Key Developments For Physicians Formula Holdings, Inc.
Physicians Formula Holdings, Inc. (FACE.O) (Nasdaq)
Physicians Formula Holdings, Inc. Issues FY 2009 EPS Guidance In Line With Analysts' Estimates; Reaches Senior Secured Asset Loan Agreement
Physicians Formula Holdings, Inc. announced that for fiscal 2009 it expects net loss per diluted common share of between $(0.25) and $(0.33). According to Reuters Estimates, analysts are expecting the Company to report EPS of $(0.27) for fiscal 2009. The Company also announced that the Company will enter into a senior secured asset-based loan with Wells Fargo Business Credit (Wells Fargo) that will provide borrowings of up to $25 million, subject to a borrowing base formula, and an $8 million senior subordinated loan with Mill Road Capital (Mill Road), the Company's largest shareholder. At closing, the Company will borrow $14.7 million under the maximum $25 million Wells Fargo line, after application of the borrowing base formula, and $8 million of junior capital under a senior subordinated loan from Mill Road, for total borrowings of $22.7 million. These proceeds will be used in part to repay $7.7 million of current borrowings from Union Bank, net of cash and cash equivalents and restricted cash, and $4.2 million of bridge loan financing from Mill Road. The Company will also pay $1.8 million in one-time transaction fees. Therefore, the Company expects to have an additional $6.0 million of availability under the Wells Fargo line, after giving effect to $3.0 million in reserves that will be required under the credit agreement with Wells Fargo.
Physicians Formula Holdings, Inc. Emphasizes Not To Provide Guidance In Future; Issues H2 2009 Guidance Below Analysts' Estimates
Physicians Formula Holdings, Inc. announced that the Company emphasizes that it will not continue to provide guidance in the future. The Company expects continuing softness in net sales for second half of 2009, and a net loss per diluted common share of between $(0.25) and $(0.33). These earnings per share estimates include the after-tax, non-cash intangible asset impairment charge of $(0.05) incurred in the second quarter and a substantial, non-cash provision for inventory obsolescence in conjunction with the inventory reduction contemplated as part of the business model modification initiative. According to Reuters Estimates, analysts were expecting the Company to report EPS of $(0.01) for third quarter of 2009; EPS of $0.09 for fourth quarter of 2009.
Physicians Formula Holdings, Inc. Announces Jeff Berry as the New Interim CFO
Physicians Formula Holdings, Inc. announced that Mr. Joseph Jaeger has resigned as the Chief Financial Officer(CFO) for family reasons, effective May 29, 2009. Mr. Jeff Berry will replace him as the Interim CFO, also effective May 29, 2009.
Physicians Formula Holdings, Inc. Announces Changes In Guidance Policy
Physicians Formula Holdings, Inc. announced that it is changing its guidance policy and will not provide specific net sales and EPS guidance going forward. The Company cited that the impact of the weak consumer environment, the Company believes it is very difficult to forecast future operating results with precision and therefore any estimates would have limited value.
Physicians Formula Holdings, Inc. Lowers FY 2008 Guidance
Physicians Formula Holdings, Inc. announced that for fiscal 2008, it expects net sales to be between $112.9-$114.9 million, net income per diluted common share (EPS) is to be between $0.43-$0.48, based on 14.5 million diluted common shares. The Company's previous fiscal 2008 guidance for net sales was in the range of $120-$123 million and net income per diluted common share was in the range of $0.52-$0.57, based on 14.5 million diluted common shares. According to Reuters Estimates, analysts were expecting the Company to report revenues of $120.2 million and EPS of $0.49 for the same period.
