Message #7 From:
NewsBot Date: November 4, 2005 07:23:00 AM
DOLL News The Middleton Doll Company Reports Third Quarter Results
PEWAUKEE, Wis.--(BUSINESS WIRE)--Nov. 4, 2005--The Middleton Doll Company (OTCBB:DOLL) today reported a consolidated net loss of $237,952 or $0.06 per diluted share for the third quarter ended September 30, 2005, compared to earnings of $182,619 or $0.05 per diluted share for the third quarter of 2004. The company's consumer products segment reported a net loss of $464,267 for the third quarter of 2005 and the financial services segment reported a profit of $226,315.
For the first nine months of 2005, the company reported a net loss of $1,758,188 or $0.47 per diluted share, compared to a loss of $1,390,756 for the same period in 2004.
Net income for the financial services segment increased as the result of a gain on the sale of property as the company continues to liquidate this subsidiary. The planned liquidation of the financial services subsidiary will enable the company to redeem its preferred stock at or before maturity in June 2008.
"In the consumer products segment, the 2005 third quarter sales were lower than in the same period in the prior year, due to a $1.58 million holiday shipment of play dolls to a large retailer in 2004. Excluding this shipment, sales increased in the third quarter of 2005 over the same period in 2004," noted George R. Schonath, president and chief executive officer of The Middleton Doll Company.
Schonath said a new management team is in place at the company's Lee Middleton Original Dolls subsidiary. "The new team is working on refining the company's strategic plan, with an emphasis on enhanced marketing initiatives and new product development," he said.
As previously announced, on December 31, 2005, The Middleton Doll Company will terminate its existing management agreement with InvestorsBank, and George R. Schonath and Susan J. Hauke, vice president - finance and chief financial officer, will resign from all offices with the company and its subsidiaries. Under a new agreement with InvestorsBank effective January 1, 2006, InvestorsBank will continue to provide loan management, real estate management and specified accounting services to The Middleton Doll Company. The Board of Directors of The Middleton Doll Company will appoint successors to Schonath and Hauke prior to the end of 2005.
The Middleton Doll Company operates in two segments, consumer products and financial services. The company's consumer products segment is comprised of Lee Middleton Original Dolls, Inc., a designer and marketer of lifelike collectible and play dolls, and License Products, Inc., a designer and marketer of clocks and home decor products that are sold to major national retailers. The company's financial services subsidiary is a real estate investment trust (REIT).
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company's management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expect," "anticipate," "plan," "intend," "estimate," "may," "will," "would," "could," "should," or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. Significant risks and uncertainties include, but are not limited to, (i) the continuing effect of adverse economic conditions, (ii) the effect of increasing competition in the collectible doll market and (iii) the effect of not reaching the Company's goal to expand to 100 boutiques over a three-year period. Additional information concerning the Company and its business, including factors that could materially affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission.
The Middleton Doll Company news releases
are available on-line 24 hours a day at:
http://www.middletondollcompany.com
The Middleton Doll Company
(OTCBB:DOLL)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2005 2004 2005 2004
------ ------ ------ ------
STATEMENTS OF OPERATIONS
------------------------
BY SEGMENT
----------
Consumer Products:
Net sales $3,969,750 $5,107,559 $ 9,319,300 $10,391,450
Cost of sales 2,431,269 3,047,330 5,647,466 6,720,251
----------- ----------- ------------ ------------
Gross profit 1,538,481 2,060,229 3,671,834 3,671,199
Other expenses
(income):
Operating expenses 1,768,056 1,780,315 5,798,037 5,165,600
Interest/rental
expense to parent 277,030 191,798 736,757 573,908
Management fees to
parent - - - 114,000
Forgiveness of
management fees
to parent - - - (114,000)
Other expense
(income) (42,338) (4,134) (144,591) (93,794)
Minority interest
in earnings of
subsidiary - 922 - (19,530)
---------- ---------- ----------- ------------
Total other
expenses 2,002,748 1,968,901 6,390,203 5,626,184
Net loss $ (464,267) $ 91,328 $(2,718,369) $(1,954,985)
=========== =========== ============ ============
Financial Services:
Net rental/interest
income:
Interest on loans $ 404,892 $ 496,966 $ 1,281,977 $ 1,727,737
Rental income 449,266 757,284 1,480,354 2,286,306
Interest/rental
income from
subsidiary 277,030 191,798 736,757 573,908
Interest expense (445,257) (484,337) (1,328,311) (1,564,829)
----------- ----------- ------------ ------------
Total net
rental/interest
income 685,931 961,711 2,170,777 3,023,122
Other income:
Other income 7,294 38,727 28,382 63,062
Management fees
from subsidiary - - - 114,000
Forgiveness of
management fees
from subsidiary - - - (114,000)
Gain on sale of
property 265,068 81,290 1,034,492 81,290
----------- ----------- ------------ ------------
Total other
income 272,362 120,017 1,062,874 144,352
Other expenses:
Depreciation
expense on leased
properties 84,088 156,424 279,762 512,011
Other operating
expenses 328,570 570,726 1,015,634 1,375,396
Income tax expense 93,045 37,012 299,248 37,012
----------- ----------- ------------ ------------
Total other
expenses 505,703 764,162 1,594,644 1,924,419
Preferred stock
dividends expense 226,275 226,275 678,826 678,826
----------- ----------- ------------ ------------
Net income $ 226,315 $ 91,291 $ 960,181 $ 564,229
=========== =========== ============ ============
STATEMENTS OF OPERATIONS - COMBINED
-----------------------------------
Net (loss) income:
Consumer Products $ (464,267) $ 91,328 $(2,718,369) $(1,954,985)
Financial Services 226,315 91,291 960,181 564,229
----------- ----------- ------------ ------------
Net (loss) income
available to common
shareholders $ (237,952) $ 182,619 $(1,758,188) $(1,390,756)
(Loss) Earnings Per
Share - Basic $ (0.06) $ 0.05 $ (0.47) $ (0.37)
(Loss) Earnings Per
Share - Diluted $ (0.06) $ 0.05 $ (0.47) $ (0.37)
Average shares
outstanding - Basic 3,727,589 3,727,589 3,727,589 3,727,589
Average shares
outstanding -
Diluted 3,727,589 3,727,589 3,727,589 3,727,589
