SOURCE: Nutrition 21

Nutrition 21

November 12, 2010 14:35 ET

Nutrition 21 Announces Financial Results for 1st Quarter Fiscal Year 2011

PURCHASE, NY--(Marketwire - November 12, 2010) - Nutrition 21, Inc. (OTCBB: NXXI), the developer and marketer of clinically substantiated nutritional ingredients for dietary supplements, foods and beverages, and animal nutrition, today announced financial results for the first quarter ended September 30, 2010 for the fiscal year ending June 30, 2011.

The Company reported total revenues of $1.6 million for the first quarter ended September 30, 2010, compared to $2.3 million in the corresponding quarter a year ago. Loss from continuing operations for the first quarter of fiscal year 2011 was $0.9 million, or ($0.1) per diluted common share, compared to a net loss of $0.7 million, or $(0.01) per diluted common share, in the corresponding quarter a year ago. Net income from discontinued operations for the quarter ended September 30, 2010 was $21 thousand or $ 0.00 per diluted common share, compared to net income of $26 thousand or $0.00 per diluted common share in the comparable period a year ago.

Michael Zeher, president and chief executive officer, said, "We are pleased that our operating income from continuing operations has been positive since the divestiture of the Branded Products Group in the second quarter of 2010, and that we continue to deliver positive EBITDA (Earnings before interest, taxes, depreciation and amortization). In short, we think that the refocusing of our energies on our core ingredients business is working according to plan. We look forward to developing new business opportunities as we continue to work on achieving consistent profit and revenue growth."

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 for the year ended June 30, 2010. 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.

                            NUTRITION 21, INC.
                        CONSOLIDATED BALANCE SHEETS
                          (Dollars in thousands)

                                                September 30,   June 30,
                                                    2010          2010
                                                ------------- -------------
                                                 (unaudited)    (Note 1)

ASSETS
Current assets:
  Cash and cash equivalents                     $       1,200 $         935
  Accounts receivable, net                                867         1,495
  Other receivables, net                                  259           224
  Inventories, net                                        145           173
  Other current assets                                    115           104
Property and equipment, net                                68            57
Patents, trademarks and other intangibles, net            521           588
Other assets                                              309           104
                                                ------------- -------------
TOTAL ASSETS                                    $       3,484 $       3,962
                                                ============= =============


LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable                                $        536  $        719
Accrued expenses                                         986         1,321
8% Series J convertible preferred stock subject
 to mandatory redemption                              15,570        15,068
                                                ------------  ------------

     Total liabilities                                17,092        17,108
                                                ------------  ------------
Stockholders' Deficit                                (13,608)      (13,146)
                                                ------------  ------------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT    $      3,484  $      3,962
                                                ============  ============





                            NUTRITION 21, INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
              (in thousands, except share and per share data)
                                (unaudited)

                                                    Three Months Ended
                                                      September 30,
                                                    2010          2009
                                                ------------  ------------

Net sales                                       $      1,555  $      2,216

Other revenues                                            66            94
                                                ------------  ------------

Total Revenues                                         1,621         2,310
                                                ------------  ------------

Costs and Expenses

Cost of Revenues                                         517           650

General and Administrative                               667           980

Advertising and Promotion                                228           166

Research and Development                                 101            79

Depreciation and Amortization                             84           105
                                                ------------  ------------

Total Costs and Expenses                               1,597         1,980
                                                ------------  ------------

Operating Income                                          24           330

Interest expense, net                                   (943)         (999)
                                                ------------  ------------

Loss from Continuing Operations                         (919)         (669)

Discontinued Operations, net                              21            26
                                                ------------  ------------

Net Loss                                        $       (898) $       (643)
                                                ============  ============

Basic and diluted loss per common share         $      (0.01) $      (0.01)
                                                ============  ============

Weighted average number of common shares -
 basic and diluted                                   123,488        72,455
                                                ============  ============

Contact Information

  • CONTACT:
    Nutrition 21, Inc.
    Alan Kirschbaum
    914-701-4500