Ashworth Inc. Reports Fourth Quarter Earnings of $0.04 Per Share Versus Loss of $0.13 Per Share Last Year.CARLSBAD Carlsbad, cities, United States Carlsbad (kärlz`băd). 1 City (1990 pop. 63,126), San Diego co., S Calif., on the Pacific coast; settled in the 1880s, inc. 1952. , Calif.--(BUSINESS WIRE)--Dec. 16, 1999-- Randall Randall may refer to the following: In places:
Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the fourth quarter of fiscal 1999 increased 14.5% to $22,502,000 as compared to $19,660,000 for the same period of the prior year. Consolidated net income for the fourth quarter of fiscal 1999 was $495,000 as compared to a net loss of $1,861,000 in the same period of the prior year. The company reported diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.04 for the fourth quarter of fiscal 1999 as compared to loss of $0.13 for the same period of last year. Domestic sales increased 14.8% to $19,832,000 for the fourth quarter of fiscal 1999 as compared to $17,274,000 for the same period of fiscal 1998. Foreign sales increased 11.9% to $2,670,000 for the fourth quarter of fiscal 1999 as compared to $2,386,000 in the same period of the prior year. Consolidated net sales for fiscal 1999 increased slightly to $107,921,000 as compared to $107,341,000 for the same period of the prior year. Consolidated net income for fiscal 1999 was $3,817,000 as compared to $5,300,000 in the same period of the prior year. The company reported diluted earnings per share of $0.27 for fiscal 1999 as compared to $0.36 per share in the fiscal 1998. Domestic sales increased 4.6% to $93,528,000 for fiscal 1999 as compared to $89,389,000 for fiscal 1998. Foreign sales decreased 19.8% to $14,393,000 for fiscal 1999 as compared to $17,952,000 in the prior year. In reviewing operations, Herrel noted, "With our strengthened management team, we are pleased to report that the company is continuing to achieve stronger sales and quarterly earnings improvement. The positive results for the fourth quarter were driven by double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth in our core distribution channel and a 71.8% increase in the corporate sector of our domestic business, as well as improvement in the gross margins. We have continued to strengthen our balance sheet as we achieved a 13.2% and 21.4% reduction in the inventory level and total debt, respectively, from the prior year. Our long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. to equity ratio as of the end of the fourth quarter ended Oct. 31, 1999 improved to 4.0% as compared to 5.1% at the same period last year, despite the fact that we repurchased 303,200 shares in fiscal 1999. Herrel continued, "Our global Spring/Summer 2000 bookings as of November November: see month. 30th are 23% ahead of last year. Our Spring/Summer 2000 domestic Green Grass bookings are tracking 20% ahead of last year. International bookings, which include our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. subsidiary and Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. operations, are 23% up over last year. This booking trend supports the favorable reception Noun 1. favorable reception - acceptance as satisfactory; "he bought it on approval" favourable reception, approval acceptance - the state of being acceptable and accepted; "torn jeans received no acceptance at the country club" of our Spring/Summer 2000 line as well as Darrell There are many well-known people named Darrell, including: In sports:
Consolidated gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for the fourth quarter of 1999 improved to 38.7% from 28.9% in the same period last year. This increase is primarily a result of improved sourcing and improved inventory control. Selling, general and administrative expenses (SG&A) for the fourth quarter of fiscal 1999 decreased 7.6% to $8,034,000 as compared to the same period last year. As a percent of sales, SG&A expenses decreased to 35.7% during the fourth quarter of fiscal 1999 from 44.2% for the same period last year, reflecting increased sales and continuing focus on cost efficient practices. During the fourth quarter, the company installed 30 additional Golfman shop fixtured locations bringing the total number of Golfman shop fixtured locations to 815. Herrel concluded, "We are pleased with the progress made to date and we feel optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our business going forward. We believe our strong, authentic AUTHENTIC. This term signifies an original of which there is no doubt. brand and innovative product and design direction continue to differentiate differentiate /dif·fer·en·ti·ate/ (dif?er-en´she-at) 1. to distinguish, on the basis of differences. 2. to develop specialized form, character, or function differing from that surrounding it or from the original. us from our competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. . The progress we made in 1999 provides momentum for us going into the new millennium millennium [Lat.,=1,000 years], the period of 1,000 years in which, according to some schools of Christian eschatology, Christ will reign again gloriously on earth. Belief in the millennium, based on Rev. 20, has recurred in Christianity since the earliest times. . We are focused on the growth prospects for Ashworth Inc. during fiscal 2000 and beyond, as we continue to position Ashworth for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth as a premier lifestyle sportswear brand by further expanding our distribution channels and marketing investments, with an emphasis on overall efficiency improvement in operations." Ashworth Inc. is a Southern California-based designer of men's and women's golf-inspired lifestyle sportswear distributed domestically and internationally in golf pro shops, resorts and upscale department and specialty stores Noun 1. specialty store - a store that sells only one kind of merchandise shop, store - a mercantile establishment for the retail sale of goods or services; "he bought it at a shop on Cape Cod" . This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. related to the company's market position, finances, marketing plans and strategies. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the timely development and acceptance of new products, the impact of competitive products and pricing, the success of the women's and corporate divisions, the preliminary nature of bookings information, the ongoing risk of excess or obsolete inventory Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. , potential inadequacy of booked reserves and other risks described in Ashworth Inc.'s SEC reports, including the report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Oct. 31, 1998. -0-
ASHWORTH INC.
