Chattem Announces Preliminary Revenue and Earnings Per Share for 2004 First Quarter to Exceed Earlier Guidance; Preliminary Financial Impact of Debt Refinancing.Business Editors/Health/Medical Writers CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Feb. 13, 2004 Increase in Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Authorization 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, based upon preliminary results, it currently expects earnings per share for its fiscal first quarter ending February 29, 2004 prior to a charge related to its refinancing of debt will exceed the Company's earlier guidance of $.28-.30. The Company also expects its fiscal first quarter total revenues will exceed prior guidance of $58-60 million. Chattem cited strong performance by its Selsun blue Selsun Blue is a shampoo, developed by Ross Laboratories, a subsidiary of Abbott Laboratories and later bought by Chattem, that functions as an over-the-counter treatment for dandruff. (R) and topical analgesics Analgesics Definition Analgesics are medicines that relieve pain. Purpose Analgesics are those drugs that mainly provide pain relief. lines for the results. The Company also stated that it is experiencing better-than-expected initial sales of its Dexatrim(R) All In One bar. Chattem expects to release its complete fiscal first quarter 2004 financial results after the market closes on Thursday, March 18, 2004. In connection with the refinancing of existing debt separately announced today, the Company expects to record in its first fiscal quarter a non-recurring loss net of taxes from the early extinguishment of debt of $8.3 million, or $.42 per share. Chattem currently expects annual savings on interest expense from its refinancing of debt to be in the range of $.15-.17 per share, based upon expected initial pricing. The Company expects to complete the refinancing by the end of its first fiscal quarter. In addition, Chattem announced that its board of directors has approved an increase in its previously disclosed stock repurchase authority from $10 million to $20 million. Chattem, Inc. is a leading marketer and manufacturer of branded consumer products including health, beauty and skin care products. Leading brands include Icy Hot(R), Aspercreme(R) and Flex All(R) topical analgesics, Gold Bond powders, cream, lotion and foot spray, Selsun blue medicated medicated /med·i·cat·ed/ (med´i-kat?id) imbued with a medicinal substance. medicated contains a medicinal substance. dandruff dandruff, excessive flaking of skin from the scalp, apparent as dry or greasy diffuse scaling with variable itching. It is the sign of a skin disease, such as seborrhea or a fungal infection. shampoo, Garlique(R) dietary supplement, Dexatrim appetite suppressant Appetite suppressant Drug that decreases feelings of hunger. Most work by increasing levels of serotonin or catecholamine, chemicals in the brain that control appetite. and pHisoderm(R) facial cleansers. The Company's products target niche market segments and many are among the U.S. market leaders in their respective categories across food, drug and mass merchandisers. Chattem conducts a portion of its global business through subsidiaries in the United Kingdom and Canada. Paragraph 1 above of this press release constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, which contains a safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statements. The Company relies on this safe harbor in making such disclosures. The forward-looking statements are based on management's current beliefs and assumptions about expectations, estimates, strategies and projections for the Company. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expected or forecasted in such forward-looking statements. The Company undertakes no obligations to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. The risks, uncertainties and assumptions of the forward-looking statements include, but are not limited to the settlement on acceptable terms of product liability claims relating to the prior existence of PPA PPA 1. Palpation, Percussion & Ausculation 2. Pittsburgh pneumonia agent 3. Postpartum amenorrhea 4. Price per accession 5. Pure pulmonary atresia in Dexatrim; the availability of Chattem's $25 million excess product liability coverage to be determined in the rescission The abrogation of a contract, effective from its inception, thereby restoring the parties to the positions they would have occupied if no contract had ever been formed. By Agreement and declaratory judgment declaratory judgment In law, a judgment merely declaring a right or establishing the legal status or interpretation of a law or instrument. It is binding but is distinguished from other judgments or court opinions in that it includes no executive element (an order that lawsuit brought by Interstate Fire & Casualty ("Interstate"); the lack of availability, limits of coverage and expense related to product liability insurance, including the outcome of the rescission and declaration judgment action filed by Interstate; the reduction of available insurance coverage as proceeds are used to fund any product liability settlements or awards; the possibility of other product liability claims, including claims relating to the prior existence of ephedrine ephedrine (ĭfĕd`rĭn, ĕf`ĭdrēn'), drug derived from plants of the genus Ephedra (see Pinophyta), most commonly used to prevent mild or moderate attacks of bronchial asthma. in Dexatrim products or arising from the U.S. Food and Drug Administration's rule banning the sale of dietary supplements containing ephedra ephedra: see ephedrine. ; the ability of the Company to fund liabilities from product liability claims greater than its insurance coverage or outside the scope of insurance coverage; the possible effect of the negative public perception resulting from product liability claims on sales of Dexatrim products without PPA or ephedrine; the impact of brand acquisitions and divestitures; the impact of gains or losses resulting from product acquisitions or divestitures; product demand and market acceptance risks; product development risks, such as delays or difficulties in developing, producing and marketing new products or line extensions; the impact of competitive products, pricing and advertising; the Company's ability to sell and market Selsun blue internationally where it has only limited experience and infrastructure; constraints resulting from the financial condition of the Company, including the degree to which the Company is leveraged, debt service requirements and restrictions under indentures and loan agreements; government regulations; risks of loss of material customers; public perception regarding the Company's products; dependence on third party manufacturers; environmental matters; and other risks described in the Company's Securities and Exchange Commission filings. |
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