Mr. Stoelting: RC2 has been in existence for about 20 years. Our business has changed in terms of product focus. The basic business strategy and the core competencies of the company have been in place for many years. As we've grown both organically and through acquisition, we've refocused the business so that now 85% of our sales are focused on products for moms, infants, toddlers and preschoolers. The prenatal through preschool-plus categories is where our strategic focus is today. In the past, the company was focused in the collectibles area. Today there is still a small part, about 15% of our business, that's in the collectibles area - mostly our John Deere collectibles and Johnny Lightning automotive collectibles. But again, our strategic focus is in the mom, infant, toddler and preschool space.
TWST: When did that shift take place and why?
Mr. Stoelting: The shift took place over the last five to seven years. What we saw in the collectibles area, especially as the Internet and eBay became more accessible to more of the population, is there were alternative channels for buying those products or trading those products, so to speak. I think we saw that coming in the early 2000s. And through acquisition primarily and through some good organic growth efforts, we refocused on the kids business.
Tickers included in this excerpt: RCRC
For more information call (212) 952 7433. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.