Brass Eagle Inc. Announces First Quarter 2002 Results.Business Editors BENTONVILLE Bentonville, city (2000 pop. 19,730), seat of Benton co., extreme NW Ark., in the Ozark Mts.; settled 1837 and named for Senator Thomas Hart Benton. Local industries produce fabricated metal products, plastic molding, electronic equipment, textiles, cutting tools, , Ark.--(BUSINESS WIRE)--May 7, 2002 Brass Eagle Inc. (Nasdaq: XTRM XTRM Extreme ) the worldwide leader in the manufacturing, marketing and distribution of paintball paintball Sports medicine A sport in which marble-sized gelatin capsules filled with a nontoxic dye are shot at speeds of 300 kph/200 mph Warning: products today announced reported results for the first quarter ending March 31, 2002. Brass Eagle reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first quarter decreased 3% to $20.13 million versus $20.77 million for the same period last year. Net income for the three months ended March 31, 2002 was $ 1.089 million or $.14 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, compared to $1.308 million or $.17 per diluted share for the corresponding period in 2001. Lynn Scott Lynn Scott (born June 23, 1977 in Turpin, Oklahoma) is a former American football safety for the Dallas Cowboys of the NFL. He was signed by the Cowboys in 2001 as an undrafted free agent out of Northwestern Oklahoma State University. , Brass Eagle 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, "First quarter results were consistent with our expectations, and we are encouraged by the improving retail environment. We continue to be encouraged about our opportunities for the second half of the year and beyond. Our management team remains focused on executing a plan that will return the Company to historic rates of profitability." For the 2002 fiscal year, the Company reiterates its earlier guidance: sales to range from $96 million to $100 million and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of to range between $0.85 and $0.95. Mr. Scott concluded, "Brass Eagle enters 2002 with a strong portfolio of brands, a wide-range of products and broad distribution. We provide markers, paintballs, apparel and accessories to all enthusiast A person who enjoys using computers and electronic equipment. Enthusiasts like technology and are willing to learn more of the ins and outs of a product than the average consumer, who just wants to use it. An enthusiast is more like a "prosumer." See consumer and prosumer. levels, from beginner to expert in a variety of channels ranging from the mass market to 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. sporting goods Noun 1. sporting goods - sports equipment sold as a commodity commodity, trade good, good - articles of commerce sports equipment - equipment needed to participate in a particular sport chains. It is this comprehensive approach that makes Brass Eagle unique in the industry and helps us maintain our leadership position in the market. Brass Eagle is unique in providing a full line of paintball markers  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. and accessory accessory, in criminal law, a person who, though not present at the commission of a crime, becomes a participator in the crime either before or after the fact of commission. products from beginner through competition level. The Company is the dominant supplier of products for this rapidly growing sport. Brass Eagle was named one of the "Top 100" Hot Growth Companies by Business Week magazine in 1998, 1999 and 2001, and one of the IW Growing Companies 25, America's Most Successful Small Manufacturers by Industry Week Magazine. Certain statements in this press release (including statements containing the words "expect," "will," "believe," "continue," "anticipate," "could," "intend" and similar words) may constitute 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. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Brass Eagle, its industry or others to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Important factors that could cause actual results to differ materially from Brass Eagle's expectations include the following: (1) Intensifying in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: competition, including specifically the intensification in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: of price competition, the entry of new 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 the introduction of new products by new and existing competitors; (2) Failure to obtain new customers or retain existing customers; (3) Inability to carry out marketing, sales or other business plans and strategies; (4) Loss of key executives; (5) General economic and business conditions which are less favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. than expected; and (6) Unanticipated changes in industry trends.
BRASS EAGLE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except share data)
MARCH 31, DECEMBER 31,
2002 2001
-------------- -------------
(unaudited)
Assets
Current assets
Cash and cash equivalents $ 3,189 $ 9
Accounts receivable - less
allowance for doubtful
accounts of $2,063 in 2002
and $2,000 in 2001 17,232 26,371
Inventories 13,161 13,120
Prepaid expenses and other
current assets 1,624 1,191
Deferred taxes 2,467 2,544
-------------- ------------
Total current assets 37,673 43,235
Property, plant and equipment, net 16,259 16,506
Other assets:
Other assets 513 270
Intangible assets, net 32,284 32,284
-------------- ------------
$ 86,729 $ 92,295
============ ===========
Liabilities and stockholders' equity
Current liabilities
Revolving credit facility $ 0 $ 3,900
Accounts payable 3,215 4,438
Accrued expenses 6,339 6,549
Current maturities of
long-term debt 6,407 6,407
-------------- ------------
Total current liabilities 15,961 21,294
Long-term debt, less current maturities 13,005 14,607
Deferred income taxes 1,477 1,350
Deferred compensation 231 0
Other liabilities 686 889
Stockholders' equity
Common stock, $.01 par value,
10,000,000 shares authorized,
7,268,433 issued and 7,148,733
outstanding in 2002;
7,266,618 issued and
7,146,918 outstanding in 2001 73 73
Additional paid-in capital 25,861 25,851
Accumulated other comprehensive
loss (425) (540)
Retained earnings 30,403 29,314
Treasury stock 119,700 shares
at cost (543) (543)
------------- ------------
55,369 54,155
------------- ------------
$ 86,729 $ 92,295
============ ===========
BRASS EAGLE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except share and per share data)
THREE MONTHS ENDED
MARCH 31,
2002 2001
------------ --------
(unaudited)
Net sales $ 20,130 $ 20,770
Cost of sales 12,396 12,233
------------ -----------
Gross profit 7,734 8,537
Operating expenses 5,649 5,871
------------ -----------
Operating income 2,085 2,666
Minority interest 51 54
Interest income 29 73
Interest expense (410) (613)
------------ -----------
(330) (486)
------------ -----------
Income before income taxes 1,755 2,180
Provision for income taxes 666 872
------------ -----------
Net income $ 1,089 $ 1,308
========= ========
Net income per share:
Basic $ 0.15 $ 0.18
Diluted 0.14 0.17
Weighted average shares outstanding:
Basic 7,148,673 7,142,907
Diluted 7,541,389 7,557,250
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