Specialty Catalog Corp. Announces First Quarter 2001 Results 2001 EPS of 9 Cents vs. 2000 Loss of 1 Cent

Apr 25, 2001, 01:00 ET from SPECIALTY CATALOG CORP.

    SOUTH EASTON, Mass., April 25 /PRNewswire/ -- SPECIALTY CATALOG CORP.
 (Nasdaq:   CTLG), America's leading retailer of women's wigs and hairpieces,
 today announced first quarter 2001 net income of $393,502, or $.09 per diluted
 share, compared with a first quarter 2000 net loss of $39,629, or a loss of
 $0.01 per diluted share.
     Commenting on the favorable comparisons, Joseph J. Grabowski, President
 and Chief Executive Officer of the Company, noted, "The results of the first
 quarter of 2001 are encouraging and give credence to the changes we put into
 place last year.  Paula Young(R), our core wig and hairpiece business,
 benefited from reduced operating expense ratios and merchandise return rate
 improvements compared to last year.  Also contributing to the improvement of
 the first quarter of 2001 over the first quarter of 2000 was a reduction in
 the advertising budget of Paula Young.  Our British subsidiary, Daxbourne
 International Limited, increased its EBITDA contribution by fifteen percent
 over last year, and Western Schools(R), our mail order continuing education
 business, repeated the strong first quarter it had last year.  American
 Healthcare Institute, Inc., our other continuing education unit, was burdened
 with approximately $200,000 of relocation costs in the first quarter of 2001.
 AHI is now moved into our South Easton, MA facility, its management team has
 been assembled and they can now focus on the challenges facing this business
 unit."
     Mr. Grabowski continued his comments, "Against the backdrop of other
 retailers' disappointing earnings reports, we are not only pleased by the
 first quarter results, we are also buoyed by the trends we are seeing in our
 business.  For example, our new account solicitation programs have produced
 better than planned results, we continue to grow the Especially Yours(R)
 franchise, and the first Paula Young catalog distributed by Daxbourne after
 the acquisition of our UK licensee's business is performing as expected."
     Specialty Catalog Corp. is a direct marketer targeting niche consumer
 product categories through a variety of catalogs and web sites. The company is
 the leading U.S. retailer of women's wigs and hairpieces through its Paula
 Young catalog and web site.    The company also offers African-American women
 a broad selection of quality wigs, hairpieces, apparel and related products
 through its Especially Yours catalog and web site. Through its subsidiary,
 Daxbourne International Limited, the company is a leading retailer and
 wholesaler of women's wigs and hairpieces in the United Kingdom.  The company
 also markets continuing education courses to nurses and CPAs under its Western
 Schools brand, and markets seminars and conferences to nurses and other
 healthcare professionals under its American Healthcare Institute brand.
 
     Statements contained in this press release not historical in nature are
 forward-looking statements as provided by the Private Securities Reform
 Litigation Act of 1995.  Such statements are subject to a variety of risks and
 uncertainties. There are a number of factors that could cause the company's
 actual results to differ materially from those expressed in, or suggested by,
 any forward-looking statements made by the company. These factors include, but
 are not limited to: the company's ability to achieve its revenue goals which
 are dependent on the effectiveness of the company's catalogs and marketing and
 advertising programs; the company's ability to effectively manage its costs
 and expenses which are affected by, among other items, changes in postal
 rates, paper prices and media costs; the company's pursuit of new branding
 strategies and growth opportunities, including acquisitions and assimilation
 of acquired companies; changes in the company's management team; and the
 company's implementation of new information systems.  The factors also
 include, but again are not limited to, those risks set forth in the company's
 Annual Report on Form 10-K, periodic reports on Form 10-Q and other filings
 made with the Securities and Exchange Commission.
     VISIT OUR WEB SITES AT: www.paulayoung.com, www.especiallyyours.com,
 www.wig.com, www.westernschools.com, www.ahi-online.com, and www.ctlg.com.
 
