CHAD Therapeutics Reports Year End Results.Business Editors CHATSWORTH, Calif.--(BUSINESS WIRE)--June 5, 2002 CHAD Therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. , Inc. (AMEX AMEX See: American Stock Exchange :CTU CTU Colorado Technical University CTU Czech Technical University in Prague CTU Counter Terrorist Unit CTU Clinical Trials Unit CTU Catholic Theological Union CTU Chicago Teachers Union CTU Computer Training Unit CTU Control Unit ), producer and distributor of oxygen conserving con·serve v. con·served, con·serv·ing, con·serves v.tr. 1. a. To protect from loss or harm; preserve: devices and oxygen systems used by pulmonary pulmonary /pul·mo·nary/ (pool´mo-nar?e) 1. pertaining to the lungs. 2. pertaining to the pulmonary artery. pul·mo·nar·y adj. Of, relating to, or affecting the lungs. patients who need supplementary oxygen, today announced operating results for the fiscal year and fourth quarter ended March 31, 2002. Sales for the quarter were $4,108,000, an increase of $806,000 or 24% over the same quarter last year. For the year ended March 31, sales increased to $18,730,000, an increase of $6,572,000 or 54% over last year. The Company's net earnings for the fourth quarter were $996,000 ($0.10 per share) compared to a loss of $750,000 ($0.07 per share) for the same quarter last year. For the year ended March 31, net earnings were $1,157,000 ($0.12 per share) compared to a loss of $3,011,000 ($0.30 per share) for the previous year. The net earnings for both the fourth quarter and fiscal year in 2002 included an income tax benefit of $995,000 that resulted from recently enacted Federal Income Tax regulations extending the period during which net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. may be carried back. The Company has filed a refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies claim to recover these taxes. At March 31, 2002, after giving effect to the above carrybacks, the Company has approximately $1,003,000 and $3,178,000 in Federal and California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. , respectively, available to offset future taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. . Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs E. Jones, Chief Executive Officer, stated, "The increase in sales in the fourth quarter was led by a 46% increase in domestic sales. Sales of the OXYMATIC(R) 400 series conservers, which were introduced during the past fiscal year, continued to provide the basis for this increase. While a significant portion of the sales increase over the past year has been the result of market share recovery in the conserver con·serve v. con·served, con·serv·ing, con·serves v.tr. 1. a. To protect from loss or harm; preserve: market, we are still seeing upward momentum in the OXYMATIC(R) 400 series line. We continue to work on the development of additional products and product improvements that are designed to further improve our competitive position and provide the home oxygen industry with the widest selection of conservers on the market." Jones further stated, "Fourth quarter sales were affected by a decline in foreign sales that was in part caused by a change in distributors in two of the Company's more important international markets, Canada and Japan. This process is now essentially complete and we believe the new distribution relationships will provide an improved atmosphere for sales of CHAD's products in these countries." Jones also stated that, "The fourth quarter and year ended March 31, 2002, were characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by strongly increasing domestic sales and declining international sales. We believe there will not be a further decline in international sales and, while the market share recovery in the domestic conserver market will not continue at the same rate in the upcoming year, if sales continue at the same rate recorded in April and May, then domestic sales could increase 15% to 20% in the upcoming fiscal year. Based on this, we currently believe that CHAD will generate net earnings of between $1,300,000 and $1,500,000 ($0.13 to $0.15 per share) for the fiscal year ending March 31, 2003." The foregoing statements regarding prospects for future earnings, future sales trends for the OXYMATIC 400 series conservers and the introduction of products under development are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve certain risks and uncertainties. A number of important factors could cause actual results to differ materially from those contemplated by such forward-looking statements. These include the loss of one or more major customers, increased competition, the introduction of new products with perceived competitive advantages over the OXYMATIC 400 series conservers, changes or proposed changes in health care reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. which affect home care providers and the ability to anticipate and respond to technological and economic changes in the home oxygen market. Moreover, the success of the OXYMATIC 400 series conservers and products under development will depend on their efficacy, reliability and the health care community's perception of the products' capabilities and benefits, the degree of acceptance the products achieve among homecare providers and, with respect to products under development, obtaining timely regulatory approval. Additional factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Company's annual and quarterly reports filed with the Securities and Exchange Commission under the caption "Outlook: Issues and Risks."
CHAD THERAPEUTICS, INC.
Selected Financial Data
March 31, 2002
Year Ended Three Months Ended
March 31, March 31,
2002 2001 2002 2001
---- ---- ---- ----
Net Sales $18,730,000 $12,158,000 $4,108,000 $3,302,000
Interest Income,
Net 50,000 87,000 7,000 20,000
Earnings (Loss)
before Income
Taxes 167,000 (3,009,000) 2,000 (748,000)
Net Earnings (Loss) 1,157,000 (3,011,000) 996,000 (750,000)
Basic Earnings
(Loss) Per Share .12 (.30) .10 (.07)
Diluted Earnings
(Loss) Per Share .11 (.30) .10 (.07)
Balance As of
March 31,
2002 2001
---- ----
Cash $ 520,000 $ 1,059,000
Total Assets 12,323,000 10,788,000
Shareholders' Equity $ 10,373,000 $ 9,211,000
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