Full Press Release Details
CHROMADEX CORPORATION REPORTS THIRD QUARTER 2018 FINANCIAL
-Third Quarter 2018 Net Revenues Increased by 33% to $8.1 Million
Third Quarter 2018 Highlights vs. Third Quarter 2017
fueled by growth of TRU NIAGEN , which increased by
TRU NIAGEN sales at 84% of NIAGEN-related sales, up from
Gross profit as a percentage of net sales improved by 580 basis
Launched TRU NIAGEN PRO (60ct, 300mg per capsule), the highest dose
of NR in a single capsule;
Earned certification from NSF International Certified for Sport
Signed MOU for creation of a strategic partnership for aging
research in Jiangxi Province, China
LOS ANGELES, November 7, 2018 (GLOBE NEWSWIRE) - ChromaDex Corp. (NASDAQ:CDXC)
reported third quarter 2018 financial results.
encouraged by the progress we made in the third quarter and remain
enthusiastic about the future, TRU NIAGEN continued to show
dramatic growth and we are building a platform and brand for strong
future growth. said Rob Fried, Chief Executive
Results of operations for the three months ended September 30,
three months ended September 30, 2018 ( Q3 2018 ),
ChromaDex reported net sales of $8.1 million, up 33% compared to
$6.1 million from continuing operations in the third quarter of
2017 ("Q3 2017"). The increase in third quarter revenues was driven
by growth in sales of TRU NIAGEN.
margin as a percentage of sales improved by 580 basis points to
53.7% for Q3 2018 compared to 47.9% for Q3 2017. We experienced
better gross margins due to the positive impact of TRU NAIGEN
consumer product sales, which we anticipate will
expenses were $13.0 million in the third quarter of 2018, compared
to $6.1 million from continuing operations in the same period for
2017. The increase of $6.9 million in operating expenses for third
quarter was the result of the Company's strategic decision to
invest $3.7 million more in advertising and marketing to build out
the TRU NIAGEN brand, as well as higher R&D expenses of $0.3
million, higher legal costs of $1.2 million, and higher stock-based
compensation expense of $0.6 million. Excluding legal and
equity-based compensation expenses, general and administrative
expenses were $3.0 million, up by $1.1 million as compared to the
loss for the third quarter of 2018 was $8.6 million or ($0.16) per
share as compared to a net loss from continuing operations of $3.2
million or ($0.07) per share for Q3 2017.
third quarter of 2018, the reported loss was negatively impacted by
a non-cash charge of $1.3 million related to stock-based
EBITDA, a non-GAAP measure, was ($7.1) million for Q3 2018,
compared to adjusted EBITDA from continuing operations of ($2.5)
million for Q3 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 Q3 2018 was ($0.13) versus
($0.05) from continuing operations for Q3 2017.
first nine months of 2018, the net cash used in operating
activities was $15.8 million versus $6.0 million in the prior year.
The Company ended the third quarter of 2018 with a solid balance
sheet with cash of $28.2 million.
forward, the Company expects the revenue growth to be 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 efficiently in
marketing expenditures to build out the TRU NIAGEN brand and new
capabilities to support growth. In addition, as necessary, we will
continue to invest in legal costs to protect our intellectual
We continue to 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 fourth
quarter and we continue to tightly manage working capital for the
balance of the year.
Investor Conference Call
management will host an investor conference call to discuss the
year end results and provide a general business update on Thursday,
November 7, at 4:30pm ET.
should call in at least 10 minutes prior to the call. The dial-in
information is as follows:
Thursday, November 7, 2018
4:30 p.m. Eastern time (1:30 p.m. Pacific time)
number: (866) 327-8118
dial-in number: (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
non-GAAP financial measures exclude interest, tax, depreciation,
amortization and share-based compensation for adjusted
EBITDA. 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 an
integrated, global 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 NIAGEN is helping the world
AGE BETTER . ChromaDex maintains a website