Question-and-Answer Session
Operator
Thank you. (Operator Instructions). One moment, please, for the first question. Thank you. Our first question is coming from David Liebowicz (sp) with Vernham (sp).
David Liebowicz – Vernham
Good morning. A few questions, if we may. The LaJobi, you don’t state what their revenues were for the year. I was wondering ... no. You have it for LaJobi. For CoCaLo. Why is there no revenue figure for them in the release?
Bruce G. Crain
You’re specifically asking about CoCaLo, which is how you pronounce that.
David Liebowicz – Vernham
Right. I apologize.
Bruce G. Crain
In the release we do not have a revenue number based on the size of the business, basically. Pretty significant increase for us though. And it is quite a bit smaller than LaJobi.
David Liebowicz – Vernham
Now, LaJobi you bought for less than one-time sales. Can we make the same belief for CoCaLo?
Bruce G. Crain
I don’t think we really have a comment there. I mean, I think we’re pretty pleased with the valuation that it was a very fair number. And kind of industry standards, but we feel like we had a very, very fair deal there.
David Liebowicz – Vernham
Okay. The MAM situation, could you go into some more detail as to how that came about and why there was such a large write down?
Bruce G. Crain
It’s MAM, M-A-M. It’s a really long-term relationship that Sassy has had with MAM, which is a great brand in the infant area. We’ve had a very long-term relationship. A couple issues in there; all the product that we source for MAM comes from the MAM Corporation in Europe and all that product is sourced for us in Euros. As you all know, the Euro has really moved pretty dramatically against us here and the constraints of the contract are such that we don’t really have any flexibility on that front. So I think a core reason for us to terminate that relationship at this point and that distribution agreement is really driven by the lack of profitability due to where the product comes from.
I think a second concern for us is embedded in the agreement are several things having to do with competition and, as you can see, we’ve really started out on a pretty aggressive growth strategy built around acquisitions in our infant and juvenile area. Given that that relationship and distribution agreement constrains us somewhat from being in competitive areas we also felt it was something we wanted to move beyond to free us up to be able to look at these categories across other businesses or enter these categories ourselves.
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