THE OHIO ART COMPANY Contact: RON COMO & ASSOCIATES, INC.
One Toy Street 330 East 46th St., Suite 7C
P.O. Box 111 New York, NY 10017
Bryan, OH 43506 Tel: (212) 557-4140
Jerry D. Kneipp
Chief Financial Officer
Tel: (419) 636-3141
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Immediate Release
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THE OHIO ART COMPANY REPORTS OPERATING RESULTS FOR THE
FOURTH QUARTER AND YEAR ENDED JANUARY 31, 2000
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BRYAN, Ohio--(BUSINESS WIRE)--April 7, 2000--The Ohio Art Company, (ASE:OAR),
today announced operating results for the fourth quarter and for the year ended
January 31, 2000.
Net sales increased approximately 14% from $45,937,000 for the year ended
January 31, 1999 to $52,539,000 for the year ended January 31, 2000. Net sales
increased approximately 14% from $10,109,000 for the quarter ended January 31,
1999 to $11,497,000 for the quarter ended January 31, 2000. Domestic toy sales
were up over the previous year based on the continued success of Betty
Spaghetty(R) fashion doll and the Etch A Sketch(R) drawing toy whose 40-year
popularity was bolstered by the release of the movie Toy Story II(R) during the
holiday season.
International toy sales were down about 11% due primarily to market softness in
the Far East and South America. The European market segment continued to report
volume increases based on the strength of the Betty Spaghetty(R) fashion doll.
Diversified Product sales excluding material purchased and resold at cost to a
major customer, were slightly ahead of the previous fiscal year but, divisional
operating results were hampered by increased overheads and quality related
issues.
Net income for the fourth quarter ended January 31, 2000 amounted to $289,000 or
$0.33 per share on 865,000 average shares outstanding, compared to a net loss of
$2,183,000 or $2.51 per share, on 867,000 average shares outstanding during the
quarter ended January 31, 1999.
Net income for the year ended January 31, 2000 amounted to $431,000 or $0.50 per
share on 865,000 average shares outstanding, versus a net loss of $1,827,000 or
$2.10 per share, on 869,000 average shares outstanding during the year ended
January 31, 1999.
In the fourth quarter, previously reported results of operations for the first
three quarters of fiscal 2000 were re-stated, as a result of inventory
adjustments culminating in a cumulative reduction of net income of $1,667,000 or
$1.92 per share.
In early April, the company completed the refinancing of its working capital
line with the result that the company is now in compliance with its loan
covenants and its bank debt has been classified as long-term debt.
Established in 1908 and headquartered in Bryan, Ohio, The Ohio Art Company
manufactures and markets the world famous Etch A Sketch(R) drawing toy, as well
as a complete line of toys that enhance and provide development, creativity and
positive reinforcement. Product lines include "Making Creativity Fun" activity
toys, such as Etch A Sketch(R), Glitter Writer(R), Zooper(TM) Sounds Etch A
Sketch(R), Betty Spaghetty(R) doll and Water T-Ball(TM). In addition, the
Company's Diversified Products Division manufactures specialty plastic and
lithographed products for the automotive, photographic, food container and
specialty premium markets.
THE OHIO ART COMPANY AND SUBSIDIARIES
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(Thousands Except Per Share Data)
Year Ended Three Months Ended
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1/31/00 1/31/99 1/31/00 1/31/99
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Net Sales $52,539 $45,937 $11,497 $10,109
Income (Loss) Before Taxes 764 (1,697) 289 (2,053)
Provision for Income Taxes 333 130 0 130
Net Income (Loss) 431 (1,827) 289 (2,183)
Net Income (Loss) Per Share 0.50 (2.10) 0.33 (2.51)
Average Shares Outstanding 865 869 865 867