Action Performance Reports 1998 Fourth Quarter and Year End Results
PHOENIX--(BUSINESS WIRE)--Nov. 17, 1998--Action Performance Companies, Inc. (Nasdaq/NMS:ACTN - news) today announced record sales and earnings for its fiscal fourth quarter and year ended Sept. 30, 1998.
For the fiscal fourth quarter, sales grew 67% to a record $79.0 million from $47.3 million for the comparable quarter of 1997. Net income for the period also increased 67% to $8.3 million, or $0.49 per diluted share, compared with net income of $5.0 million, or $0.31 per diluted share, in the fourth quarter a year ago.
The calculation of diluted earnings per share for the fourth quarter of 1998 includes the dilutive effect of approximately $0.01 per share related to the Company's convertible subordinated notes.
For fiscal 1998, the Company achieved record sales of $251.9 million, an increase of approximately 93% from sales of $130.4 million in fiscal 1997. Excluding the effects of non-recurring charges, net income increased 88% to $25.2 million, or $1.51 per diluted share, for fiscal 1998, versus net income of $13.4 million, or $0.91 per diluted share, for fiscal 1997.
On a pro forma basis, had the acquisitions completed during 1998 occurred at the beginning of the fiscal year, the Company's sales and net income would have been $283.7 million and $26.2 million, or $1.57 per diluted share, respectively.
Said Fred W. Wagenhals, Action chairman, president and CEO, ''We are extremely pleased with our operating results for the fourth quarter and fiscal year. The growth of our sales and earnings is a positive reflection of the drivers and teams we have under contract, the success of our creative marketing efforts and the expanding popularity of motorsports. These results validate our corporate strategy and our dedication to motorsports.''
Wagenhals added, ''During 1998, Action strengthened its portfolio of licenses by adding Rusty Wallace to our team and extending Jeff Gordon's license through 2005. We expanded internationally with the acquisition of Minichamps and further leveraged our licenses though the acquisitions of the Revell, Brookfield and Chase brands of licensed merchandise.
''As we enter fiscal 1999, we are focused on integrating our computer and telecommunications systems and developing the most advanced and entertaining electronic commerce solution in the business. With our electronic commerce initiative and integrated systems, we will have the infrastructure in place to take this Company to the next level,'' concluded Wagenhals.
Action Performance Companies, Inc. is the leader in the design, marketing, and distribution of licensed motorsports merchandise. Its products include a broad range of motorsports-related die-cast car replica collectibles, apparel, souvenirs, and other memorabilia.
The Company markets and distributes products through a variety of channels, including the 153,000-member Racing Collectables Club of America (RCCA), trackside at racing events, mass retail department stores, and a worldwide network of wholesale distributors and specialty dealers.
The Company from time to time makes forward-looking statements in its public disclosures; including statements regarding sales and earnings growth, expectations regarding the continued popularity of motorsports and growth in the market for licensed motorsports merchandise. Important risks and uncertainties that could cause the Company's results to differ materially from those contained in such forward-looking statements are detailed in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended Sept. 30, 1997. |
