I received a copy of the following Fact Sheet yesterday, which I presume is being distributed to potential investors. The market share data is very impressive, and the 151% growth in sales of "Zicam® Cold Remedy, our flagship product" refute the bogus claims from shorts that channel fill is responsible for most of the growth. I had to modify the format slightly so it would display properly here but the text is verbatim.
A Message from the President
As you may already be aware, Matrixx Initiatives, Inc. (NASDAQ: MTXX) this week upgraded its 2002 top-line revenue guidance, projecting profitability and more than 40% year-over-year growth. These record results represent the third year in a row that the company has grown more than 40 percent, indicating significant momentum as we grow our proprietary Zicam® brand of over-the-counter cold and allergy products.
Additionally, this exciting news comes at a time when much of the market is downgrading earnings for the year and issuing cautionary statements for 2003.
In our opinion, the timing and opportunity for new, long term investors in Matrixx couldn't be better. Recent data indicate that sales of Zicam® Cold Remedy, our flagship product, have grown more than 151 percent during the first half of this 2002-2003 cold season, with our market share up more than 5.8 points from last year to 9.5.
You previously may not have had the opportunity to learn more about Matrixx and its outstanding performance. However, a brief overview includes the following:
Doubled revenue growth to more than 90% in Q4 of 2002 (Year over Year)
Revenue growth 49% in 2001
Margins approximately 75%
Cash positive
Good cash position
Leading brand position (IRI data--fastest growing nasal/cold product
in the industry)
Strong, experienced management team/BOD (J&J, SC Johnson, Dial)
Continuing aggressive growth phase
Launched 5 new products in September 2002
Broke national ad campaign in October to launch cold season, support new and existing product sales
Proprietary technology with new clinical data validating clinical efficacy of Zicam
Efficient business model
Proven expertise in bringing consumer products to market
Established distribution channels (all major retailers)
Nasdaq Ticker Symbol: MTXX
Revenues (2001): $16.1 mil
Sectors: Healthcare & Consumer Products
Industry: Biotechnology & Drugs
Employees: 14 (12/31/2002)
Market Cap (mil): $80.31*
Recent Price: $8.73*
Shares Outstanding: 9.43 mil
Float: 9.2 mil
Excellent positioning – only product of its kind on the market
*As of 1/9/03
Matrixx is a unique company offering significant growth opportunity to long term investors. I would be glad to speak with you personally regarding our positive performance and outlook. Please take a look at our recent results and feel free to call Susan Bryan at (602) 870-4752 to coordinate our conversation. I look forward to hearing from you.
Sincerely,
Carl J. Johnson
President and Chief Executive Officer |
