Thursday July 8, 6:00 am Eastern Time
Company Press Release
SOURCE: Play Co. Toys & Entertainment Corp.
Play Co. Toys & Entertainment Corp. Announces Net Income in Fiscal Year End March 1999 Results
OTC SYMBOLS: Common Stock - PLCO Series E Preferred Stock - PLCOP Series E Preferred Stock Warrants - PLCOW
SAN MARCOS, Calif., July 8 /PRNewswire/ -- Play Co. Toys & Entertainment Corp. (''Play Co. Toys'') today announced its results for the fiscal year ended March 31, 1999. The Company posted net income of $140,868 in the year ended March 31, 1999 compared to a loss of $2,054,470 in the prior year. This represented an improvement of $2,195,338.
Play Co. Toys posted sales of $34,371,230 for the March 1999 year, an $11,802,703, or 52.3%, increase over its prior year sales of $22,568,527. Approximately $7.6 million of this sales growth came from new stores and the remaining $4.0 million came from a 21.3% increase in same store sales.
This sales increase coupled with a 3.7 point gross margin improvement, resulted in a gross profit increase of $5,901,518, or 66.5%, to $14,780,446 in the recently completed year from $8,878,928 in the year ended March 1998.
Richard Brady, President of the Company stated, ''We are very pleased with the results, which represent a turnaround for the Company and a return to profitability. These results could not have happened without the dedication and hard work of our employees and the support of our vendors. We are most pleased with the continued improvement in our gross margin, which is the result of the ongoing implementation of our business plan to move the Company into the educational and specialty toy business.''
The final, audited results will be reported in the Company's Form 10-KSB, which the Company expects to file next week.
Play Co. Toys is a toy retailer with 26 stores located in six states. The Company operates under the Play Co. Toys, Toys International and Toy Co. tradenames. Play Co. Toys specializes in offering educational, specialty, collectible, and traditional toys.
Statements contained in this press release which are not historical facts may be considered forward looking information with respect to plans, projections, or future performance of Play Co. Toys as defined under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those projected.
PLAY CO. TOYS & ENTERTAINMENT CORP.
(A SUBSIDIARY OF UNITED TEXTILES & TOYS CORP.)
Fiscal Year Ended March 31,
1999 1998
Net sales $34,371,230 $22,568,527
Cost of sales 19,590,784 13,689,599
Gross profit 14,780,446 8,878,928
Gross margin 43.0% 39.3%
Operating expenses
(excluding depreciation
and amortization) 12,686,035 9,448,148
Earnings (loss) before interest,
taxes, depreciation and
amortization (EBITDA) 2,094,411 (569,220)
Depreciation and amortization 986,342 671,282
Operating profit (loss) 1,108,069 (1,240,502)
Interest expense:
Interest and finance charges 796,202 525,323
Amortization of debt issuance costs 168,849 288,645
Total interest expense 965,051 813,968
Net income (loss) before income taxes 143,018 (2,054,470)
Provision for income taxes 2,150 --
Net income (loss) $140,868 $(2,054,470)
Income (loss) per common share
before non-cash dividend effect $0.03 $(0.50)
Weighted average number of common shares
and share equivalents outstanding 4,590,642 4,098,971
Calculation of Diluted Income (Loss) Per Share:
Net income (loss) $140,868 $(2,054,470)
Effect of non-cash dividends
on preferred stock (1,707,725) (1,473,806)
Net income (loss) applicable to common shares $(1,566,857) $(3,528,276)
Diluted income (loss) per common share
and share equivalents $(0.34) $(0.86)
Weighted average number of common shares
and share equivalents outstanding
- basic and diluted 4,590,642 4,098,971
PLAY CO. TOYS & ENTERTAINMENT CORP.
(A SUBSIDIARY OF UNITED TEXTILES & TOYS CORP.)
CONDENSED BALANCE SHEET
ASSETS
(unaudited) (audited)
March 31, 1999 March 31, 1998
Cash $125,967 $648,986
Accounts receivable 98,276 78,594
Merchandise inventories 11,506,284 7,872,804
Deposits and other assets 4,071,690 2,757,117
Property and Equipment, net 5,348,175 2,782,386
$21,150,392 $14,139,887
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, 1999 March 31, 1998
Accounts payable $5,611,442 $3,505,230
Accrued expenses and other liabilities 595,008 726,601
Notes payable and capital leases 1,937,878 1,850,000
Borrowings under financing agreement 7,814,666 5,445,198
Deferred rent liability 126,769 110,351
Total liabilities 16,085,763 11,637,380
Stockholders' equity
Series E preferred stock 5,682,101 3,974,376
Common stock 55,035 41,035
Additional paid-in-capital 15,335,172 12,927,918
Accumulated deficit (16,007,679) (14,440,822)
Total stockholders' equity 5,064,629 2,502,507
$21,150,392 $14,139,887
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