Royal Appliance Announces Results for Second Quarter of 2002
The company reported a net loss of $1.3 million or $.10 per share for the quarter ended June 30, 2002, compared to a net loss of $708,000 or $.05 per share for the comparable period in 2001. The company reported a net loss for the six month period ended June 30, 2002, of $1.2 million or $.09 per share, compared to net income of $1.5 million or $.10 per share in the comparable period for 2001.
The company also announced it has acquired the North American rights to the home health and beauty line of products from Medisana AG, along with certain other assets for approximately $800,000. Medisana AG is a publicly traded consumer products company in Germany specializing in home health and beauty products. Although Royal will be immediately assuming the product line, the company does not expect any significant impact to the financial results for the remainder of 2002.
Michael J. Merriman, CEO, stated, "Although we are pleased with the increase in net sales for the second quarter, increased demand for lower priced floorcare products continues to put pressure on our gross margins. As a result we will aggressively seek cost and productivity savings in our business, including the consolidation of two of our Ohio facilities later this year. We remain committed to leveraging our infrastructure and retail relationships by offering innovative new products to consumers. As with the Telezapper, the acquisition of the Medisana product line is an important step in broadening the areas of opportunity where we can efficiently deliver new product innovations."