Lannett Company, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended March 31, 2018. For the quarter, the company reported net sales of $174,386,000 against $165,720,000 a year ago. Operating income was $33,280,000 against $43,637,000 a year ago. Income before income tax was $10,495,000 against $22,266,000 a year ago. Net income attributable to the company was $12,770,000 or $0.33 per diluted share against $14,929,000 or $0.40 per diluted share a year ago. Non-GAAP adjusted operating income was $59,843,000 against $59,898,000 a year ago. Non-GAAP adjusted income before income tax was $43,700,000 against $44,215,000 a year ago. Non-GAAP adjusted net income attributable to the company was $30,467,000 or $0.80 per diluted share against $29,199,000 or $0.77 per diluted share a year ago.

For the nine months, the company reported net sales of $513,652,000 against $498,223,000 a year ago. Operating income was $121,094,000 against $57,637,000 a year ago. Income before income tax was $63,335,000 against loss before income tax of $8,276,000 a year ago. Net income attributable to the company was $40,049,000 or $1.05 per diluted share against net loss attributable to the company of $6,307,000 or $0.17 per basic and diluted share a year ago. Non-GAAP adjusted operating income was $175,637,000 against $189,911,000 a year ago. Non-GAAP adjusted income before income tax was $130,034,000 against $139,959,000 a year ago. Non-GAAP adjusted net income attributable to the company was $93,770,000 or $2.46 per diluted share against $92,733,000 or $2.46 per diluted share a year ago.

Based on its current outlook, the company's fiscal 2018 full year net sales and adjusted profitability is unchanged, although individual elements of its financial guidance from February 7, 2018 have been revised. The company expects GAAP net sales of $685 million to $695 million, updated from $680 million to $700 million; adjusted net sales of $685 million to $695 million, updated from $680 million to $700 million; GAAP gross margin of approximately 42%, down from 42% to 43%; adjusted gross margin of approximately 48%, down from 48% to 49%; interest expense and other of $79 million to $80 million, up from $77 million to $78 million; adjusted interest expense and other of $62 million to $63 million, unchanged; GAAP effective tax rate of approximately 35%, down from approximately 39%; adjusted effective tax rate of approximately 28%, up from approximately 27%; capital expenditures of approximately $50 million, changed from the range of $45 million to $55 million; and adjusted capital expenditures of $50 million, changed from the range of $45 million to $55 million. EBITDA to be in the range of $245 million to $255 million.

For the year 2019, the company expected gross margin in fiscal 2019 will be on that lower end much like in the second half of fiscal 2018. Tax rate to be in the range of 22%.