Cyanotech Corporation (Nasdaq Capital Market: CYAN), a world leader in microalgae-based, high-value nutrition and health products, announced financial results for the third quarter and first nine months of fiscal year 2021, ended December 31, 2020.
Cyanotech’s Chief Executive Officer, Gerald R. Cysewski, Ph.D., said: “Our current quarter results were affected by the timing of product received by customers from our carriers, as well as lower gross profit due to the sale of higher cost inventory. Our e-commerce sales continue to perform well as consumers’ shopping preferences have shifted.”
Third Quarter Fiscal 2021
Cyanotech reported net sales of $6,985,000 for the third quarter of fiscal 2021 compared to $7,504,000 for the third quarter of fiscal 2020. Overall sales were lower by $519,000, or 6.9%, due to the timing of shipments received by customers. Gross profit was $2,071,000, with gross profit margin of 29.6%, compared to gross profit of $2,877,000 and gross profit margin of 38.3%. Gross profit for the quarter decreased by 8.7 percentage points due to the sale of higher cost astaxanthin inventory from the prior year and current year higher spirulina costs per kilo driven by lower production. Operating loss for the third quarter of fiscal 2021 was ($441,000) compared to operating income of $367,000 in the third quarter of the prior year.
Net income was $827,000, or $0.13 per diluted share, compared to a net income of $171,000, or $0.03 per diluted share, with the increase primarily due to the forgiveness of the loan under the Paycheck Protection Program in the amount of $1,389,000, including accrued interest of $8,000.
Nine Months Fiscal 2021
For the nine months ended December 31, 2020, Cyanotech reported net sales of $22,907,000 compared to $23,265,000 for the same period in fiscal 2020. Gross profit was $8,347,000, with gross profit margin of 36.4%, compared to gross profit of $9,615,000 and gross profit margin of 41.3%. Operating income was $109,000 compared to $825,000 in the prior year. Net income was $1,121,000, or $0.18 per diluted share, compared to a net income of $266,000, or $0.04 per diluted share.
Trailing Twelve Months
For the trailing twelve months ended December 31, 2020, compared to the trailing twelve months ended December 31, 2019, net sales were $31,541,000 compared to $29,323,000. Gross profit was $11,431,000, with gross profit margin of 36.2%, compared to $11,844,000 and 40.4%. Net income was $1,242,000, or $0.20 per diluted share, compared to net loss of ($1,297,000), or ($0.22) per diluted share.
Please review the Company’s Form 10-Q for the period ended December 31, 2020 for more detailed information.
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— Cyanotech will host a virtual broadcast at 8:00 PM EST on Friday, February 12, 2021 to respond to questions about its operating results and other topics of interest. Interested parties are asked to submit questions to questions@cyanotech.com before 12 p.m. (noon) EST on Friday, February 12, 2021. The Company will respond only to relevant questions relating to the Company’s third quarter fiscal 2021 financial performance and will not be accepting any questions or comments during the broadcast.
To join the broadcast, please browse http://cyanotech.com/meet approximately five minutes prior to the start time.
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About Cyanotech — Cyanotech Corporation, a world leader in microalgae technology for more than 30 years, produces BioAstin® Hawaiian Astaxanthin® and Hawaiian Spirulina Pacifica®. These all-natural, dietary ingredients and supplements leverage our experience and reputation for quality, building nutritional brands which promote health and well-being. The Company’s mission is to fulfill the promise of whole health through Hawaiian microalgae. Cyanotech’s BioAstin® offers superior antioxidant activity which supports skin, eye and joint health, as well as recovery from exercise*. Cyanotech’s Spirulina products offer nutrition that supports cardiovascular health and immunity*. All Cyanotech products are produced from microalgae grown at our 96-acre facility in Kona, Hawaii using patented and proprietary technology and are Generally Recognized as Safe (“GRAS”) for use in food products. Cyanotech sells its products direct to consumers at retail locations in the United States and online at www.nutrex-hawaii.com and also distributes to dietary supplement, nutraceutical and cosmeceutical manufacturers and marketers. The Company is regulated by the Food and Drug Administration. Visit www.cyanotech.com for more information.
*These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.
“Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995 Besides statements of present fact and historical fact, this press release may contain forward-looking statements. Forward-looking statements relate to the future and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by forward-looking statements. We caution against relying on forward-looking statements. Important factors that could change actual, future results include: changes in sales levels to our largest customers, weather patterns in Hawaii, production problems, risks associated with new products, foreign exchange fluctuations, and availability of financing, as well as national and global political, economic, business, competitive, market and regulatory conditions. Other factors are more fully detailed in the Company’s annual Form 10-K filings with the Securities and Exchange Commission.
