APII today's news:
Source: biz.yahoo.com
Tuesday July 21, 7:57 am Eastern Time
Company Press Release
SOURCE: Action Products International, Inc.
APII Reports Record Second Quarter, Fifth Consecutive Quarter of
Increased Revenue
OCALA, Fla., July 21 /PRNewswire/ -- Action Products International, Inc. (Nasdaq: APII - news) today announced record
results for the quarter ended June 30, 1998. In the first year since the Company's divestiture of certain non-core businesses,
sales for the second quarter 1998 surpassed second quarter 1997 sales, reaching a new quarterly record. Sales for the first six
months, meanwhile, were up approximately 5% over the prior year, despite the more than 15% contribution to last year's
number by product lines the Company sold in the closing hours of 1997. On a basis of ''continuing business lines,'' sales for the
first half of '98 are up 23.3%.
The Company's gross profit margin showed continued enhancement, with a net increase of 4 percentage points over Q2 1997;
one of the positive effects of the recent divestitures of lower margin businesses. Net earnings for the quarter improved nearly
4% over the previous year's second quarter, while earnings for the six months ended June 30, 1998, rose more than 65% over
the first half of 1997.
''The first half of '98 has been a success in terms of replacing and surpassing the significant sales deficit we began with, due to
our selling off of non-core lines,'' commented Ronald S. Kaplan, Action's CEO/Chairman. ''We are reporting record results
for the quarter, accompanied by the best sales month in APII history. Equally impressive, if not more so, is the fact that we
were able to surmount the prior year's record figures without the more than 15% that our recently divested non-core
businesses contributed to 1997 2nd Quarter sales.''
Management is forecasting a continuation of this upward trend with further sales gains in the third & fourth quarters, making
1998 the Company's fifth consecutive year for increased sales.
Kaplan continued, ''As important as our increased profit margins, the divestiture of our non-core lines has also afforded us
capital which translates into additional dollars that we are now investing in product and brand development, with no further
dilution of current shareholders as an effect. Building momentum, largely on the strengths of Space Voyagers(TM), whose
reception in the marketplace has exceeded our expectations, and other proprietary lines, we are positioning ourselves to
capitalize on our efforts and reward our shareholders with the growth they deserve.''
Quarterly Financial Highlights
For the three months For the six months
ended June 30th ended June 30th
Operations 1998 1997 Change 1998 1997 Change
Sales $1,827,800 $1,809,600 up 1.01% $3,081,500 $2,954,000 up 4.32%
Gross
Profit $892,200 $811,300 up 9.97% $1,497,700 $1,287,500 up 16.33%
Gross
Profit
Margin 48.81% 44.83% up 4 pts 48.60% 43.58% 5 pts
Net Income $243,100 $234,700 up 3.58% $283,200 $171,000 up 65.61%
Net Income
Per Share $0.15 $0.15 0% $0.17 $0.11 up 54.55%
Weighted Avg
# shares 1,624,900 1,549,900 up 75,000 1,624,900 1,549,900 up 75,000
Educational toy maker/publisher Action Products International, Inc. designs, markets and produces educational toys and
published products including books and CD-ROMs. Its products are marketed and sold to toy stores, specialty retailers,
museums, zoos, theme parks, attractions, catalog companies, Internet retailers and education markets in the United States and
worldwide.
For further information, please contact: Action Products International, Inc., Rebecca Garrett, Investor Relations at 344
Cypress Road, Ocala, Florida 34472-3108, 352-680-3516, or visit the Company on the World Wide Web at:
apii.com.
NOTE: Any statements that are not historical facts contained in this release are forward-looking statements. It is possible that
the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially
from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties,
including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions,
and intellectual property rights and the outcome of competitive products, risks in product development, the results of financing
effort, the ability to complete transactions, and other risks identified in this release and the Company's Securities and Exchange
Commission filings.
SOURCE: Action Products International, Inc.
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Related News Categories: earnings, education, food/beverage, publishing
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