Record net sales of $22.6 million, with a
strong gross margin of 59.9%, lower operating expenses, and a net
loss and Adjusted EBITDA loss of only $1.9 million and $0.1
million, respectively, for the three months ended March 31,
2023.
ChromaDex Corp. (NASDAQ:CDXC) today announced financial results
for the first quarter of 2023.
First Quarter 2023 and Recent Highlights
- Total net sales were $22.6 million, up 31% from the prior year
quarter, with $17.6 million from Tru Niagen®.
- Strong gross margin of 59.9% and a $2.8 million reduction in
operating expenses, reflecting financial discipline.
- Selling and marketing expense as a percentage of net sales was
34.9% versus 47.7%, an improvement of 1,280 basis points from the
prior year quarter, while investing in a strategic brand building
event.
- General and administrative expense decreased $2.5 million from
the prior year quarter.
- Net loss was $1.9 million or $(0.03) per share, an improvement
of $0.08 per share from the prior year quarter.
- Adjusted EBITDA, a non-GAAP measure, was a loss of only $0.1
million, a $4.4 million improvement from the prior year
quarter.
“In the first quarter of fiscal 2023, we achieved $22.6 million
in revenue and generated $2.8 million in positive operating cash
flows,” said ChromaDex Chief Executive Officer, Rob Fried. “We
raised the conservative end of our 2023 revenue outlook to 12.5%
growth and, importantly, are seeing significant opportunities for
future growth that are not reflected in this outlook.”
Results of operations for the three months ended March 31,
2023 compared to the prior year quarter
ChromaDex reported a net sales increase of 31%, or $5.3 million,
to $22.6 million. The increase in net sales was largely driven by
growth in sales of Tru Niagen® and growth in Niagen® ingredient
sales.
Gross margin percentage declined 110 basis points to 59.9%. The
decline in gross margin percentage is largely attributable to a
shift in business mix as well as modest cost inflation, partially
offset by overall scale.
Operating expense decreased 15%, or $2.8 million, to $15.5
million driven by a $2.5 million reduction in general and
administrative expense due to lower legal fees, share-based
compensation and severance and restructuring costs.
Net loss was $1.9 million, or $0.03 loss per share, compared to
a net loss of $7.7 million or $0.11 loss per share for the first
quarter of 2022. Adjusted EBITDA, a non-GAAP measure, approached
break-even with a loss of only $0.1 million, a $4.4 million
improvement from Q1 2022. See “Reconciliation of Non-GAAP Financial
Measures” for a reconciliation of non-GAAP Adjusted EBITDA to net
loss, the most directly comparable GAAP measure.
Net cash inflow from operating activities was $2.8 million
compared to a cash outflow of $7.2 million in the prior year
quarter, largely due to improvements in net loss of $5.8 million
paired with changes in working capital.
2023 Full Year Outlook
Looking forward, for the full year, the Company expects at least
12.5% revenue growth year-over-year. The conservative end of the
Company’s outlook reflects prevailing macroeconomic uncertainty and
only considers recurring, steady revenue growth from the e-commerce
business and established partnerships, as well as upside from new
partnerships realized in the first quarter. However, potential
upside lies within new partnerships, channels, and products. The
Company projects that gross margin will remain stable year over
year as cost savings initiatives are expected to largely offset
continued inflationary pressures. Moreover, further optimization,
coupled with new and focused customer acquisition strategies are
expected to result in reduced selling and marketing expense as a
percentage of net sales. The Company plans to increase investments
in research and development to drive innovation and expects a
reduction in general and administrative expense of $1 to $2 million
year over year.
Investor Conference Call
A live webcast will be held Wednesday, May 10, 2023 at 4:30 p.m.
Eastern time (1:30 p.m. Pacific time) to discuss ChromaDex’s
first-quarter financial results and provide a general business
update.
To listen to the webcast, or to view the earnings press release
and its accompanying financial exhibits, please visit the Investors
Relations section of ChromaDex’s website at http://chromadex.com.
The toll-free dial-in information for this call is 1-888-330-2446
with Conference ID: 4126168.
The webcast will be recorded, and will be available for replay
via the website from 7:30 p.m. Eastern time on May 10, 2023 through
11:59 p.m. Eastern time on May 17, 2023. The replay of the call can
also be accessed by dialing 800-770-2030, using the Replay ID:
4126168.
