Action Performance Reports Fiscal 2002 First-Quarter Results, Second Consecutive Quarter of Record Revenues, Earnings.Business Editors & Sports Writers The following is a list of sports writers. Historical sportswriters
PHOENIX--(BUSINESS WIRE)--Jan. 28, 2002 Action Performance Companies, Inc. (Company) (Nasdaq:ACTN ACTN Action ACTN Acetone ), the leader in the design, marketing, promotion, and distribution of licensed motorsports merchandise, today reported record first-quarter results for the fiscal 2002 quarter ended December 31, 2001, the second consecutive quarter of record revenues and earnings, and the fourth consecutive quarter of revenue and earnings growth over prior-year periods. Revenues reached a first-quarter record of $84.1 million, up 65.3% from $50.9 million in the first quarter of fiscal 2001. Strong growth was reported for both die-cast and apparel distribution channels. Die-cast sales increased 89.9% to $55.1 million from $29.0 million in the prior-year quarter. Sales of Winner's Circle win·ner's circle n. pl. winners' circles An enclosed area at a racetrack where the winning horse and jockey are brought for awards and publicity. Noun 1. brand die cast, acquired in May 2001, contributed $7.6 million, or 26.1%, of the increase in die-cast sales. Apparel sales rose 42.7% to $20.0 million from $14.0 million in the year-ago quarter, reflecting increased demand from both wholesale and mass retail channels. Trackside track·side n. The area near a track, especially a racetrack. sales were up 33.4% to $8.0 million from $6.0 million. Net income, before a gain on debt repurchased during the quarter, was also a first-quarter record of $8.1 million, or 45 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. , compared to a year-earlier loss of $73 thousand, or less than 1 cent per share. Net income included a provision for the exposure to the Kmart bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most of $1.0 million, or 3 cents per share. Net income, including the gain on the debt 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. , was 46 cents per share. The Company's per share net of 45 cents for first quarter 2002 bettered street estimates, which ranged from 22 cents to 27 cents. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Cost of sales 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. remained under tight control. As a result, gross margins improved to 37.9% of sales, compared to 35.5% in the prior year. Operating expenses were $17.7 million, or 21.0% of sales, compared to $16.6 million, or 32.7% of sales in fiscal 2001 first quarter. A $1.0 million reduction in operating expenses resulting from the adoption of FAS 142, which no longer requires amortization of certain intangibles, was offset by a $1.0 million provision for potential losses related to Kmart receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed . From October 1, 2001, through December 31, 2001, shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. rose $11.9 million to $171.7 million, while long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. declined $5.0 million to $52.4 million. Action Performance 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. Fred Wagenhals stated: "We are quite pleased with the quarter's results for two reasons. First, our acquisition of Winner's Circle from Hasbro to build a mass retail die-cast presence has proven successful. Secondly, we continue to see indications of NASCAR's increasing popularity, which we believe will continue to positively impact the sales of racing-related merchandise." Wagenhals continued: "Strong revenue growth continues to validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data our commitment to maintain and expand our core business while remaining focused on our competitive advantages: a dominant portfolio of 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. licensing agreements with NASCAR's top drivers and teams; streamlined operations; a large, diverse distribution network; and innovative marketing programs and special promotions. For example, we are particularly excited about the `ET' special promotion with Universal Studios, GM Goodwrench GM Goodwrench is an auto repair service for General Motors. Goodwrench took to the national airwaves in 1977 as a way to market General Motors franchised dealers' service departments, replacing a patchwork of separate GM-divisional offerings. and Kevin Harvick For the racing team owned by Kevin Harvick and his wife Delana, see . Kevin Michael Harvick (born December 8, 1975 in Bakersfield, California) is an American race car driver and car owner, competing in the NASCAR NEXTEL Cup and Busch Series for Richard Childress Racing, driving with Richard Childress Racing RCR Enterprises, LLC, doing business as Richard Childress Racing, is a NASCAR team fielding Chevrolets for Kevin Harvick, Clint Bowyer, Jeff Burton, and Scott Wimmer in the NEXTEL Cup Series as well as the #2 BB&T Chevy for Clint Bowyer, the #21 AutoZone Chevy for Harvick to celebrate the 20th anniversary of the movie `E.T. The Extraterrestrial,' one of the most popular movies and entertainment properties ever produced." David Martin David Martin may refer to: Politicians
Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. strength in retail sales during the holiday season, which resulted in higher sales levels in the first quarter, typically the weakest quarter in our fiscal year. "Gross margins for the quarter improved as we continued to enforce operating and purchasing controls and also reduced low margin sales," Martin continued. "The ability to stabilize stabilize See peg. operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. levels in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite increasing volumes indicates the potential for our business model to generate further operational efficiencies as sales growth continues. Our continuing strong liquidity allowed the further reduction of the Company's outstanding convertible notes due 2004." Martin added: "First quarter sales to Kmart were approximately $3.6 million, or approximately 4% of total sales for the quarter. We expect Kmart's bankruptcy to have little, if any, effect on future sales, as Kmart has initially indicated that it anticipates no reduction in sales of Action's products." About Action Performance 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 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 QVC QVC Quality Value Convenience QVC Question Valid Command , 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 ), goracing.com, trackside 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. regarding the 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. , sales, the Company's core business, special promotions, sales and earnings growth, and operating efficiencies. 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 its business plan, the success of cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. efforts, 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 September 30, 2001, on file with the U.S. Securities and Exchange Commission.
ACTION PERFORMANCE COMPANIES, INC.
Unaudited Condensed Consolidated Statements of Operations
Three Months Ended December 31, 2001 and 2000
(in thousands, except per share data)
Three Months Ended
---------------------
2001 2000
-------- --------
Sales $ 84,136 $ 50,888
Cost of sales 52,285 32,806
-------- --------
Gross profit 31,851 18,082
-------- --------
Operating expenses:
Selling, general and administrative 17,172 14,867
Amortization of goodwill -- 985
Amortization of intangibles 506 768
-------- --------
Total operating expenses 17,678 16,620
-------- --------
Income from operations 14,173 1,462
Interest expense (845) (1,445)
Minority interests and other, net (126) (140)
-------- --------
Income (loss) before income taxes
and extraordinary gain 13,202 (123)
Income taxes 5,122 (50)
-------- --------
Income (loss) before extraordinary gain 8,080 (73)
Extraordinary gain on extinguishment
of debt, net of tax 150 --
-------- --------
Net income (loss) $ 8,230 $ (73)
======== ========
EARNINGS PER COMMON SHARE:
Basic-
Income Before Extraordinary Gain $ 0.47 $ --
Extraordinary Gain 0.01 --
-------- --------
Net Income $ 0.48 $ --
======== ========
Diluted-
Income Before Extraordinary Gain $ 0.45 $ --
Extraordinary Gain 0.01 --
-------- --------
Net Income $ 0.46 $ --
======== ========
Weighted Average Shares Outstanding-
Basic 17,245 16,243
Diluted 19,053 16,243
ACTION PERFORMANCE COMPANIES, INC.
Condensed Consolidated Balance Sheets
December 31, 2001 and September 30, 2001
(in thousands)
December 31, Sept. 30,
2001 2001
------------ ---------
(Unaudited)
Current Assets:
Cash $ 64,352 $ 64,514
Accounts receivable, net 38,654 40,725
Inventories 24,083 25,120
Prepaid royalties 10,036 10,222
Deferred taxes 2,639 2,672
Prepaid expenses and other 1,769 1,392
-------- --------
Total Current Assets 141,533 144,645
Property and Equipment, net 42,280 40,356
Goodwill 76,577 76,937
Licenses and Trademark 12,480 12,785
Other Assets 3,995 4,230
-------- --------
$276,865 $278,953
======== ========
Current Liabilities:
Accounts payable $ 13,827 $ 18,371
Accrued royalties 13,149 16,792
Accrued expenses and other 18,389 18,755
Current portion of long-term debt 379 424
-------- --------
Total Current Liabilities 45,744 54,342
4 3/4% Convertible Subordinated Notes 49,933 54,933
Other Long-term Debt and Liabilities 6,501 6,773
Minority Interests 2,971 3,079
Shareholders' Equity 171,716 159,826
-------- --------
$276,865 $278,953
======== ========
ACTION PERFORMANCE COMPANIES, INC.
Condensed Consolidated Statements of Cash Flows
Three Months Ended December 31, 2001 and 2000
(in thousands)
Three Months Ended
--------------------
2001 2000
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 8,230 $ (73)
Adjustments to reconcile net
income to net cash
used in operations-
Deferred income taxes 6 2,704
Depreciation and amortization 5,862 6,216
Tax benefit on stock option exercises 1,228 --
Gain on extinguishment of debt (239) --
Other (131) 318
Changes in assets and liabilities,
net of businesses disposed-
Accounts receivable 1,941 (3,502)
Accounts payable (4,426) (3,013)
Inventories 957 3,880
Prepaid royalties and accrued royalties (3,457) (2,896)
Other (6,212) (4,864)
-------- --------
Net cash from (used in) operations 3,759 (1,230)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures, net (5,533) (6,902)
Disposition, net of costs -- 3,950
Other (238) --
-------- --------
Net cash used in investing activities (5,771) (2,952)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Long-term debt repayments (198) (86)
Stock option exercises 2,139 --
Other -- (529)
-------- --------
Net cash from (used in)
financing activities 1,941 (615)
-------- --------
Effect of exchange rate changes
on cash and cash equivalents (91) 271
-------- --------
Net change in cash and cash equivalents (162) (4,526)
Cash and cash equivalents,
beginning of period 64,514 22,758
-------- --------
Cash and cash equivalents, end of period $ 64,352 $ 18,232
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