ORLANDO, Fla., Sept. 21, 2004 (PRIMEZONE) -- Action Products International, Inc. (Nasdaq:APII), a leading toy designer and manufacturer of educational and positive, non-violent branded toys for pre-school children through pre-teens, today announced that the company achieved a profit for the month of August reversing a series of losses recorded during the first seven months. Sales increased over 55% compared to the prior month of July, as a result of merchants delaying shipments to later in the quarter. The Curiosity Kits(r) brand has been slowly gathering momentum, as inventory shortages related to the sourcing transition are resolved. However, some September shipments are expected to be delayed due to the effect of hurricanes Charley and Frances.
"With a continuing emphasis on the bottom line, the company has been lowering its break even point," said Robert Burrows, CFO. "Many of the adjustments we are making now, should be reflected in future quarters. Our balance sheet remains strong. However, we do not expect to meet last year's quarterly sales and profit results. Barring additional weather related impacts, our current forecast for the month of September anticipates a sales and profit gain for the month compared to 2003."
Jerry Sage, Vice President of Sales and Marketing said, "2004 is proving to be a challenging year, however we are responding. The new markets that we have opened are a reflection of the changes in the toy industry and an indication of the fact that many of our items are viable in areas other than in the traditional toy markets. Our initial marketing costs are a reflection of the investment in new channels, which we expect to seriously capitalize on in 2005. For example, our products will appear in over 30 seasonal, consumer and retailer catalogs this year and even more next year. Our main emphasis is on profitability in 2004 and growth in 2005."
ABOUT ACTION PRODUCTS INTERNATIONAL
Action Products International, Inc. is a leading designer and manufacturer of educational and positive branded toys emphasizing fun. Quality brands including JAY JAY THE JET PLANE Wooden Adventure System(tm), I Dig Dinosaurs(r) and I Dig Treasures(r) excavation activity kits, Space Voyagers(r) ("The most authentic Space Toys on Earth"), Wild Climbers(tm) and Climb@Tron(tm) window-climbing animals and robots, Play and Store(tm) themed playsets, Kidz Workshop(tm) wooden projects, and Drop Zone Extreme(tm) parachute toys and Curiosity Kits(r), a leading, award-winning specialty brand for kids' craft and activity kits. Its products are marketed and sold worldwide to specialty retailers, museums, toy stores, theme parks, attractions, zoos, catalog companies, Internet retailers and educational markets.
For more information on Action Products' toys, email marketing@apii.com or visit the Company's web site at www.apii.com.
Any statements that are not historical facts contained in this release are forward-looking statements. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions and intellectual property rights and the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.