Tru Niagen® Revenue for the Three-Month Period
Ended March 31, 2021 Totals $12.4 Million, up 12% Year-over-Year,
with Total Company Revenue of $14.7 Million and Gross Margin of
62.9%.
ChromaDex Corp. (NASDAQ:CDXC) today reported first quarter 2021
financial results.
First Quarter 2021 and Recent Highlights
- Total net sales of $14.7 million, up 2% from $14.3 million in
the year ago quarter.
- Tru Niagen® net sales of $12.4 million, a 12% increase from the
year ago quarter.
- Gross margin of 62.9%, a 500 basis point increase from the year
ago quarter.
- Net loss was ($7.4) million or ($0.12) per share, down $0.02
per share year-over-year.
- Adjusted EBITDA excluding total legal expense, a non-GAAP
measure, was a loss of ($0.7) million, a $0.4 million decline
year-over-year.
- Announced retail distribution of Tru Niagen® in Walmart™ stores
across the United States beginning in June 2021.
- Announced strategic supply agreement with Health &
Happiness Group (H&H), a global leader in premium health, human
and pet nutrition and personal care brands to sell Niagen® in its
exclusively formulated Swisse™ products.
- Announced strategic supply agreement with Ro, a healthcare
technology company, to sell Niagen® in specially-formulated Roman
products.
- Appointed former Nestlé executive, Fadi Karam as Chief
Marketing Officer.
- Appointed Dr. David L. Katz, a globally recognized authority on
lifestyle medicine, to the ChromaDex Scientific Advisory
Board.
“This has been an incredible year for ChromaDex strategically,”
said ChromaDex CEO, Rob Fried. “We signed three important deals
with Walmart, H&H, and Ro. We also strengthened our balance
sheet with a $25 million capital raise and announced the results of
exciting scientific research on Niagen®. We had some short-term
supply chain disruptions that impacted first quarter sales, but the
long-term prospects look stronger than ever.”
Results of operations for the three months ended March 31,
2021
For the three months ended March 31, 2021 (“Q1 2021”), ChromaDex
reported net sales of $14.7 million, up 2% compared to $14.3
million in the first quarter of 2020 ("Q1 2020"). The increase in
Q1 2021 revenues was driven by growth in sales of Tru Niagen®,
largely offset by lower Niagen® and other ingredient sales.
Gross margin percentage improved by 500 basis points to 62.9% in
Q1 2021 compared to 57.9% in Q1 2020. The improvement in gross
margin percentage was driven by the positive impact of increased
Tru Niagen® consumer product sales and product cost savings
initiatives.
Operating expenses increased by $2.4 million to $16.6 million in
Q1 2021, compared to $14.2 million in Q1 2020. The increase in
operating expenses was driven by $1.8 million of higher selling and
marketing expenses, and an increase of $0.7 million in general and
administrative expense, partially offset by $0.1 million of lower
research and development expense. The increase in general and
administrative expense was driven by $2.6 million of higher legal
expense, partially offset by $1.0 million of lower severance and
restructuring expenses and $0.8 million of lower shares-based
compensation expense.
The net loss for Q1 2021 was ($7.4) million or ($0.12) per share
as reported compared to a net loss of ($5.9) million or ($0.10) per
share for Q1 2020 as reported. Adjusted EBITDA excluding total
legal expense, a non-GAAP measure, was a loss of ($0.7) million for
Q1 2021, compared to a loss of ($0.3) million for Q1 2020, a $0.4
million decline.
ChromaDex defines Adjusted EBITDA excluding total legal expense
as net income or (loss) which is adjusted for interest, income tax,
depreciation, amortization, non-cash stock compensation costs,
severance and restructuring expense, bad debt expense related to
Elysium Health and total legal expense.
For Q1 2021, the net cash flow from operating activities was
($5.4) million, versus ($5.2) million in Q1 2020.
2021 Outlook
Looking forward, for the full year, the Company expects
continued, steady revenue growth driven by its global ecommerce
business, as well as growth with existing and new strategic
partners, and that the growth rate will accelerate beginning in the
second quarter. The Company expects continued gross margin
improvement to slightly better than 60%, roughly flat R&D
expense and slightly higher selling and marketing expense as a
percentage of net sales year-over-year. The Company expects
slightly higher general and administrative expense, excluding
severance, restructuring and legal expense. The Company plans to
increase investments and resources to drive brand awareness and
accelerate its R&D pipeline to capitalize on growth in the NAD+
market globally.
Investor Conference Call
ChromaDex management will host an investor conference call to
discuss the first quarter results and provide a general business
update on Thurs., May 6, at 4:30 p.m. ET.
Participants should call in at least 10 minutes prior to the
call. The dial-in information is as follows:
Date: Thurs., May 6, 2021 Time: 4:30 p.m. ET (1:30 p.m. Pacific
time) Toll-free dial-in number: 1-833-979-2703 International
dial-in number: 236-714-2223 Conference ID: 8991456 Webcast link:
ChromaDex First Quarter 2021 Earnings Conference Call
The conference call will be broadcast live and available for
replay here and via the investor relations section of the Company’s
website at www.chromadex.com.
A replay of the conference call will be available after 7:30
p.m. ET.
Toll-free replay number: 800-585-8367 Replay ID: 8991456
The earnings press release, and its accompanying financial
exhibits, will be available on the Investor Relations section of
the Company website, www.chromadex.com.
About Non-GAAP Financial Measures:
Adjusted EBITDA excluding total legal expense excludes interest,
income tax, depreciation, amortization, non-cash share-based
compensation costs, severance and restructuring expense and total
legal expense. ChromaDex uses these non-GAAP measures when
evaluating its financial results as well as for internal resource
management, planning and forecasting purposes. ChromaDex believes
the presentation of its non-GAAP financial measures enhances the
overall understanding of the company’s historical financial
performance. These non-GAAP measures should not be viewed in
isolation from or as a substitute for ChromaDex’s financial results
in accordance with GAAP. Reconciliation of GAAP to non-GAAP
measures are attached to this press release.
