Acorn Products, Inc. Reports Weakness in Spring Sales.COLUMBUS, Ohio--(BUSINESS WIRE)--April 7, 1998--Acorn Products, Inc. (Nasdaq:ACRN ACRN America's Career Resource Network ACRN Accounting Classification Reference Number ACRN Asthma Clinical Research Network (National Heart, Lung and Blood Institute) ACRN AIDS Certified Registered Nurse ) today reported that sluggish demand adversely affected sales in February and March, the first two months of its third quarter. Gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. for the two months were approximately $27.0 million, down approximately 3.6% from the comparable period in fiscal 1997. The shortfall in gross sales resulted primarily from weakness in initial spring stocking orders. Sales in April are not expected to offset the weakness experienced in February and March. The Company believes that the lower than anticipated sales levels will adversely affect earnings in the third quarter as lower overhead absorption rates impact gross margins and selling, general and administrative expenses increase as a percentage of net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight . Therefore the Company expects its financial results for the third quarter ending April 30, 1998 to be below analysts' expectations. Acorn Products, Inc., through its operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. UnionTools, Inc. and H.B. Sherman Manufacturing Company, is a leading manufacturer and marketer of non-powered lawn and garden tools in the U.S. The Company's principal products include long handle tools (such as forks, hoes, rakes and shovels), snow tools, posthole diggers Noun 1. posthole digger - a shovel used to sink postholes post-hole digger shovel - a hand tool for lifting loose material; consists of a curved container or scoop and a handle , wheelbarrows, striking tools, cutting tools, hose reels A hose reel is a length of hollow plastic or rubber with a nozzle on one end that connects to a water supply. Hose reels are used to move water from one place to another. and hose attachments such as spray nozzles, sprinklers and couplings. The Company sells its products under a variety of well-known brand names, including Razor-Back(R), Union(R), Yard 'n Garden(R), Perfect Cut(R), and, pursuant to a license agreement, Scotts(R). In addition, the Company manufactures private label products for a variety of retailers. The Company's customers include mass merchants, home centers, buying groups and farm and industrial suppliers. -0- Razor-Back(R), Union(R), Yard 'n Garden(R) and Perfect Cut(R) are registered trademarks of the Company. Scotts(R) is a registered trademark of The Scotts Company. -0- The statements contained herein that are not purely historical are forward looking statements within the meaning of the Securities Exchange Act of 1934, including statements regarding the Company's expectations, beliefs, hopes, intentions or strategies regarding the future. All forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. contained herein are based upon information available to the Company as of the date hereof, and the Company assumes no obligation to update any such forward-looking statements. Actual results could differ materially from the Company's current expectations. Factors that could cause or contribute to such differences include, but are not limited to, the factors and risks discussed in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. dated October 29, 1997, the Company's Current Report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. dated September 18, 1997 and the other reports filed from time to time by the Company with the Securities and Exchange Commission. CONTACT: Acorn Products, Inc., Columbus J. Mitchell Dolloff, 614/222-4400 |
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