Infotopia, Inc. Announces Strong First Quarter Financial Results
Tuesday May 8, 3:04 pm Eastern Time
Press Release
Infotopia, Inc. Announces Strong First Quarter Financial Results
Reports Revenues of $23.9 Million and Net Income of $1.6 Million
BOSTON--(BUSINESS WIRE)--May 8, 2001--INFOTOPIA, INC. (OTC BB:IFTP - news) today announced updated revenues and earnings for its first quarter ended March 31, 2001.
After review and adjustments by the auditors, revenues for the three months ended March 31, 2001 were $23,923,000 compared to $0 for the same year ago period. Net income for the first quarter ended March 31, 2001 was $1,562,000, or $0.01 per basic and diluted share, compared to a net loss of $1,028,000 or $(0.25) per basic and diluted share. Infotopia did not conduct operations during the first quarter ended March 31, 2000.
The company noted that the majority of its revenues for the first quarter of 2001 were derived from strong sales of its fitness products including the Body By Jake, Bun & Thigh Rocker, Torso Tiger, Medicus Dual 2000 and Total Tiger. In addition, sales of Hot Mommies and Backstroke Back Massager also contributed to first quarter revenues.
Ernest Zavoral, President of Infotopia, commented, ``The company is quite pleased with the substantial revenues and earnings reported for the first quarter of 2001, a trend we expect will continue throughout the year. We are especially proud to note that the company has been able to achieve such impressive financial results even though we have only been operational as a stand-alone company for less than a year. As the company continues to mature and build on its leadership position in the infomercial industry, we remain confident that we will be able to take advantage of the multitude of growth opportunities that currently lie before us as well as future opportunities.''
Daniel Hoyng, CEO and Chairman, stated, ``Infotopia's first quarter results are further evidence of the success of our strategic business plan and the strong acceptance of our products and infomercials by the consumer. We also believe these results further strengthen our leadership position in the direct response and consumer product industry. It is important to note that the Body by Jake, Bun and Thigh Rocker was our only product in full television rollout during the first quarter of 2001. Medicus Dual 2000, Michael Thurmond's Six Week Body Makeover, Hot Mommies and Total Tiger are still in the ramp-up phase of television media spending. Based on the initial success of these products, we are confident that these products will play a significant role in our revenue and earnings growth in the second quarter and beyond. Additionally, the Body by Jake, Bun and Thigh Rocker is scheduled for a fall roll-out to retail.''
The company noted it incurred a one-time charge of $786,891 for discounts it granted for the sale of securities as a result of its fund raising efforts during the quarter. The proceeds were utilized to continue to fuel the growth of the company and help assure continued revenue and profit growth for the coming quarters. In addition, the Company had $2,513,657 in deferred revenue for this period and prepaid expenses versus those revenue of $1,350,500, this would have resulted in $1,163,157.00 in additional profit this quarter, had the Company been able to ship the goods prior to March 31, 2001. This was the result of significant backorders on both Body by Jake, Bun And Thigh Rocker and Total Tiger due to such high consumer demand for our products. The Company is no longer operating on a backorder basis on these products.
Mr. Hoyng concluded, ``We are confident that the current product lines consisting of our top performing health and fitness machines, along with other product lines that are currently under development will enable Infotopia to continue to grow quickly and significantly on a quarter-to-quarter basis.''
ABOUT INFOTOPIA
The Company's mission is to produce, market, and distribute an expanding line of high-quality, innovative health, fitness and consumer products. Infotopia seeks out products that deliver superior value, outstanding quality, and competitive prices to best satisfy customer demand. The Company markets its products to consumers through a variety marketing channels, including infomercials, distributor alliances, and Internet e-commerce. The management at Infotopia is committed to increasing corporate revenues and profits. The company's website is located at http://www.infotopia.tv .
This news release includes ``forward-looking statements'' that include risk and uncertainties. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including without limitation the Company's ability to produce and market products and/or services and other risks detailed from time to time in their Company's reports filed with the Securities Exchange Commission.
INFOTOPIA, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)
At At
March 31, 2001 December 31, 2000
CURRENT ASSETS
Cash and cash equivalents $ 194,743 $ 787,150
Accounts receivable - net of
141,458 and $218,254 10,580,052 934,392
Inventory 2,004,839 418,689
Loan Receivable 200,000 --
Subscription Receivable 1,356,914 --
Prepaid expenses and other
current assets 2,877,100 268,051
Employee Advances 73,753 65,485
Investments in marketable
securities, at fair value 180,000 174,000
Total current assets 17,467,401 2,647,767
PROPERTY AND EQUIPMENT, less
accumulated depreciation
of $273,339 and $ 255,383 277,236 239,773
CAPITALIZED PRODUCTION COSTS, less
accumulated amortization of $-0-
and $-0- 1,006,249 690,475
OTHER ASSETS
Licenses and other intangibles,
less accumulated amortization of
$552,325 and $300,549 3,981,952 2,415,307
Deposits 1,102,233 212,143
TOTAL ASSETS $ 23,835,071 $ 6,205,465
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 3,121,293 $ 1,798,620
Due to Employees -- 108,723
Debenture 545,000 50,000
Short Term Note Payables to
Stockholders 832,401
Stock to be issued for Cash/Services 1,087,831
Media and AR Loans Payable 5,138,069
Deferred Revenue 2,513,657 38,162
Total Current Liabilities 13,238,251 1,995,505
LONG-TERM LIABILITIES
Debenture -- 600,000
TOTAL LIABILITIES 2,595,505
STOCKHOLDERS' EQUITY
Common stock - 3/31/01: $.001 par
value, 190,000,000 shares authorized;
189,996,000 shares issued and
outstanding; 189,996 172,236
Preferred Stock - 3/31/01:
$.001 par value, 10,000,000
shares authorized; 8,100,000
shares issued and outstanding 8,100 --
Additional paid-in-capital 46,832,950 41,440,254
Accumulated deficit (36,464,226) (38,026,530)
Unrealized gain on marketable
securities 30,000 24,000
Total stockholders' equity 10,596,820 3,609,960
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 23,835,071 $ 6,205,465
INFOTOPIA, INC. AND SUBSIDIARY
Consolidated Statement of Operations
(Unaudited)
For the three For the three
month period month period
ended ended
March 31, 2001 March 31, 2000
REVENUE
Sales, net of returns and allowances
of $725,767 $ 23,922,632 $ --
COST OF SALES 6,691,634 --
GROSS PROFIT 17,230,997 --
OPERATING EXPENSES
General and administrative 1,605,954 1,028
Selling and marketing 12,580,984
Depreciation and amortization 251,310
Total operating expenses 14,438,250 1,028
INCOME FROM OPERATIONS 2,792,748 (1,028)
OTHER EXPENSES
Interest expense 443,553 0
Discount expense 786,891 0
Total other expenses 1,230,444 0
INCOME BEFORE INCOME TAXES 1,562,304 (1,028)
INCOME TAXES 0 0
NET INCOME $ 1,562,304 $ (1,028)
Basic and Diluted earnings
per share $ 0.01 (0.25)
Weighted Average of Shares
Outstanding 189,206,671 105,490,686
--------------------------------------------------------------------------------
Contact:
Infotopia, Inc.
Robert Tilton
609-888-4111
IFTPIR@infotopia.tv
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