Important Note on Forward Looking Statements:
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, and Section
21E of the Securities Exchange Act of 1934. Statements that are not
a description of historical facts constitute forward-looking
statements and may often, but not always, be identified by the use
of such words as “expects,” “anticipates,” “intends” “estimates,”
“plans,” “potential,” “possible,” “probable,” “believes” “seeks,”
“may,” “will,” “should,” “could,” “predicts,” “projects,”
“continue,” “would” or the negative of such terms or other similar
expressions. Forward-looking statements include statements
regarding our intentions, beliefs, projections, outlook, analyses
or current expectations concerning, among other things: the
quotation from ChromaDex’s Chief Executive Officer, and statements
related to the Company’s 2023 financial outlook including but not
limited to revenue growth, gross margin, expenses, and investment
plans. Risks that contribute to the uncertain nature of the
forward-looking statements include: inflationary conditions and
adverse economic conditions; our history of operating losses and
need to obtain additional financing; the growth and profitability
of our product sales; our ability to maintain sales, marketing and
distribution capabilities; changing consumer perceptions of our
products; our reliance on a single or limited number of third-party
suppliers; risks of conducting business in China; and the risks and
uncertainties associated with our business and financial condition
in general, described in our filings with the Securities and
Exchange Commission (SEC), including, without limitation, our most
recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q
as filed with the SEC. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date hereof, and actual results may differ materially from
those suggested by these forward-looking statements. All
forward-looking statements are qualified in their entirety by this
cautionary statement and ChromaDex undertakes no obligation to
revise or update this release to reflect events or circumstances
after the date hereof.
About ChromaDex:
ChromaDex Corporation is a global bioscience company dedicated
to healthy aging. The ChromaDex team, which includes world-renowned
scientists, is pioneering research on nicotinamide adenine
dinucleotide (NAD+), an essential coenzyme that is a key regulator
of cellular metabolism and is found in every cell of the human
body. NAD+ levels in humans have been shown to decline with age,
among other factors, and may be increased through supplementation
with NAD+ precursors. ChromaDex is the innovator behind the NAD+
precursor nicotinamide riboside (NR), commercialized as the
flagship ingredient Niagen®. Nicotinamide riboside and other NAD+
precursors are protected by ChromaDex’s patent portfolio.
The Company delivers Niagen® as the sole active ingredient in
its consumer product Tru Niagen® available at www.truniagen.com and
through partnerships with global retailers and distributors. The
Company also develops and commercializes proprietary-based
ingredient technologies and supplies these ingredients as raw
materials to the manufacturers of consumer products. The Company
further offers natural product fine chemicals, known as
phytochemicals, and related research and development services.
Follow us on Twitter @ChromaDex and Instagram @TruNiagen and
subscribe to our latest news via our website accessible at
www.chromadex.com to which ChromaDex regularly posts copies of its
press releases as well as additional updates and financial
information about the Company.
ChromaDex Corporation and
Subsidiaries
Unaudited Condensed
Consolidated Statements of Operations
Three Months Ended March
31,
2023
2022
(In thousands, except per share data)
Sales, net
$
22,556
$
17,259
Cost of sales
9,038
6,727
Gross profit
13,518
10,532
Operating expenses:
Sales and marketing
7,874
8,237
Research and development
1,193
1,078
General and administrative
6,419
8,949
Total operating expenses
15,486
18,264
Operating loss
(1,968
)
(7,732
)
Nonoperating income (expenses):
Interest income (expense), net
66
(8
)
Net loss
$
(1,902
)
$
(7,740
)
Basic and diluted loss per share
attributable to common stockholders:
$
(0.03
)
$
(0.11
)
Basic and diluted weighted average common
shares outstanding
74,796
68,314
ChromaDex Corporation and
Subsidiaries
Unaudited Condensed
Consolidated Balance Sheets
(In thousands except par values, unless
otherwise indicated)
March 31, 2023
December 31, 2022
Assets
Current assets:
Cash and cash equivalents, including
restricted cash of $152 for both periods presented
$
23,141
$
20,441
Trade receivables, net of allowances of
$499 and $122, respectively; Including receivables from Related
