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4. How ironic is it that dot-com survivor drugstore.com (Nasdaq: DSCM) posts a fourth-quarter profit -- and its first year of positive free cash flow since going public 10 years ago -- as things are going batty elsewhere.
25 Random Things About Mr. Market
http://www.fool.com/investing/general/2009/02/09/25-random-things-about-mr-market.aspx
Earnings: Drugstore.com turns first profit
Increase in orders, strong sales put e-tailer over top
P-I STAFF
Bellevue-based Drugstore.com Inc. reported a quarterly profit for the first time Wednesday, partly thanks to an 8 percent increase in orders and strong sales of over-the-counter products.
"While holiday sales were clearly impacted by the economy, we saw strong sales of our everyday OTC basics, reinforcing our belief that a large portion of our products are not considered discretionary by our customers," said Dawn Lepore, chief executive and chairwoman of Drugstore.com.
The company expects that it will grow ahead of e-commerce trends, she said. Drugstore.com attracted 406,000 new customers in the fourth quarter, an 8 percent jump over last year. It has 2.6 million active customers.
Drugstore.com had originally thought that the fourth quarter of 2007 was profitable, but after the corporate earnings call last year, the state of New Jersey settled against the company in a sales tax case, costing the company $2.5 million and resulting in a quarterly loss.
Net income for the quarter that ended in December was $289,000, or break-even per share, compared with a $2.3 million loss, or 2 cents per share, in the fourth quarter of 2007.
Wall Street analysts had expected a penny per share in earnings, so Drugstore.com missed expectations by 1 cent.
Quarterly revenue was $93.9 million.
The company's annual net loss was $8.3 million, or 9 cents per share, compared with an $11.5 million net loss, or 12 cents, the previous year.
Revenue for the year came to $366.6 million.
For the first quarter of 2009, Drugstore.com expects net sales between $93 million and $97 million and net income between zero dollars and a $2 million net loss.
Another one rockin'. Up 88% off it's low....
technical activity........
should make DSCM pop up on radar screens
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2939893
glta
Posted: 2008-10-27 06:00:00
Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Enterprise Products Partners, L.P. (NYSE: EPD), Johnson Controls, Inc. (NYSE: JCI), drugstore.com, inc. (Nasdaq: DSCM), Rite Aid Corp. (NYSE: RAD) and The Potash Corporation of Saskatchewan Inc. (NYSE: POT).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Friday’s Analyst Blog:
Enterprise Products a Core MLP
Enterprise Products Partners, L.P. (NYSE: EPD) reported strong third-quarter results, raised quarterly distribution, and declared that it had sufficient internal resources to meet its next year’s growth capital needs. Total gross operating margin increased 32% year-over-year, primarily driven by the diversified NGL and natural gas pipeline and storage businesses.
Importantly, the master limited partnership [MLP] announced a 6.6% year-over-year increase in quarterly distribution to the annualized run rate of $2.09 per unit. Quarterly distributable cash flows provided very comfortable 1.2x coverage to cash distributions to limited partners. Our continued favorable view of EPD units reflects the partnership’s diversified asset base, strong distribution growth prospects, and attractive valuation.
Johnson Controls Holding Steady
We maintain our Hold rating on the shares of Johnson Controls (NYSE: JCI), a supplier of automotive interiors, batteries, and other control equipment.
The company’s cost reduction efforts, accretive acquisitions and healthy operating cash flows are driving the stock. The results of JCI’s strict cost discipline are evident in its expanding margins and strong cash flow.
drugstore.com Strong, Long-Term
drugstore.com (Nasdaq: DSCM) recently outlined its strategy to achieve profitable sales growth over the long term. This includes increasing share in the over-the-counter market, growing its international business, entering new partnership arrangements and expanding into higher margin product lines. drugstore.com believes that this strategy will enable the company to double its total sales and increase its gross profit margin to 30% by 2013.
The company also expects to have an EBITDA margin of 8% by 2013 and generate about $130 million in cumulative free cash flow over that time. drugstore.com continues to expand its reach through partnerships like its renewed agreement with Rite Aid Corp. (NYSE: RAD), which is a co-branded OTC store.
Potash Fueled by High Prices
The Potash Corporation of Saskatchewan Inc. (NYSE: POT), a Canadian corporation based in Saskatoon, Saskatchewan, is the world's largest fertilizer enterprise producing three primary plant nutrients potash, phosphate and nitrogen.
