Cumberland Pharmaceuticals Reports Third Quarter 2012 Financial Results

   Cumberland Pharmaceuticals Reports Third Quarter 2012 Financial Results

- Caldolor® Pediatric Pain Study Completed

PR Newswire

NASHVILLE, Tenn., Nov. 1, 2012

NASHVILLE, Tenn., Nov. 1, 2012 /PRNewswire/ --Cumberland Pharmaceuticals Inc.
(NASDAQ: CPIX), a specialty pharmaceutical company focused on hospital acute
care and gastroenterology markets, today announced third quarter 2012
financial results.

Net Revenues: For the three months ended September 30, 2012, net revenues
were $12.5 million, compared to $13.1 million in the prior year period. Prior
year revenues were boosted by an increase in Acetadote^® volume due to
shortages of competitive products.

For the nine months ended September 30, 2012, net revenues were $35.2 million
compared with $38.1 million for the nine months ended September 30, 2011.

Operating Expenses: Total operating expenses for the three months ended
September 30, 2012, were $9.6 million compared with $10.0 million for the
prior year period. This decrease was driven by lower selling and marketing
expenses associated with our new commercial strategy, partially offset by an
increase in R&D expenses.

For the nine months ended September 30, 2012, total operating expenses were
$29.6 million, compared to $30.0 million for the nine months endedSeptember
30, 2011.

Net Income: Net income attributable to common shareholders for the three
months ended September 30, 2012, was $1.9 million, or $0.10 per diluted share,
up 11% from $0.09 per diluted share for the prior year period.

For the nine months ended September 30, 2012, net income attributable to
common shareholders was $4.0 million, or $0.20 per diluted share, compared
with $4.7 million, or $0.23 per diluted share, for the same period in 2011.

Cash Flow: For the nine months ended September 30, 2012, operating cash flows
were $5.1 million, compared to $7.7 million for the nine months ended
September 30, 2011.

Balance Sheet: As of September 30, 2012, Cumberland had total assets of $96.9
million. Cash and securities as of September 30, 2012 were $69.4 million, with
approximately $50.8 million in cash and equivalents and $18.6 million in
marketable securities.

"We continue to remain in a strong financial position with three marketed
products, attractive margins and continued double digit earnings growth," said
A.J. Kazimi, Chief Executive Officer of Cumberland Pharmaceuticals. "We
achieved another quarter of steady financial results and we remain on track to
hit our 2012 guidance."

Company Highlights

Caldolor^®

In September 2012, Cumberland announced the top-line results from a clinical
pediatric pain study evaluating the safety and analgesic efficacy of Caldolor®
(ibuprofen) Injection in treating pain in tonsillectomy patients ranging from
6 to 16 years old.

When administered prior to surgery, Caldolor use was associated with a
statistically significant reduction in the number of post-operative narcotic
doses required in patients in the efficacy evaluable population. There were
also consistent trends toward reduction in pain scores and the incidence of
nausea and vomiting in patients receiving Caldolor. Importantly, no safety
concerns were observed during this study.

This study, in combination with the ongoing work to evaluate the treatment of
fever in children, will be used to pursue a pediatric indication for Caldolor.

Conference Call and Webcast

A conference call and live Internet webcast will be held on Thursday, November
1, 2012, at 4:30 p.m. Eastern Time to discuss the Company's third quarter 2012
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 50483291. 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 acquisition, development and commercialization of branded prescription
products. The Company's primary target markets include hospital acute care and
gastroenterology. Cumberland's marketed products include Acetadote^®
(acetylcysteine) Injection, for the treatment of acetaminophen poisoning,
Caldolor^® (ibuprofen) Injection, the first injectable treatment for pain and
fever approved in the United States, and Kristalose^® (lactulose) for Oral
Solution, a prescription laxative. Cumberland is dedicated to providing
innovative products that improve quality of care for patients. For more
information, please visit the Company's website at www.cumberlandpharma.com.

About Acetadote

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 the
only injectable product 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.net.

About Caldolor

Caldolor is indicated for the management of mild to moderate pain, for
management of moderate to severe pain as an adjunct to opioid analgesics, and
for the reduction of fever in adults. 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 asthma,
urticarial, or 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

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.

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. 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 Form 10-K filed with the SEC on March
7, 2012 and Form 10-Q for the quarter ended March 31, 2012 to be filed with
the SEC on or before May 15, 2012. 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,   December 31,
                                               2012            2011
ASSETS
Current assets:
Cash and cash equivalents                      $ 50,801,571   $  70,599,146
Marketable securities                          18,559,476      -
Accounts receivable, net of allowances         5,467,455       7,082,890
Inventories                                    7,511,641       5,774,694
Other current assets                           4,451,786       3,851,337
Total current assets                           86,791,929      87,308,067
Property and equipment, net                    1,120,591       1,119,339
Intangible assets, net                         8,367,508       7,023,064
Other assets                                   653,768         67,846
Total assets                                   $ 96,933,796   $  95,518,316
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable                               $  4,228,230  $   1,513,548
Other current liabilities                      4,429,904       5,086,400
Total current liabilities                      8,658,134       6,599,948
Revolving line of credit                       4,359,951       4,859,951
Other long-term liabilities                    583,790         1,223,148
Total liabilities                              13,601,875      12,683,047
Commitments and contingencies
Equity:
Shareholders' equity:
Common stock - no par value; 100,000,000
shares authorized;
19,173,846 and 20,020,535 shares issued and
outstanding
as of September 30, 2012 and December 31,      66,756,556      70,272,155
2011, respectively
Retained earnings                              16,693,654      12,656,662
Total shareholders' equity                     83,450,210      82,928,817
Noncontrolling interests                       (118,289)       (93,548)
Total equity                                   83,331,921      82,835,269
Total liabilities and equity                   $ 96,933,796   $  95,518,316



CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Net and Comprehensive Income
(Unaudited)
                    Three months ended September  Nine months ended September
                    30,                           30,
                    2012           2011           2012           2011
Net revenues        $           $           $            $ 
                    12,531,719     13,054,278     35,154,871    38,110,946
Costs and expenses:
Cost of products    921,862        1,341,256      2,873,417      3,411,354
sold
Selling and         4,914,551      5,060,546      15,387,068     16,253,574
marketing
Research and        1,696,592      1,233,025      4,653,957      3,269,746
development
General and         1,901,986      2,149,364      6,331,109      6,522,874
administrative
Amortization of
product
license right       117,565        171,727        344,211        515,180
Total costs and     9,552,556      9,955,918      29,589,762     29,972,728
expenses
Operating income    2,979,163      3,098,360      5,565,109      8,138,218
Interest income     107,719        52,459         256,074        147,628
Interest expense    (17,222)       (33,390)       (56,369)       (329,037)
Income before       3,069,660      3,117,429      5,764,814      7,956,809
income taxes
Income tax expense  (1,207,504)    (1,278,472)    (1,752,563)    (3,238,421)
Net income          1,862,156      1,838,957      4,012,251      4,718,388
Net loss at
subsidiary
attributable to
noncontrolling      7,338          8,455          24,741         27,803
interests
Net income
attributable to
common shareholders $          $          $           $   
                    1,869,494      1,847,412      4,036,992     4,746,191
Earnings per share attributable to common
shareholders
- basic             $        $        $        $      
                       0.10        0.09       0.20        0.23
- diluted           $        $        $        $      
                       0.10        0.09       0.20        0.23
Weighted-average shares
outstanding
- basic             19,432,715     20,327,537     19,737,216     20,414,593
- diluted           19,670,741     20,534,647     19,969,051     20,657,567



CUMBERLAND PHARMACEUTICALS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
                                      Nine Months Ended September 30,
                                      2012                2011
Cash flows from operating activities:
Net income                            $    4,012,251   $    4,718,388
Adjustments to reconcile net income
to net cash flows from
operating activities:
Depreciation and amortization expense 664,369             801,483
Stock-based compensation -            101,038             119,313
nonemployees
Stock-based compensation - employees  455,666             467,850
Excess tax benefit derived from       (2,176,222)         (2,657,259)
exercise of stock options
Noncash interest expense              16,050              131,469
Net unrealized investment gains       (99,286)            -
Net changes in assets and liabilities
affecting
operating activities:
Accounts receivable                   1,615,435           640,083
Inventory                             (1,736,947)         809,243
Other current assets and other assets (1,228,382)         (1,240,700)
Accounts payable and other accrued    4,178,708           3,911,450
liabilities
Other long-term liabilities           (655,201)           (9,262)
Net cash provided by operating        5,147,479           7,692,058
activities
Cash flows from investing activities:
Additions to property and equipment   (293,693)           (241,885)
Purchases of marketable securities    (18,849,492)        -
Proceeds from marketable securities   389,302             -
Additions to intangibles              (1,621,100)         (140,356)
Net cash used in investment           (20,374,983)        (382,241)
activities
Cash flows from financing activities:
Principal payments on note payable    -                   (5,333,333)
Net (repayments) borrowings on line   (500,000)           2,750,000
of credit
Proceeds from exercise of stock       580,101             681,634
options
Excess tax benefit derived from       2,176,222           2,657,259
exercise of stock options
Repurchase of common shares           (6,826,394)         (2,884,540)
Net cash used in financing activities (4,570,071)         (2,128,980)
Net (decrease) increase in cash and   (19,797,575)        5,180,837
cash equivalents
Cash and cash equivalents at          70,599,146          65,893,970
beginning of period
Cash and cash equivalents at end of   $   50,801,571    $   71,074,807
period
Supplemental disclosure of cash flow
information:
Non-cash investing and financing
activities:
Net change in unpaid additions to
intangibles, property
and equipment                         $      95,272  $         -

SOURCE Cumberland Pharmaceuticals Inc.

Website: http://www.cumberlandpharma.com
Contact: Investor, Elizabeth Davis, Corporate Relations, +1-615-255-0068,
edavis@cumberlandpharma.com; Media, Rebecca Kirkham, Lovell Communications,
+1-615-297-7766, rebecca@lovell.com
 
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