Medical Nutrition USA, Inc. (NASDAQ: MDNU), a developer and
distributor of nutrition-medicine products, announced today
financial results for the fourth quarter and fiscal year ended Jan.
31, 2010.
Fourth Quarter Fiscal 2010 vs. 2009
-- Branded product revenue increased 22% to $4,129,200 from $3,395,000;
-- Total sales increased 22% to $4,482,500 from $3,684,000 on higher
branded product sales offset by lower private label sales;
-- Gross profit increased to $2,482,200 or 55% of sales, from $1,927,600
or 52% of sales;
-- Selling, general and administrative expenses decreased to $1,992,300
or 44% of sales, compared to $2,022,900, or 55% of sales.
-- Net cash provided by operating activities was $839,800 compared to
$222,000; and
-- Net income was $216,700 compared to a net loss of ($136,100).
Year ended January 31 - Fiscal 2010 vs. 2009
-- Branded product revenue increased 19% to $14,856,600 from $12,438,000
on a 19% increase in unit sales;
-- Total sales increased 17% to $16,089,000 from $13,747,200 on higher
branded product sales offset by lower private label sales;
-- Gross profit increased to $8,701,100 or 54% of sales, from $7,273,000,
or 53% of sales.
-- Selling, general and administrative expenses decreased to $7,805,900 or
49% of sales, compared to $7,973,200 or 58% of sales;
-- Net cash provided by operating activities was $2,065,000 compared to
$1,217,900; and
-- Net income was $482,600 or $0.03 per fully diluted share compared to a
loss of ($492,100) or ($0.04) per fully diluted share.
-- The Company ended the year with $11,498,200 in cash and short term
investments and no debt.
"We are pleased to report our third consecutive quarter in which
branded product sales increased by more than 20 percent. The
strategic investments we made in FY2009, which included expanding
the sales force, implementing more aggressive pricing and ramping
up our new product development, have clearly had the desired
effects as evidenced by significant growth in both sales and
profits during FY2010," Medical Nutrition USA Chairman and Chief
Executive Officer Frank A. Newman, said. "We expect this momentum
to continue and that our operating strategy will result in
sustained growth in revenue and profit in FY2011 and beyond.
"An important element in our growth has been the introduction of
new and improved products for chronic conditions affecting
long-term care residents and acute care patients. Also, our ongoing
support for independent clinical trials to study the effectiveness
of our products is a key factor in their rate of adoption by
clinicians.
"The year just ended was especially productive for us as we
introduced three new products: Pro-Stat Advanced Wound Care with
Citrulline® for hard-to-heal pressure ulcers; Fiber-Stat® with
Prune Juice for chronic irregularity; and Diff-Stat™ for antibiotic
associated diarrhea and C-diff.
"In addition to our product introductions, in fiscal 2010 we
also entered into a licensing agreement for retail sales of our
urinary tract infection product, and saw the publication of two
more peer-reviewed clinical studies attesting to the effectiveness
of our products.
"Despite ongoing investments in the business, our cash position
continues to build and we remain debt free. We also continue to
actively consider opportunities to add complementary products and
capabilities to accelerate growth above and beyond our organic
rate," Mr. Newman said.
FY2011 outlook
The Company announced that it expects its total sales to
increase approximately 20% for FY2011, with stable gross margins
and improved SG&A leverage.
Conference call
Management will host a webcast conference call today at 11:00
a.m. EDT to discuss these results, recent activities, corporate
news and Company strategy.
A live webcast of the conference call can be accessed through
the company's web site at:
http://ir.medicalnutritionusa.com/events.cfm. The live conference
call dial-in number is: (866) 639-9991 (United States and Canada)
or (678) 302-3571 (international callers); ask the operator to
connect you to the Medical Nutrition USA Investor Call.
An archive of the webcast with audio can be accessed through the
same link above. An audio-only replay of the call will be available
following the conference call by dialing (866) 510-4862 (United
States and Canada) or (678) 302-3562 (international callers) and
entering the code, 4804300# followed by 4 and the following
confirmation code: 201002225104127#. The audio-only replay will be
available through Saturday, April 3.
About Medical Nutrition USA, Inc.
