Enesco Group, Inc. Announces First Quarter 2001 Results

Apr 23, 2001, 01:00 ET from Enesco Group, Inc.

   ITASCA, Ill., April 23 /PRNewswire Interactive News Release/ -- Enesco
 Group, Inc. (NYSE:   ENC), a global leader in the quality branded gift,
 collectible and decorative accent markets, today reported revenues of
 $62.7 million for the quarter ended March 31, 2001, compared with revenues of
 $73.5 million for the same period a year ago.  The 15 percent decline in
 revenue continues to be focused in the United States card, gift and
 collectible distribution channels.  As previously reported, the company had a
 lower order backlog entering the first quarter, which was compounded by lower
 order intake in this channel throughout the quarter.  In addition, 2001
 revenues would have been $1.4 million higher had 2000 currency exchange rates
 remained in effect.
     "The ongoing softness in the gift and collectible channel continues to be
 a challenge for us," says Daniel DalleMolle, president and CEO, Enesco Group,
 Inc. "However, our field account managers are working closely with their
 specialty retailers to assist them in building their business and attracting
 new customers.  We have in place several ongoing initiatives to cut costs and
 improve operations -- all of which we expect to have a positive impact in our
 retail specialty channel."
     DalleMolle adds, "While we are continuing to analyze our approach to
 servicing this channel, we also are focusing on growing our gift business in
 the mass arena.  This past holiday selling season was successful for our
 Precious Moments gift products at retailers such as Wal-Mart and Target, and
 we anticipate taking these relationships to the next level in 2001."
     "In addition, there are tremendous opportunities for growth through
 innovative licensed product development, expansion of our home decor business,
 and continued operational efficiencies.  I look forward to reshaping this
 business to be responsive to market demands throughout this year and in the
 years to come."
     The net loss for the quarter was $3.4 million, or $.25 per diluted share,
 compared to net income of $.2 million, or $.01 per diluted share, in the first
 quarter of 2000.  The first quarter operating loss was $5.5 million compared
 to a $1.4 million operating profit for the first quarter one year ago.  The
 operating results reflect the impact of fixed costs on the lower sales base.
 One time costs of $1.8 million were incurred in the first quarter 2001
 relating to the sales force conversion announced in November, 2000.
     "I am excited to be joining Enesco at a time when there is such
 opportunity to build shareholder value," concludes DalleMolle.  "Our company
 is in the midst of significant redevelopment that will position us well in the
 future."
     For more than 40 years, Enesco Group, Inc. (NYSE:   ENC) has been a global
 leader in the gift, collectibles and home decor industries, offering products
 from such notable licensees as Harry Potter, Cherished Teddies, Mary
 Engelbreit, and Kim Anderson's Pretty as a Picture, among others.  The
 company's award-winning Precious Moments brand is one of the top lines of
 collectibles throughout the world.  Further information is available on the
 company's Web site at www.enesco.com .
 
     Except for the historical information contained herein, the matters
 discussed in this news release are forward-looking statements that involve
 risks and uncertainties, and actual results could differ materially from the
 Company's present expectations.  A description of the risk factors that could
 cause such material differences is set forth in the Company's Form 10-K for
 the year ended December 31, 2000, filed under the Securities Exchange Act of
 1934.  The Company undertakes no obligation to update or publish in the future
 any forward-looking information.
 
     To listen to the Webcast, your computer must have RealPlayer installed.
 If you do not have RealPlayer, go to http://www.streetevents.com prior to the
 call, where you can download RealPlayer for free.
 
     * A conference call will be broadcast live on Tuesday, April 24, 2001 at
 10 a.m. Central Standard Time (11 a.m. Eastern) at http://www.enesco.com and
 http://www.streetevents.com .  An online replay also will be available
 approximately one hour after the call. Please see end of the release for more
 details.
 
                               ENESCO GROUP, INC.
 
                       CONSOLIDATED STATEMENTS OF INCOME
                                  (UNAUDITED)
                  FIRST QUARTER ENDED MARCH 31, 2001 AND 2000
                    (In thousands, except per share amounts)
 
                                              2001          2000      % Change
 
     Net revenues (A)                        $62,745       $73,460      -15%
 
     Cost of sales                            34,228        39,430      -13%
 
     Gross profit                             28,517        34,030      -16%
 
     Selling, distribution, general and
       administrative expenses (B)            34,051        32,642        4%
 
     Operating profit (loss)                  (5,534)        1,388
 
       Net interest                             (450)         (504)     -11%
       Amortization and other items             (469)         (610)     -23%
 
     Income (loss) before income taxes        (6,453)          274
 
     Income taxes                             (3,013)          110
 
     Net income (loss)                       $(3,440)         $164
 
 
     Earnings (Loss) Per Share:
       Basic                                  $(0.25)        $0.01
       Diluted                                $(0.25)        $0.01
 
     Average shares outstanding               13,637        13,506
     Average shares diluted                   13,637        13,506
 
     Dividends per share                          $-         $0.28
 
     (A) Revenue amount for 2000 adjusted to include shipping and handling
         costs billed to customers.
 
     (B) 2001 amount includes approximately $1.8 million of one-time costs
         related to the sales force conversion announced in November 2000.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X20558364
 
 

SOURCE Enesco Group, Inc.
   ITASCA, Ill., April 23 /PRNewswire Interactive News Release/ -- Enesco
 Group, Inc. (NYSE:   ENC), a global leader in the quality branded gift,
 collectible and decorative accent markets, today reported revenues of
 $62.7 million for the quarter ended March 31, 2001, compared with revenues of
 $73.5 million for the same period a year ago.  The 15 percent decline in
 revenue continues to be focused in the United States card, gift and
 collectible distribution channels.  As previously reported, the company had a
 lower order backlog entering the first quarter, which was compounded by lower
 order intake in this channel throughout the quarter.  In addition, 2001
 revenues would have been $1.4 million higher had 2000 currency exchange rates
 remained in effect.
     "The ongoing softness in the gift and collectible channel continues to be
 a challenge for us," says Daniel DalleMolle, president and CEO, Enesco Group,
 Inc. "However, our field account managers are working closely with their
 specialty retailers to assist them in building their business and attracting
 new customers.  We have in place several ongoing initiatives to cut costs and
 improve operations -- all of which we expect to have a positive impact in our
 retail specialty channel."
     DalleMolle adds, "While we are continuing to analyze our approach to
 servicing this channel, we also are focusing on growing our gift business in
 the mass arena.  This past holiday selling season was successful for our
 Precious Moments gift products at retailers such as Wal-Mart and Target, and
 we anticipate taking these relationships to the next level in 2001."
     "In addition, there are tremendous opportunities for growth through
 innovative licensed product development, expansion of our home decor business,
 and continued operational efficiencies.  I look forward to reshaping this
 business to be responsive to market demands throughout this year and in the
 years to come."
     The net loss for the quarter was $3.4 million, or $.25 per diluted share,
 compared to net income of $.2 million, or $.01 per diluted share, in the first
 quarter of 2000.  The first quarter operating loss was $5.5 million compared
 to a $1.4 million operating profit for the first quarter one year ago.  The
 operating results reflect the impact of fixed costs on the lower sales base.
 One time costs of $1.8 million were incurred in the first quarter 2001
 relating to the sales force conversion announced in November, 2000.
     "I am excited to be joining Enesco at a time when there is such
 opportunity to build shareholder value," concludes DalleMolle.  "Our company
 is in the midst of significant redevelopment that will position us well in the
 future."
     For more than 40 years, Enesco Group, Inc. (NYSE:   ENC) has been a global
 leader in the gift, collectibles and home decor industries, offering products
 from such notable licensees as Harry Potter, Cherished Teddies, Mary
 Engelbreit, and Kim Anderson's Pretty as a Picture, among others.  The
 company's award-winning Precious Moments brand is one of the top lines of
 collectibles throughout the world.  Further information is available on the
 company's Web site at www.enesco.com .
 
     Except for the historical information contained herein, the matters
 discussed in this news release are forward-looking statements that involve
 risks and uncertainties, and actual results could differ materially from the
 Company's present expectations.  A description of the risk factors that could
 cause such material differences is set forth in the Company's Form 10-K for
 the year ended December 31, 2000, filed under the Securities Exchange Act of
 1934.  The Company undertakes no obligation to update or publish in the future
 any forward-looking information.
 
     To listen to the Webcast, your computer must have RealPlayer installed.
 If you do not have RealPlayer, go to http://www.streetevents.com prior to the
 call, where you can download RealPlayer for free.
 
     * A conference call will be broadcast live on Tuesday, April 24, 2001 at
 10 a.m. Central Standard Time (11 a.m. Eastern) at http://www.enesco.com and
 http://www.streetevents.com .  An online replay also will be available
 approximately one hour after the call. Please see end of the release for more
 details.
 
                               ENESCO GROUP, INC.
 
                       CONSOLIDATED STATEMENTS OF INCOME
                                  (UNAUDITED)
                  FIRST QUARTER ENDED MARCH 31, 2001 AND 2000
                    (In thousands, except per share amounts)
 
                                              2001          2000      % Change
 
     Net revenues (A)                        $62,745       $73,460      -15%
 
     Cost of sales                            34,228        39,430      -13%
 
     Gross profit                             28,517        34,030      -16%
 
     Selling, distribution, general and
       administrative expenses (B)            34,051        32,642        4%
 
     Operating profit (loss)                  (5,534)        1,388
 
       Net interest                             (450)         (504)     -11%
       Amortization and other items             (469)         (610)     -23%
 
     Income (loss) before income taxes        (6,453)          274
 
     Income taxes                             (3,013)          110
 
     Net income (loss)                       $(3,440)         $164
 
 
     Earnings (Loss) Per Share:
       Basic                                  $(0.25)        $0.01
       Diluted                                $(0.25)        $0.01
 
     Average shares outstanding               13,637        13,506
     Average shares diluted                   13,637        13,506
 
     Dividends per share                          $-         $0.28
 
     (A) Revenue amount for 2000 adjusted to include shipping and handling
         costs billed to customers.
 
     (B) 2001 amount includes approximately $1.8 million of one-time costs
         related to the sales force conversion announced in November 2000.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X20558364
 
 SOURCE  Enesco Group, Inc.