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ENGLEWOOD, NJ, Apr 21, 2009 (MARKET WIRE via COMTEX News Network) -- Medical Nutrition USA, Inc. (NASDAQ: MDNU) today announced financial results for the fourth fiscal quarter and the fiscal year ended January 31, 2009.
Fourth Quarter Fiscal 2009 vs. 2008
-- Branded product revenue increased 15% to $3,395,000 from $2,946,900 on
a 32% increase in unit sales offset by price reductions;
-- Total sales increased 15.2% to $3,684,000 from $3,196,300 on higher
branded product sales and private label sales.
-- Gross profit increased to $1,928,000, or 52% of sales, from $1,678,466
or 53% of sales;
-- Selling, general and administrative expenses increased to $2,023,000
or 54.9% of sales, compared to $1,303,000, or 40.7% of sales primarily due
to our previously announced increased investment in expansion of our sales
force, new product introductions and preparation for our planned retail
product introductions.
-- Net cash provided by operating activities was $222,000 compared to
$664,000;
-- Net loss was ($136,000) or $(.01) per share compared to net income of
$435,000 or $.03 per share; and
-- Strong cash position with over $9.7 million in cash and short term
investments and no debt.
Year ended January 31 - Fiscal 2009 vs. 2008
-- Branded product revenue increased 13% to $12,438,000 from $10,978,900
on a 29% increase in unit sales offset by price reductions;
-- Total sales increased 7% to $13,747,200 from $12,800,600 on higher
branded product sales offset by lower private label sales ($1,309,214
compared to $1,821,700);
-- Gross profit increased to $7,273,000, or 53% of sales, from
$6,805,700, or 53% of sales.
-- Selling, general and administrative expenses increased to $7,973,200
or 58% of sales, compared to $5,871,700, or 46% of sales;
-- Net cash provided by operating activities was $1,217,900 compared to
$1,972,800; and
-- Net loss was ($492,100) or ($.04) per share compared to net income of
$869,100 or $.06 per share.
"Our strong performance for the quarter and the year is the result of our focus on expanding our customer base and building market share," Medical Nutrition USA, Inc.'s Chairman and Chief Executive Officer, Frank A. Newman, said. "Despite an increased level of competition, branded product unit sales increased 32 percent in the fourth quarter, and 29 percent for the year.
"The steps taken in fiscal 2009 included increasing our sales force and instituting more aggressive pricing, resulting not only in improved utilization among current users, but also the addition of new nursing homes and hospitals to our user community, including nationally recognized teaching hospitals.
"Consistent with our practice of developing a new product every 10-12 months, the Company introduced UTI-Stat(TM), for urinary-tract infections, in the second quarter. Urinary tract infections are a chronic problem in nursing homes and hospitals. UTI-Stat(TM) has received strong and growing acceptance since its introduction and we expect it to make a material contribution to future sales.
"We expect the June publication of two important new clinical trials on Pro-Stat(TM) to further strengthen the recognition of Pro-Stat's efficacy and contribute to increased sales. This growing bulwark of clinical data is an important competitive advantage and a valuable resource for clinicians.
"We continue to make progress toward the retail introduction of select products. However, the recession has caused many retailers to become less receptive to increasing inventories to accommodate new products. As a result, we do not expect to see material results from retail sales until very late in this year or early next year.
"Not including any benefit from retail sales, we expect total revenue for fiscal 2010 to increase by approximately 16-18% as a result of a strong branded product sales offset by flat private label sales. We expect first quarter sales to be below that trend as a result of distributor loading in January in anticipation of price increases.
"With $9.7 million cash on hand, strong cash flow and no debt we are well positioned to grow our business organically and also through acquisitions, should suitable opportunities arise. We look forward to continuing our strong performance in the coming year."
Conference call
Management will host a conference call on Tuesday, April 21 at 11:00 a.m. EDT to discuss these results, recent activities, corporate news and strategy. A live webcast of the conference call can be accessed through the company's web site at: www.mdnu.com. The live conference call dial-in number is: 866-379-6256 (United States and Canada) with the ID: 95195127. In addition, an archive of the webcast can be accessed through the same link above; and an audio-only replay of the call will be available following the conference call by dialing 800-642-1687 or 706-645-9291 and providing the same ID shown above. The audio-only replay will be available through Thursday, April 23.
