This page updated: 03/01/01
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The Boyds Collection, Ltd. Reports 2000 Fourth Quarter and Full Year
Results
GETTYSBURG, Pa.--(BUSINESS WIRE)--March 1, 2001--The Boyds Collection (NYSE: FOB) today
reported its financial results for the 2000 fourth quarter and full year ended December
31, 2000.
For the 2000 fourth quarter, net income, before extraordinary items, was $2.7 million, or
$0.05 per diluted share, on net sales of $32.6 million. In the year-ago quarter, net
income before an extraordinary item was $11.8 million, or $0.20 per diluted share, on net
sales of $50.3 million. The decrease in fourth quarter results for 2000 are primarily the
result of continuing weakness in customer order volume for the Company's plush and resin
collectible lines due to ongoing difficult conditions in the retail marketplace for
collectibles.
For the full year 2000, net income, before extraordinary items, was $42.0 million, or
$0.71 per diluted share, on net sales of $184.0 million. In 1999, the Company reported net
income of $62.3 million (pro forma), or $1.01 per diluted share (pro forma), on net sales
of $211.1 million. The Company generated approximately $50.0 million in operating cash
flow for the full year 2000, which was used primarily to reduce long-term debt.
Jean-Andre Rougeot, Chief Executive Officer, said, "We were disappointed with our
financial performance in 2000, which directly resulted from the weakness in the retail
marketplace that persisted over the past year. These conditions have significantly
affected the sales results of companies across our industry and promise to remain
challenging into 2001. To effectively address this, we have taken a series of concrete
steps to fortify our business and best position the Boyds brand within this environment.
We refined our new product development process, modified our sales approach in order to
strengthen relationships within our dealer network, and instituted a range of controls
aimed at ensuring financial discipline. These actions have clearly strengthened the
foundation of our company, and have enabled us to sharpen our focus on reinvigorating
top-line growth. To that end, we are now in the process of implementing a number of growth
initiatives, which, we expect, in combination with our improved financial controls, to
result in overall performance improvement in 2001."
The Boyds Collection to Webcast 2000 Fourth
Quarter and Full Year Financial Results Conference Call
GETTYSBURG, PA--February 22, 2001--The Boyds Collection, Inc. will hold a webcast of
its conference call on Thursday, March 1, 2001 at 9:30 am (ET)
to discuss its financial results for the fourth quarter and full year 2000.
A live webcast of the call will be accessible on the Company's website, http://www.boydsstuff.com via a link from
the Investor Relations section. Please log on to the website approximately ten minutes
prior to the call to download and install any necessary audio software. A replay of the
conference will be archived on the site through 8:00 pm on Thursday, March 8, 2001.
The Boyds Collection Makes Promotions;
Peter Frost Named CFO And Dan Mislak Named VP of Sales
GETTYSBURG, Pa.--(BUSINESS WIRE)--Dec. 4, 2000--The Boyds Collection, Ltd. (NYSE:FOB)
announced today that Peter H. Frost has been promoted to Chief Financial Officer and
Daniel P. Mislak has been promoted to Vice President of Sales, both newly created
positions. The appointments are effective immediately.
Mr. Frost joined Boyds in March 1999 as Vice President of Finance, having previously
served for seven years as Corporate Controller of Enesco Corporation, a leading
collectible giftware wholesaler. Prior to that, Mr. Frost spent 12 years with Enesco's
parent company as Director of Business Development and Director of Internal Auditing. In
his new position at Boyds, Mr. Frost will lead the Company's finance operations, with
expanded responsibilities in the areas of external reporting, treasury management and
investor relations.
Mr. Mislak joined Boyds in March 2000 as Director of Sales following a successful career
at Black & Decker. In his last position at Black & Decker, he was Director of
Business Analysis & Operations, with responsibilities including customer service,
sales support centers, telemarketing, end user call center and event/show planning. In
addition to his current responsibilities, Mr. Mislak will now oversee Boyds' telemarketing
sales department, and coordinate the Company's showroom management and trade show
presence. Webspresso
"Peter and Dan are highly skilled and experienced consumer goods industry
professionals. I know they will both continue to play a critical role in implementing the
initiatives we have in place to position Boyds for success over the long-term," said
Jean-Andre Rougeot, Chief Executive Officer.
Webspresso WebspressoWebspressoWebspresso
The Boyds Collection, Ltd. is a leading domestic designer, importer and distributor of
branded, high-quality, hand-crafted collectibles and other specialty giftware products.
The company sells its products through a large and diverse network comprised of
independent gift and collectibles retailers, premier department stores, selected catalogue
retailers and other electronic and retail channels. Founded in 1979, it has successfully
developed a strong niche and brand identity in its markets because of its affordably
priced, high quality, "Folksy With Attitude(SM) collectibles. Webspresso
BOYDS RECALL
60,000 Rabbit Toys Recalled
.c The Associated Press
WASHINGTON (AP) - A New Jersey company is recalling about 60,000 plush rabbit toys sold
under The Boyds Collection label because the eyes of the toys can detach, posing a choking
hazard to young children.
The company, Small Small World of Englewood, has not received any reports of injuries, the
Consumer Product Safety Commission said Tuesday in announcing the recall. The agency said
the recall is being conducted to prevent injuries.
