Action Performance Reports Fiscal 2001 Third-Quarter, Nine-Month Results; Sales Growth and Profit Turnaround Continues.Business Editors & Sports Writers The following is a list of sports writers. Historical sportswriters
PHOENIX--(BUSINESS WIRE)--July 25, 2001 Action Performance Cos. Inc. (company) (Nasdaq:ACTN ACTN Action ACTN Acetone ), the leader in the design, marketing, promotion and distribution of licensed motorsports merchandise, today reported results for fiscal 2001 third-quarter and nine-month periods ended June June: see month. 30, 2001, including higher sales and continuing profitability, compared with year-ago losses. Sales for the third quarter rose 21 percent to $92.1 million from $76.1 million in the third quarter of 2000. Net income before extraordinary gains from note repurchases was $8.2 million, or 48 cents a share, vs. a net loss of $23.6 million, or $1.44 per share, in the year-earlier quarter. Prior-year losses included $15.2 million in charges related to goracing.com and $15.0 million of asset write-downs and impairments. Including extraordinary after-tax gains of $2.0 million, or 10 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , resulting from the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of $21.1 million of the company's 4-3/4 percent convertible subordinated notes during the quarter, net income for the third quarter of 2001 was $10.2 million, or 58 cents per share. Third-quarter EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , excluding the extraordinary gains, was $21.0 million. Third-quarter sales growth was attributed to higher sales of apparel and die cast, primarily due to heightened consumer awareness and increased popularity of NASCAR racing The NASCAR Racing series of video games, developed by Papyrus, started in 1994 and ended with the release of NASCAR Racing 2003 Season in 2003. Later NASCAR games were released by Electronic Arts, who took over the official sport license. . The company attributed its stronger margins and profitability to higher sales and effective control over production costs and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . In addition, the company's effective tax rate was 34 percent for the quarter, approximating the estimated effective tax rate for the year. For the nine-month period, sales were $213.1 million, vs. $198.9 million in 2000. Net income before extraordinary gains was $10.8 million, or 66 cents per share, compared with a net loss of $29.8 million, or $1.80 per share, for the prior-year period, which also included $17.5 million of charges related to goracing.com and $15.0 million of other special charges. Including extraordinary after-tax gains for the period totaling $8.1 million, or 49 cents per share, net income for the fiscal 2001 nine-month period was $18.8 million, or $1.15 per share. EBITDA for the nine-month period, excluding extraordinary gains, was $41.9 million. Fred Wagenhals, Action Performance chairman, president and chief executive officer, stated: "We are obviously pleased with these results, which reflect the strength of our exclusive, 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. licenses, expanding distribution network, and the resulting ability to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the increased popularity of NASCAR racing. We are also pleased with the enthusiasm of high-visibility companies like Warner Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) . in being associated with NASCAR NASCAR (National Association for Stock Car Auto Racing), organization that sanctions American stock-car races, est. 1948. It held its first race in Daytona Beach, Fla. . "With their well-established, highly recognized brands and trademarks, endorsement and support, Action can create high-quality special programs like the previously announced Looney Tunes commemorative com·mem·o·ra·tive adj. Honoring or preserving the memory of another. n. Something that honors or preserves the memory of another. com·mem event scheduled this fall. We feel these one-of-a-kind special events will be important contributors to the company's continued growth." David Martin David Martin may refer to: Politicians
A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: through effective control over cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold and operating expenses. Our ability to continue to manage expenditures at all levels will be an important factor in sustaining this level of profitability." Martin also stated: "We are particularly pleased with the continued improvement of Action's balance sheet, including the reduction in convertible notes outstanding during the quarter by an additional $21.1 million to $60.8 million. "As previously reported, the $21.1 million in notes were retired by payments totaling $1.3 million cash and 704,000 treasury shares of common stock valued at $16.2 million. Our cash position of $40.4 million, in a period during which we make substantial working capital investments, is indicative of Action's growing profitability and free cash flow. "Additionally, just after the end of the quarter, we paid $4.0 million in cash to settle a long-term obligation, extending through 2007 and valued at $4.8 million, which remained from the 1997 acquisition of Revell's die cast business," Martin continued. "The settlement also eliminated future contingent royalty payments by Action, for trademark usage, through 2007. The $800,000 benefit from the settlement will be recorded as an extraordinary gain in the fourth quarter." About Action Performance Action Performance Cos. 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 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 sales and distribution channels, including the Racing Collectables Club of America (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 ), 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 news 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. regarding business growth, managing costs and expenses, and profitability. The company's actual results could differ materially from those set forth in these forward-looking statements. Factors that might cause such differences include, among others, the ability to successfully execute the company's business plan, the success of cost-containment efforts, the results of the transition of the company's RCCA business to QVC QVC Quality Value Convenience QVC Question Valid Command , competitive pressures, acceptance of the company's products and services in the marketplace, the success of new marketing programs, the company's ability to successfully execute its agreements with other parties, and other 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. , dated Sept. 30, 2000, on file with the U.S. Securities and Exchange Commission.
