Bernard Chaus Reports Significant Turnaround in Fiscal 2003 Financial Results; EPS Reached $0.16 for Year Versus Loss of $0.08 in 2002.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 28, 2003 Bernard Ber·nard , Claude 1813-1878. French physiologist noted for his study of the digestive and nervous systems. Chaus Cha´us n. 1. (Zool.) a lynxlike animal of Asia and Africa (Lynx Lybicus). , Inc. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. : CHBD.OB) today reported financial results for the full fiscal year and fourth quarter of 2003. For the fiscal year ended June June: see month. 30, 2003, net income reached $4.7 million, or $0.16 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share on a weighted average of 29.9 million common shares outstanding, compared to a net loss of $2.2 million, or a loss of $0.08 per diluted share on a weighted average of 27.2 million common shares outstanding in fiscal 2002. Results in fiscal 2002 included a tax benefit of $944,000 and non-recurring other income of $193,000, together representing $0.04 per diluted share. Revenues for fiscal 2003 were $140.2 million versus $145.8 million in fiscal 2002. Revenues for fiscal 2003 include a contribution from the product lines of S.L. Danielle Danielle is the female variant of the male name Daniel. For its meanings, etymology, pronunciation, and translations, see Wiktionary. Danielle is the given name of:
For the 2003 fourth quarter, the Company reported net income of $440,000, or $0.01 per diluted share on a weighted average of 30.2 million common shares outstanding, compared to $1.9 million, or $0.07 per diluted share on a weighted average of 27.9 million common shares outstanding, in the fourth quarter last year. The year-ago quarter included a tax benefit of $953,000 and non-recurring other income of $193,000, together representing $0.04 per diluted share. Revenues for the fourth quarter of fiscal 2003 were $33.6 million compared to $32.7 million in the same quarter a year ago. "The strong increase in profitability Chaus delivered in fiscal 2003 is a clear reflection of the successful steps we have taken over the past 18 months to best manage our business within the difficult economic and retail climate," said Josephine Josephine, 1763–1814, empress of the French (1804–9) as the consort of Napoleon I. Born Marie Josèphe Rose Tascher de la Pagerie in Martinique, she was married in 1779 to Alexandre de Beauharnais. Chaus, Chairwoman and Chief Executive Officer. "We are proud that the actions we have taken to reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , improve the quality of our sales and enhance gross margin have enabled us to generate six consecutive profitable quarters and have laid a solid foundation for the future." Nick DiPaolo Nick DiPaolo (born January 31, 1962 in Danvers, Massachusetts) is an Italian-American stand-up comedian, writer and former radio host on the old 92.3 Free FM in New York until May 24th 2007 when the station changed formats. , Vice Chairman and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , added, "As we look ahead to fiscal 2004, our objective is to continue to leverage the efficient infrastructure we now have in place and to increase sales by building on the early and encouraging results we have seen from our acquisition of certain assets of S.L. Danielle, which has given us a growth platform in the exclusive and private label business. We also plan to continue to work closely with our department store customers to ensure that the Josephine Chaus lines are best positioned on the selling floor. While we expect the retail environment to remain challenging, we feel confident we are taking the right steps to ensure the Company's successful 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." Bernard Chaus, Inc., designs, sources and markets an extensive range of women's career and casual sportswear, principally under the Josephine Chaus Collection, Josephine Chaus Studio, and Josephine Chaus Sport trademarks. The Company's products are sold nationwide through department store chains, specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. retailers and other outlets. Further information can be found at www.BernardChaus.com. 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. that are based upon current expectations and involve a number of uncertainties, including retail market conditions, consumer acceptance of the Company's products, the ability to achieve anticipated profit margins and the Company's ability to retain and build upon S.L. Danielle's customer base. Further information on potential factors which could affect the Company's financial results are included in the Company's 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 June 30, 2002 and Form 10-Q Form 10-Q See 10-Q. for the quarters ended September September: see month. 30, 2002, December 31, 2002 and March 31, 2003.
BERNARD CHAUS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except number of shares and per share amounts)
For the Quarter Ended For the Year Ended
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
----------- ----------- ----------- -----------
Net Sales $33,572 $32,730 $140,225 $145,769
Cost of goods sold 25,763 24,447 104,398 116,951
----------- ----------- ----------- -----------
Gross profit 7,809 8,283 35,827 28,818
Selling, general and
administrative
expenses 7,137 6,991 29,634 30,130
----------- ----------- ----------- -----------
Income (loss) from
operations 672 1,292 6,193 (1,312)
Other income - 193 - 193
Interest expense, net 154 496 1,091 2,049
----------- ----------- ----------- -----------
Income (loss) before
provision (benefit)
for income taxes 518 989 5,102 (3,168)
Income tax provision
(benefit) 78 (953) 425 (944)
----------- ----------- ----------- -----------
Net income (loss) $440 $1,942 $4,677 $(2,224)
=========== =========== =========== ===========
Basic earning (loss)
per share $0.02 $0.07 $0.17 $(0.08)
=========== =========== =========== ===========
Diluted earning (loss)
per share $0.01 $0.07 $0.16 $(0.08)
=========== =========== =========== ===========
Weighted average
number of
common shares
outstanding -
basic 27,384,000 27,216,000 27,384,000 27,216,000
=========== =========== =========== ===========
Weighted average
number of common and
common equivalent
shares outstanding -
diluted 30,244,000 27,911,000 29,912,000 27,216,000
=========== =========== =========== ===========
BERNARD CHAUS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(Dollars in thousands)
June 30, June 30,
2003 2002
------------- -------------
Cash and cash equivalents $2,650 $150
Accounts receivable, net 19,996 20,586
Inventories 10,696 8,050
Prepaid expenses and other current assets 719 1,331
------------- -------------
Total current assets 34,061 30,117
Fixed and other assets, net 4,391 5,574
Goodwill 1,395 -
------------- -------------
Total assets $39,847 $35,691
============= =============
Revolving credit borrowings $- $3,591
Accounts payable and accrued expenses 16,908 12,997
Term loan - current 1,500 1,125
------------- -------------
Total current liabilities 18,408 17,713
Term loan and other long-term liabilities 8,330 9,765
------------- -------------
Total liabilities 26,738 27,478
Total stockholders' equity 13,109 8,213
------------- -------------
Total liabilities and stockholders' equity $39,847 $35,691
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