IRVINE, Calif., Nov. 23, 1999 (PRIMEZONE) -- Naturade, Inc. (OTCBB:NRDC) today reported a net loss of ($2,080,605) for the third quarter ended September 30, 1999 or ($0.39) per share, on net sales of $3,298,259, compared with a net loss a year earlier of ($1,799,746), or ($0.34) per share on net sales of $3,693,196. Operating results showed a third quarter loss of ($587,030) as compared to a prior year operating loss of ($1,637,819).
Bill Stewart, Chief Executive Officer, said, "Third quarter results reflect decisions planned, made and executed during the last eighteen months to reposition the company as a marketer of differentiated branded products that target attractive, high-growth segments with innovative products." Sales for the core protein powders and aloe vera product lines were up 9.5% versus third quarter 1998. This was offset by expected declines in the PLEX and international businesses. Orders for the company's new product line, Naturade Total Soy, continue to grow significantly with increased penetration into mass accounts. The company's restructuring plans are on target and in line with company expectations.
Improved third quarter operating results were due to higher gross margins and reduced operating costs. Non-operating charges reflect a one-time interest expense due to the granting of warrants and the issuance of debt with a beneficial conversion feature, which, per GAAP, required a charge of $1,288,115 to the September 30, 1999 quarter.
Stewart said, "Our strategic plan is on track with restructured financing, a new management team in place and a clear focus on building on our significant position in the soy protein category. We're optimistic that our strategic focus on expanded distribution combined with the recent FDA heart health claim for soy protein will allow us to begin a new chapter in financial performance as we move into 2000."
Founded in 1926, Naturade's offices are in new, modern facilities in Irvine, California. The company is committed to marketing innovative natural products that actively nourish and improve the health and well-being of consumers. The company's brands include Naturade Total Soy(TM) Naturade NRG(TM) Naturade Vegetable Protein(TM) Naturade 100% Soy (TM) (all of which qualify for the FDA heart health claim), THE CHINESE WAY(TM) herbs and Aloe Vera 80(TM)natural beauty care products. For more information visit the Naturade Web site at www.naturade.com or call toll-free (877) 4 Soy News.
NOTE: The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. For a more detailed discussion of some of the ongoing risks and uncertainties of the Company's business, see the Company's filings with the Securities and Exchange Commission.
NATURADE, INC.
INCOME STATEMENT
3 Mo. Ended 9 Mo.s Ended
9/30/99 9/30/98 9/30/99 9/30/98
Net sales $ 3,298,259 $ 3,693,196 $ 8,432,184 $ 10,777,915
Cost of
sales 1,874,417 2,913,541 5,100,343 7,105,385
Gross profit 1,423,842 779,655 3,331,841 3,672,530
Operating costs and expenses
SG & A 2,007,779 1,926,999 5,821,467 6,776,606
New product
Design 443,333 443,333
Depreciation &
amortization 3,093 47,142 94,538 140,848
Total operating
costs &
expenses 2,010,872 2,417,474 5,916,005 7,360,787
Operating
(Loss) (587,030) (1,637,819) (2,584,164) (3,688,257)
Other income (expense)
Interest
Expense (1,412,723) (92,544) (1,636,209) (296,568)
Other (Income)
Expense (80,315) 66,067 (2,814,659) 16,824
Total other
(income)
expense (1,493,038) (26,477) (4,450,868) (279,744)
(Loss) income
before income
taxes (2,080,068) (1,664,296) (7,035,032) (3,968,001)
Provision for
income taxes 537 135,450 2,937 77,996
Net (loss)
Income ($2,080,605) ($1,799,746) ($7,037,969) ($4,045,997)
Basic (loss)
earnings per
share ($0.39) ($0.34) ($1.32) ($0.76)
NATURADE, INC.
BALANCE SHEET
9/30/99 12/31/98
Current Assets
Cash $ 1,158,460 $ 842,029
Accounts & notes receivables 1,386,279 1,294,612
Related party receivables 0 600,000
Inventories 2,620,456 2,093,981
Refundable income taxes 0 163,416
Prepaid expenses 211,272 325,853
Total current assets 5,376,467 5,319,891
Property and equipment, net 310,660 1,981,326
Intangible assets, net 112,520 1,106,358
Other assets 103,199 116,014
526,379 3,203,698
Total assets $ 5,892,846 $ 8,523,589
Current liabilities
A/P & accrued expenses $ 1,732,678 $ 891,069
Accrued expenses 266,851 565,794
Line of credit 980,308 1,450,000
Notes payable 388,667
Amount due to related party,
Net of debt discount of $237,366 1,362,634 -
Current portion long-term debt 31,452 193,383
4,762,590 3,100,246
Long-Term Debt, less
current maturities 143,866 1,964,324
Amount due to stockholder 3,000,000 -
Stockholders' equity (2,013,610) 3,459,019
Total liabilities &
stockholders' equity $ 5,892,846 $ 8,523,589
CONTACT: Larry Batina
Chief Financial Officer
Naturade, Inc.
714-573-4800
Steven Stern/Cecilia Wilkinson
Pondel / Wilkinson Group
310-207-9300