1:08 PM
08/17/99
August 17, 1999 13:00
ThermaCell Reports Record Sales of $1.3 Million for 3Q99
SARASOTA, Fla.--(BUSINESS WIRE)--Aug. 17, 1999--ThermaCell Technologies, Inc. (NASDAQ: VCLL, VCLLW) reported significant sales growth and important progress reducing costs in the third quarter ended June 30, 1999.
Sales increased 66% to a record $1,310,625 compared to the year ago quarter primarily due to the first quarter acquisitions of T-Coast Pavers/Sealco Systems, Inc. and American Paints, Inc. Due to higher costs associated with the acquisitions, net loss was $205,218 or $0.02 per basic share on 8.7 million shares compared to net loss of $94,849 or $0.03 per basic share on 3.4 million shares. Net loss included approximately $19,430 in interest costs in the 1999 quarter related to financings and $19,773 in interest income in the 1998 quarter from the proceeds of a financing. The change in share count results from financings and acquisitions used to implement the Company's strategy of rolling up Sunbelt paint, coating and sealing operations, and developing its VaxCell technology and e-commerce site.
John Pidorenko, Chairman, President and CEO, commented that ThermaCell made important progress consolidating operations and reducing costs on a sequential quarter basis. "Last quarter we promised record sales, reduced costs, and increasing profitability," he said. "During the third quarter, we fulfilled that promise. Sales grew to record levels, we maintained gross profit margins, and we reduced selling, general and administrative costs 6.5% in dollars. As a result, we cut operating losses 25.4% from the second to the third quarter. The mission is to continue that progress in order to go into the black as quickly as possible."
With the expansion of distribution channels provided by American Paints, the Company anticipates substantial benefit from the sales of products to an expanded customer base. At the same time, the Company plans to continue to reduce duplication of personnel and consolidate its staffing, marketing, and production for more efficient and effective business operation.
ThermaCell Technologies, Inc. (www.thermacell.com) is a technologically enhanced manufacturer and marketer of paints, coatings and building materials. The Company manufactures conventional paints, coatings and building materials through traditional trade and retail venues. The Company also manufactures VaxCell microspheres, which provide greater insulation, protection, strength, longevity and value in paints, coatings and building materials. The Company's www.paint-n-stuff.com web site is one of the first home improvement e-commerce sites on the Internet.
THERMACELL TECHNOLOGIES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
------------------- ------------------
------------------- ------------------
June 30, June 30,
------------------- ------------------
------------------- ------------------
1999 1998 1999 1998
---- ---- ---- ----
Sales $1,310,625 $789,183 $3,250,976 $2,259,814
Cost of Sales 922,980 497,462 2,274,825 1,464,318
--------- --------- --------- ---------
Gross Profit 387,645 291,721 976,151 795,496
Selling, General
& Admin Expenses 624,738 430,055 1,810,052 1,178,124
--------- --------- --------- ---------
Loss from Operations (237,093) (138,334) (833,901) (382,628)
Other income
(expense) (19,430) 19,773 (24,463) 84,685
--------- --------- --------- ---------
Loss Before
Income Taxes (256,523) (118,561) (858,364) (297,943)
Deferred Income
Tax Benefit 51,305 23,712 171,672 59,589
--------- --------- --------- ---------
Net Loss ($205,218) ($94,849) ($686,692) ($238,354)
========= ========= ========= =========
Basic Loss per
Common Share ($0.02) ($0.03) ($0.09) ($0.08)
========= ========= ========= =========
Weighted Average
Common Shares
Outstanding 8,698,238 4,153,620 7,575,889 3,432,484
========= ========= ========= =========
----------------------------------------------------------------------
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. ----------------------------------------------------------------------
CONTACT: Thermacell Technologies
Gary Fishman
or
Kimberly Ferro
212-889-1727
THERMACELL TECHNOLOGIES - VCLL
Price 13/16
Net Change -1/32
Volume (000) 20
Day High 27/32
Day Low 25/32
THERMACELL TECH WRRT - VCLLW
Price 3/16
Net Change 0
Volume (000) 0
Day High 0
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