Action Performance Announces Fiscal 2000 First Quarter Operating Results.Business Editors PHOENIX--(BUSINESS WIRE)--Jan. 25, 2000 Action Performance Companies, Inc. (Nasdaq:ACTN ACTN Action ACTN Acetone ) today announced operating results for its fiscal 2000 first quarter ended December December: see month. 31, 1999. For the fiscal first quarter, the Company recorded sales of $64.8 million compared to $71.6 million in the year ago period. Sales were lower than previously anticipated due primarily to delayed orders at the Company's high-margin collectors' club, caused primarily by unforeseen system conversion problems in December 1999. The Company reported a net loss of $2.1 million during the quarter, or $0.13 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, including a $2.3 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta non-recurring charge and expenses associated with its Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the operations. The non-recurring charge includes costs related to the withdrawn public offering of the Company's goracing.com subsidiary and other management restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs. Excluding the non-recurring charges, the Company reported a net loss of approximately $800,000, or $0.05 per diluted share. Net income for the comparable quarter of fiscal 1999 was $4.9 million, or $0.29 per diluted share. Fred (Friendly Rollabout Engineered for Doctors) A mobile medical conferencing unit. See videoconferencing. 1. FRED - Robert Carr. Language used by Framework, Ashton-Tate. 2. W. Wagenhals, Action chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, &uot;As previously announced, I have reassumed marketing responsibility for the Company. We have exciting new promotional programs in the pipeline that will begin to kick in during the third and fourth quarters of this year and into fiscal 2001. &uot;Recently, we made a number of management changes in an effort to strengthen our core business. Our commitment in 2000 is to refine our production cycle and delivery of product to the marketplace. I believe the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. prospects of the motorsports industry and our Company remain strong. We intend to continue repurchasing shares of our common stock under our stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. To date, we have repurchased approximately 500,000 shares of common stock.&uot; Action Performance Companies, Inc. is the leader in the design, marketing, promotion and distribution of licensed motorsports merchandise. Its products include a broad range of motorsports-related die-cast Adj. 1. die-cast - formed by forcing molten metal into a die; "a die-cast seal" formed - having or given a form or shape car replica Earlier document exchange software from Farallon Communications, Inc. that converted a Windows or Mac document into a proprietary viewing format. The viewer could be distributed separately or embedded within the document itself, turning it into a single-document viewer. collectibles, apparel, souvenirs, and other memorabilia mem·o·ra·bil·i·a pl.n. 1. Objects valued for their connection with historical events, culture, or entertainment: posters, publicity photographs, and other movie memorabilia. 2. . The Company markets and distributes products through a variety of channels, including the Racing Collectables Club of America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. (RCCA RCCA Root Cause and Corrective Action (to prevent the recurrence of a defect by eliminating its cause) RCCA Rural Community College Alliance RCCA Roller Coaster Corporation of America RCCA Rod Cluster Control Assembly ), online at goracing.com; trackside track·side n. The area near a track, especially a racetrack. at racing events; mass retail department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. ; and a worldwide network of wholesale distributors and specialty dealers. This press release contains 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. about the Company's future prospects for 2000 and 2001, implementation of new marketing programs, comments about the Company's core business, long-term prospects of the motorsports industry, competition, and the acceptance of the Company's products. These forward-looking statements involve a number of risks and uncertainties that include, but are not limited to, competition, seasonality, the Company's ability to successfully implement new marketing programs, fluctuations in quarterly operating results, consumer interest in the motorsports industry, constantly changing technology, successful implementation of changes to the Company's operations, acceptance of the Company's products in the marketplace and the ability to market and distribute product through distribution channels. For a more detailed discussion of these factors and others, interested parties should review the risks discussed in the Company's 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. for 1999, dated September 30, 1999, which is on file with the U.S. Securities and Exchange Commission. (financial tables follow)
ACTION PERFORMANCE COMPANIES, INC.
Summary Consolidated Statements of Operations
(In Thousands, Except Per Share Data)
Three Months Ended
December 31,
1999 1998
--------- --------
Sales:
Collectibles $35,843 $ 45,867
Apparel and souvenirs 26,821 24,336
Other 2,117 1,363
--------- --------
Net sales 64,781 71,566
Cost of sales 44,886 45,831
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Gross profit 19,895 25,735
Gross profit percentage 30.7% 36.0%
Operating expenses:
Selling, general and administrative 18,097 14,599
Non-recurring charge 2,250 -
Amortization 1,896 1,458
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Total operating expenses 22,243 16,057
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Income (loss) from operations (2,348) 9,678
Interest and other expenses, net (961) (1,400)
Minority interest in earnings (210) (73)
--------- --------
Income (loss) before provision for income taxes (3,519) 8,205
Provision (benefit) for income taxes (1,390) 3,282
========= ========
Net income (loss) $ (2,129) $ 4,923
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Net income (loss) per common share:
Diluted $ (0.13) $ 0.29
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Weighted average shares outstanding:
Diluted 16,909 16,878
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ACTION PERFORMANCE COMPANIES, INC.
Summary Consolidated Balance Sheets
(In Thousands)
December 31, September 30,
1999 1999
----------- -----------
----------- -----------
Current Assets:
Cash $ 33,361 $ 58,523
Accounts receivable, net 42,672 44,988
Inventories 41,779 45,310
Prepaid royalties 9,364 7,271
Other assets 4,051 6,860
----------- -----------
Total Current Assets 131,227 162,952
Property and equipment, net 58,419 56,162
Goodwill and other intangibles, net 112,512 110,421
Other assets 9,467 8,906
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$ 311,625 $ 338,441
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Current Liabilities:
Accounts payable $ 9,694 $ 20,128
Accrued royalties 7,538 13,519
Accrued expenses and other 16,094 20,034
Current portion of long term-debt 1,439 2,713
----------- -----------
Total Current Liabilities 34,765 56,394
Long-term debt 110,892 109,207
Minority interest in subsidiaries 2,241 2,299
Shareholders' Equity 163,727 170,541
----------- -----------
$ 311,625 $ 338,441
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