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Corgi International 6-K 2006
For the month of February, 2006 Commission File Number 000-22161
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ...... Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ......
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
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| Exhibit No. |
Description | |
| 99.1 | Press release dated February 13, 2006 | |
| 99.2 | Press release dated February 17, 2006 | |
page 2
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, thereunto duly authorized.
| CORGI INTERNATIONAL LIMITED | ||
| (Registrant) | ||
| Date: March 1, 2006 |
/s/ Ken Fowler | |
|
Ken Fowler Chief Financial Officer | ||
page 3
Exhibit 99.1
Press Release dated February 13, 2006
Corgi Introduces iCar(TM) -- The iPod(R) Accessory That Flashes, Jumps, Dances and Pumps up the Volume
CHICAGO--Feb. 13, 2006--Corgi International Limited (NASDAQ:CRGI), the leading name in die-cast scale models, announced today the introduction of the iCar--the iPod® Accessory to Get Revved Up About!
Are you ready for the coolest iPod experience yet? Then crank up some tunes, plug in and watch the amazing iCar do its thing: It rocks right to left, front to back, and up and down to the music. Colored lights illuminate the wheel wells, rims, undercarriage, engine and trunk areas, and the high-quality speaker pumps out the sound. You can even manually open the doors and hood to create a whole new look.
Brand new for Fall 2006, Corgi's iCar adds a visual element to digital music that has to be seen to be believed. Start with two of the coolest rides on the road, the Cadillac Escalade and Nissan 240SX. Let the model-making wizards at Corgi run wild and turn them into amazingly detailed 1:24 scale replicas.
The Caddy has with real working spinner wheels, wild graphics, chrome accessories, big tires and stereo system. The Nissan turns into a stone-cold drifter, ready to glide like silk over any surface. Then add the most important part -- the input jack. The iCar comes to life when you plug in your digital music player, bringing an element of sound and vision unlike anything that's come before.
Don't have your iPod handy? No problem -- each iCar comes with its own cool music and is ready to do its thing on a moment's notice. Just want to listen to your tunes? iCar has a speaker only mode as well.
The iCar runs on 3 AAA batteries (included) or with an AC adapter, and can connect to any music source that has standard headphone jacks - all iPods, other MP3 players, CD players, stereos and PC's -- with the included cord. Suggested retail price is $34.99. For ages 8 and up.
About Corgi International
Corgi International, based in Hong Kong, sells die-cast collectible products under its own brand. In the U.S. the branded company is known as Corgi USA. Corgi also produces high quality die-cast and plastic products for multinational companies that market collectible or gift items worldwide. The company has a high volume manufacturing operation in China and sales offices worldwide. Retailers and consumers interested in more information can call 1-800-800-CORGI, or visit the company's website at: http://www.corgi-international.com.
Celebrating its 50th Anniversary in 2006, Corgi USA is the worldwide pioneer of collectible die-cast models and replicas. Legendary for its devotion to quality, authenticity and value, Corgi USA creates products to delight the entire family. Consumers can receive more information about the company and its line of products by calling 1-800-800-CORGI, or visiting us at:http://www.corgi-usa.com
Corgi USA, Inc is a wholly owned subsidiary of Corgi International Ltd. (NASDAQ:CRGI)
To retrieve downloadable artwork, go to: http://www.Corgi-USA.com/Media
iPod® is a registered trademark of Apple Computer, Inc.
Exhibit 99.2
Press Release dated February 17, 2006
Corgi International Limited (Nasdaq:CRGI) Announces Third Quarter Results
HONG KONG--Feb. 17, 2006--Corgi International Limited (NASDAQ:CRGI) today announced results of operations for the third quarter of fiscal year 2006, ended December 31, 2005. Net sales for the quarter were $7.5 million, compared to $12.2 million for the same quarter in the previous year. Gross profit for the third quarter of fiscal year 2006 was $2.3 million, compared to $4.6 million in the same quarter in the previous year. Net loss for the third quarter of fiscal year 2006 was $5.9 million, or $0.60 loss per share (basic and diluted), compared to a net loss of $2.0 million, or $0.21 loss per share (basic and diluted), in the same quarter of the previous year.
