The Female Health Company Reports Record First Quarter FY2013 Operating Results
--Diluted E.P.S. Increase 33% to $0.12, Versus $0.09 in Prior-Year Quarter
--Selected Highlights: -Unit sales increase 13% to 17.1 million units -Net
revenues rise 15% to $9.9 million -Gross profit improves 19% to $6.0 million (60%
of net revenues) -Operating income increases 29% to $3.6 million -Diluted EPS
increase 33% to $0.12
CHICAGO, Jan. 30, 2013 /PRNewswire via COMTEX/ -- The Female Health Company
(nasdaq-cm:FHCO), which manufactures and markets the FC2 Female Condom, today
reported its financial results for the first quarter of FY2013. The Company will
host an investor conference call today at 11:00 a.m. Eastern Time to discuss
these operating results and other topics of interest (see details below).
"We are pleased with the outstanding results, including record gross profit and
operating income, achieved by the Company in the first quarter of our 2013 fiscal
year," noted O.B. Parrish, Chairman and Chief Executive Officer of The Female
Health Company. "The 13% increase in first quarter unit sales reflects increasing
global demand for the FC2 Female Condom. In Fiscal 2012, we expanded our FC2
production capacity in Malaysia by approximately 20% in anticipation of continued
growth in demand. We currently have the capability to manufacture approximately
100 million FC2 Female Condoms annually, compared with total shipments of 61.6
million units in the fiscal year ended September 30, 2012."
"We believe the rising demand for FC2 reflects a growing awareness of the dual
protection that FC2 provides against both unintended pregnancy and sexually
transmitted infections, including HIV/AIDS," continued Parrish. "FC2 makes an
important contribution to saving lives and reducing healthcare costs,
particularly in light of the fact that HIV/AIDS remains the leading cause of
death worldwide among women 15 to 44 years of age."
For the three months ended December 31, 2012, FC2 unit sales increased 12.8% when
compared with the first quarter of FY2012, to 17.1 million units, which
represents an all-time record for first quarter unit sales. Net revenues
increased 14.8% to a first quarter record of $9.9 million, compared with $8.6
million in the three months ended December 31, 2011.
Gross profit increased 18.9% to a record $6.0 million, or 60.2% of net revenues,
in the most recent quarter, compared with $5.0 million, or 58.1% of net revenues,
in the first quarter of FY2012.
Operating expenses for the quarter ended December 31, 2012 increased 5.9% to $2.4
million, versus operating expenses of $2.2 million in the first quarter of
FY2012. The increase was primarily due to higher compensation expense and
increased investment in education and training.
Operating income increased 29.4% to a record $3.6 million in the three months
ended December 31, 2012, compared with $2.8 million in the prior-year quarter.
The increase was primarily due to higher revenues and improved gross profit
margins.
The Company reported net income of $3.5 million, or $0.12 per diluted share, in
the first quarter of FY2013, a 32.9% increase over net income of $2.7 million, or
$0.09 per diluted share, in the first quarter of FY2012. Currency losses of $0.04
million and $0.05 million were recorded during the quarters ended December 31,
2012 and 2011, respectively. The Company recorded net tax expense of $0.03
million and $0.07 million during the quarters ended December 31, 2012 and 2011,
respectively.
"As noted in previous press releases, timing issues regarding the receipt and
shipment of large orders can significantly impact the Company's operating
results, positively or negatively, illustrating the difficulty of providing
specific revenue and operating income guidance," added Parrish. "Management
intends to provide general comments each quarter regarding the Company's outlook,
based on information available at the time. Currently, we believe that, following
a record year in FY2012 and a strong first quarter, the Company will experience
continued revenue and operating income growth in Fiscal 2013."
Investor Conference Call
As previously announced, the Female Health Company will host an investor
conference call at 11:00 a.m. Eastern Time, today, January 30, 2013, to discuss
its first quarter operating results and other topics of interest. Shareholders
and other interested parties may participate in the conference call by dialing
1-877-374-8416 (local or international participants dial 412-317-6716) and asking
to be connected to "The Female Health Company" conference call, a few minutes
before 11:00 a.m. EST.
A replay of the conference call will be available one hour after the call through
9:00 a.m. EST on Wednesday, February 13, 2013 by dialing 877-344-7529 (local or
international callers dial 412-317-0088) and entering the conference ID#
10023963.
