SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) July 24, 1996
Toy Biz, Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware 1-13638 13-3711775
(State or Other (Commission (I.R.S. Employer
Jurisdiction of File Number) Identification
incorporation) No.)
333 East 38th Street, New York, New York 10016
(Address of Principal Executive Offices) (Zip Code)
(212) 682-4700
(Registrant's Telephone Number, Including Area Code)
(Former Name or Former Address, If Changed Since Last Report.)
C/M: 11391.0007 388984.1
<PAGE>
ITEM 5. Other Events.
On July 24, 1996, the Registrant issued a press release
announcing its financial results for the second quarter ended June 30, 1996.
ITEM 7. Financial Statements and Exhibits.
(c) Exhibits.
99.1. Press release of the Registrant, dated July 24, 1996.
C/M: 11391.0007 388984.1
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TOY BIZ, INC.
(Registrant)
Date: July 26, 1996
By /s/ Daniel J. Werther
Name: Daniel J. Werther
Title: Executive Vice President,
Senior Legal Officer
and Secretary
C/M: 11391.0007 388984.1
3
<PAGE>
EXHIBIT INDEX
Exhibit
99.1. Press release of the Registrant, dated July 24, 1996.
C/M: 11391.0007 388984.1
4
TOY BIZ, INC. (NYSE: TBZ)
Toy Biz Reports Second Quarter Results
NEW YORK, N.Y., July 24, 1996 - Toy Biz, Inc. (NYSE: TBZ) announced
results for the second quarter ended June 30, 1996 - with net sales increasing
to $45.8 million compared to $30.4 million in the year ago quarter and net
income increasing to $4.6 million or $0.17 per share compared to $4.3 million
or $0.16 per share in the year ago period.
Joseph M. Ahearn, President and CEO, said sales increased as a result
of the continued success of Toy Biz brand promotional dolls and activity toys
in domestic markets and boys action figure toys in international markets. Gross
profit increased by 24% to $22.9 million compared to $18.4 million in the year
ago quarter. Similar to the first quarter, operating expenses increased
compared to the year ago quarter due to the development and marketing of Toy
Biz's expanded product line, the bulk of which is planned to ship in the second
half of the year.
Mr. Ahearn said domestic promotional doll sales increased nearly
seven-fold to $11.3 million compared to the year ago quarter due to continued
shipments of Baby Tumbles Surprise, the leading promotional doll of 1995 in
unit sales, and shipments of new items in Toy Biz's 1996 promotional doll line.
Domestic sales of activity toys more than tripled to $3.1 million compared to
the year ago quarter due to continued sales of Spectra Star brand kites.
International sales increased almost five times to $13.3 million compared to
the year ago quarter primarily due to continued sales of Spider-Man and
Hercules action figures and related toys, as distribution of the U.S.
television series based on those characters continues to spread to additional
world markets.
Currently planned third quarter shipments are expected to include
additional shipments related to Toy Biz's new promotional dolls for 1996, Toy
Biz's Battle Builders entry into the boys vehicle and construction toy
category, expansion of Toy Biz's activity toy line with shipments of 7-in-1 and
4-in-1 den game tables, and initial shipments of new Marvel action figures
based on The Incredible Hulk, star of a new animated series on the United
Paramount Network (UPN).
Toy Biz, Inc. designs, markets and distributes new and traditional
toys in the boys, girls, preschool, activity and electronic toy categories
featuring major entertainment and consumer brand name properties under license
from Apple, Coleman, Disney, Gerber, Henson, Marvel, MCA/Universal, Revlon and
Sony.
-END-
Contact: Investor Relations: Gary Fishman or David Pasquale at 212-685-6890
C/M: 11391.0007 388984.1
1
<PAGE>
TOY BIZ, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30 June 30
1996 1995 1996 1995
--------- ----------- ---------- -------
<S> <C> <C> <C> <C>
Net sales $45,814 $30,435 $84,183 $58,323
Cost of sales 22,939 12,015 42,672 25,413
------- -------- ------- --------
Gross profit 22,875 18,420 41,511 32,910
Operating expenses:
SG&A 12,961 9,145 24,330 16,862
Depreciation & amortization 2,442 2,294 4,586 3,989
------- -------- ------- --------
Total operating expenses 15,403 11,439 28,916 20,851
------- -------- ------- --------
Operating income 7,472 6,981 12,595 12,059
Interest (income) expense, net (184) (346) (350) (113)
------- -------- ------- --------
Income before provision for 7,656 7,327 12,945 12,172
income taxes
Provision for income taxes 3,062 3,004 5,178 4,990
------- -------- ------- --------
Net income $4,594 $4,323 $7,767 $7,182
====== ====== ====== ======
Earnings per share $0.17 $0.16 $0.28 $0.27
===== ===== ===== =====
Weighted average number of common
and common equivalent shares
outstanding (in thousands) 27,134 27,000 27,168 27,017
====== ====== ====== ======
</TABLE>
C/M: 11391.0007 388984.1
2
