ChromaDex Corporation Reports First Quarter 2021 Financial Results
ChromaDex reported Q1 2021 net sales of $14.7 million, a 2% increase year-over-year, driven by a 12% growth in Tru Niagen® sales. The gross margin improved to 62.9%, up 500 basis points. However, the company posted a net loss of $7.4 million, or $0.12 per share, a deeper loss compared to Q1 2020's $5.9 million net loss. Operating expenses rose to $16.6 million, primarily due to increased selling and marketing costs. Looking ahead, ChromaDex anticipates steady revenue growth and continued margin improvement, with new strategic partnerships expected to boost sales.
- Gross margin improved to 62.9%, a 500 basis point increase.
- Tru Niagen® sales increased by 12% to $12.4 million.
- Retail distribution of Tru Niagen® in Walmart™ stores begins in June 2021.
- Strategic supply agreements with Health & Happiness Group and Ro.
- Net loss widened to ($7.4) million from ($5.9) million year-over-year.
- Operating expenses increased by $2.4 million to $16.6 million.
ChromaDex Corp. (NASDAQ:CDXC) today reported first quarter 2021 financial results.
First Quarter 2021 and Recent Highlights
-
Total net sales of
$14.7 million , up2% from$14.3 million in the year ago quarter. -
Tru Niagen® net sales of
$12.4 million , a12% increase from the year ago quarter. -
Gross margin of
62.9% , a 500 basis point increase from the year ago quarter. -
Net loss was (
$7.4) million or ($0.12) per share, down$0.02 per share year-over-year. -
Adjusted EBITDA excluding total legal expense, a non-GAAP measure, was a loss of (
$0.7) million , a$0.4 million decline year-over-year. - Announced retail distribution of Tru Niagen® in Walmart™ stores across the United States beginning in June 2021.
- Announced strategic supply agreement with Health & Happiness Group (H&H), a global leader in premium health, human and pet nutrition and personal care brands to sell Niagen® in its exclusively formulated Swisse™ products.
- Announced strategic supply agreement with Ro, a healthcare technology company, to sell Niagen® in specially-formulated Roman products.
- Appointed former Nestlé executive, Fadi Karam as Chief Marketing Officer.
- Appointed Dr. David L. Katz, a globally recognized authority on lifestyle medicine, to the ChromaDex Scientific Advisory Board.
“This has been an incredible year for ChromaDex strategically,” said ChromaDex CEO, Rob Fried. “We signed three important deals with Walmart, H&H, and Ro. We also strengthened our balance sheet with a
Results of operations for the three months ended March 31, 2021
For the three months ended March 31, 2021 (“Q1 2021”), ChromaDex reported net sales of
Gross margin percentage improved by 500 basis points to
Operating expenses increased by
The net loss for Q1 2021 was (
ChromaDex defines Adjusted EBITDA excluding total legal expense as net income or (loss) which is adjusted for interest, income tax, depreciation, amortization, non-cash stock compensation costs, severance and restructuring expense, bad debt expense related to Elysium Health and total legal expense.
For Q1 2021, the net cash flow from operating activities was (
2021 Outlook
Looking forward, for the full year, the Company expects continued, steady revenue growth driven by its global ecommerce business, as well as growth with existing and new strategic partners, and that the growth rate will accelerate beginning in the second quarter. The Company expects continued gross margin improvement to slightly better than
Investor Conference Call
ChromaDex management will host an investor conference call to discuss the first quarter results and provide a general business update on Thurs., May 6, at 4:30 p.m. ET.
Participants should call in at least 10 minutes prior to the call. The dial-in information is as follows:
Date: Thurs., May 6, 2021
Time: 4:30 p.m. ET (1:30 p.m. Pacific time)
Toll-free dial-in number: 1-833-979-2703
International dial-in number: 236-714-2223
Conference ID: 8991456
Webcast link: ChromaDex First Quarter 2021 Earnings Conference Call
The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website at www.chromadex.com.
A replay of the conference call will be available after 7:30 p.m. ET.
Toll-free replay number: 800-585-8367
Replay ID: 8991456
The earnings press release, and its accompanying financial exhibits, will be available on the Investor Relations section of the Company website, www.chromadex.com.
About Non-GAAP Financial Measures:
Adjusted EBITDA excluding total legal expense excludes interest, income tax, depreciation, amortization, non-cash share-based compensation costs, severance and restructuring expense and total legal expense. ChromaDex uses these non-GAAP measures when evaluating its financial results as well as for internal resource management, planning and forecasting purposes. ChromaDex believes the presentation of its non-GAAP financial measures enhances the overall understanding of the company’s historical financial performance. These non-GAAP measures should not be viewed in isolation from or as a substitute for ChromaDex’s financial results in accordance with GAAP. Reconciliation of GAAP to non-GAAP measures are attached to this press release.
About ChromaDex:
ChromaDex Corp. 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+), levels of which decline with age. ChromaDex is the innovator behind NAD+ precursor nicotinamide riboside (NR), which is protected by ChromaDex’s patent portfolio along with other NAD+ precursors. ChromaDex maintains a website at www.chromadex.com to which ChromaDex regularly posts copies of its press releases as well as additional and financial information about the Company.
Important Note on Forward Looking Statements:
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Such statements include the quotation from ChromaDex’s Chief Executive Officer, and statements related to the company’s 2021 financial outlook. Other risks that contribute to the uncertain nature of the forward-looking statements are reported in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K 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.
| ChromaDex Corporation and Subsidiaries | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| For the Three Month Periods Ended March 31, 2021 and March 31, 2020 | ||||||||
| (In thousands, except per share data) | ||||||||
| Three Months Ended | ||||||||
| Mar. 31, 2021 | Mar. 31, 2020 | |||||||
| Sales, net | $ |
14,683 |
|
$ |
14,345 |
|
||
| Cost of sales |
|
5,449 |
|
|
6,034 |
|
||
| Gross profit |
|
9,234 |
|
|
8,311 |
|
||
| Operating expenses: | ||||||||
| Sales and marketing |
|
6,258 |
|
|
4,447 |
|
||
| Research and development |
|
824 |
|
|
919 |
|
||
| General and administrative |
|
9,514 |
|
|
8,835 |
|
||
| Operating expenses |
|
16,596 |
|
|
14,201 |
|
||
| Operating loss |
|
(7,362 |
) |
|
(5,890 |
) |
||
| Nonoperating expense: | ||||||||
| Interest expense, net |
|
(19 |
) |
|
(12 |
) |
||
| Nonoperating expense |
|
(19 |
) |
|
(12 |
) |
||
| Net loss | $ |
(7,381 |
) |
$ |
(5,902 |
) |
||
| Basic and diluted loss per common share | $ |
(0.12 |
) |
$ |
(0.10 |
) |
||
| Basic and diluted weighted average common shares outstanding |
|
64,164 |
|
|
59,782 |
|
||
| See Notes to Consolidated Financial Statements in Part I Item 1 of ChromaDex's Quarterly Report on Form 10-Q to be filed with Securities and Exchange Commission on May 6, 2021. | ||||||||
| ChromaDex Corporation and Subsidiaries | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| March 31, 2021 and December 31, 2020 | ||||||||
| (In thousands, except per share data) | ||||||||
| Mar. 31, 2021 | Dec. 31, 2020 | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash, including restricted cash of |
