ChromaDex Reports 2016 Record Revenue as Ingredient Sales Grew 34%

IRVINE, Calif., March 16, 2017 (GLOBE NEWSWIRE) — ChromaDex Corp. (NASDAQ:CDXC), an innovator of proprietary health, wellness and nutritional ingredients, that creates science-based solutions to dietary supplement, food and beverage, skin care, sports nutrition, and pharmaceutical products, announced today the financial results for the year ended Dec. 31, 2016.

“We finished 2016 on a strong note, generating 29% year over year revenue growth during the fourth quarter,” commented Frank Jaksch, Jr., CEO and co-founder of ChromaDex. “We achieved record full year revenue of $26.8 million in 2016, driven by continued adoption of NIAGEN® branded nicotinamide riboside (NR). While our ingredient sales continue to grow, we are still in the early phase of our growth and only reaching the early adopters of our platform ingredient NR.”

Jaksch continued, “As we enter 2017, we should benefit from business development activity with large multi-national companies as both preclinical and clinical research validating the health benefits of NR continues to publish as the year progresses. NR is an exceptional ingredient within our portfolio and we believe it deserves a unique strategy to optimize its value within our business.”

Results of operations for the year ended Dec. 31, 2016

For the year ended Dec. 31, 2016 (“FY 2016”), ChromaDex reported net sales of $26.8 million, an increase of 22% as compared to $22.0 million for the year ended Jan. 2, 2016 (“FY 2015”). This increase was largely due to increased sales in its ingredients business segment, led by its NIAGEN® nicotinamide riboside (NR). The ingredients segment generated net sales of $16.8 million for FY 2016, an increase of 34%, compared to $12.5 million for FY 2015. 

The core standards and services segment posted an 11% growth as it generated net sales of $9.4 million for FY 2016, compared to $8.4 million for FY 2015. 9Net sales for the scientific and regulatory consulting segment decreased by 37%, from $1.1 million for FY 2015 to $0.7 million for FY 2016, primarily due to a further emphasis on intercompany work supporting our ingredients segment.  

The net loss attributable to common stock holders for FY 2016 was $2.9 million or $0.08 per share as compared to a net loss of $2.8 million or $0.08 per share for FY 2015. Adjusted EBITDA a non-GAAP measure, was $0.9 million for 2016, compared to adjusted EBITDA of $0.2 million for 2015.  ChromaDex defines Adjusted EBITDA as net income (loss) adjusted for income tax, interest, depreciation, amortization and non-cash stock compensation costs. The Basic and Diluted Adjusted EBITDA per share for 2016 was $0.03 versus $0.00 for 2015. The decline in adjusted EBITDA and adjusted EBITDA per share for 2016, when compared to the prior year, primarily reflects increased expenses related to planned research and development investment and increased legal expenses.

Results of operations for the three months ended Dec. 31, 2016

For the three months ended Dec. 31, 2016 (“Q4 2016”), ChromaDex reported net sales of $5.6 million, an increase of 29% as compared to $4.4 million for the three months ended Jan. 2, 2016 (“Q4 2015”), largely due to increased sales in its ingredients business segment, led by its NIAGEN® nicotinamide riboside. The ingredients segment generated net sales of $3.3 million for Q4 2016, an increase of 42%, compared to $2.3 million for Q4 2015. 

The core standards and services segment also posted a 21% growth as it generated net sales of $2.3 million for Q4 2016, compared to $1.9 million for Q4 2015. Net sales for the scientific and regulatory consulting segment decreased by 40%, from $0.2 million for Q4 2015 to $0.1 million for Q4 2016, primarily due to a further emphasis on intercompany work supporting our ingredients segment. 

The net loss attributable to common stock holders for Q4 2016 was $2.1 million or ($0.06) per share as compared to a net loss of $1.4 million or ($0.04) per share for Q4 2015. Adjusted EBITDA, a non-GAAP measure, was ($1.8 million) for Q4 2016, compared to adjusted EBITDA of ($0.8 million) for Q4 2015. The Basic and Diluted Adjusted EBITDA per share for Q4 2016 was ($0.05) versus ($0.02) for Q4 2015.

2016 and recent 2017 Company highlights include:

Investor Conference Call
 
ChromaDex management will host an investor conference call to discuss the year end results and provide a general business update on Friday, March 17, at 1 p.m. ET.

Participants should call in at least 10 minutes prior to the call. The dial-in information is as follows:

U.S. Toll-Free Number: (866) 327-8118
International Dial-In Number: (678) 509-7526
Conference ID: 86597553
Webcast link: http://edge.media-server.com/m/p/y5kgkhmd/lan/en

The webcast replay will be available after the completion of the call on the Investor Relations section of the Company website, www.chromadex.com.

The earnings press release, and its accompanying financial exhibits, will be available on the Investor Relations section of the Company website, www.chromadex.com.

About Non-GAAP Financial Measures

ChromaDex’s non-GAAP financial measures exclude interest, tax, depreciation, amortization and share-based compensation. ChromaDex used these non-GAAP measures when evaluating its financial results as well as for internal resource management, planning and forecasting purposes. These non-GAAP measures should not be viewed in isolation from or as a substitute for ChromaDex’s financial results in accordance with GAAP. A reconciliation of GAAP to non-GAAP measures is attached to this press release.

About ChromaDex:

ChromaDex leverages its complementary business units to discover, acquire, develop and commercialize patented and proprietary ingredient technologies that address the dietary supplement, food, beverage, skin care and pharmaceutical markets. In addition to our ingredient technologies unit, we also have business units focused on natural product fine chemicals (known as “phytochemicals”), chemistry and analytical testing services, and product regulatory and safety consulting (known as Spherix Consulting). As a result of our relationships with leading universities and research institutions, we are able to discover and license early stage, IP-backed ingredient technologies. We then utilize our in-house chemistry, regulatory and safety consulting business units to develop commercially viable ingredients. Our ingredient portfolio is backed with clinical and scientific research, as well as extensive IP protection. Our portfolio of patented ingredient technologies includes NIAGEN® nicotinamide riboside; pTeroPure® pterostilbene; PURENERGY®, a caffeine-pTeroPure® co-crystal; IMMULINA, a spirulina extract; and AnthOrigin, anthocyanins derived from a domestically-produced, water-extracted purple corn. To learn more about ChromaDex, please visit www.ChromaDex.com.

Forward-Looking Statements:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, including statements related to financial representations, future results of animal and human studies of NIAGEN®, the likelihood of studies to result in positive results, publication or new business development with large multi-national companies, whether NR may be an effective therapy in relieving CIPN in humans, whether vitamin B3 may play an important role in helping humans enjoy longer and healthier lives, whether vitamin nicotinamide riboside can help manage the negative effects of obesity and diabetes and the potential metabolic and insulin sensitizing effects of NIAGEN®. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as “expects”, “anticipates”, “intends”, “estimates”, “plans”, “potential”, “possible”, “probable”, “believes”, “seeks”, “may”, “will”, “should”, “could” or the negative of such terms or other similar expressions. More detailed information about ChromaDex and the risk factors that may affect the realization of forward-looking statements is set forth in ChromaDex’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, ChromaDex’s Quarterly Reports on Form 10-Q and other filings submitted by ChromaDex to the SEC, copies of which may be obtained from the SEC’s website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and actual results may differ materially from those suggested by these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement and ChromaDex undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.

ChromaDex Corporation and Subsidiaries
       
Consolidated Statements of Operations  
Years Ended December 31, 2016 and January 2, 2016
       
    2016   2015
             
Sales, net   $    26,811,086   $ 22,014,140  
Cost of sales       14,889,954     13,533,132  
       
Gross profit       11,921,132     8,481,008  
       
Operating expenses:  
Sales and marketing       2,250,589     2,326,788  
Research and development       2,522,768     891,601  
General and administrative       9,393,209     7,416,451  
Operating expenses       14,166,566     10,634,840  
       
Operating loss       (2,245,434 )     (2,153,832 )
       
Nonoperating income (expense):  
Interest income       2,247        3,325    
Interest expense       (371,899 )     (616,033 )  
Loss on debt extinguishment       (313,099 )        
Nonoperating expenses       (682,751 )     (612,708 )  
       
Loss before income taxes       (2,928,185 )     (2,766,540 )  
Provision for income taxes               (4,527 )  
       
Net loss   $    (2,928,185 )   $ (2,771,067 )  
       
       
Basic and Diluted loss per common share   $    (0.08 )   $ (0.08 )  
       
       
Basic and Diluted weighted average common shares outstanding       37,294,321     35,877,341  
 
 See Notes to Consolidated Financial Statements in Item 8 of ChromaDex’s Annual Report on Form 10-K filed with Securities and Exchange Commission on March 16, 2017. 

 

ChromaDex Corporation and Subsidiaries
       
Consolidated Statements of Operations (Unaudited)
Three Months Ended December 31, 2016 and January 2, 2016
       
    Q4 2016 Q4 2015
       
Sales, net   $    5,642,112     $ 4,364,480  
Cost of sales       3,342,316       2,763,418  
       
Gross profit       2,299,796       1,601,062  
       
Operating expenses:  
Sales and marketing       559,851       550,385  
Research and development       534,171       406,406  
General and administrative       3,329,689       1,885,089  
Operating expenses       4,423,711       2,841,880  
       
Operating loss       (2,123,915 )     (1,240,818 )
       
Nonoperating income (expense):  
Interest income       250       986  
Interest expense       (26,588 )     (182,285 )
Nonoperating expenses       (26,338 )     (181,299 )
       
Loss before income taxes       (2,150,253 )     (1,422,117 )
Provision for income taxes       3,500       (4,527 )
       
Net loss   $    (2,146,753 )   $ (1,426,644 )
       
       
Basic and Diluted loss per common share   $    (0.06 )   $ (0.04 )
       
       
Basic and Diluted weighted average common shares outstanding       37,904,534        36,158,895  
 

 

Consolidated Statements of Operations     Effects of Charges associated with Interest, Tax, Depreciation,    Consolidated Statements of Operations, Adjusted EBITDA
 (US GAAP)         Amortization and Share-based Compensation Expense   Excluding Interest, Tax, Depreciation, Amortization and 
                    Share-based Compensation (Non-GAAP Presentation) 
Years Ended December 31, 2016 and January 2, 2016     Years Ended December 31, 2016 and January 2, 2016   Years Ended December 31, 2016 and January 2, 2016
                           
    2016   2015         2016   2015         2016   2015
                           
Sales   $    26,811,086   $ 22,014,140     Sales   $        $     Sales   $    26,811,086   $ 22,014,140
Cost of sales       14,889,954     13,533,132     Cost of sales       (285,515 )   (254,000 )   Cost of sales       14,604,439     13,279,132
                           
Gross profit       11,921,132     8,481,008     Gross profit       285,515     254,000     Gross profit       12,206,647     8,735,008
                           
Operating expenses:         Operating expenses:     Operating expenses:      
Sales and marketing       2,250,589     2,326,788     Sales and marketing                 Sales and marketing       2,250,589     2,326,788
Research and development       2,522,768     891,601     Research and development                 Research and development       2,522,768     891,601
General and administrative       9,393,209     7,416,451     General and administrative       (1,327,588 )   (2,054,161 )   General and administrative       8,065,621     5,362,290
Operating expenses       14,166,566     10,634,840     Operating expenses       (1,327,588 )   (2,054,161 )   Operating expenses       12,838,978     8,580,679
                           
Operating loss        (2,245,434 )   (2,153,832 )   Operating income       1,613,103     2,308,161     Operating income (loss)        (632,331 )   154,329
                           
Nonoperating income (expense):         Nonoperating income:     Nonoperating income (expense):  
Interest income       2,247     3,325     Interest income       (2,247 )   (3,325 )   Interest income            
Interest expense       (371,899 )   (616,033 )   Interest expense       371,899     616,033     Interest expense            
Loss on debt extinguishment       (313,099 )       Loss on debt extinguishment                 Loss on debt extinguishment       (313,099 )  
Nonoperating expense       (682,751 )   (612,708 )   Nonoperating income       369,652     612,708     Nonoperating expense       (313,099 )  
                           
Loss before taxes       (2,928,185 )   (2,766,540 )   Income before taxes       1,982,755     2,920,869     Income (loss) before taxes       (945,430 )   154,329
Provision for taxes             (4,527 )   Provision for taxes             4,527     Provision for taxes            
                           