As of Oct. 31, 1999 and 1998
(Unaudited)
Oct. 31, Oct. 31,
ASSETS 1999 1998
-------- -------
CURRENT ASSETS
Cash and cash equivalents $ 6,507,000 $ 4,763,000
Accounts receivable-trade, net 21,194,000 19,924,000
Inventories, net 30,644,000 35,288,000
Other current assets 6,210,000 6,254,000
----------- -----------
Total current assets 64,555,000 66,229,000
Property and equipment, net 13,103,000 12,316,000
Other assets 2,442,000 3,089,000
----------- -----------
$80,100,000 $81,634,000
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $ 681,000 $ 940,000
Accounts payable - trade 3,460,000 6,260,000
Other current liabilities 2,686,000 2,714,000
----------- -----------
Total current liabilities 6,827,000 9,914,000
Long-term debt 2,764,000 3,445,000
Other long-term liabilities 1,083,000 1,170,000
Stockholders' equity 69,426,000 67,105,000
----------- -----------
$80,100,000 $81,634,000
=========== ===========
ASHWORTH INC.
Fourth Quarter and Twelve months ended Oct. 31, 1999 and 1998
(Unaudited)
Summary of Results of Operations
1999 1998
Fourth Quarter
Net Sales $22,502,000 $ 19,660,000
Cost of Sales 13,804,000 13,985,000
----------- -----------
Gross Profit 8,698,000 5,675,000
Selling, General and
Administrative expenses 8,034,000 8,692,000
----------- -----------
Income from Operations 664,000 (3,017,000)
Other Income (Expense):
Interest Income 59,000 40,000
Interest Expense (86,000) (110,000)
Other Income, net 175,000 96,000
----------- -----------
Total Other Income, net 148,000 26,000
Income Before Provision for
Income Tax Expense 812,000 (2,991,000)
Provision for Income Tax Expense (317,000) 1,130,000
------------ -----------
Net Income $495,000 ($1,861,000)
============ ===========
Earnings Per Share -- BASIC $0.04 ($0.13)
Weighted Average Common
Shares Outstanding 13,917,000 14,112,000
============ ===========
Earnings Per Share -- DILUTED $0.04 ($0.13)
Adjusted Weighted Average Shares
and Assumed Conversions 13,929,000 14,112,000
============ ===========
Twelve Months
Net Sales $107,921,000 $107,341,000
Cost of Sales 68,558,000 66,719,000
------------ -----------
Gross Profit 39,363,000 40,622,000
Selling, General and
Administrative expenses 32,867,000 31,691,000
------------ -----------
Income from Operations 6,496,000 8,931,000
Other Income (Expense):
Interest Income 112,000 152,000
Interest Expense (431,000) (451,000)
Other Expense, net 90,000 58,000
------------ -----------
Total Other Expense, net (229,000) (241,000)
Income Before Provision for
Income Tax Expense 6,267,000 8,690,000
Provision for Income Tax Expense (2,450,000) (3,390,000)
------------ -----------
Net Income $3,817,000 $5,300,000
============ ===========
Earnings Per Share -- BASIC $0.27 $0.37
Weighted Average Common
Shares Outstanding 14,035,000 14,185,000
============ ===========
Earnings Per Share -- DILUTED $0.27 $0.36
Adjusted Weighted Average Shares
and Assumed Conversions 14,045,000 14,805,000
============ ===========
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