DSI Toys Inc. Reports Year-End Results.Business Editors HOUSTON--(BUSINESS WIRE)--March 31, 2003 DSI (Dynamic Systems Initiative) An umbrella term for a suite of Microsoft products that help manage the Windows environment in large enterprises. DSI was introduced in 2003. Toys Inc. (the "Company") (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DSIT) reported year-end financial results in its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ending Dec. 31, 2002, which was filed with the SEC on March 28, 2002. The Company reported a net loss of $8.01 million, or $.82 per share, for the fiscal year ended Dec. 31, 2002, compared with a net loss of $1.45 million for the fiscal year ended Dec. 31, 2001. The net loss for the fiscal year can primarily be attributed to a significant decrease in 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 and margins in 2002, as well as the $4.0 million charge taken for a valuation allowance on all of the Company's deferred tax assets. Net sales for the 2002 fiscal year were $49.8 million compared with $67.9 million for the 2001 fiscal year. Gross profit, as a percentage of net sales, for the 2002 fiscal year decreased to 22.2%, compared with 29.3% for the 2001 fiscal year. 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. decreased 20.6%, from $20.1 million to $16.0 million for the respective periods. Included in the 2001 operating expenses was a $1.6 million charge for an uncollectible receivable due to the Kmart bankruptcy. "As reported in our third quarter results, the West Coast work stoppage stoppage - /sto'p*j/ Extreme lossage that renders something (usually something vital) completely unusable. "The recent system stoppage was caused by a fried transformer." and lockout lockout, intentional closing up of a company, factory, or shop by an employer to prevent employees from working during a strike or labor dispute. The term lockout , production delays that limited the availability of key products for early shipment, resulting in the cancellation of some orders, plus the anticipated sluggish U.S. retail economy led us to believe that the trend of disappointing financial results would continue into the fourth quarter of 2002," stated Joseph S. Whitaker, president and chief executive officer. "U.S. holiday retail sales turned out to be even less robust than forecast; therefore certain necessary toy retail price markdowns led to the further erosion in our 2002 year-end financial results." As set forth in the Company's press release dated March 27, 2003, and its Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed on March 28, 2003, the Company and DSI Acquisition Inc. signed an Agreement and Plan of Merger, dated as of March 27, 2003, pursuant to which DSI Acquisition Inc. will be merged with and into the Company, contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent approval of the Company's shareholders. The Company has reported in its Form 10-K filed on March 28, 2003, that its viability as a going concern is dependent upon a new credit facility, a capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. and sustained profitable operations. The Company designs, develops, markets and distributes high-quality, innovative dolls, toys and consumer electronics products. Core products include Tech-Link(R) communications products, KAWASAKI(R) electronic musical instruments, GearHead
Unrevealed First appearing in Steel #14 (April 1995), the first Gearhead appeared in Steel (TM) remote control vehicles, DJ Skribble(R)'s Spinheads(TM) musical figures and toys, a full range of special feature doll brands including Sweet Faith(R), Pride & Joy(R), Too Cute Twins(R), Lovin' Touch(TM) life like dolls, Baby Knows Her Name(TM) talking doll, Childhood Verses(TM) nursery rhyme nursery rhyme Verse customarily told or sung to small children. Though the oral tradition of nursery rhymes is ancient, the largest number date from the 16th, 17th, and (most frequently) 18th centuries. dolls, Little Darlings(R) dolls and Collectible Plush, including Kitty, Kitty, Kittens(R) and Puppy, Puppy, Puppies(R). The Company's Web site can be reached at http://www.DSIToys.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Under 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: Statements in this press release that are not historical facts, including statements about plans and expectations regarding products and opportunities, demand and acceptance of new and existing products, capital resources and future financial condition and results are forward-looking. 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. involve risks and uncertainties, which may cause DSI's actual results in future periods to differ materially and adversely from those expressed. These uncertainties and risks include changing consumer preferences, lack of success of new products, loss of DSI's customers, competition, and other factors discussed from time to time in DSI's filings with the Securities and Exchange Commission.
DSI Toys Inc.
Consolidated Statements of Operations
Fiscal Year Fiscal Year
2002 2001
--------------- ----------------
Net Sales $49,754,173 $67,906,409
Cost of goods sold 38,683,911 47,985,126
--------------- ----------------
Gross profits 11,070,262 19,921,283
Selling, general and administrative
expenses 15,972,473 20,103,335
--------------- ----------------
Operating loss (4,902,211) (182,052)
Interest expense (911,792) ( 1,155,092)
Other income 77,483 278,529
--------------- ----------------
Loss before income taxes (5,736,520) (1,058,615)
Benefit from (provision for) income
taxes (2,275,706) (390,903)
--------------- ----------------
Net loss $(8,012,226) $(1,449,518)
=============== ================
Basic earnings per share
Loss per share $(0.82) $(0.16)
=============== ================
Weighted average shares outstanding 9,720,463 9,066,365
=============== ================
Diluted earnings per share
Loss per share $(0.82) $(0.16)
=============== ================
Weighted average shares outstanding 9,720,463 9,066,365
=============== ================
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion