Lee Pharmaceuticals Announces Year-End Results
LOS ANGELES, Dec. 23 /PRNewswire/ -- Lee Pharmaceuticals
(OTC Bulletin Board: LPHM) reported results for fiscal year ended September
30, 1998, as compared to fiscal year ended September 30, 1997.
A comparison of the operating results is as follows:
Three Months Ended Fiscal Year Ended
September 30 September 30
(000 omitted) (000 omitted)
1998 1997 1998 1997
Gross revenues $ 2,147 $ 2,815 $ 9,059 $ 9,675
Net revenues $ 1,955 $ 2,543 $ 8,252 $ 8,815
Operating (loss) income$ (147) $ 168 $ (458) $ 549
Net (loss) income $ (129) $ 41 $ (988) $ 29
Current assets $ 3,812 $ 4,589 $ 3,812 $ 4,589
Current liabilities $ 4,531 $ 4,475 $ 4,531 $ 4,475
Total assets $ 6,463 $ 7,910 $ 6,463 $ 7,910
Long-term debt $ 3,955 $ 4,404 $ 3,955 $ 4,404
Total stockholders'
deficiency $ (2,099) $ (1,111) $ (2,099) $ (1,111)
Per share:
Net (loss) income per
share $ (.04) $ .01 $ (.24) $ .01
Net revenues decreased during fiscal 1998 by $563,000 or 6% when compared
to fiscal 1997. The decrease in net revenues was due to the reduced sales
revenues of the nail category products and depilatories. The above decrease
in sales revenues was partially offset by volume generated from recently
acquired brands such as: Klutch(R) and Painalay(R), plus the in-house product
Lee(R) Lip-Ex(TM). The newly acquired brand acquisitions accounted for
approximately $445,000 or 5% of the Company's total net revenues. Also, the
Company's sales returns decreased approximately $53,000 or 6% when comparing
fiscal years 1998 and 1997.
Operating loss of $458,000, for fiscal 1998, resulted from a higher cost
of sales, increased selling and advertising expenses of $99,000 and increased
general and administrative expenses of $273,000. The net loss of $988,000 was
attributable to the aforementioned plus higher interest expense of $52,000 the
result of increased borrowings plus a higher rate of interest.
On September 28, 1998, the Company purchased certain assets of the
EVAC-U-GEN(R) brand of laxatives from Walker, Corp. & Co., Inc. In addition,
on October 1, 1998, the Company purchased from Roberts Pharmaceutical
Corporation certain assets of three over-the-counter products: Cheracol (cough
syrup) and two prescription drugs, Entuss (expectorant) and Comhist
(decongestant tablet).
Lee Pharmaceuticals is engaged in the development, purchase, manufacture,
and marketing of a range of consumer products, including nail extenders and
strengtheners, depilatories, over-the-counter drug items and
dental/orthodontic products. |
