ProPhase Labs Reports Financial Results for the Year Ended December 31, 2019
March 25 2020 - 8:36AM
ProPhase Labs, Inc. (NASDAQ: PRPH, www.ProPhaseLabs.com) today
announced its net sales were $9.9 million for the year ended
December 31, 2019, as compared to net sales of $13.1 million for
the year ended December 31, 2018.
The Company incurred a net loss from continuing
operations for the year ended December 31, 2019 of $3.1 million, or
($0.27) per share, as compared to a loss of $1.6 million, or
($0.14) per share, for the year ended December 31, 2018. The
Company incurred loss from discontinued operations for the year
ended December 31, 2019 of $40,000, or ($0.00) per share, as
compared to loss of $170,000, or ($0.01) per share, for the year
ended December 31, 2018. The Company incurred net loss for the year
ended December 31, 2019, of $3.1 million, or ($0.27) per share, as
compared to a loss of $1.7 million, or ($0.15) per share, for the
year ended December 31, 2018.
The financial results for the year ended
December 31, 2019 as compared to the year ended December 31, 2018
principally reflect the net effect of (i) a decrease in net sales
of $3.2 million principally due to a decrease in demand of third
party customer orders, (ii) a decrease in administration costs of
$430,000 due principally to a decrease in professional and legal
costs, (iii) a decrease in sales and marketing expenses of $65,000
as a consequence of a reduction in marketing initiatives and (iv) a
decrease in research and development expenditures of $66,000.
About the Company
We are a manufacturing and marketing company
with deep experience with OTC consumer healthcare products and
dietary supplements. We are engaged in the research, development,
manufacture, distribution, marketing and sale of OTC consumer
healthcare products and dietary supplements in the United States.
This includes the development and marketing of dietary supplements
under the TK SupplementsĀ® brand.
In addition, the Company also continues to
actively pursue acquisition opportunities for other companies,
technologies and products inside and outside the consumer products
industry. For more information visit us at
www.ProPhaseLabs.com.
Forward Looking Statements
Except for the historical information contained
herein, this document contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements relating to potential acquisition
opportunities. Management believes that these forward-looking
statements are reasonable as and when made. However, such
forward-looking statements involve known and unknown risks,
uncertainties, and other factors that may cause actual results to
differ materially from those projected in the forward-looking
statements. These risks and uncertainties include, but are not
limited to: the difficulty of predicting the acceptance and demand
for our products, the impact of competitive products and pricing,
costs involved in the manufacture and marketing of products, the
timely development and launch of new products, and the risk factors
listed from time to time in our Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and any subsequent SEC filings.
Investor Contact
Ted Karkus, Chairman and CEOProPhase Labs,
Inc.(267) 880-1111
ProPhase Labs, Inc. and Subsidiaries
Condensed Consolidated Statements of
Operations
(in thousands, except per share
amounts)
|
|
For the Years Ended |
|
|
|
December 31, 2019 |
|
|
December 31, 2018 |
|
Net sales |
|
$ |
9,876 |
|
|
$ |
13,126 |
|
Cost of sales |
|
|
7,261 |
|
|
|
8,345 |
|
Gross profit |
|
|
2,615 |
|
|
|
4,781 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
1,042 |
|
|
|
1,107 |
|
Administration |
|
|
4,480 |
|
|
|
4,910 |
|
Research and development |
|
|
332 |
|
|
|
398 |
|
Total operating expenses |
|
|
5,854 |
|
|
|
6,415 |
|
Loss from operations |
|
|
(3,239 |
) |
|
|
(1,634 |
) |
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
133 |
|
|
|
167 |
|
Loss from continuing
operations before income taxes |
|
|
(3,106 |
) |
|
|
(1,467 |
) |
Income tax liability from
continuing operations |
|
|
- |
|
|
|
(103 |
) |
Loss from continuing
operations |
|
|
(3,106 |
) |
|
|
(1,570 |
) |
|
|
|
|
|
|
|
|
|
Discontinued operations: |
|
|
|
|
|
|
|
|
Loss on discontinued
operations, net of taxes |
|
|
(40 |
) |
|
|
(170 |
) |
Loss from discontinued
operations |
|
|
(40 |
) |
|
|
(170 |
) |
Net loss |
|
$ |
(3,146 |
) |
|
$ |
(1,740 |
) |
|
|
|
|
|
|
|
|
|
Other comprehensive income
(loss): |
|
|
|
|
|
|
|
|
Unrealized gain on marketable
debt securities |
|
|
22 |
|
|
|
54 |
|
Total comprehensive loss |
|
$ |
(3,124 |
) |
|
$ |
(1,686 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted loss per
share: |
|
|
|
|
|
|
|
|
Loss from continuing operations |
|
$ |
(0.27 |
) |
|
$ |
(0.14 |
) |
Loss from discontinued operations |
|
|
- |
|
|
|
(0.01 |
) |
Net loss |
|
$ |
(0.27 |
) |
|
$ |
(0.15 |
) |
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
11,564 |
|
|
|
11,396 |
|
ProPhase Labs, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
|
|
December 31 2019 |
|
|
December 31 2018 |
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
434 |
|
|
$ |
1,554 |
|
Marketable debt securites,
available for sale |
|
$ |
926 |
|
|
$ |
6,687 |
|
Accounts receivable, net |
|
$ |
2,010 |
|
|
$ |
2,968 |
|
Inventory |
|
$ |
1,459 |
|
|
$ |
1,903 |
|
Total current assets |
|
$ |
9,945 |
|
|
$ |
18,238 |
|
Total assets |
|
$ |
12,274 |
|
|
$ |
20,737 |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
$ |
933 |
|
|
$ |
4,233 |
|
Total non-current
liabilities |
|
$ |
110 |
|
|
$ |
- |
|
Total stockholdersā
equity |
|
$ |
11,231 |
|
|
$ |
16,504 |
|
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