Full Press Release Details
CHROMADEX CORPORATION REPORTS SECOND QUARTER 2018 FINANCIAL
-Second Quarter 2018 Net Revenues Increased by 85% to $7.8 Million
IRVINE, Calif., August 9, 2018 (GLOBE NEWSWIRE) - ChromaDex Corp. (NASDAQ:CDXC), an integrated,
science-based, nutraceutical company devoted to improving the way
people age with its flagship ingredient NIAGEN and consumer
product TRU NIAGEN , announced today
second quarter 2018 financial results.
Second Quarter 2018 Highlights vs. Second Quarter 2017
fueled by growth of TRU NIAGEN ;
TRU NIAGEN sales at 66% of NIAGEN-related sales, up from
NIAGEN -related sales at 73% of total sales, up from
Gross profit as a percentage of net sales nearly flat at
approximately 49%; and
International expansion continued with launch of TRU NIAGEN on
Amazon in UK and appointment of Matakana Superfoods (MSF) as
exclusive distributor of TRU NIAGEN in New Zealand.
TRU NIAGEN brand continued to grow worldwide in the second quarter
of 2018, and sales growth once again exceeded our plan, said
Rob Fried, Chief Executive Officer. We are continuing to
make necessary marketing, legal and R&D investments, and we
remain encouraged by our progress.
Jaksch, Jr., Executive Chairman and co-founder of ChromaDex
commented: The success we have seen with TRU NIAGEN in our
sales growth reflects the accelerating expansion of published
science, backed by human clinical data, around NIAGEN and its
benefits to human health and wellness.
Results of operations for the three months ended June 30,
three months ended June 30, 2018 ( Q2 2018 ), ChromaDex
reported net sales of $7.8 million, up 85% compared to $4.2 million
from continuing operations in the second quarter of 2017 ("Q2
2017"). The increase in second quarter revenues was driven by
growth in sales of TRU NIAGEN.
margin as a percentage of sales remained nearly flat at 49.3% for
Q2 2018 compared to 50.0% for Q2 2017. In 2018, we elected to
account for shipping and handling activities performed as cost of
sales under a fulfillment cost and not as sales adjustments. The
impact of such election for Q2 2018 was approximately $0.4 million,
which had a negative impact of approximately 290 basis points on
the gross margin rate for Q2 2018. Excluding the impact of the
election to account for shipping and handling activities as a cost
of sales, we experienced better gross margins due to the positive
impact of TRU NAIGEN consumer product sales, which we anticipate
expenses were $11.8 million in the second quarter of 2018, compared
to $4.8 million from continuing operations in the same period for
2017. The increase of $7.0 million in operating expenses for second
quarter was the result of the Company's strategic decision to
invest $2.8 million in advertising and marketing to build out the
TRU NIAGEN brand, higher R&D expenses of $0.5 million as well
as higher legal costs of $1.3 million, and higher stock-based
compensation expense of $1.4 million. Excluding legal and
equity-based compensation expenses, general and administrative
expenses were $2.9 million, up by $1.5 million as compared to the
loss for the second quarter of 2018 was $8.1 million or ($0.15) per
share as compared to a net loss from continuing operations of $2.7
million or ($0.06) per share for Q2 2017. The higher losses in the
result of the strategic decision to invest ahead of growth
including higher stock-based compensation expense related to the
hiring of senior executives, and higher legal fees, partially
offset by higher sales volume and gross profits.
second quarter of 2018, the reported loss was negatively impacted
by a non-cash charge of $1.8 million related to stock-based
EBITDA, a non-GAAP measure, was ($6.0) million for Q2 2018,
compared to adjusted EBITDA of ($2.1) million for Q2 2017.
ChromaDex defines Adjusted EBITDA as net income (loss) adjusted for
income tax, interest, depreciation, amortization and non-cash stock
compensation costs. The Basic and Diluted Adjusted EBITDA per share
for Q2 2018 was ($0.11) versus ($0.05) for Q2 2017.
first half of 2018, the net cash used in operating activities was
$10.5 million versus $5.6 million in the prior year. The Company
ended the second quarter of 2018 with a solid balance sheet with
cash of $33.4 million.
2018, the Company expects to realize continued growth in TRU NIAGEN
sales driven by our U.S. ecommerce and Watsons' international
business, as well as the launch of TRU NIAGEN in certain new
international markets. The Company will continue to invest in
marketing expenditures to build out the TRU NIAGEN brand and new
capabilities to support growth.
second half of the year, and full year, we currently expect working
capital to be a positive source of cash of $3 to $5 million for the
full year, as we expect our net losses to moderate in the second
half of the year and as we continue to tightly manage working
capital for the balance of the year.
expect the company will generate positive cash flow by the end of
Investor Conference Call
management will host an investor conference call to discuss the
year end results and provide a general business update on Thursday,
August 9, at 4:30pm ET.
should call in at least 10 minutes prior to the call. The dial-in
information is as follows:
Thursday, August 9, 2018
4:30 p.m. Eastern time (1:30 p.m. Pacific time)
dial-in number: 1-866-327-8118
dial-in number: 1-678-509-7526
webcast replay will be available after the completion of the call
on the Investor Relations section of the Company website,
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