ST. LOUIS—July 29, 2002—Siboney Corporation (OTC BB: SBON) announced today results of operations for the second quarter and six-month period ended June 30, 2002.
For the six months ended June 30, 2002, the Company reported that revenues were $4,941,821, an increase of $522,089 or 11.8% compared to $4,419,732 reported for the first six months of 2001. Net income for the six-month period was $536,140, a decrease of $731,546 or 57.7% from net income reported for the first six months of 2001.
Revenues for the second quarter ended June 30, 2002 were $3,073,591, an increase of $655,159 or 27.1%, compared to $2,418,432 in the second quarter of 2001. Net income for the quarter was $491,079 compared to $790,988 reported for the second quarter of 2001, representing a decrease of $299,909 or 37.9%.
A provision for income taxes of $371,000 recognized in the second quarter of 2002 represents the Company’s current realization of its net deferred tax asset which relates primarily to the carryforward of net operating losses incurred in prior years. The Company expects its available net operating loss carryforwards will be sufficient to offset any obligation to pay federal income taxes through 2002. The Company did not report a provision for income taxes in 2001 as its utilization of the prior years’ net operating losses in those periods was offset by a reduction in the deferred tax asset valuation allowance.
Bodie Marx, President, commented: "Our second quarter results were outstanding given the difficult school funding environment in most states. Our recently launched Orchard for Your State product line is leading the way as it responds well to the recently passed No Child Left Behind Act. Orchard for Your State is a cost-effective and research-based solution that will help all students master key skills stressed in their state’s standards. It may be the ideal product during this period of high accountability and low funding in schools."
Tim Tegeler, Chairman and CEO, added: "We are gratified with a second quarter that produced increased sales over both the previous quarter and the second quarter of last year. This performance is a tribute to our team of staff members and dealers who are persevering through very difficult times, which have seen states’ budgets for education greatly reduced. These increases also fortify our decisions regarding new product releases and their acceptance in schools throughout the United States."
| Six Months Ended June 30 | Three Months Ended June 30 | ||||
|---|---|---|---|---|---|
| 2002 | 2001 | 2002 | 2001 | ||
| Revenues | $ 4,941,821 | 4,419,732 | 3,073,591 | 2,418,432 | |
| Cost of Product Sales | $ 1,066,698 | 610,682 | 634,477 | 312,371 | |
| Selling, General, & Admin. Expenses | $ 2,940,897 | 2,491,907 | 1,555,738 | 1,286,986 | |
| Income from Operations | $ 934,226 | 1,317,143 | 883,376 | 819,075 | |
| Provision for Income Taxes | $ 371,000 | — | 371,000 | — | |
| Net Income | $ 536,140 | 1,267,868 | 491,079 | 790,988 | |
| Earnings per Common Share—Basic | $ 0.03 | 0.08 | 0.03 | 0.05 | |
| Earnings per Common Share—Diluted | $ 0.03 | $ 0.07 | $ 0.03 | $ 0.05 | |
| Weighted Ave Number of Common Shares Outstanding—Basic | 16,775,717 | 16,670,850 | 16,782,671 | 16,676,514 | |
| Weighted Ave Number of Common Shares Outstanding—Diluted | 17,495,827 | 17,234,939 | 17,467,924 | 17,280,942 | |
| Total Assets | $ 6,091,596 | 5,605,418 | 6,091,596 | 5,605,418 | |
Contact:
Siboney Corporation, St. Louis
Bodie Marx, 314/909-1670 x110
Any forward-looking statement is necessarily subject to significant uncertainties and risks. The words “believes”, “anticipates”, “intends”, “expects” and similar expressions are intended to identify forward-looking statements. Actual results could be materially different due to various factors, including the level of education funding provided by federal and state governments, regulatory developments, product development and pricing strategies undertaken by our competitors and our ability to attract and retain key personnel. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.