Play Co. Toys & Entertainment Corp. Announces 70% Net Income Increase For The Third Quarter Ended December 31, 1998
The Company Achieved Record Sales for the Third Quarter and Nine Month Period Ended December 31, 1998
OTC SYMBOLS: Common Stock - PLCO
Series E Preferred Stock - PLCOP
Series E Preferred Stock Warrants - PLCOW
SAN MARCOS, Calif., Feb. 4 /PRNewswire/ -- Play Co. Toys & Entertainment Corp. ("Play Co. Toys") (OTC Bulletin Board: PLCO) today announced record results for the nine-month period ended December 31, 1998. The Company posted sales of $27,171,662, a $9,403,629, or 52.9% increase over its comparable 1997 nine-month sales of $17,768,033.
Approximately $3.5 million of this sales growth came from a 25.4% increase in same store sales during the nine-month period. The remaining sales increase of approximately $5.9 million came from the Company's new stores. This sales increase coupled with a 2.7% gross margin improvement, resulted in a gross profit increase of $4,477,982, or 63.7%, from $7,027,959 in the nine-month period ended December 1997 to $11,505,941 in the nine-month period ended December 1998.
The Company posted a profit before interest, taxes, depreciation and amortization (EBITDA) of $2,359,935 in the nine-month period ended December 1998 compared to EBITDA of $254,771 in the nine-month period ended December 1997. This represented an EBITDA improvement of $2,105,164, or 826.3%.
Play Co. Toys' overall result for the nine-month period ended December 1998 was net income of $1,008,143, or $0.23 of basic income per share, compared to a loss of $(868,917), or $(0.21) per share, in the nine-month period ended December 1997. This represented an improvement of $1,877,060, or $0.44 of basic income per share. All of the earnings per share calculations for the nine-month period and for the quarter exclude the effect of a non-cash dividend relating to the Company's convertible preferred stock.
Richard Brady, President of the Company stated, "We are very pleased with these figures. Our net income for the nine-month period was on plan. Our new store format and our ongoing expansion into specialty, collectible and educational toys continues to fuel our ongoing growth in sales and our improving bottom line."
Play Co. Toys also announced its results for its third fiscal quarter ended December 31, 1998. Play Co. Toys posted sales of $14,715,952 for the December 1998 quarter, a $4,319,512, or 41.5% increase over its December 1997 sales of $10,396,440. Approximately $900,000 of this sales growth came from an 11.8% increase in same store sales during the quarter. The remaining sales increase of approximately $3.4 million came from the Company's new stores.
The Company posted a profit before interest, taxes, depreciation and amortization (EBITDA) of $2,118,501 in the December 1998 quarter compared to EBITDA of $1,298,234 in the December 1997 quarter. This represented an EBITDA improvement of $820,267. Play Co. Toys' overall result for the December 1998 quarter was net income of $1,498,634, or of basic income of $0.32 per share, compared to net income of $881,666, or of basic income of $0.21 per share, in the December 1997 quarter. This represented an improvement of $616,968, or $0.12 per share.
Richard Brady, President of the Company stated, "We are also pleased to announce that the Company has already signed leases for eight new stores locations, including the new Venetian Hotel and Casino in Las Vegas and Pier 39 in San Francisco, to be opened at various dates in 1999. Additional locations for 1999 are under review. The Company is now positioned to start a major expansion into the East Coast. Leases have already been signed to start this Eastward expansion. We expect to open our first international location in 2000."
Play Co. Toys is a toy retailer with 25 stores located in southern California, Arizona, Illinois, Michigan, Nevada and Texas. 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.)
CONDENSED BALANCE SHEETS
ASSETS
(unaudited)
December 31, 1998
Current
Cash $1,219,989
Accounts receivable 110,734
Merchandise inventories 10,824,770
Other current assets 1,736,769
Total current assets 13,892,262
Property and Equipment, net of accumulated
depreciation and amortization of $4,121,412 4,343,204
Deposits and other assets 2,385,027
$20,620,493
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31, 1998
Current
Accounts payable $5,218,239
Accrued expenses and other liabilities 781,371
Current portion of notes payable and
capital leases 405,965
Total current liabilities 6,405,575
Borrowings under financing agreement 7,754,215
Notes payable and capital leases,
net of current portion 620,030
Deferred rent liability 124,005
Stockholders' equity
Series E preferred stock, $1 par,
10,000,000 shares authorized;
5,871,403 shares outstanding 5,236,642
Common stock, $.01 par value,
40,000,000 shares authorized;
5,503,525 shares outstanding 55,035
Additional paid-in-capital 15,087,422
Accumulated deficit (14,662,431)
Total stockholders' equity 5,716,668
$20,620,493
PLAY CO. TOYS & ENTERTAINMENT CORP.
(A SUBSIDIARY OF UNITED TEXTILES & TOYS CORP.)
Three Months Ended Nine Months Ended
December 31, December 31,
1998 1997 1998 1997
Net sales $14,715,952 $10,396,440 $27,171,662 $17,768,033
Cost of sales 8,545,336 6,381,992 15,665,721 10,740,074
Gross profit 6,170,616 4,014,448 11,505,941 7,027,959
Gross margin 41.9% 38.6% 42.3% 39.6%
Operating expenses
(excluding depreciation
and amortization) 4,052,115 2,716,214 9,146,006 6,773,188
Earnings (loss) before
interest, taxes,
depreciation and
amortization
(EBITDA) 2,118,501 1,298,234 2,359,935 254,771
Depreciation and
amortization 324,975 161,982 707,186 440,035
Operating profit
(loss) 1,793,526 1,136,252 1,652,749 (185,264)
Interest expense:
Interest and finance
charges 221,860 165,933 517,172 415,445
Amortization of debt
issuance costs 73,032 88,653 127,434 268,208
Total interest
expense 294,892 254,586 644,606 683,653
Net income (loss) $1,498,634 $881,666 $1,008,143 $(868,917)
Basic income
(loss) per common
share before non-cash
dividend effect $0.32 $0.21 $0.23 $(0.21)
Weighted average number
of common shares
and share equivalents
outstanding - basic 4,666,562 4,103,519 4,291,883 4,096,974
Calculation of Diluted
Income (Loss) Per Share:
Net income
(loss) $1,498,634 $881,666 $1,008,143 $(868,917)
Effect of non-cash
dividends on
preferred stock 477,973 -- 1,229,752 1,200,000
Net income (loss)
applicable to
common shares $1,020,661 $881,666 $(221,609) $(2,068,917)
Diluted income (loss)
per common share
and share equivalents $0.03 $0.04 $(0.01) $(0.50)
Weighted average number
of common shares and
share equivalents
outstanding
- diluted 36,069,029 24,904,765 39,820,796 4,096,974
SOURCE Play Co. Toys & Entertainment Corp.
/CONTACT: Melissa Austin of Corporate Relations Group, Inc.,
800-333-4023, fax: 407-628-3611; or Sanjay Sabnani of Coffin Communications
Group, 818-789-0100, fax: 818-789-1152/
/Web site: playco.com
(PLCO) |
