PHOENIX, Dec. 13 /PRNewswire-FirstCall/ -- Matrixx Initiatives, Inc. , a high growth, over-the-counter healthcare company that develops and markets products that provide consumers with “Better ways to get better(R),” today announced revised guidance for fiscal 2005. The Company expects total 2005 revenues to grow 45-50% compared to 2004 and fully-diluted earnings per share to grow 35-45%. In 2004 Matrixx reported net sales of $60.2 million and earnings per share of $0.52. This updates the Company’s previous guidance of a 25-35% increase in revenue and a 10-20% increase in earnings per share.
Carl J. Johnson, President and Chief Executive Officer of Matrixx Initiatives, said, “The increase in guidance for 2005 reflects ongoing growth of our Zicam(R) brand and the successful introduction of new products. We remain focused on building our brands for long term success and anticipate continued investments in marketing. This year’s positive results include our increased marketing activity to build consumer awareness and trial for the Zicam brand. They also reflect the strong introductory support of the new Nasal Comfort(TM) products. We expect fourth quarter marketing expense will increase approximately 75% from approximately $9.4 million incurred in the fourth quarter of 2004, and full year marketing expense will be approximately 50% higher than the $16.7 million realized in 2004.
We continue to be encouraged by the retail sales of our products. For the 12 weeks ended November 27, 2005, retail sales (three-outlet syndicated scanner data, not including our customer Wal-Mart) of Zicam products increased approximately 37% while the total cough/cold category increased approximately 2% compared to the same period last year.”
About Matrixx Initiatives, Inc.
Matrixx Initiatives, Inc. is engaged in the development, manufacture and marketing of over-the-counter healthcare products that utilize innovative drug delivery systems. Zicam, LLC, its wholly-owned subsidiary, produces, markets and sells Zicam(R) products in the cough and cold category; and recently launched a new brand, Nasal Comfort(TM), for nasal health. The Company’s flagship product Zicam Cold Remedy nasal gel, is a patented, homeopathic remedy that has been clinically proven to reduce the duration and severity of the common cold. In studies published in the October 2000 issue of ENT -- Ear, Nose and Throat Journal, and separately in the January 2003 issue of QJM: An International Journal of Medicine, the Zicam Cold Remedy product was shown to reduce the duration of the common cold. The Company also manufactures and markets a full line of Zicam brand pharmaceuticals, including Zicam Cold Remedy Chewables(TM); Zicam Cold Remedy Oral Mist(TM); Zicam Cold Remedy RapidMelts(TM); Zicam Allergy Relief; Zicam Cold Remedy Swabs(TM); Zicam Kids Size Cold Remedy Swabs(TM); Zicam Extreme Congestion Relief; Zicam Sinus Relief; Zicam Nasal Moisturizer, as well as seven Zicam Cough Mist(TM) products and four Zicam Cold & Flu relief items. For more information regarding Matrixx products, go to www.matrixxinc.com . To find out more about Matrixx Initiatives, Inc , visit our website at www.matrixxinc.com. For additional information, contact William Hemelt, Chief Financial Officer, 602-385-8888, or Bill Barba, Manager of Investor Relations, at 602-385-8881. Matrixx is located at 4742 N. 24th Street, Suite 455, Phoenix, Arizona 85016.
Matrixx Initiatives, Inc. Forward-Looking Statement Disclaimer: This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “plan,” “anticipate,” and other similar statements of expectation identify forward-looking statements and include statements regarding: (i) our expectation of exceeding our previously-issued guidance for 2005; and (ii) our expectation of increased marketing expense. These forward-looking statements are based on the Company’s current expectations and are subject to a number of risks and uncertainties, many of which cannot be predicted or quantified and are beyond the Company’s control. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations include the severity of the cold season, the possibility that future sales of Zicam products will not be as strong as expected, the possibility that supply issues may impact future sales of Zicam products, the possibility that the Company’s products may face increased competition or negative publicity, the potential financial impact of current and future product liability litigation, regulatory issues, or public relations challenges, the possibility of delays or other difficulties in implementing new product improvements and introducing to the marketplace new products and brands; and the possibility that expenses, including legal expenses, may exceed budgeted amounts. Other factors that could cause actual results to differ materially from the Company’s expectations are described in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2005, under the heading “Risk Factors” filed pursuant to the Securities Exchange Act of 1934. We do not undertake, and we specifically disclaim, any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Matrixx Initiatives, Inc.
CONTACT: William Hemelt, Chief Financial Officer, +1-602-385-8888, or BillBarba, Manager of Investor Relations, +1-602-385-8881, both of MatrixxInitiatives, Inc.
Web site: http://www.matrixxinc.com/