On October 23, Potash reported 2008 third-quarter earnings of $3.93 per share. Fueled by significantly higher prices for all potash, nitrogen and phosphate products, gross margin for the third quarter grew to a record $1.7 billion, up from $475.1 million in the third quarter of 2007.
Drugstore.com, inc. to Announce Third Quarter 2008 Results During Conference Call on Wednesday, November 5, 2008 at 5:00 p.m. ET
BELLEVUE, Wash., Oct. 23 /PRNewswire-FirstCall/ -- drugstore.com, inc. (NASDAQ:DSCM), a leading online provider of health, beauty, vision, and pharmacy products, will announce its financial results for the third quarter 2008 during a conference call on Wednesday, November 5, 2008 at 5:00 p.m. ET (2:00 p.m. PT). A press release of the third quarter 2008 earnings will be distributed via PR Newswire and posted on the drugstore.com(TM) Web site at http://www.investor.drugstore.com/.
(Logo: http://www.newscom.com/cgi-bin/prnh/20070813/AQM043LOGO)
The conference call will also be broadcast live over the Internet and will be accessible through replays for 60 days on the drugstore.com(TM) Web site at http://www.investor.drugstore.com/, by clicking on the "audio" hyperlink.
May have to pick up some more of this junk. Hopefully they'll make good with online sales this holiday season.
Their website pretty much sux though. Not much variety.
Big drop yesterday, holding most of its bounce today
Gosh, I came here to cry...
But I guess I'm the only one weeping ?
I keep ALMOST making money here...
one of these days, I reckon ?
catman...ISYA
PS...normally I'd be worried about a
CFO leaving but considering who it was...
This is a retail/staples defensive kinda
play for me, I was just currious to see
how many other holders there were here...
I'm the guy standing up waving a white
flag...anybody SEE ME ?
;^)
Things are looking up here. If it sells off on firesale friday I'll double down.
Insiders have been buying at this level in the last two weeks. FWIW
drugstore.com Achieves Key Milestones in 2006
Fiscal 2006 Net Loss Improves 38% Year-over-Year, Company reports First Full Year of Positive Adjusted EBITDA
a leading online provider of health, beauty, vision, and pharmacy products, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2006. The company reported quarterly net sales of $108.6 million, driven by core over-the-counter (OTC) order growth of 19% year-over-year, and a net loss of $2.9 million, or $0.03 per share, reflecting a $1.5 million improvement from the same period of 2005. During the quarter, the company achieved its third consecutive quarter of positive adjusted EBITDA. Adjusted EBITDA of $901,000 was an improvement of approximately $2.7 million from the fourth quarter of 2005. Adjusted EBITDA is a non-GAAP financial measure defined as earnings before interest, taxes, depreciation, and amortization of intangible assets and non-cash marketing expense, adjusted to exclude the impact of stock-based compensation expense. For the year, the company reported net sales of $415.8 million, a net loss of $13.0 million or $0.14 per share, and adjusted EBITDA of $2.4 million, reflecting an adjusted EBITDA improvement of $12.0 million over the fiscal year ending 2005.
"This was a turnaround year for the company, and we executed on our goal of achieving positive adjusted EBITDA," said Dawn Lepore, chief executive officer and chairman of the board of drugstore.com, inc. "Our focus on profitability and increasing contribution margins has resulted in a significantly improved business model. Our goal now is to build on that model to drive continued adjusted EBITDA margin expansion and GAAP profitability by the fourth quarter of 2007," continued Lepore. The Company achieved record annual adjusted EBITDA of $2.4 million, which improved by $12.0 million from 2005, and generated positive operating cash flow during the second half of the year.
"Our core OTC segment continues to be the key driver of our business and, in the fourth quarter, orders grew by 19% year-over-year and 21% for the year. Importantly, we had a strong 8-week holiday season, with order growth during this period increasing by 25%. Additionally, fourth quarter contribution margin dollars increased by nearly 10% while fixed costs declined by 1%," explained Ms. Lepore.
"Building on our solid business momentum, we are now well positioned to accelerate growth and maximize our core business in 2007 by implementing key initiatives such as expanding beauty.com, executing on our "hard-to-find" strategy, and developing strategic partnerships like our new affiliation with Revolution Health and the Cystic Fibrosis Foundation. We believe these initiatives will continue to move us towards our goal of surpassing half a billion in sales in 2008," concluded Ms. Lepore.
