Menley & James Reports Net Loss for 1997 Fourth Quarter

Strategic Insights -

Menley & James, Inc., a Pennsylvania-based company, released its financial results for the fourth quarter and year ended December 31, 1997. The company reported a net loss of $91,000, or $0.01 per share, on net sales of $4.0 million for the fourth quarter. This compared to a net income of $83,000, or $0.01 per share, on net sales of $4.1 million in the same period a year ago. For the full year 1997, Menley & James had a net loss of $247,000, or $0.04 per share, on net sales of $14.4 million, whereas in 1996, the company had a net loss of $38,000, or $0.01 per share, on sales of $14.3 million.

Key Takeaways:

  • Menley & James reported a net loss of $91,000 for the fourth quarter ended December 31, 1997, compared to a net income of $83,000 in the same period a year ago.
  • The company maintained its sales level by focusing marketing efforts on selected unique products, but declined in the face of competition from prescription to nonprescription products and private label products.
  • Menley & James' balance sheet remains strong with working capital of $8.4 million and a cash balance of $2.9 million at the end of 1997.
  • The company's brands continue to decline, but new products being marketed under agreements with three pharmaceutical companies are being marketed.
  • Menley & James' portfolio includes over-the-counter (OTC) pharmaceutical and toiletry products sold in drug stores, supermarkets, and mass merchandisers throughout the United States.

Statistics:

  • Net sales for the fourth quarter ended December 31, 1997: $4.0 million
  • Net sales for the same period a year ago: $4.1 million
  • Net loss for the fourth quarter ended December 31, 1997: $91,000
  • Net income for the same period a year ago: $83,000
  • Net loss for the year ended December 31, 1997: $247,000
  • Net loss for the year ended December 31, 1996: $38,000
  • Working capital at December 31, 1997: $8.4 million
  • Cash balance at December 31, 1997: $2.9 million

Sources:

  • PR Newswire, "Menley & James, Inc. Reports Financial Results For Fourth Quarter and Year Ended December 31, 1997"
  • Menley & James, Inc. (Nasdaq: MENJ)
  • William Yeager, Chief Financial Officer of Menley & James, 215-441-6520