The recall involves two styles of plush rabbit toys: Natalie Nibblenose and Nickie
Nibblenose. They are both about 6 inches tall, with bows around their necks, and have
movable joints.
Sewn-on tags on the toys read: ``THE BOYDS COLLECTION'' and ``MADE IN CHINA.'' Natalie
Nibblenose is a white chenille hare. A cardboard tag attached to the toy with a string
reads: ``NATALIE NIBBLENOSE'' and ``STYLE 573300-01.'' Nickie Nibblenose is a French
vanilla and white hare. A cardboard tag attached to the toy with a string reads: ``NICKIE
NIBBLENOSE'' and ``STYLE 573303-03.''
The toys were sold for about $6 in specialty stores nationwide from December 1999 through
September of this year.
The Consumer Product Safety Commission said consumers should take the toys away from
children immediately and return them to the store where purchased for a free replacement
toy. For more information, consumers can call Small Small World at 1-800-485-7211 between
9 a.m. and 5 p.m. EST Monday through Friday.
On the Net: Consumer Product Safety Commission: http://www.cpsc.gov
Starting today, Webspresso will present the main idea of these
business reports, in our own words, as most are a very dry read, and somewhat redundant at
times. Those wishing to read them in their entirety should locate them on the web, through
the various news organizations.
HOT NEWS FROM THE BUSINESS WIRE!
2/17/2000
The Boyds Collection, Ltd. Reports 1999
Fourth Quarter and Full Year Results
Also Announces Initiation of Second Share Repurchase Program of Up To 3 Million Shares
Please do not copy and paste from webspresso!
GETTYSBURG, Pa.--(BUSINESS WIRE)--Feb. 17, 2000--The Boyds Collection (NYSE:FOB) today
reported its financial results for the 1999 fourth quarter and full year ended December
31, 1999, as well as the authorization of its second share repurchase program.
Financial Results
Net sales for the fourth quarter 1999 declined 13.5% to $50.0 million compared to $57.8
million for the same period last year. Pro forma net income, before extraordinary items,
for the fourth quarter 1999 declined 18.8% to $14.9 million compared to $18.4 million for
the same period last year. Pro forma earnings per share, before extraordinary items and
assuming dilution, for the fourth quarter 1999 declined 16.7% to $0.25 compared to $0.30
for the same period last year. Pro forma net income for 1999 assumes that the initial
public offering occurred on January 1, 1999, and pro forma net income for 1998 assumes
that the recapitalization and the subsequent initial public offering occurred on January
1, 1998.
The decrease in fourth quarter results for 1999 are primarily the result of continuing
softness in customer order volume for the Company's resin collectibles line due to
changing market conditions.
For the full year 1999, net sales rose 6.3% to $210.2 million, compared to $197.8 million
for 1998. Pro forma net income, before extraordinary items, for the full year 1999 rose
18.2% to $65.1 million compared to $55.1 million for 1998. Pro forma earnings per share,
before extraordinary items and assuming dilution, for the full year 1999 rose 19.1% to
$1.06 compared to $0.89 for 1998. The Company generated approximately $70 million in
operating cash flow for the full year 1999, which was used to reduce long-term debt by
$43.5 million and to repurchase nearly 3.0 million of its shares, completing its first
share repurchase program.
Please do not copy and paste from webspresso!
For the year 2000, the Company said it expects to experience continued softness in the
collectible resin category in general. Conversely, Boyds said it has been pleased with the
continued growth of its plush business and will actively support its growth.
As announced earlier this month, Boyds appointed Jean-Andre Rougeot, a
highly experienced marketing and merchandising professional, as its Chief Executive
Officer. Mr. Rougeot said, "My first priority is to work with Gary Lowenthal, the
Chairman of Boyds, and our experienced management team to emphasize the unique spirit of
Boyds to create terrific new products that are in line with consumer demand. At present,
our focus is on continuing to build the strength of our plush business, while identifying
new ways to rejuvenate our resin business and assessing, developing and launching new
product lines with strong appeal in the gift and collectible marketplace. We feel
confident that these initiatives will position the Company for success over the
long-term."
Please do not copy and paste from webspresso!
Share Repurchase Program
Boyds also announced today that its Board of Directors has approved the repurchase of an
additional 3.0 million shares of the Company's common stock. Boyds plans to make such
purchases from time to time in the open market or in private transactions. The timing,
extent and terms of the repurchase will depend on prevailing market conditions.
2/3/2000
New CEO of Boyds Named!
Bob C to leave the Company
The Boyds Collection today named Jean-Andre Rougeot as its Chief Executive Officer
and a member of its Board of Directors, effective immediately. Most recently, Mr. Rougeot,
41, had been President of the Coty Division of Coty Inc., the global fragrance and
cosmetics company, as well as Chief Executive Officer of Coty US.
WEBSPRESSO
The Company also announced that Bob Coccoluto, its President since 1998, will leave Boyds
to return to his private business venture in his home state of Minnesota. Mr. Coccoluto
will remain on Boyds' Board of Directors and be active in the transition.
11/15/99
Boyds LaunchesWeb Site!
