Press Release
Source: Allou Healthcare, Inc.
Allou Healthcare, Inc., Announces Nine Month and Third
Quarter Financial Results for the Period Ended December
31, 2002
Tuesday February 11, 8:22 am ET
BRENTWOOD, N.Y., Feb. 11 /PRNewswire-FirstCall/ -- Allou Healthcare, Inc. (Amex: ALU - News),
today announced that for the nine months ended December 31, 2002, the Company posted revenues of
$471.0 million, representing a gain of 11.5 percent over revenues in the comparable period a year earlier.
The increase in revenues resulted in net income of $6,561,619 or $.77 cents per diluted share. In the
comparable period in the prior year, the Company recorded revenues of $422.5 million and net income of
$4,501,698 or $.64 cents per diluted share.
Revenues for the third quarter ended December 31, 2002 were $156.8 million, resulting in net income of
$1,320,964, or $.16 cents per diluted share, versus revenues of $163.3 million and net income of
$1,991,522, or $.28 cents per diluted share in the comparable period in the prior year. Earnings per
share for the three months ended December 31, 2002 includes non-operating income of approximately
$.11 cents per share attributable to changes in the value of outstanding warrants to purchase Allou's
common A stock. In the same period of the prior year the changes in the value of these warrants
reduced net income by approximately $.01 cents per share. Third quarter results were negatively
impacted by expenses and other factors related to the previously announced warehouse fire that
occurred on September 25-26, 2002.
David Shamilzadeh, president and chief financial officer of Allou, stated, "Despite the impressive gain in
our revenues, our gross profits were squeezed as a result of changes in our business practices which
we made as a consequence of the Brooklyn, NY warehouse fire and the failure to date by the insurance
companies to make prompt payment of our insurance claim."
He added, "What is particularly gratifying is the continued growth experienced by our manufacturing
subsidiary, Stanford Personal Care Manufacturing, which enjoys gross profit margins exceeding 50
percent. The growth in this area necessitated our leasing a 125,000 sq.ft. facility located in Simi Valley,
CA to replace our present 85,000 sq.ft. leased manufacturing facility. Stanford's manufacturing of private
label high-end hair and skin care products for leading contractors, merchandisers and marketing
companies continues to gain market share. Stanford is recognized for its commitment to quality and
punctual service and for continuously improving its technology and manufacturing abilities, resulting in
increased market competitiveness. In addition, Stanford professionals assist in creating greater brand
identity by their unique packaging designs."
Allou Healthcare will conduct a conference call regarding this subject on Tuesday, February 11, 2003 at
4:15 P.M., EST. At that time additional information will be available. Hosting the conference call will be
David Shamilzadeh, president and chief financial officer. Call in number for conference is 1 (800)
915-4836. Webcast: (accessible for 60 days).
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