Management has been proceeding in an effort to dispose of Zindart Manufacturing Limited, the company's manufacturing division. The estimated loss on disposal will be approximately $3.5 million (including related goodwill impairment charges of $0.4 million) if the sale is successfully concluded. In accordance with Financial Accounting Standard 144, a $3.5 million write-down of the disposal group was recognized during the third quarter of fiscal year 2006 to reflect the estimated fair value thereof. Losses from discontinued operations for the third quarter of fiscal year 2006 reflect this write-down, offset by approximately $69,000 in income from such operations. Loss from discontinued operations in the third quarter of fiscal year 2005 was $585,000. The sale is targeted to close by the end of March, subject to certain conditions.
For the nine months ended December 31, 2005, net sales were $28.1 million, compared to $32.9 million for the same period in 2004. Gross profit for the first nine months of fiscal year 2006 was $10.0 million, compared to $13.4 million for the same period in the previous year. Net loss for the first nine months of fiscal year 2006 was $8.0 million, or $0.82 per share (basic and diluted), compared to a net loss of $3.9 million, or $0.42 per share (basic and diluted), for the same period in the previous year.
George Volanakis, the company's Chief Executive Officer, said, "We are continuing with our cost-cutting efforts, which are showing results. In the third quarter of fiscal 2006, selling, general and administrative expenses were $4.8 million, compared with $6.2 million in the third quarter of fiscal 2005. For the year to date, selling, general and administrative expenses have decreased by $2.7 million compared to last year."
Mr. Volanakis continued, "The poor sales performance in the third quarter of fiscal 2006 was largely due to later than normal receipt of collectible orders in the UK and slower than planned delivery of stock from the Orient to Corgi's UK operation. Most of the third quarter shortfall should be recovered in the fourth quarter."
"Corgi is expecting significant growth in its European and Australasia businesses, as well as significant incremental business from our new iCar product in the U.S. and U.K.," he added. The iCar is an iPod accessory that adds a visual element to digital music. The detailed replicas of the Cadillac Escalade and Nissan 240SX move to the music and colored lights illuminate various parts of the cars as the high-quality speakers broadcast music from all iPods and other MP3 players. The iCar also comes with its own "in store" demonstrable sample music.
Volanakis concluded, "We also expect new business will come in upcoming quarters from other new toy products and the 50th anniversary products. We believe the introduction of new products and the focus on higher margin offerings, combined with our cost-cutting efforts, will be reflected in improved operating performance in upcoming quarters."
About Corgi International
Corgi International, based in Hong Kong, sells die-cast collectible products under its own brand. In the U.S., the company is known as Corgi USA. Corgi also produces high quality die-cast and plastic products for multi-national companies that market collectible or gift items worldwide. Corgi has a high-volume manufacturing operation in China and sales offices worldwide. Retailers and consumers interested in more information can call 1-800-800-CORGI, or visit the company's website at: http://www.corgi-international.com.
Cautionary note regarding forward-looking statements
Certain statements in this release are forward-looking. These
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those anticipated. Such risks
and uncertainties include, without limitation, timing of product
shipments, the timing and availability of cost-reduction measures,
changes in market demand for Corgi products, changes in economic
conditions, dependence on certain customers and other risks described
in the company's annual report on Form 20-F for the fiscal year ended
March 31, 2005. The company undertakes no obligation to revise these
forward-looking statements to reflect subsequent events or
circumstances.
