LONG BEACH, Calif. and LONGMONT, Colo., Aug. 14, 2002 (PRIMEZONE) -- Hauser, Inc. (OTCBB:HAUS) today reported financial results for its fiscal 2003 first quarter ended June 30, 2002.
For the fiscal 2003 first quarter, total revenues were $13.4 million versus $13.0 million in the corresponding year-earlier quarter. Net income was $117,000, or $0.02 per share, compared with net loss of $618,000, or $0.12 per share, in the first quarter last year. Income from operations was $182,000, compared with loss from operations of $550,000 in the same quarter a year ago.
"Our consistent and steady progress has resulted in our first profitable quarter in some time," said Kenneth Cleveland, president and chief executive officer. "We will build on this accomplishment as we continue to look for ways to enhance our operational efficiencies and grow our business."
As previously announced, Hauser intends to divest its Shuster Laboratories division. Accordingly, the financial information presented in this news release reflects this division as discontinued operations for all periods presented.
The company recorded a small loss from continuing operations due, in part, to the acceleration of prepaid interest expense. Cleveland noted that proceeds from the divestiture of the Shuster Laboratories division will be used to pay down debt, which will substantially lower future interest expense. There can be no assurance, however, that the Shuster sale will be consummated.
"The sale of Shuster is a significant step in our restructuring and debt repayment plan," Cleveland said. "The remainder of our bank debt is due August 31, 2002. We are working to obtain a new line of credit, though there can be no assurance that we will be successful in this endeavor. If the bank debt is not paid in accordance with its terms, the lender will be entitled to exercise certain remedies."
Hauser, headquartered in Long Beach, California and Longmont, Colorado, is a leading supplier of herbal extracts and nutritional supplements. Hauser also provides interdisciplinary laboratory testing services, chemical engineering services, and contract research and development. Hauser'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
(In thousands, except share amounts)
Three months ended June 30,
2002 2001
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REVENUES:
Dietary supplements $ 8,905 $ 9,411
Pharmaceutical and functional
food ingredients 2,458 1,606
Technical services 2,018 1,958
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Total revenues 13,381 12,975
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COST OF REVENUES:
Dietary supplements 7,140 7,400
Pharmaceutical and functional
food ingredients 2,106 1,331
Technical services 1,416 1,684
----------- -----------
Total cost of revenues 10,662 10,415
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GROSS PROFIT 2,719 2,560
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OPERATING EXPENSES:
New product development 469 671
Sales and marketing 611 596
General and administrative 1,457 1,843
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Total operating expenses 2,537 3,110
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INCOME (LOSS) FROM OPERATIONS 182 (550)
INTEREST EXPENSE (568) (331)
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LOSS FROM CONTINUING OPERATIONS
BEFORE INCOME TAX BENEFIT
AND DISCONTINUED OPERATIONS (386) (881)
INCOME TAX BENEFIT 201 105
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LOSS FROM CONTINUING OPERATIONS
AND BEFORE DISCONTINUED OPERATIONS (185) (776)
DISCONTINUED OPERATIONS:
Income from operations of
discontinued Shuster component,
net of income tax of $201 and $105 302 158
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NET INCOME (LOSS) $ 117 $ (618)
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INCOME (LOSS) PER SHARE
BASIC AND DILUTED
Continuing operations $ (0.03) $ (0.15)
Discontinued operations 0.05 0.03
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Net income (loss) $ 0.02 $ (0.12)
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WEIGHTED AVERAGE SHARES
OUTSTANDING 5,957,339 5,205,582
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HAUSER, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, March 31,
ASSETS 2002 2002
------ --------- --------
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 25 $ 452
Accounts receivable, less allowance for
doubtful accounts: June 30, 2002, $848;
March 31, 2002, $824 8,632 7,620
Inventory, at lower of cost or market 7,005 7,513
Prepaid expenses and other 853 801
Current assets of business held for sale 2,879 2,197
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Total current assets 19,394 18,583
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PROPERTY AND EQUIPMENT:
Land and buildings 6,160 6,160
Laboratory and processing equipment 9,861 9,736
Furniture and fixtures 1,870 1,672
-------- --------
Total property and equipment 17,891 17,568
Accumulated depreciation and amortization (9,896) (9,669)
-------- --------
Net property and equipment 7,995 7,899
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OTHER ASSETS:
Deposits and other 494 845
Non-current assets of business held
for sale 4,772 4,638
$ 32,655 $ 31,965
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Checks outstanding $ 1,205 $ --
Accounts payable 4,640 3,185
Current portion of long-term debt 15,467 16,455
Note payable to related party 2,852 2,823
Accrued salaries and benefits 1,243 1,377
Customer deposits 297 461
Accrued exit costs 162 251
Amount due to related party 2,660 2,946
Other current liabilities 1,841 2,498
Liabilities of business held for sale 948 789
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Total current liabilities 31,315 30,785
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LONG-TERM DEBT -- --
COMMITMENTS AND CONTINGENCIES
(Notes 1 and 7)
STOCKHOLDERS' EQUITY:
Common stock, $.001 par value;
20,000,000 shares authorized; shares
issued and outstanding; June 30, 2002,
5,976,749; March 31, 2002, 5,871,493 6 6
Additional paid-in capital 95,182 95,139
Warrants 1,133 1,133
Accumulated deficit (94,981) (95,098)
-------- --------
1,340 1,180
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$ 32,655 $ 31,965
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