GAAP net loss for the fourth quarter of 2006 was $2.9 million, or $0.03 per share, compared to a net loss of $4.5 million, or $0.05 per share, for the fourth quarter of 2005. This loss includes $1.7 million in non-cash share-based compensation expense associated with FAS 123R. In accordance with FAS 123R, the expense for current and comparative periods is reflected within the applicable functional operating expense lines within the statement of operations.
The Company also announced today that Robert A. Barton, Vice President and Chief Financial Officer, has decided to resign and is expected to depart the Company in mid 2007. Mr. Barton will remain in his current role while the Company conducts a search for his successor and will continue in an advisory capacity during a transition period after his successor is identified and retained. "Bob has been a great partner to me as we have turned the company around and achieved positive adjusted EBITDA. I will miss his passion and commitment," said Ms. Lepore.
Outlook for First Quarter and Fiscal Year 2007
For fiscal year 2007, the company is targeting net sales in the range of $440.0 million to $460.0 million, net loss in the range of $7.0 million to $11.0 million, and positive adjusted EBITDA in the range of $7.0 million to $11.0 million.
For the first quarter of 2007, the company is targeting net sales in the range of $108.0 million to $110.0 million, net loss in the range of $3.0 million to $4.0 million, and positive adjusted EBITDA in the range of $500,000 to $1.5 million.
Financial and Operational Highlights for the Fourth Quarter of 2006
(All comparisons are made to the fourth quarter of 2005)
Key Financial Highlights:
-- Total contribution margin dollars increased by nearly 10%, while fixed operating expenses declined by 1%. For the year, contribution margin dollars improved by 20%, while fixed costs increased by only 3%.
-- Gross margin expansion of 20 basis point and 110 basis point for the quarter and year, respectively, was a key contributor to our contribution margin improvement.
-- Total orders grew 8% to a record 1.4 million while contribution margin dollars per order grew by 1% to $11. For the year, total orders grew by 6%, while contribution margin dollars per order increased by 14%.
-- Core OTC(1) order volumes grew by 19% for the quarter, and 21% for the year.
-- Cash, cash equivalents and marketable securities were $40.6 million at year end.
Net Sales Summary:
-- Core OTC net sales(1) grew by 15% to $55.6 million. For the year, core OTC sales were $195.6 million and grew by 18%.
-- Mail-order pharmacy net sales were down 28% to $14.5 million reflecting a full quarter without sales through our partnership with Envision, which was terminated in the second quarter. Contribution margin dollars increased by 18%. For the year, mail-order pharmacy net sales declined by 11% to $67.4 million, while contribution margin dollars increased by 17%.
-- Local pick-up pharmacy net sales were up approximately 9% to $26.0 million. For the year, local pick-up pharmacy net sales were up 5% to $100.7 million.
-- Vision net sales grew to $12.0 million, a 6% increase. For the year, vision net sales grew by 6% to $49.8 million.
-- Average net sales per order were $75. Average net sales per order were down 4% for core OTC at $57, up by 11% to $167 for mail-order pharmacy, down 6% to $106 for local pick-up pharmacy, and up by 12% to $93 for vision. For the year, average net sales per order were down 2% for core OTC at $57, up by 12% to $164 for mail-order pharmacy, down 3% to $106 for local pick-up pharmacy, and up by 10% to $90 for vision.
-- Net sales from repeat customers represented 79% of net sales. For the year, net sales from repeat customers were 81% of net sales(2)
Key Customer Milestones:
-- Approximately 8.5 million customers have been served since inception, including 347,000 new customers in the fourth quarter.
-- The number of active customers(3) grew by 8% to more than 2.2 million.
-- The average annual spend per active customer(3) was $186.
(1) Core OTC net sales is a non-GAAP financial measure that excludes from OTC net sales the company's wholesale OTC net sales and Custom Nutrition Services ("CNS") net sales. Wholesale OTC sales were generated by the company's December 2003 agreement to provide fulfillment services to Amazon.com, Inc., which was terminated effective as of November 9, 2005. CNS sales are generated by sales of customized vitamins through the company's CNS subsidiary. Prior to December 31, 2005, all CNS sales were recognized on a gross basis, net of promotional discounts, cancellations, rebates and returns allowances. Under the terms of the company's December 31, 2005 fulfillment agreement with Weil Lifestyle, LLC (Weil), the company recognizes on a net basis the revenue associated with the fulfillment of customized vitamins sold through its fulfillment agreement with Weil (which made up the majority of CNS net sales during the quarter). A reconciliation of OTC net sales to core OTC net sales is included in the financial data accompanying this press release.
