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ENGLEWOOD, NJ, Jun 03, 2010 (MARKETWIRE via COMTEX News Network) -- Medical Nutrition USA, Inc. (NASDAQ: MDNU), a developer and distributor of nutrition-medicine products, announced its financial results for the first fiscal quarter ended April 30, 2010.
First Quarter Fiscal 2011 vs. 2010 -- Sales increased 30% to $4,447,300 from $3,427,700. -- Gross profit increased to $2,441,700 or 55% of sales, from $1,817,400 or 53% of sales; -- Selling, general and administrative expenses were $2,017,200 or 45% of sales, compared to $1,857,900 or 54% of sales; -- Pre-tax income increased $316,500 or 7% of sales, compared to a Loss of $150,000 or (4%) of sales; -- Net income increased to $153,600 or $0.01 per share compared to a net loss of $143,900 or $(0.01) per share.
"We are very pleased with the Company's results for the quarter," Medical Nutrition Chairman and Chief Executive Officer Frank A. Newman said. "Performance was strong across the board -- particularly for branded products, sales of which increased over 35% during the period. Our gains in the quarter reflect the continued addition of new nursing homes and hospitals to our end-user community as well as higher consumption within existing facilities. We feel good about our continuing momentum and direction for the year."
UTI-Stat(R) (ProAntinox(R)) Study Published
Also in the quarter, the Company announced the publication of an independent clinical study showing that the Company's UTI-Stat(R) (ProAntinox(R)) product demonstrated effectiveness in significantly reducing the anticipated incidence of recurrent urinary tract infections (UTI) and significantly improved quality of life in those with a history of UTI. The study was conducted by Dr. Aaron E. Katz, Professor of Clinical Urology at Columbia University's College of Physicians and Surgeons and published by the peer-reviewed journal Urology, the official journal of the International Society of Urology. The results of the study were consistent with those in a 2008 study of UTI-Stat(R) among nursing home residents.
UTI-Stat(R) (ProAntinox(R)) is also available over-the-counter as Cystex(R) Cranberry. The study can be found at: http://www.goldjournal.net/article/S0090-4295(10)00183-4/abstract.
Earnings Conference Call
Medical Nutrition senior management will host a conference call today at 11:00 am EDT, to discuss its results with investors. Dial-in number for the conference call is: (866) 639-9991 (United States and Canada) or (678) 302-3571 (international callers); ask the operator to connect you to the Medical Nutrition USA Investor Call. A live webcast of the conference call can be accessed through the company's web site at: http://ir.medicalnutritionusa.com/events.cfm.
An archive of the webcast with audio can be accessed through the same link above. An audio-only replay of the call will be available following the conference call by dialing (866) 510-4862 (United States and Canada) or (678) 302-3562 (international callers) and entering the code, 4804300# followed by 4 and the following confirmation code: 201002225104127#. The audio-only replay will be available through Saturday, June 5.
About Medical Nutrition USA, Inc.
Medical Nutrition USA develops and distributes products for the nutritionally at risk who are under medical supervision. Its products are used primarily in long-term care facilities, hospitals, dialysis clinics and bariatric clinics. The Company's product lines include Pro-Stat(R), Fiber-Stat(R), UTI-Stat(R) and Diff-Stat(R) as well as private label products. Additional information is available at www.mdnu.com.
Forward-Looking Statements
This news 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 are contained in the Medical Nutrition USA, Inc. Annual Report on Form 10-K for the year ended January 31, 2010 as filed with the Securities and Exchange Commission on April 16, 2010.
MEDICAL NUTRITION USA, INC.
CONDENSED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED
APRIL 30,
2010 2009
(Unaudited) (Unaudited)
Sales $ 4,447,300 $ 3,427,700
Cost of sales 2,005,600 1,610,300
------------ -----------
Gross profit 2,441,700 1,817,400
Selling, general and administrative expenses 2,017,200 1,857,900
Research and development 151,200 147,100
------------ -----------
Operating income (loss) 273,300 (187,600)
------------ -----------
Interest income 43,200 37,600
------------ -----------
Income (loss) before income tax expense (benefit) 316,500 (150,000)
Income tax expense (benefit) 162,900 (6,100)
------------ -----------
Net income (loss) $ 153,600 $ (143,900)
------------ -----------
Earnings (loss) per common share:
Basic $ 0.01 $ (0.01)
------------ -----------
Diluted $ 0.01 $ (0.01)
------------ -----------
Weighted average common shares outstanding
Basic 14,041,116 14,130,752
------------ -----------
Diluted 14,884,580 14,130,752
------------ -----------
MEDICAL NUTRITION USA, INC.
CONDENSED BALANCE SHEETS
April 30, January 31,
2010 2010
------------ ------------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 4,444,500 $ 4,416,900
Short-term investments 7,117,700 7,081,300
Accounts receivable, net of allowance of
$55,200 and $52,200, respectively 1,406,800 1,479,100
Inventories 484,200 596,100
Deferred income taxes 363,300 480,400
Prepaid income taxes 35,900 --
Other current assets 157,700 188,800
------------ ------------
Total current assets 14,010,100 14,242,600
Fixed Assets, net of accumulated depreciation 241,200 251,000
Other Assets:
Deferred income taxes 431,200 442,300
Security deposits 20,000 15,300
Investment in Organics Corporation of America 125,000 125,000
Intangible assets, net of amortization 273,400 277,300
------------ ------------
$ 15,100,900 $ 15,353,500
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 614,700 $ 797,200
Accrued expenses 874,000 1,065,200
Income taxes payable -- 149,800
------------ ------------
Total current liabilities 1,488,700 2,012,200
------------ ------------
Stockholders' Equity:
Preferred stock $0.001 par value, 5,000,000
shares authorized; no shares issued and
outstanding as of April 30, 2010 and January
31, 2010 -- --
Common stock, $0.001 par value; 20,000,000
shares authorized; 14,439,659 shares issued
and 14,416,808 shares outstanding as of
April 30, 2010 and 14,437,425 shares issued
and 14,414,574 shares outstanding as of
January 31, 2010 14,400 14,400
Additional paid-in-capital 25,551,300 25,434,000
Accumulated deficit (11,861,700) (12,015,300)
Accumulated other comprehensive income 11,600 11,600
------------ ------------
13,715,600 13,444,700
Less treasury stock, at cost, 22,851 shares (103,400) (103,400)
------------ ------------
Total stockholders' equity 13,612,200 13,341,300
------------ ------------
$ 15,100,900 $ 15,353,500
============ ============
Contacts: Medical Nutrition USA, Inc. Frank J. Kimmerling Vice President/CFO 800.221.0308 Email Contact Investor Relations Adam Friedman 212.981.2529 x18 Email Contact
SOURCE: Medical Nutrition USA, Inc.
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