To: Jenna who wrote (18497 ) 11/12/1998 7:45:00 PM From: BigLouie Respond to of 120523
Jenna: CTEA - after the close GREAT earnings reported: Celestial Seasonings Reports 45% Revenue Increase and 71% Earnings Increase BOULDER, Colo., Nov. 12 /PRNewswire/ -- Celestial Seasonings, Inc. (Nasdaq: CTEA) today reported that revenues for its fourth quarter ended September 30, 1998 increased 45% to $23.1 million and diluted earnings per share increased 71% to $0.12 from $0.07. During the fourth quarter, sales of the company's specialty teas increased by more than 24% to nearly $18 million. The company said the sales increase was largely driven by its green teas, newly introduced wellness teas and its traditional herb teas. Sales of its new herbal supplements line accounted for more than $5 million in sales during the fourth quarter. "In the fourth quarter we increased our specialty tea market share," said Steve Hughes, CEO and President. "We also rapidly moved to the number two share in green tea and introduced a line of wellness teas, as well as four new flavors of chai. And we demonstrated good consumer acceptance and share results where we have been able to gain distribution for our herbal supplements. By providing the consumer with wellness teas and herbal supplements, we are the only national brand with all-natural, wellness products in multiple formats." The company also reported that revenues for the year ended September 30, 1998 increased 29% to $102.2 million. Net income for the year ended September 30, 1998 increased 19% to $6.8 million while diluted earnings per share increased 13% to $0.77 from $0.68. The company completed a 100% common stock dividend in September of 1998 which had the effect of a 2-for-1 stock split. The company announced the addition of Gregg A. Ostrander to its board of directors. Mr. Ostrander is the CEO of Michael Foods, Inc., a food processor headquartered in Minneapolis, Minnesota, and serves on the board of Arctic Cat, Inc. and the Minnesota Business Partnership. Celestial Seasonings, Inc. is the largest manufacturer and marketer of specialty hot teas in the United States. The company makes a broad selection of flavorful Herbal, Green, Wellness, Organic, and Chai teas. The company's most recognized tea products include Sleepytime(R) -- America's favorite herb tea -- Lemon Zinger(R), Red Zinger(R), and Tension Tamer(R). The company also markets a line of herbal supplements including Ginseng Energy(TM), Gingko Sharp(TM) and Mood Mender(TM) with St. Johns Wort. This press release contains forward-looking information that involves risks and uncertainties, and the company undertakes no obligation to update any forward-looking information. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the seasonality, consumer interest in the company's products, general economic conditions, consumer trends, consumer and store acceptance of new products, costs and availability of raw materials, competition and the effect of government regulation. The company's entry into the herbal supplements category is a relatively new endeavor and there is no assurance that this line will prove successful.