RUSS BERRIE CO INC 
By Net Sales Increased 7.1% to
Mr. Crain continued, "At the same time, we have continued to focus on repositioning our Gift segment and developing fresh products, while tightly managing our cost structure. Although Gift industry trends continue to be very challenging and we have been working against the anniversary of our strong 2007 performance of Shining Stars, we continue to invest in product development, brand building, sales tools and operational efficiencies to position this segment for the future."
Third Quarter 2008 Results
Consolidated net sales for the third quarter of 2008 increased 7.1% to
Consolidated gross profit in the third quarter of 2008 was
Consolidated SG&A expenses for the third quarter of 2008 were
As a result of the foregoing, consolidated net income was
Year-to-Date Results
Consolidated net sales for the first nine months of 2008 increased 10.1% to
Consolidated net loss for the first nine months of 2008 was
Mr. Crain concluded, "While there has been significant financial and credit market turmoil recently, we believe that our capital structure remains strong. Overall, we believe our business fundamentals, coupled with our solid business model, will allow us to remain nimble during this challenging time and position us well for the future."
Conference Call Information
The conference call, which will be held at
About
The Infant & Juvenile segment is composed of four wholly-owned subsidiaries: Kids Line, LLC; Sassy, Inc.; LaJobi, Inc; and CoCaLo, Inc. The Kids Line division designs and markets infant bedding and related nursery accessories. The Sassy division offers products and collections such as infant development toys, teething, feeding, bathing and baby care products. LaJobi is a leading designer, manufacturer, marketer and distributor of branded infant furniture and related products. CoCaLo is a leading manufacturer and distributor of infant bedding and accessory products under the brands of CoCaLo Baby, CoCaLo Couture and CoCaLo Naturals. The businesses also license brands for select categories and markets including Disney(R), Leap Frog(TM), Carter's(R), Graco(R) for cribs and Serta(R) for crib mattresses.
The Gift segment encompasses seasonal and everyday plush and other gift products. The Gift segment markets its products primarily under the RUSS(R) and APPLAUSE(R) brand names and also produces product in select markets and categories under licenses that include Shining Stars(R), Raggedy Ann(TM), Curious George(TM), Simpsons(TM) and a variety of other well-recognized trademarks.
More information about the Company can be found at: www.russberrie.com.
Note: This press 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", "project", "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, order backlog, 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 those set forth under Item 1A, "Risk Factors", of the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
(tables to follow)
RUSS BERRIE AND COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Share and Per Share Data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
Net sales $108,075 $100,928 $271,692 $246,715
Cost of sales 69,080 60,569 173,636 146,661
Gross profit 38,995 40,359 98,056 100,054
Selling, general and
administrative expenses 29,015 27,132 92,296 79,270
Operating income 9,980 13,227 5,760 20,784
Other expenses (1,797) (716) (4,774) (3,007)
Income before income
tax provision 8,183 12,511 986 17,777
Income tax (benefit)
provision (22) (1,796) 2,920 559
Net income (loss) $8,205 $14,307 $(1,934) $17,218
Net income (loss) per share:
Basic $0.39 $0.68 $(0.09) $0.82
Diluted $0.39 $0.67 $(0.09) $0.81
Weighted average shares:
Basic 21,300,000 21,157,000 21,300,000 21,105,000
Diluted 21,310,000 21,318,000 21,300,000 21,257,000
RUSS BERRIE AND COMPANY, INC.
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)
September December
30, 2008 31, 2007
Assets
Current assets:
Cash and cash equivalents $13,620 $21,925
Accounts receivable, net 78,288 64,077
Inventories, net 65,033 59,069
Other current assets 5,429 5,419
Long-term assets 236,522 191,018
Total assets $398,892 $341,508
Short-term debt $29,538 $23,344
Other current liabilities 70,542 64,013
Long-term liabilities 96,785 49,512
Total liabilities 196,865 136,869
Total shareholders' equity 202,027 204,639
Total liabilities and shareholders' equity $398,892 $341,508
AT THE COMPANY AT FINANCIAL DYNAMICS
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Marc S. Goldfarb Erica Pettit / Leigh Parrish
Senior Vice President & General Counsel General Information
201-337-9000 212-850-5600
SOURCE
