Brass Eagle Inc. Announces First Quarter Fiscal 2001 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, , AR--(BUSINESS WIRE)--May 8, 2001 -First quarter sales increased 38.7% to $20.8 million - -Earnings per share increased 54.5% to $0.17 vs. $0.11- 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 ended March 31, 2001. 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 increased 38.7% to $20.8 million versus $15.0 million for the same period last year. Net income for the three months ended March 31, 2001 rose 62.5% to $1.3 million compared to $0.8 million last year, 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 increased 54.5% to $0.17 compared to $0.11 for the corresponding period in 2000. 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, "Our strong results for the quarter underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the ongoing growth of the paintball industry and our leadership position in the market. Our double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. sales growth was fueled by increases in unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. of our core products and the strong performance of JT." "We were particularly pleased with our ability to translate (1) To change one language into another; for example, assemblers, compilers and interpreters translate source language into machine language. (2) In computer graphics, to move an image on screen without rotating it. a 39% increase in sales into a more than 60% increase in earnings," Mr. Scott continued. "The continued improvements in our manufacturing efficiencies, as well as increased sales of higher margin products helped to drive significant margin expansion and above average bottom line growth during the quarter." On March 5, 2001, Brass Eagle acquired selected machinery and equipment from Nittan, Inc., a manufacturer of CO2 jets for $2.3 million in cash. The Company has agreed to lease facilities in Batesville, Mississippi Batesville is a city in Panola County, Mississippi, United States. The population was 7,113 at the 2000 census. Geography Batesville is located at (34.317809, -89.942626)GR1. to house production of these jets. Brass Eagle also reiterated its guidance for the year. The Company expects sales to range from $103 million to $110 million and fully diluted earnings per share to range between $1.35 and $1.40 for fiscal 2001. Mr. Scott concluded, "We will continue to build on our strong position in paintball, while simultaneously expanding into other related businesses where we believe we can leverage our brand, our market expertise and our manufacturing and distribution capabilities. We have been very successful integrating our acquisitions which have resulted in a stronger and more diversified company diversified company A company engaged in varied business operations not directly related to one another. A diversified company is less likely to suffer either a collapse or a spectacular gain in earnings compared with a firm concentrating its operations in a and we will continue to pursue other strategic initiatives as we further evolve Evolve may refer to several terms:
 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 and again in 1999, 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 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 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,
2001 2000
-------- ------------
(unaudited)
Assets
Current assets
Cash and cash equivalents $ 1,119 $ 3,457
Accounts receivable - less allowance
for doubtful accounts of $451
in 2001 and $393 in 2000 18,852 25,881
Due from affiliate 0 326
Inventories 13,448 14,003
Prepaid expenses and other
current assets 894 790
Deferred taxes 1,848 1,780
-------- ---------
Total current assets 36,161 46,237
Property, plant and equipment, net 17,096 14,911
Other assets:
Other assets 380 325
Intangible assets, net 33,798 34,343
-------- ---------
$ 87,435 $ 95,816
======== =========
Liabilities and stockholders' equity
Current liabilities
Revolving credit facility $ 0 $ 3,860
Accounts payable 4,534 7,340
Accrued expenses 6,098 7,853
Current maturities of long-term
debt 5,607 5,607
-------- ---------
Total current liabilities 16,239 24,660
Long-term debt, less current
maturities 18,912 19,615
Deferred income taxes 654 821
Stockholders' equity
Common stock, $.01 par value,
10,000,000 shares authorized,
7,262,835 issued and 7,143,135
outstanding in 2001;
7,258,290 issued and
7,138,590 outstanding in 2000 73 73
Additional paid-in capital 25,824 25,802
Accumulated other comprehensive
income (420) 0
Retained earnings 26,696 25,388
Treasury stock 119,700 shares
at cost (543) (543)
-------- ----------
51,630 50,720
-------- ----------
$ 87,435 $ 95,816
======== ==========
BRASS EAGLE INC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except share and per share data)
THREE MONTHS ENDED
MARCH 31,
2001 2000
(unaudited)
Net sales $ 20,770 $ 15,027
Cost of sales 12,233 10,197
-------- ----------
Gross profit 8,537 4,830
Operating expenses 5,871 3,688
-------- ----------
Operating income 2,666 1,142
Minority interest 54 10
Interest income 73 147
Interest expense (613) 0
-------- ----------
(486) 157
-------- ----------
Income before income taxes 2,180 1,299
Provision for income taxes 872 487
-------- ----------
Net income $ 1,308 $ 812
======== =======
Net income per share:
Basic $ 0.18 $ 0.11
Diluted 0.17 0.11
Weighted average shares outstanding:
Basic 7,142,907 7,134,942
Diluted 7,557,250 7,527,444
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