ProPhase Labs Reports Financial Results for the Three and Six Months Ended June 30, 2013

ProPhase Labs Reports Financial Results for the Three and Six Months Ended June 
30, 2013 
DOYLESTOWN, PA -- (Marketwired) -- 08/13/13 --  ProPhase Labs, Inc.
(NASDAQ: PRPH) (www.ProPhaseLabs.com) today reported its net sales
were $1.9 million for each of the three months ended June 30, 2013
and 2012. The Company realized a net loss for the three months ended
June 30, 2013, of $1.7 million, or ($0.11) per share, compared to a
net loss of $1.9 million, or ($0.13) per share, for the three months
ended June 30, 2012.  
Results for the second quarter of 2013 compared to the second quarter
of 2012 principally reflect the net effect of (i) an increase in
gross profit of $103,000, (ii) a decrease in research and development
costs of $313,000, (iii) a decrease in sales and marketing expenses
of $111,000, offset by (iv) an increase of $315,000 in administration
costs due principally to an increase in legal and professional costs. 
The Company's sales are derived principally from its over-the-counter
("OTC") cold remedy products. As a consequence, a significant portion
of our business is highly seasonal, which causes major variations in
operating results from quarter to quarter. The three months ended
June 30 is historically our lowest sales period due to the
seasonality of our business. 
The Company generated net sales for the six months ended June 30,
2013 of $9.5 million, an increase of $1.6 million, or 19.8%, as
compared to $7.9 million for the six months ended June 30, 2012. The
Company incurred a net loss for the six months ended June 30, 2013,
of $1.4 million, or ($0.09) per share, compared to a net loss of $2.6
million, or ($0.18) per share, for the six months ended June 30,
2012. 
Results for the six months ended June 30, 2013 compared to the six
months ended June 30, 2012 principally reflect the net effect of (i)
an increase in net sales of $1.6 million, (ii) a decrease in research
and development costs of $486,000, offset by (iii) an increase in
sales and marketing expense of $75,000, (iv) an increase of $321,000
in administration costs due principally to an increase in legal and
professional costs.  
The revenue growth we realized for the first six months of fiscal
2013, as compared to the first six months of 2012, was in part
attributable to the success of our marketing efforts to increase
consumer awareness to the benefits of Cold-EEZE(R) Cold Remedy
products and generate increased demand for Cold-EEZE(R). In addition,
the timing, stocking and ultimate level of demand of retailer
purchases of our OTC cold remedy products are affected by the change
in the timing and the comparative severity of the respective cold
season as well as the effects of the timing and scope of our
marketing and promotional efforts to increase consumer awareness and
to influence purchaser decisions.  
Ted Karkus, ProPhase Labs' Chairman and CEO, stated, "We continue to
make progress in the expansion of our Cold-EEZE(R) Cold Remedy brand
as shown by our year to date sales growth. Through the introduction
of new Cold-EEZE(R) products, we are efficiently leveraging our
marketing dollars and leveraging our distribution platform. As
previously articulated, our next generation of Cold-EEZE(R) products
(which we began shipping in July 2013) will not be new flavors of
lozenges but rather Cold-EEZE(R) products in new delivery forms that
shorten the duration of the common cold as well as provide additional
health benefits. As evidenced in our most recent financial results,
we continue to make excellent progress toward our long term strategy
of increasing the value of the Cold-EEZE(R) Cold Remedy brand and the
value of our Company to the benefit of all shareholders." 
About ProPhase Labs 
ProPhase Labs is a diversified natural health medical science
company. It is a leading marketer of the Cold-EEZE(R) Cold Remedy
brand as well as other cold relief products. Cold-EEZE(R) zinc
gluconate lozenges are clinically proven to significantly reduce the
severity and duration of the common cold. Cold-EEZE(R) customers
include leading national retailers, chain food, drug and mass
merchandise stores, wholesalers and distributors, as well as
independent pharmacies. ProPhase Labs has several wholly owned
subsidiaries including a manufacturing unit, which consists of an FDA
registered facility to manufacture Cold-EEZE(R) lozenges and fulfill
other contract manufacturing opportunities. ProPhase also owns 50% of
Phusion Laboratories, LLC ("Phusion"). Phusion licenses a
revolutionary proprietary technology that has the potential to
improve the delivery and/or efficacy of many active ingredients or
compounds. Phusion will formulate and test products to exploit market
opportunities within ProPhase's robust over-the-counter distribution
channels. For more information visit us at www.ProPhaseLabs.com.  
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. These statements involve a
number of risks and uncertainties, including the difficulty of the
acceptance and demand for our products, the impact of competitive
products and pricing, 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. 


