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NUTRAMAX REPORTS FISCAL 1993 EARNINGS AND AGREEMENT TO ACQUIRE POWERS PHARMACEUTICAL CORPORATION

 GLOUCESTER, Mass., Nov. 16 /PRNewswire/ -- NutraMax Products, Inc. (NASDAQ: NMPC), a manufacturer and marketer of private label health and personal care products, today announced results for the fiscal year ended Oct. 2, 1993.
 For the year, the company had revenues of $31,144,000, a 24 percent increase over the prior year. Earnings were $3,519,000, or 43 cents per share, compared to $3,469,000, or 43 cents per share, reported for fiscal 1992.
 Revenues for the fourth quarter were $8,663,000, 21 percent above the comparable year-ago period. Fourth quarter earnings were $591,000, or 7 cents per share, compared to $986,000, or 12 cents per share, earned in last year's fourth quarter.
 The company noted that fourth quarter gross margins were below expectations, due in large part to the continued price pressure in the douche category from branded and private label competitors. In addition, initial start-up and integration costs associated with Optopics and the recent upgrading of the company's pharmaceutical manufacturing capability were also cited as factors contributing to the earnings results.
 Separately, the company announced that it has entered into an agreement to acquire Powers Pharmaceutical Corporation.
 Powers, based in Brockton, Mass., is the nation's leading manufacturer and distributor of private label cough drops and throat lozenges, and it also manufactures cough drops on a contract basis for a major national brand. Powers had sales of nearly $16 million in the fiscal year ended June 26, 1993, and produces an extensive line of solid dosage cough/cold products, including cough drops, throat lozenges, sugar-free products, vitamin C drops and liquid-center items. Its private label products are targeted at providing national brand equivalence at a lower cost to retailers and consumers.
 According to Donald E. Lepone, president and chief executive officer of NutraMax, "The addition of Powers broadens our product line, enhances the company's position as an important private label supplier to our retail customers, and reduces the company's reliance on any one product. Powers has a reputation for high quality products and excellent customer service. With the sales and marketing expertise of NutraMax, we anticipate being able to significantly increase sales of Powers' private label products."
 Lepone continued, "With the acquisition of Powers, the growing market share of Pediatric Electrolyte Oral Maintenance Solution, the strong performance of our existing product lines, and the ongoing roll-out of the company's new OTC ophthalmic products, we expect NutraMax will achieve record revenues for fiscal 1994."
 Completion of the acquisition of Powers is expected to occur shortly and is contingent upon certain conditions. Terms of the acquisition were not disclosed.
 NutraMax dominates private label sales in disposable douche, ready-to-use enema, Pediatric Electrolyte Oral Maintenance Solution and disposable baby bottles, and over the last year has begun marketing a broad line of OTC and Rx ophthalmics, plus clotrimazole-based vaginal yeast infection medications.
 NutraMax Products, Inc.
 Consolidated Operating Results
 13 Weeks Ended Year Ended
 Oct. 2, Oct. 3, Oct. 2, Oct. 3,
 1993 1992 1993 1992
 Net Sales $8,663,000 $7,169,000 $31,144,000 $25,151,000
 Gross Profit $2,364,000 $3,266,000 $11,546,000 $11,243,000
 Net Inc. $591,000 $986,000 $3,519,000 $3,469,000
 Earn. Per
 Share 7 cents 12 cents 43 cents 43 cents
 Weighted Avg.
 Shares Outstng. 8,424,000 8,094,000 8,235,000 8,090,000
 -0- 11/16/93
 /CONTACT: Donald E. Lepone, chief executive officer of NutraMax, 508-283-1800; or Lynn Morgen or Amy Weisman of Morgen-Walke Assoc., 212-850-5600, for NutraMax/
 (NMPC)


CO: NutraMax Products, Inc.; Powers Pharmeaceutical Corporation ST: Massachusetts IN: MTC SU: ERN TNM

DJ-JL -- NE011 -- 4963 11/16/93 10:08 EST
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Publication:PR Newswire
Date:Nov 16, 1993
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