Bernard Chaus Reports Strong Second Quarter Results.Business Editors NEW YORK--(BUSINESS WIRE)--Jan. 30, 2003 Company's Turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. Continues with 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. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. for First Half Reaching $0.07, Up from a Loss of $0.22 in the Year-Ago Six-Month Period 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 a turnaround in the Company's financial results for the second quarter and six-month periods of fiscal year 2003. For the quarter ended December December: see month. 31, 2002, historically the Company's weakest quarter, net income advanced to $580,000, or $0.02 per diluted share, compared to a net loss of $5.3 million, or a loss of $0.20 per diluted share, in the same quarter last year. Revenues for the second quarter of fiscal 2003 were $30.9 million versus $30.0 million in the year-ago second quarter, including a one-month contribution from the Company's recent acquisition of certain assets 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 first half of fiscal 2003, the Company posted net income of $2.1 million, or $0.07 per diluted share, compared to a net loss of $5.9 million, or $0.22 per diluted share, in the same period of fiscal 2002. Revenues for the six-month period were $65.7 million, compared to $69.4 million in the six-month period last year. "We are delighted that Chaus has been able to continue to achieve significant improvements in its performance, in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the very challenging retail environment," 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. "The turnaround we reported this quarter builds on the progress we have made over the past year and reflects a significantly higher 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. of 26.6% versus 10.0% for the comparable quarter a year ago. We continue to manage our business very carefully with a focus on fresh yet classic designs, efficient product sourcing and strict cost control, which contributed to a $1.3 million reduction in SG&A expense for the six-month period as compared with the six-month period last year. While we expect the retail climate to remain highly promotional, we are well on our way to achieving a profitable year in fiscal 2003." 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, "One of the highlights of the quarter was Chaus' acquisition of certain assets of S.L. Danielle, a well respected manufacturer of women's moderately priced, private label clothing, serving customers such as JC Penney, Charming Shoppes Charming Shoppes (NASDAQ: CHRS) is a specialty and plus size clothing retail holding company based in Bensalem, PA. Its subsidiaries include Lane Bryant, Fashion Bug, and Catherines. Clothes are sold from over 2000 retail stores in the U.S. and Chico's. Since the transaction was consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. in early December, we have integrated the S.L. Danielle acquisition into our operations and are now moving forward to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. these new capabilities. While the acquisition did not materially affect our earnings for this quarter, we expect the business to contribute positively to our results in the second half of the year and to the 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 of the Company." 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 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 ship anticipated purchase orders of S.L. Danielle and retain its customers. 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.
BERNARD CHAUS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except number of shares and per shareamounts)
(Unaudited)
For the Quarter Ended For the Six Months Ended
December December December December
31, 2002 31, 2001 31, 2002 31, 2001
----------- ----------- ----------- -----------
Net sales $30,879 $29,964 $65,670 $69,422
Cost of goods sold 22,677 26,961 48,011 58,192
----------- ----------- ----------- -----------
Gross profit 8,202 3,003 17,659 11,230
Selling, general and
administrative
expenses 7,154 7,787 14,702 16,032
----------- ----------- ----------- -----------
Income (loss) from
operations 1,048 (4,784) 2,957 (4,802)
Interest expense, net 304 551 640 1,112
----------- ----------- ----------- -----------
Income (loss) before
income tax provision 744 (5,335) 2,317 (5,914)
Income tax provision 164 3 174 6
----------- ----------- ----------- -----------
Net income (loss) $580 $(5,338) $2,143 $(5,920)
=========== =========== =========== ===========
Basic earnings (loss)
per share $0.02 $(0.20) $0.08 $(0.22)
=========== =========== =========== ===========
Diluted earnings (loss)
per share $0.02 $(0.20) $0.07 $(0.22)
=========== =========== =========== ===========
Weighted average number
of
common shares
outstanding -
basic 27,256,000 27,216,000 27,237,000 27,216,000
=========== =========== =========== ===========
Weighted average number
of common and
common equivalent
shares outstanding -
diluted 29,793,000 27,216,000 29,646,000 27,216,000
=========== =========== =========== ===========
BERNARD CHAUS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(Dollars in thousands)
(Unaudited)
December 31, December 31,
2002 2001
------------------ ------------------
Cash $836 $159
Accounts receivable, net 18,134 19,601
Inventories 10,049 12,928
Prepaid expenses and other
current assets 932 799
------------------ ------------------
Total current assets 29,951 33,487
Fixed and other assets, net 4,736 6,049
Goodwill 1,270 -
------------------ ------------------
Total assets $35,957 $39,536
================== ==================
Revolving credit borrowings $- $6,660
Accounts payable and accrued
expenses 14,584 16,767
Term loan - current 1,500 1,000
------------------ ------------------
Total current liabilities 16,084 24,427
Term loan and other long-term
liabilities 9,046 10,350
------------------ ------------------
Total liabilities 25,130 34,777
Total stockholders' equity 10,827 4,759
------------------ ------------------
Total liabilities and
stockholders' equity $35,957 $39,536
================== ==================
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion