Russ Berrie and Company, Inc. Reports First Quarter Results

Updates 2001 Guidance



Apr 26, 2001, 01:00 ET from Russ Berrie and Company, Inc.

    OAKLAND, N.J., April 26 /PRNewswire/ -- RUSS BERRIE AND COMPANY, INC.
 (NYSE:   RUS) today reported results for its first quarter ended March 31, 2001.
     Net sales for the first quarter was $75.9 million compared to net sales of
 $78.3 million in the first quarter of 2000, in line with the Company's
 previously announced guidance.  In early April, the Company reported that net
 sales would be at the low end of its expectations due to the uncertain
 economic environment and retailers' current "wait and see" attitude.  In
 addition, net sales for the first quarter of 2001 would have been
 approximately $1.8 million higher if first quarter 2000 exchange rates had
 remained in effect.  Net income for the quarter was $8.7 million, or $0.43 per
 diluted share, compared to $11.8 million, or $0.57 per diluted share, in the
 first quarter of 2000.  The Company's results for the first quarter ended
 March 31, 2001 were largely impacted by lower gross profits due to reduced
 volumes and product mix, the front-end loading of the Company's strategic
 investment in an expanded sales force and the unfavorable impact of a stock
 option repricing in 2000.
     Russ Berrie, Chairman, commented, "Our results in the first quarter did
 reflect the softness in the market as retailers continue to manage their
 inventory levels downward.  During the quarter we continued with the planned
 ramp up in our sales force and, by year end, expect 35% more salespeople in
 the field compared to 2000 levels.  As these new salespeople get up to speed,
 we expect to be able to increase our penetration in the marketplace and see
 improved shipments in the second half of the year.  Based on our most recent
 projections, we now believe our top-line and bottom-line growth for the full
 year 2001 will approximate 8%."
     During the first quarter, the Company's product line was strengthened with
 new product introductions such as "An Angel in My Pocket(TM)", silver-plated
 pewter coins with inspirational messages, and the "Star-Scopes(TM)" zodiac
 bears.  Additionally, the Company introduced a number of new picture frames
 and several new exciting additions to the "Russ(R) Baby(TM)" line including
 "Porcelain Birthstone Keepsake Boxes(TM)", baby trinket boxes of the month,
 and a new baby concept called "Bright Beginnings(TM)".
     Mr. Berrie added, "With an expanded sales force, better geographic
 coverage and the continued strength of our product portfolio, we expect to
 reap the benefits when retailers begin to rebuild their inventories."
     Russ Berrie and Company will hold a conference call at 4:15 PM ET today to
 discuss its financial results and continuing business plans.  Interested
 parties are invited to listen to the call live over the Internet at
 http://www.vcall.com .  A replay of the call will also be available.
 
     Russ Berrie and Company, Inc., "The Gift Company for Today's Lifestyle,"
 designs, develops, markets and distributes approximately 6,000 seasonal and
 everyday gift products to retail stores in the United States and worldwide.
 These products include plush, picture frames, candles, figurines, tabletop,
 ornaments and home decor gifts based on current fashions and trends.
 
     Note:  This New Release contains certain forward-looking statements.
 Additional written and oral forward-looking statements may be made by the
 Company from time to time in Securities and Exchange Commission (SEC) filings
 and otherwise.  The Private Securities Litigation Reform Act of 1995 provides
 a safe-harbor for forward-looking statements.  These statements may be
 identified by the use of forward-looking words or phrases including, but not
 limited to, "anticipate," "believe," "expect," "intend," "may," "planned,"
 "potential," "should," "will" or "would."  The Company cautions readers that
 results predicted by forward-looking statements, including, without
 limitation, those relating to the Company's future business prospects,
 revenues, working capital, liquidity, capital needs, interest costs and income
 are subject to certain risks and uncertainties that could cause actual results
 to differ materially from those indicated in the forward-looking statements.
 Specific risks and uncertainties include, but are not limited to, the
 Company's ability to continue to manufacture its products in the Far East, the
 seasonality of revenues, the actions of competitors, ability to increase
 production capacity, price competition, the effects of government regulation,
 possible delays in the introduction of new products, customer acceptance of
 products, issues related to the start up of the Company's recently announced
 Russ Trading division, changes in foreign currency exchange rates, issues
 related to the Company's computer systems and other factors.
 
