-Company Records Net Income of $256,000 as Company Reports Record Revenue of $7.3 Million-
IRVINE, Calif., May 12, 2016 (GLOBE NEWSWIRE) -- ChromaDex Corp. (NASDAQ:CDXC), an innovator of proprietary health, wellness, and nutritional ingredients, that creates science-based solutions for dietary supplement, food and beverage, skin care, sports nutrition, and pharmaceutical products, announced today record revenue for the first quarter ended April 2, 2016.
Results of operations for the three months ended April 2, 2016
For the three months ended April 2, 2016 (“Q1 2016”), ChromaDex reported record net sales of $7.3 million, an increase of 39% as compared to $5.3 million for the three months ended April 4, 2015 (“Q1 2015”). This increase was largely due to increased sales in its ingredients business segment, driven by its lead ingredient, NIAGEN® branded nicotinamide riboside. The ingredients segment generated record net sales of $4.6 million for Q1 2016, an increase of 72%, compared to $2.7 million for Q1 2015.
The core standards and services segment posted record sales of $2.6 million for Q1 2016, an increase of 12% as compared to $2.3 million for Q1 2015. Net sales for the scientific and regulatory consulting segment were $148,000 a decrease of 47% as compared to $281,000 for Q1 2015 as this segment put a further emphasis on intercompany work supporting our ingredients segment.
The net income attributable to common stock holders for Q1 2016 was $256,000 or $0.01 per share as compared to a net loss of ($1,026,000) or ($0.03) per share for Q1 2015.
Adjusted EBITDA for Q1 2016 was $872,000, compared to adjusted EBITDA of ($113,000) for Q1 2015. ChromaDex defines Adjusted EBITDA as net income (loss) adjusted for income tax, interest, depreciation, amortization and non-cash stock compensation costs. The Basic and Diluted Adjusted EBITDA per share for Q1 2016 was $0.02 versus ($0.00) for Q1 2015.
Frank Jaksch, Jr., CEO and co-founder of ChromaDex, commented, “We are happy to announce record revenue and net income for Q1 as our continued improvement in the financial performance of the Company continues to pay off.”
Jaksch continued, “The successful execution of the up-listing to the NASDAQ Capital Market was a tremendous milestone for the Company. Since we began trading on the NASDAQ Capital Market we have seen an increase in daily volume and have opened doors to a broader investor base. This increase in visibility is key as we look forward to building relationships with additional institutional investors and gaining access to analyst coverage."
Recent 2016 Company highlights include:
- In April 2016, the Company announced that the Company’s common stock trades on the NASDAQ Capital Market.
- In April 2016, the Company announced that NECTAR7 has released a new product, NIAGEN® & COLLAGEN featuring the Company’s lead ingredient, NIAGEN®.
- In April 2016, Thorne Research and the Company announced a clinical study to assess nicotinamide riboside on brain NAD+ in college football players.
- In March 2016, the Company announced the initiation of the second human clinical trial for its patented ingredient, NIAGEN® (Nicotinamide Riboside - NR).
- In February 2016, the Company announced the enrollment of the first patients for a collaborative human clinical study of NIAGEN® (nicotinamide riboside – NR) at the University of Copenhagen.
- In February 2016, the Company announced it has been named to the 2016 OTCQX® Best 50, a ranking of top performing companies traded on the OTCQX Best Market last year.
- In January 2016, the Company announced a retail commercialization deal with BPI Sports for its patented lead ingredient, NIAGEN® (Nicotinamide Riboside - NR).
- In January 2016, Specialty Nutrition Group, Inc. announced the release of NIAGEN® in GNC stores nationwide, as part of its innovation partnership with the world's largest retailer of nutrition products. NIAGEN® will be marketed under the F1RST® brand of patented and research-backed single-ingredient products in GNC stores.
- In January 2016, the Company announced that an independent scientific panel of experts determined that NIAGEN®, ChromaDex’s patented and proprietary lead ingredient, is Generally Recognized As Safe (GRAS).
ChromaDex management will host an investor conference call to discuss the quarterly results and provide a general business update on Monday, May 16, at 11am EDT.
Participants should call in at least 10 minutes prior to the call. The dial-in information is as follows:
U.S. Toll-Free Number: (866) 327-8118
International Dial-In Number: (678) 509-7526
Conference ID: 10239097
The webcast replay will be available after the completion of the call on the Investor Relations section of the Company website, www.chromadex.com.
