ProPhase Labs Reports Financial Results for the Three and Six Months Ended June 30, 2020

DOYLESTOWN, Pennsylvania, Aug. 11, 2020 (GLOBE NEWSWIRE) -- ProPhase Labs, Inc. (NASDAQ: PRPH, www.ProPhaseLabs.com) today announced net sales of $3.6 million for the three months ended June 30, 2020, compared to net sales of $1.7 million for the three months ended June 30, 2019. The Company recognized net income for the three months ended June 30, 2020 of $70,000, or $0.01 per share, compared to a net loss of $1.2 million, or ($0.11) per share, for the three months ended June 30, 2019.

Results for the second quarter of 2020 compared to the second quarter of 2019 principally reflect the net effect of (i) an increase in net sales of $1.9 million due to an increase in third party customer orders, (ii) a decrease in administrative costs of $62,000 due principally to a decrease in professional fees, (iii) a decrease in sales and marketing expenses of $217,000 resulting from a reduction in marketing initiatives and (iv) a decrease in research and development expenditures of $30,000.

The Company generated net sales for the six months ended June 30, 2020 of $5.5 million, as compared to $4.0 million for the six months ended June 30, 2019. The Company incurred a net loss for the six months ended June 30, 2020 of $0.7 million, or (0.06) per share, as compared to a net loss of 2.3 million, or (0.19) per share, for the six months ended June 30, 2019.

Results for the six months ended June 30, 2020 as compared to the six months ended June 30, 2019 principally reflect the net effect of (i) an increase in net sales of $1.5 million due to an increase in third party customer orders, (ii) a decrease in administrative costs of $268,000 due principally to a decrease in professional fees, (iii) a decrease in sales and marketing expenses of $313,000 resulting from a reduction in marketing initiatives and (iv) a decrease in research and development expenditures of $65,000.

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.

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  For the Six Months Ended 
  June 30, 2020  June 30, 2019  June 30, 2020  June 30 2019 
Net sales $3,623  $1,651  $5,511  $3,969 
Cost of sales  2,344   1,390   3,817   3,188 
Gross profit  1,279   261   1,694   781 
                 
Operating expenses:                
Sales and marketing  125   342   295   608 
Administration  1,030   1,092   2,028   2,296 
Research and development  65   95   124   189 
Total operating expenses  1,220   1,529   2,447   3,093 
Income (loss) from operations  59   (1,268)  (753)  (2,312)
                 
Interest income, net  11   30   14   61 
Net income (loss) $70  $(1,238) $(739) $(2,251)
                 
Other comprehensive income:                
Unrealized gain (loss) on marketable debt securities  (5)  8   6   23 
Total comprehensive income (loss) $65  $(1,230) $(733) $(2,228)
                 
Basic earnings (loss) per share: $0.01  $(0.11) $(0.06) $(0.19)
Diluted earnings (loss) per share: $0.01  $(0.11) $(0.06) $(0.19)
                 
Weighted average common shares outstanding:                
Basic  11,592   11,560   11,587   11,558 
Diluted  11,618   11,560   11,587   11,558 


ProPhase Labs, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

  
  June 30,  December 31, 
  2020  2019 
     (audited) 
       
Cash and cash equivalents $2,537  $434 
Marketable debt securities, available for sale $3,339  $926 
Accounts receivable, net $1,930  $2,010 
Inventory $2,047  $1,459 
Total current assets $10,242  $9,945 
Total assets $12,375  $12,274 
         
Total current liabilities $1,395  $933 
Total non-current liabilities $86  $110 
Total stockholders’ equity $10,894  $11,231 

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