 
                         RUSS BERRIE AND COMPANY, INC.
                               FINANCIAL SUMMARY
                                  (Unaudited)
                 (Dollars in thousands, except per share data)
 
                                                        Three Months Ended
                                                             March 31,
                                                       2001            2000
     Net sales (A)                                    $75,929        $78,279
     Cost of sales (A)                                 33,714         32,716
       Gross profit (A)                                42,215         45,563
     Selling, general and administrative expenses (A)  30,890         29,518
     Investment and other income - net                  1,778          1,725
     Income before taxes                               13,103         17,770
     Provision for income taxes                         4,380          5,931
     Net income                                        $8,723        $11,839
     Net income per share:
       Basic                                            $0.44          $0.58
       Diluted                                          $0.43          $0.57
     Weighted average shares
       Basic                                       19,939,000     20,574,000
       Diluted                                     20,085,000     20,620,000
 
 
 (A) Net sales, Cost of sales, Gross profit and Selling, general and
 administrative expenses for the three months ended     March 31, 2000 have
 been restated to conform to the presentation for the three months ended March
 31, 2001 representing the Company's application of the Emerging Issues Task
 Force Issue 00-10, _Accounting for Shipping and Handling Fees and Costs_ .
 
 
                         RUSS BERRIE AND COMPANY, INC.
                          SELECTED BALANCE SHEET DATA
                                  (Unaudited)
                             (Dollars in thousands)
 
 
                                     March 31,    December 31,    March 31,
                                       2001           2000           2000
 
     Cash, cash equiv. and
      marketable securities         $229,200        $218,826      $204,544
     Accounts receivable - net        61,721          58,673        66,507
     Inventories - net                41,146          47,430        40,823
     Other current assets              9,990          12,136        16,259
     Property, plant and equipment
      and other assets                29,431          29,944        31,090
     Total assets                   $371,488        $367,009      $359,223
 
     Current liabilities             $30,236         $32,418       $34,178
     Shareholders' equity            341,252         334,591       325,045
     Total liabilities and
      shareholders' equity          $371,488        $367,009      $359,223
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X42557736
 
 

SOURCE Russ Berrie and Company, Inc.
    OAKLAND, N.J., April 26 /PRNewswire/ -- RUSS BERRIE AND COMPANY, INC.
 (NYSE:   RUS) today reported results for its first quarter ended March 31, 2001.
     Net sales for the first quarter was $75.9 million compared to net sales of
 $78.3 million in the first quarter of 2000, in line with the Company's
 previously announced guidance.  In early April, the Company reported that net
 sales would be at the low end of its expectations due to the uncertain
 economic environment and retailers' current "wait and see" attitude.  In
 addition, net sales for the first quarter of 2001 would have been
 approximately $1.8 million higher if first quarter 2000 exchange rates had
 remained in effect.  Net income for the quarter was $8.7 million, or $0.43 per
 diluted share, compared to $11.8 million, or $0.57 per diluted share, in the
 first quarter of 2000.  The Company's results for the first quarter ended
 March 31, 2001 were largely impacted by lower gross profits due to reduced
 volumes and product mix, the front-end loading of the Company's strategic
 investment in an expanded sales force and the unfavorable impact of a stock
 option repricing in 2000.
     Russ Berrie, Chairman, commented, "Our results in the first quarter did
 reflect the softness in the market as retailers continue to manage their
 inventory levels downward.  During the quarter we continued with the planned
 ramp up in our sales force and, by year end, expect 35% more salespeople in
 the field compared to 2000 levels.  As these new salespeople get up to speed,
 we expect to be able to increase our penetration in the marketplace and see
 improved shipments in the second half of the year.  Based on our most recent
 projections, we now believe our top-line and bottom-line growth for the full
 year 2001 will approximate 8%."
     During the first quarter, the Company's product line was strengthened with
 new product introductions such as "An Angel in My Pocket(TM)", silver-plated
 pewter coins with inspirational messages, and the "Star-Scopes(TM)" zodiac
 bears.  Additionally, the Company introduced a number of new picture frames
 and several new exciting additions to the "Russ(R) Baby(TM)" line including
 "Porcelain Birthstone Keepsake Boxes(TM)", baby trinket boxes of the month,
 and a new baby concept called "Bright Beginnings(TM)".
     Mr. Berrie added, "With an expanded sales force, better geographic
 coverage and the continued strength of our product portfolio, we expect to
 reap the benefits when retailers begin to rebuild their inventories."
     Russ Berrie and Company will hold a conference call at 4:15 PM ET today to
 discuss its financial results and continuing business plans.  Interested
 parties are invited to listen to the call live over the Internet at
 http://www.vcall.com .  A replay of the call will also be available.
 
