GlobeNewswire Inc | Aug 11, 2020 08:48AM EDT

August 11, 2020

DOYLESTOWN, Pennsylvania, Aug. 11, 2020 (GLOBE NEWSWIRE) -- ProPhase Labs, Inc. (NASDAQ: PRPH, www.ProPhaseLabs.com) today announced net sales of $3.6 million for the three months ended June 30, 2020, compared to net sales of $1.7 million for the three months ended June 30, 2019. The Company recognized net income for the three months ended June 30, 2020 of $70,000, or $0.01 per share, compared to a net loss of $1.2 million, or ($0.11) per share, for the three months ended June 30, 2019.

Results for the second quarter of 2020 compared to the second quarter of 2019 principally reflect the net effect of (i) an increase in net sales of $1.9 million due to an increase in third party customer orders, (ii) a decrease in administrative costs of $62,000 due principally to a decrease in professional fees, (iii) a decrease in sales and marketing expenses of $217,000 resulting from a reduction in marketing initiatives and (iv) a decrease in research and development expenditures of $30,000.

The Company generated net sales for the six months ended June 30, 2020 of $5.5 million, as compared to $4.0 million for the six months ended June 30, 2019. The Company incurred a net loss for the six months ended June 30, 2020 of $0.7 million, or (0.06) per share, as compared to a net loss of 2.3 million, or (0.19) per share, for the six months ended June 30, 2019.

Results for the six months ended June 30, 2020 as compared to the six months ended June 30, 2019 principally reflect the net effect of (i) an increase in net sales of $1.5 million due to an increase in third party customer orders, (ii) a decrease in administrative costs of $268,000 due principally to a decrease in professional fees, (iii) a decrease in sales and marketing expenses of $313,000 resulting from a reduction in marketing initiatives and (iv) a decrease in research and development expenditures of $65,000.

About the Company

We are a manufacturing and marketing company with deep experience with OTC consumer healthcare products and dietary supplements. We are engaged in the research, development, manufacture, distribution, marketing and sale of OTC consumer healthcare products and dietary supplements in the United States. This includes the development and marketing of dietary supplements under the TK Supplementsbrand.

In addition, the Company also continues to actively pursue acquisition opportunities for other companies, technologies and products inside and outside the consumer products industry. For more information visit us at www.ProPhaseLabs.com.

Investor Contact

Ted Karkus, Chairman and CEOProPhase Labs, Inc.(267) 880-1111

ProPhase Labs, Inc. and SubsidiariesCondensed Consolidated Statements of Operations(in thousands, except per share amounts)(unaudited)

For the Three Months For the Six Months Ended Ended June 30, June 30, June 30, June 30 2020 2019 2020 2019Net sales $ 3,623 $ 1,651 $ 5,511 $ 3,969 Cost of sales 2,344 1,390 3,817 3,188 Gross profit 1,279 261 1,694 781 Operating expenses:Sales and 125 342 295 608 marketingAdministration 1,030 1,092 2,028 2,296 Research and 65 95 124 189 developmentTotal operating 1,220 1,529 2,447 3,093 expensesIncome (loss) 59 (1,268 ) (753 ) (2,312 )from operations Interest 11 30 14 61 income, netNet income $ 70 $ (1,238 ) $ (739 ) $ (2,251 )(loss) Othercomprehensive income:Unrealized gain(loss) on (5 ) 8 6 23 marketable debtsecuritiesTotalcomprehensive $ 65 $ (1,230 ) $ (733 ) $ (2,228 )income (loss) Basic earnings(loss) per $ 0.01 $ (0.11 ) $ (0.06 ) $ (0.19 )share:Dilutedearnings (loss) $ 0.01 $ (0.11 ) $ (0.06 ) $ (0.19 )per share: Weightedaverage common sharesoutstanding:Basic 11,592 11,560 11,587 11,558 Diluted 11,618 11,560 11,587 11,558

ProPhase Labs, Inc. and SubsidiariesCondensed Consolidated Balance Sheets (in thousands)(unaudited)

June 30, December 31, 2020 2019 (audited) Cash and cash equivalents $ 2,537 $ 434 Marketable debt securities, available for sale $ 3,339 $ 926 Accounts receivable, net $ 1,930 $ 2,010 Inventory $ 2,047 $ 1,459 Total current assets $ 10,242 $ 9,945 Total assets $ 12,375 $ 12,274 Total current liabilities $ 1,395 $ 933 Total non-current liabilities $ 86 $ 110 Total stockholders? equity $ 10,894 $ 11,231