-- New Site Will Enhance Relationships With Collectors and Store Partners --
At present, the site features Boyds's Fall 1999 product
introductions as well as a "Newz" section, a store locator service, and
registration for an e-mail newsletter service. In mid-December, the Company will add
special pages for its 125,000 member collectors' club; "The Loyal Order of the
Friends of Boyds;" a gift-giving and decorating with Boyds products section; and,
information about Boyds's Home Office. In addition, "Loyal F.o.B." club members
and Boyds retailers will have special access to restricted areas of the site, and interested collectors will be able to sign-up for online club membership. GO NOW
RESEARCH ALERT - Merrill Lynch cuts Boyds
NEW YORK, Oct 29 (Reuters) - Merrill Lynch said Friday it cut
Boyds Collection Ltd. , which designs and distributes collectibles, to near-term
accumulate from long-term buy.
-- "We are lowering our intermediate-term rating to
accumulate from buy based on the uncertain outlook for the collectibles industry for the
next few quarters," Merrill Lynch said in a research report.
-- Merrill Lynch said it is cutting its sales forecasts for the
fourth quarter of 1999 and fiscal year 2000. It said it is cutting its fourth quarter
earnings per share estimate by four cents to $0.29 and fiscal year 2000 estimate by 15
cents to $1.20.
-- Merrill Lynch said, however, that: "Boyds' powerful
business model, premier brand and strong dealer relationships position it well for
long-term growth."
-- Merrill Lynch said Boyds reported solid third-quarter 1999
results on Friday. The company reported earnings per share of $0.31 and revenue of $59.3
million.
-- Shares of Boyds closed at 12-1/4 on the New York Stock
Exchange on Thursday.
GETTYSBURG, Pa.--(BUSINESS WIRE)--Oct. 28, 1999--
E.P.S. Rises 29.2% for the Quarter; 37.3% for the Nine Month Period
The Boyds Collection (NYSE:FOB) reported today that net sales for the third quarter 1999
rose 13.6% to $59.3 million compared to $52.2 million for the same period last year.
Pro forma earnings per share, before extraordinary items and assuming dilution, for
the third quarter 1999 rose 29.2% to $0.31 compared to $0.24 for the same period
last year.
QUOTES from Boyds' President Bob Coccoluto:
"While we are seeing some softness in the collectibles industry we continue to be
pleased with our results overall for the third quarter and first nine months
of fiscal 1999. We continue to use our strong free cash flow to reduce long-term
debt, a further $18.0 million having been repaid since we went public, and build on
our already solid financial position. In May of this year, we announced the
repurchase of up to 3.0 million shares of stock, of which 0.7 million have been purchased
to date."
AND
"Also going forward, we are continuing to build the size and depth of our management
team. We recently hired an Executive Vice President, who brings us extensive depth
and an excellent track record in marketing, merchandising and consumer goods. We are also pleased to announce that in early November we will be
launching our consumer web site at boydscollectibles.com."
Note from Sally - be sure to visit the site, and sign up
for the e-mail list. GO NOW
THE BOYDS COLLECTION, LTD. AUG 11, TWO
stories regarding The Boyds Collection LTD were on The Business Wire:
August 11, 1999--The Boyds
Collection, Ltd. today announced the appointment of Diane J. Combes, a highly experienced
consumer products sales and merchandising executive, as Executive Vice President. In this
capacity, Ms. Combes will manage all sales, marketing and merchandising functions for
Boyds. Ms. Combes will assume this newly created position in early September.
Prior to this appointment, Ms. Combes spent six years with The Disney Store, Inc., a
division of the Walt Disney Company, serving as Vice President and General Merchandise
Manager. Prior to joining Disney, Ms. Combes was with The Victoria's Secret Company for 10
years.
QUOTED IN PART from THE BUSINESS WIRE STORY
The Boyds Collection Announces Creation of
United Kingdom Sales Subsidiary; New Operation Instrumental in Boyds' European Growth
Initiatives
Aug. 11, 1999--The Boyds Collection, Ltd. today announced that it has created
its first overseas sales subsidiary, The Boyds Collection, Ltd. U.K., which will directly
manage the sale and distribution of Boyds' products in the United Kingdom. The subsidiary
will focus on the expansion of Boyds' existing business in the U.K. as well as serve as a
platform for the ongoing development of Boyds' product sales throughout the European
market.
Located in Dunkeswell, in the county of Devon, The Boyds Collection Ltd., U.K., will begin
its operations on September 5th at the Autumn Gift Fair in Birmingham, U.K. Prior to the
creation of the U.K. subsidiary, the U.K. distribution of Boyds' products was managed by
an independent U.K. distributor.
QUOTED IN PART from THE BUSINESS WIRE STORY
July 22, 1999 two Boyds related stories hit
the business wire today.
Second Quarter Results
Original article can be found on the Business Wire.
Rather a dull story, but the meat of it was the following. The story is on the
Business Wire for those who wish to digest the complete report:
A financial story today states that The Boyds Collection, Ltd. Reports 1999 Second Quarter
Results E.P.S. Rises 66.7% for the Quarter; 42.9% for the Six Month Period.
For the first six months of 1999, net sales rose 15.0% to $100.9 million, compared to
$87.7 million for the same period last year.
July 22, 1999 The Boyds Collection Names Richard
Wuerthele Vice President of Sales Development and National Accounts
Original article can be found on the Business Wire.
A new VP of Sales Development and National Accounts was announced by The Boyds
Collection, Ltd. today as Richard Wuerthele. In this capacity, Mr. Wuerthele is
responsible for the ongoing development of sales of Boyds' products through the expansion
of its network of retail accounts, including gift and collectibles retailers, department
stores and other electronic and retail channels.
Prior to joining Boyds, Mr. Wuerthele spent 12 years at the Black & Decker
Corporation, serving in a variety of sales and marketing positions, including Vice
President of Sales for Wholesale Products. In his most recent role at Black & Decker,
Mr. Wuerthele spent two years as the Vice President of Marketing for the Professional
Products Group, during which time he oversaw the launch of 55 new products.
USA TODAY Friday, May 28, 1999
Bad News for Boyds Stockholders CLICK HERE TO SEE USA TODAY
COLUMN.
*USE YOUR BACK BUTTON TO RETURN
5- 28-99 12:52 MDT
this just in from the BUSINESS WIRE
The Boyds Collection to Initiate Share Repurchase Program
of Up to Three Million Shares
McSHERRYSTOWN, Pa.--May 28, 1999--The Boyds Collection, Ltd. (NYSE: FOB) announced today
that its Board of Directors has approved the repurchase of up to 3 million shares of the
Company's common stock.
Boyds plans to make such purchases from time to time in the open market or in private
transactions. The timing, extent and terms of the repurchases will depend on prevailing
market conditions. Boyds has approximately 61.8 million shares outstanding.
"We believe the repurchase of shares represents an attractive investment opportunity
for Boyds, in light of our consistently strong revenue and earnings growth, including in
the most recent quarter ended March 31, 1999," said Bob Coccoluto, President of The
Boyds Collection. "We will continue to monitor our capital structure going forward
with a focus on maximizing shareholder value and returns," Mr.Coccoluto added. Last
month, Boyds reported first quarter 1999 revenue and earnings growth of 16% and 30%,
respectively, as compared to the same period a year ago.
Boyds is a designer, importer and distributor of premier branded, high-quality,
hand-crafted collectibles which it sells through a network of approximately 20,000 retail
accounts, including independent gift and collectibles retailers, high-end department
stores and selected retail catalogues. Founded in 1979, Boyds has developed a strong
market niche and brand identity in the collectibles market through its reputation for
creating folksy and slightly off-center collectibles, which include plush animals, resin
figurines, porcelain dolls, clothing and accessories.
With regard to open market purchases, Donaldson, Lufkin & Jenrette will be
coordinating the share repurchase program. Please contact the DLJ Corporate Trading Desk
at (212) 892-3763 for more information.
CONTACT:
The Boyds Collection, Ltd.
Peter H. Frost
Vice President - Finance
(717) 633-9898 x 2151
The Boyds Collection, Ltd. Reports 1999 First Quarter Results
GETTYSBURG, Pa., April 22 The Boyds Collection (NYSE: FOB)
reported today that net sales for the first quarter 1999 rose 15.9% to $57.2 million
compared to $49.3 million for the same period last year. Pro forma net income, before an
extraordinary item, for the first quarter 1999 rose 32.0% to $18.6 million compared to
$14.1 million for the same period last year. The pro forma net income for 1999 assumes
that the initial public offering occurred on January 1, 1999, and the pro forma net income
for 1998 assumes that the recapitalization and the subsequent initial public offering
occurred on January 1, 1998. Pro forma earnings per share, before an
extraordinary item and assuming dilution, for the first quarter 1999 rose 30.4% to $0.30
compared to $0.23 for the same period last year.
Boyds' President, Bob Coccoluto, stated, "We are pleased with our first quarter
results which exceeded the Company's growth targets in sales and net income for the first
quarter of 1999. Sales of both of our major product categories, plush animals and resin
figurines, increased compared to the same period last year. For fiscal 1999 we are
focusing our efforts on expanding the most successful new product lines introduced over
the last eighteen months and managing our business for consistent long-term growth. To
that end, we are increasing the size and depth of our senior management team and have also
broken ground on a new warehouse facility adjacent to our existing
distribution center, which should be completed in mid-year 1999. With the successful
completion of our initial public offering in March of this year, and, consequently, the
reduction in long-term debt, we have and will continue to build on our already strong
financial position."
The Boyds Collection, Ltd. is a leading domestic designer, importer and distributor of
branded, high-quality, hand-crafted collectibles and other specialty giftware products.
The company sells its products through a large and diverse network comprised of
independent gift and collectibles retailers, premier department stores, selected catalogue
retailers and other electronic and retail channels. Founded in 1979, it has successfully
developed a strong niche and brand identity in its markets because of its affordably
priced, high quality, "Folksy With Attitude(SM)" collectibles.
Any conclusions or expectations drawn from the statements in this press release concerning
matters that are not historical corporate financial results are "forward-looking
statements" that involve risks and uncertainties. Sales patterns have historically
varied in number, mix and timing, and there can be no assurance that the sales trend
experience year-to-date will continue. Other factors, including retail inventory levels,
consumer demand, product development efforts, completion of third party product
manufacturing, dealer reorders and order cancellations, control of operating expenses,
corporate cash flow application, and industry, general economic, regulatory and
international trade conditions, can significantly impact the Company's sales and earnings.
