CHICAGO, May 15 /PRNewswire-FirstCall/ -- The Female Health Company reported net revenues of $3,692,871 and net income attributable to common stockholders of $36,418 or $0.00 per diluted share for the three months ended March 31, 2006 compared to net revenues of $3,677,975 and net income attributable to common stockholders of $61,973 or $0.00 per diluted share for the three months ended March 31, 2005. The Company estimates that foreign currency exchange losses reduced net income by approximately $104,000 for the second quarter of fiscal year 2006.
Net revenues increased $14,896 for the current quarter compared with the same prior year period. The strong revenue performance the Company experienced during both periods was a result of an above average volume of units shipped to global public sector customers during the second quarter of both the current and prior fiscal year. The number of units shipped in the current quarter was the highest in the Company's history.
Gross profit decreased $35,701, or 2%, to $1,529,749 for the three months ended March 31, 2006 from $1,565,450 for the three months ended March 31, 2005.
The Company expects significant quarter to quarter variations due to the timing of large orders, production scheduling, and shipping of products.
The Company posted operating income for the three months ended March 31, 2006 of $54,686 compared to operating income of $103,287 for the same period last year.
Total operating expenses increased $12,900, or 1%, to $1,475,063 for the three months ended March 31, 2006 compared to $1,462,163 for the same period last fiscal year.
Selling, general and administrative expenses increased $9,589, or 1%, to $1,394,343 for the three months ended March 31, 2006 from $1,384,754 for the three months ended March 31, 2005. The Company experienced higher compensation costs that were essentially offset by reductions in amortization of intangible assets and bad debt expense.
The Company had net revenues of $7,100,933 and net income attributable to common stockholders of $96,370 or $0.00 per share for the six months ended March 31, 2006 compared to net revenues of $5,306,217 and a net loss attributable to common stockholders of $(1,161,292) or $(0.05) per share for the six months ended March 31, 2005. The Company estimates that foreign currency exchange losses reduced net income by approximately $196,000 during the six months ended March 31, 2006.
Gross profit increased 50% or $1,048,021 to $3,142,626 for the six months ended March 31, 2006 from $2,094,605 for the six months ended March 31, 2005. The improvement was a result of increased net revenues more than offsetting the less than proportionate increase in variable and fixed manufacturing costs.
Net revenues increased $1,794,716, or 34% for the six months ended March 31, 2006, compared with the same period last year. The growth was attributable to an increase in demand from global and domestic public sector customers. The number of units shipped in the first half of the current year was the highest in the Company's history.
The Company posted operating income for the six months ended March 31, 2006 of $156,663, a $1,199,209 increase from the operating loss of ($1,042,546) recorded for the same period last year.
Total operating expenses decreased $151,188, or 5%, to $2,985,963 for the six months ended March 31, 2006 compared to $3,137,151 for the same period last fiscal year.
Selling, general and administrative expenses decreased $213,776, or 7%, to $2,823,692 for the six months ended March 31, 2006 from $3,037,468 for the six months ended March 31, 2005. The decrease was due to a reduction of non-cash stock compensation partially offset by a rise in consulting fees.
The Female Health Company, based in Chicago, owns certain worldwide rights to FC Female Condom(TM) including patents which have been issued in the United States, United Kingdom, Japan, France, Italy, Germany, Spain, The People's Republic of China, Canada, New Zealand, South Korea and Australia. FC Female Condom(TM) is the only available product controlled by a woman that protects against sexually transmitted diseases including HIV/AIDS, and unintended pregnancy.
As previously announced, The Female Health Company will host an investor conference call at 11:00 a.m. Eastern time, May 16, 2006. Shareholders and other interested parties may participate in the conference call by dialing 877-412-8089 (international/local participants dial 973-582-2843 and referencing the conference code 7320729 a few minutes before 11:00 a.m. EST on May 16, 2006. A replay call will be available through May 23, 2006 by dialing 877-519-4471 (international callers 973-341-3080) and referencing the conference code is 7320729.
"Safe Harbor" statement under the Private Securities Litigation Reform Action of 1995: The statements in this release which are not historical fact are forward-looking statements based upon the Company's current plans and strategies, and reflect the Company's current assessment of the risks and uncertainties related to its business, including such things as product demand and market acceptance; the economic and business environment and the impact of government pressures; currency risks; capacity; efficiency and supply constraints; and other risks detailed in the Company's press releases, shareholder communications and Securities and Exchange Commission filings. Actual events affecting the Company and the impact of such events on the Company's operations may vary from those currently anticipated.
For more information about the Female Health Company, dial toll-free via fax, 1-800-PRO-INFO and enter company code "FHCO". Also, visit the Company's web site at http://www.femalehealth.com and http://www.femalecondom.org . If you would like to be added to an e-mail alert list, please send an e-mail to FHCInvestor@femalehealthcompany.com.
THE FEMALE HEALTH COMPANY Unaudited Condensed Consolidated Balance Sheet March 31, March 31, 2006 2005 Cash $1,736,555 $1,782,962 Restricted cash 195,942 - Accounts receivable, net 2,416,004 2,158,130 Inventories, net 962,349 842,735 Certificate of deposit 49,090 - Prepaid and other current assets 212,837 216,439 Total current assets 5,572,777 5,000,266 Certificate of deposit - 46,551 Other non-current assets 186,745 300,955 Net property, plant & equipment 322,841 311,899 TOTAL ASSETS $6,082,363 $5,659,671 Accounts payable $564,355 $317,681 Accrued expenses 644,815 562,223 Current maturities of obligations under capital leases - 11,251 Preferred dividends payable 5,587 9,848 Total current liabilities 1,214,757 901,003 Deferred gain on sale of facility 1,065,058 1,264,175 Total liabilities 2,279,815 2,165,178 Total stockholders' equity 3,802,548 3,494,593 TOTAL LIABILITIES AND EQUITY $6,082,363 $5,659,771 THE FEMALE HEALTH COMPANY Unaudited Condensed Consolidated Income Statements For the 3 Months Ended For the 6 Months Ended March 31, March 31, 2006 2005 2006 2005 NET REVENUES $3,692,871 $3,677,975 $7,100,933 $5,306,217 GROSS PROFIT 1,529,749 1,565,450 3,142,626 2,094,605 Advertising and promotion 58,677 14,020 108,782 18,608 Selling, general & administrative 1,394,343 1,384,754 2,823,692 3,037,468 Research and development 22,043 63,389 53,489 81,075 Total Operating Expenses 1,475,063 1,462,163 2,985,963 3,137,151 OPERATING INCOME (LOSS) 54,686 103,287 156,663 (1,042,546) Interest, net and other (income) expense (9,525) (4,537) (14,846) 48,388 Foreign currency transaction loss(gain) (11,968) 6,316 (5,264) (10,004) Pretax income (loss) 76,178 101,508 176,773 (1,080,930) Income taxes - - - - NET INCOME (LOSS) 76,178 101,508 176,773 (1,080,930) Preferred dividends 39,760 39,535 80,403 80,362 NET INCOME(LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS $36,418 $61,973 $96,370 $(1,161,292) BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE $0.00 $0.00 $0.00 $(0.05) Weighted avg. common shares - Basic and Diluted 23,833,768 23,325,438 23,713,186 22,737,552
The Female Health CompanyCONTACT: Investors, William R. Gargiulo, Jr., or Business - Product, KarenKing, both of The Female Health Company, +1-312-595-9123
