SOURCE: Action Products International, Inc.

April 02, 2007 16:00 ET

Action Products Reports Final 2006, Q4 and Year End Financials

Final Sales Results in Line With Previous Estimates

ORLANDO, FL -- (MARKET WIRE) -- April 2, 2007 -- Action Products International, Inc. (NASDAQ: APII), a leading designer of branded toy and craft consumer products, announced final sales and earnings figures for the year ended December 31, 2006. Revenue totaled $7.44 million, in line with previously published statements from the company, down from $9.48 million, or 21.5%, from 2005, resulting in a net loss of $2.72 million for 2006 compared to a net loss of $21,200 for 2005.

Cash flow from operations in 2006 was $3,900, an improvement of $872,000 compared to 2005.

"We believe the changes we began in the later half of 2006 will provide significant improvement to our bottom line in 2007," commented chairman and chief financial officer, Ron Kaplan. "We saw a similar setback in 2002 (a sales decline, after several years of growth). We then improved and delivered growth in 2003, 2004, and 2005, and can again in 2007. In those three years (2003-2005) our toy/craft business (outside the corporate expense) was a very profitable business, with respectable if not enviable contributions to the corporation."

Commenting on the future of the company's toy and craft business, Richard Malagodi, president and chief operating officer, said, "We are building a first-class team of proven industry professionals here inside the company. There are tremendous growth opportunities that are currently receiving the time and attention they deserve to become world-class consumer brands within our toy and craft business operations. In the past, some of our brands have suffered by sub-par execution and we are bringing a change to that now."

A conference call with investors will take place the week of April 9; time and details will be announced.

About Action Products International, Inc.

Action Products International, Inc. (APII), based in Orlando, Fla., is a consumer products manufacturer, emphasizing branded educational and positive leisure products. Action Products consumer brands span activities, arts, crafts, juvenile products and toy categories. Its products are marketed and sold to retailers and consumers.

Visit the Company's Web sites at www.apii.com and www.curiositykits.com.

Forward-Looking Statements. Any statements that are not historical facts contained in this release are forward-looking statements. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the company's Securities and Exchange Commission filings. The company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.

Contact Information

  • Contact:
    Wendy Jo Moyer
    Action Products International Inc.
    (407) 660-7221