Check this potential big mover out Joe. Any other day and we would have been soaring IMO. Keep in mind that they are introducing their B2B website on Friday. Just a matter of time with this one:
MIDDLETOWN, N.J.--(BUSINESS WIRE)--Dec. 15, 1999--Planet Entertainment Corp. (OTCBB: PNEC), a world wide provider of front-line music, video, DVD and proprietary compilation CD's today announced its results for the fiscal year ending August 31, 1999.
For fiscal 1999, net revenues increased 25% from approximately $35,152,000 for fiscal 1998 to $43,791,000 for fiscal 1999. The Company had net income of $278,462 for FYE 1999 compared to a net loss of ($645,464) for 1998. Due to the Company's obligation to pay a preferred dividend of $353,199 earnings per share allocable to common shares were reduced by $353,199 resulting in a loss of (.01) per share as compared to a loss of (.37) per share for FY 1998 ended August 31, 1998. During 1999 the Company increased its revolving credit agreement with Congress Financial from $6,000,000 to $8,500,000 with an additional $1,500,000 line for equipment purchases.
The Company stated, "We are very pleased with the progress that we achieved during FYE 1999". In addition to record sales during FYE 1999 the Company reinvested approximately $1,000,000 on capital assets at its wholly owned subsidiary Northeast One Stop (NEOS). Specifically, the Company upgraded its mainframe inventory and financial software package, replaced the majority of its computer hardware with new LAN (Local Area Network), and upgraded NEOS's warehouse carousel pick to light automation system, which allows the Company to increase volume and carry additional SKUs (Stock-Keeping Units). A new software platform, the NxTrend "Trend" system software package was installed, allowing NEOS to simplify and expedite operations, improve productivity, and integrate the Internet into daily operations. The new systems allow the Company to seek additional revenue through larger mass merchants with its upgraded EDI (Electronic Data Interchange) and ASN (Advanced Shipping Notice) capabilities. The Company believes that these new systems also achieve Year 2000 compliance.
During FYE 1999 NEOS began servicing several Internet retailers such as Amazon.com (NASDAQ: AMZN), EveryCD.com, Tower Mailorder, Internet Shopping Network (ISN), and CDUniverse (OTCBB: EUNI). With new systems in place NEOS plans to concentrate on internet fulfillment which is the fastest growing segment of the industry.
Planets wholesale website ( www.neoneb2b.com) is devoted to NEOS customers. The Company plans to open the site during December 1999. The site is meant as an order entry tool for wholesale business customers and affiliated Internet based customers. At the heart of the site is a MUZE database a searchable database, a powerful search engine tool that quickly returns information on a massive catalog of Pop, Rock, Jazz, Country, and all other genres of music. The database contains hundreds of thousands of artist names, album titles, millions of song titles as well as MUZE album art. The database also includes a full line of DVD and music videos.
The NEOS b2b site is designed with the customer in mind. Flexible "fuzzy logic" searches allow users to input partial, or even incorrect information and still get their desired result. Price information and purchase options are listed with search results, making ordering product simple and quick. A search engine based on NEOS's own accessory database features the same functionality as the main search engine allowing customers to search for accessories (headphones, recordable CDs, blank video/audio tapes, and others) by manufacturer, product category, or item.
In early 1999, NEOS expanded its SKU base to include a full line of DVD product. While sales of this product line are not fully maximized, industry trades are reporting hardware sales for this format in numbers well beyond all previous projections and it is expected that sales to consumers will follow. We expect 2000 to be a breakthrough year for DVD sales and believe that we will participate in that growth.
NEOS is presently negotiating a lease for the first quarter of calendar year 2000, which will increase NEOS's corporate headquarters/warehouse from the current 41,000 square feet to approximately 88,000 square feet. The larger warehouse space will allow us to further increase our SKU count from approximately 140,000 to more than 200,000, which should make us more attractive to customers.
As a full line entertainment wholesaler, with new systems in place, the Company will concentrate on specific target groups of potential new customers including large mass merchants, and export customers. In addition to music and video retailers, the Company may market music and video products to a variety of stores, including those offering book and gift items. Additionally, NEOS has plans during the year 2000 to open two additional satellite sales offices. The Company currently has sales offices in New York, Vermont, Pennsylvania, Maryland, Michigan and Florida and the distribution facility in Latham, N.Y. The Company currently employs over 120 people.
Special Note Regarding Forward Looking Statements: A number of statements contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. These risks and uncertainties include but are not limited to: the Company's vulnerability to rapid industry change, technical obsolescence, limited customer base and reliance on relatively a small number of its customers, the possible impact of competitive products and pricing, uncertainties in the duration of the life cycle of its products, manufacturing difficulties, dependence on key personnel, market acceptance, reliance on a limited number of outside vendors, potential difficulties, managing growth, the ability to perform on existing and future agreements, the availability of financing, and other risks all, or any of which may have a material adverse impact on the company, its business, business prospects, and financial condition.
CONTACT:
Planet Entertainment, Middletown, N.J.
Ivy Ball, 732/530-8819
pnec@aol.com
KEYWORD: NEW JERSEY
BW1044 DEC 15,1999
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