ChromaDex Corporation Reports First Quarter 2024 Financial Results
Total net sales of
First Quarter 2024 Financial and Recent Operational Highlights
-
Total net sales were
$22.2 million , with$17.4 million from Tru Niagen®. - Solid gross margin of 60.7%, an increase of 80 basis points, compared to 59.9% from the prior year quarter.
- Sales and marketing expense as a percentage of net sales was 30.4%, an improvement of 450 basis points, compared to 34.9% from the prior year quarter.
-
Total operating expenses decreased
$1.3 million while increasing investments in research and development initiatives. -
Net loss was
$0.5 million or$(0.01) per share, a$1.4 million improvement, or$0.02 per share, from the prior year quarter. -
Adjusted EBITDA, a non-GAAP measure, improved to a positive
$0.7 million from a negative$0.1 million in the prior year quarter. -
In
March 2024 , the Tru Niagen® product portfolio(1) attained third-party verification through the Alkemist Assured™ testing transparency program conducted byAlkemist Labs , a distinguished third-party testing laboratory known for its rigorous analysis of herbal and dietary supplements. This verification reinforcesChromaDex's commitment to excellence by ensuring high-quality, safe ingredients and transparency. -
In
April 2024 ,ChromaDex expanded distribution of Tru Niagen®, announcing partnerships with The Vitamin Shoppe and Sprouts Farmers Market, both targeting health-conscious consumers. Tru Niagen® is now available in 700 The Vitamin Shoppe and Super Supplements specialty retail locations and online, as well as in 400 Sprouts Farmers Market locations, marking the inaugural launch with a majorU.S. grocery chain.
“During the first quarter of 2024, we delivered
(1) Excluding Tru Niagen Pro 1,000 mg, which is NSF Certified for Sport®.
Results of operations for the three months ended
Gross marginpercentageimproved 80 basis points to 60.7%. The slight improvement in gross margin percentage is primarily driven by changes in business mix.
Operating expensedecreased 8%, or
Net loss was
Net cash inflow from operating activities was
2024 Full Year Outlook
Looking forward, for the full year, the Company expects the trajectory of full year revenue growth to continue, projecting a higher rate of revenue growth than the prior year growth of 16%. This outlook assumes continued revenue growth through our e-commerce business as well as established partnerships, and assumes upside from opportunities with new partnerships, channels, and products. The Company projects that gross margin will improve slightly year-over-year driven by continued supply chain optimization efforts and cost savings, along with overall scale. Moreover, selling and marketing expense will increase in absolute dollars but remain stable as a percentage of net sales, as the Company continues to make focused investments to drive brand awareness and support new market launches, while maintaining efficiency. The Company plans to continue to invest in research and development to drive future innovation and expects an increase in general and administrative expense of
Investor Conference Call
A live webcast will be held
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 1-888-596-4144 with Conference ID: 8584242.
The webcast will be recorded, and will be available for replay via the website from
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 2024 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
About
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 X (formerly Twitter) @ChromaDex and Instagram @TruNiagen and subscribe to our latest news via our website accessible at www.ChromaDex.com to which
Unaudited Condensed Consolidated Statements of Operations |
|||||||
|
Three Months Ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
(In thousands, except per share data) |
|
|
|
||||
Sales, net |
$ |
22,153 |
|
|
$ |
22,556 |
|
Cost of sales |
|
8,697 |
|
|
|
9,038 |
|
Gross profit |
|
13,456 |
|
|
|
13,518 |
|
Operating expenses: |
|
|
|
||||
Sales and marketing |
|
6,740 |
|
|
|
