FISHER-PRICE ANNOUNCES THIRD QUARTER RESULTS
FISHER-PRICE ANNOUNCES THIRD QUARTER RESULTS EAST AURORA, N.Y., Oct. 21 /PRNewswire/ -- Fisher-Price, Inc.
(NYSE: FPP) announced that it had net income of $.45 per share of common stock for its third quarter, which ended Sept. 27, 1992, compared with net income of $.27 per share for the same quarter last year. Net income for the quarter was $14.4 million, an increase of $5.9 million over the restated net income for the comparable period last year.
For the first nine months of 1992, the company has reported net income of $.84 per share. Net income for the nine-month period was $26.4 million, a $15.4 million increase over last year's restated net income of $11.0 million for the comparable period. Fisher-Price reported net revenues of $186.1 million for the third quarter, a 1 percent decrease from net revenues of $188.0 million for the same period last year. Domestically, net revenues of $130.4 million decreased 3 percent from the same period last year and internationally, net revenues of $55.7 milion increased by 4 percent which includes a $3.7 million favorable currency effect. Net revenues for the nine-month period were $486.3 million, a 7 percent increase over net revenues of $454.8 million for the same period last year, with domestic revenues increasing 9 percent and international increasing 1 percent which includes a $3.5 million favorable currency effect. Ronald J. Jackson, chairman and chief executive officer of Fisher- Price, said, "Fisher-Price's third quarter results demonstrate continued improvement in operating margins and in earnings per share. The decline in domestic revenues for the quarter reflects some softness in our juvenile products business which we expect will continue in the fourth quarter. However, the domestic revenues in toys continue to show year to year growth led by sales of Action Workshop, Little People(R) Farm, Baby Basketball, Laundry Center, Dino-roarrrrrs, Flip Track Rail and Road and Tournament Table. We're optimistic going into the final quarter of the year, however, we recognize the uncertainties in the current ecomonic environment." Fisher-Price also announced that its board of directors has declared a regular quarterly cash dividend of $.05 per share of the company's common stock. The dividend will be payable on Dec. 3, 1992, to stockholders of record as of the close of business on Nov. 13, 1992. Fisher-Price is an international manufacturer and marketer of children's products. Fisher-Price's common stock is listed on the New York Stock Exchange and is traded under the symbol FPP. FISHER-PRICE, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME Dollars in Millions (except per share amounts) Three Months Ended Nine Months Ended Sept. 27, Sept. 29, Sept. 27, Sept. 29, 1992 1991 1992 1991 (a) (Unaudited) (Unaudited) Net revenues $ 186.1 $ 188.0 $ 486.3 $ 454.8 Cost of goods sold 97.6 108.7 264.8 274.3 Gross profit $ 88.5 $ 79.3 $ 221.5 $ 180.5 Advertising and merchandising 25.2 23.6(b) 63.7 57.0(b) Selling, general and administrative expenses 34.9 35.3 101.1 92.0 Other expense, net 1.1 .8 3.6 1.2 Operating income $ 27.3 $ 19.6 $ 53.1 $ 30.3 Interest expense, net 3.5 4.2 9.1 7.9 Income before income taxes $ 23.8 $ 15.4 $ 44.0 $ 22.4 Provision for income taxes 9.4 6.9 17.6 11.4 Net income $ 14.4 $ 8.5(b) $ 26.4 $11.0(b) Net income per common and common eqivalent share (c)$ .45 $ .27 $ .84 (a) Weighted average common and common equivalent shares outstanding (in thousands) (c) 32,693 32,057 32,515 (a) FISHER-PRICE, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (continued) (a) For the first six months of the nine months ended Sept. 29, 1991, Fisher-Price operated as a division of The Quaker Oats Company, therefore, the reported results are not necessarily indicative of the financial performance of Fisher-Price as a stand-alone entity. As Fisher-Price was not a separate publicly-held company during this period, net income per common and common equivalent share and weighted average common and common equivalent shares outstanding are not applicable. (b) For comparative purposes, the results for the three and nine months ended Sept. 29, 1991 have been restated to reflect the change in accounting policy for advertising and merchandising, which was implemented on July 1, 1991. Application of this change in accounting policy, to calendar year 1991, results in the three and nine months ended Sept. 29, 1991 advertising and merchandising decreasing by $.6 million and increasing by $4.5 million, respectively, and the resultant net income increasing by $.3 and decreasing by $2.3 million, respectively. These quarter-to-quarter changes do not affect results for the calendar year. Full details of these adjustments will be set out in our third quarter Form 10-Q, which will be available to all stockholders upon request. (c) Where applicable, data has been adjusted to reflect the two-for-one stock split distributed June 1, 1992. This is the first time that common equivalent shares had a dilutive effect on computing net income per common and common equivalent share. As such, primary net income per common and common equivalent share and weighted average common and common equivalent shares outstanding are presented. Since fully diluted data is approximately the same as primary data, it is not presented. FISHER-PRICE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS Dollars in Millions Sept. 27, Sept. 29, 1992 1991 (Unaudited) Assets Current Assets Cash and short-term investments $ 37.1 $ 6.9 Receivables, net 187.0 201.5 Inventories, net 77.7 68.1 Prepaid expenses and other current assets 41.4 32.8 Total Current Assets $ 343.2 $ 309.3 Property, plant and equipment, net 102.5 111.9 Intangible assets, net 39.9 41.4 Other assets 13.9 13.6 Total Assets $ 499.5 $ 476.2 Liabilities and Stockholders' Equity Current Liabilities Notes payable to banks $ 30.6 $ 40.4 Trade accounts payable 20.1 25.8 Accrued liabilities 94.7 85.5 Total Current Liabilities $ 145.4 $ 151.7 Long-term debt 98.5 98.3 Deferred income taxes 9.8 12.1 Total Liabilities $ 253.7 $ 262.1 Stockholders' equity 245.8 214.1 Total Liabilities and Stockholders' Equity $ 499.5 $ 476.2 -0- 10/21/92 /CONTACT: Carol Blackley of Fisher-Price, Inc., 716-687-3423/ (FPP) CO: Fisher-Price, Inc. ST: New York IN: LEI SU: ERN
KK -- CL001 -- 2667 10/21/92 08:19 EDT
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|Date:||Oct 21, 1992|
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