BEAR earnings 0.02 profit vs -0.20 loss! Company is indeed turning the corner, lets see what the CEO has to say on FOX. BEAR could fly tomorrow since it has only a 2 mil float.
Monday February 8, 6:09 pm Eastern Time
Company Press Release
SOURCE: Vermont Teddy Bear Company
The Vermont Teddy Bear Company(R) Reports Q2 Profits
SHELBURNE, Vt., Feb. 8 /PRNewswire/ -- The Vermont Teddy Bear Company® (Nasdaq: BEAR - news) announced today net income to common shareholders of $78,000 or .02 per basic common share for the quarter ending December 31, 1998, compared to a loss of $1,059,000 or .20 per share in the same quarter last year. Revenues in the quarter increased 17.2% to 4.8 Million from 4.1 Million last year.
''The Vermont Teddy Bear Company® is in the midst of an exciting turnaround,'' said President Elisabeth Robert. ''Our marketing strategy to focus on our core Bear-Gram® delivery service is principally responsible for driving renewed growth but other exciting sales opportunities are beginning to pay off with measurable results. In short, we have a far better understanding of our business and are poised to take advantage of the opportunities we have created.''
Several factors contribute to the dramatic improvement to the Company's performance, including a highly targeted and analytical radio marketing strategy complemented by the Company's Internet website, the elimination of unprofitable offsite retail stores, and entry into new special markets. Additionally, new Teddy Bear designs mirroring edgier consumer lifestyles are consistently selling through projected numbers, suggesting a creative direction that more closely profiles the Company's customer.
Christmas, the first of three peak selling seasons of the fiscal year, resulted with a complete sell through of all new Christmas product as the Company continued to expand its radio advertising campaign for the Bear-Gram® delivery service into new cities across the country. This year at Christmas the Company advertised in 50 cities versus 11 the previous year.
In the quarter, the Company recorded a three-fold gain over the prior year in on-line orders from its website address as a result of increasing synergy between the radio advertising campaign and the Internet. Every radio commercial is now tagged with the Company's website address (www.VermontTeddyBear.com) in addition to its toll free telephone number (1- 800-829-BEAR). The Company has also expanded it's sales through affiliations with other on-line marketers including FTD, iQVC, e-TOYS and Yahoo! Shopping. More than 20% of orders for the Christmas season came from the internet.
''The internet will be a key driver of future revenue growth for the Company,'' said Robert. ''It offers a low cost visual complement to our radio advertising for an increasing number of our customers across the country. Selection, convenience, personal service, and last minute delivery options, which are hallmarks of our Bear-Gram® delivery service, are all marketing features that are particularly well suited to the on-line shopping experience.''
The Company's wholesale and corporate sales department, established in January 1998, also announced several new sales partnerships forged this fiscal year. A trial partnership with Zany Brainy, a multi media educational super toy store, brings the Vermont Teddy Bear Company's Make-A-Friend-For-Life® make your own teddy bear concept process to Marlton, NJ. The Company has designed programs for customers in the corporate affinity market including Novartis, Inc, American Cyanamid Company, Nabisco Company, Jamaica Savings Bank, John Hancock and Mastercard International. This year The Vermont Teddy Bear Company® was also named the official Teddy Bear of the Hartford and New York City Marathons.
In the next quarter, the Company plans to continue marketing the Bear-Gram® delivery service and pursuing and expanding profitable sales channels which complement the core business while, keeping marketing overhead and general and administrative expenses down.
Robert adds, ''Looking ahead, we, will Continue to focus on expanding markets for our Bear-Gram® delivery service through direct response radio advertising and the Internet. And as we build our brand nationally we will seek out new opportunities in the wholesale and corporate affinity markets in order to further leverage our advertising dollars at minimum additional expense.''
In anticipation of increased demand for Teddy Bears at Valentine's Day, Mother's Day and beyond, The Company recently added a second sewing shift to bear production, staffed by eight new full-time employees. The Company has also begun to import quality plush fabric from China at significantly reduced cost to supplement fur supplies purchased domestically.
The foregoing can be interpreted as including forward looking statements under the Private Securities Litigation Reform Act of 1995. Actual future results may differ materially from those suggested by the statements above.
The Vermont Teddy Bear Company® is the largest manufacturer of Teddy Bears in North America, making more than 250,000 bears annually at its Shelburne, Vermont factory and selling them out of its factory store or via its Bear-Gram® delivery service. To place a Bear-Gram® order, customers call 1-800-829-BEAR or log on to the Company's popular site www.VermontTeddyBear.com, choose a bear and personalize it to suit a special life event, occasion or holiday.
Every Bear-Gram® delivery comes with a customized Vermont Teddy Bear®, personalized gift card, delicious candy treat, and safety B'Air bag filled with fresh Vermont air, all packaged in a colorful gift box complete with Airhole. Each Vermont Teddy bear is guaranteed for life and the Company provides optional next day delivery for all orders received by 4 pm Eastern time (3 pm on the Internet).
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