-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HlRk/0HDNllaO2IsaUOz8MpiIYedc/NHIW5j1A+/I9dJ2ii35CJY3wogX3CQXIpb HG8xU9+Qwn8QDlh257tvNg== 0001157523-04-007373.txt : 20040804 0001157523-04-007373.hdr.sgml : 20040804 20040804163625 ACCESSION NUMBER: 0001157523-04-007373 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040804 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040804 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENESCO GROUP INC CENTRAL INDEX KEY: 0000093542 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-MISCELLANEOUS NONDURABLE GOODS [5190] IRS NUMBER: 041864170 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09267 FILM NUMBER: 04952091 BUSINESS ADDRESS: STREET 1: 225 WINDSOR DR. CITY: ITASCA STATE: IL ZIP: 60143 BUSINESS PHONE: 6308755300 MAIL ADDRESS: STREET 1: 225 WINDSOR DR. CITY: ITASCA STATE: IL ZIP: 60143 FORMER COMPANY: FORMER CONFORMED NAME: STANHOME INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: STANLEY HOME PRODUCTS INC DATE OF NAME CHANGE: 19820513 8-K 1 a4695716.txt ENESCO 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: August 4, 2004 -------------- ENESCO GROUP, INC. (Exact name of registrant as specified in its charter) 0-1349 ------ Commission file number Illinois 04-1864170 (State of or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 225 Windsor Drive Itasca, Illinois 60143 ------- -------- ----- (Address of principal executive offices) (Zip Code) (630) 875-5300 -------------- (Registrant's telephone number, including area code) - -------------------------------------------------------------------------------- Item 7. Exhibits A copy of the Press Release issued by Enesco Group, Inc. (the "Company"), dated August 4, 2004, is attached hereto as Exhibit 99 and is incorporated herein by reference. Item 9. Regulation FD Disclosure (Item 12, Results of Operations and Financial Condition) On August 4, 2004, the Company issued a press release regarding its second quarter 2004 earnings. The press release of the Company is attached hereto as Exhibit 99. This information, furnished under this "Item 9. Regulation FD Disclosure", is intended to be furnished under "Item 12. Disclosure of Results of Operations and Financial Condition" in accordance with SEC Release No. 33-8216. 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 hereunto duly authorized. ENESCO GROUP, INC. Date: August 4, 2004 By: /s/ Thomas F. Bradley --------------------- Thomas F. Bradley Chief Financial Officer EXHIBIT INDEX Exhibit No. Description 99 Company Press Release dated August 4, 2004 announcing second quarter 2004 earnings. EX-99 2 a4695716ex99.txt EXHIBIT 99 PRESS RELEASE Exhibit 99 Enesco Group, Inc. Reports Second Quarter 2004 Results ITASCA, Ill.--(BUSINESS WIRE)--Aug. 4, 2004--Enesco Group, Inc. (NYSE:ENC), a leader in the giftware, collectible and home decor industries, today reported results for the second quarter ended June 30, 2004. Second Quarter 2004 Summary -- Revenue of $59.1 million was 3% lower than 2Q'03; gross profit of $26.8 million, decreased by 3% from 2Q'03. -- Second quarter results were impacted by issues relating to the implementation of a new Enterprise Resource Planning (ERP) system and a high concentration of orders late in the second quarter. -- Year-to-date, incoming orders have outpaced last year. Financial Results For the second quarter of 2004, Enesco reported total revenue of $59.1 million, a decrease of 3% when compared to revenue of $60.9 million for the second quarter of 2003. While Enesco's underlying business remained strong, revenue in the U.S. was impacted this quarter by shipping problems related to the implementation of a new ERP system, coupled with a higher than normal concentration of orders late in the second quarter. Gross profit of $26.8 million diminished by 3%, compared to $27.6 million the prior year. However, gross profit, as a percentage of sales remained stable at 45.3%, as the Company continues to focus on higher margin opportunities. Operating expenses were $28.4 million, which was $4.8 million higher than prior year. Expenses for the quarter included $2.2 million for Bilston & Battersea, Walt Disney Art Classics and Gregg Gift, and $.6 million related to foreign currency translation rate impacts. The balance of the increase can be primarily attributed to strategic investments in Enesco's brands and marketing promotions, such as the PM Rocks! campaign, as well as the costs related to the inefficiencies of the ERP system integration. An operating loss of $1.6 million for the second quarter of 2004 compares to operating income of $4 million for the same period in the prior year. Enesco experienced a net loss of $1.2 million or $0.08 per diluted share this quarter compared to net income of $2.2 million or $0.15 per diluted share during the same period last year. "We are disappointed with our performance this quarter and the operational issues we have encountered," said Tom Bradley, CFO and interim CEO of Enesco. "Our implementation team is focused on resolving issues which will allow the system to accommodate our business processes. We are encouraged by the strong demand that exists for our products and would like to express our sincere appreciation for our customers' patience and loyalty during this time." A conference call will be broadcast live on Thursday, August 5, 2004, at 10:00 a.m. Central Time (11:00 a.m. Eastern) at http://www.enesco.com and http://www.streetevents.com. An online replay also will be available approximately one hour after the call. To listen to the Webcast, your computer must have RealPlayer installed. If you do not have RealPlayer, go to http://www.streetevents.com prior to the call, to download RealPlayer for free. For a phone replay, call 800-642-1687. Passcode: 8647935. The replay will be available for one week following the conference call. About Enesco Group, Inc. Enesco Group, Inc. is a world leader in the gift, collectible and