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EX-99.1 2 a5547135ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Nextera Enterprises, Inc. Announces Third Quarter 2007 Results PANORAMA CITY, Calif.--(BUSINESS WIRE)--Nov. 14, 2007--Nextera Enterprises, Inc. (OTCBB:NXRA) today reported financial results for the third quarter ended September 30, 2007 included in its Quarterly Report on Form 10-Q filed with the SEC. Net sales for the third quarter of 2007 were $1.7 million, a decrease of $2.1 million, or 55%, from $3.8 million recorded for the third quarter of 2006. For the nine-month period ended September 30, 2007 net sales of $7.1 million decreased $1.4 million, or 16%, from $8.5 million for the same period last year. Net sales for the third quarter of 2006 include approximately $1.7 million of new product launch revenue. Currently, the Company expects the majority of new product initiatives developed in 2007 to be delivered in the fourth quarter or the first quarter of 2008. Net sales for 2006 reflect the operating results of the Woodridge Labs business from the March 9, 2006 acquisition date forward. Woodridge Labs represents Nextera's sole operations and generates all of its revenue. The 2007 year-to-date net sales include a $0.2 million charge for expected returns related to the March 2007 voluntary recall of certain DermaFreeze365(TM) products sold during the first quarter of 2007. Gross profit and gross margins for the three months ended September 30, 2007 and 2006 were $0.9 million and 52% and $2.5 million and 66%, respectively. Included within gross profit for the period ended September 30, 2006 is a $0.1 million charge associated with the amortization of the step up to fair value in the inventory acquired from Woodridge Labs, as required by related accounting literature. The decline in gross profit is due to the lower volume of sales of lower margin products, as well as increased customer credits and increased inventory charges during the three months ended September 30, 2007. Selling, general and administrative expenses for the three months ended September 30, 2007 decreased $0.5 million or 23% to $1.6 million from $2.1 million recorded for the same period last year. Quarter over quarter, selling, general and administrative expenses were down $0.4 million or 18% compared to the three months ended June 30, 2007. Decreased selling, general and administrative expenses reflect the Company's effort to reduce operating costs in anticipation of the decreased revenue recorded. Net loss applicable to common stockholders for the third quarter of 2007 was $1.2 million, or $0.03 per diluted common share, compared to $0.6 million, or $0.01 per diluted common share, for the third quarter of 2006. Non-cash charges recorded in the net loss for the three months ended September 30, 2007 include $0.3 million of amortization of intangible assets and depreciation, $0.9 million for provisions and allowances and $0.1 million for stock-based compensation and deferred taxes. During the three months ended September 30, 2007, the Company drew down the full $2.8 million available under the Revolver Credit Line. As previously reported, effective November 7, 2007, Nextera, through its wholly-owned subsidiary Woodridge Labs, entered into an amendment agreement under its existing amended credit agreement. Under the terms of the amendment agreement, the Company obtained a bridge loan credit facility aggregating $2.5 million. The bridge loans will be funded by $1 million each from its existing lender, NewStar Financial Inc., and Mounte LLC, and $500,000 from Jocott Enterprises Inc. Mounte and Jocott were added as affiliate lenders under the amended credit agreement. Mounte controls a majority of the voting rights of the Company's equity securities and Jocott is another of the Company's significant shareholders. Joe Millin, President of Nextera Enterprises, said, "We are excited about the prospects of our new product initiatives scheduled for launch during next quarter and the first quarter of 2008. The bridge financing consummated this month helps to execute these initiatives and realize positive effects of the line-extension groundwork of the first and second quarter of this year." About Nextera Enterprises, Inc. Nextera Enterprises, Inc. operates through its wholly-owned subsidiary, Woodridge Labs, Inc. Woodridge Labs is an independent developer and marketer of branded consumer products that offer simple, effective solutions to niche personal care needs. More information can be found at www.nextera.com and www.woodridgelabs.com. Forward-Looking Statements This release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, estimates of future performance. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are detailed under "Item 1A.Risk Factors" and elsewhere in filings with the Securities and Exchange Commission made from time to time by Nextera, including, but not limited to: its Annual Report on Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission on April 17, 2007; recent quarterly reports on Form 10-Q; and other current reports on Form 8-K. All forward-looking statements included in this news release should be considered in the context of these risk factors. Nextera undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors and prospective investors are cautioned not to place undue reliance on such forward-looking statements. Nextera Enterprises, Inc. Condensed Consolidated Statements of Operations (Amounts in thousands, except share amounts; unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 2007 2006 2007 2006 --------- -------- -------- -------- Net sales $ 1,709 $ 3,800 $ 7,101 $ 8,460 Cost of sales 820 1,282 3,020 3,639 --------- -------- -------- -------- Gross profit 889 2,518 4,081 4,821 Selling, general and administrative expenses 1,645 2,129 5,659 5,659 Amortization of intangible assets 276 146 808 329 --------- -------- -------- -------- Operating income(loss) (1,032) 243 (2,386) (1,167) Interest income - 23 6 178 Interest expense (350) (319) (941) (706) Other income (expense) (1) - 1 - --------- -------- -------- -------- Loss from continuing operations before income taxes (1,383) (53) (3,320) (1,695) Provision (benefit) for income taxes (340) 475 (220) 504 --------- -------- -------- -------- Loss from continuing operations (1,043) (528) (3,100) (2,199) Income from discontinued operations - - - 35 --------- -------- -------- -------- Net loss (1,043) (528) (3,100) (2,164) Preferred stock dividends (140) (90) (350) (264) --------- -------- -------- -------- Net loss applicable to common stockholders $(1,183) $ (618) $(3,450) $(2,428) ========= ======== ======== ======== Net loss per common share, basic and diluted Continuing operations $ (0.03) $ (0.01) $ (0.08) $ (0.06) Discontinued operations (-) (-) (-) (-) --------- -------- -------- -------- Net loss per common share, basic and diluted $ (0.03) $ (0.01) $ (0.08) $ (0.06) ========= ======== ======== ======== Weighted average common shares outstanding, basic and diluted 42,470 42,337 42,381 40,205 ========= ======== ======== ======== Nextera Enterprises, Inc. Condensed Consolidated Balance Sheets (Amounts in thousands, except share amounts) September 30, 2007 December 31, (Unaudited) 2006 ------------------ ----------------- Assets Current assets: Cash and cash equivalents $ 412 $ 597 Accounts receivable, net of allowances for customer deductions and doubtful accounts of $4,100 at September 30, 2007 741 - Inventories 1,983 2,595 Due from supplier - 127 Prepaid expenses and other current assets 328 260 ------------------ ----------------- Total current assets 3,464 3,579 Property and equipment, net 256 284 Goodwill 8,969 10,969 Intangible assets, net 12,377 12,827 Other assets 461 484 ------------------ ----------------- Total assets $ 25,527 $ 28,143 ================== ================= Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $ 1,876 $ 4,364 Revolver credit facility 2,750 Current portion of long-term debt 750 - ------------------ ----------------- Total current liabilities 5,376 4,364 Long-term debt, net of current portion 8,750 11,718 Deferred taxes 416 236 Other long-term liabilities 934 1,334 Commitments and contingencies - - Redeemable Preferred Stock, $0.001 par value. Liquidation preference of $100 per share: Series B Cumulative Non- Convertible, 200,000 authorized shares designated, 25,801 and 0 issued and outstanding at September 30, 2007 and December 31, 2006, respectively. 1,869 - Series C Cumulative Non- Convertible, 200,000 authorized shares designated, none outstanding at September 30, 2007 and December 31, 2006. - - Stockholders' equity: Preferred Stock, $0.001 par value, 10,000,000 shares authorized. Liquidation preference of $100 per share: Series A Cumulative Convertible, 600,000 authorized shares designated, 55,398 and 52,429 issued and outstanding at September 30, 2007 and December 31, 2006, respectively. 5,540 5,243 Class A Common Stock, $0.001 par value, 95,000,000 shares authorized, 38,692,851 and 38,492,851 shares issued and outstanding at September 30, 2007 and December 31, 2006, respectively. 39 38 Class B Common Stock, $0.001 par value, 4,300,000 shares authorized, 3,844,200 shares issued and outstanding at September 30, 2007 and December 31, 2006, respectively. 4 4 Additional paid-in capital 165,711 165,218 Accumulated deficit (163,112) (160,012) ------------------ ----------------- Total stockholders' equity 8,182 10,491 ------------------ ----------------- Total liabilities and stockholders' equity $ 25,527 $ 28,143 ================== ================= Nextera Enterprises, Inc. Condensed Consolidated Statements of Cash Flows (Amounts in thousands; unaudited) Nine Months Ended September 30, 2007 2006 -------- --------- Operating activities Net loss $(3,100) $ (2,164) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 52 36 Amortization of intangible assets 808 329 Provision for allowances and returns 1,033 - Inventory write-down 163 - Deferred taxes 180 504 Stock based compensation 184 175 Gain on sale of fixed assets (1) - Change in operating assets and liabilities: Accounts receivable (2,481) (1,043) Inventories 449 843 Prepaid expenses and other assets (151) (126) Accounts payable and accrued expenses (2,054) 633 -------- --------- Net cash used in operating activities (4,918) (813) Investing activities Cash recovered from acquisition escrow 2,000 - Acquisition of business, net of cash acquired - (22,967) Purchase of intellectual property and licensing agreement (276) - Purchase of fixed assets (23) (59) -------- --------- Net cash provided by (used in) investing activities 1,701 (23,026) Financing activities Borrowing (payments) under revolving credit facility 532 2,068 Borrowings under term note - 10,000 Payment of term note - (250) Payment of note acquired in acquisition - (1,000) Payment of debt issuance costs - (490) Proceeds from issuance of note payable 2,500 - -------- --------- Net cash provided by financing activities 3,032 10,328 -------- --------- Net decrease in cash and cash equivalents (185) (13,511) Cash and cash equivalents at beginning of period 597 15,043 -------- --------- Cash and cash equivalents at end of period $ 412 $ 1,532 ======== ========= Supplemental Disclosure of Cash Flow Information Cash paid during the period for: Interest $ 730 640 Income Taxes 1 - Non-cash financing activity: Conversion of note payable to preferred stock and warrant 2,500 - CONTACT: Nextera Enterprises, Inc. Tony Rodriquez Chief Financial Officer 818-902-5537
The following information was filed by Nextera Enterprises Inc (NXRA) on Wednesday, November 14, 2007 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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NXRA Quarterly Reports
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10-Q Quarterly Report November 2007
- 10-Q Quarterly Report August 2007
- 10-Q Quarterly Report May 2007
- 10-Q Quarterly Report November 2006
- 10-Q Quarterly Report August 2006
