EXHIBIT 99.1
ADVANCED NUTRACEUTICALS, INC. ANNOUNCES RECORD YEAR END RESULTS AND SALES
Denver, CO, January 13, 2005 - Advanced Nutraceuticals, Inc. (OTCBB: ANII),
announced today results for the year ended September 30, 2004. These are the
first annual reported results of the Company's operations following the March
2004 divestiture of its unprofitable subsidiary, ANI Pharmaceuticals, Inc.
("ANIP"). The successful operations and earnings of the Company's operating
subsidiary, Bactolac Pharmaceutical, Inc. ("Bactolac"), continues at record
levels.
Record net sales from continuing operations at Bactolac for the year ended
September 30, 2004 were $17.6 million compared to $12.8 million for the year
ended September 30, 2003, a 38% increase. The Company reported net income from
continuing operations of $4.2 million, or $.84 per common share ($.74 diluted),
compared with net income of $1.9 million, or $.39 per common share ($.39
diluted) for the 2003 period. The 2004 period includes the net effect of a
recorded $1.3 million deferred income tax benefit.
Net loss from discontinued operations of ANIP for the year ended September 30,
2004 was $(1.2) million, or $(.23) per common share ($(.21) diluted), compared
with a net loss of $(5.8) million, or $(1.16) per common share ($(1.13) diluted)
for the year ended September 30, 2003. These amounts include the effect of a
recorded $663,000 deferred tax benefit on the discontinued operations for 2004.
At the March 2004 ANIP sale closing, the Company used the entire net cash
proceeds to reduce the Company's secured indebtedness by approximately $3.0
million.
As previously disclosed, the Company continues to work with The Seidler
Companies Incorporated, a Los Angeles based investment banking firm and NYSE
member, and BCL Partners, a Houston based corporate finance specialist, to
advise and assist the Company on a defined non-exclusive basis with assisting
and evaluating the Company's future strategy and to explore possible options to
enhance and maximize shareholder value. The Company is also considering seeking
a listing for trading of its common shares on either the American Stock Exchange
or NASDAQ.
Dr. Reddy, founder and president of Bactolac, and the largest shareholder of the
Company, said "Bactolac continues to experience expanded customer opportunities,
both domestically and internationally. We are excited to see record sales levels
and believe our commitment to customer service and production efficiencies will
continue to generate growth opportunities."
Condensed Consolidated Statements of Operations
Year Ended September 30,
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(In thousands except per share data) 2004 2003
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Net sales $ 17,639 $ 12,794
Gross profit 6,028 4,690
General and administrative expenses 2,849 2,554
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Operating income 3,179 2,136
Other expenses, net (276) (200)
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Income from continuing
operations before taxes 2,903 1,936
Income tax (expense) benefit 1,332 --
-------- --------
Income from continuing operations 4,235 1,936
Loss from discontinued operations,
net of income tax benefit (1,187) (5,779)
-------- --------
Net income (loss) $ 3,049 $ (3,844)
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Basic income (loss) per share
Continuing operations $ .84 $ .39
Discontinued operations (.23) (1.16)
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$ .61 $ (.77)
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Diluted income (loss) per share
Continuing operations $ .74 $ .38
Discontinued operations (.21) (1.13)
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$ .53 $ (.75)
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Weighted average shares outstanding:
Basic 5,029 4,993
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Diluted 5,729 5,118
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Condensed Consolidated Balance Sheet
(In thousands)
September 30,
2004
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ASSETS
Current assets $ 8,143
Property and equipment, net 1,120
Other assets 8,248
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Total assets $17,511
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 2,161
Long term liabilities 184
Stockholders' equity 15,166
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Total liabilities and stockholders' equity $17,511
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For additional information contact:
Jeff McGonegal (303) 475-3786 (Email: jmcgonegal@anii.cc) or
Gregory Pusey (303) 722-4008 (Email: gpusey@anii.cc)
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This press release includes "forward looking statements" as defined by the
Securities and Exchange Commission (the "SEC"). All statements, other than
statements of historical fact, included in the press release that address
activities, events or developments that the Company believes or anticipates will
or may occur in the future are forward-looking statements. These statements are
based on certain assumptions made based on experience, expected future
developments and other factors the Company believes are appropriate under the
circumstances. Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Company. Investors
are cautioned that any such statements are not guarantees of future performance.
Actual results or developments may differ materially from those projected in the
forward-looking statements as a result of many factors, including adverse
changes in market conditions, fluctuations in sales volumes and problems in
collecting receivables. Furthermore, the Company does not intend (and is not
obligated) to update publicly any forward-looking statements. The contents of
this release should be considered in conjunction with the warnings and
cautionary statements contained in the Company's recent filings with the SEC.
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