EXHIBIT 99.1
[LETTERHEAD OF THE FIRST YEARS INC.]
Contact: John Beals
Senior Vice President, Finance and Treasurer
(508) 588-1220
THE FIRST YEARS REPORTS QUARTERLY RESULTS AND ANNOUNCES DIVIDEND
-- Record Quarterly Sales; Net Income Increases by 12%;
Quarterly Dividend of $.06 --
AVON, Massachusetts, May 7, 2004 - The First Years Inc. (Nasdaq:KIDD), a leading
marketer of parenting products for infants and toddlers, today reported sales
and net income for the first quarter ended March 31, 2004.
Net sales for the quarter increased 10% to $37,133,250 versus $33,886,704 for
the first quarter of 2003. Net income for the quarter increased 12% to
$2,568,480 or $0.29 per diluted share compared with $2,291,958 or $0.28 per
diluted share a year ago based on diluted weighted average shares outstanding of
8,720,921 and 8,317,042, respectively.
"I am pleased to report that increased demand for The First Years brand products
in U.S., Canadian, and European markets contributed to record quarterly sales,"
said Ronald J. Sidman, President and Chief Executive Officer of The First Years.
Separately, the Company announced its quarterly dividend of $0.06 per share on
the common stock of the Company.
The dividend is payable Tuesday, June 15, 2004 to shareholders of record as of
May 28, 2004.
About The First Years
The First Years Inc. is a leading international marketer of feeding, soothing,
play and care products for infants and toddlers. The Company's distinctive
brands include: "The First Years," licenses from the Walt Disney Company and
"Sesame Street(R)," licensed from the Sesame Workshop.
Included in this release are certain "forward-looking" statements, involving
risks and uncertainties, which are covered by the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, including statements regarding
the Company's financial performance. Such statements are based on management's
current expectations and are subject to certain factors, risks and uncertainties
that may cause actual results, events and performance to differ materially from
those referred to or implied by such statements. In addition, actual future
results may differ materially from those anticipated, depending on a variety of
factors, which include, but are not limited to, sales of The First Years(R)
brand, trends in sales of The First Years brand and licensed products, continued
success of new Disney character refreshed graphics, continued maintenance of
favorable license arrangements, success of market research identifying new
product opportunities, successful introduction of new products, continued
product innovation, the success of new enhancements to the Company's brand
image, growth in domestic and international sales, ability to attract and retain
key personnel, sales and earnings results, and general economic conditions
affecting consumer spending, including uncertainties relating to global
political conditions, such as terrorism and the conflict in Iraq. Information
with respect to important factors that should be considered is contained in the
Company's Annual Report on Form 10-K as filed with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. The Company
does not intend to update any of the forward-looking statements after the date
of this release to conform these statements to actual results or to changes in
its expectations.
THE FIRST YEARS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, December 31,
2004 2003
---- ----
ASSETS
Current assets:
Cash and cash equivalents $25,742,856 $24,730,265
Accounts receivable, net 25,403,231 25,891,057
Inventories 19,715,939 20,298,164
Prepaid expenses and other assets 2,164,470 801,566
Deferred tax assets 2,157,200 2,157,200
----------- -----------
Total current assets 75,183,696 73,878,252
----------- -----------
Property, plant, and equipment, net 10,565,706 10,786,503
----------- -----------
Total Assets $85,749,402 $84,664,755
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $15,874,978 $14,788,716
Accrued royalty expenses 1,195,132 1,431,051
Accrued selling expenses 1,250,924 3,107,430
----------- -----------
Total current liabilities 18,321,034 19,327,197
----------- -----------
Deferred tax liability 1,391,900 1,391,900
----------- -----------
Stockholders' equity 66,036,468 63,945,658
----------- -----------
Total Liabilities and Stockholders' Equity $85,749,402 $84,664,755
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THE FIRST YEARS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 2004 AND 2003
2004 2003
---- ----
Net Sales $37,133,250 $33,886,704
Cost of Products Sold 23,617,740 21,672,950
----------- -----------
Gross Profit 13,515,510 12,213,754
Selling, General, and
Administrative Expenses 9,389,651 8,381,837
----------- -----------
Operating Income 4,125,859 3,831,917
Interest Income 50,521 52,741
----------- -----------
Income before Income Taxes 4,176,380 3,884,658
Provision for Income Taxes 1,607,900 1,592,700
----------- -----------
Net Income $ 2,568,480 $ 2,291,958
=========== ===========
Basic Earnings Per Share $ 0.31 $ 0.28
=========== ===========
Basic Weighted Average
Number of Shares Outstanding 8,337,909 8,219,370
=========== ===========
Diluted Earnings Per Share $ 0.29 $ 0.28
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Diluted Weighted Average
Number of Shares Outstanding 8,720,921 8,317,042
=========== ===========