Actual results may vary materially from forward-looking statements and the assumptions on
which they are based. The Company undertakes no obligation to update or publish in the
future any forward-looking statements
NOTE FROM
SALLY/Webspresso: FIGURE Table WILL BE ADDED LATER,
please check back.
Subj: The Boyds Collection Appoints Two
Executives
Date: 3/30/99 9:49:34 AM Mountain Standard Time
The Boyds Collection Appoints Two Executives
McSHERRYSTOWN, Pa.--(BUSINESS WIRE)--March 30, 1999--The
Boyds Collection, Ltd. (NYSE: FOB) today announced the appointments of Peter H. Frost as Vice President - Finance and David Miller as Vice President - Marketing.
Mr. Frost will be responsible for managing the Company's financial functions and assisting
with the development of its international operations. For the last seven years, Mr. Frost
was Corporate Controller for Enesco Corporation, the nation's leading collectible
giftware wholesaler, with operations in North America, Europe and the Far East. Prior to
that, Mr. Frost spent 12 years with Enesco's parent company as a Director of Business
Development and Internal Auditing.
Mr. Miller comes to The Boyds Collection from PRIMEDIA. Prior to joining Boyds, Mr. Miller
was group publisher of PRIMEDIA's collectible publications, including such internationally
distributed publications as Doll Reader and Teddy Bear and Friends. In
addition, Mr. Miller is the founding publisher and editor of Figurines &
Collectibles, a publication aimed at collectors of contemporary collectibles.
Recently, Mr. Miller has traveled the country representing PRIMEDIA's collectibles
magazines and speaking at major collector events about current trends in the collectibles
market, addressing artists and dealers on successful marketing methods, and working with
manufacturers on custom marketing programs.
"We are very excited about having Peter and David join the management team of
Boyds," said Bob Coccoluto, President of The Boyds Collection.
"Peter and David bring a wealth of industry experience and advance us significantly
toward our goal of expanding our management team to support the anticipated growth of our
business."
Boyds is a designer, importer and distributor of premier branded, high-quality,
hand-crafted collectibles which it sells through a network of approximately 19,950 retail
accounts, including independent gift and collectibles retailers, high-end department
stores and selected retail catalogues. Founded in 1979, Boyds has developed a strong
market niche through its reputation for creating folksy and slightly off-center
collectibles, which include plush animals, resin figurines, porcelain dolls, clothing and
accessories.
~INTERESTING LINK~
IPO CENTRAL
The Boyds Collection Begins Trading on NYSE
MCSHERRYSTOWN, Pa., March 5 /PRNewswire/ -- The Boyds
Collection, Ltd. announced an initial public offering of 16,000,000 shares of its common
stock today at $18 per share. Of the shares being offered, 9,250,000 are being sold by the
Company and 6,750,000 are being sold by certain selling shareholders. These selling
shareholders have granted the underwriters of the offering the option to purchase an
additional 2,400,000 shares, at the initial public offering price, less the underwriting
fees, to cover over-allotments. Following the offering, Boyds will have approximately 61.8
million shares outstanding.
Boyds Common Stock will be traded on the New York Stock Exchange under the symbol
"FOB." The Company will use the net proceeds from the offering received by it,
estimated to be $162.7 million, to redeem part of its outstanding notes and to repay part
of its bank indebtedness.
The offering is being made through an underwriting group led by Donaldson, Lufkin &
Jenrette with co-manager Merrill Lynch & Co.
Boyds is a designer, importer and distributor of premier branded, high-quality,
hand-crafted collectibles which it sells through a network of approximately 19,950 retail
accounts, including independent gift and collectibles retailers, high-end department
stores and selected retail catalogues. Founded in 1979, Boyds has developed a strong
market niche and brand identity in the collectibles market through its reputation for
creating folksy and slightly off-center collectibles, which include plush animals, resin
figurines, porcelain dolls, clothing and accessories.
Copies of the prospectus related to the offering may be obtained from Donaldson, Lufkin
& Jenrette Securities Corporation, 277 Park Avenue, New York, NY 10172; phone:
212-892-3000, or from Merrill Lynch & Co., World Financial Center, North Tower, 250
Vesey Street, New York, NY, 10281; phone: 212-449-1000.
This press release shall not constitute an offer to sell or the solicitation of an offer
to buy the common stock of Boyds nor shall there be any sale of these securities in any
state in which such offer, solicitation, or sale would be unlawful prior to registration
or qualification under the securities laws of any such state.
The Boyds Collection, Ltd. is headquartered at 350 South Street, McSherrystown,
Pennsylvania, 17344. Phone: 717-633-9898
SOURCE The Boyds Collection, Ltd.
CO: Boyds Collection, Ltd.