                            SPECIALTY CATALOG CORP.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                         Thirteen Weeks Ended
                               March 31, 2001                April 1, 2000
     Net Sales:
       Revenues               86.3%   $14,268,773        86.4%   $13,881,753
       Shipping &
        handling income       13.6%     2,249,472        13.1%     2,111,642
       Royalties               0.1%        24,002         0.5%        81,547
            Total net sales  100.0%    16,542,247       100.0%    16,074,942
 
     Cost of sales            37.8%     6,247,217        36.3%     5,830,139
            Gross profit      62.2%    10,295,030        63.7%    10,244,803
 
     Operating expenses       53.9%     8,914,602        60.3%     9,696,292
     Depreciation and
      amortization             2.7%       450,156         2.5%       399,701
            Total operating
             expenses         56.6%     9,364,758        62.8%    10,095,993
 
     Income from operations    5.6%       930,272         0.9%       148,810
     Interest expense - net    1.6%       263,320         1.3%       215,999
     Income (loss) before
      income taxes             4.0%       666,952        -0.4%      (67,189)
     Income tax provision
      (benefit)                1.7%       273,450        -0.2%      (27,560)
     Net income (loss)         2.4%       393,502        -0.2%      (39,629)
     Other comprehensive
      income (loss)           -0.9%     (153,807)         0.0%         4,667
     Comprehensive
      income (loss)            1.4%      $239,695        -0.2%     $(34,962)
 
     Earnings per share, basic EPS:
       Net income (loss)
        per share                           $0.09                    $(0.01)
       Weighted average
        shares
        outstanding                     4,337,886                  4,351,386
 
     Earnings per share, diluted EPS:
       Net income (loss)
        per share                           $0.09                    $(0.01)
       Weighted average
        shares
        outstanding                     4,497,058                  4,351,386
 
                    SELECTED CONSOLIDATED BALANCE SHEET DATA
 
                               March 31, 2001 December 30, 2000   April 1, 2000
                                                   (unaudited)
                                         Assets
     Total Current Assets       $ 10,680,307    $ 10,842,516   $11,741,752
     Total Assets               $ 23,532,653    $ 23,703,504   $25,265,074
 
                                 Liabilities & Shareholders' Equity
     Total Current Liabilities    $8,071,104      $7,547,659   $15,073,338
     Total Liabilities          $ 14,565,042    $ 14,975,588   $17,561,105
     Shareholders' Equity         $8,967,611      $8,727,916    $7,703,969
 
      COMPANY CONTACT:
      Thomas McCain, Senior VP & CFO
      508-238-0199 X 2580
      Tmccain@CTLG.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X70614871
 
 

SOURCE SPECIALTY CATALOG CORP.
    SOUTH EASTON, Mass., April 25 /PRNewswire/ -- SPECIALTY CATALOG CORP.
 (Nasdaq:   CTLG), America's leading retailer of women's wigs and hairpieces,
 today announced first quarter 2001 net income of $393,502, or $.09 per diluted
 share, compared with a first quarter 2000 net loss of $39,629, or a loss of
 $0.01 per diluted share.
     Commenting on the favorable comparisons, Joseph J. Grabowski, President
 and Chief Executive Officer of the Company, noted, "The results of the first
 quarter of 2001 are encouraging and give credence to the changes we put into
 place last year.  Paula Young(R), our core wig and hairpiece business,
 benefited from reduced operating expense ratios and merchandise return rate
 improvements compared to last year.  Also contributing to the improvement of
 the first quarter of 2001 over the first quarter of 2000 was a reduction in
 the advertising budget of Paula Young.  Our British subsidiary, Daxbourne
 International Limited, increased its EBITDA contribution by fifteen percent
 over last year, and Western Schools(R), our mail order continuing education
 business, repeated the strong first quarter it had last year.  American
 Healthcare Institute, Inc., our other continuing education unit, was burdened
 with approximately $200,000 of relocation costs in the first quarter of 2001.
 AHI is now moved into our South Easton, MA facility, its management team has
 been assembled and they can now focus on the challenges facing this business
 unit."
     Mr. Grabowski continued his comments, "Against the backdrop of other
 retailers' disappointing earnings reports, we are not only pleased by the
 first quarter results, we are also buoyed by the trends we are seeing in our
 business.  For example, our new account solicitation programs have produced
 better than planned results, we continue to grow the Especially Yours(R)
 franchise, and the first Paula Young catalog distributed by Daxbourne after
 the acquisition of our UK licensee's business is performing as expected."
     Specialty Catalog Corp. is a direct marketer targeting niche consumer
 product categories through a variety of catalogs and web sites. The company is
 the leading U.S. retailer of women's wigs and hairpieces through its Paula
 Young catalog and web site.    The company also offers African-American women
 a broad selection of quality wigs, hairpieces, apparel and related products
 through its Especially Yours catalog and web site. Through its subsidiary,
 Daxbourne International Limited, the company is a leading retailer and
 wholesaler of women's wigs and hairpieces in the United Kingdom.  The company
 also markets continuing education courses to nurses and CPAs under its Western
 Schools brand, and markets seminars and conferences to nurses and other
 healthcare professionals under its American Healthcare Institute brand.
 
