Exhibit 99
The Middleton Doll Company Reports First Quarter Results
PEWAUKEE, Wis.--(BUSINESS WIRE)--May 15, 2006--The Middleton Doll
Company (OTCBB:DOLL) today reported a consolidated net loss of
$1,131,583 or $0.30 per diluted share for the first quarter ended
March 31, 2006. The consumer products segment reported a loss of
$1,003,923 and the financial services segment reported a loss of
$127,660.
"We made good progress in reducing operating expenses in the
consumer products segment in the first quarter, with operating
expenses for the segment down 12% from the same period a year ago. The
decrease reflects reduced lease expense and cost savings achieved
through workforce reductions during 2005. Inventory was reduced by
$785,000 in the first quarter of 2006 compared to the fourth quarter
of 2005 as part of our ongoing emphasis on cost containment. Sales in
this segment continue to be affected by the decline in consumer demand
for collectible dolls. Our new management team is working to develop
new marketing, product development and business relationship
strategies, however, some of these plans will take some time to
execute," said Salvatore L. Bando, president and chief executive
officer of The Middleton Doll Company.
Bando said interest on loans and rental income continued to
decline in the financial services segment as part of the ongoing
liquidation of the segment. "In April 2006, we listed six properties
for sale with a commercial real estate broker and accepted offers on
two additional buildings. The proceeds from the sale of the segment's
assets and loan participations will continue to be applied to
repayment of debt," said Bando.
The Middleton Doll Company currently operates in two segments,
consumer products and financial services. The company's consumer
products segment is comprised of Lee Middleton Original Dolls, Inc., a
designer and marketer of lifelike collectible and play dolls, and
License Products, Inc., a designer and marketer of clocks and home
decor products that are sold to major national retailers. The
company's financial services segment is comprised primarily of the
lending and real estate leasing business of its former subsidiary,
Bando McGlocklin Small Business Lending Corporation, now owned by Lee
Middleton Original Dolls.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements, which may be based upon beliefs,
expectations and assumptions of the company's management and on
information currently available to management, are generally
identifiable by the use of words such as "believe," "expect,"
"anticipate," "plan," "intend," "estimate," "may," "will," "would,"
"could," "should," or other similar expressions. Additionally, all
statements in this document, including forward-looking statements,
speak only as of the date they are made, and the company undertakes no
obligation to update any statement in light of new information or
future events. A number of factors, many of which are beyond the
ability of the company to control or predict, could cause actual
results to differ materially from those in its forward-looking
statements. These factors include: the inability of InvestorsBank to
fulfill its obligations under the asset purchase agreement; the
default in payment of loans anticipated to mature and be paid prior to
June 30, 2006; the inability of debtors to refinance loans expected to
be refinanced prior to June 30, 2006; the proceeds to be generated
upon the sale of leased real properties, which depends upon a variety
of factors, such as competition, real estate conditions, interest
rates and availability of tenants.
The Middleton Doll Company news releases
are available on-line 24 hours a day at:
http://www.middletondollcompany.com
The Middleton Doll Company
(OTCBB:DOLL)
(Unaudited)
Three months ended
March 31
-------------------------
2006 2005
------------ ------------
STATEMENTS OF OPERATIONS BY SEGMENT
- -----------------------------------
Consumer Products:
Net sales $2,579,050 $2,896,764
Cost of sales 1,934,756 1,797,988
------------ ------------
Gross profit 644,294 1,098,776
Other expenses (income):
Operating expenses 1,689,702 1,923,552
Interest expense to parent - 214,181
Other expense (income) (41,485) (38,778)
------------ ------------
Total other expenses 1,648,217 2,098,955
Net income (loss) $(1,003,923) $(1,000,179)
============ ============
Financial Services:
Net rental/interest income:
Interest on loans $215,045 $459,235
Rental income 308,662 534,849
Interest income from subsidiary - 214,181
Interest expense (239,880) (454,884)
Loss on early extinguishment of
indebtedness (289,034) -
------------ ------------
Total net rental/interest income (5,207) 753,381
Other income:
Other income 8,596 12,428
Gain on sale of property 459,374 769,424
------------ ------------
Total other income 467,970 781,852
Other expenses:
Depreciation expense on leased properties 57,458 101,758
Other operating expenses 306,690 353,773
Income tax expense (benefit) - 206,203
------------ ------------
Total other expenses 364,148 661,734
Preferred stock dividends expense 226,275 226,275
------------ ------------
Net income (loss) $(127,660) $647,224
============ ============
STATEMENTS OF OPERATIONS - COMBINED
- -----------------------------------
Net income (loss):
Consumer Products $(1,003,923) $(1,000,179)
Financial Services (127,660) 647,224
------------ ------------
Net income (loss) applicable to common
shareholders $(1,131,583) $(352,955)
Income (loss) Earnings Per Share - Basic $(0.30) $(0.09)
Income (loss) Earnings Per Share - Diluted $(0.30) $(0.09)
Average shares outstanding - Basic 3,727,589 3,727,589
Average shares outstanding - Diluted 3,727,589 3,727,589
CONTACT: The Middleton Doll Company
Craig Bald, 262-369-8163