All: FYI SFE co BSBL results
Company Press Release
Score Board Reports Second Quarter and Six Month Results
CHERRY HILL, N.J.--(BUSINESS WIRE)--Aug. 12, 1997--The Score Board, Inc. (Nasdaq:BSBL), today reported second quarter and six month results
for the period ended June 30, 1997. Because the Company recently changed its fiscal year-end from January 31 to December 31, the second quarter and six
months ended June 30, 1997 are compared to the second quarter and six months ended July 31, 1996.
Net sales for the 1997 second quarter rose 51% to $14,455,000, compared to $9,543,000 for the three months ended July 31, 1996, due to increased
memorabilia sales, primarily through cable television outlets, and an increase in prepaid telephone calling card sales compared to the previous year's period.
During the 1997 second quarter, Score Board reported a net loss of $661,000, or $0.04 per share, compared to a net loss of $11,010,000, or $0.86 per
share, in the prior year's three month period, which included a $6 million increase in reserves for inventory and player contracts, as well as an extraordinary
gain of $954,000, or $0.08 per share, resulting from the early extinguishment of debt. Per share results for the 1997 and 1996 three-month periods are based
on 14,689,000 and 12,762,000 weighted average shares outstanding, respectively. The increase in weighted average shares is primarily a result of the
issuance of shares in November 1996 in connection with a $4.0 million private equity placement led by T.L. Ventures, the venture capital management arm of
Safeguard Scientifics, Inc. (NYSE:SFE), and the issuance of 912,000 shares of Common Stock in connection with the retirement of $6.5 million of long-term
debt.
Net sales for the first half of 1997 were $25,637,000, compared to $23,710,000 for the six months ended July 31, 1996, due to Score Board's second
quarter sales improvements. The Company reported a net loss for the period of $2,195,000, or $0.15 per share, compared to a net loss of $13,072,000, or
$1.06 per share, for the corresponding period ended July 31, 1996. Results for the six months ended July 31, 1996 included the previously described increase
in reserves and the extraordinary gain. Per share results for the 1997 and 1996 six-month periods are based on 14,689,000 and 12,294,000 weighted
average shares outstanding, respectively.
The Company's selling expenses for both the three-month and six- month periods ended June 30, 1997 decreased from the prior year. Selling expenses for the
periods ended July 31, 1996 included a write-down of guaranteed payments under various entertainment license agreements. The Company did not incur a
similar write-down in 1997. General and Administrative expenses decreased for both periods of 1997 as a result of the Company's cost control programs.
Commenting on the results, John F. White, President and Chief Operating Officer, said, ``Score Board continues to actively evaluate operating and net
margins, primarily with respect to our trading card and memorabilia products. The Company is closely monitoring its overall cost structure in order to enhance
gross margins and has tightly controlled production levels to promote stronger sell-through at the customer level. We are beginning to see benefits from these
operating disciplines, including the substantial reduction in the rate of product returns during the second quarter. We have also recently entered into a formal
agreement with a major cable television outlet and have agreed to a more definitive programming schedule and time allotments, thereby attaining increased
exposure for our products.''
The Score Board, Inc. is a leading marketer and licensor of sports and entertainment-related products sold through national retailers and catalogs, television
shopping programs, hobby/specialty shops, and corporate promotions and premium programs. The Company markets prepaid telephone calling cards,
autographed collectibles, consumer sports products, sports trading cards and other collectible products.
This press release includes forward-looking statements that involve risks and uncertainties. Certain factors may cause actual results to differ materially from
those contained in the forward looking statements, including, but not limited to, quarterly and annual fluctuations in results of operations, unpredictability in the
market for sports memorabilia, trading cards and prepaid telephone calling cards, and other risks detailed from time to time in the Company's reports filed with
the Securities and Exchange Commission including, but not limited to, its annual report on Form 10-K. Actual results may differ materially from management
expectations expressed in the forward looking statements.
THE SCORE BOARD, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(thousands of dollars)
ASSETS
(Unaudited) (Audited)
Current Assets: 6/30/97 12/31/96
Cash $ 137 $ 470
Receivables 7,722 6,157
Inventories 9,888 10,250
Prepaids 1,015 1,010
Total current assets 18,762 17,887
Fixed assets, net 1,240 1,578
Other assets 583 815
$20,585 $20,280
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current Liabilities: 6/30/97 12/31/96
Line of credit $ 6,038 $ 6,743
Accounts payable 10,420 6,749
Accrued liabilities 3,614 4,080
Total current liabilities 20,072 17,572
Long-term debt 4,000 4,000
Shareholders' equity (deficit) (3,487) (1,292)
$20,585 $20,280
THE SCORE BOARD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
6/30/97 7/31/96 6/30/97 7/31/96
Net Sales $ 14,455 $ 9,543 $ 25,637 $ 23,710
Cost of Goods Sold 9,710 14,342 17,242 24,954
Gross Profit 4,745 (4,799) 8,395 (1,244)
Selling, General and
Administrative Expenses 5,153 6,838 10,081 11,936
Net Loss from Operations (408) (11,637) (1,686) (13,180)
Interest Expense 253 327 509 846
Net Loss Before Income Taxes
and Extraordinary Gain (661) (11,964) (2,195) (14,026)
Income Taxes (Benefit) -- -- -- --
Net Loss Before
Extraordinary Gain (661) (11,964) (2,195) (14,026)
Extraordinary Gain Resulting
From Early
Extinguishment of Debt -- 954 -- 954
Net Loss $ (661) $(11,010) $ (2,195) $(13,072)
Net Loss Per Share Before
Extraordinary Gain $ (0.04) $ (0.94) $ (0.15) $ (1.14)
Net (Loss) per Share $ (0.04) $ (0.86) $ (0.15) $ (1.06)
Weighted Average Number
of Shares Outstanding 14,689,000 12,762,000 14,689,000 12,294,000
Contact:
The Score Board, Inc.
John F. White
President and Chief Operating Officer
609/354-9000
or
Jaffoni & Collins Incorporated
David C. Collins, Robert L. Rinderman
212/505-3015
dccollins@earthlink.net |
