This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Obagi Medical Products Reports Sales And Earnings Growth For The Fourth Quarter And Year Ended December 31, 2011

Obagi Medical Products, Inc. (NASDAQ: OMPI), a leader in topical aesthetic and therapeutic skin health systems, today reported net income for the fourth quarter ended December 31, 2011 of $5.1 million, or $0.27 per diluted share, up significantly compared with $2.9 million, or $0.14 per diluted share a year earlier.

Net sales for the fourth quarter of 2011 totaled $30.6 million, up from $30.3 million a year ago. By geographic segment, net sales for 2011 reflected 11% growth in international markets and a slight decrease in domestic sales due to the Company’s suspension of shipments of hydroquinone products into Texas in April 2011.

In the fourth quarter of 2011, gross profit was $24.2 million, or 79.2% of total net sales, versus $23.9 million, or 79.0% of total net sales, a year ago. Operating expenses of $16.0 million were down approximately 16% compared with $19.0 million a year ago. This decrease in expenses was due to special charges incurred in the fourth quarter of 2010 related to the Zein Obagi litigation, severance for the prior CEO and costs associated with a secondary offering.

The Company generated $7.8 million in cash flow from operations in the fourth quarter, compared to $5.4 million a year ago. Total cash on hand at December 31, 2011 was $35.0 million. On March 6, 2012, the Company’s Board of Directors expanded its stock buyback program from an existing availability of $10.0 million to a $30.0 million authorization.

Full-Year 2011 Financial Summary:

  • Total net sales were $114.1 million, up from $112.8 million for 2010;
  • Generated net income of $10.0 million, or $0.54 per diluted share, compared with $9.5 million, or $0.44 per diluted share a year ago; and
  • On a non-GAAP basis net sales were $115.8 million and net income was $16.0 million, or $0.86 per diluted share, compared with $14.5 million, or $0.66 per diluted share for 2010. Please refer to the attached table to reconcile GAAP to non-GAAP financial measures.

Fourth Quarter 2011 and Subsequent Period Highlights:

  • Added 282 new accounts, bringing the total number of active accounts to 6,566 at year’s end, up slightly from a year ago;
  • Introduced ELASTIderm Eye Complete Complex Serum. Formulated with a proprietary bi-mineral complex and malonic acid, which in combination have been shown to improve the appearance of fine lines and wrinkles around the eye;
  • Launched a new and improved CLENZIderm M.D. Normal to Oily System, which includes Daily Care Foaming Cleanser (two percent salicylic acid), Pore Therapy (two percent salicylic acid) and Therapeutic Lotion (five percent benzoyl peroxide) for clear skin, fast. This new System is clinically proven to deliver clearer, healthier skin in just two weeks; and
  • Commenced investments for developing the e-Commerce and online pharmacy platform that will support existing and new doctors and end users by:
    • signing a Software License, Development and Services Agreement along with a Supply and Distribution Agreement with an experienced online pharmaceutical vendor for systems and services; and
    • developing a national fulfillment center in Salt Lake City.

Al Hummel, the Company’s President and CEO stated, “In 2011 our core business remained strong with demand for our market leading products solid and new product enhancements and introductions contributing to growth.

1 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,271.52 -14.22 -0.08%
S&P 500 2,130.84 +0.02 0.00%
NASDAQ 5,099.6480 +8.8540 0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs