ProPhase Labs Reports Financial Results for the Year Ended December 31, 2019

DOYLESTOWN, Pennsylvania, March 25, 2020 (GLOBE NEWSWIRE) -- 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 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.

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 CEO
ProPhase 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 stockholders’ equity $11,231  $16,504 

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