Message #9 From:
Stock News Bot Date: August 4, 2006 10:45:00 AM
DOLL News The Middleton Doll Company Reports Second Quarter Results
HARTLAND, Wis.--(BUSINESS WIRE)--Aug. 4, 2006--The Middleton Doll Company (OTCBB:DOLL) today reported results for the second quarter and six months ended June 30, 2006.
Second Quarter Highlights
-- The consolidated net loss for the second quarter of 2006 was $330,658 or $0.09 per diluted share, compared to a net loss of $1,167,281 or $0.31 per diluted share for the second quarter of 2005.
-- The consumer products segment reported a net loss of $666,269 for the second quarter of 2006.
-- The financial services segment reported net income of $335,611 in the second quarter of 2006.
First Half Highlights
-- For the first half of 2006, the consolidated net loss was $1,462,241 or $0.39 per diluted share, compared to a net loss of $1,520,236 or $0.41 per diluted share for the first half of 2005.
-- The consumer products segment reported a net loss of $1,670,192 for the first half of 2006.
-- The financial services segment reported net income of $207,951 for the first half of 2006.
"Sales in the consumer products segment continue to be affected by the decline in demand for collectible dolls. In this challenging industry environment, we remain focused on reducing operating expenses, controlling inventory levels and developing new products and marketing strategies that reflect the changing market for our products," said Salvatore L. Bando, president and chief executive officer of The Middleton Doll Company.
"Later this month, we will launch a new and comprehensive collection of play dolls. The new 13-doll family of PlayBabies provides a playmate for each stage of a young girl's early development, from newborn through age four. The series begins with three models for newborns, with additional models for the six month, one year, 18 month, two, three and four-year age groups. Each doll is uniquely designed to recognize the physical and personality changes that take place as a girl grows up," said Ken Werner, president of consumer products for The Middleton Doll Company.
"This creative new line of PlayBabies was developed over the past year by the Lee Middleton Original Dolls team. We believe the new line fills a void in the market for truly lifelike, affordable playmates that can "grow up" with today's young girls. The new line has received positive reviews in previews with major clients and we are encouraged by the early response to this concept," said Werner.
Werner said the new PlayBabies line is a key component of the company's "crib to collector" strategy. "The PlayBabies line is designed for the various stages in a young girl's life, up to age five. Our Newborn Nursery(R) dolls appeal to young girls from five through the pre-teen years. After that, our well-established Artist Studio Collection(TM) of exceptional artist-designed collectible dolls provides opportunities for women of all ages to enjoy dolls for the rest of their lives," he said.
Werner noted that extensions of the PlayBabies line, such as clothing and accessories, are planned for 2007.
In the company's financial services segment, interest on loans and rental income continued to decline as part of the continued efforts to sell-off assets. "We sold two buildings in the second quarter. In August 2006, we sold two additional properties and paid-off our existing bank debt," added Bando.
The Middleton Doll Company currently 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 segment is comprised primarily of the lending and real estate leasing business of its former subsidiary, Bando McGlocklin Small Business Lending Corporation, now owned by Lee Middleton Original Dolls.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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. These factors include: the inability of InvestorsBank to fulfill its obligations under the asset purchase agreement; the default in payment of loans anticipated to mature and be paid prior to June 30, 2006; the inability of debtors to refinance loans expected to be refinanced prior to June 30, 2006; the proceeds to be generated upon the sale of leased real properties, which depends upon a variety of factors, such as competition, real estate conditions, interest rates and availability of tenants.
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 Six months ended
------------------ ----------------
June 30, June 30,
-------- --------
2006 2005 2006 2005
----------- ------------ ------------ ------------
STATEMENTS OF
OPERATIONS
BY SEGMENT
Consumer Products:
Net sales $2,135,072 $ 2,666,015 $ 4,714,122 $ 5,562,779
Cost of sales 1,458,638 1,754,912 3,393,394 3,552,900
----------- ------------ ------------ ------------
Gross profit 676,434 911,103 1,320,728 2,009,879
Other expenses
(income):
Operating
expenses 1,383,948 1,982,955 3,073,650 3,906,507
Interest/rental
expense to Parent - 245,546 - 459,727
Other expense
(income) (41,245) (63,475) (82,730) (102,253)
----------- ------------ ------------ ------------
Total other
expenses 1,342,703 2,165,026 2,990,920 4,263,981
Net loss $ (666,269) $(1,253,923) $(1,670,192) $(2,254,102)
=========== ============ ============ ============
Financial Services:
Net rental/interest
income:
Interest on loans $ 61,345 $ 417,850 $ 276,390 $ 877,085
Rental income 219,976 496,239 528,638 1,031,088
Interest/rental
income from
subsidiary - 245,546 - 459,727
Interest expense (77,360) (428,170) (317,240) (883,054)
----------- ------------ ------------ ------------
Total net
rental/interest
income 203,961 731,465 487,788 1,484,846
Other income:
Other income 10,590 8,660 19,186 21,088
Gain on sale of
property 601,342 - 1,060,716 769,424
----------- ------------ ------------ ------------
Total other
income 611,932 8,660 1,079,902 790,512
Other expenses:
Loss on early
extinguishment of
indebtedness - - 289,034 -
Depreciation
expense on
leased
properties 38,252 93,916 95,710 195,674
Other operating
expenses 215,754 333,291 522,444 687,064
Income tax
expense - - - 206,203
----------- ------------ ------------ ------------
Total other
expenses 254,006 427,207 907,188 1,088,941
Preferred stock
dividends expense 226,276 226,276 452,551 452,551
----------- ------------ ------------ ------------
Net income $ 335,611 $ 86,642 $ 207,951 $ 733,866
=========== ============ ============ ============
STATEMENTS OF
OPERATIONS -
COMBINED
Net (loss) income:
Consumer Products $ (666,269) $(1,253,923) $(1,670,192) $(2,254,102)
Financial Services 335,611 86,642 207,951 733,866
----------- ------------ ------------ ------------
Net (loss) income
available to
common
shareholders $ (330,658) $(1,167,281) $(1,462,241) $(1,520,236)
(Loss) Earnings Per
Share -
Basic and Diluted $ (0.09) $ (0.31) $ (0.39) $ (0.41)
Average shares
outstanding -
Basic and Diluted 3,727,589 3,727,589 3,727,589 3,727,589
