November 08, 1999 15:42
Grand Toys International Announces Record Sales and Earnings for
Third Quarter
MONTREAL, Nov. 8 /PRNewswire/ -- Grand Toys International, Inc. (Nasdaq: GRIN) today announced record results for its third quarter ended September 30, 1999.
Net sales for the third quarter of 1999 increased 18% to $9.9 million from $8.4 million in the third quarter of 1998. The Company reported net earnings of $679,806 for the third quarter, a 59% increase from net earnings of $426,502 in the third quarter of 1998. Earnings per share for the quarter were $0.30 per basic share compared to $0.27 per basic share in the comparable period of 1998. Earnings per share for the third quarter of 1999 are based on a weighted average of 2,248,800 common shares outstanding during the quarter, a 43% increase over the weighted average common shares outstanding during the third quarter of
1998. Common shares outstanding reached 3,069,391 at the end of the third quarter due to the exercise of options and warrants. The exercise of options and warrants resulted in receipt by the Company of in excess of $8.0 million in new equity capital.
For the nine month period ended September 30, 1999, Grand achieved record net sales of $27.3 million, a 44% increase over sales of $19.0 million during the comparable period of 1998. Net earnings for the nine month period increased 73% to $1,158,443, or $0.64 per basic share, based on a weighted average of 1,804,591 common shares outstanding, compared to $669,551, or $0.42 per basic share, for the first nine months of 1998, based on a weighted average of 1,577,597 common shares outstanding for the year ago period.
Commenting on the results, Steve Altro, Chairman, said, "The recently concluded third quarter marked considerable financial progress for Grand Toys. Our balance sheet was strengthened considerably by the
receipt of approximately $8.0 million in cash from the exercise of options and warrants during the quarter, bringing our stockholders' equity to approximately $13.4 million, a 338% increase over stockholders' equity at the close of 1998. The substantial increase in the number of common shares outstanding should improve the liquidity of the trading market for our shares, to the benefit of our stockholders. We also announced a new three year $17.5 million credit facility. Working capital grew to $12.7 million at the end of the quarter from $3.1 million at June 30, 1999, over a 400% increase. With the infusion of cash, the Company was largely debt free at the close of the third quarter, with the strongest balance sheet in its history, permitting us substantial freedom to act on opportunities that may present themselves in the future."
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