BOULDER, Colo., July 17, 2001 (PRIMEZONE) -- Hauser, Inc. (OTCBB:HAUS) yesterday reported results for the year ended March 31, 2001.
For the year there was a net loss of $33.3 million, including non-cash charges totaling $22.2 million reflecting the write down of substantially all goodwill, certain fixed assets and inventory. The net loss per share for the 2001 fiscal year was $6.75, compared with a net loss of $28.4 million, or $6.47 per share for the 11 months ended March 31, 2000.
Total revenues for fiscal 2001 were $66.7 million compared to $81.2 million during the 11 months of fiscal 2000. The reduction in revenue was a result of a worldwide over supply of dietary supplement products, which resulted in reduced sales due to customer inventory levels. The revenue decline also resulted from a decision by a principal supplier to sell excipient products directly rather than distribute them through Hauser.
Kenneth Cleveland, president and chief executive officer, said, "Hauser's fiscal 2001 year was marked by the continued effort to reduce costs, restructure operations and return the company to profitability. We believe our restructuring efforts and cost reductions will improve our operating efficiencies and allow us to continue to be a leading supplier of natural product extracts and nutritional supplements to food, health care, and pharmaceutical markets in the U.S."
Cleveland added: "Looking to the future, we are concentrating on developing proprietary, clinically supported natural extract products. Our emphasis will be on the development of those products that differentiate Hauser from its competitors and extend our company's legacy of discovery and innovation."
Hauser, a Customer Connected(SM) company headquartered in Boulder, Colorado, is a leading supplier of herbal extracts and nutritional supplements. The Company also provides interdisciplinary laboratory testing services, chemical engineering services, and contract research and development. The Company's products and services are principally marketed to the pharmaceutical, dietary supplement and food ingredient businesses. Hauser's business units include: Botanicals International Extracts, Hauser Laboratories, Shuster Laboratories and ZetaPharm.
Certain oral and written statements of management of the Company included in this news release and elsewhere may contain forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. These statements include the plans and objectives of management for future operations. The forward-looking statements included herein and elsewhere are based on current expectations that involve judgments which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.
HAUSER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
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Twelve Months Eleven Months
Ended Ended
March 31, 2001 March 31, 2000
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REVENUES:
Natural products $ 21,380,902 $ 28,329,424
Fine chemicals 28,415,694 28,695,223
Technical services 16,246,044 15,442,139
Pharmaceuticals 670,970 8,694,819
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Total revenues 66,713,610 81,161,605
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COST OF REVENUES:
Natural products 20,844,964 26,013,125
Fine chemicals 24,521,058 24,139,555
Technical services 14,097,545 13,017,485
Pharmaceuticals -- 8,497,212
Write-down of inventory 4,498,407 6,675,856
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Total cost of revenues 63,961,974 78,343,233
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GROSS PROFIT (LOSS) 2,751,636 2,818,372
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OPERATING EXPENSES:
Research and development 2,586,002 800,462
Sales and marketing 3,620,483 4,611,631
General and administrative 11,393,691 11,104,083
Write-off of assets and
facility closure costs 17,844,197 9,255,900
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Total operating expenses 35,444,373 25,772,076
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LOSS FROM OPERATIONS (32,692,737) (22,953,704)
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OTHER INCOME (EXPENSE):
Interest and other income 391,583 88,371
Interest expense (2,296,053) (1,879,465)
Gain from sale of land held
for investment 1,430,396 --
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Total other (expense) income (474,074) (1,791,094)
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LOSS BEFORE INCOME TAX (33,166,811) (24,744,798)
INCOME TAX EXPENSE 93,862 3,630,057
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NET LOSS $(33,260,673) $(28,374,855)
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LOSS PER SHARE BASIC AND DILUTED $ (6.75) $ (6.47)
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WEIGHTED AVERAGE SHARES OUTSTANDING
BASIC AND DILUTED 4,929,473 4,388,221
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HAUSER, INC.
CONSOLIDATED BALANCE SHEETS
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March 31, March 31,
2001 2000
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 616,242 $ 1,272,875
Accounts receivable, less allowance
for doubtful accounts:
2001, $876,849; 2000, $976,101 12,269,932 17,052,701
Inventory, at lower of cost or market 9,802,166 22,631,914
Prepaid expenses and other 928,231 611,897
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Total current assets 23,616,571 41,569,387
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PROPERTY AND EQUIPMENT:
Land and buildings 8,967,678 8,753,733
Laboratory and processing equipment 17,401,764 25,879,426
Furniture and fixtures 3,587,807 4,289,140
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Total property and equipment 29,957,249 38,922,299
Accumulated depreciation and
amortization (17,257,953) (23,237,393)
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Net property and equipment 12,699,296 15,684,906
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OTHER ASSETS:
Goodwill, less accumulated amortization:
2001, $1,273,013; 2000, $1,742,698 947,967 18,556,242
Deposits and other 575,583 249,106
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$ 37,839,417 $ 76,059,641
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,833,036 $ 4,067,144
Current portion of long-term debt 18,790,034 26,377,638
Accrued salaries and benefits 1,300,117 2,391,576
Customer deposits 642,839 916,870
Accrued exit costs 508,444 1,987,214
Amount due to related party 2,988,160 847,157
Other current liabilities 2,825,444 1,227,668
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Total current liabilities 29,888,074 37,815,267
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LONG-TERM DEBT 36,335 418,832
NOTE PAYABLE TO RELATED PARTY 2,704,803 --
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, $.001 par value;
20,000,000 shares authorized;
shares issued and outstanding:
2001, 5,072,742; 2000, 4,811,585 5,073 4,812
Additional paid-in capital 94,543,588 94,252,750
Warrants 354,237 --
Accumulated deficit (89,692,693) (56,432,020)
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5,210,205 37,825,542
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$ 37,839,417 $ 76,059,641
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