ALOETTE COSMETICS REPORTS 1991 RESULTS
ALOETTE COSMETICS REPORTS 1991 RESULTS WEST CHESTER, Pa., March 2 /PRNewswire/ -- Aloette Cosmetics, Inc.
(NASDAQ: ALET) reported today total revenues of $24 million for fiscal year ended Dec. 31, 1991, a decrease of 2 percent from fiscal year 1990.
Net income for 1991 was $2 million or $.84 per share on 19 percent fewer weighted average shares outstanding, vs. $3.5 million or $1.20 per share in 1990. The decrease in net income was primarily attributable to a provision recognized in the fourth quarter for relocation and consolidation of certain manufacturing operations and interest costs related to the April 1991 repurchase of approximately 780,000 shares of the company's common stock, which reduced net income by approximately $435,000 and $335,000, respectively. For the fourth quarter of 1991, total sales of $6.4 million were down 1 percent from last year and the company incurred a net loss of approximately $200,000 or $.09 per share, primarily due to the provision for relocation and consolidation of operations and the effect of the company's stock repurchase referenced above. In addition, fourth quarter results were further impacted by after-tax charges of approximately $300,000 for certain litigation expenses, increased costs associated with the transfer of Aloette's skin care production to an outside manufacturer, and certain inventory adjustments. The provision for relocation and consolidation of manufacturing operations is $750,000 before taxes and involves the consolidation of the company's Ontario, Canada, division to Dallas to be implemented in 1992. The decision to take this action resulted from a review and assessment by the company of its manufacturing strategies and is expected to result in a more efficient utilization of its resources. Aloette Cosmetics, a franchisor, direct marketer and manufacturer of skin care products and cosmetics, is located in West Chester. As of Dec. 31, 1991, the company's products were being sold by more than 100 franchises worldwide. ALOETTE COSMETICS, INC. Financial Summary (In thousands, except per-share data) Pct. Year ended Dec. 31 1991 1990 Change Total revenues $23,986 $24,353 (2) Total costs and expenses 21,031(A) 19,548 8 Operating income (loss) 2,955 4,805 (39) Income (loss) before income taxes 3,387 5,862 (42) Net income (loss) 2,019 3,536 (43) Earnings (loss) per share $.84 $1.20 (30) Dividends per average share .32 .32 -- Weighted average shares 2,400 2,948 (19) Pct. Three months ended Dec. 31 1991 1990 Change Total revenues $6,353 $6,385 (1) Total costs and expenses 6,616(A) 5,224 27 Operating income (loss) (263) 1,161 (123) Income (loss) before income taxes (318) 1,427 (122) Net income (loss) (196) 862 (123) Earnings (loss) per share ($.09) $.29 (131) Dividends per average share .08 .08 -- Weighted average shares 2,155 2,950 (27) (A) Includes a provision of $750,000 for relocation and consolidation of operations. /delval/ -0- 3/2/92 /CONTACT: Jean M. Lewis, vp-finance of Aloette Cosmetics, 215-692-0600/ (ALET) CO: Aloette Cosmetics, Inc. ST: Pennsylvania IN: SU: ERN
MP-KA -- PH027 -- 4075 03/02/92 14:52 EST
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|Date:||Mar 2, 1992|
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