Printer Friendly

UNIVERSAL MATCHBOX GROUP REPORTS SECOND QUARTER RESULTS

 UNIVERSAL MATCHBOX GROUP REPORTS SECOND QUARTER RESULTS
 NEW YORK, July 31 /PRNewswire/ -- Universal Matchbox Group Ltd.


(NYSE: UMG) today reported results for the second quarter ended June 30, 1992.
 Net sales in the second quarter decreased 1.6 percent to $33.7 million as compared to $34.3 million in the same period in 1991. The decline was mainly due to lower contract manufacturing revenue following the proposed acquisition of the company by Tyco Toys, Inc. The operating loss in the second quarter was $1.1 million versus operating income of $0.9 million last year. The change resulted from a decrease in gross profit margin to 43.2 percent from 45.8 percent in 1991 and an increase in other selling, general and administrative expenses to $12.8 million from $11.9 million.
 The drop in gross profit margin was mainly attributable to a lower proportion to total sales of high margin products. The increase in other selling, general and administrative expenses was primarily due to increased research and development expenses and expenses associated with the proposed acquisition of the company by Tyco Toys, Inc.
 Net loss applicable to common shares for the second quarter was $2.0 million, compared with a break-even quarter in 1991. Interest expense decreased to $0.9 million from $1.6 million last year due to reduced bank borrowing requirements and lower interest rates. Continual weakness of U.S. dollar against major currencies since April 1992 resulted in a foreign exchange loss of $0.4 million in the second quarter versus a gain of $0.5 million in 1991. There was an insignificant other expense in the current quarter as opposed to other income of $0.5 million in 1991, which was mainly due to gains on disposal of certain fixed assets.
 Net sales for the first six months decreased 1.9 percent to $64.3 million from $65.6 million in 1991. The operating loss in the 1992 first half increased to $2.3 million from $0.3 million last year. The six month net loss applicable to common shares was $3.2 million, as compared to $1.2 million in 1991. The increase is primarily due to the higher operating loss and a significantly lower foreign exchange gain, despite a reduced interest expense.
 Universal Matchbox Group Ltd. is one of the world's leading toy companies. The company designs, manufactures and markets toys in more than 120 countries. The company is also a contract manufacturer for other major international toy companies.
 UNIVERSAL MATCHBOX GROUP LTD. AND SUBSIDIARIES
 Consolidated Statement of Income (Unaudited)
 (In thousands of U.S. dollars except per share data)
 Periods ended Three Months Six Months
 June 30 1992 1991 1992 1991
 Net sales $33,747 $34,294 $64,336 $65,572
 Cost of sales 19,175 18,602 35,337 35,372
 Gross profit 14,572 15,692 28,999 30,200
 Advertising &
 promotion expenses 2,857 2,867 5,235 5,453
 Other selling, genl.
 & admin. expenses 12,804 11,876 26,070 24,999
 Operating (loss) inc. (1,089) 949 (2,306) (252)
 Interest expense 884 1,630 1,684 3,369
 Loss (gain) on foreign
 exchange 378 (537) (356) (1,823)
 Other expense (income) 12 (486) 114 (568)
 (Loss) income before
 income taxes (2,363) 342 (3,748) (1,230)
 Credit (provision)
 for income taxes 374 (270) 658 (2)
 Net (loss) income (1,989) 72 (3,090) (1,232)
 Preferred stock div.
 requirements 46 -- 92 --
 Net (loss) income
 applicable to common
 shares $(2,035) $ 72 $(3,182) $(1,232)
 Earnings per share:
 Net (loss) applicable
 to common shares $(.22) $(.01) $(.35) $(.15)
 Weighted average
 common shares
 (in thousands) 9,750 9,750 9,750 9,750
 In the calculation of earnings per share, net (loss) income applicable to common shares was adjusted for cumulative unpaid dividends on the company's Series A preferred stock, which have not been declared.
 UNIVERSAL MATCHBOX GROUP LTD. AND SUBSIDIARIES
 Consolidated Condensed Balance Sheet (unaudited)
 (In thousands of U.S. dollars)
 6/30/92 6/30/91 12/31/91
 ASSETS
 Accounts receivable $ 33,591 $ 31,701 $ 38,095
 Inventories 40,337 34,931 29,517
 Other current assets 21,376 27,289 20,147
 Non-current assets 31,384 33,005 32,547
 Total $126,688 $126,926 $120,306
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Short-term bank
 borrowings $ 45,366 $ 43,075 $ 33,059
 Accounts payable 10,419 8,446 7,460
 Other current liabilities 12,792 16,115 16,240
 Non-current liabilities 9,536 16,144 12,055
 Subordinated convertible
 notes due 1992 2,500 2,500 2,500
 Shareholders' equity 46,075 40,646 48,992
 Total $126,688 $126,926 $120,306
 -0- 7/31/92
 /CONTACT: Philip Y. Sardoff of Green, Lind & McNulty, 908-686-7500, for Universal Matchbox/
 (UMG) CO: Universal Matchbox Group Ltd. ST: New York IN: REA SU: ERN


GK-LR -- NY012 -- 5501 07/31/92 10:23 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 31, 1992
Words:819
Previous Article:HARRIER CLOSES AMENDED BIOPTRON SALE AGREEMENT
Next Article:UNITOR REPORTS FIRST-HALF RESULTS
Topics:


Related Articles
UNIVERSAL MATCHBOX GROUP REPORTS FOURTH QUARTER AND FULL YEAR 1991 POSITIVE RESULTS
UNIVERSAL MATCHBOX GROUP REPORTS STEADY-ON-COURSE FIRST QUARTER PERFORMANCE
TYCO TOYS/UNIVERSAL MATCHBOX GROUP REVISED AGREEMENT
UNIVERSAL CORPORATION REPORTS SECOND QUARTER EARNINGS
MATCHBOX ORIGINALS TURN 40 MINIATURE CARS FUELED BY IMAGINATION
/C O R R E C T I O N -- TYCO TOYS/
Jefferson-Pilot's Second-Quarter Earnings Increase 14 Percent.
Mattel Completes Phase Two of Interactive Media Strategy.
PR Newswire Southern California Summary, Tuesday, May 6, 2003 Up to 11:00 a.m. PT.
Matchbox tour on back of new album.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters