Looking to buy more PLCO here.
PLAY CO TOYS & ENTMT CORP (PLCO)
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Website: playco.com
Ecommerce: toyswhypayretail.com
Contact number: (760)471-4505
Email: investors@playco.com
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52 week high- 1.50(Nov. 19,1999)
52 week low- .172(Aug. 15,2000)
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OS- approx. 56,217,377 as of 9/18/2000
Float- approx. 11,800,000
Insiders own 77%
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To view the past PR's, please view this link:
biz.yahoo.com
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1 year chart: finance.yahoo.com
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Daily price/volume info:
clearstation.com
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Business Summary
Play Co. is a toy retailer with 35 stores located in
ten states. All 35 of those stores are operated by the
Toys International subsidiary (publicly traded under
the ticker symbol TX40 on the Frankfurt Stock Exchange
in Germany.) The Company operates under the Play Co.
Toys, Toys International and Toy Co. trade names. The
Company specializes in offering educational,
specialty, collectible, specialty imported and
traditional toys.
**pulled from the PR on 10/13: Richard Brady, Company
President stated, "We are excited to open our first
store in the state of Colorado. We expect to open
three additional stores before the end of the year in
Mall of America in Minnesota, Woodfield Mall in
Schaumburg, Illinois and in Arundel Mills in
Baltimore, Maryland."
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To see how their E-commerce
website(ToysWhyPayRetail.com) was rated by
Bizrate.com, goto this link:
bizrate.com
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The following info was pulled from the 10QSB that was
filed on 8/21/00
Three months ended June 30,2000, total
sales(stores/website) were $7,018,093. With a gross
profit of $3,063,425.
The Company posted a gross profit of $3,063,425 in the
three months ended June 30, 2000, reflecting an
increase of $318,074, or 11.6%, from the gross profit
of $2,745,351 in the three months ended June 30, 1999.
This increase was due to the above noted growth in
sales. The Company's gross margin of 43.7% in the June
2000 period was 1.6% greater than the gross margin of
42.1% achieved in the June 1999 period.
Operating expenses (excluding depreciation and
amortization expenses) for the three months ended June
30, 2000 were $5,541,313. This represented a
$1,787,785, or 47.6%, increase over the Company's
operating expenses of $3,753,528 in the three months
ended June 30, 1999. The primary reasons for the
operating expense increase were operating expenses
relating to the Internet Operations of approximately
$427,000, an increase in payroll and related expenses
of $812,000 and an increase in rent expense of
approximately $770,000. The payroll expense increase
was due to the addition of a new President, a new
Director of MIS, as well as several middle managers
and employees at the Company's new stores. The growth
of rent expense was the result of adding additional
stores.
Planned new store openings remain a significant
capital commitment of the Company. The Company has
entered into leases to open seven new stores by the
end of calendar year 2000. The Company expects that
the costs of building those new stores net of landlord
tenant improvement contributions and of inventory
requirements will be approximately $3.6 million. The
Company plans to finance the costs of opening those
new stores through a combination of capital lease
financing and the use of the Company's working
capital.
Three of those new stores were opened in the May
through August period. The first of those stores
opened in May in Nashville, Tennessee. The second
opened in June in Orlando, Florida. The third opened
in the Aladdin hotel in Las Vegas, Nevada in August.
The net costs of constructing those three stores
(excluding inventory and the costs of opening the
store including personnel acquisition and training)
were approximately $1.5 million. The costs of opening
the stores is included in operating expenses.
The remaining four stores are scheduled to open in the
September through November timeframe. Those new stores
will be located in Colorado, Illinois, Maryland and
Minnesota. It is expected that the net costs of
constructing those stores (excluding inventory and the
costs of opening the store including personnel
acquisition and training) will be approximately $2.1
million.
The Company continues to seek an alternative financing
agreement. The Company has received a letter of intent
for a multiyear, $15 million line of credit from a
major finance company, which is completing its due
diligence. However, there can be no assurance that any
such finance agreement will be consummated on terms
acceptable to the Company, or if at all.
Trends Affecting Liquidity, Capital Resources and
Operations
The Company believes that the period covered by both
its fiscal year 2000 and the three months ended June
30, 2000 were slow periods for the worldwide toy
industry. With the exception of the Pokemon
phenomenon, there were very few hot toys. Movie
related toy products (such as Star Wars) did not sell
well in that period and as discussed above, sales of
Beanie babies slowed dramatically.
The Company is trying to mitigate this slowness in the
toy industry by locating its new stores in sites that
have a large amount of customer foot traffic such as
tourist areas. These high-traffic areas should enable
the Company to provide better access to its
educational, specialty, and collectible toy
merchandise. Additionally, the history of the toy
industry indicates that there is generally at least
one highly popular toy every year. The Company
believes that its new locations will help position the
Company to take advantage of those future positive
trends.
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