Corgi International Limited (Nasdaq:CRGI) Announces Third Quarter Results.HONG KONG Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. -- Corgi corgi: see Cardigan Welsh corgi; Pembroke Welsh corgi. International Limited (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CRGI CRGI Capital Research Global Investors ) today announced results of operations for the third quarter of fiscal year 2006, ended December December: see month. 31, 2005. 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 quarter were $7.5 million, compared to $12.2 million for the same quarter in the previous year. Gross profit for the third quarter of fiscal year 2006 was $2.3 million, compared to $4.6 million in the same quarter in the previous year. Net loss for the third quarter of fiscal year 2006 was $5.9 million, or $0.60 loss per share (basic and 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. ), compared to a net loss of $2.0 million, or $0.21 loss per share (basic and diluted), in the same quarter of the previous year. Management has been proceeding in an effort to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose Zindart Manufacturing Limited, the company's manufacturing division. The estimated loss on disposal will be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.5 million (including related goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges of $0.4 million) if the sale is successfully concluded. 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 Financial Accounting Standard 144, a $3.5 million write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of the disposal group was recognized during the third quarter of fiscal year 2006 to reflect the estimated fair value thereof. Losses from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. for the third quarter of fiscal year 2006 reflect this write-down, offset by approximately $69,000 in income from such operations. Loss from discontinued operations in the third quarter of fiscal year 2005 was $585,000. The sale is targeted to close by the end of March, subject to certain conditions. For the nine months ended December 31, 2005, net sales were $28.1 million, compared to $32.9 million for the same period in 2004. Gross profit for the first nine months of fiscal year 2006 was $10.0 million, compared to $13.4 million for the same period in the previous year. Net loss for the first nine months of fiscal year 2006 was $8.0 million, or $0.82 per share (basic and diluted), compared to a net loss of $3.9 million, or $0.42 per share (basic and diluted), for the same period in the previous year. George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). Volanakis, the company's Chief Executive Officer, said, "We are continuing with our cost-cutting efforts, which are showing results. In the third quarter of fiscal 2006, selling, general and administrative expenses were $4.8 million, compared with $6.2 million in the third quarter of fiscal 2005. For the year to date, selling, general and administrative expenses have decreased by $2.7 million compared to last year." Mr. Volanakis continued, "The poor sales performance in the third quarter of fiscal 2006 was largely due to later than normal receipt of collectible collectible An asset of limited supply that is sought for a variety of reasons including, it is hoped, an increase in value. Stamps, antiques, coins, and works of art are among the many things usually classified as collectibles. orders in the UK and slower than planned delivery of stock from the Orient o·ri·ent v. 1. To locate or place in a particular relation to the points of the compass. 2. To align or position with respect to a point or system of reference. 3. to Corgi's UK operation. Most of the third quarter shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. should be recovered in the fourth quarter." "Corgi is expecting significant growth in its European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. and Australasia Australasia (ôstrəlā`zhə, –shə), islands of the South Pacific, including Australia, New Zealand, New Guinea, and adjacent islands. The term is sometimes used to include all of Oceania. businesses, as well as significant incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. business from our new iCar product in the U.S. and U.K.," he added. The iCar is an iPod A family of extremely popular digital media players from Apple, introduced in 2001 for the Mac and 2002 for Windows. iPods are noted for their well-designed, simple user interfaces that employ either a click wheel or touch screen (see click wheel and iPod touch). 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. that adds a visual element to digital music. The detailed replicas of the Cadillac Escalade The Cadillac Escalade is a full-size luxury sport utility vehicle sold by the General Motors luxury brand, Cadillac. It was the division's first major entry into the popular SUV market. and Nissan 240SX The Nissan 240SX was a car introduced to the North American market by Nissan in 1989 and sold there until 1998. It replaced the 200SX (RWD) in 1989. The 240SX was equipped with a 2.4-litre inline 4 engine (KA24E from 1989–1990 and KA24DE from 1991–1998). move to the music and colored lights illuminate il·lu·mi·nate v. il·lu·mi·nat·ed, il·lu·mi·nat·ing, il·lu·mi·nates v.tr. 1. To provide or brighten with light. 2. To decorate or hang with lights. 3. various parts of the cars as the high-quality speakers broadcast music from all iPods and other MP3 players A digital music player that supports the MP3 format, which was the audio format that started a revolution in online music downloads and distribution. All portable music players, the iPod being the most popular, support MP3 along with one or more other audio formats. . The iCar also comes with its own "in store" demonstrable de·mon·stra·ble adj. 1. Capable of being demonstrated or proved: demonstrable truths. 