ORLANDO, Fla., Aug. 9, 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 sales for the six-month period ending June 30 were $3,700,100 vs. $3,650,800 last year. For the three-month period, sales were $1,937,300 vs. $2,265.700 in 2003. The company lost $252,700 ($.06 per share) in 2004 vs. a profit of $26,100 ($.01 per share) in 2003 for the three-month period ending June 30. For the six-month period, the loss in 2004 was $441,500 ($.11 per share) vs. a loss of $103,900 ($.03 per share) in 2003.
The Company's financial condition and liquidity improved. Working capital as of June 30, 2004 increased 75% to $2,100,000 compared to $1,200,000 at June 30, 2003. Total shareholder's equity was $4,500,000 at June 30, 2004 compared to $2,800,000 as of June 30, 2003. Long-term debt, principally amounts due on mortgage payable, decreased 32% to $537,900 at June 30, 2004 from $785,800 as of June 30, 2003.
Ron Kaplan, CEO, stated, "Sales as well as general and administrative expenses were increased in anticipation of increased sales, which were not materialized largely due to reduced sales through toy chain stores. Our moves to diversify have been successful, but not yet enough to make up for the loss of revenue previously derived from large toy chains. We did get a sales gain in all of our other channels of distribution and reduced our top 16 accounts from 56% of our business to 38%. Importation costs were higher due to higher oil prices, which affected our gross profit margins, and we have experienced an increase in non-cash expenses. As such we have implemented a program of cutting back expenses to reflect our current sales pace, and to bring cash and non-cash expense in-line with our profit objective."
The company noted it has made application to be delisted from the Berlin Stock exchange in an effort to stop unrestricted short sales.
The company will hold a conference call today at 4:15 P.M. The call-in number is 800-240-6709. Rebroadcasts will be available for 30 days on the company's website www.apii.com.
ABOUT ACTION PRODUCTS INTERNATIONAL, INC.
Action Products 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 its recently acquired Curiosity Kits(r), the 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.
ACTION PRODUCTS INTERNATIONAL, INC. Warren Kaplan, Investor Relations, 407-481-8007 Ext. 723