For
Immediate
Release
|
Contacts:
|
|
|
William
R. Gargiulo, Jr
|
231.526.1244
|
|
Donna
Felch
|
312.595.9742
|
The
Female Health Company Doubles its Stock Repurchase Program and Gives Financial
Guidance for FY 2008
CHICAGO,
Illinois – (April 3,
2008) - The Female Health Company (AMEX: FHC) announced today that the program
initiated in January 2007 to repurchase up to 1,000,000 shares of the Company's
common stock has been expanded to up to 2,000,000 shares and has been extended
until December 31, 2009. Through March 31, 2008, the Company had
repurchased approximately 430,000 shares for $1,015,000 under this
program.
The
Company's Board of Directors approved the program expansion and extension
because it believes the market has undervalued its stock and that repurchasing
it is a good use of surplus cash.
The
shares may be purchased from time to time in open market transactions or
negotiated transactions at the Company's discretion, subject to market
conditions and other factors, including regulatory considerations.
O.
B.
Parrish, Chairman of the Board and Chief Executive Officer of the Female
Health
Company, said "The growing demand for the female condom permits the Company
to
begin providing financial guidance on an annual basis. For the fiscal
year ending September 30, 2008, unit sales are expected to increase in the
range of 20-25% from unit sales of 25.9 million female condoms in fiscal
2007. Pre-tax income (which excludes any potential tax benefit from
the tax loss carryforwards described below) is expected to increase in the
range
of 100%-125% over fiscal 2007. In fiscal 2007, the Company reported
pre-tax income of $868,913, or 3 cents per diluted share, which was exclusive
of
tax benefits. The Company recorded its first tax benefit of $825,000,
or 3 cents per diluted share, in the fourth quarter of fiscal
2007."
The
Company has U.K. and U.S. tax loss carryforwards of approximately $88 million
and $66 million, respectively. Contingent on financial results and
the outlook for subsequent periods, the Company may take additional tax benefits
in fiscal 2008. The tax loss carryforwards are primarily attributable
to the development and launch of the female condom.
Key
factors which impact results include the rate at which customers convert
to FC2,
the Company's lower-priced, higher margin second generation product, the
impact
of this product mix on revenues and earnings, and the level of spending in
global, national and local HIV/AIDS prevention programs in which the female
condom is included.
About
The Female Health
Company –
The
Female Health Company (FHC),
headquartered in Chicago, IL, is the maker of the FC Female Condom (FC1 and
FC2), a revolutionary option offering women dual protection against both
sexually transmitted diseases, including HIV/AIDS, and unintended pregnancy.
FHC
was created as a worldwide company in February 1996 with the purchase of
Chartex
Resources Ltd., the holder of exclusive worldwide rights to FC1. The Company
holds exclusive product and technology patents for FC1 in the United States,
Australia, Brazil, Canada, France, Germany, Italy, Spain, the United Kingdom,
the People’s Republic of China, South Korea and Japan. Patents are
pending for FC2. FHC is the sole manufacturer and marketer
of the FC1 and FC2 female condoms in the world. The Female
Health Company and its partners currently market the Female Condom under
FC
Female Condom®, FC2 Female Condom®, Reality®, Femidom®, Femy®, and Care® in the
rest of the world.
"Safe
Harbor" statement
under the Private Securities Litigation Reform Act of
1995. –
The
statements in this release which are not historical fact are "forward-looking
statements" as that term is defined in the Private Securities Litigation
Reform
Act of 1995. Forward-looking statements in this release include the
Company's financial guidance for fiscal 2008 and the Company's plans with
respect to its stock repurchase program. These statements are based
upon the Company's current plan and strategies, and reflect the Company's
current assessment of the risks and uncertainties related to its business,
and
are made as of the date of this release. The Company assumes no
obligation to update any forward-looking statements contained in this release
as
a result of new information or future events, developments or
circumstances. Such forward-looking statements are inherently subject
to known and unknown risks and uncertainties. The Company's actual results
and
future developments could differ materially from the results or developments
expressed in, or implied by, these forward-looking
statements. Factors that may cause actual results to differ
materially from those contemplated by such forward-looking statements include,
but are not limited to, the following: product demand and market acceptance;
competition in the Company's markets and the risk of new competitors and
new
competitive product introductions; the Company's reliance on its international
partners in the consumer sector and on the level of spending on the female
condom by country governments, global donors and other public health
organizations in the global public sector; the economic and business environment
and the impact of government pressures; risks involved in doing business
on an
international level, including currency risks, regulatory requirements,
political risks, export restrictions and other trade barriers; the Company's
production capacity; efficiency and supply constraints; and other risks detailed
in the Company's press releases, shareholder communication and Securities
and
Exchange Commission filings, including the Company’s Form 10-KSB for the fiscal
year ended September 30, 2007. 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 visit the Company's website at
http://www.femalehealth.com
and http://www.femalecondom.org
. If you would like to be added to the Company's e-mail alert list, please
send
an e-mail to FHCInvestor@femalehealthcompany.com
.