The earnings press release, and its accompanying financial exhibits, will be available on the Investor Relations section of the Company website, www.chromadex.com.
About ChromaDex:
ChromaDex leverages its complementary business units to discover, acquire, develop and commercialize patented and proprietary ingredient technologies that address the dietary supplement, food, beverage, skin care and pharmaceutical markets. In addition to our ingredient technologies unit, we also have business units focused on natural product fine chemicals (known as "phytochemicals"), chemistry and analytical testing services, and product regulatory and safety consulting (known as Spherix Consulting). As a result of our relationships with leading universities and research institutions, we are able to discover and license early stage, IP-backed ingredient technologies. We then utilize our in-house chemistry, regulatory and safety consulting business units to develop commercially viable ingredients. Our ingredient portfolio is backed with clinical and scientific research, as well as extensive IP protection. Our portfolio of patented ingredient technologies includes NIAGEN® nicotinamide riboside; pTeroPure® pterostilbene; PURENERGY®, a caffeine-pTeroPure® co-crystal; ProC3G®, a natural black rice containing cyanidin-3-glucoside; IMMULINA™, a spirulina extract; and Purple Corn derived from a proprietary non-GMO purple corn hybrid which contains an extraordinarily high level of anthocyanins. To learn more about ChromaDex, please visit www.ChromaDex.com.
Forward-Looking Statements:
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as “expects”, “anticipates”, “intends”, “estimates”, “plans”, “potential”, “possible”, “probable”, “believes”, “seeks”, “may”, “will”, “should”, “could” or the negative of such terms or other similar expressions. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company’s business. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2016, the Company’s Quarter Reports on Form 10-Q and other filings submitted by the Company to the SEC, copies of which may be obtained from the SEC’s website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.
Statements in this press release have not been evaluated by the Food and Drug Administration. Products or ingredients are not intended to diagnose, treat, cure or prevent any disease.
| ChromaDex Corporation and Subsidiaries | |||||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||
| For the Three-Month Periods Ended April 2, 2016 and April 4, 2015 | |||||||||||
| April 2, 2016 | April 4, 2015 | ||||||||||
| Sales, net | $ | 7,331,945 | $ | 5,260,971 | |||||||
| Cost of sales | 3,880,526 | 3,333,347 | |||||||||
| Gross profit | 3,451,419 | 1,927,624 | |||||||||
| Operating expenses: | |||||||||||
| Sales and marketing | 544,722 | 585,777 | |||||||||
| Research and development | 464,072 | 121,095 | |||||||||
| General and administrative | 1,988,559 | 2,126,836 | |||||||||
| Operating expenses | 2,997,353 | 2,833,708 | |||||||||
| Operating income (loss) | 454,066 | (906,084 | ) | ||||||||
| Nonoperating income (expense): | |||||||||||
| Interest income | 794 | 718 | |||||||||
| Interest expense | (188,495 | ) | (120,149 | ) | |||||||
| Nonoperating expenses | (187,701 | ) | (119,431 | ) | |||||||
| Income (loss) before taxes | 266,365 | (1,025,515 | ) | ||||||||
| Provision for taxes | (10,740 | ) | - | ||||||||
| Net income (loss) | $ | 255,625 | $ | (1,025,515 | ) | ||||||
| Basic earnings (loss) per common share | $ | 0.01 | $ | (0.03 | ) | ||||||
| Diluted earnings (loss) per common share | $ | 0.01 | $ | (0.03 | ) | ||||||
| Basic weighted average common shares outstanding | 36,414,041 | 35,732,866 | |||||||||
| Diluted weighted average common shares outstanding | 37,472,579 | 35,732,866 | |||||||||
| See Notes to Condensed Consolidated Financial Statements. | |||||||||||
