Business Services Industry
BeautiControl Positions Self as a ``Dot.com'' Leader in the Direct Sales Industry
Business Wire, April 11, 2000
Business Editors
DALLAS--(BUSINESS WIRE)--April 11, 2000
BeautiControl, Inc. (Nasdaq:BUTI), a Dallas-based direct sales marketer and manufacturer of cosmetics-related products and nutritional supplements held its annual meeting of stockholders today and reported significant Internet initiatives and recent progress in its strategic efforts to return the Company to profitability.
"In the first quarter of 2000, BeautiControl returned to profitability through a number of major efficiencies, personnel changes and excellent product introductions. Our goal is to control costs and see that our subsidiaries (which are all recent start ups) at least break even. Both the Chairman of the Board, Jinger L. Heath and I have given day-to-day responsibility of this cost control to President and Chief Operating Officer, Sheila O'Connell Cooper," stated Richard W. Heath, BeautiControl's Chief Executive Officer and Chairman of its Executive Committee. "Ms. Cooper joined BeautiControl in September of 1999, coming over from Mary Kay where she most recently served as Executive Vice President in a 12 year tenure there. The first quarter is an excellent example of Ms. Cooper's guidance over day-to-day spending, efficiencies and cost containment."
"BeautiControl's first quarter 2000 consolidated results were budgeted at an operating loss. In what is normally our worst quarter of the year, we actually earned a $.01 per common share from operations and an additional $.13 per share from the sale of a corporate asset. Through the first month of the second quarter, it appears results will exceed budget as well."
Mr. Heath also commented about the Company's recent Internet initiatives which the Company believes could position it to be a dot.com leader in the direct sales industry. "The management of BeautiControl understands the necessity of providing high-tech avenues for our Consultants to grow their businesses. We also know that our business is one of high-touch. We believe the competitive edge will go to those companies who successfully combine high-tech with high-touch. We believe we have done just that -- we are now a dot.com and a party plan Company.
"BeautiControl now sells directly on the Internet at beauticontrol.com where the consumer can choose high-touch, high-tech or a combination of both. She chooses high-touch by asking for a Consultant via the Consultant's own personal Web page, high-tech where the Company sells directly to the consumer online, or she can choose a combination of both," Mr. Heath commented. Mr. Heath further explained that the Company's Consultants receive commissions on every sale. "This positioning had allowed us to uniquely broaden our business while always including our Consultants.
"Going forward, we plan to grow our business through all markets and avenues. The Internet and other market segments are just the beginning of BeautiControl's willingness to expand to new horizons. The early signs from our field sales organizations to these efforts are exceptional. I personally believe the months ahead will bring satisfaction and comfort to our shareholders."
Company stock is traded on The Nasdaq Stock Market(TM) under the symbol "BUTI" and is listed in the alphabetical quotations under "BeautiCtl" or "BeauCtl."
The information contained in this news release included certain forward-looking statements. It is important to note that actual results could differ materially from those projected by such forward-looking statements. Important factors that could cause actual results to differ materially from those projected in such forward-looking statements include, but are not limited to the following: Consultants' and Distributors' sales activity, recruiting of new Consultants and Distributors, changes in senior management, new product introductions, protection of intellectual property rights and third party infringement, changes in U.S. or international economic conditions, results of international operations including governmental, regulatory, political, foreign exchange rate impacts, and the impact of competition, results of operations in new markets, global and domestic expansion efforts, capital resources and ability to obtain financing, market risks, and risks and costs related to the Year 2000.
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