HILLSIDE, N.J., May 23, 2008 (PRIME NEWSWIRE) -- Integrated BioPharma, Inc. (Nasdaq:INBP) reported financial results today for the three and nine month periods ended March 31, 2008.
Revenues for the quarter ended March 31, 2008 were $11.2 million compared to $16.4 million for the quarter ended March 31, 2007, a decrease of $5.2 million. The Company had an operating loss for the quarter ended March 31, 2008 of $5.3 million compared to operating income of $0.5 million for the quarter ended March 31, 2007.
Revenues for the nine month period ended March 31, 2008 were $37.5 million compared to $50.2 million for the nine month period ended March 31, 2007, a decrease of $12.7 million. The Company had an operating loss for the nine months ended March 31, 2008 of $10.5 million compared to operating income of $2.9 million for the nine months ended March 31, 2007.
For the quarter ended March 31, 2008, there was a net loss applicable to common shareholders of $7.3 million or ($0.50) per diluted share, compared with net income applicable to common shareholders of $0.1 million, or ($0.01) per diluted share, for the quarter ended March 31, 2007. Net loss applicable to common shareholders is calculated after non-cash dividends (payable with common stock of the Company) and non-cash Preferred Stock deemed dividends of $65,000 and $24,000, respectively, in the quarter ended March 31, 2008 and cash dividends and non-cash Preferred Stock deemed dividends of $4,000 and $21,000, respectively for the quarter ended March 31, 2007.
For the nine months ended March 31, 2008, there was a net loss applicable to common shareholders of $12.3 million, or ($0.86) per diluted share, compared with net loss applicable to common shareholders of $2.0 million, or ($0.15) per diluted share, for the same period in 2007. The nine month period ended March 31, 2007 net loss applicable to common shareholders is calculated after non-cash dividends (payable in common stock of the Company) and non-cash Preferred Stock dividends of $65,000 and $24,000, respectively, and cash dividends and non-cash Preferred Stock deemed dividends of $1.5 million and $1.8 million, respectively for the nine months ended March 31, 2007.
As previously reported, in connection with the new capital investments obtained from Imperium Master Fund, Ltd. and CDS Financial, LLC, a company controlled by Carl DeSantis, the Company put in place a new management team to oversee and manage the beverage business of its AgroLabs and Organic Beverage Company subsidiaries. The foregoing results of operations for this quarter and the nine months ended March 31, 2008 were affected significantly by the decisions of the new management team to discontinue certain products designed and sold by prior management, write-off inventory items related to discontinued products, and to instead focus on the development and introduction of new products and packaging believed to be better suited to the current market conditions affecting the Company's major customers.
A summary of our financial results for the three and nine months ended March 31, 2008 follows:
INTEGRATED BIOPHARMA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------ ------------------------
2008 2007 2008 2007
---- ---- ---- ----
Total revenue $ 11,207 $ 16,426 $ 37,538 $ 50,189
Cost of sales 10,317 11,520 30,965 34,162
----------- ----------- ----------- -----------
Gross profit 890 4,906 6,573 16,027
----------- ----------- ----------- -----------
Selling and
administrative
expenses 6,227 4,376 17,065 13,110
----------- ----------- ----------- -----------
Operating (loss)
income (5,337) 530 (10,492) 2,917
Other expense,
net (149) (179) (741) (372)
----------- ----------- ----------- -----------
(Loss) income
before
income taxes and
minority interest (5,486) 351 (11,233) 2,545
Federal and state
income tax
expense, net 1,762 229 982 1,194
----------- ----------- ----------- -----------
Net (loss) income
before minority
interest (7,248) 122 (12,215) 1,351
Minority interest -- -- -- 38
----------- ----------- ----------- -----------
Net (loss) income (7,248) 122 (12,215) 1,389
Non-cash deemed
dividend from
beneficial
conversion
feature of
Preferred
stock dividend (1) (24) (21) (24) (1,804)
Preferred stock
dividend (2),(3) (65) (4) (65) (1,554)
----------- ----------- ----------- -----------
Net loss
applicable
to common
shareholders $ (7,337) $ 97 $ (12,304) $ (1,969)
=========== =========== =========== ===========
Net (loss) income
per common share:
Basic $ (0.50) $ 0.01 $ (0.86) $ (0.15)
=========== =========== =========== ===========
Diluted $ (0.50) $ 0.01 $ (0.86) $ (0.15)
=========== =========== =========== ===========
Weighted average
common shares
outstanding:
Basic 14,583,630 13,684,381 14,241,615 13,512,830
=========== =========== =========== ===========
Diluted 14,583,630 16,751,214 14,241,615 13,512,830
=========== =========== =========== ===========
------------------------
(1) Represents non-cash deemed dividend for preferred shareholders
associated with the amortization of beneficial conversion
feature and accretion of redemption value of Series C (in 2008)
and B (in 2007) redeemable convertible preferred stock. The
Series B Preferred was substantially redeemed in the three and
nine month periods ended March 31, 2007. The Series C was
issued in the three month period ended March 31, 2008.
(2) Represents 7% dividend on Series B redeemable convertible
preferred stock. Includes non-cash dividends of $1.2 million
in the periods ended March 31, 2007.
(3) Represents 10% dividend on Series C redeemable convertible
preferred stock in the periods ended March 31, 2008. Dividends
on the Series C redeemable preferred stock is payable in common
stock of the Company.
About Integrated BioPharma, Inc. (INBP)
Integrated BioPharma, Inc. is a unique grouping of companies presently serving the varied needs of the health care industry. Through its nutraceutical business, the Company creates, develops, manufactures and markets products worldwide. The Company's biotechnology business uses its patented plant-based technology to produce vaccines and therapeutic antibodies. Its pharmaceutical business operates a cGMP facility for the production and sale of Paclitaxel and related drugs and provides technical services through its contract research organization. Further information is available at www.iBioPharma.com.
Statements included in this release related to Integrated BioPharma, Inc. may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand, and the Company's ability to obtain new contracts and accurately estimate net revenues due to variability in size, scope and duration of projects. Further information on potential risk factors that could affect the Company's financial results can be found in the company's Reports filed with the Securities and Exchange Commission.