November 13, 2008
Nutrition 21 Announces Fiscal First Quarter 2009 Financial Results
PURCHASE, N.Y., Nov. 13 /PRNewswire-FirstCall/ -- Nutrition 21, Inc. , 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. , 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, net 79 286 Inventories, net 1,564 1,014 Other current assets 1,026 1,483 Total current assets 14,954 10,522 Property and equipment, net 62 69 Patents, trademarks, and other intangibles, net 1,250 1,540 Goodwill 15,540 15,395 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 debt 2,433 --- Total Current Liabilities 16,155 14,294 Long-term debt 1,346 4,185 Deferred income tax liability 2,152 2,152 8% Series J Convertible preferred stock subject to mandatory redemption 11,980 11,594 Total Liabilities 16,185 32,225 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 Revenues 4,745 4,047 Advertising and Promotion 5,362 9,970 General and Administrative 798 1,090 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
Nutrition 21, Inc.
CONTACT: Alan Kirschbaum of Nutrition 21, Inc., +1-914-701-4500; or JoeDiaz, Joe Dorame, or Robert Blum, all of Lytham Partners, LLC,+1-602-889-9700, for Nutrition 21, Inc.
Web site: http://www.nutrition21.com/