Full Press Release Details
| 172% Operating Profit Increase to $2.3 Million | ||
| Gross Profit Margin widens to 53% of net revenues vs. 42% in prior year quarter | ||
| 46% Gross Profit Increase | ||
| E.P.S. of $0.07 vs. $0.04 in prior-year quarter | ||
| Year-to-date highlights: | ||
| Gross Margin widens to 50% of net revenue vs. 42% in first half of fiscal year 2008 | ||
| Operating income up 73% | ||
| Operating margin widens to 21% of revenues vs. 13% in first half of FY2008 | ||
| E.P.S. rise 85% to $0.13 vs. $0.07 in first half of FY 2008 |
May 8, 2009- The Female Health Company (NYSE Amex: FHC
which manufactures and markets the FC and
FC2 Female Condom , today
reported its operating results for the second quarter and first half of
FY2009. The Company will host an investor conference call at 11:00
a.m. Eastern Time today, May 8, 2009, to discuss its operating results and
topics of interest (see details below).
three months ended March 31, 2009, the Company's net revenues increased 14%
to $7.3 million, compared with $6.4 million in the three months ended March
2008. For the quarter ended March 31, 2009, unit sales increased 21%
over the same period in FY 2008. The Company's net income
attributable to common stockholders increased 67% to $1,951,786, or $0.07 per
diluted share, during the second quarter of FY2009, compared with $1,165,936,
$0.04 per diluted share, in the corresponding period of the previous fiscal
profit increased 46% to $3.9 million (53% of net revenues) in the most recent
quarter, compared with $2.7 million (42% of net revenues) in the second quarter
of FY2008. Operating income increased 172% to $2.3 million (31% of
net revenues) in the three months ended March 31, 2009, compared with operating
income of $0.8 million (13% of net revenues) in the quarter ended March 31,
very pleased to report quarterly operating earnings exceeding $2 million for
first time in the Company's history," stated O.B. Parrish, Chief Executive
Officer of The Female Health Company. "The favorable financial
results for the three and six months ended March 31, 2009 reflect the
increasing impact of FC2 upon our operating results, as evidenced by the
widening of the second quarter gross margin to 53% of net revenues from
42% in the prior-year quarter. FC2 accounted for 46% of unit sales
for the six months ended March 31, 2009 vs. 39% for the same period in FY
2008. It is also important to note that the increase in unit
shipments was greater than the 14% increase in second quarter revenues, due
the higher percentage of FC2 in our sales mix. FC2 sells at a lower
price, but contributes a higher gross margin than the FC1 female
Company expects significant quarter to quarter variations due to the receipt
large orders, production scheduling, and shipping of products.
six months ended March 31, 2009, the Company's net revenues increased 4% to
$12.7 million, compared with $12.1 million in the six months ended March 31,
2008. Unit sales were up 16% for the first half of FY 2009 vs. the
same period last year. For the six months ended March 31, 2009, net income
attributable to common stockholders increased to $3.6 million, or $0.13 per
diluted share, compared with $2.0 million, or $0.07 per diluted share, in the
corresponding period of the previous fiscal year.
profit increased 26% to $6.3 million (50% of net revenues) in the first six
months of FY2009, compared with $5.0 million (42% of net revenues) in the first
half of FY2008. Operating income increased 73% to $2.7 million (21%
of net revenues) in the six months ended March 31, 2009, compared with operating
income of $1.6 million (13% of net revenues) in the same period last
Company recorded a foreign currency transaction loss of $194,286 in the second
quarter of FY2009, versus a foreign currency transaction loss of $5,053 in
quarter ended March 31, 2008. For the six months ended March 31,
2009, the Company recorded a foreign currency transaction gain of $999,820,
compared with a foreign currency transaction gain of $110,304 in the
corresponding period of the previous fiscal year.
Company evaluates its ability to realize deferred tax assets on a regular basis.
The net income attributable to common stockholders for the three and six months
ended March 31, 2008, included a benefit for income taxes of $377,000, related
Company has Federal and state net operating loss carryforwards of approximately
$42 million and $22 million respectively, expiring in years 2009 to
2028. The Company's UK subsidiary, The Female Health Company-UK plc.
has UK net operating losses of approximately $65 million. The UK tax loss
carryforwards can be carried forward indefinitely to offset future U.K. taxable
recent FDA approval of FC2, some of FHC's major
customers that require such approval will transition to the second generation
product, which should further improve the Company's financial results," added
Parrish. "Growing global acceptance of the Female Condom, the only
available barrier method initiated by women that allows them to protect
themselves against HIV/AIDS and unintended pregnancy, is the basis for our
Condom is now available in over 100 countries, and we believe it will
play an increasingly important role in the global battle against HIV/AIDS in
Female Condom is currently being distributed in 77
reaffirming our annual guidance for FY 2009 that unit sales should increase
to 25% and that operating earnings should rise 50% to 75% from last year's
$3,183,725 record level," concluded Parrish.
the first half of FY 2009, the Company generated $3.2 million in cash from
operations. The Company has no outstanding debt and $1.5 million in
unused credit lines.
previously announced, the Female Health Company will host an investor conference
call at 11:00 a.m. Eastern time, May 8, 2009. Shareholders and other interested
parties may participate in the conference call by dialing 800-860-2442
(international/local 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.
EDT on May 8, 2009. A replay of the call will be available through
May 26, 2009 by dialing 877-344-7529 (international callers dial 412-317-0088)
and referencing the conference code ID 430401.
The Female Health Company
Female Health Company, based in Chicago, Illinois, manufactures and markets
FC Female Condom (FC1)
and the FC2 Female Condom (FC2), which are primarily distributed by public
health organizations and donor groups in over 90 developing countries around
world. Globally, the Female Condoms are available in various programs in 116
countries. The Company owns certain worldwide rights to the FC Female Condom , including
patents that have been issued in the United States, United Kingdom, Japan,
France, Italy, Germany, Spain, the European Patent Convention, the People's
Republic of China, Canada, South Korea and Australia. FC2 patents have been
in Australia and South Africa and are pending in various other
FC2 Female Condom are the only available FDA-approved products
controlled by a woman that offer dual protection against sexually transmitted
diseases, including HIV/AIDS, and unintended pregnancy.
information about the Female Health Company visit the Company's website at