Concepts Direct, Inc. Reports First-Quarter 2002 Sales and Earnings.Business Editors LONGMONT Longmont, city (1990 pop. 51,555), Boulder co., N Colo.; inc. 1885. It is a trade and processing center for a rich farm area irrigated by the Colorado–Big Thompson project. Vitamins, primary metal products, and manufacturing equipment are produced. , Colo.--(BUSINESS WIRE)--May 1, 2002 Concepts Direct, Inc. (Nasdaq:CDIR CDIR Cumulative Damage Index Right Engine CDIR Chemical Demilitarization and Installation Restoration CDIR Channel Distribution Information at the Receiver ) today announced its results for the quarter ended March 31, 2002. Sales for the quarter ended March 31, 2002, were $13,933,000, a 15.2% increase over sales of $12,092,000 for the same period in 2001. The Company had a net loss of $2,087,000, or $0.42 per share, for the quarter ended March 31, 2002, as compared to a net loss of $1,166,000, or $0.23 per share, for the same period of 2001. Gross profit for the quarter remained relatively flat at 42% compared to the first quarter of 2001. Phillip Phillip is a variant of the name Philip. It may refer to: Given name:
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. goal. I continue to believe that until our merchandising merchandising 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. efforts have had time to affect change in the products we are offering, this trend will continue. These efforts will not likely generate improved results until at least the fourth quarter of this year. "As previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). , our Company closed on a $2.0 million debt facility during the first quarter that is part of a larger $4.0 million facility, $2.0 million of which closed after the end of the quarter on April 26, 2002. The terms of the $4.0 million facility call for a 10% interest rate, a maturity date of May 2007 and warrants to purchase common shares totaling 550,000. This transaction will provide needed working capital to implement the changes needed to restore our Company to a profitable platform of growth. "I believe we have rebuilt each functional area of the Company in such a way to continue a focused effort on building quality into every aspect of our Company. A key ingredient
An ingredient is something that forms part of a mixture (in a general sense). going forward is to have quality 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 offerings matched to the appropriate customer. Unfortunately, this comes at the cost of an increased overhead burden that can only be supported by improved productivity. I firmly believe that the fundamental business initiatives that we have underway will reward us with that outcome," continued Mr. Wiland. Looking ahead, Wiland comments: "We are continuing to push for double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. top line growth. Considering that our year is skewed skewed curve of a usually unimodal distribution with one tail drawn out more than the other and the median will lie above or below the mean. skewed Epidemiology adjective Referring to an asymmetrical distribution of a population or of data towards the second half, it is hard for us to commit to profitability goals for the year. However, I believe the changes that are being implemented in the first half of the year can have a meaningful effect on profitability in the fourth quarter."
CONCEPTS DIRECT, INC.
STATEMENTS OF OPERATIONS
(Dollars in thousands, except per-share data)
(Unaudited)
Three Months Ended March 31,
2002 2001
---- ----
Net sales $ 13,933 $ 12,092
Cost of product and delivery 8,062 6,989
------- -------
Gross profit 5,871 5,103
Operating expenses:
Advertising 6,236 4,180
General and administrative 1,448 1,489
Depreciation and amortization 312 396
------- -------
Total operating expenses 7,996 6,065
Loss from operations (2,125) (962)
Other income (expense), net 38 (204)
Net loss from operations (2,087) (1,166)
Net loss applicable to common
shares $(2,087) $(1,166)
Net loss per share, basic and
diluted $ (0.42) $ (0.23)
Weighted-average number of common
shares used in per share
computation, basic and diluted 4,923,538 4,998,379
CONCEPTS DIRECT, INC.
BALANCE SHEETS
(Dollars in thousands, except per-share data)
(Unaudited)
March 31,
---------
2002 2001
---- ----
ASSETS
Current assets:
Cash and cash equivalents $ 1,754 $ 1,656
Accounts receivable, less
allowances 205 241
Deferred advertising costs 4,457 5,032
Inventories, less allowances 7,191 5,736
Prepaid expenses and other 538 447
------- -------
Total current assets 14,145 13,112
Property and equipment, net 1,246 1,352
Capitalized software costs, net 1,543 1,564
Trademark and other intangibles,
net 988 1,016
Other assets 1,368 1,355
------- -------
TOTAL ASSETS $ 19,290 $ 18,399
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable and
accrued expenses $ 6,091 $ 5,414
Current maturities of note
payable to related party 171 -
Accrued employee compensation 785 612
Deferred gain 199 199
Customer liabilities 874 799
------- -------
Total current liabilities 8,120 7,024
Note payable to related party 1,295 -
Deferred gain 3,498 3,548
Deferred rent 120 17
------- -------
TOTAL LIABILITIES 13,033 10,589
Commitments and contingencies:
Stockholders' equity:
Common stock, $.10 par value,
7,500,000 shares authorized,
5,017,238 issued and
outstanding on March 31, 2002,
and December 31, 2001. 502 502
Additional paid-in capital 14,396 14,396
Warrants 534 -
Retained deficit (8,948) (6,861)
Treasury stock at cost, 93,700
shares in 2001 (227) (227)
------- -------
Total stockholders' equity 6,257 7,810
------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 19,290 $ 18,399
======= =======
Key Statistics The Company releases selected Key Statistics regarding its brands. These statistics are intended to provide an indication of trends related to the brand.
