DRAPER, Utah, Feb. 5 /PRNewswire-FirstCall/ --
1-800 CONTACTS, INC. (Nasdaq: CTAC), today reported results for the fourth
quarter and fiscal year ended December 29, 2001.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990917/1800CONTACTS )
Net sales for the fourth quarter ended December 29, 2001 were
$37.6 million, compared to $37.1 million for the same period last year. Net
income for the fourth quarter of 2001 was $2.2 million, or $.18 per diluted
share, versus $3.0 million, or $.26 per diluted share, in the fourth quarter
of 2000.
During the fourth quarter of 2001, repeat sales increased by 17 percent
over the same period in the prior year to $28.8 million and represented
77 percent of total net sales. Internet sales grew to $16.1 million, or
43 percent of total net sales, up from $15.7 million, or 42 percent of total
net sales, during the prior year period.
For the fiscal year ended December 29, 2001, net sales increased
17 percent to $169 million, up from $145 million in the prior year. Net
income for fiscal year 2001 was $9.9 million, or $.84 per diluted share,
compared to $10.5 million, or $.86 per diluted share, for fiscal year 2000.
Jonathan Coon, Chief Executive Officer, commented, "As expected, net sales
during the fourth quarter were impacted by our ongoing efforts to manage our
inventory of Johnson & Johnson products. Yet, our efforts have enabled us to
fill nearly all requests our customers make for Johnson & Johnson products.
In fact, we ended the fourth quarter with more inventory of Johnson & Johnson
products than we had at the beginning of the quarter. However, as
anticipated, our increased costs to acquire Johnson & Johnson inventory caused
gross margin in the fourth quarter to decline.
"In the fourth quarter, we continued to incur significant costs associated
with our ongoing effort to create a fair and open system of competition in our
industry. During the quarter, our profitability remained strong, which we
believe is a testament to our solid business model."
1-800 CONTACTS offers consumers an attractive alternative for obtaining
replacement contact lenses in terms of convenience, price and speed of
delivery. Through its easy-to-remember, toll-free telephone number,
"1-800 CONTACTS" (1-800-266-8228), and its Internet web site,
http://www.contacts.com , the company sells all of the most popular brands of contact
lenses. High volume, cost-efficient operations enable 1-800 CONTACTS to offer
products at competitive prices while delivering a high level of customer
service.
This news release contains forward-looking statements about the company's
future business prospects. These statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
set forth in or implied by such forward-looking statements. Factors that may
cause future results to differ materially from the company's current
expectations include, among others: general economic conditions, the health of
the contact lens industry, inventory acquisition and management, advertising
spending and effectiveness, and regulatory considerations.
Company News On Call: http://www.prnewswire.com or fax 800-758-5804, ext.
109239
1-800 CONTACTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Quarter Ended Year Ended
December December December December
30, 2000 29, 2001 30, 2000 29, 2001
NET SALES $37,119 $37,647 $144,971 $169,036
COST OF GOODS SOLD 22,221 24,449 86,367 103,093
Gross profit 14,898 13,198 58,604 65,943
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES:
Advertising expense 5,345 3,533 25,603 26,850
Legal and professional fees 286 892 870 2,838
Other selling, general and
administrative expenses 4,217 5,209 15,251 19,874
Total selling, general
and administrative
expenses 9,848 9,634 41,724 49,562
INCOME FROM OPERATIONS 5,050 3,564 16,880 16,381
OTHER INCOME (EXPENSE), net (61) (44) 198 (252)
INCOME BEFORE PROVISION
FOR INCOME TAXES 4,989 3,520 17,078 16,129
PROVISION FOR INCOME TAXES (1,944) (1,367) (6,604) (6,265)
NET INCOME $3,045 $2,153 $10,474 $9,864
PER SHARE INFORMATION:
Basic net income
per common share $0.26 $0.19 $0.88 $0.85
Diluted net income
per common share $0.26 $0.18 $0.86 $0.84
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES:
Basic 11,570 11,574 11,872 11,574
Diluted 11,830 11,703 12,110 11,752
1-800 CONTACTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS
December 30, December 29,
2000 2001
CURRENT ASSETS:
Cash and cash equivalents $42 $36
Inventories 20,402 43,000
Deferred income taxes 674 985
Other current assets 385 1,019
Total current assets 21,503 45,040
PROPERTY AND EQUIPMENT, net 2,843 3,309
DEFERRED INCOME TAXES 204 439
INTANGIBLE ASSETS, net 1,262 1,544
OTHER ASSETS 296 73
Total assets $26,108 $50,405
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Line of credit $3,265 $12,526
Income taxes payable 1,207 141
Accounts payable and accrued liabilities 7,672 13,985
Total current liabilities 12,144 26,652
STOCKHOLDERS' EQUITY 13,964 23,753
Total liabilities and
stockholders' equity $26,108 $50,405
SOURCE 1-800 CONTACTS, INC.
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Related links:
http://www.1800contacts.com
Company News On-Call:
http://www.prnewswire.com/comp/109239.html
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/19990917/1800CONTACTS
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
CONTACT:
Jonathan C. Coon, Chief Executive Officer,
+1-801-924-9800, or Scott S. Tanner, Chief Operating Officer,
+1-801-924-9802, both of 1-800 CONTACTS, INC.,
investors@contacts.com
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