Nutrition 21 Reports Fiscal Third-Quarter Results.Business Editors/Health/Medical Writers PURCHASE, N.Y.--(BUSINESS WIRE)--May 14, 2003 Nutrition 21, Inc. (Nasdaq: NXXI), a leading developer and marketer of nutritional products, today reported a fiscal third-quarter net loss of $1.1 million ($0.03 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share) on revenues of $3.1 million, compared with a net loss of $0.2 million ($0.01 per diluted share) on revenues of $4.0 million for the same period a year ago. For the nine months ended March 31, 2003 the company reported a net loss of $3.5 million ($0.11 per diluted share) on revenues of $8.8 million compared with net income of $0.7 million ($0.02 per diluted share) on revenues of $10.8 million for the comparable period a year ago. Included in the nine month period last year was a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain of $1.8 million ($0.3 per diluted share, net of tax), from the settlement of patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. lawsuits and a sale of assets. The company ended the quarter in a strong financial position with $4.8 million in cash and net working capital of $6.1 million. Gail Montgomery, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the company, said, "The reduction in net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight in the quarter and year to date reflects the softness in sales of Lite Bites products due to lack of air time on QVC QVC Quality Value Convenience QVC Question Valid Command from October 2002 through February 2003 and less than expected sales after a newly revamped product line returned to the air in late February. To protect ourselves against any further losses associated with the Lite Bites product line, we are continuing our search for an appropriate partner(s) to expand distribution of these products in new channels." Montgomery continued, "We remain committed to investing in our longer-term strategy of translating the health benefits associated with chromium chromium (krō`mēəm) [Gr.,=color], metallic chemical element; symbol Cr; at. no. 24; at. wt. 51.996; m.p. about 1,857°C;; b.p. 2,672°C;; sp. gr. about 7.2 at 20°C;; valence +2, +3, +6. picolinate into therapeutic consumer brands-- an effort currently supported by our stable ingredients business and cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. . The Council for Advancement of Diabetes Research and Education (CADRE) Research Summit: 'Chromium in Health and Disease' held in early April was an important Company milestone." Sixteen leading researchers from across the globe gathered to confirm the essential role of chromium in improving insulin resistance Insulin Resistance Definition Insulin resistance is not a disease as such but rather a state or condition in which a person's body tissues have a lowered level of response to insulin, a hormone secreted by the pancreas that helps to regulate the level , a condition estimated to affect as many as one in four Americans. Over twenty studies on chromium picolinate that were either completed or nearing completion were presented on a wide range of topics, including obesity obesity, condition resulting from excessive storage of fat in the body. Obesity has been defined as a weight more than 20% above what is considered normal according to standard age, height, and weight tables, or by a complex formula known as the body mass index. , diabetes, cardiovascular disease Cardiovascular disease Disease that affects the heart and blood vessels. Mentioned in: Lipoproteins Test cardiovascular disease , depression, women's health Women's Health Definition Women's health is the effect of gender on disease and health that encompasses a broad range of biological and psychosocial issues. and animal fertility fertility: see infertility. fertility Ability of an individual or couple to reproduce through normal sexual activity. About 80% of healthy, fertile women are able to conceive within one year if they have intercourse regularly without contraception. . In addition, epidemiological epidemiological emanating from or pertaining to epidemiology. epidemiological associations the associative relationships between the frequency of occurrence of a disease and its determinants, its predisposing and precipitating research suggested a strong correlation between chromium deficiency chromium deficiency A rare condition characterized by ↓ weight, glucose intolerance, insulin resistance, ↓ respiratory quotients, peripheral neuropathy. See Chromium. and chronic disease. "With the publication of many of these studies slated for the end of 2003, we believe demand for our proprietary products should increase significantly," said Montgomery. The Company will continue to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. expenses associated with the expected calendar 2004 launch of its proprietary Diachrome(TM) and Zeramax(TM) supplement brands into diabetes and depression therapeutic markets. Montgomery added, "Our two key studies with Diabetex, Inc, and Comprehensive NeuroSciences, Inc. ('CNS') are progressing as planned, with the CNS See Continuous net settlement. CNS See continuous net settlement (CNS). study ahead of its original enrollment targets." About Nutrition 21 Nutrition 21 is a leading developer and provider of nutritional products whose health benefits have been substantiated by clinical research. The Company markets Chromax chromium picolinate, the leading brand of chromium and holds 35 patents for nutrition products, 22 for chromium compounds and their uses. More information is available at www.nutrition21.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provision This press release may contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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 EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created 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 Registration Statement on Form S-3, the Prospectus dated April 25, 2000, its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended June 30, 2002, and its Form10-Q for the quarters ended September 30 and December 31, 2002. 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" that may bear upon forward-looking statements.
NUTRITION 21, INC.
Consolidated Balance Sheets
(in thousands)
ASSETS March 31, June 30,
2003 2002
----------- -----------
(unaudited)
-----------
Current assets:
Cash and short-term investments $ 4,787 $ 4,974
Accounts receivable, net 1,460 2,219
Other receivables, net 303 1,097
Inventories, net 940 1,075
Other current assets 307 788
----------- -----------
Total current assets 7,797 10,153
Property and equipment, net 583 654
Patents, trademarks, goodwill and other
intangibles, net 15,526 17,073
Other assets 221 220
----------- -----------
Total Assets $ 24,127 $ 28,100
=========== ===========
LIABILITIES, AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 1,699 $ 2,102
Contingent payments payable 29 43
Preferred dividends payable 2 6
----------- -----------
Total current liabilities 1,730 2,151
Total Liabilities 1,730 2,151
----------- -----------
----
Stockholders' Equity 22,397 25,949
----------- -----------
Total Liabilities, and Stockholders' Equity $ 24,127 $ 28,100
=========== ===========
NUTRITION 21, INC.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months ended Nine Months ended
March 31, March 31,
----------------------- -----------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Net sales $3,082 $3,912 $8,605 $10,544
Other revenues 50 75 175 304
----------- ----------- ----------- -----------
Revenues 3,132 3,987 8,780 10,848
Cost of goods sold 1,017 1,274 2,808 3,385
----------- ----------- ----------- -----------
Gross profit 2,115 2,713 5,972 7,463
Expenses:
Selling, General and
Administrative 2,362 2,058 6,383 5,516
Research and
Development 561 276 1,401 686
Depreciation and
Amortization 649 641 2,046 1,962
Operating (loss) (1,457) (262) (3,858) (701)
Interest income 13 11 54 76
Interest expense 5 46 27 96
Other income ---- ---- ---- 1,794
----------- ----------- ----------- -----------
(Loss) income before
income taxes (1,449) (297) (3,831) 1,073
Income taxes (benefit) (306) (100) (306) 366
----------- ----------- ----------- -----------
Net (loss) income $(1,143) $(197) $(3,525) $707
=========== =========== =========== ===========
Basic (loss) earnings
per share $(0.03) $(0.01) $(0.11) $0.02
=========== =========== =========== ===========
Diluted (loss) earnings
per share $(0.03) $(0.01) $(0.11) $0.02
=========== =========== =========== ===========
Weighted average number
of common shares
outstanding - basic 33,603 32,995 33,212 32,523
=========== =========== =========== ===========
Weighted average number
of common shares and
equivalents - diluted 33,603 33,018 33,212 32,550
=========== =========== =========== ===========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion