Exhibit 99.1
FOR IMMEDIATE RELEASE
Contacts: | Medical Nutrition USA, Inc. | Investor Relations | ||||||
Alan Levy | Lena Cati | |||||||
Vice President/Finance | The Equity Group | |||||||
Chief Financial Officer | 212-836-9611 | |||||||
800-221-0308 | lcati@equityny.com | |||||||
alevy@mnidirect.net |
Medical Nutrition USA Inc. Announces 31% Unit Sales Increase in |
Englewood, NJ – June 11, 2008- 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.
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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 | ||||
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 | |||||
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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