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EXHIBIT 99.1
FOR: Salton, Inc.
APPROVED BY: William B. Rue
President and Chief Operating Officer
(847) 803-4600
FOR IMMEDIATE RELEASE
CONTACT: Investor Relations:
Cheryl Schneider/Hulus Alpay/Brian Schaffer
Press: Greg Tiberend/Ellen Paz
Morgen-Walke Associates
(212) 850-5600
SALTON, INC. REPORTS RECORD FIRST QUARTER RESULTS
Mt. Prospect, IL, November 8, 2000 -- Salton, Inc. (NYSE: SFP), today
reported its fiscal 2001 first quarter results for the period ended September
30, 2000.
For the quarter, net sales increased to a record $207.2 million, compared
to $196.3 million in the same period last year. Operating income increased 54.2%
to $43.7 million, compared to $28.3 million in the year ago comparable quarter.
Net income increased 54.7% to $21.5 million, or $1.35 per diluted share,
compared to $13.9 million, or $0.95 per diluted share in the prior year's
period. The weighted average common and common equivalent shares outstanding for
the quarter were 15,938,749 compared to 14,573,612 in last year's comparable
quarter.
Leonhard Dreimann, Chief Executive Officer of Salton, stated, "Revenues
were driven by the introduction of the George Foreman(R) line of indoor-outdoor
electric barbecue grills, which experienced strong sales in the last summer
months and into October when we introduced the "Double Champion" edition. We
also witnessed continued strong sales of other George Foreman(R) branded
products, as well as from our Toastmaster(R), Melitta(R) and
White-Westinghouse(R) line of products."
Mr. Dreimann continued, "While October has been a record month of sales at
Salton, we are aware that retailers have recently expressed concerns about
softness across the board in their overall business and sales numbers. We know
through conversations with our customers that these concerns may carry through
the Christmas selling season. Although the Company has not experienced this
softness to date, November and December may be challenging months for retailers
and may ultimately impact the Company if this trend continues."
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SALTON, INC. REPORTS RECORD FIRST QUARTER RESULTS PAGE: 2
"Looking ahead, we anticipate the continued introduction of innovative
products for the home that our diverse and ever expanding customer base now
expects and demands from Salton," said Mr. Dreimann. "During the current quarter
we intend to introduce the Sonex(R) line of electrically operated toothbrushes
via an infomercial. Early in the second half of fiscal 2001 we also intend to
introduce the Ultravection(TM) oven, which is a revolutionary oven that includes
the ability to utilize three methods of heat transfer, allowing for food to
achieve greater moisture retention. The introduction of these revolutionary
products, coupled with our existing portfolio of quality products, should allow
Salton to capitalize on its market-dominant position as a leading domestic
designer, marketer and distributor of a broad range of products."
As noted during the Company's fiscal 2000 fourth quarter press release, the
Company announced several key acquisitions that should ensure future growth by
leveraging the Company's marketing strengths. These acquisitions include
Sonex(R) International Corporation, The Stiffel(R) Company, and Relaxor(R). Most
recently, the Company entered into a long-term worldwide exclusive licensing
agreement with Synergy Worldwide, Inc. to market and distribute the "Spin Fryer"
home appliance under the George Foreman(R) brand name to the consumer
marketplace.
Mr. Dreimann concluded, "Salton continues its transition into a pure-play
marketing company by reducing our focus on manufacturing, as evidenced by the
two plant conversions we announced during the fourth quarter. This
transformation will continue to afford us the ability to avoid many of the
obstacles that have traditionally plagued consumer product manufacturers."
A conference call discussing first quarter results will be held today,
November 8, 2000, at 10:00 A.M. EST. Salton's investors can access this
conference call via a live webcast on the Company's website at www.saltoninc.com
A replay of the call will be maintained on the www.saltoninc.com website.
ABOUT SALTON, INC.
Salton, Inc. is a leading domestic designer, marketer and distributor of a broad
range of branded, high quality small appliances, tabletop products and personal
care/time products. Its portfolio of well-recognized owned and licensed brand
names includes Salton(R), Toastmaster(R), Maxim(R), Breadman(R),
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SALTON, INC. REPORTS RECORD FIRST QUARTER RESULTS PAGE: 3
Juiceman(R), Juicelady(R), George Foreman Grills(R), White-Westinghouse(R),
Farberware(R), Melitta(R), Block(R) China, Atlantis(R), Sasaki(R),
Rejuvenique(R), Ingraham(R), Calvin Klein(R), Sonex(R), Stiffel(R), and
Relaxor(R).
Certain matters discussed in this news release are forward-looking statements
that are subject to certain risks and uncertainties that could cause actual
results to differ materially from those set forth in the forward-looking
statements. These factors include: the Company's relationship and contractual
arrangements with key customers, suppliers and licensors; the risks relating to
pending legal proceedings; cancellation or reduction of orders; the timely
development, introduction and customer acceptance of the Company's products;
dependence on foreign suppliers and supply and manufacturing constraints;
competitive products and pricing; economic conditions and the retail
environment; the availability and success of future acquisitions; the Company's
degree of leverage; the risks related to intellectual property rights; risks
relating to regulatory matters and other risks and uncertainties detailed from
time to time in the Company's Securities and Exchange Commission filings.
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(Tables Follow)
SALTON, INC.
STATEMENTS OF OPERATIONS
UNAUDITED
(DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)
YEAR TO DATE
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9/30/00 9/25/99
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NET SALES $ 207,246 $ 196,340
Cost of goods sold 117,987 110,401
Distribution expenses 9,989 7,120
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GROSS PROFIT 79,270 78,819
Selling, general and administrative expenses 35,583 50,490
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OPERATING INCOME 43,687 28,329
Interest expense 9,283 5,477
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INCOME BEFORE INCOME TAXES 34,404 22,852
Income taxes 12,902 8,954
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NET INCOME $ 21,502 $ 13,898
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 11,595,724 10,289,640
WEIGHTED AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING 15,938,749 14,573,612
NET INCOME PER COMMON SHARE : BASIC $1.85 $1.35
NET INCOME PER COMMON SHARE : DILUTED $1.35 $0.95
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SALTON, INC.
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
UNAUDITED
SEPT 30, JULY 1,
ASSETS 2000 2000
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CURRENT ASSETS:
Cash $ 19,360 $ 7,606
Accounts receivable, net of allowances 188,288 129,850
Inventories 226,109 219,230
Prepaid expenses and other current assets 13,530 10,146
Deferred tax assets 3,713 3,713
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TOTAL CURRENT ASSETS 451,000 370,545
Net Property, Plant and Equipment 35,302 34,643
Patents and trademarks, net of accum amort 130,149 127,073
Intangibles, net and other non-current assets 37,932 32,015
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TOTAL ASSETS $ 654,383 $ 564,276
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 31,577 $ 35,113
Accrued expenses 24,142 21,028
Income taxes payable 12,449 4,578
Revolving line of credit and other
current debt 126,697 112,155
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TOTAL CURRENT LIABILITIES 194,865 172,874
Non-Current Deferred Tax Liability 2,223 2,529
Long-term Debt 233,091 215,065
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TOTAL LIABILITIES 430,179 390,468
STOCKHOLDERS' EQUITY:
TOTAL STOCKHOLDERS' EQUITY 224,204 173,808
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TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 654,383 $ 564,276
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