PHOENIX, Jan. 4 /PRNewswire-FirstCall/ -- Matrixx Initiatives, Inc. , announced today that it expects 2006 net sales growth of 5-7% over the $90.5 million recorded in 2005. Based on lower than planned sales, the Company expects to report a net loss for the fourth quarter of 2006, resulting in projected 2006 net income within a range of between $4.2 million and $5.0 million, or $0.41 to $0.49 per share.
Carl Johnson, President and Chief Executive Officer, said, “The Zicam(R) Cold Remedy products continue to demonstrate strong retail sales growth. For the 12 weeks ended December 3, 2006, retail sales (three-outlet syndicated scanner data, not including our customer Wal-Mart) of Zicam cough/cold products increased approximately 23% (with Zicam Cold Remedy products increasing 37%), and our market share increased 0.4% points to 3.1%, while the total cough/cold category sales increased 9% compared to the prior year. However, this year’s overall growth has been affected by the slow start to the cold season. While the incidence of illness increased in late December, major retailers did not react as expected. While disappointed with the fourth quarter factory shipments, we are pleased that we will reach record annual sales and encouraged that our retail consumption growth rate has outpaced shipments.”
Mr. Johnson continued, “Our strategy related to our Zicam Cold Remedy products remains unchanged and we intend to capitalize on the fundamental strengths of the Zicam brand and introduce new television advertising for the Cough and Flu Relief products in January 2007.”
With today’s announcement, Matrixx Initiatives said it is replacing any previous sales and earnings guidance.
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) and Nasal Comfort(TM) products in the cough and cold category. 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 in five oral delivery forms (including the new Zicam RapidMelts(TM) + Vitamin C and Zicam ChewCaps(TM)); three Zicam allergy and congestion relief products, four Zicam Cough Spray items and our new Zicam Cough Melts, four Zicam Cold & Flu Relief products, and two Nasal Comfort products. For more information regarding Matrixx products, go to www.Zicam.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, Director 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 “expect,” “intend,” and other similar statements of expectation identify forward-looking statements and include statements regarding: (i) our belief that previously announced guidance will not be met; (ii) our expectation of reporting a net loss for the fourth quarter of 2006 and 2006 net income within a range of between $4.2 million and $5.0 million, or $0.41 to $0.49 per share; and (iii) our intention to introduce new television advertising for our cough and flu relief products and launch new advertising for our Cold Remedy line in January 2007. 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: (a) the finalization of our fiscal 2006 financial statements; and (b) any audit adjustments to our fiscal 2006 financial statements. Other factors that could cause actual results to differ materially from the Company’s expectations are described in the Company’s Annual Report on Form 10-K filed in March 2006, 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, Director of Investor Relations, +1-602-385-8881, both of MatrixxInitiatives, Inc.
