PURCHASE, NY--(Marketwire - November 12, 2010) - Nutrition 21, Inc. (
OTCBB:
NXXI), the developer
and marketer of clinically substantiated nutritional ingredients for
dietary supplements, foods and beverages, and animal nutrition, today
announced financial results for the first quarter ended September 30, 2010
for the fiscal year ending June 30, 2011.
The Company reported total revenues of $1.6 million for the first quarter
ended September 30, 2010, compared to $2.3 million in the corresponding
quarter a year ago. Loss from continuing operations for the first quarter
of fiscal year 2011 was $0.9 million, or ($0.1) per diluted common share,
compared to a net loss of $0.7 million, or $(0.01) per diluted common
share, in the corresponding quarter a year ago. Net income from
discontinued operations for the quarter ended September 30, 2010 was $21
thousand or $ 0.00 per diluted common share, compared to net income of $26
thousand or $0.00 per diluted common share in the comparable period a year
ago.
Michael Zeher, president and chief executive officer, said, "We are pleased
that our operating income from continuing operations has been positive
since the divestiture of the Branded Products Group in the second quarter
of 2010, and that we continue to deliver positive EBITDA (Earnings before
interest, taxes, depreciation and amortization). In short, we think that
the refocusing of our energies on our core ingredients business is working
according to plan. We look forward to developing new business opportunities
as we continue to work on achieving consistent profit and revenue growth."
About Nutrition 21
Nutrition 21, Inc., headquartered in Purchase, NY, is a nutritional
bioscience company and holds over 30 issued and pending patents associated
with chromium picolinate as well as combinations of chromium compounds with
other dietary supplement ingredients. Its ingredients are sold to leading
dietary supplement, and functional food and beverage manufacturers. For
more information please visit
http://www.nutrition21.com.
Safe Harbor Provision
This press release may contain certain forward-looking statements. The
words "believe," "expect," "anticipate" and other similar expressions
generally identify forward-looking statements. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only
as of their dates. These forward-looking statements are based largely on
the company's current expectations and are subject to a number of risks and
uncertainties, including without limitation: the effect of the expiration
of patents; regulatory issues; uncertainty in the outcomes of clinical
trials; changes in external market factors; changes in the company's
business or growth strategy or an inability to execute its strategy due to
changes in its industry or the economy generally; the emergence of new or
growing competitors; various other competitive factors; and other risks and
uncertainties indicated from time to time in the company's filings with the
Securities and Exchange Commission, including its Form 10-K for the year
ended June 30, 2010. Actual results could differ materially from the
results referred to in the forward-looking statements. In light of these
risks and uncertainties, there can be no assurance that the results
referred to in the
forward-looking statements contained in this press release will in fact
occur. Additionally, the company makes no commitment to disclose any
revisions to forward-looking statements, or any facts, events or
circumstances after the date hereof that may bear upon forward-looking
statements.
NUTRITION 21, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, June 30,
2010 2010
------------- -------------
(unaudited) (Note 1)
ASSETS
Current assets:
Cash and cash equivalents $ 1,200 $ 935
Accounts receivable, net 867 1,495
Other receivables, net 259 224
Inventories, net 145 173
Other current assets 115 104
Property and equipment, net 68 57
Patents, trademarks and other intangibles, net 521 588
Other assets 309 104
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TOTAL ASSETS $ 3,484 $ 3,962
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LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable $ 536 $ 719
Accrued expenses 986 1,321
8% Series J convertible preferred stock subject
to mandatory redemption 15,570 15,068
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Total liabilities 17,092 17,108
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Stockholders' Deficit (13,608) (13,146)
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 3,484 $ 3,962
============ ============
NUTRITION 21, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended
September 30,
2010 2009
------------ ------------
Net sales $ 1,555 $ 2,216
Other revenues 66 94
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Total Revenues 1,621 2,310
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Costs and Expenses
Cost of Revenues 517 650
General and Administrative 667 980
Advertising and Promotion 228 166
Research and Development 101 79
Depreciation and Amortization 84 105
------------ ------------
Total Costs and Expenses 1,597 1,980
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Operating Income 24 330
Interest expense, net (943) (999)
------------ ------------
Loss from Continuing Operations (919) (669)
Discontinued Operations, net 21 26
------------ ------------
Net Loss $ (898) $ (643)
============ ============
Basic and diluted loss per common share $ (0.01) $ (0.01)
============ ============
Weighted average number of common shares -
basic and diluted 123,488 72,455
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Contact Information: CONTACT:
Nutrition 21, Inc.
Alan Kirschbaum
914-701-4500