PRESS RELEASE: TRISTAR CORPORATION
For Immediate Release
For More Information, Call:
Mr. Robert M. Viola, Executive Vice President and Chief Financial Officer
(210) 402-2200
TRISTAR CORPORATION ANNOUNCES RECORD EARNINGS FOR THE THIRTEEN WEEKS AND FISCAL
YEAR ENDED AUGUST 26, 2000.
SAN ANTONIO, TEXAS, NOVEMBER 21, 2000 - TRISTAR CORPORATION (NASDAQ: TSAR) today
announced record earnings for the thirteen weeks and fiscal year ended August
26, 2000.
Net sales for the fourth fiscal quarter of 2000 were $16,509,000 as compared to
$14,043,000 for fiscal 1999, an increase of $2,466,000 or 17.6%. Net income for
the fiscal fourth quarter was $1,333,000 in 2000, almost double the net income
of $698,000 for the same period in 1999. Net income applicable to common stock
after giving effect to preferred stock dividends was $1,109,000 or $.06 per
diluted share and $502,000 or $.03 per diluted share in the respective fiscal
periods. The marked improvement in operating results related mainly to the sales
increase coupled with a favorable product mix resulting in higher gross profits.
For the fiscal year ended August 26, 2000, net sales were virtually flat at
$55,608,000 versus $55,994,000 in fiscal 1999. Net income was $1,673,000 for the
fiscal year ended August 26, 2000, and after giving effect to $1,253,000
attributable to preferred stock dividends and a beneficial conversion feature
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relating to a preferred stock issuance, the Company recorded net income
applicable to common stock of $420,000 or $.02 per diluted share in fiscal 2000.
This compares to net income of $422,000, and after giving effect to $1,478,000
of preferred stock dividends and beneficial conversion feature, a net loss of
$1,056,000 or $.06 per diluted share in fiscal 1999. The year over year
improvement in operating results related mainly to higher gross profit
attributable to an improved sales mix.
The sales increase in the fiscal fourth quarter of 17.6% was largely
attributable to improved demand in the mass merchandise and chain drug channel
of distribution. Sales for the full fiscal year 2000 were virtually flat with
the prior year reflecting improvement in the mass merchandise and chain drug
channel, which totally offset declines in the U.S. wholesale and direct export
segments of the business. Additionally, the Company sold a wholly owned
subsidiary in Mexico in the first quarter of fiscal 1999, which also contributed
to the sales differential versus the prior year.
Mr. Robert M. Viola, Senior Executive Vice President and Chief Financial Officer
stated that, "Fiscal 2000 has concluded on an extremely positive note. The
strong sales and earnings growth in the last quarter serves to confirm the
strategic marketing and distribution directions that we have embarked upon. Such
planning coupled with operational and manufacturing initiatives previously
undertaken, are beginning to pay dividends."
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Richard R. Howard, President and Chief Executive Officer added, "The Fragrance
Impressions Ltd. acquisition and successful integration in Fiscal 2000 has
significantly positioned Tristar as an important and respected supplier to the
U.S. mass merchandise and chain drug industry. With the additional distribution
outlets penetrated as a result of this alliance, Tristar is now in position to
optimize future new product offerings and profit margins."
Certain statements contained herein are "forward-looking" statements (as such
term is defined in Section 27A of the Securities Exchange Act of 1933 and
Section 21E of the Securities Exchange Act of 1934). Because such statements
include risks and uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. Factors that could
cause actual results to differ materially from those expressed or implied by
such forward-looking statements include, but are not limited to, those discussed
in filings made by the Company with the Securities and Exchange Commission.
TRISTAR CORPORATION is engaged in developing, manufacturing, and marketing an
extensive line of value-priced products comprised of designer alternative
fragrances, contemporary cosmetics, and selected toiletry products. These
products are distributed by the Company in North and South America primarily to
chain stores, mass merchandisers, retail outlets, distributors, and wholesalers.
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TRISTAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
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THIRTEEN WEEKS ENDED FIFTY-TWO WEEKS ENDED
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AUGUST 26, AUGUST 28, AUGUST 26, AUGUST 28,
2000 1999 2000 1999
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Net sales ..................................... $ 16,509,000 $ 14,043,000 $ 55,608,000 $ 55,994,000
Cost of sales ................................. 10,444,000 9,561,000 37,343,000 39,867,000
--------------- --------------- --------------- ---------------
Gross profit .................................. 6,065,000 4,482,000 18,265,000 16,127,000
Selling, general and administrative expenses .. 4,170,000 3,403,000 14,538,000 14,324,000
--------------- --------------- --------------- ---------------
Income (loss) from operations ................. 1,895,000 1,079,000 3,727,000 1,803,000
Other income (expense):
Interest expense .......................... (519,000) (260,000) (1,968,000) (1,246,000)
Other expense ............................. 51,000 (114,000) 11,000 (128,000)
--------------- --------------- --------------- ---------------
Income (loss) before provision for income taxes 1,427,000 705,000 1,770,000 429,000
Provision for income taxes .................... 94,000 7,000 97,000 7,000
--------------- --------------- --------------- ---------------
Net income (loss) ............................. $ 1,333,000 $ 698,000 $ 1,673,000 $ 422,000
--------------- --------------- --------------- ---------------
Less:
Preferred stock dividends ................. (224,000) (196,000) (881,000) (797,000)
Effect of beneficial conversion feature ... -- -- (372,000) (681,000)
--------------- --------------- --------------- ---------------
Net income (loss) applicable to common stock .. $ 1,109,000 $ 502,000 $ 420,000 $ (1,056,000)
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Earnings per common share:
Basic ..................................... $ .07 $ .03 $ .03 $ (.06)
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Diluted ................................... $ .06 $ .03 $ .02 $ (.06)
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