Full Press Release Details
CHROMADEX CORPORATION REPORTS 2018 FINANCIAL RESULTS
- Full Year 2018 Net Revenues Increased by 49% to $31.6 Million and
Fourth Quarter 2018 Net Revenues Increased by 20% to $9.1 Million
Fourth Quarter 2018 Highlights vs. Fourth Quarter 2017
Entered into a global license and supply agreement with Nestl
Health Science ( NHSc ), which provides NHSc with the
exclusive right to include TRU NIAGEN in its branded medical
nutrition products and co-exclusive rights to include TRU NIAGEN in
its protein based ready to drink or loose powder
approval to sell TRU NIAGEN across all channels in Canada, with
www.truniagen.ca and to healthcare
practitioners at Fullscript Canada; and
Net sales for the fourth quarter of 2018 were $9.1 million, an
increase of 20% compared to $7.5 million in the fourth quarter of
Full Year 2018 Highlights vs. Full Year 2017
Net sales for the full year 2018 were a record $31.6 million, an
increase of 49% compared to $21.2 million for the full year
TRU NIAGEN net sales for the full year 2018 were $18.5 million, an
increase of 238% compared to $5.5 million for the full year 2017;
Patent Trademark Office confirmed the validity of the patents
company exclusively licenses for NIAGEN , and company is
prepared to vigorously prosecute its pending infringement
LOS ANGELES, March 7, 2019 (GLOBE NEWSWIRE) - ChromaDex Corp. (NASDAQ:CDXC)
reported fourth quarter and full year 2018 financial
momentum continues with another strong quarter, and a strong year
overall. In 2018, we successfully focused on the fundamentals,
continuing to grow our business and strengthen our patents, while
assembling a visionary leadership team, enhancing brand awareness,
expanding our global reach, and securing a supply and license
agreement with another great global partner, Nestl
Health Science, said Rob Fried, ChromaDex Chief Executive
Results of operations for the three months ended December 31,
three months ended December 31, 2018 ( Q4 2018 ),
ChromaDex reported net sales of $9.1 million, up 20% compared to
$7.5 million in the fourth quarter of 2017 ("Q4 2017"). The
increase in Q4 2018 revenues was driven by growth in sales of TRU
margin as a percentage of net sales improved by 110 basis points to
52.0% for Q4 2018 compared to 50.9% versus the prior year. We
experienced better gross margins due to the positive impact of TRU
NIAGEN consumer product
sales, which was partially offset by a negative impact of 140 basis
points related to our decision to wind down sales for two
ingredients in our ingredients segment.
expenses were $13.0 million in Q4 2018, compared to $12.6 million
in the same period for 2017. The increase of $0.4 million in
operating expenses was the result of the Company's strategic
decision to invest $2.3 million more in advertising and marketing
to build out the TRU NIAGEN brand, offset by $1.8 million of lower
general and administrative spending and $0.2 million lower R&D
expenses. The lower general and administrative expenses was
primarily due to lower equity-based compensation expenses, which
decreased by $1.6 million, from $3.4 million to $1.8
loss for the fourth quarter of 2018 was $8.2 million or ($0.15) per
share as compared to a net loss of $8.8 million or ($0.17) per
share for the fourth quarter of 2017. For Q4 2018, the reported
loss was negatively impacted by a non-cash charge of $2.0 million
related to equity-based compensation.
Results of operations for the year ended December 31,
full year 2018, net revenues were $31.6 million, up 49% compared to
$21.2 million from continuing operations for full year 2017,
the growth of TRU NIAGEN. TRU
NIAGEN net revenues increased by 238%, from $5.5 million to $18.5
million and represented 58% of the total company's
margin as a percentage of net sales improved for full year 2018 by
150 basis points to 50.9% compared to 49.4% for the same period in
2017. We experienced better margins due to the positive impact of
expenses were $49.2 million for full year 2018, compared to $26.9
million from continuing operations in the same period for 2017. The
increase of $22.3 million in operating expenses for full year 2018
was the result of the Company's strategic decision to invest
$12.1 million more in advertising and marketing to build the TRU
NIAGEN brand, as well as higher R&D expenses of $1.5 million,
higher legal costs of $4.7 million, and higher equity-based
compensation of $1.0 million in general and administrative
expenses. Excluding legal and equity-based compensation expenses,
general and administrative expenses were $11.7 million, up by $3.8
million as compared to the prior year.
loss for full year 2018 was $33.3 million or ($0.61) per share as
compared to a loss from continuing operations of $16.5 million or
($0.37) per share for full year 2017. For full year 2018, the
reported loss was negatively impacted by a non-cash charge of $6.4
million related to equity-based compensation.
full year 2018, the net cash used in operating activities was $20.9
million versus $9.8 million in the prior year. The Company ended
the year of 2018 with a solid balance sheet with cash of $22.6
million, which does not include the $4 million upfront payment from
payment was received in the first quarter of 2019.
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 in absolute dollars as well as general and
administrative expenses as a percentage of net sales.
on these drivers, we continue to expect the Company to be cash flow
breakeven by the fourth quarter of 2019 or early 2020.
Investor Conference Call
management will host an investor conference call to discuss the
year end results and provide a general business update on Thursday,
March 7, at 4:30pm ET.