About The Female Health Company
The Female Health Company, based in Chicago, Illinois, manufactures and markets
the FC2 Female Condom (FC2), which is available in the U.S. and approximately 138
other countries globally. The Company owns certain worldwide rights to the FC2
Female Condom, including patents that have been issued by the U.S., the European
Union, Canada, Australia, South Africa, Japan, The People's Republic of China,
Spain, Mexico, Greece, Turkey and the African Regional Intellectual Property
Organization (ARIPO), which includes Botswana, The Gambia, Ghana, Kenya, Lesotho,
Malawi, Mozambique, Namibia, Sierra Leone, Sudan, Swaziland, Uganda, Tanzania,
Zambia and Zimbabwe. FC2 patent applications are pending in various countries.
The FC2 Female Condom is the only available FDA-approved product controlled by a
woman that offers dual protection against sexually transmitted diseases,
including HIV/AIDS, and unintended pregnancy. The World Health Organization (WHO)
has cleared FC2 for purchase by U.N. agencies.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of
1995:
The statements in this release which are not historical fact are "forward-looking
statements" as that term is defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements in this release include statements
regarding underlying demand for FC2 and the outlook for FY 2013. These statements
are based upon the Company's current plans and strategies, and reflect the
Company's current assessment of the risks and uncertainties related to its
business, and are made as of the date of this release. The Company assumes no
obligation to update any forward-looking statements contained in this release as
a result of new information or future events, developments or circumstances. Such
forward-looking statements are inherently subject to known and unknown risks and
uncertainties. The Company's actual results and future developments could differ
materially from the results or developments expressed in, or implied by, these
forward-looking statements. Factors that may cause actual results to differ
materially from those contemplated by such forward-looking statements include,
but are not limited to, the following: product demand and market acceptance;
competition in the Company's markets and the risk of new competitors and new
competitive product introductions; the Company's reliance on its international
partners in the consumer sector and on the level of spending on the female condom
by country governments, global donors and other public health organizations in
the global public sector; the economic and business environment and the impact of
government pressures; risks involved in doing business on an international level,
including currency risks, regulatory requirements, political risks, export
restrictions and other trade barriers; the Company's production capacity,
efficiency and supply constraints; and other risks detailed in the Company's
press releases, shareholder communications and Securities and Exchange Commission
filings, including the Company's Form 10-K for the year ended September 30, 2012.
Actual events affecting the Company and the impact of such events on the
Company's operations may vary from those currently anticipated.
For more information about the Female Health Company visit the Company's website
at femalehealth.com and femalecondom.org. To be added to
the Company's e-mail alert list, please send an e-mail to
FHCInvestor@femalehealthcompany.com.
(Financial Highlights Follow)
The Female Health Company
Unaudited Condensed Consolidated Balance Sheets
December 31,September 30,
20122012
Cash$4,275,254$5,290,780
Restricted cash55,5094,682
Accounts receivable, net7,840,1047,268,917
Income tax receivable28,44327,369
Inventory, net1,823,1991,458,199
Prepaid expenses and other current assets593,380624,268
Deferred income taxes2,152,0002,152,000
Total current assets16,767,88916,826,215
Other non-current assets121,981122,336
Plant and equipment, net2,448,0982,349,876
Deferred income taxes11,148,00011,148,000
Total assets$30,485,968$30,446,427
Accounts payable$1,499,399$1,775,327
Accrued expenses and other current liabilities 1,771,0591,095,732
Accrued compensation644,9912,964,812
Accrued dividends1,733,68024,570
Total current liabilities5,649,1295,860,441
Deferred rent84,91190,902
Deferred grant income76,44282,650
Deferred income taxes192,821194,244
Total liabilities6,003,3036,228,237
Total stockholders' equity24,482,66524,218,190
Total liabilities and stockholders' equity$30,485,968$30,446,427
The Female Health Company
Unaudited Condensed Consolidated Income Statements
Three Months Ended
December,
20122011
Net revenues$9,910,227$8,634,442
Cost of sales3,944,0283,618,298
Gross profit5,966,1995,016,144
Operating expenses2,365,1652,232,864
Operating income3,601,0342,783,280
Interest and other (expense) income(4,244)355
Foreign currency transaction loss(37,267)(52,306)
Income before income taxes3,559,5232,731,329
Income tax expense25,67771,385
Net income$3,533,846$2,659,944
Net income per basic common share outstanding$ 0.12$ 0.10
Basic weighted average common shares outstanding28,333,36027,480,011
Net income per diluted common share outstanding$ 0.12$ 0.09
Diluted weighted average common shares outstanding 28,694,90328,883,710
Cash dividends declared per common share$0.12$0.10 |
