ThermaCell Reports Continued Progress During Shortened
FY97 Reporting Period
MIAMI, Jan. 14 /PRNewswire/ -- ThermaCell Technologies, Inc. (Nasdaq: VCLL - news,
VCLLW - news) reported continued progress during a shortened fiscal 1997 with the Company's
plan to build up capacity in order to expand sales of its ThermaCool(TM) line of thermal
resistant paints and coatings.
As a result of ThermaCell's continued progress, John Pidorenko, Chairman, President and CEO,
said he was pleased to announce that the Company's auditing firm, Cherry Bekaert & Holland,
L.L.P., of Clearwater, Florida, has given an unqualified opinion on ThermaCell's fiscal 1997
results compared to a qualified opinion last year.
The Company reported results for a 10 month period ended September 30, 1997 compared to a
12 month period ended November 30, 1996 because it is changing its fiscal year to better reflect
seasonal trends, which anticipate stronger demand in the spring, summer and fall.
Revenues for the 10 month period ended September 30, 1997 increased 68% to a record
$1,036,376 compared to $615,845 for the 12 month period ended November 30, 1996. The
increase was due to expanded sales from the Company's C. F. Darling Paint & Chemicals unit,
which was acquired November 1995, and two months contribution from the Company's Atlas
Chemical unit, which was acquired July 1997. Atlas, a paints and coatings company founded in
1919, had $2.4 million in sales for the year ending June 30, 1997.
Selling, general and administrative expenses as a percentage of revenues declined due to the
increased operating leverage the Company has begun to obtain from the Atlas acquisition. As a
result, the fiscal 1997 net loss was virtually flat at $1,037,730 or ($0.47) per share, on
2,217,106 shares, compared to the 1996 net loss of $1,033,553 or ($1.34) per share, on 771,154
shares. Share count increased due to the Company's successful March 1997 initial public
offering which raised $5.3 million to fund ThermaCell's corporate plan.
''We feel very good about what we accomplished in our shortened fiscal 1997 toward
implementing our plan, knitting together our acquisitions, building shareholder value and setting
the stage for 1998,'' said Mr. Pidorenko. He noted that ThermaCell ended the fiscal 1997 period
with:
-- Increased net sales run rate of more than $3,000,000 compared to
approximately $615,000 in fiscal 1996.
-- Increased current assets of $1,386,407 compared to $456,795 in fiscal
1996.
-- Increased current ratio of 1.32 compared to 0.16 in fiscal 1996.
-- Nominal debt of $98,500 compared to approximately $2.0 million of debt
in fiscal 1996.
-- Increased stockholders' equity of $2,428,090 compared to a deficit of $1,363,939 in fiscal
1996.
ThermaCell was founded to develop, manufacture and market insulating materials and coatings
using an innovative, microsphere insulation technology. Microspheres are uniform, hollow,
glass bubbles that look like fine, white sand. Mixed in paints, coatings and other building
materials, microspheres create a barrier that can be more effective and less expensive than
conventional insulation. The first phase of the Company's strategy is to acquire manufacturing
and distribution capacity in paints and coatings in order to systematically introduce its
ThermaCool product line.
As previously reported, tests on ordinary shingles on Florida homes painted with ThermaCool
Roof Coating dramatically reduced temperatures by more than 30%, reducing wear on the roof
outside and air conditioning needs inside. NASCAR Racing Teams report that ThermaCool
Racing Products reduce the extraordinary heat in driver compartments by 50-60%, reducing
wear on equipment as well as drivers. For more information, contact ThermaCell
investor/public relations at 212-527-4808 or visit the website www.thermacell.com.
Forward-Looking Statements: This news release contains certain ''forward- looking'' statements
within the meaning of the Private Securities Litigation Reform Act of 1995, which provides a
new ''safe harbor'' for these types of statements. To the extent statements in this news release
involve, without limitation, product development and introduction plans, the Company's
expectations for growth, estimates of future revenue, expenses, profit, cash flow, balance sheet
items, sell-through or backlog, forecasts of demand or market trends for the Company's product
categories and for the industries in which the Company operates, or any other guidance on future
periods, these statements are forward-looking statements. The Company assumes no obligation
to update forward-looking statements.
THERMACELL TECHNOLOGIES, INC.
Consolidated Statement of Loss
10 months ended 12 months ended
September 30, 1997 November 30, 1996
Net revenues $1,036,376 $615,845
Cost of revenues 675,085 394,867
Gross profit 361,291 220,978
Selling, general
& admin. expenses 1,500,517 1,280,339
Operating loss (1,139,226) (1,059,361)
Other expense, net (157,278) (185,884)
Loss before income taxes (1,296,504) (1,245,245)
Deferred income tax benefit 258,774 211,692
Net loss ($1,037,730) ($1,033,553)
Net loss per share ($0.47) ($1.34)
Weighted average number of
common shares outstanding 2,217,106 771,154
SOURCE: ThermaCell Technologies, Inc. |