ST: Pennsylvania
IN: HOU
IPO FILINGS - Summary of Companies Registering for an IPO
Thanks, John, for sending the following in:
PrimeZone Media Network - December 29, 1998 00:35
LOS ANGELES, Dec 29 (IPO Monitor) -- The following
companies recently
filed a registration statement with the SEC for an Initial Public Offering:
Boyds Collection LTD -- Mcsherrystown, PA (NYSE: FOB)
Designs, imports and distributes specialty giftware products
Shares Offered: N/A
Filing Price: N/A
Max. Amount Allowed: $250,000,000 (maximum offering allowed by filing)
Lead Underwriter(s): Donaldson Lufkin & Jenrette; Merrill Lynch John Rieb
Submited by - jlrieb@earthlink.net
The Boyds Collection Announces Initial Public Offering
NEW YORK--(BUSINESS WIRE)--Dec. 22, 1998--The
Boyds Collection, Ltd. ("Boyds") announced today that it has filed a
registration statement with the Securities and Exchange Commission for an initial public
offering of $250 million of its common stock. Boyds and existing stockholders will both
sell shares in the contemplated offering. The net proceeds from the shares sold by Boyds
in the offering will be used to repay bank debt and to redeem a portion of Boyds' senior
subordinated notes.
The lead managing underwriter for the offering is Donaldson, Lufkin & Jenrette and the
co-managing underwriter for the offering is Merrill Lynch & Co.
Boyds is a leading domestic designer, importer and distributor of branded, high-quality,
hand-crafted collectibles which it sells through a network of approximately 19,350 retail
accounts, including independent gift and collectibles retailers, high-end department
stores, selected retail catalogues and other electronic and retail channels.
A registration statement relating to the common stock has been filed with the Securities
and Exchange Commission but has not yet become effective. These securities may not be sold
nor may offers to buy be accepted prior to the time the registration statement becomes
effective. This release shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of these securities in any state in which such
offer, solicitation or sale would be unlawful prior to the registration or qualification
under the securities laws of any such state.
CONTACT: Donaldson, Lufkin & Jenrette
George Peinado
(212) 892-3249
NOTE from Sally: Just as one must buy
Boyds items through a retailer (not Boyds directly), one must purchase stock through a
broker or brokerage firm (not the company directly). For some basic information on how
this works, try this link
.
What started out as a panic on April
2, 1998 has begun to appear as very good news for Boyds and Collectors alike! The good
news is: financial backing for the company, with The Head Bean Hisself still in control!
Congrats to Boyds! Thanks to Diane, who first brought the story to our attention on the
Contest Lady Message Board, and to Cindy and Karen for their great job at finding the
stories and sharing them with the rest of us.
Here is the news as it unfolded :
First Story to appear
April 2 /PRNewswire
April 3 Harrisburg Patriot News
Sally's Opinion 1 (hey's it's my web site -I can do that!)
Sally's Opinion 2
4-5-98 BREAKING NEWS!! - the Head Bean Comments on the hubbub!!
4-14-98 More Boyds News!
The
Patriot-News in Harrisburg PA Thursday April 2, 1998 quoted:
Thanks to diane@heavenlyyours.com (Diane
Yeager) for sharing this.
Sale of area collectible-bear firm expected
Kohlberg Kravis Roberts & Co. is expected to buy closely held
Boyds Collection Ltd. for more than $600 million, according to people familiar with the
discussions. For New York-based buyout firm KKR the purchase is an opportunity to
capitalize on the wide profit margins in the business of selling collectible teddy bears
and dolls, the people said.
Boyds Collection, based in Gettysburg, is run by Gary Lowenthal. The company designs and
distributes stuffed and resin characters from bears to Santa Claus. As of December, the
collection included more than 600 stuffed animals and 300 resin figures. KKR
is one of the oldest buyout firms in New York and manages the world's largest leverage
buyout fund of $6 billion. "This is truly a license to print money," said
Chris Byrne, editor of Playthings MarketWatch, a weekly newsletter that follows the toy
industry. Byrne said price mark-ups in the collectible business can exceed five
times the production cost of a product. He said the market for collectibles in the United
States is about $14 billion. Officials at KKR declined to comment yesterday, and
calls to Boyds were not returned.
Sally-above is the article-word for word as it appeared in the paper.
My two cents worth
by Sally April 2
I called the Boyds Company and they would not confirm or deny the rumor. They said
they knew nothing about the story.
I am going to remain calm, as I think within a day or two there
will be some official confirmation or denial of the story.
I've been thinking - - it does make sense if you stop to think about it.... Gary has been
the chief cook and bottle washer of Boyds since day one. It's no secret that Boyds has had
many troubles in the past few years keeping up with the demand. The collectors are
demanding (yes, we CAN be! LOL), the retailers, club members, I'm sure he gets it from
everyone! It makes sense that Boyds may have just reached the point of sink or swim in
regards to the future of the company.
Also, I cannot imagine Gary walking away from Boyds. It's his baby, and I would be
surprised if he were no longer interested in its direction and creative elements. I would
think the company would retain him as an artist and official spokesperson.
I really feel there is more than meets the eye here. Hopefully we will find out soon.
One last thought - could YOU walk away from or turn down $600 MILLION for something which
you created and slaved over for many years? Maybe I'm weak or shallow, but I'd take it in
a heartbeat!!