About ChromaDex:
ChromaDex Corp. is a global bioscience company dedicated to
healthy aging. The ChromaDex team, which includes world-renowned
scientists, is pioneering research on nicotinamide adenine
dinucleotide (NAD+), levels of which decline with age. ChromaDex is
the innovator behind NAD+ precursor nicotinamide riboside (NR),
which is protected by ChromaDex’s patent portfolio along with other
NAD+ precursors. ChromaDex maintains a website at www.chromadex.com
to which ChromaDex regularly posts copies of its press releases as
well as additional and financial information about the Company.
Important Note on Forward Looking Statements:
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. Because such statements are subject to risks and
uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. Such
statements include the quotation from ChromaDex’s Chief Executive
Officer, and statements related to the company’s 2021 financial
outlook. Other risks that contribute to the uncertain nature of the
forward-looking statements are reported in our most recent
Quarterly Report on Form 10-Q and Annual Report on Form 10-K as
filed with the SEC. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date hereof, and actual results may differ materially from
those suggested by these forward-looking statements. All
forward-looking statements are qualified in their entirety by this
cautionary statement and ChromaDex 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 For the Three Month
Periods Ended March 31, 2021 and March 31, 2020 (In
thousands, except per share data) Three Months Ended
Mar. 31, 2021 Mar. 31, 2020 Sales, net
$
14,683
$
14,345
Cost of sales
5,449
6,034
Gross profit
9,234
8,311
Operating expenses: Sales and marketing
6,258
4,447
Research and development
824
919
General and administrative
9,514
8,835
Operating expenses
16,596
14,201
Operating loss
(7,362
)
(5,890
)
Nonoperating expense: Interest expense, net
(19
)
(12
)
Nonoperating expense
(19
)
(12
)
Net loss
$
(7,381
)
$
(5,902
)
Basic and diluted loss per common share
$
(0.12
)
$
(0.10
)
Basic and diluted weighted average common shares
outstanding
64,164
59,782
See Notes to Consolidated Financial Statements in
Part I Item 1 of ChromaDex's Quarterly Report on Form 10-Q to be
filed with Securities and Exchange Commission on May 6, 2021.
ChromaDex Corporation and Subsidiaries Condensed
Consolidated Balance Sheets March 31, 2021 and December 31,
2020 (In thousands, except per share data)
Mar. 31, 2021 Dec. 31, 2020
Assets Current
Assets Cash, including restricted cash of $0.2 million and $0.2
million, respectively
$
44,691
$
16,697
Trade receivables, net of allowances of $0.2 million and $0.2
million, respectively; Receivables from Related Party: $1.3 million
and $0.9 million, respectively
4,647
2,694
Inventories
12,762
11,683
Prepaid expenses and other assets
1,119
1,145
Total current assets
63,219
32,219
Leasehold Improvements and Equipment, net
3,058
3,206
Intangible Assets, net
1,022
1,082
Right of Use Assets
1,100
1,226
Other Long-term Assets
594
625
Total assets
$
68,993
$
38,358
Liabilities and Stockholders' Equity Current
Liabilities Accounts payable
$
11,693
$
9,445
Accrued expenses
7,328
6,133
Current maturities of operating lease obligations
485
589
Current maturities of finance lease obligations
19
31
Customer deposits
231
278
Total current liabilities
19,756
16,476
Deferred Revenue
4,441
4,441
Operating Lease Obligations, Less Current Maturities
947
997
Finance Lease Obligations, Less Current Maturities
17
20
Total liabilities
25,161
21,934
Commitments and Contingencies Stockholders' Equity
Common stock, $.001 par value; authorized 150,000 shares; issued
and outstanding March 31, 2021 67,702 shares and December 31, 2020
61,881 shares
68
62
Additional paid-in capital
192,972
158,190
Accumulated deficit
(149,206
)
(141,825
)
Cumulative translation adjustments
(2
)
(3
)
Total stockholders' equity
43,832
16,424
Total liabilities and stockholders' equity
$
68,993
$
38,358
See Notes to Consolidated Financial Statements in Part I
Item 1 of ChromaDex's Quarterly Report on Form 10-Q to be filed
with Securities and Exchange Commission on May 6, 2021.
ChromaDex Corporation and Subsidiaries Reconciliation of
Non-GAAP Financial Measures Adjusted EBITDA
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 (In thousands) Net
loss, as reported
$
(5,902
)
$
(3,711
)
$
(4,215
)
$
(6,097
)
$
(7,381
)
Adjustments: Interest expense, net
12
24
19
16
19
Depreciation
214
218
220
219
221
Amortization of intangibles
62
60
60
61
60
Amortization of right of use assets
92
95
97
115
126
Share-based compensation
1,873
1,711
1,574
1,778
1,284
Severance and restructuring
953
284
224
329
(10
)
Adjusted EBITDA
$
(2,696
)
$
(1,319
)
$
(2,021
)
$
(3,579
)
$
(5,681
)
Total legal expense
2,380
1,844
1,896
2,468
5,010
Adjusted EBITDA excluding total legal expense
$
(316
)
$
525
$
(125
)
$
(1,111
)
$
(671
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210506005935/en/
ChromaDex Investor Relations Contact: Brianna Gerber,
Vice President of Finance and Investor Relations 949-419-0288 ext.
127 briannag@chromadex.com
ChromaDex Media Contact: Alex Worsham, Vice President of
Global Marketing & Communications 310-388-6706 ext. 689
alexw@chromadex.com
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