$ |
44,691 |
|
$ |
16,697 |
|
||
| Trade receivables, net of allowances of |
|
4,647 |
|
|
2,694 |
|
||
| Inventories |
|
12,762 |
|
|
11,683 |
|
||
| Prepaid expenses and other assets |
|
1,119 |
|
|
1,145 |
|
||
| Total current assets |
|
63,219 |
|
|
32,219 |
|
||
| Leasehold Improvements and Equipment, net |
|
3,058 |
|
|
3,206 |
|
||
| Intangible Assets, net |
|
1,022 |
|
|
1,082 |
|
||
| Right of Use Assets |
|
1,100 |
|
|
1,226 |
|
||
| Other Long-term Assets |
|
594 |
|
|
625 |
|
||
| Total assets | $ |
68,993 |
|
$ |
38,358 |
|
||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ |
11,693 |
|
$ |
9,445 |
|
||
| Accrued expenses |
|
7,328 |
|
|
6,133 |
|
||
| Current maturities of operating lease obligations |
|
485 |
|
|
589 |
|
||
| Current maturities of finance lease obligations |
|
19 |
|
|
31 |
|
||
| Customer deposits |
|
231 |
|
|
278 |
|
||
| Total current liabilities |
|
19,756 |
|
|
16,476 |
|
||
| Deferred Revenue |
|
4,441 |
|
|
4,441 |
|
||
| Operating Lease Obligations, Less Current Maturities |
|
947 |
|
|
997 |
|
||
| Finance Lease Obligations, Less Current Maturities |
|
17 |
|
|
20 |
|
||
| Total liabilities |
|
25,161 |
|
|
21,934 |
|
||
| Commitments and Contingencies | ||||||||
| Stockholders' Equity | ||||||||
| Common stock, $.001 par value; authorized 150,000 shares; issued and outstanding March 31, 2021 67,702 shares and December 31, 2020 61,881 shares |
|
68 |
|
|
62 |
|
||
| Additional paid-in capital |
|
192,972 |
|
|
158,190 |
|
||
| Accumulated deficit |
|
(149,206 |
) |
|
(141,825 |
) |
||
| Cumulative translation adjustments |
|
(2 |
) |
|
(3 |
) |
||
| Total stockholders' equity |
|
43,832 |
|
|
16,424 |
|
||
| Total liabilities and stockholders' equity | $ |
68,993 |
|
$ |
38,358 |
|
||
| See Notes to Consolidated Financial Statements in Part I Item 1 of ChromaDex's Quarterly Report on Form 10-Q to be filed with Securities and Exchange Commission on May 6, 2021. | ||||||||
| ChromaDex Corporation and Subsidiaries | ||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||
| Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | ||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Net loss, as reported | $ |
(5,902 |
) |
$ |
(3,711 |
) |
$ |
(4,215 |
) |
$ |
(6,097 |
) |
$ |
(7,381 |
) |
|||||
| Adjustments: | ||||||||||||||||||||
| Interest expense, net |
|
12 |
|
|
24 |
|
|
19 |
|
|
16 |
|
|
19 |
|
|||||
| Depreciation |
|
214 |
|
|
218 |
|
|
220 |
|
|
219 |
|
|
221 |
|
|||||
| Amortization of intangibles |
|
62 |
|
|
60 |
|
|
60 |
|
|
61 |
|
|
60 |
|
|||||
| Amortization of right of use assets |
|
92 |
|
|
95 |
|
|
97 |
|
|
115 |
|
|
126 |
|
|||||
| Share-based compensation |
|
1,873 |
|
|
1,711 |
|
|
1,574 |
|
|
1,778 |
|
|
1,284 |
|
|||||
| Severance and restructuring |
|
953 |
|
|
284 |
|
|
224 |
|
|
329 |
|
|
(10 |
) |
|||||
| Adjusted EBITDA | $ |
(2,696 |
) |
$ |
(1,319 |
) |
$ |
(2,021 |
) |
$ |
(3,579 |
) |
$ |
(5,681 |
) |
|||||
| Total legal expense |
|
2,380 |
|
|
1,844 |
|
|
1,896 |
|
|
2,468 |
|
|
5,010 |
|
|||||
| Adjusted EBITDA excluding total legal expense | $ |
(316 |
) |
$ |
525 |
|
$ |
(125 |
) |
$ |
(1,111 |
) |
$ |
(671 |
) |
|||||
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FAQ
What were ChromaDex's Q1 2021 financial results?
How did Tru Niagen® perform in Q1 2021?
What is the outlook for ChromaDex in 2021?
What were the changes in operating expenses for ChromaDex in Q1 2021?
What major agreements did ChromaDex announce recently?
