Full Press Release Details
CHROMADEX CORPORATION REPORTS SECOND QUARTER 2019 FINANCIAL
- Second Quarter 2019 Net Revenues Increased by 42% to $11.1
Second Quarter 2019 Highlights vs. Second Quarter 2018
Strong growth in net sales to $11.1 million, significantly higher
gross margins, and improved marketing efficiency
TRU NIAGEN net sales of $8.7 million, a 17% increase sequentially
and a 134% increase year-over-year
Global expansion continued with initial cross-border sales in China
and Japan, and new Canadian retail distribution in Whole Foods
New clinical study further demonstrated safety of sustained NIAGEN
supplementation at recommended daily serving as well as
statistically significant sustained blood NAD+ levels
LOS ANGELES, August 7, 2019 (GLOBE NEWSWIRE) - ChromaDex
Corp. (NASDAQ:CDXC) today reported second
quarter 2019 financial results.
successfully continue to build our global TRU NIAGEN brand and
consequentially had another quarter strengthening our business
momentum, economics and brand foundation, said ChromaDex CEO
Results of operations for the three months ended June 30,
three months ended June 30, 2019 ( Q2 2019 ), ChromaDex
reported net sales of $11.1 million, up 42% compared to $7.8
million in the second quarter of 2018 ("Q2 2018"). The increase in
Q2 2019 revenues was driven by growth in sales of TRU
margin increased by 700 basis points to 56.3% for Q2 2019 compared
to 49.3% in Q2 2018. The increase in gross margin was driven by the
positive impact of TRU NIAGEN consumer product
expenses increased by $1.7 million to $13.4 million in Q2 2019,
compared to $11.8 million in Q2 2018. The increase in operating
expenses was driven by an increase of $0.5 million of advertising
and marketing and $1.3 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 royalties to patent holders and higher legal
loss for the second quarter of 2019 was $7.8 million or ($0.14) per
share as compared to a net loss of $8.1 million or ($0.15) per
share for the second quarter of 2018. For Q2 2019, the reported
loss was negatively impacted by a non-cash charge of $1.8 million
related to equity-based compensation and $0.6 million of costs
related to the issuance of $10.0 million convertible notes to
certain investors which were recorded as a debt discount and
amortized as interest expense.
EBITDA excluding total legal expense, a non-GAAP measure, was
($2.1) million for Q2 2019, compared to ($3.9) million for Q2 2018.
Sequentially, Adjusted EBITDA excluding total legal expense
improved by $0.6 million compared to ($2.7) million for the three
months ended March 31, 2019. The $0.6 million improvement was
primarily driven by higher gross margins and higher sales. Adjusted
EBITDA excluding total legal expense for the three months ended
December 31, 2018 and September 30, 2018 were ($4.0) million and
($4.3) million, respectively.
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 and total legal
second quarter of 2019, the net cash used in operating activities
was $9.0 million versus $6.5 million for the same period in the
prior year. The Company ended the second quarter of 2019 with cash
of $19.8 million, which includes the $10.0 million of proceeds from
the issuance of convertible notes.
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 as well as general and administrative expenses as a
percentage of net sales.
Investor Conference Call
management will host an investor conference call to discuss the
second quarter results and provide a general business update on
Wednesday, August 7, at 4:30pm ET.
should call in at least 10 minutes prior to the call. The dial-in
information is as follows:
p.m. Eastern time (1:30 p.m. Pacific time)
dial-in number: 1-866-211-3191
dial-in number: 1-647-689-6604
2019 Earnings Conference Call
conference call will be broadcast live and available for
replay here and via the investor
relations section of the Company's website
replay of the conference call will be available after 7:30
replay number: 1-800-585-8367
replay number: 1-416-621-4642
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:
non-GAAP financial measures exclude interest, income tax,
depreciation, amortization, non-cash share-based compensation costs
and total legal expense for adjusted EBITDA excluding total legal
expense. ChromaDex used these non-GAAP measures when
evaluating its financial results as well as for internal resource
management, planning and forecasting purposes. These non-GAAP
measures should not be viewed in isolation from or as a substitute
for ChromaDex's financial results in accordance with GAAP.
Reconciliation of GAAP to non-GAAP measures are attached to this
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