DOLL News The Middleton Doll Company Reports Third Quarter Results
HARTLAND, Wis.--(BUSINESS WIRE)--The Middleton Doll Company (OTCBB:DOLL) today reported results for the
third quarter and nine months ended September 30, 2006.
Third Quarter Highlights
The consolidated net loss for the third quarter of 2006 was $922,606
or $0.25 per diluted share, compared to a net loss of $237,952 or
$0.06 per diluted share for the third quarter of 2005.
The consumer products segment reported a net loss of $705,859 for the
third quarter of 2006.
The financial services segment reported a net loss of $216,747 for the
third quarter of 2006.
Year-to-Date Highlights
For the first three quarters of 2006, the consolidated net loss was
$2,384,847 or $0.64 per diluted share, compared to a net loss of
$1,758,188 or $0.47 per diluted share for the first three quarters of
2005.
The consumer products segment reported a net loss of $2,376,051 for
the first three quarters of 2006.
The financial services segment reported a net loss of $8,796 for the
first three quarters of 2006.
“The consumer products segment continues to be
affected by the decline in demand for collectible dolls. Our response to
these market challenges is to continue reducing expenses and inventory
and to develop new products and marketing strategies that better fit the
changing preferences of today’s consumers,”
said Salvatore L. Bando, president and chief executive officer of The
Middleton Doll Company.
“The first shipment of our new line of
PlayBabies went out in September. The line appeals to young girls as
they change and grow and offers a high-quality product at a lower
price-point than our limited-edition collectible dolls. While the
initial response appears to be favorable and we continue to believe this
new line has good potential, it is too early to predict its impact on
sales for the upcoming holiday season,” said
Ken Werner, president of consumer products for The Middleton Doll
Company.
The new 13-doll family of play dolls provides a playmate for each stage
of a young girl’s early development, from
newborn through age five. “The new PlayBabies
line is a key element in our ‘crib to collector’
strategy. The PlayBabies family is designed for girls up to age five,
our Newborn Nursery®
dolls are targeted for ages five through pre-teen and the well-known
Artist Studio collection™ of exceptional
artist-designed collectible dolls appeal to women of all ages who love
dolls,” said Werner.
“We are continuing to liquidate the financial
services segment by selling-off assets. We sold three properties during
the third quarter. We closed on another property in October and have
accepted offers on two additional properties,”
said Bando.
“Interest on loans and rental income
continued to decline in the third quarter as a result of our efforts to
liquidate assets. In addition, we established a $250,000 loan loss
reserve in the third quarter against outstanding non-accrual loans and
recorded a $98,800 impairment provision on a vacant property that was
sold in October,” 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 décor
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.
