EXHIBIT 99.1
FOR: PLAY-BY-PLAY TOYS & NOVELTIES, INC.
CONTACT: TOMAS DURAN
CHIEF EXECUTIVE OFFICER
PLAY-BY-PLAY TOYS & NOVELTIES, INC.
FOR IMMEDIATE RELEASE (210) 829-4666
PLAY-BY-PLAY TOYS & NOVELTIES, INC.
RETAINS CONSULTANTS TO ASSIST WITH FINANCING ARRANGEMENTS
--ANNOUNCES ADDITIONAL MANAGEMENT APPOINTMENTS--
--RECEIVES NOTICE OF TERMINATION ON CERTAIN LICENSING AGREEMENTS
WITH WARNER BROS. CONSUMER PRODUCTS--
--ANNOUNCES SALE OF FUN SERVICES FRANCHISE BUSINESS--
SAN ANTONIO, TX, AUGUST 31, 2001-- PLAY-BY-PLAY TOYS & NOVELTIES, INC. (OTCBB:
PBYP) is pleased to announce that it has engaged SAMCO Resolution (Samco), a
division of Service Asset Management Company, as a consultant to the Chairman,
Tomas Duran, to assist with financing arrangements. William B. Hudson, Samco's
primary consultant for the Company, began his career with Chase Manhattan Bank
in the Global Credit Department in New York City. He returned to Texas and held
various positions including President of Alamo National Bank in San Antonio,
Senior Vice President of Mercantile Texas Corporation and Senior Vice President
of First Interstate Bank of Texas. He left the commercial banking business to
engage in various entrepreneurial pursuits. Before joining Samco, he was
instrumental in starting several businesses.
Also, The Hyslop Group, L.L.C., has been retained to assist with the
responsibilities of Chief Financial Officer, until a new Chief Financial Officer
is appointed. The position of Chief Financial Officer was recently vacated by
Joe M. Guerra who resigned effective July 31, 2001. The Hyslop Group acts in
partnership with management in the areas of corporate finance, accounting,
strategic policy, general business planning, asset management and financial
controls. The Company's principal consultant at the Hyslop Group is James R.
Hyslop, the consulting firm's founder and principal. Prior to forming The Hyslop
Group in 1994, Mr. Hyslop was Senior Vice President and Chief Financial Officer
for Swearingen Aircraft, Inc. from 1992 to 1994. Before that, Mr. Hyslop served
in various financial roles up through Senior Vice President, Finance and
Treasurer for Tesoro Petroleum Corporation from 1977 to 1992.
Juanita Lozano, in addition to her position as Controller, has been appointed to
assist Tomas Duran and Samco in the Company's restructuring and financing
efforts. Ms. Lozano joined the Company in March 1995 as the Financial Reporting
Manager and served briefly as interim Chief Financial Officer from July 1996 to
January 1997. Ms. Lozano returned to her position as the Financial Reporting
Manager in January 1997 and was promoted to Controller in February 1999. Prior
to joining Play-By-Play, Ms. Lozano was employed by Datapoint Corporation as
Financial Analyst, where she coordinated the Marketing Division budget. Ms.
Lozano is a Certified Public Accountant and received a BBA in Accounting, cum
laude, from St. Mary's University in San Antonio, Texas.
Richard De La Llana, Executive Vice President for Latin America, has been
appointed to act as President and Managing Director of the Puerto Rico office
replacing Mr. Manuel Fernandez Barroso who resigned his position as President of
Caribe Sales & Marketing effective August 2, 2001. Mr. De La Llana joined Caribe
Sales & Marketing in 1980 and served in various capacities culminating in
Executive Vice President for Latin America at the time the Company purchased
Caribe in March 1999. Mr. De La Llana was transferred to Miami in November 1999
to run the Company's Miami offices until their closure in November 2000, at
which time he moved to the San Antonio office. Mr. De La Llana is a 20-year
veteran in the Puerto Rican and Latin American retail sales markets where he has
spent over 15 years traveling to mainland China, Hong Kong and Taiwan to source
new vendors and to develop and market new products. Mr. De La Llana is a
graduate of Sacred Heart University in San Juan, Puerto Rico with a degree in
business administration and marketing.
The Company also announced that it has reduced labor costs by approximately
$900,000 domestically, as well as an approximate $3.7 million reduction in other
operating costs from June 2000 through June 2001. In addition, the Company's
China and Hong Kong offices were closed on July 31, 2001 in further efforts to
achieve cost savings.
Warner Bros. Consumer Products ("Warner Bros.") has issued "Notice of
Termination" for several entertainment character licensing agreements due to
non-payment by the Company of scheduled royalties due. One of the notices of
termination applies to the Looney Tunes' United States' mass market retail
distribution entertainment character licensing agreement. Associated with this
licensing agreement are certain voice contracts, which apply to characters
animated with licensed voices. Also included in the notices of termination are
the licensing rights for Looney Tunes and other characters for distribution in
Latin America and Canada.
Finally, on August 24, 2001, the Company completed the sale of its Fun Services
Franchise business to Giftco, Inc. of Chicago, Illinois.
Play-By-Play Toys & Novelties, Inc. designs, develops, markets and distributes a
broad line of quality stuffed toys, novelties and consumer electronics based on
its licenses for popular children's entertainment characters, professional
sports team logos and corporate trademarks. The Company also designs, develops
and distributes electronic toys and non-licensed stuffed toys, and markets and
distributes a broad line of non-licensed novelty items. Play-By-Play has license
agreements with major corporations engaged in the children's entertainment
character business.
Except for the historical information contained herein, the matters discussed in
this release are forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially, including, without
limitation, risks associated with the Company's liquidity and capital resources,
relationships with licensors, competitive and economic factors, price changes by
competitors, ability to manage growth, ability to source products, international
trade relations, management of quarter to quarter results, increase in costs of
raw materials, timing of technological advances by the Company and its
competitors, lack of acceptance by consumers of new products, and the other
factors discussed in the "Risk Factors" section of the Company's Form 10-K dated
July 31, 2000. Updated information will be periodically provided by the Company
as required by the Securities Exchange Act of 1934.