Lannett Company, Inc. (NYSE:LCI) Q2 2019 Earnings Conference Call Transcript

Feb 06, 2019 • 04:30 pm ET

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Lannett Company, Inc. (NYSE:LCI) Q2 2019 Earnings Conference Call Transcript

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Operator
Operator

Welcome to the Lannett Company's Fiscal 2019 Second Quarter Financial Results Conference Call. My name is Adrienne, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later we'll conduct a question-and-answer session.

(Operator Instructions)

Please note this conference is being recorded. I'll now turn the call over to Robert Jaffe, Investor Relations for Lannett. Robert Jaffe, you may begin.

Executive
Robert Jaffe

Thanks, Adrienne. Good afternoon, everyone, and thank you for joining us today to discuss Lannett Company's Fiscal 2019 Second Quarter Financial Results. On the call today are Tim Crew, Chief Executive Officer; and Marty Galvan, the Company's Chief Financial Officer. This call is being broadcast live at www.lannett.com. A playback will be available for at least three months on Lannett's website.

I would like to make the cautionary statement and remind everyone that all of the information discussed on today's call is covered under the Safe Harbor provisions of the Litigation Reform Act. The Company's discussion will include forward-looking information, reflecting management's current forecasts of certain aspects of the Company's future, and actual results could differ materially from those stated or implied.

In addition, during the course of this call, we refer to non-GAAP financial measures that are not prepared in accordance with US generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. Investors are encouraged to review Lannett's press release announcing its fiscal 2019 second quarter financial results for the Company's reasons for including non-GAAP financial measures in its earnings announcement.

The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is also contained in the Company's earnings press release issued earlier today.

Please note that we have included additional information regarding the Company's recent and planned product launches, cost reduction plans and other financial and product information on Lannett's website. The information can be found under News Releases in the Investor Relations section of the website.

This afternoon, Tim will provide brief remarks on the Company's financial results as well as comments on recent developments and associated initiatives. Then Marty will discuss the financial results in more detail, including the Company's updated fiscal 2019 guidance. We will then open the call for questions.

With that said, I will now turn the call over to Tim Crew. Tim?

Executive
Timothy C. Crew

Thanks, Robert. Good afternoon, everyone.

We are very pleased to report record net sales in the fiscal 2019 second quarter. Net sales and adjusted net income for the quarter were solidly higher than expectations. In addition, our cash balance continued to increase, and as of December 31, exceeded $160 million. And as of this morning, the cash balance was comfortably more than $200 million.

To paraphrase Mark Twain, the news of our Company's travails has been greatly exaggerated. More to the point, we are feeling quite good about the current state of our business, the progress we've made over the last several quarters and our future prospects. On last quarter's call, we spoke