Full Press Release Details
FEMALE HEALTH COMPANY REPORTS RECORD RESULTS FOR FISCAL YEAR 2008, AT HIGH
INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS RISES 215% TO $4.8 MILLION ($0.18
December 1, 2008- The
Female Health Company (AMEX: FHC
which manufactures and markets the FC Female Condom ,
today reported record operating results for the quarter and fiscal year ended
three months ended September 30, 2008, net revenues increased 52% to $7.8
million, compared with $5.2 million in the quarter ended September 30,
2007. The Company reported net income attributable to common
stockholders of $2.3 million, or $0.08 per diluted share, in the fourth quarter
of FY2008, versus $1.1 million, or $0.04 per diluted share, in the corresponding
period of the previous fiscal year.
fourth quarter of FY2008, the Company recorded a favorable currency gain of
million and a tax benefit of $0.2 million. Pretax income exclusive of currency
gain totaled $1.3 million, an increase of 211% when compared with pretax income
exclusive of currency loss of $0.4 million in the final quarter of
profit increased 73% to $3.5 million, or 44.8% of net revenues, in the most
recent quarter, compared with $2.0 million, or 39.3% of net revenues, in the
fourth quarter of FY2007. Operating income increased 206% to $1.2
million in the three months ended September 30, 2008, compared with $0.4 million
in the corresponding period of the previous fiscal year. This was the
first quarter in which the Company reported operating income in excess of $1
Company expects significant quarter-to-quarter variations in its operating
results, due to the timing of large order receipts, production scheduling,
shipping of products.
year ended September 30, 2008, net revenues increased 33% to $25.6 million,
compared with $19.3 million in FY2007. Gross profit increased 50% to
$10.7 million, or 41.9% of net revenues, in FY2008, compared with $7.2 million,
or 37.0% of net revenues, in FY2007. Operating income rose to $3.2
million, a 252% improvement from $0.9 million in FY2007. In FY2008,
the Company sold 34.7 million female condoms, an increase of 34% over the 25.9
million units sold in FY2007.
income attributable to common stockholders for FY2008 totaled $4.8 million,
$0.18 per diluted share, representing a 215% increase when compared with net
income attributable to common stockholders of $1.5 million, or $0.06 per diluted
share, in FY2007. In FY2008, the Company recorded a currency gain of
$1 million and recognized a tax benefit of $0.8 million. Pretax income exclusive
of the currency gain totaled $3.2 million, which represented an increase of
over FY2007 pretax net income exclusive of currency loss of $0.9 million. The
Company's pretax earnings guidance for FY2008 was an increase of 200% to 250%
over pretax earnings for FY2007
Company generated $4.2 million in cash from operations during FY2008, and its
fiscal year-end cash position was approximated $2.1 million, compared with
million at the end of FY2007. Cash expenditures in FY2008 included
approximately $2.7 million for capital improvements and common stock repurchases
and preferred stock redemptions. The Company currently has no
outstanding debt and $1.5 million in unused credit lines.
January 2007, the Company announced a Stock Repurchase Program under the terms
of which up to one million shares of its common stock could be purchased during
the subsequent twelve months. In 2008, the Board of Directors expanded the
program to a maximum of two million shares and continued the program to December
31, 2009. Through September 30, 2008, the Company has purchased 841,000 shares
for $2.1 million (an average price of $2.54 per share).
pleased to report record sales, earnings and unit shipments in the most recent
fiscal year and believe this strong performance directly reflects the growing
demand for the female condom and an expansion in the number of women receiving
protection world-wide," stated O.B. Parrish, Chief Executive Officer of The
Female Health Company. "The improvement in gross profit margins
during fiscal 2008 can be attributed to a shift in product mix towards our
second-generation FC2 Female
Condom and the spreading of corporate overhead across an expanding
the fiscal year with the strongest balance sheet in our Company's history,"
continued Parrish. "Total cash balances increased 141% during fiscal
2008 to approximately $2.1 million (vs. approximately $0.9 million), even after
our investment of approximately $2.7 million in the repurchase of common stock,
redemption of preferred stock and capital improvements during the twelve months
ended September 30, 2008.
Guidance: The Company expects unit sales to increase 20% to 25% and
pretax earnings exclusive of currency gains or losses to increases 50% to 60%
Company will host an investor conference call today at 11:00 Eastern Time to
discuss FY2008 operating results and other topics of interest.
and other interested parties may participate in the conference call by dialing
800-860-2442 (international participants dial 412-858-4600) and asking to be
connected to the Female Health Company Conference Call', a few
minutes before 11:00 a.m. EST on December 1, 2008. A replay of the
call will be available one hour after the call through 5:00 pm on December
2008 by dialing 877-344-7529 (international callers dial 412-317-0088) and
entering the conference ID 425576.
of Non-GAAP Financial Information
addition to the results reported in accordance with U.S. generally accepted
accounting principles ("GAAP") included in this release, the Company has
provided certain non-GAAP financial information, specifically pretax income
exclusive of currency (gain) loss. Management believes that the
presentation of this non-GAAP financial measure provides useful information
investors because this information may allow investors to better evaluate
ongoing business performance and certain components of the Company's
results. In addition, because currency gains and losses can fluctuate
significantly between periods, the Company believes that the presentation of
financial measures enhances an investor's ability to make period-to-period
comparisons of the Company's operating results. This information
should be considered in addition to the results presented in accordance with
GAAP, and should not be considered a substitute for the GAAP
results. The Company has reconciled the non-GAAP financial
information included in this release in a table below.
The Female Health Company
Female Health Company (FHC), headquartered in Chicago, IL, is the maker of
FC Female Condom (FC1
and FC2), a revolutionary
offering women dual protection against both sexually transmitted diseases,
including HIV/AIDS, and unintended pregnancy. FHC was created as a worldwide