2. Obvious or apparent: demonstrable lies. sample music. Volanakis concluded, "We also expect new business will come in upcoming quarters from other new toy products and the 50th anniversary products. We believe the introduction of new products and the focus on higher margin offerings, combined with our cost-cutting efforts, will be reflected in improved operating performance in upcoming quarters." About Corgi International Corgi International, based in Hong Kong, sells 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 collectible products under its own brand. In the U.S., the company is known as Corgi USA. Corgi also produces high quality die-cast and plastic products for multi-national companies that market collectible or gift items worldwide. Corgi has a high-volume manufacturing operation in China and sales offices worldwide. Retailers and consumers interested in more information can call 1-800-800-CORGI, or visit the company's website at: http://www.corgi-international.com. Cautionary note regarding 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. Certain statements in this release are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. . These statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, without limitation, timing of product shipments, the timing and availability of cost-reduction measures, changes in market demand for Corgi products, changes in economic conditions, dependence on certain customers and other risks described in the company's annual report on Form 20-F for the fiscal year ended March 31, 2005. The company undertakes no obligation to revise these forward-looking statements to reflect subsequent events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Tables to follow
CORGI INTERNATIONAL LIMITED AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited) (Unaudited)
As of As of As of
December March December
31, 31, 31,
2005 2005 2004
ASSETS
Current assets:
Cash and cash equivalents 3,503 $ 7,012 $ 9,600
Available-for-sale investments 6 25 25
Trade accounts receivable, net 3,914 6,579 14,358
Other assets 10,051 10,666 21,526
Assets of discontinued operations 24,250 29,243 --
----------- ------- -----------
Total current assets 41,724 53,525 45,509
Property, plant, and equipment, net 6,800 7,933 21,943
Other long term assets 1,821 1,874 2,865
Goodwill 35,312 35,312 35,726
----------- ------- -----------
Total assets 85,657 $98,644 $ 106,043
=========== ======= ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and current
installments of long-term debt 3,139 $ 3,876 $ 14,347
Trade accounts payable 3,323 4,450 13,203
Other current liabilities 4,299 3,264 10,370
Liabilities of discontinued operations 21,448 23,073 --
----------- ------- -----------
Total current liabilities 32,209 34,663 37,920
Long-term liabilities -- 235 1,381
----------- ------- -----------
Total liabilities 32,209 34,898 39,301
----------- ------- -----------
Minority interests 105 693 708
----------- ------- -----------
Stockholders' equity:
Common stock 625 623 621
Additional paid-in capital 40,280 40,229 39,975
Retained earnings 11,645 19,590 22,757
Accumulated other comprehensive income 793 2,611 2,681
----------- ------- -----------
Total stockholders' equity 53,343 63,053 66,034
----------- ------- -----------
Total liabilities and stockholders'
equity 85,657 $98,644 $ 106,043
=========== ======= ===========
CORGI INTERNATIONAL LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except share data)
Three months ended
December 31,
(Unaudited) (Unaudited)
2005 2004
Net sales $ 7,450 $ 12,249
Cost of goods sold (5,132) (7,614)
----------- -----------
Gross profit 2,318 4,635
Selling, general, and administrative expenses (4,788) (6,160)
----------- -----------
Operating loss (2,470) (1,525)
Other income (expense):
Interest income 15 40
Interest expense (127) (174)
Other income (loss) 64 (359)
----------- -----------
Loss before income taxes and
minority interests (2,518) (2,018)
Income tax benefit 65 207
----------- -----------
Loss from continuing operations (2,453) (1,811)
Income (loss) from discontinued operations,
net of tax (including gain on disposal
of $984 in 2004) (3,426) (585)
----------- -----------
Loss before extraordinary items (5,879) (2,396)
Extraordinary gain, net of nil tax -- 418
----------- -----------
Net loss (5,879) (1,978)
=========== ===========
Loss per common share:
Basic:
Loss from continuing operations $ (0.25)$ (0.19)
Income (loss) from discontinued operations (0.35) (0.06)
Extraordinary gain -- 0.04
----------- -----------
Net loss $ (0.60)$ (0.21)
=========== ===========
Diluted:
Loss from continuing operations $ (0.25)$ (0.19)
Income (loss) from discontinued operations (0.35) (0.06)
Extraordinary gain -- 0.04
----------- -----------
Net loss $ (0.60)$ (0.21)
=========== ===========
Weighted average number of common shares
outstanding:
Basic 9,671,943 9,603,954
=========== ===========
Diluted 9,671,943 9,603,954
=========== ===========
CORGI INTERNATIONAL LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except share data)
Nine months ended
December 31,
(Unaudited) (Unaudited)
2005 2004
----------- -----------
Net sales $ 28,102 $ 32,882
Cost of goods sold (18,056) (19,477)
----------- -----------
Gross profit 10,046 13,405
Selling, general, and administrative expenses (15,520) (18,215)
----------- -----------
Operating loss (5,474) (4,810)
Other income (expense):
Interest income 70 83
Interest expense (474) (516)
Other income (loss) 776 (212)
----------- -----------
Loss before income taxes and
minority interests (5,102) (5,455)
Income tax benefit 472 707
----------- -----------
Loss from continuing operations (4,630) (4,748)
Income from discontinued operations, net of
tax (including gain on disposal
of $984 in 2004) (3,315) 394
----------- -----------
Loss before extraordinary items (7,945) (4,354)
Extraordinary gain, net of nil tax -- 418
----------- -----------
Net loss (7,945) (3,936)
=========== ===========
Loss per common share:
Basic:
Loss from continuing operations $ (0.48)$ (0.50)
Income from discontinued operations (0.34) 0.04
Extraordinary gain -- 0.04
----------- -----------
Net loss $ (0.82)$ (0.42)
=========== ===========
Diluted:
Loss from continuing operations $ (0.48)$ (0.50)
Income from discontinued operations (0.34) 0.04
Extraordinary gain -- 0.04
----------- -----------
Net loss $ (0.82)$ (0.42)
=========== ===========
Weighted average number of common shares
outstanding:
Basic 9,653,379 9,440,371
Diluted 9,653,379 9,440,371
=========== ===========
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