Exhibit 99
The Middleton Doll Company Reports Third Quarter Results
HARTLAND, Wis.--(BUSINESS WIRE)--Nov. 9, 2006--The Middleton Doll Company
(OTCBB:DOLL) today reported results for the third quarter and nine months ended
September 30, 2006.
Third Quarter Highlights
-- The consolidated net loss for the third quarter of 2006 was $922,606
or $0.25 per diluted share, compared to a net loss of $237,952 or
$0.06 per diluted share for the third quarter of 2005.
-- The consumer products segment reported a net loss of $705,859 for the
third quarter of 2006.
-- The financial services segment reported a net loss of $216,747 for the
third quarter of 2006.
Year-to-Date Highlights
-- For the first three quarters of 2006, the consolidated net loss was
$2,384,847 or $0.64 per diluted share, compared to a net loss of
$1,758,188 or $0.47 per diluted share for the first three quarters of
2005.
-- The consumer products segment reported a net loss of $2,376,051 for
the first three quarters of 2006.
-- The financial services segment reported a net loss of $8,796 for the
first three quarters of 2006.
"The consumer products segment continues to be affected by the decline in
demand for collectible dolls. Our response to these market challenges is to
continue reducing expenses and inventory and to develop new products and
marketing strategies that better fit the changing preferences of today's
consumers," said Salvatore L. Bando, president and chief executive officer of
The Middleton Doll Company.
"The first shipment of our new line of PlayBabies went out in September.
The line appeals to young girls as they change and grow and offers a
high-quality product at a lower price-point than our limited-edition collectible
dolls. While the initial response appears to be favorable and we continue to
believe this new line has good potential, it is too early to predict its impact
on sales for the upcoming holiday season," said Ken Werner, president of
consumer products for The Middleton Doll Company.
The new 13-doll family of play dolls provides a playmate for each stage of
a young girl's early development, from newborn through age five. "The new
PlayBabies line is a key element in our 'crib to collector' strategy. The
PlayBabies family is designed for girls up to age five, our Newborn Nursery(R)
dolls are targeted for ages five through pre-teen and the well-known Artist
Studio collection(TM) of exceptional artist-designed collectible dolls appeal to
women of all ages who love dolls," said Werner.
"We are continuing to liquidate the financial services segment by
selling-off assets. We sold three properties during the third quarter. We closed
on another property in October and have accepted offers on two additional
properties," said Bando.
"Interest on loans and rental income continued to decline in the third
quarter as a result of our efforts to liquidate assets. In addition, we
established a $250,000 loan loss reserve in the third quarter against
outstanding non-accrual loans and recorded a $98,800 impairment provision on a
vacant property that was sold in October," added 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 Nine months ended
----------------------- --------------------------
September 30, September 30,
----------------------- --------------------------
2006 2005 2006 2005
----------- ----------- ------------- ------------
STATEMENTS OF
OPERATIONS BY
SEGMENT
- -------------------
Consumer Products:
Net sales $2,617,902 $3,731,521 $7,332,024 $9,294,300
Cost of sales 1,898,498 2,281,421 5,291,892 5,834,321
----------- ----------- ------------- ------------
Gross profit 719,404 1,450,100 2,040,132 3,459,979
----------- ----------- ------------- ------------
Other expenses
(income):
Operating
expenses 1,463,143 1,679,675 4,536,793 5,586,182
Interest expense
to Parent - 277,030 - 736,757
Other expense
(income) (37,880) (42,338) (120,610) (144,591)
----------- ----------- ------------- ------------
Total other
expenses 1,425,263 1,914,367 4,416,183 6,178,348
----------- ----------- ------------- ------------
Net loss $(705,859) $(464,267) $(2,376,051) $(2,718,369)
=========== =========== ============= ============
Financial Services:
Net rental/interest
income:
Interest on loans $32,203 $404,892 $308,593 $1,281,977
Rental income 142,502 449,266 671,140 1,480,354
Interest income
from subsidiary - 277,030 - 736,757
Interest expense (4,148) (445,257) (321,388) (1,328,311)
----------- ----------- ------------- ------------
Total net
rental/
interest
income 170,557 685,931 658,345 2,170,077
----------- ----------- ------------- ------------
Other income:
Other income 17,138 7,294 36,324 28,382
Gain on sale of
leased
properties 353,140 265,068 1,413,856 1,034,492
----------- ----------- ------------- ------------
Total other
income 370,278 272,362 1,450,180 1,062,874
----------- ----------- ------------- ------------
Other expenses:
Loss on early
extinguishment
of indebtedness - - 289,034 -
Provision for
impairment of
leased property 98,812 - 98,812 -
Provision for
losses on loans 250,000 - 250,000 -
Depreciation
expense 24,566 84,088 120,276 279,762
Management fee
expense - 77,496 45,139 184,653
Other operating
expenses 157,929 251,074 635,234 830,981
Income tax
expense - 93,045 - 299,248
----------- ----------- ------------- ------------
Total other
expenses 531,307 505,703 1,438,495 1,594,644
Preferred stock
dividends 226,275 226,275 678,826 678,826
----------- ----------- ------------- ------------
Net (loss) income $(216,747) $226,315 $(8,796) $960,181
=========== =========== ============= ============
STATEMENTS OF
OPERATIONS -
COMBINED
- -------------------
Net (loss) income:
Consumer Products $(705,859) $(464,267) $(2,376,051) $(2,718,369)
Financial
Services (216,747) 226,315 (8,796) 960,181
----------- ----------- ------------- ------------
Net (loss) income
available to
common
shareholders $(922,606) $(237,952) $(2,384,847) $(1,758,188)
(Loss) Earnings Per
Share - Basic and
Diluted $(0.25) $(0.06) $(0.64) $(0.47)
Average shares
outstanding -
Basic and Diluted 3,727,589 3,727,589 3,727,589 3,727,589
CONTACT: The Middleton Doll Company
Craig Bald, 262-369-8163