Full Press Release Details
CHROMADEX CORPORATION REPORTS THIRD QUARTER 2019 FINANCIAL
Third Quarter 2019 Highlights vs. Third Quarter 2018
Strong growth in net sales to $12.1 million, improved gross margin,
and significantly improved marketing efficiency
TRU NIAGEN net sales of $9.7 million, an 11% increase sequentially
and an 86% increase year-over-year.
Strengthened balance sheet with $7 million private placement of
common stock. Additionally, $10 million of convertible notes were
converted into common stock.
Received positive opinion on Nicotinamide Riboside as a novel food
from world-leading European Food Safety Authority (EFSA); a
milestone step in the EU regulatory process with commercialization
expected in mid-2020.
In November 2019, secured a $7 million committed line of credit to
help manage working capital investments.
LOS ANGELES, November 12, 2019 (GLOBE NEWSWIRE) - ChromaDex Corp. (NASDAQ:CDXC)
reported third quarter 2019 financial results.
We had another strong quarter with total net sales of $12.1
million, up 9% sequentially and 48% year-over-year, said
ChromaDex CEO Rob Fried. In addition, we improved the gross
margin and expanded our global footprint.
Results of operations for the three months ended September 30,
three months ended September 30, 2019 ( Q3 2019 ),
ChromaDex reported net sales of $12.1 million, up 48% compared to
$8.1 million in the third quarter of 2018 ("Q3 2018"). The increase
in Q3 2019 revenues was driven by growth in sales of TRU
margin increased by 230 basis points to 56.0% for Q3 2019 compared
to 53.7% in Q3 2018. The increase in gross margin was driven by the
positive impact of TRU NIAGEN consumer product sales.
expenses increased by $0.7 million to $13.6 million in Q3 2019,
compared to $13.0 million in Q3 2018. The increase in operating
expenses was driven by an increase of $1.2 million of general and
administrative expense, partially offset by $0.3 million of lower
R&D expense and $0.2 million of lower advertising and marketing
expense. The increase in general and administrative expense was
driven by higher legal expense, higher share-based compensation and
higher royalties to patent holders.
loss for the third quarter of 2019 was $7.2 million or ($0.12) per
share as compared to a net loss of $8.6 million or ($0.16) per
share for the third quarter of 2018. For Q3 2019, the reported loss
was negatively impacted by a non-cash charge of $1.7 million
related to equity-based compensation and $0.3 million of debt
discounts related to $10.0 million of convertible notes issued to
certain investors which were recorded as interest
EBITDA excluding total legal expense, a non-GAAP measure, was
($1.9) million for Q3 2019, compared to ($4.3) million for Q3 2018,
a $2.5 million improvement. Sequentially, Adjusted EBITDA excluding
total legal expense improved by $0.2 million compared to ($2.1)
million for the three months ended June 30, 2019. The $0.2 million
improvement was primarily driven by higher gross margins and higher
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 and total legal
third quarter of 2019, the net cash used in operating activities
was $7.8 million versus $5.2 million for the same period in the
prior year. The Company ended the third quarter of 2019 with cash
forward, the Company expects revenue growth to be driven primarily
by its U.S. ecommerce and Watsons international business, as well
as the launch of TRU NIAGEN with other distributors in
certain new international markets. The Company expects
continued gross margin improvement and lower selling, marketing and
advertising as well as general and administrative expenses as a
percentage of net sales.
Investor Conference Call
management will host an investor conference call to discuss the
third quarter results and provide a general business update on
Tuesday, November 12, at 4:30pm ET.
should call in at least 10 minutes prior to the call. The dial-in
information is as follows:
Date: Tue., November 12, 2019
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific
Toll-free dial-in number: (866)
International dial-in number: (647) 689-6604
Conference ID: 9475087
Webcast link: ChromaDex Third
Quarter 2019 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
Toll-free 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:
non-GAAP financial measures exclude interest, income tax,
depreciation, amortization, non-cash share-based compensation costs
and total legal expense for adjusted EBITDA excluding total legal
expense. ChromaDex used these non-GAAP measures when
evaluating its financial results as well as for internal resource
management, planning and forecasting purposes. 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
ChromaDex Corp. is a science-based integrated
nutraceutical company devoted to improving the way people
age. ChromaDex scientists partner with leading
universities and research institutions worldwide to uncover the
full potential of NAD and identify and develop novel, science-based
ingredients. Its flagship ingredient, NIAGEN nicotinamide