Gaithersburg, MD, April 13, 2020 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTCQB: VRUS)) today announced financial results for its fiscal 2019 fourth quarter and fiscal year ended October 31, 2019. In conjunction with this release, the Company is also providing additional details on its strategy for the upcoming fiscal 2020 financial year.
For Q4 2019, revenue set an all-time record of $4.7 million, an increase of 116% over the $2.2 million reported in Q4 2018.
For fiscal 2019, management is noting the following items of importance:
- Revenue set an all-time record of $13.6 million, an increase of 135% over the $5.8 million reported in fiscal 2018.
- Gross profit margin was 15.2%, approximately 230 basis-points higher than the 12.9% reported in fiscal 2018.
- Operating expenses of $6.2 million were $3.2 million higher than the $0.9 million reported in fiscal 2018 as a result of a $3.1 million increase in stock-based compensation and higher legal fees associated with M&A and financing activities. As a percentage of revenue (excluding non-cash, stock-based compensation) operating expenses improved to 20.6% of revenue compared to 23.4% in the prior fiscal year.
- Net loss from continuing operations was $2.4 million, which was impacted by a number of non-cash gains and expenses, and was $0.7 million less than the $3.1 million generated in the prior fiscal year.
“We ended Q4 fiscal 2019 with another solid triple-digit quarter, despite being in the middle of a product makeover in our MLB line,” explained Verus CEO Anshu Bhatnagar. “To manage triple digit growth during a retooling effort shows the strength of our current operations, but we expect to return to a higher growth rate in upcoming quarters. With the filing of the 10-K, we are now current with our reporting and can resume our efforts to gain commercial sources of working capital. As expected, we were not required to restate any prior quarters and we are already well into our next set of financials. We plan to file our fiscal 2020 Q1 results before April 30, 2020.”
On a forward basis, the Company is providing the following update and guidance:
- The merger with Nutribrands has amicably ended due to an inability to agree with the management of Nutribrands to advance the business and operate pursuant to the terms of the Contribution and Sale Agreement.
- During April 2020, the Company acquired a 51% interest in TC Top Apparel, a Philippine’s based textile manufacturer that makes biohazard protection suits and masks.
- The Company is in active, late stage discussions with the National Basketball Association (NBA), the National Hockey League (NHL), NASCAR, and the National Football League (NFL), as well as multiple players associations, including the MLB and other leagues, for the right to feature players on packaging.
- Verus is furthering discussions with more than a dozen major regional and national retail chains interested in carrying Big League Foods products during 2020.
“Now that we’ve reported our fiscal 2019 record revenue and related results, it’s time to bring the focus back to the present,” said CEO Bhatnagar. All companies are dealing with disruptions from the worldwide COVID-19 pandemic, but we have been lucky to be in the right food categories at the right time. The equipment for our Texas manufacturing facility has been delayed, quite a few retailers remain closed (along with professional sports), and working from home seems to steal an extra hour out of every day. But despite these temporary challenges, we remain confident in generating triple digit revenue growth during upcoming quarters. Like many companies, we require more clarity before stating our forecast for the next four quarters, but our models continue showing excellent growth potential through the remainder of 2020 and into 2021.”
Financial Results and Corporate Update Conference Call
Verus management will host a conference call for analysts and investors at 4:30 p.m. eastern time (1:30 p.m. Pacific Time) on April 13, 2020 to discuss the Company's financial results and future business plan.
To listen to the live conference call, parties can use the following options:
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https://zoom.us/j/881381554
Meeting ID: 881 381 554
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Meeting ID: 881 381 554
Find your local number: https://zoom.us/u/a6O2Y7ZbS
An archived webcast of the conference call will be accessible on the "Investor Relations" section of the Company's website at www.verusfoods.com.
About Verus International
Verus is a global, emerging multi-line consumer packaged goods (CPG) company developing branded product lines in the U.S. and the Middle East. The Company trades on the OTC market (OTCQB: VRUS). Investors can find real-time quotes and market information for the Company on www.otcmarkets.com. Additional information is also available at the Company’s website, www.verusfoods.com, and via the official Twitter feed @Verus_Foods and the Big League Foods subsidiary Twitter feed @BigLeagueFoods.
Safe Harbor Statement
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results could differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Contacts
Investor Contact:
MKR Group Inc.
Todd Kehrli or Mark Forney
vrus@mkr-group.com