DENVER, Feb. 15 /PRNewswire-FirstCall/ -- Advanced Nutraceuticals, Inc.(OTC Bulletin Board: ANII), announced today results for the first fiscal quarter ended December 31, 2004. The successful operations and earnings of the Company's operating subsidiary, Bactolac Pharmaceutical, Inc.("Bactolac"), continue at increasing levels.
The Company also announced that net sales for the fiscal year ending September 30, 2005, are estimated at $21.0 million, based upon current sales,orders and customer activity.
Net sales from continuing operations for the three months ended December 31, 2004 were $4.5 million compared to $4.1 million for the period ended December 31, 2003, a 10% increase. The Company reported income from continuing operations before income taxes of $635,000, for the three months ended December 31, 2004, compared with income from continuing operations before income taxes of $604,000, for the 2003 period. The Company reported net after tax income from continuing operations of $395,000, or $.08 per common share ($.07 diluted), for the three months ended December 31, 2004, compared with net income of $604,000, or $.12 per common share ($.12 diluted) for the 2003 period. The 2004 period includes a deferred income tax expense of $240,000 compared to no income tax expense for 2003. As a result of the deferred income tax benefit recorded during the fiscal year ended September 30, 2004, future operations of the Company will be subject to deferred income tax provisions until the Company's net operating loss carryforwards are utilized and then the Company will be subject to current income tax provisions, which at that point would require cash payments.
The 2003 results include the discontinued operations of the Company's unprofitable subsidiary, ANI Pharmaceuticals, Inc. ("ANIP"), that was divested in March 2004. Net loss from discontinued operations of ANIP for the three months ended December 31, 2003 was $(405,000), or $(.08) per common share ($(.08) diluted). At the March 2004 ANIP sale closing, the Company used the entire net cash proceeds to reduce the Company's secured indebtedness by
approximately $3.0 million.
As previously disclosed, the Company continues to work with The Seidler Companies Incorporated, a Los Angeles based investment banking firm and NYSE member, and BCL Partners, a Houston based corporate finance specialist, on a defined non-exclusive basis to advise and assist the Company regarding its future strategy and to explore possible options to enhance and maximize shareholder value. The Company is also considering seeking a listing for trading of its common shares on either the American Stock Exchange or NASDAQ.
Dr. Pailla M. Reddy, founder and president of Bactolac and the Company's largest shareholder, said "Bactolac is in the final stages of more than doubling our QC \ QA laboratory capacity, as well as adding additional equipment in the expansion space to increase production capacity to enhance customer service. Bactolac has also recently added a new customer that is expected to generate appreciable revenues and we are in discussions with other prospective customers that could potentially become significant customers."
This press release includes "forward looking statements" as defined by the Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical fact, included in the press release that address
activities, events or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors the Company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future performance. Actual results or developments may differ materially from those projected in the forward-looking statements as a result of many factors, including adverse changes in market conditions, fluctuations in sales volumes and problems in collecting receivables. Furthermore, the Company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in the Company's recent filings with the SEC.