ThermaCell First Quarter Sales Up 292%
MIAMI, Feb. 18 /PRNewswire/ -- ThermaCell Technologies, Inc. (Nasdaq: VCLL - news,VCLLW - news) announced a dramatic increase in sales and a significant decline in net loss for the first quarter ended December 31, 1997.
Sales increased 292% to $758,284 compared to $193,387, gross profit margin increased to 35% compared to 32%, and selling general and administrative expenses declined 22% to$339,645 compared to $435,050. This resulted in an 86% reduction in net loss to $52,054 or $0.02 per share -- the Company's best performance since it was founded --compared to a net loss of $362,725 or $0.47 per share. All comparisons are to the year ago quarter.
Sales increased as a result of expanded shipments, including the Company's microsphere enhanced ThermaCool(TM) line of thermal resistant paints and coatings along with an entire quarter's sales contribution from Atlas Chemical, a paint and coatings manufacturer which was acquired July 1997. Gross profit margin increased due to a change in the product mix, the addition of higher-margin Atlas products, and improved raw materials purchasing. SG&A declined as a result of the consolidation among the Company's operations in the wake of the Atlas acquisition. Results also benefited from a dramatic reversal in interest expense due to debt reduction in 1997, resulting in other income of $9,002 compared to other expense of $46,590.
John Pidorenko, Chairman, President and CEO of ThermaCell, commented, ''We're extremely pleased with the progress that we are making to develop the Company and our microsphere technology. Our focus during the first quarter was on restructuring operations and to produce close to break-even results. We plan to conclude this restructuring in the second quarter. In the second half, our focus will be aggressively marketing ThermaCool and Atlas' well-known regional brands to our existing customers as well as Atlas' expanded channels of distribution. We anticipate substantial benefit from sales to national customers with regional Florida presence. As sales grow, we anticipate additional benefits from economies of scale in material purchasing.''
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.
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 www.thermacell.com .
THERMACELL TECHNOLOGIES, INC.
Consolidated Statement of Loss
Three months ended December 31,
1997 1996
Net revenues $758,284 $193,387
Cost of revenues 492,709 131,547
Gross profit 265,575 61,840
Selling, general
& admin. expenses 339,645 435,050
Operating loss (74,070) (373,210)
Other income (expense), net 9,002 (46,590)
Loss before income taxes (65,068) (419,800)
Deferred income tax benefit 13,014 57,075
Net loss ($52,054) ($362,725)
Net loss per share ($0.02) ($0.47)
Weighted average number of
common shares outstanding 3,024,761 779,382
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.
SOURCE: ThermaCell Technologies, Inc.
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