DRAPER, Utah, March 29 /PRNewswire-FirstCall/ -- 1-800 CONTACTS, INC.,
(Nasdaq: CTAC), today announced the appointment of Robert G. Hunter, CPA as
Chief Financial Officer.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040107/LACONTACTSLOGO )
Rob has served as Vice President, Finance and Treasurer since July 2000,
and prior to that as Corporate Controller since November 1997.
Brian Bethers, President of 1-800 CONTACTS, commented, "Rob has directed
1-800 CONTACTS' accounting and SEC reporting efforts since before our initial
public offering in February 1998 and has played a critical role in integrating
our acquisitions. In the past several years, Rob has restructured our finance
department to better support our US Retail and ClearLab businesses. Under
Rob's direction, we have also been able to comply with the requirements for
public companies under the Sarbanes-Oxley Act."
Prior to joining 1-800 CONTACTS, Rob spent six years in public accounting,
including two years with Arthur Andersen LLP in Salt Lake City. He graduated
summa cum laude with a Bachelor's Degree from Brigham Young University, where
he also earned a Master of Accountancy Degree. Rob is a Certified Public
Accountant.
Incentive Stock Grants and Employment Agreements
The Company has approved and issued to its US Retail and ClearLab
management and employees approximately 600,000 restricted shares for incentive
grants under its Amended and Restated 2004 Stock Incentive Plan. The grants
are the first substantial grants to the management team since 2003, and the
grants are the only grants intended for senior officers during the approximate
five year term of the grants. These share grants were designed and developed
with the assistance of compensation advisors, and they have been approved by
the Compensation Committee of the Company's Board of Directors. The grants
are intended to promote focus and attention on sales growth, retail
operations, manufacturing, and product development initiatives. The Company
believes that the grants will align management incentives with shareholder
interests and the Company's business strategy.
The restricted share grants include both time-vesting and performance-
vesting restricted shares. The time-vesting shares will vest 20% per year
beginning November 30, 2006 and ending November 30, 2010. The performance-
vesting shares (approximately 54% of the total shares granted) will vest only
upon achievement during the term of the grants of certain operational
milestones -- such as obtaining sources for "doctors only" lenses on
competitive terms, development of certain contact lens products, and the
achievement of an eight quarter cumulative financial target of at least $81
million consolidated earnings before taxes by or before the end of fiscal
2010. Approximately 55,000 time-vesting shares issued to management are
expected to vest in 2006. Performance-vesting shares do not vest until
performance targets are achieved.
The Company has also signed new employment agreements with nine executives
that will replace two expired agreements and update seven existing agreements.
The employment agreements and a form of the restricted stock agreement will be
filed with the Securities and Exchange Commission this week.
The Company has also authorized and issued a total of approximately 50,000
restricted shares for incentive stock grants to its five independent
Directors. These grants will vest over three years.
About 1-800 CONTACTS, INC.
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.1800contacts.com, the Company sells almost all of the popular brands of
contact lenses. 1-800 CONTACTS offers products at competitive prices, while
delivering a high level of customer service.
ClearLab develops and manufactures a wide range of disposable contact lens
products and distributes these lenses in international markets. More
information about ClearLab can be found at its website, http://www.clearlab.com.
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.
SOURCE 1-800 CONTACTS, INC.
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Related links:
http://www.1800contacts.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20040107/LACONTACTSLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Brian W. Bethers, President, or Robert G.
Hunter, CFO, both of 1-800 CONTACTS, INC., +1-801-316-5000,
investors@contacts.com
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