PARAMOUNT, Calif., March 29, 1999 (PRIMEZONE) -- Naturade, Inc., (OTC BB: NRDC) recently filed its 10-Q for the fiscal quarter ended December 31, 1998 and reported a net loss of ($946,673), or ($0.18) per share, on net sales of $3,597,155, compared with a net loss a year earlier of ($63,818), or ($0.02) per share, on net sales of $2,729,058.
The company said that more than 50 percent, or $480,000 of the net loss, was attributable to one-time losses, including write-offs for slow and obsolete inventory and relocation costs. Additionally, Naturade pointed out, that as previously reported, it has changed its fiscal year to end on December 31. Consequently, the current reporting period of October to December 1998 is considered a transition period.
Bill D. Stewart, chief executive officer, said "During the December 1998 quarter we began to implement our strategy to significantly broaden Naturade's distribution channels to include grocery, drug, discount and health stores. This strategy transitions the company from its total reliance on the health food channels and better positions it to take advantage of the appeal of its current product line.
"The primary objective in 1998 was to reposition Naturade for these new markets, and this required making some hard decisions regarding asset write-offs and product line discontinuations. We firmly believe that we are on the right track for 1999 and view the new year with excitement and cautious optimism." Stewart added: "I am pleased to announce that Naturade has appointed Lawrence J. Batina as Chief Operating Officer and Chief Financial Officer. In his new capacity, Batina will be responsible for all operational and financial matters for the company. Additionally, he will help develop and implement Naturade's new strategic direction as we broaden our customer base to include new distribution channels."
Batina, 46, has more than 14 years experience in the food business. Prior to joining Naturade, he was vice president and corporate controller of IQI, Inc., a $180 million telemarketing company which grew from $100 million with a series of acquisitions during 1996-97. Earlier, he was president and chief operating officer of American Confectionary Corp., a $30 million candy company which marketed its products through mass, drug, warehouse and grocery channels. Batina earned his MBA from Harvard and graduated from the University of California Berkeley with a BS in accounting and management information systems. He is also a CPA.
Naturade also announced it has extended its Class B Warrants through, to and until the close of business on June 30, 1999 from their previous expiration date of March 1, 1999. There are approximately 325,000 Class B Warrants outstanding at an exercise price of $3.00 per warrant. Other than the extension of the deadline, the terms of the Class B warrants remain unchanged.
Naturade, Inc., founded in 1926, is a leading provider of low carbohydrate, high protein powders in the United States, with eight of the top selling ten brands, including the N-R-G(TM) brand, the nation's number one selling protein powder. In addition to protein powders, the company also distributes Kids' Plex(TM) nutritional powders and nutritional bars for children, The Chinese Way(TM) herbal remedies, and a complete line of high concentrate Aloe-Vera based skincare products using a base of a minimum 80 percent aloe vera extract.
NOTE: The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. For a more detailed discussion of some of the ongoing risks and uncertainties of the Company's business, see the Company's filings with the Securities and Exchange Commission.
BALANCE SHEET
December 31, September 30,
1998 1998
----------- ------------
Current Assets
Cash $ 842,029 $ 1,975,513
Accounts & Notes Receivables 1,294,612 1,419,293
Related Party Receivables 600,000 600,000
Inventories 2,093,981 1,957,940
Refundable Income Taxes 163,416 163,416
Prepaid Expenses 325,853 208,901
----------- -----------
Total Current Assets 5,319,891 6,325,063
Property and Equipment, Net 1,981,326 2,018,147
Intangible Assets, Net 1,106,358 1,120,588
Other Assets 116,014 84,671
----------- -----------
3,203,698 3,223,406
----------- -----------
Total Assets $ 8,523,589 $ 9,548,469
----------- -----------
----------- -----------
Current Liabilities
A/P & Accrued Expenses $ 1,456,863 $ 1,556,374
Notes Payable 1,450,000 1,450,000
Current Portion Long-Term Debt 193,383 202,380
----------- -----------
3,100,246 3,208,754
Long-Term Debt, less current maturities 1,964,324 2,011,523
Stockholders' Equity 3,459,019 4,328,192
----------- -----------
Total Liabilities & Stockholders' Equity $ 8,523,589 $ 9,548,469
----------- -----------
----------- -----------
INCOME STATEMENT
Three Months Ended
December 31, December 31,
1998 1997
----------- -----------
Net Sales $ 3,597,155 $ 2,729,058
Cost of Sales 2,269,950 1,354,705
----------- -----------
Gross Profit 1,327,205 1,374,353
Costs and Expenses 2,273,878 1,480,717
(Loss) before income taxes (946,673) (106,364)
Provision for income taxes 0 (42,546)
----------- -----------
Net (loss) income $ (946,673) $ (63,818)
----------- -----------
----------- -----------
Basic (loss) earnings per share $ (0.18) $ (0.02)
Contact: Steven Stern/Cecilia Wilkinson
Pondel Parsons & Wilkinson
310-207-9300