Attached files
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| 8-K - NUTRITION 21 INC | v210902_8k.htm |
Exhibit
99.1
Nutrition
21 Announces Financial Results for
2nd
Quarter Fiscal Year 2011
PURCHASE, NY, February 11,
2011 – Nutrition 21, Inc. (OTC Bulletin Board: NXXI.OB), the developer
and marketer of clinically substantiated nutritional ingredients for dietary
supplements, foods and beverages, and animal nutrition, today announced
financial results for the second fiscal quarter ended December 31,
2010.
The
Company reported total revenues of $1.9 million for the second quarter ended
December 31, 2010, compared to $2.1 million in the corresponding quarter a year
ago. Net loss from continuing operations for the second quarter this
year was $0.5 million, or ($0.0) per diluted common share, compared to a net
loss from continuing operations of $0.7 million, or $(0.01) per diluted common
share, in the corresponding quarter a year ago.
For the
six months ended December 31, 2010, the Company reported total revenues from
continuing operations of $3.5 million compared to $4.4 million in the comparable
period a year ago. Net loss from continuing operations for the six months ended
December 31, 2010 was $1.4 million compared to $1.3 million in the comparable
period a year ago.
Reduced
product sales compared to the comparable period a year ago were partially offset
by termination fees paid to the Company in connection with termination of
certain licensing agreements.
Net loss
from discontinued operations for the quarter ended December 31, 2010 was $91
thousand or $( 0.00) per diluted common share, compared to net loss of $1.5
million or $0.01 per diluted common share in the comparable period a year ago.
For the six months ended December 31, 2010 the company reported a net loss from
discontinued operations of $71 thousand compared to $1.5 million in the
comparable period a year ago.
Michael
Zeher, president and chief executive officer, said, “We are pleased to report
that our operating income, since the divestiture of the Branded Products Group
in the second quarter of 2009, continues to be positive. Looking forward, we
continue to be optimistic, but cautious, as we will need to satisfy a
requirement to redeem our Series J Preferred Stock in September 2011
for approximately $17.8 million. As reported earlier, a special
committee of the Board of Directors has retained BDO Capital Advisors, LLC as
its investment banker to consider approaches to meet this requirement. Possible
alternatives include, among other things, negotiation of an extension with the
holders of the Preferred Stock, a going private sale or other transaction, and a
refinancing of the business.”
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CONTACT:
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Alan Kirschbaum,
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Nutrition
21, Inc.
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914-701-4500
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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.
Financial
Tables on following pages
NUTRITION
21, INC.
CONSOLIDATED
BALANCE SHEETS
(Dollars
in thousands)
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December
31,
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June
30,
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|||||||
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2010
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2009
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|||||||
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(unaudited)
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(Note
1)
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|||||||
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ASSETS
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||||||||
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Current
assets:
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||||||||
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Cash
and cash equivalents
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$ | 1,260 | $ | 935 | ||||
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Accounts
receivable, net
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1,142 | 1,495 | ||||||
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Other
receivables, net
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419 | 224 | ||||||
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Inventories,
net
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122 | 173 | ||||||
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Other
current assets
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162 | 104 | ||||||
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Property
and equipment, net
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62 | 57 | ||||||
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Patents,
trademarks and other intangibles, net
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493 | 588 | ||||||
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Other
assets
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232 | 386 | ||||||
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TOTAL
ASSETS
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$ | 3,892 | $ | 3,962 | ||||
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LIABILITIES
AND STOCKHOLDERS' DEFICIT
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||||||||
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Accounts
payable
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$ | 692 | $ | 719 | ||||
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Accrued
expenses
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1,006 | 1,321 | ||||||
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8%
Series J convertible preferred stock subject to mandatory
redemption
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16,088 | 15,068 | ||||||
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Total
liabilities
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17,786 | 17,108 | ||||||
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Stockholders’
Deficit
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(13,894 | ) | (13,146 | ) | ||||
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TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIT
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$ | 3,892 | $ | 3,962 | ||||
NUTRITION
21, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(in
thousands, except share and per share data)
(unaudited)
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Three
Months Ended
December
31,
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Six
Months Ended
December
31,
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|||||||||||||||
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2010
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2009
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2010
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2009
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Net
sales
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$ | 1,484 | $ | 1,978 | $ | 3,038 | $ | 4,194 | ||||||||
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Other
revenues
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383 | 82 | 450 | 176 | ||||||||||||
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Total
Revenues
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1,867 | 2,060 | 3,488 | 4,370 | ||||||||||||
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Costs
and Expenses
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||||||||||||||||
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Cost
of Revenues
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414 | 541 | 932 | 1,191 | ||||||||||||
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General
and Administrative
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765 | 883 | 1,431 | 1,862 | ||||||||||||
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Advertising
and Promotion
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135 | 185 | 363 | 351 | ||||||||||||
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Research
and Development
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80 | 103 | 181 | 182 | ||||||||||||
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Depreciation
and Amortization
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42 | 59 | 126 | 164 | ||||||||||||
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Total
Costs and Expenses
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1,436 | 1,771 | 3,033 | 3,750 | ||||||||||||
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Operating
Income
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431 | 289 | 455 | 620 | ||||||||||||
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Interest
expense, net
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(954 | ) | (939 | ) | (1,896 | ) | (1,938 | ) | ||||||||
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Loss
from Continuing Operations
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(523 | ) | (650 | ) | (1,441 | ) | (1,318 | ) | ||||||||
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Loss
from Discontinued Operations, net
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(91 | ) | (1,529 | ) | (71 | ) | (1,504 | ) | ||||||||
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Net
Loss
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$ | (614 | ) | $ | (2,179 | ) | $ | (1,512 | ) | $ | (2,822 | ) | ||||
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Basic
and diluted loss per common share
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$ | (0.00 | ) | $ | (0.03 | ) | $ | (0.01 | ) | $ | (0.03 | ) | ||||
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Weighted
average number of common shares – basic and diluted
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140,523 | 75,023 | 136,658 | 74,389 | ||||||||||||