ACTION PERFORMANCE COS. INC.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per-share data)
Three months ended Nine months ended
June 30, June 30,
2001 2000 2001 2000
Sales $92,102 $ 76,055 $213,067 $198,905
Cost of sales 58,456 61,064 137,352 145,854
Gross profit 33,646 14,991 75,715 53,051
Operating expenses:
Selling, general and
administrative 17,951 33,446 49,450 76,144
Amortization of
intangibles 1,509 9,216 4,747 13,443
Total operating expenses 19,460 42,662 54,197 89,587
Income (loss) from
operations 14,186 (27,671) 21,518 (36,536)
Other income (expense):
Minority interests (444) (9) (1,279) (283)
Interest income and other,
net (112) (401) 584 682
Interest expense (1,169) (2,299) (4,155) (5,465)
Total other expense, net (1,725) (2,709) (4,850) (5,066)
Income (loss) before
provision for (benefit
from) income taxes and
extraordinary item 12,461 (30,380) 16,668 (41,602)
Provision for (benefit
from) income taxes 4,233 (6,809) 5,917 (11,765)
Income (loss) before
extraordinary item 8,228 (23,571) 10,751 (29,837)
Extraordinary gain, net
of tax 1,981 -- 8,068 --
Net income (loss) $10,209 $(23,571) $ 18,819 $(29,837)
Earnings per common share:
Income (loss) before
extraordinary gain --
Basic $ 0.51 $ (1.44) $ 0.67 $ (1.80)
Diluted $ 0.48 $ (1.44) $ 0.66 $ (1.80)
Extraordinary gain --
Basic $ 0.12 -- $ 0.50 --
Diluted $ 0.10 -- $ 0.49 --
Net income (loss):
Basic $ 0.63 $ (1.44) $ 1.17 $ (1.80)
Diluted $ 0.58 $ (1.44) $ 1.15 $ (1.80)
Weighted average shares
outstanding --
Basic 16,138 16,358 16,142 16,563
Diluted 18,516 16,358 16,425 16,563
ACTION PERFORMANCE COS. INC.
Condensed Consolidated Balance Sheets
June 30, 2001, and Sept. 30, 2000
(In thousands)
June 30, Sept. 30,
2001 2000
(Unaudited)
Current assets:
Cash $ 40,374 $ 22,758
Accounts receivable, net 44,305 22,901
Inventories 27,080 32,017
Prepaid royalties 12,419 7,262
Estimated income tax receivable -- 14,000
Deferred tax asset 3,257 5,905
Prepaid expenses and other assets 2,167 1,942
Total current assets 129,602 106,785
Property and equipment, net 39,540 46,066
Goodwill and other intangibles, net 88,409 94,894
Long-term deferred tax asset -- 1,423
Other assets 4,457 6,749
$262,008 $255,917
Current liabilities:
Accounts payable $ 16,714 $ 16,510
Accrued royalties 16,586 9,998
Accrued expenses and other 15,500 14,250
Current portion of long-term debt 1,278 1,503
Total current liabilities 50,078 42,261
4-3/4% convertible subordinated notes 60,833 100,000
Other long-term debt and liabilities 8,938 8,340
Commitments and contingencies
Minority interests 3,877 2,598
Shareholders' equity 138,282 102,718
$262,008 $255,917
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