The L.L. Knickerbocker Co., Inc. Reports Improved Fourth-Quarter and Year-End Results

Apr 17, 2001, 01:00 ET from The L.L. Knickerbocker Co., Inc.

    LAKE FOREST, Calif., April 17 /PRNewswire/ -- The L.L. Knickerbocker Co.,
 Inc. (OTC Bulletin Board:   KNIC) today reported its financial results for the
 fourth quarter and fiscal year ended December 31, 2000.
     Fourth-quarter net sales in 2000 were $8.1 million, 19.0% lower than the
 $10.0 million in the prior year period.  Fourth-quarter net loss decreased by
 46.4% to $3.6 million, or $.08 per diluted share (on 47.0 million weighted
 average shares outstanding), from $6.7 million, or $.15 per diluted share
 (on 43.0 million weighted average shares outstanding), in the same period a
 year ago.  Included in fourth quarter 2000 net loss are impairment write-downs
 of goodwill and property of $2.0 million and professional fees in connection
 with the bankruptcy of 282,000.
     Net sales in 2000 were $30.3 million, 28.0% less than 1999 net sales of
 $42.2 million.  For the year, net loss decreased by 69.7% to $3.4 million, or
 $.07 per diluted share (on 47 million weighted average shares outstanding),
 from net loss of $11.2 million, or $.33 per diluted share (on 34.3 million
 weighted average shares outstanding) in 1999.  Included in the 2000 annual net
 loss are impairment write-downs of goodwill and property of $2.4 million,
 professional fees in connection with the bankruptcy of $1,080,000, and a gain
 on extinguishment of debentures of $3,355,000.
     "Excluding the non-recurring impairment write-downs, the Company's
 operating losses narrowed considerably in 2000," said Anthony Shutts,
 Chief Financial Officer of The L.L. Knickerbocker Co., Inc.  "For the second
 consecutive year, Knickerbocker generated positive cash flow from operations.
 The Company is continuing to make progress towards returning to
 profitability."
     As announced earlier, the Company believes it is in the final stages of
 its Chapter 11 reorganization.  Mr. Shutts added, "The Company is making
 progress with its Creditors' Committee towards formulating a workable
 restructuring of its debt.  We expect to submit a revised Plan of
 Reorganization in the near future that should pave the way for our exit from
 Chapter 11."
 
     The L.L. Knickerbocker Co., Inc. is a multi-brand collectible product,
 gift, toy and jewelry company that designs, develops, produces and markets
 products over diverse distribution channels.  The Company's products are sold
 through independent gift and collectible retailers, department stores,
 electronic retailers, Internet, and international distributors.  The Company
 is a major supplier of collectible products and fashion jewelry to the leading
 electronic retailer in the U.S.A.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995:  This news release contains forward-looking statements.  Such
 statements reflect the current views of the Company with respect to future
 events and are subject to certain risks, uncertainties and assumptions.
 Although the Company believes that the expectations reflected in such
 forward-looking statements are reasonable, should one or more of these risks
 or uncertainties materialize, or should underlying assumptions prove
 incorrect, actual future results or events may vary materially from those
 described herein.
 
     For further information, please contact:  The L.L. Knickerbocker Co.,
 Inc., Lake Forest, CA, Betty Glaze, 949-595-7900.
 
 
                                            Three months ended December 31,
                                                  2000             1999
 
     Sales, net of returns                    $8,076,000       $9,969,000
     Cost of sales                             4,454,000        7,654,000
     Gross profit                              3,622,000        2,315,000
     Advertising expense                         490,000          207,000
     Selling expense                           1,164,000        2,159,000
     General and administrative expense        3,016,000        5,479,000
     Write-down of goodwill                    1,255,000               --
     Write-down of property and equipment        782,000               --
     Operating income (loss)                  (3,085,000)      (5,530,000)
     Other income (expense), net                 (55,000)        (478,000)
     Interest expense                            146,000          312,000
     Income (loss) before reorganization
      items and income tax expense            (3,286,000)      (6,320,000)
     Reorganization items                        282,000          263,000
     Loss before income tax expense           (3,568,000)      (6,583,000)
     Income tax expense                            1,000           73,000
     Net loss                                ($3,569,000)     ($6,656,000)
     Diluted loss per share                       ($0.08)          ($0.15)
     Diluted weighted average shares
      outstanding                             46,987,728       43,040,852
 
 
                                                Year ended December 31,
                                                 2000             1999
 
     Sales, net of returns                   $30,345,000      $42,165,000
     Cost of sales                            17,429,000       25,155,000
     Gross profit                             12,916,000       17,010,000
     Advertising expense                         846,000        2,630,000
     Selling expense                           3,858,000        7,219,000
     General and administrative expense       10,780,000       15,577,000
     Write-down of goodwill                    1,255,000               --
     Write-down of property and equipment      1,182,000               --
     Operating loss                           (5,005,000)      (8,416,000)
     Other income (expense), net                 111,000         (235,000)
     Interest expense                            745,000        1,814,000
     Loss before reorganization items,
      income tax expense and
      extraordinary item                      (5,639,000)     (10,465,000)
     Reorganization items                      1,080,000          672,000
     Loss before income tax expense
      and extraordinary item                  (6,719,000)     (11,137,000)
     Income tax expense                           30,000           75,000
     Loss before extraordinary item          ($6,749,000)    ($11,212,000)
     Extraordinary item                        3,355,000               --
     Net Loss                                ($3,394,000)    ($11,212,000)
     Diluted loss per share                       ($0.07)          ($0.33)
     Diluted weighted average shares
      outstanding                             46,697,387       34,290,701
 
