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Cumberland Pharmaceuticals Reports Second Quarter 2010 Financial Results
Date:8/16/2010

f Caldolor in Australia. If approved, Phebra will handle all ongoing regulatory requirements, product marketing, distribution and sales in the territory. Cumberland maintains responsibility for product formulation, development and manufacturing, and receives upfront and milestone payments as well as royalties on future sales in exchange for the product license.

Field Sales Force Conversion

In July 2010, Cumberland began the process of converting its field sales force, which promotes Kristalose and Caldolor, from contract representatives with Ventiv Health to Cumberland employees. The contractual relationship with Ventiv provided Cumberland with a right to convert the sales force to Cumberland employees at its discretion. In 2007, Cumberland converted its hospital sales force from its contractual status in the same manner. The Company expects to complete the field sales force conversion in September 2010 and is pleased to welcome these individuals as Cumberland employees.

SUPPLEMENTAL FINANCIAL INFORMATIONThe following table presents a reconciliation of Cumberland's net income to EBITDA and adjusted EBITDA. The Company defines EBITDA as net income plus interest, income tax, depreciation and amortization, and presents these measures to assist investors in evaluating Cumberland's operating performance and comparing the Company's results with those of other companies. EBITDA and adjusted EBITDA should not be considered in isolation from or as a substitute for net income.Three Months Ended June 30,20102009Net income $
279,777 $
287,415 Income tax expense374,461 232,637 Depreciation & amortization232,344 202,282 Interest (income) expense, net355,622 74,064 EBITDA,242,204 796,398 Adjustments:   Non-cash stock compensation204,343 ,164,383 Adjusted EBITDA $
,446,547 $
,960,781 Six Months Ended June 30,20102009Net income $
593,275 $
,493,266 Income tax expense586,198 ,063,696 Depreciation & amortization463,676 3
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SOURCE Cumberland Pharmaceuticals Inc.
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