IRVINE, Calif., August 19, 1999 (PRIMEZONE) -- Naturade, Inc., (OTCBB:NRDC) today reported a net loss for the second quarter ended June 30, 1999 of ($1,175,094), or ($0.22) per share, on net sales of $2,781,116, compared with a net loss a year earlier of ($701,466) or ($0.13) per share, on net sales of $3,945,620.
The Company noted that operating losses before $466,000 restructuring reserves were similar to those for the prior year period and that lower sales were related to (i) the pattern of international sales did not fall into this quarter versus $422,962 in the prior year June quarter and (ii) the Company's cutoff of sales to a major customer, initiated in early 1999 for credit reasons, which accounted for reduction in sales of $507,588 versus the prior year quarter. The Company continues to invest in sales to mass market customers, but lowered S, G & A expenses versus the prior year quarter.
Bill D. Stewart, CEO said, "Naturade continues its strategy of broadening distribution to include grocery, drug and discount stores while continuing to support its strong position in the health food channel. While sales to new customers are taking longer than we anticipated, market share in our core health food channel continues to be very strong, even though the market overall has been soft this year. We continue to introduce exciting new products in 1999 and have finalized rebuilding the Company's infrastructure to better meet the needs of all customers and to support the demands of the mass market. Naturade has transformed its international business towards branded products, with promising results. With these initiatives and our recently announced fresh capital we believe that we are on the right track for 1999 and view the balance of this restructuring year with excitement and cautious optimism."
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 The Chinese Way(TM) herbal remedies, and a complete line of high concentrate Aloe-Vera based skincare products.
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.
NATURADE, INC.
INCOME STATEMENT
Three Months Ended
June 30, June 30,
1999 1998
Net Sales $ 2,781,116 $ 3,945,620
Cost of Sales 1,841,297 1,992,893
Gross Profit 939,819 1,952,727
Cost and Expenses 2,114,913 2,654,193
(Loss) before Income Taxes (1,175,094) (701,466)
Provision for Income Taxes 0 0
Net (Loss) Income ($1,175,094) ($701,466)
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Basic (Loss) earnings per share ($0.22) ($0.13)
Six Months Ended
June 30, June 30,
1999 1998
Net Sales $ 5,133,924 $ 7,084,718
Cost of Sales 3,225,926 4,191,844
Gross Profit 1,907,998 2,892,874
Cost and Expenses 6,862,964 5,196,579
(Loss) before Income Taxes (4,954,966) (2,303,705)
Provision for Income Taxes 2,400 57,454
Net (Loss) Income ($4,957,366) ($2,246,251)
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Basic (Loss) earnings per share ($0.93) ($0.42)
NATURADE, INC.
BALANCE SHEET
June 30, December 31,
1999 1998
Current Assets
Cash $ 158,960 $ 842,029
Accounts & Notes Receivables 1,051,056 1,294,612
Related Party Receivables 0 600,000
Inventories 2,375,007 2,093,981
Refundable Income Taxes 163,416 163,416
Prepaid Expenses 303,969 325,853
Property available for sale 428,989 0
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Total Current Assets 4,481,397 5,319,891
Property and Equipment, Net 321,290 1,981,326
Intangible Assets, Net 1,077,899 1,106,358
Other Assets 105,572 116,014
1,504,761 3,203,698
Total Assets $ 5,986,158 $ 8,523,589
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Current Liabilities
A/P & Accrued Expenses $ 2,050,306 $ 1,456,883
Lawsuit Judgment Payment 2,774,000
Notes Payable 2,435,719 1,450,000
Current Portion Long-Term Debt 32,397 193,383
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7,292,422 3,100,246
Long-Term Debt, less Current Maturities 152,223 1,984,324
Stockholders' Equity (1,458,487) 3,459,019
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Total Liabilities &
Stockholders' Equity $ 5,986,158 $ 8,523,589
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