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Brass Eagle Inc Announces 1st Quarter Sales & Earnings
Brass Eagle, Inc.
Brass Eagle Inc. (Nasdaq: XTRM), the worldwide leader in the manufacturing, marketing and distribution of paintball products, today announced reported results for the first quarter ending March 31, 2003.
Brass Eagle reported net sales for the first quarter decreased 33% to $13.4 million versus $20.1 million for the same period last year. For the three months ended March 31, 2003 the Company reported a loss of $226,000 or $0.03 per diluted share, compared to a profit of $1.1 million or $0.14 per diluted share for the corresponding period in 2002.
Brass Eagle now expects fiscal year 2003 sales to range from $98 million to $105 million. The Company also expects fiscal 2003 diluted earnings per share to range from $1.10 to $1.20.
Lynn Scott, Brass Eagle President and CEO stated, “The soft retail environment, which prompted reductions in major retailers’ inventories, caused lower than expected first quarter sales results. And although it appears retail inventories have been sufficiently decreased through the first few months, we remain cautious about the retail environment over the course of the year.”
“We continue to believe the basic business of Brass Eagle is sound and we remain the leader in a growing market with strong demographic trends at our back. We will continue to focus on growing our core business while simultaneously looking to diversify into complementary markets.”
Brass Eagle is unique in providing a full line of paintball markers and accessory products from beginner through competition level. The Company is the dominant supplier of products for this rapidly growing sport. Brass Eagle was named one of the “Top 100” Hot Growth Companies by Business Week magazine in 1998, 1999 and 2001, and one of the IW Growing Companies 25, America’s Most Successful Small Manufacturers by Industry Week magazine.
Certain statements in this press release (including statements containing the words "expect," "will," "believe," "continue," “anticipate,” "could," "intend" and similar words) may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Brass Eagle, its industry or others to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from Brass Eagle's expectations include the following: (1) Intensifying competition, including specifically the intensification of price competition, the entry of new competitors and the introduction of new products by new and existing competitors; (2) Failure to obtain new customers or retain existing customers; (3) Inability to carry out marketing, sales or other business plans and strategies; (4) Loss of key executives; (5) General economic and business conditions which are less favorable than expected; and (6) Unanticipated changes in industry trends.