ThermaCell Reports Record 2Q99 Sales of $1.1
Million
SARASOTA, Fla., May 18 /PRNewswire/ -- ThermaCell Technologies, Inc. (Nasdaq: VCLL - news, VCLLW - news)
reported sales increased 58% year over year to a record $1,128,941 for the second quarter ended March 31, 1999. Sales
increased due to the first quarter acquisitions of T-Coast Pavers/Sealco Systems, Inc. and American Paints, Inc. and the first
full quarter of the Company's www.paint-n-stuff.com Internet home improvement site. The March quarter is seasonally a
slower sales period in the Sunbelt paint and coatings business.
Earnings before income taxes, depreciation and amortization (EBITDA) for the Company's traditional paint, coating and sealing
operations, before one-time restructuring and severance costs in the 1999 quarter, increased 42% to $85,000 compared to
$60,000 in the year ago quarter. Restructuring and severance costs of approximately $60,000 related to the Company's plan to
consolidate operations of its recent acquisitions in order to reduce costs and increase profitability.
After restructuring related costs, R&D expenses associated with the Company's VaxCell(TM) microsphere operation,
development of the e-commerce site, corporate overhead, and tax benefit, net loss for the quarter was $259,396 or $0.03 per
basic share on 8.5 million shares. This compares to a net loss of $91,451 or $0.03 per share on 3.6 million shares for the year
ago quarter, which included interest income of $13,080 from a then-recently completed financing and $45,045 from the
settlement of an outstanding payable in the Company's favor.
The increase in shares compared to the year ago quarter reflects financings used to fund the Company's roll up of Sunbelt paint,
coating and sealing operations, and the development of its VaxCell technology and e-commerce site.
John Pidorenko, Chairman, President and CEO of ThermaCell, commented, ''Due to the second quarter development of our
new Essential Stones(SM) VaxCell fragrance/filtering technology and expansion of www.paint-n-stuff site, we were not able to
restructure operations as fast as we had originally intended. This will pick up pace during the third quarter. Looking ahead,
during the second half we expect to continued record levels of sales, reduced costs as a percentage of sales, increasing
profitability, and going into the black.''
Recently, ThermaCell announced sample evaluation shipments of Essential Stones to privately held Noville, Inc., the Bath &
Body Works unit of Intimate Brands, Inc. (NYSE: IBI - news), and Tupperware Corporation (NYSE: TUP - news), among
others. ThermaCell also announced revenue-sharing agreements with the Petit marine paint unit of RPM Incorporated (NYSE:
RPM - news) and the Lancaster Schuermann Distributing unit of privately held Merit Group, Inc. to expand
www.paint-n-stuff.com with more than 10,000 name brand home, boating, and commercial building paint, hardware, supplies
and other improvement items for contractors, dealers and consumers.
ThermaCell Technologies, Inc. ( www.thermacell.com ) is a technologically enhanced manufacturer and marketer of paints,
coatings and building materials. The Company manufactures conventional paints, coatings and building materials through
traditional trade and retail venues. The Company also manufactures VaxCell microspheres, which provide greater insulation,
protection, strength, longevity and value in paints, coatings and building materials. The Company's www.paint-n-stuff.com web
site is one of the first home improvement e-commerce sites on the Internet.
THERMACELL TECHNOLOGIES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
1999 1998 1999 1998
Sales $1,128,941 $712,347 $1,940,351 $1,470,631
Cost of Sales 778,702 474,147 1,351,845 966,856
Gross Profit 350,239 238,200 588,506 503,775
Selling, General & Admin
Expenses 667,854 408,424 1,185,314 748,069
Loss from Operations (317,615) (170,224) (596,808) (244,294)
Other income (expense) (6,629) 55,910 (5,033) 64,912
Loss Before Income Taxes (324,244) (114,314) (601,841) (179,382)
Deferred Income Tax Benefit 64,848 22,863 120,367 35,877
Net Loss ($259,396) ($91,451) ($481,474) ($143,505)
Basic Loss per Common Share ($0.03) ($0.03) ($0.06) ($0.05)
Weighted Average Common
Shares Outstanding 8,452,420 3,620,235 7,593,643 3,378,748
Forward-Looking Statements: This news release contains certain ''forward-looking'' statements within the meaning of the
Private Securities Litigation Reform Act of 1995, which provides a new ''safe harbor'' for these types of statements. To the
extent statements in this news release involve, without limitation, product development and introduction plans, the Company's
expectations for growth, estimates of future revenue, expenses, profit, cash flow, balance sheet items, sell-through or backlog,
forecasts of demand or market trends for the Company's product categories and for the industries in which the Company
operates, or any other guidance on future periods, these statements are forward-looking statements. The Company assumes no
obligation to update forward-looking statements.
CONTACT: Gary Fishman or Kimberly Boshara at 212-889-1727.
SOURCE: ThermaCell Technologies Inc. |
