Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: profit_guy who wrote (25537)	2/24/1999 1:12:00 AM
From: Jenna	Read Replies (2) \| Respond to of 120523

Racing Champions Reports Record Fourth Quarter and 1998 Year-End Results GLEN ELLYN, Ill.--(BUSINESS WIRE)--Feb. 23, 1999--Racing Champions Corporation (NASDAQ:RACN), today reported record sales and earnings for the fourth quarter and year ended December 31, 1998. Operating Results: Net sales for the fourth quarter of $34.5 million almost doubled net sales of $17.3 million for the same quarter in 1997 An improved gross margin of 52.9% versus 48.1% last year, and a significant reduction in operating expenses as a percentage of sales to 37.8% from 52.8%, produced operating income of $4.6 million compared with an operating loss of $1.4 million. Net income for the quarter was $2.3 million, or $0.14 per diluted share, a positive improvement of $3.4 million from the $1.1 million loss, or ($0.07) per diluted share, for last year's fourth quarter. For the twelve months ended December 31, 1998, net sales were $156.5 million, an 87% increase over fiscal 1997's net sales of $83.7 million. Gross margin improved to 54.7% from 53.9% for the year. This improvement coupled with a reduction in pro forma operating expenses as a percentage of sales, to 34.5% for fiscal 1998, from 35.4% in 1997, resulted in pro forma operating income for the year of $28.9 million, more than double last year's $13.3 million. Pro forma net income of $15.6 million, or $0.95 earnings per diluted share, was more than three times last year's net income from continuing operations of $4.5 million, and almost 4.5 times last year's net income of $3.5 million, or $0.24 earnings per diluted share. During the second quarter, Racing Champions successfully completed its acquisition of Wheels Sports Group, (renamed Racing Champions South, Inc.) which was accounted for as a pooling-of-interests. Accordingly, prior period financial results have been restated to reflect this accounting treatment. The Company's pro forma results for fiscal 1998 exclude one-time charges incurred during the acquisition of Wheels and assume that the acquisition occurred on January 1, 1998.