Action Performance Reports Second Quarter 2005 Results
Action Performance Companies, Inc. (NYSE:ATN), the leader in the design, marketing, promotion,
and distribution of licensed motorsports merchandise, today announced financial results for the
fiscal second quarter ended March 31, 2005. For the quarter, the company reported revenues of
$75.3 million compared with $83.6 million in the prior year, a decrease of 9.9%. The decrease
in revenue in the quarter resulted primarily from lower sales of die-cast products to mass
merchandisers and, to a lesser extent, lower apparel sales to wholesale channels.
The Company reported a net loss of $2.9 million, or $0.16 per share, compared with net income of
$1.3 million, or $0.07 in second quarter of 2004.
For the six months ended March 31, 2005, the company reported revenues of $151.4 million, compared
with revenues of $154.8 million in the prior year, a decrease of 2.2%. The company reported a net
loss of $6.5 million, or $0.35 per share, compared with a net loss of $0.4 million, or $0.02 per share
in the prior year.
Fred Wagenhals, Chief Executive Officer, commented "We continue to refine the restructuring plan
that was announced last quarter. Improving our distribution model is the cornerstone of that plan. After
an exhaustive review of our options, management concluded that Action´s existing Concord, North Carolina
facility provided the best combination of cost, access to the customer, control of product to the retail
market and ease of implementation. We believe that having Action employees talk directly to our retail
customers to understand their needs will help us restore growth to the collector die-cast market."
Mr. Wagenhals stated further "Although there is much work ahead, we have implemented a number of
initiatives that we believe will improve long term profitability at Action Performance. During the quarter,
we consolidated the Jeff Hamilton apparel business, reduced headcount and improved our accounts receivable.
Overall, I am pleased with the progress that the Company is making and with the commitment that the employees
of Action Performance have made to the turnaround plan."
While Action Performance refrains from giving specific revenue and earnings guidance, the Company expects
fiscal third quarter 2005 revenue to be sequentially higher compared to the second quarter, but below year
ago levels. Further, it expects wholesale sales of die cast to be down year-on-year reflecting uncertainties
associated with the termination of its distributor relationships as the Company transitions to a direct distribution
The Board of Directors has decided not to declare the quarterly dividend of $0.05 per share. The Board believes that
it is prudent to take this action coincident with the restructuring initiatives in place. The evaluation of paying
a dividend will be made on a quarter-by-quarter basis.
Click here to
view detailed financial results for the Second Quarter of Fiscal Year 2005.
Source: Action Performance Companies Inc.
Date: May 9, 2005
All hobby headlines...