     Statements contained in this press release not historical in nature are
 forward-looking statements as provided by the Private Securities Reform
 Litigation Act of 1995.  Such statements are subject to a variety of risks and
 uncertainties. There are a number of factors that could cause the company's
 actual results to differ materially from those expressed in, or suggested by,
 any forward-looking statements made by the company. These factors include, but
 are not limited to: the company's ability to achieve its revenue goals which
 are dependent on the effectiveness of the company's catalogs and marketing and
 advertising programs; the company's ability to effectively manage its costs
 and expenses which are affected by, among other items, changes in postal
 rates, paper prices and media costs; the company's pursuit of new branding
 strategies and growth opportunities, including acquisitions and assimilation
 of acquired companies; changes in the company's management team; and the
 company's implementation of new information systems.  The factors also
 include, but again are not limited to, those risks set forth in the company's
 Annual Report on Form 10-K, periodic reports on Form 10-Q and other filings
 made with the Securities and Exchange Commission.
     VISIT OUR WEB SITES AT: www.paulayoung.com, www.especiallyyours.com,
 www.wig.com, www.westernschools.com, www.ahi-online.com, and www.ctlg.com.
 
                            SPECIALTY CATALOG CORP.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                         Thirteen Weeks Ended
                               March 31, 2001                April 1, 2000
     Net Sales:
       Revenues               86.3%   $14,268,773        86.4%   $13,881,753
       Shipping &
        handling income       13.6%     2,249,472        13.1%     2,111,642
       Royalties               0.1%        24,002         0.5%        81,547
            Total net sales  100.0%    16,542,247       100.0%    16,074,942
 
     Cost of sales            37.8%     6,247,217        36.3%     5,830,139
            Gross profit      62.2%    10,295,030        63.7%    10,244,803
 
     Operating expenses       53.9%     8,914,602        60.3%     9,696,292
     Depreciation and
      amortization             2.7%       450,156         2.5%       399,701
            Total operating
             expenses         56.6%     9,364,758        62.8%    10,095,993
 
     Income from operations    5.6%       930,272         0.9%       148,810
     Interest expense - net    1.6%       263,320         1.3%       215,999
     Income (loss) before
      income taxes             4.0%       666,952        -0.4%      (67,189)
     Income tax provision
      (benefit)                1.7%       273,450        -0.2%      (27,560)
     Net income (loss)         2.4%       393,502        -0.2%      (39,629)
     Other comprehensive
      income (loss)           -0.9%     (153,807)         0.0%         4,667
     Comprehensive
      income (loss)            1.4%      $239,695        -0.2%     $(34,962)
 
     Earnings per share, basic EPS:
       Net income (loss)
        per share                           $0.09                    $(0.01)
       Weighted average
        shares
        outstanding                     4,337,886                  4,351,386
 
     Earnings per share, diluted EPS:
       Net income (loss)
        per share                           $0.09                    $(0.01)
       Weighted average
        shares
        outstanding                     4,497,058                  4,351,386
 
                    SELECTED CONSOLIDATED BALANCE SHEET DATA
 
                               March 31, 2001 December 30, 2000   April 1, 2000
                                                   (unaudited)
                                         Assets
     Total Current Assets       $ 10,680,307    $ 10,842,516   $11,741,752
     Total Assets               $ 23,532,653    $ 23,703,504   $25,265,074
 
                                 Liabilities & Shareholders' Equity
     Total Current Liabilities    $8,071,104      $7,547,659   $15,073,338
     Total Liabilities          $ 14,565,042    $ 14,975,588   $17,561,105
     Shareholders' Equity         $8,967,611      $8,727,916    $7,703,969
 
      COMPANY CONTACT:
      Thomas McCain, Senior VP & CFO
      508-238-0199 X 2580
      Tmccain@CTLG.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X70614871
 
 SOURCE  SPECIALTY CATALOG CORP.