(2) Net sales from repeat customers excludes wholesale OTC and Weil-related CNS net sales and reflects only the activity of customers making purchases through the Web sites of drugstore.com and its subsidiaries.
(3) Active customer base reflects those customers who have purchased at least once within the last 12 months. Both the active customer base (a trailing 12-month number) and average annual spend per active customer exclude net sales and orders generated by the company's wholesale OTC and CNS fulfillment relationship with Weil, and reflect only the activity of customers making purchases through the Web sites of drugstore.com and its subsidiaries.
Conference Call
Investors, analysts, and other interested parties are invited to join the drugstore.com(TM) quarterly conference call on Wednesday, January 31, 2007 at 5:00 p.m. ET (2:00 p.m. PT). To participate, callers should dial 800-240-7305 (international callers should dial 303-262-2193) five minutes beforehand. Investors may also listen to the conference call live at www.drugstore.com (under Corporate Information), by clicking on the "audio" hyperlink. A replay of the call will be available through Friday, February 2, 2007 at 800-405-2236 (enter pass code 11080873#) or internationally at 303-590-3000 (enter pass code 11080873#) beginning two hours after completion of the call.
Non-GAAP Measures
To supplement the consolidated financial statements presented in accordance with GAAP, drugstore.com, inc. uses the non-GAAP measure of adjusted EBITDA, defined as earnings before interest, taxes, depreciation, and amortization of intangible assets and non-cash marketing expenses, adjusted to exclude the impact of stock-based compensation expense. This non-GAAP measure is provided to enhance the user's overall understanding of the company's current financial performance. Management believes that adjusted EBITDA, as defined, provides useful information to the company and to investors by excluding certain items that may not be indicative of the company's core operating results. In addition, because drugstore.com, inc. has historically provided adjusted EBITDA measures to investors, management believes that including adjusted EBITDA measures provides consistency in the company's financial reporting. However, adjusted EBITDA should not be considered in isolation, or as a substitute for, or as superior to, net income/loss, cash flows, or other consolidated loss or cash flow data prepared in accordance with GAAP, or as a measure of the company's profitability or liquidity. Although adjusted EBITDA is frequently used as a measure of operating performance, it is not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. Net income/loss is the closest financial measure prepared by the company in accordance with GAAP in terms of comparability to adjusted EBITDA.
drugstore.com, inc. also uses non-GAAP measures in which wholesale OTC and CNS sales are excluded from OTC segment sales data. These non-GAAP measures are provided to enhance the user's overall understanding of the company's financial performance in the OTC segment. Management believes that these reporting metrics provide useful information to the company and to investors by excluding certain items that may not be indicative of the company's core operating results in the OTC segment. By excluding wholesale OTC and CNS sales from OTC sales data, the company can more effectively assess the buying behavior of, and the company's financial performance with respect to, its own core OTC customers (those customers making nonprescription purchases through Web sites owned by drugstore.com, inc. and its subsidiaries). However, these non-GAAP measures should not be considered in isolation, or as a substitute for, or as superior to, OTC segment sales data prepared in accordance with GAAP, or as a measure of the company's overall performance in the OTC segment. OTC segment sales measures are the closest financial measures prepared by the company in accordance with GAAP in terms of comparability to OTC segment sales measures that exclude wholesale OTC and CNS sales.
Earnings report and CC
drugstore.com, inc. to Announce Fourth Quarter and Fiscal Year 2006 Results During Conference Call on Wednesday, January 31st at 5:00 p.m. ET
BusinessWire - January 16, 2007 8:30 AM ET
drugstore.com, inc. (Nasdaq:DSCM), a leading online provider of health, beauty, vision, and pharmacy products, will announce its financial results for the fourth quarter and fiscal year of 2006 during a conference call on Wednesday, January 31st, 2007, at 5:00 p.m. ET (2:00 p.m. PT). A press release of the fourth quarter and fiscal year 2006 earnings will be distributed via Business Wire and posted on the drugstore.com(TM) Web site at www.drugstore.com under "Corporate Information."
The conference call will also be broadcast live over the Internet and will be accessible through replays for 60 days on the drugstore.com(TM) Web site at www.drugstore.com (under Corporate Information), by clicking on the "audio" hyperlink.
