ORLANDO, Fla., Aug. 5, 2004 (PRIMEZONE) -- Action Products International Inc. (Nasdaq:APII), a leading toy designer and manufacturer of educational and positive, non-violent branded toys for children in preschool through primary grades, announced today that the company will be releasing its second quarter financials on Monday, August 9. The conference call is set for 4:15 P.M. Investors may call 800-240-6709. As previously reported, sales for the six-month period ending June 30 were $3.70 million vs. $3.65 million last year, a 1.0% gain.
Action Products reported that the Company has made significant progress in the integration of Curiosity Kits(r). In April 2004, Action Products acquired the assets of Curiosity Kits(r), Inc. the award-winning craft and activity kits brand for children. The prior company sourced product components in the US and in China, but did all product assembly in Maryland. This production system led to higher product costs and quality control challenges in the assembly process.
Action Products has successfully re-sourced many of the Curiosity Kits(r) products from China. The re-sourcing and assembly is expected to immediately deliver lower costs and improved quality control. The Company expects to complete the sourcing during the fourth quarter of 2004. However, in the short term, this has caused erratic inventory shortages and has limited initial sales. Jim Wu, head of import operations, reported that the first shipments are due in at the end of August. This will begin relieving the backlog. Curiosity Kits once had sales in excess of $12,000,000 a year. It is Action Products' intent to rebuild that division to its former level.
Ron Kaplan, CEO said, "We intend to make Curiosity Kits a formidable competitor in the girls toy market as well as in the hobby field. We have shifted some of our resources toward that goal. Although this may affect the development of our other brands in the short term, we feel that this will enhance our strength in the long term and will continue to build real value for the shareholders."
ABOUT ACTION PRODUCTS INTERNATIONAL
Action Products International, Inc. is a leading designer and manufacturer of educational and positive branded toys emphasizing fun, quality brands including Jay Jay The Jet Plane Wooden Adventure System(tm), I Dig Dinosaurs(r) and I Dig Treasures(r) excavation activity kits, Space Voyagers(r) ("The most authentic Space Toys on Earth"), Climb@Tron(tm) window-climbing animals and robots, Play and Store(tm) themed playsets, Kidz Workshop(tm) wooden projects, and Drop Zone Extreme(tm) parachute toys. Its products are marketed and sold to specialty retailers, museums, toy stores, theme parks, attractions, zoos, catalog companies, Internet retailers, and educational markets worldwide.
For information on Action Products, www.apii.com
Any statements that aren't historical facts contained in this release are forward-looking statements. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, and intellectual property rights and the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.