PURCHASE, NY--(Marketwire - February 11, 2011) - Nutrition 21, Inc. (
OTCBB:
NXXI), 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."
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.
NUTRITION 21, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 31, June 30,
2010 2009
------------ ------------
(unaudited) (Note 1)
ASSETS
Current assets:
Cash and cash equivalents $ 1,260 $ 935
Accounts receivable, net 1,142 1,495
Other receivables, net 419 224
Inventories, net 122 173
Other current assets 162 104
Property and equipment, net 62 57
Patents, trademarks and other intangibles, net 493 588
Other assets 232 386
------------ ------------
TOTAL ASSETS $ 3,892 $ 3,962
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable $ 692 $ 719
Accrued expenses 1,006 1,321
8% Series J convertible preferred stock
subject to mandatory redemption 16,088 15,068
------------ ------------
Total liabilities 17,786 17,108
------------ ------------
Stockholders' Deficit (13,894) (13,146)
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 3,892 $ 3,962
============ ============
NUTRITION 21, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
2010 2009 2010 2009
-------- -------- -------- --------
Net sales $ 1,484 $ 1,978 $ 3,038 $ 4,194
Other revenues 383 82 450 176
-------- -------- -------- --------
Total Revenues 1,867 2,060 3,488 4,370
-------- -------- -------- --------
Costs and Expenses
Cost of Revenues 414 541 932 1,191
General and Administrative 765 883 1,431 1,862
Advertising and Promotion 135 185 363 351
Research and Development 80 103 181 182
Depreciation and Amortization 42 59 126 164
-------- -------- -------- --------
Total Costs and Expenses 1,436 1,771 3,033 3,750
-------- -------- -------- --------
Operating Income 431 289 455 620
Interest expense, net (954) (939) (1,896) (1,938)
-------- -------- -------- --------
Loss from Continuing Operations (523) (650) (1,441) (1,318)
Loss from Discontinued Operations,
net (91) (1,529) (71) (1,504)
-------- -------- -------- --------
Net Loss $ (614) $ (2,179) $ (1,512) $ (2,822)
======== ======== ======== ========
Basic and diluted loss per common
share $ (0.00) $ (0.03) $ (0.01) $ (0.03)
======== ======== ======== ========
Weighted average number of common
shares - basic and diluted 140,523 75,023 136,658 74,389
======== ======== ======== ========
Contact Information: CONTACT:
Nutrition 21, Inc.
Alan Kirschbaum
914-701-4500