7,874 |
|
Research and development |
|
2,095 |
|
|
|
1,193 |
|
General and administrative |
|
5,352 |
|
|
|
6,419 |
|
Total operating expenses |
|
14,187 |
|
|
|
15,486 |
|
Operating loss |
|
(731 |
) |
|
|
(1,968 |
) |
|
|
|
|
||||
Nonoperating income: |
|
|
|
||||
Interest income, net |
|
239 |
|
|
|
66 |
|
Net loss |
$ |
(492 |
) |
|
$ |
(1,902 |
) |
|
|
|
|
||||
Basic and diluted loss per share attributable to common stockholders: |
$ |
(0.01 |
) |
|
$ |
(0.03 |
) |
Basic and diluted weighted average common shares outstanding |
|
75,230 |
|
|
|
74,796 |
|
Unaudited Condensed Consolidated Balance Sheets |
|||||
(In thousands except par values, unless otherwise indicated) |
|
|
|
||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents, including restricted cash of |
$ |
27,565 |
|
$ |
27,325 |
Trade receivables, net of allowances of |
|
6,604 |
|
|
5,234 |
Inventories |
|
12,495 |
|
|
14,525 |
Prepaid expenses and other assets |
|
2,312 |
|
|
2,450 |
Total current assets |
|
48,976 |
|
|
49,534 |
|
|
|
|
||
Leasehold improvements and equipment, net |
|
2,000 |
|
|
2,137 |
Intangible assets, net |
|
472 |
|
|
510 |
Right-of-use assets |
|
2,226 |
|
|
2,400 |
Other long-term assets |
|
405 |
|
|
383 |
Total assets |
$ |
54,079 |
|
$ |
54,964 |
|
|
|
|
||
Liabilities and Stockholders' Equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
7,899 |
|
$ |
10,232 |
Accrued expenses |
|
10,465 |
|
|
9,493 |
Current maturities of operating lease obligations |
|
850 |
|
|
691 |
Current maturities of finance lease obligations |
|
11 |
|
|
11 |
Customer deposits |
|
227 |
|
|
195 |
Total current liabilities |
|
19,452 |
|
|
20,622 |
Deferred revenue |
|
3,311 |
|
|
3,311 |
Operating lease obligations, less current maturities |
|
2,356 |
|
|
2,563 |
Finance lease obligations, less current maturities |
|
9 |
|
|
12 |
Total stockholders’ equity |
|
28,951 |
|
|
28,456 |
Total liabilities and stockholders’ equity |
$ |
54,079 |
|
$ |
54,964 |
Unaudited Condensed Consolidated Statements of Cash Flows |
|||||||
|
Three Months Ended |
||||||
(In thousands) |
|
2024 |
|
|
|
2023 |
|
Net cash provided by / (used in): |
|
|
|
||||
Operating activities |
$ |
295 |
|
|
$ |
2,792 |
|
Investing activities |
|
(41 |
) |
|
|
(91 |
) |
Financing activities |
|
(14 |
) |
|
|
(1 |
) |
Net increase in cash and cash equivalents |
|
240 |
|
|
|
2,700 |
|
Cash and cash equivalents beginning of period |
|
27,325 |
|
|
|
20,441 |
|
Cash and cash equivalents at end of period |
$ |
27,565 |
|
|
$ |
23,141 |
|
Unaudited Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA |
|||||||||||||||||||
(In thousands) |
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss), as reported |
$ |
(492 |
) |
|
$ |
114 |
|
|
$ |
(959 |
) |
|
$ |
(2,191 |
) |
|
$ |
(1,902 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Interest (income) expense, net |
|
(239 |
) |
|
|
(282 |
) |
|
|
(188 |
) |
|
|
(125 |
) |
|
|
(66 |
) |
Depreciation |
|
178 |
|
|
|
177 |
|
|
|
233 |
|
|
|
232 |
|
|
|
228 |
|
Amortization of intangibles |
|
38 |
|
|
|
39 |
|
|
|
39 |
|
|
|
39 |
|
|
|
41 |
|
Amortization of right of use assets |
|
174 |
|
|
|
157 |
|
|
|
176 |
|
|
|
173 |
|
|
|
171 |
|
Share-based compensation |
|
984 |
|
|
|
1,037 |
|
|
|
1,117 |
|
|
|
1,324 |
|
|
|
1,273 |
|
Severance and restructuring |
|
27 |
|
|
|
5 |
|
|
|
86 |
|
|
|
766 |
|
|
|
186 |
|
Adjusted EBITDA |
$ |
670 |
|
|
$ |
1,247 |
|
|
$ |
504 |
|
|
$ |
218 |
|
|
$ |
(69 |
) |
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.
Adjusted EBITDA is defined as net income (loss) before (a) interest, (b) depreciation, (c) amortization, (d) non-cash share-based compensation costs and (e) severance and restructuring expense. While
Non-GAAP financial measures are not prepared in accordance with, or an alternative for, generally accepted accounting principles in
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Investor Relations
+1 (646) 829-9701
Shamsian@LythamPartners.com
Media Relations
Director of Media Relations
+1 (310) 388-6706 Ext. 689
Kendall.Knysch@ChromaDex.com
Source: