Brass Eagle Inc. reported net sales for the first quarter decreased 33% to $13.4 million versus $20.1 million for the same period last year. For the three months ended March 31, 2003 the Company reported a loss of $226,000 or $0.03 per diluted share, compared to a profit of $1.1 million or $0.14 per diluted share for the corresponding period in 2002.
Brass Eagle now expects fiscal year 2003 sales to range from $98 million to $105 million. The Company also expects fiscal 2003 diluted earnings per share to range from $1.10 to $1.20.
Lynn Scott, Brass Eagle President and CEO stated, “The soft retail environment, which prompted reductions in major retailers inventories, caused lower than expected first quarter sales results. And although it appears retail inventories have been sufficiently decreased through the first few months, we remain cautious about the retail environment over the course of the year.”
“We continue to believe the basic business of Brass Eagle is sound and we remain the leader in a growing market with strong demographic trends at our back. We will continue to focus on growing our core business while simultaneously looking to diversify into complementary markets.”
BRASS EAGLE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except share and per share data)
THREE MONTHS ENDED
MARCH 31,
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2003 2002
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(unaudited)
Net sales $ 13,412 $ 20,130
Cost of sales 8,259 12,396
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Gross profit 5,153 7,734
Operating expenses 5,229 5,649
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Operating income (loss) (76) 2,085
Minority interest 0 51
Interest income 15 29
Interest expense (304) (410)
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(289) (330)
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Income (loss) before income taxes (365) 1,755
Provision (benefit) for income taxes (139) 666
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Net income (loss) $ (226) $ 1,089