Net loss   $    (2,928,185 ) $ (2,771,067 )   Effects of adjusted EBITDA   $    1,982,755   $ 2,925,396     Adjusted EBITDA   $    (945,430 ) $ 154,329
                           
Basic and diluted loss per common share   $    (0.08 ) $ (0.08 )   Effects of adjusted EBITDA per common share   $    0.05   $ 0.08     Basic and diluted adjusted EBITDA per common share   $    (0.03 ) $ 0.00
                           
Weighted average common shares outstanding             Weighted average common shares outstanding                 Weighted average common shares outstanding          
Basic and diluted       37,294,321     35,877,341     Basic and diluted       37,294,321     35,877,341     Basic and diluted       37,294,321     35,877,341
                           

 

Consolidated Statements of Operations, Unaudited   Effects of Charges associated with Interest, Tax, Depreciation,  Consolidated Statements of Operations, Adjusted EBITDA
 (US GAAP)         Amortization and Share-based Compensation Expense   Excluding Interest, Tax, Depreciation, Amortization and 
                    Share-based Compensation (Non-GAAP Presentation) 
Three Months Ended December 31, 2016 and January 2, 2016   Three Months Ended December 31, 2016 and January 2, 2016 Three Months Ended December 31, 2016 and January 2, 2016
                           
    Q4 2016 Q4 2015       Q4 2016 Q4 2015       Q4 2016 Q4 2015
                           
Sales   $    5,642,112   $ 4,364,480     Sales   $        $     Sales   $    5,642,112   $ 4,364,480  
Cost of sales       3,342,316     2,763,418     Cost of sales       (77,841 )   (67,152 )   Cost of sales       3,264,475     2,696,266  
                           
Gross profit       2,299,796     1,601,062     Gross profit       77,841     67,152     Gross profit       2,377,637     1,668,214  
                           
Operating expenses:         Operating expenses:         Operating expenses:  
Sales and marketing       559,851     550,385     Sales and marketing                 Sales and marketing       559,851     550,385  
Research and development       534,171     406,406     Research and development                 Research and development       534,171     406,406  
General and administrative       3,329,689     1,885,089     General and administrative       (295,780 )   (342,517 )   General and administrative       3,033,909     1,542,572  
Operating expenses       4,423,711     2,841,880     Operating expenses       (295,780 )   (342,517 )   Operating expenses       4,127,931     2,499,363  
                           
Operating loss        (2,123,915 )   (1,240,818 )   Operating income       373,621     409,669     Operating loss        (1,750,294 )   (831,149 )
                           
Nonoperating income (expense):     Nonoperating income:     Nonoperating income:  
Interest income       250     986     Interest income       (250 )   (986 )   Interest income              
Interest expense       (26,588 )   (182,285 )   Interest expense       26,588     182,285     Interest expense              
Nonoperating expense       (26,338 )   (181,299 )   Nonoperating income       26,338     181,299     Nonoperating expense              
                           
Loss before taxes       (2,150,253 )   (1,422,117 )   Income before taxes       399,959     590,968     Loss before taxes       (1,750,294 )   (831,149 )
Provision for taxes       3,500     (4,527 )   Provision for taxes       (3,500 )   4,527     Provision for taxes              
                           
Net loss   $    (2,146,753 ) $ (1,426,644 )   Effects of adjusted EBITDA   $    396,459   $ 595,495     Adjusted EBITDA   $    (1,750,294 ) $ (831,149 )
                           
Basic and diluted loss per common share   $    (0.06 ) $ (0.04 )   Effects of adjusted EBITDA per common share   $    0.01   $ 0.02     Basic and diluted adjusted EBITDA per common share   $    (0.05 ) $ (0.02 )
                           
Weighted average common shares outstanding             Weighted average common shares outstanding                 Weighted average common shares outstanding              
Basic and diluted       37,904,534     36,158,895     Basic and diluted       37,904,534     36,158,895     Basic and diluted       37,904,534     36,158,895  
                           
CONTACT: ChromaDex Public Relations Contact:
Breah Ostendorf, Director of Marketing
949-537-4103
breaho@chromadex.com

ChromaDex Investor Relations Contact:
Andrew Johnson, Director of Investor Relations
949-419-0288
andrewj@chromadex.com

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