Chattem Reports Sharp Improvement in First Quarter 1997 Operating Results.CHATTANOOGA Chattanooga (chăt'ən  `gə), city (1990 pop. 152,466), seat of Hamilton co., E Tenn., on both sides of the Tennessee River near the Georgia line; inc. 1839. , Tenn.--(BUSINESS WIRE)--April 2, 1997--Chattem, Inc.
(NASDAQ NASDAQin 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 CHTT may refer to:
Chattanooga is the fourth-largest city in Tennessee (after Memphis, Nashville, and Knoxville), and the seat of Hamilton CountyGR6 based manufacturer of health and beauty aid products announced today record sales and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the initial three months of fiscal 1997 and improved net income and earnings per share for the period ended February 28, 1997. 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 for the quarter increased $9,249,000, or 50%, to $27,946,000 from $18,697,000 in 1996. Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the increased $1,904,000, or 110%, to $3,628,000 from $1,724,000 in 1996. The increase in income from continuing operations was offset by higher interest expense resulting from the acquisitions of GOLD BOND and HED HED High Energy Density HED Hall Effect Device HED Hypohidrotic Ectodermal Dysplasia HED Historiae Ecclesiasticae (Doctor of Church History) Doctor, academic degree) HED Human Energy Expenditure HED Human Experience Development BOND and HERPECIN-L which were acquired in tPREMSYN. The increase in income from operations is a result of the higher sales volume while advertis related expenses rose with the higher sales le from operations. The interest expense increnew line extensions including GOLD BOND Medicateaging. The s trong initial results of the new products and the relaunch Relaunch can refer to several things:
The Company continues to be excited about the growth potential for 1997. The full year impact of the acquisitions made in 1996, the continued success of the new products discussed above, the strong investment spending to support the brands and the ongoing cost control is expected to result in strong growth in sales and earnings over 1996 levels. -0-
CHATTEM, INC.
CONSOLIDATED STATEMENTS OF INCOME
IN THOUSANDS, EXCEPT PER SHARE DATA
For the Three Months Ended
Feb. 28, Feb. 29,
1997 1996 % Change
NET SALES $ 27,946 $ 18,697 49.5%
COSTS AND EXPENSES
Cost of sales 8,394 5,749 -46.0%
Advertising and promotion 11,267 7,001 -60.9%
Selling, general and administrative 4,657 4,223 -10.3%
Total costs and expenses 24,318 16,973 -43.3%
INCOME FROM OPERATIONS 3,628 1,724 110.4%
OTHER INCOME (EXPENSE):
Interest expense (3,798) (2,618) -45.1%
Investment income 241 655 -63.2%
Other, net 78 (2)
Total other income (expense) (3,479) (1,965) -77.0%
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 149 (241) 161.8%
(PROVISION) FOR BENEFIT FROM INCOME TAXES (13) 203 -106.4%
NET INCOME $ 136 $ (38) 457.9%
WEIGHTED AVERAGE NUMBER OF COMMON AND
COMMON EQUIVALENT SHARES OUTSTANDING 8,917 7,292 (0.01) 392.7%
Depreciation & amortization $ 1,463 $ 999
Capital expenditures $ 199 $ 276
Cash and cash equivalents $ 13,493 $ 3,746
Total debt $130,028 $ 88,336
Statements in this press release which are not historical facts, including statements about the Company's confidence, strategies and expectations about new and existing products and opportunities, the demand and acceptance of new and existing products and markets and the return on investments in products and markets are 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. These forward looking statements involve risks and uncertainties. These include, but are not limited to, product demand and market acceptance risks, product development risks, such as delays or difficulties in developing, producing and marketing new products; the impact of competitive products, pricing and advertising; constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. resulting from the financial condition of the Company, including the degree to which the Company is leveraged, debt service requirements and restrictions under bank loan agreements and indentures; and other risks described in the Company's Securities and Exchange Commission filings. CONTACT: Chattem, Inc. Robert E. Bosworth, 800/366-6077 Ext.287 or The Foristall Company, Inc. Lynn E. Foristall, 212/797-4646 |
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