Exhibit 99.1
ProPhase Labs Reports Financial Results
for the Three Months Ended March 31, 2020
DOYLESTOWN, Pennsylvania, May 12, 2020 – ProPhase Labs, Inc. (NASDAQ: PRPH, www.ProPhaseLabs.com) today announced net sales of $1.9 million for the three months ended March 31, 2020, compared to net sales of $2.3 million for the three months ended March 31, 2019.
The Company incurred a net loss for the three months ended March 31, 2020 of $809,000, or ($0.07) per share, compared to a net loss of $1.0 million or ($0.09) per share, for the three months ended March 31, 2019.
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 $430,000 due to a decrease in demand of third party customer orders, offset by (i) a decrease in administrative costs of $206,000 due principally to a decrease in professional fees, (ii) a decrease in sales and marketing expenses of $96,000 as a consequence of a reduction in marketing initiatives and (iii) a decrease in research and development expenditures of $35,000.
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 $4.8 million, were released from the escrow account to the Company on May 7, 2020.
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 | ||||