Medical Nutrition USA develops and distributes products for the
nutritionally at risk who are under medical supervision. Its
products are used primarily in long-term care facilities,
hospitals, dialysis clinics and bariatric clinics. The Company's
product lines include Pro-Stat®, Fiber-Stat®, UTI-Stat™ and
Diff-Stat™ as well as private label products. Additional
information is available at www.mdnu.com.
Forward-Looking Statements
This news release contains forward-looking statements that are
subject to certain risks and uncertainties. Although we believe
that the expectations reflected in any of our forward-looking
statements are reasonable, actual results could differ materially
from those projected or assumed. Risks and uncertainties that could
cause or contribute to such material difference include, but are
not limited to, general economic conditions, changes in customer
demand, changes in trends in the nursing home, renal care, health
food and bariatric surgery markets, changes in competitive pricing
for products, and the impact of our competitors' new product
introductions. Our future financial condition and results of
operations, as well as any forward-looking statements are subject
to change and inherent risk and uncertainties. Other important
factors that may cause actual results to differ materially from
those expressed in forward-looking statements are contained in the
Medical Nutrition USA, Inc. Annual Report on Form 10-K for the year
ended January 31, 2009 as filed with the Securities and Exchange
Commission on April 24, 2009 and Form 10-Q for the quarter ended
Oct. 31, 2009 filed on Dec. 4, 2009.
MEDICAL NUTRITION USA, INC.
BALANCE SHEETS
January 31,
2010 2009
------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 4,416,900 $ 9,654,300
Short-term investments 7,081,300 --
Accounts receivable, net of allowance of
$52,200 and $65,600, respectively 1,479,100 1,377,400
Inventories 596,100 510,600
Deferred income taxes 480,400 406,500
Prepaid income taxes -- 8,300
Other current assets 188,800 191,900
------------ ------------
Total current assets 14,242,600 12,149,000
Fixed assets, net of accumulated depreciation
and amortization of $471,900 and $345,400,
respectively 251,000 318,800
Other assets:
Deferred income taxes 442,300 969,000
Security deposits 15,300 15,300
Investment in Organics Corporation of
America 125,000 125,000
Intangible assets, net of amortization 277,300 276,800
------------ ------------
$ 15,353,500 $ 13,853,900
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 797,200 $ 530,700
Accrued expenses 1,011,000 967,600
Income taxes payable 149,800 --
Accrued rebates 54,200 73,700
------------ ------------
Total current liabilities 2,012,200 1,572,000
Stockholders' Equity:
Preferred stock $0.001 par value, 5,000,000
shares authorized; no shares issued and
outstanding at January 31, 2010 and 2009 -- --
Common stock, $0.001 par value; 20,000,000
shares authorized, 14,437,425 shares
issued as of January 31, 2010 and
14,128,614 shares issued as of
January 31, 2009 14,400 14,100
Additional paid-in-capital 25,434,000 25,067,600
Accumulated deficit (12,015,300) (12,497,900)
Accumulated other comprehensive income 11,600 --
------------ ------------
13,444,700 12,583,800
Less: treasury stock, at cost; 22,851 and
98,080 shares, respectively (103,400) (301,900)
------------ ------------
Total stockholders' equity 13,341,300 12,281,900
------------ ------------
$ 15,353,500 $ 13,853,900
MEDICAL NUTRITION USA, INC.
STATEMENTS OF OPERATIONS
Years Ended January 31,
2010 2009
------------ ------------
Sales $ 16,089,000 $ 13,747,200
Cost of sales 7,387,900 6,474,200
------------ ------------
Gross profit 8,701,100 7,273,000
------------ ------------
Selling, general and administrative expenses 7,612,600 7,921,700
Research and development expenses 193,300 51,500
------------ ------------
Operating income (loss) 895,200 (700,200)
------------ ------------
Interest income 190,100 237,800
------------ ------------
Income (loss) before income tax expense 1,085,300 (462,400)
Income tax expense 602,700 29,700
------------ ------------
Net income (loss) $ 482,600 $ (492,100)
------------ ------------
Earnings (loss) per common share:
Basic $ 0.04 $ (0.04)
------------ ------------
Diluted $ 0.03 $ (0.04)
------------ ------------
Contacts: Medical Nutrition USA, Inc. Frank J. Kimmerling Vice
President/CFO 800.221.0308 Email Contact Investor Relations Adam
Friedman 212.981.2529 x18 Email Contact
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