Party of: $3.5 million and $3.1 million, respectively
9,221
8,482
Inventories
11,908
14,677
Prepaid expenses and other assets
2,295
2,967
Total current assets
46,565
46,567
Leasehold improvements and equipment,
net
2,689
2,799
Intangible assets, net
630
671
Right-of-use assets
3,352
3,523
Other long-term assets
532
497
Total assets
$
53,768
$
54,057
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable
$
8,951
$
9,679
Accrued expenses
8,610
7,337
Current maturities of operating lease
obligations
697
680
Current maturities of finance lease
obligations
17
16
Customer deposits
148
157
Total current liabilities
18,423
17,869
Deferred revenue
3,955
3,955
Operating lease obligations, less current
maturities
3,353
3,539
Total stockholders’ equity
28,017
28,672
Total liabilities and stockholders’
equity
$
53,768
$
54,057
ChromaDex Corporation and
Subsidiaries
Unaudited Condensed
Consolidated Statements of Cash Flows
Three Months Ended March
31,
(In thousands)
2023
2022
Net cash provided by / (used
in):
Operating activities
$
2,792
$
(7,198
)
Investing activities
(91
)
(25
)
Financing activities
(1
)
(3
)
Net increase (decrease) in cash and cash
equivalents
2,700
(7,226
)
Cash and cash equivalents beginning of
period
20,441
28,219
Cash and cash equivalents at end of
period
$
23,141
$
20,993
ChromaDex Corporation and
Subsidiaries
Unaudited Reconciliation of
Non-GAAP Financial Measures
Reconciliation of Net Loss to Adjusted
EBITDA
(In thousands)
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Net loss, as reported
$
(1,902
)
$
(1,418
)
$
(985
)
$
(6,397
)
$
(7,740
)
Adjustments:
Interest (income) expense, net
(66
)
(26
)
5
10
8
Depreciation
228
221
235
212
201
Amortization of intangibles
41
43
44
50
49
Amortization of right of use assets
171
191
170
169
299
Share-based compensation
1,273
1,326
1,229
1,296
1,888
Severance and restructuring
186
13
181
17
821
Other income - Employee Retention Tax
Credit
—
—
(2,085
)
—
—
Adjusted EBITDA
$
(69
)
$
350
$
(1,206
)
$
(4,643
)
$
(4,474
)
Non-GAAP Financial Information:
To supplement ChromaDex’s unaudited financial data presented in
accordance with generally accepted accounting principles (GAAP),
the Company has presented Adjusted EBITDA, a non-GAAP financial
measure. ChromaDex believes the presentation of such non-GAAP
financial measure provides important supplemental information to
management and investors and enhances the overall understanding of
the Company’s historical and current financial operating
performance. The Company believes disclosure of the non-GAAP
financial measure has substance because the excluded expenses are
infrequent in nature, are variable in nature or do not represent
current cash expenditures. Further, such non-GAAP financial measure
is among the indicators the Company uses as a basis for evaluating
the Company’s financial performance as well as for planning and
forecasting purposes. Accordingly, disclosure of this non-GAAP
financial measure provides investors with the same information that
management uses to understand the Company’s economic performance
year-over-year.
Adjusted EBITDA is defined as net income before (a) interest,
(b) depreciation, (c) amortization, (d) non-cash share-based
compensation costs, (e) severance and restructuring expense and (f)
Other income from the Employee Retention Tax Credit. While
ChromaDex believes that this non-GAAP financial measure provides
useful supplemental information to investors, there are limitations
associated with the use of such measure. This measure is not
prepared in accordance with GAAP and may not be directly comparable
to similarly titled measures of other companies due to potential
differences in the method of calculation. Management compensates
for these limitations by relying primarily on the Company’s GAAP
results and by using Adjusted EBITDA only supplementally and by
reviewing the reconciliation of the non-GAAP financial measure to
its most comparable GAAP financial measure.
Non-GAAP financial measures are not in accordance with, or an
alternative for, generally accepted accounting principles in the
United States. The Company’s non-GAAP financial measure is not
meant to be considered in isolation or as a substitute for
comparable GAAP financial measures and should be read only in
conjunction with the company’s consolidated financial statements
prepared in accordance with GAAP.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230510005784/en/
Investor Relations +1(949) 356-1620
InvestorRelations@ChromaDex.com
Media Relations Kendall Knysch Director of Media
Relations +1 (310) 388-6706 Ext. 689
Kendall.Knysch@ChromaDex.com
ChromaDex (NASDAQ:CDXC)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
ChromaDex (NASDAQ:CDXC)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024