0000950123-95-002329.txt : 19950815 0000950123-95-002329.hdr.sgml : 19950815 ACCESSION NUMBER: 0000950123-95-002329 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950814 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GALOOB LEWIS TOYS INC /DE/ CENTRAL INDEX KEY: 0000751968 STANDARD INDUSTRIAL CLASSIFICATION: GAMES, TOYS & CHILDREN'S VEHICLES (NO DOLLS & BICYCLES) [3944] IRS NUMBER: 941716574 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09599 FILM NUMBER: 95563304 BUSINESS ADDRESS: STREET 1: 500 FORBES BLVD CITY: SOUTH SAN FRANCISCO STATE: CA ZIP: 94080 BUSINESS PHONE: 4159521678 10-Q 1 FORM 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 FORM 10-Q (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES --- EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1995 ---------------------------------------- OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES --- EXCHANGE ACT OF 1934 For the transition period from to ------------- ------------- Commission file number 1-9599 ------------- LEWIS GALOOB TOYS, INC. ------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 94-1716574 ------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification incorporation or organization) Number) 500 Forbes Boulevard, South San Francisco, California 94080 ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (415) 952-1678 ------------------- Former name, former address and former fiscal year, if changed since last report Indicate by check whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No --- --- APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common stock, par value $.01, 10,070,889 as of June 30, 1995. 2 LEWIS GALOOB TOYS, INC. AND SUBSIDIARIES INDEX PART I - FINANCIAL INFORMATION -------------------------------- Item 1 Page - Condensed Consolidated Balance Sheets 1 - Condensed Consolidated Statements of Operations 2 - Condensed Consolidated Statements of Cash Flows 3 - Notes to Condensed Consolidated Financial Statements 4-5 Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations 6-9 PART II - OTHER INFORMATION ----------------------------- Item 1 - Legal Proceedings 10 Item 3 - Defaults Upon Senior Securities 10 Item 4 - Submission of Matters to a Vote of Security Holders 11 Item 6 - Exhibits and Reports on Form 8-K 11 SIGNATURE 12 ---------
3 LEWIS GALOOB TOYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
(Unaudited) (Unaudited) (Audited) June 30 June 30 December 31 ASSETS 1995 1994 1994 ------ ---------- ---------- ----------- CURRENT ASSETS: Cash and cash equivalents $ 1,106 $ 2,524 $ 2,225 Accounts receivable 43,189 36,636 57,883 Inventories 18,004 14,528 16,824 Tooling and related costs 8,095 4,507 8,379 Prepaid expenses and other assets 14,535 8,578 5,492 ------- ------- -------- TOTAL CURRENT ASSETS 84,929 66,773 90,803 LAND, BUILDING AND EQUIPMENT, NET 8,233 8,452 8,400 OTHER ASSETS 1,586 1,379 1,563 ------- ------- -------- $94,748 $76,604 $100,766 ======= ======= ======== LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ CURRENT LIABILITIES: Notes payable $17,147 $ 0 $ 6,971 Accounts payable 12,768 8,260 14,973 Accrued expenses 9,467 14,701 14,939 Income taxes payable 272 400 499 Current portion of long-term debt 213 205 202 ------- ------- ------- TOTAL CURRENT LIABILITIES $39,867 $23,566 $37,584 LONG-TERM DEBT 18,309 18,510 18,414 SHAREHOLDERS' EQUITY: Preferred stock Authorized 1,000,000 shares Issued and outstanding 183,950 shares of $17 Convertible Exchangeable Preferred Stock at $200 liquidation value per share 36,790 36,790 36,790 Common stock, par value $.01 per share Authorized 50,000,000 shares Issued and outstanding 10,070,889 shares, 10,065,589 shares and 10,055,089 shares 101 101 101 Additional paid-in capital 31,638 31,585 31,506 Retained earnings (deficit) (31,510) (33,501) (23,182) Cumulative translation adjustment (447) (447) (447) ------- ------- -------- TOTAL SHAREHOLDERS' EQUITY 36,572 34,528 44,768 ------- ------- -------- $94,748 $76,604 $100,766 ======= ======= ========
The accompanying notes are an integral part of these Consolidated Financial Statements. 1 4 LEWIS GALOOB TOYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited)
Three Months Ended Six Months Ended June 30 June 30 ---------------------- --------------------- 1995 1994 1995 1994 ------- ------- ------- ------- Net revenues $38,219 $33,720 $71,560 $63,955 Costs of products sold 27,088 21,119 49,576 38,681 ------- ------- ------- ------- Gross margin 11,131 12,601 21,984 25,274 Operating expenses: Advertising and promotion 5,358 6,253 9,662 12,216 Other selling and administrative 7,067 5,546 14,836 11,326 Research and development 2,130 2,485 4,466 4,540 ------- ------- ------- ------- Total operating expenses 14,555 14,284 28,964 28,082 ------- ------- ------- ------- Earnings (loss) from operations (3,424) (1,683) (6,980) (2,808) Net proceeds from Nintendo award 0 12,124 0 12,124 Interest expense (737) (576) (1,387) (1,133) Other income (expense), net 74 202 109 236 ------- ------- ------- ------- Earnings (loss) before income taxes (4,087) 10,067 (8,258) 8,419 Provision for income taxes 0 314 0 314 ------- ------- ------- ------- Net earnings (loss) (4,087) 9,753 (8,258) 8,105 Preferred stock dividends in arrears 782 782 1,564 1,564 ------- ------- ------ ------- Net earnings (loss) applicable to common shares $(4,869) $ 8,971 $ (9,822) $ 6,541 ======= ======= ======== ======= Common shares and common share equivalents outstanding - average 10,067 9,881 10,064 9,889 Net earnings (loss) per common share: Primary ($0.48) $0.91 ($0.98) $0.66 Fully diluted ($0.48) $0.74 ($0.98) $0.62
The accompanying notes are an integral part of these Consolidated Financial Statements. 2 5 LEWIS GALOOB TOYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
(Unaudited) Six Months Ended June 30 --------------------------- 1995 1994 -------- ------- CASH FLOW FROM OPERATING ACTIVITIES: Net earnings (loss) $ (8,259) $ 8,105 Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Depreciation 130 331 Changes in assets and liabilities: Accounts receivable 14,695 (3,253) Inventories (1,180) (1,549) Tooling and related costs 284 513 Prepaid expenses and other assets (9,066) 2,311 Accounts payable (2,205) (2,574) Accrued expenses (5,461) (3,701) Income taxes payable (227) 118 -------- ------- Net cash provided by (used in) operating activities (11,289) 301 -------- ------- CASH FLOW FROM INVESTING ACTIVITIES: Investment in land, building and equipment, net 37 (221) -------- ------- Net cash provided by (used in) investing activities 37 (221) -------- ------- CASH FLOW FROM FINANCING ACTIVITIES: Net borrowings under notes payable 10,176 - Repayments under long-term debt agreements (105) (96) Proceeds from issuance of common stock 62 241 Other, net 0 (26) -------- ------- Net cash provided by (used in) financing activities 10,133 119 -------- ------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,119) 199 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,225 2,325 -------- ------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,106 $ 2,524 ======== =======
The accompanying notes are an integral part of these Consolidated Financial Statements. 3 6 LEWIS GALOOB TOYS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 1995 (Unaudited) NOTE A - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The condensed consolidated balance sheets as of June 30, 1995 and 1994 and the condensed consolidated statements of operations for the three and six month periods ended June 30, 1995 and 1994 and the condensed consolidated statements of cash flows for the six month periods ended June 30, 1995 and 1994 have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 1994. The results of operations for the three and six month periods ended June 30, 1995 and 1994 are not necessarily indicative of the operating results for the full year. Certain amounts in the financial statements of prior years have been reclassified to conform with the current year's presentation. NOTE B - CREDIT AGREEMENT The Company was party to a loan and security agreement (the "Loan Agreement") with Congress Financial Corporation (Central) (the "Lender") which made available to the Company through March 31, 1995 a line of credit up to $30 million. Borrowing availability was determined by a formula based on accounts receivable. The interest rate was prime plus 2%. On March 31, 1995, the Company entered into an amended and restated loan and security agreement (the "New Agreement") with the Lender. The New Agreement extends the loan term through March 31, 1997 and provides a line of credit of $40 million, with a provision to increase the line to $60 million at the option of the Company. Borrowing availability is determined by a formula based on both accounts 4 7 LEWIS GALOOB TOYS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 1995 (Unaudited) receivable and inventories. The interest rate is prime plus 1% (1% lower than the rate applicable to the Loan Agreement). In consideration for entering into the New Agreement, the Company paid a $100,000 fee; additional fees will be due if the Company exercises its option to increase the line. The Company has also agreed to pay an unused line fee of 0.25% and certain management fees. The New Agreement provides that the preferred dividend payments may not be made without the prior consent of the Lender. NOTE C - INVENTORIES
(in thousands) June 30 December 31 ------------------------ ----------- 1995 1994 1994 ------- ------- ------- Finished goods $17,120 $11,195 $15,596 Raw materials and parts 884 3,333 1,228 ------- ------- ------- $18,004 $14,528 $16,824 ======= ======= =======
NOTE D - INCOME TAXES At December 31, 1994, the Company had federal and California net operating loss carryforwards for income tax purposes of approximately $11,500,000 and $1,000,000, respectively. The federal and California carryforwards expire in different years through the year 2008 and 1998, respectively. The Company also has federal minimum tax credit carryforwards of $944,000 that are allowed to be carried forward indefinitely and federal research and development credits of $765,000, which will expire in different years through the year 2003. If certain substantial changes in the Company's ownership should occur, there would be an annual limitation on the amount of operating loss carryforwards which can be utilized. The Company expects to utilize a substantial amount of its net operating loss carryforwards by 1996. No domestic deferred taxes have been provided on undistributed earnings of the company's foreign subsidiary. All such earnings are expected to be reinvested in the subsidiary. Undistributed earnings were approximately $5,500,000 as of December 31, 1994. No foreign taxes will be withheld on the distribution of the untaxed earnings. NOTE E - LEGAL PROCEEDINGS The current status of litigation is described in Part II, Item 1, herein. 5 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations The following table sets forth for the periods indicated the percentage relationships between revenues and certain expense and earnings items:
Percentage of Net Revenues ------------------------------------------------------- Three Six Months Ended Months Ended June 30 June 30 ---------------------- -------------------- 1995 1994 1995 1994 ------ ------ ------ ------ Net revenues 100.0% 100.0% 100.0% 100.0% Costs of products sold 70.9 62.6 69.3 60.5 ------ ------ ------ ------ Gross margin 29.1 37.4 30.7 39.5 Advertising and promotion 14.0 18.5 13.5 19.1 Other selling and administrative 18.5 16.5 20.7 17.7 Research and development 5.6 7.4 6.3 7.1 ------ ------ ------ ------ Earnings (loss) from operations (9.0) (5.0) (9.8) (4.4) Net proceeds from Nintendo award -- 35.9 -- 19.0 Interest expense (1.9) (1.7) (1.9) (1.8) Other income (expense), net 0.2 0.6 0.2 0.4 Provision for income taxes 0.0 (0.9) 0.0 (0.5) ------ ------- ------ ------- Net earnings (loss) (10.7%) 28.9% (11.5%) 12.7% ====== ======= ====== =======
1995 Compared to 1994 Net revenues of $38.2 million in the second quarter of 1995 represented a 13% increase from net revenues of $33.7 million in the second quarter of 1994. The sales increase was led by continuing strong worldwide demand for the Sky Dancers(TM) flying doll and record overall international sales over the same period in 1994. Sky Dancers(TM) sales were $14.3 million in the second quarter of 1995. This product was first introduced in late 1994. International sales overall were $18.8 million in 1995 as compared to $10.7 million over the same period in 1994. The Company's international group has now set sales records in four consecutive quarters. Micro Machines(TM) sales were $14.6 million in the second quarter of 1995 as compared to $20.3 million in the same period in 1994. The decrease in sales is mainly attributable to the Micro Machines Z-Bots segment and the decline in the Z-Bots segment is expected to continue. 6 9 LEWIS GALOOB TOYS, INC., AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued Biker Mice from Mars(TM) sales were $6.0 million in the second quarter of 1995 as compared to $9.4 million in 1994. Domestic sales to retailers have discontinued as planned, while international sales continue to be strong. Net revenues of $71.6 million in the six months period ended June 30, 1995 represented a 12% increase from net revenues of $64.0 million in the same period in 1994. Sky Dancers(TM) and My Pretty Dollhouse(TM) sales were $19.8 million and $3.9 million, respectively. Micro Machines(TM) sales were $28.1 million as compared to $34.1 million in 1994. Biker Mice(TM) Sales were $12.1 million as compared to $18.9 million in 1994. These sales trends reflect the same factors as noted for the second quarter. Gross margins were $11.1 million in the second quarter of 1995 as compared to $12.6 million in the same period in 1994. The higher sales volume increased gross margins by $1.7 million offset by $3.2 million decrease from a lower gross margin rate. The gross margin rate decreased to 29.1% in 1995 from 37.4% in 1994 due mainly to three factors. First, foreign sales as a percentage of worldwide revenues were higher in 1995 compared to 1994. The Company's gross margin on foreign sales is significantly lower than domestic sales because foreign prices are lower as the customer is responsible for the cost of importing and promoting the product. Second, other cost of sales which include tooling costs, were a higher percent of revenues in 1995 as compared to 1994, because of planned increased spending in support of the Company's expanded product lines. Third, international gross margins were lower due to a change in product mix. Gross margins were $22.0 million in the six months period ended June 30, 1995 as compared to $25.3 million in the same period in 1994. The higher sales volume increased gross margins by $3.0 million offset by $6.3 million decrease from a lower gross margin rate. The gross margin rate decrease to 30.7% in 1995 from 39.5% in 1994 is due mainly to the same three factors as noted for the second quarter. Advertising and promotion expenses were $5.4 million in the second quarter of 1995 as compared to $6.3 million in the same period in 1994. For the six months period ended June 30, 1995 these expenses were $9.7 million in 1995 as compared to $12.2 million in 1994. The lower expenses were a result of a decrease in planned television expense as a percent of sales domestically combined with lower domestic sales in both the second quarter and for the six months period ended June 30, 1995 as compared to the same periods in 1994. 7 10 LEWIS GALOOB TOYS, INC., AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued Other selling and administrative expenses were $7.1 million in the second quarter of 1995 as compared to $5.5 million in the same period in 1994. For the six months period ended June 30, 1995, these expenses were $14.8 million in 1995 as compared to $11.3 million in the same period in 1994. The increase in expenses was due mainly to higher planned personnel costs as a result of increased marketing and selling efforts in the second quarter 1995 as compared to 1994. For the six months period ended June 30, 1995 the increase in expenses was due mainly to higher planned personnel costs, higher legal expenses and higher freight costs. Research and development expenses were $2.1 million in the second quarter of 1995 as compared to $2.5 million in the same period in 1994. For the six months period ended June 30, 1995 these expenses were $4.5 million in 1995 and in 1994. The second quarter decrease was due to timing of expenditures in 1995 as compared to 1994. In 1994, the net proceeds from the Nintendo award represents the receipt, net of associated legal and related expenses, of the Company's share of proceeds from the Nintendo litigation. Interest expense was $0.7 million in the second quarter of 1995 as compared to $0.6 million in the same period in 1994. For the six months period ended June 30, 1995 this expense was $1.4 million in 1995 as compared to $1.1 million in the same period in 1994. The increase was due to higher average borrowings and a higher interest rate in 1995 as compared to 1994. In 1995, no tax provisions were recorded due to the Company's net operating loss and tax credit carryforwards. In 1994, the income tax provision reflects the quarterly application of the estimated annual rate based on the projected full year earnings and includes the utilization of net operating loss carryforwards. The Company's products are produced principally in China which currently is designated with "most favored nation" ("MFN") status by the United States. This allows products imported into the United States from China to be accorded the most favored import duties. In late 1994, Congress approved the GATT (Uruguay round) unconditional duty-free entry from any nation with MFN status. Generally, the trade negotiations between China and the United States have been difficult, but both sides have shown their willingness to resolve trade disputes and avoid punitive sanctions. Punitive sanctions could result in the United States imposing higher duties on selective Chinese-made products imported into the United States (these sanctions would be put in place through Section 301). In the past Section 301 sanctions proposed by the 8 11 LEWIS GALOOB TOYS, INC., AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued United States did not include sanctions or punitive duties against toy imports from China. As such, the Company would be unaffected. The loss of MFN status for China would result in a substantial increase in import duty for the Company's products produced in China and imported into the United States. This increase in duty would be large enough that it could materially affect the Company's business. Products shipped to other countries should not be affected. Other toy companies also source product from China and would be affected to similar degrees. However, the impact on the Company from any significant change in duties on its Chinese produced product would depend on several factors including, but not limited to, the Company's ability to: (1) procure alternative manufacturing sources outside of China; (2) retrieve its tooling located in China; (3) relocate its production in sufficient time to meet demand; and (4) pass resultant cost increases through as product price increases. Liquidity, Financial Resources and Capital Expenditures On March 31, 1995, the Company entered into the New Agreement with the Lender. (See Note B of the Notes to Condensed Consolidated Financial Statements.) Working capital was $45.1 million at June 30, 1995 compared to $53.2 million at December 31, 1994 and $43.2 million at June 30, 1994. The ratio of current assets to current liabilities was 2.1 to 1.0 at June 30, 1995 compared to 2.4 to 1.0 at December 31, 1994 and 2.8 to 1.0 at June 30, 1994. The Company had no material commitments for capital expenditures at June 30, 1995. The Company believes that with its assets, the results of operations and the New Agreement it has adequate liquidity and capital resources to meet its current and anticipated operating needs. 