Full Press Release Details
CHROMADEX CORPORATION REPORTS FIRST QUARTER 2019 FINANCIAL
- First Quarter 2019 Net Revenues Increased by 53% to $10.0 Million
First Quarter 2019 Highlights vs. First Quarter 2018
Strong start to the year with $10.0 million of net sales, higher
gross margins and increased marketing efficiency
progress building TRU NIAGEN into a global brand with top-line
TRU NIAGEN net sales were $7.5 million, a 15% increase sequentially
and a 146% increase year-over-year
Global expansion continued with e-Commerce roll-out in Canada. Set
foundation for initial Canadian retail launch with Showcase and
WELL Health Technologies in April
LOS ANGELES, May 9, 2019 (GLOBE NEWSWIRE) - ChromaDex Corp. (NASDAQ:CDXC)
reported first quarter 2019 financial results.
interventions that support cellular health, including boosting NAD
levels with our product TRU NIAGEN , are some of the most
actionable steps consumers can take today to enhance their quality
of life as they age. Our strong sales in the first quarter
and continued momentum represent the strength of our science based
business and TRU NIAGEN, said Rob Fried, ChromaDex
Results of operations for the three months ended March 31,
three months ended March 31, 2019 ( Q1 2019 ),
ChromaDex reported net sales of $10.0 million, up 53% compared to
$6.6 million in the first quarter of 2018 ("Q1 2018"). The increase
in Q1 2019 revenues was driven by growth in sales of TRU
margin increased by 500 basis points to 52.8% for Q1 2019 compared
to 47.8% in Q1 2018. The increase in gross margin was driven by the
positive impact of TRU NIAGEN consumer product sales, partially
offset by a negative impact of 250 basis points primarily due to the decision last quarter
to wind down ingredient sales of Purple Corn.
expenses increased by $2.2 million to $13.7 million in Q1 2019,
compared to $11.5 million in Q1 2018. The increase in operating
expenses was driven by increase of $0.9 million of advertising and
marketing and $1.5 million of general and administrative expense,
partially offset by $0.3 million of lower R&D expense. The
increase in general and administrative expense was driven by higher
equity-based compensation expense, royalties to patent holders, and
higher legal expense.
loss for the first quarter of 2019 was $8.3 million or ($0.15) per
share as compared to a net loss of $8.4 million or ($0.15) per
share for the first quarter of 2018. For Q1 2019, the reported loss
was negatively impacted by a non-cash charge of $2.0 million
related to equity-based compensation.
first quarter of 2019, the net cash used in operating activities
was $3.0 million versus $4.0 million for the same period in the
prior year. The net cash used in operating activities for Q1 2019
was partially offset by a $4.0 million upfront payment received
from Nestl Heath Science for the supply of ingredient
NIAGEN . The Company ended the first quarter of 2019 with cash
of $19.3 million, which includes the $4.0 million upfront payment
from Nestl Health Science.
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, the Company expects 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,
May 9, at 4:30pm ET.
should call in at least 10 minutes prior to the call. The dial-in
information is as follows:
Thursday, May 9, 2019
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.
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
riboside, sold directly to consumers as TRU
is backed with clinical and scientific research, as well as
extensive IP protection. TRU
helping the world AGE BETTER . ChromaDex
maintains a website at www.chromadex.com to
which ChromaDex regularly posts copies of its press releases as
well as additional and financial information about the
Important Note on Forward Looking Statements:
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities and Exchange Act of 1934, as amended. Because
such statements are subject to risks and uncertainties, actual
results may differ materially from those expressed or implied by
such forward-looking statements. Such statements include the
quotation from ChromaDex's Chief Executive Officer, and
statements related to future revenue growth being driven by
ChromaDex's U.S. ecommerce and Watsons' international
business, launching TRU NIAGEN in certain new international
markets, the expectations of gross margin improvement, the