Selected Key Statistics -- Concepts Direct, Inc.
------------------------------------------------
(in thousands except percentage and average order amounts)
Q1-02 2001 Q4-01 Q3-01 Q2-01 Q1-01 2000
----- ---- ----- ----- ----- ----- ----
Approx. Catalogs
Circulated (1):
Colorful Images 13,986 38,179 7,950 14,237 7,024 8,968 30,751
Linda Anderson 1,838 4,791 2,011 1,532 572 676 5,291
Snoopy etc. 1,077 1,977 768 609 169 431 1,497
Collectibles 528 1,785 894 345 157 389 1,633
the Music Stand 1,174 2,035 1,306 493 130 106 2,028
Totals 18,603 48,767 12,929 17,216 8,052 10,570 41,200
Customer Database
Size (2)(5):
Colorful Images 10,200 10,130 9,904 9,746 9,612
Linda Anderson 930 916 880 860 850
Snoopy etc. 336 329 298 280 270
Collectibles 242 239 229 224 221
the Music Stand 2,158 2,155 2,134 2,174 2,170
Totals 13,131 12,791 12,519 12,384 12,240
Active Customers
(3)(6):
Colorful Images 1,181 1,162 1,094 1,105 1,122
Linda Anderson 87 77 84 89 95
Snoopy etc. 53 51 48 46 50
Collectibles 33 33 34 33 35
the Music Stand 45 40 34 36 39
Totals 1,374 1,345 1,258 1,280 1,309
Average Order Amount:
Colorful Images $30 $30 $29 $28 $28 $27
Linda Anderson $61 $60 $60 $59 $59 $58
Snoopy etc. $69 $70 $71 $72 $72 $76
Collectibles $59 $64 $64 $63 $61 $57
the Music Stand $58 $58 $60 $59 $59 $58
Catalog Merchandise
Mix (4):
Paper Products 49% 55% 59% 54% 54% 47%
Other Merchandise 51% 45% 41% 46% 46% 53%
(1) Includes approximate number of catalogs mailed and catalogs
distributed in product shipments. Microniche mailings are attributed
to the related catalog title.
(2) Approximate size of proprietary customer database, including
customers, catalog requesters, gift recipients and catalog referrals,
at period end.
(3) Approximate number of prior 12 month buyers at period end.
(4) Estimated percentage of Company catalog sales attributable to
major merchandise categories.
(5) Counts for a period may vary from one report to another due to
factors such as elimination of duplicate customer records, elimination
of undeliverable address records, changes in classification, etc.
(6) Certain historical amounts have been restated to conform to
the current financial presentation.
Management Conference Call In conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the first-quarter 2002 earnings release for Concepts Direct, Inc., management will conduct a conference call on Thursday Thursday: see week. , May 2, 2002, at 9:00 a.m. Mountain time. To access the call, dial 800/553-0358 just prior to 9:00 a.m. Mountain Time on Thursday and reference Concepts Direct, Inc. Q1 2002 Results. If you are unable to participate during the call, the call will be available via digitized replay between 12:30 p.m. May 2, 2002, and 11:59 p.m. May 9, 2002, by calling 800/475-6701, access code: 637574. About Concepts Direct, Inc. Concepts Direct is a direct marketing company focused on building and managing customer relationships through its catalogs and internet retailing initiatives. The company sells primarily personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. paper products and a diverse line of merchandise, including gift items, home decorative items, collectibles and apparel. Concepts Direct sells its merchandise primarily via the Colorful Images, Linda A set of parallel processing functions added to languages, such as C and C++, that allows data to be created and transferred between processes. It was developed by Yale professor David Gelernter, when he was a 23-year old graduate student. Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic , Snoopy Snoopy world’s most famous beagle. [Comics: “Peanuts” in Horn, 542] See : Dogs Snoopy imaginative dog. [Comics: “Peanuts” in Horn, 542–543] See : Illusion (TM) etc., Linda Anderson's Collectibles, and the Music Stand catalogs. In addition, the company owns and operates numerous web sites, including www.ColorfulImages.com, www.LindaAnderson.com, www.SnoopyStore.com, www.theMusicStand.com and www.NewBargains.com. Cautionary Statement This press release contains certain 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. as such term is defined in 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. Company statements that are not historical facts, including statements about the Company's expectations, beliefs, plans and objectives are forward-looking statements and involve various risks and uncertainties, including the risks associated with starting new businesses. Additional discussion of factors that could cause actual results to differ materially from management's expectations, beliefs, plans and objectives is contained in the Company's SEC filings. The Company considers a brand's contribution to be revenue from the brand minus advertising expenses, certain product, delivery, and brand related general and administrative expenses which management believes would be eliminated if the brand 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: . |
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