9 12 LEWIS GALOOB TOYS, INC., AND SUBSIDIARIES Item 1. Legal Proceedings The Company is involved in various legal and/or litigation matters which are being defended and handled in the ordinary course of business. None of these matters is expected to result in outcomes having a material adverse effect on the Company's consolidated financial position. Item 3. Defaults Upon Senior Securities On June 10, 1992, the Company announced it would not pay the July 1, 1992 $0.425 per share quarterly dividend on its Depositary Shares which represent shares of the Company's Preferred Stock. The Company has not paid the subsequent quarterly dividends. As of June 30, 1995 the dividend was cumulatively thirteen quarters in arrears, representing a total dividend arrearage of $10.2 million. By the terms of the Certificate of Designations for the Company's Preferred Stock, the Company is not legally obligated to pay any such arrearage. The Company believes that it is in its best interest not to reinstate the dividend until the Company has generated consistent net income from operations and continuation of such profitability can be reasonably expected. The net earnings (loss) per share calculation includes a provision for the Preferred Stock dividends in arrears. No common stock dividends may be paid unless all preferred dividend payments are current. As a result of the cumulative dividend being six or more quarters in arrears, on July 15, 1994 the holders of the Preferred Stock exercised their right to elect two directors to the Board of Directors of the Company. 10 13 LEWIS GALOOB TOYS, INC., AND SUBSIDIARIES Item 4. Submission of Matters to a Vote of Security Holders The Company's Annual Meeting of Shareholders was held on June 20, 1995. At the Annual Meeting, the following matters were approved by the common shareholders: 1. The election of Scott R. Heldfond, Paul A. Gliebe, Jr., and Roger Kowalsky to the Board of Directors for a term expiring at the 1998 Annual Meeting of Shareholders and until the election and qualification of their respective successors. There were 8,054,853 votes in favor of Mr. Heldfond and 63,931 withheld. There were 8,050,966 votes in favor of Mr. Gliebe and 67,818 withheld. There were 8,055,764 votes in favor of Mr. Kowalsky and 63,020 withheld. Mark Goldman, Martin Nussbaum, S.Lee Kling and Andrew J. Cavanaugh are other directors of the Company whose terms continue after the meeting. 2. The approval of the 1995 non-employee Directors' Stock Option Plan. There were 7,487,018 votes in favor, 538,531 votes against and 93,235 abstentions. 3. The ratification of the appointment of Price Waterhouse LLP as the Company's independent accountants for fiscal 1995. There were 8,045,945 votes in favor, 36,755 against and 36,084 abstentions. Holders of the Company's Preferred Stock also were present, in person or by proxy, at the Annual Meeting and voted for the election of two directors. 165,559 of 183,950 shares issued and outstanding were represented at the meeting and not less than 164,556 shares voted in favor of the election of Hoffer Kaback and George Riordan as directors to hold office until the earlier to occur of (a) the next Annual Meeting of Shareholders or (b) the date on which the holders of Preferred Stock shall no longer be entitled to designate directors. Item 6. Exhibits, and Reports on Form 8-K (a) Exhibits - Exhibit 27 - Financial Data Schedule (b) Reports on Form 8-K - None 11 14 LEWIS GALOOB TOYS, INC., AND SUBSIDIARIES 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. LEWIS GALOOB TOYS, INC. (Registrant) DATE: August 14, 1995 BY: /s/ William B. Towne ----------------- William B. Towne Executive Vice President, Finance and Chief Financial Officer (Principal Accounting Officer) 12 15 EXHIBIT INDEX Exhibit 27 - Financial Data Schedule
EX-27 2 FINANCIAL DATA SCHEDULE
5 This schedule contains summary financial information extracted from the financial statements of Lewis Galoob Toys, Inc. for the quarter ended June 30, 1995, and is qualified in its entirety by reference to such financial statements. 1,000 3-MOS DEC-31-1995 APR-01-1995 JUN-30-1995 1,106 0 45,455 2,266 18,004 84,929 14,650 6,417 94,978 39,867 18,309 101 36,790 0 (319) 94,748 38,219 38,219 27,088 27,088 14,555 0 737 (4,087) 0 0 0 0 0 (4,087) (0.48) (0.48)