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THE FEMALE HEALTH COMPANY REPORTS: FEMALE HEALTH COMPANY REPORTSSECOND
QUARTER RESULTS
REVENUES UP 56% GROSS PROFIT UP 231% OPERATING INCOME $.2 MILLION vs.
$.3 MILLION LOSS NET LOSS DOWN 97% CHICAGO, May 8, 2002-- The Female Health
Company (OTC BB FHCO) today reported net
revenues of $2,260,298 and net loss attributable to common stockholders of $14,471
($0.00 per diluted share) for the three months ended March 31, 2002 compared to
revenues of $1,449,297 and a net loss attributable to common stockholders of
$435,269 ($0.03 per diluted share) for three months ended March 31, 2001. The
Company posted operating income for the three-month period ended March 31, 2002 of
$240,462 compared to a $250,256 operating loss for the same period last year as a
result of improved gross profit. Net
revenues increased $811,001 for the current quarter or 56 percent, compared with the
same period last fiscal year. The higher sales volume for the second quarter was
attributable to a substantial increase in shipments to domestic and global public
sector customers. The results were consistent with the expectations for the quarter
and demonstrate the Female Health Company’s continued progress in executing its
long-term strategies for growth. The Company expects significant quarter-to-quarter
variation due to the timing of receipt of large orders, subsequent production
scheduling, and shipping of products. Gross profit
increased $504,858 or 231 percent to $723,096 from $218,238 for the same period last
year. The improvement in gross profit resulted from the increase in net revenues
coupled with a less than proportionate increase in cost of goods sold. As unit sales
increase, fixed manufacturing costs do not increase, enabling the Company to produce
at a lower cost of goods sold per unit. Total operating
expenses for the three-month ended March 31, 2002 increased three percent to
$482,634 from $468,494 for the same period last year. Total operating expenses as a
percent of sales were 21% in the second quarter compared to 32% in the same prior
year quarter. The
Company experienced a $70,915 increase in non-operating expenses to $222,380 for the
current quarter compared to $151,465 for the same period during the prior fiscal
year. The increase during the current period is principally due to a higher level of
debt outstanding than the same period last year which resulted in a larger amount of
non-cash expenses incurred from the amortization of discounts on the credit facility
and notes payable than the second quarter of the prior year. The
Company posted operating income for the six-month period ended March 31, 2002 of
$73,685 compared to a $718,913 operating loss for the same period last year as a
result of improved gross profit and a reduction of operating expenses. Net
revenues increased $1,267,547 or 48 percent, to $3,930,469 for the six months period
ended March 31, 2002 from $2,662,922 for the same period last fiscal year. The
higher sales volume for the second quarter was attributable to a substantial
increase in shipments to domestic and global public sector customers. Gross profit
increased $719,872 or 238%, to $1,021,861 from $301,989 for the same period last
year. The improvement in gross profit resulted from the increase in net revenues
coupled with a less than proportionate increase in cost of goods sold. Total operating
expenses for the six-month period ended March 31, 2002 decreased 7 percent to
$948,176 from 1,020,902 for the same period last year. Total operating expenses as a
percent of sales were 24% for the current period compared to 38% in the same period
during the prior year. The Company experienced
a $109,736 increase in non-operating expenses to $411,893 for the current six months
compared to $302,157 for the same period during the prior fiscal year. The increase
during the current period is principally due to a higher level of debt outstanding
than the same period last year which resulted in a larger amount of non-cash expenses incurred
from the amortization of discounts on the credit facility and notes
payable. The Female Health
Company, based in Chicago, owns certain worldwide rights to The Female Condomä including patents
which have been issued in the United States, United Kingdom, Japan, France, Italy,
Germany, Spain, The People’s Republic of China, Canada, New Zealand, South Korea
and Australia. The Female Condomä is the only
available product controlled by a woman that protects against sexually transmitted
diseases including HIV/AIDS, and unintended pregnancy. “Safe Harbor” statement under the Private Securities Litigation Reform Action of 1995: The statements in this release which are not historical fact are forward-looking statements based upon the Company’s current plan and strategies, and reflect the Company’s current assessment of the risks and uncertainties related to its business, including such things as product demand and market acceptance; the economic and business environment and the impact of government pressures; currency risks; capacity; efficiency and supply constraints; and other risks detailed in the Company’s press releases, shareholder communication and Securities and Exchange Commission filings. Actual events affecting the Company and the impact of such events on the Company’s operations may vary from those currently anticipated. For more information
about the Female Health Company, dial toll-free via fax, 1-800-PRO-INFO and enter
company code “FHCO”. Also, visit the Company’s web site at www.femalehealth.com and www.femalecondom.org. If you would like to
be added to an e-mail alert list, please send an e-mail to FHCInvestor@aol.com . Contacts:
Investors
Business / Product
Global Program
William R. Gargiulo, Jr.
Mary Ann Leeper, Ph.D. Mitchell Warren 231.526.1244 312.595.9123 845.353.8298
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