     Russ Berrie and Company, Inc., "The Gift Company for Today's Lifestyle,"
 designs, develops, markets and distributes approximately 6,000 seasonal and
 everyday gift products to retail stores in the United States and worldwide.
 These products include plush, picture frames, candles, figurines, tabletop,
 ornaments and home decor gifts based on current fashions and trends.
 
     Note:  This New Release contains certain forward-looking statements.
 Additional written and oral forward-looking statements may be made by the
 Company from time to time in Securities and Exchange Commission (SEC) filings
 and otherwise.  The Private Securities Litigation Reform Act of 1995 provides
 a safe-harbor for forward-looking statements.  These statements may be
 identified by the use of forward-looking words or phrases including, but not
 limited to, "anticipate," "believe," "expect," "intend," "may," "planned,"
 "potential," "should," "will" or "would."  The Company cautions readers that
 results predicted by forward-looking statements, including, without
 limitation, those relating to the Company's future business prospects,
 revenues, working capital, liquidity, capital needs, interest costs and income
 are subject to certain risks and uncertainties that could cause actual results
 to differ materially from those indicated in the forward-looking statements.
 Specific risks and uncertainties include, but are not limited to, the
 Company's ability to continue to manufacture its products in the Far East, the
 seasonality of revenues, the actions of competitors, ability to increase
 production capacity, price competition, the effects of government regulation,
 possible delays in the introduction of new products, customer acceptance of
 products, issues related to the start up of the Company's recently announced
 Russ Trading division, changes in foreign currency exchange rates, issues
 related to the Company's computer systems and other factors.
 
 
                         RUSS BERRIE AND COMPANY, INC.
                               FINANCIAL SUMMARY
                                  (Unaudited)
                 (Dollars in thousands, except per share data)
 
                                                        Three Months Ended
                                                             March 31,
                                                       2001            2000
     Net sales (A)                                    $75,929        $78,279
     Cost of sales (A)                                 33,714         32,716
       Gross profit (A)                                42,215         45,563
     Selling, general and administrative expenses (A)  30,890         29,518
     Investment and other income - net                  1,778          1,725
     Income before taxes                               13,103         17,770
     Provision for income taxes                         4,380          5,931
     Net income                                        $8,723        $11,839
     Net income per share:
       Basic                                            $0.44          $0.58
       Diluted                                          $0.43          $0.57
     Weighted average shares
       Basic                                       19,939,000     20,574,000
       Diluted                                     20,085,000     20,620,000
 
 
 (A) Net sales, Cost of sales, Gross profit and Selling, general and
 administrative expenses for the three months ended     March 31, 2000 have
 been restated to conform to the presentation for the three months ended March
 31, 2001 representing the Company's application of the Emerging Issues Task
 Force Issue 00-10, _Accounting for Shipping and Handling Fees and Costs_ .
 
 
                         RUSS BERRIE AND COMPANY, INC.
                          SELECTED BALANCE SHEET DATA
                                  (Unaudited)
                             (Dollars in thousands)
 
 
                                     March 31,    December 31,    March 31,
                                       2001           2000           2000
 
     Cash, cash equiv. and
      marketable securities         $229,200        $218,826      $204,544
     Accounts receivable - net        61,721          58,673        66,507
     Inventories - net                41,146          47,430        40,823
     Other current assets              9,990          12,136        16,259
     Property, plant and equipment
      and other assets                29,431          29,944        31,090
     Total assets                   $371,488        $367,009      $359,223
 
     Current liabilities             $30,236         $32,418       $34,178
     Shareholders' equity            341,252         334,591       325,045
     Total liabilities and
      shareholders' equity          $371,488        $367,009      $359,223
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X42557736
 
 SOURCE  Russ Berrie and Company, Inc.