Brass Eagle Inc. Announces Second Quarter Fiscal 2001 Results -- Sales Increase 27%, EBITDA Increases 25% --.Business Editors BENTONVILLE, Ark.--(BUSINESS WIRE)--Aug. 7, 2001 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 second quarter ended June 30, 2001. [pilcrow (paragraph sign)] 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 second quarter increased 27.2% to $21.3 million versus $16.8 million for the same period last year. 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 increased 25% to $3.5 million from $2.8 million a year ago. Net income for the three months ended June 30, 2001 was $1,177,000, or $0.16 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 $1,542,000, or $0.21 per diluted share in the second quarter of 2000. The year over year decline in 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 is primarily attributable to increased selling and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. and amortization expenses related to JT, and higher operating costs operating costs npl → gastos mpl operacionales related to Challenge Park. [pilcrow (paragraph sign)] For the six month period ended June 30, 2001, net sales increased 32.4% to $42.1 million versus $31.8 million for the same period last year. EBITDA increased 65.1% to $7.3 million from $4.4 million a year ago. Net income for the first six months of fiscal 2000 was $2,455,000 or $0.33 on a fully diluted basis, compared to $2,354,000 or $0.31 per diluted share in the first six months of fiscal 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, "Late product introductions caused revenues to be less than expected which resulted in negative operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. for the quarter. In addition, lower than planned attendance at Challenge Park, due primarily to a delay in the opening of some of the Park's major attractions, resulted in an inability to effectively leverage the 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. associated with the Park. Our new products are now on the shelves, and the Park is running at full capacity, consequently, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op these issues are remedied and we are encouraged about the opportunities that lie ahead." "However, given the overall economic uncertainty and challenging retail environment, we believe it is necessary to take a more conservative outlook with regard to the second half of the year," Mr. Scott continued. "A slower than expected July that is reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of the retailers' more conservative business outlook and resulting inventory management, has forced us to revise our guidance. We now expect fiscal 2001 sales to range from $100 million to $105 million and diluted earnings per share of approximately $1.00." Mr. Scott concluded, "Paintball continues to expand, with the 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. category growing at a faster rate than the overall industry. Brass Eagle continues to occupy the leadership position in the market and we have the appropriate strategies and brands in place to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. this trend and further our strong market position. In addition, JT and Challenge Park allow us to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our business into other segments of the 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 industry. We are committed to developing a strong, multi-faceted revenue base and dedicated to executing a strategy that will result in long-term growth and increased shareholder value." 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.
BRASS EAGLE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except share data)
JUNE 30, DECEMBER 31,
2001 2000
-------- --------
(unaudited)
Assets
Current assets
Cash and cash equivalents $826 $3,457
Accounts receivable - less allowance
for doubtful accounts of $416 in 2001
and $393 in 2000 18,577 25,881
Due from affiliate 0 326
Inventories 15,127 14,003
Prepaid expenses and other current assets 1,372 790
Deferred taxes 1,706 1,780
-------- --------
Total current assets 37,608 46,237
Property, plant and equipment, net 16,778 14,911
Other assets:
Other assets 307 325
Intangible assets, net 33,304 34,343
-------- --------
$87,997 $95,816
======== ========
Liabilities and stockholders' equity
Current liabilities
Revolving credit facility $0 $3,860
Accounts payable 4,787 7,340
Accrued expenses 4,551 7,853
Current maturities of long-term debt 6,407 5,607
-------- --------
Total current liabilities 15,745 24,660
Long-term debt, less current maturities 18,447 19,615
Deferred income taxes 953 821
Stockholders' equity
Common stock, $.01 par value, 10,000,000
shares authorized,
7,263,738 issued and 7,144,038
outstanding at June 30, 2001;
7,258,290 issued and
7,138,590 outstanding at
December 31, 2000 73 73
Additional paid-in capital 25,831 25,802
Accumulated other comprehensive income (382) 0
Retained earnings 27,873 25,388
Treasury stock 119,700 shares at cost (543) (543)
-------- --------
52,852 50,720
-------- --------
$87,997 $95,816
======== ========
BRASS EAGLE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except share and per share data)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2001 2000 2001 2000
(unaudited) (unaudited)
Net sales $21,333 $16,765 $42,103 $31,792
Cost of sales 13,365 10,779 25,598 20,976
--------- --------- ---------- --------
Gross profit 7,968 5,986 16,505 10,816
Operating expenses 5,599 3,661 11,470 7,349
--------- --------- ---------- --------
Operating income 2,369 2,325 5,035 3,467
Minority interest 48 11 102 21
Interest income (expense) (457) 125 (997) 272
--------- --------- ---------- --------
(409) 136 (895) 293
--------- --------- ---------- --------
Income before income taxes 1,960 2,461 4,140 3,760
Provision for income taxes 783 919 1,655 1,406
--------- --------- ---------- --------
Net income $1,177 $1,542 $2,485 $2,354
========= ========= ========== ========
Net income per share:
Basic $0.16 $0.22 $0.35 $0.33
Diluted 0.16 0.21 0.33 0.31
Weighted average shares
outstanding:
Basic 7,144,038 7,136,186 7,143,145 7,135,907
Diluted 7,547,767 7,520,672 7,541,717 7,525,240
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion