LONG BEACH, Calif. and LONGMONT, Colo., Feb. 14, 2002 (PRIMEZONE) -- Hauser, Inc. (OTCBB:HAUS) today reported its financial results for the fiscal 2002 third quarter ended December 31, 2001.
For the fiscal 2002 third quarter, Hauser's total revenues increased to $14.1 million from $13.1 million in the corresponding year-earlier quarter. The net loss was $2.3 million, or $0.41 per share, compared to a net loss in the corresponding quarter a year ago of $5.2 million, or $1.05 per share. Loss from operations was $2.0 million, compared with loss from operations of $5.9 million in the same quarter a year ago. Excluding a restructuring charge of $1.6 million, loss from operations totaled $401,000.
Total revenues for the first nine months of fiscal 2002 were $43.3 million, compared with $52.3 million a year ago. For the first nine months of fiscal 2002, Hauser recorded a net loss of $3.9 million, or $0.70 per share, compared with net loss in the year-earlier period of $10.2 million, or $2.08 per share. Loss from operations totaled $2.7 million, compared with loss from operations of $10.3 million in the first nine months of fiscal 2001.
"The fiscal third quarter restructuring expenses relate to facilities consolidations that have streamlined manufacturing operations, and contractual severance costs," said Kenneth Cleveland, president and chief executive officer. "I am pleased to report that our gross margins continue to improve, not only on a year-over-year basis, but also as compared to the preceding fiscal second quarter."
Hauser, headquartered in Long Beach, California and Longmont, Colorado, is a leading supplier of herbal extracts and nutritional supplements. The company also provides interdisciplinary laboratory testing services, chemical engineering services, and contract research and development. The company's products and services are principally marketed to the pharmaceutical, dietary supplement and food ingredient businesses. Hauser's business units include: Botanicals International, Shuster Laboratories, ZetaPharm and Hauser Contract Research Organization.
Certain oral and written statements of management of the Company included in this Press Release and elsewhere may contain forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. These statements include the plans and objectives of management for future operations. The forward-looking statements included herein and elsewhere are based on current expectations that involve judgments which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.
HAUSER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS-Unaudited
Three months ended Nine months ended
December 31, December 31,
2001 2000 2001 2000
----------- ----------- ----------- ------------
REVENUES:
Dietary
supplements $ 7,373,000 $ 8,123,000 $24,379,000 $30,893,000
Pharma-
ceutical
and
functional
ingredients 1,574,000 1,062,000 4,501,000 8,766,000
Technical
services 5,139,000 3,955,000 14,403,000 11,923,000
Other -- -- -- 668,000
----------- ----------- ----------- ------------
Total
revenues 14,086,000 13,140,000 43,283,000 52,250,000
----------- ----------- ----------- ------------
COST OF
REVENUES:
Dietary
supplements 5,416,000 10,314,000 18,726,000 31,374,000
Pharmaceutical
and
functional
ingredients 1,315,000 1,024,000 3,746,000 8,206,000
Technical
services 3,616,000 3,575,000 10,856,000 10,323,000
----------- ----------- ----------- ------------
Total cost
of revenues 10,347,000 14,913,000 33,328,000 49,903,000
----------- ----------- ----------- ------------
GROSS PROFIT 3,739,000 (1,773,000) 9,955,000 2,347,000
----------- ----------- ----------- ------------
OPERATING
EXPENSES:
Research and
development 658,000 514,000 1,938,000 1,824,000
Sales and
marketing 1,005,000 861,000 2,488,000 2,950,000
General and
admini-
strative 2,477,000 2,719,000 6,246,000 7,848,000
Restructuring
charge 1,557,000 -- 1,957,000 --
----------- ----------- ----------- ------------
Total
operating
expenses 5,697,000 4,094,000 12,629,000 12,622,000
----------- ----------- ----------- ------------
LOSS FROM
OPERATIONS (1,958,000) (5,867,000) (2,674,000) (10,275,000)
----------- ----------- ----------- ------------
OTHER INCOME
(EXPENSE):
Interest
and other
income 1,000 258,000 10,000 285,000
Interest
expense (391,000) (577,000) (1,212,000) (1,795,000)
Net gain
from sale
of assets -- 1,033,000 -- 1,634,000
----------- ----------- ----------- ------------
Total other
(expense)
income (390,000) 714,000 (1,202,000) 124,000
----------- ----------- ----------- ------------
LOSS BEFORE
INCOME TAX (2,348,000) (5,153,000) (3,876,000) (10,151,000)
INCOME TAX
EXPENSE
(BENEFIT) -- -- -- --
----------- ----------- ----------- ------------
NET LOSS $(2,348,000) $(5,153,000) $(3,876,000) $(10,151,000)
=========== =========== =========== ============
LOSS PER
SHARE
BASIC AND
DILUTED: $ (0.41) $ (1.05) $ (0.70) $ (2.08)
=========== =========== =========== ============
WEIGHTED
AVERAGE
SHARES
OUTSTANDING
- BASIC AND
DILUTED 5,769,808 4,889,020 5,560,341 4,883,444
=========== =========== =========== ============
HAUSER, INC.
CONSOLIDATED BALANCE SHEETS-Unaudited
December 31, March 31,
ASSETS 2001 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 494,000 $ 616,000
Accounts receivable, less
allowance for doubtful accounts:
December 31, 2001, $843,000;
March 31, 2001, $877,000 10,946,000 12,272,000
Inventory, at cost or market 8,529,000 9,802,000
Prepaid expenses and other 1,575,000 928,000
------------ ------------
Total current assets 21,544,000 23,618,000
------------ ------------
PROPERTY AND EQUIPMENT:
Land and buildings 8,980,000 8,967,000
Laboratory and processing
equipment 15,488,000 17,402,000
Furniture and fixtures 3,287,000 3,588,000
------------ ------------
Total property and equipment 27,755,000 29,957,000
Accumulated depreciation
and amortization (15,648,000) (17,258,000)
------------ ------------
Net property and equipment 12,107,000 12,699,000
------------ ------------
OTHER ASSETS:
Goodwill, less accumulated
amortization: December 31, 2001
$1,440,000; March 31, 2000,
$1,273,000 781,000 948,000
Debt issuance cost 532,000 --
Deposits and other 417,000 574,000
------------ ------------
$ 35,381,000 $ 37,839,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 3,054,000 $ 2,833,000
Current portion of long-term debt 18,519,000 18,790,000
Accrued salaries and benefits 1,505,000 2,126,000
Deposits 839,000 643,000
Accrued exit costs 1,393,000 508,000
Other current liabilities 4,610,000 4,988,000
------------ ------------
Total current liabilities 29,920,000 29,888,000
------------ ------------
LONG-TERM DEBT -- 36,000
------------ ------------
NOTE PAYABLE TO RELATED PARTY 2,793,000 2,705,000
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock, $.001 par value;
20,000,000 shares authorized;
shares issued and outstanding:
December 31, 2001, 5,781,965;
March 31, 2001, 5,072,742 6,000 5,000
Additional paid-in capital 95,345,000 94,544,000
Warrants 886,000 354,000
Accumulated deficit (93,569,000) (89,693,000)
------------ ------------
2,668,000 5,210,000
------------ ------------
$ 35,381,000 $ 37,839,000
============ ============