$123.5MM in rev's, EPS $.16 according to the press release:
January 14, 1999 19:44
REXALL SUNDOWN INC files 1130 qtr 10-Q. Reports $123.5 mil tot rev and $0.16 EPS.
Results of Operations
Three Months Ended November 30, 1998 Compared to Three Months Ended
November 30, 1997
Net sales for the three months ended November 30, 1998 were $123.6
million, an increase of $12.8 million or 11.6% over the comparable period in
fiscal 1998. Of the $12.8 million increase, sales to retailers accounted for
$7.8 million, an increase of 11.1% over the comparable period in fiscal 1998.
The increase in sales to retailers was primarily attributable to the increase in
sales of Osteo-Bi-Flex(R) and increased sales and distribution to the Company's
existing customer base business, as well as new account distribution. Net sales
of Rexall Showcase increased by $5.4 million, an increase of 14.8% over the
comparable period in fiscal 1998. The $5.4 million increase was primarily due to
the expansion of Rexall Showcase's independent distributor base, the
introduction of new products and the inclusion of a full quarter of activity for
the Hong Kong operations, which commenced operations in
late October 1997, and the commencement of operations in Taiwan in November
1998. Rexall Showcase currently has operations in Hong Kong, Taiwan and South
Korea in Asia and anticipates commencing operations in Japan in fiscal 1999.
Currently, net sales within this region of the world are not material when
compared to the Company's total net sales. The Company will continue to monitor
the economic situation within this region. Rexall Showcase also has operations
in Mexico. The increase in net sales to retailers and for Rexall Showcase was
associated with increased unit sales, as pricing has remained essentially flat.
Net sales of the Company's mail order division, SDV(R), decreased by $0.4
million or 8.9% over the comparable period in fiscal 1998. Historically, the
Company has not allocated significant resources to this division.
Gross profit for the three months ended November 30, 1998 was $70.4
million, an increase of $3.9 million or 5.8% over the comparable period in
fiscal 1998. As a percentage of net sales, gross profit decreased from 60.1% for
the three months ended November 30, 1997 to 57.0% for the three months ended
November 30, 1998. The decrease in gross profit was primarily due to increased
overhead expenses associated with tripling the Company's manufacturing and
packaging capacity, which was built to support an anticipated higher level of
sales. Additionally, a shift in product mix in the sales to retailers division,
to products that generate lower gross profit, contributed to the decrease in
gross profit as a percentage of net sales.
Selling, general and administrative expenses for the three months ended
November 30, 1998 were $52.9 million, an increase of $8.3 million or 18.6% over
the comparable period in fiscal 1998. Of the increase, $1.7 million related to
the increase in sales commissions paid to Rexall Showcase's independent
distributors due to higher sales volumes, with the remaining increase primarily
due to the costs incurred by the Company in strengthening its infrastructure
including sales and marketing personnel, product development, increased costs
associated with our new administrative facilities and other personnel, to
support anticipated higher levels of sales in the future. These additional costs
were partially offset by an approximately $2.0 million reduction, in the first
quarter of fiscal 1999 as compared to the comparable period in the prior year,
in consumer advertising which resulted from the timing of new product releases.
As a percentage of net sales, selling, general and administrative expenses
increased from 40.3% for the three months ended November 30, 1997 to 42.8% for
the three months ended November 30, 1998, reflecting the lower than anticipated
sales volume.
(End of Item Excerpt)
----------FINANCIAL DATA SCHEDULE--------
PERIOD-TYPE 3-MOS
FISCAL-YEAR-END Aug-31-1999
PERIOD-END Nov-30-1998
CASH 64,942,243
SECURITIES 11,356,571
RECEIVABLES 51,029,547
ALLOWANCES 0
INVENTORY 85,836,120
CURRENT-ASSETS 225,681,905
DEPRECIATION 0
TOTAL-ASSETS 301,151,158
CURRENT-LIABILITIES 49,800,203
BONDS 0
PREFERRED-MANDATORY 0
PREFERRED 0
COMMON 686,873
OTHER-SE 250,279,969
TOTAL-LIABILITY-AND-EQUITY 301,151,158
SALES 123,549,961
TOTAL-REVENUES 123,549,961
CGS 53,168,436
TOTAL-COSTS 53,168,436
OTHER-EXPENSES 52,935,816
LOSS-PROVISION 0
INTEREST-EXPENSE 8,888
INCOME-PRETAX 18,716,748
INCOME-TAX 6,962,740
INCOME-CONTINUING 11,754,008
DISCONTINUED 0
EXTRAORDINARY 0
CHANGES 0
NET-INCOME 11,754,008
EPS-PRIMARY 0.16
EPS-DILUTED 0.16 |
