cash and cash equivalents at end of period | $ 17,464,754 | $ 18,507,965 | |
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 | Three months ended | |||||||
2024 | 2024 | 2023 | 2023 | |||||
Earnings | Earnings per | Earnings | Earnings per | |||||
Net loss attributable to common shareholders | $ (1,544,081) | $ (0.11) | $ (1,049,298) | $ (0.07) | ||||
Less: Net (income) loss at subsidiary attributable to noncontrolling interests | (7,112) | — | 13,921 | — | ||||
Net loss | (1,536,969) | (0.11) | (1,063,219) | (0.07) | ||||
Adjustments to net loss | ||||||||
Income tax expense | 11,442 | — | 6,938 | — | ||||
Depreciation and amortization | 1,116,036 | 0.08 | 1,221,837 | 0.08 | ||||
Share-based compensation (a) | 76,371 | 0.01 | 83,112 | 0.01 | ||||
Interest income | (69,190) | — | (98,603) | (0.01) | ||||
Interest expense | 137,374 | 0.01 | 110,081 | 0.01 | ||||
Adjusted earnings (loss) and adjusted diluted earnings (loss) per share | $ (264,936) | $ (0.02) | $ 260,146 | $ 0.02 | ||||
Diluted weighted-average common shares outstanding: | 14,052,754 | 14,422,274 | ||||||
Nine months ended | Nine months ended | |||||||
2024 | 2024 | 2023 | 2023 | |||||
Earnings | Earnings per | Earnings | Earnings per | |||||
Net income (loss) attributable to common shareholders | $ (4,575,956) | $ (0.32) | $ 15,086 | $ — | ||||
Less: Net (income) loss at subsidiary attributable to noncontrolling interests | (33,878) | — | 43,865 | — | ||||
Net loss | (4,542,078) | (0.32) | (28,779) | — | ||||
Adjustments to net loss | ||||||||
Income tax expense | 34,327 | — | 20,813 | — | ||||
Depreciation and amortization | 3,406,166 | 0.24 | 3,702,687 | 0.25 | ||||
Share-based compensation (a) | 227,083 | 0.02 | 271,146 | 0.02 | ||||
Interest income | (227,777) | (0.02) | (205,854) | (0.01) | ||||
Interest expense | 382,247 | 0.03 | 489,069 | 0.03 | ||||
Adjusted earnings (loss) and adjusted diluted earnings (loss) per share | $ (720,032) | $ (0.05) | $ 4,249,082 | $ 0.29 | ||||
Diluted weighted-average common shares outstanding: | 14,089,496 | 14,559,687 | ||||||
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 income taxes, depreciation and amortization expense, share-based compensation, 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.
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SOURCE Cumberland Pharmaceuticals Inc.
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