PURCHASE, NY--(Marketwire - September 22, 2010) - Nutrition 21, Inc. (
OTCBB:
NXXI), the
developer and marketer of nutritional ingredients for the dietary
supplement and functional food and beverage markets, today announced
financial results for the fourth quarter and the full fiscal year ended
June 30, 2010.
The Company reported total revenues from continuing operations of $2.7
million for the fourth quarter ended June 30, 2010, compared to $2.2
million in the corresponding quarter a year ago. Net loss from continuing
operations for the fourth quarter this year was $43 thousand, or $0.0 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.
For the year ended June 30, 2010, the Company reported total revenues from
continuing operations of $8.8 million compared to $7.7 million in the
comparable period a year ago. The net loss from continuing operations for
the year ended June 30, 2010 was $1.8 million or ($0.02) per diluted common
share, compared to $4.2 million or ($0.6) per diluted common share in the
corresponding period a year ago. EBITDA (earnings before interest, taxes,
depreciation and amortization) from continuing operations for the fiscal
year ended June 30, 2010 was $2.3 million compared to $1.1 million in the
same period a year ago.
The Company completed the sale of its Branded Products Group during the
quarter ended December 31, 2009, which has been recorded as a discontinued
operation. The improvement in financial results is due to the sale of the
discontinued operation, as well as to the Company's emphasis on expense
controls, continued strong sales, primarily of chromium picolinate for
human consumption, and the introduction and initial shipment of new
products.
Net income from discontinued operations for the quarter ended June 30, 2010
was $45 thousand or ($0.00) per diluted common share, compared to a net
loss of $20.0 million or ($0.30) per diluted common share in the comparable
period a year ago. The fourth quarter of fiscal year 2009 included a $17.5
million non-cash impairment charge relating to goodwill and intangible
assets that have indefinite lives.
For the year ended June 30, 2010, the Company reported a net loss from
discontinued operations of $1.8 million or ($0.02) per diluted common share
compared to a net loss of $16.6 million or ($0.25) per diluted common share
in the comparable period a year ago. Last year's loss included a $17.5
million non-cash charge relating to goodwill and intangible assets that
have indefinite lives.
Michael Zeher, president and chief executive officer, said, "We are pleased
to report that for the year ended June 30, 2010, our operating income was
$1.9 million or 22% of total revenues, compared to a prior year operating
loss of $16 thousand. Looking forward to fiscal year 2011, we anticipate
that our operations will continue to improve. However, we will need to
satisfy a requirement to redeem our Preferred Stock in September 2011 for
approximately $17.8 million. Also, if the market price of our shares
remains at very low levels, we will need to issue significant additional
common shares if we continue to pay Preferred dividends in stock instead of
cash.
"We believe that delivering consistently positive EBITDA should be noted by
our current shareholders as well as potential new investors as an
indication of value inherent in our company. The refocusing of our energies
to our core ingredients business has already shown itself to be a good
decision for the Company. We look forward to developing new business
opportunities both here in the U.S. and abroad 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/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.
NUTRITION 21, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
June 30, June 30,
2010 2009
----------- -----------
(unaudited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 935 $ 1,373
Accounts receivable, net 1,495 2,752
Other receivables, net 224 516
Inventories, net 173 3,878
Other current assets 104 467
Property and equipment, net 57 46
Patents, trademarks and other intangibles, net 588 766
Goodwill and other intangibles with indefinite
lives -- 3,636
Other assets 386 1,389
----------- -----------
TOTAL ASSETS $ 3,962 $ 14,823
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current portion of long-term debt $ -- $ 4,457
Accounts payable 719 4,439
Accrued expenses 1,321 2,218
Deferred income -- 361
Deferred income taxes -- 1,200
8% Series J convertible preferred stock subject
to mandatory redemption 15,068 13,218
----------- -----------
Total liabilities 17,108 25,893
----------- -----------
Stockholders' Deficit (13,146) (11,070)
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 3,962 $ 14,823
=========== ===========
NUTRITION 21, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
YEAR ENDED
JUNE 30,
2010 2009
--------- ---------
Net sales $ 8,428 $ 7,684
Other revenues 335 348
--------- ---------
Total Revenues 8,763 7,684
--------- ---------
Costs and Expenses
Cost of Revenues 2,087 1,722
Advertising and Promotion 740 625
General and Administrative 3,214 3,883
Research and Development 392 364
Depreciation and Amortization 387 1,106
--------- ---------
Total Costs and Expenses 6,820 7,700
--------- ---------
Operating Income (Loss) 1,943 (16)
Interest expense, net (3,779) (4,370)
--------- ---------
Loss from Continuing Operations (1,836) (4,386)
Discontinued Operations, net (1,820) (16,622)
--------- ---------
Net Loss $ (3,656) $ (20,809)
========= =========
Basic and diluted loss per common share $ (0.04) $ (0.31)
========= =========
Weighted average number of common shares -
basic and diluted 81,388 67,196
========= =========
Contact Information: CONTACT:
Nutrition 21, Inc.
Alan Kirschbaum
914-701-4500