Nutrition 21 Announces Fiscal Second Quarter 2010 Financial Results
Sale of Retail and Direct Response Businesses Completed
PURCHASE, N.Y., Feb. 10 /PRNewswire-FirstCall/ -- Nutrition 21, Inc. (OTC Bulletin Board: NXXI), the developer and marketer of nutritional ingredients for the dietary supplement and functional food and beverage markets, today announced financial results for the second quarter ended December 31, 2009 for fiscal year 2010.
The Company reported total revenues from continuing operations of $2.1 million for the second quarter ended December 31, 2009, compared to $1.6 million in the corresponding quarter a year ago. Net loss from continuing operations for the second quarter this year was $0.6 million, or $(0.01) per diluted common share, compared to net loss of $1.4 million, or $(0.02) per diluted common share, in the corresponding second quarter a year ago.
For the six months ended December 31, 2009, the Company reported total revenues from continuing operations of $4.4 million compared to $3.5 million in the comparable period a year ago. Net loss from continuing operations for the six months ended December 31, 2009 was $1.1 million or ($0.02) per diluted common share, compared to $2.4 million or ($0.4) per diluted common share in the corresponding period a year ago.
The improvement in continuing operations is due primarily to the Company's continuing emphasis on expense control and strong chromium picolinate sales, primarily for human consumption.
The Company completed the sale of its retail and direct response businesses during the quarter ended December 31, 2009. Net loss from discontinued operations was $1.6 million or ($ 0.02) per diluted common share for the quarter ended December 31, 2009, compared to a gain of $1.5 million or $0.2 per diluted common share in the comparable period a year ago. For the six months ended December 31, 2009, the Company reported a net loss from discontinued operations of $1.7 million or ($ 0.02) per diluted common share compared to a gain of $2.7 million or $0.4 per diluted common share in the comparable period a year ago.
Michael Zeher, president and chief executive officer, said, "The sale of the retail and direct response businesses allows us to refocus our energies on our core Ingredients business. There are many nutritional products, supplements, pharmaceuticals, and animal feed products that can be enhanced by the addition of our proprietary ingredients. We look forward to developing new business opportunities both here in the U.S. and abroad. We're pleased to note that our chromium picolinate product was recently approved for use as an ingredient in food supplements in the European Union. We continue to work on our goal of achieving profitability."
About Nutrition 21
Nutrition 21, Inc., headquartered in Purchase, NY, is a nutritional bioscience company and holds over 30 issued and pending patents associated with chromium picolinate as well as combinations of chromium compounds with other dietary supplement ingredients. Its ingredients are sold to leading dietary supplement, and functional food and beverage manufacturers. For more information please visit http://www.nutrition21.com.
Safe Harbor Provision
This press release may contain certain forward-looking statements. The words "believe," "expect," "anticipate" and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based largely on the company's current expectations and are subject to a number of risks and uncertainties, including without limitation: the effect of the expiration of patents; regulatory issues; uncertainty in the outcomes of clinical trials; changes in external market factors; changes in the company's business or growth strategy or an inability to execute its strategy due to changes in its industry or the economy generally; the emergence of new or growing competitors; various other competitive factors; and other risks and uncertainties indicated from time to time in the company's filings with the Securities and Exchange Commission, including its Form 10-K/A for the year ended June 30, 2009. Actual results could differ materially from the results referred to in the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the results referred to in the forward-looking statements contained in this press release will in fact occur. Additionally, the company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that may bear upon forward-looking statements.
Financial Tables to follow.
CONTACT: |
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Nutrition 21, Inc. |
Lytham Partners, LLC |
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Alan Kirschbaum |
Joe Diaz, Joe Dorame, Robert Blum |
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914-701-4500 |
602-889-9700 |
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NUTRITION 21, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(unaudited)
December 31, June 30,
2009 2009
---- ----
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $264 $1,373
Accounts receivable, net 1,214 2,752
Other receivables, net 119 516
Inventories, net 171 3,878
Other current assets 208 467
Property and equipment, net 41 46
Patents, trademarks and other intangibles, net 720 766
Goodwill and other intangibles with indefinite
lives -- 3,636
Other assets 541 1,389
--- ---
TOTAL ASSETS $3,278 $14,823
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LIABILITIES AND STOCKHOLDERS' DEFICIT
Short-term borrowings $-- $4,457
Accounts payable 884 4,439
Accrued expenses 1,458 2,218
Deferred income -- 361
Deferred income taxes -- 1,200
8% Series J convertible preferred stock subject
to mandatory redemption 14,113 13,218
------ ------
Total liabilities 16,455 25,893
------ ------
Stockholders' Deficit (13,177) (11,070)
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $3,278 $14,823
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NUTRITION 21, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Six Months
Ended Ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Net sales $1,977 $1,491 $4,194 $3,341
Other revenues 81 77 176 128
--- --- --- ---
Total Revenues 2,058 1,568 4,370 3,469
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Costs and Expenses
Cost of Revenues 431 403 955 821
Advertising and Promotion 185 140 351 279
General and Administrative 882 961 1,862 1,759
Research and Development 102 92 181 173
Depreciation and
Amortization 59 284 164 646
--- --- --- ---
Total Costs
and Expenses 1,659 1,880 3,513 3,678
----- ----- ----- -----
Operating Income (Loss) 399 (312) 857 (209)
Interest income
(expense), net (939) (1,101) (1,938) (2,199)
---- ------ ------ ------
(Loss) from Continuing
Operations (540) (1,413) (1,081) (2,408)
Discontinued Operations,
net (1,639) 1,515 (1,741) 2,724
------ ----- ------ -----
Net (loss) income $(2,179) $102 $(2,822) $316
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Basic and diluted
(loss) earnings per
common share $(0.03) $0.00 $(0.04) $0.00
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Weighted average
number of common
shares – basic and
diluted 75,022,746 65,379,399 74,389,404 64,949,221
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SOURCE Nutrition 21, Inc.
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