Trippi, here's the full report on earnings:
Allou Health & Beauty Care, Inc. Reports Increase of 17 Percent in
Third Quarter Revenues
PR Newswire - February 16, 1999 08:16
Strong Growth in Core Health and Beauty Care Business and Internet Unit The Fragrance Counter
The Fragrance Counter Revenues Surge 291 Percent as Traffic Grows Nearly Four-Fold to 2.3 Million Visitors
BRENTWOOD, N.Y., Feb. 16 /PRNewswire/ -- Allou Health & Beauty Care, Inc. (Amex: ALU), today reported that
revenues in the third quarter ended December 31, 1998, totaled $89.5 million, a 17 percent increase over the same period
last year. Net income was $1,584,123 or 24 cents per share versus net income of $1,322,032 or 22 cents per share in the
comparable period in fiscal 1998. Third quarter results reflect the conversion of the Jacobs family loan into the equity of
Allou's online wholly owned subsidiary, The Fragrance Counter, resulting in a one time gain of 29 cents per share.
For the nine months revenues improved 10 percent to $247.8 million, resulting in a net income of $2,518,019 or 39 cents
per share. David Shamilzadeh, senior vice president and chief financial officer, stated, "These results reflect continued
strength in our core businesses, particularly prestige designer fragrances and a leap of 291 percent in our online retailing
subsidiary The Fragrance Counter, Inc. The Company was so encouraged by its Internet sales, that management plans to
add additional popular consumer products. As the Internet becomes the vehicle of choice for a growing number of
shoppers, The Fragrance Counter is well positioned to benefit from the explosion in E-commerce. Our entrance into this
area is providing Allou with excellent opportunities to expand its product and client base. Through solid positioning and
market insight, Allou will maintain its leadership as the number one Company for prestige designer fragrances and
cosmetics in the world of electronic retailing." The Company added that over 2.3 million shoppers visited The Fragrance
Counter during the third quarter, compared to 651,000 shoppers during the same period last year. This increase translated
into third quarter revenues of $1.5 million. The Fragrance Counter is the world's leading online retailer of prestige
fragrances and cosmetics currently offering its customers over 2,000 brand name products. Through exclusive agreements
with AOL and Internet portals: Yahoo!, Excite and Microsoft's MSN shopping, The Fragrance Counter has positioned
itself to attract the widest audience of shoppers on The World Wide Web.
Allou Health & Beauty Care, Inc. is the premier distributor of over 22,000 nationally advertised health and beauty aid
products, branded and generic prescription pharmaceuticals, prestige designer fragrances, cosmetics and branded
non-perishable foods. Through its wholly owned subsidiary Allou Personal Care Corporation, the Company manufactures
upscale hair care and skin care products. The Company also retails prestigious designer fragrances electronically through
its wholly owned subsidiary The Fragrance Counter. Allou's account base consists of 4,200 independent drug and
convenience stores and the leading national chain stores.
Financial Highlights
Allou Health & Beauty Care, Inc.
(consolidated)
Three Months Ended
December 31, 1998 1998 1997
Revenues $89,542,944 $76,349,440
Gross Profit 11,837,206 10,653,164
Net Income(l) 1,584,123 1,322,032
Diluted per Share Net Income 0.24 0.22
Diluted Shares Outstanding
Including Common Stock
Equivalents 6,468,964 6,025,579
Nine Months Ended
December 31, 1998 1998 1997
Revenues $247,844,933 $224,546,239
Gross Profit 33,547,854 29,649,524
Net Income(l) 2,518,019 3,538,752
Diluted per Share Net Income 0.39 0.60
Diluted Shares Outstanding
Including Common Stock
Equivalents 6,488,101 5,916,956
The Fragrance Counter, Inc.
Three Months Ended
December 31, 1998 1998 1997
Revenues $1,544,247 $395,456
Gross Profit 574,828 146,319
Net Loss (3,164,936) N/A
Diluted per Share Net Loss
before other Income (0.49) N/A
Diluted Shares Outstanding
Including Common Stock
Equivalents 6,468,964 N/A
Nine Months Ended
December 31, 1998 1998 1997
Revenues $2,539,712 $627,927
Gross Profit 979,934 232,333
Net Loss (6,099,885) N/A
Diluted per Share Net Loss (0.94) N/A
Diluted Shares Outstanding
Including Common Stock
Equivalents 6,488,101 N/A
(1) Consolidated Net Income for the Three Months and Nine Months ended
December 31, 1998 includes a one-time gain of $1,860,000 which is net
of deferred taxes. This gain occurred when the Jacobs Family
converted into equity a note in the amount of $3,000,000 due to the
Jacobs Family from the Company's wholly owned subsidiary The
Fragrance Counter Inc. As a result Allou Health & Beauty Care Inc.
has reduced its ownership in The Fragrance Counter Inc. to 82.35%.
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 statements 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.
SOURCE Allou Health & Beauty Care, Inc.
/CONTACT: David Shamilzadeh, Senior Vice President and Chief Financial
Officer of Allou Health & Beauty Care, Inc., 516-787-1312/
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