Grow Biz International, Inc. Announces First Quarter Results

Apr 18, 2001, 01:00 ET from Grow Biz International, Inc.

    MINNEAPOLIS, April 18 /PRNewswire/ --
     Grow Biz International, Inc. (Nasdaq:   GBIZ) announced today net income for
 the quarter ended March 31, 2001 of $712,700 compared to net income of $25,100
 for the first quarter of 2000.  Diluted earnings were $.13 per share compared
 to $.00 per share in 2000.
     Revenues decreased $2.7 million due to lower direct merchandise sales to
 franchisees and the sale of Computer Renaissance in August 2000.  If royalties
 generated by the Computer Renaissance franchise system were excluded from the
 2000 royalty totals, royalties would have increased 15.8% from first quarter
 2000 to first quarter 2001.
     John L. Morgan, Chairman and Chief Executive Officer, commented, "The
 results for the first quarter show that we continue to make progress.  We
 remain cautious, however, as we continue to face expenses needed to improve
 our franchise brands."
     Grow Biz International, Inc. develops franchises and operates
 value-oriented retail brands for stores that buy, sell, trade and consign used
 and new merchandise.  At December 30, 2000, the Company had 878 franchise and
 retail stores in operation and an additional 27 franchises awarded but not
 open.  Of the stores in operation, there were 527 Play It Again Sports(R),
 233 Once Upon A Child(R), 74 Music Go Round(R), 18 ReTool(R) and 26 Plato's
 Closet(R) stores.
 
     This press release contains forward-looking statements within the meaning
 of the safe harbor provisions of Section 21E of the Securities Exchange Act of
 1934, as amended (the "Exchange Act"), relating to future events or the future
 financial performance of the Company including statements with respect to the
 strength of the Company's operating position in the future and future results
 from operations.  Such forward-looking statements are only predictions or
 statements of intention subject to risks and uncertainties and actual events
 or results could differ materially from those anticipated.  Because actual
 result may differ, shareholders and prospective investors are cautioned not to
 place undue reliance on such forward-looking statements.
 
 
                            GROW BIZ INTERNATIONAL, INC.
                              CONDENSED BALANCE SHEETS
 
                                                    March 31,    December 30,
                                                      2001           2000
                                   ASSETS
     Current Assets:
       Cash and cash equivalents                  $ 3,827,100     $2,005,100
       Receivables, less allowance
        for doubtful accounts of $971,500
        and $943,500                                5,433,500      6,170,300
       Inventories                                  1,212,400      1,367,200
       Prepaid expenses and other                     475,100        396,700
       Deferred income taxes                        2,290,000      2,290,000
          Total current assets                     13,238,100     12,229,300
 
       Long-term receivables                          300,200        326,200
       Property and equipment, net                  1,286,900      1,451,800
 
       Other assets, net                              666,300        713,500
                                                  $15,491,500    $14,720,800
 
                          LIABILITIES AND SHAREHOLDERS' EQUITY
     Current Liabilities:
       Accounts payable                           $ 2,861,700     $2,864,000
       Accrued liabilities                          2,817,900      2,469,200
       Current maturities of long-term debt           693,500        827,400
       Current deferred revenue                       708,500        676,000
          Total current liabilities                 7,081,600      6,836,600
 
     Long-Term Debt                                 3,819,800      3,961,000
 
     Deferred Gain on Sale of Building                410,600        456,400
 
     Shareholders' Equity:
       Common stock, no par, 10,000,000
        shares authorized, 5,386,433 shares
        issued and outstanding for both periods     1,419,900      1,419,900
       Common stock warrants                          822,000        822,000
       Retained earnings                            1,937,600      1,224,900
 
     Total shareholders' equity                     4,179,500      3,466,800
                                                  $15,491,500    $14,720,800
 
 
                          GROW BIZ INTERNATIONAL, INC.
                       CONDENSED STATEMENTS OF OPERATIONS
 
                                                      Three Months Ended
                                               March 31, 2001   March 25, 2000
     REVENUE:
       Merchandise sales                           $5,651,100     $8,268,400
       Royalties                                    3,974,500      4,183,300
       Franchise fees                                 162,500        151,200
       Other                                          364,200        204,400
          Total revenue                            10,152,300     12,807,300
 
     COST OF MERCHANDISE SOLD                       4,851,300      7,113,700
 
     SELLING, GENERAL AND ADMINISTRATIVE EXPENSES   4,003,800      5,313,400
 
          Income from operations                    1,297,200        380,200
 
     INTEREST EXPENSE                                (125,000)      (339,000)
 
          Income before income taxes                1,172,200         41,200
 
     PROVISION FOR INCOME TAXES                      (459,500)       (16,100)
 
     NET INCOME                                      $712,700       $ 25,100
 
     NET INCOME PER COMMON SHARE - BASIC                 $.13           $.00
 
     WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC    5,386,433      5,357,774
 
     NET INCOME PER COMMON SHARE - DILUTED               $.13           $.00
 
     WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED  5,510,141      5,357,774
 
 

SOURCE Grow Biz International, Inc.
    MINNEAPOLIS, April 18 /PRNewswire/ --
     Grow Biz International, Inc. (Nasdaq:   GBIZ) announced today net income for
 the quarter ended March 31, 2001 of $712,700 compared to net income of $25,100
 for the first quarter of 2000.  Diluted earnings were $.13 per share compared
 to $.00 per share in 2000.
     Revenues decreased $2.7 million due to lower direct merchandise sales to
 franchisees and the sale of Computer Renaissance in August 2000.  If royalties
 generated by the Computer Renaissance franchise system were excluded from the
 2000 royalty totals, royalties would have increased 15.8% from first quarter
 2000 to first quarter 2001.
     John L. Morgan, Chairman and Chief Executive Officer, commented, "The
 results for the first quarter show that we continue to make progress.  We
 remain cautious, however, as we continue to face expenses needed to improve
 our franchise brands."
     Grow Biz International, Inc. develops franchises and operates
 value-oriented retail brands for stores that buy, sell, trade and consign used
 and new merchandise.  At December 30, 2000, the Company had 878 franchise and
 retail stores in operation and an additional 27 franchises awarded but not
 open.  Of the stores in operation, there were 527 Play It Again Sports(R),
 233 Once Upon A Child(R), 74 Music Go Round(R), 18 ReTool(R) and 26 Plato's
 Closet(R) stores.
 
     This press release contains forward-looking statements within the meaning
 of the safe harbor provisions of Section 21E of the Securities Exchange Act of
 1934, as amended (the "Exchange Act"), relating to future events or the future
 financial performance of the Company including statements with respect to the
 strength of the Company's operating position in the future and future results
 from operations.  Such forward-looking statements are only predictions or
 statements of intention subject to risks and uncertainties and actual events
 or results could differ materially from those anticipated.  Because actual
 result may differ, shareholders and prospective investors are cautioned not to
 place undue reliance on such forward-looking statements.
 
 
                            GROW BIZ INTERNATIONAL, INC.
                              CONDENSED BALANCE SHEETS
 
                                                    March 31,    December 30,
                                                      2001           2000
                                   ASSETS
     Current Assets:
       Cash and cash equivalents                  $ 3,827,100     $2,005,100
       Receivables, less allowance
        for doubtful accounts of $971,500
        and $943,500                                5,433,500      6,170,300
       Inventories                                  1,212,400      1,367,200
       Prepaid expenses and other                     475,100        396,700
       Deferred income taxes                        2,290,000      2,290,000
          Total current assets                     13,238,100     12,229,300
 
       Long-term receivables                          300,200        326,200
       Property and equipment, net                  1,286,900      1,451,800
 
       Other assets, net                              666,300        713,500
                                                  $15,491,500    $14,720,800
 
                          LIABILITIES AND SHAREHOLDERS' EQUITY
     Current Liabilities:
       Accounts payable                           $ 2,861,700     $2,864,000
       Accrued liabilities                          2,817,900      2,469,200
       Current maturities of long-term debt           693,500        827,400
       Current deferred revenue                       708,500        676,000
          Total current liabilities                 7,081,600      6,836,600
 
     Long-Term Debt                                 3,819,800      3,961,000
 
     Deferred Gain on Sale of Building                410,600        456,400
 
     Shareholders' Equity:
       Common stock, no par, 10,000,000
        shares authorized, 5,386,433 shares
        issued and outstanding for both periods     1,419,900      1,419,900
       Common stock warrants                          822,000        822,000
       Retained earnings                            1,937,600      1,224,900
 
     Total shareholders' equity                     4,179,500      3,466,800
                                                  $15,491,500    $14,720,800
 
 
                          GROW BIZ INTERNATIONAL, INC.
                       CONDENSED STATEMENTS OF OPERATIONS
 
                                                      Three Months Ended
                                               March 31, 2001   March 25, 2000
     REVENUE:
       Merchandise sales                           $5,651,100     $8,268,400
       Royalties                                    3,974,500      4,183,300
       Franchise fees                                 162,500        151,200
       Other                                          364,200        204,400
          Total revenue                            10,152,300     12,807,300
 
     COST OF MERCHANDISE SOLD                       4,851,300      7,113,700
 
     SELLING, GENERAL AND ADMINISTRATIVE EXPENSES   4,003,800      5,313,400
 
          Income from operations                    1,297,200        380,200
 
     INTEREST EXPENSE                                (125,000)      (339,000)
 
          Income before income taxes                1,172,200         41,200
 
     PROVISION FOR INCOME TAXES                      (459,500)       (16,100)
 
     NET INCOME                                      $712,700       $ 25,100
 
     NET INCOME PER COMMON SHARE - BASIC                 $.13           $.00
 
     WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC    5,386,433      5,357,774
 
     NET INCOME PER COMMON SHARE - DILUTED               $.13           $.00
 
     WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED  5,510,141      5,357,774
 
 SOURCE  Grow Biz International, Inc.