ORLANDO, Fla., Nov. 9, 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 with the recent arrivals of Curiosity Kits(r) inventory and new items in the company's other brands, based on October sales results and pre-orders for the balance of the quarter, the company projects sales gains for the fourth quarter of 2004 compared to the fourth quarter of 2003. Sales for the month of October reached $1,288,000 vs. $1,199,000 in 2003, a gain of 7.4%.
"We consider these figures meaningful," said Ronald Kaplan, CEO, "because our mass-market toy retailer sales in October 2004 decreased by approximately 70%, from 2003. We continue to open up new channels of distribution as well as to increase sales to our existing retail dealers. The latest sales gain has set the picture for an overall increase in yearly sales for 2004 from 2003 and that means that the sales for 2004 would set a new company record. Additionally, we expect to report a smaller loss than in 2003 and anticipate further sales gains in 2005."
"We did not reach our profitability goal and as a stockholder, I can say that we are disappointed. However, we are addressing that issue and our goal is for profits in 2005 based on increasing sales and taking advantage of opportunities to better manage our budgets." Mr. Kaplan continued, "We are going to have a lot of new and exciting extensions to our brands, which we will show at Toy Fair in February. We expect to announce the acquisition of an exciting new license, which is expected to take us into new markets and we believe will have a strong impact beginning in the second half of 2005. The products associated with the new license will be designed to give Action Products good non-seasonal sales growth. These situations will add to our sales opportunities in our multiple distribution channels."
New products include an action figure female astronaut for the Space Voyager(r) line that should be in retail stores by November 15.
The company also announced that it anticipates that it will be instituting selective price increases in 2005 mainly due to the increase in plastic and transportation costs.
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, 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, 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.