Intervisual Books Reports First-Quarter Results
Business Wire - May 14, 1998 20:57
%INTERVISUAL-BOOKS IVBK EMAK %CALIFORNIA %PUBLISHING %EARNINGS V%BW P%BW
SANTA MONICA, Calif.--(BUSINESS WIRE)--May 14, 1998--Intervisual Books Inc. (IBI) (Nasdaq:IVBK) Thursday reported a loss of $463,326, or $.09 per share on a diluted basis, on net sales of $1,310,069 for the quarter ended March 31, 1998.
This compares with a net loss of $413,083, or $.08 per share on a diluted basis, on net sales of $2,096,285 for the same period of 1997.
Norm Sheinman, IBI president and COO, said: "For over 20 years, IBI has created and developed books for major publishers worldwide. Since we are making a major effort to self-publish our own books this year, it is understandable that the first-quarter sales were weak.
"Traditionally, publishing sales during the last six months of the year represent 60-70 percent of the annual total. It is encouraging to note that we already have received orders to ship later this year which exceed the total self-publishing sales achieved during 1997.
"The first-quarter shortfall was also influenced by the economic recession in Southeast Asia. First-quarter sales to Japan and Hong Kong were down approximately $425,000 from the first quarter of 1997. Also, since all IBI sales are in U.S. dollars, the growing strength of the U.S. dollar has increased the cost of IBI's books to major European publishers by as much as 10 percent during the past year.
"However, since over 60 percent of IBI's books are printed and assembled by Asian companies, we are now benefiting from reduced manufacturing prices. This has now helped make it possible to offer incentive discounts on selected book titles to accelerate the sale of new and reprint books to many of our major publishers."
Sheinman also said, "We have entered into a cross-licensing agreement with Warner Bros. Worldwide Publishing to produce interactive Looney Tunes books featuring Bugs Bunny, Daffy Duck, Sylvester, Wiley Coyote and other characters for sale to international publishers. We expect the first shipments of the Looney Tunes books during the fourth quarter of 1998."
Sheinman further stated, "On March 17, 1998, IBI signed a multiyear agreement with Equity Marketing Inc. (Nasdaq:EMAK), the result of which is expected to impact sales during the last quarter of 1998.
"Equity is a leading producer of promotional products for such major international companies as Burger King, Shell Oil Co., Coca-Cola, etc. The Equity Marketing agreement reinforces our efforts to activate our advertising-promotion business which has been a major source of revenue in the past."
Waldo Hunt, chairman and CEO, added, "To help achieve profitability in 1998, a plan has been activated with the objective of reducing operational and administrative overhead through the balance of the year."
Intervisual is the world's leading creator and producer of interactive pop-up and novelty books for children and adults.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward- looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive and other factors, including, among other things, the size and timing of customer orders, changes in laws, new or increased competition, delays in new products, production problems, changes in market demand, market acceptance of new products, seasonality in product purchases, changes in foreign exchange rates and others. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information wi!
th respect to these and other factors which could materially affect the company and its operations are included in the company's filings with the Securities and Exchange Commission and are incorporated herein.
INTERVISUAL BOOKS INC.
Statements of Operations
Quarter Ended March 31,
1998 1997
Net sales $ 1,157,783 $ 2,088,793
Rights income 152,286 7,492
Total sales 1,310,069 2,096,285
Cost of sales 890,828 1,664,610
Gross profit 419,241 431,675
Selling, general and
administrative expenses 1,077,242 1,076,298
Interest income, net 13,174 18,476
Loss before income taxes (644,827) (626,147)
Income tax benefit (181,501) (213,064)
Net loss $ (463,326) $ (413,083)
Loss per share:
Basic $ (0.09) $ (0.08)
Diluted $ (0.09) $ (0.08)
Weighted average number
of shares and equivalents
outstanding:
Basic 5,050,248 5,032,798
Diluted 5,050,248 5,032,798
BALANCE SHEET HIGHLIGHTS
March 31, Dec. 31,
1998 1997
Cash and short-term investments $ 1,118,237 $ 2,382,714
Total current assets 6,237,939 9,799,169
Total assets 10,413,188 13,725,574
Total current liabilities 3,555,633 6,451,463
Total liabilities 3,716,589 6,612,419
Stockholders' equity 6,696,599 7,113,155
CONTACT: Intervisual Books Inc., Santa Monica
Waldo H. Hunt, 310/396-8708
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