 

SOURCE The L.L. Knickerbocker Co., Inc.
    LAKE FOREST, Calif., April 17 /PRNewswire/ -- The L.L. Knickerbocker Co.,
 Inc. (OTC Bulletin Board:   KNIC) today reported its financial results for the
 fourth quarter and fiscal year ended December 31, 2000.
     Fourth-quarter net sales in 2000 were $8.1 million, 19.0% lower than the
 $10.0 million in the prior year period.  Fourth-quarter net loss decreased by
 46.4% to $3.6 million, or $.08 per diluted share (on 47.0 million weighted
 average shares outstanding), from $6.7 million, or $.15 per diluted share
 (on 43.0 million weighted average shares outstanding), in the same period a
 year ago.  Included in fourth quarter 2000 net loss are impairment write-downs
 of goodwill and property of $2.0 million and professional fees in connection
 with the bankruptcy of 282,000.
     Net sales in 2000 were $30.3 million, 28.0% less than 1999 net sales of
 $42.2 million.  For the year, net loss decreased by 69.7% to $3.4 million, or
 $.07 per diluted share (on 47 million weighted average shares outstanding),
 from net loss of $11.2 million, or $.33 per diluted share (on 34.3 million
 weighted average shares outstanding) in 1999.  Included in the 2000 annual net
 loss are impairment write-downs of goodwill and property of $2.4 million,
 professional fees in connection with the bankruptcy of $1,080,000, and a gain
 on extinguishment of debentures of $3,355,000.
     "Excluding the non-recurring impairment write-downs, the Company's
 operating losses narrowed considerably in 2000," said Anthony Shutts,
 Chief Financial Officer of The L.L. Knickerbocker Co., Inc.  "For the second
 consecutive year, Knickerbocker generated positive cash flow from operations.
 The Company is continuing to make progress towards returning to
 profitability."
     As announced earlier, the Company believes it is in the final stages of
 its Chapter 11 reorganization.  Mr. Shutts added, "The Company is making
 progress with its Creditors' Committee towards formulating a workable
 restructuring of its debt.  We expect to submit a revised Plan of
 Reorganization in the near future that should pave the way for our exit from
 Chapter 11."
 
     The L.L. Knickerbocker Co., Inc. is a multi-brand collectible product,
 gift, toy and jewelry company that designs, develops, produces and markets
 products over diverse distribution channels.  The Company's products are sold
 through independent gift and collectible retailers, department stores,
 electronic retailers, Internet, and international distributors.  The Company
 is a major supplier of collectible products and fashion jewelry to the leading
 electronic retailer in the U.S.A.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995:  This news release contains forward-looking statements.  Such
 statements reflect the current views of the Company with respect to future
 events and are subject to certain risks, uncertainties and assumptions.
 Although the Company believes that the expectations reflected in such
 forward-looking statements are reasonable, should one or more of these risks
 or uncertainties materialize, or should underlying assumptions prove
 incorrect, actual future results or events may vary materially from those
 described herein.
 
     For further information, please contact:  The L.L. Knickerbocker Co.,
 Inc., Lake Forest, CA, Betty Glaze, 949-595-7900.
 
 
                                            Three months ended December 31,
                                                  2000             1999
 
     Sales, net of returns                    $8,076,000       $9,969,000
     Cost of sales                             4,454,000        7,654,000
     Gross profit                              3,622,000        2,315,000
     Advertising expense                         490,000          207,000
     Selling expense                           1,164,000        2,159,000
     General and administrative expense        3,016,000        5,479,000
     Write-down of goodwill                    1,255,000               --
     Write-down of property and equipment        782,000               --
     Operating income (loss)                  (3,085,000)      (5,530,000)
     Other income (expense), net                 (55,000)        (478,000)
     Interest expense                            146,000          312,000
     Income (loss) before reorganization
      items and income tax expense            (3,286,000)      (6,320,000)
     Reorganization items                        282,000          263,000
     Loss before income tax expense           (3,568,000)      (6,583,000)
     Income tax expense                            1,000           73,000
     Net loss                                ($3,569,000)     ($6,656,000)
     Diluted loss per share                       ($0.08)          ($0.15)
     Diluted weighted average shares
      outstanding                             46,987,728       43,040,852
 
 
                                                Year ended December 31,
                                                 2000             1999
 
     Sales, net of returns                   $30,345,000      $42,165,000
     Cost of sales                            17,429,000       25,155,000
     Gross profit                             12,916,000       17,010,000
     Advertising expense                         846,000        2,630,000
     Selling expense                           3,858,000        7,219,000
     General and administrative expense       10,780,000       15,577,000
     Write-down of goodwill                    1,255,000               --
     Write-down of property and equipment      1,182,000               --
     Operating loss                           (5,005,000)      (8,416,000)
     Other income (expense), net                 111,000         (235,000)
     Interest expense                            745,000        1,814,000
     Loss before reorganization items,
      income tax expense and
      extraordinary item                      (5,639,000)     (10,465,000)
     Reorganization items                      1,080,000          672,000
     Loss before income tax expense
      and extraordinary item                  (6,719,000)     (11,137,000)
     Income tax expense                           30,000           75,000
     Loss before extraordinary item          ($6,749,000)    ($11,212,000)
     Extraordinary item                        3,355,000               --
     Net Loss                                ($3,394,000)    ($11,212,000)
     Diluted loss per share                       ($0.07)          ($0.33)
     Diluted weighted average shares
      outstanding                             46,697,387       34,290,701
 
 SOURCE  The L.L. Knickerbocker Co., Inc.