IRVINE, Calif., Nov. 12, 2015 (GLOBE NEWSWIRE) -- ChromaDex Corp. (OTCQX:CDXC), an innovator of proprietary health, wellness, and nutritional ingredients that creates science-based solutions for dietary supplements, food and beverage, skin care, sports nutrition, and pharmaceutical products, announced today record revenue for the third quarter ended October 3, 2015. The report marks the sixth consecutive quarter of record revenue for the Company.
- Results of operations for the three months ended October 3, 2015 -
For the three months ended October 3, 2015 (“Q3 2015”), ChromaDex reported record net sales of $6.3 million, an increase of 52% as compared to $4.1 million for the three months ended September 27, 2014 (“Q3 2014”). 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 $4.1 million for Q3 2015, an increase of 104%, compared to $2.0 million for Q3 2014, and a sequential increase of 22% as compared to Q2 2015.
The core standards and services segment posted sales of $1.9 million for Q3 2015, an increase of 3% as compared to $1.8 million for Q3 2014. Net sales for the scientific and regulatory consulting segment were $265K, a decrease of 10% as compared to $294K for Q3 2014.
The net loss attributable to common stock holders for Q3 2015 was $4K or ($0.00) per share as compared to a net loss of $660K or ($0.01) per share for Q3 2014. This marks the first quarter ChromaDex has moved close to GAAP breakeven since the first quarter of 2010.
Adjusted EBITDA for Q3 2015 was $695K, compared to Adjusted EBITDA of ($152K) for Q3 2014. 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 Q3 2015 was $0.01 versus ($0.00) for Q3 2014.
Frank Jaksch, Jr., CEO and co-founder of ChromaDex, commented, “Our 6th consecutive quarter of record revenue has led to improved overall financial performance, as we have moved to a GAAP break-even as well as posted $695K of Adjusted EBITDA. The financial performance starts to illustrate the scale and earnings leverage in our business model.”
Recent Company highlights include:
- In November, the Company announced it had entered into a joint development agreement with The Procter & Gamble Company (“P&G”), pursuant to which the Company will provide P&G exclusivity to its new proprietary ingredient for use in P&G branded products.
- In November, the Company announced it had entered into an agreement with three of its largest existing shareholders, including Dr. Philip Frost, to purchase $2,000,000 of the Company’s common stock and warrants in a registered direct offering.
- In September, the Company announced the launch of IMMULINA™, which is a spirulina extract that has demonstrated an ability to enhance the immune response.
- In September, the Company announced that a new dietary supplement product, NIAGEN® NR Age Defense, is now available at CVS Health stores.
- In August, the Company reported its 5th consecutive quarter of record revenue as Q2 ingredient sales increased 98% and total revenue increased 58% over Q2 2014.
- In August, the Company announced results from the first human clinical study of ChromaDex’s NIAGEN® nicotinamide riboside, which demonstrated that NIAGEN® nicotinamide riboside effectively and safely increases the co-enzyme NAD+.
Investor Conference Call
ChromaDex management will host an investor conference call to discuss the quarterly results and provide a general business update on Monday, November 16th, at 11am EST. Participants should call in at least 10 minutes prior to the call. The dial-in information is as follows:
U.S. toll free: 1-866-327-8118
Outside the U.S.: 1-678-509-7526
Conference ID for this call is: 74212372
A webcast replay will be available after the completion of the call on the Investor Relations section of the Company website, www.chromadex.com.
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 Suntava® 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.
Non-GAAP Financial Measures
In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the earnings release contains non-GAAP financial measures adjusted for income tax, interest, depreciation, amortization, and non-cash stock compensation costs. Management believes that the non-GAAP measures used in this release provide investors with important perspectives into the Company's ongoing business performance. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. All financial data is presented on a GAAP basis except where the Company indicates its presentation is on a non-GAAP basis. Set forth below are reconciliations of non-GAAP Adjusted EBITDA to the Company's reported GAAP net income (loss).
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 3, 2015, the Company’s Quarterly Reports on Form 10-Q, the Company’s Current Reports on Form 8-K 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.
|ChromaDex Corporation and Subsidiaries|
|Condensed Consolidated Statements of Operations (Unaudited)|
|For the Three Month Periods Ended October 3, 2015 and September 27, 2014|
|October 3, 2015||September 27, 2014|
|Cost of sales||3,805,679||2,616,764|
|Sales and marketing||550,878||518,662|
|General and administrative||1,753,622||1,651,718|
|Operating income (loss)||177,130||(647,434||)|
|Nonoperating income (expense):|
|Basic and Diluted loss per common share||$||(0.00||)||$||(0.01||)|
|Basic and Diluted weighted average common shares outstanding||107,442,916||106,610,400|
|See Notes to Condensed Consolidated Financial Statements in the Company's Quarterly Report|
|on Form 10-Q filed with the Securities Exchange Commission on November 12, 2015.|
|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 Oct. 3, 2015 and Sep. 27, 2014||For the Three Month Periods Ended Oct. 3, 2015 and Sep. 27, 2014||For the Three Month Periods Ended Oct. 3, 2015 and Sep. 27, 2014|
|Oct. 3, 2015||Sep. 27, 2014||Oct. 3, 2015||Sep. 27, 2014||Oct. 3, 2015||Sep. 27, 2014|
|Cost of sales||3,805,679||2,616,764||Cost of sales||(64,263||)||(47,642||)||Cost of sales||3,741,416||2,569,122|
|Gross profit||2,481,630||1,522,946||Gross profit||64,263||47,642||Gross profit||2,545,893||1,570,588|
|Operating expenses:||Operating expenses:||Operating expenses:|
|Sales and marketing||550,878||518,662||Sales and marketing||-||-||Sales and marketing||550,878||518,662|
|General and administrative||1,753,622||1,651,718||General and administrative||(453,234||)||(447,802||)||General and administrative||1,300,388||1,203,916|
|Operating expenses||2,304,500||2,170,380||Operating expenses||(453,234||)||(447,802||)||Operating expenses||1,851,266||1,722,578|
|Operating income (loss)||177,130||(647,434||)||Operating income||517,497||495,444||Operating income (loss)||694,627||(151,990||)|
|Nonoperating income (expense):||Nonoperating income:||Nonoperating income:|
|Interest income||976||230||Interest income||(976||)||(230||)||Interest income||-||-|
|Interest expense||(181,822||)||(12,449||)||Interest expense||181,822||12,449||Interest expense||-||-|
|Nonoperating expense||(180,846||)||(12,219||)||Nonoperating income||180,846||12,219||Nonoperating income||-||-|
|Net loss||$||(3,716||)||$||(659,653||)||Effects of adjusted EBITDA||$||698,343||$||507,663||Adjusted EBITDA||$||694,627||$||(151,990||)|
|Basic and Diluted loss||Basic and Diluted effects of||Basic and Diluted adjusted EBITDA|
|per common share||$||(0.00||)||$||(0.01||)||adjusted EBITDA per common share||$||0.01||$||0.00||per common share||$||0.01||$||(0.00||)|
|Basic and Diluted weighted||Basic and Diluted weighted||Basic and Diluted weighted|
|average common shares outstanding||107,442,916||106,610,400||average common shares outstanding||107,442,916||106,610,400||average common shares outstanding||107,442,916||106,610,400|
ChromaDex Company Contact: Andrew Johnson Director of Investor Relations 949-419-0288 firstname.lastname@example.org ChromaDex Investor Contacts: The Del Mar Consulting Group, Inc. Robert B. Prag, President 858-794-9500 email@example.com