VERUS INTERNATIONAL REPORTS FISCAL Q1 2021 FINANCIAL RESULTS; REALIZES 73% IMPROVEMENT IN OPERATING COSTS
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Gaithersburg, MD, March 29, 2021 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTC Pink: VRUS) reported financial results for the fiscal 2021 first quarter ended January 31, 2021. In conjunction with this release, the Company is also providing additional details on business developments subsequent to the quarter’s end.
For fiscal Q1 2021, management is noting the following items of importance:
- Revenue decreased 44% on a year-over-year basis to $3.5 million during Q1 2021 compared to $6.2 million during fiscal Q1 2020, due in part to a planned product line repositioning that is expected to contribute higher margin revenue beginning in Q2 2021;
- Gross profit margin was 17.1% for fiscal Q1 2021, 338 basis points lower than the 20.5% generated during fiscal Q1 2020;
- Operating expenses of $0.7 million were 73% lower than fiscal Q1 2020 operating expenses of $2.6 million, primarily due to the completion of the former CEO’s stock-based compensation program and expense rationalization measures across nearly all business categories;
- Operating loss of $0.1 million was 92% lower than the $1.4 million reported in fiscal Q1 2020;
- Net loss from continuing operations was $0.4 million, an 80% improvement over the $2.3 million reported in the prior year period, with non-cash expenses decreasing $0.6 million year-over-year; and
- Gross convertible notes payable decreased 35% to $273,000 in Q1 2021 compared to $423,000 in the prior quarter, Q4 2020.
“This quarter showed our commitment to become a profitable company,” explained Verus CEO Andy Dhruv. “That process begins with expense rationalization. While decoupling from our most capital-intensive business units, we also have been aggressively optimizing expenses in nearly every operating category. We now have a smaller footprint, with lower operating costs across our organization, from office space to legal expenses, giving us a fresh start while we implement our new product line strategy. This plan will stress quick turnaround sales of high margin, high demand products under our own in-house developed brands, which do not require royalty payments. In that regard, we are also actively working to rapidly transition a larger portion of our sales into the CBD category, where our margins are three to five times higher than our traditional food business. We still have some work to do to accelerate this strategy, but we have completed the first steps to position ourselves for future growth. Our singular focus is to become profitable as soon as possible.”
With the filing of the fiscal Q1 2021 Form 10-Q, Verus is now compliant in its filings. As a result, management is able to actively resume previously announced M&A discussions. In conjunction with these corporate actions, Verus plans to significantly reduce its authorized share count when the structure of the M&A is better defined. Management cannot be certain of the timing or the outcome of these active M&A discussions, which involve companies of equal or greater size than Verus’ current operations. The Company will provide a more complete corporate update in the near future, with additional details on its strategic plan for the remainder of 2021.
About Verus International
Verus is an emerging multi-line consumer packaged goods (CPG) company developing branded product lines in the U.S. and on a global basis. The Company trades on the OTC market (OTC Pink: VRUS). Investors can find real-time quotes and market information for the Company on www.otcmarkets.com. Additional information is also available at the Company’s website, www.verusfoods.com, and via the official Twitter feed @Verus_Foods, and the Pachyderm Labs subsidiary Twitter feed @PachydermLabs.
Safe Harbor Statement
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results could differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Investor Contact: MKR Group Inc. Todd Kehrli or Mark Forneyvrus@mkr-group.com
Source: Verus International, Inc.
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