Action Performance Reports Record Sales and Earnings.PHOENIX--(BUSINESS WIRE)--Nov. 19, 1997--Action Performance Companies Inc. (Nasdaq NM:ACTN ACTN Action ACTN Acetone ) Wednesday Wednesday: see week. announced record sales and earnings (before a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge associated with the Action Products Inc. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ) for its fiscal fourth quarter and year ended Sept. 30, 1997. For the fiscal fourth quarter, sales grew by more than threefold to a record $47.3 million from $14.2 million for the comparable quarter of 1996. Net income for the period rose approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 127 percent to $5.0 million, or to 31 cents per fully 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, compared with net income of $2.2 million, or 16 cents per fully diluted share, in the fourth quarter a year ago. For fiscal 1997, the company achieved record sales of $130.4 million, an increase of approximately 195 percent from sales of $44.2 million in fiscal 1996. Net income for the period, before the one-time charge, more than doubled to a record $13.4 million, or 91 cents per fully diluted share, vs. net income of $6.0 million, or 46 cents per fully diluted share, for fiscal 1996. Net income for the period, including the one-time charge, was $10.1 million, or 69 cents per fully diluted share. Said 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 chief executive officer: "We are extremely pleased with our record performance for fourth-quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results. It has been a great year, and a variety of factors contributed to our record results. Of course, one of the most significant ones was our numerous acquisitions of complementary apparel and souvenir businesses." During fiscal 1997, the company made six acquisitions, including Sports Image Inc., Motorsport Traditions Limited Partnership, Creative Marketing & Promotions Inc., Robert Yates Robert Yates may refer to:
British obstetrician and a founder of gynecology. He is also known for introducing the use of chloroform as an anesthetic. Race Products. Wagenhals explained: "With the acquired businesses, we were able to add new products and add or expand important distribution channels. Other factors that contributed to our growth were new and extended license agreements 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. , top race teams and drivers, and our ability to leverage our core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. to grow sales in existing and newly acquired operations. "We have also continued to achieve profitability gains by realizing cost efficiencies from the synergies that our acquired businesses contribute to existing operations. Of course, the ongoing strong demand for motorsports-related merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain , which is being driven by the popularity of NASCAR and other categories of racing, really underlies all of these factors in our continuing growth." After the close of the year, the company entered into a 10-year license agreement 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 Enterprises Inc. and agreed to purchase the motorsports 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 collectibles business of Revell-Monogram Inc. and to enter into a strategic alliance with Revell-Monogram. The purchase and alliance are expected to close by Dec. 31, 1997. "The growth outlook for the 1998 fiscal year is extremely positive," said Wagenhals. "As NASCAR enters its 50th anniversary racing season in 1998, licensed-motorsports merchandise sales are expected to continue to experience healthy growth. With our core operations and acquisitions of profitable businesses, we are well positioned to capture a major share of that growth as the leading force in motorsports merchandise marketing." Action Performance Companies is the leader in the design, marketing and distribution of licensed motorsports merchandise. Its products include a broad range of motorsports-related apparel, souvenirs, 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 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 100,000-member 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 ), 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 nationwide wholesale network of approximately 5,000 specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. dealers and distributors. The statements in this news release regarding sales and earnings growth, expectations regarding the continued popularity of motorsports and growth in the market for licensed motorsports merchandise, potential acquisitions, and achievement of cost savings associated with acquisitions are 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. . These forward-looking statements involve risks and uncertainties, many of which are beyond the company's control, including the rate and amount of actual growth in the motorsports merchandise markets, the popularity and market acceptance of new products introduced by the company or its competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. and general economic conditions. Other risks and uncertainties are detailed in the company's Securities and Exchange Commission filings. Actual results may differ materially from the expectations expressed in this release. -0-
Action Performance Companies Inc.
