LONG BEACH, Calif. and LONGMONT, Colo., Nov. 14, 2002 (PRIMEZONE) -- Hauser, Inc. (OTCBB:HAUS) today reported financial results for its fiscal 2003 second quarter and six months ended September 30, 2002, reflecting a second consecutive quarter of operating profitability. During the 2003 fiscal second quarter, the company sold its Shuster Laboratories division. Accordingly, the financial information presented in this news release reports the sale of that division as discontinued operations for all periods presented.
For the fiscal 2003 second quarter, total revenues were $13.8 million compared with $11.1 million in the corresponding year-earlier quarter. Income from operations was $896,000, contrasted to a loss from operations of $504,000 in the same quarter a year ago. Income from continuing operations before income tax expense and discontinued operations totaled $399,000, contrasted to a loss a year ago of $864,000. After reflecting a tax accounting treatment related to the sale of Shuster Laboratories and a loss from discontinued operations, net loss totaled $271,000, or $0.04 per share, reduced from net loss of $911,000, or $0.16 per share, in the second quarter last year.
For the first sixth months of fiscal 2003, total revenues were $27.2 million compared with $24.1 million in the corresponding year-earlier period. Income from operations was $1.1 million contrasted to a loss from operations of $1.0 million in the same period a year ago. Income from continuing operations before income tax expense and discontinued operations improved to $13,000, from a loss of $1.7 million in the year ago period. After reflecting a tax accounting treatment related to the sale of Shuster Laboratories and a loss from discontinued operations, net loss was $154,000, or $0.03 per share, compared with net loss of $1.5 million, or $0.28 per share, in the first six months of last year
"During the 2003 fiscal second quarter, we sold our Shuster Laboratories division for approximately $7.7 million and used the proceeds to pay down a substantial portion of our debt, which will significantly lower future interest expense," said Kenneth Cleveland, president and chief executive officer.
On October 31, 2002, the company entered into an agreement with Wells Fargo Bank to further amend its Amended Credit Facility by extending its due date to November 30, 2002 and reducing its credit line to $9.0 million from $10.0 million. The company is engaged in discussions, which could result in the company obtaining funds to pay the outstanding loans to Wells Fargo when due, and permit the company to obtain a new line of credit to finance operations. There can be no assurances that the requisite funds will be obtained. If alternative financing is not available to enable the company to repay Wells Fargo by November 30, 2002, the terms of the alternative financing are not acceptable to the company, or if Wells Fargo does not extend the outstanding loans, the company's ability to continue as a going concern would be in question.
Hauser, headquartered in Long Beach, California and Longmont, Colorado, is a leading supplier of herbal extracts and nutritional supplements. Hauser also provides chemical engineering services and contract research and development. Hauser's products and services are principally marketed to the pharmaceutical, dietary supplement and food ingredient businesses. Hauser's business units include: Botanicals International, ZetaPharm and Hauser Contract Research Organization.
Certain oral and written statements of management of the Company included in this Press Release and elsewhere may contain forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. These statements include the plans and objectives of management for future operations. The forward-looking statements included herein and elsewhere are based on current expectations that involve judgments which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in the forw!
d-looking statements, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.