 
                                                                            
                    ProPhase Labs, Inc. and Subsidiaries                    
              Condensed Consolidated Statements of Operations               
                  (in thousands, except per share amounts)                  
                                (unaudited)                                 
                                                                            
                                  Three Months Ended     Six Months Ended   
                                 --------------------  -------------------- 
                                  June 30,   June 30,   June 30,   June 30, 
                                    2013       2012       2013       2012   
                                 ---------  ---------  ---------  --------- 
                                                                            
Net sales                        $   1,939  $   1,894  $   9,481  $   7,912 
Cost of sales                        1,011      1,069      3,214      2,747 
                                 ---------  ---------  ---------  --------- 
Gross profit                           928        825      6,267      5,165 
                                 ---------  ---------  ---------  --------- 
                                                                            
Operating expenses:                                                         
  Sales and marketing                  709        820      4,072      3,997 
  Administration                     1,723      1,408      3,221      2,900 
  Research and development             216        529        404        890 
                                 ---------  ---------  ---------  --------- 
                                     2,648      2,757      7,697      7,787 
                                 ---------  ---------  ---------  --------- 
                                                                            
Loss from operations                (1,720)    (1,932)    (1,430)    (2,622)
                                                                            
Interest and other income                1          2          1          5 
                                 ---------  ---------  ---------  --------- 
Loss before income taxes            (1,719)    (1,930)    (1,429)    (2,617)
                                                                            
Income tax (benefit) (Note 5)            -          -          -          - 
                                                                            
                                 ---------  ---------  ---------  --------- 
Net loss                         $  (1,719) $  (1,930) $  (1,429) $  (2,617)
                                 =========  =========  =========  ========= 
                                                                            
Basic and diluted loss per                                                  
 share:                                                                     
                                 ---------  ---------  ---------  --------- 
  Net loss                       $   (0.11) $   (0.13) $   (0.09) $   (0.18)
                                 =========  =========  =========  ========= 
                                                                            
Weighted average common shares                                              
 outstanding:                                                               
  Basic and diluted                 15,845     14,831     15,799     14,811 
                                 =========  =========  =========  ========= 
                                                                            
                                                                            

 
                                                                            
                    ProPhase Labs, Inc. and Subsidiaries                    
                  Condensed Consolidated Balance Sheet Data                 
                               (in thousands)                               
                                 (unaudited)                                
                                                                            
                                                     June 30,   December 31,
                                                       2013         2012    
                                                   ------------ ------------
                                                                            
Cash and cash equivalents                          $      4,058 $        572
Accounts receivable                                $      1,128 $      5,409
Inventory                                          $      3,289 $      2,051
Total current assets                               $      8,995 $     10,719
Total assets                                       $     15,067 $     16,661
                                                                            
Total current liabilities                          $      4,471 $      4,910
Other long term obligations                        $        300 $        300
Total stockholders' equity                         $     10,296 $     11,451

  
Press Only Contact 
Laura Maxey 
5W Public Relations 
Tel: (212) 452-6400 
lmaxey@5wpr.com  
Investor Contact
Ted Karkus
Chairman and CEO
ProPhase Labs, Inc. 
(215) 345-0919 x 0 
 
 
Press spacebar to pause and continue. Press esc to stop.