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RollerBall International Inc. Reports Second Quarter And Six Months Results
LOS ANGELES, Aug. 16 /PRNewswire/ -- RollerBall International Inc. (Nasdaq: ROLL - news) today announced results of operations for the second quarter and six months ended June 30, 1999.
Net sales for the six months and second quarter ended June 30, 1999 were $1,150,332 and $559,574, respectively, as compared to $931,015 and $875,212 for the comparable periods in 1998. The six months sales volume represents a 24% increase compared to the six months ended 1998. Gross margin for the six months and second quarter was 35.5%, and 36.9%, respectively, representing increases of 2.5% and 3.6% to gross margin reported in 1998. Net loss for the six months and second quarter was $971,660 (or $0.20 per diluted share) and $573,350 (or $0.11 per diluted share), respectively, as compared to net loss of $1,560,866 (or $0.39 per diluted share) and $752,887 (or $0.16 per diluted share) for the comparable periods in 1998. The net loss for the six months represents a 38% decrease compared to the six months ended 1998. Weighted average common shares outstanding on both a basic and diluted basis used to compute earnings per share for the six months and second quarter were 4,898,360 and 5,040,026, respectively, compared to 4,051,189 and 4,696,285 respectively for the same periods in 1998.
The Company reported that the increase in net sales for the six months was primarily attributable to the increased domestic distribution in retail outlets, in addition to the Internet sales during the period as compared to the first six months in 1998. The decrease in sales for the second quarter was attributed to shipment difficulties and delays associated with inventory produced in the Orient. This will result in sales shifting from the second quarter to the third quarter. The increased gross margins for both periods were attributable to the new line of skates being sold at higher margins and cost reductions experienced in both periods. The decrease in net loss for both periods are primarily attributable to the increased sales activity experienced in the first quarter 1999 as compared to the same period ended 1998, coupled with the increased gross profit margin and decrease in interest expense.
Commenting, Jack Forcelledo, Founder and CEO of RollerBall International Inc., said: ``RollerBall's patented skate line continues to gain recognition by major companies, as evidenced by our recent announcements regarding Amway Corporation, one of the largest direct selling companies in the world, selecting our skate for its new catalog, and Fingerhut, one of the nation's largest direct marketing and online retailers, featuring our line in their catalogs and on their websites. Our on-line store, 'RollerBall Sports Online', is gaining in popularity and shoppers. RollerBall skates continue to be recognized as one of the safest and easiest to skate inline in the market.'
Mr. Forcelledo concluded with: ``Sales volume of $1,150,332 reported for the six months was approximately 74% of the entire 1998 sales volume. The Company continues to expect increased gross profit margins and decreased interest expense over the next several quarters, coupled with stronger sales resulting from the added exposure created by Amway and Fingerhut and increased shopper interest in our on-line store. In addition, the Company continues to add strong distributors for Europe which should provide some major incremental volume late this year and throughout 2000.'
RollerBall skates are currently available at retail outlets nationwide including selected Jumbo Sports, Dunham's, MVP Sports and G.I. Joe's. The Company's skates are also sold at Champs, Sport Chalet as well as through Home Shopping Network and are available from the Internet outlets Shopping.com and RollerBall Sports On-line, a new feature of the Company's Web site www.rollerballskates.com.
This document contains forward looking statements that involve a number of uncertainties and risks that could cause actual results to differ materially from those discussed in the forward-looking statements, including risks associated with the Company's accumulated deficit, limited operating history, reliance on a limited number of major customers, intense competition in the markets in which the Company competes and other risks outlined in the Company recent prospectus and the Company's subsequent SEC filings.
RollerBall International Inc.
Statements of Operations
Six months ended Three months ended
June 30, June 30,
1999 1998 1999 1998
(unaudited) (unaudited)
Net sales $1,150,332 $931,015 $559,574 $875,212
Cost of sales 742,476 623,985 352,921 583,657
Gross profit 407,856 307,030 206,653 291,555
Operating expenses:
Selling and
marketing 442,703 668,031 273,125 428,281
General and
administrative 908,594 717,690 494,116 445,971
Total operating
expenses 1,351,297 1,385,721 767,241 874,252
Loss from
operations (943,441) (1,078,691) (560,588) (582,697)
Interest expense 28,019 481,975 12,762 170,190
Loss before provision
for income taxes (971,460) (1,560,666) (573,350) (752,887)
Provision for
income taxes 200 200 -- --
Net loss $(971,660) $(1,560,866) $(573,350) $(752,887)
Net loss per
common share
Basic ($0.20) ($0.39) ($0.11) ($0.16)
Diluted ($0.20) ($0.39) ($0.11) ($0.16)
Weighted average
common shares
outstanding
Basic 4,898,360 4,051,189 5,040,026 4,696,285
Diluted 4,898,360 4,051,189 5,040,026 4,696,285
SOURCE: RollerBall International Inc.
T A P has entered a 6 month contract with RollerBall International Inc. and is being compensated $30,000 for promotional services for the first 3 months to increase consumer and investor awareness. The remaining $30,000 fee is on a contingency performance basis within 6 month contract period. For complete write-up on ROLL and othe T A P companies go to T A P profile for url |
