BRYAN, Ohio, June 3, 2005 (PRIMEZONE) -- The Ohio Art Company (Pink Sheets:OART) today announced operating results for the first quarter ended April 30, 2005.
Net sales excluding discontinued operations, decreased approximately 8% to $2,957,000 for the quarter ended April 30, 2005, compared to $3,202,000 for the quarter ended April 30, 2004. Toy shipments improved approximately 14% on the basis of strong gains in the drawing toy category. Both the Domestic and International toy segments contributed to the increase. The Diversified Products segment, which was affected by a continuing slump in the decorated tins market, reported a shortfall in shipments of 19%.
Net income, after taxes and discontinued operations, for the first quarter amounted to $81,000 or $.09 per share, on 876,000 average shares outstanding, compared to a net loss of $1,375,000, or $1.57 per share, on 876,000 average shares outstanding during the quarter ended April 30, 2004.
The sale of the Strydel injection molding division was completed during the quarter and resulted in a pre-tax gain of $1,131,000, including income from operations. Both toy segments reported smaller losses for the quarter compared to the prior year period while the loss in the Lithography division continued to widen.
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), Magna Doodle(TM), and electronic drawing toys such as ETO(TM) and Etch A Sketch(TM) Wired(TM). In addition, the Company's Diversified Products Division manufactures lithographed products for the 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 Annual Report. The Company assumes no obligations to update any forward-looking statements contained in this release.
THE OHIO ART COMPANY AND SUBSIDIARIES(a)
(Thousands Except Per Share Data)
Three Months Ended
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4/30/05 4/30/04
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Net Sales $ 2,957 $ 3,202
Income (Loss) Before Income Taxes (1,050) (1,428)
Provision For (Benefit From) Income Taxes -- --
Net Income (Loss) Before Discontinued
Operations (1,050) (1,428)
Net Income (Loss) From Discontinued
Operations 1,131 54
Net Income (Loss) After Discontinued
Operations 81 (1,375)
Net Income (Loss) Per Share Before
Discontinued Operations (1.20) (1.63)
Net Income (Loss) Per Share After
Discontinued Operations .09 (1.57)
Average Shares Outstanding 876 876
(a) Unaudited