EX-99 2 exhibit99_1.txt INTEGRATED BIOPHARMA, INC. Exhibit 99.1 Integrated BioPharma Reports Third Quarter and Nine Months Financial Results May 16 - Integrated BioPharma, Inc. (Amex: INB - News) announced its financial results for the three and nine month periods ended March 31, 2005. Revenues were $8.9 million for the quarter ended March 31, 2005, compared with $6.6 million in the same period of the prior year, an increase of 35 percent. The increase was attributed to sales of new, proprietary nutraceutical products and sales related to the Company's pharmaceutical services. Operating loss was reduced to $900,000 for the quarter ended March 31, 2005, compared with $1.2 million in the same period in the prior year, a reduction of 26 percent. Net income was $800,000 for the quarter ended March 31, 2005, compared with a loss of $1.2 million in the same period of the prior year. Earnings per share were $0.05, on a diluted basis, on 16.6 million shares outstanding for the quarter ended March 31, 2005, compared with a loss of $(0.12), on a diluted basis, on 10.6 million shares outstanding in the same period of the prior year. The increase in net income was attributed to increased sales volume and a $2.5 million cash payment in connection with the settlement of a class action lawsuit, offset by a preferred stock dividend of $700,000, of which $600,000 was a non-cash item. Revenues were $21.3 million for the nine months ended March 31, 2005, compared with $18.3 million in the same period of the prior year, an increase of 16 percent. Net loss was $4.9 million for the nine month period, compared with $2.5 million in the same period of the prior year. Loss per share was $(0.39), on a diluted basis, on 12.6 million shares outstanding for the nine months ended March 31, 2005, compared with $(0.24), on a diluted basis, on 10.5 million shares in the same period of the prior year. "We are pleased with our revenue growth during our third fiscal quarter which was driven by the introduction of new, proprietary nutraceutical products," said E. Gerald Kay, CEO and Chairman. "The Company is in a transitional period, increasing its focus on its pharmaceutical and biotech businesses while maintaining the growth in its nutraceutical business. While this transition has had a negative impact on our operating results, we believe this strategy will add long term value to INB." About Integrated BioPharma, Inc. (INB) INB serves the pharmaceutical, biotech and nutraceutical industries. INB's biotech subsidiary, INB:Biotechnologies, Inc., is developing human therapeutics and preventive compounds using a transient gene expression system and transgenic plant technology. INB's pharmaceutical subsidiary, Paxis Pharmaceuticals, Inc., develops and operates a state-of-the-art GMP facility for the production and sale of paclitaxel and related drugs. INB's nutraceutical subsidiary, Manhattan Drug, develops, manufactures and distributes products worldwide. Further information is available at www.iBioPharma.com. Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand, and the company's ability to obtain new contracts and accurately estimate net revenues due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential risk factors that could affect the company's financial results can be found in the company's Reports filed with the Securities and Exchange Commission. Contact: Michael Mason (investors) Allen & Caron Inc. 212-691-8087 michaelm@allencaron.com Brian Kennedy (media) brian@allencaron.com Gregory A. Gould, CFO Integrated BioPharma, Inc. 973-926-0816 Financial Results for the quarter ended March 31, 2005: (Unaudited) For the Three Months Ended March 31, March 31, 2005 2004 Total Revenue $8,868,295 $6,560,784 Cost of Sales 6,749,833 4,982,793 Gross Profit 2,118,462 1,577,991 Paxis Pharmaceuticals, Inc. Start Up Costs (1) -- 1,557,100 Selling and Administrative Expenses 3,039,363 1,192,466 Total Selling and Administrative Expenses 3,039,363 2,749,566 Pretax Operating Loss (920,901) (1,171,575) Other Income 2,482,806 42,948 Income (Loss) Before Income Taxes and minority interest 1,561,905 (1,128,627) Provision for Income Taxes (65,230) (12,905) Net Income (Loss) before minority interest 1,496,675 (1,141,532) Minority interest in (income) loss of consolidated subsidiary 8 -- Net Income (Loss) 1,496,683 (1,141,532) Accretion of Preferred Stock Dividends -- (95,000) Non-cash deemed dividend on Preferred Stock (2) (583,000) -- Preferred Stock Dividend (3) (120,822) -- Net Income (Loss) applicable to common shareholders $792,861 $(1,236,532) Diluted EPS $0.05 $(0.12) Average Common Shares Outstanding-fully diluted 16,620,446 10,635,924 (1) The Company's paclitaxel manufacturing and distribution subsidiary completed setting up its manufacturing facilities prior to the end of fiscal 2004. The operating results of Paxis Pharmaceuticals, Inc. for the three and nine months ended March 31, 2005 have been included in the consolidated sales, gross profit, and selling and administrative expenses. Because Paxis was a start up operation for the three and nine months ended March 31, 2004, the start up expenses were shown separately for the comparative period. (2) Non-cash deemed dividend for preferred shareholders associated with the amortization of beneficial conversion feature and accretion of redemption value of Series B redeemable convertible preferred stock. (3) 7 percent dividend on Series B redeemable convertible preferred stock. Financial Results for the nine months ended March 31, 2005: (Unaudited) For the Nine Months Ended March 31, March 31, 2005 2004 Total Revenue $21,286,889 $18,313,616 Cost of Sales 18,508,770 13,847,860 Gross Profit 2,778,119 4,465,756 Paxis Pharmaceuticals, Inc. Start Up Costs (1) -- 3,228,454 Selling and Administrative Expenses 8,043,650 3,702,091 Total Selling and Administrative Expenses 8,043,650 6,930,545 Pretax Operating Loss (5,265,531) (2,464,789) Other Income 2,522,686 287,241 Loss Before Income Taxes and minority interest (2,742,845) (2,177,548) Provision for Income Taxes (42,357) (87,030) Net Loss before minority interest (2,785,202) (2,264,578) Minority interest in (income) loss of consolidated subsidiary (20,978) -- Net Loss (2,806,180) (2,264,578) Accretion of Preferred Stock Dividends -- (285,000) Non-cash deemed dividend on Preferred Stock (2) (1,749,000) -- Preferred Stock Dividend (3) (367,836) -- Net Loss applicable to common shareholders $(4,923,016) $(2,549,578) Diluted EPS $(0.39) $(0.24) Average Common Shares Outstanding-fully diluted 12,589,920 10,487,202 (1) The Company's paclitaxel manufacturing and distribution subsidiary completed setting up its manufacturing facilities prior to the end of fiscal 2004. The operating results of Paxis Pharmaceuticals, Inc. for the three and nine months ended March 31, 2005 have been included in the consolidated sales, gross profit, and selling and administrative expenses. Because Paxis was a start up operation for the three and nine months ended March 31, 2004, the start up expenses were shown separately for the comparative period. (2) Non-cash deemed dividend for preferred shareholders associated with the amortization of beneficial conversion feature and accretion of redemption value of Series B redeemable convertible preferred stock. (3) 7 percent dividend on Series B redeemable convertible preferred stock. Consolidated Balance Sheet as of March 31, 2005 (Unaudited) Assets: Current Assets: Cash and Cash Equivalents $2,906,396 Accounts Receivable - Net 4,099,875 Inventories - Net 10,310,569 Prepaid Expenses and Other Current Assets 1,299,126 Other Assets 192,529 Deferred Income Taxes 85,000 Total Current Assets 18,893,495 Property and Equipment - Net 7,450,370 Other Assets: Goodwill 688,138 Intangible Assets, Net 3,843,908 Investment in Joint Venture 121,388 Deferred Tax Asset 48,000 Security Deposits and Other Assets 181,547 Total Other Assets 4,882,981 Total Assets $31,226,846 Liabilities and Stockholders' Equity: Current Liabilities: Note Payable - Bank $4,500,000 Accounts Payable 3,506,945 Accrued Expenses and Other Current Liabilities 1,187,500 Federal and State Income Taxes Payable 28,500 Loan Payable-Trade Investment Services, LLC, related party 172,260 Total Current Liabilities 9,395,205 Commitments and Contingencies -- Series B 7 percent Redeemable Convertible Preferred Stock net of beneficial conversion feature, warrants issued and issuance costs - $.002 Par Value; 1,250 shares authorized; 700 shares issued and outstanding - Liquidation Preference of $7,000,000 2,209,000 Minority interest 370,978 Stockholders' Equity: Preferred Stock - Authorized 1,000,000 Shares, $.002 Par Value, No Shares Issued -- Common Stock - Authorized 25,000,000 Shares, $.002 Par Value, 12,640,690 Shares Issued and Outstanding 25,281 Additional Paid-in-Capital 28,268,892 Accumulated Deficit (8,943,171) Less, Treasury Stock at cost, 34,900 shares (99,339) Total Stockholders' Equity 19,251,663 Total Liabilities and Stockholders' Equity $31,226,846