Full Press Release Details
CHROMADEX CORPORATION REPORTS FIRST QUARTER 2020 FINANCIAL
First Quarter 2020 Highlights vs. First Quarter 2019
Strong growth in net sales to $14.3 million, higher gross margins,
and significantly improved marketing efficiency
Tru Niagen net sales of $11.1 million, a 50% increase
Net loss was ($5.9) million or ($0.10) 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 ($0.3) million, a
$2.4 million improvement year-over-year.
online in Australia with distribution partner, Matakana Health
Limited, and online through Persona, a Nestl Health
Science company and leading personalized vitamin subscription
Expanded global retail partnership with A.S. Watson Group in April,
launching Tru Niagen in 200 Superdrug U.K. stores and introducing a
new product, Tru Niagen Beauty, in 230 Watsons Hong Kong
Commenced preclinical studies exploring the potential impact of
increasing NAD+ with nicotinamide riboside on coronavirus
LOS ANGELES, May 11, 2020 (BUSINESS WIRE) - ChromaDex Corp. (NASDAQ:CDXC)
reported first quarter 2020 financial results.
We had a strong first quarter with total net sales of
$14.3 million and further global
ChromaDex CEO Rob Fried. We made swift, targeted adjustments
to the business, streamlining costs, updating marketing messages,
and prioritizing scientific research focused on viral stress on
immune response at the cellular level.
Results of operations for
the three months ended March 31, 2020
three months ended March 31, 2020 ( Q1 2020 ),
ChromaDex reported net sales of $14.3 million, up 43% compared to
$10.0 million in the first quarter of 2019 ("Q1 2019"). The
increase in Q1 2020 revenues was driven by growth in sales of Tru
Niagen and Niagen ingredient
margin increased by 520 basis points to 57.9% in Q1 2020 compared
to 52.8% in Q1 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, while Q1 2019 gross margin had a negative
impact of 250 basis points with a charge related to the wind down
of Purple Corn ingredient sales.
expenses increased by $0.5 million to $14.2 million in Q1 2020,
compared to $13.7 million in Q1 2019. The increase in operating
expenses was driven by an increase of $0.5 million in general and
administrative expense, and an increase of $0.3 million of selling
and marketing expense, partially offset by $0.2 million of lower
R&D expense. The increase in general and administrative expense
was driven by $1.0 million of severance and restructuring costs
related to organizational realignment initiatives.
loss for Q1 2020 was ($5.9) million or ($0.10) per share compared
to a net loss of ($8.3) million or ($0.15) per share for Q1
EBITDA excluding total legal expense, a non-GAAP measure, was a
loss of ($0.3) million for Q1 2020, compared to a loss of ($2.7)
million for Q1 2019, a $2.4 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 ($5.2) million
versus ($3.0) million in Q1 2019. In Q1 2019, the net cash used in
operating activities was partially offset by $4.0 million upfront
payment received from Nestl Health Science for the supply of
forward, the impact of COVID-19 on revenues is difficult to predict
and the Company is managing expenses to mitigate the bottom-line
impact. The Company does not expect any supply chain disruption at
this time and, based on trends-to-date, expects continued revenue
growth this year. 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, a Nestl Health Science company,
and our new product launch, 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
Investor Conference Call
management will host an investor conference call to discuss the
first quarter results and provide a general business update on
Monday, May 11, at 4:30pm ET.
should call in at least 10 minutes prior to the call. The dial-in
information is as follows:
Date: Mon., May 11, 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: 8259009
Webcast link: ChromaDex First Quarter 2020 Earnings
The conference call will be broadcast live and available for
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:
EBITDA excluding total legal expense excludes interest, income tax,