ORLANDO, Fla., Nov. 1, 2004 (PRIMEZONE) -- Action Products International, Inc. (Nasdaq:APII), a leading toy designer and manufacturer of educational and positive, non-violent branded toys for pre-school children through pre-teens, today announced that the company reported its first profit after three quarters of losses. For the quarter ending September 30, 2004, sales as previously reported were $2,392,000 vs. $2,724,000 last year with strong performances in August and September. The profit for the quarter was $53,300, $.01 a share based on 4.4 million shares vs. $164,800, $.05 a share based on 3.2 million shares in 2003. For the nine-month period ending Sept. 30, 2004, as previously reported, the sales were $6,092,000 vs. $6,375,000 last year. The company incurred a loss of $388,200 for nine months, which equals $.10 a share based on 4.1 million shares vs. a profit of $60,900 or $.02 last year based on 3.1 million shares.
"Our pre-booked orders for Q-4 leads us to believe that sales will be up for the quarter and that we can end this otherwise challenging year, with albeit a modest, sales gain over 2003. Our integration of Curiosity Kits should be completed in 2005, about one year from the acquisition. For 2005, we see a lot of the promise we had hoped to achieve in 2004. The retail toy market has been in decline and we have avoided the worst of it. We fully expect to grow in 2005 through our diversification of sales channels and new product acquisitions," said Ron Kaplan, CEO. "Over the past few months we have been improving our product, marketing and sales organizations. We are partnering with major retailers for their 'own brand' private label initiatives, and, on a weakened U.S. dollar, we are looking to again increase our international sales distribution. With new product acquisitions, new customers in diversified retail channels, and strengthening of independent retailers because of store closings by K-B Toys and Toys 'R' Us, we are in a great position for any sustained upturn in the economy and consumer confidence. Meanwhile, we will continue to manage our portfolio of brands for profitability over growth and acquire product assets from those not as well positioned. Parents are increasingly seeking out safe, educational and positive playthings for their children and we are happy to bring those to them on an increasing basis."
Conference Call today at 4:15 P.M. 800-240-6709.
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"), Wild Climbers(tm) and Climb@Tron(tm) window-climbing animals and robots, Play and Store(tm) themed playsets, Kidz Workshop(tm) wooden projects, Drop Zone Extreme(tm) parachute toys and Curiosity Kits(r), a leading, award-winning specialty brand for kids' craft and activity kits. Its products are marketed and sold worldwide to specialty retailers, museums, toy stores, theme parks, attractions, zoos, catalog companies, Internet retailers, and educational markets.
For more information on Action Products' toys, email marketing@apii.com or visit the Company's web site at www.apii.com.
Any statements that are not 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.