ThermaCell Reports Record Sales and Profitability
for FY98; Revenues Up 176%, Gross Profit Up 133%
SARASOTA, Fla., Dec. 30 /PRNewswire/ -- ThermaCell Technologies, Inc. (Nasdaq: VCLL - news, VCLLW - news)
announced that it achieved record sales and record profitability for the fiscal year ended September 30, 1998.
''We accomplished the goals we established for the year and are in a position to continue to significantly grow sales and
profits,'' said John Pidorenko, Chairman, President and CEO. ''Looking ahead, 1999 should be another exciting year as we
are on track with our plans to broaden our presence in the Sunbelt, sell our products via the Internet and integrate our recent
acquisitions, enabling us to become profitable in the second quarter ending March 31, 1999.''
For the year, sales increased 176% to a record $2,860,196 with a net loss of ($614,485) or ($0.18) per basic share
compared to a net loss of ($1,037,730) or ($0.47) per share for the 1997 period. For the same period, gross profits
increased 133% to a record $842,804 compared to $361,291 in 1997. Strong growth in sales and improved profitability
were due to continued growth of the Company's Scientific Coating and ThermaCool branded paint products and coatings and
the addition of Atlas Chemical, which was acquired July 1997, and Ladehoff Paints, which was acquired March 1998. Results
do not include recently announced acquisitions of American Paints, Sealco Systems or T-Coast Pavers, which were completed
during the current quarter.
For the fourth quarter ended September 30, 1998, sales increased 74% to $600,682 with a net loss of ($376,131) or ($0.10)
per basic share compared to a net loss of ($171,626) or ($0.08) per share for the 1997 period. Results for the quarter
reflected one-time charges of $70,000 against revenues and $150,000 against gross profit to account for aged receivables,
obsolete inventory and discontinued product lines related to the Atlas acquistion, and start-up costs of $50,000 related to the
Company's new VaxCell manufacturing facility.
Prior to one-time charges, fourth quarter sales increased 94% to $670,682 compared to the year ago quarter, gross profit
increased 67% to $117,308, operating loss declined 51% to ($136,544) and net loss declined 38% to ($106,131) or ($0.03)
per share. There were 3.6 million shares outstanding compared to 2.2 million in the year ago quarter primarily due to the effect
of the Company's 1997 initial public offering.
Subsequent to September 30, ThermaCell announced a series of transactions expected to increase the Company's sales run
rate to more than $9 million in fiscal 1999, excluding further acquisitions or other business developments currently under
consideration.
-- American Paints Acquisition -- ThermaCell acquired American Paints of
Pompano Beach, FL in November in an accretive deal that is expected to
add $2.5 million in annual revenues and increase operating profit by
$300,000-$400,000.
-- Sealco Systems and T-Coast Pavers Acquisitions -- ThermaCell acquired
Sealco Systems and T-Coast Pavers of Stewart, FL in an accretive deal
that is expected to add $2 million in revenue and generate $200,000 in
net profit in fiscal 1999. Sealco and T-Coast Pavers manufacture
outdoor sealing, weather proofing services and brick-like pavers.
-- Online Retail Paint Expansion -- Thermacell plans to expand its
website (www.thermacell.com) in early 1999 to become one of the first
companies to enter the online retail paint business, enabling consumers
to order electronically from ThermaCell's entire product line.
-- First VaxCell Agreement -- ThermaCell entered into its first agreement
to sell large quantities of VaxCell microspheres to Energy Strategies,
Inc., a distributor of insulation materials headquartered in Boca
Raton, FL., resulting in approximately $3 million in additional
revenues over the next three years.
ThermaCell Technologies, Inc. is a vertically integrated manufacturer and marketer of technologically enhanced coatings and
building materials that provide greater insulation, protection, strength, longevity and value at a lower cost than conventional
materials. VaxCell™ microspheres are uniform, hollow, glass bubbles that look like fine, white sand. In coatings, VaxCells™
create a barrier that is more effective and less expensive for sealing and weather-proofing. In building materials, VaxCells™
create greater product strength and endurance at a lower weight and cost.
Company contacts: Gary Fishman or Kimberly Boshara at 212-527-4808.
THERMACELL TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Quarter Ended Year Ended
September 30, September 30,
1998(a) 1997 1998(a) 1997
Sales $600,382 $345,365 $2,860,196 $1,036,376
Cost of sales 553,074 275,009 2,017,392 675,085
Gross profit 47,308 70,356 842,804 361,291
Selling, general
& admin. expenses 453,852 350,687 1,473,512 1,429,480
Operating loss (406,544) (280,331) (630,708) (1,068,189)
Depreciation &
amortization 73,416 20,686 231,880 71,037
Other income
(expense), net (519) 47,592 84,166 (157,278)
Loss before
income taxes (480,479) (253,425) (778,423) (1,296,504)
Deferred income
tax benefit 104,348 81,799 163,937 258,774
Net loss ($376,131) ($171,626) ($614,486) ($1,037,730)
Net loss per share ($0.10) ($0.08) ($0.18) ($0.47)
Weighted average
number of common
shares outstanding 3,677,183 2,217,106 3,677,183 2,217,106
(a) Includes one-time charges of $70,000 against revenues and $150,000 against gross profit to account for aged receivables,
obsolete inventory and discontinued product lines related to the Atlas acquisition, and start-up costs of $50,000 related to the
Company's new VaxCell manufacturing facility, for a total of $270,000 or $0.07 per share.
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.
SOURCE: ThermaCell Technologies, Inc. |
