Exhibit 99.1
FOR: Home Products International, Inc.
APPROVED BY: James R. Tennant, Chairman & CEO
Home Products International, Inc.
FOR IMMEDIATE RELEASE (773) 890-1010
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CONTACT: Investor Relations:
James Winslow, Executive VP & CFO
Home Products International, Inc.
(773) 890-1010
HOME PRODUCTS INTERNATIONAL ANNOUNCES
FIRST QUARTER RESULTS
Sales drop and raw material cost increases lead to loss in quarter
Chicago, IL, April 28, 2003 - Home Products International, Inc. (Nasdaq
SmallCap: HOMZ), (the "Company"), a leader in the housewares industry, today
announced financial results for the first quarter of its 2003 fiscal year.
The Company reported a loss of $3.1 million, $(0.40) per share, for the
first quarter ended March 29, 2003 as compared to net earnings a year ago of
$1.4 million, $0.18 per share. Earnings were negatively impacted by increased
raw material costs and a decline in sales.
Sales in the quarter declined to $49.1 million from $51.0 million a year
ago. The sales decrease of 4% was due to a very soft retail sales environment.
The Company reported positive cash flow (which the Company defines as the net
change in cash and debt) during the first quarter of $9.4 million. Receivable
levels were reduced on seasonally lower sales. The Company continues to be in
compliance with all of its loan covenants and net availability at March 29, 2003
was $35 million.
Exhibit 99.1
HPI: Announces First Quarter Results Page 2
Commenting on the results, James R. Tennant, chairman and chief executive
officer, stated, "The rising cost of plastic resin, our primary raw material,
had a significant impact on the first quarter's results. Resin costs were up
$.07 per pound over last year due to constrained availability at the resin
producers. This caused cost increases of over $3 million as compared to last
year. Our sales, while disappointing, are in line with the reported sales trends
of the major discount retailers."
The Company's first quarter conference call will take place Tuesday, April 29,
2003, starting at 10:00 a.m. Eastern Time (9:00 a.m. CT, 8:00 a.m. MT, and 7:00
a.m. PT). Dial 1-800-930-1344 approximately 10 minutes prior to conference time.
A replay of the Company's first quarter conference call will be available from
1:00 p.m. Eastern Time April 29, 2003 through midnight Eastern Time May 5, 2003.
Dial 1-888-203-1112, then enter confirmation code 463686.
Home Products International, Inc. is an international consumer products company
specializing in the manufacture and marketing of quality diversified housewares
products. The Company sells its products to all the largest national retailers.
Some of the statements made in this press release are forward-looking and
concern the Company's future growth, product development, markets and
competitive position. While management makes its best efforts to be accurate in
making these forward-looking statements, any such statements are subject to
risks and uncertainties that could cause the Company's actual results to vary
materially. These include market risks such as increased competition for both
the Company and its end users and changes in retail distribution channels;
dependence on a few large customers; economic risks; financial risks such as
fluctuations in the price of raw materials, future liquidity and access to debt
and equity markets. Should one or more of these risks or uncertainties
materialize, actual results may vary materially from those anticipated, expected
or projected. The Company undertakes no obligation to update any such factors or
to announce the results of any revision to any of the forward-looking statements
contained herein to reflect future events or developments.
Exhibit 99.1
Home Products International, Inc.
Consolidated Balance Sheets
($ in thousands)
(Unaudited)
March 29, December 28,
2003 2002
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Cash $ 13,358 $ 3,974
Accounts receivable, net 24,456 48,937
Inventories 27,954 25,357
Deferred income taxes 2,559 2,559
Prepaid expenses and other current assets 2,022 1,879
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Current assets 70,349 82,706
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Fixed assets, net 36,205 37,189
Goodwill, net 73,752 73,752
Other intangibles, net 985 1,111
Deferred income taxes 5,207 5,207
Other non-current assets 3,403 3,553
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Total assets $189,901 $203,518
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Accounts payable $ 18,477 $ 22,986
Accrued liabilities 22,769 28,993
Current maturities of long term debt 158 158
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Current liabilities 41,404 52,137
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Long term debt 129,598 129,621
Other non-current liabilities 4,493 4,293
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Long term debt and other non-current liabilities 134,091 133,914
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Stockholders' equity 14,406 17,467
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Total liabilities and stockholders' equity $189,901 $203,518
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Exhibit 99.1
Home Products International, Inc.
Consolidated Statement of Operations
($ in thousands, except share and per share amounts)
(unaudited)
Thirteen-weeks Thirteen-weeks
ended ended
March 29, 2003 March 30, 2002
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Net sales $ 49,129 100.0% $ 51,007 100.0%
Cost of goods sold 40,459 82.4% 38,234 75.0%
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Gross profit 8,670 17.6% 12,773 25.0%
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Selling, general and administrative expenses 8,232 16.8% 7,626 15.0%
Amortization of intangible assets 126 0.3% 130 0.3%
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Operating profit 312 0.5% 5,017 9.7%
Interest (expense) (3,477) (7.1%) (3,484) (6.8%)
Other income 43 0.1% 21 0.0%
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Earnings (loss) before income taxes (3,122) (6.5%) 1,554 2.9%
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Income tax (expense) (24) (0.0%) (124) (0.2%)
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Net earnings (loss) $ (3,146) (6.5%) $ 1,430 2.7%
=========================== ==========================
Net earnings (loss) per share:
Basic $(0.40) $0.19
Diluted $(0.40) $0.18
Number of weighted average common
shares outstanding :
Basic 7,898,829 7,702,229
Diluted 7,898,829 8,075,198