This press release contains forward-looking statements that are subject to certain risks and uncertainties. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed. Risks and uncertainties that could cause or contribute to such material difference include, but are not limited to, general economic conditions, changes in customer demand, changes in trends in the nursing home, renal care, health food and bariatric surgery markets, changes in competitive pricing for products, and the impact of our competitors' new product introductions. Our future financial condition and results of operations, as well as any forward-looking statements are subject to change and inherent risk and uncertainties. Other important factors that may cause actual results to differ materially from those expressed in forward-looking statements is contained in the Medical Nutrition USA, Inc. Annual Report on Form 10-K for the year ended January 31, 2008 as filed with the Securities and Exchange Commission on April 29, 2008 and Form 10-Q for the quarter ended October 31, 2008 filed on December 15, 2008.
MEDICAL NUTRITION USA, INC.
BALANCE SHEETS
January 31,
--------------------------
2009 2008
----------- -----------
ASSETS
Current Assets:
Cash and cash equivalents $ 9,654,300 $ 5,208,000
Short-term investments - 4,336,800
Accounts receivable, net of allowance of
$65,600 and $45,000, respectively 1,377,400 1,054,500
Inventories 510,600 401,800
Deferred income taxes 406,500 877,700
Prepaid income taxes 8,300 232,000
Other current assets 191,900 179,800
----------- -----------
Total current assets 12,149,000 12,290,600
Fixed assets, net of accumulated depreciation
and amortization of $345,400 and $248,500,
respectively 318,800 199,000
Other assets:
Deferred income taxes 969,000 480,000
Security deposits 15,300 15,300
Investment in Organics Corporation of
America 125,000 125,000
Intangible assets, net of amortization 276,800 252,700
----------- -----------
$13,853,900 $13,362,600
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 530,700 $ 364,800
Accrued expenses 967,600 466,000
Accrued rebates 73,700 61,700
----------- -----------
Total current liabilities 1,572,000 892,500
----------- -----------
Stockholders' Equity:
Preferred stock $0.001 par value, 5,000,000
shares authorized; no shares issued and
outstanding at January 31, 2009 and 2008 -- --
Common stock, $0.001 par value; 20,000,000
shares authorized, 14,128,614 shares issued
as of January 31, 2009 and 14,045,483 shares
issued as of January 31, 2008 14,100 14,000
Additional paid-in-capital 25,067,600 24,687,900
Accumulated deficit (12,497,900) (12,005,800)
----------- -----------
12,583,800 12,696,100
Less: treasury stock, at cost; 98,080 and
52,562 shares, respectively (301,900) (226,000)
----------- -----------
Total stockholders' equity 12,281,900 12,470,100
----------- -----------
$13,853,900 $13,362,600
=========== ===========
MEDICAL NUTRITION USA, INC.
STATEMENTS OF OPERATIONS
Years Ended
January 31,
--------------------------
2009 2008
----------- -----------
Sales $13,747,200 $12,800,600
Cost of sales 6,474,200 5,994,900
----------- -----------
Gross profit 7,273,000 6,805,700
----------- -----------
Selling, general and administrative expenses 7,921,700 5,763,700
Research and development expenses 51,500 108,000
----------- -----------
Operating (loss) income (700,200) 934,000
----------- -----------
Interest income 237,800 416,000
----------- -----------
(Loss) income before income tax expense (462,400) 1,350,000
Income tax expense 29,700 480,900
----------- -----------
Net (loss) income $ (492,100) $ 869,100
=========== ===========
(Loss) earnings per common share:
Basic $ (0.04) $ 0.06
=========== ===========
Diluted $ (0.04) $ 0.06
=========== ===========
Weighted average common shares outstanding:
Basic 13,893,787 14,128,601
=========== ===========
Diluted 13,893,787 15,553,755
=========== ===========
Contacts: Medical Nutrition USA, Inc. Frank J. Kimmerling Vice President/Finance Chief Financial Officer 800-221-0308 Email Contact Adam Friedman Associates LLC Adam Friedman 212-981-2529 x18 Email Contact
SOURCE: Medical Nutrition USA, Inc.
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