LONG BEACH, Calif and BOULDER, Colo., Nov. 26, 2001 (PRIMEZONE) -- Hauser, Inc. (OTCBB:HAUS) today reported its financial results for the fiscal 2002 second quarter ended September 30, 2001.
For the fiscal 2002 second quarter, net loss narrowed to $911,000, or $0.16 per share, from a net loss in the corresponding quarter a year ago of $3.1 million, or $0.63 per share. Loss from operations improved to $538,000, compared with loss from operations of $2.4 million in the same quarter a year ago. Total revenues were $13.4 million, compared with total revenues of $17.4 million in the corresponding year-earlier quarter.
For the first half of fiscal 2002, Hauser recorded a net loss of $1.5 million, or $0.28 per share, improved from a net loss in the year-earlier first half of $5.0 million, or $1.03 per share. The current first half loss from operations totaled $716,000, compared with a year ago when the first half loss from operations equaled $4.4 million. Total revenues for the first six months of fiscal 2002 were $29.2 million, compared with $39.1 million a year ago.
Kenneth Cleveland, president and chief executive officer, said, "Our results reflect the progress we continue to make as we seek ways to operate more efficiently. Costs in sales, marketing, and general and administrative have been significantly reduced, not only quarter-over-quarter but also sequentially."
Hauser also announced that it is in the process of negotiating a renewal of the credit line with its bank. The credit facility expired on September 30, 2001, and the bank is continuing to make funds available to the company.
As part of its program to better focus Hauser's resources and improve its financial and operating structure, the company has previously announced its intention to sell Hauser Contract Research, Hauser Laboratories and Shuster Laboratories.
Cleveland said, "We are pleased with the progress we are making toward divestiture of our non-core business units, which will permit us to pay down debt and better deploy our resources on those operations that hold the greatest potential for Hauser's future success."
Additionally, the company announced that Dean P. Stull and Volker Wypyszyk, both senior executive vice presidents and board members, have resigned.
Hauser, a Customer Connected(sm) company headquartered in Long Beach, California and Boulder, Colorado, is a leading supplier of herbal extracts and nutritional supplements. The company also provides interdisciplinary laboratory testing services, chemical engineering services, and contract research and development. The company's products and services are principally marketed to the pharmaceutical, dietary supplement and food ingredient businesses. Hauser's business units include: Botanicals International Extracts, Hauser Laboratories, Shuster Laboratories, and ZetaPharm.
Certain oral and written statements of management of the Company included in this Press Release and elsewhere may contain forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. These statements include the plans and objectives of management for future operations. There can be no assurance that the company will renew the credit facility or on terms acceptable to the company. The forward-looking statements included herein and elsewhere are based on current expectations that involve judgments that are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.
HAUSER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS-Unaudited
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Three months ended Six months ended
September 30, September 30,
------------------------ ------------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
REVENUES:
Dietary
supplements $ 7,595,000 $10,117,000 $17,006,000 $22,771,000
Pharmaceutical
and Functional
Ingredients 1,321,000 3,551,000 2,927,000 8,372,000
Technical
services 4,531,000 3,703,000 9,264,000 7,968,000
----------- ----------- ----------- -----------
Total revenues 13,447,000 17,371,000 29,197,000 39,111,000
----------- ----------- ----------- -----------
COST OF REVENUES:
Dietary
supplements 5,910,000 9,280,000 13,310,000 21,061,000
Pharmaceutical
and Functional
Ingredients 1,100,000 2,797,000 2,431,000 7,182,000
Technical
services 3,663,000 3,402,000 7,240,000 6,748,000
----------- ----------- ----------- -----------
Total cost
of revenues 10,673,000 15,479,000 22,981,000 34,991,000
----------- ----------- ----------- -----------
GROSS PROFIT 2,774,000 1,892,000 6,216,000 4,120,000
----------- ----------- ----------- -----------
OPERATING
EXPENSES:
Research and
development 609,000 776,000 1,280,000 1,309,000
Sales and
marketing 722,000 1,241,000 1,483,000 2,089,000
General and
administrative 1,981,000 2,300,000 4,169,000 5,129,000
----------- ----------- ----------- -----------
Total operating
expenses 3,312,000 4,317,000 6,932,000 8,527,000
----------- ----------- ----------- -----------
LOSS FROM
OPERATIONS (538,000) (2,425,000) (716,000) (4,407,000)
----------- ----------- ----------- -----------
OTHER INCOME
(EXPENSE):
Interest and
other income 4,000 11,000 9,000 28,000
Interest expense (377,000) (631,000) (822,000) (1,219,000)
Net gain from
sale of assets -- (29,000) -- 601,000
----------- ----------- ----------- -----------
Total other
(expense) income (373,000) (649,000) (813,000) (590,000)
----------- ----------- ----------- -----------
LOSS BEFORE
INCOME TAX (911,000) (3,074,000) (1,529,000) (4,997,000)
INCOME TAX
EXPENSE (BENEFIT) -- -- -- --
----------- ----------- ----------- -----------
NET LOSS $ (911,000) $(3,074,000) $(1,529,000) $(4,997,000)
=========== =========== =========== ===========
LOSS PER SHARE
BASIC AND
DILUTED: $ (0.16) $ (0.63) $ (0.28) $ (1.03)
=========== =========== =========== ===========
WEIGHTED AVERAGE
SHARES OUTSTANDING
BASIC AND DILUTED 5,701,778 4,874,606 5,455,036 4,855,366
=========== =========== =========== ===========
HAUSER, INC.
CONSOLIDATED BALANCE SHEETS-Unaudited
-------------------------------------
September 30, March 31,
2001 2001
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 539,000 $ 616,000
Accounts receivable, less
allowance for doubtful
accounts:
September 30, 2001, $830,000;
March 31, 2001, $877,000 10,914,000 12,272,000
Inventory, at cost or market 9,887,000 9,802,000
Prepaid expenses and other 1,149,000 928,000
------------ ------------
Total current assets 22,489,000 23,618,000
------------ ------------
PROPERTY AND EQUIPMENT:
Land and buildings 8,985,000 8,967,000
Laboratory and processing
equipment 17,184,000 17,402,000
Furniture and fixtures 4,324,000 3,588,000
------------ ------------
Total property and equipment 30,493,000 29,957,000
Accumulated depreciation
and amortization (18,224,000) (17,258,000)
------------ ------------
Net property and equipment 12,269,000 12,699,000
------------ ------------
OTHER ASSETS:
Goodwill, less accumulated
amortization:
September 30, 2001 $1,384,000;
March 31, 2000, $1,273,000 837,000 948,000
Deposits and other 565,000 574,000
------------ ------------
$ 36,160,000 $ 37,839,000
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,959,000 $ 2,833,000
Current portion of
long-term debt 18,692,000 18,790,000
Accrued salaries and benefits 982,000 1,300,000
Deposits 556,000 643,000
Accrued exit costs 299,000 508,000
Other current liabilities 5,710,000 5,814,000
------------ ------------
Total current liabilities 29,198,000 29,888,000
------------ ------------
LONG-TERM DEBT -- 36,000
------------ ------------
NOTE PAYABLE TO RELATED PARTY 2,764,000 2,705,000
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock, $.001 par value;
50,000,000 shares authorized;
shares issued and outstanding:
September 30, 2001, 5,712,262;
March 31, 2001, 5,072,742 6,000 5,000
Additional paid-in capital 95,060,000 94,544,000
Warrants 354,000 354,000
Accumulated deficit (91,222,000) (89,693,000)
------------ ------------
4,198,000 5,210,000
------------ ------------
$ 36,160,000 $ 37,839,000
============ ============