ENGLEWOOD, N.J., June 11, 2008 (PRIME NEWSWIRE) -- Medical Nutrition USA, Inc. (Nasdaq:MDNU) today announced financial results for the first fiscal quarter ended April 30, 2008.
First Quarter Fiscal 2009 vs. 2008
* Total sales increased 17% to $3,309,600 from $2,831,200; * Branded product revenue increased 17% to $2,892,500 from $2,469,200 on a 31% increase in unit sales offset by price reductions; * Gross margin increased to $1,769,400, or 53.5% of sales, from $1,542,100, or 54.5% of sales, as a result of higher sales offset by price reductions; * Selling, general and administrative (SG&A) expenses increased to $1,937,400, or 59% of sales, compared to $1,408,400, or 50% of sales, primarily as a result of increased Sales and Marketing expenses of $395,000 for the Company's previously announced increase in its sales force and other marketing expenses; * Operating loss was ($219,500) compared to operating income of $133,700; * Net loss was $(121,400) or $(0.01) per share compared to net income of $53,700 or $0.00 per share.
"We are very pleased with the initial results of our plan to accelerate market penetration. We have strengthened our sales force with six additional area managers, increased unit sales of branded products by 31%, and delivered gross margins in line with our forecast. My congratulations to our entire team for their skillful and timely execution of our first quarter initiatives," said Frank A. Newman, Chairman and Chief Executive Officer.
"During the second quarter we will complete the introduction of our new UTI-Stat product, a proprietary formulation that helps support urinary tract health. Trials conducted in 10 long-term care facilities in five states showed that 92% of residents with a history of urinary tract infections remained symptom-free while taking UTI-Stat. Though somewhat costly in the short-term, we expect the successful implementation of our first and second quarter initiatives to contribute materially to sales beginning in our third fiscal quarter and continuing thereafter," Mr. Newman added.
"In addition, the expected addition of retail distribution of certain of our products by the end of this fiscal year represents a significant growth opportunity beyond the existing market potential for our products in nursing homes and dialysis clinics," he concluded.
Conference call
The Company will host a conference call to discuss these results on Thursday, June 12th at 11:00 A.M. EDT. To participate, please call (706) 643-9215. The conference call will also be broadcast live over the Internet. To listen to the live call, please go to www.mdnu.com and click on the Investor Relations section where the conference call is posted. Please go to the website 15 minutes early to download and install any necessary audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days.
This press release contains forward-looking statements that are subject to certain risks and uncertainties. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed. Risks and uncertainties that could cause or contribute to such material difference include, but are not limited to, general economic conditions, changes in customer demand, changes in trends in the nursing home, renal care, health food and bariatric surgery markets, changes in competitive pricing for products, and the impact of our competitors' new product introductions. Our future financial condition and results of operations, as well as any forward- looking statements are subject to change and inherent risk and uncertainties. Other important factors that may cause actual results to differ materially from those expressed in forward-looking statements is contained in the Medical Nutrition USA, Inc. Annual Report on Form 10-KSB for the year ended January 31, 2008 as filed with the Securities and Exchange Commission on April 29, 2008.
Medical Nutrition USA, Inc.
Condensed Statements of Operations
For the Three Months
ended April 30,
2008 2007
(unaudited)
Sales $ 3,309,600 $ 2,831,200
Cost of sales 1,540,200 1,289,100
--------------------------
Gross Profit 1,769,400 1,542,100
Selling, general & administrative 1,937,400 1,408,400
Research & development 51,500 --
--------------------------
Operating (loss) income (219,500) 133,700
Interest income 68,900 94,500
--------------------------
(Loss) income before income
tax (benefit) provision (150,600) 228,200
Provision for income taxes (29,200) 174,500
--------------------------
Net (loss) income $ (121,400) $ 53,700
==========================
(Loss) earnings per share
Basic ($0.01) $ 0.00
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Diluted ($0.01) $ 0.00
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Medical Nutrition USA, Inc.
Condensed Balance Sheets
4/30/08 1/31/08
(unaudited)
Assets
Cash and cash equivalents $ 6,162,100 $ 5,208,000
Short-term investments 3,153,600 4,336,800
Accounts receivable, net 1,260,600 1,054,500
Inventories 404,400 401,800
Deferred income taxes 881,300 877,700
Prepaid income taxes 12,200 232,000
Other current assets 154,000 179,800
----------------------------
Total current assets 12,028,200 12,290,600
Fixed assets, net 260,200 199,000
Other assets
Deferred income taxes 536,300 480,000
Security deposits 15,300 15,300
Investment in Organics Corp of America 125,000 125,000
Intangible assets, net 274,100 252,700
----------------------------
Total assets $ 13,239,100 $ 13,362,600
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Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 467,500 $ 364,800
Accrued expenses 649,500 466,000
Accrued rebates 58,600 61,700
----------------------------
Total current liabilities 1,175,500 892,500
----------------------------
Stockholders' equity
Common stock 13,900 14,000
Additional paid-in-capital 24,407,200 24,687,900
Accumulated deficit (12,127,200) (12,005,800)
----------------------------
12,293,900 12,696,100
Less: treasury stock (230,300) (226,000)
----------------------------
Total shareholders' equity 12,063,600 12,470,100
----------------------------
Total liabilities and
shareholders' equity $ 13,239,100 $ 13,362,600
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