Action Performance Reports Record Third-Quarter, Nine-Month Results.Business Editors & Sports Writers The following is a list of sports writers. Historical sportswriters
PHOENIX--(BUSINESS WIRE)--July 29, 2002 Sales, Earnings at Historic Record Levels, Company Raises Guidance for Fiscal 2002, Reiterates Guidance for Fiscal 2003 Action Performance Companies, Inc. (Company) (NYSE NYSE See: New York Stock Exchange :ATN ATN Acute tubular necrosis, see there ), the leader in the design, marketing, promotion and distribution of licensed motorsports 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 , today reported record sales and earnings for fiscal 2002 third-quarter and nine-month periods ended June June: see month. 30, 2002. Results were also the highest for any quarter and nine-month period in the Company's history. Sales for the third quarter of 2002 were a record $112.1 million, up 20.6% from $93.0 million in the third quarter of 2001. Third-quarter sales growth was due to higher 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 sales and included $1.0 million from the newly acquired Trevco subsidiary. The third quarter of 2001 sales included $2.5 million from the now-closed U.K. operation. Net income before extraordinary items rose 64.6% to a record $13.5 million, or 72 cents a share, versus $8.2 million, or 48 cents a share, in the prior-year quarter. The third quarters of 2002 and 2001 included extraordinary items related to 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 the Company's 4 3/4% convertible notes due 2005. After the extraordinary items, net income for third quarter 2002 was $12.5 million, or 66 cents a share, compared to $10.2 million, or 58 cents a share for this quarter of 2001. Net income in third quarter 2001 was reduced by goodwill amortization of $1 million, or 4 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. . In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the adoption of FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). 142, such amortization was discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: beginning in 2002. Gross margins for third quarter rose to 39.0% compared to 36.2% for third quarter last year and 38.8% in second quarter 2002. SG&A expenses were 18.0% of revenues versus 19.3% for third quarter 2001 and 18.9% for second quarter 2002. 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 for the quarter increased 35.8% to $28.6 million, compared to $21.0 million in third quarter 2001. Days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). were 41.2 days at June 30, 2002, a decline from 43.4 days in the prior year. Inventory turnover for the quarter was 11.4 times, an increase from 8.8 times in the prior-year quarter. Sales for nine months reached a record $296.4 million, up 37.9% from $214.9 million in 2001. For the nine-month period, net income before extraordinary items rose 205% to a record $32.8 million, or $1.76 per share, compared to $10.8 million, or 66 cents per share, for the year-earlier period. The nine-month periods of 2002 and 2001 included extraordinary items related to the repurchase of the Company's 4 3/4% convertible notes due 2005. After the extraordinary items, net income for nine months 2002 was $31.9 million, or $1.72 per share versus $18.8 million, or $1.15 per share for nine months 2001. EBITDA for the nine-month period increased 75.0% to $73.3 million, compared to $41.9 million in 2001. Fred (Friendly Rollabout Engineered for Doctors) A mobile medical conferencing unit. See videoconferencing. 1. FRED - Robert Carr. Language used by Framework, Ashton-Tate. 2. Wagenhals, 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. , commented: "Action's continuing growth and record-setting financial results are the result of constant focus on the Company's core strengths, including its portfolio of 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. licensing agreements, and our creative development of special programs, such as the recent Muppets promotion. The completion of the Trevco and McArthur McArthur may refer to: Places:
"I am proud of our accomplishments to date and am confident of achieving our fiscal 2003 goal of $500 million in revenue," Wagenhals stated. Action Performance Chief Financial Officer David Martin David Martin may refer to: Politicians
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 collections remained strong in July July: see month. , and cash balances have continued to increase since June 30, 2002, despite the $4.5 million cash outflow for the McArthur acquisition and the acquisition of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2 million of treasury stock during July. This type of cash flow will allow us to consider similar `tuck-in' acquisitions should suitable opportunities arise. "Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: continue to reflect production and operating cost controls, with operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. exceeding 20% of revenues for the quarter, and interest expense continuing to fall as we reduce the Company's outstanding 4 3/4% convertible notes," Martin continued. "During the third quarter, we repurchased approximately $10 million of the notes at a slight premium, leaving approximately $38.9 million outstanding. "We estimate fourth-quarter results, including revenues and net income from our Trevco and McArthur acquisitions, at $116 million in revenue and earnings per share of 73 cents," Martin added. "Therefore, we are raising our guidance for fiscal 2002 twelve months to approximately $412 million in revenues and earnings per share of $2.49, both all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal records for the Company. Furthermore, we expect EBITDA for fiscal 2002 to exceed $100 million. Looking ahead to fiscal 2003, we continue to estimate revenues at $500 million and per share earnings at $3.15 to $3.25." 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 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 ), 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 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. 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 Company's competitive position, management, products, sales channels, licenses, future acquisitions, EBITDA, and revenues and earnings. 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 of the parties to execute the terms of the acquisitions, the ability of the Company to successfully execute its business plan, 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 September: see month. 30, 2001, on file with the U.S. Securities and Exchange Commission.
ACTION PERFORMANCE COMPANIES, INC.
Unaudited Condensed Consolidated Statements of Operations
Three and Nine Months Ended June 30, 2002 and 2001
(in thousands, except per share data)
Three Months Ended Nine Months Ended
-------------------- --------------------
2002 2001 2002 2001
--------- --------- --------- ---------
Net sales $ 112,085 $ 92,975 $ 296,406 $ 214,937
Cost of sales 68,347 59,329 181,960 139,222
--------- --------- --------- ---------
Gross profit 43,738 33,646 114,446 75,715
--------- --------- --------- ---------
Operating expenses:
Selling, general
and administrative 20,225 17,951 56,326 49,450
Amortization of goodwill -- 1,011 -- 2,956
Amortization of
intangibles 679 498 1,766 1,791
--------- --------- --------- ---------
Total operating expenses 20,904 19,460 58,092 54,197
--------- --------- --------- ---------
Income from operations 22,834 14,186 56,354 21,518
Interest expense (666) (1,169) (2,372) (4,155)
Minority interests
and other, net (35) (556) (406) (695)
--------- --------- --------- ---------
Income before income taxes
and extraordinary items 22,133 12,461 53,576 16,668
Income taxes 8,587 4,233 20,787 5,917
--------- --------- --------- ---------
Income before
extraordinary items 13,546 8,228 32,789 10,751
Extraordinary gain (loss)
on extinguishment of debt,
net of tax (1,002) 1,981 (854) 8,068
--------- --------- --------- ---------
Net income $ 12,544 $ 10,209 $ 31,935 $ 18,819
========= ========= ========= =========
EARNINGS PER COMMON SHARE:
Basic -
Income before
extraordinary items $ 0.76 $ 0.51 $ 1.87 $ 0.67
Extraordinary items (0.06) 0.12 (0.04) 0.50
--------- --------- --------- ---------
Net income $ 0.70 $ 0.63 $ 1.83 $ 1.17
========= ========= ========= =========
Diluted -
Income before
extraordinary items $ 0.72 $ 0.48 $ 1.76 $ 0.66
Extraordinary items (0.06) 0.10 (0.04) 0.49
--------- --------- --------- ---------
Net income $ 0.66 $ 0.58 $ 1.72 $ 1.15
========= ========= ========= =========
Weighted Average Shares
Outstanding -
Basic 17,801 16,138 17,493 16,142
Diluted 19,388 18,516 19,251 16,425
ACTION PERFORMANCE COMPANIES, INC.
Condensed Consolidated Balance Sheets
June 30, 2002 and September 30, 2001
(in thousands)
June 30, September 30,
2002 2001
------------- --------------
(Unaudited)
Current Assets:
Cash and cash equivalents $ 76,565 $ 64,514
Accounts receivable, net 50,711 40,725
Inventories 24,063 25,120
Prepaid royalties 12,400 10,222
Deferred taxes 2,765 2,672
Prepaid expenses and other 2,915 1,392
------------- --------------
Total Current Assets 169,419 144,645
Property and Equipment, net 44,719 40,356
Goodwill 80,021 76,937
Licenses and Trademark 16,979 12,785
Other Assets 5,473 4,230
------------- --------------
$ 316,611 $ 278,953
============= ==============
Current Liabilities:
Accounts payable $ 20,176 $ 18,371
Accrued royalties 17,350 16,792
Accrued expenses and other 10,967 18,755
Current portion of long-term debt 333 424
------------- --------------
Total current liabilities 48,826 54,342
4 3/4% Convertible Subordinated Notes 38,935 54,933
Other Long-term Debt and Liabilities 7,889 6,773
Minority Interests 2,941 3,079
Shareholders' Equity 218,020 159,826
------------- --------------
$ 316,611 $ 278,953
============= ==============
ACTION PERFORMANCE COMPANIES, INC.
Unaudited Condensed Consolidated Statements of Cash Flows
Nine Months Ended June 30, 2002 and 2001
(in thousands)
Nine Months Ended
-------------------------------
2002 2001
------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 31,935 $ 18,819
Adjustments to reconcile net income
to net cash from operations -
Deferred income taxes 2,366 5,907
Depreciation and amortization 17,346 21,050
Stock option tax benefits 3,610 809
Extraordinary gain (loss) on
extinguishment of debt 1,361 (12,807)
Other (144) 1,651
Changes in assets and liabilities,
net of businesses acquired
or disposed -
Accounts receivable, net (9,068) (21,688)
Accounts payable 840 462
Income tax payable and receivable (5,226) 19,638
Inventories 1,328 4,742
Prepaid royalties and accrued royalties (1,629) 1,442
Other (5,407) (4,063)
------------- --------------
Net cash from operations 37,312 35,962
------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures, net (18,011) (10,872)
Disposition, net of costs -- 3,847
Acquisitions, net of costs (6,122) (1,335)
Other (237) --
------------- --------------
Net cash used in investing
activities (24,370) (8,360)
------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Long-term debt repayments (7,384) (10,538)
Common stock purchases for treasury -- (1,385)
Stock option exercises 6,124 2,051
Other 26 --
------------- --------------
Net cash used in financing
activities (1,234) (9,872)
Effect of exchange rate changes on
cash and cash equivalents 343 (114)
------------- --------------
Net change in cash and cash equivalents 12,051 17,616
Cash and cash equivalents,
beginning of period 64,514 22,758
------------- --------------
Cash and cash equivalents,
end of period $ 76,565 $ 40,374
============= ==============
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