Headline: Allou Health & Beauty Care, Inc. Reports Fiscal Year 1999 Results with
Revenues Up 12 Percent:
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First Quarter Results Expected To Increase Dramatically Over Comparable Period
Last Year
BRENTWOOD, N.Y., June 8 /PRNewswire/ -- Allou Health & Beauty Care, Inc.
(AMEX:ALU), today announced that for the fiscal year ended March 31, 1999,
revenues reached a record $337.4 million versus $301.8 million in the prior
year, representing a 12 percent increase.
Net income prior to advertising expenses relating to the Company's
previously-owned internet subsidiary The Fragrance Counter, Inc. ("TFC"),
increased to $5,937,239 or 87 cents per share representing a 39 and 21 percent
increase, respectively when compared to last year's $4,280,210 or 72 cents per
share. Consolidated earnings for the combined Companies were
$1,347,855 or 20 cents per share.
David Shamilzadeh, senior vice president and chief financial officer of
Allou, stated, "As a result of the sale Allou retains 13 percent of the
Internet subsidiary, allowing it to share in its upside potential by acting as
a supply agent or vendor and fulfillment center for the electronic retailer.
Thus, the Company retained all the upside benefits while not being exposed to
any downside risk. For these reasons coupled with improvements being
witnessed in other segments of our business, management is confident that our
current fiscal year will return the Company to the double-digit growth it
experienced in the early 1990s. Furthermore the previously announced sale of
87 percent interest in TFC allowed Allou to realize a profit of $10 million."
Allou Health & Beauty Care, Inc. is the premier distributor of over
22,000 nationally advertised health and beauty aid products, prestige designer
fragrances, cosmetics, branded and generic prescription pharmaceuticals, and
branded non-perishable foods. Through its wholly-owned subsidiary Allou
Personal Care Corporation, the Company manufactures upscale hair care and skin
care products. Allou's account base consists of 4,200 independent drug and
convenience stores and over 140 of the leading national chain stores.
This release may include forward-looking statements concerning Allou's
intent, belief or current expectations with respect to, among other things,
trends affecting its financial condition or results of operations and its
business and growth strategies. Such forward-looking statement are not
guarantees of future performance and involve risks and uncertainties that may
cause actual results to differ materially from those projected, expressed or
implied. Allou does not undertake any obligations to update or revise any
forward-looking statements.
FINANCIAL HIGHLIGHTS
THREE MONTHS ENDED MARCH 31
1999 1998
Revenues $89,544,328 $77,210,228
Gross Profit 12,160,105 9,506,081
Net Income before losses
Related to TFC 1,609,266 N/A
* Per Share Net Income Before Losses
Related to TFC $0.21 N/A
Net Loss After Expenses Related to TFC(1) (1,170,164) 741,458
Diluted Per Share Net (Loss) Income ($0.15) $0.12
* Diluted Shares Outstanding Including
Common Stock Equivalents(2) 7,613,239 6,131,587
TWELVE MONTHS ENDED MARCH 31
1999 1998
REVENUES $337,389,261 $301,756,457
Gross Profit 45,707,959 39,155,605
Net Income Before Extraordinary and
Excluding Losses Related to TFC 5,937,239 N/A
Diluted Per Share Net Income Excluding
Extraordinary Income and Expenses
related to TFC $0.87 N/A
Net Income After Extraordinary Income
and Not Losses Related to TFC(3) 1,347,855 4,280,210
Diluted Per Share Net Income $0.20 $0.72
Diluted Shares Outstanding Including
Common Stock Equivalents 6,800,143 5,972,392
(1) Net losses attributable to The Fragrance Counter(TFC) for the quarter
ended 3/31/99 is ($4,546,658)
(2) The increase in Common Stock and Common Stock equivalents reflects in
part a completion of a private placement which became effective
December 1998 and employed Stock Options which became exercisable
(3) Net income for the twelve months ended 3/31/99 includes a one time net
gain of $1,860,000 representing conversion of a note due senior
officers into equity. Net Loss attributable to The Company's Internet
subsidiary is ($10,646,543)
SOURCE Allou Health & Beauty Care, Inc.
-0- 06/08/99
/CONTACT: David Shamilzadeh, Senior Vice President, Chief Financial
Officer of Allou Health & Beauty Care, Inc., 516-787-1220/ |