Keeping my fingers crossed, too!
sally ContestLady@webspresso.com
From
the AOL BOYDS BOARD:
Cnorthup55@aol.com (Cindy)
posted this story, from the AOL NEWS FILES:
NEW YORK, and McSHERRYSTOWN, Pa., April 2 /PRNewswire/ -- Kohlberg
Kravis Roberts & Co. (KKR) and The Boyds Collection, Ltd. ("Boyds") today
announced a definitive agreement under which KKR will make an equity investment in Boyds.
Gary Lowenthal, the company's co-founder, CEO and President, will remain in place and will
continue to have a significant ownership stake in the company. Terms of the transaction
were not disclosed.
Boyds is a leading domestic designer, importer and distributor of high-quality,
hand-crafted collectibles which it sells through a network of approximately 17,350 retail
accounts, including independent gift and collectibles retailers, high-end department
stores, selected retail catalogues and other channels.
"Over the past 20 years, Boyds has built a strong market position with a premier
brand name, distinctive products and an attractive business model," said Scott
Stuart, a KKR executive. "We believe the company is extremely well-positioned to
capitalize on the collectibles industry's very attractive fundamentals. We have a lot of
respect for the job Gary Lowenthal and his management team have done over the years and we
are very excited to be making
this investment alongside them."
"I am very pleased to welcome KKR as our partners in Boyds," said Mr. Lowenthal.
"We believe the combination of KKR's financial and business expertise and Boyds'
creativity will create a strong platform on which we can continue to build on Boyds
history of successful growth and excellence. Furthermore, we think they're the greatest
thing since sliced bread."
Founded in 1979, Boyds is headquartered in McSherrystown, Pennsylvania and has developed a
strong market niche and brand identity in the collectibles market through its reputation
for creating folksy and slightly off-center collectibles, which include plush animals,
resin figures, dolls, clothing and accessories.
KKR is a private investment firm headquartered in Menlo Park, CA and New York, NY.
SOURCE Kohlberg Kravis Roberts & Co.
CO: Kohlberg Kravis Roberts & Co.; Boyds Collection, Ltd.
ST: Pennsylvania, New York, California
Thanks to Contest Lady Message Board Contributor Karen (klc@paonline.com)
From April 3 Harrisburg Patriot News
"Investment firm hooks up with Boyds" - from Wire Reports
Kohlberg Kravis Roberts & Co. said yesterday it will invest in The Boyds Collection
Ltd., a privately held designer, importer and distributor of hand-crafted collectible
teddy bears, dolls and other toys. Gary Lowenthal, Boyds co-founder, chief executive
officer and president, will remain in place and continue to have a significant ownership
stake in the company.
KKR did not disclose terms of the agreement, but people familiar with the company said the
investment values Boyds at about $600 million.
Boyds, based in McSherrystown, Adams County, sells its products through a network of about
17,350 retail outlets, including independent gift retailers, high-end department stores,
catalogs and on the QVC home-shopping television network.
"Over the past 20 years, Boyds has built a strong market position with a premier
brand name, distinctive products and an attractive business model," said Scott
Stuart, a KKR executive. "We believe the company is extremely well-positioned to
capitalize on the collectibles industry's very attractive fundamentals.
Founded in 1979, Boyds has developed a strong market niche and brand identity in the
collectibles market through its reputation for creating folksy and slightly off-center
collectibles, which include plush animals, resin figures, dolls, clothing and accessories.
"I am very pleased to welcome KKR as our partners in Boyds," said Lowenthal.
"We believe the combination of KKR's financial and business expertise and Boyds'
creativity will create a strong platform on which we can continue to build on Boyds
history of successful growth and excellence."
KKR is a private investment firm with offices in Menlo Park, Calif., and New York. It
manages the world's largest leveraged buyout fund of $6 billion.
Sally's two more
cents worth! April 3
HI everyone! Thanks for using my board
to voice your thoughts! I have been on the phone with many folks regarding this story. Now
that the dust has settled, I'll like to add another 2 cents worth (that make 4 cents so
far!).
1) If you go back and look at the first story that broke yesterday, it appears to be
poorly written and full of speculation.
"K K R & Co. is expected to buy closely held Boyds Collection Ltd. for more than
$600 million". Key words EXPECTED TO BUY.
2) We now know that Boyds was not purchased by anyone. Gary was not handed 600 million
dollars for his personal pleasure! We do have confirmation of a "definitive agreement
under which KKR will make an equity investment in Boyds." It doesn't even say how
much of an investment was made.
3) I think this will be great for everyone! More cash flow for Boyds, to ship, employ
workers, buy supplies, etc, etc, etc! Gary has always said that he would not go public.
This deal allows Boyd to expand, puts a financial "shot in the arm" to the
company. It's a calculated risk for KKR, and it's not taking the life savings of Boyds
Collectors who might be willing to buy stock, which is always risky (even though today it
seems like it would be a great investment - could change tomorrow!).
4) This kind of deal goes down everyday in corporate America. And had that initial report
not been so poorly written, and just downright inaccurate, this deal may have gone by
unnoticed by most of us.
Well, time will tell, but I really feel with Gary still in control, we can pretty much
rest easy. That's my (never to be humble) opinion.