BOCA RATON, Fla., Jan 19, 2007 (BUSINESS WIRE) -- Teeka Tan Products, Inc. (TKAT : teeka tan products inc com announced today its entire Teeka Tan Product line will now be sold exclusively on the internet by drugstore.com
"This adds a significant distribution channel for all of our products. This deal allows us to sell multiple products to a national audience via the internet. drugstore.com is an established company with a large customer base," according to Brian S. John, Teeka Tan Products' President. In addition Mr. John stated, "This will help us manage our growth better because we can now focus on larger distributor type orders and individual orders will now be handled by drugstore.com. This is a vital step towards streamlining our operations and enhancing our distribution channels for 2007 season."
Teeka Tan Products markets and distributes Teeka Tan Suncare Products, a broad line of high quality, value-priced sun care products which are sold to drug stores, supermarkets, surf shops, gift shops, distributors and other retail outlets in the United States and internationally. All of the company's sun care formulations are registered with the FDA and comply with FDA labeling standards. The Company also distributes Safe Sea exclusively in the United States, the Caribbean and Mexico. Safe Sea is the only Suncare product on the market that protects against and inhibits jellyfish and sea lice "stings" through a unique 5-step process. With 4 patents granted and approved for the jellyfish sting inhibitor, Safe Sea has been sold worldwide in the US, England, Spain, France, Sweden, the Philippines, Taiwan, and Japan since 2001. For more information on our Suncare Products or our Company please visit our website at www.TeekaTan.com.
BELLEVUE, Wash., Jan 17, 2007 (BUSINESS WIRE) -- drugstore.com,
a leading online provider of pharmacy, health, beauty and vision products, today announced its new "Free 30" program to help consumers manage the cost of prescription medications. New drugstore.com pharmacy customers ordering a 90-day supply of any of more than 1,000 eligible generic prescription drugs will receive a rebate equal to the cost of a 30-day supply -- a savings of up to $50.
"Consumers are increasingly aware that they can save money by comparing prices for prescription medications, especially online," said Dawn Lepore, CEO, drugstore.com. "With the new Free 30 program, we are inviting consumers to visit drugstore.com to compare our pricing for generic prescription drugs as well as consider the scope of vital health care information and services provided by our fully-licensed U.S. pharmacy."
Prescription drug prices on drugstore.com have always been low -- up to 70% lower for generics and up to 30% lower for brand-name drugs when compared to traditional brick-and-mortar pharmacies. The new Free 30 program offers additional savings on more than 1,000 generic prescriptions, representing more than 600 different compounds. While prices for many generic drugs are already below $4 per month when buying a 90-day supply, people filling generic prescriptions to treat conditions such as high cholesterol, acne and depression could save as much as $50.
The Free 30 program is offered to first time drugstore.com pharmacy customers only and does not apply to orders paid by insurance. However, even consumers with prescription drug insurance may benefit from the Free 30 program because many of the generic drugs offered by the drugstore.com pharmacy are priced lower than the typical co-pay required by some plans.
Filling a prescription in the drugstore.com pharmacy is easy. After placing the order online at www.drugstore.com/free30, customers can either mail the prescription to the pharmacy or have a drugstore.com pharmacist contact their doctor or previous pharmacy to transfer the prescription. drugstore.com ensures privacy with secure online ordering and plain packaging for delivery.
More information on the Free 30 program and a full list of eligible generic prescription drugs is available at http://www.drugstore.com/free30.
The drugstore.com pharmacy is certified as a Verified Internet Pharmacy Practice Sites (VIPPS) by the National Association of Boards of Pharmacy (NABP) as a fully licensed U.S. facility exercising competent, safe pharmacy practices in compliance with federal and state laws and regulations and able to ship prescription medications to all 50 states. The pharmacy provides a broad selection of over 5,000 medications, including hard-to-find specialty drugs for cancer, growth deficiency, multiple sclerosis, HIV, hepatitis and infertility.
drugstore.com accepts most insurance plans, though orders paid by insurance are ineligible for the Free 30 program. Customers may sign up for a refill reminder email service to ensure uninterrupted therapy. Unlike most brick-and-mortar drugstores, customers can contact one of our licensed pharmacists 24 hours a day, seven days a week to get answers to their prescription questions.
The drugstore.com pharmacy offers customers information and services to safeguard their health while making the most of their healthcare dollars. Some of these services include:
-- Drug Price Comparison -- An established benchmark for national drug prices, the drugstore.com pharmacy publishes its prices online on more than 5,000 prescription drugs.
-- Drug Interaction Checker -- Our licensed pharmacists use technology-aided processes to check and cross-check every prescription against a customer's drug allergies, medical conditions, and current prescription and over-the-counter medications.
-- Ask Your Pharmacist -- Our pharmacists have prepared hundreds of answers to commonly asked questions about health and medications. Customers may also submit new questions for a prompt, personal and private response.
-- eMedAlert(TM) -- This opt-in program is designed to inform and protect our customers with notices of recalls and product warnings for products they have purchased.
-- FSA Store -- It's easy for customers to manage their Flexible Spending Account (FSA) or Health Savings Account (HSA) on drugstore.com. drugstore.com automatically tracks eligible purchases on over 3,000 pre-qualified over-the-counter products, in addition to prescription medications and contact lenses. For reimbursement, customers may simply visit the store anytime to print a receipt containing only FSA/ HSA eligible products. For those customers with an FSA debit card, drugstore.com automatically receives approval from the employer by limiting purchases to eligible items, so there is no need to submit receipts for reimbursement.
The drugstore.com pharmacy can be found at http://www.drugstore.com/pharmacy.
The drugstore.com FSA Store is located at http://www.drugstore.com/fsa.
The National Association of Boards of Pharmacy(R) and information on accreditation for Verified Internet Pharmacy Practice Sites(TM) (VIPPS(R)) is located at http://www.nabp.net/.
This stock is now about 25% of my portfolio. Here is why. The new year will be big for this company. Returns from additions to their services (Auto delivery, partnered with WebMD) will show up on the bottom line any time now. For the first time in about 2 years, this company should show a profitable quarter. This one or the next one. It could be this one. They have about $40 million in cash and about $4 million in debt.
The fundies are right on! A long well executed plan is about to come to fruition.
Losses have narrowed consistantly and will turn to gains VERY SOON:
(03/01/2006) pps: $2.51
(10/31/2006) pps: $4.02
I think 30 to 40% gain is probable short term at THIS ENTRY POINT.
I think that is a conservative estimate.
(for full disclosure, I've been long on this for a while now. I flip half my position regularly on any stock that has any volatility to it. Thats how I do it. It's ok with me if you don't, so don't give me any lip about flippin' and I won't give you any lip about forgetting to take profits.)
IMHO as always.
From the Motly fool 11/24/2006
Drugstore.com (Nasdaq: DSCM)
You have to go back to May 2000 to find the last time the pioneering online pharmacy traded in double digits. Even though I've never been a big fan of the company in the past, I'm starting to like the emerging trends at drugstore.com. Losses have been narrowing, even if investors will have to likely wait until 2008 for actual profits. Despite the red ink, the company has actually beaten analyst estimates for four consecutive quarters.
It looks like first profitable quarter is closer than that if you listened to the CC. imo
http://www.fool.com/investing/small-cap/2006/11/24/4-dotcom-doorbuster-stocks.aspx?logvisit=y?logvis....
DENVER, Dec 12, 2006 (BUSINESS WIRE) -- Lifevantage Corporation, maker of Protandim(R), today announced the launch of Protandim(R) on the drugstore.com(TM) Web store.
"We are pleased to add drugstore.com, inc. to our list of partners," said Stephen K. Onody, Chief Executive Officer of Lifevantage. "We've expanded our reach and are able to offer more customers the cellular health and healthy aging benefits of this fundamentally new approach to antioxidant therapy."
About Protandim(R)
Protandim(R) is a patent-pending dietary supplement that increases the body's natural antioxidant protection by inducing two protective enzymes, superoxide dismutase (SOD) and catalase (CAT). These naturally occurring enzymes become overwhelmed by free radicals as we get older. Oxidative stress (cell damage caused by free radicals) occurs as a person ages, when subjected to environmental stresses or as an associated factor in certain illnesses. TBARS are laboratory markers for oxidative stress in the body. Data from a peer-reviewed, published scientific study in men and women, sponsored by Lifevantage, shows that after 30 days of taking Protandim(R), the level of circulating TBARS decreased an average of 40 percent, with this decrease shown to be maintained at 120 days. Protandim(R) strengthens a person's defenses against oxidative stress by increasing the body's natural antioxidant enzymes. For more information, please visit the Protandim(R) product Web site at www.protandim.com.