home decor industries. Serving more than 40,000 customers globally, Enesco distributes products to a wide variety of specialty card and gift retailers, home decor boutique as well as mass-market chains and direct mail retailers. Internationally, Enesco serves markets operating in Europe, Australia, Mexico, Asia and the Pacific Rim. With subsidiaries located in Europe and Canada, and a business unit in Hong Kong, Enesco's international distribution network is a leader in the industry. The Company's product lines include some of the world's most recognizable brands, including Precious Moments, Walt Disney Classics Collection, Nickelodeon, Heartwood Creek, Halcyon Days, Lilliput Lane, and Border Fine Arts, among others. Further information is available on the Company's web site at www.enesco.com. This press release contains various forward-looking statements that are based on management's current assumptions and beliefs and upon information currently available to management. The Company has tried to identify such forward-looking statements by use of such words as "expects," "intends," "anticipates," "could," "estimates," "plans," and "believes," and similar expressions, but these words are not the exclusive means of identifying such statements. Such statements are subject to various risks, uncertainties and other factors which could cause actual results to vary materially from those anticipated, estimated, expected or projected. Important factors that may cause actual future events or results to differ materially and adversely from those described in the forward-looking statements include, but are not limited: the Company's success in developing new products and consumer reaction to the Company's new products; the Company's ability to secure, maintain and renew popular licenses, particularly our licenses for Precious Moments, Cherished Teddies, Heartwood Creek and Disney; the Company's ability to grow revenues in mass and niche market channels; the Company's ability to identify and close on strategic acquisitions; changes in general economic conditions, as well as specific market conditions; fluctuations in demand for our products; manufacturing lead times; the timing of orders and shipments and our ability to predict customer demands; inventory levels and purchase commitments exceeding requirements based upon incorrect forecasts; collection of accounts receivable; changes in the regulations and procedures affecting the importation of goods into the United States; changes in foreign exchange rates; price and product competition in the giftware industry; variations in sales channels, product costs or mix of products sold; and, possible future terrorist attacks, epidemics, or acts of war. In addition, the Company operates in a continually changing business environment and does not intend to update or revise the forward-looking statements contained herein, which speak only as of the date hereof. Additional information regarding forward-looking statement risk factors is contained in the Company's reports and filings with the Securities and Exchange Commission. In light of these risks and uncertainties, the forward-looking statements contained herein may not occur and actual results could differ materially from those set forth herein. Accordingly, you should not rely on these forward-looking statements as a prediction of actual future results. ENESCO GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Second Quarter and Six Months Ended June 30, 2004 and 2003 (In thousands, except per share amounts) Second Quarter Six Months --------------------------- ----------------------------- 2004 2003 % Change 2004 2003 % Change -------- -------- --------- --------- --------- --------- Net revenues $59,113 $60,886 -3% $109,565 $107,023 2% Cost of sales 32,342 33,277 62,138 60,904 -------- -------- --------- --------- Gross profit 26,771 27,609 -3% 47,427 46,119 3% Gross profit % 45.3% 45.3% 43.3% 43.1% Selling, distribution, general and administrative expense 28,410 23,590 20% 56,288 46,611 21% -------- -------- --------- --------- Operating profit (loss) (1,639) 4,019 (8,861) (492) Interest expense (189) (495) (274) (544) Interest income 143 236 255 406 Other income (expense), net (285) (229) (600) (635) -------- -------- --------- --------- Income (loss) before income taxes (1,970) 3,531 (9,480) (1,265) Income tax expense (benefit) (818) 1,357 (3,926) (648) -------- -------- --------- --------- Net income (loss) $(1,152) $2,174 $(5,554) $(617) ======== ======== ========= ========= Earnings (loss) per share: Net income (loss): Basic ($0.08) $0.15 ($0.39) ($0.04) Diluted ($0.08) $0.15 ($0.39) ($0.04) Average basic shares outstanding 14,238 14,026 14,204 13,972 Average diluted shares outstanding 14,965 14,420 14,926 14,293 ENESCO GROUP, INC. CONSOLIDATED BALANCE SHEETS (In thousands) ASSETS June 30, December 31, 2004 2003 ------------ ------------ Current Assets: Cash and equivalents $9,145 $10,645 Accounts receivable, net 69,407 65,190 Inventories 65,488 60,820 Other current assets 9,339 9,260 ------------------------- Total current assets 153,379 145,915 Property, plant and equipment, net 28,165 28,341 Other assets 34,387 28,212 ------------------------- Total assets $215,931 $202,468 ========================= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Notes and loans payable $27,427 $2,858 Accounts payable 19,710 21,723 Federal, state and foreign income taxes 1,777 7,375 Total accrued expenses 14,748 19,609 ------------------------- Total current liabilities 63,662 51,565 Total long-term liabilities 9,691 3,551 Minority interest 100 114 Total shareholders' equity 142,478 147,238 ------------------------- Total liabilities and shareholders' equity $215,931 $202,468 ========================= CONTACT: Enesco Group, Inc. Tom Bradley (Investors), 630-875-5990 jgadzins@enesco.com or Donna Shaults (Media), 630-875-5464 dshaults@enesco.com -----END PRIVACY-ENHANCED MESSAGE-----