Full Press Release Details
CHROMADEX CORPORATION REPORTS SECOND QUARTER 2020 FINANCIAL
Second Quarter 2020 Highlights vs. Second Quarter 2019
Strong growth in net sales to $15.3 million, higher gross margins,
and significantly improved marketing efficiency
Tru Niagen net sales of $11.7 million, a 34% increase
Net loss was ($3.7) million or ($0.06) per share, an improvement of
$0.08 per share year over year. Adjusted EBITDA excluding total
legal expense, a non-GAAP measure, was a profit of $0.5 million, a
$2.6 million improvement year-over-year.
transfer agreement through ChromaDex External Research Program
(CERP), which has resulted in 60 published studies to date,
including 10 published clinical studies, on
announced last month, will assess the impact of Niagen in
COVID-19 animal models in collaboration with the National Institute
of Allergy and Infectious Diseases (NIAID), a division of the
National Institutes of Health (NIH).
LOS ANGELES, August 6, 2020 (BUSINESS WIRE) - ChromaDex Corp. (NASDAQ:CDXC)
reported second quarter 2020 financial results.
achieved record net sales of $15.3 million in the second quarter
while maintaining our focus on the science, announcing our
research agreement and tenth published human trial on
Niagen , says ChromaDex CEO Rob Fried. Business
adjustments at the onset of the pandemic and continued marketing
efficiencies allowed us to reach a financial goal of positive
Adjusted EBITDA excluding total legal expenses.
Results of operations for
the three months ended June 30, 2020
three months ended June 30, 2020 ( Q2 2020 ), ChromaDex
reported net sales of $15.3 million, up 38% compared to $11.1
million in the second quarter of 2019 ("Q2 2019"). The increase in
Q2 2020 revenues was driven by growth in sales of Tru Niagen
and Niagen ingredient
margin increased by 310 basis points to 59.4% in Q2 2020 compared
to 56.3% in Q2 2019. The increase in gross margin was largely
driven by the positive impact of increased Tru Niagen consumer product sales and product
cost saving initiatives, including a benefit of approximately 110
basis points related to savings from prior year initiatives that
were recognized in Q2 2020.
expenses decreased by $0.7 million to $12.8 million in Q2 2020,
compared to $13.4 million in Q2 2019. The decrease in operating
expenses was driven by a decrease of $1.1 million in general and
administrative expense, and a decrease of $0.1 million of research
and development expense, partially offset by $0.7 million of higher
selling and marketing expense. The decrease in general and
administrative expense was driven by $1.1 million of lower legal
loss for Q2 2020 was ($3.7) million or ($0.06) per share compared
to a net loss of ($7.8) million or ($0.14) per share for Q2
EBITDA excluding total legal expense, a non-GAAP measure, was a
profit of $0.5 million for Q2 2020, compared to a loss of ($2.1)
million for Q2 2020, a $2.6 million improvement.
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.
2020, the net cash used in operating activities was ($1.6) million
versus ($9.0) million in Q2 2019.
forward, the impact of COVID-19 on revenues is difficult to predict
and the Company is managing expenses to mitigate the bottom-line
impact. The Company does not expect any supply chain disruption at
this time and, based on trends-to-date, expects continued revenue
growth this year. Based on the Company's current financial
outlook, revenue growth will be driven by its U.S. ecommerce
business, new international market launches with its partners and
distributors, such as in the U.K. and Australia, new online
platforms, including Persona Nutrition, a Nestl Health
Science company, and the Company's new product, Tru
Niagen Beauty. The Company expects continued gross
margin improvement driven by a higher mix of Tru Niagen
sales, product design changes implemented in late 2019, and
additional supply chain cost savings initiatives in 2020. The
Company expects lower selling, marketing and advertising as well as
general and administrative expenses as a percentage of net sales
driven by strong growth from returning customers and scale on our
fixed overhead costs driven by organizational realignment
initiatives, as well as new systems and processes.
Investor Conference Call
management will host an investor conference call to discuss the
first quarter results and provide a general business update on
Thursday, August 6, at 4:30pm ET.
should call in at least 10 minutes prior to the call. The dial-in
information is as follows:
Date: Thurs., August 6, 2020
p.m. Eastern time (1:30 p.m. Pacific time)
Toll-free dial-in number: (833) 979-2703
International dial-in number: (236) 714-2223
Conference ID: 1563949
Webcast link: ChromaDex Second
Quarter 2020 Earnings Conference Call
The conference call will be broadcast live and available for
via the investor relations section of the Company's website
A replay of the conference call will be available after 7:30
replay number: 800-585-8367
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:
EBITDA excluding total legal expense excludes interest, income tax,
depreciation, amortization, non-cash share-based compensation