SAN DIEGO, April 29, 2002 (PRIMEZONE) -- Women First HealthCare, Inc. (Nasdaq:WFHC) today announced a first quarter 2002 profit of $243,000, or $0.01 per fully diluted share, on total revenues of $9.5 million. The first quarter profit compares to a net loss of $1.0 million, or $0.05 per share, in the prior year period. Basic per share calculations for the current quarter and prior year are based on 22.6 million shares and 17.6 million shares, respectively. The fully diluted per share calculation for the current quarter is based on 24.0 million shares.
The Company reported total net revenue of $9.5 million in the current quarter compared to $7.1 million in the prior year, an increase of $2.4 million or 33.1%. The Pharmaceutical Division, which recorded revenues from sales of six prescription products in the first quarter 2002 compared to only two products in the prior year, accounted for all of the revenue growth. Consumer Business Division revenue for the current quarter was unchanged from the prior year.
Commenting on the results, Edward F. Calesa, Women First chairman, president and CEO, said, "This is our second consecutive quarter of profitability, and we continue to be pleased with our progress in all phases of our business. Our lead product, Esclim(tm), was placed on the Performance Drug List at AdvancePCS effective January 1, 2002, and we have already begun to see the benefits of being associated with the nation's largest Pharmacy Benefit Manager (PBM). In addition, effective March 2002, both Caremark Inc. and Express Scripts, Inc. selected Esclim(tm) in a preferred position, giving us coverage at three of the four largest PBMs in the country. We have grown revenue, earned a profit, controlled expenses, and increased both working capital and shareholder equity."
The Company reports results in two segments as follows:
The Pharmaceutical Division's net revenue for the current quarter totaled $7.5 million as compared to $5.1 million for the comparable prior year period. The Pharmaceutical Division accounted for 78.6% of total net revenues in the first quarter 2002, up from 71.4% in last year's first quarter and 74.1% for all of 2001. The gross margin improved to 74.1% from last year's 70.8% even after including $615,000 of product amortization charges in cost of sales. In the prior period, there were no product amortization charges. The Pharmaceutical Division earned $1.3 million in the first quarter 2002 compared to $352,000 in the prior year period.
The Consumer Business Division reported net revenue for the current quarter of $2.0 million, virtually unchanged from the prior year. The revenue contribution of the Consumer Business Division accounted for 21.4% of total net revenues in the first quarter 2002, down from 28.6% in last year's first quarter and 25.9% for all of 2001. The combination of reduced operating expenses and improved gross margin resulted in profitability of $40,000 in the current quarter versus a $247,000 loss in last year's first quarter.
The Company's working capital at March 31, 2002 was $21.8 million, up from $21.4 million at year-end 2001. Stockholders' equity increased to $46.4 million at March 31, 2002 from $45.7 million at year-end 2001.
Business Outlook
The Company left unchanged its guidance for fiscal year 2002.
About Women First HealthCare, Inc.
Women First HealthCare, Inc. (Nasdaq:WFHC) is a San Diego-based specialty pharmaceutical company. Founded in 1996, its mission is to help midlife women make informed choices regarding their health care and to provide pharmaceutical products-the Company's primary emphasis-and lifestyle products to meet their needs. Women First HealthCare is specifically targeted to women age 40+ and their clinicians. Further information about Women First HealthCare can be found online at www.womenfirst.com, `About Us' and `Investor Relations'
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to various risks, and Women First HealthCare, Inc. cautions you that any forward-looking information is not a guarantee of future performance. Women First HealthCare, Inc. disclaims any intent or obligation to update these forward-looking statements. Actual results could differ materially due to a number of factors, including (i) we have incurred significant losses since we were founded in November 1996, and if midlife women do not use, and their clinicians do not recommend, the products we offer, we will experience losses in the future; (ii) there is a limited market awareness of our Company and the products and services we offer; (iii) we may not be able to identify appropriate acquisition, licensing, or co-promotion candidates in the future or to take advantage of the opportunities we identify; (iv) we and our products face significant competition; (v) if we do not successfully manage any growth we experience, we may experience increased expenses without corresponding revenue increases; (vi) we are dependent on single sources of supply for all of the products we offer; (vii) reduced consumer confidence could adversely affect sales by our Consumer Business Division; (viii) we have incurred significant debt obligations which will require us to make debt service payments in the future; and (ix) additional factors set forth in the Company's Securities and Exchange Commission filings including its Annual Report on Form 10-K for the period ended December 31, 2001.
Women First HealthCare, Inc.
Consolidated Statements of Operations
(Unaudited)
Three months ended
March 31,
-----------------------------
2002 2001
------------ ------------
Net product revenue $ 9,463,671 $ 7,064,423
Net service revenue
from related party -- 43,843
------------ ------------
Total net revenues 9,463,671 7,108,266
Costs and expenses:
Cost of sales 2,745,983 2,457,691
Marketing and sales 4,676,231 4,236,069
General and administrative 1,351,927 1,602,470
Regulatory, research and
development 122,962 124,187
------------ ------------
Total costs and expenses 8,897,103 8,420,417
------------ ------------
Income (loss) from
operations 566,568 (1,312,151)
Interest and other income 22,725 355,417
Interest expense (346,305) --
------------ ------------
Net income (loss) $ 242,988 $ (956,734)
============ ============
Net income (loss) per share
(basic and diluted) $ 0.01 $ (0.05)
============ ============
Weighted average shares used
in computing net income (loss)
per share:
Basic 22,637,354 17,610,439
============ ============
Diluted 23,972,791 17,610,439
============ ============
Women First HealthCare, Inc.
Consolidated Balance Sheets
March 31, December 31,
2002 2001
------------- -------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 18,331,106 $ 19,377,548
Accounts receivable, net 5,834,427 7,666,212
Inventory 1,719,698 1,421,954
Prepaid expenses and other
current assets 1,765,108 986,226
------------- -------------
Total current assets 27,650,339 29,451,940
Property and equipment, net 1,041,185 1,065,524
Product rights, net 35,590,062 36,205,159
Intangible assets, net 2,767,082 2,809,089
Restricted cash 100,000 100,000
Other assets 2,634,703 1,406,291
------------- -------------
Total assets $ 69,783,371 $ 71,038,003
============= =============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 1,470,083 $ 2,138,622
Payable to related party 254,062 419,316
Accrued salaries and employee benefits 534,446 646,533
Accrued payroll taxes 69,041 1,350,168
Other accrued liabilities 695,708 768,801
Notes and accrued interest payable 2,876,852 2,727,596
------------- -------------
Total current liabilities 5,900,192 8,051,036
Note and accrued interest payable 17,463,623 17,266,574
Stockholders' equity:
Preferred stock, $.001 par value;
5,000,000 shares authorized -- --
Common stock, $.001 par value;
40,000,000 shares authorized;
23,137,045 and 22,833,310 shares
issued and outstanding, respectively 22,804 22,493
Treasury stock (99,660) (99,660)
Additional paid-in capital 115,204,950 114,770,771
Deferred compensation (65,056) (86,741)
Accumulated deficit (68,643,482) (68,886,470)
------------- -------------
Total stockholders' equity 46,419,556 45,720,393
------------- -------------
Total liabilities and
stockholders' equity $ 69,783,371 $ 71,038,003
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