Action Performance Announces Record Results for Its Fiscal 1999 Third Quarter and Nine-month Period
PHOENIX--(BUSINESS WIRE0--July 27, 1999--Action Performance Companies, Inc. (Nasdaq:ACTN - news), today announced record sales and earnings for its fiscal 1999 third quarter and nine-months ended June 30, 1999.
For the fiscal third quarter, sales grew 32% to a record $101.5 million from $76.8 million for the comparable quarter of fiscal 1998. Net income for the third quarter of fiscal 1999 was $12.7 million, or $0.70 per share, excluding the dilutive impact of the company's Internet business of approximately $0.06 per share, compared to net income for the third quarter of fiscal 1998 of $8.5 million, or $0.50 per share.
For the fiscal 1999 nine-month period, sales advanced 46% to $252.0 million from $172.9 million during the comparable period of fiscal 1998. Net income for the period reached $23.1 million, or $1.33 per share, compared to $16.8 million, or $1.01 per share, for first nine-months of fiscal 1998. Net income and earnings per share for the nine-month period of 1998 exclude the effects of legal settlement charges of $950,000. The company's convertible subordinated notes were anti-dilutive for the 1998 nine-month period.
Said Fred Wagenhals, Action chairman, president and CEO, ''We are extremely pleased with our operating results for the third quarter. We continue to see momentum in the sport and strong demand for the Company's products. Our domestic trackside operations grew more than 20% over the same period of 1998 on a same-race-basis, and in Europe, our first outing at the British Grand Prix, we generated over $1.0 million in product sales and rights fees at the track.
''During the quarter we completed a number of successful programs including Star Wars, Wrangler and Superman, all capitalizing on the strength of our marketing assets. We expect to continue to increase our share of the growing domestic market for motorsports consumer products and expand our revenue base by leveraging our expertise against the untapped market for European motorsports.''
Action Performance Companies, Inc. is the leader in the design, marketing, promotion and distribution of licensed motorsports merchandise. Its products include a broad range of motorsports-related die-cast car replica collectibles, apparel, souvenirs, and other memorabilia.
The company markets and distributes products through a variety of channels, including the 167,000-member Racing Collectables Club of America (RCCA), online through SpeedMall at goracing.com, trackside at racing events, mass retail department stores, and a worldwide network of wholesale distributors and specialty dealers.
This press release contains forward-looking statements. The company's actual results could differ materially from those set forth in the forward-looking statements. Factors that might cause such a difference include, among others, competitive pressures, the company's ability to successfully implement e-commerce initiatives, constantly changing technology, acceptance of Action's products and services in the marketplace and other risks detailed in the company's Securities and Exchange Commission filings, including the company's Form 10-K/A dated Sept. 30, 1998. |
