ProPhase Labs Reports Financial Results for the Three Months Ended March 31, 2020
Rhea-AI Summary
ProPhase Labs, Inc. (NASDAQ: PRPH) reported Q1 2020 net sales of $1.9 million, down from $2.3 million in Q1 2019. The net loss narrowed to $809,000 or ($0.07) per share compared to a net loss of $1.0 million or ($0.09) per share the previous year. Contributing factors included a $430,000 decline in sales due to reduced customer demand, offset by decreased costs in administration ($206,000), marketing ($96,000), and R&D ($35,000). Additionally, the Company released $4.8 million from escrow following a resolved claim with Mylan on May 4, 2020.
Positive
- Narrowed net loss to $809,000 from $1.0 million year-over-year.
- Cost reductions in administration ($206,000), marketing ($96,000), and R&D ($35,000).
- Released $4.8 million from escrow, enhancing liquidity.
Negative
- Net sales decreased by $430,000 due to lower demand.
News Market Reaction – PRPH
On the day this news was published, PRPH gained 4.88%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
DOYLESTOWN, Pennsylvania, May 12, 2020 (GLOBE NEWSWIRE) -- ProPhase Labs, Inc. (NASDAQ: PRPH, www.ProPhaseLabs.com) today announced net sales of
The Company incurred a net loss for the three months ended March 31, 2020 of
The financial results for the first quarter of 2020 compared to the first quarter of 2019 principally reflect the net effect of a decrease in net sales of
In addition on May 4, 2020, the Company resolved the final pending claim against the Company’s escrow account with Mylan and as a result the remaining funds, totaling
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 Supplements® 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.
Investor Contact
Ted Karkus, Chairman and CEO
ProPhase Labs, Inc.
(267) 880-1111
ProPhase Labs, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
| For the Three Months Ended | ||||||||
| March 31, 2020 | March 31, 2019 | |||||||
| Net sales | $ | 1,888 | $ | 2,318 | ||||
| Cost of sales | $ | 1,473 | $ | 1,798 | ||||
| Gross profit | 415 | 520 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 170 | 266 | ||||||
| Administration | 998 | 1,204 | ||||||
| Research and development | 59 | 94 | ||||||
| Total operating expenses | 1,227 | 1,564 | ||||||
| Loss from operations | (812 | ) | (1,044 | ) | ||||
| Interest income, net | 3 | 31 | ||||||
| Net loss | $ | (809 | ) | $ | (1,013 | ) | ||
| Other comprehensive income: | ||||||||
| Unrealized gain on marketable debt securities | 11 | 15 | ||||||
| Total comprehensive loss | $ | (798 | ) | $ | (998 | ) | ||
| Basic and diluted loss per share: | $ | (0.07 | ) | $ | (0.09 | ) | ||
| Weighted average common shares outstanding: | ||||||||
| Basic and diluted | 11,582 | 11,557 |
ProPhase Labs, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
| March 31, 2020 | December 31, 2019 | |||||||
| (audited) | ||||||||
| Cash and cash equivalents | $ | 697 | $ | 434 | ||||
| Marketable debt securities, available for sale | $ | 840 | $ | 926 | ||||
| Accounts receivable, net | $ | 1,213 | $ | 2,010 | ||||
| Inventory | $ | 1,703 | $ | 1,459 | ||||
| Total current assets | $ | 9,505 | $ | 9,945 | ||||
| Total assets | $ | 11,868 | $ | 12,274 | ||||
| Total current liabilities | $ | 1,125 | $ | 933 | ||||
| Total non-current liabilities | $ | 112 | $ | 110 | ||||
| Total stockholders' equity | $ | 10,631 | $ | 11,231 |