Well the numbers are out today...
Thursday March 4, 11:38 am Eastern Time
Company Press Release
SOURCE: Action Products International, Inc.
Action Products Reports 1998 Financial
Results
ORLANDO, Fla., March 4 /PRNewswire/ -- Action Products International, Inc. (Nasdaq: APII - news) today
reported record sales and its financial results for its fiscal year ended December 31, 1998. After the profitable
divestiture of two low-margin product lines (snacks and apparel) which comprised more than 20% of 1997
sales, the Company more than matched its prior year record sales of $5,864,300 with annual sales $5,868,800
for 1998. On a basis of continuing toy and book product lines, this reflects an increase of approximately 35%.
Sales for the fourth quarter were $1,022,500 compared to $1,209,800 for the same quarter last year due to the
divestitures and a continuing shift in the Company's seasonal peak. Pre-tax earnings for the year ended
December 31, 1998 were $202,100, or $.12 per outstanding share. Management notes 1997 pre- tax earnings
of $166,800 before the recognition of the $771,800 gain associated with the sale, disposition, and
discontinuation of non-core product lines.
''Though aggregate sales appear relatively flat, our comparable sales are up significantly. 1998 was our first
year since the divestiture of our Action Snacks® and other low-profit, non-core lines, which contributed
approximately 20% to 1997 sales. Considering the substantial deficit we began the year with due to these
divestitures, we are pleased that we were able to meet, and slightly exceed, our 1997 net sales figure.''
President Ronald S. Kaplan continued, ''In addition to a continuing rise in gross profit, we continue to see
benefits from the product shift, including dramatically improved cash flow and an increased emphasis on
product development. The Company is developing new brands and product line extensions, several of which we
recently unveiled at the New York Toy Fair. Indicators suggest these brands will continue to gain momentum and
do extremely well throughout this year and beyond. I am confident that 1999 will be a very exciting growth year
for APII.''
Action Products International, Inc.
Quarterly Year-End
Financial Highlights Financial Highlights
For the three months ended For the years ended
December 31 December 31
Operations 1998 1997 1998 1997
Sales $1,022,500 $1,209,800 $5,868,800 $5,864,300
Pre-tax earnings* ($237,500) ($136,800) $202,100 $166,800
Pre-tax earnings
per outstanding share* ($ 0.15) ($ 0.08) $ 0.12 $ 0.11
Outstanding Shares 1,624,900 1,624,900 1,624,900 1,579,100
* Results for the periods ended December 31, 1997 do not include the
$771,800 gain associated with the sale, disposition, and discontinuation
of non-core product lines.
As of December 31
Financial Position 1998 1997
Current Assets 2,401,100 2,971,800
Current Liabilities 367,000 983,100
Total Assets 4,979,400 5,320,300
Long Term Debt 748,100 600,000
Shareholders' Equity 3,486,300 3,214,700
Educational toymaker/publisher Action Products International, Inc. designs, markets and produces educational
toys and published products including books and CD-ROMs. Its products are marketed and sold to toy stores,
specialty retailers, internet retailers, museums, zoos, theme parks, attractions, catalog companies, and
education markets in the United States and worldwide.
For further information, please contact: Action Products International, Inc., Rebecca Garrett, Investor Relations
at (352) 680-3516 (investor@apii.com) or visit them on the World Wide Web at: www.apii.com or
www.spacevoyagers.com.
NOTE: Any statements that are not historical facts contained in this release are forward-looking statements. It is
possible that the assumptions made by management for purposes of such statements may not materialize.
Actual results may differ materially from those projected or implied in any forward-looking statements. Such
statements may involve risks and uncertainties, including but not limited to those relating to product demand,
pricing, market acceptance, the effect of economic conditions, and intellectual property rights and the outcome
of competitive products, risks in product development, the results of financing effort, the ability to complete
transactions, and other risks identified in this release and the Company's Securities and Exchange
Commission filings.
SOURCE: Action Products International, Inc.
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