Score Board reports fourth quarter and year-end results.CHERRY HILL Cherry Hill, township (1990 pop. 69,319), Camden co., W central N.J.; name was changed from Delaware township to Cherry Hill in 1961. Largely residential, Cherry Hill has been marked by great development and housing growth, especially since the 1970s. , N.J.--(BUSINESS WIRE)--April 14, 1997--The Score Board, Inc. (Nasdaq: BSBL BSBL Bond Strength-Bond Length (model of Atom abstraction reaction) BSBL Bulverde/Spring Branch Library (Texas) BSBL Building Setback Boundary Line BSBL Buffer Setback Line ) today reported fourth quarter and year-end results for the periods ended December 31, 1996. Because the Company recently changed its fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. from January 31 to December 31, the fourth quarter ended December 31, 1996 is a two-month period, and the year ended December 31, 1996 is an eleven month period, compared to three months and twelve months, respectively, for the comparable periods ended January 31, 1996. The Company also announced that it expects to report an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the 1997 first quarter ended March 31, 1997. 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 two months ended December 31, 1996 were $4,316,000, compared to $18,945,000 for the three months ended January 31, 1996. The Company reported a net loss of $4,964,000, or $0.34 per share, for the fourth quarter ended December 31, 1996, compared to a net loss of $8,960,000, or $0.76 per share, in the prior year's fourth quarter. Net sales for the eleven-months ended December 31, 1996 were $42,593,000, compared to $74,953,000 for the full year ended January 31, 1996. The Company reported a net loss for the eleven- month period ended December 31, 1996 of $17,436,000, or $1.42 per share, compared to a net loss of $8,204,000, or $0.71 per share, for the twelve months ended January 31, 1996. The decrease in revenues for the two-month and eleven-month periods reflect the change in the Company's fiscal year, its strategy to decrease production quantities and product offerings in response to the continued weakness in the trading card market, a decline in sales of autographed au·to·graph n. 1. A person's own signature or handwriting. 2. A manuscript in the author's handwriting. tr.v. au·to·graphed, au·to·graph·ing, au·to·graphs 1. memorabilia mem·o·ra·bil·i·a pl.n. 1. Objects valued for their connection with historical events, culture, or entertainment: posters, publicity photographs, and other movie memorabilia. 2. due in part to the loss of a significant retail account, and higher than anticipated returns. The Company's operating results were impacted by a decrease in sales of trading card products, which traditionally sell at high margins, and increases in reserves for returns, obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. and player contracts. This impact was partially offset by a reduction in selling and administrative expenses, with variable selling expenses decreasing in response to lower sales volumes 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. declining due to the Company's ongoing focus on cost control measures. At December 31, 1996, the Company was in violation of certain loan covenants A loan covenant is a condition in a commercial loan or bond issue that requires the borrower to fulfill certain conditions or forbids the borrower from undertaking certain actions, or possibly restricts certain activities to circumstances when other conditions are met. under the loan agreement with its bank. The bank has agreed to waive To intentionally or voluntarily relinquish a known right or engage in conduct warranting an inference that a right has been surrendered. For example, an individual is said to waive the right to bring a tort action when he or she renounces the remedy provided by law for such the violation and reset the covenants. The Company's independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. have informed the Company that they will issue a going concern opinion for 1996 due to the Company's substantial loss, decrease in working capital and the excess of liabilities over assets at December 31, 1996. The Company has started a plan to increase working capital that includes entering into a strategic distribution agreement with Frontier Communications International Inc. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the development and marketing of telephone calling cards and implementing various cost cutting and reengineering measures. Although the results of these actions cannot be predicted, the Company believes these steps are appropriate and will help the Company improve its operating results. Other notable recent events include the addition to the Company's Board of Directors of representatives Ira M. Lubert from T.L. Ventures and James G. Dole with Frontier Communications International Inc., a subsidiary of Frontier Corporation (NYSE NYSE See: New York Stock Exchange :FRO fro adv. Away; back: moving to and fro. prep. Scots From. [Middle English, probably from Old Norse fr ), and the February 1997 appointment of former Coopers & Lybrand partner John F. White as the Company's President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . The weighted average number of shares outstanding for the year ended December 31, 1996 was 12,919,000 compared to 11,558,000 in the fiscal year ended January 31, 1996. The increase in weighted average shares is primarily a result of the November 1996 $4.0 million private equity placement led by T.L. Ventures, the venture capital management arm of Safeguard Scientifics, Inc. (NYSE: SFE See Sydney Futures Exchange. ), and the issuance of 912,000 shares of Common Stock in connection with the retirement of $6.5 million of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . The Score Board, Inc. is a leading marketer and licensor of sports and entertainment-related products sold through national retailers and catalogs, television shopping programs, hobby/specialty shops, and corporate promotions and premium programs. The Company markets prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. telephone calling cards, autographed collectibles,
consumer sports products, sports trading cards and other collectible
products. -0-
THE SCORE BOARD, INC.
Condensed Consolidated Balance Sheets
(thousands of dollars)
ASSETS
Current Assets: 12/31/96 1/31/96
Cash $ 470 $ 142
Receivables 6,157 14,895
Inventories 10,250 16,449
Prepaids 1,010 4,972
Total current assets 17,887 36,458
Fixed assets, net 1,578 1,616
Other assets 815 2,044
$20,280 $40,118
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities: 12/31/96 1/31/96
Line of credit $6,743 $9,884
Accounts payable 6,749 9,122
Accrued liabilities 4,080 4,419
Total current liabilities 17,572 23,425
Long-term debt 4,000 10,500
Shareholders' equity (deficit) (1,292) 6,193
$20,280 $40,118
THE SCORE BOARD, INC.
Condensed Statements of Operations
(in thousands, except per share amounts)
Quarter Ended Year Ended
Dec. 31, Jan. 31, Dec. 31, Jan. 31,
Two Months Three Months Eleven Twelve
Months Months
1996 1996 1996 1996
Net Sales $ 4,316 $ 18,945 $ 42,593 $ 74,953
Cost of Goods Sold 5,393 13,470 39,201 45,211
Gross Profit (Loss) (1,077) 5,475 3,392 29,742
Selling, General and
Administrative Expenses 3,702 8,221 20,444 28,126
Securities Litigation
Settlement -0- -0- -0- 2,175
Realignment, Restructuring
and Discontinuance of
Product Lines -0- 5,675 -0- 5,675
(Loss) from Operations (4,779) (8,421) (17,052) (6,234)
Net Interest Expense 185 539 1,338 1,970
(Loss) Before Income
Taxes and
Extraordinary Gain (4,964) (8,960) (18,390) (8,204)
Income Taxes -0- -0- -0- -0-
Net (Loss) Before
Extraordinary Gain (4,964) (8,960) (18,390) (8,204)
Extraordinary Gain -0- -0- 954 -0-
Net Loss $ (4,964) $ (8,960) $ (17,436) $ (8,204)
Net (Loss) per Share
Before Extraordinary
Gain - Primary $ (0.34) $ (0.76) $ (1.42) $ (0.71)
Net (Loss) per
Share - Primary $ (0.34) $ (0.76) $ (1.35) $ (0.71)
Average Number of
Shares Outstanding
- Primary 14,509,000 11,811,000 12,919,000 11,558,000
CONTACT: The Score Board Inc. -or- Jaffoni & Collins Incorporated John F. White David C. Collins, 609/354-9000 Joseph N. Jaffoni 212/505-3015 dccjci@aol.com |
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