Summary Consolidated Statements of Operations
(in thousands, except share data)
Three Months Ended
Sept. 30,
----------------------------------
1997 1996
----------------------------------
Sales:
Collectibles $ 23,648 $ 12,259
Apparel and souvenirs 20,134 551
Promotional 600 -
Other 2,888 1,351
----------------------------------
Net sales 47,270 14,161
Cost of sales 29,745 7,854
----------------------------------
Gross profit 17,525 6,307
Operating expenses:
Selling, general & administrative 8,711 2,812
Settlement costs (a) - -
Goodwill amortization 453 1
----------------------------------
Total operating expenses 9,164 2,813
----------------------------------
Income from operations 8,361 3,494
Other income (expense):
Interest income and other, net 540 65
Interest expense (496) (12)
----------------------------------
Total other income (expense) 44 53
----------------------------------
Income before income tax provision 8,405 3,547
Provision for income taxes 3,362 1,388
----------------------------------
Net income $ 5,043 $ 2,159
==================================
Net income per common share
Primary $ 0.31 $ 0.16
==================================
Fully diluted $ 0.31 $ 0.16
==================================
Weighted shares outstanding
Primary 16,449,511 13,118,244
==================================
Fully diluted 16,450,105 13,128,333
==================================
EPS effect of one-time charges $ - $ -
12 Months Ended
Sept. 30,
---------------------------
1997 1996
----------- ---------------
Sales:
Collectibles $ 63,847 $ 40,904
Apparel and souvenirs 60,430 1,961
Promotional 1,018 -
Other 5,085 1,351
----------- ---------------
Net sales 130,380 44,216
Cost of sales 80,995 25,296
----------- ---------------
Gross profit 49,385 18,920
Operating expenses:
Selling, general & administrative 24,564 9,262
Settlement costs (a) 5,400 -
Goodwill amortization 1,286 4
----------- ---------------
Total operating expenses $ 31,250 $ 9,266
----------- ---------------
Income from operations 18,135 9,654
Other income (expense):
Interest income and other, net 795 296
Interest expense (2,021) (80)
----------- ---------------
Total other income (expense) (1,226) 216
----------- ---------------
Income before income-tax provision 16,909 9,870
Provision for income taxes 6,763 3,917
----------- ---------------
Net income $ 10,146 $ 5,953
=========== ===============
Net income per common share
Primary $ 0.69 $ 0.46
=========== ===============
Fully diluted $ 0.69 $ 0.46
=========== ===============
Weighted shares outstanding
Primary 14,623,674 13,027,746
=========== ===============
Fully diluted 14,670,786 13,069,380
=========== ===============
(a) Relates to one-time settlement charge and legal fees related to
company's Action Products, Inc. litigation.
EPS effect of one-time charges $ 0.22 $ -
-0-
Summary Consolidated Balance Sheets
(in thousands)
Sept. 30, Sept. 30,
1997 1996
--------------------------
Assets
Current assets:
Cash & short-term investments $ 29,318 $ 4,983
Accounts receivable, net 17,802 7,497
Inventories 17,855 5,834
Deferred tax assets 918 1,032
Prepaid royalties 4,967 2,295
Prepaid expenses and other assets 1,685 740
--------------------------
Total current assets 72,545 22,381
Property and equipment, net 20,017 8,188
Goodwill, net of accumulated amortization
of $1,285, and $11, respectively 46,409 57
Notes receivable and other assets 2,354 1,023
--------------------------
$ 141,325 $ 31,649
==========================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 6,681 $ 2,188
Accrued royalties 5,098 1,180
Accrued expenses and other 3,792 920
--------------------------
Total current liabilities 15,571 4,288
Long-term debt 22,586 365
Shareholders' equity 103,168 26,996
--------------------------
============ ===========
$ 141,325 $ 31,649
==========================
CONTACT: Action Performance Companies Inc., Phoenix Christopher Besing, 602/337-3703 Fred Wagenhals, 602/337-3710 or Silverman Silverman is the surname of:
Eugene Eugene, city (1990 pop. 112,669), seat of Lane co., W Oregon, on the Willamette River; inc. 1862. A processing and shipping center in a farming area, the "Emerald City" has lumbering, food-processing, and microchip and other electronics industries. G. Heller or Glenn Schoenfeld, 310/208-2550 |
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