Lee Pharmaceuticals Announces Year-End Results
Net (loss) per share $(.02) $(.04) $(.13) $(.24)
In fiscal year 1999, net revenues increased 2% to $8,379,000 from
$8,252,000 in fiscal year 1998. The increase in net revenues was due to the
added volume generated from the Lee(R) Lip Ex(TM) lip balm line plus recently
acquired brands such as: Cheracol(R), Comhist(R), Entuss(R),
EVAC-U-GENO(R), Take-Off(R) and seven item purchased from Numark Laboratories,
Inc. These newly acquired brand acquisitions accounted for approximately
$1,229,000 or 15% of the Company's total net revenues. The increase in net
revenues was somewhat offset by the reduced sales of the nail category
products, certain over-the-counter items, and depilatories.
The Company's net loss before an extraordinary item was $167,000 or
4 cents loss per share as compared to fiscal 1998 net loss of $988,000 or
24 cents loss per share. The Company's extraordinary loss was related to the
Casmalia Disposal Site as discussed below.
The Company accrued a $374,000 charge in the first quarter of fiscal year
1999, as an extraordinary item, with respect to a possible liability. The
Company was notified by the EPA that the Company may have potential liability
for waste material it disposed of at the Casmalia Disposal Site ("Site")
located on a 252-acre parcel in Santa Barbara County, California. The EPA
stated that federal, state and local governmental agencies along with the
numerous private entities that used the Site for waste disposal will be
expected to pay their share as part of this settlement. The EPA has a
settlement offer to the Company with respect to the Site for a cost of
$373,950. The Company has elected to file relief from these obligations under
the financial hardships option in the EPA's response form. |
