Paramount, Calif. May 18, 1999 (PRIMEZONE) -- Naturade, Inc., (OTC BB: NRDC) recently reported a net loss for the fiscal quarter ended March 31, 1999 of ($3,782,272), or ($0.71) per share, on net sales of $2,352,808, compared with a net loss a year earlier of ($1,544,785) or ($0.29) per share, on net sales of $3,139,098.
The company attributed $2,774,000 of the loss to a civil judgment entered against the Company by the United States Bankruptcy Court for the Northern District of Texas following a trial last year in the proceeding initiated by the Trustee in the Chapter 7 bankruptcy case of Performance Nutrition, Inc.
The remaining loss of $1,008,272 was the result of a significant slowdown in sales in both the domestic and International product lines.
Bill D. Stewart, chief executive officer said "The March 1999 quarter was a challenging one for Naturade as it finalized its transition from a company totally reliant upon the Health Food Channel to a company with a broader distribution in Grocery, Drug, Discount and Health channels.
"Our goal for 1999 is to reposition Naturade by launching new products geared towards these new markets and creating the infrastructure to support the product development, advertising and shipping demands of the mass market.
"The company repositioning and product rollout priority has required us to make some hard decisions regarding asset write-offs and product line discontinuations. However, we continue to believe that we are on the right track for 1999 and view the balance of the year with excitement and cautious optimism."
Naturade, Inc., founded in 1926, is a leading provider of low carbohydrate, high protein powders in the United States, with eight of the top selling ten brands, including the N-R-G(TM) brand, the nation's number one selling protein powder. In addition to protein powders, the company also distributes Kids' Plex(TM) nutritional powders and nutritional bars for children, The Chinese Way(TM) herbal remedies, and a complete line of high concentrate Aloe-Vera based skincare products using a base of a minimum 80 percent aloe vera extract.
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.
BALANCE SHEET
March 31, December 31,
1999 1998
Current Assets
Cash $ 544,339 $ 842,029
Accounts & Notes Receivables 1,029,295 1,294,612
Related Party Receivables 600,000 600,000
Inventories 2,071,815 2,093,981
Refundable Income Taxes 163,416 163,416
Prepaid Expenses 444,957 325,853
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Total Current Assets 4,853,822 5,319,891
Property and Equipment, Net 1,997,177 1,981,326
Intangible Assets, Net 1,092,129 1,106,358
Other Assets 89,735 116,014
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3,179,041 3,203,698
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Total Assets $ 8,032,863 $ 8,523,589
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Current Liabilities
A/P & Accrued Expenses $ 1,697,662 $ 1,456,863
Lawsuit Judgment Payable 2,774,000 -
Notes Payable 1,735,719 1,450,000
Current Portion Long-Term Debt 192,400 193,383
------------ -------------
6,399,781 3,100,246
Long-Term Debt,
less current maturities 1,916,476 1,964,324
Stockholders' Equity (283,394) 3,459,019
------------ -------------
Total Liabilities &
Stockholders' Equity $ 8,032,863 $ 8,523,589
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INCOME STATEMENT
Three Months Ended
March 31, March 31,
1999 1998
---------- -----------
Net Sales $ 2,352,808 $ 3,139,098
Cost of Sales 1,384,629 2,198,951
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Gross Profit 968,179 940,147
Costs and Expenses 4,748,051 2,542,386
(Loss) before income taxes (3,779,872) (1,602,239)
Provision for income taxes 2,400 (57,454)
Net (loss) income $ (3,782,272) $ (1,544,785)
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Basic (loss) earnings per share $ (0.71) $ (0.29)
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