109% Increase in Revenues CHICAGO, Feb. 14 /PRNewswire-FirstCall/
-- The Female Health Company (OTC:FHCO) (BULLETIN BOARD: FHCO)
reported net revenues of $3,408,062 and net income attributable to
common stockholders of $59,952 or $0.00 per diluted share for the
three months ended December 31, 2005 compared to net revenues of
$1,628,241 and a net loss attributable to common stockholders of
$(1,223,265) or $(0.06) per diluted share for the three months
ended December 31, 2004. The Company posted operating income for
the three months ended December 31, 2005 of $101,977 compared to an
operating loss of $(1,145,833) for the same period last year. Net
revenues increased $1,779,821 for the current quarter, or 109%,
compared with the same prior year period as a result of increased
global and domestic public sector sales. The Company expects
significant quarter to quarter variations due to the timing of
large orders, production scheduling, and shipping of products.
Gross profit increased $1,083,722, or 205%, to $1,612,877 for the
three months ended December 31, 2005 from $529,155 for the three
months ended December 31, 2004 as a result of the 109% increase in
quarterly revenues and a less than proportionate increase in cost
of products sold of 63%. Total operating expenses decreased
$164,088, or 10%, to $1,510,900 for the three months ended December
31, 2005 compared to $1,674,988 for the same period last fiscal
year. The decline was a result of a reduction in selling, general
and administrative expenses partially offset by increases in
advertising and promotional expenses and research and development
costs. Selling, general and administrative expenses decreased
$223,364, or 14%, to $1,429,350 for the three months ended December
31, 2005 from $1,652,714 for the same period last year. The
decrease was primarily due to a reduction of non-cash stock
compensation between years offset partially by a rise in outside
consulting fees. The higher non-cash stock compensation costs
incurred during the first quarter of the prior year was result of
the Company recording $322,076 in non-recurring charges related to
shares of common stock and stock purchase warrants issued as an
inducement by the Company to existing warrant holders who exercised
common stock purchase warrants. No such inducement occurred during
the first quarter of the current fiscal year. The higher consulting
fees related to the documentation, design and testing stages
required to develop an Information Technology internal control
environment to comply with Section 404 of the Sarbanes-Oxley Act.
Net interest and other expenses decreased $58,247 for the current
quarter to $(5,322) from $52,925 for the same period last year.
This was due to the Company eliminating its debt outstanding during
the latter part of the first quarter of fiscal year 2005. As a
result the Company had neither interest or non-cash expenses due to
the amortization of discounts on the credit facility during the
current quarter as was experienced during the same period in the
prior year. 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 approved by FDA and
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, February 15,
2006. Shareholders and other interested parties may participate in
the conference call by dialing 800-865-4435 (international/local
participants dial 973-935-2404) and referencing the conference code
7011404, a few minutes before 11:00 a.m. EST on February 15, 2006.
A replay call will be available through February 23, 2006 by
dialing 877-519-4471 (international callers 973-341-3080) and
referencing the conference code is 7011404. "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 . THE FEMALE HEALTH COMPANY Unaudited Condensed
Consolidated Balance Sheet December 31, December 31, 2005 2004 Cash
$1,003,639 $1,503,863 Restricted cash 169,844 - Accounts
receivable, net 3,067,906 1,429,209 Inventories, net 1,051,432
1,488,647 Prepaid and other current assets 249,102 327,324 Total
current assets 5,541,923 4,749,043 Certificate of deposit 48,515
46,225 Other non-current assets 191,357 340,813 Net property, plant
& equipment 334,472 184,648 TOTAL ASSETS $6,116,267 $5,320,729
Accounts payable $892,619 $327,156 Accrued expenses 933,663 732,289
Current maturities of obligations under capital leases - 17,119
Preferred dividends payable 6,826 7,306 Total current liabilities
1,833,108 1,083,870 Deferred gain on sale of facility 1,076,977
1,309,660 Total liabilities 2,910,085 2,393,530 Total stockholders'
equity 3,206,182 2,927,199 TOTAL LIABILITIES AND EQUITY $6,116,267
$5,320,729 THE FEMALE HEALTH COMPANY Unaudited Condensed
Consolidated Income Statements For the 3 Months Ended December 31,
2005 2004 NET REVENUES $3,408,062 $1,628,241 GROSS PROFIT 1,612,877
529,155 Advertising and promotion 50,105 4,588 Selling, general
& administrative 1,429,350 1,652,714 Research and development
31,445 17,686 Total Operating Expenses 1,510,900 1,674,988
OPERATING INCOME (LOSS) 101,977 (1,145,833) Interest, net and other
expense (5,322) 52,925 Foreign currency transaction loss (gain)
6,704 (16,320) Pretax income (loss) 100,595 (1,182,438) Income
taxes - - NET INCOME (LOSS) 100,595 (1,182,438) Preferred dividends
40,643 40,827 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
$59,952 $(1,223,265) BASIC AND DILUTED NET INCOME (LOSS) PER COMMON
SHARE $0.00 $(0.06) Weighted avg. common shares - Basic and Diluted
23,595,226 22,156,056 First Call Analyst: FCMN Contact:
assistant@femalehealthcompany.com DATASOURCE: The Female Health
Company CONTACT: Investors, William R. Gargiulo, Jr.,
+1-231-526-1244, or Business - Product, Mary Ann Leeper, Ph.D.,
+1-312-595-9123, both of Female Health Company Web site:
http://www.femalehealth.com/ http://www.femalecondom.org/
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