The Ohio Art Company Reports Operating Results for the Fourth Quarter and Year Ended January 31, 2007
March 30 2007 - 5:00PM
PR Newswire (US)
BRYAN, Ohio, March 30 /PRNewswire-FirstCall/ -- The Ohio Art
Company, (Pink Sheets: OART.PK), today announced operating results
for the fourth quarter and for the fiscal year ended January 31,
2007. Net product sales increased to $24,425,000 for the year ended
January 31, 2007 compared to $19,827,000 for the year ended January
31, 2006. For the three-month period, net sales decreased
approximately 11% from $5,153,000 for the quarter ended January 31,
2006 to $4,580,000 for the quarter ended January 31, 2007. Net
profit after taxes for the year ended January 31, 2007 amounted to
$936,000 or $1.07 per share on 875,000 average shares outstanding
compared to a net loss after taxes but before discontinued
operations of $1,673,000 or $1.91 per share on 875,000 average
shares outstanding for the year ended January 31, 2006. The sale of
the Strydel injection molding division segment was completed during
the first quarter of fiscal 2006 and resulted in a gain, including
income from operations, of $1,088,000 for the year ended January
31, 2006. The impact of the subsidiary sale yielded a net loss
after taxes and discontinued operations of $585,000 or $.67 per
share for the year ended January 31, 2006. The Company experienced
a break-even point for fourth quarter ended January 31, 2007 with
875,000 average shares outstanding, compared to a net income after
taxes and discontinued operations of $257,000 or $.29 per share, on
875,000 average shares outstanding for the quarter ended January
31, 2006. Domestic Toy revenues rose approximately 47% during the
year ended January 31, 2007, primarily driven by favorable
performances of the Etch A Sketch(R), Magna Doodle(R), and K's
Kids(R) branded product categories, coupled with the introductory
year sales of the Doodle Doug(R) drawing toy. International Toy
segment revenues were a disappointment, declining approximately 15%
due to lower Magna Doodle(R) brand demand in the European market,
while Canada, Australia, and New Zealand experienced increased
results. The Diversified Products segment once again reported flat
shipments for the third consecutive year. Metal lithography volume
which was lost due to the rise in popularity of digital imaging
which, in turn, adversely impacted demand for tin sheets used in
photographic film containers, was successfully replaced with
specialty decorated tin sheet volume at improved gross margins
thereby contributing to the division's profitability. Established
in 1908 and headquartered in Bryan, Ohio, The Ohio Art Company
develops 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(R) and Doodle Doug(TM) and the K's Kids(R)
brand line of infant and toddler stuffed toys. 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. The Company assumes no obligations to update any
forward-looking statements contained in this release. THE OHIO ART
COMPANY AND SUBSIDIARIES (Thousands Except Per Share Data) Twelve
Months Ended Three Months Ended 1/31/07 1/31/06 1/31/07 1/31/06 Net
Product Sales $24,425 $19,827 4,580 5,153 Income (Loss) Before
Income Taxes 960 (1,673) 24 283 (Provision For) Benefit From Income
Taxes (24) 0 (24) 0 Income (Loss) Before Discontinued Operations
936 (1,673) 0 283 Net Income (Loss) From Discontinued Operations 0
1,088 0 (26) Net Income (Loss) After Discontinued Operations 936
(585) 0 257 Net Income (Loss) Per Share Before Discontinued
Operations 1.07 (1.91) 0 .32 Net Income (Loss) Per Share After
Discontinued Operations 1.07 (.67) 0 .29 Average Shares Outstanding
875 875 875 875 DATASOURCE: The Ohio Art Company CONTACT: Jeffrey
L. Morris, Chief Financial Officer of The Ohio Art Company,
+1-419-636-3141
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