Tables to follow
CORGI INTERNATIONAL LIMITED AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited) (Unaudited)
As of As of As of
December March December
31, 31, 31,
2005 2005 2004
ASSETS
Current assets:
Cash and cash equivalents 3,503 $ 7,012 $ 9,600
Available-for-sale investments 6 25 25
Trade accounts receivable, net 3,914 6,579 14,358
Other assets 10,051 10,666 21,526
Assets of discontinued operations 24,250 29,243 --
----------- ------- -----------
Total current assets 41,724 53,525 45,509
Property, plant, and equipment, net 6,800 7,933 21,943
Other long term assets 1,821 1,874 2,865
Goodwill 35,312 35,312 35,726
----------- ------- -----------
Total assets 85,657 $98,644 $ 106,043
=========== ======= ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and current
installments of long-term debt 3,139 $ 3,876 $ 14,347
Trade accounts payable 3,323 4,450 13,203
Other current liabilities 4,299 3,264 10,370
Liabilities of discontinued operations 21,448 23,073 --
----------- ------- -----------
Total current liabilities 32,209 34,663 37,920
Long-term liabilities -- 235 1,381
----------- ------- -----------
Total liabilities 32,209 34,898 39,301
----------- ------- -----------
Minority interests 105 693 708
----------- ------- -----------
Stockholders' equity:
Common stock 625 623 621
Additional paid-in capital 40,280 40,229 39,975
Retained earnings 11,645 19,590 22,757
Accumulated other comprehensive income 793 2,611 2,681
----------- ------- -----------
Total stockholders' equity 53,343 63,053 66,034
----------- ------- -----------
Total liabilities and stockholders'
equity 85,657 $98,644 $ 106,043
=========== ======= ===========
CORGI INTERNATIONAL LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except share data)
Three months ended
December 31,
(Unaudited) (Unaudited)
2005 2004
Net sales $ 7,450 $ 12,249
Cost of goods sold (5,132) (7,614)
----------- -----------
Gross profit 2,318 4,635
Selling, general, and administrative expenses (4,788) (6,160)
----------- -----------
Operating loss (2,470) (1,525)
Other income (expense):
Interest income 15 40
Interest expense (127) (174)
Other income (loss) 64 (359)
----------- -----------
Loss before income taxes and
minority interests (2,518) (2,018)
Income tax benefit 65 207
----------- -----------
Loss from continuing operations (2,453) (1,811)
Income (loss) from discontinued operations,
net of tax (including gain on disposal
of $984 in 2004) (3,426) (585)
----------- -----------
Loss before extraordinary items (5,879) (2,396)
Extraordinary gain, net of nil tax -- 418
----------- -----------
Net loss (5,879) (1,978)
=========== ===========
Loss per common share:
Basic:
Loss from continuing operations $ (0.25)$ (0.19)
Income (loss) from discontinued operations (0.35) (0.06)
Extraordinary gain -- 0.04
----------- -----------
Net loss $ (0.60)$ (0.21)
=========== ===========
Diluted:
Loss from continuing operations $ (0.25)$ (0.19)
Income (loss) from discontinued operations (0.35) (0.06)
Extraordinary gain -- 0.04
----------- -----------
Net loss $ (0.60)$ (0.21)
=========== ===========
Weighted average number of common shares
outstanding:
Basic 9,671,943 9,603,954
=========== ===========
Diluted 9,671,943 9,603,954
=========== ===========
CORGI INTERNATIONAL LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except share data)
Nine months ended
December 31,
(Unaudited) (Unaudited)
2005 2004
----------- -----------
Net sales $ 28,102 $ 32,882
Cost of goods sold (18,056) (19,477)
----------- -----------
Gross profit 10,046 13,405
Selling, general, and administrative expenses (15,520) (18,215)
----------- -----------
Operating loss (5,474) (4,810)
Other income (expense):
Interest income 70 83
Interest expense (474) (516)
Other income (loss) 776 (212)
----------- -----------
Loss before income taxes and
minority interests (5,102) (5,455)
Income tax benefit 472 707
----------- -----------
Loss from continuing operations (4,630) (4,748)
Income from discontinued operations, net of
tax (including gain on disposal
of $984 in 2004) (3,315) 394
----------- -----------
Loss before extraordinary items (7,945) (4,354)
Extraordinary gain, net of nil tax -- 418
----------- -----------
Net loss (7,945) (3,936)
=========== ===========
Loss per common share:
Basic:
Loss from continuing operations $ (0.48)$ (0.50)
Income from discontinued operations (0.34) 0.04
Extraordinary gain -- 0.04
----------- -----------
Net loss $ (0.82)$ (0.42)
=========== ===========
Diluted:
Loss from continuing operations $ (0.48)$ (0.50)
Income from discontinued operations (0.34) 0.04
Extraordinary gain -- 0.04
----------- -----------
Net loss $ (0.82)$ (0.42)
=========== ===========
Weighted average number of common shares
outstanding:
Basic 9,653,379 9,440,371
Diluted 9,653,379 9,440,371
=========== ===========
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