Financial Tables Follow: The following tables do not contain footnotes or other information contained in the Company’s Form 10-Q for the third quarter fiscal 2021 ended December 31, 2020, which can be found on the Cyanotech website (www.cyanotech.com) under Investors>Investor Filings upon filing. As such, the following Financial Tables are provided only as a guide and other factors are more fully detailed in the Company’s annual Form 10-K filings with the Securities and Exchange Commission.
| CYANOTECH CORPORATION | |||||||||
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| December 31, |
| March 31, | |||||
| ASSETS |
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| Current assets: |
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| Cash |
| $ | 3,322 |
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| $ | 2,417 |
| |
| Accounts receivable, net of allowance for doubtful accounts of $31 at December 31, 2020 and $13 at March 31, 2020 |
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| 1,682 |
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| 2,154 |
| |
| Inventories, net |
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| 9,589 |
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| 9,653 |
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| Prepaid expenses and other current assets |
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| 430 |
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| 504 |
| |
| Total current assets |
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| 15,023 |
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| 14,728 |
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| Equipment and leasehold improvements, net |
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| 12,363 |
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| 13,042 |
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| Operating lease right-of-use assets, net |
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| 3,598 |
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| 3,834 |
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| Other assets |
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| 129 |
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| 183 |
| |
| Total assets |
| $ | 31,113 |
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| $ | 31,787 |
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
| $ | 1,550 |
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| $ | 2,137 |
| |
| Accrued expenses |
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| 701 |
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| 849 |
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| Customer deposits |
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| 116 |
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| 327 |
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| Operating lease obligations, current portion |
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| 338 |
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| 319 |
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| Short-term contract obligation |
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| — |
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| 38 |
| |
| Line of credit |
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| 1,750 |
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| 2,000 |
| |
| Current maturities of long-term debt |
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| 2,204 |
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| 689 |
| |
| Total current liabilities |
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| 6,659 |
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| 6,359 |
| |
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| Long-term debt, less current maturities |
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| 3,998 |
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| 6,009 |
| |
| Long-term operating lease obligations |
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| 3,265 |
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| 3,519 |
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| Other long-term liabilities |
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| 34 |
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| 54 |
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| Total liabilities |
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| 13,956 |
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| 15,941 |
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| Commitments and contingencies |
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| Stockholders’ equity: |
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| Preferred stock of $0.01 par value, authorized 10,000,000 shares; no shares issued and outstanding |
|
| — |
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| — |
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| Common stock of $0.02 par value, authorized 50,000,000 shares; issued and outstanding 6,097,073 shares at December 31, 2020 and |
|
| 122 |
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| 120 |
| |
| Additional paid-in capital |
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| 33,182 |
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| 32,994 |
| |
| Accumulated deficit |
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| (16,147 | ) |
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| (17,268 | ) | |
| Total stockholders’ equity |
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| 17,157 |
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| 15,846 |
| |
| Total liabilities and stockholders’ equity |
| $ | 31,113 |
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| $ | 31,787 |
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| CYANOTECH CORPORATION | |||||||||||||||||
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| Three Months Ended |
| Nine Months Ended | |||||||||||||
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| 2020 |
| 2019 |
| 2020 |
| 2019 | |||||||||
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| Net sales |
| $ | 6,985 |
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| $ | 7,504 |
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| $ | 22,907 |
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| $ | 23,265 |
| |
| Cost of sales |
|
| 4,914 |
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|
| 4,627 |
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|
| 14,560 |
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|
| 13,650 |
| |
| Gross profit |
|
| 2,071 |
|
|
| 2,877 |
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|
| 8,347 |
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|
| 9,615 |
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| Operating expenses: |
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| General and administrative |
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| 1,001 |
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| 958 |
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| 3,801 |
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| 4,146 |
| |
| Sales and marketing |
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| 1,300 |
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|
| 1,406 |
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|
| 3,918 |
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| 4,157 |
| |
| Research and development |
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| 211 |
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| 146 |
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| 519 |
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|
| 487 |
| |
| Total operating expenses |
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| 2,512 |
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|
| 2,510 |
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|
| 8,238 |
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|
| 8,790 |
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| (Loss) income from operations |
|
| (441 | ) |
|
| 367 |
|
| 109 |
|
| 825 | ||||
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|
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|
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|
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| Interest expense, net |
|
| (123 | ) |
|
| (164 | ) |
|
| (374 | ) |
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| (530 | ) | |
| Gain on extinguishment of debt |
|
| 1,389 |
|
| — |
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| 1,389 |
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| — | |||||
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| Income before income taxes |
|
| 825 |
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| 203 |
|
| 1,124 |
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| 295 | |||||
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| Income tax (benefit) expense |
|
| (2 | ) |
|
| 32 |
|
| 3 |
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| 29 | ||||
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| Net income |
| $ | 827 |
| $ | 171 |
| $ | 1,121 |
| $ | 266 | |||||
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| Net income per share: |
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| Basic |
| $ | 0.14 |
| $ | 0.03 |
| $ | 0.18 |
| $ | 0.04 | |||||
| Diluted |
| $ | 0.13 |
| $ | 0.03 |
| $ | 0.18 |
| $ | 0.04 | |||||
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| Shares used in calculation of net income per share: |
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| Basic |
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| 6,097 |
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|
| 5,957 |
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|
| 6,060 |
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|
| 5,946 |
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| Diluted |
|
| 6,222 |
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|
| 5,962 |
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|
| 6,169 |
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|
| 5,949 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20210211005217/en/
Source: Cyanotech Corporation
View this news release online at:
http://www.businesswire.com/news/home/20210211005217/en
