Nutrition 21, Inc. (NXXI), a producer of a broad portfolio of nutritional supplements, reported fourth quarter 2008 financial results this morning. Revenues were $11.0 million, a 5% decrease year-over-year and a 2% increase sequentially. EBITDA of $0.8 million represents the first positive EBITDA quarter since Q2 2005. Net loss was $0.9 million, or 1 cent per diluted share, compared to a net loss of $8.2 million, or 13 cents per diluted share, for the same period a year ago. One analyst expected the company to report a loss of 7 cents per share on $11.1 million in revenues.
“The dramatic improvement in the operating results for the quarter reflects the considerable traction that is ongoing in the execution of our new business plan,” said Michael Zeher, Nutrition 21’s President and Chief Executive Officer. “We have struck a new direction in this Company in recent months and we are beginning to benefit from a more fiscally responsible business model. By re-branding our products under the respected Iceland Health name we no longer need to incur elevated media expenses to build awareness and to support multiple brands. As we continue to launch new products in the most cost-effective manner possible — through our direct response unit — we expect to leverage the benefits of lower expenses and drive revenues toward consistent profitability.
“Looking forward, there is still much to be done, obstacles still to be overcome, and opportunities still to be realized. I am happy to report that, with the foundation for growth that the Company has laid, the management team is ready to move the business to the next level. For the upcoming fiscal year we expect that revenues will be in the same general range as in fiscal 2008, and we also expect that every quarter will show positive EBITDA.”
Shares of NXXI closed at $0.41 yesterday and have traded in a range of $0.25 – $1.19 during the past year. With 63 million shares outstanding, NXXI has a market cap of $26 million. Shareholders’ equity is $7.4 million.
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