BRYAN, Ohio, June 2, 2004 (PRIMEZONE) -- The Ohio Art Company (AMEX:OAR) today announced operating results for the first quarter ended April 30, 2004.
Net sales decreased approximately 35% to $4,514,000 for the quarter ended April 30, 2004, compared to $6,933,000 for the quarter ended April 30, 2003. The decline in sales affected both the domestic and international toy sectors and included all major toy categories. Shipments were influenced by the continuing attrition in sales of the Betty Spaghetty(r) fashion doll along with sharply lower sales of seasonal toys.
The Diversified Products divisions reported a drop in shipments of more than 20% with most of the decrease in the Metal Lithography segment, which has been impacted by a significant decline in the decorated tins market.
Net loss for the first quarter amounted to $1,375,000 or $1.57 per share, on 876,000 average shares outstanding, compared to a net loss of $536,000, or $.61 per share, on 874,000 average shares outstanding during the quarter ended April 30, 2003.
The loss for the quarter was primarily a result of lower shipments from both toy segments and from the Diversified Products Lithography segment. Only the Strydel Diversified Products segment reported a profit for the period. It also reported an improvement in net income over the first quarter of the prior fiscal year.
The Company has filed a letter with the American Stock Exchange requesting withdrawal from listing. Subsequently, an application for withdrawal was filed with the Securities and Exchange Commission. This application is currently under review by the SEC. The Company expects that its stock will trade on the Pink Sheets(r) if the application for withdrawal is approved.
In March 2004, The Ohio Art Company and Pilot Pen Corporation of America have agreed in principle to have Ohio Art manufacture, distribute and market Pilot Pen's Magna Doodle(tm) brand products in the United States and other worldwide markets with the exception of Japan and Korea.
Established in 1908 and headquartered in Bryan, Ohio, The Ohio Art Company manufactures and markets the world famous Etch A Sketch(r) drawing toy, as well as a complete line of toys that enhance and provide development, creativity, and positive reinforcement. Product lines include "Making Creativity Fun" activity toys, such as Etch A Sketch(r), Betty Spaghetty(r) Fashion doll, A.R.M. 4000 XL(tm) water toy and ETO(tm), an electronic drawing toy. In addition, the Company's Diversified Products Division manufactures specialty plastic and lithographed products for the automotive, photographic, food container, and specialty premium markets.
The forward-looking statements contained in this release are based upon various assumptions, and certain risks and uncertainties could cause actual results to differ materially from those stated. For a discussion of factors that may affect actual results, investors should refer to the Company's most recent Form 10-K filed with the SEC. The Company assumes no obligations to update any forward-looking statements contained in this release.
THE OHIO ART COMPANY AND SUBSIDIARIES (note 1)
(Thousands Except Per Share Data)
Three Months Ended
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4/30/04 4/30/03
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Net Sales $ 4,514 $ 6,933
Loss Before Income Taxes (1,375) (536)
Benefit From Income Taxes -- --
Net Loss (1,375) (536)
Net Loss Per Share (1.57) (.61)
Average Shares Outstanding 876 874
note 1: Unaudited