Records First Net Income Since 1st Quarter of Fiscal 2002 PURCHASE, N.Y., Nov. 13
PURCHASE, N.Y., Nov. 13 /PRNewswire-FirstCall/ -- Nutrition 21, Inc.
(Nasdaq: NXXI), the developer and marketer of nutritional supplements under
the Iceland Health(R) Chromax(R) and Diabetes Essentials(R) brands that help
consumers manage blood sugar levels, improve cardiovascular health, enhance
memory and reduce chronic joint pain, today announced financial results for
the first quarter of fiscal year 2009 ended September 30, 2008.
The Company reported total revenues of $12.7 million compared to $12.2
million in the corresponding quarter a year ago, an increase of 4%. Net
income for the quarter was $0.2 million, a significant improvement when
compared to a net loss of $4.1 million, or $(0.07) per fully diluted share, in
the first quarter of fiscal year 2008.
Michael Zeher, president and chief executive officer, said, "We are
pleased with the first quarter's results. Revenues were strong despite the
current difficult economic conditions, and our net income was the first we've
recorded since the first quarter of fiscal 2002. Our results for the past two
quarters are beginning to reflect the financial disciplines of our new
management team and the ongoing success of our operating plan."
Mr. Zeher continued, "Our Retail Consumer Health Brands unit delivered
particularly strong results. This business benefited from continued growth in
retail distribution of our Iceland Health branded items and from new products
that Walgreens, the country's largest chain drug retailer, distributes under
its exclusive brands.
"We look forward to the future with enthusiasm," concluded Mr. Zeher. "In
the remaining quarters of Fiscal 2009, we expect to expand relationships with
a number of our retail customers and to launch several new products. These
introductions will be supported by initiatives that span all three of our core
business units -- Retail Consumer Health Brand, Direct Response and
Ingredients.
"During the quarter, independent and rigorous test results that were
released on several of our products and ingredients continue to confirm that
our products and ingredients are both safe and effective. These results
position us to attract new customers to our Ingredients business unit. They
also provide important new and enhanced claims and benefits for our Direct
Response and Retail Consumer Health Brands business units."
The Company will discuss the financial results of the quarter in a
conference call scheduled today at 10:00 am EASTERN. Interested parties can
access the call by dialing (866) 562-9910 or (706) 679-5064 or by accessing
the webcast at http://www.nutrition21.com. A replay of the call will be
available at (800) 642-1687 or (706) 645-9291, access code 69805873, through
November 16, 2008. The webcast can be accessed at http://www.nutrition21.com
for the next 30 days.
About Nutrition 21
Nutrition 21, Inc. (NASDAQ: NXXI), headquartered in Purchase, NY, is a
nutritional bioscience company and the maker of chromium picolinate-based and
omega-3 fish oil-based supplements with health benefits substantiated by
clinical research. Nutrition 21 holds more than 30 patents for nutrition
products and uses. Nutrition 21's portfolio of health and wellness products
include: Iceland Health Chromax(R), Iceland Health Advanced Memory
Formula(TM), Diabetes Essentials(TM), Iceland Health(R) Maximum Strength
Omega-3 and Iceland Health(R) Joint Relief. The company also manufactures
private label supplements and ingredients for third parties. Nutrition 21
distributes its products nationally through more than 29,000 major food, drug
and super center retailers as well as internationally. 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, 2008. 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.
CONTACT:
Nutrition, 21 Inc. Lytham Partners, LLC
Alan Kirschbaum Joe Diaz, Joe Dorame, Robert Blum
914-701-4500 602-889-9700
Financial Table on following pages
NUTRITION 21, INC.
Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30, June 30,
2008 2008
ASSETS(unaudited)
Current assets:
Cash and cash equivalents $2,678$4,817
Short-term investments 4,000 ---
Accounts receivable, net 5,607 2,922
Other receivables, net79 286
Inventories, net 1,564 1,014
Other current assets 1,026 1,483
Total current assets14,95410,522
Property and equipment, net 6269
Patents, trademarks, and other intangibles, net 1,250 1,540
Goodwill15,54015,395
Other intangibles with indefinite lives 5,379 5,379
Other assets 2,890 2,981
Investments--- 3,740
Total Assets $40,075 $39,626
LIABILITIES, AND STOCKHOLDERS' EQUITY
Short-term borrowings $3,000$3,000
Accounts payable 3,741 4,221
Accrued expenses 2,622 2,575
Deferred income 1,011 1,288
6% Series | Convertible preferred stock subject
to mandatory redemption 3,378 3,270
Current portion of long-term debt2,433 ---
Total Current Liabilities 16,15514,294
Long-term debt 1,346 4,185
Deferred income tax liability2,152 2,152
8% Series J Convertible preferred stock subject
to mandatory redemption11,98011,594
Total Liabilities 16,18532,225
Stockholders' Equity 8,412 7,401
Total Liabilities and Stockholders' Equity $40,075 $39,626
NUTRITION 21, INC.
Consolidated Statements of Operations
(In thousands, except share and per share data)
(unaudited)
Three Months Ended
September 30,
2008 2007
Net sales $12,609 $11,832
Other revenues 51 365
Total Revenues 12,660 12,197
Costs and Expenses
Cost of Revenues4,7454,047
Advertising and Promotion 5,3629,970
General and Administrative7981,090
Research and Development 80 309
Depreciation and Amortization 363 542
Operating income (loss) 1,312 (3,761)
Interest (expense), net (1,098)(294)
Net income (loss) $214 $(4,055)
Basic and diluted loss per share $0.00 $(0.07)
Weighted average number of common shares
outstanding - basic and diluted 64,134 61,202
SOURCE Nutrition 21, Inc.
