Full Press Release Details
ChromaDex Corporation Reports Third Quarter 2020 Financial
Revenue for the Three-Month Period Ended September 30, 2020 Totals
$14.2 Million, up 18% Year-over-Year, with Gross Margin of 59.6%,
and Lower Operating Expenses
LOS ANGELES, November 4, 2020 (BUSINESS WIRE) - ChromaDex Corp. (Nasdaq:CDXC)
reported third quarter financial results.
2020 Third Quarter and Recent Highlights
Total net sales of $14.2 million, up 18% from $12.1 million from
the year ago quarter.
Tru Niagen net sales of $11.9 million, a 22% increase from
the year ago quarter.
Net loss was ($4.2) million or ($0.07) per share, an improvement of
$0.05 per share year-over-year.
Adjusted EBITDA excluding total legal expense, a non-GAAP measure,
was a loss of ($0.1) million, a $1.7 million improvement
Announced Phase 2 results from
study in Turkey showing nutritional protocol including nicotinamide
riboside ( NR ) plus local standard of care reduced
recovery time in COVID-19 patients by nearly
Growing body of clinical research suggests that nicotinamide
riboside (Niagen ) may support areas of human health with
broad addressable markets, including cardiovascular and immune
health, with additional studies underway.
Nestl Health Science's new Celltrient Cellular
Energy products featuring Tru Niagen launched in the United
States, following the launch of Tru Niagen capsules on
Persona, a Nestl Health Science company and leading
personalized vitamin subscription program, earlier this
delivered strong third quarter sales of Tru Niagen with sequential
growth in our e-commerce business and with Watsons, and our partner
Nestl Health Science released their new product line
Celltrient, featuring Tru Niagen, says ChromaDex CEO Rob
Fried. Our scientists and research partners also published
important new data furthering our understanding of increased
levels and immune health, including research on
Results of operations for the three months ended September 30,
three months ended September 30, 2020 ( Q3 2020 ),
ChromaDex reported net sales of $14.2 million, up 18% compared to
$12.1 million in the third quarter of 2019 ("Q3 2019"). The
increase in Q3 2020 revenues was driven by growth in sales of Tru
margin increased by 360 basis points to 59.6% in Q3 2020 compared
to 56.0% in Q3 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.
expenses decreased by $1.0 million to $12.7 million in Q3 2020,
compared to $13.6 million in Q3 2019. The decrease in operating
expenses was driven by a decrease of $1.4 million in general and
administrative expense, and a decrease of $0.2 million of research
and development expense, partially offset by $0.6 million of higher
selling and marketing expense. The decrease in general and
administrative expense was driven by $1.0 million of lower legal
loss for Q3 2020 was ($4.2) million or ($0.07) per share compared
to a net loss of ($7.2) million or ($0.12) per share for Q3
EBITDA excluding total legal expense, a non-GAAP measure, was a
loss of ($0.1) million for Q3 2020, compared to a loss of ($1.9)
million for Q3 2019, a $1.7 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 ($3.8) million
versus ($7.8) million in Q3 2019.
Company's full year financial outlook is unchanged from last
quarter. 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. The
Company does not expect any supply chain disruption related to the
impact of COVID-19 at this time and, while the revenue impact is
difficult to predict, the Company is managing expenses to mitigate
the bottom-line impact.
Investor Conference Call
management will host an investor conference call to discuss the
third quarter results and provide a general business update on
Wednesday, November 4, at 4:30pm ET.
should call in at least 10 minutes prior to the call. The dial-in
information is as follows:
Date: Wednesday, November 4, 2020
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific
Toll-free dial-in number: (833)
International dial-in number: (236) 714-2223
Conference ID: 4699759
Webcast link: ChromaDex Third
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
Toll-free replay number: 800-585-8367