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EXHIBIT 99.1
PRESS RELEASE
SALTON, INC. ANNOUNCES PRELIMINARY SECOND-QUARTER SALES
MT. PROSPECT, Ill.--(BUSINESS WIRE)--Jan. 8, 2001--Salton, Inc. (NYSE: SFP -
news), today announced preliminary estimates for its fiscal 2001 second quarter
ended December 31, 2000.
The Company currently anticipates that net sales for the second quarter will be
lower by 10% to 12% compared to net sales of $292.8 million reported in last
year's comparable quarter. As Salton previously announced in its fiscal 2001
first quarter earnings release, net sales for December were in fact impacted by
the general softness experienced throughout the retail sector during the holiday
selling season. While retail sales remained strong for most of the Company's
products, especially George Foreman indoor grills, retail re-orders from
Salton's diversified channels of distribution were significantly lower late in
the quarter than previously expected. However, the Company's national television
campaign that aired in November and December resulted in significant reductions
of George Foreman inventories at the retail level, as well as substantial
increases of consumer sales compared to the year ago period. Salton expects that
this trend may continue into the Company's fiscal 2001 third quarter.
Leonhard Dreimann, Chief Executive Officer of Salton, commented "Although we
are clearly disappointed that we were not able to avoid the soft holiday retail
season, we do realize that the second quarter comparison of fiscal 2001 follows
a record sales gain last year of 105%, and the highest quarterly revenue figure
ever reported in the Company's history. While sales for the third quarter may be
potentially impacted, we are optimistic that continued product introductions,
including our revolutionary Ultravection(TM) oven and George Foreman outdoor
grills in the third quarter, as well as the Ultrasonic Toothbrush and
accessories, will help to offset the weakness experienced in some other product
categories. Additionally, Salton's management team and Board of Directors
continue to believe that the Company is well-positioned for future growth, and
as such, the Company will continue to repurchase shares from time-to-time under
the Company's recently instituted share repurchase program announced in
November."
The Company expects to report second quarter fiscal 2001 earnings results
pre-market on Tuesday, February 6, 2001. A conference call will be held at 10:00
a.m. EST. and will be broadcast live over the Internet. The webcast can be
accessed via the Company's website, www.saltoninc.com. At this
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time the Company will provide additional financial guidance for the Company's
remaining quarters and full year.
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), 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.
Contact:
Salton, Inc., Mt. Prospect
William B. Rue, 847/803-4600
or
Morgen-Walke Associates, New York
Investor Relations: Hulus Alpay/Brian Schaffer
Press: Greg Tiberend/Ellen Paz
212/850-5600
