DENVER, Jan. 7 /PRNewswire/ -- Advanced Nutraceuticals, Inc. (Nasdaq: ANII), announced today financial results for the year ended September 30, 2001 and receipt of a $250,000 loan.
Net sales for the year ended September 30, 2001 increased to $17.6 million, a $1.5 million increase over the 2000 sales of $16.1 million. The acquisitions of the continuing segments of the business were completed during the first quarter of the year ended September 30, 2000. Had the acquisitions been consummated, as of October 1, 1999, the fiscal year 2000 pro forma sales would have totaled $18.8 million. ANI's Bactolac Pharmaceutical, Inc. ("Bactolac") subsidiary is a private label contract manufacturer of vitamins and supplements located in Hauppauge, New York. The Company's ANI Pharmaceuticals, Inc. ("ANIP") subsidiary is a contract and private label manufacturer of over-the-counter liquid and powder pharmaceutical products, primarily liquid stomach remedies, located in Gulfport, Mississippi. The reduction in the above pro forma sales comparison was a result of decreased sales at the Company's Gulfport, Mississippi location.
Bactolac under the direction of its founder Dr. Pailla Reddy, continues to show solid growth and profits. During the 2000 fiscal year, Bactolac moved into a new state of the art facility. Capital investments in 2001 for high-tech lab equipment, high speed manufacturing equipment, in-house thin film coating equipment and flexible packaging equipment have resulted in faster product turn around times and greater control of the quality and production processes. Such investments are also anticipated to enhance Bactolac's profitability in 2002 through expanded revenue opportunities and reduced reliance on out-sourced services.
During the fourth quarter of the year ended September 30, 2001, ANIP hired a highly qualified sales person as Vice President -- Sales and Marketing. George Chin has over 24 years of industry experience and through his efforts ANIP has recently added several customers, such as Walgreens, K-Mart, Dollar General, Winn Dixie, Kroger and Shurfine, and is in talks with a number of large recognized retailers. The impact on revenues from adding these new customers is anticipated to be reflected in the second quarter of the fiscal year ending September 30, 2002
As previously announced, the Company completed the sale of its NFLI subsidiary during June 2001. As a result of the completion of this sale, the historical operations of NFLI are shown as discontinued operations within the Company's consolidated financial statements. The NFLI discontinued operations generated income of $1.1 million, $.56 per share, during the year ended September 30, 2001, compared with a net loss of $(4.0) million, $(2.06) per share, during the year ended September 30, 2000. The 2001 results included the benefits of approximately $1.0 million in tax refunds and benefits associated with the discontinued operations.
The Company reported a net loss from continuing operations of approximately $(1.1) million, $(.52) basic and $(.51) diluted per share, compared to a net loss of approximately $(34,000), $(.02) per share, for the year ended September 30, 2000. In 2001, ANI also reported an extraordinary gain from the settlement of outstanding notes payable, which resulted in income of approximately $73,000, $.02 per share, net of income taxes of $48,000.
Consolidated net income for the year ended September 30, 2001 totaled $165,000, $.08 per share, compared to a consolidated net loss of $(4.1) million, $(2.08) per share, for the year ended September 30, 2000.
ANI additionally announced today that it has received a $250,000, subordinated 7% loan from a company, Cambridge Holdings, Ltd., that is affiliated with ANI's chairman, Greg Pusey. The note matures in one year, is convertible at the option of the holder into shares of ANI common stock at approximately $1.00 per share, and also includes a warrant to allow the holder to acquire 50,000 shares of ANI common stock at approximately $1.00 per share, through June 2004. ANI anticipates using the proceeds of the loan as additional working capital.