| Consolidated Statements of Operations | Effects of Charges associated with Interest, Tax, Depreciation, | Consolidated Statements of Operations, Adjusted EBITDA | ||||||||||||||||||||||||
| (US GAAP) | Amortization and Share-based Compensation Expense | Excluding Interest, Tax, Depreciation, Amortization and | ||||||||||||||||||||||||
| Share-based Compensation (Non-GAAP Presentation) | ||||||||||||||||||||||||||
| For the Three-Month Periods Ended April 2, 2016 and April 4, 2015 | For the Three-Month Periods Ended April 2, 2016 and April 4, 2015 | For the Three-Month Periods Ended April 2, 2016 and April 4, 2015 | ||||||||||||||||||||||||
| April 2, 2016 | April 4, 2015 | April 2, 2016 | April 4, 2015 | April 2, 2016 | April 4, 2015 | |||||||||||||||||||||
| Sales | $ | 7,331,945 | $ | 5,260,971 | Sales | $ | - | $ | - | Sales | $ | 7,331,945 | $ | 5,260,971 | ||||||||||||
| Cost of sales | 3,880,526 | 3,333,347 | Cost of sales | (73,703 | ) | (59,635 | ) | Cost of sales | 3,806,823 | 3,273,712 | ||||||||||||||||
| Gross profit | 3,451,419 | 1,927,624 | Gross profit | 73,703 | 59,635 | Gross profit | 3,525,122 | 1,987,259 | ||||||||||||||||||
| Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||||||
| Sales and marketing | 544,722 | 585,777 | Sales and marketing | - | - | Sales and marketing | 544,722 | 585,777 | ||||||||||||||||||
| Research and development | 464,072 | 121,095 | Research and development | - | - | Research and development | 464,072 | 121,095 | ||||||||||||||||||
| General and administrative | 1,988,559 | 2,126,836 | General and administrative | (344,149 | ) | (733,300 | ) | General and administrative | 1,644,410 | 1,393,536 | ||||||||||||||||
| Operating expenses | 2,997,353 | 2,833,708 | Operating expenses | (344,149 | ) | (733,300 | ) | Operating expenses | 2,653,204 | 2,100,408 | ||||||||||||||||
| Operating income (loss) | 454,066 | (906,084 | ) | Operating income | 417,852 | 792,935 | Operating income (loss) | 871,918 | (113,149 | ) | ||||||||||||||||
| Nonoperating income (expense): | Nonoperating income: | Nonoperating income (expense): | ||||||||||||||||||||||||
| Interest income | 794 | 718 | Interest income | (794 | ) | (718 | ) | Interest income | - | - | ||||||||||||||||
| Interest expense | (188,495 | ) | (120,149 | ) | Interest expense | 188,495 | 120,149 | Interest expense | - | - | ||||||||||||||||
| Nonoperating expense | (187,701 | ) | (119,431 | ) | Nonoperating income | 187,701 | 119,431 | Nonoperating expense | - | - | ||||||||||||||||
| Income (loss) before taxes | 266,365 | (1,025,515 | ) | Income before taxes | 605,553 | 912,366 | Income (loss) before taxes | 871,918 | (113,149 | ) | ||||||||||||||||
| Provision for taxes | (10,740 | ) | - | Provision for taxes | 10,740 | - | Provision for taxes | - | - | |||||||||||||||||
| Net income (loss) | $ | 255,625 | $ | (1,025,515 | ) | Effects of adjusted EBITDA | $ | 616,293 | $ | 912,366 | Adjusted EBITDA | $ | 871,918 | $ | (113,149 | ) | ||||||||||
| Basic earnings (loss) per common share | $ | 0.01 | $ | (0.03 | ) | Basic effects of adjusted EBITDA per common share | $ | 0.02 | $ | 0.03 | Basic adjusted EBITDA per common share | $ | 0.02 | $ | (0.00 | ) | ||||||||||
| Diluted earnings (loss) per common share | $ | 0.01 | $ | (0.03 | ) | Diluted effects of adjusted EBITDA per common share | $ | 0.02 | $ | 0.03 | Diluted adjusted EBITDA per common share | $ | 0.02 | $ | (0.00 | ) | ||||||||||
| Weighted average common shares outstanding | Weighted average common shares outstanding | Weighted average common shares outstanding | ||||||||||||||||||||||||
| Basic | 36,414,041 | 35,732,866 | Basic | 36,414,041 | 35,732,866 | Basic | 36,414,041 | 35,732,866 | ||||||||||||||||||
| Diluted | 37,472,579 | 35,732,866 | Diluted | 37,472,579 | 35,732,866 | Diluted | 37,472,579 | 35,732,866 | ||||||||||||||||||