THE
HEAD BEAN HISSELF SPEAKS!! From The Boyds Forum Board
Name:gml
E-mail: Location:gburg, pa USA
Host/Time:204.183.206.89 -
Sun Apr 5 16:36:21 1998
ok so here's the deal... reason..1.it's simply gotten too big for little ol me the biology
major to run...to much dealing with banks, shippin delays, disappointed customers etc Tina
and I just needed some HEEELLLPPP! 2. KKR has a history of helping companies when and
where they request it and BUTTING OUT (like in how many dealerships, quality of goods ,
type of product and price of product etc) where they are not wanted...Tina and I checked
out about 6 -8 of their companies very carefully and they all said that was true. 3-Tina
and I still own an emoungous chunk of Boyds and will still be President Ceo head Bean etc
for as long as I wish to be...KKR would like it to be 50 years or more but I will have to
retire before I am 100. I would like to look for a President and have asked KKr to help
me, to take over all the drudge stuff...legal,operational,sales, taxes and stuff I hate to
do and am bad at...this wll leave me a shedload more time to do the things I like to do
and am good at..ie. product development, personal apperances and torturing Mary
Beth....although she has gotten her 'licks in lately. Anywho...as far as I AND Henry
Kravis and Scott Stuart from KKR are concerned "If it ain't broke ...don't fix
it" and obviously henry and scott don't think any thing is really broke otherwise
they wouldn't have come near us with a ten foot pole.. So...no price changes, no
additional merch flooding the stores, no 50,000 dealerships no changes at all in fact.
Maybe some better shipping and some more dealerships in Japan thas about it. If I could
I'd lie to ya I would but I haven't yet( well that sheep thing just couldn't be explained
any other way so that doesn'T count!!!} and don't think I'll start yet. but if you see
some changes in the next year ya don't like you know where to reach me...I ain't goin
anywhere... reason4...i could use the money (and no the papers got the figures
wrong...again} anyway hang in there and thanks for your continued support. best thb
P>S> you e- mail wonks could you plse post this on the contest ladys board I
really don't want to write this up again.
Sign Time: April 05 1998 at 16:58:19
This from the AOL business news ( the
bolded text for emphasis by me)
The Boyds Collection Subordinated Notes Rated B- Bank Ln B+ by S&P (thanks to
the folks who first brought this to our attention on the various bulletin boards)
NEW YORK, April 14 /PRNewswire/ -- Standard & Poor's today assigned its
single-'B'-minus rating to The Boyds Collection, Ltd.'s $175 million senior subordinated
notes due 2008 and its single-'B'-plus rating to the company's $365 million of bank
facilities. A single-'B'-plus corporate credit rating also was assigned. Proceeds from the
notes and the bank facilities will be used to fund the recapitalization and
acquisition of 80% of the company by a subsidiary of Kohlberg Kravis Roberts
& Co. L.P.
The rating is based on the highly leveraged financial condition of the company following
the acquisition, offset by Boyds' established niche position in the highly fragmented
collectibles industry and strong cash flows. The company markets and distributes a number
of collectible items, primarily consisting of resin figurines and plush animals. Within
the resin figurine segment, Boyds markets different lines that appeal to different
consumer tastes and preferences, such as "Bearstones," "Folkstones,"
and "Dollstones." Sales of Boyds' collectibles have grown rapidly in the past
few years, indicating continued consumer support. Still, sustained consumer interest in
the Boyds product lines remains a key rating concern. In particular, Boyds has
benefited from the services of its founder and it is unclear if his impact will be the
same in his new role at the company.
Boyds relies heavily on foreign manufacturing, with about 95% of products sourced from the
People's Republic of China. Risk of delivery disruption is somewhat mitigated for this
company given the absence of holiday-oriented products. Although payments are denominated
in U.S. dollars, costs fluctuate with the value of the Chinese currency. While posing some
foreign exchange risk, Boyds to date has enjoyed pricing flexibility due to the popularity
of the product line and the company's broad distribution, with over 17,650 retail
accounts.
Boyds will be highly leveraged at inception, with earnings before interest, taxes,
depreciation, and amortization (EBITDA) to interest, pro forma for the transaction, of 1.9
times (x) for fiscal 1997; this is expected to improve to over 2x in fiscal 1998. EBITDA
to debt is about 6.3x, but is also expected to improve with debt repayment. The company
generates impressive levels of free cash flow due to high profitability, low use of
working capital despite its growth, and offshore sourcing for its products, providing
solid coverage of required term loan payments. Additional financial flexibility is ample
with an unused, $40 million revolving credit. The company experiences little seasonality
and has minimal seasonal working capital buildups.
The bank loan rating is single-'B'-plus, the same as the corporate credit rating. Based on
Standard & Poor's simulated default scenario, it is not clear that a distressed
enterprise value would be sufficient to cover the entire loan facility.
OUTLOOK: POSITIVE
Despite the company's rapid growth over the last three years, Standard & Poor's views
the company's market strength as a strong niche position in the collectibles industry. To
offset a fairly high degree of business risk, the company's credit statistics will need to
be stronger than the rating. Still, given the company's strong cash flow and the
likelihood that Boyds will delever rapidly, an upgrade would be considered as the company
improves its credit profile over the medium term. -- CreditWire
SOURCE Standard & Poor's CreditWire
CO: Boyds Collection Ltd.
ST:
IN: REA FIN
SU: RTG
04/14/98 18:09 EDT http://www.prnewswire.com
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