Numbers looks good but I did notice that gross margins fell from 57% to 51%.
Koala Corporation Reports Record Second Quarter and Six-Month
Results; 107% Increase in Second Quarter Sales Leads to EPS of 39 Cents
DENVER, July 20 /PRNewswire/ -- Koala Corporation (Nasdaq: KARE - news), a diversified provider of commercial play systems for children and other ''family-friendly'' products for businesses, today announced higher sales and earnings results for its second quarter and six-month period ended June 30, 1999.
Second quarter sales advanced 107% to $9,150,995 compared with sales of $4,429,581 in the comparable quarter a year ago. Net income increased 64% to $1,265,863, or 39 cents per share assuming dilution, versus net income of $773,950, or 30 cents per share assuming dilution, in the second quarter last year.
Through the first six months of 1999, sales were up 95% to $16,450,422, from sales of $8,443,575 for the comparable period last year. Net income increased 57% to $2,214,540, or 69 cents per share assuming dilution, from net income of $1,408,939, or 54 cents per share assuming dilution, in the six-month period last year.
Management attributed the Company's strong financial results to continued, consistent growth within both of the Company's business segments -- children's convenience and activity products and children's modular play equipment -- as well as to the impact of the Company's successful acquisition program. Since the close of last year's second quarter, Koala has added a key operating unit to each of its business segments.
Mark Betker, chairman and CEO, said, ''Our performance during the second quarter is a direct reflection of the ongoing success of our expansion strategy and of the robust worldwide market for family friendly products and commercial play systems. The integration of our new Superior Foam and Park Structures units into the Koala family is going smoothly, and the depth and breadth of our expanded product offerings have become a key point of leverage in our sales and marketing programs.''
At the end of the second quarter, Koala' balance sheet remained strong with total assets of $44,117,200, working capital of $9,817,213 and a current ratio of 4.9:1.
Founded in 1986, Koala Corporation is an integrated provider of products and solutions designed to help business become ''family friendly'' and allow children to play safely in public. The Company develops and markets a wide variety of infant and child protection and activities products, which are marketed under the Company's recognizable ''Koala Bear Kare'' brand name. Koala's strategic objective is to address the growing commercial demand for safe, public play environments for children, as well as products and solutions that help businesses create family-friendly atmospheres for their patrons.
Statements made in this news release that are not historical facts may be forward looking statements. Actual results may differ materially from those projected in any forward-looking statement. There are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. A description of risks and uncertainties attendant to Koala Corporation and its industry and other factors which could affect the Company's financial results are included in the Company's Securities and Exchange Commission Annual Report on Form 10-KSB.
CONSOLIDATED INCOME STATEMENTS
(unaudited) Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Sales $9,150,995 $4,429,581 $16,450,422 $8,443,575
Cost of sales 4,397,635 1,888,057 8,003,610 3,629,980
Gross profit 4,753,360 2,541,524 8,446,812 4,813,595
Selling, general
and administrative
expenses 2,287,349 1,309,598 4,139,588 2,538,619
Operating income 2,466,011 1,231,926 4,307,224 2,274,976
Other (income)
expense 219,971 (33,377) 362,242 (40,184)
Amortization of
intangibles
and patents 283,461 65,379 511,588 130,758
Income before
provision for
income taxes 1,962,579 1,199,924 3,433,394 2,184,402
Provision for
income taxes 696,716 425,974 1,218,854 775,463
Net income $1,265,863 $773,950 $2,214,540 $1,408,939
Net income per share $0.40 $0.31 $0.72 $0.56
Weighted average
shares outstanding 3,155,149 2,527,362 3,073,255 2,527,362
Net income per share
- assuming dilution $0.39 $0.30 $0.69 $0.54
Weighted average
shares outstanding
- assuming dilution 3,284,658 2,603,447 3,190,656 2,596,394
CONSOLIDATED BALANCE SHEETS
June 30, Dec. 31,
1999 1998
ASSETS: (unaudited) (audited)
Current assets
Cash and cash equivalents $83,083 $6,493,570
Accounts receivable, net 6,658,238 5,781,256
Inventories 4,231,936 3,581,137
Prepaid expenses 1,368,993 838,109
Total current assets 12,342,250 16,694,072
Property and equipment, net 2,888,841 2,432,114
Other assets:
Intangibles and other, net 28,886,109 22,479,014
Total assets $44,117,200 $41,605,200
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities $2,525,037 $7,962,148
Long-term liabilities:
Deferred income tax liability 645,000 645,000
Long-term debt 13,748,818 11,502,271
Total long-term liabilities 14,393,818 12,147,271
Total liabilities 16,918,855 20,109,419
Shareholders' equity 27,198,345 21,495,781
Total liabilities and
shareholders' equity $44,117,200 $41,605,200 |
