Chattem Reports $59.2 Million in Revenues in Third Quarter

Chattem, Inc., Chattanooga, TN, announced total revenues were $59.2 million, operating income was $15.9 million and income before accounting change was $6.8 million for the third quarter ended Aug. 31. Earnings per share jumped 6.25% compared to the third quarter of 2002.

For the first nine months, total revenues were $181.2 million, operating income was $45.4 million and income before accounting change was $18.9 million. Earnings per share grew 27% compared to the same period in 2002.

Third quarter results were highlighted by year-over-year sales increases from Gold Bond, Selsun blue, Garlique and NewPhase, offset by declines in the topical analgesic portfolio, Dexatrim, pHisoderm and Pamprin.

Net sales of the Gold Bond franchise were up 18% led by the three new items shipped in the second quarter and the continuing strength of the foot care portion of the business. Domestic net sales of Selsun blue increased 14%. Icy Hot experienced flat sales in the quarter. Sales of pHisoderm were off 29% as the brand began to compare to a year-ago period when the brand was relaunched and the Clear Confidence Clear Swab was initially shipped to retailers. However, retail sales for pHisoderm for the 13-week period ended Aug. 23 were down 1%.

For the fourth quarter of 2003, Chattem expects total revenues to be in the $51-53 million range. For fiscal 2004, Chattem’s current expectations are that total revenues will grow 5-8% over fiscal 2003 levels.

Chattem will also launch Gold Bond Ultimate Healing Skin Therapy lotion and pHisoderm Clear Confidence Self-Heating daily scrub and pHisoderm Clear Confidence Herbal astringent in 2004. Chattem also plans line extensions under the Icy Hot, Selsun blue and BullFrog brands during the first half of 2004.