Chattem, Inc. Announces Expectations for Sales, Net Income and EBITDA for Second Quarter.Business Editors CHATTANOOGA, Tenn.--(BUSINESS WIRE)--June 9, 2000 Chattem, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CHTT), a leading marketer and manufacturer of branded consumer products, announced today that it expects net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and earnings per share before extraordinary items for its second fiscal quarter ended May 31, 2000 to be in the $78-80 million and $.62-.65 ranges, respectively. For the corresponding period of fiscal 1999, net sales were $83.4 million and earnings per share before extraordinary items were $.69. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the second fiscal quarter of 2000 should be in the $21-22 million range, compared to $23.6 million in the year ago period. The Company attributed the year-over-year net sales decline to continued weakness in its SUNSOURCE dietary supplements line and competitive pressures in the antiperspirant/deodorant marketplace experienced by Chattem's BAN line of products. In particular, Lever Brothers The British manufacturer Lever Brothers was founded in 1885 by William Hesketh Lever and his brother, James. In 1885 they bought a small soap works in Warrington. Using glycerin and vegetable oils such as palm oil, rather than tallow, to manufacture soap, they produced a launched DOVE antiperspirant antiperspirant /an·ti·per·spir·ant/ (-per´spir-ant) inhibiting or preventing perspiration, or an agent that does this. an·ti·per·spi·rant n. and deodorant deodorant /de·odor·ant/ (de-o´der-int) 1. masking offensive odors. 2. an agent that so acts. de·o·dor·ant n. in the first half of 2000 with annual reported media and promotional support of approximately $50 million. The balance of the Company's business, led by the strong performance of its topical analgesic analgesic (ăn'əljē`zĭk), any of a diverse group of drugs used to relieve pain. Analgesic drugs include the nonsteroidal anti-inflammatory drugs (NSAIDs) such as the salicylates, narcotic drugs such as morphine, and synthetic drugs franchise (FLEXALL, ICY HOT, ASPERCREME, SPORTSCREME and CAPZASIN), remains solid. The Company noted in particular that it has been generally pleased with the launch of DEXATRIM NATURAL and distribution of BAN Naturals which began in the second quarter and will be supported by heavy advertising and promotional spending in the third quarter. Chattem will release second quarter results on June 29, 2000. Statements concerning the Company's business outlook, anticipated profitability, sales or expenses and sales growth, together with other statements made in this press release that are not historical facts are "forward looking statements" as that term is defined under the federal securities laws. All forward looking statements are subject to the risks and uncertainties which could cause actual results to differ materially from those projected, including those described in the Company's filings with the Securities and Exchange Commission. |
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