About drugstore.com, inc.
drugstore.com, inc. is a leading online provider of health, beauty, vision, and pharmacy products. The drugstore.com(TM) online store provides a convenient, private, and informative shopping experience that encourages consumers to purchase products essential to healthy, everyday living. The online store offers thousands of brand-name personal health care products at competitive prices; a full-service, licensed retail pharmacy; and a wealth of health-related information, buying guides, and other tools designed to help consumers make informed purchasing decisions. Consumers can personalize their shopping experiences with shopping lists, e-mail reminders for replenishing regularly used products, and private e-mail access to pharmacists and beauty experts for questions.
About Lifevantage Corporation
Lifevantage Corporation markets Protandim(R). Lifevantage is committed to helping people achieve health and wellness for life. For more information, please visit the Company's Web site at www.Lifelinetherapeutics.com.
Except for historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, applicable common law and Securities and Exchange Commission rules. The Company uses the words "anticipate," "believe," "could," "should," "estimate," "expect," "intend," "may," "predict," "project," "plan," "target" and similar terms and phrases, including references to assumptions, to identify forward-looking statements. These forward-looking statements are based on the Company's current expectations and beliefs concerning future events affecting the Company and involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. These risks and uncertainties are difficult to predict accurately and may be beyond the control of the Company. The following factors are among those that may cause actual results to differ materially from our forward-looking statements: government regulators and regulations could adversely affect our business; future laws or regulations may hinder or prohibit the production or sale of our existing product and any future products; unfavorable publicity could materially hurt our business and the value of your investment; the Company's ability to protect our intellectual property rights and the value of our product; and the illiquidity of our common stock. These and other additional risk factors and uncertainties are discussed in greater detail in the Company's Annual Report on Form 10-KSB under the caption "Risk Factors," and in other documents filed the Company from time to time with the Securities and Exchange Commission. Forward-looking statements made by the Company in this news release or elsewhere speak only as of the date made. New uncertainties and risks come up from time to time, and it is impossible for the Company to predict these events or how they may affect the Company. The Company has no duty to, and does not intend to, update or revise the forward-looking statements in this news release after the date it is issued. In light of these risks and uncertainties, investors should keep in mind that the results, events or developments disclosed in any forward-looking statement made in this news release may not occur.
SOURCE: Lifevantage Corporation
LOL. Yep, first were up then were down. Can't judge by one day action though. Patience will pay on this one in the long run. Might pick up a little more, even though I'll be averaging up a bit.
GLTY
patience...as usual
Nice steady climb so far. First profitable quarter not too far down the road. Loss keeps narrowing. Then BOOM!
Positive earnings report.
BELLEVUE, Wash., Oct 26, 2006 (BUSINESS WIRE) -- drugstore.com, inc. (DSCM, Trade), a leading online provider of health, beauty, vision, and pharmacy products, today announced its financial results for the third quarter ended October 1, 2006. The company reported quarterly net sales of $100.6 million, driven by 17% year-over-year growth in core over-the-counter (OTC) net sales (1), and a net loss of $2.6 million, or $0.03 per share, reflecting a $4.5 million improvement from the same period of 2005. During the quarter, the company generated $1.9 million in operating cash flows, the highest in the company's history, and achieved its second consecutive quarter of solid, adjusted EBITDA. Adjusted EBITDA of $1.3 million was an improvement of nearly $6.0 million from the third quarter of 2005. Adjusted EBITDA is a non-GAAP financial measure defined as earnings before interest, taxes, depreciation, and amortization of intangible assets and non-cash marketing expense, adjusted to exclude the impact of stock-based compensation expense.
"Our third quarter results reflect continued progress in 2006 and steady improvement of our business model, with record positive cash flows from operations," said Dawn Lepore, chief executive officer and chairman of the board of drugstore.com, inc. "As part of our strategic plan, we have focused on our OTC segment where gross margins increased by 320 basis points to 30.2% and contribution margin dollars increased 41% over the third quarter of 2005. Along with margin expansion, we continue to see healthy sales growth of over 17% in our core OTC business which was driven by the strong performance of a number of key categories - most notably our beauty business. Beauty.com reported 38% year-over-year growth, reflecting the addition of a number of high-end prestige brands."
"As we enter our seasonally strong fourth quarter, we are focused on delivering strong results and driving accelerated growth through a number of strategic initiatives and new partnerships," added Ms. Lepore.
GAAP net loss for the third quarter of 2006 was $2.6 million, or $0.03 per share, compared to a net loss of $7.1 million, or $0.08 per share, for the third quarter of 2005. The company's GAAP results reflect $1.8 million in non-cash share-based compensation associated with FAS 123R. In accordance with FAS 123R, the expense for current and comparative periods is reflected within the applicable functional operating expense lines within the statement of operations.
1. Core OTC net sales is a non-GAAP financial measure that excludes from OTC net sales the company's wholesale OTC net sales and Custom Nutrition Services ("CNS") net sales. Wholesale OTC sales were generated by the company's December 2003 agreement to provide fulfillment services to Amazon.com, Inc., which was terminated effective as of November 9, 2005. CNS sales are generated by sales of customized vitamins through the company's CNS subsidiary. Prior to December 31, 2005, all CNS sales were recognized on a gross basis, net of promotional discounts, cancellations, rebates and returns allowances. Under the terms of the company's December 31, 2005 fulfillment agreement with Weil Lifestyle, LLC (Weil), the company recognizes on a net basis the revenue associated with the fulfillment of customized vitamins sold through its fulfillment agreement with Weil (which made up the majority of CNS net sales during the quarter). A reconciliation of OTC net sales to core OTC net sales is included in the financial data accompanying this press release.
Outlook for Fourth Quarter of 2006
For the fourth quarter of 2006, the company is targeting net sales in the range of $108 million to $110 million, net loss in the range of $2.9 million to $3.4 million, and adjusted EBITDA in the range of $1.0 million to $1.5 million.
Financial and Operational Highlights for the Third Quarter of 2006
(All comparisons are made to the third quarter of 2005.)
Key Financial Highlights:
-- Total contribution margin dollars increased 29%, while the company reduced fixed costs by 7%.
-- Contribution margin dollars from the OTC segment grew by 41%.
-- Gross margin expansion was a key contributor to contribution margin growth. Overall gross margin increased by 160 basis points, while OTC gross margin increased by 320 basis points.
-- Total orders grew 4% to 1.3 million while contribution margin dollars per order grew by 24% to $11.
-- Core OTC (1) order volumes grew by 20%
-- Cash flow provided by operating activities was $1.9 million.
Net Sales Summary:
-- Core OTC net sales (1) grew by 17% to $45.0 million.
-- Mail-order pharmacy net sales were down 11% to $17.2 million.
-- Local pick-up pharmacy net sales were up 8% to $25.2 million.
-- Vision net sales grew to $12.7 million, a 3% increase.
-- Average net sales per order were $77. Average net sales per order were relatively flat for OTC at $55, up by 18% to an all-time high of $176 for Mail-Order Pharmacy, down 6% to $104 for Local Pick-Up Pharmacy, and grew by 11% to $92 for Vision.
-- Net sales from repeat customers represented 82% of net sales. (2)
Key Customer Milestones:
-- 8.1 million customers have been served since inception, including 283,000 new customers in the third quarter.
-- The number of active customers (3) grew by 11% to just under 2.2 million.
-- The average annual spend per active customer (3) was $188.
-- During the quarter, the company fulfilled its 25 millionth order since inception.
Other Financial Highlights:
-- Fulfillment and order processing expenses decreased to 9.9% of net sales, from 10.1%.
-- Inventory turned at an annualized rate of 14 times during the quarter.
2. Net sales from repeat customers excludes wholesale OTC and Weil-related CNS net sales and reflects only the activity of customers making purchases through the Web sites of drugstore.com and its subsidiaries.
3. Active customer base reflects those customers who have purchased at least once within the last 12 months. Both the active customer base (a trailing 12-month number) and average annual spend per active customer exclude net sales and orders generated by the company's wholesale OTC and CNS fulfillment relationship with Weil, and reflect only the activity of customers making purchases through the Web sites of drugstore.com and its subsidiaries.
Nope..pullback won't happen.....not to 3 anyway.
Me too. Been wanting to get more on a pullback but I don't know about that. We're at a new 52 week high right now!
I got some a month ago:
http://www.investorshub.com/boards/read_msg.asp?message_id=13614333
Though I was hoping to get more near 3 on a weak day.
They report after the close today, and I expect good news. Looking at the pps right now alot of investors feel the same way. Many stocks pps fall at this moment. We shall see.
Right post at the right moment.
Earnings release Oct. 26 after the close. I expect upside report. Partnered with WEB MD. Think this one has alot of upside and little downside.
IMHO
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